Transcript asp e-commerce

4. E-ENVIRONMENT
Slide 4.2
LEARNING OUTCOMES
Identify the different elements of an organization macro-environment
that impact on an organizations e-business and
e-marketing strategy
Assess the impact of legal, privacy and ethical constraints or
opportunities on a company
Assess the role of macro-economic factors such as governmental ebusiness policies, economics, taxation and legal constraints.
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.3
MANAGEMENT ISSUES
What are the constraints placed on developing and implementing an
e-business strategy by the e-environment?
How can trust and privacy be assured for the customer while seeking
to achieve marketing objectives of customer acquisition and retention?
Assessment of the business relevance of technological innovation.
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.4
ACTIVITY 4.1 INTRODUCTION TO SOCIAL,
LEGAL AND ETHICAL ISSUES
List all the social, legal and ethical issues that the manager of a sellside e-commerce web site needs to consider to avoid damaging
relationships with users of his or her site or which may leave the
company facing prosecution.
You can base your answer on issues which may concern you, your
friends or family when you access a web site.
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.5
SLEPT FRAMEWORK
Social-influence consumer perception of Internet use for e-commerce
Legal & Ethical-determine what can be promoted and sold online
Economic-affect spending patterns
Political-Determine the adoption and the future of Internet
Technological-offer new opportunities
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.6
Figure 4.1
‘Waves of change’ – different timescales for change in the environment
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.7
SLEPT FRAMEWORK
E-Commerce Manager has to monitor the changes of the Macroenvironment (also called environment scan)
Among the 5 factor type, Legal factor is one of the most important.
P.195, Table 4.2 Lists the Key legal issues that have direct impact on
e-commerce
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.8
FACTORS GOVERN E-COMMERCE
ADOPTION
Cost of Access
Value proposition
Ease of use
Security and trust
Fear of the unknown
Skills
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.9
WEBOGRAPHICS
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Usage location
Access device
Connection speed
ISP
Experience level
Usage type-work, social, entertainment, etc.
Usage level-hours or minutes / month
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.10
Variation in broadband subscribers per 100 inhabitants, by technology,
December 2007
Figure 4.2
Source: OECD (www.oecd.org/sti/ict/broadband)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.11
INFLUENCES OF ONLINE CHANNEL
Finding products and services online is a popular web activity
Online research occurs at every phase of purchase, even for offline
purchases
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.12
Figure 4.3
Percentage by category who bought offline after researching online
Source: BrandNewWorld: AOL UK / Anne Molen (Cranfield School of Management) /Henley Centre, 2004
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.13
MOTIVATION FOR USING ONLINE
SERVICES
Community
Survey
Entertainment
Download
Product trial
Search
Information
Interaction
Make purchases
Exploration
Games
News
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.14
E-COMMERCE-PSYCHOGRAPHIC
SEGMENTATION
Online Consumer Type
1999
2004
Realistic Enthusiasts
15%
14%
Confident brand shoppers
16%
18%
Carefree spenders
15%
19%
Cautious Shoppers
20%
14%
Bargain hunter
16%
21%
Unfulfilled
17%
14%
Ref. Box 4.1 on pp. 202-203
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.15
TRUST IN DIFFERENT INFORMATION
SOURCES
The role of social media and friends in influencing sales was
highlighted by this research
http://eiaa.net/ftp/casestudiesppt/EIAA_Online_Shoppers_Report.p
df
 Search engines (76%)
 Personal recommendations (72%)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.16
TRUST IN DIFFERENT INFORMATION
SOURCES
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Price comparison web sites (61%)
Web sites of well-known brands (59%)
Newspapers/magazines (58%)
Customer web site reviews (58%)
Expert web site reviews (57%)
Retailer web sites (57%)
Sales people in shops (50%)
Content provided by ISPs (38%).
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.17
Figure 4.4
Development of experience in Internet usage
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.18
Figure 4.5
Variation in purchase rates of online products and services in Europe
Source: European Interactive Advertising Association (www.eiaa.net), Mediascope Eupore 2008
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.19
BUSINESS AS ONLINE BUYERS
B2B Profiles
The % of companies with access by the right personnel
Influenced online—may not buy online but affected by online
information
Purchase online
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.20
E-BUSINESS ADOPTION BY SMES
SMEs have a lower adoption rate in comparison to larger enterprises.
They can be classified into 4 categories
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Developers
Communicators
Web presence
Transactors
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.21
Variation in use of e-commerce services between SMEs and larger
enterprises
Figure 4.6
Source: European Commission (2007)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.22
E-BUSINESS ADOPTION BY SMES
Assessing the risk and reward for SME adoption
Revenue
Reputation
Strategic importance
Regulatory compliance
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.23
PRIVACY AND TRUST IN E-COMMERCE
What are ethical standards?
Why is it so important for e-commerce?
What’s privacy?
Why privacy a big deal for e-commerce?
