Factors Influencing Online Consumer Behavior and Advertising Personalization, Slides of Business Administration

Download Factors Influencing Online Consumer Behavior and Advertising Personalization and more Slides Business Administration in PDF only on Docsity! 1 ONLINE CONSUMER BEHAVIOR AND ADVERTISEMENT Sales‐focused web sites Highly competitive environment. Competitor only a  click away. Once consumer has decided to buy, key questions:  If product we offer is unique,  If product is not unique, how will I get customers to buy  from me? Docsity.com 2 Understanding customer decision making How will customer decide what to purchase and who to  buy from? Above 2 elements change  We can know general customer characteristics, but  must supplement that with knowledge of our actual                and prospective customers. Selection factors for consumers—product issues How expensive is the product? Price not the only factor, but generally significant. Lowest price doesn’t always win. But if not lowest,  Docsity.com 5 Electronic Commerce 2008 by Turban, Lee, King, McKay, and Marshall Getting to know an invisible customer What are we looking for? build a personal profile to explain and predict online buying  behavior Learn about an individual customer        What products does he like? What styles/sizes/color/etc. does he purchase? What questions does he have? What else would be helpful for him to know? Look for trends on the whole          Are particular product sales spiking? Which site pages are most typically visited? Not visited?   Why? Docsity.com 6 Getting to know customers Solicit information directly from the user. Ask them  questions! Build from previous purchase patterns Perform marketing research “Observe” what people are doing online Personalization The matching of services, products, and advertising  content to individual consumers      One‐to‐one marketing Marketing that treats each customer in a unique way Tracking methods Log‐file Analysis— How many visitors? What products looked out? What ‘path’ did they take through store? How long did they linger over items? Data mining—in‐depth examination using algorithms  and tools looking for “hidden” information. T h d t b il bl d b ioo muc   a a may  e ava a e—nee   us ness  intelligence to organize, edit, condense, and  summarize. Docsity.com 7 Customer volunteered tracking methods Customer registration allows us to identify their  activities. Cookies—typically used for customer identification and  tracking. Can be used to track known or anonymous user. Considered voluntary. Is it really? Tracking vs. Privacy Is my tracking of customer activity invading their  privacy? Do I have a right to… make a record of all customer activity on my site? use that information to build an individualized  customer profile? give that information to other companies I partner  with? sell that information to others? publish it? Docsity.com 10 Banner placement May pay based on time (rare), number of views (CPM),  number of clicks (click‐thru), or variations (pay per  lead, pay per sale, etc.). Banner swapping—two companies agree to display  each other’s banners. Banner exchanges—multi‐company system of bartering  banner ad displays and placement. Measuring effectiveness:  —ratio of number of times an ad is clicked vs.  number of times it is displayed. Other Ad and promotion types —ad interrupts navigation and requires user  to dismiss ad to continue. “Forced” ad Often used when user is downloading content ‐advertising based in games the user  plays. Email advertising‐‐solicited (“Opt in” lists) word of mouth marketing by‐‐ ‐ ‐       customers, often in social networking sites. Docsity.com 11 Important issues Novelty of web is wearing off.  Businesses looking hard at  data. Have to draw people to our site for it to be effective.  (Use  traditional advertising)  Quality of presentation hard to control—medium not  “fixed” in presentation like most (vs. TV, magazines, etc.)  (Flash, Javascript, etc.) Virtual community nature of web may allow us to invent  new types of “advertising” Customer contributed product reviews Customer oriented suggestions, groupings, etc. Feedback can be much more distributed Docsity.com