Consumer Behavior - E-Commerce - Lecture Slides, Slides of Fundamentals of E-Commerce

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Lecture Topic 4 Consumer Behavior, MarketResearch, andAdvertisement

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 withcustomers.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.7.^ Describe Internet marketing in B2B, including organizational buyerbehavior.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.

Learning aboutConsumer Behavior Online

Learning aboutConsumer Behavior Online

-^ The^ independent

variables

-^ Personal characteristics •^ Environmental variables •^ Social variables •^ Cultural/community variables •^ Other environmental variables – The^ intervening

(moderating) variables

-^ The^ dependent variables

: the buying decisions

Mass Marketing, Market Segmentation, and One-to-One

Marketing

-^ one-to-one marketing^ Marketing that treats each customer in a unique way •^ Mass Marketing^ –^ Marketing efforts traditionally were targeted to everyone^ –^ Targeted marketing

—marketing and advertising efforts targeted to groups (market segmentation) or to individuals (one-to-one)—is a better approach

Mass Marketing, Market Segmentation, and One-to-One

Marketing

-^ market segmentation^ The process of dividing a consumer marketinto logical groups for conducting marketingresearch and analyzing personal information

Mass Marketing, Market Segmentation, and One-to-One

Marketing

Personalization, Loyalty,Trust, and Satisfaction in EC

Trust in EC

Market Research for EC

-^ Methods for Conducting Market ResearchOnline^ –^ Market research that uses the Internet frequentlyis faster and more efficient and allows theresearcher to access a more geographically diverseaudience^ –^ Web market researchers can conduct a very largestudy much more cheaply than with othermethods

Market Research for EC

Market Research for EC

-^ Market research for one-to-one approaches^ –^ Direct solicitation of information (surveys, focusgroups)^ –^ Observing what customers are doing on the Web^ –^ Collaborative filtering

Market Research for EC – Observing Customers • transaction log A record of user activities at a company’s Web site • clickstream behavior Customer movements on the Internet • Web bugs Tiny graphics files embedded in e-mail messages and in Websites that transmit information about users and theirmovements to a Web server • spyware Software that gathers user information over an Internetconnection without the user’s knowledge • clickstream data Data that occur inside the Web environment; theyprovide a trail of the user’s activities (the user’sclickstream behavior) in the Web site

Market Research for EC

-^ collaborative filtering^ A market research and personalization methodthat uses customer data to predict, based onformulas derived from behavioral sciences, whatother products or services a customer may enjoy;predictions can be extended to other customerswith similar profiles