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The Concept of Digital Marketing and How eBay Evolved into an Online Marketplace Phenomenon

My perception of digital marketing is the action of promoting or selling a product or service online typically through the use of social media platforms. Former business analyst Sheetal Rai defines traditional marketing as any type of promotion, advertisement or campaign through print advertisements, billboards, flyers, pamphlets, TV, newspaper or the radio (Google.com, 2019). Digital marketing is database driven helping businesses to monitor consumer preferences and allowing them to cater to each specific person. Social media platforms such as Facebook use our online search history to generate appropriate advertisements.

The advantages of digital marketing compared to traditional marketing is that a targeted audience can be reached in a cost-effective and measurable way (nibusinessinfo.co.uk, 2019). Other digital marketing advantages include increasing brand loyalty, driving online sales and internet sharing [viral]. Viral advertisements can spread to the news or the radio [traditional marketing] creating a wider audience.   

eBay is an American multinational e-commerce corporation that was founded by Pierre Omidyar on September 3rd 1995 in San Jose, California, United States. Originally launched under the name AuctionWeb, the auction-style sale website received no visitors within the first 24 hours.The company officially rebranded changing the name to eBay in September 1997. Within the space of 7 years [2010 – 2017], eBay went from having 90 million active users to having 168 million (Chaffey & Ellis-Chadwick 2019).

The website facilitates consumer-to-consumer and more recently introduced business-to-consumer auction-style sales through its website. Potential and current consumers perception of eBay heavily impacts the corporations ability to grow. Customers perceive eBay as solely consisting of consumer-to-consumer auction-style sales. This perception results in potential customers not considering eBay as an online shopping website.

The e-commerce corporation innovated their original purpose and transformed into a global marketplace phenomenon with business-to-consumer sales. Sellers are able to list items for sale on an auction-style basis or at a fixed price (Chaffey & Ellis-Chadwick 2019). eBay continues to innovate, enabling the brand to evolve and remain relevant. 

eBay’s growth strategy includes:

  • The ability to attract buyers and sellers;
  • The number of transactions, affordable prices and a variety of goods;
  • Brand recognition; 
  • Customer service. 

The e-commerce corporation invested into the enhancement of their products and services. eBay aimed to build their customer base and loyalty by improving trust and safety (Chaffey & Ellis-Chadwick 2019). eBay has introduced a colour-coded star rating system allowing buyers and consumers to feel more comfortable using the website.The purchase of a product allows buyers and sellers to rate one another based on the quality of the product received and if the buyer pays on time.

The star rating system was designed to show off the positive feedback each buyer and seller receive from previous transactions (Channelreply.com, 2019). This simple idea increases consumer trust, brand loyalty and changes the face of the company creating a positive image to the public. 

eBay Star Rating System (source: https://channelreply.com/blog/view/ebay-stars, 2018)

The American multinational corporation plans to update their brand positioning using traditional media. eBay UK marketing director Gareth Jones explained that: ‘We don’t want to be defined by that online car boot sale reputation anymore, We need to get people to consider eBay in a completely different way’ (Hobbs, 2016). Despite being in the era of digital marketing, Jones firmly believes that traditional marketing methods such as advertisements on TV is the future of reshaping eBay’s brand image to the modern-day society. 

Reference:

Chaffey, D & Ellis-Chadwick, F 2019, Digital Marketing Strategy, Implementation and Practise, 7th edn, Pearson Education, Harlow, United Kingdom.

Channelreply.com. (2019). How the eBay Star Rating System Works. [online] Available at: https://www.channelreply.com/blog/view/ebay-stars [Accessed 15 Aug. 2019].

 Google.com. (2019). define traditional marketing – Google Search. [online] Available at: https://www.google.com/search?q=define+traditional+marketing&rlz=1CATTSD_enAU856&oq=define+traditional+m&aqs=chrome.3.69i57j0l5.5853j1j7&sourceid=chrome&ie=UTF-8 [Accessed 15 Aug. 2019].

