Chapter 15

Question 1

Introduction to the Internet

Answer 1

• The internet is commonly defined as a globally interconnected network of computer networks.
• It enables the transfer of messages and transactions between connected computers worldwide.
• The internet is the physical network that links computers across the globe.
• It is a vast, global web of computers with no central management or ownership.
• The world wide web is a way of viewing and organising the information on the internet.
• The web consists of pages that are linked by using hyperlinks.
• Several web pages that are linked together and have a common subject area are referred to as a website.
• The first page of a website is called the home page.
• The internet and the web can be useful tools for organisations to reach their target markets and for consumers in their decision-making process.

Question 2

The advantages to organisations applying the web to facilitate consumer decision-making are discussed in detail in section 17.3.1 of your prescribed book.

Answer 2

• Its a Multi Media Environment
• It’s a Computer Environment
• It’s a Hyper Mediated Environment
• It’s a Flexible Environment

etc. See text book

Question 3

Internet, Web and E-commerce

Answer 3

The key point that you need to understand in this section is that there is a link between the definitions of e-commerce, the internet and the web. Also note the advantages of the web as a business tool. Pay attention to the information in your prescribed book on other technologies, which are also relevant in online consumer behaviour, but are not mentioned or discussed in this study unit. Can you think of any of these technologies off the top of your head?

Question 4

Internet and Consumer Behaviour

Answer 4

The importance of creating consumer-centred service, which will be of life-long value to an organisation, is discussed in the relevant section in the prescribed book. This section also highlights the paradigm shifts that organisations need to make as a result of the nature and functioning of the internet. As mentioned above, there are certain advantages to using the internet and other technologies that facilitate the consumer decision-making process. Figure 17.4 in the prescribed book illustrates the way in which the internet facilitates consumer decision- making, while section 17.4.3 discusses the process in detail.

Question 5

The following are some of these paradigm shifts (see detailed information in section 17.4.2 of the prescribed book):

Answer 5

• disintermediation and reintermediation
• personalisation and customisation
• shopping on demand
• consumers as coproducers
• blurring boundaries between consumer and business markets
• power shift towards consumers
• automation of consumption

Question 6

Online Consumer Behaviour

Answer 6

Understanding online consumer behaviour is an important part of the online marketing process, since many organisations shape their consumer behaviour in the online marketing environment according to the traditional marketing environment.

Consumers visit websites for different reasons and there are various types of online consumer as can be seen from the table below:

Question 7

Types of Online users and Descriptions

Answer 7

Focused information seekers

• Consumers who know exactly what they want.

Unfocused information seekers

• Consumers who are just browsing the internet.

Directed buyers Consumers

• who know exactly what to buy and what they are prepared to pay.

Bargain hunters Consumers

• who are actually looking for a good bargain.

Entertainment seekers Consumers

• who take pleasure in the time they spend online “surfing the net”.

Question 8

Refer to the relevant section in the prescribed book for detailed information on the following key concepts:

Answer 8

** • online shopping, isolation and integration

• abbreviated attention span
• instant gratification
• monitors
• shopping agents
• information availability