jOINT buy. Value proposition test (based on customer interview). Survey method. Fake Deal. Seller Survey. Buyer Survey. 4 F2F Interviews. 1 Email Interview. Steve Feiberg. 30 Requests for price quotation. 17 online surveys. 8 online surveys. Amazon/ Ebay
Value proposition test
(based on customer interview)
4 F2F Interviews
1 Email Interview
for price quotation
17 online surveys
8 online surveys
Age group 20~30s
New Hypotheses from F2F Customer Interview andMentoring
In F2F interviews, buyers said that Groupon’s offers were too limited in terms of product selection and that there is no buyer community.
In meeting with our mentor, George, we realized that sellers can also gain valuable marketing when selling products to large groups of buyers.
5~10% discount offer in size of 30,50,100 in digital camera, laptop
8% transaction fee in that category in Amazon
Buyers are definitely interested in getting a cheaper price on products. Most buyers are willing to form groups to get a discount and will even share information about a discount to other people.
But considering the fake-email responses, the discount rates are not as big as we expected. That might be due to the fact that most of the sellers surveyed were electronics sellers or the fact that the quantities that we proposed were not big enough to get more discount.
57% said they want to choose which products are group discounted and 40% said kind of
55% said that product selection attracts them to an e-commerce site
The majority of people prefer to choose which product they want to buy for a group deal. Most people regard product selection as a major reason for using an e-commerce site.
Some buyers value having a large buyer community on an e-commerce site. It is possible that the other buyers do not realize the importance of buyer product reviews on sites like Amazon.com The co-creation of value on Amazon.com was cited in the business model book as one critical factor in Amazon’s success.
3 Sellers are willing to offer group discounts. But some sellers are not willing to offer significant discounts. This is probably because the sellers surveyed are mostly small sellers.
Most sellers agree that their transaction fees are too high. But the transaction fees for selling electronic products on Amazon is 8% which is lower than we expected.
However, the transaction fees are still 15% for many other product categories on Amazon. Perhaps we should target sellers of other categories other than electronics.
Some sellers use the e-commerce site where they sell their products as their marketing channel. This means that when sellers use our website, that can already be a significant source of marketing for their business.
1 Need to consider changing category of products to offer and larger buying groups.
2 Need to ask more detailed questions about this to investigate further and carefully design our customer community feature.
3 Need to ask larger sellers more questions about their cost structure.