Monday, February 08, 2010

Advertising Myth: Online research leads to offline purchases

It’s probably not a myth, but a new start-up called Wakozi is betting against it. While most firms are shifting to online advertising despite the necessity of in-store purchasing behavior (such as the automotive industry), Wakozi wants to compel online purchasing behavior. The purpose of Wakozi is to allow consumers to order food, drinks, and other goods online and have it delivered to their door by local shops and delis.


Instead of looking up local shops with Google Maps and then navigating to each shop’s personal website before either calling the shop or going there in-person, Wakozi wants to provide an alternative. You simply enter your home address and Wakozi gives you a list of stores in your area that will deliver to you. The added bonus is that Wakozi provides real-time inventory counts and a full list of items for each store.


Taking a step back, the whole website model is centered on lead generation for local businesses. Wakozi is a middleman that provides advertising opportunities for local businesses and convenience for consumers who are comfortable making purchases online. Wakozi doesn’t handle the transaction or deliver the products – that’s done between the consumer and the local store.


The remaining question is: Why would consumers make the purchase through Wakozi instead of walking to the local deli? I suppose it’s either laziness or consumers are ready to embrace more options for online purchasing.

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