Packaging for Ecommerce Understanding Online Shopping Behavior A - - PowerPoint PPT Presentation

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Packaging for Ecommerce

Understanding Online Shopping Behavior

A Coca-Cola Case Study

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China E-commerce Evolution

The explosive growth of online shopping has revolutionized the world

• f retailing – with sales expected to exceed $752 billion (2016) in
• China. And this trend is likely to continue, creating some

uncomfortable disruption as well as amazing opportunities for consumers, manufacturers and retailers.

• Ecommerce on Mobile is only going to grow

exponentially

• Online food and beverage business will explode
• Lower tier to outpace high tier in Ecommerce sales
• Social communities will influence Ecommerce sales

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Online shoppers are faced with complex Ecommerce environments that is constantly evolving …

CONSUMERS

Marketers are facing challenges to keep their products salient in these new fighting arenas

BRANDS

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Easy as A-B-C?

Just take a pack shot and put it up?

Or more complicated?

Category page Can I communicate effectively the pack quantity? Can I communicate effectively the pack size? Do I have too much information in my visual that shoppers are deselecting information? Can a more visceral image improve sales conversion?

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While the shopping environment is complex…

The shopping behavior can be predictable

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To Navigate Complex Ecommerce environment, We Use Two Systems of Thinking

While shopping is typically driven by “System 1”, research often focuses on “System 2”.

COGNITIVE Deliberate Slower Involved Facts System 2 INTUITITIVE Autonomic Fast Effortless Feelings System 1

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Coca-Cola Case Study

Coca-Cola is looking to evaluate their new designs to be put on the E-tailer platform. The e-store design and development needs additional shopper insights to help improve its shop-a-bility and conversion to sales.

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Our Attention Span Have a Threshold

From here, less than half

• f the online shoppers

will notice your products ~ 7 mobile phone scrolls

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Our Physiological Visibility Have a Consistent Pattern

2 Columns Singular Row 3 Columns

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Our eyes are conditioned to be lazy. Presenting data in an easy to read manner will promote engagement

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Product image is king! E-shoppers use product image more than the text to infer and make decisions

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No Name %Noting

1 Product Image 2 Product Description 3 Price 4 Comments

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The amount of text determines the amount of information processing and also text deselection

Brand Name Volume 330ml 24 Can Multipack Can format Text "JD supermark… Red Color Packaging Price Brand Name Volume 330ml 24 Can Multipack Can format Text "JD source" Black Color Packaging Price Flash Exposure (1s) Flash Exposure (1s)

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New shoppers of the category In Ecommerce often engage in a herding behavior to reinforce their decisions

Sort sales Search Sort Price Filter JD Filter Brand Filter Category Filter Single size Filter Packaging Filter Pack format Sort Comments Filter Import/export Filter Product source Filter Quantity Filter Price range

Base: 450p Source: Online Sparkling Drinks Shopping

Deselection tools usage %

Sorting by Sales facilitate the choice and encourage the need for conformity

It is tantalizing to follow the majority’s behavior to avoid thinking too much about certain decisions and be part of ‘the norm’.

NORMS

BEHAVIORAL ECONOMICS

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Managing Comments = Managing Behavior

Scroll through images Comments Details Promotions Enter flagship

Exploratory tools usage %

Base: 450p Source: Online Sparkling Drinks Shopping

Viewing product pictures by

• ther buyers as they are the

real messengers

Transmitter

We give more credence to someone familiar and in this case, the most familiar person is the person who is not communicating from the business and is showing the products bought

BEHAVIORAL ECONOMICS

Clicking on comments influence perception

We are more sensitive to a loss than to an equivalent gain. We react more to what is framed as a loss than to what is framed as a

• gain. Losing 100RMB is about twice

more painful than winning 100RMB is enjoyable.

Loss aversion

BEHAVIORAL ECONOMICS

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Even with the same pack, different display execution will encourage different online behavior

EMOTION ORIGINAL QUANTITY Bought from category page Bought from category page Bought from category page

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Product images need to ‘survive’ different contexts

Shoppers shopping on Landing Page Shoppers shopping on Product Page Shoppers shopping on Checkout Page

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The right visuals can help change perception of the product and brand

Quenching The Thirst Suitable for Summer Drinking The glass serve as a reference to product pack size

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Reinforce competitiveness

A picture is worth a thousand words Romance your way into your shoppers’ hearts Unseen is unsold Visibility is a function of contrast Size Perception Matters Be Consistent, Have Hierarchy Set your Anchor Reserve the best seats

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Choose the right emotional cues and amplify it Control the flow of information

For Coca-Cola specific learnings For Category learnings

10 Learnings for KO E-commerce

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A picture is worth a thousand words

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Which one of the above text description are you more incline to read?

• Shoppers tend to look at visuals

more than text to process information.

• Having the visual convey

information on quantity, size and format will ensure no mistaken identity.

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BEFORE AFTER

Brand Logo Pack Size Emotional textures

Key Product Shot

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How it looks like in EC platform

Easy to stand out

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Control the flow of information

DO NOT

• Ecommerce shoppers naturally

ignore information if it is presented to them in ways that requires extra effort (E.g. Zig Zag display).

• Design with System 1 Fast

Thinking Shoppers in mind.

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Product Description Page

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Key initiatives to follow…

• Apply our learnings to other platforms…
• Apply our learnings to all product portfolio…
• Update our online design in a regular base
• Set up our fast-reaction mechanism

Embrace the change

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