Digital

Marketing &
E-commerce
Amine Mahou
[email protected]
 LESSON 2
CONSUMER BEHAVIOUR

WHAT WE'LL COVER

TODAY

The 5 stages of buying behaviour: Engel,

Kollat and Blackwell model

What variables influence the buyer's

decision process?

Understanding behaviour to guide

marketing strategy

Amine Mahou - Fall 2021 - UQAM

 PRESENTATION OF A TOPIC ON DIGITAL
MARKETING
List of trendy topics related to digital marketing and e-commerce
The presentation must respect a maximum duration of 10 minutes, followed by a
question period of 5 minutes.
Same teams as for the session group project presentations before the team’s oral
presentation.
The presentation of the topic must include:
Contextualization of the topic
The main issues/challenges related to the topic
Examples of concrete applications
Identification of all sources

Read the syllabus for the correction criteria!

Amine Mahou - Fall 2021 - UQAM

 LIST OF TOPICS
1. Cryptocurrency - How to run an online marketing strategy for your cryptocurrency startup?

2. Email marketing - How Apple's Mail Privacy Changes Impact digital Marketing and marketers?

3. GAFA - Do you trust the giants of the Internet to protect your personal data?

4. Streaming services - The winners and losers of the streaming wars?

5. AI - How Artificial Intelligence is Shaping Digital Marketing?

6. Big Data - How are companies using our data to influence our buying decisions?

7. Showrooming and webrooming: how do retailers survive without a transactional site?

8. Social Influencers: How important are they for content marketing?

9. Neuromarketing - Is there a "buy" button in the brain?

10. E-reputation and brand image on social networks: How to manage a "bad buzz"?

11. Crowdsourcing for innovation and product development: a win-win solution?

Amine Mahou - Fall 2021 - UQAM

 Presentation of a topic on digital marketing
Correction criteria

CONTENT AND ANALYTICAL

ORAL PRESENTATION: DEPTH: 5/15
5/15 Quality and depth of research
Text quality and visual clarity Definition of the theme, description, history, and
Presentation animation quality and respect analysis
of the allocated time Relevance of practical example(s) illustrating the
Quality of the answers to the questions of concepts
the class and the professor Understanding of the theme
Identification of key issues related to the presented
theme

Amine Mahou - Fall 2021 - UQAM

 Presentation of a topic on digital marketing
Correction criteria

MAKE SURE TO:

QUALITY OF SOURCES: The presentation will be up to 10 minutes in length
5/15 and will be followed by a 5-minutes question
period.
Relevance and variety of sources
Students must email the professor the day before
Complete bibliography and videography with
their presentation.
citation of the sources in the slides referring to
You are strongly encouraged to find background
the notions discussed
articles from recognized blogs and sites,
magazines or business newspapers dealing with
the topic in order to solidly document the
phenomenon presented in class.

Amine Mahou - Fall 2021 - UQAM

CONSUMER BEHAVIOUR
Customer vs
Consumer
Often the two terms, consumer vs customer are
interchangeably used in the common context.

In simple vocabulary :
A consumer is someone who consumes a
product. Similarly, a customer is the one who
buys or purchases a product or service.
 A COMPLEX DECISION-
MAKING PROCESS

The decision-making process has become

more complex over time
Darty announces 6 visits to its website
before buying a TV

Fragmented customer journey

Analysis of 3000 orders = 3000 different
customer paths...
The path that leads to a purchase has become
very random and multiform (C. Barba, p.30)

Amine Mahou - Fall 2021 - UQAM

 Consumers are spending more time viewing media :
Video consumption has skyrocketed during the crisis and is expected to stay strong
in the post-COVID era.

There’s a feeling of economic insecurity, leading to price sensitivity

Deal seeking, looking for promotions and offers, Cutting back on non-essentials (e.g.
High-end/Luxury Goods), local brands, or private labels.
The new
A “Maintain” mentality is more prevalent than a “Gain/Grow” mentality right now

The pandemic has created a priority on shopping local

reality of
Proximity, product origin, and stock availability are now key elements for shoppers

Consumer attitudes toward healthy lifestyles have evolved

customer
consumers are re-evaluating their priorities, lifestyles, and values, looking to improve
how they manage their health and wellness behavior
Consumers are seeking contact-less retail.

