The document discusses consumer behavior and online marketing. It covers several key topics: 1. What is consumer behavior and what influences it, both external factors like culture, age, and social class, as well as internal psychological processes. 2. How consumer research helps marketers develop marketing strategies by understanding how consumers make purchasing decisions and how different groups can be targeted. 3. The various methods used to collect consumer behavior data, such as surveys, focus groups, and experiments. 4. How consumer decision making works, from problem recognition through the post-purchase evaluation process. Memory and knowledge play important roles in consumer choices.

1. Consumer behaviour & Online marketing Goy 5350138 Ying 5350174 Ping 5350042 Nan 5350136 Jern 5350037 Tle 5350030

3. What is consumer behavior ? 1. Defining consumer behavior 2. What influences consumer behavior ? 3. Consumer’s impact on marketing strategy 4. Methods of data collection Chapter 1

4. 1.Defining consumer behavior Who is the consumer ? Consumer behavior and buying (Barter & Leasing) 1-

5. 2.What influences consumer behavior ? The model of consumer behaviour - External influences - Internal processes - Post-decision processes 1-

6. External influences The consumer’s culture - Religious & ethnic influences - Age and gender - Reference groups - Social class McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

7. External influences Religious & ethnic influences 1-

8. External influences Age and gender 1-

9. External influences Reference groups - Reference group is a set of people with whom individual consumers compare themselves in developing their own attitudes and behavior. 1-

10. External influences Social class - Power, Wealth, and Opportunities. 1-

11. Internal processes Psychological processes - Motivation - Perception - Knowledge - Attitudes - Memory Consumer Decision making - Problem recognition & information search - Judgment & decision making McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

12. Internal processes Motivation Advertising Promotion 1-

13. Internal processes Perception - Information about the product 1-

14. Internal processes Knowledge - Knowledge about the product and alternative choices 1-

15. Internal processes Attitudes - Positive attitude helps consumer to make decision easily 1-

16. Internal processes Memory - Memory holds information about products, services, shopping and product usage experiences. 1-

17. Internal processes Consumer Decision making - Problem recognition & information search - Judgment & decision making 1-

18. Post-decision processes McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

19. Post-decision processes Last step in decision–making process Evaluating the outcome 1-

20. 3.Consumer’s impact on marketing strategy Developing information about consumer behavior - Qualitative and Quantitative Primary and secondary data - Primary data: collect by individual researchers or organization to answer specific question - Secondary data: information that has already been collected by another person or organization 1-

21. 4.Methods of data collection Surveys Focus groups Interviews Experiments 1-

22. What do marketers learn from consumer research ? How should the market be segmented and targeted ? - Research helps marketer to segment their target customers. Changing the marketing mix 1-

23. Ethical issues in consumer research More information could lead to the invasion of consumers’ privacy. 1-

24. Ethnic, religious and group influences 1. Ethnic subcultures and consumer identity 2. Religious subcultures 3. Reference groups 4. Consumer-related reference groups Chapter 2

25. 1. Ethnic subcultures and consumer identity High-context and low-context cultures - Shared background Target immigrant group in impacted by level of acculturation - Acculturation - Assimilate 1-

26. Ethnic subcultures and consumer identity Target advertising and promotion - Influenced by the preferences of the target group Accommodation theory - Appreciate by the audience 1-

27. 2. Religious subcultures How can marketers target religious subcultures ? - Religion impacts on the value and behavior of consumer 1-

28. 3. Reference groups Aspirational reference group - Group that want to belong but currently are not the member Associative reference group - Formal or informal groups to which we belong Dissociative reference group - Unwanted association 1-

29. Reference groups How reference group influence behavior? - Normative influence (Perform an action to conform to another persons’ expectations) - Informational influence 1-

30. 4. Consumer-related reference groups Shopping Group Virtual Group - Make use of internet in order to connect with other people 1-

31. Class,age and gender influences Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 3

32. Introduction Social classes : are becoming increasingly blurred Age : Increasing of The senior market Gender : The market for products targeted to women has also grown An increase of women in the workforce

33. What is social class? “ The division of members of a society into a hierarchy of distinct status classes, so that members of each class have relatively the same status and members of all other classes have either more or less status”

34. What is social class? Factors can be used to determine social class 1. Education 2. Occupation 3. Income

35. Education more educated a person is the more likely they are to be employees in a profession that generates a lot of income

36. Occupation Occupation is a best indicator of social class. Based more on prestige than on objective criteria like income

37. Income Can predict what types of expensive purchases a consumer But is not a good indicator of social class

38. Age and Consumer identify Consumers’ needs and interests often change as they age Age effect Cohort effect

39. The senior market Population is expected to grow by 60% Spending money on exercise facilities, cruises and tourism, health care Seniors want the same goods and services, high royalty.