Hobbs, T. (2019). Ebay wants to be ‘all over TV like a rash’ as it looks to rebuild the brand – Marketing Week. [online] Marketing Week. Available at: https://www.marketingweek.com/ebay-wants-tv-like-rash-looks-rebuild-brand/ [Accessed 15 Aug. 2019].

nibusinessinfo.co.uk. (2019). Advantages and disadvantages of digital marketing. [online] Available at: https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-digital-marketing [Accessed 15 Aug. 2019].

The Influence of the Internet on Online Retailers

The evolution of the internet and digital technology has revolutionised the world throughout the last few decades and have changed many aspects of the marketing industry. The fashion industry has changed drastically and continues to grow. Modern day technology allows brands to exist solely online. How have these changes impacted the marketing mix of this industry? 

The 7 elements of the marketing mix are: 

Product 

The online fashion industry is quite extensive and tends to offer consumers a wide range of products from clothing to shoes to accessories. There are many online brands that offer a wide range of products for different prices. Brands such as Pretty Little Thing and Boohoo.com offer clothes to customers at a heavily discounted rate in comparison to other online retailers such as Showpo, Meshki or Tiger Mist. Boutiques that have a higher price tag will offer products of a higher quality and have items that are of high demand. High end brands will generally offer returns or exchanges to unsatisfied customers whereas budget brands will implement a no return policy. 

Promotion 

The ongoing development of the internet and digital technology has allowed the online fashion industry to grow dramatically within the last few years. It enables brands to cater to people who live a busy lifestyle such as allowing consumers to order new items through the click of a button and having the products delivered directly to their front door. Retailers can promote their brand name through multiple social media platforms through the brands account, sponsored posts and by collaborating with celebrities and influencers. Social media marketing is an effective and inexpensive form of advertising. Retailers are able to actively engage with their audience. Actively engaging with consumers gives brands an advantage when using digital mediums. If a campaign is negatively received, marketers can easily retract the campaign, redesign it and relaunch it. 

Price

An advantage online retailers can provide their consumers is various payment methods. Brands have introduced payment plans known as Afterpay and ZipPay which allow customers to pay for products in 4 fortnightly installments. Online boutiques provide customers with student discounts, multiple discount codes [collaborations with influencers] and free shipping [provided a minimum amount has been spent].

Place 

Fashion outlets are becoming highly dependent on the internet and digital mediums to cater to their target audience as effectively and efficiently as possible. Collaborating with influencers and celebrities and creating an online presence allows a brand to maximise their market reach. Outsourcing to third-party websites enables retailers to reach potential customers and widen their market. 

People 

The perception of a brand relies heavily on customer interactment. Consumers will perceive a brand through the experience they’ve had. Business to consumer engagement can occur at anytime online [pre, during or post service]. Pre-service interaction can be a customer enquiring about various products or responding to an advertisement. During serving generally involves problems encountered with the order [shipping delays] and post service consists of a review [after the products are received]. The response a company gives to a customer can massively impact the brand both positively and negatively. Customer interaction can make or break a brand name. 

Process

Fashion retailers are constantly improving the online experience for consumers. First time shoppers encounter a lengthy checkout process [filling out details]. To prevent losing customers, businesses have introduced memberships, guest/express checkout and add a ‘save details’ button. This small update provides shoppers with a quick and easy checkout which ultimately gives them a positive experience. By monitoring consumer behaviour and finding patterns, organisations can maximise performance and continue to provide a positive experience and expand the brand. 

Physical evidence

Marketing goals and consumer perception of a brand can be monitored through the 7P’s of the marketing mix. Analysing the elements allows the business to assess how the brand is being perceived by potential and current consumers. An easy to use website is essential for success. Consumers of all ages need to be able to easily navigate their way around the website. 

