Part One: Chapter Four Individuals Online

1. Internet Marketing & e-CommerceWard HansonKirthi KalyanamRequests for permission to copy any part of the material should be addressed to: PERMISSIONS DEPARTMENTTHOMSON BUSINESS and ECONOMICS5109 Natorp BoulevardMason, OH 45040Phone: (800) 423-0563

2. Part One: Chapter FourIndividuals Online “I know you. You tell me what you want. I make it. I remember next time.” D. Peppers and M. Rogers, Tools for Competing in the Interactive Age

3. Individualizing the Internet • Changing the nature and quality of online interactions

4. Individualizing the Internet • Changing the nature and quality of online interactions • Reacting to the user’s knowledge and level of technological sophistication

5. Individualizing the Internet • Changing the nature and quality of online interactions • Reacting to the user’s knowledge and level of technological sophistication • Tailoring a mass market message to an individual’s wants and needs

6. Individualizing the Internet • Changing the nature and quality of online interactions • Reacting to the user’s knowledge and level of technological sophistication • Tailoring a mass market message to an individual’s wants and needs • Building intelligence into business systems and planning

7. Patterns of Internet Use Where we go online: Share of time among U.S. users

8. Patterns of Internet Use What we do online: The tasks of everyday life Source: Pew Internet Project

9. Dual Budget • Time and Money Tradeoff • Online activities are time saving and time consuming • Efficiency enhancer and provides entertainment • Time saving in browsing is critical • Ultra speed of access and powerful search engines

10. Patterns of Internet Use Who’s Online? The role of age, income and education • About 60 percent of the population is online in advanced economies

11. Patterns of Internet Use Who’s Online? The role of age, income and education • About 60 percent of the population is online in advanced economies • Across the globe, people under 24 show highest Internet use rates

12. Patterns of Internet Use Who’s Online? The role of age, income and education • About 60 percent of the population is online in advanced economies • Across the globe, people under 24 show highest Internet use rates • In the U.S., college education is key factor in likelihood of Internet use

13. Patterns of Internet Use Who’s Online? The role of age, income and education • About 60 percent of the population is online in advanced economies • Across the globe, people under 24 show highest Internet use rates • In the U.S., college education is key factor in likelihood of Internet use • 80% of U.S. households with income >$75,000 have Internet access; 40% of households with income <$25,000

14. Patterns of Internet Use Who’s Online? The role of age, income and education Source: U.S. Census Bureau

15. Online User Activity • Commerce • Sites designed for shopping online • Communication • To facilitate the exchanges of thoughts and messages • Content • To provide news, information and entertainment • Search • To provide prioritized results based on user request

16. Online Behaviors and Biases • Users treat machines and software much like they treat real people • Researchers B. Reeves and C. Nass called this the media equation • For marketers, judgments and assumptions made in real life campaigns are generally valid online

17. Online Behaviors and Biases • Manners matter: Users prefer polite computers and respond favorably to flattery online

18. Online Behaviors and Biases • Manners matter: Users prefer polite computers and respond favorably to flattery online • Users react favorably to websites and online messages matching their own personality

19. Online Behaviors and Biases • Manners matter: Users prefer polite computers and respond favorably to flattery online • Users react favorably to websites and online messages matching their own personality • Biases and stereotypes persist online just as they exist in the real world

20. Online Behaviors and Biases • Lack of social clues and quality clues online can change user interaction • Absence of face-to-face interaction can change meeting structures and results • Misunderstandings and email “flaming” • Uncertainty about a website’s veracity or a brand’s authenticity makes consumers vulnerable to manipulation

21. Individualization • Ability to link individuals to specific products, information and companies allows fundamental change in marketing strategy

22. Individualization • Ability to link individuals to specific products, information and companies allows fundamental change in marketing strategy • While digital computing and networking well-established technologies, individualization still emerging and more controversial

23. Individualization • Ability to link individuals to specific products, information and companies allows fundamental change in marketing strategy • While digital computing and networking well-established technologies, individualization still emerging and more controversial • Concerns about invasion of privacy and government abuses

24. Individualization and Authentication • Identifying a user or device online • Tokens – such as passwords or other information – used to identify users • Every authenticated system requires a proprietor; no universal system exists • Breakdowns in authentication security often result of human, not technical, error or cunning

25. Individualization and Association • Connecting observable online choices with a customer profile EXAMPLE: Amazon.com and suggestions for reading selections • Precision matters – mistakes in inference and association can damage customer relationship

26. Individualization and Interaction • Online activities should reflect the specific needs and wishes of individual users • Each increase in interactivity should build and deepen customer relations • Different communication modes employed for different customers

27. Individualization and Interaction Dell Computer’s Approach to Customer Interaction