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What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
What Consumers Shop For And Buy Online
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What Consumers Shop For And Buy Online

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  • 1. E-commerce Kenneth C. Laudon Carol Guercio Traver business. technology. society. Third Edition
  • 2. Chapter 7 E-commerce Marketing Concepts
  • 3. NetFlix Develops and Defends Its Brand Class Discussion <ul><li>What was NetFlix’s first business model? </li></ul><ul><ul><li>Deliver DVD to your mailbox </li></ul></ul><ul><li>Why did this model not work? DVD scratched and slow customer services response </li></ul><ul><li>What new model did it develop? </li></ul><ul><ul><li>renting movies online </li></ul></ul><ul><li>Why is NetFlix attractive to customers? </li></ul><ul><ul><li>An edge is its interface. Through its shareable friendship lists of favorites, the site utilizes an element of social networking </li></ul></ul><ul><li>How does NetFlix distribute its videos? Video-on-demand and deliver video online by video streaming </li></ul><ul><li>What is NetFlix’s “recommender system?” collaborative filtering system for personalization </li></ul><ul><li>How does NetFlix use data mining? Data mining  data analysis of movie VOD  movie rating </li></ul><ul><li>Is video on demand a threat to NetFlix? Yes  NetFlix starts VOD in 2005 </li></ul>
  • 4. Consumers Online: The Internet Audience and Consumer Behavior <ul><li>Around 175 million Americans (67% of total population) had Internet access in 2005 </li></ul><ul><li>Growth rate has slowed  no of online customers increase slowly </li></ul><ul><li>Intensity 強烈程度 and scope 範圍 of use both increasing  but the degree of usage differentiation increases </li></ul>
  • 5. Internet Audience and Consumer Behavior <ul><li>Some demographic groups have much higher percentages of online usage than other groups </li></ul><ul><li>Demographics to examine include: </li></ul><ul><ul><li>Gender </li></ul></ul><ul><ul><li>Age </li></ul></ul><ul><ul><li>Ethnicity 種族地位 </li></ul></ul><ul><ul><li>Community Type </li></ul></ul><ul><ul><li>Income </li></ul></ul><ul><ul><li>Education </li></ul></ul>
  • 6. Type of Internet Connection: Broadband Impacts <ul><li>52 million Americans had broadband access by end of 2005 </li></ul><ul><li>Broadband audience quite different from dial-up audience: </li></ul><ul><ul><li>Wealthier </li></ul></ul><ul><ul><li>More educated </li></ul></ul><ul><ul><li>More middle-aged </li></ul></ul><ul><ul><li>Greater intensity and scope of use </li></ul></ul>
  • 7. Lifestyle Impacts <ul><li> Intense Internet usage may cause  a decline in traditional social activities </li></ul><ul><li> Social development of children using Internet intensively instead of  engaging in face-to-face interactions or undirected play may also be negatively impacted </li></ul><ul><li> The more time people spend on the Internet,  the less time spent using traditional media </li></ul>
  • 8. Consumer Behavior Models <ul><li>Attempt to predict/explain what consumers purchase and where, when, how much and why they buy. </li></ul><ul><li>Consumer behavior models based on background demographic factors and other intervening, more immediate variables </li></ul>
  • 9. A General Model of Consumer Behavior <ul><li>Figure 7.1, Page 367 </li></ul>SOURCE: Adapted from Kotler and Armstrong, 2006.
