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Lecture 9 E-Marketing

Lecture 9 E-Marketing. Consumer Behavior Online Instructor: Hanniya Abid Assistant Professor COMSATS Institute of Information Technology. Objectives. After this lecture, you will be able to: Discuss general statistics about the Internet population.

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Lecture 9 E-Marketing

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  1. Lecture 9E-Marketing Consumer Behavior Online Instructor: HanniyaAbid Assistant Professor COMSATS Institute of Information Technology

  2. Objectives • After this lecture, you will be able to: • Discuss general statistics about the Internet population. • Describe the Internet exchange process and the technological, social/cultural and legalcontext in which consumers participate in this process. • Outline the broad individual characteristics and consumer resources that consumers bring to the online exchange. • Highlight the four main categories of outcomes that consumers seek from online exchanges.

  3. The Customer’s Story • A typical one-hour adventure in the life of a 25-year-old professional: • Tunes his iPod to the latest Diggnation podcast while his TV is tuned to a soccer game and his cell phone and PC are within reach. • Picks up his computer to find a blog mentioned during the podcast, sees a video on the blog and texts a friend about the video.

  4. The Customer’s Story, cont. • He searches for the video title on Google and finds a job posting on Vimeo, an online video-posting site. • He posts a link to the video and Vimeo site to his Twitter stream. • He is the new consumer: a multitasker attending to different media simultaneously. • How can a marketer capture dollars from these behaviors?

  5. Consumers in the 21st Century • Many consumers use the Internet. • Less connected groups tend to be: • Older • Less educated • In ethnic minority groups • Childless • Rural • Lower income

  6. Consumers in the 21st Century, cont. • Global population has internet access. • Top ten countries account for 38% of all users and adoption rates range from 7-77%. • Internet usage in developed nations has reached a critical mass, leading marketers to ask more questions about consumer behavior on the Internet.

  7. Internet Reaches Maturity: 1995-2010

  8. The Internet Exchange Process • Exchange is a basic marketing concept. • It refers to the act of obtaining a desired object by offering something in return. • Exchange occurs within the following contexts: • Technological • Social/cultural • Legal

  9. The Online Exchange Process

  10. Technological Context • More users connect to the Internet at home with broadband. • Broadband users enjoy more multimedia games, music, and entertainment than do those accessing from a mobile device or 56K modem. • The typical home has many different electronic devices for media and communication.

  11. Social and Cultural Contexts • The cornerstones for attracting customers online: • Reputation • Relevance • Engagement

  12. Engaging Customers

  13. U.S. Daily Media Use

  14. Legal Context • Despite piracy laws, illegally used software abounds. • In spite of the Can-Spam law, the number of unsolicited emails has increased. • However, when the recording industry sued illegal music file downloaders, consumer behavior changed. • In 2002, 37% of online consumers shared music files. • Only 23% shared files in 2004.

  15. The Online Exchange Process

  16. Individual Characteristics & Resources • Individual characteristics affect Internet use. • Demographics such as age, income, education, ethnicity, and gender. • Attitudes toward technology. • Online skill and experience. • Goal orientation.

  17. Consumer Resources • Consumers perceive value as benefits minus costs. • These costs constitute a consumer’s resources for exchange: • Monetary cost • Time cost • Energy and psychic costs

  18. Combined Home/Work internet usage

  19. The Online Exchange Process

  20. Exchange Outcomes • There are 5 basic things that people do online: • Connect • Create • Enjoy • Learn • Trade • Each is ripe with marketing opportunity.

  21. Connecting Online

  22. Creating & Uploading Content

  23. Entertainment Online

  24. Learning and Getting Information

  25. Trading Online

  26. Summary • Internet and mobile communication has grown quickly than any other medium in history. • Basic marketing concept of exchange applies. • Cornerstones are: Reputation, Relevance & Engagement • Costs that consumers exchange: money, time, energy and psychic costs.

  27. And of course! There is one more thing • Visit an online classified ads website such as olx.com.pk • And then examine classified ads in your local newspaper • What differences do you see? • What are some benefits to customers fromeach option?

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