Information achieved via social networks rather than on information

Information Search

In
the digital environment, consumers are affected by social influence from online
reviews and recommendation, as well as from offline sources. The digital
environment allows consumers to tap into 
information from a much wider group of consumers, including people they
do not know personally. Improved access to information about products, services
and prices has been shown to have positive benefits for consumers, however,
some consumers may find the volume of information available overwhelming. A
social network provides a forum for consumers to advice and provide suggestions
to friends in their network. Consumers may be more likely to trust information
from people they know and may therefore put greater weight on information
achieved via social networks rather than on information from other online
reviews.

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 ANALYSIS OF INFORMATION

Consumers
do not utilise online search and filtering tools fully and only consider
websites that appear among the top search results. Consumers form reference
points during the search process and the first product or seller viewed as part
of the search process is likely to serve as the consumer’s reference point for
the remainder of the search. Consumers compare subsequent search results to
this reference point, they may require relatively large improvements in product
attributes or reductions in price to choose another product or seller than the
reference point. Trust in suppliers and the information they provide is one of
the major issues in the digital environment. Online consumers trust well-known
brands and, as a result, established brands are gaining market share.The
perceived trustworthiness of different sources of information gives an
indication of the perceived quality of the information provided through
different sources, and also provides an indication of the relative weight
consumers are likely to give to different sources of information.
Recommendations and consumer reviews are highly trusted sources of information
that have been shown to influence consumer behaviour. Consumer trust in
advertising information is relatively low.

PURCHASE DECISION

This
section looks at the stage of the purchase process where the consumer acts on
the assessment of information and makes the actual purchase online. Purchasing
in the digital environment may be more convenient for consumers, especially if
they suffer from time or geographic constraints. However, some barriers to
e-commerce exist that may discourage consumers from buying online, such as
privacy or security concerns.

POST PURCHASE BEHAVIOUR

When
consumers purchase in the digital environment they may experience a change in
the type of problem incurred compared to purchasing offline. Most typically,
problems with e-commerce are related to delivery or the quality of the product
or service. Although consumers often think that problems with online purchases
are difficult to resolve, the majority of consumers are happy with the outcome
of their complaint.

POST-SALE INTERACTIONS

Businesses
can encourage repeat purchases through e-mail advertising. Post-sale emails may
be used to both cultivate consumers and provide customer care. A large share of
e-commerce sellers sends at least one post-sale e-mail to customers.
Guarantees, transparent return policies and order fulfilment have also been
shown to increase the likelihood that consumers return to the retail website.
Post-sale advertising may increase e-loyalty; particularly if the consumer has
opted into the e-mail service.

CONCLUSIONS

 Customers today are highly informed and more
demanding than before. Responsiveness to customer needs and changing market
conditions has become more important for the success of firms and calls for the
introduction of new products and services together with innovation capacity for
a firm (Robertson and Yu, 2003) Our study shows that digital environment   bring
major changes in the purchasing behavior of consumers. The internet and the
development of e-commerce have opened many opportunities for consumers and
businesses. Businesses can benefit from better access to larger markets and to
markets in other countries. Consumers benefit from access to a wider variety of
goods and sellers, greater convenience, improved possibilities to compare
products and prices, and in some instances, lower prices. In addition, all
users potentially benefit from better access to content and information, lower
transaction costs, reduced environmental costs and wider benefits such as
improved learning, innovation and creativity. In the interaction between
consumers and businesses online there may be an issue of information overload.
Consumers are unable to search and analyse all relevant information available
online and use search and filtering tools to identify the most relevant
information. The digital environment leads to lower transaction, storage and
delivery costs

References

Dave
Evans with Jake McKeeby , Social Media Marketing :The Next Generation of
Business Engagement, Wiley Publishing, Inc., Indianapolis, Indiana, ISBN:
978-0-470-63403-5

Dr. Vipin Kumar* & Kadambini Kumari ,A shift Paradigm
of Consumer towards online shopping

 

Dr. Vipin Kumar* & Kadambini Kumari