  • 10. Background Demographic Factors <ul><li>Cultural </li></ul><ul><ul><li>Culture and subculture </li></ul></ul><ul><ul><li>E.g. Culture: Chinese, American, European </li></ul></ul><ul><ul><li>E.g. Subculture: 廣東人、北方人、台灣人 </li></ul></ul><ul><li>Social </li></ul><ul><ul><li>Reference groups </li></ul></ul><ul><ul><ul><li>Direct </li></ul></ul></ul><ul><ul><ul><li>Indirect </li></ul></ul></ul><ul><ul><ul><li>Opinion leaders (viral influencers) </li></ul></ul></ul><ul><ul><ul><li>Lifestyle groups </li></ul></ul></ul><ul><li>Psychological </li></ul><ul><ul><li>Psychological profiles </li></ul></ul>
  • 11. Factors That Predict Online Buying Behavior <ul><li>Figure 7.2, Page 371 </li></ul>SOURCE: Lohse Bellman, and Johnson, 2000. The more factors you have, the more chance You will purchase online
  • 12. The Purchasing Decision <ul><li>Five stages in the consumer decision process: </li></ul><ul><ul><li>Awareness of need </li></ul></ul><ul><ul><li>Search for more information </li></ul></ul><ul><ul><li>Evaluation of alternatives </li></ul></ul><ul><ul><li>Actual purchase decision </li></ul></ul><ul><ul><li>Post-purchase contact with firm </li></ul></ul>
  • 13. The Consumer Decision Process and Supporting Communications <ul><li>Figure 7.3, Page 371 </li></ul>Pure type traditional
  • 14. A Model of Online Consumer Behavior <ul><li>Adds two new factors: </li></ul><ul><ul><li>Web site capabilities </li></ul></ul><ul><ul><li>Consumer clickstream behavior </li></ul></ul>
  • 15. A Model of Online Consumer Behavior <ul><li>Figure 7.4, Page 372 </li></ul>Independent variables Intervening variables Background factor Market stimuli Website capabilities The website provides a certain degree of Effects on consumer behavior
  • 16. Shoppers: Browsers and Buyers <ul><li>About 63% of online users purchase online; an additional 12% research online, but purchase offline </li></ul><ul><li>Significance of online browsing for offline purchasing and vice versa should not be underestimated </li></ul><ul><li>E-commerce and traditional commerce are coupled and should be viewed by merchants and researchers as part of a continuum of consuming behavior </li></ul>
  • 17. Online Shoppers and Buyers <ul><li>Figure 7.5, Page 375 </li></ul>SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors’ estimates. Buy offline Traditional  all offline Usually, a consumer will buy certain electronic product online if the website is provided by the manufacturer directly
  • 18. What Consumers Shop for and Buy Online <ul><li>Online sales divided roughly into small ticket and big ticket items </li></ul><ul><ul><li>Top small ticket categories (apparel 衣服 , books, office supplies, software, etc.) have similar characteristics—sold by first movers, small purchase price, physically small, high margin items, broad selection of products available </li></ul></ul><ul><ul><li>Purchases of big ticket items (travel, computer hardware, consumer electronics) expanding </li></ul></ul>
  • 19. What Consumers Buy Online—Small Ticket Items <ul><li>Figure 7.6, Page 376 </li></ul>SOURCE: Based on data from eMarketer, Inc., 2004b. 服裝
  • 20. What Consumers Buy Online—Large Ticket Items <ul><li>Figure 7.6, Page 376 </li></ul>SOURCE: Based on data from eMarketer, Inc., 2004b.
