Transcript Week 3 - Buzzword Inc.

Class Discussion Notes
MKT 390 - 401
September 5, 2001
Internet User Characteristics and
Behavior
 Diffusion of innovation – The process by which new products are
spread to members of the target market over time.
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Innovators
 The first 2.5% of consumers to purchase a product
 Risk takers
 Techies
 High education and income
 Self-reliant
Early adopters
 The next 13.5% to purchase the product
 Communicate more with others than innovators
 Opinion leaders
Internet User Characteristics and
Behavior
 Diffusion of innovation – cont’d
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Early majority
 The next 34% to purchase the product
 Information collectors
 Trial by others important
Late majority
 The next 34% to purchase the product
 Skeptics
 Conformity is their motivator
 Rely on word of mouth
Laggards
 The final 16%
 Lower socioeconomic status
 Frequently one or more product generations behind
Internet User Characteristics and
Behavior
 Product Life Cycle
Introduction
 Growth
 Maturity
 Decline
 PLC is useful to marketers
 Promotion, pricing and distribution strategies differ by PLC
stage
 Type of competition differs by PLC stage
 Cycle time is critical to marketing expenditures
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Internet User Characteristics and
Behavior
Internet User Characteristics and
Behavior
 Market segmentation bases
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Demographic
Geographic location
Psychographic
Behavior
Internet User Characteristics and
Behavior
 Segmentation coverage strategies
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Mass marketing
 Offering one mix for entire market
Multisegment marketing
 Selecting multiple segments and designing marketing
mixes for each
Niche marketing
 Selecting one segment and designing a mix to meet that
segment’s needs
Micromarketing
 Tailoring a marketing mix to a very small group of people
Internet User Characteristics and
Behavior
 Geographic segments
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56 of 200 countries have people who access the Internet
How do marketers tap into the countries with the greatest
potential?
 Global digital marketing index criteria
– Economic growth
– Power
– Stability
– Trading level (GDP and trade balance)
– Political environment
– Freedom of expression
– Bureaucratic efficiency
– Telecommunications infrastructure
– Digital capabilities (PC ownership)
– Online resources (hosts)
Internet User Characteristics and
Behavior
 Barriers to adoption
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Economic
Sociological and Cultural
 Touchy/feely
 Marketplace socializing
 Security/privacy concerns
 Method of payment
 Lack of education
 Language barriers
Technological
 PC penetration
 Communications infrastructure
 Reliable delivery service
Internet User Characteristics and
Behavior
 Barriers to adoption – cont’d
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Legal
 Government censorship and regulation
 Tariffs
 Price escalation due to distribution
 Currency flux
Political
Internet User Characteristics and
Behavior
 Demographic segments
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The Internet’s early years were characterized by typical
innovators
New, attractive demographic niches
 Women
 Seniors
 Teens and children
 Ethnic
 Gays and lesbians
Internet User Characteristics and
Behavior
 Psychographic segments
Personality
 Values
 Lifestyle
 Activities
 Interests
 Opinions
 The difference between attitude and behavior
 Attitude – Internal evaluation
 Behavior – Physical action
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Internet User Characteristics and
Behavior
 Attitudes toward technology
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SRI model
 CAT (Consumer Acceptance of Technology)
– Identifies specific individual benefits
– Analyzes the impact of technology on group
members
– Examines reactions of society to new technology
Internet User Characteristics and
Behavior
 Attitudes toward technology – con’td
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Forrester model
 Optimist or pessimist?
 User income level
 Primary online motivation
– 10 consumer technographic segments
• Fast Forwards – biggest users of business
software
• New Age Nurturers – ignored technology
consumers
• Mouse Potatoes – love interactive entertainment
• Techno-strivers – low income with high PC
ownership
• Digital Hopefuls – strong potential PC market
• Gadget Grabbers – buy low cost, high tech toys
Internet User Characteristics and
Behavior
– 10 consumer technographic segments – cont’d
• Handshakers – low tech in business dealings
• Traditionalists – use very little technology
• Media Junkies – love TV
• Sidelined Citizens – technology laggards
Internet User Characteristics and
Behavior
 Behavior segments
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Benefit segmentation
 What do people do online?
– E-mail
– Search for information
 Community members
– Chat rooms and newsgroups
 Streamies
– Listen to online audio
 Shoppers
– E-shoppers
– Wired but Wary
– Unwired
Internet User Characteristics and
Behavior
 Behavior segments – cont’d
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User segmentation
 Home and work access
 ISP
 Wireless access
 Usage rate
Consumer navigation behavior
 Attention
 Privacy
 User control of message
– Clickstream
– Non-linearity