Black Friday and Cyber Monday and Sales Volumes and Patterns

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I, Noor Ahmad Alhasibi, declare that I am the sole author of this assignment, and the work is a result of my investigation, except where otherwise stated. All references have been duly cited.

Abstract

The goal of any retail business is to attract new clients, hold on to existing clients, and offer more to every client. To guarantee this, a retail business needs to offer clients the items they need at the correct cost. Additionally, it needs to guarantee the correct client experience. To accomplish the previously mentioned targets, numerous retail organizations today are utilizing data analytics.

Keywords: online shopping, business strategy, profitability, competitive Advantage, data analysis, promotions, loyalty, decision-making, and customer satisfaction.

Introduction

Online shopping is the procedure whereby customers directly purchase goods or services from a vendor progressively, without a middleman's administration, over the Internet. It is a type of electronic trade. An online shop, e-store, or virtual store brings out the physical similarity of purchasing items or services at a brick-and-mortar retailer or in a strip mall. The procedure is called business-to-consumer (B2C) internet shopping.

Online shopping is getting increasingly popular for a set of reasons. Outside elements such as expanding gas prices, the difficulty of getting to traditional stores, and the struggle often associated with shopping malls and other traditional stores contribute to the increased interest in online shopping.

With the reviews left by existing users, the consumer can obtain complete information about the item. If anyone wants to buy an item, he or she is no longer limited to asking people to surround them because there are a lot of product reviews on the Web that give opinions and experience. Online shopping websites offer a diverse range of goods, both high-quality and low-quality, depending on the customer's level of sophistication.

How can data assist businesses?

Data is a set of information, and it has two types: the first type is called primary, in which the information is collected directly from firsthand experience, for example, through surveys, interviews, and field observation. The second type of data, called secondary data, is the data that has already been collected for another purpose, for example, historical data, official statistics, or previous research.

How can we make the data more effective?

The company's data would tell a lot about the customers and the health of the business.

The company will know if the business is profitable or not by doing the data analysis. It can also instruct the company on the types of products that customers like best. To make this data more effective and to ensure that the company uses it for all departments, it should be processed for data analysis.

What is data analysis?

Data analysis is an inside hierarchical capacity performed by data analysts that is more than simply introducing numbers and figures to the executives. It requires a considerably more inside-out way to deal with recording, breaking down, and dismembering information and displaying the discoveries in an effectively absorbable configuration.

When it comes to data analysis, you can find answers to almost every business inquiry, for example, how much revenue the company made this year. Analyzing your data can be an insightful process.

Data analysts need to be able to

  • Understand business headings and targets.
  • Investigate the importance of the numbers and figures in the data.
  • Examine the reasons for specific occasions based on data findings.
  • Present specialized bits of knowledge utilizing straightforward language.
  • Add to business basics by offering educated opinions.

Data analysis supports different departments in the company by using the primary data and processing it in a different way, for example:

  1. When a certain product runs out of stock
  2. Which customer is responding to email marketing?
  3. How can the company meet the constant demand
  4. The key aspects of customer satisfaction
  5. How to organize the online shopping site and make it a smooth and hassle-free customer experience.

 The advantages of data analysis:

  • Help the business managers make informed decisions to drive the company forward.
  • Improve efficiency, increase profits, and achieve organizational goals.

How do online retailers use data analysis to make decisions?

Online shopping is very competitive, and current-day customers need previous experiences and easy access to goods and services.

To deal with elevated expectations from the customer, online retailers need to use the information being gathered and effectively incorporate investigation into their basic leadership process. This is valid for any retailer. They should use data analysis to understand customer inclinations and further provide the customer with a product offering.

As it also helps the retailers decide whether to keep or discontinue a product or a service or maybe redesign the product in a more attractive way.

With data analysis, the company will be able to gain insight into the following fields:

  •  Assume customer trends and behaviors.
  •  Analyze, explain, and deliver data in useful ways.
  •  Increase business profitability.

 Drive effective decision-making and analyze issues that help.

