Post on 19-Dec-2015
Copyright © 2004 Pearson Education, Inc. Slide 7-1
E-commerce
Kenneth C. Laudon
Carol Guercio Traver
business. technology. society.Second Edition
Copyright © 2004 Pearson Education, Inc. Slide 7-2
Chapter 7
E-commerce Marketing Concepts
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Changing Demographic Differences in Internet AccessTable 7.3, Page 363
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Online ShoppersFigure 7.5, Page 375
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What Consumers Buy on the Web – Small Ticket Items (December 2002)Figure 7.6,
Page 377
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What Consumers Buy on the Web – Big Ticket Items (December 2002) (cont’d)Figure 7.6, Page 377
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Intentional Acts: How Shoppers Find Vendors Online
Over 85% of shoppers find vendor sites by typing product or store/brand name into search engine or going directly to the site
Most (55%) online shoppers plan to purchase product within a week, either online or at a store
Most online shoppers (83%) have a specific item in mind
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Shoppers’ Intention to PurchaseFigure 7.7, Page 378
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Most Online Shoppers Are Focused BrowsersFigure 7.8, Page 378
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Why More People Don’t Shop Online
There are a number of actions e-commerce vendors could take to increase the likelihood that shoppers and non-shoppers would purchase online more frequently, including:
Better prices Making comparison shopping easier Making it easier to return merchandise Providing better security for credit card and/or
personal information
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Factors That Would Encourage More Online PurchasingTable 7.6, Page 380
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Trust, Utility, and Opportunism in Online Markets
Trust and utility among the most important factors shaping decision to purchase online
Consumers are looking for utility (better prices, convenience)
Asymmetry of information can lead to opportunistic behavior by sellers
Consumers also need to trust merchants before willing to purchase
Sellers can develop trust by building strong reputations for honesty, fairness, delivery
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Web Transaction Logs Built into Web server software Records user activity at a Web site WebTrends a leading log analysis tool Can provide treasure trove of marketing
information, particularly when combined with: Registration forms – used to gather
personal data Shopping cart database – captures all item
selection, purchase and payment data
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Four Seconds from the Web Transaction Log of Azimuth-Interactive.comFigure 7.11, Page 391
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Marketing Uses of Data from Web Transaction LogsTable 7.8, Page 392
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Cookies Cookies: small text file that Web sites place
on a visitor’s client computer every time they visit, and during the visit as specific pages are accessed.
Cookies provide Web marketers with a very quick means of identifying the customer and understanding his or her prior behavior
Location of cookie files on computer depends on browser version
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A Typical Netscape Cookie FileFigure 7.12,
Page 393
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Web Bugs
Tiny (1 pixel) graphic files embedded in e-mail messages and on Web sites
Used to automatically transmit information about the user and the page being viewed to a monitoring server