1. ELC 200 Introduction to E-commerce
DAY 21
Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

2. Day 21 Overview Questions? Assignment 5 OVERDue
Assignment 6 posted, Due November 20
Assignment 6.pdf
Quiz 3
2ND ½ of Chapter 5, Chapter 6, 7 & 8 (maybe 9 also)
November 20
Same format as before
Learning Tracks Content Area In BlackBoard
Finish Social, Mobile and Local marketing
Begin Ethical, Social, and Political Issues in E-Commerce

3. E-commerce 2017 business. technology. society.
13th edition
Chapter 7
Social, Mobile, and Local Marketing

4. Learning Objectives
7.1 Understand the difference between traditional online marketing and the new social- mobile-local marketing platforms and the relationships between social, mobile, and local marketing.
7.2 Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.
7.3 Identify the key elements of a mobile marketing campaign.
7.4 Understand the capabilities of location-based local marketing.
Slide 3 is a list of textbook LO numbers and statements.

5. Mobile Marketing
More than 262 million Americans use mobile phones (population is 326  80% penetration)
Devices used multiple times per day
By 2020, m-commerce will account for almost 50% of all retail and travel e-commerce
Challenges: Mobile search
Motivating consumers to click
Raising fees for each click

6. Figure 7.6: The Growth of M-Commerce
Figure 7.6, Page 460.
M-commerce in the retail and travel industries is expected to grow to over $438 billion by 2020, almost equal to the amount generated by desktop-based “traditional” e-commerce.
SOURCES: Based on data from eMarketer, Inc., 2016i, 2016j, 2016k, 2016l.

7. How People Actually Use Mobile Devices
Average of 3 hours daily on mobile devices
42% entertainment
16% social networks
70% occur in home
Activities are similar to desktop activities
Rapidly growing smartphone m-commerce sales
Mobile devices currently used more for communicating and entertainment over shopping and buying

8. Figure 7.7: How People Use Their Mobile Devices to Shop
Figure 7.7, page 461.
Tablets lead smartphones as an m-commerce shopping and buying platform, but this difference may disappear over time as better tools are developed for smartphones.
SOURCE: Based on data from eMarketer, Inc., 2015b.

9. In-App Experiences and Ads
Mobile use
Apps—60% of smartphone time
Almost 75% of app time spent on user’s top 3 apps
Users use about 27 different apps/month
App marketing
Most effective are in-app ads
Placed in most popular apps
Targeted to immediate activities and interests

10. How the Multi-Screen Environment Changes the Marketing Funnel
Consumers becoming multi-platform
Desktops, smartphones, tablets, TV
90% of multi-device users use multiple devices to complete action
View ad on TV, search on smartphone, purchase on tablet
Marketing implications
Consistent branding
Responsive design
Increased complexity, costs

11. Mobile Marketing Features
Mobile marketing 64% of all online marketing
Dominant players are Google, Facebook
Mobile device features
Personal communicator and organizer
Screen size and resolution
GPS location
Web browser
Apps
Ultraportable and personal
Multimedia capable
Touch/haptic technology

12. Figure 7.10: The Top U.S. Mobile Marketing Firms by U.S. Revenue
Figure 7.10, Page 466.
Mobile advertising is still dominated by Google and its search engine, but Facebook has gained significant market share in the last four years.
SOURCE: Based on data from eMarketer, Inc., 2016r.

13. Mobile Marketing Tools: Ad Formats
Mobile marketing formats
Search ads
Display ads
Video
Text/video messaging
Other: , classifieds, lead generation
Mobile interface versions of social network techniques

14. Figure 7.11: Mobile Ad Spending by Format
Figure 7.11, page 467.
Search engine advertising is the most popular mobile marketing format.
SOURCE: Based on data from eMarketer, Inc., 2016s.

15. Insight on Business: Mobile Marketing: Ford Goes 3-D
Class discussion:
Why do mobile devices represent such a promising opportunity for marketers?
What are the benefits and the appeal of 3-D mobile advertising?
Have you ever engaged with 3-D mobile ads?
What types of products are best suited for 3-D ads?