New users are one driver of customer behaviour and e-commerce growth.
A portion of online market share will be driven by older generations who are now
comfortable with digital channels.

https://www.criteo.com/blog/10-consumer-behaviors-shaping-the-new-normal/

Amine Mahou - Fall 2021 - UQAM

 THE CHALLENGE

ONLINE/OFFLINE...
AN UNINTERRUPTED
EXPERIENCE!
The ability to manage the synergy of different
channels, unify the customer experience, and
optimize the experience at each stage of the
buying process.

Amine Mahou - Fall 2021 - UQAM

CUSTOMER JOURNEY
 THE CUSTOMER JOURNEY

DEFINITION

The customer journey is the sum of the

experiences customers have when interacting
with your company and brand.

Instead of focusing on just one part of a

transaction or experience, the customer
journey documents the entire experience.

Amine Mahou - Fall 2021 - UQAM

WHY IS IT IMPORTANT FOR
MARKETERS TO STUDY
CUSTOMER BEHAVIOR
Understanding consumer behavior is essential to find success for
the current products as well as new product launches

To understand the expectation of customers

Discovering customer motivations, needs and expectations beyond price or
quality. what do consumers buy, why do they buy, when do they buy, how
often do consumers buy, for what reason do they buy, and much more.

To learn what influence customers buying decision

understand how customers behave while deciding to buy a product that
satisfies their needs. Study of the actions of the consumers that drive them
to buy and use certain products.

To design marketing mix strategies

so they can develop separate marketing programs and tactics.

Amine Mahou - Fall 2021 - UQAM

 MAPPING A TYPICAL
CUSTOMER JOURNEY

Customer journey mapping is a visual

representation of the path followed by a
customer to get to a specific action.

The best way to map a customer journey is to

put yourself in the customer's shoes and go
through the different steps that the customer
goes through during his interactions with your
brand.

Amine Mahou - Fall 2021 - UQAM

 https://www.dolist.com/blog/digital-retail-omnicanal/comprendre-les-phases-du-parcours-client/

Amine Mahou - Fall 2021 - UQAM

 THE CUSTOMER JOURNEY AND BRAND TOUCH
POINTS

Amine Mahou - Fall 2021 - UQAM

 EXAMPLE OF CUSTOMER JOURNEY & CONTACT
POINTS
Your Potential Customer is shopping in downtown and notices your store and your brand (contact). She enters
and looks at the layout of the shelves (contact). Your salesperson welcomes her (contact) and offers to help
her (contact). The salesperson is friendly (contact) and knowledgeable (contact) and helps her choose a
great pair of shoes (contact).

Your new customer is told that if she changes her mind, she can return the shoes, no strings attached
(contact). That evening, your customer posts a photo of her new shoes on Instagram and mentions your store
(contact). She even recommends your store on yelp.ca (contact), because she is loyal to your brand (contact).
Two weeks later, you send her a promotional email (contact) offering her a discount (contact) and reminding
her of your brand and its values (contact).

Amine Mahou - Fall 2021 - UQAM

 Customer touch points in a customer journey

Amine Mahou - Fall 2021 - UQAM

MODEL OF CONSUMER
DECISION-MAKING
complete model of consumer decision-making
The Engel-Kollat-Blackwell (Engel et al, 1968, p. 500)

ENGEL J.F., BLACKWELL R.D., MINIARD P.W., Consumer Behavior, 6th ed., The Dryden Press, Chicago, 1990.

Amine Mahou - Fall 2021 - UQAM

 1 2 3 4 5
Identification of Information Evaluation of Decision Evaluation
the needs search alternatives and purchase post-purchase

A 5-STEP DECISION-MAKING PROCESS

Amine Mahou - Fall 2021 - UQAM

 STEP 1: PROBLEM RECOGNITION/ MOTIVATION
The first step of the buying cycle is that the consumer recognizes
a problem which needs to be solved. This is where you should highlight customer
challenges/pain points

A Customer needs can be dictated by stimuli :

Two types of stimuli: Internal (hunger, thirst, ...) or external (advertising, smell, social media, ...)

