Chapter 4 Consumer Behavior, Internet Marketing, and Advertising

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18 Νοε 2013 (πριν από 3 χρόνια και 9 μήνες)

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Chapter 4

Consumer Behavior, Internet
Marketing, and Advertising

1.
Describe the factors that influence consumer
behavior online.

2.
Understand the decision
-
making process of consumer
purchasing online.

3.
Describe segmentation and how companies are
building one
-
to
-
one relationships with customers.

4.
Explain how consumer behavior can be analyzed for
creating personalized services.

5.
Discuss the issues of e
-
loyalty and e
-
trust in electronic
commerce (EC).

6.
Describe consumer market research in EC.

7.
Describe the objectives of Web advertising and its
characteristics.

8.
Describe the major advertising methods used on the
Web.

9.
Describe various online advertising strategies and
types of promotions.

10.
Describe permission marketing, ad management,
localization, and other advertising
-
related issues.

11.
Relate Web 2.0 and social networks to Internet
market research and advertising.


A GENERIC PURCHASING
-
DECISION MODEL


Five major phases:


Need identification


Information search


product brokering


Deciding what product to buy


merchant brokering


Deciding from whom (from what merchant) to buy a product


Alternative evaluation


Purchase and delivery


Postpurchase

behavior


FROM MASS MARKETING TO ONE
-
TO
-
ONE
MARKETING


Mass Marketing and Advertising


market segmentation


The process of dividing a consumer market into
logical groups for conducting marketing research
and analyzing personal information


one
-
to
-
one marketing (relationship marketing)


Marketing that treats each customer in a unique
way


personalization


The matching of services, products, and advertising
content with individual consumers and their
preferences


user profile


The requirements, preferences, behaviors, and
demographic traits of a particular customer


cookie


A data file that is placed on a user’s hard drive by a
remote Web server, frequently without disclosure or
the user’s consent, which collects information about
the user’s activities at a site



behavioral targeting


Targeting that uses information collected
about an individual’s Web
-
browsing behavior,
such as the pages they have visited or the
searches they have made, to select an
advertisement to display to that individual



Do You Know Enough About Your Visitors?




How Different Are Your Consumers?



Do You Have a diverse Products and Services portfolio?





collaborative filtering


A market research and personalization
method that uses customer data to predict,
based on formulas derived from behavioral
sciences, what other products or services a
customer may enjoy; predictions can be
extended to other customers with similar
profiles


CUSTOMER LOYALTY


e
-
loyalty


Customer loyalty to an e
-
tailer

or loyalty programs
delivered online or supported electronically


Business Intelligence and Analytical Software


SATISFACTION IN EC


Satisfaction is one of the most important success measures
in the B2C online environment


TRUST IN EC


trust


The psychological status of willingness to depend on
another person or organization


Observing Customers’ Movements Online


transaction log


A record of user activities at a company’s Web site


clickstream behavior


Customer movements on the Internet


Number of days since last visit


Speed of clickstream behavior


Number of products viewed, etc.


Web bugs


Tiny graphics files embedded in e
-
mail messages and in
Web sites that transmit information about users and
their movements to a Web server



spyware


Software that gathers user information over an Internet
connection without the user’s knowledge


clickstream data


Data that occur inside the Web environment; they
provide a trail of the user’s activities (the user’s
clickstream behavior) in the Web site


Web mining


Data mining techniques for discovering and extracting
information from Web documents; explores both Web
content and Web usage


LIMITATIONS OF ONLINE MARKET RESEARCH


Accuracy of responses


Loss of respondents because of equipment
problems


The ethics and legality of Web tracking


The difficulty in obtaining truly representative
samples


The lack of understanding of the online
communication process and how online
respondents think and interact in cyberspace


HOW TO OVERCOME THESE LIMITATIONS


Identify the intended target audience or demographic
so that the right kind of sampling can be performed


Anonymity for target respondents may encourage
them to be more truthful in their opinions


Concerns about the security of the information
transmitted should be minimized


Companies may outsource their market research to
large and experienced companies that have
specialized market research departments and
expertise


Advertising is an attempt to disseminate
information in order to affect buyer

seller
transactions


In traditional marketing, advertising was impersonal,
one
-
way mass communication that was paid for by
sponsors


interactive marketing


Online marketing, facilitated by the Internet, by which
marketers and advertisers can interact directly with
customers, and consumers can interact with
advertisers/vendors



ad views


The number of times users call up a page that has
a banner on it during a specific period; known as
impressions or page views


page


An HTML (Hypertext Markup Language) document
that may contain text, images, and other online
elements, such as Java applets and multimedia
files; may be generated statically or dynamically


click (click
-
through or ad click)


A count made each time a visitor clicks on an
advertising banner to access the advertiser’s Web
site


CPM (cost per thousand impressions)


