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Chapter9MarketingandAdvertisinginE-CommerceLearningObjectivesDescribefactorsthatinfluenceonlineconsumerbehavior.Understandthedecision-makingprocessofonlineconsumerpurchasing.Discusstheissuesofe-loyaltyande-trustinelectroniccommerce(EC).Understandsegmentationandhowcompaniesarebuildingone-to-onerelationshipswithcustomers.Explainhowconsumerbehaviorcanbeanalyzedforcreatingpersonalizedservices.LearningObjectivesUnderstandconsumermarketresearchine-commerce.DescribetheobjectivesofWebadvertisinganditscharacteristics.DescribethemajoradvertisingmethodsusedontheWeb.Learnmobilemarketingconceptsandtechniques.Describevariousonlineadvertisingstrategiesandtypesofpromotions.Understandsomeimplementationissues.LearningAboutOnlineConsumerBehaviorAModelofConsumerBehaviorOnline

InfluentialfactorsTheattitude-behaviordecisionprocessTheMajorInfluentialFactorsConsumerCharacteristics

MerchantandIntermediary-RelatedFactors

Product/ServiceFactorsECSystems

EnvironmentalFactors

ECModelofOnlineConsumerBehaviorTheConsumer

PurchasingDecisionProcessAGenericPurchasing-DecisionModelNeedidentificationInformationsearch*Productbrokering*MerchantbrokeringEvaluationofalternativesPurchaseanddeliveryPost-purchaseactivitiesTheConsumer

PurchasingDecisionProcessPlayersintheConsumerDecisionMakingProcessInitiatorInfluencerDeciderBuyerUserShoppingCartAbandonmentLoyalty,Satisfaction,andTrustinE-Commerce*CustomerLoyalty*E-loyaltySatisfactioninECLoyalty,Satisfaction,andTrustinE-CommerceTrustinEC*TrustECTrustModels*OnlinetrustHowtoIncreaseTrustinECImproveYourWebsiteObjectiveThird-partySealsEstablishTrustworthinessOtherMethodsForFacilitatingTrust*Reputation-basedSystemsOnlineWordofMouthMassMarketing,MarketSegmentation,andRelationshipMarketingFromMassMarketingtoOne-to-OneMarketingMassMarketingandAdvertising

*MarketSegmentation

Relationship(One-to-One)Marketing

*Relationshipmarketing*One-to-onemarketingHowOne-to-OneRelationshipsArePracticedFromMassMarketingtoSegmentationtoOne-to-OneTheOne-to-OneMarketingCycleSources:CompiledfromGreenberg2010andtheauthors’experiencePersonalizationandBehavioralMarketingPersonalizationinE-Commerce*Personalization*Userprofile*CookieWebCookiesforDataCollectionUsingPersonalizedTechniquestoIncreaseSales

PersonalizationandBehavioralMarketingBehavioralMarketingandCollaborativeFiltering*BehavioralTargeting

*CollaborativeFiltering

OtherMethodsRule-basedfilteringContent-basedfilteringActivity-basedfilteringLegalandEthicalIssuesinCollaborativeFilteringSocialPsychologyandMorphinginBehavioralMarketingUseofCustomerDatabaseMarketingMarketResearch

forE-CommerceObjectivesandConceptsofMarketResearchOnlineWhatAreMarketersLookingForinECMarketResearchMarketResearch

forE-CommerceRepresentativeMarketResearchApproachesDataCollectionandAnalysis

OnlineSurveysWeb-BasedSurveysOnlineFocusGroupsHearingDirectlyfromCustomersDataCollectioninSocialNetworksandOtherWeb2.0EnvironmentsObservingCustomers’MovementsOnline

*TransactionLogs*ClickstreambehaviorCookiesand*WebBugs*SpywareWebAnalyticsandMiningClickstreamAnalysis*Clickstreamdata*WebminingMarketResearch

forE-CommerceLimitationsofOnlineMarketResearchandHowtoOvercomeThemPrivacyIssuesinMarketResearchBiometricandSmartphoneMarketingHelpsMarketResearch*Biometric*MobilemarketresearchWebAdvertisingOverviewofWebAdvertising*InteractivemarketingTheAdvertisingCycle