Social Media Marketing 

Social media platforms are quickly becoming the main advertising medium for marketers. One of the most popular types of social media marketing is influencer marketing [similar to celebrity endorsement]. Influencer marketing is when a brand collaborates with a social media influencer. Brands pay well-known influencers to advertise their products [including brand name] to their followers (Johnson, 2019). Brands can collaborate with influencers in various ways such as:

  • Providing influencers with a personalised discount code for their followers to use
  • Sponsoring influencer posts [via Instagram]
  • Sponsoring YouTube videos [having the influencer use the product throughout the video]
  • Featuring the influencer in a cameo [i.e YouTuber Alex Wassabi in the movie ‘The Duff’]
  • Sending a box full of different products from your company to an influencer [unboxing video]

Although influencers agree to collaborate with brands, it doesn’t necessarily mean they’ll be paid or make big money from it. Influencers are paid depending on how many customers use their discount code or per click. Sponsored social media posts are different to collaborations and influencers charge a fee per post [Instagram: $1,000 per 100,000 followers, Snapchat Influencers: Starts at $500 per campaign in 24 hours and YouTube Influencers: Roughly $2,000 per 100,000 followers] (Johnson, 2019). 

A sporting goods company allow themselves to have a wider target audience by selling both sporting gear and activewear. Not only can they target athletes but selling activewear enables them to cater to both gym junkies and influencers. By having a wider target audience, the brand can target beauty influencers, fitness influencers and young athletes. 

References

Chaffey, D & Ellis-Chadwick, F 2019, Digital Marketing Strategy, Implementation and Practise, 7th edn, Pearson Education, Harlow, United Kingdom.

Johnson, T. (2019) How Much Do Influencers Charge? | Paying Influencers 2019 Guide, Available at: https://cpcstrategy.com/blog/2019/05/how-much-do-influencers-charge/ (Accessed: 13th September 2019).

Tracy, B. (2004) The 7 Ps of Marketing, Available at: https://www.entrepreneur.com/article/70824 (Accessed: 13th September 2019).

Showpo’s Secrets to Success

Showpo is one of Australia’s fastest growing online fashion retailers, based on the sunny shores of Sydney, Australia (Showpo.com, 2019). The company was founded by Jane Lu [CEO] in 2010 . The fashion empire is all about creating a fun and positive shopping experience for women all across Australia, while being industry leaders (Showpo.com, 2019). Their team aims to empower the minds of young women and to be a women’s go to place to shop.

Showpo generates revenue through selling various clothing items and accessories. The organisation has rapidly grown from generating $7.5 million in revenue in 2014 to producing $30 million in revenue in three short years. The young entrepreneur aims to reach $100 million in annual revenue by 2020 (Powell, 2017). 

The ideal target market for this firm is women aged 18-30. The label generates a positive, sophisticated and happy vibe and offers products for festivals to office wear to a night out. By catering to many different events, the brand can expect to maintain a high profit margin (Powell, 2017). In 2019, the beauty brand launched a wedding line which has the power to attract potential buyers outside of the established target market. 

In 2018, the fashion retailer took action to save her company from a downfall. The company experienced delays in the processing of orders through the manufacturing company. The customer service team was flooded with emails from consumers enquiring about their late orders and struggled to stay on top of them. Lu took action by training all 35 employees [at the time] in customer service regardless of their position in the company to avoid experiencing another episode similar to this (Powell, 2018). 

The team at Showpo are dedicated to giving customers the ultimate experience. Providing consumers with items they want and giving them a positive experience creates brand loyalty and a higher profit margin for the company. They continue to expand their range, offer new products and cater to those outside their target market. The pricing of items for a company is risky, especially if the business wishes to make and maintain a reasonable profit margin. Creating a brand that is in demand allows the organisation to set their prices a little higher than their competitors. 

The Showpo team (Source: https://www.showpo.com/careers#our-team)

References

(2018) Our Story, Available at: https://www.showpo.com/eu/our-story (Accessed: 6th September 2019).

Powell, D. (2017) Four lessons from Showpo founder Jane Lu’s “failed” business, Available at: https://www.smartcompany.com.au/business-advice/four-lessons-showpo-founder-jane-lus-failed-business/ (Accessed: 6th September 2019).

Powell, D. (2018) How Showpo’s Jane Lu took radical action to get her $30 million fashion retailer out of a “rut”, Available at: https://www.smartcompany.com.au/industries/retail/how-showpo-jane-lu-took-radical-action-to-get-her-30-million-fashion-retailer-out-of-a-rut/ (Accessed: 6th September 2019).

