C ONSUMER B EHAVIOR O NLINE

T HE C USTOMER ’ S S TORY  A typical one-hour adventure in the life of a 25- year-old professional, 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.

T HE C USTOMER ’ S S TORY, 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 to his Twitter stream.  Justin is the new consumer: a multitasker attending to different media simultaneously.  How can a marketer capture dollars from these behaviors?

E XCHANGE O UTCOMES  There are 5 basic things that people do online:  Connect  Create  Enjoy  Learn  Trade  Each is ripe with marketing opportunity.

C ONNECT

C REATE

L EARN

T RADE

21 ST C ENTURY M ARKETING C HALLENGES  Twitter, Youtube, Facebook, Instagram, and on and on…  FRAGMENTATION!!  Attention  Demand

M ARKETING I MPLICATIONS  Fragmentation makes  reaching  keeping the attention of your customer ever harder.

W EB 2.0 C OMMUNICATION SHOWS TWO THINGS :  Consumers love to interrupt!  Consumers love to talk! => Give me some examples…

T HE Q UESTION IS :  Are you letting the customer in?

C HANGES YOUR R ELATIONSHIP hosting guests  From ‘selling to customers’ to hosting guests enabler  From ‘controller’ of communication (teller of stories) to enabler of communication (resource for stories told by others).  Heard about “meet me at Starbucks”?  starbucks/

I N S UM  Online marketers become listeners

B UT WHAT ELSE HAPPENS TO CONSUMERS ONLINE ?  Too many choices!  Information & cognitive overload!

H YPERCHOICE AND THE CHOICE PARADOX We think more choice is better, but there can be problems with excessive choice: 1. Ability to Choose 2. Satisfaction with Choice

T HE J AM E XPERIMENT Tasting booth for unusual jams in an upscale grocery story. A: offered 6 jams B: offered 24 jams What percentage of tasters later purchased one of the jams? A B Iyengar, S. & Lepper, M., 2000, When choice is demotivating: Can one desire too much of a good thing. Journal of Personality and Social Psychology, 79,

C HOICE AND SATISFACTION No choice can be bad. Excessive choice can also be bad. Limited choice may be best. Number of choices satisfaction

B REAKING APART THE CHOICE PARADOX E. Reutskaja & R. Hogarth, 2009, Satisfaction in Choice as a Function of the Number of Alternatives: When “Goods Satiate. Psychology and Marketing, 26(3),

S O, AGAIN … We like choice…

S O, AGAIN … We like choice…

B UT …

B UT

W HERE DOES THIS LEAVE THE E - MARKETER ( E. G. RETAILER, INFORMATION BROKER, ETC. ?  New Businesses and Business models  Search  Curating & subscriptions model (s- commerce)

E XERCISE  Fab.com  Birchbox.com  Mistobox.com  Quarterly.co Analyze what these sites do? What need(s) do they satisfy?

T HE W ORLD BECOMES C URATED

S UBSCRIPTION C OMMERCE AND C URATED C OMMERCE  Solving the BIG CONSUMER BEHAVIOR CONTRADICTION OF E-MARKETING:  Answer: CURATORS

S-C OMMERCE & C URATED E XPERIENCES  Curation: simplicity, convenience, personalization and discovery.  Since 2010 there has been a rise in the number of e-sites offering handpicked item selections, usually on a subscription model that combines convenience, curation and the pleasure of being surprised and taken care of.

S-C OMMERCE  Curate & subscribe e-commerce sites  cater to a wide range of consumers’ needs (tea lovers, foodies, fashionistas, new parents  Subscription fees range from the US$10,000 per year for a Net-a-Porter shoe-subscription to the US$39.95 USD for ShoeDazzle and the US$10 per month charged by Birchbox.

C ONSUMER BEHAVIOR : C ONCLUSION  Consumers become active  Consumer Attention becomes fragmented  Consumer Attention reaches limit  Leads to new value propositions  Curate & subscribe

E XERCISE :  Based on the benefits C&S offers, identify one additional C&S idea.