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Lecture E-commerce (7/e): Chapter 6 - Kenneth C. Laudon, Carol Guercio Traver

Chapter 6 - E-commerce marketing concepts. In this chapter, you will learn to: Consumers online: the internet audience and consumer behavior, consumer behavior models, the online purchasing decision, a model of online consumer behavior,. | E-commerce Kenneth C. Laudon Carol Guercio Traver business. technology. society. seventh edition Copyright © 2011 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Slide 6- Chapter 6 E-commerce Marketing Concepts Copyright © 2011 Pearson Education, Inc. Netflix Strengthens and Defends Its Brand Class Discussion What was Netflix’s first business model? Why did this model not work and what new model did it develop? Why is Netflix attractive to customers? How does Netflix distribute its videos? What is Netflix’s “recommender system?” How does Netflix use data mining? Is video on demand a threat to Netflix? Slide 6- Consumers Online: The Internet Audience and Consumer Behavior Around 70% (82 million) U.S. households have Internet access in 2010 Growth rate has slowed Intensity and scope of use both increasing Some demographic groups have much higher percentages of online usage than others Gender, age, ethnicity, community type, income, education Slide 6- The Internet Audience and Consumer Behavior (cont’d) Broadband audience vs. dial-up audience Purchasing behavior affected by neighborhood Lifestyle and sociological impacts Use of Internet by children, teens Use of Internet as substitute for other social activities Media choices Traditional media competes with Internet for attention Slide 6- Consumer Behavior Models Study of consumer behavior Social science Attempts to explain what consumers purchase and where, when, how much and why they buy Consumer behavior models Predict wide range of consumer decisions Based on background demographic factors and other intervening, more immediate variables Slide 6- A General Model of Consumer Behavior Figure 6.1, Page 352 Slide 6- SOURCE: Adapted from Kotler and Armstrong, 2009. Background Demographic Factors Culture: Broadest impact Subculture (ethnicity, age, lifestyle, geography) Social Reference groups Direct reference groups Indirect reference groups Opinion leaders (viral . | E-commerce Kenneth C. Laudon Carol Guercio Traver business. technology. society. seventh edition Copyright © 2011 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Slide 6- Chapter 6 E-commerce Marketing Concepts Copyright © 2011 Pearson Education, Inc. Netflix Strengthens and Defends Its Brand Class Discussion What was Netflix’s first business model? Why did this model not work and what new model did it develop? Why is Netflix attractive to customers? How does Netflix distribute its videos? What is Netflix’s “recommender system?” How does Netflix use data mining? Is video on demand a threat to Netflix? Slide 6- Consumers Online: The Internet Audience and Consumer Behavior Around 70% (82 million) U.S. households have Internet access in 2010 Growth rate has slowed Intensity and scope of use both increasing Some demographic groups have much higher percentages of online usage than others Gender, age, ethnicity, community type, income, education Slide 6- The .