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

2. 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.

3. 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.

4. 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?

5. 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

6. 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.

7. Internet Reaches Maturity: 1995-2010

8. 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

9. The Online Exchange Process

10. 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.

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

12. Engaging Customers

13. U.S. Daily Media Use

14. Legal Context Despite piracy laws, illegally used software abounds.
In spite of the Can-Spam law, the number of unsolicited s 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.

15. The Online Exchange Process

16. 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.

17. 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

18. Combined Home/Work internet usage

19. The Online Exchange Process

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

21. Connecting Online

22. Creating & Uploading Content

23. Entertainment Online

24. Learning and Getting Information

25. Trading Online

26. 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.

27. 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?