Consumer Behavior

Chapter 7:

Consumer Behavior Online

Learning Objectives

(PPT 7-2)

Consumers in the Twenty-first Century

Since 1994, the Internet has grown more quickly than any other medium in history.

Nearly 1 billion people are currently online worldwide. However, there are still 5 billion

people that are not. This chapter will examine reasons for such a high rate on non-online

citizens and how e-marketers are adjusting to the fact that the percentage of citizens

online may never exceed 25%.

Inside the Internet Exchange Process

Exchange is a basic marketing concept that refers to the act of obtaining a desired object

from someone by offering something in return. When consumers purchase a product,

they are exchanging money for desired goods or services.

Technical Context

Two important developments are shaping online consumer behavior today –

home connection speeds and the changing landscape of digital receiving devices

such as cell phones. Online speeds and the type of equipment used to access the

Internet determine whether a consumer accesses high or low graphic Web sites.

Telematics is a communication system in an automobile that uses a global

positioning system (GPS) for interactive communication between firms and

drivers.

Social and Cultural Contexts

The Web is training consumers to help themselves to almost anything they want

when and where they please. Some of the social/cultural trends that are affecting

online exchanges are: Information overload, time poverty, home and work, I

want what I want when I want it, online oxygen, self-service, sophisticated

consumer, privacy and data security, and online crime.

Legal Context

In spite of piracy laws, illegally used software abounds. In spite of the new CanSpam law, the number of unsolicited e-mails has actually increased. However,

the RIAA (Recording Industry Association of America) sued thousands of illegal

music file downloaders and had a significant affect on online consumer behavior....