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MAR 6936-902

E-Commerce Marketing

Spring 2003—Tampa--MBACommunication, Word of Net & Promotion

Rich GonzalezApril 21, 2003 (Week 16)

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URLs www.theacsi.org

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Agenda April 21, 2003 Research Survey Final Exam Details e-mail Address Check ACSI U-Commerce--Discussion Usenet: Conversations, Trust, Word of

Net Promotion Evaluations

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For Today: April 21 WAP # 6 Chapter 7: E-Business Promotion “U-Commerce: Expanding the

Universe of Marketing,” Watson, et al., JAMS, Fall 2002

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ACSI Claes Fornell University of Michigan American Society for Quality CFI Group 1994 Goal: Reliable and Valid Measures of

Quality, Defined by Customer

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ACSI www.theacsi.org/fourth_quarter.htm

Final Note: Customer Sat Is Important; It Drives Loyalty

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E-Commerce Marketing Course Topics/Discussions Web Site /Business Model Evaluation Usability Word of Net Michael Porter 5 Forces Model,

Internet Marketing Concept Customer Satisfaction--Feedback

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E-Commerce Marketing Course Topics/Discussions Information Wants To Be Free Personalization & Customization Innovation 3 Fundamental Business Shifts

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3 Fundamental Business Shifts1. Most transactions—B2C, B2B, C2C

and G2C will become self-service digital transactions.

2. Customer service will become the primary value-added function in every business. Personal consultancy not routine services.

3. The pace of transactions and customer needs for customer service will force firms to adopt digital processes---for survival.

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E-Commerce Marketing Course Topics/Discussions 6 Chapters from Kleindl Academic Articles Practitioner Articles Current Events—WSJ Online Personalization & Customization

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Online Consumer Behavior:Text Exchange Spaces

alt.autos.hyndairec.backcountryrec.autos.makers.hondarec.guitar.makers.ampsrec.bicycles.miscalt.sports.football.proalt.sports.football.pro.tampabay-bucsalt.autos.toyota.camryrec.food.drinkrec.arts.bodyart

Class Exercise

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Information-Enabled Consumer

Customers will become more efficient in CDP

Better information, less effort Information Constraints Removed Information Overload a Danger

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Consumer Decision Process Problem

Info-SeekingEvaluationPurchaseUse

Search: Internal and External Price, Attributes....and External

Information

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Survey Results 10 Attributes (Table 1) Price OT Delivery Customer Support Product Selection ...

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Discussion Customers Dissatisfaction: Customer Support & On Time Delivery

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Repeat Purchase Online Purchasers Who Are Repeat

Buyers Buy More Items Per Order True?

Online Purchasers Who Are Satisfied With a Vendor Will Tell Others About It.True?

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Word of Net Information, knowledge, influence,

and emotion in primarily text based online discussion spaces, pertinent to consumer products and services.

Such exchanges affect the consumer decision process

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Non-Linear Communication Interactivity and hyperlinks allow for

a type of two-way communication between the online entities.

Non-linear communication allows for a free flow and exchange of information.

Most conversations individuals have with others are non-linear.

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Typology Of Interactions Consumer-to-consumer (C-to-C)

(Internet based) Business-to-consumer (B-to-C)

(Internet based) Consumer-to-business (C-to-B)

(Internet based) Business-to-Employee (B-to-E)

(Intranet based) Employee -to-Employee (E-to-E)

(Intranet based) Business-to-business (B-to-B)

(Extranet based)

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High Involvement (1)

Individuals with high involvement for a product or service are: likely to see a topic as interesting or

important attend to information more are more likely to comprehend complex

messages More willing to spend more time online goal directed, such as when attempting to

gather information to make a purchase.

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High Involvement (2)

Individuals can also have high enduring involvement with products or product categories, and engage in online informationing. Enduring involvement exists when an

individual has a high level interest in a topic over and extended time period.

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Rec.autos.makers.chrysler Conversations:

Mechanical ProblemsQuestions about models/featuresModel/maker comparisonsShowing off/announcing/enthusiasm/loyaltyQuestions about anything elseImpact of Daimler engineering on Chrysler

Class Exercise

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Stewart Brand:

“Information wants to be free.”

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Weekly Analysis Paper # 6 Usenet Based on our discussion and demo of rec.autos.makers.chrysler and the

other service newsgroup, accessible via Google Groups Pick a product or service that you are interested in as a consumer Find a “thread” (conversation) about that product or service and

participate in it, by posting. One way to do this is by STARTING a thread.

