1. Marketing and Advertising in E-Commerce
Chapter 9
Marketing and Advertising
in E-Commerce

2. Learning Objectives
Describe factors that influence online consumer behavior.
Understand the decision-making process of online consumer purchasing.
Discuss the issues of e-loyalty and e-trust in electronic commerce (EC).
Understand segmentation and how companies are building one-to-one relationships with customers.
Explain how consumer behavior can be analyzed for creating personalized services.

3. Learning Objectives Understand consumer market research in e-commerce.
Describe the objectives of Web advertising and its characteristics.
Describe the major advertising methods used on the Web.
Learn mobile marketing concepts and techniques.
Describe various online advertising strategies and types of promotions.
Understand some implementation issues.

4. Learning About Online Consumer Behavior
A Model of Consumer Behavior Online
Influential factors
The attitude-behavior decision process
The Major Influential Factors
Consumer Characteristics
Merchant and Intermediary-Related Factors
Product/Service Factors
EC Systems
Environmental Factors

5. EC Model of Online Consumer Behavior

6. The Consumer Purchasing Decision Process
A Generic Purchasing-Decision Model
Need identification
Information search
*Product brokering
*Merchant brokering
Evaluation of alternatives
Purchase and delivery
Post-purchase activities

7. The Consumer Purchasing Decision Process
Players in the Consumer Decision Making Process
Initiator
Influencer
Decider
Buyer
User
Shopping Cart Abandonment

8. Loyalty, Satisfaction, and Trust in E-Commerce
*Customer Loyalty
*E-loyalty
Satisfaction in EC

9. Loyalty, Satisfaction, and Trust in E-Commerce
EC Trust Models
*Online trust
How to Increase Trust in EC
Improve Your Website
Objective Third-party Seals
Establish Trustworthiness
Other Methods For Facilitating Trust
*Reputation-based Systems
Online Word of Mouth

10. Mass Marketing, Market Segmentation, and Relationship Marketing
From Mass Marketing to One-to-One Marketing
Mass Marketing and Advertising
*Market Segmentation
Relationship (One-to-One) Marketing
*Relationship marketing
*One-to-one marketing
How One-to-One Relationships Are Practiced

11. From Mass Marketing to Segmentation to One-to-One

12. The One-to-One Marketing Cycle
Sources: Compiled from Greenberg and the authors’ experience

13. Personalization and Behavioral Marketing
Personalization in E-Commerce
*Personalization
*User profile
*Cookie
Web Cookies for Data Collection
Using Personalized Techniques to Increase Sales

14. Personalization and Behavioral Marketing
Behavioral Marketing and Collaborative Filtering
*Behavioral Targeting
*Collaborative Filtering
Other Methods
Rule-based filtering
Content-based filtering
Activity-based filtering
Legal and Ethical Issues in Collaborative Filtering
Social Psychology and Morphing in Behavioral Marketing
Use of Customer Database Marketing

15. Market Research for E-Commerce
Objectives and Concepts of Market Research Online
What Are Marketers Looking For in EC Market Research

16. Market Research for E-Commerce
Representative Market Research Approaches
Data Collection and Analysis
Online Surveys
Web-Based Surveys
Online Focus Groups
Hearing Directly from Customers
Data Collection in Social Networks and Other Web 2.0 Environments
Observing Customers’ Movements Online
*Transaction Logs
*Clickstream behavior
Cookies and *Web Bugs
*Spyware
Web Analytics and Mining
Clickstream Analysis
*Clickstream data
*Web mining

17. Market Research for E-Commerce
Limitations of Online Market Research and How to Overcome Them
Privacy Issues in Market Research
Biometric and Smartphone Marketing Helps Market Research
*Biometric
*Mobile market research

18. Web Advertising Overview of Web Advertising
*Interactive marketing
The Advertising Cycle
Basic Internet Advertising Terminology
*Ad views
*Button
*Click (ad click)
*CPM (cost per mille, i.e., thousand impressions)
*Conversion rate
*Click-through rate/ratio (CTR)
*Hit
*Landing page
*Page

