Alexander Linder, Swarovski, Switzerland

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ESOMAR

The slides from the presentation of Alexander Linder for the privacy in SMR session at ESOMAR Insights 2011.

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Week 3 Turban Chapter 3 Tuten Chapter 1 Supporting Theories and Concepts for Social Commerce Learning Objectives Describe the factors that influence online consumer behavior. Understand the decision-making process of consumer online shopping & other related theories. Explain how consumer behavior can be analyzed for creating personalized services. Describe online word of mouth and its benefits. Define online engagement and describe its influence on social trust. Describe social psychology theories relevant to social commerce, social network analysis, the social graph & social capital. Opening Case: Netflix Increases Sales Using Movie Recommendations by Customers The Problem Customers often have difficulty deciding what they want to watch so they choose the most recent and popular titles The Solution Using the “recommendation algorithm” compares an individual’s preferences with people that have similar tastes by using the collaborative filtering software Opening Case: Netflix Increases Sales Using Movie Recommendations by Customers The Result Effective recommendations – 60% follow 75% watch based on recommendation Customer satisfaction – 90% Finance – growth in membership Ratings – 3.5 billions ratings Lessons Learned from the Case This case illustrates the use of collaborative filtering to influence customers Netflix’s recommendation algorithms (AI) are designed to increase customer satisfaction and loyalty Netflix gained a substantial advantage over its competitors Learning Objectives Describe the factors that influence online consumer behavior. Cultural culture sub-culture social class Social groups social network family and household roles and status Personal age life-cycle occupation economic situation life-style personality self-concept Psychological motivation perception learning beliefs and attitude Need recognition Info search Evaluation of alternative Post-purchase Behaviour Purchase Figure 3.1 EC Consumer Behavior Model Learning Objectives Describe the factors that influence online consumer behavior. Understand the decision-making process of consumer online shopping & other related theories. The Consumer Purchasing-Decision Process The AIDAS Model A—Attention (awareness) I—Interest D—Desire A—Action S - Satisfaction Five steps of Purchase Decision Making Process: Need identification: notification. Information Search: Product brokering (e.g. electronic catalog) or merchant brokering (google). Evaluation of alternatives: comparison, samples, etc. Purchase and delivery: ordering, payment, delivery. After-purchase evaluation: customer support, installation, returns, etc. <More on week 7 Social Shopping> Consumer Purchasing-Decision Process Impact of Internet Media on Purchase Decision Process Inform. search Inform. search Social Media Social Media Social Media e.g SCRM, Ratings, Chatbot Social Media e.g. Blogs, Influencers, Artificial Intelligence AI Marketing objectives ...

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