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Digital Marketing Applications > Comparison Websites > Flashcards

Comparison Websites Flashcards

1
Q

What about comparison websites? (8 points)

A
  1. They are a form of affiliate
  2. They don’t have their own category
  3. But worthy of own discussion due to being very large
  4. Varying product complexity
  5. Offer filters
  6. If you want to acquire large distribution as supplier have to use comparison website
  7. Exploited General insurance weaknesses and broader markets
  8. Legal changes: having to say the last years premium in the renewal notice
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2
Q

What was the general insurance weakness that comparison websites could exploit? (1)

A
  1. Existing customers were used to subsidise new customers)
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3
Q

what is the revenue model of comparison websites?(1)

A
  1. The revenue model is a combination of CPC and CPS
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4
Q

What are the three top UK industries used in comparison websites?

A
  1. Motor insurance (44%)
  2. Hotels (30%)
  3. Flights 29%)

(kantar, 2017)

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5
Q

What are the technologies used for gathering data? (4)

A
  1. Screen Scraping: Automated copying and pasting (through a spider)
  2. XML (like HTML): Link to back end systems, a form of information wrapped in specific language
  3. In-house teams: to collect data (rare) (from journals etc)
  4. Buy in-data from specialised firms
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6
Q

How can the Value Chain be applied to the online journeys (VC)? (3 points)

A
  1. It is seen as effective for chained sequences in manufacturing (peppered and Rylander, 2006)
  2. Value is defined as what someone will pay (increased as you go through the chain)
  3. Value systems link firm value chains to supplier and buyer value chains, we can adapt this model to explain comparison websites
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7
Q

What builds the initial value chain?

A
  1. Primary activities: in-bound clicks (where are users coming from) what quality?
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8
Q

What are the primary activities (in VC) for comparison websites? (5)

A
  1. Inbound Clicks
  2. Operations (how can we manage match?)
  3. Outbound Clicks ( Landing page)
  4. Marketing and Sales (indirect networks effects)
  5. Service
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9
Q

What are the support activities (VC) for comparison websites? (3)

A
  1. Firm infrastructure
  2. Human Resource management
  3. Tech development (e.g. getting clicks as cheap as possible through soft searches for an example).
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10
Q

What happens throughout the click chain? (3)

A
  1. along the way it becomes more specific
  2. Value can be extracted along the way
  3. Payments are being made along the way
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11
Q

What does final comparison website try and achieve in a click chain when customer has been acquired? (2)

A
  1. Try and create relationship for direct contact where the customer comes straight to the website
  2. Try and shorten the chain if not
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12
Q

What can be done for companies to shorten the chain or remove it? (2)

A
  1. Have a large marketing budget if you’re a big brand

2. Hard work on SEO

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13
Q

What is the journey for:

  1. Direct visitor?
  2. Paid search?
  3. Via comparison Websites?
  4. Via affiliates?
A

Direct visitor (straight)

paid search: Comparison website -> product provider

via comparison website: search engine-> comparison website-> product provider

Via affiliates: Affiliate-> comparison site-> product provider

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14
Q

Why is retention so important? and how can it be done?(2)

A
  1. So that customers can come directly to website for the next purchase
  2. Through email-marketing, schemes and news letters
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15
Q

What is the appeal of comparison websites for user (4) and retailers (4) ?

A

Users:

  1. Lower search cost
  2. Choice
  3. Switching cost is lower
  4. Prices are lower

Retailers:

  1. Refined customers (people will match your risk profile)
  2. A tool for quick acquisition (get people in)
  3. Can be cheaper acquisition method debatable (almost like outsourcing)
  4. Reach for smaller players (big firms don’t like comparison websites, charges their brand)
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16
Q

What are problems for retailers? (6)

A
  1. Customer relationships: Who actually owns the customer? doesn’t stop them going back to comparison websites
  2. Retention: highest rate of disloyalty from customers
  3. Price focus commoditisation: what people compare is price, some might be looking for brands however.
  4. Power: comparison websites are almost like multichannel ,you have to be cheaper if you want to be on websites
  5. Conflict and interest: market is based on acquiring new customers and existing customers funding, if they move somewhere else it destroys the business model.
  6. Conflict interest: uneasy balance, big players don’t like comparison websites. but comparison websites like them.
17
Q

How do retailers respond to threats? ( 6 points)

A
  1. Use CW and change the business model: Go cheaper, strip out product to get to the top. then when you buy it changes.
  2. Use CW but appropriately:
    - Brand: it is a commodity, be the first strongest brand in list
    - Service: do a good job in first year, and then try and retain. (car and house insurance is difficult due to lack of engagement). try and expand product range to get more engagement and sales.
  3. Non-cooperation: you give up a large distribution channel, means you have to put money in other areas since you give up big part of the market. (e.g. direct, affiliate marketing, paid searches)
  4. Restrictions on re-solicitations: The CW agrees to not recontact customer in certain time period (seen as specific for certain products)
  5. Most favoured nation causes: not being able to offer lower prices else where. (controversial)
  6. Agreements on paid search: Non-brand bidding and negative matching. (conditions of affiliate marketing)
18
Q

What are the ethical issues for consumers? (8 points)

A
  1. How CW’S are funded by retailers impact the price charged to customers: if they’re is an intermediary what value are they adding if they take some of the margins?
  2. Issues around coverage of the market: are they actually covering the entire market? (will only include firms that are paying to be on website)
  3. Issues around matching for complex products: e.g. coverage and insurance to a certain degree. more or better information? more!
  4. Gaming and add-ons: stripping product. find a why to get top of list.
  5. Barriers to entry in the market: need huge amount of money to enter the market.
  6. Varying prices: differentiations across websites based on deals
  7. Inequalities: higher socio-economic groups use CW more than lower groups (prices vary)
  8. Privacy and regulation: GPR, data processors. concerns re-collection, consent and use of data.

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