[Li Jiaoshou] In the era of content e-commerce, you must understand the four changes in "consumer preferences"!

[Li Jiaoshou] In the era of content e-commerce, you must understand the four changes in "consumer preferences"!
If Taobao and JD.com are transaction-based e-commerce , then another type of e-commerce - content e-commerce - is gradually rising. More and more consumers are purchasing products while watching live broadcasts, reading self-media articles, and reading posts.

When the market shifted from offline to online, the rules of the game changed. Now, as we shift from transaction-based e-commerce to content e-commerce, the rules of the game will also change.

In this issue of Li Jiaoshou’s article, we will talk about how various marketing decisions that are closely related to you may change under content e-commerce.

How will the gameplay change on content e-commerce platforms?

The species that survive are not the strongest or the most intelligent, but those that can respond fastest to environmental changes.

——"The Origin of Species" by Darwin

If you were a war expert, you would definitely study how the relevant factors that "determine the outcome of a war" change - the emergence of gun formations changed the ability of cavalry to determine the outcome of a war; the emergence of machine guns made gun formations meaningless; the emergence of tanks reduced the strategic role of machine guns...

Similarly, if you are a marketer, you will definitely study how the relevant factors that "determine customer choices" change, because customer choices are always the key to your market capture.

What factors determine the customer's choice?

Just as the key weapons that determine the outcome of wars are different in different eras, the key factors that determine customer choices are also different in different situations.

Offline Era

The most common keywords in marketing are: channel is king, sky-high advertising, shelf competition ...

Because " convenience of purchase " is almost the most important factor in determining customer choice - no matter how good your product is, if it's not on the shelf, everything you do is in vain.


The era of transaction-based e-commerce such as Taobao and JD.com

The most common keywords in marketing are: traffic, cost-effectiveness, hot product strategy, leading sales, and over 10,000 positive reviews

In this case, channels become less important because theoretically all products have the opportunity to be purchased .

The price-performance ratio and sales volume information have become unprecedentedly important because " all factors that can be directly compared will be compared by consumers " - when we are just excited about a favorite digital product, we immediately see the following similar recommendations, and after repeated comparisons, we still choose the one with leading sales and high price-performance ratio.

This also leads to another question:

Many exquisite products , such as exquisite designer cups, are not easy to sell . On the one hand, the advantages of such products are not easily reflected by parameters; on the other hand, a large number of low-priced imitators also cause the products to quickly become homogenized.

The era of content e-commerce

Then, another trend came: the era of content e-commerce .

Many consumers complete purchases while reading content - whether it is WeChat self-media e-commerce, live broadcasts by internet celebrities selling goods, or posts such as "What are the basic spring clothes for boys?"

What is the biggest change under this trend?

Under content e-commerce, the most important change is that there has been a large-scale separation between consumers’ shopping behavior (shopping) and purchasing behavior (buying).

In most cases in the past, shopping and buying basically happened at the same time. In order to buy things or enjoy shopping, consumers went to JD.com, Tmall or offline New World Department Store to shop (go shopping), and in the process, they bought goods (buying goods).

In the content e-commerce environment, when consumers buy goods, they are not in the mentality and scene of "I want to shop" or "I want to go shopping" , but are leisurely watching the live broadcasts of beauty experts or articles from self-media.

This is very different. When you see product information when you want to shop and when you don’t want to shop, your entire preferences, selection criteria and decision-making methods will change dramatically.

The most critical question about marketing success that we just raised - " What determines the customer's choice " - will also undergo tremendous changes.

Content e-commerce vs. transaction-based e-commerce: 4 major differences in consumer behavior

1. Individual evaluation vs. joint evaluation

When consumers see a product, there are two typical scenarios:

In content e-commerce (for example, when seeing new media article recommendations), users are generally in a state of individual evaluation.

For example, Gu Ye once published a soft article selling "paintings hanging on the electricity meter box" - the electricity meter box at home is ugly and unsightly, so you can cover it with a painting to make the home look beautiful and classy.