  • 21. Intentional Acts: How Shoppers Find Vendors Online <ul><li>Over 85% of shoppers find vendor sites by typing product or store/brand name into search engine or going directly to the site </li></ul><ul><li>Most online shoppers plan to purchase product within a week , either online or at a store </li></ul><ul><li>Most online shoppers have a specific item in mind </li></ul>
  • 22. Why More People Don’t Shop Online <ul><li>Major online buying concerns: </li></ul><ul><ul><li>Security </li></ul></ul><ul><ul><li>Privacy </li></ul></ul><ul><ul><li>Shipping costs </li></ul></ul><ul><ul><li>Return policy </li></ul></ul><ul><ul><li>Product availability </li></ul></ul><ul><ul><li>Shipping issues/delays </li></ul></ul>
  • 23. Trust, Utility, and Opportunism in Online Markets <ul><li>Trust and utility among the most important factors shaping decision to purchase online </li></ul><ul><li>Consumers are looking for utility (better prices, convenience) </li></ul><ul><li>Asymmetry of information can lead to opportunistic behavior by sellers </li></ul><ul><li>What is Information Asymmetry? </li></ul><ul><ul><li>Typically it is the seller that knows more about the product than the buyer, however, it is possible for the reverse to be true: for the buyer to know more than the seller. </li></ul></ul><ul><li>Consumers also need to trust merchants before willing to purchase </li></ul><ul><li>Sellers can develop trust by building strong reputations for honesty, fairness, delivery </li></ul>
  • 24. Basic Marketing Concepts <ul><li>Marketing : The strategies and actions firms take to establish a relationship with a consumer and encourage purchases of products and services </li></ul><ul><li>Internet marketing: Using the Web, as well as traditional channels , to develop a positive, long-term relationship with customers, thereby creating competitive advantage for the firm by allowing it to charge a higher price for products or services than its competitors can charge </li></ul>
  • 25. Basic Marketing Concepts (cont’d) <ul><li>Firms within an industry compete with one another on four dimensions: </li></ul><ul><ul><li>Differentiation </li></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><li>Focus </li></ul></ul><ul><ul><li>Scope </li></ul></ul><ul><li>Marketing seeks to create unique, highly differentiated products or services that are produced or supplied by one trusted firm (“little monopolies”) </li></ul>
  • 26. Feature Sets <ul><li>Defines as the bundle of capabilities and services offered by the product or service </li></ul><ul><li>Includes: </li></ul><ul><ul><li>Core product </li></ul></ul><ul><ul><li>Actual product </li></ul></ul><ul><ul><li>Augmented product </li></ul></ul>
  • 27. Feature Set <ul><li>Figure 7.7, Page 379 </li></ul>SOURCE: Kotler and Armstrong, 2006.
  • 28. Products, Brands and the Branding Process <ul><li>Brand : A set of expectations that consumers have when consuming, or thinking about consuming, a product or service from a specific company </li></ul><ul><li>Branding : The process of brand creation </li></ul><ul><li>Closed loop marketing : When marketers are able to directly influence the design of the core product based on market research and feedback </li></ul><ul><ul><li>E-commerce enhances the ability to achieve </li></ul></ul><ul><li>Brand strategy : Set of plans for differentiating a product from its competitor, and communicating these differences to the marketplace </li></ul><ul><li>Brand equity : estimated value of the premium customers are willing to pay for a branded product versus unbranded competitor </li></ul>
  • 29. Marketing Activities: From Products to Brands <ul><li>Figure 7.8, Page 381 </li></ul>Closed loop marketing e.g. iPod  iPod shuffle; campbell soap
  • 30. Are Brands Rational 有理性的 ? <ul><li>For consumers, a qualified yes: </li></ul><ul><ul><li>Brands introduce market efficiency by reducing search and decision-making costs </li></ul></ul><ul><ul><ul><li>E.g. SONY, Canon and Panasonic </li></ul></ul></ul><ul><li>For business firms, a definite yes: </li></ul><ul><ul><li>Brands lower customer acquisition 獲得物 cost </li></ul></ul><ul><ul><ul><li>Why? Customer spends less time in product research </li></ul></ul></ul><ul><ul><li>Brands increase customer retention 保持 (loyalty) </li></ul></ul><ul><ul><li>Successful brand constitutes a long-lasting (although not necessarily permanent) unfair competitive advantage </li></ul></ul><ul><ul><ul><li>E.g. i-pod </li></ul></ul></ul>
  • 31. Can Brands Survive the Internet? Brands and Price Dispersion  yes <ul><li>Researchers initially postulated 假設 that Web would result in “Law of One Price” </li></ul><ul><ul><li>Did not occur , and e-commerce firms continue to rely heavily on brands to attract customers and charge premium prices </li></ul></ul><ul><li>Price dispersion 分散 – the difference between the highest and lowest prices in a market </li></ul><ul><li>Research evidence indicates that brands are alive and well on the Internet , and that consumers are willing to pay premium prices for products and services they view as differentiated </li></ul>