Deliverable:

1.5 pages, single spaced, bolded headings, cover sheet Newsgroup Name As a Consumer: What DID YOU Learn About the Product/Service? As a Marketer: What Are Some Implications of this Thread? Word of Net vs. Word of Mouth Also include copy of the thread posts and the chronological summary

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Product or Service: What Did You Learn? PDAs—Palm, simpler, has 1000s of

programs, Pocket PC more expensive, powerful

Hiking Boots—Vasque brand superior, get sales support, Backpacker mag

Honda Odyssey –Confirmed problem with doors, but good van

Bucs Tix---Can buy before go on sale—Ticket Brokers sell options—maybe legal

Class Exercise

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Implications CB will be altered even more due to

information Longevity of postings and information---

Archival Input into R & D Identification of distribution channels and

new markets Makes it harder to profit from poor

products

Class Exercise

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Word of Net vs. Word of Mouth Reach is the a big difference Richness is a big difference too WON is more tangible—text Amplification level of WON is much higher Disintermediation is facilitated Harder to rip off people—customers is more

knowledeable Anonymous nature of some WON—facilitates

information flows Misinterpretation of WON—no cues, i.e., body

language, etc.

Class Exercise

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Describe, Categorize & Interpret Content of Threads Problem Solving Stage Type of Poster Types of Questions & Answers Context of Threads Type of External Information Source

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Determine Objective: i.e.,Better Vision (Surgery)

Support (Facts)

Locate Newsgroup-(Discussion)

Compose Question

Intention About Surgery

Negotiate Inquiry

Develop Competence

Report Results To Group

Online Community—

Focused Learning Process

Participant Benefits: Current Information Informed Opinion Hardware Details Research Directions

Seek More Knowledge

Entry Point

Framework: PCK and Purchase Decision

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Customer Types (As Comparison)

Loyalty

Satisfaction

Terrorists

Hostages

Mercenaries

Apostles

Sasser, et al.

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Advertising $6 B in 2002 Previously—Most Ads Were Online

Companies Now—Top 100 Traditional Advertisers Do

30% of Ads Ford, Disney, Hertz, Daimler Chrysler... 1.2 B Impressions of SUVs 1Q03 11% of Top Ads Use Flash Technology

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What Is Promotion?

Promotion is a communication process consisting of advertising, publicity, sales promotion, and salesmanship.

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The AIDA model AIDA model is a framework for understanding how

hypermedia can be used to reach promotional goals. The AIDA process indicates that:

First the attention of the target audience must be gained Then interest created in the product or service Desire generated Action taken by the targeted audience.

The AIDA process is based on attitude models in which: The audience first thinks about an object (cognition) Develops feelings (affect) Engages in some type of behavior (conation).

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Gaining Attention

Traditional media gain attention by designing messages with enough impact to gain and hold the audience or the message can be repeated numerous times.

A Web site differs from traditional media in that the receiver must actually use the Internet to link to Web page content.

An individual will not be exposed to the message unless they participate in some active measure to view a Web site.

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Key Attributes of Successful Web Sites

Table 7.3: Reasons For Using Favorite Sites 1) Easy of use: 66% 2) Quick download: 58% 3) Frequently updated: 54%

4) Coupons and incentives: 14% 5) Favorite brands: 13% 6) Cutting-edge technology: 12% 7) Games: 12% 8) Purchasing capabilities: 11% 9) Customizable: 10% 10) Offers chat: 10%

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Cookies and Tracking Cookies are linked to databases

Allow for individualized design and pushing the Web site for the individual.

Tracking software: Reads the behavior of the visitor by keeping

track of the Web pages the visitor sees, how long they are viewed, what is passed over, what is placed in a shopping basket, and what is removed.

This behavior suggests the type of information the user may be interested in.

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Overall Grading Criteria: 1. Research Intensity 2. Analysis Depth and Opinions 3. Support (Cites/references--from

readings, class discussions, articles, etc.)

4. Personal Expertise or Experience

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Final Exam April 28, 2003 Part 1—SUBJECTIVE

Take Home 3 Essay questions—

Pick 2 Based on readings,

text, discussions and papers

Due Apr 28, Noon 2-4 pages each Paper Preferred, e-

mail OK

Part 2—OBJECTIVE—Online

25-30 Questions—MC, FIB, T/F

Based on same Done on Apr 28 at

6:00 PM, via e-mail

30 minutes

3 Essay Questions Released Today: April 21, 2003

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End