There is no doubt that advances in technology have continually changed the way people live and shop. Online selling is growing and has become a significant of the retail pie, but there are some differences in the customer experiences between physical stores and online selling.
Research
In terms of research, customers are more confident when they do their research online because there are many places top find information as opposed to traditional physical stores where personnel may not offer credible advice (Markgraf, 2021). For instance, one can search the price of furniture by other sellers and compare the price by IKEA online.
Sensory Information
Online retailing does not provide customers with sensory information such as the sense of taste, smell, feeling and hearing (Markgraf, 2021). A physical stores offers all these benefits to a customer. For instance, a seller buying pampers cannot smell the perfume in the diapers brand while a customer purchasing the same product in store can smell the perfume of the product.
Costs
In terms of cost, the cost in the supply chain are characteristically lower online due to exclusion of middlemen in the chain of distribution (Markgraf, 2021). In online transactions, the seller sells directly to the customer while in physical stores, there are intermediaries. For instance, LG sells through dealers, who have to incorporate their profit margins in the overall cost of the product, compared to what would be if the product was sold by the manufacturer direct.
Fulfillment
Physical stores have inherent advantage when it comes to the fulfillment to the customer as the customer pays and goes home with the product. The value of the product is felt immediately compared to online purchases where the customer has to wait at least a day or even longer.
Two products sold Online
The two products that are sold online and which I will review are pampers baby diapers by pampers brand and household furniture by IKEA.
IKEA targets young adults who are in college and young professionals of ages 16-34. IKEA targets young and cost-conscious customers. On the other hand, pampers targets mothers and fathers with young toddlers and babies.
In terms of the 4Ps, IKEA uses low cost selling whereby it seeks to penetrate the market by selling to price conscious consumers while pampers uses non-price competition pricing strategy whereby price is not reduced to increase the demand for its products. In terms of place, both IKEA and pampers have an online presence and they sell through their website. In terms of product, both IKEA and pampers are perceived as quality products (IKEA, 2021). Both brands use search engine optimization and search engine marketing as the means of promoting their products (Lumen Learning, ND).
In summary, online products means products and services that are sold over the internet on the retailer’s website or mobile apps. For both IKEA and pampers, personal shopping exchanges are reinforced by live chatbots on websites. Transactions entail online transactions processing, encompassing electronic transfer of funds.
Physical products
The physical products that will be compared are an expensive motor vehicle by Tesla Inc. and LG washing machine. In terms of segmentation, LG targets customer aged 30-50 under home appliances and electronics (LG, 2021). Segmentation of the product is the upper and middle-income group. Tesla products are expensive for the average consumers, thus, they are targeted at the wealthy individuals and households.
In terms of the 4Ps of the marketing mix, tesla products uses premium pricing, which is also known as prestigious pricing for the upper middle class in society. On the other hand, LG targets the upper and the middle income consumers as the product pricing ranges from low to high pricing. In terms of place, tesla sells its premises and does not use middlemen. On the other hand, LG sells its products through dealers, who serve as intermediaries between the company and the buyers.
In summary, products sold through physical stores are highly priced because companies have to include costs such as inventory costs, rent cost, and other intermediaries in the chain of distribution. Customers get immediate satisfaction and fulfillment when they purchase from physical stores as they pay for the product and use the product immediately.
Research
In terms of research, customers are more confident when they do their research online because there are many places top find information as opposed to traditional physical stores where personnel may not offer credible advice (Markgraf, 2021). For instance, one can search the price of furniture by other sellers and compare the price by IKEA online.
Sensory Information
Online retailing does not provide customers with sensory information such as the sense of taste, smell, feeling and hearing (Markgraf, 2021). A physical stores offers all these benefits to a customer. For instance, a seller buying pampers cannot smell the perfume in the diapers brand while a customer purchasing the same product in store can smell the perfume of the product.
Costs
In terms of cost, the cost in the supply chain are characteristically lower online due to exclusion of middlemen in the chain of distribution (Markgraf, 2021). In online transactions, the seller sells directly to the customer while in physical stores, there are intermediaries. For instance, LG sells through dealers, who have to incorporate their profit margins in the overall cost of the product, compared to what would be if the product was sold by the manufacturer direct.
Fulfillment
Physical stores have inherent advantage when it comes to the fulfillment to the customer as the customer pays and goes home with the product. The value of the product is felt immediately compared to online purchases where the customer has to wait at least a day or even longer.
Two products sold Online
The two products that are sold online and which I will review are pampers baby diapers by pampers brand and household furniture by IKEA.
IKEA targets young adults who are in college and young professionals of ages 16-34. IKEA targets young and cost-conscious customers. On the other hand, pampers targets mothers and fathers with young toddlers and babies.
In terms of the 4Ps, IKEA uses low cost selling whereby it seeks to penetrate the market by selling to price conscious consumers while pampers uses non-price competition pricing strategy whereby price is not reduced to increase the demand for its products. In terms of place, both IKEA and pampers have an online presence and they sell through their website. In terms of product, both IKEA and pampers are perceived as quality products (IKEA, 2021). Both brands use search engine optimization and search engine marketing as the means of promoting their products (Lumen Learning, ND).
In summary, online products means products and services that are sold over the internet on the retailer’s website or mobile apps. For both IKEA and pampers, personal shopping exchanges are reinforced by live chatbots on websites. Transactions entail online transactions processing, encompassing electronic transfer of funds.
Physical products
The physical products that will be compared are an expensive motor vehicle by Tesla Inc. and LG washing machine. In terms of segmentation, LG targets customer aged 30-50 under home appliances and electronics (LG, 2021). Segmentation of the product is the upper and middle-income group. Tesla products are expensive for the average consumers, thus, they are targeted at the wealthy individuals and households.
In terms of the 4Ps of the marketing mix, tesla products uses premium pricing, which is also known as prestigious pricing for the upper middle class in society. On the other hand, LG targets the upper and the middle income consumers as the product pricing ranges from low to high pricing. In terms of place, tesla sells its premises and does not use middlemen. On the other hand, LG sells its products through dealers, who serve as intermediaries between the company and the buyers.
In summary, products sold through physical stores are highly priced because companies have to include costs such as inventory costs, rent cost, and other intermediaries in the chain of distribution. Customers get immediate satisfaction and fulfillment when they purchase from physical stores as they pay for the product and use the product immediately.
