2SLEPT Factors Macro-environment Social Legal Economic Political Technological
3SLEPT: Legal and Ethical SLEPT: SocialInclude the influence of consumer perceptions in determining usage of the Internet for different activitiesSLEPT: Legal and EthicalDetermine the method by which products can be promoted and sold onlineGovernments, on behalf of society, seek to safeguard individuals right to privacy
4SLEPT: Economic SLEPT: Political Variations in the economic performance in different countries and region affects spending patterns and international tradeSLEPT: PoliticalNational 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
5SLEPT: TechnologicalChanges in technology offer new opportunities to the ways products can be marketed
6Factors Governing Internet Adoption Cost of accessValue propositionEase of useSecurityFear of the unknown
7Internet AccessConsumers and businesses who uses Internet vary according to countriesWithin each country, adoption of the Internet vary significantly according to individual demographic characteristicsBroadband adoption
8Why Personal Data are Valuable? Contact informationProfile informationBehavioral information (on a single site)Behavioral information (on multiple site)
9Ethical 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?
10Ethics – 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?
11The 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.
12Regulations on Privacy and Electronic communications Privacy and Electronic Communications Regulations (PECR) ActApplies to consumer marketing using or SMS text messagesIs an ‘opt-in’ regimeRequires an opt-out optionDoes not apply to existing customers when marketing similar productsContact details must be provided
14Viral e-mail Marketing To reassure web users about threats to their personal informationTRUSTeISIS – a UK accreditation initiative
15Checklist of Compliance Follow privacy and consumer protectionInform the userAsk for consent for collecting sensitive personal dataReassure customers by providing clear privacy statementsLet individual know when cookies are usedNever collect or retain personal dataAmend incorrect dataOnly use data for marketingProvide the option to stop receive informationUse appropriate security technology
16Legal – Sparrows Eight Areas Marketing your e-commerce businessDomain name registrationUsing competitor names and trademarks in meta tagsUsing competitor names and trademarks in pay- per-click advertisingAccessibility law16
17Legal – Sparrows Eight Areas Forming an electronic contractMaking and accepting paymentAuthenticating contracts concluded over the InternetrisksProtecting Intellectual PropertyAdvertising on the InternetData protection.
18Economic/Political, Competitive Factors Ensuring companies competitiveFunding for education and technologyPromoting new technology e.g. broadband 12% in UK, 70% Taiwan, South KoreaAchieving government efficienciesE-government – all UK services online by 2005Singapore ‘Intelligent Island’Taxation regimesLegislation for offshore trading.
19A framework describing the e-economy Source: Booz Allen Hamilton (2002).
20E-commerce and Globalization The increase of international trading and shared social and cultural valuesLanguage and cultural understandingEnglish becoming the lingua franca of commerceTailoring e-commerce services for individual countries or regions
21Political Factors Promoting the benefits of adopting the Internet Enacting legislation to protect privacy or control taxationProviding guidelines and assistance for compliance with legislationSetting up international bodies to coordinate the Internet
22Technological Issues Need to be able to assess new innovation Rate of changeWhich new technologies should we adopt?Monitoring for new techniquesEvaluation – are we early adopterRe-skilling and trainingAre our systems secure?