The document discusses various topics related to online consumer behavior and online marketing. It begins by explaining how the internet provides new opportunities for marketers to reach customers at low costs. It then discusses models of consumer decision making, including the five stages of awareness, search, evaluation, purchase, and post-purchase behavior. It also discusses factors that influence online purchasing decisions like trust and utility. The document also outlines different online marketing techniques such as search engine marketing, display ads, social media marketing, and mobile marketing. It provides details on various types of online ads, tracking and data collection methods used by marketers, and metrics to evaluate marketing performance.

1. SHADINA SHAH

2.  As a communication tool, the Internet affords marketers
new ways of contacting millions of potential customers at
costs far lower than traditional media.The internet also
provides new ways often instantaneous and spontaneous to
gather information from customers, adjust product offerings
and increase customer value.

3.  The study of consumer behavior is a social science
discipline that attempts to model and understand
the behavior of humans in a marketplace.
 Including sociology, psychology, and economics.
 Models of consumer behavior attempt to predict or
“explain” what consumer purchase and where,
when, how much, and why they buy.

5.  The consumer decision process and
supporting communications.
 There are five(5) stages in consumer
decision:
1. Awareness – need recognition
2. Search
3. Evaluation of Alternatives
4. Purchase
5. Post-purchase behavior

7.  It consist of two decision which is online and offline decision:
Online purchasing decision
Consumers purchase a product or service at a specific website.
Offline purchasing decision
Consumers purchase a product or service it based on
advertising on
 Clickstream behavior – the transaction log that consumers
establish as they move about theWeb.

9.  The picture of the internet use sketched in
the previous section emphasizes the
complexity of behavior online.
 The internet audience concentrated among
the well educated, affluent, and youthful.
 Clickstream shows that people go online for
many different reasons.

10.  Online sales divided into two(2) groups:
I. Small-ticket
II. Big-ticket
Small ticket
Apparel, software, book, office supplies,
health, beauty supplies, videos and toys.
Big ticket
computer hardware, furniture, consumer
electronics and jewelry

11.  Two most important factors decision to purchase
online:
 Trust
- Sellers can develop trust among online consumers by
building strong reputations of honesty, fairness, and
delivery of quality products.
- Trusting online relationship are perception of website
credibility, ease of use and perceived risk.
 Utility
- Good deals, bargains, convenience and speed of
delivery

12.  There are four (4) features of online
marketing that distinguish it from traditional
marketing channels:
1) Personalized
2) Participatory
3) Peer-to-peer
4) communal

13.  The most common “traditional” marketing
techniques for establishing a brand and
attracting customers were search engine
marketing, display ads, email campaigns and
affiliate programs.

14.  The five(5) main elements of a comprehensive
multi-channel marketing plan are:
1. Website
2. Traditional online marketing (search engine,
display, affiliate, e-mail)
3. Social marketing (video, games, blogs, social
networks)
4. Mobile marketing (apps, mobile or tablet sites)
5. Offline marketing ( newspapers, television,
radio)

15.  Online advertising
- A paid message on a website, online service, or
other interactive medium.
 Ad targeting
- The sending of market messages to specific
subgroups in the population.

16.  Search engine marketing (SEM)
- Involves the use of search engines to build and
sustain brands
 Search engine advertising
- Involves the use of search engines to support
direct sales to online.
 Organic search
- Inclusion and ranking of sites depends on a more
or less unbiased application of a set of rules
imposed by the search engine.

17.  Paid Inclusion
- For a fee, guarantees a website’s inclusion in its list of
sites, more frequent visits by its web crawler, and
suggestion for improving the results of organic
searching.
 Pay-per-click (PPC) search ad
- Primary type of search engine advertising
Keyword advertising merchant purchase keywords
through a bidding process at search sites, and
whenever a consumer searches for that word, their
advertisement shows up somewhere on the page.

18.  Network keyword advertising (context
advertising)
- Publishers accept ads placed by Google on their
websites, and receive a fee for any clicks-through
from those ads.
 Search engine optimization (SEO)
- Techniques to improve the ranking of web pages
generated by search engine algorithms.
 Panda
- Change in the Google algorithm to eliminate low-quality
sites from search results.

19.  Penguin
- Change in the Google algorithm to eliminate sites
with low-quality back links.
 Hummingbird
- Semantic search component of Google’s search
algorithm.
 Knowledge Graph
- Function in Google’s search engine that displays a
selection of facts related to your search term that you
may be interested in knowing more about.

