Hp

As the demand for HPЎЇs printers in scenario 1 is given as N1, we need to analyze the purchasing effects of introducing direct sales of HP printers (all types) through HPЎЇs website, on each of the consumer market segments.

At home market, first time buyers: There are some arguments suggesting that consumers in this segment may be inclined to buy directly through the internet. Consumers here do sufficient research and are quite selective on deciding which printer to purchase. Also they are in no hurry to receive the product, and manufacturer guarantees are important to them because they believe that retailers have poor after sales support and repair services. Nevertheless, strong inhibitory factors also exist which would disincline them to buy off the internet. These buyers go through the normal phases of shopping behavior: awareness, consideration and purchase. In traditional cases like this the ÐŽ®touch and feelЎЇ factor becomes important, that websites cannot provide. Further because printer quality can easily be judged by a simple print-out, this factor becomes more pertinent. Moreover, as they are first time buyers, they may be apprehensive to technical jargon on the internet, and more comfortable discussing with salespersons (human interface) and receptive to live demonstrations (which the retailers can provide). As the product is not bought frequently, the shopping experience is more bearable (as compared to undifferentiated daily products). Further, retailers offer a variety of bundling options, which increase the value of the retailing option for the customer.

In conclusion, HP will not be able to attract a significant number of buyers through its website, in this segment.

At home market, repeat buyers (Upgrade or existing): For this segment, buying through the website offers a more attractive option than for the first time buyer. The customerЎЇs shopping agenda is more focused, due to a higher level of knowledge of the product and its performance. Hence issues of ÐŽ®touch and feelЎЇ do not factor in so much. The bundle buying option is unattractive because they tend to buy the printer as a single purchase. Mail order is already a popular channel for them, so they are accustomed to an extent of buying ÐŽ®sight-unseenЎЇ. It may be argued that ÐŽ®touch and feelЎЇ could be important to consumers upgrading to higher technologies, since an upgrade can be expensive (risk), performance is easily demonstrated, and the customer is not likely to be very well informed of the product. Yet it can be said that the manufacturerЎЇs website will definitely be able to capture a significant portion of this market segment. But, still it will not increase