Lecture 5 Flashcards
Difference between Internet choice behaviour and supermarket choice behaviour
Internet / Supermarket:
- Intent unclear / store visit reveals purchase intention
- Active / Passive
- Dynamic / Static
Clickstream data
Clickstream data are defined as the electronic record of Internet usage collected by Web servers or third-party servers
Site centric
detailed records of what visitors do when navigating and interacting with a specific site (offline: compare to …)
User centric
detailed records of online behavior tracing across sites (offline: …)
Sponsored search advertising
A firm pays a certain fee to a search engine operator such as Google or Yahoo to display its ad(s) in the form of a link along with organic search results.
Search Engine Optimization
Labels efforts of firms that aim to improve the ranking of the ad/link in the unsponsored search results. The display of the unsponsored (organic) search results is free of charge, whereas advertisers pay for each click on their ads that appear among the
sponsored (paid) search results
Funnel stages
Visiting -> shopping -> picking -> buying -> returning
Analyses beyond counting
› Browsing and site usage behavior on the internet
› Shopping behavior on the Internet
› The Internet’s role and efficacy as a new medium for advertising and persuasion
E-commerce purpose of site
› E-commerce sites might want to speed up the process from visiting to purchasing
• Decrease duration visit
• Learning effects relevant
• Previous findings can be used
Entertainment website
› Entertainment and media websites may want to slow down the process
• Increase duration visit
• How?
SHOPPING BEHAVIOR ON THE INTERNET
› Focus on understanding the evolution of purchase behavior.
› Key IV(s): experience with decision aids, e.g., ranking tools and wish lists.
› Key managerial issues addressed in the paper:
• What types of decision aids may enhance loyalty?
• What types of decision aids may mitigate price competition?
Morphing
Morphing involves automatically matching the basic look and feel of a website, not just the content, to cognitive styles.”
Key idea of website morphing
› Particular (advanced) type of targeting.
› Combination of experimentation and analytics.
› In the experimentation part:
• Exploration
• Exploitation
› Methods: Bayesian updating and Dynamic programming.
Cognitive styles
- leader vs follower
- analytic/visual vs holistic/verbal
- impulsive vs deliberative
- (active) reader vs (passive) listener
Balancing Exploration & Exploitation
Optimal morph of a website determined by a dynamic program which balances exploration and exploitation.
