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Marketing Research
SUBMITTED BY: GROUP 4
NISWARTH SINHA
SOUMYA LOOMBA
BHASKAR DAS
ANIRUDH TOTEWAR
SANTANU MANDAL
KISHORE MUDADDA
GURBIR SINGH

Marketing Research
SUBMITTED BY: GROUP 4
NISWARTH SINHA
SOUMYA LOOMBA
BHASKAR DAS
ANIRUDH TOTEWAR
SANTANU MANDAL
KISHORE MUDADDA
GURBIR SINGH

Carbuy.com Market Research Problem-Interim Report
Carbuy.com Market Research Problem-Interim Report

Problem at Hand:
Carbuy.com are planning to launch an e-marketplace that they hope will become a one stop-shop kind of portal for not only comparing vehicles’ features and prices across brands but also the ability to buy them and get it delivered at home. They want to develop a website for the same and need information about the kind of attributes that attract people to a website and increase its brand equity. We need to develop a research problem for the client to find out the attributes which make a website attractive and understand the drivers of an online car purchase.
Secondary Data Analysis:
According to reports, the following facts are relevant in an online purchase and specifically a car purchase: * A growing number of consumers (especially the young) trust user-generated content (up from 66% in 2010 to 72% in 2014). * More than 50% of car shoppers in every market said that positive comments on social media would make them more likely to buy a specific brand. * Interest in buying a car online is increasing: 61% of Chinese consumers would buy a car online, while only 34% of consumers in the US would do so. * The idea of not owning a car remains attractive among consumers- mostly attributed to low cost. * 97% use the Internet for vehicle research and trust online commentary to provide perspective in a purchasing decision * 73% say they are more likely to buy a specific model or brand if they find positive comments on social media. * As many as 44% are even willing to buy a vehicle online * The number is even higher for shoppers who are young and in growth markets, or indeed for shoppers closer to the moment of purchase. * The information sources of vehicle research can be summarised in the following infographic. The inner circle is for 2012-13 and the outer circle represents data for 2014-15.

* The interaction of manufacturers and dealers on social media can be illustrated by the following figure:

* This chart summarises the likelihood of buying a car online in different countries(2012-13 v/s 2014):

