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1、Chapter 3Internet Consumers and Market Research,Learning Objectives,Describe the essentials of consumer behavior Describe the characteristics of Internet surfers and EC purchasers Understand the process of consumer purchasing decision making Describe the way companies are building relationships with

2、 customers Explain the implementation of customer service Describe the consumer market research in EC Experience the role of intelligent agents in consumer applications Describe the organizational buyer behavior model,The Importance of Customers,Competition “fighting” on customers to succeed : contr

3、ol the 3Cs Customers customers becomes a King/Queen to succeed : finding and retaining customers Change EC is a new distribution channel to succeed : convince customers to go online and then to choose your company over the online competitors,The major pressures are labeled the 3Cs,A Model of EC Cons

4、umer Behavior,Purchasing decision begins with customers reaction to stimuli,Decision Making Process,Consumer Types Individual consumers: get much of the media attention Organizational buyers: do most of the shopping in cyberspace Purchasing Types Impulsive buyers: purchase products quickly Patient b

5、uyers: purchase products after making some comparisons Analytical buyers: do substantial research before making the decision to purchase products or services Purchasing Experiences Utilitarian: shopping “to achieve a goal” or “complete a task” Hedonic: shopping because “it is fun and I love it”,A Mo

6、del of EC Consumer Behavior (cont.),Variables InfluencingDecision Making Process,Environmental Variables,Social variables people influenced by family members, friends, co-workers, “whats in fashion this year”, Internet communities and discussion groups Cultural variables Psychology variables Other e

7、nvironmental variables available information, government regulations, legal constraints, and situational factors,6,Consumer Demographics Gender (61% male user strengthen market position; become less sensitive to price competition; increase cross-selling success; save cost, etc. Real world examples 1

8、-800-FLOWERS A Federal Express (FedEx),Building and maintaining customer loyalty,One-to-One Marketing (cont.),Maintain continuous interactions between consumers and business Make a commitment to provide all aspects of the business online Build different sites for different levels of customers Willin

9、g to invest capital, both human and financial, in the information systems, to insure continuous improvement in the supporting technology as it becomes available,Building and maintaining customer loyalty,One-to-One Marketing (cont.),Make a commitment to use the information collected about customers i

10、n an ethical manner Realistic managerial expectations in the payback period and cost recovery Set acceptable standards for response time in customer service (24-48 hours); Use intelligent agents to expedite and standardize responses whenever possible Ability to change and customize information and s

11、ervices quickly and inexpensively is a must,Customer Service A new look and feel,Install Web servers which allow each customer to create individual web pages that can be customized to record purchases and preferences,Put the burden on the customer to treat a problem or inquiry and receive informatio

12、n bit by bit,One-to-One Marketing (cont.),Customer Service,ISFLAVIA:,One-to-One Marketing (cont.),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 resp

13、onse 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,Implementing Customer Service in Cyberspace,Product Life Cycle,Phas

14、e 1. Requirements : assisting the customer to determine needs Phase 2. Acquisition : helping the customer to acquire a product or service Phase 3. Ownership : supporting the customer on an ongoing basis Phase 4. Retirement : helping the client to dispose of a service or product, Prentice Hall, 2000,

15、20,Types of Customer Service Functions,Implementing Customer Service in Cyberspace (cont.),Answering customer inquires Providing technical and other information Letting customers track accounts or order status Allowing customers to customize and order online, Prentice Hall, 2000,21,Addressing Indivi

16、dual Customer Needs,Doing business via Web,Companies understand their customers needs and buying habits better,Companies customize their future marketing efforts,Implementing Customer Service in Cyberspace (cont.), Prentice Hall, 2000,22,Tools of Customer Service,Personalized Web Pages used to recor

17、d purchases and preference direct customized information to customers efficiently,Chat Room discuss issues with company experts; with other customers,E-mail used to disseminate information, send product information and conduct correspondence regarding any topic, but mostly inquiries from customers,F

18、AQs not customized, no personalized feeling and contribution to relationship marketing,Help Desks and Call Centers,Tools of Customer Service (cont.),A comprehensive customer service entity EC vendors take care of customer service issues communicated through various contact channels Telewebs combines

19、 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,Market Research for EC,Aims,Problem definition and Researc

20、h objectives,Finding relationship between consumers, products, marketing methods, and marketers through information in order to discover marketing opportunities and issues, to establish marketing plans, to better understand the purchasing process, and to evaluate marketing performance,Market Researc

