Study: Relationships Trump Comparison for B2B Shoppers

[immy79]

Article:
Relationships Trump Comparison for B2B Shoppers (http://www.ecommercetimes.com/story/51696.html)
Source - E-Commerce Times

Snippet:
"Although comparison shopping motivates many a consumer to shop online, it's second fiddle for small businesses shopping on the Net, according to a study released by JupiterResearch last Friday.

According to the lead analyst for the study, Sonal Gandhi, the most significant factor governing purchases on the Web by small businesses is previous experience or familiarity with the seller."

Talking Points:
As a small business owner, are you more swayed to purchase something based on comparison shopping? Or does previous experience and familiarity play a more important role?

[Red Flare]

Of course prior experience is super improtant. If I got lousy service and the person I am dealing with is an ass, I will go out of my way to source another supplier.
...On the other hand, low prices are important because I could pass the savings on to my customers and thus increase volume even if it means more headaches for me. A perfect supplier would be nice to talk to and have great prices (yeah right:))

[Bruce - PhosphorMedia]

The issue of trust online is probably more pronounced than onstreet. While most onstreet vendors proport a sense of stability simply because they have a physical location, that stability is harder to substantiate online.

Not having any real data, I would guess that if a shopper was shown a product from say Best Buy online, Amazon, and Office Max...they will go with the lowest price between those three even if they have never shopped there. However, if you throw in a small retailor who IS known to the shopper, even if the price is somewhat higher...they will opt for the "known" entity.

In the general sense of business, this is what is called "aquiring customers". Most businesses even have a cost of aquiring a new customer. For an obvious example, look at Cell phone providers...that Free to 49.99 phone costs them 200.00, plus another 100.00 to put you in their system. But with an average per month fee of 80.00 they can quickly make that back, even if their margins are below 50%. Not so obvious are the tools like Safeway Club Members. Grocery margins are pretty slim (about 3% to 7%), however, the average consumer 5K to 7K a year on groceries...so, they make up in volume. The "club" prices is what creates the "Shop Here" mentality

Bottom line (cause its been a long day and i have no idea of how much sense this is making) is that focusing on "aquiring customers" rather than making sales is a traditional and proven way to a successful business...which is basicially what the artical is about.

BTW: here is a hint from a pretty successful online business. He used to run promos where you enter a key word, and got a free product. Now, he includes a free gift (unannouced) in every package. The response has be overwhelmingly postive. Not only is he getting thank-you emails, he can actually see the increase in repeat orders.

[jason - jmh web services]

BTW: here is a hint from a pretty successful online business. He used to run promos where you enter a key word, and got a free product. Now, he includes a free gift (unannouced) in every package. The response has be overwhelmingly postive. Not only is he getting thank-you emails, he can actually see the increase in repeat orders.

On that note, I just got two custom suits made. I asked if they did ties along with shirts and suits? He said no. After I received my suits, a follow-up package came in the mail with 4 silk ties.

[Bruce - PhosphorMedia]

Oh, is that why you changed your picture...or was it a case of "the other way around" <G>.

Guess we know where you are getting your next suit too.

[jason - jmh web services]

Oh, is that why you changed your picture...or was it a case of "the other way around" <G>.

Guess we know where you are getting your next suit too.

Definitely.