Chapter Six

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Chapter Six

• Marketing Research
• On The Internet

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The Internet and MR

• Who uses the Internet and for what purposes
• Primary data collection on the Net
• Secondary data collection on the Net

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The Global Village

• Marshal McLuhan (1911-1980) communications
  visionary
• Global Traffic Index
• http//www.internettrafficreport.com/main.htm
• Internet shopping statistics
• http//www.shop.org/learn/stats_intshop_general.as
  p
• Almost 55 million net shoppers (e.g. Cyber
  Monday)
• sales substantially higher than on Black Friday
  77 of e-tailers
• Jewelry, consumer electronics, gourmet food and
  furniture
• Consumer buying growth rate 53 (Forrester
  Research)
• Travel (8.6 bn.), electronics (8.2 bn.),
  groceries (6.5 bn.)
• 50 of HH have PCs and modems faster
  connections are in the works (e.g. T1 T3 lines)

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Internet Growth Statisticshttp//www.internetworl
dstats.com/emarketing.htm
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Understanding the Internet

• CommerceNet California-based industry
  association with over 600 organizations
  world-wide as members
• Nielsen Internet Demographics Survey (6th survey
  in 1999) telephone interview of 7200 persons to
  identify usage, behavioral patterns over time

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Profiles of Web users

• 48 women (up by 7 over the last two years)
• 25 users from the 31-40 age group
• Multi-faceted web usage greatest use for
  reference material, product information least
  use for online chats
• 21 are in the 50K 74K income group 12 in
  the over 100K group
• 52.6 bought books 48.5 bought computer
  hardware insurance and generic groceries online
  2.5

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Understanding the Internet

• I/PRO Web Trends software for measurement and
  analysis of website usage tracks times and dates
  the site is accessed region path taken, etc.
• Log file analysis
• Each accessing computer has a unique IP number

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Log File Analysis

• New area for marketing research
• Gather information about user without asking.
• Systematic measurement of web site visitors
• Log file monitors each accessed file and collects
  data about visitor.
• Important information for marketing research, web
  site planning, web advertising

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Log File Analysis

• How many users visit the site daily? Is that
  number growing?
• What paths do visitors take when they browse your
  Web site?
• From what countries do users connect? What
  cities? What states?
• From what departments do users connect to the
  Intranet Server?
• Which is the most active day of the week? The
  most active hour?
• What kind of information is accessed on your
  server?
• Which pages are the most popular?
• How many users are accessing each directory?
• Which forms are submitted more than others?

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Primary Research on the Web

• Online focus groups
• Cheaper, more convenient, equal participation
  from all respondents, minimal undue influence,
  greater honesty
• Non-verbal signals lost, interaction may not be
  as dynamic as in face-to-face groups
• The entire discussion is easily recorded on
  computer for future use
• Advanced software which can be programmed to
  identify discussed words and phrases and quantify
  the discussion

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Primary research on the web

• Online questionnaires
• Can be linked directly to an Excel / SPSS
  database (saves data entry errors)
• Respondents can be from all over the world
• Can force respondents to answer all questions
• Preceded by a recruiting email that gives the
  opt-out option

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Primary research on the web

• E-Mail surveys
• More primitive form of an online web survey
• Hit the reply button, check your responses and
  send
• Questionnaires delivered / responses received
  fast
• Less expensive and time-consuming than
  traditional surveys
• Usually read (and therefore answered) only by the
  recipient
• Allows respondent to respond at a convenient time
• Research shows that if respondents do not reply
  to the email within 12 hours of receipt, their
  probability of response will plummet

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Primary research on the web

• Online experiments
• More difficult to create the controlled
  environment needed for an experiment
• Pre-test and post-test questionnaires
• Manipulation administered on computer
• Online panel
• Cheaper, faster alternative to usual consumer
  panels.
• Respondents visit website and fill out
  questionnaire at frequent intervals or when
  requested.

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Secondary Research on the Web

• Internet (www)
• High speed, broad scope, low cost option for all
• Professional databases (Lexis-Nexis, EBSCO, etc.)
• High speed, accurate searches, structured
  information, narrow focus, high quality,
  expensive information
• Custom search services (e.g. Dow Jones)
• Wide searches in a specialized area for a fee

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Secondary Research on the Web

• Cyberatlas internet market size, growth,
  forecast and demographics
• Forrester Research New Media Research
• How is information priced on the web?
• How should web ads be priced? Cost / 1000 hits
  or click throughs.
• Address problems associated with Internet ad
  effectiveness measurement, e.g. exposures, hits,
  click throughs, etc.
• AdCount measures effectiveness of web ads
  through click throughs

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Secondary Research on the Web

• HERMES (University of Michigan) Project 2000
  (Vanderbilt University) GVU (Georgia Inst. of
  Tech.) Surveys
• Predicting consumer and corporate trends
• Generate marketing knowledge
• http//www.gvu.gatech.edu/user_surveys/survey-1998
  -10/
• Media Metrix
• Patented metering technology to measure internet
  user behavior in real time
• Captures in-depth demographics of a sample of
  over 100,000 users world-wide
• Usage can be linked to sample demographics

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Agent Technology

• Intelligent software that keeps an eye on topics
  and sites of importance for an individual. They
  deliver information and alert when developments
  require attention. Besides monitoring activities,
  agents can search the Web and combine the
  information of very different information
  sources.
• Competitive intelligence is prime area for agent
  activity (monitor web sites of competing
  manufacturers, dealers, and or retailers, collect
  corporate and product information)
• Example News monger?. Searches the
  approximately 200.000 daily postings on the
  Usenet.
• Searches are typically scheduled at night.

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Ethical dilemmas

• Sharing private information without consumers
  knowledge
• ESOMAR issues guidelines on information
  collection and sharing (voluntary co-operation,
  anonymity, prior disclosure of information
  sharing practices, disclose identity of
  researcher, describe survey methods and provide
  for opt-outs)
• http//www.esomar.org/
• TRUSTe audits privacy practices of sites and
  awards its logo as a seal of approval to sites
  which pass its test
• http//www.truste.org/
• 40 of consumers falsify their information on the
  web