How Digital Marketing is Changing Consumer Purchasing Behaviour?

What is Consumer Behavior?

Consumer behavior is the study of consumers and the processes they use to choose, use (consume), and dispose of products and services, including consumer’s emotional, mental, and behavioral responses. Consumer behavior helps marketers decide how to present their products in a way that generates a maximum impact on consumers. Understanding consumer buying behavior is the key secret to reaching and engaging your clients, and convert them to purchase from you.

Technology makes people’s lives easier and busier by giving our time and attention to our devices. In the year 1979 online shopping method began by Michael Aldrich.  Digital Marketing has both pros and cons so it depends on how you use internet. Many people in this world love shopping so many people go on the weekends before internet has made things easier to shop online. Offline shopping and purchasing behavior helps us build personal connections with one’s business.

Some customers may prefer to buy only after touching or trying the product, which may help us know what’s the fabric if there’s any damage we can go for the next. In recent years the online shopping industry has grown vastly as many consumers don’t have enough time due to their busy schedules with their work that they can’t go out so many purchases take place online and people are getting lazier to walk out to the stores, reasons can be like it’s very hot or pollution and saves time.

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One reason many consumers buy online because they get the products cheaper than the stores. Even to buy groceries people don’t travel to the stores but purchase online as they deliver in 60-90 mins, 1-day delivery, prime delivery options, return policies, and many more on apps like big basket, grofers, Amazon, Flipkart, Myntra, etc.

The brick and Motor business model is getting replaced with Click and Order shopping getting information is very easy with help of internet. Traditional marketing has failed to identify people’s emotions that’s why it’s failing. I will tell you about how consumer behavior can be explained in 4 dimensions like physical, psychological, social, and cultural characteristics in purchasing decisions.

 A. Physical Characteristics: 

of a person is an important factor affecting purchase decisions. Personal factors like age, gender, occupation, education, lifestyle, and income status.  Both men and women are familiar with using internet. Individuals with lower income think before buying anything online as they find this platform risky but not the same with higher income groups. Its found that educated people are using the internet more online shopping is considered an easy activity and they accept innovations that have an effect on purchasing decisions.

 B. Psychological Characteristics:

 of a person can help question themselves like which is a better place to shop, should they look for a better price or should they shop online, etc motivating them for better options.  Motivation is important to make choices to buy online. Perception is one of the important factors which helps in examining the quality of the product. The personality factors help consumers what sites they should visit and where they should shop. Attitudes of a person change daily and easily in which marketers get more interested. Emotions and feelings play an important role in choices/ decisions while purchasing. The unconscious mind influences our choices.

 C. Social Characteristics:

 The social influence comes from reference groups i.e., virtual communities consisting of discussion groups on a website. Other people’s opinions, experiences affect consumers. Contact links, family references also play an important role in an individual’s attitude.

 D. Cultural Characteristics:

Different social classes create different behaviors. Almost everything we do, we give and receive  information, make decisions, lead and manage, is influenced by culture.

Consumer attitudes towards online shopping usually determined by factors like trust and perceived benefits. Trust refers to the confidence of a consumer to adopt online shopping and his or her belief that the online stores will provide reasonable prices, the right product or service information, keep consumers privacy, manage credit card transaction information securely. For all these consumers should have trust in your website as they cannot see each other physically.  Perceived ease of use and usefulness means the consumers understanding that its easier to communicate with online retailers through their websites and makes it easy to shop online and perceived usefulness perceives internet as a useful tool for online shopping.  Between social media and customer forums, consumers have the ability to build or destroy brands if they don’t feel the services they got are good enough.

 A. Consumers have become researchers:

Consumers research every day on various brands and products and compare the better and convenient. Their purchase decision is highly influenced by interactions they have with the brand and other influencers online.

 B. Consumers are not afraid to experiment:

 Consumers were very skeptical to change brands earlier called brand loyalists but things changed with time as they look for better features than before.

