Online Price Wars E-commerce customers feel that over 80 percent of their decision to purc
Online Price Wars
E-commerce customers feel that over 80 percent of their decision to purchase or not reside in issues beyond their online experience according to a research based on interviews with 976 active customers of various top performing e-commerce companies (excluding travel) including Amazon. com, AOL-Time Warner, and Yahoo. What's really important to customers is brand performance.
Current, former and potential customers were asked to describe their ideal e-commerce company vis-a- vis a subset of the top e-commerce companies. Of the five functional attributes customers use to evaluate e- commerce companies, the Clicks Interaction driver makes up only 15 percent of decision-making. The Clicks driver incorporates all aspects of the customer's online experience, including pricing, customer support, the quality of offerings, and mistake rectification. Brand Performance topped the list (35 percent), followed by Financial Longevity (18 percent), Strategic Direction (17 percent) and Clicks Interaction (15 percent). These five attributes, or drivers, make up 100% of a customer's decision to purchase from a site or not. Customers recognize the value of a well-performing brand and today's top e- commerce companies are clearly meeting their expectations -- a key to their success.
According to the study, Amazon. com is the premier e-commerce company, having translated its Brand Performance into value on the Clicks Interaction. The research shows Amazon's value here is essentially the equivalent of a retail storefront, something that customers don't see in the other e-commerce companies.
Customers wholeheartedly agree that e-commerce companies need to better demonstrate their financial security. What's more interesting is that customers do not necessarily equate financial resources such as revenue, net profits and market value with financial stability. Instead, customers see a company's aggressiveness and ability to seize new markets as increasing their financial longevity. After analyzing 27 bricks & mortar and e-commerce market leading companies, customers ranked Oracle number one in terms of financials ecurity, outperforming others such as AOL-Time Warner, Dell Computer and General Motors. Amazon and Barnesandnoble. com enjoy a high ranking on perceived financial security.
E-Commerce customers are voting with their dollars, and the winners are companies that have shown their brand strength and ability to execute in a proven market space.
With respect to Brand Performance, the study warns e-commerce companies currently evaluating the use of pop-up advertisements: Customers see the use of technology and marketing and advertising as being an inseparable part of the company's brand.
The thing that most e-commerce customers are concerned about is ______
A．their own online experience
B．brand performance
C．their decision to purchase
D．percentage of the issues
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