INTERNET MARKETING : INTEGRATING ONLINE AND OFFLINE STRATEGIES Chapter 5 Understanding the Internet Consumer

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 3 Internet Consumer Behavior Challenge “Democratization” of Internet Active Involvement of Customers  Content on Demand, User-Created Content, and Much More Statistics Change Daily  Sources of Current Data Crucial

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 4 CONSUMER BEHAVIOR ON THE NET

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 5 CONSUMER SATISFACTION AND LOYALTY THE ACSI MODEL Figure 5-4

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 6 THE DIGITAL DIVIDE IS CLOSING Difference in Quality of Access Remains

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 7 SOME OF THE BEST DATA SOURCES

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 8 ALSO A CONTENT AGGREGATOR

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 9 ACQUIRED INT’L SITES, BUT... Stats not reliably updated

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 10 DETAILED, UPDATED DATA

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 11 FREE WEBSITE DATA

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 12 Capturing and Using Online Data

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 13 MODEL OF ONLINE DATA FLOWS

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 14 TWO SOURCES OF DATA Conventional Marketing Research Online Data Capture  Third-Party Data (Mostly Purchased)  Captured On Site/From Marketing Programs What is the Role/Importance of Each?

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 15 MARKETING RESEARCH ON WEB Both Qualitative and Quantitative Faster Cheaper Quality Equivalent  Often Need to Include Non-Internet Users  Ensure that Respondent is Sample Member

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 16 POLLS AND SURVEYS

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 17 POLLS AND SURVEYS

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 18 PANELS ARE IMPORTANT Many Members Researchers Can Draw Specialized Samples Managed Online Can Collect Longitudinal Data

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 19 AN ONLINE PANEL

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 20 ONLINE DATA CAPTURE From Third Party Suppliers  Pew Internet and American Life Project and Nielsen//NetRatings - Two Examples Data Captured On Website  Site Usage Data  Customer Transactions Data

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 21 SITE USAGE DATA Enewsletter drop

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 22 OTHER DATABASE BUILDING

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 23 THE eBAY COMMUNITY Monitoring User Communications/Feedback Figure 5-7

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 24 COMPLEX PRODUCT DEVELOPMENT RESEARCH

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 25 COMPLEX PRODUCT DEVELOPMENT RESEARCH – AN EXAMPLE

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 26 TECHNIQUE PREDICTS MARKET SHARE

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 27 DATABASE IS HUB TRANSACTIONAL DATA MARKETING RESEARCH DATA FIRST To Understand Reasons Why DATABASE IS REPOSITORY FOR ALL

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 28 SUMMARY Internet Consumer Behavior Needs to be Understood in its Interactive Context Much Valuable External Secondary Data  Timely; Much is Free  Only Way to Keep Up with Change Traditional Marketing Research Moving Quickly Onto the Web Transactions and Customer Communications Data Build Customer Databases Creative Use of Interactive Data Collection Will Drive More Developments Important to Marketers