21、h for EC (cont.),Market Segmentation,Market segmentation is the process of dividing a consumer market into meaningful groups for decision-making. In the past, most marketing approaches have focused on group-based targeted markets, not on a personal way to identify individual consumers who actually p

22、urchased and used the products.,Market Segmentation,Market Research for EC (cont.),Improved methods of marketing research based on information technologies allow marketers to collect, store, and analyze detailed and personal information in a cost-efficient way. Example : Wal-Mart Consumer life style

23、s shape psychographic segmentation of the market. Lifestyles are typically established by consumers filling out questionnaires about their activities such as work and family, interests and opinions, etc.,Consumer Market Segmentation Tasks in the US,Market Research for EC (cont.),Segmentation Bases/D

24、escriptors,Possible Categories,Online Market Research,Market Research for EC (cont.),Using online technology to conduct surveys More efficient, faster, and cheaper data collection, and a more geographically diverse audience than those found in off-line surveys Ability to incorporate radio buttons, d

25、ata-entry fields and check boxes in the surveys Eliminating the data reentry errors (from questionnaires to the computer, for analysis) Not suitable for every customer or product it is skewed toward highly educated males with high disposal income,Online Market Research,Market Research for EC (cont.)

26、,Risk of losing people who sign off if they had difficulty in logging on or communicating with researchers Companies such as E-valuations or Northstar can conduct the research for your company VALS 2 (values and lifestyles) is a well-known segmentation dividing consumers in the U.S. (developed at SR

27、I International in California),Online Market Research Methods,Market Research for EC (cont.),Process of conducting the research Define the research issue and the target market Identify newsgroups and Internet communities to study Identify specific topics for discussion Subscribe to pertinent groups,

28、 register in communities Search discussion group topics and content lists to find the target market Search e-mail discussion groups lists Subscribe to filtering services that monitor groups Read FAQs and instructions of your competitor Enter chat rooms, whenever possible,Online Market Research Metho

29、d,Market Research for EC (cont.),Content of the research instrument Post strategic queries to news groups Post surveys on your Web site Offer rewards for participation Post strategic queries on your Web site Post relevant content to groups with a pointer to your Web site survey Post a detailed surve

30、y in special e-mail questionnaires Create a chat room and try to build a community of consumers,Online Market Research Methods,Market Research for EC (cont.),Target Audience of the Study Compare your audience to the target population Determine your editorial focus Determine your content Determine wh

31、at Web services to create for each type of audience,Consumer Market Research,Market Research for EC (cont.),Methods of conducting a survey: personal interviews; telephone survey and mail survey Online market research done on the Net, ranges from client-specific moderated focus groups conducted via c

32、hat rooms; to interactive surveys placed on Web sites The Internet is providing an efficient channel for faster, cheaper and more reliable collection and transmission of marketing information even in multimedia form,Consumer Market Research Mass marketing research Process orientation Two perspective

33、s Content orientation Concept testing Tracking Keep track of consumers Web movements using cookiesfiles attached to a users browser,Market Research for EC (cont.),Intelligent Agents for Consumers,Search Engines Computer programs that can automatically contact other network resources on the Internet,

34、 searching for specific information or key words, and reporting the results Intelligent Agents Computer programs that help the users to conduct routine tasks, to search and retrieve information, to support decision making and to act as domain experts Do more than just “search and match”,Intelligent

35、Agents for Information Search and Filtering,Intelligent Agents for Consumers (cont.),Help to determine what to buy to satisfy a specific need by looking for specific products information and critically evaluate them Example : Firefly uses a collaborative filtering process that can be described as “w

36、ord of mouth” to build the profile asks a consumer to rate a number of products, then matches his ratings with the ratings of other consumers and, relying on the ratings of other consumers with similar tastes, recommend him products that he has not yet rated,Intelligent Agents for Product and Vendor

37、 Finding,Bargainfinder form Andersen Consulting (a pointer) queries the price of a specific CD from a number of on-line vendors and returns a list of prices (unsuccessful) Jango from NetBot/Excite originates the requests from the users site instead of from Jangos vendors have no way to determine whe

38、ther the request is from a real customer or from the agent provides product reviews Kasbah from MIT Lab users wanting to sell or to buy a product, assign the task to an agent who is then sent out to proactively seek buyers or sellers,Intelligent Agents for Consumers (cont.),Negotiation Agents,Price and other terms of transactions are determined Kasbah multiple agents; classified as system where users create agents for the purpose of selling or buying goods 3 strategies : anxious, cool-headed and frugal Tete-tete considering a number of different parameters: price, warrant

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