  • 32. Internet Marketing Technologies <ul><li>Web transaction logs </li></ul><ul><li>Cookies and Web bugs </li></ul><ul><li>Databases, data warehouses, and data mining </li></ul><ul><li>Advertising networks </li></ul><ul><li>Customer relationship management (CRM) systems </li></ul>
  • 33. The Revolution in Internet Marketing Technologies <ul><li>Three broad impacts: </li></ul><ul><ul><li>Internet has broadened the scope of marketing communications </li></ul></ul><ul><ul><li>Internet has increased the richness of marketing communications </li></ul></ul><ul><ul><li>Internet has greatly expanded the information intensity of the marketplace </li></ul></ul>
  • 34. Web Transaction Logs 網站瀏覽及交易記錄 <ul><li>Built into Web server software </li></ul><ul><li>Records user activity at a Web site </li></ul><ul><li>WebTrends a leading log analysis tool </li></ul><ul><li>Can provide treasure trove 貴重的發現物 of marketing information, particularly when combined with: </li></ul><ul><ul><li>Registration forms </li></ul></ul><ul><ul><li>Shopping cart database </li></ul></ul>
  • 35. Cookies <ul><li>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 </li></ul><ul><ul><li>Where is it used? Website login  webmail, e-banking, online shopping </li></ul></ul><ul><li>Cookies provide Web marketers with a very quick means of identifying the customer and understanding his or her prior behavior </li></ul><ul><li>Location of cookie files on computer depends on browser version </li></ul><ul><ul><li>Cookies have limited life-span 有效生命期 and will expire once disconnected from the website. </li></ul></ul><ul><ul><li>How to clear cookies in IE? Tools  Internet options  delete …  delete cookies </li></ul></ul>
  • 36. Netscape Cookie Manager <ul><li>Figure 7.11, Page 391 </li></ul>
  • 37. Web Bugs <ul><li>Tiny (1 pixel) graphic files embedded in e-mail messages and on Web sites </li></ul><ul><li>Used to automatically transmit information about the user and the page being viewed to a monitoring server </li></ul><ul><li>http://www.eff.org/Privacy/Marketing/web_bug.html </li></ul>
  • 38. Insight on Society: Should Web Bugs Be Regulated? Class Discussion <ul><li>Are Web bugs innocuous 無害的 ? It depends on the nature of the graphics Or are they an invasion of personal privacy? Yes </li></ul><ul><li>Do you think your Web browsing should be known to marketers? Yes </li></ul><ul><li>What are the different types of Web bugs? </li></ul><ul><ul><li>GIF/JPEG, Flash, ActiveX </li></ul></ul><ul><li>What are the Privacy Foundation guidelines for Web bugs? Information collected for internal use instead of disclosure other business purpose. </li></ul><ul><li>What protections are available? Anti-spyware or Anti-phishing tools </li></ul>
  • 39. Databases 資料庫 and Data Warehouses 資料分析 <ul><li>Database : Software that stores records and attributes </li></ul><ul><li>Database management system (DBMS): Software used to create, maintain, and access databases </li></ul><ul><li>SQL (Structured Query Language): Industry-standard database query and manipulation language used in a relational database, e.g. SELECT * FROM user </li></ul><ul><li>Relational database : Represents data as two-dimensional tables with records organized in rows and attributes in columns; data within different tables can be flexibly related as long as the tables share a common data element  you can create your relational DB using MS Access </li></ul><ul><li>Data warehouse : Database that collects a firm’s transactional and customer data in a single location for offline analysis by marketers and site managers </li></ul>
  • 40. A Relational Database View of E-commerce Customers <ul><li>Figure 7.12, Page 395 </li></ul>6 3 relations This relational DB contains 4 tables
  • 41. Data Mining <ul><li>Set of analytical techniques that look for patterns in data of a database or data warehouse, or seek to model the behavior of customers </li></ul><ul><li>Types include: </li></ul><ul><ul><li>Query-driven, e.g. SELECT * FROM user WHERE sex = “M” </li></ul></ul><ul><ul><li>Model-driven  based on data pattern </li></ul></ul><ul><ul><li>Rule-based  predictive modeling </li></ul></ul><ul><ul><li>Collaborative filtering  making automatic predictions (filtering) about the interests of a user by collecting taste information from many users (collaborating). The underlying assumption of CF approach is that those who agreed in the past tend to agree again in the future </li></ul></ul>
  • 42. The relationship between Data Mining and Personalization <ul><li>Figure 7.13, Page 397 </li></ul>SOURCE: Adomavicius and Tuzhilin, 2001b ©2001 IEEE.