When you see this product recommendation ad, you enter the "solo evaluation" state , comparing only the painting in front of you and your current situation (without the meter painting). At this time, what you care about is whether the product itself is good, what kind of feeling it brings to you, and whether the price is acceptable.

The most likely result is that you saw the painting was priced at over 200 yuan, which was not too expensive, so you bought it.

However, if you see the products not when reading Gu Ye’s official account, but instead enter a transaction-based e-commerce platform such as Taobao or JD.com, the mentality will be different.

In transaction-based e-commerce, users are generally in a state of “joint evaluation”.

 

For example, if you search for "electricity meter box hanging painting" on Taobao, the page you see is like this:

At this point, you enter the "joint evaluation" state, and your main comparison point is no longer the "meter box painting" and your current situation (no meter box painting), but which of the many meter box paintings is the best.

If you look closely at the Taobao picture above, I think your consumer psychology has undergone these changes at this time:

  • I want to see what the difference is between paintings of different price ranges. Material? size? Printing and dyeing process? Who drew this?
  • Eager to find some information that makes you feel familiar. For example, take a quick glance to see which brand you have heard of (even Huawei brand paintings can catch your eye at this time).
  • Quickly compare which store has the most sales and the most positive reviews (Huh? I just saw Gu Ye’s post, why isn’t he so concerned about sales information?)
  • I started to care about the price and rethink whether it was worth buying this painting.

Then, you may not buy a painting to hang on the electric meter box, and you may even think that buying such a painting is redundant, and it is better to buy a box of milk to replenish your body.

On the surface, it seems like the same product, you just switched the evaluation method (individual evaluation vs. joint evaluation), but your product selection criteria have changed dramatically.

As we said before, in order to "survive in the competition", you have to understand what changes have taken place in the factors that "determine user choices":

(1) Emotional cues vs. rational cues

In a joint evaluation environment, consumers pay more attention to rational clues that are easy to compare, such as material, size, printing and dyeing technology, etc. This is because when jointly evaluating, we look at the differences between options, not the differences between options and the current situation.

When evaluating individually, consumers are more susceptible to sensory cues, and their brains enter "feeling mode" rather than "calculation mode." They are more likely to feel the changes in life brought about by adding a painting, the overall design sense of the painting, the artistic atmosphere it exudes, etc.

Therefore, if your product has an advantage in parameters, such as Xiaomi or LeTV's mobile phones, it will be very beneficial to enter the joint evaluation because users care very much about running scores.


If your product has an advantage in experience other than parameters, such as a beautifully designed and sentimental mobile phone, it would be more advantageous to enter the individual evaluation, because your advantages cannot be directly calculated and it is difficult to gain an advantage in the joint evaluation.

A study found that if there are two ice creams of the same price, one is filled to the brim in a small cup, a total of 50 ml; the other is half filled in a 200 ml cup, equivalent to 100 ml.

When evaluated individually (seeing only one of the ice creams), consumers were more satisfied with the full cup of ice cream but with a smaller amount. Because at this time we look at the "subjective feeling", so the fullness in front of us gives people the feeling that there is too much.

However, when evaluating together (seeing two ice creams at the same time), consumers will choose the half-full but larger ice cream - nonsense, we are not stupid, looking at the data it is obvious that this one gives more.

For example, when looking for a job, if you only see one career option, most people will be more satisfied with a job with exciting work content, an admirable company name, and good development prospects (rather than just salary).

When conducting a joint evaluation (getting many offers at the same time), everyone compares them and is more likely to choose a job with higher salary but which they don’t actually like.

Because when we make joint evaluations, we are more likely to ignore our subjective feelings and choose options that have better "data" and "parameters".

So on Taobao, you can directly choose a painting based on the cost-effectiveness of material, size, etc., even if you are not as surprised as you would be if you bought Gu Ye's painting after buying it.

