Friday, April 10, 2015

Consumer Trust In eCommerce Shopping For Discounts And Values Is As Strong As Ever. Amazon & eBay Lead The Way.

The E-Commerce and Online Auctions industry has experienced a decade of growth as many consumers have become accustomed to shopping for values and making purchases online. Of course, Amazon and eBay lead the way but there are many other options. The industry was briefly slowed by the recession; however, the economic recovery has been a boon to industry revenue.  

This research is not written for consumers and indeed is of significant cost but the online summary may be of interest for those curious about the business topic. 

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Monday, April 6, 2015

Promotional Offers Allow Merchants To Segment Their Customers Based On Their Willingness-To-Pay.

For many people, promotional offers, discounts, coupons and deals are fun and typically lead to a satisfying feeling of value. However, savvy merchants know that many of their customers could not be bothered to search, collect and redeem offers. As a result, it gets tricky for merchants to keep both customer segments happy...and coming back! 

A recent article in the Harvard Business Review addresses the concept of self-segmenting fencing. The idea is that consumers reveal their willingness-to-pay by selecting either the high or low pricing options.  That is followed by a tactical "fence" that separates the two segments. For example, that fence could be a coupon or an email list. When done right, premium customers should enjoy at least one important attribute that the low-price seekers don't get.  The grass should never look much greener on the other side of the fence! 

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