1. E-MARKETING WEEK 2 Internet User Characteristics and Behaviour

2. OBJECTIVES  Discuss general statistics about the Internet population.  Describe the Internet exchange process and the technological, social/cultural and legal context in which consumers participate in this process.  Outline the broad individual characteristics and consumer resources that consumers bring to the online exchange.  Highlight the four main categories of outcomes that consumers seek from online exchanges. 7-2

3. THE CUSTOMER’S STORY A typical one-hour adventure in the life of a 25- year-old professional, Justin:  Listens to a podcast on his mobile phone while his TV is tuned to a soccer game and his PC is within reach.  Picks up his computer to find a blog mentioned during the podcast, sees a video on the blog and texts a friend about the video. 7-3

4. THE CUSTOMER’S STORY, CONT.  Justin searches for the video title on Google and finds a job posting on Vimeo, an online video-posting site.  He posts a link to the video and Vimeo site to his Twitter stream. Justin is the new consumer: a multitasker attending to different media simultaneously. How can a marketer capture dollars from these behaviors? 7-4

5. CONSUMERS IN THE 21 ST CENTURY 76% of U.S. consumers use the Internet. Less connected groups tend to be:  Older  Less educated  In ethnic minority groups  Childless  Rural  Lower income 7-5

6. CONSUMERS IN THE 21 ST CENTURY, CONT. In 2013, 39% of the global population had access to the Internet, roughly 2.7billion ppl out of 7.1billion ppl. Internet usage in developed nations has reached a critical mass, leading marketers to ask more questions about consumer behavior on the Internet. 7-6

7. INTERNET REACHES MATURITY: 1995- 2010 7-7

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9. THE INTERNET EXCHANGE PROCESS Exchange is a basic marketing concept.  It refers to the act of obtaining a desired object by offering something in return. Exchange occurs within the following contexts:  Technological  Social/cultural  Legal 7-9

10. THE ONLINE EXCHANGE PROCESS 7-10

11. TECHNOLOGICAL CONTEXT 70% of online Americans connect to the Internet at home with broadband. Broadband users enjoy more multimedia games, music, and entertainment than do those accessing from a mobile device or 56K modem. The typical U.S. home has 26 different electronic devices for media and communication. 7-11

12. U.S. DAILY MEDIA USE 7-12

13. SOCIAL AND CULTURAL CONTEXTS The cornerstones for attracting customers online:  Reputation  Relevance  Engagement 7-13

14. ENGAGING CUSTOMERS 7-14

15. LEGAL CONTEXT  Despite piracy laws, illegally used software abounds.  In spite of the Can-Spam law, the number of unsolicited emails has increased.  However, when the recording industry sued illegal music file downloaders, consumer behavior changed.  In 2002, 37% of online consumers shared music files.  Only 23% shared files in 2004. 7-15

16. INDIVIDUAL CHARACTERISTICS & RESOURCES Individual characteristics affect Internet use.  Demographics such as age, income, education, ethnicity, and gender.  Attitudes toward technology.  Online skill and experience.  Goal orientation. 7-16

17. CONSUMER RESOURCES Consumers perceive value as benefits minus costs. These costs constitute a consumer’s resources for exchange:  Monetary cost  Time cost  Energy and psychic costs 7-17

18. U.S. COMBINED HOME/WORK INTERNET USAGE 7-18

19. EXCHANGE OUTCOMES  There are 5 basic things that people do online:  Connect  Create  Enjoy  Learn  Trade  Each is ripe with marketing opportunity. 7-19

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21. CONNECTING ONLINE IN THE U.S. 7-21

22. CREATING & UPLOADING CONTENT IN THE U.S. 7-22

23. ENTERTAINMENT ONLINE IN THE U.S. 7-23

24. TOP 10 SEARCH TERMS FOR 2013 7-24 From Google: 1.Nelson Mandela 2.Paul Walker 3.iPhone 5S 4.Cory Monteith 5.Harlem Shake 6.Boston Marathon 7.Royal Baby 8.Samsung Galaxy S4 9.PlayStation 4 10.North Korea

25. LEARNING AND GETTING INFORMATION 7-25

26. TRADING ONLINE IN THE U.S. 7-26

27. WHAT ABOUT SOUTH EAST ASIA? 7-27 Malaysia, Indonesia, Philippines, Singapore

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