16. Mobile Marketing Campaigns
Mobile website (HTML5)
Facebook and Twitter brand pages
Mobile versions of display advertising campaigns
Ad networks Apples iAd or Google AdMob
Interactive content aimed at mobile user
Tools for measuring responses
Key dimensions follow desktop and social marketing metrics

17. Figure 7.12: Measuring the Effectiveness of a Mobile Marketing Campaign
Figure 7.12, page 472.
The effectiveness of a branding campaign utilizing the mobile platform and social marketing can be measured by examining the number of Likes, posts, page views, time on site, and unique visitors.

18. Local and Location-Based Marketing
Targets messages to users based on location
Marketing of location-based services
Location-based services
Provide services to users based on location
Personal navigation
Point-of-interest lists
Reviews
Friend-finders, family trackers
Consumers have high likelihood of responding to local ads

19. The Growth of Local and Location-Based Mobile Marketing
Prior to 2005, nearly all local advertising was non- digital
Google Maps (2005)
Enabled targeting ads to users based on IP address and general geographic location
Smartphones, Google’s mobile maps app (2007)
Enabled targeting ads based on GPS
Location-based mobile marketing
Expected to triple over next five years

20. Figure 7.13: Local, Mobile, and Location-Based Mobile Marketing
Figure 7.13, Page 474.
Local online marketing will account for $45 billion in marketing expenditures in 2016, with location-based mobile expected to account for $12.8 billion of that amount.
SOURCES: Based on data from eMarketer, Inc., 2016b, 2016c, 2016e.

21. Location-Based Marketing Platforms
Google
Android OS, Google Maps, Google Places, AdMob, AdWords
Facebook
Apple
iOS, iAd
Twitter
Others: YP, Pandora, Millenial Media

22. Location-Based Mobile Marketing Technologies
Two types of location-based marketing techniques
Geo-aware techniques
Identify location of user’s device and target ads, recommending actions within reach
Proximity marketing
Identify a perimeter around a location and target ads and recommendations within that perimeter
Identifying locations
GPS signals
Cell-tower locations
Wi-Fi locations (IP address)

23. Why Is Local Mobile Attractive to Marketers?
Mobile users more active, ready to purchase than desktop users
Over 80% of U.S. smartphone users use mobile devices to search for local products, services
50% visit a store within 1 day of local search
18% make a purchase

26. Location-Based Marketing Tools
Geo-social-based services marketing – FourSquare Swarm
Location-based services marketing
Mobile-local social network marketing
Proximity marketing
In-store messaging
Location-based app messaging

27. Location-Based Marketing Campaigns
Location-based considerations
Action-based, time-restrained offers and opportunities
Target demographic and location-aware mobile user demographics
Strategic analysis of marketspaces
Measuring marketing results Table 7.17
Same measures as mobile and web marketing
Metrics for unique characteristics
Inquire
Reserve
Click-to-call
Friend
Purchase

28. E-commerce 2017 business. technology. society.
13th edition
Chapter 8
Ethical, Social, and Political Issues in E-commerce

29. Learning Objectives
8.1 Understand why e-commerce raises ethical, social, and political issues.
8.2 Understand basic concepts related to privacy and information rights, the practices of e-commerce companies that threaten privacy, and the different methods that can be used to protect online privacy.
8.3 Understand the various forms of intellectual property and the challenges involved in protecting it.
8.4 Understand how the Internet is governed and why taxation of e-commerce raises governance and jurisdiction issues.
8.5 Identify major public safety and welfare issues raised by e-commerce.
Slide 3 is a list of textbook LO numbers and statements.

