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Prentice Hall, 2002
Chapter 4 continue from 4.6
(modifications by J.Molka-Danielsen)
Internet Consumers, E-Service, and
Market Research
Prentice Hall, 20024
The VALS Segment Profiles
Self-OrientationPeople pursue and acquire products, services, amd experiences that provide satisfaction and give shape, substance, and character to their identities. They are motivated by one of three powerful self-orientations: principle, status, and action. Principle-oriented consumers are guided in their choices by abstract, idealized criteria, rather than by feelings, events, or desire for approval and opinions of others. Status-oriented consumers look for products and services that demonstrate the consumers' success to their peers. Action-oriented consumers are guided by a desire for social or physical activity, variety, and risk taking.
ResourcesResources refer to the full range of psychological, physical, demographic, and material means and capacities people have to draw upon. It encompasses education, income, self-confidence, health, eagerness to buy things, intelligence, and energy level. It is a continuum from minimal to abundant. Resources generally increase from adolescence through middle age but decrease with extreme age, depression, financial reverse, and physical or psychological impairment.
Prentice Hall, 200210
The VALS Segment ProfilesProduct Preferences
Actualizers -cultivated tastes, fine things, wide interests
Fulfilled -practical consumer, durability, functionality
Achievers -prestige products, qualityExperiencers -clothing, fast food,
entertainment, non-conformingBelievers -brand loyaltyStrivers -stylish, impulsive, easily
bored.Makers -practical, not impressed by
possessionsStrugglers -safety, security, careful
consumer
Prentice Hall, 200211
Delivering Customer Servicein Cyberspace
E-service—online help for online transactions
Foundation of service—responsible and effective order fulfillmentCustomer-centered services—order tracing, configuration, customization, security/trustValue-added services--dynamic brokering, online auctions, online training and education
Prentice Hall, 200212
Delivering Customer Servicein Cyberspace (cont.)
Product life cycle and customer servicePhases of product life cycle
Requirements: assisting the customer to determine needsAcquisition: helping the customer to acquire a product or serviceOwnership: supporting the customer on an ongoing basisRetirement: helping the client to dispose of a service or productService must be provided in all of them
Prentice Hall, 200213
Delivering Customer Servicein Cyberspace (cont.)
Customer relationship management (CRM)CRM in action—customer-focused EC
Make it easy for customers to do business onlineBusiness processes redesigned from customer’s point of viewDesign a comprehensive, evolving EC architectureFoster customer loyalty by:1. Personalized service2. Streamline business processes3. Own customer’s total experience… 7. methods.
Prentice Hall, 200214
Customer Relationship Management (CRM)
Customer service functionsProvide search and comparison capabilitiesProvide free products and servicesProvide specialized information and servicesAllow customers to order customized products and servicesEnable customers to track accounts or order status
Prentice Hall, 200215
Customer Relationship Management (CRM) (cont.)
Customer service toolsPersonalized Web pages (Transactive Content)FAQsTracking toolsChat rooms—discussE-mail and automated responseHelp desks and call centersTroubleshooting tools—assist
Prentice Hall, 200216
Customer Relationship Management (CRM) (cont.)
Justifying customer service and CRM programs—2 problems
Most of the benefits are intangibleSubstantial benefits reaped only from loyal customers, after several yearsMetrics—standards to determine appropriate level of customer support
Response and download timesUp-to-date site and availability of relevant contentOthers (8 Metrics mentioned)
Prentice Hall, 200217
Market Research for EC
Aim– find relationship between
ConsumersProductsMarketing methodsMarketers through information
In order to improve customer service
Discover marketing opportunities and issuesEstablish marketing plansBetter understand the purchasing processEvaluate marketing performance
Prentice Hall, 200218
Figure 4-6Market Research Process
Market segmentation—divide consumer market into groups to conduct marketing research, advertising, sales
Prentice Hall, 200219
Market Research for EC (methods)
Conducting online (web-based) market research— approaches:
Surveys (one-response, interactive, state use)Cookies (collect data without permission)Focus groups- identify differences in attributes, benefits, values of various markets.
Goal: understand the target market better.
