Thursday, January 26, 2012

Chapter 7 – Consumer Behavior Online

Consumer Statistics:
·      71% of U.S. consumers use the internet
·         Who are the 29% not connected?
o   Older, less educated, ethnic minority groups, no kids, rural & lower income
o   Net Evaders (2.3%) – internet is a waste. Don’t need/want. Embarrassed to learn how to use
o   Net Dropouts (4.9%) – tried but stopped. Too pricey, content concerns, technological issues. Lost access due to technology issues or when they moved, changed jobs or ill
o   Truly Unconnected (20%) – low income w/ little education. Socially unconnected, worried about content/crime, can’t afford, no computer, too complicated
o   Intermittent Users (1.8%) – are online but leave for extended time. worried about content/crime, tech issues, high cost, don’t think they have time or need it
·         2007: 1.4bn on internet (19% globe). Mostly developed nations à 5.4bn not online!

Do some of these reasons non-users give for not being connected seem like opportunities for smart marketing? Lots of psychological excuses.

 Inside The Internet Exchange Process:

Individual (traits,resources) <--Internet Exchange--> Outcomes (connect,create,enjoy,learn,trade)
              Marketing Stimuli can motivate the exchange process

·         Technological Context:
o   Home connection speeds – connection speed affects behavior (rich media, video, etc.)
o   Digital receiving devices
- Typical U.S. home has 26 different devices for media and communication. 
- Key is understanding which device YOUR customers prefer and targeting
                        Source: http://www.frankwbaker.com/mediause.htm

 ·         Social and Cultural Context:
o   Sophisticated consumers - Consumer has power. When & where they want to get info
- Consumer reviews vs. corporate advertising – who are you going to trust?
o   Info overload – hate of spam
o   Multitasking – lower attention spans
o   Home & work – boundaries disappearing
o   Online oxygen – consumers crave internet. Part of life.
o   Self-service – want to get info they need on their own and thru whatever device they prefer (track shipments, purchase, return, etc.)
o   Privacy and data security** - keep data confidential, ask permission before sending emails/alerts, protect from objectionable content
o   Online crime – viruses, hacking are major concerns

·         Legal Context:
o   Piracy laws

·         Individual Traits & Consumer Resources – beyond social & cultural trends
o   Demographics, positive attitude toward tech, online skill & experience (used to internet)
o   Online shoppers more goal orientated than experience orientated when shopping
- Go to site with specific product and/or price in mind
·         Appreciate breadth of product, no crowds, ease & info availability  (70% online shoppers are either price or convenience orientated)
o   Monetary Cost – discretionary income constraints and/or credit avail (big w/ teens)
o   Time Cost – make sure sites are well organized. Can get in and out = value. 24/7
o   Energy & Psychic Costs – How much work is needed to complete a transaction? See return policy clearly, no technical issues

·         Internet exchange – marketing stimuli can promote exchange (ex. Amazon recommendations)

·         Outcomes – What value do you get for your money, time and energy
o   Connect – Communication (email, IM, phone) or build relationships
o   Create – create and post your own content (Facebook, LinkedIn, etc.)
o   Enjoy – simple entertainment
o   Learn – Access info (directions, movie times, weather, etc.)
o   Trade – Transaction orientated activities (buy, sell, rent, etc.)

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