Module 3, Section 1.6 Exercise - The suitability of products for selling online

Look at some suggested products and services and use the ES test to determine whether you think they make suitable online products.

BUYING A CAR

Product Characteristics

Buying a car involves both rational thought about its specifications as well as more emotional thought about how it looks, feels, perhaps even smells. Online shopping can provide a great deal of information about how a car performs, how it is made, what colours and upgrade options are available etc. but cannot give the customer a test drive and the chance to sit inside the car itself. Buyers tend to want to purchase a new car that 'feels right' for them and online shopping cannot give them the experience to make this judgement. (5)

Familiarity and Confidence

Buying a car is an infrequent occurance for most people so time must be taken to think through the different options available. However, the majority of consumers are likely to opt for a named brand they recognise and have confidence in based on prior knowledge of and marketing from said brand. (6)

Consumer Attributes

'Value' shoppers may favour the online method of buying a car due to the savings passed on to the customer by cutting out the 'middle man', in this case the dealership and showroom. However, other types of shopper are less likely to either enjoy or trust the online method.(5)

Total Score= 16/30 - Buying a car online is not the ideal option for everyone, but some consumers may research their purchase in traditional showrooms then use a website to actually buy the product, thus reaping the benefit of online discounting.

ARRANGING A MORTGAGE

Product Characteristics

Taking out a morgage is, on the whole, a rational financial decision made without great emotional involvement. Being unreliant on the senses, mortgages, as with other financial services, are successful online products. (8)

Familiarity and Confidence

As with buying a car, taking out a mortgage doesn't happen many times in a person's life. Research must be carried out into terms and rates in order to make the best informed decision. Again, however, most customers will be aware of named brand banks and building societies and may be swayed by existing loyalties to branches holding their current accounts, credit cards etc. (6)

Consumer Attributes

'Value' shoppers may prefer the online method of organising a mortgage due to the availability of comparison websites allowing the customer to compare rates from a variety of vendors. 'Convenience' shoppers would find the online method less time-consuming than organising meetings with bank managers and building societies. 'Habit Shoppers' may also appreciate the online method as they can go straight to their regular bank or building society and sign up quickly. 'Ethical' shoppers may find that there is more choice online, with the choice of more Internet-only banks.(9)

Total score = 23/30 A service likely to succeed online.

BUYING WEEKLY GROCERIES

Product Characteristics

People either love it or hate it, but weekly food shopping is a necessary evil. For some, this experience will be devoid of sensory and emotional input - merely a case of selecting the same old products based upon price and routine. For others, food shopping is a sensory indulgence with coffee to smell, fruit to feel and titbits to taste. Depending upon the customer, online food shopping is a Godsend or alternately a removal of the fun from the weekly supermarket trip (6)

Familiarity and Confidence

Weekly shopping trips are as familiar and routine as they come, with many 'repeat' purchases of the same item. Online shopping suits this kind of repetitive commerce and can offer the consumer all the usual brands they gravitate towards in the conventional supermarket. (8)

Consumer Attributes

The online buying of food is not good for 'social' or 'experimental' shoppers as there is little chance to meet people, browse the aisles for new products, try things out etc. However, the online supermarket is perfect for the 'habit shopper', the 'convenience shopper' and the 'value shopper' (7)

Total score= 21/30 A winning service for the majority of people

ARRANGING A WEDDING VENUE

Product Characteristics

Booking a wedding venue should be a once in a lifetime choice, hence a decision potentially full of emotion. However, it is also a decision to be made rationally based upon budget, number of guests, menu, colour scheme etc. and a great deal of this information can be conveyed online. (5)

Familiarity and Confidence

Booking a wedding venue is a special one-off decision involving little brand loyalty and both rational and emotional factors. Buyers are unlikely to have much familiarity with venues and are likely to still want to visit them in person before confirming a booking. A Website would be a great research tool prior to organising visits, but less suited to 'closing the deal'. (3)

Consumer Attributes

The 'value' shopper may use the Internet to find the best deal for their wedding venue and the 'convenience' shopper may use the Internet to find venues a distance from their homes. However, I feel the majority of shoppers would not book their wedding venue using the Web alone, but would probably combine web research with visits to potential venues.(5)

Total score = 13/30 A product unlikely to succeed online. Weddings are too subjective and emotional to organise through a few clicks of a mouse

BUYING SHOES

Product Characteristics

Buying shoes is an experience based upon sight, smell and touch/feel. Online customers can see what the product looks like, but will not know how the product feels until they have purchased it. (3)

Familiarity and Confidence

Most people buy several pairs of shoes a year and know what styles, sizes and colours to aim for. Some people have preferred brands and display a loyalty to these. However, without the capacity to try on the product some consumers may lack the confidence to buy the product in question (4)

Consumer Attributes

'Experimental' shoppers and 'convenience' shoppers would enjoy being able to buy shoes online but the 'habit bound' shopper and 'social' shopper would favour the traditional shoe-shop method (6)

Total score = 13/30 Another product which is unlikely to make a huge hit online. People often want to try the product on, and that is where the Internet will let them down

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Last updated on Friday, 31-Oct-2003 09:43:54 GMT