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1 Mixed-mode buying © InSites Consulting GGD#07. Internet & changing shopping behaviour. How consumers behave on the crossroads of different channels. This is the limited edition GGD#07 Light Version of the original Vlerick & InSites Consulting study. Full original Vlerick & InSites Consulting presentation available upon simple email request.
36

Mixed Mode Buying > The Influence of the Web on the Buying Cycle

Nov 01, 2014

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Technology

Everjean

A study conducted by InSites Consulting and Vlerick Managment School about the role of the internet in a shopping & decision cycle.
"Mixed Mode Buying" is the process by which a customer changes between online and offline channels during the buying process.

This is the light version of the original presentation. contact me for the full version, upon simple request.
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Page 1: Mixed Mode Buying > The Influence of the Web on the Buying Cycle

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GGD#07. Internet & changing shopping behaviour. How consumers behave on the crossroads of different channels.

This is the limited edition GGD#07 Light Version of the original Vlerick & InSites Consulting study.Full original Vlerick & InSites Consulting presentation available upon simple email request.

Page 2: Mixed Mode Buying > The Influence of the Web on the Buying Cycle

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Pre-purchase

PurchasePost-purchase

The idea behind ‘mixed-mode buying’

“The process by which a customer changes between online and

offline channels during the buying process.“

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About the product categories

33%

28%

23%

22%

19%

13%

13%

12%

7%

Other (please specify)

Vacuum cleaner

Washing machine

(Microwave) oven

Dishwasher

Dryer

Refrigerator

Freezer

Hotplate or cooker

31%

30%

25%

24%

20%

16%

12%

9%

7%

Mobile phone

MP3 player / iPod

PC or laptop

TV

(Digital) camera or video camera

Other (please specify)

DVD player / VCR

Hi-fi system

DVD recorder

83%

29%

23%

15%

15%

Paint

Curtains

Wallpaper

Floor covering

Other (please specify)

51%

39%

35%

29%

27%

26%

12%

Timber

Hand tools

Sanitary fittings and plumbing

Electricity

Ironmongery

Electric tools

Other (please specify)

10%

23%

19%

24%

22%

2%

Less than 10.000€

Between 10.000€ and 15.000€

Between 15.000€ and 20.000€

Between 20.000€ and 25.000€

More than 25.000€

I'd rather not say

72%

58%

Women's clothing

Men's clothing

Page 4: Mixed Mode Buying > The Influence of the Web on the Buying Cycle

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Focus on the pre-purchase process

Exploration ComparisonProduct / brand

choicePOS choice

59% 62% 66% 82%

3,4 3,0 2,6 2,0

Gone through phase

# considered brands

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In the ReMix & Through the Line

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‘Mixed-mode buying’ according to David

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POS is king, internet is queen

85%

51%

49%

36%

24%

22%

1%

POS

Promo

Internet

Conversations

Above the line

Direct mail

Nothing

83%

44%

39%

31%

20%

18%

2%

POS

Promo

Internet

Conversations

Above the line

Direct mail

Nothing

81%

38%

26%

29%

13%

13%

2%

POS

Promo

Internet

Conversations

Above the line

Direct mail

Nothing

75%

34%

18%

22%

14%

11%

3%

POS

Promo

Internet

Conversations

Above the line

Direct mail

Nothing

Exploration ComparisonProduct / brand

choicePOS choice

Which sources have they used?

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2%

5%

3%

8%

6%

2%

4%

3%

7%

14%

11%

13%

16%

7%

9%

9%

7%

20%

15%

19%

22%

10%

12%

12%

Websites with expert reviews

Online search engines

Comparison websites

Websites for regular shops

Websites for specific brands

Websites with user reviews for a specific brand

Websites for webshops

Websites not related to a specific brand

Retailers and brand websites are most frequently visited

3%

7%

6%

9%

11%

4%

5%

6%

Exploration ComparisonProduct / brand

choicePOS choice

Which online sources have they used?

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We are all niche

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Strong differences in authorithy of online sources

POS Promo Internet Conversations Above the line Direct mail

Niche channel

Mass channel

Trusted channel

Zap channelMean all items

Mean all items

Usage

Reliab

ilit

y

Above the line

Promotions

Shop brochures

Expert review websites

Online search engines

Comparison websites

Retailer websites

Brand websites

User review websites

Webshops

Shop / dealer visit

Discussion shop assistant

Offline WOM

Online WOM

Direct mail (postal)

Direct mail (e-mail)

20%

30%

40%

50%

60%

70%

80%

90%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%

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Consumer : ‘The internet is a great source for comparing alternatives’Retailer or brand : ‘Every visit of our site is a moment of truth’

If they visit these sites, how many of them do they consult?

