Slide 4.1
CHAPTER 4
E-ENVIRONMENT
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.2
Learning outcomes
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Identify the different elements of an organization
macro-environment that impact on an organization ebusiness and
e-marketing strategy
Assess the impact of legal, privacy and ethical
constraints or opportunities on a company
Assess the role of macro-economic factors such as
governmental e-business policies, economics, taxation
and legal constraints.
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.3
Management issues
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What are the constraints placed on developing and
implementing an e-business strategy by the
e-environment?
What factors influence the adoption of new digital
media and how can we estimate future demand for
online services?
How trust and privacy can be assured for the
customer while seeking to achieve marketing
objectives of customer acquisition and retention?
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.4
SLEPT Factors
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Macro-environment
 Social
 Legal
 Economic
 Political
 Technological
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.5
SLEPT: Social
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Include the influence of consumer perceptions in
determining usage of the Internet for different
activities
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.6
SLEPT: Legal and ethical
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Determine the method by which products can be
promoted and sold online
Governments, on behalf of society, seek to
safeguard individuals right to privacy
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.7
SLEPT: Economic

Variations in the economic performance in different
countries and region affects spending patterns and
international trade
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.8
SLEPT: Political

National governments and transnational
organizations have an important role in determining
the future adoption and control of the Internet and
the rules by which it is governed
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.9
SLEPT: Technological

Changes in technology offer new opportunities to
the ways products can be marketed
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Figure 4.1
‘Waves of change’ – different timescales for change in the environment
Slide 4.11
Factors governing Internet adoption
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Cost of access
Value proposition
Ease of use
Security
Fear of the unknown
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.12
Internet Access
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Consumers and businesses who uses Internet vary
according to countries
Within each country, adoption of the Internet vary
significantly according to individual demographic
characteristics
Broadband adoption
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Global variation in number of PCs per hundred population and percentage
Internet access in 2004
Figure 4.2
Source: ITU (www.itu.int/ITU-D/ict/statistics/)
Variation in demographic characteristics of UK Internet users: (a) gender,
(b) age, (c) social grade
Figure 4.3
Source: eMori Technology Tracker – www.mori.com/technology/trackerdata.shtml
Slide 4.15
Consumers influenced by using the
online channel

Psychographic segmentation
 Realistic
enthusiasts 14%
 Confident brand shoppers 18%
 Carefree spenders 19%
 Cautious shoppers 14%
 Bargain hunters 21%
 Unfulfilled 14%
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Figure 4.4
Percentage by category who bought offline after researching online
Source: BrandNewWorld: AOL UK / Anne Molen (Cranfield School of Management) / Henley Centre, 2004
Figure 4.5
Development of experience in Internet usage
Slide 4.18
B2B Profiles
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The percentage of companies with access
Influenced online
Purchase online
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Figure 4.6
Percentage of businesses that order online
Source: DTI (2004), Fig 7.3a
Slide 4.20
Why personal data are valuable?
1.
2.
3.
4.
Contact information
Profile information
Behavioral information (on a single site)
Behavioral information (on multiple site)
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.21
Ethical issues and data protection
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1.
2.
3.
4.
Ethical issues concerned with personal information ownership
have been usefully summarized by Mason (1986) into four
areas:
Privacy – what information is held about the individual?
Accuracy – is it correct?
Property – who owns it and how can ownership be transferred?
Accessibility – who is allowed to access this information, and
under which conditions?
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.22
Ethics – Fletcher’s view
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1.
2.
3.
Fletcher (2001) provides an alternative perspective,
raising these issues of concern for both the individual
and the marketer:
Transparency – who is collecting what information?
Security – how is information protected once collected
by a company?
Liability – who is responsible if data is abused?
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.23
The eight principles for data
protection
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Fairly and lawfully processed;
Processed for limited purposes;
Adequate, relevant and not excessive;
Accurate;
Not kept longer than necessary;
Processed in accordance with the data subject's rights;
Secure;
Not transferred to countries without adequate protection.
www.dataprotection.gov.uk
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Information flows that need to be understood for compliance with data
protection legislation
Figure 4.7
Slide 4.25
Anti-spam legislation
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To protect individual privacy and with intention of
reducing spam or unsolicited commercial e-mail
(UCE)
‘Sending Persistent Annoying e-Mail’
Anti-spam legislation can be viewed at
http://www.spamlaws.com
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.26
Avoiding SPAM
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.27
Regulations on privacy and electronic
communications
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1.
2.
3.
4.
5.
Privacy and Electronic Communications Regulations
(PECR) Act
Applies to consumer marketing using email or SMS
text messages
Is an ‘opt-in’ regime
Requires an opt-out option
Does not apply to existing customers when
marketing similar products
Contact details must be provided
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.28
Regulations on privacy and electronic
communications
6.
7.
8.
The ‘From’ identification of the sender must be
clear
Applies to direct marketing communications
Restricts the use of cookies
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.29
Understanding cookies

