1. Electif 621 E-Business and m-Business Antoine Harfouche

2. Session 6 e-Cons Behavior

3. Agenda A General ModelA General Model Online Consumer Decision ProcessOnline Consumer Decision Process Eye trackingEye tracking

4. Business Strategy Managerial vision Marketing Strategy Website Logistics

5. Consumer behavior A General Model

6. A General Model of Consumer Behavior

7. Online Consumer behavior

8. Online Consumer Decision Process Adds two new factors: –Web site capabilities -- the content, design, and functionality of a site –Consumer clickstream behavior -- the transaction log that consumers establish as they move about the Web and through specific sites

9. What Consumers Buy Online Two groups roughly divide online sales: –Big ticket items: $500 plus Travel, computer hardware, consumer electronics Expanding –Small ticket items: On average, $100 or less Apparel, books, office supplies, software, etc. Sold by first movers –Physically small –High margin items –Broad selection of products available

10. Learning about Consumer Behavior Online

11. Trust, Utility/personalization, and Satisfaction in Online Markets Two most important factors shaping decision to purchase online: 1.Trust: Asymmetry of information can lead to opportunistic behavior by sellers Sellers can develop trust by building strong reputations for honesty, fairness, delivery 2.Utility/personalization: Better prices, more adapted, convenience, speed… 3.Ease of use These factors can lead to Satisfaction

12. Trust in EC Trust The psychological status of willingness to depend on another person or organization –How to increase trust in EC Affiliate with an objective third party Establish trustworthiness

13. Trust in EC

14. Key Features of the Internet Audience Socio-Demographics and access –some demographic groups have higher percentage of Internet users –different patterns of usage exist across groups and ages Ethnicity –Variation across ethnic groups not as wide as age groups Education –82% of individuals with a college degree online –3% with high school education of less online Gender –Men accounted for the majority of Internet users at first –Women now outnumber men online Lifestyle impact –Intense Internet usage may cause a decline in traditional social activities –Social development of children using Internet intensively instead of engaging in face-to-face interactions or undirected play out of doors may also be negatively impacted

15. Satisfaction in EC

16. A Model of Online Consumer Behavior

17. Clickstream factors include: –Number of days since last visit –Speed of clickstream behavior –Number of products viewed during last visit –Number of pages viewed –Supplying personal information –Number of days since last purchase –Number of past purchases

18. Acquisition, Conversion, and Retention of Customers Acquisition cost Money a site spends to draw one visitor to the site Funnel model Very similar to the customer life-cycle model Conversion Converting a first-time visitor into a customer Conversion cost Cost of inducing one visitor to make a purchase, sign up for a subscription, or register Retained customers Customers who return to the site one or more times after making their first purchases

19. Eye tracking

20. Definition Eye tracking is the measurement of eye activity  Where do we look? What do we ignore? When do we blink? How does the pupil react to different stimuli? => evaluated by a sofware Eye tracking and e-marketing

21. Fields of application Packaging Analysis- Impact- Interpretation Press analysis consumption Advertising Analysis- Impact- Interpretation ( press, billsticking…) Web information analysis (emails, websites, web pages…)

22. Advantages for the firms ? Improve considerably firms’ communication support efficiency Anticipate the communication campaigns which will not work because not accurated/ well built Avoid waisting money + increase lucks of success and rentability

23. Improve and boost your website The Process Recruitment and test of the participants (different targets): allow the participants to interact naturally with the website Study: Eye movement data and click behaviour recorded during the interaction (follow-up questionnaires) Results (example): –Visual attention to online advertisements frequent, but brief. –Analysis of viewing time: attention to some animated flash advertisements did not last long enough for the primary message and branding to be revealed. Recommendation: Average viewing times provided to the client so that developers could tailor the flash animation of their advertisements to the visual behavior of the user

24. Improve and boost your website The Benefits See what the users see Understand the design with a more objective view Which blocks of text are engaging and which are not Examples: –Identify several previously undetected usability issues on the website –A website new design : Identifiy the problems (placement of buttons, confusion over labelling …) and the successful aspects of the redesign.

25. Concrete examples:

26. The « golden triangle » It represents the place where people tend to watch first

27. Golden triangle 2 1 1 : 85 à 100 % 2 : 65 à 85 % 3 : 45 à 65 % 4 : < à 45% 2 3 4 3

28. What should not be done:

29. Example