Chapter 6 Flashcards
About half of the American population access the internet by using…
Mobile smartphones or tablets
Overall, there remains a strong relationship between ____, ____, ______, ______ and internet usage
Age, Income, Ethnicity, Education
Once firms have an understanding of who is online, they need to focus on ……
how consumers behave online
Consumer behaviour is a…
social science discipline that attempts to model and understand the behavior of humans in the marketplace
Culture is the broadest factor in consumer behavior because it shapes …
basic human values, wants, perceptions and behaviours
Subcultures are
Subset of cultures that form around major social differences
It is important to understand different subcultures because…
It allows a business to distinctively target a group of individuals EX. Toyota using the internet targeting hispanic customers
A direct reference group is
a persons family, profession, occupation, religion, neighbourhood and school (the offline face to face world)
An indirect reference group is
One’s life cycle stage, social class, and life style group
Opinion leaders (viral influencers)
Influence the behaviour of others through their personality, skills or other factors (Adam has his charm and he is an opinion leader because we trust his advice regarding what is good and bad)
Lifestyle group
a unique kind of reference group that has an integrated pattern of activities, interests and opinions
A psychological profile is a
set of needs, drives, motivations, perceptions and learned behaviours
The number of internet Users online in the U.S in 2011 was around….
232 million
The rate of growth in the U.S has begun to…
Slow down
Both _____ and __________ are increasing with around 77% of adult users in the United States logging on in a typical day….
Intensity and scope of use
Some demographic groups have a much ______ percentages of online usage than other groups
Higher
The more time individuals spend using the internet, the less time they spend….
using traditional media
Factors that impact buying behaviour include
Cultural Factors
Social Factors
Psychological Factors
There are five stage in the consumer decision process:
Awareness of need Search for more information Evaluation of Alternatives The Actual Purchase decision Post Purchase contact with the firm
The online consumer decision process is basically the same with the addition of two new factors:
Web site capabilities
Consumer Clickstream behaviour - STALKING WHAT YOU CLICK ON
The key objective of internet marketing is to use the web and establish…
A positive, long-term relationship with customers to create a competitive advantage with customers
List some factors that e-commerce vendors could take to increase customer repetition
Better security of credit card, privacy and personal information, lower shipping costs and easy returns
Firms within an industry compete with one another on four dimensions:
Differentiation, costs, focus, and scope
Competitive markets are ones with lots of
Substitute products, easy entry, low differentiation among suppliers and strong bargaining power of customers and suppliers
Brand Equity is the…
estimated value of the premium customers are willing to pay for using a branded product compared to unbranded competitors
Web transaction logs -
records that document user activity at a website
Tracking files
Various files like cookies, web beacons, flash cookies and apps that follow users and track their behaviour as they visit sites across the entire web
Databases, data warehouses, data mining and profiling
Technologies that allow marketers to identify exactly who the online customer is and what they want and then to present the customer with exactly what they want, when they want it and for the right price
CRM - Systems
A repository of customer information that records all the contacts a customer has with a firm and generates a customer profile available to everyone in the firm who has a need to “know the customer”
Internet Marketing strategies for market entry - new firms include
pure clicks/first movers, bricks and clicks/alliances,
Existing firm strategies include
Pure clicks/ fast-follwer and mixed bricks and clicks/ brand extender
What are some online techniques for straightening customer relations
one to one marketing, customization and customer co production, customer service - Live chat, FAQ, intelligence agents automated response systems
Online pricing strategies include offering…
products and services for free (freemium maybe), versioning, bundling and dynamic packaging