Identity fraud in Canadahttp://www.safecanada.ca/identitytheft_e.asp
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.24
PERSONAL DATA AND E-COMMERCE
Online businesses and e-marketer typical need these data
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Contact info
Profile info—segmentation
Access platform
Behavioural info on a single site
Behavioural Info on multiple sites
Anything else?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.25
Table 4.6
Types of information collected online and related technologies
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.26
Table 4.6
Types of information collected online and related technologies (Continued)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.27
ETHICAL ISSUES AND DATA PROTECTION
Ethical issues concerned with personal information ownership have
been usefully summarized by Mason (1986) into four areas:
Privacy – what information is held about the individual?
Accuracy – is it correct?
Property – who owns it and how can ownership be transferred?
Accessibility – who is allowed to access this information, and under
which conditions?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.28
Table 4.2
Significant laws which control digital marketing
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.29
Table 4.2
Significant laws which control digital marketing (Continued)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.30
ETHICS – FLETCHER’S VIEW
Fletcher (2001) provides an alternative perspective, raising these
issues of concern for both the individual and the marketer:
Transparency – who is collecting what information?
Security – how is information protected once collected by a company?
Liability – who is responsible if data is abused?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.31
THE EIGHT PRINCIPLES FOR DATA
PROTECTION
Fairly and lawfully processed
processed for limited purposes
adequate, relevant and not excessive
accurate
not kept longer than necessary
processed in accordance with the data subject's rights
secure
not transferred to countries without adequate protection
www.dataprotection.gov.uk
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.32
ETHICAL ISSUES AND DATA PROTECTION
 In Canada, Personal Information Protection and Electronic Documents Act (PIPEDA) establishes
principles for collection, use, and disclosure of personal information.
http://laws.justice.gc.ca/en/showdoc/cs/P-8.6///en?page=1
 Provinces have parallel legislation
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.33
Standard information collected about web site visitors from the
DaveChaffey.com site
Figure 4.7
Source: Feedjit
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.34
Information flows that need to be understood for compliance with data
protection legislation
Figure 4.8
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.35
OTHER E-COMMERCE LEGISLATION
 Market e-commerce business
 Domain name and brand/trademark protection
 Using competitor name in meta-tag and pay-per-click advertising
 Accessibility law
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.36
Figure 4.9
Comparison of number of blog postings for three consumer brands
Source: Blogpulse (www.blogpulse.com), reprinted by permission of Nielsen Buzzmetrics
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.37
Figure 4.10
HSBC virtual forest
Source: www.hsbc.co.uk
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.38
TAXATION
What do you know about the e-commerce taxes?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.39
TAXATION
Tax Jurisdiction
In general, taxes are collected in the jurisdiction where consumption
take place
This applies to EU and Canada
The US federal government doesn’t collect taxes for online purchases
States may have different legislations
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.40
TAXATION
Canadian merchants must collect Federal taxes (H/GST) for any order
in the county, and Provincial taxes for orders made in any region that
they have a physical location.
If you are a merchants outside of Canada shipping to Canada, with
no physical presence in Canada, you do not have collect any taxes
http://www.ecomnet.ca/?p=87
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.41
LOCALIZATION
Singh and Pereira (2005) provide an evaluation framework for the
level of localization:
 Standardized web sites (not localized). A single site serves all customer segments
(domestic and international) Many sites, especially small business sites fall into this
category
 Semi-localized web sites. A single site serves all customers; however, there will be
contact information about foreign subsidiaries available for international customers.
Many sites fall into this category http://scotiabank.com/
 Localized web sites. Country-specific web sites with language translation for
international customers, wherever relevant. 3M (www.3m.com) has adapted the web
sites for many countries to local language versions.
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.42
LOCALIZATION (CONTINUED)
 Highly localized web sites. Country-specific web sites with language translation; they
also include other localization efforts in terms of time, date, postcode, currency
formats, etc. Dell (www.dell.com) provides highly localized web sites
 Culturally customized web sites.Web sites reflecting complete ‘immersion’ in the culture
of target customer segments; as such, targeting a particular country may mean
providing multiple web sites for that country depending on the dominant cultures
present. Durex (www.durex.com) is a good example of a culturally customized web
site
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.43
B2B INTERNATIONAL E-TRADING
Large organizations are doing fairly well.
How about SMEs?
What’s your opinion on SME B2B international trading?
Complete Activity 4.5 on p. 237
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.45
TECHNOLOGICAL ISSUES
Rate of change
 Which new technologies should we adopt?
 Monitoring for new techniques
 Evaluation – are we early adopters?
 Re-skilling and training
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.46
Figure 4.12
Diffusion–adoption curve
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.47
IDENTIFYING EMERGING TECHNOLOGIES
Technology networking—monitoring, scouting, and sharing
Crowd-sourcing—facilitate access to ideas from customers, partners,
inventors, etc. e.g., innocentive.com
Technology hunting—structured review of start-up companies for new
tech capability
Technology mining—search the published documentations. E.g.,
googlealert
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.48
Figure 4.14
InnoCentive
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.49
Figure 4.15
Alternative responses to changes in technology
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 4.50
SUMMARY
What are the SLEPT factors?
How could they affect e-commerce?
What’s a strategy to adopt in coping with the SLEPT factors?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009