1. Buyers and Online Behaviors Chapter Three

2. Copyright © Houghton Mifflin Company. All rights reserved.3–23–2 Chapter Three Learning Objectives To identify the types of buyers who are online and their distinguishing characteristics To learn what buyers are doing online To identify who is not online and why To understand other types of behaviors that occur online and why they interest internet marketers

3. Copyright © Houghton Mifflin Company. All rights reserved.3–33–3 Online Buyer Types On the web marketers can Reach previously inaccessible buyers Make offers 24/7/365 Sell more products Reduce operating costs Save transaction time and expense Develop new revenue streams

4. Copyright © Houghton Mifflin Company. All rights reserved.3–43–4 Online Buyer Types (cont’d) Buyers are Personal use consumers Enterprises

5. Copyright © Houghton Mifflin Company. All rights reserved.3–53–5 Online Buyer Types (cont’d) Buyers are B2C - business to consumer B2B - business to business B2P - business to government, public sector C2C - consumer to consumer

6. Copyright © Houghton Mifflin Company. All rights reserved.3–63–6 Online Buyer Types (cont’d) Difficult to characterize the “average” online consumer Changes over time Today, they are –Younger, more children and students, slightly more women than men, growing numbers of ethnic minorities, connecting more from home, more international

7. Copyright © Houghton Mifflin Company. All rights reserved.3–73–7 Online Buyer Types (cont’d) Enterprises Federal, state, local governments Colleges and universities Hospitals, medical clinics, doctors, health care organizations Churches, religious organizations Other groups

8. Copyright © Houghton Mifflin Company. All rights reserved.3–83–8 What Buyers Are Doing Online Communicating Seeking information Gaming and seeking entertainment Purchasing

9. Copyright © Houghton Mifflin Company. All rights reserved.3–93–9 Who Is Not Online Digital divides between –Those online and not online –Richer and poorer nations –Geographic regions, urban and rural areas –Income groups –Education levels –Younger and older consumers –General U.S. population and Native Americans Others are offline by choice Consumers with disabilities offline not by choice

10. Copyright © Houghton Mifflin Company. All rights reserved.3–10 Who Is Not Online (cont’d) Others are offline by choice –Technophobes, people who fear loss of privacy or safety, neo-Luddites Consumers with disabilities offline not by choice

11. Copyright © Houghton Mifflin Company. All rights reserved.3–11 Other Behaviors Social isolation Addictive and impulse control behaviors

12. Copyright © Houghton Mifflin Company. All rights reserved.3–12 Other Behaviors (cont’d) Complaints Anticorporate activism Community building

13. Copyright © Houghton Mifflin Company. All rights reserved.3–13 Current Effects Of The Internet Economy Access Speed Reduced inventory costs Reduced supply costs Worldwide exposure Pricing transparency Reduced intermediary costs Customer satisfaction

14. Copyright © Houghton Mifflin Company. All rights reserved.3–14 Current Effects Of The Internet Economy (cont’d) Tomorrow's internet Faster and more stable More secure Virtual reality New jobs and occupations Wireless Speech commands Multiple concurrent web access Barrier-free