This post details how to develop data-driven analytics support for e-commerce. E-Commerce is a fast-growing and highly competitive space. Businesses need to continue testing and… Read More »Data-driven Analytics Support for E-commerce
In this post, we look at the Lawson Model for Decision Process of Buyer. Business is responsible for selling the goods in the market so must have the knowledge of how the buyer actually makes their decision. It involves 5 stages:
- Need Recognition: Business must recognize the needs of the consumer as well as how these needs can be satisfied. For example, if a person is hungry then food is desirable.
- Information Search: Consumer searches the information about the product either from family, friends, neighbours, advertisements, wholesaler or by examining or using the product. For example, a person uses his recommendation for the meal for lunch. The various options are take-away, restaurant, deli or even supermarket. There is also the choice of meal which could be either salad or sandwich.
- Evaluation of Alternatives: After getting required knowledge about the product, the consumer evaluates the various alternatives based on the basics of its want, satisfying power, quality and its features. For example, if for lunch, a small meal is the desirable healthy alternative.
- Purchase Decision: After evaluating alternatives the buyer buys a suitable product. But there is also the chance to postpone the purchase decision due to some reasons. In such cases, reasons must be found and removed either by providing sufficient information to the consumer or by giving guarantees to the consumer. For example, a person decides to buy a salad from a restaurant.
- Post Purchase Behaviour: After purchase, a consumer is either satisfied or dissatisfied. If a consumer is not satisfied, he will be disappointed. If he is satisfied he will be delighted. It is usually said that a satisfied consumer tells about the product to 3 people and dissatisfied consumer tells about the product to 11 people. Therefore, it is important to satisfy the consumer.
Among the contributions of Joseph Schumpeter to economics was an understanding of long economic cycles, and how these are initiated by “clusters” of innovations (Schumpeter,… Read More »Steps to improve Indigenous Innovation in Ireland
This post details difference between disintermediation, re-intermediation and counter mediation. The short summary helps to provide a clear understanding. Disintermediation means to remove intermediation from… Read More »Difference between Disintermediation, Re-intermediation and Counter mediation