Contemporary Research in E-Marketing_1 pdf

This volumeoffers an exciting set of papers that use different perspectives, theories, andresearch methodologies to enrich the burgeoning e-marketing literature.The first paper by Sanjee

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Contemporary Research in

E-Marketing

Volume 2

Sandeep Krishnamurthy

University of Washington, USA

Hershey • London • Melbourne • SingaporeIDEA GROUP PUBLISHING

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Library of Congress Cataloging-in-Publication Data

Contemporary research in e-marketing / Sandeep Krishnamurthy, editor.

v <2 > cm.

Includes bibliographical references and index.

ISBN 1-59140-824-5 (h/c) — ISBN 1-59140-825-3 (s/c) — ISBN 1-59140-826-1 (eisbn)

1 Internet marketing I Krishnamurthy, Sandeep,

1967-HF5415.1265.C67 2006

658.8’72—dc22

2004016288

British Cataloguing in Publication Data

A Cataloguing in Publication record for this book is available from the British Library.

All work contributed to this book is new, previously-unpublished material The views expressed in this book are those of the authors, but not necessarily of the publisher.

Contemporary Research

in E-Marketing

Volume 2 Table of Contents

Mark P Sena, Xavier University, USA

Gerald Braun, Xavier University, USA

Chapter III Job Search at Naukri.com: Case Study of a Successful Dot-Com Venture in India 58

Sanjeev Swami, Indian Institute of Technology, Kanpur, India

Chapter IV User-Centered Design and Marketing: Online Customer Value 88

Thomas W Porter, University of North Carolina Wilmington, USA

Chapter V A Synthesis and Analysis of Behavioral and Policy Issues

in Electronic Marketing Communications 106

Merrill Warkentin, Mississippi State University, USA

Robert S Moore, Mississippi State University, USA

Melissa Moore, Mississippi State University, USA

Chapter VI Providing Value to Customers in E-Commerce

Environments: The Customer’s Perspective 119

Shailey Minocha, The Open University, UK

Liisa H Dawson, The Open University, UK

Ann Blandford, University College London Interaction Centre, UK Nicola Millard, British Telecommunications PLC, UK

Chapter VII Key Success Requirements for Online Brand

Management 147

Subir Bandyopadhyay, Indiana University Northwest, USA

Rosemary Serjak, University of Ottawa, Canada

Chapter VIII The Evolution of the Theory and Practice of Marketing

in Light of Information Technology 168

Daniela Andreini, University of Bergamo, Italy

Chapter IX The Internet and Global Markets 216

José Manuel Ortega Egea, University of Almería, Spain

Manuel Recio Menéndez, University of Almería, Spain

Chapter X Stance Analysis: Social Cues and Attitudes in Online

Interaction 262

Peyton Mason, Linguistic Insights, Inc., USA

Boyd Davis, University of North Carolina-Charlotte, USA

Deborah Bosley, University of North Carolina-Charlotte, USA

Chapter XI Application of Internet-Based Marketing Instruments

by Multichannel Retailers: A Web Site Analysis in the U.S and

the UK 284

Maria Madlberger, Vienna University of Economics and

Business Administration, Austria

Chapter XII The E-Mode of Brand Positioning: The Need for an Online Positioning Interface 304

S Ramesh Kumar, Indian Institute of Management, Bangalore, India

Chapter XIII Locked In By Services: Willingness to Pay More and Switching Behavior in a Digital Environment 322

Manlio Del Giudice, University of Milano-Bicocca, Italy

Michel Polski, Grenoble Ecole de Management, France

Chapter XIV Comparative Analysis of International Approaches to the Protection of Online Privacy 347

Peter O’Connor, ESSEC Business School, France

About the Authors 365 Index 372

Preface

It is a pleasure to announce the second volume in the Contemporary Research

in E-Marketing series Volume 1 in this series was released in 2004 and hasbeen very well received This volume builds on the intellectual capital of Vol-ume 1 by a compilation of interdisciplinary papers on the topic of e-marketing.The Internet and the Web continue to evolve at a rapid pace Examples ofinnovative applications of these technologies in the domain of marketing abound.E-marketing has become standard practice all over the world This volumeoffers an exciting set of papers that use different perspectives, theories, andresearch methodologies to enrich the burgeoning e-marketing literature.The first paper by Sanjeev Swami and Ram Krishna, “Evaluation of Web Sites

on Information and Entertainment Properties: The Role of Involvement,” vides an excellent empirical examination of consumer involvement on how Websites are evaluated Web sites receive a continuum of visitors in terms of moti-vation Some care deeply about the topic of the site and others are not soengaged Swami and Krishna provide us with empirical data on the impact ofinvolvement on online consumer behavior Their results show that the consumer’sinformation and entertainment profiles significantly affect utilitarian and he-donic evaluations of involvement They also find positive and significant rela-tionships between the evaluations of involvement and affect toward the Website