30. The Right to Be Forgotten: Europe Leads on Internet Privacy
Class Discussion
Is Google responsible for the accuracy of links to other information? Why or why not?
Why do European and American views on privacy protection differ so dramatically?
a-privacy-policy-us-europe.html
How can the different perspectives on privacy be managed in a global environment like the Internet?
GDPR is coming

31. Understanding Ethical, Social, and Political Issues in E-commerce
Internet, like other technologies, can:
Enable new crimes
Affect environment
Threaten social values
Costs and benefits must be carefully considered, especially when there are no clear-cut legal or cultural guidelines
See table 8-1 , all the if 8 features that makes eCommerce great for business has implications

32. A Model for Organizing the Issues
Issues raised by Internet and e-commerce can be viewed at individual, social, and political levels
Four major categories of issues:
Information rights
Property rights (intellectual property)
Governance (jurisdiction)
Public safety and welfare

33. Figure 8.1: The Moral Dimensions of an Internet Society
Figure 8.1, Page 500.
The introduction of the Internet and e-commerce impacts individuals, societies, and political institutions. These impacts can be classified into four moral dimensions: property rights, information rights, governance, and public safety and welfare.

34. Basic Ethical Concepts
Ethics
Study of principles used to determine right and wrong courses of action
Responsibility
Accountability
Liability
Laws permitting individuals to recover damages
Due process
Laws are known, understood
Ability to appeal to higher authorities to ensure laws applied correctly

35. Analyzing Ethical Dilemmas
Process for analyzing ethical dilemmas:
Identify and clearly describe the facts
Define the conflict or dilemma and identify the higher-order values involved
Identify the stakeholders
Identify the options that you can reasonably take
Identify the potential consequences of your options

36. Candidate Ethical Principles (page 504)
Golden Rule
Universalism
Slippery Slope
Collective Utilitarian Principle
Risk Aversion
No Free Lunch
The New York Times Test
The Social Contract Rule

37. Privacy and Information Rights
Moral right of individuals to be left alone, free from surveillance or interference from other individuals, organizations, or state
Information privacy: Four premises
Right to control information collected about them
“Right to be forgotten”
Right to know when information is collected and give consent
“Informed consent”
Right to personal information due process
Right to have personal information stored in a secure manner

38. Table 8.2: The FTC’s Fair Information Practice Principles
DESCRIPTION
Notice/Awareness (core principle)
Sites must disclose their information practices before collecting data. Includes identification of collector, uses of data, other recipients of data, nature of collection (active/inactive), voluntary or required, consequences of refusal, and steps taken to protect confidentiality, integrity, and quality of the data.
Choice/Consent (core principle)
There must be a choice regime in place allowing consumers to choose how their information will be used for secondary purposes other than supporting the transaction, including internal use and transfer to third parties. Opt-in/opt-out must be available.
Access/Participation
Consumers should be able to review and contest the accuracy and completeness of data collected about them in a timely, inexpensive process.
Security
Data collectors must take reasonable steps to assure that consumer information is accurate and secure from unauthorized use.
Enforcement
There must be a mechanism to enforce FIP principles in place. This can involve self-regulation, legislation giving consumers legal remedies for violations, or federal statutes and regulation.

39. Privacy in the Public Sector: Privacy Rights of Citizens
Public sector privacy rights have long history
First Amendment  freedom 0f speech
Fourth Amendment  protection from unreasonable search and seizure
Fourteenth Amendment  No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any state deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.
Constitutional, implied privacy rights did not cover collection and use of personal information
1974 Privacy Act (for federal agencies)
Federal and state law to protect individuals against unreasonable government intrusion
See tables 8.3 & 8.4

40. Privacy in the Private Sector: Privacy Rights of Consumers
Privacy issues rose with first large-scale, nationwide computerized systems
Credit card systems, credit rating agencies
Historically, few claims to privacy in public, open markets
Emergence of Internet has created enormous collections of personal data
Ideal environment for business and government to invade personal privacy of consumers
Google, Amazon, Netflix, etc.