 C. Consumers have a lower tolerance level:

 Consumers these days are not okay to settle or compromise in any manner.  They expect an immediate response to their grievances or queries if any. Many times negative reviews can make or break the brands.

 D. Word of Mouth:

 is done in terms of reviews of experts and users, rating, testimonials, etc. in digital marketing.

Stages consumers go through when they make a purchase:-

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 A. Need Recognition:

 means to identify one’s needs and wants to make a purchase. Perceiving a problem plays an important role or else it’s difficult to identify what a consumer needs. Eggs:- If we buy a cosmetic one will go what to use for their skin type if its matching or not and will see if its safe for their skin type like sensitive, normal, and all skin types. A need can be triggered by internal or external stimuli like hunger, thirst or word of mouth, advertising, and so on. Its also found in Maslow’s hierarchy of needs.

 B. Information Search:

 helps in recognizing a specific problem or need and research for information to solve the issues.   Internal research is by recollecting a product through personal experience. External research is by word of mouth, friends, family, etc.

C. Evaluating alternatives:

also known as consideration set where consumers spend time in comparing prices, warranties, terms, and conditions, etc.

D. Purchase:

A decision when a consumer buys something that’s when all the above things are identified and decision to purchase is made.

Stages of  Purchase:-

  i. Pre- Purchase Stage:- It helps customers compare different options.

  ii. Purchase Stage:–  Details like product assortment, sale services, and information quality seem to be important for consumers what product they should select, or what seller they should buy from.

  iii. Post- Purchase Behavior:- refers to a stage after buying purchasing something online. Some might want to return the product, exchange due to damage or not fitting, etc.

Factors of  Online Consumer Behavior:-

  a. Internal factors like personality traits or behaviors of a person like attitudes, motivation, learning, and perception.

  b. External Factors like demographic, socio-economic, culture, subculture, reference groups, technology, and marketing.

  c. Functional Motives of a consumer include time, price, convenience of shopping online, etc.

  d. Non- Functional motives relate to cultural or social values like brand of the store/product.

Consumers find a variety of brands online on the same website whereas in a physical store it’s single branded or multi-branded. Online shopping lead to less compulsive purchasing behavior and saves time.

Consumer Buying behavior has four types like:-

  i. Complex buying behavior:- is encountered when one buys an expensive product and makes a decision to check with his/ her friends and family does enough research to buy or not.

  ii. Dissonance reducing buying behavior:- High consumer involvement is found due to high price and infrequent purchase. He/ she buys an easily available product as he has no choice and limited decisions.

  iii. Habitual Buying Behavior:- Low involvement of consumers in a purchase decision where he considers only a few brands.

  iv. Variety Seeking Behavior:– Consumer involvement is low. Brand switching is more in this area due to curiosity or boredom or for a different taste.

Digital Marketing impact on consumers buying behavior:-

  • Ad blockers allow consumers to avoid unwanted advertisements on various devices to make it ad-free usage. Ads should be more interactive and engaging.
  • Wearables shape consumer lifestyle and save a business money.
  • Smart devices offer consumer convenience and peace of mind.
  • Fulfillment solutions drive seamless customer experience.
  • Information centered shopping.
  • Value on products and services that save time.

What affects consumer behavior?

1. Marketing campaigns:- They influence purchasing decisions of consumers a lot. If done right and regularly, with the right marketing message, it can even persuade consumers to change brands or opt for more expensive alternatives. Marketing campaigns can be used as reminders for products/services that need to be bought regularly but are not necessarily on customers top of mind like insurance. A good marketing message can influence impulse purchases.

2. Economic conditions:- For expensive products especially (like houses or cars) economic conditions play a big part. Consumers make decisions in a longer time period for expensive purchases and the buying process can be influenced by more personal factors at the same time.

