* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download one-to-one marketing
Multi-level marketing wikipedia , lookup
Audience measurement wikipedia , lookup
Brand loyalty wikipedia , lookup
Aerial advertising wikipedia , lookup
Food marketing wikipedia , lookup
Darknet market wikipedia , lookup
Social media marketing wikipedia , lookup
Affiliate marketing wikipedia , lookup
Target audience wikipedia , lookup
Marketing communications wikipedia , lookup
Web analytics wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Bayesian inference in marketing wikipedia , lookup
Consumer behaviour wikipedia , lookup
Street marketing wikipedia , lookup
Product planning wikipedia , lookup
Ambush marketing wikipedia , lookup
Advertising management wikipedia , lookup
Multicultural marketing wikipedia , lookup
Marketing research wikipedia , lookup
Online shopping wikipedia , lookup
Viral marketing wikipedia , lookup
Digital marketing wikipedia , lookup
Advertising wikipedia , lookup
Ad blocking wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Green marketing wikipedia , lookup
Marketing channel wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Youth marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Target market wikipedia , lookup
Direct marketing wikipedia , lookup
Global marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Targeted advertising wikipedia , lookup
Customer engagement wikipedia , lookup
Sensory branding wikipedia , lookup
Chapter 4 Consumer Behavior, Market Research, and Advertisement Outline • Learning about Consumer Behavior Online • • • • • • The Consumer Decision-Making Process One-to-one Marketing, Loyalty, and Trust in EC Market Research in EC Web Advertising Advertising Methods Advertising Strategies and Promotions Online ITEC5611 S. Kungpisdan 2 Roadmap • Learning about Consumer Behavior Online • • • • • • The Consumer Decision-Making Process One-to-one Marketing, Loyalty, and Trust in EC Market Research in EC Web Advertising Advertising Methods Advertising Strategies and Promotions Online ITEC5611 S. Kungpisdan 3 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 ITEC5611 S. Kungpisdan 4 ITEC5611 S. Kungpisdan 5 Why not shop online? • • • • • • • • Shipping charge 51% Difficult to judge product quality 44% Can return products easily offline 32% Worry about credit card safety 24% Cannot ask questions 23% Take too long to download on screen 16% Delivery time 15% Enjoy off-line shopping 10% “The more experience people have with Internet shopping, the more likely they are to spend more money online” ITEC5611 S. Kungpisdan 6 Roadmap • Learning about Consumer Behavior Online • • • • • • The Consumer Decision-Making Process One-to-one Marketing, Loyalty, and Trust in EC Market Research in EC Web Advertising Advertising Methods Advertising Strategies and Promotions Online ITEC5611 S. Kungpisdan 7 The Consumer Decision-Making Process • Roles people play in the decision-making process: – – – – – ITEC5611 Initiator Influencer Decider Buyer User S. Kungpisdan 8 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 ITEC5611 S. Kungpisdan 9 (Customer Decision Support System) (What to buy, from whom to buy) (Develop selection criteria) (Repurchase) ITEC5611 S. Kungpisdan 10 Roadmap • Learning about Consumer Behavior Online • • • • • • The Consumer Decision-Making Process One-to-one Marketing, Loyalty, and Trust in EC Market Research in EC Web Advertising Advertising Methods Advertising Strategies and Promotions Online ITEC5611 S. Kungpisdan 11 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 ITEC5611 S. Kungpisdan 12 Exhibit 4.3 The New Marketing Model ITEC5611 S. Kungpisdan 13 One-to-One Marketing, Loyalty, and Trust in EC • 4 key issues related to one-to-one marketing: – – – – ITEC5611 Personalization Collaborative marketing Customer loyalty trust S. Kungpisdan 14 One-to-One Marketing, Loyalty, and Trust in EC personalization The matching of services, products, and advertising content with individual consumers • Based on what companies know about users (user profiles) user profile The requirements, preferences, behaviors, and demographic traits of a particular customer ITEC5611 S. Kungpisdan 15 One-to-One Marketing, Loyalty, and Trust in EC Strategies to compile user profiles: • Information directly from users • Observe what people are doing online 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 • Build from previous purchase patterns • Perform market research • Make inferences (by collaborative filtering) ITEC5611 S. Kungpisdan 16 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 • Ask series of yes/no or multiple-choice questions – Content-based filtering • Ask users to specify certain favorite products – Activity-based filtering • Watching