Consumers and E-Marketing

The processes of reaching out to people you know is a naturally human. Advice from friends goes through at least three flaws:

1. Friends tend to think highly of their own decisions, which leads them to recommend things they have previously bought. For example, I own a Honda Civic. If a friend would come up to me asking for advise on what car should he or she buy, I would totally recommend a Honda Civic because based on my experience a Honda is durable, gas friendly, and reliable.

2. Friends tend to tell others what they want to hear. Your friends are not likely to tell you anything that disagrees considerably with your point of view. They will twist what they say about their real feelings to make them more alike with yours.

3. It is time consuming to make contact with people and get their advice. When I have a problem and I decide to fix it, I, like most of us, am not disciplined enough to wait a week or two while we reach out to selected friends in search for information.

It is then that the Internet comes really handy, making all our research easy and fast. It is also very quick and easy to reach out to retailers, salespersons or wholesalers for information. This is why the Internet is the first place people go to do research to give a hand in their purchase decision.

Even if people have to visit a store to make their purchase, you can expect they will look the store up online to check store hours, get a map and maybe even request some information before they visit the store.

Everyday the decision making process becomes more dependable on the Internet. We have the Internet available to us everywhere we go, on our phones, school, libraries, house and work. Many companies take advantages of this and create ads to activate consumers’ need recognition because consumers just don’t walk into a store and say, “I notice you have things to sell. I have some extra money I would like to spend, so just give me something and charge it to my credit card.” Consumers buy products when they believe the product’s ability to solve a problem is worth more than the value of that product.

Sources:

http://www.emarketingassociation.com/

http://www.ecommerceoptimization.com/ecommerce-introduction/

Social Media and Retailers

The growth of new media has increased communication between people all over the world. It has allowed people to express themselves through blogs, websites and pictures. Ten years ago or even less, who would even imagine that people would spend over 700 billion minutes per month on Facebook alone or that two out of three online U.S. households use social networks such as Facebook and MySpace.

Social media offers consumers an interactive and more personal relationship with a company, brand, celebrities or even friends. As people became more media savvy, they were more interested in being treated as peers.

Many companies are taking advantage of social media, including retailers. Retailers across the nation find this new way of communicating with consumers very practical and rewarding for their business. First of all, this new media is very cheap if we compare it with traditional media (television, radio). In addition, many of these retailers have really learned to take advantage of the best side of social media. Building a relationship with consumers help retailers build a reputation since this media is another word for online word of mouth.

Social media can be a powerful tool for listening to customers and building a reputation for responsive service

Retailers like Old Navy, Macy's and Gap used this tool to promote their merchandise, give coupons and inform consumers about fashion trends that will drive customers to their stores. By allowing customers to give feedback about their clothes, experience or expectations as shoppers and responding to their comments, these retailers are at an advantage because relevance it's not about pages, it's about relationships.

Sources:

http://ipwatchdog.com/2011/02/08/congress-new-media-facebook-twitter-social-media-communications/id=15036/

http://www.websocialarchitecture.com/community/2008/06/a-conceptual-ma.html

http://adage.com/cmostrategy/article?article_id=145430

Downloadable money at Starbucks

Smart-phones have similar effects on the society as regular cell phones. They are more of multi-purpose computers, allowing us to play games, take pictures or videos, send and receive e-mails and text messages, and even browse the full web. Starbucks' mobile payment application is the perfect example of how the Smartphones have clearly changed our environment completely.

Starbucks developers were trying to implement an application that will make it easier for people to buy their products. Customers can pay with their smartphone by holding their mobile device in front of a scanner on the countertop and scan the Starbucks Card Mobile App’s on-screen barcode to buy their latte, frappuchino or just a marble loaf. In recent years, Starbucks has been successful at developing a brand identity for their customers. For example, people do not only buy a Starbucks' coffee only for its flavor, but also for what its brand represents. Starbucks is outgoing, youthful and friendly. It has been demostrated trought their packaging, decor, atmosphere, product offerings and company culture. Their merchandise drives an unique flair. Starbucks customers are loyal to the brand, so Starbucks is willing to give their customers the option of the interaction with an employee or just scan their smartphone.

Through this innovative application, Starbucks is offering their customers flexibility, comfort and rapidness. Smart-phones affecting our culture and society is mostly a good thing.

Paola

Sources:

http://www.powerhomebiz.com/vol144/starbucks.htm

http://bits.blogs.nytimes.com/2011/01/18/now-at-starbucks-buy-a-latte-by-waving-your-phone/?scp=2&sq=starbucks&st=cse

http://www.highbeam.com/doc/1G1-175701974.html