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E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost

E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost. Chapter 7: Consumer Behavior. Chapter 7 Objectives. After reading Chapter 7 you will be able to: Discuss general statistics about the Internet population.

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E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost

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  1. E-Marketing 4/EJudy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 7: Consumer Behavior 7-1

  2. Chapter 7 Objectives After reading Chapter 7 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. 7-2

  3. The Hanover Story • Hanover Direct’s 4 million customers buy through 12 different catalogs and Web sites. • 99% of telephone customers complete an order; only 2% of all online visitors buy during a visit. • Consumer research revealed several reasons for shopping cart abandonment: • Technical difficulties. • Consumer indecision at final check-out page. • By monitoring online behavior, Hanover has achieved 33% improvement. • Have you ever abandoned an online shopping cart? Why or why not? 7-3

  4. Consumer Behavior • P.173 汉诺威公司的故事 • P.177 如何理解宽带与市场机遇之间的关系？ • P.178 仔细描述网络经济时代的社会和文化环境。 • P.183 比较货币成本，时间成本，体力成本，心理成本。 • P.184 解释网站浏览中的“流畅状态”。 • P.186 举例说明4项基本活动（联系、娱乐、学习、交易）中所充满的商机 7-3

  5. Consumers in the 21st Century • The Internet has grown faster than any other medium in history. • In 2004, 958 million people had access, representing 16% of the global population. • Internet usage in developed nations has reached a critical mass, leading marketers to ask more questions about consumer behavior on the Internet. 7-4

  6. The Internet Exchange Process Technological, Social/Cultural and Legal Context Internet Exchange Outcomes Connect Enjoy Learn Trade Individual Characteristics Resources Marketing Stimuli • Exchange refers to the act of obtaining a desired object by offering something in return. • Exchange occurs within a technological, social/cultural, and legal context. 7-5

  7. Technological Context • 35% of online Americans connect to the Internet with a broadband connection. • Broadband has increased by 20% in the past 2 years. • The U.S. is only the 10th largest broadband market. • Broadband users exhibit different online behavior than those using mobile handheld devices or dial up. 7-6

  8. Top Broadband Country Markets 7-7

  9. Social and Cultural Contexts • Social/cultural trends have a huge effect on online exchanges. • Information overload overwhelms consumers. • Time poverty creates multitasking and contributes to a stressful environment. • Home and work boundaries are dissolving. • Consumers seek convenience and have high expectations regarding customer service. • Consumers cannot do without Internet access: “online oxygen.” 7-8

  10. Social and Cultural Contexts, cont. • Self-service is required. • Sophisticated consumers know they are in control and have choices. • Privacy and data security are paramount. • Online crime worries consumers. 7-9

  11. Legal Context • Legal factors were discussed in Chapter 5. • Despite piracy laws, illegally used software abounds. • In spite of the new Can-Spam law, the number of unsolicited emails has increased. • However, when the recording industry sued thousands of illegal music file downloaders, consumer behavior changed. • In 2002, 37% of online consumers shared music files. • Only 23% shared files in 2004. 7-10

  12. Individual Characteristics & Resources • Individual characteristics affect Internet use. • Age, income, education, ethnicity, and gender • Attitudes toward technology • Online skill and experience • Goal orientation • Convenience or price orientation • Family life cycle • Consumer resources for exchange • Money, time, energy and psychic costs 7-11

  13. Monetary Cost • The Internet exchange doesn’t use cash or paper checks for online transactions. • Many forms of digital money: • Credit and debit cards. • Electronic checks through a third-party such as PayPal. • Smart cards or Splash Plastic. • Other innovative forms are appearing in other countries. 7-12

  14. Time Cost • Online attention is a desirable and scarce commodity. • Worldwide, the average user goes online 29 times/month, 49 minutes each time. • Some researchers believe that consumers pay more focused attention online than with other media. • Hoffman and Novak applied the concept of flow to online behavior. 7-13

  15. Global Usage: 2002 to 2004 7-14

  16. Energy and Psychic Costs • It takes effort to log on and check email, especially for dial-up users. • Consumers apply psychic resources to understand information or when facing technical problems. • Shopping cart abandonment and failed online purchases have numerous causes. • Technical reasons. • The consumer may be “window shopping,” comparing several carts at once. 7-15

  17. Exchange Outcomes • There are 4 basic things that people do online: • Connect • Enjoy • Learn • Trade • Each is ripe with marketing opportunity. 7-16

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