Superior Innovation: Afterpay

Summary

  • What is Afterpay?
  • Applying superior innovation to Afterpay
  • How Afterpay generates revenue

The younger generation is more aware of how to avoid excessive debt. Superior innovation enables firms to develop and implement products that are more efficient and effective resulting in customer satisfaction and ultimately generates more revenue (Sok, 2019). Molnar’s theory: “Millennials have a total aversion to credit [cards],” because they can lead to compounding debt (Klauflin, 2018). 

Afterpay Touch Group Limited is an Australian financial technology company that facilitates business to consumer sales. Founded by Nick Molnar and Anthony Eisen in 2014, the consumer lending business is based in Melbourne, Victoria and operates in New Zealand, the United States and the United Kingdom.

Afterpay allows consumers to pay for items in four interest-free installments (Kruger & Hatch, 2019). By utilising this idea, Molnar and Eisen have created an empire by dominating the market and have successfully overtaken their competitors [ZipPay]. Less than four years after launching, their market value is $1.5 billion (Klauflin, 2018). 

Critics are baffled as to how the company generates revenue due to their no interest policy (Kruger & Hatch, 2019). Afterpay allows shoppers the luxury of buying an expensive item [up to $1000] and paying it off in four fortnightly installments. If a payment is missed, the shopper will incur a late fee of $8. The majority of Afterpay’s revenue comes from retailers [4-6% of every transaction to offer the service] (Klauflin, 2018). 

A social media campaign promoting Afterpay to retailers went viral encouraging retailers to jump on the bandwagon. Online retailers who adapted to Afterpay noticed a significant increase in order sizes from 20-50% (Klauflin, 2018). Afterpay recently innovated by offering their service instore rather than solely online.

Implementing an interest free policy for consumers allows the organisation to rapidly grow. Consumers are more obligated to use Afterpay and are likely to spend more money. Retailers are charged a small fee per sale via Afterpay however, due to an increase in revenue, retailers are becoming more inclined to offer the service both in-store and online.

Summary

  • Afterpay is an Australian financial technology company that facilitates business to consumer sales.
  • Superior innovation enables firms to develop and implement products that are more efficient and effective resulting in customer satisfaction and ultimately generates more revenue [implementing an interest free policy for consumers].
  • Afterpay generates revenue through retailers and late fees. 

References

Klauflin, J. (2018) How A 28-Year-Old Turned Layaway For Millennials Into A Billion-Dollar Business, Available at: https://www.forbes.com/sites/jeffkauflin/2018/07/03/how-a-28-year-old-turned-layaway-for-millennials-into-a-2-billion-business/#6001ad9759db(Accessed: 5th September 2019).

Kruger, C., Hatch, P. (2019) Millennial masterstroke: All credit to Afterpay in generation grab, Available at: https://www.smh.com.au/business/companies/millennial-masterstroke-all-credit-to-afterpay-in-generation-grab-20190228-p510ws.html(Accessed: 5th September 2019).

Maher, J. (2018) AFTERPAY VS. ZIPPAY, Available at: https://latergator.com.au/blogs/news/afterpay-vs-zippay (Accessed: 5th September 2019).

Sok, P. (2011) Achieving superior innovation-based performance outcomes in SMEs through innovation resource–capability complementarity, Available at: https://www.sciencedirect.com/science/article/abs/pii/S0019850111001581 (Accessed: 5th September 2019).

Financial Institutions vs. Social Media

The social media marketing framework [SMMF] was proposed by Felix et al. (2016). The framework is made up of four different dimensions which include:

  • The Scope Dimension
  • The Culture Dimension
  • The Structure Dimension
  • The Governance Dimension

Social

Originally banks and other financial institutions avoided using social media platforms as it represented a major threat. Overtime more and more customers demanded real-time responses. This led to firms investing in financial technology [FinTech] which resulted in faster and improved services. The use of social media platforms allows consumers to express their concerns, state their opinions and to leave reviews. Investing in social media platforms enables firms to connect firsthand with clients and consumers and resolve ongoing issues. 

Culture

Due to the financial services industry target market, generally traditional marketing mediums are used to reach their audience. Recently, adults are adapting to the social media lifestyle, encouraging financial institutions to jump on the bandwagon. Using a modern marketing approach allows the industry to progress. 

