Lecture 9 E-Marketing Consumer Behavior Online Instructor: Hanniya Abid Assistant Professor COMSATS Institute of Information Technology

Objectives After this lecture, you will be able to: 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.

The Customer’s Story A typical one-hour adventure in the life of a 25-year- old professional: Tunes his iPod to the latest Diggnation podcast while his TV is tuned to a soccer game and his cell phone and PC are 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.

The Customer’s Story, cont. He 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. He is the new consumer: a multitasker attending to different media simultaneously. How can a marketer capture dollars from these behaviors?

Consumers in the 21st Century Many consumers use the Internet. Less connected groups tend to be: Older Less educated In ethnic minority groups Childless Rural Lower income

Consumers in the 21st Century, cont. Global population has internet access. Top ten countries account for 38% of all users and adoption rates range from 7-77%. Internet usage in developed nations has reached a critical mass, leading marketers to ask more questions about consumer behavior on the Internet.

Internet Reaches Maturity: 1995-2010

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

The Online Exchange Process

Technological Context More users 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 home has many different electronic devices for media and communication.

Social and Cultural Contexts The cornerstones for attracting customers online: Reputation Relevance Engagement

Engaging Customers

U.S. Daily Media Use

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.

The Online Exchange Process

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.

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

Combined Home/Work internet usage

The Online Exchange Process

Exchange Outcomes There are 5 basic things that people do online: Connect Create Enjoy Learn Trade Each is ripe with marketing opportunity.

Connecting Online

Creating & Uploading Content

Entertainment Online

Learning and Getting Information

Trading Online

Summary Internet and mobile communication has grown quickly than any other medium in history. Basic marketing concept of exchange applies. Cornerstones are: Reputation, Relevance & Engagement Costs that consumers exchange: money, time, energy and psychic costs.

And of course! There is one more thing Visit an online classified ads website such as olx.com.pk And then examine classified ads in your local newspaper What differences do you see? What are some benefits to customers fromeach option?