ebuying behaviour

1. E-BUYING BEHAVIOUR
Gökay Hamamcı
Pınar Bektaş
Sare Nur Taşer
Tuğba Gürsoy 1

2. Outline
• Online shopping behaviour
Growth of online shopping
Segments influencing e-buying behaviour
Advantages and disadvantages
• e-Bay
SWOT analysis
4 P’s (Product, Price, Promotion, Place)
Advanced search
e-Bay catalogue
Launched tailored shopping experiences
Reviews and feedbacks
New Platforms
• Paypal
Unmatched advantages
Delivering greater value to consumers and merchants
Reviews for Paypal
• Groupon
SWOT
4P’s (Product,Price,Promotion,Place)
Segmentations (Geographic,Product Type,Lifecycle,Personal Data)
• Markafoni
Advantages of Private Shopping
4 P’s (Product, Price, Promotion, Place)
Factors Influencing Consumer Behaviour while shopping at Markafoni
Trends&Changing Buying Behaviours
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3. Online Shopping Behaviour
• Online shopping behavior (also called online
buying behavior and Internet shopping/buying
behavior) refers to the process of purchasing
products or services via the Internet.
• Online shopping became popular in the mid-
1990s with the popularization of the World Wide
Web(WWW).
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4. 4

5. Growth of Online Shopping
• In 2010, nearly 70% of consumers have
purchased at least one defined category via
online.
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6. Percentage of people who have shopped
online all over the world
6

7. Segments influencing e-shopping
behaviour
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8. Online Shopping
Advantages & Disadvantages
Convenience Fraud and Security
Information and Lack of full cost
reviews disclosure
Price selection Privacy
Hands-on inspection
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9. • Founded in 1995
• World's largest online marketplace
• With more than 97 million active users
globally (as of Q2 2011)
• Connects individual buyers and sellers, as well
as small businesses
• In 2010, the total value of goods sold on eBay
was $62 billion -- more than $2,000 every
second.
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10. Product
• Broad categories
• New products
• Second hand/ used products
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11. Product
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12. Some prohibited items on eBay
• Tobacco
• Alcohol
• Drugs
• Nazi paraphernalia
• Lottery tickets
• Military hardware such as working weapons or
explosives
• And more..
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13. Price
• Competitors are selling the same product for
less
• Low Starting Price
• Cost-Based Starting Price
• Buy-It-Now Pricing
• Second Chance Offer
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14. Promotion
• Special or reduced price for a specific good
• TV commercials
• eBay coupons
• eBay discounts
• eBay promotional codes
• eBay bargains
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15. Promotion
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16. Place
• eBay Global
global.ebay.com
• 38 localized websites
ebay.co.uk, ebay.fr, ebay.de
• Associatons of eBay
gittigidiyor.com for Turkey
mercadolivre.com.br for Brazil
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17. Strengths Weaknesses
- Online auction leader - Shipping
- Developed CRM - Fake or illegal auctions
- Diversified market by - Inability to control the
branching and localizing contents of the auction
- B2B & B2C - Online service only
- Acquisition of PayPal
Opportunities Threats
- International - Local competitors
expansion
- New markets - Scammers and phishers
- Skype technology - Google Checkout
- Localized websites - Online security
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18. 18

19. 1. Advanced Search
TO FIND: SELECT THIS:
Items for sale, based on criteria like price Find items
or item location
Vehicles, parts, and accessories on eBay On eBay Motors
Motors
Items for sale by a particular seller, if you By seller
know the seller’s user ID
Items an eBay member has bid on, if you By bidder
know the bidder’s user ID
A specific listing, if you know the item By item number
number
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20. 2. eBay Catalogue
• Extensive, online, library of product information
and images for many products on the market
• Fast and easy way to create professional, detailed
listings for your items
• Easier for customers to find and buy exactly what
they’re looking for
• Product specifications like brand, model
number, dimensions, performance, color, capacity
, compatibilities, and professional photos are
automatically included in your listing.
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21. 3. Launched tailored shopping
experiences
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22. • Tickets for sports, concerts, theater and other live entertainment
events
• Clothing, shoes and accessories in detail
• Parts and
accessories, cars, trucks, motorcylces, powersports, boats and
more
• Cameras, cell phones, computers, tv, video, more electronics
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23. 4. New Platforms
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24. 24

25. iPhone Fashion App: Virtually try on sunglasses
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26. Customer Complaints and
Comments
• “Ebay is inundated with horrible customer service. Spent 30 minutes trying to get
a customer service rep. Total lies and greed is driving the business into the
ground.”
Anonymous 11/29/11 5:08PM
• “completely unhappy with this company's arrogance and poor customer service”
dawn socia 11/4/11 9:32AM
• “Great service, friendly agents, great resolution. Thanks eBay!”
skibum2002 9/8/10 12:58PM
• “FANTASTIC! After punchingin a few numbers, I got a delightful young lady to
answered my questions and took action on the case I had called about. I don't
know what I would have done if I hadn't found their phone number!
Thanks.”
Anonymous 11/16/09 11:20AM
http://www.customerservicescoreboard.com/eBay 26

