E Marketing Week02


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Consumer behavior

Week 2 of 13 of the 2007 Internet Marketing Course. Content is based in part on Dann, S and Dann S 2004 Strategic Internet Marketing 2.0, Milton: Wiley. Diagrams taken from the Dann and Dann text are copyright to their respective copyright holders.

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E Marketing Week02

  1. 1. MKTG7037 / MKTG2032 E-marketing
  2. 2. Course Structure Chapter 15 International marketing 21 May 12 Chapter 14 Relationship marketing 28 May 13 Chapter 13 Services marketing online 14 May 11 Chapter 12 Distribution 7 May 10 Chapter 11 Pricing strategies 30 April 9 Chapter 10 Promotion 2: the internet as a promotional medium 23 April 8 Chapter 9 Promotion: the internet in the promotional mix 2 April 7 Chapter 8 The role of product in internet marketing 26 March 6 Chapter 7 The internet in marketing strategy 19 March* 5 Chapter 6 Applications for business and non-business 12 March 4 Chapter 5 Creating cybercommunities 5 March 3 Chapter 4 Consumer behaviour 26 February 2 Chapter 3 Unique features of internet-based marketing 19 February 1 Topic(s)/Task(s) Week beginning Week No
  3. 3. Assessment Due Dates <ul><li>Task Weighting Due </li></ul><ul><li>Tutorial/Lab Assessment 20 During semester </li></ul><ul><li>Essay Registration 01 March 16 </li></ul><ul><li>Solo Assignment 20 March 26 </li></ul><ul><li>Group-Optional Essay 29 May 21 </li></ul><ul><li>Final Examination 30 June </li></ul>
  4. 4. Solo Assignment <ul><li>Due: March 26, Monday Week 6, no later than 7pm. </li></ul><ul><ul><li>Electronic Upload via WebCT </li></ul></ul><ul><li>Topic: “Hype or Hope? The value of a new technology for marketing” </li></ul><ul><ul><li>This assessment item is a solo paper where the student examines value of a contemporary technology for marketing practice. The list of contemporary technology includes: </li></ul></ul><ul><ul><ul><li>RFID tags for marketing and marketing research </li></ul></ul></ul><ul><ul><ul><li>m-commerce, including m-gaming, m-gambling and m-shopping </li></ul></ul></ul><ul><ul><ul><li>MMORPG environments such as Second Life </li></ul></ul></ul><ul><ul><ul><li>social media marketing </li></ul></ul></ul><ul><ul><ul><li>online viral marketing </li></ul></ul></ul><ul><li>You are expected to write between 1000 and 1500 words addressing the value of one of the five topic areas for marketing, using references to marketing theory, practice and internet theory. </li></ul><ul><li>Full referencing is expected. Penalties apply for not using references. </li></ul>
  5. 5. Group-Optional Essay <ul><li>500 word proposal </li></ul><ul><ul><li>Due Friday, Week 4, no later than 7pm </li></ul></ul><ul><li>4000 word assignment </li></ul><ul><ul><li>Due: Monday Week 12 no later than 7pm. </li></ul></ul><ul><li>1-4 people per group, </li></ul><ul><li>Electronic Upload via WebCT </li></ul>
  6. 6. Possible Essay Topics <ul><li>“ This is not like TV, only better. This is life”. Discuss this quote in the context of passive consumption of push-media versus active consumption of internet media such as blogs, virtual worlds and self published website” </li></ul>
  7. 7. Tutorials <ul><li>Forum based assessment </li></ul><ul><ul><li>17 posters to Week 1. </li></ul></ul><ul><ul><li>A good start </li></ul></ul><ul><li>What stopped the rest of you? </li></ul>
  8. 8. A little diversion into the internet <ul><li>Let us remember that there are multiple theories of Intelligent Design. I and many others around the world are of the strong belief that the universe was created by a Flying Spaghetti Monster. It was He who created all that we see and all that we feel. We feel strongly that the overwhelming scientific evidence pointing towards evolutionary processes is nothing but a coincidence, put in place by Him. </li></ul><ul><ul><li>http://www.venganza.org </li></ul></ul>
  9. 9. Talk like a pirate day <ul><li>Talk like a Pirate Day </li></ul><ul><ul><li>September 19 </li></ul></ul>
  10. 10. Snakes on a Plane <ul><li>Snakes on a blog </li></ul><ul><ul><li>http://www.snakesonablog.com/ </li></ul></ul><ul><li>Snakes. On. A PLANE. </li></ul><ul><ul><li>http://www.snakesonaplane.com/ </li></ul></ul><ul><li>Cobra Starship </li></ul>
  11. 11. All your base <ul><li>are belong to us </li></ul><ul><li>http://allyourbase.planettribes.gamespy.com/ </li></ul><ul><li>http://allyourbase.planettribes.gamespy.com/video3_view.shtml </li></ul>