40. Marketing to teens Large size of the global market, 25% of population in China, 33% of population in India Spending money on clothes, eating out, cars, movies and phones Internet and social networking is the important marketing.

41. How gender affects consumer behavior agentic goals – goals that emphasize dominance and assertiveness communal goals – goals that focusing on harmony and establishing relationships

42. Consumer motivation, perception and attitude Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 4

43. Introduction Understand Why consumers who choose one product over another by using the theories of Motivation Perception Attitude

44. Consumer Motivation Motivation the processes that forces people to behave as they do, involving needs, goals and drives.

45. The Effects of High Motivation Organic food Consumers are highly motivated because of a commitment to HEALTHY LIVING and ENVIRONMENTAL RESPONSIBILITY

46. The Effects of High Motivation - Organic products are now available from all the major grocery brands - The majority of households buy organic food

47. Goals Generic goal specific goal

48. Consumer Perception Perception “ The process by which sensation are selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world”

49. Appealing to the senses consumers are exposed by one of 5 senses

50. Vision Marketers use a product’s SIZE, STYLING and COLOR In Cosmetic? Many visual characteristics of both PACK and PRODUCT are involved in consumer choice, consumption and liking.

51. Smell Scents can have a positive and negative impact on emotion and memory. Combine Scents with product and environment Scientist discover that smell have more effect on behavior therefore, manufacturer find new way to put scents into product (candle,card,sprey,etc.) Scents( กลิ่นเฉพาะ กลิ่นน้ำหอม ) can have a positive and negative impact on emotion and memory. Combine Scents with product and environment Many visual characteristics of both PACK and PRODUCT are involved in consumer choice, consumption and liking. In Cosmetic?

52. Consumer Attitude Attitude A lasting, general evaluation of an attitude object. (people , objects, advertisement or issue) Help to determine a number of preferences and actions.

53. Consumer Attitude Tri-components model of attitude

54. Consumer knowledge and memory Chapter 5

55. $ 45 M $ 40 M $ 90 M

56. What is knowledge ?

57. Types of Knowledge Structures Schema associations with an object grouped together in a meaningful way. Brand Image

58. Types of Knowledge Structures Scripts knowledge of a sequence of expected events in a given situation.

59. How is knowledge organized ?

60. Prototypes

61. How memory works ? Memory relate to what consumers remember about marketing and how they access and retrieve information when making consumption choices

62. The memory process Encoding Retrieval Environmental input Sensory memory Short-term memory Long-term memory Storage

63. Nostalgia marketing 1947 2003

64. The consumer as a decision maker Chapter 6

65. Essential assumptions

66. The decision-making process Problem recognition Information search Judgment Decision making Post-decision processes

67. Problem recognition Ideal state Ideal Ideal Actual state Actual Actual No problem Opportunity recognition Need recognition

68. Problem recognition Generic problem recognition Selective problem recognition

69. Generic problem recognition

70. Information search Internal search for information External search for information Searching in the consumer ‘s own memory Television , billboard advertising ,internet

71. Judgment and decision making Country-of-origin effects

72. Evaluation: Narrowing the alternatives Retrieved set Evoked set Consideration set Chosen brand Retrieval Search Evaluation Choice Inert set Inept set All brands ⁺ Yes Found Acceptable No Not Found Unacceptable

73. What influences consumers’ decisions? Framing effect Task effect Loss aversion 95% fat-free Heuristics

74. What influences consumers’ decisions? Representativeness Availability Low – effort decisions

75. Post- decision processes

76. Expectation disconfirmation model Choice Performance Expectations Disconfirmation Satisfaction Dissatisfaction + –

77. Coach 15250 Kahki/brown

78. Digital Media Revolution Chapter 1

79. The digital media revolution Growing acceptance that digital trends such as social media are altering the way businesses reach consumers VS 1-2

80. The digital media revolution 1-2

81. Noise Noise can be Advertising clutter Consumer inattention Negative publicity market’s product A primary cause of noise Consumer confusion 1-4

82. Online alternative YOU TUBE.com Top website, worldwide when registered users. The video can be put into Share this video with others. If not registered, you can playback video that others have put it on 1-5

83. Effect from digital revolution Media fragmentation One of the most significant effects of the digital revolution To opposing forces of fragmentation and convergence To happening concurrently To be a key reason why today’s digital media landscape is so hard for marketer to navigate 1-6

84. The consumer adoption curve 1-7

85. Case study : Telecom New Zealand Use both of tradition and online Focus on youth market Create Rubbish film ,encouraged people to make and send video clip via their new high-speed 3G mobile network Top five website , 400,000 pages hits,1 million visits

86. Search Marketing Chapter 2

87. 1.Is search really considered marketing? Meet the needs of an demanding online audience 90% of people use search to launch websites 62% of searchers don’t go beyond the first page 2-1 People need to find you easily!