the user’s activities on the web ITEC5611 S. Kungpisdan 17 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 – Success factors are customer acquisition and retention ITEC5611 S. Kungpisdan 18 One-to-One Marketing, Loyalty, and Trust in EC • Benefits of Loyalty: cost savings – – – – ITEC5611 Lower marketing costs Lower customer turnover expenses Lower failure costs e.g. warranty claims Etc. S. Kungpisdan 19 One-to-One Marketing, Loyalty, and Trust in EC • Satisfaction in EC – Satisfaction is one of the most important consumer reactions in the B2C online environment – Recent statistics show: • 80% of highly satisfied online consumers would shop again within 2 months • 90% would recommend the Internet retailers to others • However, 87% of dissatisfied consumers would permanently leave their Internet retailers without any complaints ITEC5611 S. Kungpisdan 20 feeling ITEC5611 S. Kungpisdan 21 One-to-One Marketing, Loyalty, and Trust in EC trust The psychological status of involved parties who are willing to pursue further interaction to achieve a planned goal • How to Increase Trust in EC – Trust between buyers and sellers – Brand recognition – EC security mechanisms can help solidify trust • TRUSTe, BBBOnLine • PayPal or other well-known payment system ITEC5611 S. Kungpisdan 22 Trust factors ITEC5611 S. Kungpisdan 23 Roadmap • Learning about Consumer Behavior Online • • • • • • The Consumer Decision-Making Process One-to-one Marketing, Loyalty, and Trust in EC Market Research in EC Web Advertising Advertising Methods Advertising Strategies and Promotions Online ITEC5611 S. Kungpisdan 24 Market Research for EC • The Goal of Market Research To find information and knowledge that describes the relationships among consumers, products, marketing methods, and marketers • In order to discover marketing opportunities and issues, to establish marketing plans, to better understand the purchasing process, and to evaluate marketing performance – General Research methods • Quantitative vs focus groups ITEC5611 S. Kungpisdan 25 Market Research for EC market segmentation The process of dividing a consumer market into logical groups for conducting marketing research, advertising, and sales ITEC5611 S. Kungpisdan 26 Market Research for EC • Online Market Research Methods – Implementing Web-based surveys • Supersurvey.com, websurveyor.com • Problems in quality of collected data, lack of research experience, people are not willing to answer questions – Online focus groups • Npd.com, greenfieldonline.com – Hearing directly from customers – Tracking customer movements • Transaction logs: a record of user activities at a company’s Web site • clickstream behavior: customer movements on the Internet ITEC5611 S. Kungpisdan 27 Market Research for EC • Online Market Research Methods – Cookies, Spyware spyware Software that gathers user information over an Internet connection without the user’s knowledge “…may include software that occasionally notifies users of important news” ITEC5611 S. Kungpisdan 28 Market Research for EC • Online Market Research Methods – Analysis of B2C Clickstream Data clickstream data Data that occur inside the Web environment; they provide a trail of the user’s activities (the user’s clickstream behavior) in the Web site ITEC5611 What goods the customer has looked at What goods the customer has purchased What goods the customer examined but did not purchase What items the customer bought in conjunction with other items Which ads generate a lot of attention but few sales Which ads and promotions were effective and which were not, etc. S. Kungpisdan 29 Webtrends.com ITEC5611 S. Kungpisdan 30 ITEC5611 S. Kungpisdan 31 Market Research for EC • Limitations of Online Market Research – Too much data may be available – To use data properly, it should be organized, edited, condensed, and summarized – The solution to this problem is to automate the process by using data warehousing and data mining – Some of the limitations of online research methods are: • Accuracy of responses • Loss of respondents because of equipment problems • The ethics and legality of Web tracking • Lack of representativeness in samples of online users ITEC5611 S. Kungpisdan 32 Roadmap • Learning about Consumer Behavior Online • • • • • • The Consumer Decision-Making Process One-to-one Marketing, Loyalty, and Trust in EC Market Research in EC Web Advertising Advertising Methods Advertising Strategies and Promotions Online ITEC5611 S. Kungpisdan 33 Web Advertising • Direct marketing cost is high. E.g. $1 pp and response rate is 1-3% cost per responding person is $33$100 – Suitable for expensive products (cars, houses) interactive marketing Online direct marketing, enabled by the Internet, in which advertisers can