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White Papers
Online
Consumer Behavior (OCB): What it is and How to measure it
How a consumer behaves online is a reflection of two features,
namely his 'Personal Choice Set' (PCS) and the 'Online Features'
(OF's) present, while making his choice.
Many a times OCB is seen independent of the online features
made available to the users.
But there is an important aspect here at play, which experts
tend to neglect, which is known as the 'Effect of Stimuli'.
It is defined as the effect which when present 'matches' the
PCS of the consumer with the OF's present, which constitute
the Online Consumer Behavior in its entirety.
The PCS of a consumer is a function of many traits viz., his nature, character, temperament, intelligentsia, perception, awareness, peer pressure, personality type to name a few. These are all intrinsic or personal factors.
The stimuli is the trigger a user or a consumer, perceives out
of the 'online features' which prompts him to take an action
or impresses upon him to do certain actions, which the company
wants the user to undertake. These actions are known as the
best desired actions. These actions could be offer of 'freebies'
or 'personalized features' on various shopping sites, or it
could be asking for 'user preferences' to offer them customized
news and other similar features. It's the role of the effect
of stimuli to create a match between the PCS of a consumer and
the best desired actions warranted out of them.
These 'Actions' could be like booking a hotel, or making a credit
card purchase, or downloading music etc.
Once the constitution of OCB is clear, the next important aspect
of OCB is:
"How to measure or calibrate it".
In order to measure the OCB, we need to address the following
important questions:
How to measure the success rate of various Stimuli being offered
and their capability to create a perfect match between PCS and
the OF's.
What constitutes the best of PCS? (which ultimately matches
the PCS with the best desired actions)/
Or what shall be a near perfect or perfect-stimuli which will
prompt a desired action?
What online actions/feature are the best desired ones?
Worldwide statistics indicates that more refined the PCS of
a user the more likely she will be prompted to take the best
desired action. For example, research shows that in America
most of the users who undertake online hotel/airline booking
features on a website, have very refined or strong PCS (like
they are high-income, educated individuals, and are highly aware,
and are quite rich as well).
What prompts them to behave as they do is a result of stimuli's
like perceived security, trust, personalized and customized
features like, (ads, create your own choices, have virtual tours
etc.)
So to be successful in creating a satisfactory Online Consumer
Behaviour a company has to undertake the following:
a. Do research and establish the PCS of an online user.
b. Try and provide all the plausible Online Features (OF's)
for users to transact.
c. Find out the Effect of Stimuli (EOS) and measure it for
all the users.
d. To complete the above loop, keep a tab on the Best Desired
Action (BDA) set, out of the available Online Features (OF's).
e. And finally, company's must realize that all the above parameters
will keep on evolving regularly, although at a slow pace and
so have to be monitored on a continuous basis.
f. The effect of other parameters like brand power, company's
strength, market forces etc., will always be there on OCB. This
effect however small it could be, will have to be measured by
the company's and should not be neglected.
Conclusion:
To maximise your OCB model ROI, find the best fit between your
Online Features and Best Desired Actions. Study the PCS of users
and create highly effective Stimuli, once this is done your
OCB model will be a sure hit with your users.
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