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JUDYSTRAUSSANDRAYMONDFROSTChapter7:ConsumerBehaviorOnline?2009PearsonEducation,Inc.PublishingasPrenticeHall7-1Chapter7ObjectivesAfterreadingChapter7,youwillbeableto:Discussgeneralstatisticsabouttheinternetpopulation.Describetheinternetexchangeprocessandthetechnological,social/cultural,andlegal

contextinwhichconsumersparticipateinthisprocess.Outlinethebroadindividualcharacteristicsandconsumerresourcesthatconsumersbringtotheonlineexchange.Highlightthefourmaincategoriesofoutcomesthatconsumersseekfromonlineexchanges.7-2?2009PearsonEducation,Inc.PublishingasPrenticeHallTheCustomer’sStory?2009PearsonEducation,Inc.PublishingasPrenticeHall7-3Atypicalone-houradventureinthelifeofa25-year-oldprofessionalmale,Justin:TuneshisiPodtothelatestDiggnationpodcastwhilehisTVistunedtoasoccergameandhiscellphoneandPCarewithinreach.Picksuphiscomputertofindablogmentionedduringthepodcast,seesavideoontheblog,andtextsafriendaboutthevideo.TheCustomer’sStory,cont.?2009PearsonEducation,Inc.PublishingasPrenticeHall7-4JustinsearchesforthevideotitleonGoogleandfindsajobpostingonVimeo,anonlinevideo-postingsite.HepostsalinktothevideoandVimeositeonhisTwitterstream.Justinisthenewconsumer:amultitaskerinterestedinthesocialmedia.Howcanamarketercapturedollarsfromthesebehaviors??2009PearsonEducation,Inc.PublishingasPrenticeHall71%ofU.S.consumersusetheinternet;theother29%canbecharacterizedas:NetevadersNetdropoutsTrulyunconnectedIntermittentusersConsumersinthe21stCentury7-5Consumersinthe21stCentury,cont.?2009PearsonEducation,Inc.PublishingasPrenticeHall7-6In2007,1.4billionpeoplehadaccesstotheinternet,19%oftheglobalpopulation.Tencountriesaccountfor53%ofallglobalusersandadoptionratesrangefrom69-88%.Internetusageindevelopednationshasreachedacriticalmass,leadingmarketerstoaskmorequestionsaboutconsumerbehaviorontheinternet.InternetReachesMaturity:1996-2008?2009PearsonEducation,Inc.PublishingasPrenticeHall7-7Exhibit7.1?2009PearsonEducation,Inc.PublishingasPrenticeHallExchangeisabasicmarketingconcept.Itreferstotheactofobtainingadesiredobjectbyofferingsomethinginreturn.Exchangeoccurswithinthefollowingcontexts:TechnologicalSocial/culturalLegalTheInternetExchangeProcess7-8TheOnlineExchangeProcess?2009PearsonEducation,Inc.PublishingasPrenticeHall7-9Technological,Social/CulturalandLegalContextIndividualCharacteristicsResourcesInternetExchangeOutcomesConnectEnjoyLearnTradeMarketingStimuli?2009PearsonEducation,Inc.PublishingasPrenticeHallTechnologicalContext50%ofonlineAmericansconnecttotheinternetathomewithabroadbandconnection.Broadbandusersenjoymoremultimediagames,music,andentertainmentthandothoseaccessingfromamobiledeviceor56K(dial-up)modem.ThetypicalU.S.homehas26differentelectronicdevicesformediaandcommunication.Consumersspendanaverageof1.5hoursonlinedaily.7-10MediaUseonanAverageDay?2009PearsonEducation,Inc.PublishingasPrenticeHall7-11Exhibit7.3?2009PearsonEducation,Inc.PublishingasPrenticeHallSocialandCulturalContextsOneofthemostimportantsocialtrendsisthatconsumerstrusteachothermorethantheytrustadvertisingorcompaniesonline.Social/culturaltrendshaveahugeeffectononlineexchanges.Sophisticatedconsumers.Informationoverloadoverwhelmsconsumers.Multitaskingspeedsupnormalprocessesandlowersattentiontoeachtask.7-12?2009PearsonEducation,Inc.PublishingasPrenticeHallSocialandCulturalContexts,cont.Homeandworkboundariesaredissolving.Consumersseekconvenienceandhavehighexpectationsregardingcustomerservice.Consumerscannotdowithoutinternetaccess:“onlineoxygen.”Self-serviceisrequired.Privacyanddatasecurityareparamount.Onlinecrimeworriesconsumers.7-13?2009PearsonEducation,Inc.PublishingasPrenticeHallDespitepiracylaws,illegallyusedsoftwareabounds.InspiteoftheCan-Spamlaw,thenumberofunsolicitedemailshasincreased.However,whentherecordingindustrysuedthousandsofillegalmusicfiledownloaders,consumerbehaviorchanged.In2002,37%ofonlineconsumerssharedmusicfiles.Only23%sharedfilesin2004.LegalContext7-14?2009PearsonEducation,Inc.PublishingasPrenticeHallIndividualcharacteristicsaffectinternetuse.Age,income,education,ethnicity,andgender.Attitudestowardtechnology.Onlineskillandexperience.Goalorientation.Convenienceorpriceorientation.IndividualCharacteristics&Resources7-15ConsumerResources?2009PearsonEducation,Inc.PublishingasPrenticeHall7-16Consumersperceivevalueasbenefitsminuscosts.Thesecostsconstituteaconsumer’sresourcesforexchange:MoneyTimeEnergyPsychiccosts?2009PearsonEducation,Inc.PublishingasPrenticeHallTheinternetexchangedoesn’tusecashorpaperchecksforonlinetransactions.Therearemanyformsofdigitalmoney.Creditanddebitcards.Electronicchecksthroughathird-partysuchasPayPal.SmartcardsorSplashPlastic.Otherinnovativeformsareappearinginothercountries.InSouthKoreasomemobilephoneshavechipsthatallowvendingmachinepurchasesbyphone.MonetaryCost7-17?2009PearsonEducation,Inc.PublishingasPrenticeHallOnlineattentionisadesirableandscarcecommodity.Worldwide,theaverageusergoesonline34times/month,69minuteseachtime,visitingover1,500Websites.Someresearchersbelievethatconsumerspaymorefocusedattentiononlinethanwithothermedia.HoffmanandNovakappliedtheconceptofflowtoonlinebehavior.TimeCost7-18?2009PearsonEducation,Inc.PublishingasPrenticeHallGlobalInternetUsage:Exhibit7.6197-19?2009PearsonEducation,Inc.PublishingasPrenticeHallEnergyandPsychicCostsIttakesefforttologonandchecke-mail,especiallyfordial-upusers.Shorttextmessaging(SMS)viacellphonesandPDAsisbecomingmorepopular.Consumersapplypsychicresourcestounderstandinformationorwhenfacingtechnicalproblems.Shoppingcartabandonmentandfailedonlinepurchaseshavenumerouscauses.TechnicalreasonsMarketingproblems7-20?2009PearsonEducation,Inc.PublishingasPrenticeHallExchangeOutcomesThereare5basicthingsthatpeopledoonline:ConnectCreateEnjoyLearnTradeEachisripewi

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