Transcript Ch 4
Internet Marketing Individuals Online Topics • • • • The Dell triangle Online marketing Online behavior and interactivity Web users The Dell Triangle: Figure 4.1 Online Marketing – personalization – community building – real-time marketing Communication Drives Usage Customer Contacts • Direct interaction creates customer value and sets the stage for relationship building • This creates opportunities for Figure 4.2 Interactivity Customers use sites more as companies add more interactive content Online Behavior & Interactivity • Interactivity depends on – Direct communication – Individual choice – Friendly technology • Let’s take a look at each of these Direct Communication From Broadcast to Dialogue Figure 4.3 One-to-Many Broadcast (same message to all) Direct Targeting (one direction, different messages) One-to-One Interactive (unique messages to individuals) • Dialogue is possible when there’s direct communication between marketer and customer – Intermediaries can filter or block feedback Comparing Communication Methods • Hoffman & Novak (1996): Compared traditional and online communication methods • They looked at – Communication model: one-to-many one-to one – Media symmetry: is the information flow symmetric? – Media content: use of text, images, audio, video – Diversity of information: the number of information sources available through the medium (billboards vs. cable TV or the Web) – Communication timing: synchronous vs. asynchronous – Personal interactivity: person-to-person vs. machine-mediated interaction Comparing Communication Methods • The Web is a flexible technology • It’s evolving into a personal and dynamic communication medium Figure 4.4 Individual Choice Selection + Suggestion = Value • The modern economy presents a staggering amount of variety – Typical supermarkets contain 25,000 different items – Variety expands even further without the physical constraints of inventory and shelf space • Choice is confusing without a way to compare, evaluate & select among the huge number of possibilities – New technologies combine selection and suggestion – Enable consumers to make more effective choices Impact on Consumer Choice Selection Suggestion Shopping on demand Greater value consciousness Power shift to consumers Personalization Customization "Friction-Free Capitalism" Automation of consumption "Captive Consumers" Friendly Technology Technology is technology only if it was invented after you were born • Televisions, radios, telephones, and VCRs have market penetrations > 85% • The Web must become even easier & friendlier to reach the 98% household penetration of TV • As Web access devices becomes more appliance-like, increasing numbers of consumers will be online • Internet marketers must understand consumer behavior online Web Stage and User Challenges • The easiest type of online consumer activity is when loyal and experienced users perform simple tasks • More complicated tasks require marketers to develop better user interfaces • More risky transactions require marketers to establish trust and pay attention to customer needs Figure 4.6 Online Consumer Behavior The Media Equation Media = Real Life Byron Reeves & Cliff Nass • Users relate to virtual information in many of the basic social ways they interact with people in their everyday lives • Users treat machines and software like people Online Consumer Behavior Why Are There Social Responses to Information Technology? • The human brain isn’t well adapted to 20th century media • New media is engaging old brains Online Consumer Behavior Simple Technological Features Can Elicit Strong Social Responses • Manners are critical in online & computer messages • Good Manners = positive responses • Behavior that is considered rude in real life is considered rude onscreen Online Consumer Behavior Social Cues • E-mail lacks the social cues that a phone conversation or a face-to-face meeting provide • Misunderstandings develop more easily because people it’s harder to judge confusion – People don’t get the signals that make them stop and explain themselves in face-to-face discussion • People tend to use stronger language and express themselves more frankly • And they tend to circulate their thoughts to a much wider audience Online Consumer Behavior Social Cues • Unhappy customers may resort to flaming – E-mail makes it easy to escalate negative word of mouth – Flaming can lead to bad press • Customer service reps have to be careful not to respond similarly – Requires deliberate policy and training Online Consumer Behavior Cognitive Difficulty • One of the challenges of providing online information is making it accessible to users • Providing effective search functionality is key • Site developers must understand how their users are likely to search and browse Who’s Online? • High income • Above average education • Heaviest users: 30-49 years old – students & kids also online – seniors & older middle-aged less likely • Gap between male & female is closing • US dominates – wealthiest European & Asian countries coming online quickly Why Does It Matter? As Time Passes • More people online • More people connecting at higher speeds • More people using the Web to shop and transact business – >40% of those with 4+ years experience on the Web regularly shop and conduct Web commerce – as opposed to only 12% of people who have been online for <1 year