Passive Digital Influences

1. Influencing through more marketing channels: With digital technology providing far more targeting options, marketers can use a mix like search marketing, native content, e-mail communication, affiliate marketing, etc., which were not available traditionally.
2. Influencing through customized content: Marketers, with their knowledge of consumer personas and individual data from previous buys of an individual, have the ability to target through the use of customized content. Such content may be based on consumer’s background, buying behavior, and even, in certain cases, cultural and social affiliations which could be very powerful.
3. Influencing through targeted/re-targeted advertising: By knowing the set of customers who have visited the brand page/e-commerce listing, for example, of a particular jeans brand, one can set a retargeting campaign to try and influence conversions in the next couple of days for customers who showed an interest but did not follow thereafter.
4. Influencing through social networks: With the concept of customer recommendations being inserted for every product available online, marketers are making use of conversations and online relations which a consumer might most respond to while purchasing the brand.
5. Influencing through real-time information: Marketers can follow and use knowledge of customer locations to pass on real-time information based on the stage where the customer might be in the consumer funnel.

Active Digital Influences

1. Influencing through social communities: A jeans brand which has its own Facebook page and has built a loyal community around it, has much more chances of being able to provide relevant messaging and imagery to its large socially driven audience.
2. Influencing through expert information: With integration of quick chat and ‘fashion guru’ features which a lot of brands are integrating with their websites, consumers can actively interact, seek information, and get influenced to buy a particular brand. There are even sites available wherein consumers can compare products across categories and marketers can sponsor such sites for stronger mind-share.
3. Influencing through product customization: With technology advancements, features have been developed by apparel brands wherein a consumer can superimpose a picture to see how he/she would look in a particular jean’s style and colour, thus giving a high level of personalized touch to the buying experience.
4. Influencing through data-driven promotions: Marketers can also avail of the knowledge of their traditional customers to offer them discounts at the last mile-stage of product purchase, which is only possible with the use of extensive technology.

Attributes of Online Buying Behavior

With a good understanding of the impact of digital technology, let us now study the key attributes of online buying behavior and what motivates customers to buy online.

In Chapter 2 we had looked at the key value elements which create ‘digital value’ for any online buying. Those included convenience, variety, cost, aesthetics, communication, and customization. Lewis and Lewis (1997) in their studies have spotted five different kinds of web users:

1. Directed information-seekers: These users look for information about specific products. Their intention is not to buy but to search for information.
2. Undirected information-seekers: These users regularly browse and scan websites by following hyperlinks. They are referred to as ‘surfers’ because they look around the websites to find something interesting.
3. Directed buyers: These users visit a website with the intention to buy products online. They search specific products and make the transaction.
4. Entertainment seekers: These users visit websites that offer entertainment features, such as quizzes, puzzles, and multi-player games.
5. Bargain hunters: This type of users search for special offers such as free samples or discounts.

This classification helps us realize that although we might see a large number of visits to certain websites, it is also very important to understand the behaviors and motives of key consumer segments visiting those sites which will eventually determine the success or failure of the business. To understand better how to guide potential consumers who are always present at the top of the consumer funnel and do not trickle to the conversion stage, we would need to understand important influencing factors or attributes which any online marketing activity must offer to be a success.

The three key attributes identified across major studies done in this area include:

1. Price: Price is one of the earlier attributes for online buying. It has priority even before convenience since for a long time buying online was not possible because of the unavailability of broadband and the absence of the plastic card culture—considerations which still hold true in developing counties like India. It has been studied that consumers started going to internet primarily to compare prices and see if cheaper versions of the product they intended to buy were available online. With a multitude of price comparison sites available today and several e-commerce companies leveraging logistics-based savings, price has definitely become the key attribute for online buying. It has also been responsible for another much talked-about online trend, impulsive buying, wherein shoppers who become quite comfortable with online buying do not even check prices and at times overpay for products and services they might not have even tried to look at earlier. This unanticipated trend though has proved to be quite useful for marketers.
2. Trust: Monsuwe et al (in 2004) had concluded that because internet was a new way of shopping, initially it was looked at as being risky by consumers. This was primarily because of the absence of a salesperson who was their major source of trust, as well as because of the worry of payments going through and goods (once paid for) reaching the consumer in delayed time. But companies like Amazon (globally) and Flipkart (in India) changed this perception to their advantage trying to assure customers that online could also stand for trust. This was possible through relentless pursuit of perfection across all areas of the consumer purchase lifecycle, from secure buying to warehousing, to final delivery, replicating this experience over and over. Flipkart even went to the extent of providing the ‘Cash on Delivery’ feature to show how the medium can be trusted in nations which had never trusted online buying. Initiatives like these have led to trust becoming one of the key attributes of online buying.
3. Convenience: This much discussed attribute truly has been the bedrock of online buying, with customers taking advantage of being able to shop from wherever they like, at a time most suited to them and in a way which requires just a few clicks. With companies nowadays even looking to supply essentials like grocery and fruits through mobile applications, online companies have completely redefined the concept of convenience to include categories and services which could not have even been envisioned before.

These days, the growth and sustenance of online buying is attributed not just to the above basic factors but also to constant innovations and efficiencies built in supply chain structures, wherein pure online retailers are even looking at opening up offline spaces to provide maximum coverage and convenience to their buyers, to supply products in a day with guarantee. In the next sections, we would look at the key building blocks through which online companies are developing such experiences for customers to keep them hooked onto this medium.