The fee an advertiser pays for each 1,000 times a
page with a banner ad is shown


conversion rate


The percentage of clickers who actually make a
purchase


click
-
through rate


The percentage of visitors who are exposed to a
banner ad and click on it


click
-
through ratio


The ratio between the number of clicks on a
banner ad and the number of times it is seen by
viewers; measures the success of a banner in
attracting visitors to click on the ad


hit


A request for data from a Web page or file


visit


A series of requests during one navigation of a
Web site; a pause of a certain length of time ends
a visit


unique visit


A count of the number of visitors entering a site,
regardless of how many pages are viewed per visit


stickiness


Characteristic that influences the average length
of time a visitor stays in a site


Advertising Online and Its Advantages


Cost


Richness of format


Personalization


Timeliness


Location
-
basis


Linking


Digital branding


advertising networks


Specialized firms that offer customized Web
advertising, such as brokering ads and targeting
ads to select groups of consumers


BANNERS


banner


On a Web page, a graphic advertising display linked to
the advertiser’s Web page


keyword banners


Banner ads that appear when a predetermined word
is queried from a search engine
e.g

Google
Adwords


random banners


Banner ads that appear at random, not as the result of
the user’s action


Benefits and Limitations of Banner Ads


major benefit is users are transferred directly to an
advertiser’s site, often the shopping page


major disadvantage of banners is their cost


banner swapping


An agreement between two companies to each display the
other’s banner ad on its Web site


banner exchanges


Markets in which companies can trade or exchange
placement of banner ads on each other’s Web sites


POP
-
UP AND SIMILAR ADS


pop
-
up ad


An ad that appears in a separate window before, after,
or during Internet surfing or when reading e
-
mail


pop
-
under ad


An ad that appears underneath the current browser
window, so when the user closes the active window
the ad is still on the screen


E
-
MAIL ADVERTISING


NEWSPAPER
-
LIKE AND CLASSIFIED ADS


SEARCH ENGINE ADVERTISEMENT


URL Listing


Keyword Advertising


search engine optimization (SEO)


The craft of increasing site rank on search engines;
the optimizer uses the ranking algorithm of the
search engine (which may be different for
different search engines) and best search phrases,
and tailors the ad accordingly


Optimal Page Title Structure


Inclusion of Meta Descriptions


Include targeted content on the page


Verify no broken links


Include Sitemap


SEO
-
Friendly URL Structure


Inclusion of Alternate Image Tags


Do Cross browser testing


Check site speed



Almost 50% of online ad spending in 2010


Types:


Paid inclusion or rank


Inclusion in search results


Sponsored link areas


Keyword advertising


e.g. Google AdWords


Network keyword advertising (context advertising)


e.g. Google AdSense


Nearly ideal targeted marketing


Issues:


Disclosure of paid inclusion and placement
practices


Click fraud


Ad nonsense


GOOGLE

THE ONLINE ADVERTISING KING


ADVERTISING IN CHAT ROOMS


OTHER FORMS OF ADVERTISING


Advertising in Online Newsletters


Posting Press Releases Online


Video Ads


advergaming


The practice of using computer games to advertise
a product, an organization, or a viewpoint


social network advertising


Online advertising that focuses on social
networking sites


Types of Social Network Advertising


Direct advertising that is based on your network of
friends


Direct advertising placed on social network site e.g
facebook, youtube, etc


Indirect advertising by creating “groups” or “pages”


Sponsored Reviews by Bloggers


VIDEO ADS ON THE WEB AND IN SOCIAL
NETWORKING


Tracking the Success of an Online Video Campaign


Web video analytics


A way of measuring what viewers do when they watch an online
video


viral marketing


Word
-
of
-
mouth marketing by which customers
promote a product or service by telling others about it


Viral Marketing in Social Networks

http://www.milliondollarhomepage.com/


OTHER ADVERTISING STRATEGIES


affiliate marketing


A marketing arrangement by which an organization
refers consumers to the selling company’s Web site


Ads as a Commodity (Paying People to Watch Ads)


Selling Space by Pixels


Personalized Ads


Webcasting


A free Internet news service that broadcasts personalized
news and information, including seminars, in categories
selected by the user


ONLINE EVENTS, PROMOTIONS, AND
ATTRACTIONS


Live Web Events


mobile advertising


Ads sent to and presented on mobile devices


Mobile Marketing e.g Admob


PERMISSION ADVERTISING


spamming


Using e
-
mail to send unwanted ads (sometimes
floods of ads)


permission advertising (permission marketing)


Advertising (marketing) strategy in which
customers agree to accept advertising and
marketing materials (known as
opt
-
in)


SOME IMPLEMENTATION ISSUES


admediaries


Third
-
party vendors that conduct promotions,
especially large
-
scale ones


Ad Exchanges


Advertisement as a Revenue Model


Measuring Online Advertising’s Effectiveness


ad management


Methodology and software that enable
organizations to perform a variety of activities
involved in Web advertising (e.g., tracking
viewers, rotating ads)


localization


The process of converting media products
developed in one environment (e.g., country) to a
form culturally and linguistically acceptable in
countries outside the original target market


Automatic Versus Manual Web Page Translation


Using Internet Radio for Localization


Internet radio


A Web site that provides music, talk, and other
entertainment, both live and stored, from a variety of
radio stations


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