This also means that in a transaction-based e-commerce environment, products that compete on parameters and data are more likely to win , while products that excel in design and originality are unlikely to win customer choice.

In content-based e-commerce, we evaluate individually, and the impact brought by the designer's original design may directly make us choose to buy.

This also means that in transactional e-commerce, we are more easily influenced by information such as sales leaders and well-known brands because it is also easy to compare. In content-based e-commerce, we directly feel whether we like the product or not.

(2) High-end vs. low-end

In the joint evaluation state, we will enter the "calculation mode" and pay more attention to price information (because it is easy to compare), so the sales of low-priced products will be very good.

 

When evaluating individually, we will pay more attention to subjective feelings and are more likely to ignore costs and indulge ourselves by buying what we like, so the sales of high-priced items and luxury goods will be very good.

 

I once met a client who sold products through self-media. The same product (a high-end, designer cup) was pushed to the same fans, one using the Taobao platform, and the other using an e-commerce platform embedded directly in WeChat. As a result, the conversion rate of the latter was more than ten times higher.

In fact, a very important reason is that Taobao is essentially a transaction-based e-commerce, which will force all consumers to automatically enter a state of joint evaluation.

(Figure: On any detail page, similar products will be recommended, allowing consumers to enter a joint evaluation)

In this state, users will pay more attention to cost information and become more price sensitive, resulting in fewer people choosing high-end and hedonistic products.

Therefore, high-end brands (such as LV) must use exclusive stores offline instead of entering shopping malls, because the latter require joint evaluation.

Summarize
In the content e-commerce environment, more people will shop under independent evaluation, resulting in the following changes:

  • The role of cost-effectiveness will decrease, while the influence of emotional factors will increase (such as design sense, long history, feelings, stories, etc.).
  • Sales of low-end products will decrease, and high-end products and hedonistic products that were previously difficult to sell will become easier to sell.

2. Active search vs. passive search

If you shop on Taobao or JD.com, your mental state at this time is often: I want to buy something .

You are in a "shopping" state of mind, often with an underlying task in mind - like looking for nice clothes or buying a carton of milk to store in the refrigerator.

At this point, we say that you are in an "active search" state of mind. You will be more sensitive to information about products that you may purchase in the future, and less sensitive to irrelevant information.

In the content e-commerce environment, you are concentrating on watching a live broadcast of an internet celebrity or the content of some self-media, and suddenly you see some product information (for example, a health anchor recommends a new smart toothbrush). At this time, we say that you are in a " passive acceptance " mentality.

What's the difference?

Research has found that when we are in an active search state, we pay more attention to information that is directly related to the task and pay less attention to information that is irrelevant to the task.

For example, if you want to choose a face cream, you will compare it among a large number of face cream-related products and be very sensitive to information related to face cream.

If you happen to see a new product called "facial spray" at this time, you may not care at all (because you are looking for a face cream), even if it can also help you improve and maintain your skin.

(ps. This product was created by Li Jiaoshou to create a sense of unknown. In fact, this product does not exist)

Therefore, in transaction-based e-commerce, various novel and unknown products are actually not easy to sell.

There is a famous "invisible gorilla" psychological experiment that proves this.

Psychologists gathered some volunteers and gave them a task: count how many times the players passed the ball in the following video.

Then halfway through the video, a guy comes in wearing a gorilla costume and does a cheering gesture.

At the end of the experiment, the psychologist asked the volunteers: How many times did the player pass the ball in total? Most people got the answer right.

But then ask: Did you see a gorilla ?

As a result, more than half of the people claimed that they did not see the gorilla.

This is because when watching the video, most people focus on the task of "counting passes" and automatically ignore information that is not related to the task (gorilla).

This also means that when users buy facial creams on JD.com, they may be more likely to focus on the cream itself, rather than actively and curiously looking for new products that can replace facial creams.

