Learning Objectives❚ Describe the essentials of consumer behavior ❚ Describe the characteristics of Internet surfers and EC purchasers ❚ Understand the process of consumer purchasing de
Trang 1Chapter 3 Internet Consumers and
Market Research
Trang 2Learning Objectives
❚ Describe the essentials of consumer behavior
❚ Describe the characteristics of Internet surfers and EC
purchasers
❚ Understand the process of consumer purchasing decision making
❚ Describe the way companies are building relationships with
customers
❚ Explain the implementation of customer service
❚ Describe the consumer market research in EC
❚ Experience the role of intelligent agents in consumer applications
❚ Describe the organizational buyer behavior model
Trang 3The Importance of Customers
❙ Competition
❘ “fighting” on customers
❘ to succeed : control the 3Cs
❙ Customers
❘ to succeed : finding and retaining customers
❙ Change
❘ EC is a new distribution channel
then to choose your company over the online competitors
❚ The major pressures are labeled the 3Cs
Trang 4A Model of EC Consumer Behavior
Technical
Support Web design, Intelligent- agents
Customer service FAQ, e-mail, Call centers, One-to-one
Decision Making Process
Stimuli
Marketing
Price Promotion Product Quality
Others
Economical Technology Political Cultural
Buyers’ Decisions
Buy or not What to buy Where (vendor) When How much to spend Repeat purchases
Individual Characteristics
Age, gender, ethnicity, education, lift style, psychological, knowledge, values, personality
Environment Characteristics
Social, family, communities
Trang 5❚ Consumer Types
❙ Individual consumers: get much of the media attention
❙ Organizational buyers: do most of the shopping in cyberspace
❚ Purchasing Types
❙ Impulsive buyers: purchase products quickly
❙ Patient buyers: purchase products after making some comparisons
❙ Analytical buyers: do substantial research before making the decision to
purchase products or services
❚ Purchasing Experiences
❙ Utilitarian: shopping “to achieve a goal” or “complete a task”
❙ Hedonic: shopping because “it is fun and I love it”
Trang 6Variables Influencing Decision Making Process
❙ Other environmental variables
❘ available information, government regulations, legal constraints, and situational factors
Trang 7Consumer Demographics
❙ Gender ( 61% male user & 39% female user )
WOMEN’S PURCHASES BY CATEGORY (1998)
Purchases Category % of Total Category Purchases (299) % of Total Respondents Buying (166)
Trang 8❚ Consumer Demographics (1998)
Variables Influencing Decision
Making Process (cont.)
❙ Age (mostly 21-30 year-old)
❙ Marital status (41% married & 39% single)
❙ Educational level (81% with at least some college
education & 50% obtained at least baccalaureate
degree)
❙ Ethnicity (87% white in America)
❙ Occupation (26% educational-related field, 22%
computers & 22% other professionals)
Trang 9Variables Influencing Decision
Making Process (cont.)
❙ Household income (46% at least $50,000/year)
❙ Internet usage profile (Internet access option, length
and frequency of web use & access cost)
❙ Internet access option (63% primarily form home & 58% primarily from work or school)
❙ Length and frequency of use (88% access daily & 33% access 10-20 hours a week)
❙ Access cost (67% pay for their own Internet access &
31% paid for by their employers)
Trang 10Consumer Buying Patterns
In last six months of 1998:
❙ 76% filling out a form on the Web
❙ Online purchases are more than
paper catalog purchases for Net
buyers
❙ 32% spent between
$100.00-$500.00
❙ Spending of less than $50.00
decreases steadily as shoppers
gain experience
❙ Women are more likely to
purchase more in the under $50.00
level, and less likely to purchase at
the above $500.00 level
0 10 20 30 40 50
Don't know
Amount Spent on Web
Trang 11Consumer Purchasing Decision-Making
❚ Roles that people play in the decision making
process
❙ Initiator : the person who first suggests or thinks of
the idea of buying a particular product or service
❙ Influencer : a person whose advice or views carry
some weight in making a final buying decision
❙ Decider : the person who ultimately makes a buying
decision or any part of it - whether to buy, what to buy,
how to buy, or where to buy
❙ Buyer : the person who makes an actual purchase
❙ User : the person who consumes or uses a product or
service
Trang 12After purchase service and evaluation Purchase and delivery
Alternative evaluation, negotiation and selection
Information search (What? From whom?)
❚ The Purchasing Decision-Making Model
Consumer Purchasing Decision-Making
(cont.)