19. The Advertising Cycle

20. Web Advertising Why Internet Advertising?
Advertising Online and Its Advantages
Cost
Media richness
Easy updating
Personalization
Location-based
Linking to shopping
Traditional Versus Online Advertisement

21. Online Advertising Methods: From E-Mail to SEO and Video Ads
Major Categories of Ads
Classified Ads
Display Ads
Interactive Ads
*Banners
*Random banners
*Static banners
*Pop-up banners
*Personalized banners
*Live banners
Benefits and Limitations of Banner Ads
*Banner swapping
*Banner exchanges

22. Online Advertising Methods: From E-Mail to SEO and Video Ads
Pop-Up and Similar Type Ads
*Pop-up ad
Pop-up Videos
* Advertising
* Marketing
Major Advantages and Limitations of Advertising
Implementing Advertising
Hoaxes
Fraud

23. Online Advertising Methods: From E-Mail to SEO and Video Ads
Search Engine Advertisement and Optimization
*Search Advertising
Keyword Advertising
URL Listing
*Search engine optimization (SEO)
Sponsored Ads (Paid Inclusion)
Google: The Online Advertising King
Google’s Major Advertisement Methods: AdWords and AdSense

24. The Process of Search Engine Optimization

25. Online Advertising Methods: From E-Mail to SEO and Video Ads
*Viral marketing (viral advertising)
Video Advertising
*Viral video
Consumer-Generated Videos
*Interactive Videos
Video Click-Throughs
Live Interactive Videos
*Advergaming (in-game advertising)
Augmented Reality Advertisement
Advertising in Chat Rooms and Forums

26. IAB Model of Video Advertising
Source: Interactive Advertising Bureau. “A Digital Video Advertising
Overview.” January iab.net/media/fi le/dv-report-v3.pdf (accessed July 2014). Used with permission.

27. Mobile Marketing and Advertising
Mobile Marketing and Mobile Commerce
*Mobile marketing
*Mobile advertising (m-advertising)
Mobile Interactive Advertising
Types of Mobile Ads
Short Message Ads
Location-Based Ads
Viral Mobile Marketing
Mobile Marketing and Advertising Campaigns

28. Process of Mobile Advertising

29. Mobile Marketing and Advertising
Mobile Marketing Implementation Guidelines
Tools to Support Mobile Advertisement
Mobile Ad Trends

30. Advertising Strategies and Promotions
*Permission Advertising
Other Advertising Strategies
Affiliate Marketing and Advertising
*Affiliate marketing
*Affiliate network
Paying People to Watch Ads
Selling Space by Pixels
Personalized Ads
Advertising as a Revenue Model
*Pay per click (PPC)
Choose-Your-Own-Ad Format

31. Advertising Strategies and Promotions
Online Events, Promotions, and Attractions
Live Web Events for Advertising
Localization in Advertising
*Localization
Developing an Online Advertising Plan
Set up advertising goals
Identify target customer
Choose media and advertising tools
Develop action and implementation plans
Develop performance measurement and monitoring plans
Execute plans and evaluate performance
Advertising on Facebook

32. Life Cycle of Advertising Plans

33. Managerial Issues Do we focus on value-creating customers?
Which Internet marketing/advertising channel(s) do we use?
What metrics do we use to guide advertisers?
What is our commitment to Web advertising?
Should we integrate our Internet and non-Internet marketing campaigns?
Who will conduct the market research?
Should we use mobile coupons?
What ethical issues should we consider in online marketing?

34. Summary Factors influencing online consumer behavior.
The online consumer decision-making process.
Increasing loyalty and trust.
Market segmentation and building one-to-one relationships with customers.
Online personalization.

35. Summary EC consumer market research.
Objectives and characteristics of Web advertising.
Major online advertising methods.
Mobile marketing.
Various advertising strategies and types of promotions.
Implementation topics.