2. Copyright © 2004 Pearson Education, Inc. Slide 7-1 E-commerce Kenneth C. Laudon Carol Guercio Traver business. technology. society. Second Edition

3. Copyright © 2004 Pearson Education, Inc. Slide 7-2 Chapter 7 E-commerce Marketing Concepts

4. Copyright © 2004 Pearson Education, Inc. Slide 7-3 Changing Demographic Differences in Internet Access Table 7.3, Page 363

5. Copyright © 2004 Pearson Education, Inc. Slide 7-4 Online Shoppers Figure 7.5, Page 375

6. Copyright © 2004 Pearson Education, Inc. Slide 7-5 What Consumers Buy on the Web – Small Ticket Items (December 2002) Figure 7.6, Page 377

7. Copyright © 2004 Pearson Education, Inc. Slide 7-6 What Consumers Buy on the Web – Big Ticket Items (December 2002) (cont’d) Figure 7.6, Page 377

8. Copyright © 2004 Pearson Education, Inc. Slide 7-7 Intentional Acts: How Shoppers Find Vendors Online Over 85% of shoppers find vendor sites by typing product or store/brand name into search engine or going directly to the site Most (55%) online shoppers plan to purchase product within a week, either online or at a store Most online shoppers (83%) have a specific item in mind

9. Copyright © 2004 Pearson Education, Inc. Slide 7-8 Shoppers’ Intention to Purchase Figure 7.7, Page 378

10. Copyright © 2004 Pearson Education, Inc. Slide 7-9 Most Online Shoppers Are Focused Browsers Figure 7.8, Page 378

11. Copyright © 2004 Pearson Education, Inc. Slide 7-10 Why More People Don’t Shop Online There are a number of actions e-commerce vendors could take to increase the likelihood that shoppers and non-shoppers would purchase online more frequently, including: Better prices Making comparison shopping easier Making it easier to return merchandise Providing better security for credit card and/or personal information

12. Copyright © 2004 Pearson Education, Inc. Slide 7-11 Factors That Would Encourage More Online Purchasing Table 7.6, Page 380

13. Copyright © 2004 Pearson Education, Inc. Slide 7-12 Trust, Utility, and Opportunism in Online Markets Trust and utility among the most important factors shaping decision to purchase online Consumers are looking for utility (better prices, convenience) Asymmetry of information can lead to opportunistic behavior by sellers Consumers also need to trust merchants before willing to purchase Sellers can develop trust by building strong reputations for honesty, fairness, delivery

14. Copyright © 2004 Pearson Education, Inc. Slide 7-13 Web Transaction Logs Built into Web server software Records user activity at a Web site WebTrends a leading log analysis tool Can provide treasure trove of marketing information, particularly when combined with:  Registration forms – used to gather personal data  Shopping cart database – captures all item selection, purchase and payment data

15. Copyright © 2004 Pearson Education, Inc. Slide 7-14 Four Seconds from the Web Transaction Log of Azimuth-Interactive.com Figure 7.11, Page 391

16. Copyright © 2004 Pearson Education, Inc. Slide 7-15 Marketing Uses of Data from Web Transaction Logs Table 7.8, Page 392

17. Copyright © 2004 Pearson Education, Inc. Slide 7-16 Cookies Cookies: small text file that Web sites place on a visitor’s client computer every time they visit, and during the visit as specific pages are accessed. Cookies provide Web marketers with a very quick means of identifying the customer and understanding his or her prior behavior Location of cookie files on computer depends on browser version

18. Copyright © 2004 Pearson Education, Inc. Slide 7-17 A Typical Netscape Cookie File Figure 7.12, Page 393

19. Copyright © 2004 Pearson Education, Inc. Slide 7-18 Web Bugs Tiny (1 pixel) graphic files embedded in e- mail messages and on Web sites Used to automatically transmit information about the user and the page being viewed to a monitoring server