Read the following Case Assignment:
Ebay Creating Customers on the Move The advent of mobile commerce (m-commerce) has begun to create significant changes in the way consumers make purchasing decisions. The introduction of online shopping first began to draw customers away from brick-and-mortar retailers, changing the location of where they made their purchases. The use of mobile devices has expanded the location of purchase decisions even further, so now consumers can make purchases from almost anywhere, so long as they have a mobile device with them. It also has leveled the playing field for consumers in many cases, as it allows them to comparison shop on prices of products that they might find in stores.
In 2009, the mobile commerce market generated $18.3 billion in total revenue. By 2015 its projected to reach over $119 billion. When it comes to m-commerce, eBay has jumped in with both feet. It is estimated to hold about 3.3 percent of m-commerce, compared to online retailer Amazon’s 1.5 percent. It also was estimated to sell $1.5 billion in goods via m-commerce in 2010, compared to $600 million in 2009. eBay launched its first mobile application for the iPhone in July 2008 and has since produced 14 apps, including eBay Selling, StubHub, Deals, and Fashion. eBay’s core iPhone application has been downloaded 14 million times, and its entire stable of apps has seen over 30 million downloads worldwide. Purchases range from clothing and accessories to sporting event and concert tickets, computers and technology gadgets, collectables, and even luxury automobiles. Research indicates that more than half of regular m-commerce purchasers are comfortable spending over $100 on a mobile purchase, and 14 percent are willing to spend over $1,000.
eBay has been quick to embrace the trend toward comparison-shopping, as potential buyers compare in-store prices online with those offered by other retailers. In June 2010, eBay purchased RedLaser, a mobile app that uses the cell phone camera to identify a product’s barcode and locate that product within eBay’s system.
If a buyer is searching for a certain designer jacket for example, he could compare prices between eBay’s auctions, flat priced buy-it-now options, and eBay’s Fashion Vault, which offers limited-time deep discounts on select high-end merchandise.
But while eBay has excelled in m-commerce so far, its ability to fully capitalize on this growth potential depends on how it is able to influence consumer-purchasing decisions. Merely allowing consumers to search for items, compare prices, and then make a purchase isn’t enough. As eBay VP of mobile platforms Steve Yankovich says, “We want consumers to engage when they don’t have a purchase in mind.”
The combination of apps with mobile devices enables browsing and purchasing virtually anywhere at any time, especially during downtime—say when the potential buyer is getting a haircut or waiting in line at the coffee shop. By enabling buyers more opportunities to shop and make purchases, eBay is hoping to spark purchases based on the buyer’s immediate situation. The eBay Fashion app is designed to inspire browsing and experimentation, offering features such as a clothing-focused search function, a virtual closet to save various finds, and a mix-and-match feature that allows users to pair up articles of clothing with various accessories. Users can even take a picture of themselves using the phone camera and the Fashion app will superimpose the outfits they create over their figure, allowing shoppers to digitally “try on” the looks. So if a purchaser saw a dress she liked at a party, she could “try it on” and match it up with accessories in her wardrobe. eBay is planning to release even more apps like eBay Fashion, targeting key eBay shopping demographics such as car enthusiasts and home-and-garden enthusiasts.
Early trends suggest that shoppers are responding to eBay’s efforts as well. As eBay has continued to develop the offerings of the eBay Fashion app, average user browsing time on the app has increased by 40 percent since its original release and mobile fashion sales tripled over the past year. If nothing else, the new trends in m-commerce move very quickly, and eBay must continue to innovate if it wants to stay ahead of the game. Says Yankovich, “Nobody knows what’s going to happen in mobile. We need to be ready to spin on a dime.”
Which stages of the consumer decision-making process are affected most by comparison shopping on mobile platforms? Explain.
The customer decision-making process contains several stages. Comparison shopping on different mobile platforms is in the limelight due to the favorable impact on both customers and the company. After the need for recognition and information, the customer has to navigate different alternatives. It seems like an evaluation of different options. It seems an essential stage of the customer decision making. For Instance, on different platforms, customers may find other products with the same features, quality standards, and benefits. The company may provide information regarding price, features and possible advantages of the product. This stage is most affected because it helps customers to make a buying decision. Searching for information is also a prominent stage, which can be affected. Based on available knowledge of substitutes, customers can depict a positive decision-making process.
Technology has drastically altered the consumer buying behavior. Today as consumers we have the luxury to browse and shop virtually anywhere at any time. What are your thoughts on being able to buy 24/7 virtually?
In this contemporary era, technology has changed consumer buying behavior. The virtual business process increases business benefits. Traditional Brick & Mortar model cannot enhance the customer traffic and better visualization of products. I enjoy shopping on different online platforms because I can find information, alternatives, and content that compares products. Traditional business process limits the buying process. However, 24/7 shopping is possible on different online shopping platforms. For Instance, eBay has increased buying options for customers through several fashion apps. The customer can take time, understand features and benefits, and observe the rapid process to get the product. Thus, to my opinion, technology-enabled 24/.7 shopping, and it also ensures the rational decision-making process. However, firms like eBay have to evolve with time to be relevant and lucrative. The most important thing is to take advantage of product availability. The customer can find an immense range of products and services on these online platforms. I can make quick orders and get the product in the cart (Dishman, 2014).
Do you find yourself shopping online more as opposed to the traditional shopping method of visiting the store during store hours? Why or Why not?
Comparatively, online shopping streamlines more options as compared to traditional shopping process in stores during store hours. For Instance, eBay has initiated a fashion app for customers, which works according to the immediate buyer’s situation. The company has enabled browsing and experimentation, which seems impossible when visiting a store. Being a potential customer of an organization, I can maintain my focus on the buying process. Features such as clothing focused search can help me to find the relevant product. The remarkable online shopping experience has enabled the function of superimposing. I can create the outfit over my figure, and it can facilitate the buying decision process. It can be said that online shopping provides more, and it leads towards more satisfaction.
What are your thoughts on Black Friday in-store deals versus Cyber Monday, do you find one to be more beneficial to the consumer than the other?
The companies intend to come up with attractive discount offers for customers on Black Friday. It has been revealed that customers have emotional and sentimental attachments to Black Friday. It is a Thanksgiving Day for people in the United States, which cannot be practiced or celebrated well in online stores. Retail stores offer attractive discounts and give gifts to customers. Thus, comparing Black Friday and Cyber Monday is not a good idea. Both contain worth in the modern business era. People will be willing to visit stores to get discounted products. Celebrating Thanksgiving Day with shoppers or retail stores cannot be observed online. Cyber Monday comes after the Thanksgiving holiday in the United States. I think Cyber Monday is not beneficial like Black Friday, as they use to spend more on Black Friday. Cyber Monday is an artificial event, which has been marketed by online retailers to enhance the buying process. However, it may take time to augment the customer attraction (Wise, 2018).
In the end, it is to conclude that technology has changed things for both companies and customers. Both have to embrace changes to increase benefits. eBay is going well, and it will come up with more online developments.
References
Dishman, L. (2014, May 5). Meet the Mobile First Startup That’s Angling To Rival EBay’s Fashion Resale Business. https://www.forbes.com/sites/lydiadishman/2014/05/05/meet-the-mobile-first-startup-thats-angling-to-rival-ebay-fashion-resale-business/#1fdde7b62569
Wise, A. (2018, October 15). How to Get the Best Deals on Black Friday, Cyber Monday and Beyond. https://www.realsimple.com/holidays-entertaining/holidays/more-holidays/black-friday-cyber-monday-wait
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