Structure

The importance of financial institutions requires a centralised control approach. Employees have strict rules and protocols to follow regarding the use of social media platforms. The digital marketplace is a platform for institutions to connect with consumers expressing concerns and complaints. Every response has the ability to make or break a company’s reputation. Past advertisements using a traditional marketing medium have offended consumers and potentially damaged the banks reputation. Social media platforms have strict rules and allow companies to edit advertisements at an inexpensive rate.  

Governance

Modern day employee contracts include a code of conduct clause stating what an employee can and can’t post on social media. Introducing these types of contracts protects the employers’ reputation and prevents bad publicity. The types of rules listed in these contracts includes defamation [damaging your employers’ reputation online], inappropriate photos in work uniform and posting unprofessional comments online regarding the workplace. 

References

Chaffey, D & Ellis-Chadwick, F 2019, Digital Marketing Strategy, Implementation and Practise, 7th edn, Pearson Education, Harlow, United Kingdom. 

All the Gloss on Kylie Cosmetics

Kylie Cosmetics by Kylie Jenner is one of the fastest growing beauty brands in the world (Kylie Cosmetics by Kylie Jenner, 2019). Owned and founded by the worlds’ youngest self-made billionaire, this fashion icon is the proud leading lady of one of the worlds largest beauty empires. Coming from one of the worlds most influential families, the youngest of the Kardashian-Jenner clan has branched out and made a name for herself. 

Image result for kylie cosmetics
Kylie Cosmetics Logo (Source: https://www.kyliecosmetics.com/)

The social media marketing framework [SMMF] was proposed by Felix et al. (2016). The framework is made up of four different dimensions which include:

  • The Scope Dimension
  • The Culture Dimension
  • The Structure Dimension
  • The Governance Dimension

The Scope Dimension

The scope dimension expresses that social media platforms are used as either a one way communication tool to entertain or inform end-users or as a collaborative environment for end-users and companies [sponsored posts] (Chaffey & Ellis-Chadwick 2019). Brands are able to advertise through social media influencers who endorse their products and promote the brands name. In 2015, reality television star and social media personality Kylie Jenner founded her company Kylie Lip Kits; later renamed Kylie Cosmetics in 2016. 

Kylie Cosmetics utilises Kylie Jenner’s online persona and uses social media platforms to inform users of the brands latest products. Due to the power of various social media platforms and her enormous online presence, within two years of launching the company it had gained an estimated net worth of $400 million. Having amassed over 250 million social media followers, Jenner has stated she has never had to pay for marketing. As of 2019, her beauty empire is currently valued at an estimated $900 million (Forbes.com, 2019). 

The Cultural Dimension

The culture dimension differentiates between social media use as a traditional marketing tool or a modern approach to accepting the style of social media platforms (Chaffey & Ellis-Chadwick 2019). Through her personal social media accounts, the 22 year old billionaire providers consumers with a ‘sneak peak’ into her new products making them more desirable. Her utilisation of digital marketing allows her to grow her brand name as efficiently as possible. Traditional marketing mediums would not have been as effective and would become rather expensive for her company. 

The Structural Dimension

The structure dimension looks into whether an organisation’s social media presence is centralised and controlled by a specific person [marketing director] or decentralised and the employees responsibility (Chaffey & Ellis-Chadwick 2019). In 2015, beauty manufacturers spent $2.2 billion on advertising which is slightly less than the previous year (Nielsen.com, 2019). Beauty and cosmetic companies are adapting to social media marketing because in the modern day marketing world, it’s the most effective form of advertising and it’s inexpensive. 

As mentioned above, Kylie Jenner stated that due to her massive online following she has never had to pay for marketing. Kylie Cosmetics leans more towards the centralised side of the structural dimension. However, the reality television star handles the marketing for her beauty empire. In her campaigns she herself models alongside her friends and directly promotes her products through the use of her personal and company social media accounts. 