Several types of needs :

Functional need: Response to an observed and tangible problem (e.g. need for a car to go to work, need to
travel from point A to point B)
Social need: Desire to belong or to be part of an environment (e.g. purchase of a Ferrari, first-class travel)
Need for change: Desire to move from situation from A to B or status changes (e.g. purchase of a new car, air
travel vs. car)
Other needs: Maslow's Pyramid of needs (physiological, security, belonging and love, and personal fulfillment)

The importance of the need and the means (price, ease, ...) is crucial.
If the gap between need and means is acceptable = purchase decision.

The virtual world is now as much a source of stimuli as the traditional world.

Amine Mahou - Fall 2021 - UQAM

 MASLOW'S HIERARCHY OF
NEEDS

Maslow's work (1954) allows us to classify human

needs by importance in 5 levels.

confidence, strength, self-belief,

personal and social acceptance,
and respect from others

Amine Mahou - Fall 2021 - UQAM

 STEP 2: THE SEARCH FOR INFORMATION

After the identification of the need comes the search for solutions
The more complex the choice, the more the consumer will be involved
and look for information likely to meet his needs.

Internal information: From the consumer

From the consumer's memory, opinions and/or past experiences.
Sufficient for a usual purchase or of no particular value.

External information: Not from the consumer

The information delivered by family and friends, advertising, a
sales action, promotion, ...

Amine Mahou - Fall 2021 - UQAM

 Today, 93% of consumers read reviews during the buying
process.

80% trust reviews as much as personal recommendations.

The first study conducted by Google concluded that, on

average, consumers consult 10.4 different information
sources before making a purchase. Today, that number has
exploded to 22 sources.

Amine Mahou - Fall 2021 - UQAM

 ZMOT Moments of Truth
Google defines the ZMOT (Zero Moment of Truth) as the moment when a consumer has
an expectation, an intention that they want to fulfill, or a question that needs to be
answered by conducting an online search.

Amine Mahou - Fall 2021 - UQAM

 https://www.youtube.com/watch?v=g40rrWBx2ok

Amine Mahou - Fall 2021 - UQAM

 STEP 3: ASSESSING OPPORTUNITIES
After the identification of the need and the search for information comes the
analysis of the different alternatives.

Objective: to choose the most suitable option to address the need

The evaluation will focus on two types of criteria:

Objective criteria: which are comparable
Examples: Price, features, characteristics, ....

Subjective criteria: Not comparable and specific to the individual

Examples: Perception of the products, brand image, ...

Once these criteria are analyzed: Sorted to keep, reject or find additional
information if insufficient, to make a decision.

Important purchase = Large involvement = many comparisons

Word of mouth is often considered more reliable than advertising:

Price comparison sites, recommendations, social networks, chat, etc.

Amine Mahou - Fall 2021 - UQAM

 STEP 4: THE DECISION AND THE PURCHASE
The consumer is now ready to buy, but...
Other factors can still influence their decision:

The quality of the shopping experience and the quality of the store
Customer service and special policies (returns, discounts, etc.)
The presence of promotions constitutes an "exceptional opportunity''.

The decision-making process is multi-step and may seem "rational"... it is

nevertheless not always the case as the possibilities are so wide (reminder:
3000 purchases, 3000 different paths).

Several traditional and online channels to make the purchase =

multiplication of options.

Amine Mahou - Fall 2021 - UQAM

 STEP 5: POST-PURCHASE EVALUATION
After the purchase, the consumer will look back on his action and evaluate it in
relation to the needs identified at the beginning.

Two possible reactions with immediate and future implications:

Satisfaction:
Product and brand meet expectations.
More accessible research and information phases for future purchases.
Creation of a brand/customer relationship and development of loyalty =
Recurrence $$$.

Disappointment:
If the product has not reached the level of expectations set by the consumer.
The consumer will go through the four previous phases.
Devaluation of the brand image and trust is difficult to recreate.

With the Internet and social networks, consumers can now easily share their positive
or negative opinions. Do you do it?

