CHAPTER 17 INTERNATIONAL MARKETING IN E-COMMERCE

Chapter Objectives  Dissimilarities and similarities of international electronic marketing process.  E-Commerce for international applications.  Demographic and preferences of international Web users.

International Market for Web Products  Importance of Marketing Research:  Web user profiles country by country  Web usage and internet home penetration by foreign consumers  Levels of interest in online shopping  Cost of access time and computer equipment.  Cultural factors on product and services usage and online purchase propensity.

Consumer Protection laws  Assessing International e-commerce potential:  Monitoring currency fluctuations in foreign markets.  Varying country regulations on Web site content.  Allowable types of advertising or sales promotions.  Levels of literacy in developing countries.  Expectations in international e-commerce applications:  Country by country review of Web user profiles.  Internet home penetration.  Levels of interest in online shopping in international markets.

Differences Between Each Market  Transportation for distribution  Traditional media outlet for primary message delivery.  Standard of living.  Strength of financial systems  Availability of reliable credit sources.  Availability of credit cards and its acceptance in online shopping.  Levels of discretionary income.  National and local taxes.

Demographic Information on European and World Markets  United Nations’ resources.  U.S. Department of Commerce  International Chamber of Commerce  Private sources: 

User Survey  In Europe, on line users are on internet 1-3 years while in the U.S.A. they started a year ago.  46% of people have Web page.  European respondents (67%) were more likely to have created a Web page than U.S. respondents (43%).  Online penetration is important for market segmentation.  Internet familiarity must be check before entering foreign online market.

Difficulties and Challenges  Patience will be essential:  International marketing is uncertain/risky for many businesses.  Many people may be uncomfortable because they are unfamiliar with foreign cultures.  Government support is different in different countries.  Taxation, consumer protection, and fraudulent operations should be controlled.  Self-regulation will be expected in every foreign country.  Internet, media and telecommunication system should be international.

Issues Effecting Electronic Commerce in International Markets  Taxation.  Data security.  Online privacy.  Liability for online content.  Intellectual property-right.  Technical concerns about the internet.  Ethical issues.  Consumer confidence in e-commerce transactions.

Internet Application in Europe