MAR 4933001

1
MAR 4933-001

• E-Commerce Marketing
• Summer 2003
• Consumer Behavior, Information and Word of Net
• Rich Gonzalez
• University of South Florida
• July 10, 2003

2
Agenda July 10, 2003

• McWiFi
• Exam Part 1 Delivery
• Usenet Conversations and Word of Net
• Assign WAP 5
• Due For July 15
• Instructor Evaluations

3
McWiFi

• HandoutMcDonalds Expands In WiFi, Aiming To
  Lure Hungry Surfers, Nick Wingfield, wsj.com,
  July 8, 2003

4
For July 15

• Chapter 7 E-Business Promotion
• Dr. Francis Fukuyama The Virtual Handshake
  E-Commerce and the Challenge of Trust, The
  Merrill Lynch Forumwww.ml.com/woml/forum/ecommer
  ce1.htm

5
For Today July 10

• No Reading Assignment
• Spend 2 Hours Accessing Usenet
• Pick Product or Service
• Find Out
• 1) 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)?

6
Hyper-Media Environment

• Distributed network of non-linear communication
  using hyperlinks and search-and-retrieval
  processes to deliver information.
• nonlinear search and retrieval processes to
  collect information.
• Examples World Wide Web, interactive television,
  interactive Web based cellular telephones, and
  other portable devices.

7
Non-Linear Communication

• Interactivity and hyperlinks allow for a type of
  two-way communication between the online
  entities.
• Non-linear communication allows for a free flow
  and exchange of information.
• Most conversations individuals have with others
  are non-linear.

8
Typology Of Interactions

• Consumer-to-consumer (C-to-C)
• (Internet based)
• Business-to-consumer (B-to-C)
• (Internet based)
• Consumer-to-business (C-to-B)
• (Internet based)
• Business-to-Employee (B-to-E)
• (Intranet based)
• Employee -to-Employee (E-to-E)
• (Intranet based)
• Business-to-business (B-to-B)
• (Extranet based)

9
High Involvement (1)

• Individuals with high involvement for a product
  or service are
• likely to see a topic as interesting or important
  
• attend to information more
• are more likely to comprehend complex messages
• More willing to spend more time online
• goal directed, such as when attempting to gather
  information to make a purchase.

10
High Involvement (2)

• Individuals can also have high enduring
  involvement with products or product categories,
  and engage in online informationing.
• Enduring involvement exists when an individual
  has a high level interest in a topic over and
  extended time period.

11
Customer Types (As Comparison)
Loyalty
Hostages
Apostles
Terrorists
Mercenaries
Sasser, et al.
Satisfaction
12
For July 10

• No Reading Assignment
• Spend 2 Hours Accessing Usenet
• Pick Product or Service
• Find Out
• 1) 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)?

13
Rec.autos.makers.chrysler

• ConversationsOils to useBest engine
• Type of peopleTest each others credibilityLots
  of jargon, technical detailsProspective buyers

14
Rec.autos.makers.chrysler

• Implications
• Must decide whether to monitor and/or
  participate
• Must fix recurring problems
• Image Protection
• Marketing opportunity

15
Service

• ConversationsTestimonials-Clinics, docs,
  StatisticsSuccess/Fail Qualifications, i.e.,
  Pupil SizeRecommendationsDoctors, eye drops,
  clinics, laser machinesComplaints about clinics,
  docs, industry,
• People TypesPost-opsPre-opsMedical industry
  professionalsFlamersConcerned

16
Service

• Implications
• Influence pre-ops
• Doctors, Clinics Selection/Rejection
• Pricing

17
What kinds of conversations are taking place?

• No plus sizes in high fashionbut there is a
  magazine that covers
• New service critiquesXM Radio
• Pompous, arrogant, officious rants about
  products.
• Personal stories connected to products (i.e.,
  Maltese dogs)

Class Exercise
18
What kinds of people are involved?

• Punks
• Investors/savvy
• Consumers
• Intense , Hard Core Enthusiasts
• Information Samaritans
• Officious Persons
• Anonymous
• Information Seekers
• Antagonists

Class Exercise
19
What impacts might this have?

• Increase Revenues
• More Informed Consumers
• Satisfaction Level Changed
• Wrong Information Gets Disseminated
• More Uncertainty
• Legal
• Brand Equity

Class Exercise
20
Information-Enabled Consumer

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

21
Weekly Analysis Paper 5

• 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 July 15)
• 1.5 pages, single spaced, bolded headings, cover
  sheet
• Newsgroup Name and description
• 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

22
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

23
E-Commerce Marketing Course Topics/Discussions

• Web Site /Business Model Evaluation
• Usability
• WiFi
• Marketing Concept
• Customer SatisfactionFeedback
• Word of Net
• Usenet
• Information Philosophy

24
Stewart Brand

• Information wants to be free.
• Information wants to be expensive.

25
E-Commerce Marketing Course Topics/Discussions

• Personalization Customization
• Innovation
• E-Commerce Value Chain
• 3 Fundamental Business Shifts

26
3 Fundamental Business Shifts
03

• 1. Most transactionsB2C, B2B, C2C and G2C are
  becoming self-service digital transactions.
• 2. Customer service is becoming the primary
  value-added function in every business.
  Personalization and customization are ways to do
  this.
• 3. Customer service requirements force firms to
  adopt digital processes---to meet and/or beat
  competition.

27
Innovation In the News
28
Final ExamJuly 17, 2003

• Part 1SUBJECTIVE
• 2 Essay Questions
• Based on readings, text, discussions and papers

• Part 2OBJECTIVE
• 30 QuestionsMC, FIB, T/F
• Based on same

2 Questions Released Today July 10
Here at 330 PM
29
Evaluations

• Need 1 Volunteer