The chart shows the most common data, which is being followed by the greater part of the retailers in the online business space. After setting up basic data analysis processes for tracking key performance indicators, retailers must try to use data more for performing advanced analyses such as customer retention, customer experience, customized recommendations, promotions, and increasing purchase value.

Promotion

'Value Promotion In principle, promotions can be fundamentally partitioned into 'deals promotions' and 'value promotions," two significant classifications. 'Deals and promotions' sell products and different things through coupons, blessings, tests, and so on. 'Value promotions' allude to the way that the real selling value is lower than the cost, with the goal that the client can get a markdown on the cost. Contends that value promotion" alludes to giving a lower cost for an item or administration or giving more items or administrations at a similar cost when you take business action. Because of the above definition, the term "promotion" in this examination alludes to lessening the first cost of system items or administrations to accomplish the motivation behind animating deals.

Product Complementarity

Complementary products refer to two distinct items that can supplement each other to meet a similar need. Items are integral when two items need to help one another to meet similar needs of buyers; items are not reciprocal methods. Two items might be substitutes, or the connection between the two is weak, so they can't meet the equivalent needs. If new items are sold with corresponding items, customers will see the sign that new items are perfect with corresponding items and integral items are accessible. This can lessen the danger of customer internet shopping and quicken the market's infiltration of new items. The item's integral character in this paper depends on whether the two items are corresponding. If the two items should be utilized together, they are correlative; then again, if two items can supplant or have a little relationship, there is no integration between the two items.

Promotion: Benefit and Risk

As indicated by the theory of psychological records, customers choose whether or not to perform specific behaviors by contrasting the potential Advantage or potential hazards that some behaviors may cause. In this way, when looking at changed advancements, purchasers should consider their apparent Advantage and hazard.

From table 1, the connection impact of promotion and complementary products is major on purchase intention (P = 0.00 0.05), which denies the original hypothesis. Similarly, for the perceived promotional benefit, the interaction between promotion way and product complementarity is important (P = 0.04 0.05). Fundamentally, the promotion way has an impact on customers' perceived promotional risk (P = 0.00 0.05). Thus, there is an interaction effect between promotion and product complementarity in consumer online shopping behavior, which can impact network customers' purchasing intentions. The average purchase intention of consumers

It can be seen that, in the case of complementarity of products, the estimated average value of the purchase intention resulting from the 'price deduction over a given purchase amount is greater than the "unveil promotion price." In the absence of complementarity of products, the estimated average value of the purchase intention resulting from the "price deduction over a given purchase amount' is less than the "unveil promotion price.' Therefore, it can be explained by "price deduction."

From Table 2, the variance analysis of the regression model of purchase intention is F = 109.00, P = 0.00 0.05, which shows that the regression model of purchase intention is statistically significant. Besides, R2 = 0.58 indicates that the regression model can explain 58.1% of the total variance of the dependent variable (purchase intention). Among them, the perceived special Advantage is decidedly related to the buy intention, and the more noteworthy the perceived limited time advantage, the more prominent the buy intention; the perceived promotional risk and the buy intention are contrarily correlated, and the more memorable the perceived promotional risk, the smaller the purchase intention.

According to "Mr. Graham Charlton, Editor in Chief at behavioral marketing company SaleCycle," He has previously worked for E-Consultancy, and he said that our Black Friday stats include sales figures and growth during the past few years, search trends, and sales volumes and patterns around Black Friday and Cyber Monday."

Black Friday and Cyber Monday (in the U.S.). In the US, Black Friday online sales beat all previous records, reaching $7.4 billion, up from $6.2 billion on Black Friday 2018.

Cyber Monday 2019 was an even bigger day for online shopping than Black Friday, with sales totaling $9.2 billion, up 16.9% from $7.9 billion in 2018. Online shoppers spent an estimated $11 million per minute between 11 p.m. (E.T.) and midnight.

2019 Black Friday sales in Britain jumped 16.5% compared with the previous, according to data from Barclaycard, which processes nearly one in every three pounds spent in the U.K.

