Top 6 Insights on Digital

Digital continues to bring to marketers more questions than answers. Here I would like to share a set of holistic insights on Digital that comes from an academic research.

1. Higher effectiveness of consumer generated vs company created content.

“Online community participation enhances loyalty and influences new product adaptation. Communication originating in online communities has more pronounced long-term effects than firm-initiated communication” (Yadav and Pavlou, 2014).

“Customer-initiated communication is significantly more effective than firm-initiated communication for acquiring and retaining customers” (Yadav and Pavlou, 2014).

2. Personalization of the digital content is a core.

“Personalization of e-mail significantly increases perceived interactivity and clicks rates up to 62%” (Yadav and Pavlou, 2014).

3. Lower consumers price sensitivity in eCommerce vs offline stores.

“Buyers at online stores are less price sensitive than those at offline stores” (Yadav and Pavlou, 2014).

4. Building loyalty in Digital is more fruitful than in offline.

“… [there is a] strong evidence of higher brand loyalty for online purchases compared to online” (Danaher, Wilson and Davis, 2003).

“Loyalty-based price promotions are more effective in online versus offline contexts” (Yadav and Pavlou, 2014).

5. Price promotions in Digital don’t lead to strong consumers loyalty.

“Customers acquired with online price promotions make shorter-term commitments, whereas those acquired with informational e-mails or search engine ads lead to longer-term commitments (Yadav and Pavlou, 2014).

6. Social Listening can provide critical consumer insights to companies.

“Reviews, particularly their dispersion across heterogeneous customer groups, are predictive of new product success or failure” (Yadav and Pavlou, 2014).

“Negative word-of-mouth behaviors are motivated primarily by a desire to address a perceived injustice” (Yadav and Pavlou, 2014).

Overall, marketers can benefit from these insights by focusing on: 1) Digital activities that will trigger consumers to generate content; 2) creative ways to build personalized consumer content; 3) creation of strong price mix between on-line and offline trade channels; 4) enhanced loyalty programs specifically created for Digital channel; 5) Social Listening programs for new product launches and product/brand ‘always on’ monitoring.


Source: https:// aimia. worldsecuresystems. com/ BookingRetrieve.aspx?ID=315717

Sources: 1. Danaher, P.J., Wilson, I.W., Davis, R.A. (2003). A Comparison of Online and Offline Consumer Brand Loyalty. Marketing Science, 22 (4), pp. 461-476; 2. Yadav, M.S., Pavlou, P.A. (2014). Marketing in Computer-Mediated Environments: Research Synthesis and New Directions. Journal of Marketing, 78, pp. 20-40.

Building Shopper Perceived Ownership in the Era of eCommerce

The reasons why in the countries with developed trade Super- and Hypermarkets have been strongly outperformed traditional trade with over the counter sells are feasible for marketers now.

One of the core drivers of this shift is related with the success with which modern trade stores have managed to build shoppers perception of the product ownership even before shoppers actually put the product in their basket and pay for it.

With the development of the modern trade stores companies also pay much more attention at the ergonomics of the product packagingtrying to stand out from the shelf so much that shoppers start willing to take this product in hands. One of the best experience that shoppers can get with product packaging in FMCG categories definitely refers to Cosmetic Perfumeries. If you are looking for packaging ideas, welcome to the Perfumeries world! The concept of perceived ownership perfectly works here- after the shopper starts product exploration, he or she is eager to put it in a bag.

But what does happen in that case in eCommerce environment? Do eStores have any chances to drive shoppers perceived ownership?

My investigation both across various scientific papers and available books in consumer behavior shows that eStores do have many opportunities to build shoppers perception of the product ownership.

Thus, for instance, R. Dooley (2012) shows that product squeeze page, that represents “one long page filled with product data, testimonials from satisfied customers, and answers to common objections and so on”, allows to build strong shoppers engagement in the product information (see also As a result it builds ownership imagery about the product.

Another driver of the perceived product ownership is linked with different types of augmented reality. Ray Ban represents a strong case on how augmented reality can drive product ownership- in their site a shopper can find a virtual mirror where he or she has a chance to select a type of Ray Ban model, color of glasses and then make a photo of his-/herself via web camera.



To sum up, development of eCommerce technologies allows to enhance and diversify solutions that will enable companies to drive consumers perceived ownership. Therefore, I would recommend marketers to continuously develop enhanced eStore content bringing digital novelties like it used to be with augmented reality to build stronger consumer ownership imagery.

Sources: Dooley, R. (2012).Brainfluence: 100 Ways To Persuade And Convince Consumers With Neuromarketing, John Wiley & Sons, New Jersey