BasicInternetAdvertisingTerminology*Adviews*Button*Click(adclick)*CPM(costpermille,i.e.,thousandimpressions)*Conversionrate*Click-throughrate/ratio(CTR)*Hit*Landingpage*PageTheAdvertisingCycleWebAdvertisingWhyInternetAdvertising?AdvertisingOnlineandItsAdvantages

CostMediarichnessEasyupdatingPersonalizationLocation-basedLinkingtoshoppingTraditionalVersusOnlineAdvertisementOnlineAdvertisingMethods:FromE-MailtoSEOandVideoAdsMajorCategoriesofAdsClassifiedAdsDisplayAdsInteractiveAds*Banners*Randombanners*Staticbanners*Pop-upbanners*Personalizedbanners*LivebannersBenefitsandLimitationsofBannerAds

*Bannerswapping*BannerexchangesOnlineAdvertisingMethods:FromE-MailtoSEOandVideoAdsPop-UpandSimilarTypeAds*Pop-upadPop-upVideos*E-MailAdvertising*E-mailMarketingMajorAdvantagesandLimitationsofE-MailAdvertisingImplementingE-MailAdvertisingE-MailHoaxesFraudOnlineAdvertisingMethods:FromE-MailtoSEOandVideoAdsSearchEngineAdvertisementandOptimization*SearchAdvertisingKeywordAdvertising

URLListing

*Searchengineoptimization(SEO)SponsoredAds(PaidInclusion)Google:TheOnlineAdvertisingKingGoogle’sMajorAdvertisementMethods:AdWordsandAdSenseTheProcessof

SearchEngineOptimizationOnlineAdvertisingMethods:FromE-MailtoSEOandVideoAds*Viralmarketing(viral

advertising)VideoAdvertising

*ViralvideoConsumer-GeneratedVideos*InteractiveVideosVideoClick-ThroughsLiveInteractiveVideos*Advergaming(in-gameadvertising)AugmentedRealityAdvertisementAdvertisinginChatRoomsandForumsIABModelofVideoAdvertisingSource:InteractiveAdvertisingBureau.“ADigitalVideoAdvertisingOverview.”J/media/file/dv-report-v3.pdf(accessedJuly2014).Usedwithpermission.Mobile

MarketingandAdvertisingMobileMarketingandMobileCommerce*Mobilemarketing*Mobileadvertising(m-advertising)MobileInteractiveAdvertisingTypesofMobileAdsShortMessageAdsLocation-BasedAdsViralMobileMarketingMobileMarketingandAdvertisingCampaignsProcessofMobileAdvertisingMobile

MarketingandAdvertisingMobileMarketingImplementationGuidelinesToolstoSupportMobileAdvertisementMobileAdTrendsAdvertisingStrategiesandPromotions*PermissionAdvertisingOtherAdvertisingStrategiesAffiliateMarketingandAdvertising*Affiliatemarketing*AffiliatenetworkPayingPeopletoWatchAdsSellingSpacebyPixelsPersonalizedAdsAdvertisingasaRevenueModel*Payperclick(PPC)Choose-Your-Own-AdFormatAdvertisingStrategiesandPromotionsOnlineEvents,Promotions,andAttractionsLiveWebEventsforAdvertisingLocalizationinAdvertising*LocalizationDevelopinganOnlineAdvertisingPlanSetupadvertisinggoalsIdentifytargetcustomerChoosemediaandadvertisingtoolsDevelopactionandimplementationplansDevelopperformancemeasurementandmonitoringplansExecuteplansandevaluateperformanceAdvertisingonFacebookLifeCycleofAdvertisingPlansManagerialIssuesDowefocusonvalue-creatingcustomers?WhichInternetmarket

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