3. Personal preferences:- Consumer’s behavior can also be influenced by personal factors like likes, dislikes, priorities, morals, and values. dislikes, In industries like fashion or food personal opinions, are especially powerful.

4. Group influence:- Peer pressure also influences consumer behavior. What our family members, classmates, immediate relatives, neighbors, and acquaintances think or do can play a significant role in our decisions. Social psychology impacts consumer behavior. Choosing fast food over home-cooked meals for example.

5. Purchasing Power:- Our purchasing power plays a significant role in influencing our behavior. Unless one is a billionaire budget will be into consideration before making a purchase decision. The product may be excellent, the marketing could be on point but if we don’t have the money for it we won’t buy it. Segmenting consumers based on their buying capacity will help marketers determine eligible consumers and achieve better results. Segmenting, Targeting and Positioning helps consumers to make the right purchase decisions, and it’s easier for marketers.

Conclusion:- Artificial Intelligence ( AI ) will be playing a remarkable impact in the coming years digitally to help identify consumer’s needs and assist them with queries, maintain relations, and boost lead generation. Digital marketing, therefore, is expected to meet consumer’s needs, efficiency, and maximized ROI. It is understandable that change is the only constant. Brands will get a chance to connect with target audiences deeply. Companies that put consumer needs first are sure to win as new technology is developing daily and people change for betterment. As a consumer, we look for something that satisfies all our needs in one product/service in the category we are looking for. Online buying or digital buying will create a greater impact in the later decades for consumers with varieties to choose from.

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How To Make A Profit From E-Commerce Website

 E-commerce or electronic commerce is a larger business sector that allows the buying and selling of goods or services using the internet and transfer of money and data to execute this transaction. E-commerce is also can do business by providing a new way for companies to create a relationship and extended the relational operation. E-commerce has revolutionized the way companies are doing business. By using E-commerce customers can purchase almost anything online 24 *7 a day. This becomes an easier way to purchase things, that help the customers not to spend too much time shopping.

E-commerce because become one of the preferred ways of shopping because of its easiness and convenience. It allowed buying products or services from their home at any time. The buying options of E-commerce is very quick, convenient and users friendly. So that customers can save their lots of time as well as money by searching their product easily and making purchasing online.

E-commerce websites are online portals that providing online transactions of goods and services through means of the transfer of information and funds over the internet. Based on services, different types of E-commerce websites are there.

  • Business to Business- It provides electronic transaction of goods and services between companies.
  • Business to consumer- This is the electronic transaction of goods and services between companies and consumers.
  • Consumer to consumer- Electronic transaction of goods and services between consumers, mostly through a third party.
  • Consumer to Business- Electronic transaction of goods and services where individuals offer products or services to companies.

Nowadays, people more likely to use E-commerce websites than traditional stores, because it providing more facilities to customers. Amazon, Walmart, Flipkart are some examples of E-commerce websites.

There are many benefits of E-commerce websites over normal shops. This helps the customers to save money as well as time. E-commerce websites providing an open place, in which customers can order whatever they want through online transactions. Selling a product online is the best way to make a bit of extra money. This is a large platform where you can introduce a new product to a large number of customers at once. If a customer has to purchase a product, then it’s necessary to give a description and details about the product. Through information, your customers and prospects are making decision to purchase your product or not.

E-commerce websites are profitable businesses. The platform of E-commerce websites helps to make a profit through their service. A lot of suppliers choose to open a shop in an e-commerce platform which helps to make a profit. Setting up an e-commerce store is an increasingly popular way of making money online. Before you are going to start up an e-commerce store, you must think about what you’re going to be selling. Deciding a selling product is the first step in starting an e-commerce store. This is often the most challenging part of starting a new online business. Once you have decided on your product,  your next step is to figure out where and how you’re going to obtain your product. You’ve found your product, evaluated the potential, and sourced your supplier. You’ll need to thoroughly research your product, so you know how to differentiate your product. Once your product is ready, the next step is to write a business plan. A business plan is vital in determining what to prioritize and how to effectively reach new customers.

