Internet User Characteristics

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E-MARKETING

WEEK 2

Internet User

Characteristics and

Behaviour

OBJECTIVES

 Discuss general statistics about the Internet population.

 Describe the Internet exchange process and the technological, social/cultural and legal context in which consumers participate in this process.

 Outline the broad individual characteristics and consumer resources that consumers bring to the online exchange.

 Highlight the four main categories of outcomes that consumers seek from online exchanges.

7-2

THE CUSTOMER’S STORY

A typical one-hour adventure in the life of a 25year-old professional, Justin:

 Listens to a podcast on his mobile phone while his TV is tuned to a soccer game and his PC is within reach.

 Picks up his computer to find a blog mentioned during the podcast, sees a video on the blog and texts a friend about the video.

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THE CUSTOMER’S STORY, CONT.

 Justin searches for the video title on

Google and finds a job posting on

Vimeo, an online video-posting site.

 He posts a link to the video and Vimeo site to his Twitter stream.

Justin is the new consumer: a multitasker attending to different media simultaneously.

How can a marketer capture dollars from these behaviors?

7-4

CONSUMERS IN THE

21 ST CENTURY

76% of U.S. consumers use the Internet.

Less connected groups tend to be:

 Older

 Less educated

 In ethnic minority groups

 Childless

 Rural

 Lower income

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CONSUMERS IN THE

21 ST CENTURY, CONT.

In 2013, 39% of the global population had access to the Internet, roughly 2.7billion ppl out of 7.1billion ppl.

Internet usage in developed nations has reached a critical mass, leading marketers to ask more questions about consumer behavior on the Internet.

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INTERNET REACHES MATURITY: 1995-

2010

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THE INTERNET EXCHANGE PROCESS

Exchange is a basic marketing concept.

 It refers to the act of obtaining a desired object by offering something in return.

Exchange occurs within the following contexts:

 Technological

 Social/cultural

 Legal

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THE ONLINE

EXCHANGE PROCESS

7-10

TECHNOLOGICAL CONTEXT

70% of online Americans connect to the Internet at home with broadband.

Broadband users enjoy more multimedia games, music, and entertainment than do those accessing from a mobile device or 56K modem.

The typical U.S. home has 26 different electronic devices for media and communication.

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U.S. DAILY MEDIA USE

7-12

7-13

SOCIAL AND CULTURAL CONTEXTS

The cornerstones for attracting customers online:

 Reputation

 Relevance

 Engagement

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ENGAGING CUSTOMERS

7-14

LEGAL CONTEXT

 Despite piracy laws, illegally used software abounds.

 In spite of the Can-Spam law, the number of unsolicited emails has increased.

 However, when the recording industry sued illegal music file downloaders, consumer behavior changed.

 In 2002, 37% of online consumers shared music files.

 Only 23% shared files in 2004.

7-15

INDIVIDUAL CHARACTERISTICS

& RESOURCES

Individual characteristics affect Internet use.

 Demographics such as age, income, education, ethnicity, and gender.

 Attitudes toward technology.

 Online skill and experience.

 Goal orientation.

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CONSUMER RESOURCES

Consumers perceive value as benefits minus costs.

These costs constitute a consumer’s resources for exchange:

 Monetary cost

 Time cost

 Energy and psychic costs

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7-18

U.S. COMBINED HOME/WORK INTERNET USAGE

7-18

EXCHANGE OUTCOMES

 There are 5 basic things that people do online:

 Connect

 Create

 Enjoy

 Learn

 Trade

 Each is ripe with marketing opportunity.

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7-20

CONNECTING ONLINE IN THE U.S.

7-21

CREATING & UPLOADING CONTENT IN THE

U.S.

7-22

ENTERTAINMENT ONLINE

IN THE U.S.

7-23

TOP 10 SEARCH TERMS

FOR 2013

From Google:

1. Nelson Mandela

2. Paul Walker

3. iPhone 5S

4. Cory Monteith

5. Harlem Shake

6. Boston Marathon

7. Royal Baby

8. Samsung Galaxy S4

9. PlayStation 4

10.North Korea

7-24

LEARNING AND GETTING INFORMATION

7-25

TRADING ONLINE

IN THE U.S.

7-26

WHAT ABOUT SOUTH EAST ASIA?

Malaysia, Indonesia, Philippines, Singapore 7-27

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