E-Marketing Chapter 7

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32 Questions

How many electronic devices for media and communication are found in a home?

26

What is one of the cornerstones for attracting customers online?

Reputation

What is one of the reasons behind the increase in unsolicited emails despite the Can-Spam law?

Spammers finding ways to circumvent the law

What was the percentage of online consumers who shared music files in 2002?

37%

What is one of the individual characteristics that affects Internet use?

Age

What do consumers perceive as value when making purchasing decisions?

Benefits minus costs

What was the percentage of online consumers who shared music files in 2004?

23%

What is one of the factors that affects how individuals use the Internet?

All of the above

What percentage of the global population had access to the Internet in 2009?

27%

What is the act of obtaining a desired object by offering something in return?

Exchange

Which of the following groups tend to be less connected?

Older and less educated groups

What percentage of all Internet users are accounted for by the top ten countries?

38%

What is the context in which exchange occurs, according to the marketing concept?

Technological, social/cultural, and legal

What percentage of online Americans connect to the Internet at home with broadband?

63%

What is a characteristic of broadband users?

They enjoy more multimedia games, music, and entertainment

What percentage of U.S. consumers use the Internet?

76%

What is the stage of Internet development reached by developed nations?

Maturity

What is Justin doing while watching a soccer game on TV?

Tuning his iPod to the latest Diggnation podcast

What does Justin find when he searches for the video title on Google?

A job posting on Vimeo

What does Justin post to his Twitter stream?

A link to the video on Vimeo

What is a characteristic of the new consumer in the 21st century?

Attending to different media simultaneously

What is the main objective of Chapter 7?

To understand the Internet population

What is Justin's age?

25 years old

What is the name of the podcast Justin is listening to?

Diggnation

What are the three components of a consumer's resources for exchange?

Monetary cost, time cost, and energy and psychic costs

What are the five basic things that people do online?

Connect, create, enjoy, learn, and trade

What is the primary purpose of a consumer's monetary cost?

To acquire goods and services

What is an example of a consumer's energy and psychic cost?

Feeling tired and stressed after shopping

What online activity involves uploading content to the internet?

Creating and uploading content

What is an example of a consumer's time cost?

Spending time to travel to a store

What is the primary purpose of online trading?

To acquire goods and services

What is an example of a consumer's learning activity online?

Researching a product online

Study Notes

Chapter 7 Objectives

  • Discuss general statistics about the Internet population
  • Describe the Internet exchange process and the technological, social/cultural, and legal context in which consumers participate
  • Outline the broad individual characteristics and consumer resources that consumers bring to the online exchange
  • Highlight the four main categories of outcomes that consumers seek from online exchanges

The Customer's Story

  • Justin, a 25-year-old professional, multitasks with different media simultaneously
  • He uses multiple devices, including an iPod, TV, cell phone, and PC, to access various online platforms

Consumers in the 21st Century

  • 76% of U.S. consumers use the Internet
  • Less connected groups tend to be:
    • Older
    • Less educated
    • In ethnic minority groups
    • Childless
    • Rural
    • Lower income
  • In 2009, 1.8 billion people had access to the Internet, 27% of the global population
  • Top ten countries account for 38% of all users, with adoption rates ranging from 7-77%

Internet Exchange Process

  • Exchange is a basic marketing concept that refers to the act of obtaining a desired object by offering something in return
  • Exchange occurs within the following contexts:
    • Technological
    • Social/cultural
    • Legal

Technological Context

  • 63% of online Americans connect to the Internet at home with broadband
  • Broadband users enjoy more multimedia games, music, and entertainment than those accessing from a mobile device or 56K modem
  • The typical U.S. home has 26 different electronic devices for media and communication

Social and Cultural Contexts

  • The cornerstones for attracting customers online are:
    • Reputation
    • Relevance
    • Engagement
  • Despite piracy laws, illegally used software abounds
  • In spite of the Can-Spam law, the number of unsolicited emails has increased
  • However, when the recording industry sued illegal music file downloaders, consumer behavior changed

Individual Characteristics and Resources

  • Individual characteristics affect Internet use, including:
    • Demographics (age, income, education, ethnicity, gender)
    • Attitudes toward technology
    • Online skill and experience
    • Goal orientation
  • Consumers perceive value as benefits minus costs, including:
    • Monetary cost
    • Time cost
    • Energy and psychic costs

Exchange Outcomes

  • There are 5 basic things that people do online:
    • Connect
    • Create
    • Enjoy
    • Learn
    • Trade
  • Each is ripe with marketing opportunity

This quiz covers chapter 7 of E-Marketing, discussing general statistics about the Internet population and the technological, social, and legal context of consumer participation.

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