However, if it is a content-based e-commerce, users do not think about buying a face cream in advance, but are watching a program that teaches you how to take care of your face. They will be more likely to accept a new way of facial care (such as XX facial spray).

Summarize
Content-based e-commerce is more suitable for selling novel products than transaction-based e-commerce.

3. Perception of the commercial attributes of channels

When shopping on transaction-based e-commerce platforms such as JD.com and Tmall, consumers often have a clear perception of the merchants - they advertise to make money, so they naturally increase their vigilance and suspicion of information.

At this time, consumers will pay more attention to the shortcomings of the goods and are more likely to choose products without shortcomings and risks.

In short, it’s the “ nitpicking mentality ”.

When reading content (such as self-media content or independent shopping guides such as Bantang and Diaodia), consumers’ mentality is not “I have to screen who will cheat me”, but to focus on reading the content - "Wow, this joke is so funny, hahaha!" "Oh, it turns out that boys’ spring clothes need a blazer!"

At this time, consumers will pay more attention to the advantages of the goods and are more likely to choose products with highlights and unique attributes.

In short, it’s the “ psychology of finding bright spots ”.

This has huge implications for different types of products.

For example, the Hammer phone is a product that has both highlights and flaws.

If it is a transaction-based e-commerce platform such as JD.com, users may be tempted after seeing the advantages, but once they see Wang Ziru’s comment that "the battery life of the Hammer is not good", they may give up the purchase immediately.

This is also an important reason why one bad review on platforms such as Taobao and JD.com is worth a thousand good reviews.

On content-based e-commerce platforms, users believe that they are not shopping but watching live broadcasts and reading articles. Their defensive and critical mentality is not activated, and they are more likely to be influenced by various unique and impressive advantages - "Wow! The Hammer phone is symmetrical, really good!"

For example, Huawei P9 uses the "Leica dual camera", which has unique value, but in the eyes of some users who value origin, Huawei is a "domestic product" rather than an "imported product", and has shortcomings.

On JD.com and Tmall, many users just glance over and think: domestic products are unreliable, so forget it. All other highlights are rendered useless by this flaw. (This is called a “non-compensatory evaluation” in marketing, where the disadvantages cannot be compensated by the advantages)

On content platforms, users do not think that their current task is shopping, and do not activate the "nitpicking mentality", so they are more likely to look at the product comprehensively: the P9 is Huawei's, and it is made in China. Huh? Leica dual camera, this is a good feature, even if it is domestically produced it doesn’t matter, I think it’s worth buying! (This is called "compensatory evaluation" in marketing, where the shortcomings of the product can be compensated for somewhat)

Similar principles apply not only in the field of marketing, but also in any field related to user decision-making, such as finding a partner.

When going on a blind date, it is similar to the state of "transactional e-commerce" . The blind dater (such as a beautiful woman) has a decision-making task related to courtship in his mind, which makes it easier to activate the fault-finding psychology and enter the "non-compensatory evaluation". One shortcoming kills everything.

Oh, you don’t have a house, then there’s no need to talk about it, thank you. Please pay for the coffee when you leave. I have something else to do so I have to leave first.


At this time, no matter how great my advantages are in other aspects (for example, I am more handsome than Ronald Cheng, more talented than Steve Jobs, and I love you more than my own father), it is difficult to make up for the necessary disadvantage of not having a house.

 

Therefore, a man who scores 60 points in all aspects is much easier to pass the screening than a man who scores 40 points in one aspect and 99 points in other aspects, because at this time the lowest score is considered instead of the total score.

If a woman is not on a blind date, for example, she is talking about business cooperation with a man from the other company, she will enter a state similar to "content-based e-commerce". She does not have the decision-making task of "I want to judge whether he is suitable for marriage" in her mind (because she is discussing business at this time), so she has no defensive psychology and enters a " compensatory evaluation " -

This person is really talented. He was promoted to department manager at a young age. Although he hasn't bought a house yet, his future is limitless!

