Chapter 4 Consumer behavior Market research and Advertisement
Chapter 4 Consumer Behavior, Market Research, and Advertisement
Learning objectives 1. Describe the factors that influence consumer behavior online 2. Understand the decision-making process of consumer purchasing online 3. Describe how companies are building one-to-one relationships with customers 4. Explain how personalization is accomplished online 5. Discuss the issues of e-loyalty and e-trust in EC 6. Describe consumer market research in EC Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 2 Learning Objectives 1. Describe the factors that influence consumer behavior online. 2. Understand the decision-making process of consumer purchasing online. 3. Describe how companies are building one-to-one relationships with customers. 4. Explain how personalization is accomplished online. 5. Discuss the issues of e-loyalty and e-trust in EC. 6. Describe consumer market research in EC
Learning objectives 7. Describe Internet marketing in B2B, including organizational buyer behavior 8. Describe the objectives of Web advertising and its characteristics 9. Describe the major advertising methods used on the Web 10. Describe various online advertising strategies and types of promotions 11. Describe permission marketing, ad management, localization, and other advertising-related issues 12. Understand the role of intelligent agents in consumer issues and advertising applications Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 3 Learning Objectives 7. Describe Internet marketing in B2B, including organizational buyer behavior. 8. Describe the objectives of Web advertising and its characteristics. 9. Describe the major advertising methods used on the Web. 10. Describe various online advertising strategies and types of promotions. 11. Describe permission marketing, ad management, localization, and other advertising-related issues. 12. Understand the role of intelligent agents in consumer issues and advertising applications
earning about Consumer behavior online A Model of Consumer behavior Online The purpose of a consumer behavior model is to help vendors understand how a consumer makes a purchasing decision Independent (or uncontrollable)variables Intervening or moderating variables · Dependent variab/es Roles people play in the decision-making process Initiator Influencer Decider Buyer User Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 4 Learning about Consumer Behavior Online • A Model of Consumer Behavior Online – The purpose of a consumer behavior model is to help vendors understand how a consumer makes a purchasing decision • Independent (or uncontrollable) variables • Intervening or moderating variables • Dependent variables • Roles people play in the decision-making process: – Initiator – Influencer – Decider – Buyer – User
The consumer Decision-Making process A Generic Purchasing- Decision Model product brokering Deciding what product to buy merchant brokering Deciding from whom(from what merchant to buy a product Electronic Commerc Prentice Hall 2006 5
Electronic Commerce Prentice Hall © 2006 5 The Consumer Decision-Making Process • A Generic Purchasing-Decision Model product brokering Deciding what product to buy merchant brokering Deciding from whom (from what merchant) to buy a product
One-to-One Marketing Loyalty, and Trust in EC one-to-one marketing Marketing that treats each customer in a unique way One of the benefits of doing business over the Internet is that it enables companies to better communicate with customers and better understand customers'needs and buying habits Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 6 One-to-One Marketing, Loyalty, and Trust in EC one-to-one marketing Marketing that treats each customer in a unique way • One of the benefits of doing business over the Internet is that it enables companies to better communicate with customers and better understand customers’ needs and buying habits
Exhibit 4.3 The New marketing model Customer Receives marketing Exposure Marketing/Advertising Customer Decides on Chosen to Best Marketing Medium for Serve/Reach Customer Response “ Four Ps” (Product, Place Price, and Customer Customer Makes Promotion Relationships Purchase Decision Updated Uniquely to Customer Customer Profiled Based on behavior Customer Detailed Transaction/ Segmentation Developed Behavior Data collected Database Update Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 7 Exhibit 4.3 The New Marketing Model
One-to-One Marketing Loyalty, and Trust in EC personalization The matching of services, products, and advertising content with individual consumers user profile The requirements preferences, behaviors and demographic traits of a particular customer cookie a data file that is placed on a user's hard drive by a Web server, frequently without disclosure or the user,s consent, that collects information about the users activities at a site Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 8 One-to-One Marketing, Loyalty, and Trust in EC personalization The matching of services, products, and advertising content with individual consumers user profile The requirements, preferences, behaviors, and demographic traits of a particular customer cookie A data file that is placed on a user’s hard drive by a Web server, frequently without disclosure or the user’s consent, that collects information about the user’s activities at a site
One-to-One Marketing Loyalty, and Trust in EC collaborative filtering A personalization method that uses customer data to predict, based on formulas derived from behavioral sciences, what other products or services a customer may enjoy, predictions can be extended to other customers with similar profiles Variations of collaborative filtering Rule-based filtering Content-based filtering Activity-based filtering Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 9 One-to-One Marketing, Loyalty, and Trust in EC collaborative filtering A personalization method that uses customer data to predict, based on formulas derived from behavioral sciences, what other products or services a customer may enjoy; predictions can be extended to other customers with similar profiles • Variations of collaborative filtering – Rule-based filtering – Content-based filtering – Activity-based filtering
One-to-One Marketing Loyalty, and Trust in EC Customer Loyalty Customer loyalty is the degree to which a customer will stay with a specific vendor or brand for repeat purchasing Customer loyalty is expected to produce more sales and increased profits over time e-loyalty Customer loyalty to an e-tailer Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 10 One-to-One Marketing, Loyalty, and Trust in EC • Customer Loyalty – Customer loyalty is the degree to which a customer will stay with a specific vendor or brand for repeat purchasing – Customer loyalty is expected to produce more sales and increased profits over time e-loyalty Customer loyalty to an e-tailer