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28. • PayPal is an American-based global e-commerce business allowing payments
and money transfers to be made through the Internet. Online money transfers
serve as electronic alternatives to paying with traditional paper methods, such
as checks and money orders.
• Founded in 1998, USA
• Acquired by eBay in 2002
http://www.youtube.com/watch?v=sLfm0
Wwdikg
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29. • Support for 190 markets, 24 currencies and 20
local language sites
• Manage more than 232 million accounts and
more than 100 million of them active
• Global connections to 15K+ bank partners and
57 financial networks
• Powerful partnership with eBay 29

30. Unmatched Advantages
• Internet Technology
• Pace of innovation
• Fraud expertise
• Global connections
• Digital Wallet
• Cross-border business
• Open platform
• Closed-loop data
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31. Delivering greater value to
consumers & merchants
Rewarding
Consumers
31

32. 32

33. Serving the world’s largest brands
33

34. Reviews for PayPal
• Paypal is great. Paypal is free (if you are giving money), easy to use. It's great. When I get money it
doesn't cost that much and goes to my bank account quickly. I like it much better than Google Checkout.
• "PLEASE READ...DO NOT USE PAYPAL....SHOCKING CUSTOMER SERVICE“ . Hi I have used paypal to send
some items to the buyer who arranged collection and got the address wrong. The the buyer opened up a
claim against me to say that he did not recieve his items with paypal. Basically i then got in contact with
the courier who told me the buyer had just rang up and made payment for storage. Now i thought this was
the end of it... but no due to him no closing the dispute paypal has gone in his favour because the invoice
address is in Bulgaria. I then rang up paypal...
• THEY STOLE MY MONEY! I have a small business that I take payments from my website through PayPal.
Last week I was sent an email out of nowhere that my account now has "Limited Access" and it is
unremoveable. This means that they have locked my account for 6 months and I am unable to remove any
money from it. According to PayPal I am "Linked" to this mysterious other account or accounts and that is
why. They refuse to tell me what account or who owns them or how I even got flagged as "linked" I have...
• As a buyer paypal is great,you can shop with confidence and safe in the knowledge should
something go wrong you are protected. As a business not so good,1 you can check risk/fraud
scores,2 you have to send everything by tracked delivery to ensure seller protection. I have never
lost a chargeback on eBay due to the fact the products were sent tracked (recorded delivery).Your
own website is different as paypal only cover you for non receipt ...
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35. • Established in November 2008
• Deal-of-the-day website
• Best stuff to do/ see / eat/ buy
• In 88 US cities and 41 countries on world which included Turkey
• Multi-billion dollar valuation
• Fastest growing company ever

36. Weaknesses
Strengths •limited number of reliable
•Clear/Simple /Attractive merchants in the local market
•Control over the •Easy business strategy to
payment flow copy
•Use of social media •Mislead advertising
•Good privacy & Refund interpretation /fake
Policy promotion
•Currency exchange & lack of
•Plans for Personalization
trust
Opportunities Threats
• Online trend for Social • Competitors :
media & smart phones GoogleOffers /
• Strong growth in livingsocial.com /
emerging countries Facebook Deals
• Communication channels • Brands are controlled
• More secure online by customers
payment (i.e. PayPal) • Legal concern on
• Personalization privacy policy
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37. Product
• Discounts on nearly everything
• Social places/ Events / Products etc
• Restaurants / Concerts/ Gym’s/ Travel Deals

38. Product

39. Product

40. Price
• Daily deals on product/ service
• Discounts up to 70-80%
• Customers have to buy on Groupon.com

41. Promotion
• Gift Cards
• Refer Friends- Get 10$ coupons
• Personal Deals

42. Promotions

43. Promotions

44. Promotions

45. Place
• Groupon.com for US
• 41 localized websites
(France /Germany/ Hong Kong/ Italy etc)
• Associations of Groupon
sehirfirsati.com in Turkey
citydeal.fi in Finland

46. Segmentation #1: Geographic
• Core Business: Value Proposition
• Discovering local things to do
• “Being geographically relevant”

47. Segmentation#2: Product Type
• Groupon was a pioneer in the deal market
• Competitors emerged: targeting niche
1. Groupon Getaways: focuses on travel
2. GrouponLive: focuses on live events
3. Groupon Now!: same-day deals

48. Segmentation #3: Lifecycle
• Every subscriber was treated same
• “For the best customers, we’re doing things to
reward, recognize and retain them as well.”