interact directly with customers and consumers can interact with advertisers/vendors ITEC5611 S. Kungpisdan 34 Interactive Advertising ITEC5611 S. Kungpisdan 35 Web Advertising • Why Internet Advertising? – Television viewers are migrating to the Internet – Advertisers are limited in the amount of information they can gather about the television and print ads – Other reasons why Web advertising is growing rapidly: • • • • • • ITEC5611 Cost Richness of format Personalization Timeliness: fresh and up-to-the-minute Location-basis: accessible from anywhere, anytime Digital branding S. Kungpisdan 36 Web Advertising Online advertising agencies Specialized firms that offer customized Web advertising, such as brokering ads and targeting ads to select groups of consumers – Advertisingz.com, Premiumnetwork.com, epilot.com ITEC5611 S. Kungpisdan 37 ePilot.com • Top 3 pay-per-click website • Features – Cost-per-click advertising – Hugh search distribution: more than 300 partner search engines – Account management tools – Advertising consultant ITEC5611 S. Kungpisdan 38 ePilot.com ITEC5611 S. Kungpisdan 39 ePilot.com ITEC5611 S. Kungpisdan 40 Roadmap • Learning about Consumer Behavior Online • • • • • • The Consumer Decision-Making Process One-to-one Marketing, Loyalty, and Trust in EC Market Research in EC Web Advertising Advertising Methods Advertising Strategies and Promotions Online ITEC5611 S. Kungpisdan 41 Advertising Methods • Banners banner On a Web page, a graphic advertising display linked to the advertiser’s Web page keyword banners Banner ads that appear when a predetermined word is queried from a search engine random banners Banner ads that appear at random, not as the result of the user’s action ITEC5611 S. Kungpisdan 42 Advertising Methods • Benefits of Banner Ads – By clicking on them users are transferred to an advertiser’s site, and frequently directly to the shopping page of that site – The ability to customize them for individual surfers or a market segment of surfers – Viewing of banners is fairly high because “forced advertising” is used – Banners may include attention-grabbing multimedia ITEC5611 S. Kungpisdan 43 Advertising Methods • Limitations of Banner Ads – Cost – A limited amount of information can be placed on the banner – Viewers have become somewhat immune to banners and simply do not notice them as they once did ITEC5611 S. Kungpisdan 44 Advertising Methods banner swapping An agreement between two companies to each display the other’s banner ad on its Web site banner exchanges Markets in which companies can trade or exchange placement of banner ads on each other’s Web sites ITEC5611 S. Kungpisdan 45 Advertising Methods pop-up ad An ad that appears in a separate window before, during, or after Internet surfing or when reading email interstitial An initial Web page or a portion of it that is used to capture the user’s attention for a short time while other content is loading ITEC5611 S. Kungpisdan 46 Advertising Methods • E-Mail Advertising – E-Mail Advertising Management—Four guidelines that marketers should consider to leverage customer insights throughout the e-mail marketing campaign lifecycle: 1. Thinking about customer experience; 2. Making privacy protection a part of their brand promise; 3. Ensuring their recipients know about their privacy protection; and 4. Measuring impact. ITEC5611 S. Kungpisdan 47 Advertising Methods • Search Engine Advertisement—The major advantage of using URLs as an advertising tool is that it is free – Improving a company’s search-engine ranking (optimization) – Paid search-engine inclusion – See searchenginewatch.com for more details • • ITEC5611 Advertising in chat rooms Advertising in newsletters S. Kungpisdan 48 Advertising Methods advertorial An advertisement “disguised” to look like editorial content or general information ITEC5611 S. Kungpisdan 49 Roadmap • Learning about Consumer Behavior Online • • • • • • The Consumer Decision-Making Process One-to-one Marketing, Loyalty, and Trust in EC Market Research in EC Web Advertising Advertising Methods Advertising Strategies and Promotions Online ITEC5611 S. Kungpisdan 50 Advertising Strategies and Promotions Online associated ad display (text links) An advertising strategy that displays a banner ad related to a term entered in a search engine affiliate marketing A marketing arrangement by which an organization refers consumers to the selling company’s Web site viral marketing Word-of-mouth marketing by which customers promote a product or service by telling others about it Webcasting A free Internet news service that broadcasts personalized news and information, including seminars, in categories selected by the user ITEC5611 S. Kungpisdan 51 Questions? Next lecture: B2B E-Commerce