  12. 12. Remix Culture
  13. 13. Ning <ul><li>Ning is the fast and free way to create custom Social Websites </li></ul><ul><ul><li>http://www.ning.com/ </li></ul></ul><ul><li>No idea what it does, but it looks kinda cool. </li></ul>
  14. 14. ZeFrank <ul><li>In the category of “I really should know better”, I present </li></ul><ul><li>ZeFrank </li></ul><ul><li>http://www.zefrank.com/snowflake/ </li></ul><ul><li>The Show with ZeFrank </li></ul><ul><li>http://www.zefrank.com/theshow/archives/2007/02/022207.html </li></ul>
  15. 15. Posting to the Forum A few points
  16. 16. Styles <ul><li>Pack leader </li></ul><ul><ul><li>Post an original topic, post it early </li></ul></ul><ul><ul><li>Advantage: you set the agenda </li></ul></ul><ul><ul><li>Disadvantage: You get the commentary, and have to defend your post </li></ul></ul><ul><li>Pack follower </li></ul><ul><ul><li>Post an original topic, post it late (after the third or fourth topic) </li></ul></ul><ul><ul><li>Advantage: benefit from the experience of others </li></ul></ul><ul><ul><li>Disadvantage: Must read the rest of the comments and threads, and make reference to where the others have already agreed with your position </li></ul></ul>
  17. 17. Styles II <ul><li>Commentator </li></ul><ul><ul><li>Replies to post </li></ul></ul><ul><ul><li>Actively engaged in debate with other users </li></ul></ul><ul><ul><li>Needs to show that they’re integrating the debates from other threads into their position. </li></ul></ul><ul><li>Lurker </li></ul><ul><ul><li>Doesn’t post </li></ul></ul><ul><ul><ul><li>You’ll learn something, but no post means no marks </li></ul></ul></ul>
  18. 18. Consumer Behaviour Online
  19. 19. Innovation and adoption <ul><li>Adoption of the really new product: </li></ul><ul><ul><li>The really new product (RNP) defines a new product category. </li></ul></ul><ul><ul><li>RNPs represent development of a new technology incompatible with existing one. </li></ul></ul><ul><ul><li>RNPs have a propensity to set standards. </li></ul></ul><ul><ul><li>RNP is never an easy prospect for consumers to adopt because of the newness. </li></ul></ul>
  20. 20. Diffusion of innovations <ul><li>Rogers’ five features of innovations: </li></ul><ul><ul><li>Relative advantage </li></ul></ul><ul><ul><li>Compatibility </li></ul></ul><ul><ul><li>Complexity </li></ul></ul><ul><ul><li>Trialability </li></ul></ul><ul><ul><li>Observability </li></ul></ul>
  21. 21. Adoption of Internet users <ul><li>Innovators: Venturesome (try anything once) </li></ul><ul><li>Early adopters: Respectable (the Net is hip – adopt now to be a social leader) </li></ul><ul><li>Early majority: Deliberate (needs and wants) </li></ul><ul><li>Late majority: Sceptical (ends up needing, not always wanting) </li></ul><ul><li>Laggards: Traditional (want and adopt not) </li></ul>
  22. 22. Rogers’ five categories of innovators Source: Rogers, M. R. 1983, Diffusion of Innovations , 3rd edn, Macmillan, London.
  23. 23. Internet user categories <ul><li>1. Directed information seekers </li></ul><ul><li>2. Undirected information seekers </li></ul><ul><li>3. Bargain hunters </li></ul><ul><li>4. Entertainment seekers </li></ul><ul><li>5. Directed buyers </li></ul>
  24. 24. Internet use behaviours <ul><li>Why people use the Internet: </li></ul><ul><ul><li>Anonymity and the non-corporeal body </li></ul></ul><ul><ul><li>Communications: reach out and chat with someone </li></ul></ul><ul><ul><li>Convenience </li></ul></ul><ul><ul><li>Information seeking </li></ul></ul><ul><ul><li>Global access </li></ul></ul>
  25. 25. Internet use behaviours <ul><li>Why people use the Internet (contd): </li></ul><ul><ul><li>Community/sense of belonging/pursuit of common interests and goals </li></ul></ul><ul><ul><li>Utility/necessity/fear of being left behind </li></ul></ul><ul><ul><li>Recreation, leisure and pleasure </li></ul></ul><ul><ul><li>Inherent merit </li></ul></ul>
  26. 26. Internet use behaviours <ul><li>How people use the Internet – six common behaviours online: </li></ul><ul><ul><li>Search behaviours – involve how people explore the Internet </li></ul></ul><ul><ul><li>Self-service technologies in e-commerce – where the consumer is engaged in self-service behaviour </li></ul></ul><ul><ul><li>Self-representation – the creation of the user’s identity in CMEs </li></ul></ul>
