Consumer Behaviors And Web 2point0 Aaron Abbott

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Consumer Behaviors And Web 2point0 Aaron Abbott

  1. 1. Aaron  Abbott—www.BrandLessBox.com          1                 Running head: CONSUMER BEHAVIORS AND WEB 2.0 Consumer Behaviors and Web 2.0: The Evolution of Business and Opportunity Aaron Michael Abbott www.BrandLessBox.com
  2. 2. Aaron  Abbott—www.BrandLessBox.com          2                 If technology has advanced, then the Internet has evolved. This evolution has been an integral part of how consumers, businesses, and organizations use, share, and control the data, and content, that is exchanged via the Internet. Looking into the recent developments of social networking sites, in conjunction with mobile marketing and Web 2.0 developments, it shows how this evolution has affected business models, and marketing practices, all together (Abramovich, 2008). As a result, these insights are showing advertisers, and companies, where to turn. This literary review will explore the realm of the Internet behavioral experience in response to the rapidly expanding world of Internet technologies and the evolving marketing/business opportunities and practices. Web 2.0 companies have catered specifically to the behavioral experience of the consumer. This attention to the experience, predictions of behavior, and development of the desired interactions has been vital. The eMarketer web site points out the fact that Facebook has been blowing MySpace away when it comes to user satisfaction. Traffic has shifted and so have advertising dollars (2009). As a result, innovative methodologies and vehicles for brand identity, business model evolution, and message delivery have surfaced—in tandem with the development of innovative user experiences. Two major variables in this evolution have been that the end consumer: (a) is capable of understanding how to utilize these emerging web technologies and (b) has wanted to use the technologies. “According to Forrester Research, reported by Richard H. Levey at Directmag.com, 60% of marketers surveyed will increase their interactive marketing budgets by shifting funds from traditional media” (Loechner, 2009). Further, research has
  3. 3. Aaron  Abbott—www.BrandLessBox.com          3                 shown how this information can be utilized to not only predict more targeted, and cost- effective advertising campaigns; it can explain the impact that Web 2.0 has on the development of future business models. Research has shown that trends and behaviors, of the consumer, have affected when, where, and how advertisers should be spending advertising money and why (see Table 1). Table 1 Evaluation of advertiser spending relating to research of consumer use and behavior. Website URL Summary of ideas Use of information MediaPost http://www.media 2009-2014 34% compounded post.com/publicati Money spent on social growth rate; result of ons/?fa=Articles.sh media advertising increased consumer use owArticle&art_aid= $716 million to $3.11 of social media 109611 billion eMarketer http://www.emark 2008-2009 Changes in spending eter.com/Article.as Advertising money spent: due to Facebook px?Ne=1040&N=77 MySpace down $90 outperforming MySpace 9&No=6&R=10071 million; Facebook up $20 (Consumers like, and 65&xsrc=article_he million use, Facebook more) ad_sitesearchx BledConfe www.bledconfere 1994-2001 Research is allowing Rence nce.org/proceedi Amount of research in marketers/advertisers to ngs.nsf/0/.../16Ch publications from less than understand the when, eung.pdf 5 to more than 120 where, and why
  4. 4. Aaron  Abbott—www.BrandLessBox.com          4                 The ability to utilize an interactive platform that would predict the consumer’s Internet behavioral experiences, leading to insights of the consumer’s future behaviors and desires, would prove to be invaluable. These insights could even help develop new Internet technologies and vehicles of mass communication, as well as forging completely new business models. Thus far, the evolution of Web 2.0 and social networking sites has redefined online marketing strategies and opportunities. Further, these opportunities correlate to the availability of research and experimental findings—regarding the behaviors of the end-consumer’s experience on the Internet (Cheung, Zhu, Kwong, Chan & Limayem, 2003). Once the marketers and executives begin to really understand the Internet and her opportunities, it will be a new era of business modalities. “Google Analytics [and the like] are all about understanding the experience…to influence their behavior,” stated Avinash Kaushik (2007), Director of Research & Analytics at Intuit. It’s not only about influencing the target market now, it is about understanding what they want, and finding them on the Internet while they are experiencing what they enjoy and/or need to do. As marketers dig further into the evolving research and understand motivations of the consumer’s Internet behavioral experience, spending of advertising dollars can be mapped and predicted in relation to when, where, and how. Companies can focus their minds on innovative research and development methodologies, revolutionary market analysis techniques, and have the ability to create completely new channels of product distribution, as well as new income opportunities. It is up to the researcher to show where the consumer is now, and to figure out where they want/need to go next.
  5. 5. Aaron  Abbott—www.BrandLessBox.com          5                 Look at two giants in the Web 2.0 development game—Apple and Google (Mooney, 2008). Web 2.0 has meant new marketing opportunities, product developments, and even business model, well, remodeling. Apple has manufactured computers, developed software, and has been around since the beginning. Google, a more recent addition to the marketplace, has been one of the most significant search engines on the Internet—developing a wide range of free Web 2.0 software solutions like e-mail, maps, calendars, document and spreadsheet applications, video-chat, and more. So, how did competition surface between a prolific search engine company and the leading computer manufacture/software company—in the mobile telephone market? These companies have followed their consumer’s behaviors and developed future solutions/products based on the existing research and predicted desires. It is the type of consumer data they gather that Apple and Google have seemingly mastered over the past 5 years. They have had access to their consumer demographics and online behaviors directly. It is the core of their respective business models. Google gets to see where everyone visits on the Internet, and when. While Apple has mastered what the consumer wants out of their computer, and it’s interactivity. This is the true power of Web 2.0. With iPhone versus Google Phone, the impacts that Web 2.0 developments have upon the birth of business model opportunities are obvious. We are seeing more traffic on social web sites, increased spending in the mobile market, and more and more advertisers are starting to look to social and mobile media outlets for message delivery opportunities (see Table 2). The new business models create these new channels.
