mixed mode buying > the influence of the web on the buying cycle
DESCRIPTION
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.TRANSCRIPT
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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.
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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
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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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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
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Male
Female
Buy
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Faites vos jeux!
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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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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
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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
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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
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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
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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
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So…Girl Geeks Rrrrrrrrrrule!
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Need the whole story?
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.