Image result for kylie cosmetics photoshoot
Kylie modelling alongside ex-best friend Jordyn Woods (Source: https://www.girlfriend.com.au/kylie-jenner-and-jordyn-woods-photoshoot-for-makeup-collab)

The Governance Dimension

The governance dimension deals with employees on social media, more specifically what they can and can’t post online regarding the company (Chaffey & Ellis-Chadwick 2019). Many businesses have incorporated a social media policy into employee contracts which allows employers to protect the brands reputation. 

Being the influencer that she is, the beauty icon receives negative feedback about various products. The organisation has experienced a fair share of backlash due to the launch of her “luxury” brush kits [priced at $360 USD] and her line of concealers [“copying” Rihanna’s Fenty Beauty foundation line] (Kylie Cosmetics by Kylie Jenner, 2019). Despite the ongoing criticism, her website continues to sell out. 

Kylie’s beauty empire is kept under wraps by only having 12 employees. As seen in her YouTube video ‘A Day in the Life’ her employees are female and consist of young to middle-aged women (A Day in the Life, 2019). As Kylie does all of the marketing for her products, her employees are kept private as are their social media accounts. 

References

A Day in the Life. (2019). Available at: https://www.youtube.com/watch?v=HhM0BYCHL00 [Accessed 27 Aug. 2019].

Chaffey, D & Ellis-Chadwick, F 2019, Digital Marketing Strategy, Implementation and Practise, 7th edn, Pearson Education, Harlow, United Kingdom. 

Forbes.com. (2019). 5 Social Media Lessons To Learn From Kylie Jenner. [online] Available at: https://www.forbes.com/sites/katetalbot/2018/07/24/5-social-media-lessons-to-learn-from-kylie-jenner/#494cdc221677 [Accessed 27 Aug. 2019].

Kylie Cosmetics by Kylie Jenner. (2019). Kylie Cosmetics by Kylie Jenner | Official Website. [online] Available at: https://www.kyliecosmetics.com/ [Accessed 27 Aug. 2019].

Nielsen.com. (2019). Age Before Beauty: Treating Generations with a Personal Touch in Beauty Advertising. [online] Available at: https://www.nielsen.com/us/en/insights/article/2015/age-before-beauty-treating-generations-with-a-personal-touch-in-beauty-advertising/ [Accessed 27 Aug. 2019].


The Rose and Hair Framework (2011) Analysis: Priceline Pharmacy

image
Figure 3: A conceptual framework of OCE (Source: https://onlinelibrary.wiley.com/doi/full/10.1111/j.1468-2370.2010.00280.x

The Antecedents

The first stage of the Rose and Hair framework (2011)  is known as the antecedent. In this case it means the stage before a customers experience with a brand. There are nine different parts to the antecedents stage which are: 

  • Information Processing : Priceline Pharmacy’s home page is bright pink allowing the website to capture the eye of women [target market]. The page lists important information such as ongoing sales, tabs and more importantly what the company is about and aims to provide to current and potential customers. 
  • Perceived Ease-of-use: The website is divided into different sections allowing customers to easily navigate their way around. Listed on the homepage are all of the different types of sales the company is currently providing along with recommended products and the brands most popular items. Priceline uses pictures and attention-grabbing words.
  • Perceived Usefulness: As mentioned above, Priceline offers both in-store and online services. In-store allows well-trained staff to help customers find the right product for them. Allowing customers the luxury of shopping online caters to those with busy lifestyles to buy necessities with the click of a button and to have it delivered to their door. 
  • Perceived Benefits: Priceline Pharmacy helps and empowers women to feel comfortable buying certain types of ‘embarrassing’ products. This is important as women should be made to feel comfortable, beautiful and healthy. 
  • Perceived Control: Priceline offers a membership known as the ‘Priceline Sisterhood’. Customers are able to choose whether or not to become a member. Being apart of the ‘Priceline Sisterhood’ gives customers exclusive deals, a discount on items once they receive enough points and an express online checkout. 
  • Skill: This leading beauty and health retailer has a website that is easy to use and navigate your way around, it will attract more customers to the brand. This makes it friendly for all ages and internet users. 
  • Trust : The products sold by Priceline are often necessities which is great for business but risky for the brand. Online shopping doesn’t allow customers to touch or test the product before purchase which can lead to problems. If a customer is unsatisfied with their product and proof of purchase is provided, the customer can return or exchange the product. By allowing this, the beauty retailer builds trust and a loyal customer base. 
  • Enjoyment: Regardless of my unpleasant online experience, I have always enjoyed shopping in-store at Priceline Pharmacy. The staff are welcoming and friendly and make me feel comfortable in the environment. I am a current Priceline member and will continue to be one for the years to come. I will happily recommend Priceline Pharmacy to my friends and family. 

