Most online shops feature recommendation bars to make consumers aware of suggested purchases. The way of presenting these suggestions differs significantly from webstore to webstore. Their suggestions are framed in simple terms such as “more …. ” (Ikea), “others also bought” (H&M), “if you like this, your might also be into this” (Urban Outfitters), to more advanced suggestions helping customers to find related products “frequently bought together” (Amazon), or “do more with your purchase” (Best Buy). How effective is the framing of related products of these websites? Does the way it is framed matter? Nearly every webstore has a slightly different name for the recommendation – which seems to point to a specified strategy.
In the end, besides helping customers navigate through a dizzying number of products on offer. Whether mentioning it is recommended for them, for the product they have selected or a favorite of other customers, these efforts have the goal to sell more products. They aim at either cross-selling or upselling (Moth, 2012). Cross-selling means that users are shown additional items they can use in combination with the selected product, or that are identical to the selected item. Upselling of products means that a similar product of better quality or with more features is suggested. Whereas cross-selling only drives 0.2 percent of the total number of purchases, upsales drive 4% of the purchases (Moth, 2012).
Continue reading Framing product recommendations in online stores
October 2013, only 2.5 million were activated online. Each customer receives discount if they have a card, but if they link this to their e-mail address they can also view the groceries they have purchased in the past, which of these are on promotion, and receive personalized promotions. Entering further personal details is not required.
Consumer Value Creation 