1. CHAPTER 4 E-ENVIRONMENT

2. SLEPT Factors Macro-environment Social Legal Economic Political
Technological

3. SLEPT: Legal and Ethical
SLEPT: Social
Include the influence of consumer perceptions in determining usage of the Internet for different activities
SLEPT: Legal and Ethical
Determine the method by which products can be promoted and sold online
Governments, on behalf of society, seek to safeguard individuals right to privacy

4. SLEPT: Economic SLEPT: Political
Variations in the economic performance in different countries and region affects spending patterns and international trade
SLEPT: Political
National governments and transnational organizations have an important role in determining the future adoption and control of the Internet and the rules by which it is governed

5. SLEPT: Technological
Changes in technology offer new opportunities to the ways products can be marketed

6. Factors Governing Internet Adoption
Cost of access
Value proposition
Ease of use
Security
Fear of the unknown

7. Internet Access
Consumers and businesses who uses Internet vary according to countries
Within each country, adoption of the Internet vary significantly according to individual demographic characteristics
Broadband adoption

8. Why Personal Data are Valuable?
Contact information
Profile information
Behavioral information (on a single site)
Behavioral information (on multiple site)

9. Ethical Issues and Data Protection
Ethical issues concerned with personal information ownership have been usefully summarized by Mason (1986) into four areas:
Privacy – what information is held about the individual?
Accuracy – is it correct?
Property – who owns it and how can ownership be transferred?
Accessibility – who is allowed to access this information, and under which conditions?

10. Ethics – Fletcher’s View
Fletcher (2001) provides an alternative perspective, raising these issues of concern for both the individual and the marketer:
Transparency – who is collecting what information?
Security – how is information protected once collected by a company?
Liability – who is responsible if data is abused?

11. The Eight Principles for Data Protection
Fairly and lawfully processed;
Processed for limited purposes;
Adequate, relevant and not excessive;
Accurate;
Not kept longer than necessary;
Processed in accordance with the data subject's rights;
Secure;
Not transferred to countries without adequate protection.

12. Regulations on Privacy and Electronic communications
Privacy and Electronic Communications Regulations (PECR) Act
Applies to consumer marketing using or SMS text messages
Is an ‘opt-in’ regime
Requires an opt-out option
Does not apply to existing customers when marketing similar products
Contact details must be provided

13. Regulations on Privacy and Electronic Communications
The ‘From’ identification of the sender must be clear
Applies to direct marketing communications
Restricts the use of cookies

14. Viral e-mail Marketing
To reassure web users about threats to their personal information
TRUSTe
ISIS – a UK accreditation initiative

15. Checklist of Compliance
Follow privacy and consumer protection
Inform the user
Ask for consent for collecting sensitive personal data
Reassure customers by providing clear privacy statements
Let individual know when cookies are used
Never collect or retain personal data
Amend incorrect data
Only use data for marketing
Provide the option to stop receive information
Use appropriate security technology

16. Legal – Sparrows Eight Areas
Marketing your e-commerce business
Domain name registration
Using competitor names and trademarks in meta tags
Using competitor names and trademarks in pay- per-click advertising
Accessibility law 16

17. Legal – Sparrows Eight Areas
Forming an electronic contract
Making and accepting payment
Authenticating contracts concluded over the Internet
risks
Protecting Intellectual Property
Advertising on the Internet
Data protection.

18. Economic/Political, Competitive Factors
Ensuring companies competitive
Funding for education and technology
Promoting new technology e.g. broadband 12% in UK, 70% Taiwan, South Korea
Achieving government efficiencies
E-government – all UK services online by 2005
Singapore ‘Intelligent Island’
Taxation regimes
Legislation for offshore trading.

19. A framework describing the e-economy
Source: Booz Allen Hamilton (2002).

20. E-commerce and Globalization
The increase of international trading and shared social and cultural values
Language and cultural understanding
English becoming the lingua franca of commerce
Tailoring e-commerce services for individual countries or regions

21. Political Factors Promoting the benefits of adopting the Internet
Enacting legislation to protect privacy or control taxation
Providing guidelines and assistance for compliance with legislation
Setting up international bodies to coordinate the Internet

22. Technological Issues Need to be able to assess new innovation
Rate of change
Which new technologies should we adopt?
Monitoring for new techniques
Evaluation – are we early adopter
Re-skilling and training
Are our systems secure?