E-MARKETINGWEEK 2

Internet User Characteristics and Behaviour

OBJECTIVESDiscuss 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.

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THE CUSTOMER’S STORY

A typical one-hour adventure in the life of a 25-year-old professional, Justin:Listens to a podcast on his mobile phone while his TV is tuned to a soccer game and his PC is 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.

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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 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?

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CONSUMERS IN THE 21ST CENTURY

76% of U.S. consumers use the Internet. Less connected groups tend to be:OlderLess educatedIn ethnic minority groupsChildlessRural Lower income

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CONSUMERS IN THE 21ST CENTURY, CONT. In 2013, 39% of the global population had access to the Internet, roughly 2.7billion ppl out of 7.1billion ppl. Internet usage in developed nations has reached a critical mass, leading marketers to ask more questions about consumer behavior on the Internet.

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INTERNET REACHES MATURITY: 1995-2010

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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

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THE ONLINE EXCHANGE PROCESS

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TECHNOLOGICAL CONTEXT

70% of online Americans connect to the Internet at home with broadband. Broadband users enjoy more multimedia games, music, and entertainment than do those accessing from a mobile device or 56K modem. The typical U.S. home has 26 different electronic devices for media and communication.

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U.S. DAILY MEDIA USE

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SOCIAL AND CULTURAL CONTEXTS

The cornerstones for attracting customers online:ReputationRelevanceEngagement

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ENGAGING CUSTOMERS

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LEGAL CONTEXTDespite 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 illegal music file downloaders, consumer behavior changed.In 2002, 37% of online consumers shared music files.

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INDIVIDUAL CHARACTERISTICS & RESOURCES

Individual characteristics affect Internet use.Demographics such as age, income, education, ethnicity, and gender. Attitudes toward technology.Online skill and experience.Goal orientation.

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CONSUMER RESOURCES Consumers perceive value as benefits minus costs. These costs constitute a consumer’s resources for exchange:Monetary costTime costEnergy and psychic costs

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U.S. COMBINED HOME/WORK INTERNET USAGE

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EXCHANGE OUTCOMES

There are 5 basic things that people do online:ConnectCreateEnjoyLearnTradeEach is ripe with marketing opportunity.

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CONNECTING ONLINE IN THE U.S.

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CREATING & UPLOADING CONTENT IN THE U.S.

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ENTERTAINMENT ONLINE IN THE U.S.

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TOP 10 SEARCH TERMS FOR 2013

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From Google:1. Nelson Mandela2. Paul Walker3. iPhone 5S4. Cory Monteith5. Harlem Shake6. Boston Marathon7. Royal Baby8. Samsung Galaxy S49. PlayStation 410.North Korea

LEARNING AND GETTING INFORMATION

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TRADING ONLINE IN THE U.S.

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WHAT ABOUT SOUTH EAST ASIA?

7-27Malaysia, Indonesia, Philippines, Singapore

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