EMarketing: Chapter 7

1
E-MarketingChapter 7
2
Consumer Behavior

• Exchange - a basic marketing concept that refers
  to the act of obtaining a desired object from
  someone by offering something in return. When
  consumers purchase a product, they are exchanging
  money for desired goods or services.

E-Marketing (2006). Strauss, El-Ansary and Frost.
Pg 172.
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Consumer Behavior

• But, how does this relate to E-Marketing?

E-Marketing (2006). Strauss, El-Ansary and Frost.
Pg 172.
4
Consumer Behavior

• World Internet Usage Statistics News and
  Population Stats

5
Consumer Behavior
WORLD INTERNET USAGE AND POPULATION
STATISTICS World Regions Population
Population Internet Usage, Population
Usage Usage
( 2007 Est.) of World Latest
Data ( Penetration ) of World
Growth


2000-2007 Africa
941,249,130 14.2
44,361,940 4.7
3.4 882.7 Asia
3,733,783,474 56.5
510,478,743 13.7
38.7 346.6 Europe
801,821,187 12.1 348,125,847
43.4 26.4
231.2 Middle East 192,755,045
2.9 33,510,500 17.4
2.5 920.2 North
America 334,659,631 5.1
238,015,529 71.1
18.0 120.2 Latin America/
Caribbean 569,133,474 8.6
126,203,714 22.2
9.6 598.5
Oceania/ Australia 33,569,718 0.5
19,175,836 57.1
1.5 151.6
WORLD TOTAL 6,606,971,659 100.0
1,319,872,109 20.0
100.0 265.6

http//www.internetworldstats.com/stats.htm
6
Consumer Behavior

• Technical Context Broadband
• (OECD Organization for Economic Co-operation
  and Development)
• The main highlights for June 2007 are 
•   Denmark, the Netherlands, Switzerland, Korea,
  Norway and Iceland lead the OECD  in broadband
  penetration, each with over 29 subscribers per
  100 inhabitants.
• The strongest per-capita subscriber growth over
  the year was in Ireland, Germany, Sweden,
  Australia, Norway, Denmark and Luxembourg. Each
  country added more than 5 subscribers per 100
  inhabitants during the past year.
• Operators in several countries continue
  upgrading subscriber lines to fibre.
  Fibre-to-the-home (FTTH) and Fibre-to-the-building
  (FTTB) subscriptions now comprise 8 of all
  broadband connections in the OECD, up from 7 one
  year ago, and the percentage is growing. Fiber
  connections account for 36 of all broadband
  subscriptions in Japan, and 31 in Korea.
• The United States is the largest broadband
  market in the OECD
• with 66.2 million subscribers. US
  broadband subscribers now
• represent 30 of all broadband
  connections in the OECD.

http//www.oecd.org/document/60/0,3343,en_2649_201
185_39574076_1_1_1_1,00.html
7
Consumer Behavior

• Broadband subscribers per 100 inhabitants, by
  technology, June 2007
• DSL Cable Fibre/LAN
  Other Total  Rank  Total Subscribers 
• Denmark 21.3 9.7 2.9
  0.4 34.3 1 1 866
  306
• Netherlands 20.4 12.7 0.4
  0.0 33.5 2 5 470
  000
• Switzerland 20.5 9.3 0.0
  0.9 30.7 3
  2 322 577
• Korea  10.1 10.6 9.2
  0.0 29.9  4
  14 441 687
• Norway  22.7 4.5 1.8
  0.7 29.8  5
  1 388 047
• Iceland 29.0 0.0 0.2
  0.6 29.8 6
  90 622
• Finland 24.4 3.7 0.0
  0.8 28.8 7
  1 518 900
• Sweden 17.9 5.6 4.6
  0.4 28.6 8
  2 596 000
• Canada 11.9 12.9 0.0
  0.1 25.0 9 
  8 142 320
• Belgium 14.5 9.2 0.0
  0.1 23.8 10
  2 512 884
• U. K.   18.4 5.3 0.0
  0.0 23.7 11
  14 361 816
• Australia 18.3 3.4 0.0
  0.9 22.7 12
  4 700 200
• France 21.4 1.1 0.0
  0.0 22.5 13
  14 250 000
• Luxembourg 19.8 2.4 0.0
  0.0 22.2 14
  105 134
• U. S.  9.3 11.5 0.6
  0.7 22.1  15
  66 213 257
• Japan  10.8 2.9 7.6
  0.0 21.3 16
  27 152 349

http//www.oecd.org/document/60/0,3343,en_2649_201
185_39574076_1_1_1_1,00.html
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Consumer Behavior
Demographics of Internet Users (http//www.pewint
ernet.org/trends/User_Demo_6.15.07.htm) Use the
Internet Total Adults 71 Women
70 Men 71 Age 18-29
87 30-49 83 50-64 65 65
32 Race/ethnicity White, Non-Hispanic
73 Black, Non-Hispanic
62 English-speaking Hispanic 78
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Consumer Behavior
Geography Urban 73 Suburban 73 Rural
60 Household Income Less than
30,000/yr 55 30,000-49,999
69 50,000-74,999 82 75,000
93 Educational Attainment Less
than High School 40 High School
61 Some College 81 College
91 Source Pew Internet
American Life Project, February 15 March 7,
2007 Tracking Survey. N2,200 adults, 18 and
older. Margin of error is 2 for results based
on the full sample and 3 for results based on
internet users.
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Consumer Behavior
Digital Divide - inequalities in access to
and utilization of information and communication
technologies (ICT). - The World Bank
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Consumer Behavior
Social and Cultural Contexts Information
overload Time poverty Home and work I want what I
want when I want it Online Oxygen Self-service
empowered customers Sophisticated
consumers Privacy and data security Online crime
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Consumer Behavior

• Legal Context
• Ethical and legal factors have a
• quantifiable affect on consumers
• Illegal software
• CAN-SPAM Act
• RIAA sued thousands of
• illegal music file download consumers

13
Consumer Behavior

• Individual Characteristics and Resources
• Individual Differences Internet users have
  several characteristics that nonusers do not.
  Similarly, users differ in their needs and
  desires
• Demographics
• Positive attitude
• Online skill and experience
• Online shoppers ten to be more goal oriented
• Online shoppers have one of these
• traits
• Price conscious
• Wont turn down a bargain

14
Consumer Behavior

• Consumer Resources
• Value benefits costs
• Monetary cost discretionary income
• Credit cards
• Debit cards
• Electronic checks (digital money)
• Paypal
• CODs
• Time cost
• Energy and Psychic Costs

15
Consumer Behavior

• Internet Exchange the actual moment when
  exchange occurs over the Internet
• Exchange Outcomes
• Connect
• Enjoy
• Learn
• Trade