Whats your opinion or your experiences from an affiliate point of view, what would persuade a customer to buy or what retailer would have better conversion ?
The same product but different retailer:
Retailer A)
A Calendar which is £5.99 + £2.95 Delivery
Retailer B)
A Calendar which is £8.99 + Free Delivery
My opinion is the customer would be persuaded to take the Cheaper product and just pay for the delivery. What are your thoughts on this?
Cheers,
Mark
Free delivery may encourage people to buy more items. You really need to look into it. There must be a paragraph or two in e-commerce books. You might want to nip into Waterstone and check the index of internet books. See if something covers delivery. A book based on detailing the history of Amazon maybe useful.
Business Technique. That's all I going to say.
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Buying Behaviour is a funny thing. In many cases it comes down to how things are presented and who you are presenting them to.Originally Posted by geordiboyo
E.g. If you point out the delivery charge beside the £5.99, this is very different to presenting the delivery charge at the checkout.
Also the whole "power word" thing, in this case "free" can have the affect of blinding buyers to the other information. Supermarkets do it all the time and we all fall for it, people love to think they are getting a bargain or something for nothing.
The customer type will also affect things, are the target customers "sophisticated" and "savvy" or are they "naive" and "trusting"
You will only get the answer when you test both price combinations out.
geordiboyo (20-02-10)
May you could somehow offer both or trial it in some way. Compare two items, you may find one sells 100 whilst the other sells 50.
Some merchants do this on ebay. They sell the same item at the same total price in a number of ways; buy it now with free delivery, buy it now + delivery, and auction + delivery
If I can find the listing again, I'll let you know the merchant and they may let you in on their A / B testing
As for my personal preference, I'd buy the + p&p option as I like to see the breakdown.
One of the main selling points of Play.com (for example) is its free delivery so you could use it as a selling point.
But in this example, merchant A can externally market their product at £5.99 + p&p rather than merchant B's version at £8.99. Merchant A would end up with more eyeballs on their site due to the lower initial price. Once on the site, they can push alternative USPs. Without getting the customer to the site with the higher price, Merchant B cannot compete.
This is a similar example of what I am researching, on ebay if you search for a product then prioritise by price. The same product could be £1.99 at the top +£4.99 delivery yet the one at the bottom is £4.99 + 99p Delivery yet the top search is going to get more traffic but one at the bottom is cheaper.
If the product at the top is promoted in a way that grabs the customers attention they have won the sale, although they can get the same for cheaper
I hate seeing hidden costs, I want to see the price that my credit card is going to get billed and no hidden surprises in checkout.
Is this classed as a clever marketing technique, if they can get away with it or are the UK shoppers not falling for this?
Mark
I take it that you don't fly Ryanair then. They are the undisputed heayweight kings of hidden charges.
never misunderestimate the stupidity of the general public.
for example - i know someone dealing in real estate here in bulgaria, who had a property advertised for 155k, plus 3% commission (ie total price just under 160k).
another agent had the property advertised for 175k, and "NO COMMISSION!"
the seller received the same flat rate of 150k in both cases - the buyer spoke to both agents, but went for the "NO COMMISSION!" one. purely because he thought he got a better deal because he didn't like the idea of having to pay commission to someone (even though the one he chose was just a hidden comission rather than a transparent one)
If people are too f**king stupid to work out an easy 15k saving on a huge purchase like a house, they're not going to get too deep into the details on a 4.99 purchase - they'll go for what they're told is a good deal of free delivery.
That's just gordonomics though with house prices. For some reason people think it's better if house prices are high. It's not. It's clearly not. It makes the cost of living too high and destroys the economy (Which is most based on tarting up houses and ruining the environment for the sake of upping a house's value)
Under Gordon the thrower you shouldn't save, only spend. Debt is good and saving is punished.
ermmmm - maybe i didn't explain it correctly Mogga - it was exactly the same house.
they don't tend to have exclusive selling arrangements with agents over here - the bloke knew it was the same house, and he had all the details from both agents, but couldn't work out that the one charging comission ontop of the lower price would still work out 15 grand less than the higher priced "no commission" agent.
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