What Consumers Buy Online

1
What Consumers Buy Online

• Books 50
• Music 43
• Apparel 38
• Software 29
• Toys 27
• Video 24
• Travel 23
• Events 15
• Flowers 15
• Peripherals 15
• Gifts 13
• Footware 11
• Office Products 10
• Sporting Goods 9

Source Jupiter Media Metrix, 2001
2
How Consumers Find E-Vendors

• Directly to site 38
• Product search on search engine 35
• Other 12
• Store/Brand search 6
• Click on advertisements 5
• Shopping area of search engine 2

Source Jupiter Media Metrix, 2001
3
Online Purchase Intentions

• Have specific item in mind 85
• Shop without specific item in mind 11
• Unintended purchase 3
• Other 3

Source Jupiter Media Metrix, 2001
Source Jupiter Media Metrix, 2001
4
Factors that Would Encourage More Online
Purchasing
Source Jupiter Media Metrix, 2001
5
Online Consumer Behavior Model
6
Clickstream Behavior
Source Rozanski, Bollman, and Lipman, 2001
7
E-Marketing Tools

• Server transaction logs
• Cookie files
• Web bugs

8
Server Tranasction Logs

• 127.0.0.1 ecommerce2.uhh.hawaii.edu -
  31/Jul/2001115221 -1000 "GET
  /wsdocs/images/WSP2_nil.gif HTTP/1.0" 200 13022
  "http//localhost/wsdocs/asp/" "Mozilla/4.61
  en (Win95 I)"
• 127.0.0.1 ecommerce2.uhh.hawaii.edu -
  31/Jul/2001115236 -1000 "GET
  /wsdocs/index.html HTTP/1.0" 200 4692
  "http//localhost/wsdocs/asp/" "Mozilla/4.61
  en (Win95 I)"
• 127.0.0.1 ecommerce2.uhh.hawaii.edu -
  31/Jul/2001115300 -1000 "GET
  /wsdocs/32demo/ HTTP/1.0" 200 5397
  "http//localhost/wsdocs/index.html"
  "Mozilla/4.61 en (Win95 I)"
• 193.41.240.108 ecommerce2.uhh.hawaii.edu -
  09/Jan/2002193856 -1000 "GET
  /scripts/root.exe?/cdir HTTP/1.0" 404 231 "" ""
• 193.41.240.108 ecommerce2.uhh.hawaii.edu -
  09/Jan/2002193908 -1000 "GET
  /MSADC/root.exe?/cdir HTTP/1.0" 404 227 "" ""
• 194.236.255.184 ecommerce2.uhh.hawaii.edu -
  09/Jan/2002203724 -1000 "GET /NULL.printer
  HTTP/1.0" 404 223 "" ""

9
Marketing Use of Data From Transaction Logs
10
Cookie Files

• .amazon.com TRUE / FALSE 2082794688
  ubid-main 077-5056495-5508330
• Entries consist of
• Domain name of sever placing cookie
• TRUE/FALSE indicating whether all servers in
  domain can access cookie file
• / Slash indicates path within domain cookie is
  valid for
• TRUE/FALSE indicating whether cookie requires
  secure protocol
• 10 digit number indicating cookie expiration time
• Name of cookie (ubid-main) and an associated
  value (e.g., user ID number).

11
Cookie Files and Web Bugs

• Cookies
• Users cookie ID relates to a database file
  stored on the server containing information about
  the users prior visits and transactions
• Site can only look at its own cookie no others
• Web bugs
• Clear or invisible GIF placed on page or in
  e-mail message
• 1 pixel by 1 pixel transparent image
• Can be script-based executable active programs
• Forwards behavior data to third-party information
  collector (I.e., a marketing firm)
• Report IP addresses, forwarding URL, cookie
  information, e-mail address
• Exist on 15 of corporate pages and 20 of
  personal web pages (e.g., on home pages
  provided by AOL and Geocities)
• http//washingtonpost.com/wp-dyn/http//washington
  post.com/wp-dyn/articles/A6818-2001Mar14.htmlartic
  les/A6818-2001Mar14.html

12
Establishing the Relationship

• Permission marketing
• Using incentives like sweepstakes or prizes to
  get customers to agree (i.e., opt-in) to
  receive email promotions
• From trusted sites
• Affiliate marketing
• Links on a related site referring customers to
  you
• Pay-for-performance basis
• Small firms can join affiliate networks
• Viral marketing
• Reward or encourage customers to refer a friend
• For example you can mail a computer quote to a
  friend from Dells site

