A study of the multi-channel nature of consumer decision journey

Abstract

In the last couple of years E-commerce has emerged as as one of the most promising and fast growing industries in India with business expected to touch $16 billion by the end of 2015 [1] and the $100 billion mark by 2020 [2]. Rapid technology adoption and better connectivity have substantially increased the number of E-consumers. India has also witnessed a tremendous rise in mobile usage across different sections of the society. This has led to E-commerce companies branching out into the mobile space as well. The M-commerce market here is expected to grow from the present value of $ 2 billion to $ 19 billion by 2019 [3]. Factors such as rising income levels and the advent of affordable mobile devices largely fuel this growth [4]. It is also interesting to note that 54% of consumers have purchased a product or service from their smartphone which points to the widespread acceptance of the channel. Many e-retailers such as Flipkart and Snapdeal are making a bold move and are now contemplating to go app only. A mobile shopping experience is superior in many respects to a web based shopping experience. A cell phone is a more personal device and consumers have the option to shop and get work done on the go. Consumers can make payments and receive personalised and relevant content. But there are downsides also. Limited screen size and constraints on the speed of connectivity are major drawbacks. Before the proliferation of internet commerce, many retailers banked on geographical limitations and information asymmetry to increase their profits. But in todays world as more and more channels open up for consumers, this can no longer be the case. Information is readily available at the consumer’s fingertips and the concept of door delivery has removed geographical barriers. The present study tries to understand the decision journey of a typical consumer taking into account the fact that the consumer has access to multiples channels though which he can traverse the various stages of the journey. Through consumer depth interviews and surveys, we develop a framework to predict consumer preferences for choosing one channel over the other for specific stages in the journey. We look at certain category and stage specific barriers and triggers which can have a moderating influence on the consumer’s preference for a channel. Such an understanding of the multi channel nature of the purchase behaviour is a valuable tool for the marketer to help customise marketing content specific to the channel and the stage in which the customer is in.