Amine Mahou - Fall 2021 - UQAM

Exercise: 15min in small groups.
Describe your buying decision process when
completing a project:
Booking a trip
Buying a car
Shopping for a new insurance
Buying a new home
Gym membership
Purchase of a new computer
Etc.
 A PARADIGM SHIFT

Amine Mahou - Fall 2021 - UQAM

What do you think motivates consumers to
shop online?
 MOTIVATIONS TO SHOP ONLINE
What motivates consumers to shop online?

Utilitarian Context :
Important characteristics: Convenience, efficiency, selection,
information, little or no human interaction (e.g., a computer).
Specific purpose/need, done as a "to do": Purchase (vs. process).

Hedonic Context :
Important characteristics: Entertainment side, involvement with the
product category, socialization, surprise, discount hunting (ex: a trip).
Importance of the intrinsic pleasure of online shopping: "surfing"
"browsing": Process (vs. purchase).

Amine Mahou - Fall 2021 - UQAM

CONSUMER BEHAVIOR MODEL
ONLINE
Individual characteristics of:
the supply,
the environment,
the brand
and technology
that influence his online purchase decision.

Amine Mahou - Fall 2021 - UQAM

 CHANGES AT THE CONSUMER LEVEL
CONSUMER EMPOWERMENT : MORE POWER TO THE
CONSUMER

Since 2005, an active consumer rather than a simple receptive user: Wikis,
Aggregators, blogs, social networks...

An active consumer rather than a passive one (Wong et al. 2005)

A consumer as a co-producer (McCole 2004)

Sets the price himself.
Design their own product .ex: Nikeid.com, Oakley, etc.
Has an influence on you via electronic word of mouth, especially if you
are connected with him (what you click, listen, watch...)
Ex: Instagram, Youtube, Facebook, Linked In, etc.

Amine Mahou - Fall 2021 - UQAM

 DIGITAL POWER: PERSONALIZATION AND
TARGETING TO INFLUENCE THE PURCHASE
DECISION

The era of hyper-personalization:

Data collection at all levels of the process
Customer history = capital in the brand's relationship with the consumer.
Importance of shared, qualified databases + active CRM.

Targeting has evolved in several stages:

analysis of clicks (clickstream), retargeting, cookies.
The implementation of personalized CRM according to the navigation
path or even the customer path.

Amine Mahou - Fall 2021 - UQAM

 “Without data you’re
just a person with an
opinion.”
(Sans données, vous êtes juste
quelqu’un avec une opinion)

W. Edwards Deming
Amine Mahou - Fall 2021 - UQAM
 DATA: THE FUEL OF E-MARKETING

ONLINE OFFLINE

Cookies RFID (Radio Frequency

Spyware Identification)
Connection logs (log files) Beacons (small wireless Bluetooth
Web analytics of a site sensors that communicate with
Ad servers smartphones)
Online survey / online focus group IoT (Internet of Things)
Customer feedback (SÀC, online Information systems (Customer
product review) Information Database) and CRM
Etc. (Customer Relationship
Management)
Etc.

Amine Mahou - Fall 2021 - UQAM

 EXAMPLE: RETARGETING ON FACEBOOK

Only one in five companies use their data to personalize their marketing when a personalized offer is
much more likely to influence the purchase decision.

Amine Mahou - Fall 2021 - UQAM

 IS THE STORE DEAD?
NO... but it is changing and retailers who do not evolve will die!

What is phygital?

Omni everything
https://www.mckinsey.com/videos/video?vid=3696970206001

Amine Mahou - Fall 2021 - UQAM

 WEBROOMING & SHOWROOMING

Amine Mahou - Fall 2021 - UQAM

 WEBROOMING & SHOWROOMING

Amine Mahou - Fall 2021 - UQAM

 THE DIGITAL IS TRANSFORMING RETAIL

Convergence of the traditional

worlds of retail and e-
commerce towards a seamless
integration of the two via
technology.

