Tag Archives: purchase behavior

Reorder with Touch of a Button

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In a rush? Running out of basic supplies such as detergent or toothpaste? Amazon has a solution for reordering these and hundreds of other products. Just push a button and the order is placed and shipped automatically. No muss, no fuss.

Amazon Dash Buttons are now available for more than 250 different products, including customer favorites such as Tide, Bounty, Clorox, Gatorade, Gillette, and more. Buttons are a small Wi-Fi connected device. To use it, customers download the app, sign into their Prime account, connect Button to Wi-F,i and select the product to reorder. Amazon sends an order confirmation to the customer’s phone, making it easy to track or cancel the order. The buttons initially cost $4.99 and are available only for Amazon Prime members. For every Button purchased, Amazon gives the buyer $4.99 in credit.

 

Amazon isn’t the only vendor using ecommerce to tie consumers directly to services. Brita is working on a pitcher that will reorder water filters after a certain amount of water has been filtered. Whirlpool is working on a dryer that automatically reorders detergent. And, Brother is developing a printer that will automatically reorder ink when the supply is low.

 

Who needs a shopping list when items are smart enough to order their own replenishment?

 

 

Group Activities and Discussion Questions:

  1. View Amazon’s Web site and video to review the service:

http://www.amazon.com/b/?node=10667898011&lo=digital-text

  1. While the buying process may vary slightly for different products and target markets, the basic 5-step process remains the same: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.
  2. How does the Button fit into the buying process?
  3. Will it work for products that required extended decision making?
  4. Divide students into teams. Have each team identify other products that could benefit from this approach.

 

 

Source: Brandchannel.com

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Track Shoppers by Mobile Phone Signal

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How much do you think retailers know about your behavior? If you said “a lot” you are correct – but few shoppers know to what extent retailers know and gather data about them on every store visit. With new technology from retail-tracking start-up company Nomi, retailers will soon be able to track the amount of time shoppers spend in stores, the departments that are visited, and even the displays that cause shoppers to stop in their tracks and perhaps make a purchase.

Nomi uses technology that captures the shoppers’ mobile-device IDs as they enter store locations. The retailers’ WiFi network tracks the mobile phone signals to a 1-3 meter distance, then uses machine learning to calculate spatial relationships. The product can track several metrics of consumer shopping patterns, including: window conversion (% of customers who walk into store off the street), customer loyalty (% of customers who have been to store previously), visit duration (average amount of time in store), bounce and engagement rate (% of customers who leave immediately or stay for a while), visit frequency (how often customers enter store), and device type (type of phone customers are using).

Retailers are already testing Nomi’s product to test window displays and determine which display garners the higher window-conversion rate. Other retailers use the software to track how long it takes for customers’ orders to be filled.

There are possible privacy implications to the tracking software, even though Nomi stated that the unique device IDs it tracks are never tied to personally identifiable information. However, there is no notification given to consumers that their phones and movements are being tracked. This seems to contradict the Children’s Online Privacy Protection Act, which requires that mobile application providers obtain parental consent when mobile apps are aimed at kids under the age of 13. Nomi counters that it is working on an opt-in system that will allow shoppers to identify themselves in return for getting coupons and deals from the retailer.

Group Activities and Discussion Questions:

  1. Bring up Nomi’s company information: www.getnomi.com
  2. Examine competing products from RetailNext (http://www.retailnext.net)and Path Intelligence (http://www.pathintelligence.com).
  3. How do these products assist retailers with understanding consumer behavior?
  4. In teams, have students identify stores that could most benefit from using this technology.
  5. How can the data be used in the short-term? In the long-term?
  6. Discuss in class the privacy implications of this tracking software.

Source:  Ad Age Daily, 2/11/2013

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