41. Information Collected by Websites
Data collected includes
Personally identifiable information (PII)
Anonymous information
Types of data collected
Name, address, phone, , Social Security number
Bank and credit accounts, gender, age, occupation, education
Preference data, transaction data, clickstream data, browser type

42. Key Issues in Online Privacy of Consumers
Top concerns
Profiling and ad targeting
Social network privacy
Sharing of information by marketers
Mobile phone privacy
Of less concern
Monitoring employees
Sharing of health information
Surveillance to prevent terrorism

43. Marketing: Profiling, Behavioral Targeting, and Retargeting (1 of 2)
Creation of data images that characterize online individual and group behavior
Anonymous profiles
Personal profiles
Advertising networks
Track consumer and browsing behavior on Web
Dynamically adjust what user sees on screen
Build and refresh profiles of consumers
Google's AdWords program

44. Marketing: Profiling, Behavioral Targeting, and Retargeting (2 of 2)
Facial recognition tools
Business perspective:
Increases effectiveness of advertising, subsidizes content
Enables sensing of demand for new products
Critics' perspective:
Undermines expectation of anonymity and privacy
Enables price discrimination
The harm of false data

45. Social Networks and Privacy
Encourage sharing personal details
Pose unique challenge to maintaining privacy
Facebook
Facial recognition technology and tagging
Serving ads to users not on Facebook
Sharing information with third parties
Personal control over personal information vs. organization's desire to monetize social network

46. Mobile Devices: Location-Based Privacy Issues
Smartphone apps
Funnel personal information to mobile advertisers for targeting ads
Track and store user locations
Track users’ use of other apps
Twitter’s “Find Friends” feature
U.S. Supreme Court rules that police need warrant prior to searching a cell phone for information

47. Consumer Privacy Regulation: The FTC (1 of 2)
Fair Information Practice (FIP) principles
Informed consent: Opt-in and opt-out
Harm-based approach
“Do Not Track” mechanism
Recent emphasis is to give consumer rights regarding collected personal information

48. Consumer Privacy Regulation: The FTC (2 of 2)
FTC’s new privacy framework
Scope:
Applies to all commercial entities
Privacy by Design:
Companies should promote consumer privacy throughout the organization and at all stages in the development of products
Simplified Choice:
Companies should simplify consumer choice
Greater Transparency

49. Consumer Privacy Regulation: The Federal Communications Commission (FCC)
2015 classification of broadband Internet service providers as similar to public utility services and subject to FCC regulation
2016 FCC approved new privacy rules for ISPs
Must notify users of privacy options or obtain user consent to collect information
Service cannot be contingent on users surrendering privacy

50. Privacy Policies Website Terms of Use Notices
Recent study showed these polices would take average reader 8 hours to read
Have conflicting statements
Little oversight and comparison between policies of different companies

51. The European Data Protection Directive
European privacy protection much stronger than in United States
1998 European Commission's Directive on Data Protection (1998)
Safe harbor
2015 E.U. General Data Protection Regulation (GDPR)
Privacy Shield
Privacy environment has turned against U.S. firms like Facebook and unfettered collection and use of personal data

52. Industry Self-Regulation
Online Privacy Alliance (OPA)
Privacy seal programs like TRUSTe
Network Advertising Initiative (NAI)
Ad Choices Program
In general, self-regulation has not succeeded in reducing American fears of privacy invasion or reducing the level of privacy invasion

53. Technology Solutions Solutions include
Spyware blockers
Pop-up blockers and ad blockers
Secure , anonymous r ers
Cookie managers
Disk/file erasing programs
Public key encryption
None address core issues of consumer privacy
What information is collected and how it is used
Consumer rights

54. Privacy Protection Privacy protection as a business
Privacy advocacy groups
Limitations on the right to privacy
Edward Snowden & NSA Prism program
Law enforcement and surveillance
USA Freedom Act
Apple’s iPhone 6 and encryption
Use of personal data by government agencies

55. Insight on Technology: Apple: Defender of Privacy?
Class Discussion
Are there circumstances that warrant the invasion of personal digital information and property?
Do you think the All Writs Act of 1789 should be applicable to today’s technology-driven privacy issues?
Should citizens charged with a crime or convicted criminals have any rights to privacy?
How does Apple’s view on privacy differ from those of Facebook’s and Google’s?