13
Best Marketing is Taking Care of the Customer

• Customer service
• Information can be directed to the customer
  efficiently
• Creation of a database which records purchases,
  problems, and requests is facilitated
• Information can now be traced and analyzed for
  immediate response
• If customer service options and solutions do not
  maintain the same level of excitement and
  interaction as the advertising and sales
  presentations, the level of intensity declines
  and the vendor runs the risk of losing customers

14
Implementing Customer Service in Cyberspace

• Types of Customer Service Functions
• Answering customer inquires
• Providing technical and other information
• Letting customers track accounts or order status
• Allowing customers to customize and order online

15
Implementing Customer Service in Cyberspace
16
Tools of Customer Service

• FAQs
• Provide important infrmationBut
• No personalized feeling, hence no contribution to
  relationship marketing
• Personalized Web Pages
• Used to record purchases and preference
• Direct customized information to customers
  efficiently
• E-mail
• Disseminate product information, conduct customer
  inquiry correspondence
• Chat Room
• Discuss issues with company experts with other
  customers
• VERY personalized

17
Tools of Customer Service

• Help Desks and Call Centers
• A comprehensive customer service entity
• EC vendors take care of customer service issues
  communicated through various contact channels
• Telewebs
• combines Web channels, such as automated e-mail
  reply, Web knowledge bases and portal-like self
  service with call center agents or field service
  personnel
• Internet
• a medium of instant gratification
• demand for both prompt replies and proactive
  alerts

18
Marketing Your Web Site Banner Ads

• Advertising fees for banner ads based on
• Pay-per-click every click-through generates
  revenue
• Pay-per-sale only a sale generates revenue
• Can exchange advertising space with complementary
  business
• Register with companies that sell your
  advertising space
• Pay them a commission on your revenues from the
  banner ad clickthroughs
• e.g., http//www.doubleclick.com

19
Marketing Your Web Site Banner Ads

• People dont scroll sideways
• Get everything on one screen width
• Studies find the lower right corner to be most
  effective location for an ad
• http//www.webreference.com/dev/banners/
• Placing banners last is more effective than first
• Placing banners top and bottom is more effective
  than just top
• Vertical panels work well

20
Marketing Your Web Site

• Web malls
• Host sites and provide shopping portals
• e.g., http//store.yahoo.com/
• Search engines
• Passive strategy meta tags
• e.g., www.sba.gov
• Active strategy submit site to search engines
• e.g., http//www.submitit.com/
• E-mail list rental
• Opt-in mailing lists (direct marketing)
• http//www.netcreations.com/main?pagewelcome
• http//www.flonetwork.com

21
Search Engines

• Metatags
• Instructions or keywords added to a page to help
  search engines classify and index that page
• Primary metatags used for search engine results
• Description sentence that is listed when a
  search produces your page
• Keyword used to index the page in categories
  matching search criteria
• Also include popular misspellings
• e.g., Ofice Supplies

22
Metatags Description and Keyword

• ltHTMLgtltHEADgt
• ltMETA NAME"description" CONTENTStationers
  Corporation of Hawaii - broadest selection,
  fastest delivery, friendly service, outstanding
  value."gt
• ltMETA NAME"keywords" CONTENToffice, supplies,
  Hilo, writing, copiers, paper, machines,
  furniture"gt
• ltTITLEgtStationers Hawaiilt/TITLEgtlt/HEADgt

23
Search Engines

• For more information about metatags visit
• http//www.submiturl.com
• For more information about about keywords visit
• www.keywordcount.com
• For more information about about search engines
  visit
• http//www.searchenginewatch.com

24
Publicizing Your Site

• Simply registering your domain name will not
  bring people to your door
• The ugly reality of search engines pay to play
• How to get found in a billion web pages? Get
  mentioned on TV
• Most website publicizing is done via direct
  mailings, magazines, newspapers, radio and
  television
• Use your bricks to promote your clicks
• Hand out flyers, brochures, business cards, etc.
• Develop relationships with other online sites

25
Marketing Your Web Business

• In many respects its really not any different
  from typical channel promotions
• But, due to web technologies, there is a lot more
  information available about the customer
• Find a way to use that information