Need identification
(Recognition)
Trang 13Model of Internet Consumer Satisfaction
Customer Satisfaction
Logistics Support Customer Service Pricing Attractiveness Web-site Store Front
3rd Party Seal of Approval
Trust in Web-shopping
Vendor Reputation
Repeat Web Purchase (Brand Loyalty) Security
Authentication
Privacy Transaction
Safety
Non-repudiation Integrity
System Reliability
Speed of Operation
Ease of Use
Content, Quality Format
Reliability
Completeness
Timeliness
Trang 14One-to-One Marketing
❚ Relationship marketing
❙ “Overt attempt of exchange partners to build a long term association, characterized by purposeful
cooperation and mutual dependence on the
development of social, as well as structural, bonds”
❚ “Treat different customers differently”
❙ Able to change the manner its products are
configured or its service is delivered, based on the
individual needs of individual customers
Trang 15One-to-One Marketing (cont.)
❚ Customer loyalty
❙ Purchase behavior
❙ One of the most significant contributors to profitability
❙ Increase profits; strengthen market position; become less sensitive to price competition; increase cross-
selling success; save cost, etc.
❙ Real world examples
❘ 1-800-FLOWERS
❘ Amazon.com
❘ Federal Express (FedEx)
Trang 16❚ Building and maintaining customer loyalty
❙ Maintain continuous interactions between
consumers and business
❙ Make a commitment to provide all aspects of the
business online
❙ Build different sites for different levels of
customers
❙ Willing to invest capital, both human and
financial, in the information systems, to insure
continuous improvement in the supporting
technology as it becomes available
Trang 17❚ Building and maintaining customer loyalty
❙ Make a commitment to use the information
collected about customers in an ethical manner
❙ Realistic managerial expectations in the payback
period and cost recovery
❙ Set acceptable standards for response time in
customer service (24-48 hours); Use intelligent
agents to expedite and standardize responses
whenever possible
❙ Ability to change and customize information and
services quickly and inexpensively is a must
Trang 18❚ Customer Service
❙ A new look and feel
Install Web servers which allow each customer to create individual web pages that can be customized
to record purchases and preferences
Put the burden on the
Trang 19❚ Customer Service
ISFLAVIA:
❙ Information can be directed to the customer efficiently
❙ Creation of a database which records purchases,
problems and requests is facilitated
❙ Information can now be traced and analyzed for
Trang 20Implementing Customer Service in
Cyberspace
❚ Product Life Cycle
❙ Phase 1 Requirements : assisting the customer
to determine needs
❙ Phase 2 Acquisition : helping the customer to
acquire a product or service
❙ Phase 3 Ownership : supporting the customer on
an ongoing basis
❙ Phase 4 Retirement : helping the client to
dispose of a service or product
Trang 21❚ Types of Customer Service Functions
Implementing Customer Service in
Cyberspace (cont.)
❙ Answering customer inquires
❙ Providing technical and other information
❙ Letting customers track accounts or order
status
❙ Allowing customers to customize and
order online
Trang 22❚ Addressing Individual Customer Needs
Doing business
via Web
Companies understand their customers’ needs and buying habits
better
Companies customize their future marketing
efforts
Implementing Customer Service in
Cyberspace (cont.)
Trang 23Tools of Customer Service
❙ used to record purchases and preference
❙ direct customized information to customers efficiently
❙ discuss issues with company experts; with other
customers
❙ used to disseminate information, send product
information and conduct correspondence regarding any topic, but mostly inquiries from customers
❚ FAQs
❙ not customized, no personalized feeling and contribution
to relationship marketing
Trang 24❚ Help Desks and Call Centers
Tools of Customer Service (cont.)
❙ A comprehensive customer service entity
❙ EC vendors take care of customer service issues
communicated through various contact channels
❙ Telewebs
❘ combines Web channels, such as automated e-mail reply, Web knowledge bases and portal-like self service with call center agents or field service personnel
❙ Internet
❘ a medium of instant gratification
❘ demand for both prompt replies and proactive alerts
Trang 25Market Research for EC
plan
Data collection, Data analysis
Results, Recommendations, Implementation
❙ Finding relationship between consumers, products, marketing methods, and marketers through
information in order to discover marketing opportunities and issues, to establish marketing plans, to better understand the purchasing process, and to evaluate marketing performance
Trang 26Market Research for EC (cont.)
❚ Market Segmentation
❙ Market segmentation is the process of dividing a
consumer market into meaningful groups for
decision-making
❙ In the past, most marketing approaches have
focused on group-based targeted markets, not on
a personal way to identify individual consumers
who actually purchased and used the products
Trang 27❚ Market Segmentation
❙ Improved methods of marketing research based
on information technologies allow marketers to
collect, store, and analyze detailed and personal
information in a cost-efficient way.
❙ Example : Wal-Mart
❙ Consumer life styles shape psychographic
segmentation of the market.
❙ Lifestyles are typically established by consumers
filling out questionnaires about their activities
such as work and family, interests and opinions,
etc.