  6. 6. Aaron  Abbott—www.BrandLessBox.com          6                 Table 2 Factors of growth, attention, and development for social and mobile media. Website URL Summary of ideas Use of information MobileMarketer http://www.mobilem   Percentage of Shows interest of arketer.com/cms/lib   Advertisers investing in advertisers increasing /294.pdf   Social Media steadily in one year 38% in 2006 48% in 2009 MMAGlobal http://www.mmaglobal. US spending on Mobile Growing Mobile com/articles/mobile- Marketing Market is gaining marketing-mayberry-or- $1.7 billion in 2009 revenue streams from wild-west $2.16 billion in 2010 increased use Mashable http://www.mashable.c More than 7 million Highly visited Blog om/about/ monthly page views in features, Web 2.0 and 2009 Social Media news Without being a huge corporation, how can one access this invaluable information? Web 2.0 makes it all possible. Access to the motivations, consumer behaviors, and desires can be found on any blog, or any online forum, in any corner of the Internet. Blogs and online forums are just the beginning too. With companies like Facebook and Twitter re-writing how people communicate on a daily basis, marketers and companies have jumped on the bandwagon and are getting ready for the day when the supercomputers that took up rooms in the past, will be carried around in pockets and
  7. 7. Aaron  Abbott—www.BrandLessBox.com          7                 on belts. It is a give and take between ingenuity and predictability. “Used properly, [blogs and online forums] can deliver greater insights, as respondents have more control and thus involve themselves more in the project” (Gray, 2007). The marketing community as a whole will agree the best campaign any company could ever have is a word-of-mouth campaign. One study found that a survey of “10,000 consumers reveals that 76 percent cite word of mouth as their main influence when making a product choice, with advertising languishing far behind at just 15 percent” (Campaign UK, 2004). In order to achieve this, consumers must be able to communicate and share their experiences openly. With the Internet, the word-of-mouth campaign just became as much as a reality for the small business as it is for Sony. The globalization of Corporate America has torn down borders, while simultaneously building new barriers. The Internet breaks through everything and levels the playing field so new thought, new commerce, and new interactions can lead us into the next level of this experience. This is arguably the most substantial aspect of what Web 2.0 has allowed. Open and clear message delivery vehicles that encapsulate experiences and innovations, accessed by all. No longer can the big media corporations take over the airways. They now have to live and breathe their consumer, and keep that fire hot. For the opportunities that have been the result of Web 2.0, have turned into they very agents and catalysts that have created Web 2.0. In closing, this is just the beginning. The Industry has recently tiptoed into the event horizon of Web 2.0. The opportunities have just surfaced, but look how fast businesses, marketers, and advertisers have adapted to the supply, demand, and behavior
  8. 8. Aaron  Abbott—www.BrandLessBox.com          8                 of the Internet user. With more and more people having access to faster Internet connections, and faster computers, it is imperative to stay on top of what the consumer has expected and where they need the product, service, experience, and vision to go. The consumer’s Internet behavioral experience is a beacon that has flooded the marketer and the businessperson with a plethora of innovations and opportunities as research is executed and interpreted, and as new technologies are developed, experienced, and utilized.
  9. 9. Aaron  Abbott—www.BrandLessBox.com          9                 References About Us. (n.d.). In Mashable’s Social Media Guide. Retrieved July 24, 2009 from http://mashable.com/about/ Abramovich, G. (2008, January 9). Immediacy triggers growth in mobile social networking. Mobile Marketer’s Outlook 2008, 25. Retrieved July 24, 2009 from http://www.mobilemarketer.com/cms/lib/294.pdf Campaign UK. (2004, April 23). Word of mouth more influential than ads, UK research reveals. Retreived on July 27, 2009 from http://web.ebscohost.com/ ehost/detail?vid=28&hid=105&sid=9e472cb0-60ef-4566-8425-e79b0d73c7 12%40sessionmgr4&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buh&A N=13043425 Cheung, C. M. K., Zhu, L., Kwong, T., Chan, G. W. W., & Limayem, M. (2003). Online consumer behavior: A review and agenda for future research. Retrieved July 15, 2009 from www.bledconference.org/proceedings.nsf/0/.../16Cheung.pdf eMarketer (2009, July 9). Is social network advertising ready for primetime. Retrieved July 17, 2009 from http://www.emarketer.com/Article.aspx?Ne=1040&N =779&No=6&R=1007165&xsrc=article_head_sitesearchx Gray, R. (2007, January 17). Market research: age of the 2.0 focus group. Marketing. Retreived on July 29, 2009 from http://search.ebscohost.com/login.aspx?dire ct=true&db=buh&AN=25253362&site=ehost-live Kaushik, A. (2007, September 14). Creating a data driven culture. [Video file]. Video posted July 17, 2009 from YouTube Web site: http://www.youtube.com/
  10. 10. Aaron  Abbott—www.BrandLessBox.com    10                       watch?v=OTu02Gab0Qw Loechner, J. (2009, July 14). Traditional marketing budgets lose to interactive. Retrieved July 17, 2009 from http://www.mediapost.com/publications/?fa=Articles .showArticle&art_aid=109611 Mooney, L. (2008, January 9). A Google face off with Apple? Bite me. Mobile Marketer’s Outlook 2008, 11. Retrieved July 24, 2009 from http://www.mobil emarketer.com/cms/lib/294.pdf Wehrs, M. (n.d.). Mobile marketing: mayberry or the wild west. Retrieved July 24, 2009 from http://www.mmaglobal.com/articles/mobile-marketing-mayberry-or-wild- west  

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