Virage phygital du Sports Experts au Carrefour Laval

https://www.youtube.com/watch?v=8hk-DGLdjoI
http://geekbecois.com/sports-experts-techno-carrefour-laval/

Amine Mahou - Fall 2021 - UQAM

 WHAT IF THE HEALTH CRISIS MARKED A PHYGITAL
SHIFT TO CAPTURE NEW CUSTOMERS AND BUILD
LOYALTY?
What if retailers could take back the power of e-commerce by offering a new
customer experience?
Sensory marketing: the sense of smell is associated with well-being and
represents an added value to optimize the customer experience.
It becomes a marker of differentiation for the retailer.
An approach based on olfactory marketing that leaves an actual memory
imprint.
Some stores offer fragrances associated with hygiene and purity, such as citrus
scents, for example.
It creates a customer journey with the same scent in the store as on the hands,
with a scented hydroalcoholic solution to offer a moment of well-being in the
store.

Amine Mahou - Fall 2021 - UQAM

 THE RETURN IN FORCE OF LOCAL COMMERCE
More and more businesses, originally only digital (pure players), are now opening stores with a street
address (e.g. BonLook, Frank + Oak, Amazon), etc.

Suitable for "products that we

want to see, touch, smell or taste,"
"for which a physical contact is
desirable for the consumer."
Jacques Nantel of HEC Montreal

https://www.infopresse.com/article/2017/1/11/le-retour-en-force-du-commerce-de-proximite

Amine Mahou - Fall 2021 - UQAM

 PROVIDE CONSUMERS WITH AN IN-STORE EXPERIENCE TO
REASSURE THEM ONLINE
A balance between online and physical stores: allows new concepts to emerge and give the consumer
an experience to redefine retail.

Ex. Lush which makes 70% of its

sales online but lets you try all
its products, Kanuk with its cold
room on Rachel and the
Artichoke Store.

Amine Mahou - Fall 2021 - UQAM

 CALLING ON EMOTIONS - THE ONLINE ART
BUYING EXPERIENCE

Amine Mahou - Fall 2021 - UQAM

 TO EXPERIENCE EMOTIONS AND ACCELERATE THE
PURCHASE
THE ONLINE ART BUYING EXPERIENCE
KAZoART - marketplace dedicated to contemporary art.
Objective:
Offer customer experience to make art accessible to amateurs.
Support artists in the promotion of their works.
Buying process :
Buying a work of art is often an act that is thought over several weeks, involves several family members, and
carries an emotional and affective dimension.
The average budget at KAZoART is 1000 €.
Customer experience:
With the help of photos, a video and an editorial, the artist's life is described, his sources of inspiration, etc.
Add a solid human dimension to create proximity, even online.
Use the site's blog or social networks to let the discovery mode operate and trigger a crush.
Reassurance, at the heart of the customer experience: The customer service is available by email, phone or
chat to answer the questions of future buyers and reassure them, for example, on the conditions of shipment:
protection of the object during transport, the possibility of return in case of disappointment, etc.

Amine Mahou - Fall 2021 - UQAM

 PROVIDE A UNIQUE AND ENTERTAINING EXPERIENCE ONLINE AND
FACILITATE OFFLINE TRANSACTIONS
The young, anti-conformist, trend-savvy middle class.
By 2025, it is estimated that 60% of the luxury clientele will be Chinese
Target:
The younger generation, born between 1980 and 2000
grew up in a context of rapid economic growth, travels more and is more
knowledgeable
buys to express their opinions, assert their style and show that they are unique
young Chinese people who are looking for sustainable consumption through a
more ethical and committed fashion.

Importance of customer experience for brands:

Offer experiences in which the act of buying is entertainment.
Collaborate with social networks to bring the customer to the point of sale in a
fun way.
Facilitate offline transactions.

Amine Mahou - Fall 2021 - UQAM

 TOWARDS A CUSTOMER-CENTERED APPROACH
Recherche et
Approche de marketing
CRM développement de Service à la clientèle
intégrée
produit/service

DATA: A tool to aggregate The marketing mix, Involve consumers in the Use social media to respond
current and potential integration of different design process (e.g., Wired publicly and resolve
customers/ segments and communication channels. magazine's Consumer Panels complaints (show other
standardize customer Behavioural analysis and Dell's Idea Storm to consumers that you care
experience and (browsing tracks) is prioritize the development about problem situations).
communication. increasingly targeted to a teams' agenda based on ex Volkswagen
segment, less aggregated demand).
and with more
measurements.
Use of social networks.

Amine Mahou - Fall 2021 - UQAM