pro-Most people think that products sold on eBay tend to be low-value, low-priceproducts that one would encounter in a yard sale It would perhaps be verysurprising to many readers to learn that eBay Motors is the largest part of thecompany with an annual sales of $7.5 billion The second paper by Mark Senaand Gerald Braun, “An Examination of Consumer Behavior on eBay Motors,”studies transactions in this product category The findings of their study suggest

that within selected data ranges, such factors as seller feedback ratings, ber of pictures in item description, and seller type (dealer vs individual) mayaffect the percentage of retail value that sellers are able to earn in eBay Mo-tors auctions

num-Too often, discussions of e-marketing are limited to examples from America orEurope If we are to acknowledge the truly global nature of e-marketing, it isimperative that we learn about the best practices in other areas of the world.The third chapter by Sanjeev Swami is titled, “Job Search at Naukri.com: CaseStudy of a Successful Dot-Com Venture in India.” This chapter is an in-depthanalysis of an Indian company that has successfully competed with MonsterIndia to establish an online portal for job hunters

Everyone agrees that providing customers with value is vital to the success of

an online enterprise Yet we know little about how one must design a Web site

to maximize the consumer experience and to provide the greatest value mas Porter fills this gap with his chapter, “User-Centered Design and Market-ing: Online Customer Value.” Blending insights from marketing, consumer be-havior, and human–computer interaction (HCI), Porter provides an incisive analy-sis of how Web design needs to be focused on the user The model proposed inthe paper based on means-end theory provides a theoretical explanation forlinking Web site features and functions to perceptions of value by consumers.Communication is central to every marketing effort In today’s multifacetedtechnology environment, consumers are inundated with marketing communica-tions from all sorts of advertisers on all sorts of devices The chapter by MerrillWarkentin, Robert Moore, and Melissa Moore, “A Synthesis and Analysis ofBehavioral and Policy Issues in Electronic Marketing Communications,” pro-vides an interdisciplinary synthesis of recent research concerning emergingelectronic marketing communications The chapter explores how different lev-els of marketing information acquisition and integration could impact consumerperceptions and behaviors

Tho-The next chapter by Shailey Minocha, Liisa Dawson, Ann Blandford, and NicolaMillard, “Providing Value to Customer in E-Commerce Environments: TheCustomer’s Perspective,” comes to us from the United Kingdom Borrowingfrom the HCI literature and using intensive research, these authors provide uswith a new way to understand online service quality and maximize the totalconsumer experience (TCE) Their framework of online service quality (E-SEQUAL) promises to have a major impact on the practice of e-marketing.This article also represents a truly remarkable collaboration with members ofacademia and industry

Online brands help us make sense of the abundance of information online countering a familiar brand online is akin to meeting a friend in an alien environ-ment Yet managing brands online provide unique challenges In the chapter bySubir Bandyopadhyay and Rosemary Serjak, “Key Success Requirements for

Online Brand Management,” we learn about what the brand manager can do tomanage brands online and integrate them with physical brands for a successfulconsumer experience

Daniela Andreini’s chapter, “The Evolution of the Theory and Practice of keting in Light of Information Technology,” is a theoretical examination of theplace of e-marketing in the marketing theory literature This Italian author pro-vides an exhaustive analysis of the different theoretical perspectives of e-mar-keting and then integrates it with the known theoretical frameworks in market-ing

Mar-The next chapter comes to us from Spain Mar-The work of José Manuel OrtegaEgea and Manuel Recio Menéndez, “The Internet and Global Markets,” is atheoretical overview of how the Internet is affecting global markets

Online marketing research may well be the killer application that e-marketershave been waiting for Online focus groups provide us with unique advantages.The biggest stated disadvantage may be that we lose body language and hence,

an understanding of how things are said and not just what is said The nextchapter by Peyton Mason, Boyd Davis, and Deborah Bosley, “Stance Analysis:Social Cues and Attitudes in Online Interaction,” introduces us to the notion ofstance and describes how we could measure this construct using multivariatetechniques, using an ongoing example taken from an online financial focus group.They review differences in stance between online real-time focus groups andonline chat, as well as between online and face-to-face focus groups; and fi-nally, they proffer examples of stance analysis in two very different onlinefocus groups: older adults discussing financial services and teenagers discuss-ing clothes Their work could very well be the missing piece in our understand-ing of online research and is a must-read for everyone interested in using theInternet as a research tool