  • 43. Insight on Technology: The Long Tail: Collaborative Filtering and Recommender Systems - Class Discussion <ul><li>What are “recommender systems.” Give an example you have used . It aims at providing personalized product recommendations to customers, e.g. www.amazon.com </li></ul><ul><li>What is “collaborative filtering?” slide 41 </li></ul><ul><li>What is the “long tail” and how do recommender systems support sales of items in the tail? </li></ul><ul><ul><li>E.g. type “holiday in Asia” instead of “holiday” in search box </li></ul></ul><ul><li>What are some of the reasons that collaborative filtering fails? The underlying assumption that customer current preference based on past choices and data sparsity 貧乏 </li></ul><ul><li>How can human editors, including consumers, make recommender systems more helpful? Be more participative </li></ul>
  • 44. Advertising Networks is a collection of (often unrelated) online advertising inventory. <ul><li>Online advertising inventory comes in many different forms. This inventory can be found on websites, in RSS feeds, on blogs, in instant messaging applications, in adware, in e-mails, and on other sources. </li></ul><ul><li>Best known for ability to present users with banner advertisements based on a database of user behavioral data </li></ul><ul><li>DoubleClick best-known example </li></ul><ul><li>Ad server selects appropriate banner ad based on cookies, Web bugs, backend user profile databases </li></ul>
  • 45. How an Advertising Network such as DoubleClick Works <ul><li>Figure 7.14, Page 401 </li></ul>
  • 46. Customer Relationship Management (CRM) Systems <ul><li>Repository 貯藏 of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to “know the customer” </li></ul><ul><li>Customer profiles can contain: </li></ul><ul><ul><li>Map of the customer’s relationship with the firm </li></ul></ul><ul><ul><li>Product and usage summary data </li></ul></ul><ul><ul><li>Demographic and psychographic data </li></ul></ul><ul><ul><li>Profitability measures </li></ul></ul><ul><ul><li>Contact history </li></ul></ul><ul><ul><li>Marketing and sales information </li></ul></ul>
  • 47. A Customer Relationship Management System <ul><li>Figure 7.15, Page 403 </li></ul>SOURCE: Compaq, 1998. 1 2 3 聚集 Examples: telecom company, e.g. Smartone Jobseeker agent, e.g. jobsdb.com
  • 48. Market Entry Strategies <ul><li>For new firms: </li></ul><ul><ul><li>Pure clicks/first mover </li></ul></ul><ul><ul><li>Mixed “clicks and bricks”/alliances </li></ul></ul><ul><li>For existing firms: </li></ul><ul><ul><li>Pure clicks/fast follower </li></ul></ul><ul><ul><li>Mixed “bricks and clicks”/brand extensions </li></ul></ul>
  • 49. Generic Market Entry Strategies <ul><li>Figure 7.16, Page 404 </li></ul>Online only Online with Traditional shop (results of merging)
  • 50. Establishing the Customer Relationship <ul><li>Permission marketing : Obtain permission before sending consumer information or promotional messages (example: opt-in e-mail  register yahoo, hotmail email account) </li></ul><ul><li>Affiliate marketing : Relies on referrals ; Web site agrees to pay another Web site a commission for new business opportunities it refers to the site </li></ul><ul><li>Viral marketing : Process of getting customers to pass along a company’s marketing message to friends , family, and colleagues. E.g. forward email from one to another </li></ul>
  • 51. Establishing the Customer Relationship (cont’d) <ul><li>Blog marketing : Using blogs to market goods through commentary and advertising </li></ul><ul><li>Social network marketing : Similar to viral marketing, e.g. online forum or community </li></ul><ul><li>Brand leveraging : Process of using power of an existing brand to acquire new customers for a new product or service, e.g. SONY introduce VAIO computer series </li></ul>