56. Intellectual Property Rights
All tangible and intangible products of human mind
Major ethical issue:
How should we treat property that belongs to others?
Major social issue:
Is there continued value in protecting intellectual property in the Internet age?
Major political issue:
How can Internet and e-commerce be regulated or governed to protect intellectual property?

57. Intellectual Property Protection
Three main types of protection:
Copyright
Patent
Trademark law
Goal of intellectual property law:
Balance two competing interests—public and private
Maintaining this balance of interests is always challenged by the invention of new technologies

58. Copyright
Protects original forms of expression (not ideas) from being copied by others for a period of time
“Look and feel” copyright infringement lawsuits
Fair use doctrine
Digital Millennium Copyright Act of 1998
First major effort to adjust copyright laws to Internet age
Implements WIPO treaty that makes it illegal to make, distribute, or use devices that circumvent technology-based protections of copyrighted materials
Safe-harbor provisions

59. Patents Grant owner 20-year monopoly on ideas behind an invention
Invention must be new, non-obvious, novel
Encourages inventors
Promotes dissemination of new techniques through licensing
Stifles competition by raising barriers to entry
Apple vs. Samsung patent wars

60. E-commerce Patents
1998 State Street Bank & Trust vs. Signature Financial Group
Business method patents
2014 Alice Corporation:
Supreme Court rules that software does not make a basic business method or abstract idea patentable
E-commerce patents
Amazon: One-click purchasing
Akamai: Internet content delivery global hosting system

61. Trademarks Identify, distinguish goods, and indicate their source
Purpose
Ensure consumer gets what is paid for/expected to receive
Protect owner against piracy and misappropriation
Infringement
Dilution
Federal Trademark Dilution Act and Trademark Dilution Revision Act
Uniform Rapid Suspension System (URS)

62. Trademarks and the Internet
Cybersquatting and brand-jacking
Anticybersquatting Consumer Protection Act (ACPA)
Cyberpiracy
Typosquatting
Metatagging
Keywording
Linking and deep linking
Framing

63. Trade Secrets
Business procedures, formulas, methods of manufacture and service delivery
May not be unique or novel
Trade secrets are
(a) secret
(b) have commercial value to owner
(c) owner has taken steps to protect
2016 Defend Trade Secrets Act

64. Who Governs the Internet and E-commerce?
Mixed mode environment
Self-regulation, through variety of Internet policy and technical bodies, co-exists with limited government regulation
ICANN : Domain Name System
Internet can be easily controlled, monitored, and regulated from a central location

65. Taxation
Non-local nature of Internet commerce complicates governance and jurisdiction issues
Sales taxes
Governments in Europe and U.S. rely on sales taxes
MOTO retailing tax subsidies
E-commerce tax subsidy
Internet Tax Freedom Act

66. Insight on Business: Internet Sales Tax Battle
Class discussion:
Given the nature of the Internet, should sales tax be based on the location of the consumer rather than the seller?
What are the different approaches Amazon has taken with respect to sales taxes?
Are bricks-and-clicks retailers disadvantaged by local sales tax laws?

67. Net Neutrality
All Internet activities charged the same rate, regardless of bandwidth used
Netflix and YouTube together consume about 50% of bandwidth in United States
Prior to 2015, ISPs could throttle high-volume users
February 2015, FCC ruled that broadband service providers should be viewed and regulated as public utilities
Large carriers preparing challenges to ruling

68. Public Safety and Welfare
Protection of children against pornography and privacy infringement
Passing legislation that will survive court challenges has proved difficult
Efforts to control gambling and restrict sales of drugs and cigarettes
Prevent All Cigarette Trafficking Act
Unlawful Internet Gambling Enforcement Act
Increase in number of states allowing online gambling

69. Insight on Society: The Internet Drug Bazaar
Class discussion:
What's wrong with buying prescription drugs online, especially if the prices are lower?
What are the risks and benefits of online pharmacies?
Should online pharmacies require a physician's prescription?
How do online pharmacies challenge the traditional business model of pharmacies and drug firms?
What are the challenges in regulating online pharmacies?
Who benefits and who loses from online pharmacies?