In Germany, the market for home shopping is booming. Television constantly gains importance for direct marketing activities. In 2000 the turnover of Germany’s three most successful television home shopping companies Home Shopping Europe (HSE), QVC and RTL Shop reached a total of €392 million; in 2004 it increased to approximately €871 million. Today, statistically speaking every sixth German has ordered a product or service from a television home shopping channel, 5,6 million of them even do it on a regular basis.
Television home shopping today gains €1,2 billion and the market research institution Goldmedia in Berlin expects a €1,6 billion turnover until 2012. The television home shopping companies achieve better results than they had ever before. The company QVC, based in Düsseldorf increased its turnover in the last year and achieved its second best result since its formation twelve years ago. The television home shopping channel 1-2-3.tv GmbH currently closed its business year with the best result since its formation four years ago and the market is not saturated yet.
This market situation leads to the fact that in spite of the economical crisis companies invest a lot of money in the development of home shopping. For example QVC plans to invest ten million Euros in 2009, mainly in developing Internet and IT-systems. In the past it has improved its logistics and achieved to shorten the delivery period to the customer by twenty percent.
Not only in Germany television home shopping is considered to be a growth market. In the United States the market for home shopping and mail order grew by 10% to a value of over US$172 billion in 2004. The European home shopping market grew from €67 billion in 2003 to more than €68 billion in 2004.
This paper deals with the question why television home shopping, as a part of interactive media, is so successful and what specific impact it has on the consumers’ buying patterns. This paper will concentrate on home-shopping channels. They will be analyzed exemplary, because above all shopping within these channels is one of the most interactive ways of home shopping and reveals some intriguing and interesting results concerning consumer manipulation techniques and consumer behavior.
The main objective is to find out why offering products and services via television has changed the consumers’ buying behavior until now and what can be expected for the future.
Table of Contents
1. Introduction
1.1 Definition
1.1.1 Interactive Media
1.1.2 Television Home Shopping
1.2 Research Question and Objectives
1.3 Course of Work
2. Framework of Television Home Shopping
2.1 Proceeding and Technique
2.2 The Target Audience
3. Analysis of Television Home Shopping
3.1 Analysis of Success Factors
3.1.1 Marketer’s View
3.1.1.1 Fit to the CRM Model
3.1.1.2 Further Factors for Success
3.1.2 Consumer’s View
3.2 Summary of the Results
4. Future Prospects and Research
Objectives and Key Themes
This paper investigates the underlying reasons for the success of television home shopping within the interactive media landscape and examines its specific influence on consumer buying behavior. It explores how these channels function as effective marketing tools and how they align with modern lifestyle needs to foster long-term customer relationships.
- Customer Relationship Management (CRM) in home shopping
- Parasocial relationships between hosts and consumers
- The impact of convenience, comfort, and connectivity on shopping behavior
- Strategies for consumer engagement and retention
- The interplay between traditional retail and home shopping channels
Excerpt from the Book
2.1 Proceeding and Technique
Nash (1999, p. 21) stated that any strategic planning in direct marketing has to consist of five elements; product, offer, media, distribution and creativity. Each of them “demands careful study, perceptive problem definition, innovative solutions, and logical decision making” (Nash 1999, p. 21). For each distribution medium these requirements are different. In the case of television home shopping there is a typical proceeding. Within a show the offered product is described in detail and shown with its retail price. Viewers can phone in their orderings directly on a toll-free line and pay e.g. by credit card. They contact a call center that takes the ordering details and deal with any follow-up questions a viewer might have (Walsh/Gwinner 2009, p. 116). To persuade viewers to buy a product and to become a loyal customer some specific methods are used, which will be described in the following.
The two main objectives of a company that promotes its products through television home shopping, are to build strong relationships with its customers and then use these relationships to sell its products. Therefore the host, part of the on-air sales staff, in each show systematically forms a kind of relationship with viewers and uses this relationship to encourage viewers to purchase the offered products (Stephens et al. 1996, p. 193).
To reach this, the hosts are supposed to have particular characteristics. They are always warm, friendly and spontaneous and express a personal interest in their audience. Viewers can identify with them, because they are like them and a viewer can imagine knowing them or even being such a person (Stephens et al. 1996, p. 194). The hosts seem very natural and authentic and therefore are likable. Some viewers even develop an affinity for one or a select few hosts and switch on TV solely when they are on air.
Summary of Chapters
1. Introduction: Defines interactive media and television home shopping while outlining the paper's core research objectives regarding consumer behavior and success factors.
2. Framework of Television Home Shopping: Analyzes the operational techniques and sales strategies used to build parasocial relationships with the audience.
3. Analysis of Television Home Shopping: Evaluates the success of the medium from both a marketer’s perspective, focusing on CRM, and a consumer’s perspective, focusing on convenience and hedonic values.
4. Future Prospects and Research: Discusses the potential long-term impacts of home shopping on the retail market and suggests further research into impulsive vs. planned buying.
Keywords
Television Home Shopping, Direct Marketing, Interactive Media, Customer Relationship Management, CRM, Parasocial Relationships, Consumer Behavior, Infomercials, Shopping Convenience, Customer Satisfaction, Database Marketing, Retail Market, Hedonic Motivation, Customer Buying Cycle, Sales Techniques
Frequently Asked Questions
What is the core subject of this paper?
The paper examines the success of television home shopping as an interactive marketing medium and its role in influencing consumer buying patterns.
What are the primary themes discussed?
Key themes include customer relationship management (CRM), the development of parasocial relationships between hosts and viewers, and how home shopping fulfills consumer needs for comfort and convenience.
What is the main objective of the research?
The objective is to understand why television home shopping is successful and how it has changed consumers' buying behaviors.
Which scientific methodology is employed?
The work utilizes a conceptual analysis approach, leveraging existing marketing models like the Customer Buying Cycle (CBC) and literature on direct marketing strategies.
What topics are covered in the main body?
The main body covers the operational framework of home shopping, a critical analysis of success factors from both marketer and consumer viewpoints, and a discussion of future market developments.
How would you characterize this work with keywords?
Relevant keywords include Television Home Shopping, Direct Marketing, Customer Relationship Management, Consumer Behavior, and Parasocial Relationships.
How do hosts build relationships with viewers?
Hosts use conversational techniques, informal settings, and a friendly, authentic demeanor to create parasocial relationships, which provide viewers with companionship and trust.
How does television home shopping address consumer needs?
It provides comfort through home-based shopping, convenience by eliminating store-hour constraints, and connectivity through immediate interaction with the shopping channel.
What is the role of the Customer Buying Cycle (CBC)?
The CBC is used to structure the interaction between the company and customer, demonstrating how home shopping channels effectively manage every step from stimulation to after-sales service.
- Quote paper
- Leonie Matzick (Author), 2009, The Impact of Interactive Media on Consumer Buying Behavior, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/157095