  • 52. Customer Retention: Strengthening the Customer Relationship <ul><li>Mass market-personalization continuum ranges from mass marketing  direct marketing  micromarketing  personalized, one-to-one marketing </li></ul><ul><li>One-to-one marketing : Involves segmenting the market on a precise and timely understanding of an individual’s needs, targeting specific marketing messages to these individuals and then positioning the product vis-à-vis 古式的 ( 法 ) competitors to be truly unique </li></ul>
  • 53. The Mass Market-Personalization Continuum <ul><li>Figure 7.17, Page 411 </li></ul>Soft-drink Specific product e.g. cooker or memory stick Fitness/golf Club - membership Telecom package
  • 54. Other Customer Retention Marketing Techniques <ul><li>Customization: Changing the product (not just the marketing message) according to user preferences e.g. allows user change mobile phone case </li></ul><ul><li>Customer co-production: Allows the customer to interactively create the product, e.g. DELL </li></ul><ul><li>Transactive content: Results from the combination of traditional content with dynamic information tailored to each user’s profile, e.g. order pizza online or order movie ticket online </li></ul>
  • 55. Other Customer Retention Marketing Techniques (cont’d) <ul><li>Customer service tools include: </li></ul><ul><ul><li>Frequently asked questions (FAQs) </li></ul></ul><ul><ul><li>Real-time customer service chat systems (intelligent agent technology or bots) </li></ul></ul><ul><ul><li>Automated response systems </li></ul></ul>
  • 56. Net Pricing Strategies <ul><li>Pricing (putting a value on goods and services) an integral part of marketing strategy </li></ul><ul><li>Traditionally, prices based on: </li></ul><ul><ul><li>Fixed cost </li></ul></ul><ul><ul><li>Variable costs </li></ul></ul><ul><ul><li>Market’s demand curve </li></ul></ul><ul><li>Price discrimination: Selling products to different people and groups based on their willingness to pay </li></ul>
  • 57. Net Pricing Strategies (cont’d) <ul><li>Free products/services: Can be used to build market awareness </li></ul><ul><li>Versioning: Creating multiple versions of a good and selling essentially the same product to different market segments at different prices </li></ul><ul><li>Bundling: Offers consumers two or more goods for one price </li></ul><ul><li>Dynamic pricing: </li></ul><ul><ul><li>Auctions </li></ul></ul><ul><ul><li>Yield management  discount to seat, room etc. </li></ul></ul>
  • 58. Channel Management Strategies <ul><li>Channel: Refers to different methods by which goods can be distributed and sold </li></ul><ul><li>Channel conflict: Occurs when a new venue for selling products or services threatens or destroys existing venues for selling goods </li></ul><ul><li>Examples: online airline/travel services and traditional offline travel agencies </li></ul><ul><li>Some manufacturers are using partnership model to avoid channel conflict e.g. TV advertisement of Broadway and Chung Yuen </li></ul>
  • 59. Online Market Research <ul><li>Market research: Involves gathering information that will help a firm identify potential products and customers </li></ul><ul><li>Two general types: </li></ul><ul><ul><li>Primary research  getting original data directly about the product and market </li></ul></ul><ul><ul><li>Secondary research  data gathered by industry experts, trade associations; data gathered by your company </li></ul></ul>
  • 60. Insight on Business: Zoomerang Class Discussion <ul><li>What are the advantages of an online survey service? </li></ul><ul><ul><li>A channel in handling customer complains, suggestions, and feedback </li></ul></ul><ul><ul><li>Identify a strategy for obtaining client feedback </li></ul></ul><ul><li>What features make Zoomerang surveys easy to implement when compared to traditional survey instruments? </li></ul><ul><ul><li>http://info.zoomerang.com/ </li></ul></ul><ul><ul><li>http://info.zoomerang.com/zoomerang_flash/index.html </li></ul></ul><ul><li>What are some of Zoomerang’s weaknesses? </li></ul><ul><ul><li>Design issue – consistency, survey objective </li></ul></ul>

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