A recently published Yale University study on Internet sales and the auto industry found that “mediating interactions through a computer removes important cues that salespeople can use to determine a customer’s willingness to pay.”  Lengthily  entitled, “Consumer Information and Price Discrimination: Does the Internet Affect the Pricing of New Cars to Women and Minorities,” the report zeros in on the auto industry, yet offers insights that can cross industry lines.  (The report actually gives much more information about how this affects African American and Hispanic minorities, so definitely check out the link below if those segments are of special interest.)

Under Cover of Internet

It makes sense that online anonymity gives car buyers an edge.  It is common knowledge that sales professionals recognize and use dress style, body language and tone of voice in great part to judge a customer’s “sophistication” and negotiating skill.  That pre-judging is why women often bring their husbands or male friends when heading into a showroom.  None of these things is apparent online, however, unless or until email addresses are exchanged. 

Because of the typical "sleazy salesman" stereotype (I’m not saying it’s true), women are likely to conduct much of their pre-purchase research online before they even get to the point of submitting their email address for assistance.  Even then, many email addresses are not gender obvious. 

Women want to be treated equally, and the Internet is helpful in leveling the playing field in some cases.  Posing certain health questions and exploring financial products online anonymously, for example, just feels more comfortable for initial information gathering efforts. 

Personally, when I have a question regarding something I don’t understand, the “ins” and “outs” of my Internet cable connection, for example, I am definitely more at ease using online chat than talking with the randomly assigned phone-bank tech guy for whom my concern is a piddling neophyte’s problem.  And what of, say, middle-aging women who are in the throes of perimenopause, but remain behind their curtain of blissful ignorance?  The option of emailing anonymous questions to a staff medical professional or alternative medicine specialist on a web site certainly might feel more secure than taking the full “in-person plunge” at that stage.

Indebted to Salespeople No More

The Yale study further mentioned that the feeling of indebtedness generated by an offline buyer/seller “relationship” is also positively affected by Internet anonymity.  Online customers are less likely to feel obligated to follow through or be more pliable in negotiations if they haven’t spent real, offline time with a particular salesperson.  Because women can so easily form interpersonal connections with the people they come across on any given day, Internet anonymity really works in their favor here.  (It only takes 5 minutes to discover that your kids go to the same piano teacher, after all, and by then you are “friends.") 

What Cost Anonymity

The whole idea of Internet anonymity loses luster, however, when you think about how easy it is to over-automate the online research and buying process.  Once a woman gets beyond her desire to be anonymous in those higher learning curve industries, you should quickly focus on developing a personal relationship with her, based on trust and respect.  

Becoming Personal

For many women, talking directly with customer service staff (by phone or in person) may be the preferred way to learn about a product and how it meets their needs.  So, marketers should identify those area's in a woman's buying cycle where in-person contact is preferred over the ability to research independently, and provide the appropriate options.  (Further tips for developing personal relationships with women consumers will be found in our almost-published book, “Special Report: Best Practices of Marketing to Online Women.")

Just like any other topic I’ve covered in regard to reaching women, Internet anonymity is by no means the one big answer to addressing women’s concerns online.  (Repeat after me: there is no simple answer.)  Rather, it is something to consider when equipping comparison-shopping early on in a consumer’s buying process.  

The anonymity factor seems to provide a safe buffer zone from which "newbies" can begin their education and get comfortable with high learning curve industries like the automobile business.  Give women consumers the option of starting their online learning independently, THEN, guide them into a great, non-anonymous, personal relationship with a well-trained customer service human being.

Links:

Use this URL for the Yale Study (I couldn't get the link to work, so you'll need to cut/paste into your browser): 

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=288527#Paper%20Download

Big news: Women were the majority of online buyers this just-passed holiday season, as all sorts of media outlets have so helpfully announced.  Are we surprised?  No. 

It looks like it’s going to be a whole new ballgame in 2002, with many more companies truly “tending” to women consumers.  My guess is that much of the new and continuing efforts will be in the more “transparent” form, and will be integrated into overall marketing campaigns without “calling out” women.  (See the tidbit regarding the Ford Marketing to Women Office).  I’d love to hear what your companies are up to in this regard, and report it back to all RWO readers. 

Have a great New Year!  I predict 2002 is going to knock our socks off with positive change.

Take care until next time,

Andrea


P.S. Yes!  Write me with your ideas, comments, or questions at: andrea@reachwomen.com