Experience
Experience is the second stage of the Rose and Hair framework (2011). There are two parts to this stage known as the ‘cognitive stage’ and the ‘affective stage’. One problem encountered in this stage is that the difference between cognitive and affective state should be defined as it can confuse readers. Cognitive is the thinking side of things where your brain uses experience to determine a thought about something. The affective state is concerned with one’s feelings or emotions. 

Consequence 

The final stage of the Rose and Hair framework (2011) is the consequence stage which is divided into two parts known as ‘customer satisfaction’ and ‘repurchase intention’. In the framework, both parts come equally after one another but are divided into two separate boxes as seen above, However, the ‘customer satisfaction’ stage should come before the ‘repurchase intention’ as the repurchase stage heavily relies upon whether the customer is satisfied. 

References
Mildura City. (2019). Priceline Pharmacy – Mildura City. [online] Available at: https://www.milduracity.com.au/trader-highlight/priceline-pharmacy [Accessed 23 Aug. 2019].

Rose, S., Hair, Neil., Clark, M. (21st January 2011) Wiley Online Library, Available at: https://onlinelibrary.wiley.com/doi/full/10.1111/j.1468-2370.2010.00280.x (Accessed: 23rd August 2019).


The Priceline Experience: Online vs. In-store

Summary

  • My opinion on the brand ‘Priceline Pharmacy’
  • My own experience [online vs. in-store]
  • Analysing and applying Priceline Pharmacy to the Rose and Hair framework (2011).

Before diving straight into the analysis of the Rose and Hair framework (2011), I’d like to talk about my personal experience with the brand. Priceline Pharmacy is an Australian chemist and beauty retailer that aims to encourage and empower women by helping them to look good, live well and feel great. The company aims to be Australia’s leading health, beauty and wellbeing retailer (Priceline.com.au, 2019).

When I was younger, Priceline was my favourite chemist due to the fact that pink was my favourite colour. As I grew up, I slowly started to realise what the pink colour truly represented. The pink represents a bond, a sisterhood and aims to broaden the minds of women all across Australia. My in-store experience has always been pleasant which is the main reason I choose Priceline over other chemists. The staff are always friendly, provide great customer service and make an effort to help customers feel comfortable. 

In our modern day society, people live time poor, technology driven lives meaning they have less time to visit stores and go shopping. Online shopping enables full-time workers, busy parents and other people who live a busy lifestyle the luxury of buying new things. Personally, I prefer to shop online as I can buy new items with a few clicks of the mouse and have it delivered right to my doorstep for a small extra fee. 

I am a frequent online shopper, I’ve had the experience of using Priceline’s website. The design and layout overall represents the company quite well and is easy to navigate. Being apart of the Priceline sister-hood [membership] allowed my checkout to be faster than the average customer which I appreciated. Fast forward to a few weeks later and I had not received the products. I emailed the customer service teams and provided a proof of purchase reference code for my order. They were unsure of where the products were however, they asked if I’d like the products sent to me again or store credit [can be used in-store or online]. This was a roller coaster of an experience and not a pleasant one at that but I was won over by how they accommodated my preferences. 

Overall, even with my unfortunate online experience I continue to shop at Priceline Pharmacy because of how I feel when I walk through the doors. The staff always ask if I need any help, are friendly and always smiling and I am made to feel comfortable and welcomed into their store. The picture below truly captures the essence of the brand.

Figure 2: The essence of Priceline Pharmacy (Source: https://www.priceline.com.au/about-priceline)

References

Priceline.com.au. (2019). [online] Available at: https://www.priceline.com.au/about-priceline [Accessed 23 Aug. 2019].

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