  27. 27. Internet use behaviours <ul><li>How people use the Internet – six common behaviours online (contd): </li></ul><ul><ul><li>Self-publication – the creation and publication of web content </li></ul></ul><ul><ul><li>Cybercommuning – active involvement in web communities </li></ul></ul><ul><ul><li>Flow behaviour – engaging in the flow state of Internet usage </li></ul></ul>
  28. 28. Internet use behaviours <ul><li>How people use the Internet </li></ul><ul><ul><li>Self-service technologies (SSTs) </li></ul></ul><ul><ul><ul><li>SSTs are any form of technology that allows (or forces) a consumer to replace a personal service (e.g. banking) with a consumer-produced service alternative (electronic banking) </li></ul></ul></ul><ul><ul><ul><li>SSTs are notable among the following types of businesses: </li></ul></ul></ul><ul><ul><ul><ul><li>Airline tickets </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Electronic banking </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Self-diagnosis medical systems </li></ul></ul></ul></ul>
  29. 29. Internet use behaviours <ul><li>How people use the Internet </li></ul><ul><ul><li>The key features of SSTs need to be as follows: </li></ul></ul><ul><ul><ul><li>Predictable </li></ul></ul></ul><ul><ul><ul><li>Customisable </li></ul></ul></ul><ul><ul><ul><li>Trialable </li></ul></ul></ul><ul><ul><ul><li>Clearly useful </li></ul></ul></ul>
  30. 30. Flow state <ul><li>The flow state is a result of a consumer’s interaction with the Internet environment. </li></ul><ul><li>A flow state experience can be measured by a series of factors or ‘symptoms’. </li></ul><ul><li>Flow, being a naturally occurring phenomenon, is difficult to research in marketing. </li></ul>
  31. 31. Flow state <ul><li>Factors that indicate a ‘flow state’: </li></ul><ul><ul><li>The merging of action and awareness </li></ul></ul><ul><ul><li>A higher level of concentration on the task at hand </li></ul></ul><ul><ul><li>A loss of self-awareness and self-consciousness, and a reduced attention to the opinion that others may hold of the individual </li></ul></ul>
  32. 32. Flow state <ul><li>Factors that indicate a ‘flow state’ (contd): </li></ul><ul><ul><li>Feelings of control and empowerment </li></ul></ul><ul><ul><li>Enjoyment, pleasure and satisfaction from the flow state </li></ul></ul><ul><ul><li>A sense of time distortion, or a loss of time </li></ul></ul><ul><ul><li>A sense of telepresence </li></ul></ul>
  33. 33. Flow state <ul><li>Elements of flow: </li></ul><ul><ul><li>Control </li></ul></ul><ul><ul><li>Attention focus </li></ul></ul><ul><ul><li>Curiosity and perceived challenge </li></ul></ul><ul><ul><li>Intrinsic interest </li></ul></ul>
  34. 34. Flow state <ul><li>Four common methods or ‘routes’ to the flow state from perceived challenges: </li></ul><ul><ul><li>Search/research/problem solving </li></ul></ul><ul><ul><li>Reading/interaction </li></ul></ul><ul><ul><li>Composition/creation </li></ul></ul><ul><ul><li>Communication </li></ul></ul>
  35. 35. Flow state <ul><li>What facilitates flow: </li></ul><ul><ul><li>An active involvement </li></ul></ul><ul><ul><li>Immediate response </li></ul></ul><ul><ul><li>A series of task-oriented activities </li></ul></ul>
  36. 36. Flow state <ul><li>What inhibits flow: </li></ul><ul><ul><li>The nature of the flow state experience </li></ul></ul><ul><ul><li>Speed of feedback </li></ul></ul><ul><ul><li>Navigation errors, complications and failures </li></ul></ul><ul><ul><li>Advertising mechanisms </li></ul></ul><ul><ul><li>Self-consciousness </li></ul></ul><ul><ul><li>Fun and enjoyment </li></ul></ul><ul><ul><li>Boredom </li></ul></ul>
  37. 37. Flow state <ul><li>Designing the Web for flow: </li></ul>
  38. 38. Flow state (contd) Source: Rettie, R. 200, ‘ An exploration of flow state during Internet use’ , Internet Research: Electronic Networking Applications and Policy, vol. 11, no. 2, pp. 103–13.
  39. 39. Factors preventing full use of the Internet <ul><li>Cost: time and money </li></ul><ul><li>Internet literacy </li></ul><ul><li>Fear </li></ul><ul><li>Lack of desire: no benefit, no consequence and no value </li></ul><ul><li>Expectation gap: promised the earth, delivered a bucket of soil </li></ul>
  40. 40. What can marketers do? <ul><li>Lower the barriers </li></ul><ul><li>Lower the expectations: deliver more than promised </li></ul><ul><li>Secure the Internet </li></ul><ul><li>Accept rejection as a legitimate choice </li></ul>
  41. 41. Discussion Questions for the Board <ul><li>Which one of Rogers’ (1985) factors do you believe was the most important for your adoption of the Internet and why? </li></ul>