Copyright © 2004 Pearson Education, Inc. Slide 7-1 E-commerce Kenneth C. Laudon Carol Guercio Traver business. technology. society. Second Edition.

Copyright © 2004 Pearson Education, Inc. Slide 7-1

E-commerce

Kenneth C. Laudon

Carol Guercio Traver

business. technology. society.Second Edition


Chapter 7

E-commerce Marketing Concepts


Changing Demographic Differences in Internet AccessTable 7.3, Page 363


Online ShoppersFigure 7.5, Page 375


What Consumers Buy on the Web – Small Ticket Items (December 2002)Figure 7.6,

Page 377


What Consumers Buy on the Web – Big Ticket Items (December 2002) (cont’d)Figure 7.6, Page 377


Intentional Acts: How Shoppers Find Vendors Online

Over 85% of shoppers find vendor sites by typing product or store/brand name into search engine or going directly to the site

Most (55%) online shoppers plan to purchase product within a week, either online or at a store

Most online shoppers (83%) have a specific item in mind


Shoppers’ Intention to PurchaseFigure 7.7, Page 378


Most Online Shoppers Are Focused BrowsersFigure 7.8, Page 378


Why More People Don’t Shop Online

There are a number of actions e-commerce vendors could take to increase the likelihood that shoppers and non-shoppers would purchase online more frequently, including:

Better prices Making comparison shopping easier Making it easier to return merchandise Providing better security for credit card and/or

personal information


Factors That Would Encourage More Online PurchasingTable 7.6, Page 380


Trust, Utility, and Opportunism in Online Markets

Trust and utility among the most important factors shaping decision to purchase online

Consumers are looking for utility (better prices, convenience)

Asymmetry of information can lead to opportunistic behavior by sellers

Consumers also need to trust merchants before willing to purchase

Sellers can develop trust by building strong reputations for honesty, fairness, delivery


Web Transaction Logs Built into Web server software Records user activity at a Web site WebTrends a leading log analysis tool Can provide treasure trove of marketing

information, particularly when combined with: Registration forms – used to gather

personal data Shopping cart database – captures all item

selection, purchase and payment data


Four Seconds from the Web Transaction Log of Azimuth-Interactive.comFigure 7.11, Page 391


Marketing Uses of Data from Web Transaction LogsTable 7.8, Page 392


Cookies Cookies: small text file that Web sites place

on a visitor’s client computer every time they visit, and during the visit as specific pages are accessed.

Cookies provide Web marketers with a very quick means of identifying the customer and understanding his or her prior behavior

Location of cookie files on computer depends on browser version


A Typical Netscape Cookie FileFigure 7.12,

Page 393


Web Bugs

Tiny (1 pixel) graphic files embedded in e-mail messages and on Web sites

Used to automatically transmit information about the user and the page being viewed to a monitoring server

Copyright © 2004 Pearson Education, Inc. Slide 7-1 E-commerce Kenneth C. Laudon Carol Guercio Traver business. technology. society. Second Edition.

Documents

delivery slide

mind slide

edition slide

pearson education

payment data slide

online shoppers figure

online consumers

online markets trust