88. What is Search Marketing All about consumer request information, which create unique challenges for marketers who are used to pushing information onto consumer directly. 2-2 Source : www.onlinemarketing-trends.com

89. 2.Natural Search or Organic Search Free function of search engine provider Most relevance keywords is must Ex. Insurance Company ; not only ‘Insurance’ , ‘Insurance company’ , ‘rate quote’ but must be ‘wind’ , ‘storm’ , ‘broken window’ , ‘leak’ etc. 2-3

90. 3.Paid Search Paid for a guaranteed place on the search result base on marketers paying for that placement . Google sell these position (called ‘Search Ads’) for keyword or phase base on auction 2-4

91. Natural & Paid Search 2-5

92. Cost per click Search ads sold on cost per click (CPC) basis. Cost can be cheap or expensive depend on word Ex. ‘Mesothelioma’ (a rare form of cancer) sold almost $100 per click. 70% of people choose organic listing first. Natural listing lend credibility to paid one. 2-6

93. Click fraud Some ads can be exploited by program that click on them continuous basis. The cost happen but not reach target group 15-26% of all clicks, most are click fraud Search engine must discount or rebated if click fraud was founded. In 2009 ‘Rootzoo’ sued Facebook ; actual click 300 but they ware charged from facebook for 804) 2-7

94. Example Search : Dell 2-8

95. Example Search : Dell 2-9

96. 4.From marketing push to customer pull 2-10 Analogue World : Approximate number of daily exposure to advert Digital World : Approximate number of daily exposure to advert Marketers push their message More Media 200,000 adverts Axis of control Filtered by consumer’s choice of media Less Consumer receives thousands of adverts (many if which are irrelevant) Consumer pull in dozens of adverts relevant to their search and intention Search filter pulls in relevant adverts More Marketers Less Media 200,000 adverts Axis of control

97. Case Study Google Vs. Bing 70% of all search queries world wide Brand equity was calculated at $100 Billion Also own YouTube Merger between Microsoft & Yahoo (search business) Improve ability to get the right information more quickly Improve ability to make complex decision ‘ decision engine’ not ‘search engine’

98. 5.Potential future of Search The most interesting potential future for search is social search. Base on the recommendations of a vast extended social network of people like you your more personality like age, ethnicity, geographic location or attitude Example : ‘ Spezify ‘ & ‘ Hunch’ 2-13

99. Example : Future search 2-14 Source : www.elliance.com

100. 6.Summary Search is foundation of all online marketing Continual search engine optimization is key to continual success in natural search. Buying the right keywords of phrases at the right price is key to success in paid search. 2-15

101. E-Commerce and E-Branding Chapter 3

102. E-Commerce and E-Branding e B a y “Pioneering E-Commerce” The internet has opened up a dynamic channel for commerce - often offering consumers a much wider choice of products than they could find offline. In some cases, such as eBay, purchases are made directly. In others, commerce is facilitated by marketing websites. 3-2

103. The internet as a storefront Online as a branding opportunity 3-3

104. The internet as a storefront The Best Example “Amazon” 3-4

105. The Long Tail 3-6

106. E-Branding Pitfalls & Pratfalls Target’s Times Square outdoor advertisement Target is a brand that bring powerful visual consistency to everything, they do online and offline. Consistency between what a brand does on the Web and in its other media messages is important. 3-9

107. Advertise on Web Chapter 4

108. Advertising on the Web Display ads are the ads you often notice first when you visit website. Banner ads Skyscraper Rectangles Buttons 4-1

109. 7 practical tip Design your ad for specific sites Animate your ad Keep copy brief and provocative Test multiple design format Use a professional graphics artist Reduce the file size of your ad to improve loading speed Evaluate performance daily 4-2

110. Interactivity Enabling users to interact with the audience Pop up make user annoying which can’t drive sale in the online purchase 4-3

111. CPM VS CPC CPM or Cost Per Mille is a fee-per-appearance 1,000 times ,you will pay the cost 100 baht CPC or Cost Per Click is a fee-per-click advertising, You will pay when someone clicks on your ad. 4-4

112. How to make ads more effective Offer a deal (discount) Use an involvement device (contest or Challenge) Frequently, perhaps even daily Keep writing succinct Attention to offer knowledge 4-5

113. Case BMW 4-6

114. Viral marketing Event or something that makes people enjoy interesting and forwarded to others via online media Things to do for successful viral ads Avoid hard product sell Emphasis on "extremely” 4-7

115. E-mail marketing To reach targeted customers with direct mail The objective is want to promote, advertise, or distribute information 4-8 OPT-IN This gives the consumer an opportunity to request to receive e-mail from a specific marketer OPT-OUT This gives the consumer the request to stop receiving e-mail from a specific marketer VS

