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Chapter Six Marketing Research On The Internet The Internet and MR Who uses the Internet and for what purposes Primary data collection on the Net Secondary data collection on the Net The Global Village Marshal McLuhan (1911-1980): communications visionary Global Traffic Index:

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Chapter Six

Marketing Research

On The Internet


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The Internet and MR

  • Who uses the Internet and for what purposes

  • Primary data collection on the Net

  • Secondary data collection on the Net


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The Global Village

  • Marshal McLuhan (1911-1980): communications visionary

  • Global Traffic Index:

    • http://www.internettrafficreport.com/main.htm

  • Internet shopping statistics:

    • http://www.shop.org/learn/stats_intshop_general.asp

  • Almost 55 million net shoppers (e.g. Cyber Monday)

    • sales substantially higher than on Black Friday – 77% of e-tailers

    • Jewelry, consumer electronics, gourmet food and furniture

  • Consumer buying – growth rate 53% (Forrester Research)

    • Travel ($8.6 bn.), electronics ($8.2 bn.), groceries ($6.5 bn.)

  • 50% of HH have PCs and modems – faster connections are in the works (e.g. T1 & T3 lines)


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Internet Growth Statisticshttp://www.internetworldstats.com/emarketing.htm


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Understanding the Internet

  • CommerceNet – California-based industry association with over 600 organizations world-wide as members

  • Nielsen Internet Demographics Survey (6th survey in 1999) telephone interview of 7200 persons to identify usage, behavioral patterns over time


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Profiles of Web users

  • 48% women (up by 7% over the last two years)

  • 25% users from the 31-40 age group

  • Multi-faceted web usage –greatest use for reference material, product information; least use for online chats

  • 21% are in the $50K – $74K income group; 12% in the over $100K group

  • 52.6% bought books; 48.5% bought computer hardware; insurance and generic groceries online: 2.5%


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Understanding the Internet

  • I/PRO & Web Trends – software for measurement and analysis of website usage; tracks times and dates the site is accessed; region; path taken, etc.

  • Log file analysis

  • Each accessing computer has a unique IP number


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Log File Analysis

  • New area for marketing research

  • Gather information about user without asking.

  • Systematic measurement of web site visitors

  • Log file monitors each accessed file and collects data about visitor.

  • Important information for marketing research, web site planning, web advertising


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Log File Analysis

  • How many users visit the site daily? Is that number growing?

  • What paths do visitors take when they browse your Web site?

  • From what countries do users connect? What cities? What states?

  • From what departments do users connect to the Intranet Server?

  • Which is the most active day of the week? The most active hour?

  • What kind of information is accessed on your server?

  • Which pages are the most popular?

  • How many users are accessing each directory?

  • Which forms are submitted more than others?


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Primary Research on the Web

  • Online focus groups

    • Cheaper, more convenient, equal participation from all respondents, minimal undue influence, greater honesty

    • Non-verbal signals lost, interaction may not be as dynamic as in face-to-face groups

    • The entire discussion is easily recorded on computer for future use

    • Advanced software which can be programmed to identify discussed words and phrases and quantify the discussion


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Primary research on the web

  • Online questionnaires

    • Can be linked directly to an Excel / SPSS database (saves data entry errors)

    • Respondents can be from all over the world

    • Can force respondents to answer all questions

    • Preceded by a recruiting email that gives the opt-out option


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Primary research on the web

  • E-Mail surveys

    • More primitive form of an online web survey

    • Hit the reply button, check your responses and send

    • Questionnaires delivered / responses received fast

    • Less expensive and time-consuming than traditional surveys

    • Usually read (and therefore answered) only by the recipient

    • Allows respondent to respond at a convenient time

    • Research shows that if respondents do not reply to the email within 12 hours of receipt, their probability of response will plummet


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Primary research on the web

  • Online experiments

    • More difficult to create the controlled environment needed for an experiment

    • Pre-test and post-test questionnaires

    • Manipulation administered on computer

  • Online panel

    • Cheaper, faster alternative to usual consumer panels.

    • Respondents visit website and fill out questionnaire at frequent intervals or when requested.


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Secondary Research on the Web

  • Internet (www)

    • High speed, broad scope, low cost option for all

  • Professional databases (Lexis-Nexis, EBSCO, etc.)

    • High speed, accurate searches, structured information, narrow focus, high quality, expensive information

  • Custom search services (e.g. Dow Jones)

    • Wide searches in a specialized area for a fee


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Secondary Research on the Web

  • Cyberatlas – internet market size, growth, forecast and demographics

  • Forrester Research: New Media Research

    • How is information priced on the web?

    • How should web ads be priced? – Cost / 1000 hits or click throughs.

    • Address problems associated with Internet ad effectiveness measurement, e.g. exposures, hits, click throughs, etc.

  • AdCount – measures effectiveness of web ads through click throughs


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Secondary Research on the Web

  • HERMES (University of Michigan) & Project 2000 (Vanderbilt University) & GVU (Georgia Inst. of Tech.) Surveys

    • Predicting consumer and corporate trends

    • Generate marketing knowledge

    • http://www.gvu.gatech.edu/user_surveys/survey-1998-10/

  • Media Metrix

    • Patented metering technology to measure internet user behavior in real time

    • Captures in-depth demographics of a sample of over 100,000 users world-wide

    • Usage can be linked to sample demographics


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Agent Technology

Intelligent software that keeps an eye on topics and sites of importance for an individual. They deliver information and alert when developments require attention. Besides monitoring activities, agents can search the Web and combine the information of very different information sources.

  • Competitive intelligence is prime area for agent activity (monitor web sites of competing manufacturers, dealers, and or retailers, collect corporate and product information)

  • Example: News monger. Searches the approximately 200.000 daily postings on the Usenet.

  • Searches are typically scheduled at night.


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Ethical dilemmas

  • Sharing private information without consumer’s knowledge

    • ESOMAR issues guidelines on information collection and sharing (voluntary co-operation, anonymity, prior disclosure of information sharing practices, disclose identity of researcher, describe survey methods and provide for opt-outs)

    • http://www.esomar.org/

    • TRUSTe – audits privacy practices of sites and awards its logo as a seal of approval to sites which pass its test

    • http://www.truste.org/

  • 40% of consumers falsify their information on the web


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