MAR 6936798

1
MAR 6936-798

• E-Commerce Marketing
• Spring 2003Downtown--MBA
• Consumer Behavior, Information and Word of Net
• Rich Gonzalez
• April 10, 2003 (Week 14)

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Agenda April 10, 2003

• Usenet Conversations, Trust, Word of Net
• What Keeps Customers Coming Back--Discussion
• Due For April 17

3
For Today April 10

• No Reading Assignment
• Spend 2 Hours Accessing Usenet
• Pick Product or Service
• Find Out1) What kinds of conversations are
  taking place?
• 2) What kinds of people are involved?
• 3) What impacts might this have on providers
  (product or service)?

4
Weekly Analysis Paper 6Due April 17

• Usenet
• Based on our discussion and demo of
  rec.autos.makers.chrysler and the other service
  newsgroup, accessible via Google Groups
• Pick a product or service that you are interested
  in as a consumer
• Find a thread (conversation) about that product
  or service and participate in it, by posting. One
  way to do this is by STARTING a thread.
• Deliverable (Due April 17)
• 1.5 pages, single spaced, bolded headings, cover
  sheet
• Newsgroup Name
• As a Consumer What DID YOU Learn About the
  Product?
• As a Marketer What Are Some Implications of this
  Thread?
• Word of Net vs. Word of Mouth
• Also include copy of the thread posts and the
  chronological summary

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Rec.autos.makers.chrysler

• ConversationsOils to useBest engineClock off
  by 1 minute/year
• Type of peopleTest each others credibilityLots
  of jargon, technical detailsProspective
  buyersPeople with a financial interestNon-advoca
  tes

Class Exercise
6
Rec.autos.makers.chrysler

• ImplicationsMust decide whether to monitor
  and/or participateIf company participatescant
  go halfwayMust fix recurring problemsImage
  ProtectionViewed by ManyMarketing
  opportunityExpense of monitoring/promoting

Class Exercise
7
Service

• ConversationsTestimonials-Clinics, docs,
  StatisticsSuccess/Fail Qualifications, I,e.
  Pupil sizeRecommendationsDoctors, eye drops,
  clinics, laser machinesComplaints about clinics,
  docs, industry, marketing, guarantees, FDA
  rulesSupermarket surgery accusations
• People TypesPost-opsPre-opsMedical industry
  professionals

Class Exercise
8
Service

• ImplicationsInfluence pre-opsDoctors, clinics
  selection/rejectionPossible effect on service
  due to customer preferenceIncrease in liability
  due to more consumer awarenessPricing affected

Class Exercise
9
Online Consumer Behavior

• What Attracts Customers to Online Stores and
  What Keeps Them Coming Back
• Empirical study Studied CDP
• Customers do tend to use price as their primary
  factor in their searches
• Online shoppers...not homogenous

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What Attracts Customers to Online Stores and
What Keeps Them Coming Back Reibstein

• Benefits
• Empirical Data
• Rigorous
• Conclusions Defensible
• Implications, Discussable
• RQ What attracts customersfrom a customers
  perspective

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First Mover Advantage

• First, First, First
• Loyalty Assumed LCV
• Customer Acquisition
• Wanton Spending

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Customer Retention

• Lifetime Customer Value
• Biggest Obstacle to Loyalty?
• Low Switching Costs Competition
• Information

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Information-Enabled Consumer

• Customers will become more efficient in CDP
• Better information, less effort
• Information Constraints Removed
• Information Overload a Danger

14
Price

• Constraints
• Physical Monopoly
• Lower Prices or Higher Prices Online?
• (Both)
• More Price Sensitivity Online?
• (Dont Know)
• Depends on Quality/Features Info

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Consumer Decision Process

• Price or Attributes?
• Or Fulfillment?

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Biz Rate .com

• Buyer Comparisons/Search Tool
• Sample Size?
• Buyers---Survey

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Survey Results

• 10 Attributes (Table 1)
• Price is Important?
• Any Surprises?
• Discussion

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Discussion

• When Buying Gift, Product Representation is 1.
  Buyers Want to Trust.
• What is 2?

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Discussion

• Customers Dissatisfaction
• Customer Support On Time Delivery

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Repeat Purchase

• Most Data is Useless in Table 2
• Table 3 , Anything?

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Word of Net

• Information, Knowledge, Influence, and Emotion in
  primarily text based online discussion spaces,
  pertinent to consumer products and services. Such
  exchanges affect the consumer decision process

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What Attracts Customers to Online Stores and
What Keeps Them Coming Back

• --Price is important but other attributes are
  important, responsiveness, customer support,
  delivery
• Price is the biggest factor in attracting new
  visitors/customers
• Visibility is important Need to be found
• Delivery performance
• Loyalty is related positively to of items per
  order
• Customer acquisition is not same as customer
  retention
• Site usability is a factor in return visits
• Product presentation is important

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What Attracts Customers to Online Stores and
What Keeps Them Coming Back

• Even if there is much competitionyou can still
  induce loyalty
• Behavior online may be different from brick
  mortar

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Weekly Analysis Paper 6

• Usenet
• Based on our discussion and demo of
  rec.autos.makers.chrysler and the other service
  newsgroup, accessible via Google Groups
• Pick a product or service that you are interested
  in as a consumer
• Find a thread (conversation) about that product
  or service and participate in it, by posting. One
  way to do this is by STARTING a thread.
• Deliverable
• 1.5 pages, single spaced, bolded headings, cover
  sheet
• Newsgroup Name
• As a Consumer What DID YOU Learn About the
  Product?
• As a Marketer What Are Some Implications of this
  Thread?
• Word of Net vs. Word of Mouth
• Also include copy of the thread posts and the
  chronological summary