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November 14, 2005
Catching the Customer
For those wary of technology and the entire online shopping process, customer registration is a big impediment, says Nielsen. “Most people still don’t understand the difference between a User ID and a password. Often their name is taken. If they type in Joe27, they may not remember the number later. Or they get confused because they can’t use the same password they use for their email.”
Other concerns for internet-wary purchasers are whether an item is the quality product that the merchant says it is, whether it will actually be sent and whether shipping will be timely.
In his book, Urban argues that the internet enables unprecedented consumer power. Customers can comparison shop at Epinions.com, Dealtime.com, Bizrate.com and hundreds of blogs by just typing in a product name. “With more tools for verifying a company’s claims, customers seek out superior product and service options. There are no secrets anymore,” Urban says. He views eBay as a microcosm of a trust-based economy. It illustrates customer power because customer feedback makes or breaks merchants’ reputations. On eBay, sellers garner star ratings based on the number of positive customer votes and the stars appear next to the sellers’ items. Sellers who earn trust through reputation enjoy higher prices at auction, Urban explains. Used car dealers –– long considered the most abusive marketers offline –– are now perceived to be so trustworthy on eBay that sales reached $2.5 billion in 2002.
Posted by Don at November 14, 2005 04:20 PM
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