E-Marketing 5/E Judy Strauss and Raymond Frost Chapter 7: Consumer Behavior Online ©2009 Pearson Education, Inc. Publishing as Prentice Hall

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 legal context 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. ©2009 Pearson Education, Inc. Publishing as Prentice Hall

The Customer’s Story A typical one-hour adventure in the life of a 25-year- old professional male, Justin: 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. ©2009 Pearson Education, Inc. Publishing as Prentice Hall

The Customer’s Story, cont. Justin 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 on his Twitter stream. Justin is the new consumer: a multitasker interested in the social media. How can a marketer capture dollars from these behaviors? ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Consumers in the 21st Century 71% of U.S. consumers use the internet; the other 29% can be characterized as: Net evaders（逃避者） Net dropouts（放弃） Truly unconnected Intermittent（间歇性） users ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Consumers in the 21st Century, cont. In 2007, 1.4 billion people had access to the internet, 19% of the global population. Ten countries account for 53% of all global users and adoption rates range from 69-88%. Internet usage in developed nations has reached a critical mass, leading marketers to ask more questions about consumer behavior on the internet. ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Internet Reaches Maturity: 1996-2008 Exhibit 7.1 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

World Internet population

China Internet population  China is now home to 632 million Internet users, up to June, 2014, according to the China Internet Network Information Centre (CNNIC). with 527 million mobile phone users; the number of users of services such as online games, banking and shopping continued to rise,  257 million people used social networking sites ; China already had more web users than any other country in the world. China Internet population

China Internet population

China Internet population

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 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

The Online Exchange Process Technological, Social/Cultural and Legal Context Individual Characteristics Resources Internet Exchange Outcomes Connect Enjoy Learn Trade Marketing Stimuli ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Technological Context 50% of online Americans connect to the internet at home with a broadband connection. Broadband users enjoy more multimedia games, music, and entertainment than do those accessing from a mobile device or 56K (dial-up) modem. The typical U.S. home has 26 different electronic devices for media and communication. Consumers spend an average of 1.5 hours online daily. ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Technological Context Internet, Mobile Internet, Internet of Things, Internet of Everything

Media Use on an Average Day Exhibit 7.3 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Social and Cultural Contexts One of the most important social trends is that consumers trust each other more than they trust advertising or companies online. Social/cultural trends have a huge effect on online exchanges. Sophisticated consumers. Information overload overwhelms consumers. Multitasking speeds up normal processes and lowers attention to each task. ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Social and Cultural Contexts, cont. Home and work boundaries are dissolving. Consumers seek convenience and have high expectations regarding customer service. Consumers cannot do without internet access: “online oxygen.” Self-service is required. Privacy and data security are paramount. Online crime worries consumers. ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Social Media

Internet Culture Cyberculture or computer culture is the study of various social phenomena associated with the Internet and other new forms of the network communication, such as online communities, online multi-player gaming, wearable computing, social gaming, social media, mobile apps, augmented reality, and texting, and includes issues related to identity, privacy, and network formation. Cyberculture can be generally defined as the set of technologies (material and intellectual), practices, attitudes, modes of thought, and values that developed with cyberspace.

Internet Thinking 互联网思维，就是在（移动）互联网、大数据 、云计算等科技不断发展的背景下，对市场、 对用户、对产品、对企业价值链乃至对整个商 业生态的进行重新审视的思考方式。

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 thousands of illegal music file downloaders, consumer behavior changed. In 2002, 37% of online consumers shared music files. Only 23% shared files in 2004. Can-Spam law “CANSpam”Law(控制非自愿色情和促销攻击法案) ©2009 Pearson Education, Inc. Publishing as Prentice Hall

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. ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Consumer Resources Consumers perceive value as benefits minus costs. These costs constitute a consumer’s resources for exchange: Money Time Energy Psychic costs ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Monetary Cost The internet exchange doesn’t use cash or paper checks for online transactions. There are 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. In South Korea some mobile phones have chips that allow vending machine purchases by phone. ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Monetary Cost

Time Cost Online attention is a desirable and scarce commodity. Worldwide, the average user goes online 34 times/month, 69 minutes each time, visiting over 1,500 Web sites. 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. ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Time Cost

Global Internet Usage: Exhibit 7.6 7-19 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Energy and Psychic Costs It takes effort to log on and check e-mail, especially for dial-up users. Short text messaging (SMS) via cell phones and PDAs is becoming more popular. Consumers apply psychic resources to understand information or when facing technical problems. Shopping cart abandonment and failed online purchases have numerous causes. Technical reasons Marketing problems ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Exchange Outcomes There are 5 basic things that people do online: Connect Create Enjoy Learn Trade Each is ripe with marketing opportunity. ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Connecting Online in the U.S. Exhibit 7.7 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Creating and Uploading Content in the U.S. Exhibit 7.8 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Entertainment Online in the U.S. Exhibit 7.9 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Top 10 Search Terms for 2007 Exhibit 7.10 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Learning and Getting Information Exhibit 7.11 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Trading Online in the U.S. Exhibit 7.12 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

©2009 Pearson Education, Inc. Publishing as Prentice Hall