49. Segmentation#4: Personal Data
• Gathering data to send personalize offering e-
mails
• 3 types of data for Groupon:
-Self Reported: Age/ Gender/ Zip code
-Appended: Data purchased from third-party services
-Behavioral: Data based on what subscribers click and purchase

50. • Founded in 2008
• Turkey’s first private shopping website
• More than 2.000.000 active users
• Clone of French private shopping website ‘Ventee-privee’
• Available in Turkish market as well as in Australia, Greece,
Ukraine and Poland
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51. • 12.000.000 unique visitor/monthly
• 198.000.000 pageviews/monthly
• 500.000 products sale/monthly
• %700 growth in 2010
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52. •Web private event sales for private clients
•Sales during 2-3 days
•Clothes, shoes, watches, home appliances, perfumes...
with 40-90% sale off
•Clear brand’s last collection stocks (online outlet center)
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53. 53

54. Product
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55. Product
55

56. Price
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57. Promotion
• TV Ads Invitations
TV Ads
Competitions
Blog
Banner Ads Mailing
57

58. Place
Markafoni.com
5 localized websites
BrandsExclusive.com.au
BrandsGalaxy.gr
ModnaKasta.ua
Markafoni.pl
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59. Factors Influencing Consumer Behaviour
while shopping at MARKAFONİ
CULTURAL SOCIAL PERSONAL PSYCHOLOGICAL
Traditional Outlet Invitation based Products based on Impulse buying
Shoppings private shopping gender/age/… (Time pressure and
(WoM, shopping (kids,men,home… price advantage
with friends) categories) encourage to buy)
+Brands
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60. Trends& Chancing buying behaviours
New Payment Methods
Location Based Services
Mobile Shopping
Social Media
Augmented Reality
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61. Mobile Shopping
Tesco: Homeplus Subway Virtual Store
• http://www.youtube.com/watch?feature=play
er_embedded&v=nJVoYsBym88#!
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62. Social Media/New Payment Methods
• http://www.paywithatweet.com/
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63. Location Based Services/
Augmented Reality
The Airwalk Invisible Pop Up Store
• http://www.youtube.com/watch?v=4erNe_Np
dyE&feature=player_embedded
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64. Others
• Starhub’s Musical Fitting Rooms
• http://www.youtube.com/watch?v=ZimcuZZJ2D0&feature=pl
ayer_embedded
• Unicef Repay for Goods
• http://www.youtube.com/watch?feature=player_embedded&
v=q4cHiI_QE0s
• Domino's Pizza location-based App.
• http://www.youtube.com/watch?feature=player_embedded&
v=DjyttGaaq_k
• The Commbank Property Guide App.
• http://www.youtube.com/watch?v=o9T9crNMB_w&feature=
player_embedded#!
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65. REFERENCES
• http://www.ebay.com/
• http://www.customerservicescoreboard.com/eBay
• http://www.ideamarketers.com/?eBay_Pricing_Strategies&articleid=311869
• http://www.wikihow.com/Use-Pricing-Strategies-for-Your-eBay-Business
• http://marketingteacher.com/case-study/ebay-case-study.html
• http://www.cob.calpoly.edu/~ijima/3.pdf
• http://files.shareholder.com/downloads/ebay/1190863356x0x440542/0b4b1525-691e-402a-b8e3-
95ba02e4a382/eBay_2011AnalystDay_FINAL2.pdf
• http://marketingteacher.com/swot/ebay-swot.html
• http://pages.ebay.com/coverage/index.html
• https://www.markafoni.com/
• http://blog.markafoni.com/
• http://www.sinaafra.com/
• http://www.paywithatweet.com/
• http://mobithinking.com/mobile-awards/Cannes
• http://digital.centaur.co.uk/nma/awards/nmaawards2011/
• http://www.marketoloji.com/2011/07/11/tescodan-gelecegin-marketi-ornegi/
• http://pages.ebay.com/sellerinformation/news/highlightingvalue.html#hi
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66. REFERENCES
• Zhang, Ping. Li, Na. CONSUMER ONLINE SHOPPING ATTITUDES AND
BEHAVIOR: AN ASSESSMENT OF RESEARCH. Syracuse University . 2002
• http://www.reviewcentre.com/r53167_3_PayPal_-_wwwpaypalcom.html
• http://jib.debii.curtin.edu.au/iss03_mafe.pdf
• http://en.wikipedia.org/wiki/Online_shopping
• http://visual.ly/online-shopping-statistics
• http://tw.en.nielsen.com/site/documents/2011ShopperTrendOnlineshopping-en.pdf
• http://en.wikipedia.org/wiki/PayPal
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