Barclaycard said the volume of transactions on Black Friday 2019 was up 7.2% year-on-year, while the volume of transactions on Cyber Monday rose by 6.9%.

Some retailers, including Boohoo and John Lewis, enjoyed record sales periods thanks to interest in their Black Friday promotions. According to data from Love the Sales, more retailers than ever before promoted Black Friday deals. (6% more than in 2018). 49% of all online goods went on sale, while the average discount on a Black Friday deal was 32% off (compared to 31% in 2018).

The U.K.'s online shoppers spent £1.49 billion on Black Friday 2018. Black Friday at the Amazon website According to Amazon, Black Friday and Cyber Monday 2018 were the two biggest shopping days in the retailer's history, at least until Prime Day 2019.

Shoppers ordered more than 180 million items during the five days from Thanksgiving to Cyber Monday. In the U.K., Hitwise statistics show that Amazon took a 26% share of visits to U.K. online retailers. Importance and need for customer satisfaction.

You should never ignore the significance of customer loyalty. Many components contribute to the achievement (or disappointment) of a business; customer loyalty is one of them. It's important to follow this factor and work on improving it to make your customers more loyal and eventually turn them into brand ambassadors.

Companies use relationship marketing to build and maintain relationships with their customers in many ways, for instance:

  1. To offer a discount to loyal customers.
  2. Loyalty cards
  3. Coupons
  4. Send emails or SMS.
  5. Greet on special occasions.
  6. Take customers' feedback.

What is a competitive advantage?

Competitive Advantage refers to the use of information to gain leverage in the marketplace. Uses virtual as well as physical resources. It is used to meet the strategic objectives of the firm.

How do I create a competitive advantage?

Competitive Advantage Increasing a key bit of leeway over competitors requires creative utilization of I.T. Store executives may settle on a choice to introduce contact screen stands in the entirety of their stores with connections to their internet business site for web-based shopping. This may draw in new clients and build client reliability as a result of the simplicity of shopping. Thus, vital I.T. can help provide items and administrations that give a business a similar bit of leeway over its rivals. Ex: Dell was the main P.C. manufacturer to utilize the Web to take the clients' requests and increased its understanding more than others, yet it still sells P.C.s through the Web.

Strategic moves to achieve competitive advantage Initiative

  1. Reduce Cost Initiative
  2. Raise Barriers to Market Entrants By making it troublesome or outlandish for other associations to create the items or administrations by utilizing skill or innovation.
  3. Microsoft Initiative
  4. Establish a High Switching Cost (ex: a binding agreement of DSL or EVO wireless for a 12-month postpaid mobile connection in the U.K.).
  5. Strategic moves to achieve competitive advantage Initiative
  6. Create a new product or service.
  7. Ex: Banks' features with Internet Banking and ATMs versus Manual Initiative
  8. Differentiate products or services through brand names. Ex: Levi's Jeans, IBM Products, H.P. Imaging, and Printing Devices Initiative
  9. Enhance the product or services
  10. by providing a free extended warranty Car, and dealers may attract more customers by providing useful information on financing.
  11. Establish alliances by combining services that are cheaper and make them more attractive.
  12. LINK1 Other examples are hotels and car rentals to offer travel, lodging, and pick-up and drop-off from airports METRO and HBL for credit initiatives.
  13. Lock in Suppliers and Buyers Lock in either the supplier to their mode of operation or the buyer to their product. The key to this approach is to possess bargaining power—the leverage to influence buyers and suppliers.
  14. Ex: Suppliers and Wal-Mart agreed to use I.S. for supplies to Wal-Mart.

Conclusion

Online shopping has a few strategies to be successful. The major method is data analysis, which can help the company improve its performance and increase its profit. As well as building a great relationship with loyal customers, treating them specially, and offering unlimited promotions.

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Black Friday and Cyber Monday and Sales Volumes and Patterns. (2023, Mar 07). Retrieved April 18, 2024 , from
https://studydriver.com/black-friday-and-cyber-monday-and-sales-volumes-and-patterns/

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