10%

7%

8%

8%

6%

32%

33%

29%

28%

26%

58%

60%

62%

64%

68%

Websites with product reviews

Shop websites

Websites that are not brand-related

Brand websites

Website where you can shop online (webshops)

More than 5 3 to 5 1 or 2

2,9

2,7

2,7

2,7

2,5

# sites

visited

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46%

28%

42%

28%

20%

12%

10%

35%

22%

18%

17%

11%

9%

6%

24%

15%

8%

8%

6%

5%

4%

26%

13%

11%

17%

10%

10%

8%

Electronics - sound and vision

DIY tools

Car

Household appliance

Decorating supplies

Adult clothing

Children's clothing

Orientation Product choice Brand choice POS choice

Impact of the internet strongly depends on product category

Influence of the internet on:

What was the impact of the internet on the purchase decision?

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I should be so lucky

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Natasha about ‘information overload’

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Page 17: Mixed Mode Buying > The Influence of the Web on the Buying Cycle

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We are all women

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?

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3DDiscover.Discuss.Decide.

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Chicks don’t do clicks

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Explore

Male

Female

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Male

Female

Compare

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Male

Female

Choice

Page 24: Mixed Mode Buying > The Influence of the Web on the Buying Cycle

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Male

Female

Buy

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Faites vos jeux!

Page 26: Mixed Mode Buying > The Influence of the Web on the Buying Cycle

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46%

28%

42%

28%

20%

12%

10%

35%

22%

18%

17%

11%

9%

6%

24%

15%

8%

8%

6%

5%

4%

26%

13%

11%

17%

10%

10%

8%

Electronics - sound and vision

DIY tools

Car

Household appliance

Decorating supplies

Adult clothing

Children's clothing

Orientation Product choice Brand choice POS choice

Impact of the internet strongly depends on product category

Influence of the internet on:

What was the impact of the internet on the purchase decision?

Page 27: Mixed Mode Buying > The Influence of the Web on the Buying Cycle

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There is no such thing as ‘the ideal internet strategy’

Inte

rnet O

ppo

rtunity f

or

Sale

s

Internet Opportunity for Pre-sales

Low High

Lo

wH

igh

Do

Feel

Think

Think & Feel

High involvement, financial risk

but many objective & verifiable

search attributes

Low risk, highly searchable

and comparable

High involvement & risk

Many objective attributes only

verifiable through experience

Experience attributes, only

physically searchable

Page 28: Mixed Mode Buying > The Influence of the Web on the Buying Cycle

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There is no such thing as ‘the ideal internet strategy’

Decorating supplies

Inte

rnet O

ppo

rtunity f

or

Sale

s

Internet Opportunity for Pre-sales

Low High

Lo

wH

igh

Do

Feel

Think

Think & Feel

High involvement, financial risk

but many objective & verifiable

search attributes

Low risk, highly searchable

and comparable

High involvement & risk

Many objective attributes only

verifiable through experience

Experience attributes, only

physically searchable

Household appliance

Electronics - sound and vision

DIY tools

Adult clothing

Children's clothingCar

Page 29: Mixed Mode Buying > The Influence of the Web on the Buying Cycle

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Decorating supplies

Household appliance

Electronics - sound and vision

DIY tools

Adult clothing

Children's clothingCar

Consumers’ decision process define your online strategy

Inte

rnet O

ppo

rtunity f

or

Sale

s

Internet Opportunity for Pre-sales

Low High

Lo

wH

igh

Do

Feel

Think

Think & Feel

low information

processing

high information

processing

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Decorating supplies

Household appliance

Electronics - sound and vision

DIY tools

Adult clothing

Children's clothingCar

Consumers’ decision process define your online strategy

Inte

rnet O

ppo

rtunity f

or

Sale

s

Internet Opportunity for Pre-sales

Low High

Lo

wH

igh

Do

Feel

Think

Think & Feel

high product

involvement

low product

involvement

Page 31: Mixed Mode Buying > The Influence of the Web on the Buying Cycle

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Decorating supplies

Household appliance

Electronics - sound and vision

DIY tools

Adult clothing

Children's clothingCar

Consumers’ decision process define your online strategy

Inte

rnet O

ppo

rtunity f

or

Sale

s

Internet Opportunity for Pre-sales

Low High

Lo

wH

igh

Do

Feel

Think

Think & Feel

low promotion

pronenesshigh promotion

proneness

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Impact of gender on decision processes

Inte

rnet O

ppo

rtunity f

or

Sale

s

Internet Opportunity for Pre-sales

Low High

Lo

wH

igh

Do

Feel

Think

Think & Feel

Household appliance

Children's clothing

Page 33: Mixed Mode Buying > The Influence of the Web on the Buying Cycle

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Impact of gender on decision processes

Inte

rnet O

ppo

rtunity f

or

Sale

s

Internet Opportunity for Pre-sales

Low High

Lo

wH

igh

Do

Feel

Think

Think & Feel

Electronics - sound and vision

Car

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1. The ideal online strategy does not exist

2. Know your audience & decision process

3. Be an expert guide

Page 35: Mixed Mode Buying > The Influence of the Web on the Buying Cycle

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So…Girl Geeks Rrrrrrrrrrule!

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Need the whole story?

[email protected]

This is the limited edition GGD#07 Light Version of the original Vlerick study!

Full original Vlerick & InSites Consulting presentation available upon simple email request.