Introduction
This report captures the consumer insight on online purchase behavior of Indians. The report’s primary focus is on the action points and recommendations for Jabong which are tied in to the insights gathered through market research.
The comparisons are made with two key competitors of Jabong – Myntra and Flipkart. Points of differences and key features for all the three websites have been highlighted.
Research Highlights (Brief Snapshot)
Flat discountx% off on minimum shopping of Rs y
Buy 2 get 1 free
Buy at lowest price x until stock lasts
Bulk discounts
Cash back offers
10% off on HDFC/xyz debit/credit card
Buy before 12pm today and avail addl. 20% off
Combo product
Joining bonus points
Refer your friends and win reward points
Recommendation
Based on the above analysis, following are few key action points for Jabong:
· Jabong is known for carrying few exclusive premium brands that no other website does. This is one feature which attracts the customers a lot. Jabong should focus more on getting exclusive brands on its website and also creating a buzz around this feature.
· Sign up incentives don’t score high on customer attraction. Instead of giving sign up incentives Jabong should focus more on flat discounts. It is consumer psychology to get attracted to flat discounts. Flat discounts also help in creating more buzz on social media as it creates the correct order of dramatic impact.
· Referring friends is no more an attractive offer for customers. Consumers feel that sharing personal codes on social media or through email with friends is seen as a ‘cheap’ way of getting additional discounts. Youngsters do not want to push their friends to purchase from the website because it makes them look like a miser person. Instead of this option probably an option to gift friends can be created. A similar feature when added by ebay for a brief period of time in the past had received a good feedback.
· Regular emailers on new discounts and offers initially interest customers but when such emails become an everyday affair they tend to go unnoticed. This happens because of several such emails by similar companies and also a predictive nature of the email content. Ideally driving entire purchase through discounts would make consumers expect low prices at all times failing which customers would feel ‘cheated’ since their expectation would not be met. This leads to them shifting to other websites. To tackle this issue emails should be sent periodically and not daily. Apart from discounts, new collections, premium brand availability etc should also be the main subject of the mails. This would ensure that customer feel inquisitive before they open the mail and don’t expect the same discount story inside.
Limitation
The study was based on a 10 day study on different websites and through consumer research. Time factor puts constraint on the depth of the study that could be achieved.
The respondents were chosen on the basis of proximity and might not be completely representative of the consumer base of Jabong and similar websites however care was taken to reach as a broad an audience as possible.