Prentice Hall, 200220
Table 4-4Online Market Research Process & Results
Online market research methods—fast, cheap, data collection
Source: Based on Vassos (1996), pp. 66-68.
Prentice Hall, 200221
Market Segmentation
Market Segmentation – is dividing customers into logical groups for Marketing R&D, Advertising, and Sales.
Consumer-product relationship (Table 4-3)Segmentation can be cheaper than one-to-one marketing. (Show table).
Prentice Hall, 200222
Market Research for EC (cont.)
Online market research methods (cont.)Conducting Web-based surveysLimitations of online research
Not suitable for every customer or product Skewed toward highly educated males with high disposable income
May be unreliable, biasedMore knowledge is neededState other problems…..
Prentice Hall, 200223
Market Research for EC (cont.)
Datamining (cont.)Major characteristics and objectives of data mining: (historical data, clean, transformed)
Relevant data difficult to find in huge databasesTools help find information buried Can use “data drills” for easy access to answers, may find valuable, unexpected resultsTools combined with spreadsheets for easy analysis and presentation of resultsYields: associations, sequences, classifications, clusters, forecasting, predictions, discover patterns and relationships
Prentice Hall, 200224
Figure 4-7A Framework for Classifying EC Agents
The purchasing decision- making process: agent classification
Prentice Hall, 200225
Intelligent Agents in Customer-related Applications (cont.)
Need identification—helps determine what to buy to satisfy a specific need by looking for specific products information and critically evaluating them
Examples:Salesmountain.com—specifically requested items for individual customersDiscogs.com—sample and buy musicNetcactus.com—help choose giftsQuerybot.com/shopping—looks for deals and finds related information on requested items
Prentice Hall, 200226
Intelligent Agents in Customer-related Applications (cont.)
Product brokeringExample: Firefly
Used a collaborative filtering process that could be described as “word-of-mouth” to build the profileAsked a consumer to rate a number of productsMatched his ratings with the ratings of other consumersRelied on the ratings of other consumers with similar tastes, recommended products that he has not yet rated
Prentice Hall, 200227
Intelligent Agents in Customer-related Applications (cont.)
Merchant brokering—intelligent agents for finding vendors
Bargainfinder from Andersen Consulting (first product brokering agent—no longer exists)
Queried the price of a specific CD from a number of online vendors and returned a list of prices (unsuccessful)
Jango (embedded in excite program)Originates the requests from the user’s site instead of from Jango’s vendors have no way to determine whether the request is from a real customer or from the agentProvides product reviews
Prentice Hall, 200228
Intelligent Agents in Customer-related Applications (cont.)
Negotiation- price and other terms of transaction are determined. (Costly and time consuming.) Some examples (Tete-@-tete, are no longer used.)Purchase and delivery—arrange payment and delivery of goodsAfter sale service and evaluation—automatic answering agents respond to customer queries and remind them of maintenance needs
Prentice Hall, 200229
Intelligent Agents in Customer-related Applications (cont.)
Other EC agentsAuction support agentsFraud and detection protection agentsCharacter-based interactive (animated) agentsLearning agent
Prentice Hall, 200230
E-learning technology
Extempo's PeopleSkills™ Workshop enables organizations to train staff members in the soft skills they need to drive individual and organizational excellence. Unlike other approaches, whether delivered online or in classrooms, PeopleSkills™ Workshop gives each learner authentic practice in a variety of job-specific conversational role-plays, guided by expert individualized coaching throughout the learning process. Because Extempo automates these unique e-learning services with its patented ExpertAgent™ Technology, learners can have unlimited coaching and role-play practice. As a result, every learner can achieve mastery of the soft skills they need in order to excel in the performance of their jobs. Copyright 2001 Extempo Systems Inc. All rights reserved. Home
Extempo.com
Prentice Hall, 200235
Intelligent Agents in Customer-related Applications (cont.)
Organizational buyer behavior
Purchase same products as individualsTransaction volumes much largerTerms of negotiations and purchasing more complexPurchasing process more important than to an individual buyer
Behavioral model of organizational buyers
Influencing variables different from those of individual buyersOrganization purchasing guidelines and constraintsInterpersonal influences are factors (authority)Group decision making