 

Here are the steps to create an online store:

  • Log in to your account or sign up.
  • Choose from a professional online store template.
  • Add the product to your store’s design.
  • Add the product to your store.
  • Connect a payment provider and set up shipping.
  • Choose a custom domain
  • Publish your commerce website and start selling

Online store builder: fully customize the design pf your e-commerce website and reach the customer on desktop and mobile choose from five hundred plus stunning templates with professional business tool built-inGet hundreds of design features and effects, create beautiful product galleries, and grow your brand’s online presence. Set up your online storefront any way you want beautiful product collection,  related product galleries, wish list, quick add to cart, mini cart, and more. Customize your product and cart pages to meet your business needs

Expand your online store’s product offering and source from thousands of high-quality products with modalists professional dropshipping platforms. Set your own pricing and shipping rules. Easily make changes to stay on top of market trends and maximize your profits.

Get the flexibility you need to manage your online store from one robust, multi-channel dashboard whether it’s your e-commerce website dropshipping product, a Facebook, shop, and more you have all the tools you need.

Promoting your online store among your friends and social media is the first step towards building a solid following. There are many other ways that help to improve your sales. Manage your store from a powerful, multi-channel dashboard and sell products directly on Facebook, Instagram, and more. Providing a secure and simple online payment system . Choose from dozens of payment providers and methods, includes WIX payment, credit or debit card, and in person. Set custom rules and ship worldwide, it helps to promote your worldwide sales.

To improve your sales and marketing, it’s very important to attract products. The name of the product is the first factor which would be shown in webpages. So choose an original and memorable name for your brand or business is very important. Design a logo that matches the look and touches the feels. to learn more about the learn digital marketing blogs.

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Future Of Ecommerce In India

 The Ecommerce boom began with a few small companies like Flipkart and escalated to multi-national corporations setting up camp in India, hoping to profit in its massive eCommerce market. Ever since Amazon and Walmart pledged their fealty to E-commerce in India by pumping in Billions of Dollars, the future of eCommerce has never looked this promising. India’s massive population has fostered Ecommerce growth and has transformed it into a billion-dollar industry. Indians have become increasingly aware of the convenience of online payments for everyday transactions and this has further strengthened the potentiality of online purchases.

Since the Indian government is stressing heavily on using mobile internet for payments through e-wallets, Ecommerce has an excellent opportunity to achieve immense growth within a few years. Ecommerce companies selling through mobile apps are already in high favor with Indian shoppers online looking for a variety of products and services. Ecommerce is now a stand-alone industry with entire teams being dedicated by organizations for the development of websites and mobile apps, setting up payment gateways, and sufficient digital marketing tactics in place to attract Indian online customers. India boasts of an internet user base of over 300 Million which is more than sufficient for Ecommerce to thrive in the next few years.

Proof that Ecommerce in India is Rapidly Growing:

 India is ditching offline commerce at an alarming pace and switching to Ecommerce for most, if not all purchases. Below are 5 solid reasons that leave no doubt about how Ecommerce in India is growing uncontrollably:

Internet Users Reaching Critical Mass:

 The government of India has tried very hard with the ‘Digital India’ campaign to convert its population largely belonging to remote areas into active Internet users. And it looks like their efforts are starting to pay off since the number of Internet users in India is rapidly increasing by the day. With smartphones now available at throwaway prices, and ISP’s offering affordable Internet plans, online users are turning into customers every other day. Almost everyone in India uses the Internet for searching nearby services, social media, and minor or major purchases thus ensuring that Ecommerce in India is headed in the right direction.

Middle Class is the new Rich:

 It won’t do to underestimate the Indian Middle Class any longer. Most people belonging to middle-class families can now afford necessities along with sufficient luxuries, especially through online purchases. With the rise in modern jobs that offer incredulous salary packages, the barrier between the middle class and the upper class has thinned. Ecommerce in India is and should target the upper-middle class with wealth to spare for luxuries. In fact, there are several luxury online stores selling high-end brands at affordable prices online.