20.  Social search
- Effort to provide fewer, more relevant, and trust worthy results
based on the social graph.
 Link farms
- Group of websites that link one another, thereby boosting their
ranking in search engines.
 Content farms
- Companies that generate large volumes of textual content for
multiple websites designed to attract viewers and search engines.
 Click fraud
- Occurs when a competitor clicks on search engine results and ads,
forcing the advertiser to pay for the click even though the click is
not legitimate.

21.  Banner Ads
- Displays a promotional message in a rectangular
box at the top or bottom of a computer screen.
 Rich media ad
- Ad employing animation, sound, and
interactivity, using Flash, HTML5, Java, and
Javascript.
 Interstitial ad
- A way of placing a full page message between
the current and destination pages of user.

23.  Video ad
- TV-like advertisement that appears as an in-page
video commercial or before, during, or after content.
 Sponsorship
- A paid effort to tie an advertiser’s name to
information, an event, or a venue in a way that
reinforces its brand in a positive yet not overtly
commercial manner.
 Native advertising
- Advertising that looks similar to editorial content.

24.  Content marketing
- Creates a content campaign for a brand and then
attempts to secure placement on a variety of
websites.
 Advertising networks
- Connect online marketers with publishers by
displaying ads an detailed customer information.
 Ad exchanges
- Auction-based on digital marketplace where ad
networks sell ad space to marketers.

25.  Programmatic advertising
- Automated, auction-based method for matching
demand and supply for online display ads.
 Real-time bidding (RTB) process
- Used to match advertiser demand for display ads with
publisher supply of web page space.
 Ad fraud
- Falsifying web or mobile traffic order to charge
advertisers for impressions, clicks, or other actions
that never actually occurred.

26.  Direct e-mail marketing
- E-mail marketing messages sent directly to
interested users.
 Spam
- Unsolicited commercial e-mail.

27.  Affiliate marketing
- Commissions paid by advertisers to affiliate websites for
referring potential customers to their website.
 Viral marketing
- The process of getting customers to pass along a
company’s marketing message to friends, family, and
colleagues.
 Lead generation marketing
- Use multiple e-commerce presences to generate leads for
businesses who later can be contacted and converted into
customers.

28.  Transaction log
- Records user activity at a website
 Registration forms
- Gather personal data on name, address , phone,
zip code, e-mail address, and other optional self-
confessed information on interests and tastes.
 Shopping cart database
- Captures all the item selection, purchase, and
payment data.

29.  Cookie
- Small text file that websites place on the hand disk of
visitor’s client computers that allows the website to store
data about the visitor on the computer and later retrieve
it.
 Deterministic cross-device tracking
- Relies personally identifiable information such as e-mail
address used to log into an app and website on different
devices
 Probabilistic cross-device tracking
- Use algorithms to analyze thousands of anonymous data
points to create a possible match.

30.  Profiling
- Profiling uses a variety of tools to create a digital
image for each consumer.
 Database
- A software application that stores records and
attributes.
 Database management system (DBMS)
- A software application used by organizations to
create, maintain and access databases.

31.  Structured query language (SQL)
- Industry standard database query language used in
relational databases.
 Relational databases
- Represent data as two dimensional tables with
records organized in rows and attribute in columns
data within different tables share a common data
element.
 Data warehouse
- A database that collects a firm’s transactional and
customer data in a single location for offline analysis.

32.  Data mining
- A set of analytical techniques that look for patterns in the
data of a database or data warehouse, or seek to model
the behavior customers.
 Customer profile
- A description of the typical behavior of a customer or a
group of customers at a website.
 Query-driven data mining
- Data mining based on specific queries.
 Model-driven data mining
- Involves that use of a model that analyzes the key
variables of interest to decision makers.

33.  Big data
- Huge data sets, often from different sources,
in the petabyte and exabyte range.
 Hadoop
- A software framework for working with
various big data sets.

34.  Cost per thousand (CPM)
- Advertiser pays for impressions in 1,000-unit
lots.
 Cost per click (CPC)
- Advertiser pays prenegotiated fee for each click
ad receives.

35.  Cost per action (CPA)
- Advertisers pays only for those users who perform a
specific action.
 Effective cost-per-thousand (eCPM)
- Measure return on investment from an ad by dividing
the total earnings from the ad by the total number of
impressions in thousands

36. THE END