Approach:
We have based our analysis of the situation based on the general trends observed in the data research and the numbers of the previous studies. We used these assumptions to define the research problem i.e. make the MDP (Management Decision Problem) and the MRP (Marketing Research Problem). We further formed research questions (RQs) related to each MRP and fabricated a hypothesis around each research question to test. We have also tabulated the indirect questions to be asked to the interviewees during depth interviews and FGDs so as to extract the exact information needed. The first stage of the market research is summarised below: MDP | MRP | RQ | Hypothesis | Discussion Points | Information Needed | How to design a website for an online car marketplace with exceptional user experience, high brand recall and a strong competitive edge? | What kind of people visits a website? | What is the age group of people who visit websites for online purchases most frequently?What is the average duration of time they spend on a website?What types of websites do they visit? | H1: People in the age group between 25-35 years visit websites more often.H2: Younger people spend more time online than older people.H3: Social Networking and e-commerce websites attract most visitors. | Do you visit e-commerce websites? How often do you visit e- commerce websites? Why do you visit a website in the first place? | Customer psychology, demographics and his buying behaviour. Number of online visits Frequency of visits for a purchase | | What attributes drive traffic to a website? | What features does a user look for in a website? How much time does it take to complete a purchase? | H4: Websites offering more features attract more traffic.H5: Attractiveness of a website in terms of user interface drives more traffic.H6: Lesser number of clicks to complete a transaction attracts users for an e-commerce website. | Does the look and colour of website play a role in attracting traffic?Does the payment method play an important role in making a purchase? | Role a live assistance can play in purchase. Role of the graphic user interface of a website. No. of clicks to reach the checkout page. | | Do Add-on benefits prompt consumers for making a purchase? | Which mode of discount people prefer? Flat discount or cash backs?How does the user value sales benefits from e commerce websites?Do cash backs and discounts affect high value purchases? | H7: People prefer straight discounts over cash-backsH8: Discounts and package deals often prompt users to make a purchase.H9: Discounts substantially affect the sales of high value products. | Does price discrimination play a role in making a purchase?Are you prompted by flash sales and offers to buy a product? | How many people avail loan and EMI services?Sales before and after flat discounts/cash backs. Number of visitors on various comparison sites | | What factors increase the accountability of a website? | Does order tracking facility affect the user’s site preference?Does the return and replacement policy affect the user’s site preference?Do the reviews offered on the website affect their site preference? | H10: A tracking facility increases the brand equity of a websiteH11: Google search results/page ranking by Google influence the perception about a website. H12: An accountable return and replacement policy increases the trustworthiness of a website.H13: .Number and reliability of reviews increase the accountability of a website. | Do you trust the product reviews on a website? Why/why not? Have you ever had a bad experience with an e-commerce website?How do replacement policies and tracking facility affect your decision? | Impact of search engine results. Importance of order tracking and delivery. | | Why do people prefer online purchases over physical ones? | Does the user shop online? Why/why not?What kind of items do they buy online?What differentiates online shopping from physical purchases? | H14: People shop online for ease of comparing products, saving time and comfort.H15: People mostly buy low –medium value products online.H16: People don’t like to wait for their products to be delivered. | How many stores do you browse before buying a product?Do you compare prices online before making any purchase? | Time factor in the whole process.No. of choices availableEffect of variety of products on sale. | | What are the factors that lead to high value purchases online? | How important is the touch and feel while purchasing any product?Does the user consider risks associated with an online purchase? And if yes, to what extent?How much time does the user spend in deciding which car to buy? | H17: Touch and Feel of a product is important, especially in high value purchases.H18: Frequency of purchase of low value items is higher than high value items.H19: An online purchase is considered more risky in case of high value purchases.H20: Online research greatly decreases the time spent in looking for the right car and the right features | How important are after sales services?If given an option, would you buy something as expensive as a car online? | Success rate and security of high value transactions.Effect of financing options of buyer behaviour. | | What are the attributes that people consider important in a car? | What are the most important attributes of a car?How many dealerships does the user get in touch with before making a final call? | H21: Value for Money and mileage play an important role in making the purchase decision.H22: Users go through multiple car dealerships before choosing the right car | What are the features you look for in a car? | Important features of cars. | | What are the drivers of an online car purchase? | How much time does the user spend in deciding which car to buy?Is the look of the car enough to influence the final call?What are the sources that the user relies on to decide on the purchase? | H23: Buying a car takes a lot of thought as it is considered a long term asset.H24: Test Drives are important in the decision to buy a car.H25: Car dealers and word of mouth are major influencers in car purchase. | Are you influenced by the advertisements ecommerce sites come up with?Do online reviews of a product such as car influence your purchase decision?Do you use online websites to compare features of a car?Do you think tie ups with insurance companies and banks will influence more people to purchase cars online? | Effect of advertisements on buyer behaviour.Top purchase drivers.Effects of recommendations from brick and mortar retailers.Information about Omni-channel shopping. |
Links to the interviews: Please find the YouTube links for the five depth interviews conducted by our team. * https://youtu.be/dbasZYSfsD4 * https://youtu.be/2NVTAEHtuho * https://youtu.be/ut6VJ0bKvYA * https://youtu.be/LxjdZet946c * https://youtu.be/4TXXYWIvbVI * https://www.youtube.com/watch?v=lBOcAhlJVqA
References:
* CARS ONLINE 2014 Generation Connected-Capgemini Consulting
Link-https://www.capgemini.com/sites/default/files/annual report/768636/img/Cars_Online_2014_Final_Web_Group.pdf * Efthymios Constantinides, (2004) "Influencing the online consumer's behaviour: the Web experience", Internet Research, Vol. 14 Iss: 2, pp.111 – 126 * The roles of habit and web site quality in e-commerce
Chenchen Liao & Hong-Nan Lin: Department of Information Management, College of Management, National Chung Cheng University, Ming-Hsiung, Chia-Yi 621, Taiwan &
Prashant Palvia- Information Systems and Operations Management, Bryan School of Business and Economics, The University of North Carolina at Greensboro, Greensboro, NC 27402-6165, USA * Molesworth, M. and Suortti, J.-P. (2002), Buying cars online
The adoption of the web for high-involvement, high-cost purchases. Journal of Consumer Behaviour, 2: 155–168. doi: 10.1002/cb.97 * Fraumeni, Barbara M.. 2001. “E-commerce: Measurement and Measurement Issues”. The American Economic Review 91 (2). American Economic Association: 318–22. http://www.jstor.org/stable/2677781

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