Trang 28❙ Consumer Market Segmentation Tasks in the US
Geographic
Region
Pacific; Mountains; West North Central; West South Central; East North Central; East south Central; South Atlantic;
Middle Atlantic; New England
Size of city, county,
or standard
metropolitan statistical
area (SMSA)
Under 5,000; 5,000 – 19,999; 20,000 – 49,999; 50,000 – 99,999; 100,000 –
249,999; 250,000 – 499,999; 500,000 – 999,999; 1,000,000 – 3,999,999; 4,000,000
Trang 29❚ Online Market Research
❙ Using online technology to conduct surveys
❙ More efficient, faster, and cheaper data collection, and
a more geographically diverse audience than those
found in off-line surveys
❙ Ability to incorporate radio buttons, data-entry fields
and check boxes in the surveys
❙ Eliminating the data reentry errors (from questionnaires
to the computer, for analysis)
❙ Not suitable for every customer or product — it is
skewed toward highly educated males with high
disposal income
Trang 30❚ Online Market Research
❙ Risk of losing people who sign off if they had
difficulty in logging on or communicating with
researchers
❙ Companies such as E-valuations or Northstar
can conduct the research for your company
❙ VALS 2 ( values and lifestyles ) is a well-known
segmentation dividing consumers in the U.S
(developed at SRI International in California)
Trang 31❚ Online Market Research Methods
❙ Process of conducting the research
target market
Trang 32❚ Online Market Research Method
❙ Content of the research instrument
❘ Post strategic queries to news groups
❘ Offer rewards for participation
❘ Post strategic queries on your Web site
❘ Post relevant content to groups with a pointer to your Web site survey
❘ Post a detailed survey in special e-mail questionnaires
❘ Create a chat room and try to build a community of
consumers
Trang 33❚ Online Market Research Methods
❙ Target Audience of the Study
type of audience
Trang 34❚ Consumer Market Research
interviews; telephone survey and mail survey
ranges from client-specific moderated focus
groups conducted via chat rooms; to
interactive surveys placed on Web sites
for faster, cheaper and more reliable
collection and transmission of marketing
Trang 35❚ Consumer Market Research
❙ Mass marketing research
❘ Keep track of consumers’ Web movements using
cookies—files attached to a user’s browser
Trang 36Intelligent Agents for Consumers
❚ Search Engines
❙ Computer programs that can automatically contact
other network resources on the Internet, searching for
specific information or key words, and reporting the
results
❚ Intelligent Agents
❙ Computer programs that help the users to conduct
routine tasks, to search and retrieve information, to
support decision making and to act as domain experts
❙ Do more than just “search and match”
Trang 37❚ Intelligent Agents for Information Search and
Filtering
Intelligent Agents for Consumers (cont.)
❙ Help to determine what to buy to satisfy a specific need by looking for specific products’ information and critically
evaluate them
❙ Example : Firefly
❘ uses a collaborative filtering process that can be described as “word
of mouth” to build the profile
❘ asks a consumer to rate a number of products, then matches his ratings with the ratings of other consumers and, relying on the ratings of other consumers with similar tastes, recommend him products that he has not yet rated
Trang 38❚ Intelligent Agents for Product and Vendor Finding
❙ Bargainfinder form Andersen Consulting (a pointer)
vendors and returns a list of prices (unsuccessful)
❙ Jango from NetBot/Excite
request is from a real customer or from the agent
❙ Kasbah from MIT Lab
an agent who is then sent out to proactively seek buyers or sellers
Intelligent Agents for Consumers (cont.)
Trang 39❘ being argumentative (use information acquired during the first two stages of the purchasing decision model to evaluate each single offer)
Intelligent Agents for Consumers (cont.)
Trang 40❘ use learning theory by monitoring customers’ interactions
❘ learns customers’ interests, preferences and behavior and delivers to them customized service accordingly
❙ Groaphens form Netperceptions
❘ personalizes content and creates customer loyalty programs with learning agent technology
Intelligent Agents for Consumers (cont.)
Trang 41Organizational Buyer’s Behavior
❚ Consumer Types
Purchase volume Smaller Larger
Number of customers Many Fewer
Location of buyers Dispersed Geographically concentrated
Distribution structure More indirect More direct
Nature of buying More personal More professional
Nature of buying influence Single Multiple
Type of negotiations Simpler More complex
Use of leasing Lesser Greater
Primary promotional
method
Advertising Personal selling
Characteristic Retail Buyers Organizational Buyers
❙ Individual customers Vs Organizational buyers
Trang 42Organizational Buyer’s Behavior (cont.)
Technical support
Web design, Intelligent-
Customer service
FAQ,E-mail, Call Centers,
Decision Making Process (Group
or Individual)
Stimuli Marketing
Price Promotion Product Quality
Others
Economical Technology Political Cultural
Interpersonal Influences
Authority; status;
persuasiveness
Individual Influences
Age; gender; ethnicity;
education, lift style;
psychological; knowledge;
values; personality
Organizational Influences
Policies and procedures;