At this time, advantages and disadvantages can complement each other. If there is not enough real estate, talent can be used to make up for it; if there is not enough height, appearance can be used to make up for it... Men with higher total scores are more likely to win the opportunity for the next development.

 

Summarize
In the content e-commerce environment, products will not lose the opportunity to be favored by users due to a single defect (such as not being a big brand or not being imported). It is easier for consumers to find highlights and look at the overall score.
4. The need for cognitive closure

Let’s first explain what the “need for cognitive closure” is.

The "need for cognitive closure" has been a hot topic in psychology in recent years. It refers to the desire to find a clear answer to an ambiguous question.

For example, the ancients clearly did not have the ability to figure out why it rained, which is equivalent to the important question of "why does it rain" not being "closed", which is frustrating.

For this reason, the ancients came up with a theory of "Thunder God, Lightning Mother + Dragon King" to explain the reason for rain. Although this is completely unfounded, it satisfies people's "need for cognitive closure," resolves doubts, and makes people feel relieved.

When we have a high need for cognitive closure, we want to quickly get a reasonable answer that convinces us, and we are often unwilling to accept complex information, new ideas, or any ambiguity.

What does this have to do with our content-based e-commerce vs transaction-based e-commerce?

In transactional e-commerce (even offline shopping malls), we believe that we are here to shop, and we implicitly have a task of making consumption decisions. We have a high need for cognitive closure - constantly looking for clues that can help us make quick purchasing decisions.

For example, if you want to buy an electric car for transportation, you go to Taobao and see that in addition to regular electric cars, there are also these:

There is a high probability that you will be attracted by it, but will not buy it in the end and will buy a traditional electric car instead.

Because it is very easy to judge whether a traditional electric car is suitable for you - there are so many people riding it on the street, and if others can use it, so can I.

It can quickly "close" your cognition.

Judging this new electric car is much more troublesome——

"Is it dangerous if it's so thin? How can I judge its safety? I'll check out some user reviews... Baidu for review videos..."

"The advantage is that it can be folded. Are there many application scenarios for me? I may use it occasionally when taking the subway. This is an advantage over traditional electric vehicles. Do I take the subway frequently...I took it a few times last month..."

"The range is 20 kilometers. I want to calculate whether this 20 kilometers is enough for me. From home to the company... I remember it is 4 kilometers. Then I look at the map... What if I need to go on a long trip one day..."

"The tires are not air-filled. Will this reduce the off-road capability? Ask around...what advantages do they have over air-filled ones..."

If you have a high need for cognitive closure and need to make a decision as quickly as possible, then you will most likely not choose this product - judging whether it is suitable for you is too complicated, just like the ancients' understanding of the weather.

On the other hand, if you are on a content-based platform, you can just leisurely watch a live video called "New Urban Transportation Mode" (instead of having an implicit decision-making task in your mind), and leisurely learn about the car through the video. In this way, you can accept relatively complex information and ultimately purchase the product.

Therefore, content-based platforms reduce the "need for cognitive closure", making it easier for users to accept complex decision-making information, and making it relatively easy to sell complex, unfamiliar, and difficult-to-compare products.

 

On a transactional e-commerce platform, if users cannot make direct and quick comparisons, they are less likely to buy your products.

Conclusion

In content e-commerce, what changes have taken place in the factors that “determine user choices”?

Because users are more likely to make individual evaluations, more likely to passively accept information, have fewer concerns and find faults, and have less need for cognitive closure, they are more likely to accept emotional information, high-end products, hedonic products, novel products, complex products, and products that have defects but overall highlights.

In short, compared with Xiaomi, Hammer phones will have more advantages in content e-commerce platforms than in transaction-based e-commerce.

Application scenarios of this method:

  • Determine future trends and choose strategic directions.
  • Select a product strategy.
  • Choose sales channels according to product characteristics.
  • Choose your ad appeal.

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