Streamlined Payments and Logistics:

 Payment Gateways are slowly moving towards one-touch payments, instant transfers, and e-wallets, making Ecommerce and Mobile Commerce a breeze. The average Indian user is no longer struggling to remember several different passwords and security answers. With enough support from Indian banks towards streamlined and safe online payments, there is no more struggle to search, find, and buy the product or service of your choice online. Logistics in India is becoming streamlined as well, given the immense population and heavy traffic on Indian roads. Ecommerce companies are brainstorming for clever ways to deliver your goods bought online by setting up nearby logistics services, that can quickly procure packages and conveniently deliver them to your location at the time of your choosing. Ecommerce companies also have GPS tracking applications in place which have tightened the noose around logistics companies to co-operate with E-commerce companies to the fullest extent. Ecommerce in India is now successfully processing international payments and shipping around the world, thanks to streamlined payments and logistics.

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Challenges we Need to Get Around:

 Ecommerce certainly has assumed a powerful stance in India, but there are still several challenges India needs to get away around if it expects to really integrate online purchasing into the system. The major roadblocks Ecommerce faces in India are as follows:

Lack of Digital Infrastructure:

 For half the population, Digital Infrastructure is still a dream. The Internet has not yet been able to spread its wings fully in every crevice and corner of this massive country. Students in villages do not have access to laptops or computers let alone high-speed internet. If E-commerce should permeate every city, town, and village in India, first arrangements must be made to set up Digital infrastructure in a way that its accessible to the rural population of India.

Low Cyber Regulation:

 Internet is still unregulated in India with few cyber laws in place to check money frauds, which leaves Ecommerce companies uncertain and wary to fully immerse themselves in the Indian market. Banks must work in tandem with the governmental cyber cell to bring financial freedom on the web devoid of security risks so that the Indian online shopper can enter their payment information without worry and not have to go through tedious security checks.

Tax:

 Tax is another big challenge to E-commerce in India. Credit payments and virtual currency are not very popular in India and do not come within the premise of the Indian Tax administration. The war between tax evasion regulation in India and the Ecommerce demand is very real. The government is skeptical about whether digital transactions in India must be taxed so until this is sorted, Ecommerce cannot flourish in its entirety.

The Return and Exchange Drama:

 Ecommerce in India has worked hard to streamline payments and logistics, but product returns and exchanges still pose a problem. Fraudulent returns and exchanges are on the rise online since most Ecommerce companies are liberal with customers showing dissatisfaction for products paid for online. Heavy Returns and Exchanges add to logistics costs which pose an additional burden for Ecommerce companies owing to traffic problems and lack of co-operation with logistics companies who are less willing to dance according to the whims and fancies of customers.

The fact that India is on the road to development is a boon for Ecommerce as the potential for online users turned shoppers is immense. But losses have become an everyday norm for Ecommerce companies owing to the heavy marketing and promotions done to serve the Indian Online shopper. The Indian Government is doing its best to support Ecommerce in India, but they still have a long way to go until Ecommerce successfully overtakes offline commerce in this massive country. Innovation is key to revolutionizing Ecommerce in India so that it is irresistible to Indian consumers. Increased outreach is also the main goal that all Ecommerce companies in India must strive to achieve.

International Ecommerce giants like Amazon and Walmart are set to change the face of Indian Ecommerce and are already doing a good job. Foreign investment looks to be the source and power in E-commerce in the next few years, challenging Indian companies to intensify their efforts several notches higher. At the heart of it all lies exceptional customer service which Indian online consumers thrive on. Small and medium-sized E-commerce companies can learn from the big players by keeping customer service at the fore. That, along with co-operation from the government will take Ecommerce to its peak and beyond in India.

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