116. The Social Web Chapter 5

117. 1.Blog (Web log) Individual posting their opinions to a website like the diary online. Conversation between blog writer & their audience Ex. The Huffington Post 5-2

118. Influencing blog & the influence of blogs Blog influencing consumers’ purchase behavior Blog sell their ad space with reasonable price Harder is influence bloggers to say good thing about your product Marketers use many strategies to influence blogger or blog contributors 5-3

119. Marketers in sheep’s clothing In 2003, The ‘Raging Cow In US 2009, FTC requiring blogger to disclose any ‘material connection’ to advertiser include payment or free products. 5-4

120. Wikis Come from Hawaiian mean ‘Fast’ Designed to allow people to collaborate in building site content Most famous & successful is ‘Wikipedia’ 5-5

121. Wikipedia Information must develop from a neutral point of view Information should be verified. Information should not be based on original search Combine knowledge of million of people 5-6 Imagine a world in which every single person on the planet is given free access to the sum of all human knowledge. That’s what we’re doing

122. Crowdsourcing Ability to gather large groups of people around your brand & get them working to develop product and/or solution Even NASA uses crowdsourcing. Ex. Unilever offer prize to winner of competition 5-7

123. Social Media Challenge Iran’s state-controlled media

124. 4.Social Network Fastest growing phenomenon on the web. 2/3 of world’s internet population visit them 71% of user said can’t live without them 5-9 Social Entertainment

125. Facebook active user 5-10 Source : http://en.wikipedia.org/wiki/Facebook

126. Harnessing social network Change the way that consumer hear about, learn about & decide about which product they buy BusinessWeek describe the change, ‘ Word of mouth – peer opinion - has rated the most credible source of information, Credibility now has a channel for mass distribution’ 5-11

127. Advertising on Social Network Marketers need to reframe from advertising on social network to influencing the conversations on social network 7 Eleven ‘Text Mining’ Another way using Twitter ; Tweet with Superstar & celebrities 5-12

128. Twitter Allow individual to stream message to those people who want to ‘Follow’ Limited to 140 characters to describe ‘What they are doing now’ Knowledge Network recommended ‘ Less a way to directly reach customer, and more a way to reach passionate voice who may influence perception of your brand’ 5-13

129. Case Study : Barack Obama’s election campaign

130. 5.Second Life & MMORPG 5-15

131. Create Avatar in Virtual world Simpsonize ME 5-16

132. Engaged Customer Big opportunity in gaming due to higher level of involvement Brand need to engaged people and active engaged in discussion with people not just hand over control and step aside . 5-17

133. Successful social web marketing Tips for successful Make the experience better when shared Give user something to join Refresh content regularly ‘ 7 Step’ process for marketers to get it right 5-18 Observe Recruit Evaluate Platform Engage Measure Promote Improve

134. Mobile Marketing Chapter 6

135. 1.Mobile phone marketing 1000% growth rate over 4 years of mobile New generation highly capable smartphone, Mobile marketing has now come of age People use devices more than anything for all significant communications touch points in their lives 6-1

136. 2.SMS Text marketing One of first & still most common forms. Require customer to ‘opt in’ Higher response rates than internet display ads 2-10 times higher Potential impact of text msg. on their relationships with consumers 6-2

137. Principles of great mobile website Ten keys for mobile website; 6-3

138. 3.Mobile Apps Mobile apps need to add value for customer & solve a real problem. Ex. Guinness’s Mobile Apps Both platform for Iphone & Andriod is important 6-4

139. 4.Future Possibilities for mobile 6-5

140. 5.Summary ‘ Widgets’ or ‘apps’ providing the everything from shopping assistants to translation service to cooking receipt for impact touch point of consumer 6-6

141. Measurement and analytics Chapter 7

142. Making analytics actionable Step 1 Leverage benchmarks and goals 7-1

143. Making analytics actionable Step 2 Create high-impact executive dashboard 7-2

144. Making analytics actionable Top performance (KPIS) Of SEMPO 7-3 Traffic volume Convention rate Click-through rate ROI Cost per click Cost per action Cost of generating sales offline Total number of online sales Overall revenue increase Return on ad-spend Rank of link on search engine Brand impact

145. Step 3 Use best practices Embrace churn One metric,one owner Walk the talk Measure the effectiveness of your dashboards 7-4

146. Example SAP ‘s Dashboard

147. Example Google ‘s Dashboard

148. Ethical approaches Chapter 8

149. Ethical Approaches Privacy Protecting customer privacy 8-1

150. Ethical Approaches Selling personal data 8-2

151. Online marketing to children Time and attention concerns 8-3 Ethical Approaches

152. Ethical Approaches 8-4 Online marketing to children Vulnerbility to advertisers’s messages and tactics

153. Ethical Approaches 8-5 Online marketing to children Differentiation between reality and fantasy

154. Q&A