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T-Commerce and Consumer Theory. CSR 63100 Hye Young Hah. As we go along. The Introduction of T-Commerce and IPTV The Application to Consumer Theory The Marketing Implication s. What T-Commerce Is. Definition

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t commerce and consumer theory

T-Commerce and Consumer Theory

CSR 63100

Hye Young Hah

as we go along
As we go along
  • The Introduction of T-Commerce and IPTV
  • The Application to Consumer Theory
  • The Marketing Implications
what t commerce is
What T-Commerce Is
  • Definition

T-commerce or television commerce is e-commerce undertaken using digital television (IPTV). It has yet to become as widespread as e-commerce on the Internet. (From www.wikipedia.org)

What is IPTV?

conventional tv vs iptv
Conventional TV VS IPTV

TV 2.0

TV 1.0

One-Way Broadcasting

Two-Way Broadcasting

Internet Protocol

Cable and Antenna Television

Return path

what iptv provides
What IPTV Provides

(Source: T-Com media,2006, Seoul, Korea)

how iptv works
How IPTV Works

The function of STB

Makes the differences!

TV = Monitor


Remote Control =Keyboard

TV Service

Webcam chatting

Consumers’ Information

Smart Card ID

IP Serial Number

Click Stream Analysis

(Source: GS Homeshopping Inc.,2006, Seoul, Korea)

who uses this
Who Uses This

South Korea




Hong Kong

tv stb remote t commerce
TV + STB + Remote = T-Commerce

Set-Top Box

Remote control

marketing strategies are
Marketing Strategies are..
  • Building T-blogs (Word-of-Mouth)



  • Maintaining Brand Loyalty
  • Building e-Contact Center

How these strategies can be supported by Consumer Theories?

Functional Risk

Safety Risk

Time Risk

“ I am little worried about device handling.

“ My information is stored on STB. Is it Safe from


“ T-Shopping seems to be time-consuming to

click to Shopping than Home Shopping.”

Perceived Risk
  • The degree of uncertainty or fear about the consequences of a
  • purchase that a consumer feels when considering the purchase
  • of a new product.
  • A function of the uncertainty and the consequences of a buying
  • situation.
  • Individualistic and may vary in intensity from person to person
  • and over time.

Why Is Perceived Risk different from person to person?

theory of diffusion of innovation
Theory of Diffusion of Innovation

By Everett M. Rogers

(Source: www.its.msstate.edu/Information/Documentation/files/MSU101Unit2.ppt)

what consumer regard an iptv
What consumer regard an IPTV

In terms of Product Characteristics..

A new product is a superior

to existing substitute



IPTV is superior

to standard TV


A new product is consistent

with present needs, values, practices

IPTV is still TV using

Internet Protocol

A new product is difficult to

Understand or use


IPTV is easy to use

with Remote control

A new product is capable of being

tried on a limited basis


IPTV trial version

New product’s benefits and attributes

Can be observed, imagined


Samsung IPTV