The next chapter comes to us from an Austrian author—Maria Madlberger—who provides us with a fascinating comparative analysis in her paper, “Applica-tion of Internet-Based Marketing Instruments by Multichannel Retailers: A WebSite Analysis in the United States and the United Kingdom.” Her findings areprovocative She found that the observed multichannel retailers still prefer “tra-ditional” retail marketing instruments on their online shops and often do withoutinnovative Internet-based marketing instruments such as personalization or con-tent and information offering Additionally, they did not find fewer-than-ex-pected differences between the observed U.S and U.K retailers

The next chapter comes to us from S Ramesh Kumar, and his work, “The Mode of Brand Positioning: The Need for an Online Positioning Interface,”takes on the issue of the positioning of online brands Drawing from global aswell as Indian examples, Kumar provides us with potential positioning frame-works

The chapter by Manlio Del Giudice and Michel Polski is titled, “Locked In ByServices: Willingness to Pay More and Switching Behavior in a Digital Environ-ment.” They discuss a dynamic model of cognitive and behavioral e-loyalty.Using results from an empirical study, their chapter focuses on the determi-nants of the switching behavior online and on the opportunity to change Website usability using a powerful lock-in strategy

The last chapter is by Peter O’Connor which comes to us from France Hispaper titled, “A Comparative Analysis of International Approaches to the Pro-tection of Online Privacy,” compares the self-regulation approach epitomized

by the United States with the comprehensive omnibus legislative approachmandated by the European Union

This collection of articles is expected to add to an already-considerable ture and to enhance our understanding of this intrinsically interdisciplinary andglobal phenomenon

litera-Sandeep Krishnamurthy

University of Washington, Bothell, USA

x

Evaluation of Web Sites on Information and Entertainment Properties 1

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Chapter I

Evaluation of Web Sites

on Information and Entertainment

Properties:

The Role of Involvement

Sanjeev Swami, Indian Institute of Technology, Kanpur, IndiaRam Krishna, Tata Consultancy Services, India

Abstract

This paper addresses the role of consumer involvement in Web site evaluation.

We investigate the factors that lead the consumer to be involved with one site more than another Based on previous research, we use the psychological constructs, information-seeking tendency, and focused attention (Baumgartner & Steenkamp, 1996; Novak, Hoffman, & Yung, 2000) to define the “information profile” of a consumer; and sensation-seeking tendency and mood variability to define the “entertainment profile” of the consumer (Eliashberg & Sawhney, 1994) The information and entertainment factors are hypothesized to affect consumers’ utilitarian (need, value) and hedonic (interest, appeal) evaluations of involvement, respectively, and ultimately, the affect toward the Web site (Holbrook & Hirschman, 1982; Mano & Oliver, 1993; Zaichkowsky, 1985, 1994) We examine these evaluations for various Web sites, whose respective information and

2 Swami and Krishna

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entertainment profiles are defined using elements such as informativeness, organization, and entertainment properties (Chen & Wells, 1999) The Web site properties are hypothesized to moderate the relationships between individuals’ profiles and their evaluations of involvement and affect We conducted our study using three surveys: (1) collection of data for classifying Web sites on information and entertainment properties, (2) collection of data for measurement of involvement, and (3) collection of data for time-based measurement of involvement Our results show that the consumer’s information and entertainment profiles significantly affect utilitarian and hedonic evaluations of involvement We also find positive and significant relationships between the evaluations of involvement and affect toward the Web site Further, we find that the Web site’s information- specific properties moderate the relationship between information profile

of the consumer and his/her utilitarian evaluation of involvement A set of results from representative time-based evaluations of involvement shows that the respective elements of evaluation of involvement show increase/ decrease over time if there is a match/mismatch between the user and site properties.

Introduction

The Internet has evolved as a dynamic new medium of information, ment, and commerce Penetration levels have increased dramatically and newbusiness opportunities have been created online (Hanson, 2000) Analysts haveremained upbeat about the potential of e-commerce and predicted that traditionalU.S companies using digital marketing will spend $63 billion on it annually by2005; and that online retailing in Europe will grow to 152 billion Euros in 2006(Forrester Research, 2001; Forrester Research BV, 2001) However, amidst allthe excitement about the Internet, the importance of the most significant entitybehind all this attention—the consumer—must be recognized This is importantsince the consequences of the lack of in-depth understanding of the consumercould be devastating as manifested in many dot-com failures (Mahajan, Srinivasan,

entertain-& Wind, 2002; Varianini entertain-& Vaturi, 2000)

In general, online consumers are younger, more educated, and more affluent thanthe general population (Hanson, 2000) Consumers visit the Web for entertain-ment (e.g., multiuser games, online discussions or chat rooms, music, videos),buying goods or services (e.g., online banking, online shopping, financial ser-vices, electronic catalogs, reverse auction), searching for information (e.g.,reading news, searching online databases), communication (e.g., e-mail, chat),