A data file placed on your computer that identifies
an individual computer
 Persistent
 Temporary
or session
 First-party
 Third-party

Cookies are stored as individual text files
 dave_chaffey@british_airways.txt
 FLT_VIS\K:bapzRnGdxBYUU\D:Jul-25-1999\british-
airways.com\0 425259904 293574 26 1170747936
*
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.30
Using Cookies
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.31
What are cookies used for?
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Personalizing a site for individual
Online ordering systems
Tracking within a site
Tracking across sites
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.32
Viral e-mail marketing
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To reassure web users about threats to their
personal information
TRUSTe
ISIS – a UK accreditation initiative
getsafeonline
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.34
Checklist of compliance
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Follow privacy and consumer protection
Inform the user
Ask for consent for collecting sensitive personal data
Reassure customers by providing clear privacy statements
Let individual know when cookies are used
Never collect or retain personal data
Amend incorrect data
Only use data for marketing
Provide the option to stop receive information
Use appropriate security technology
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.35
Legal – Sparrows eight areas
1.
2.
3.
4.
5.
6.
7.
8.
Marketing your e-commerce business
Forming an electronic contract
Making and accepting payment
Authenticating contracts concluded over the Internet
E-mail risks
Protecting Intellectual Property
Advertising on the Internet
Data protection.
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.36
1.Marketing your e-commerce business
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Domain name registration
Using competitor names and trademarks in meta
tags
Using competitor names and trademarks in payper-click advertising
Accessibility law: hukum bagi orang berkebutuhan
khusus
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.37
2.Forming an electronic contract

E-commerce sites must contain easily accessible
content that clearly states
 The
company’s identity including address
 The main features of the goods or services
 Prices information
 The period for which the offer or price is valid
 Payment, delivery and fulfillment
 Substitution
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.38
Economic/Political
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Ensuring companies competitive
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Achieving government efficiencies
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Funding for education and technology
Promoting new technology e.g. broadband 12% in UK, 70% Taiwan, South
Korea
E-government – all UK services online by 2005
Singapore ‘Intelligent Island’
Taxation regimes

Legislation for offshore trading.
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.41
E-commerce and globalization
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The increase of international trading and shared
social and cultural values
Language and cultural understanding
English becoming the lingua franca of commerce
Tailoring e-commerce services for individual
countries or regions
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.43
Political factors
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Promoting the benefits of adopting the Internet
Enacting legislation to protect privacy or control
taxation
Providing guidelines and assistance for compliance
with legislation
Setting up international bodies to coordinate the
Internet
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.44
E-government

The application of e-commerce technologies to
government and public services
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.45
Technological issues
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
Need to be able to assess new innovation
Rate of change
 Which
new technologies should we adopt?
 Monitoring
for new techniques
 Evaluation – are we early adopter
 Re-skilling and training

Are our systems secure?
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Figure 4.10
Diffusion–adoption curve
Figure 4.11
Example of a Gartner hype cycle
Source: Gartner (2005) Gartner’s Hype Cycle Special Report for 2005
Figure 4.12
Alternative responses to changes in technology
Slide 4.49
Activity 4.1
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
List all the social, legal and ethical issues that the
manager of a sell-side e-commerce web site needs to
consider to avoid damaging relationships with users
of his or her site or which may leave the company
facing prosecution.
You can base your answer on issues which may
concern you, your friends or your family when
accessing a web site.
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.50
Activity answer – this lecture
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Cookies – laws and consumer perception on placing these
Are we limiting access to information from certain sections of
society (social exclusion)?
Privacy of personal information entered on a web site
Sending unsolicited e-mail
Replying promptly to e-mail
Copyright
Site content and promotional offers/adverts are in keeping with
the different laws in different countries
Providing text, graphics and personality in keeping with social
mores of different countries
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.51
Summary
1.
2.
Environmental scanning and analysis are necessary
in order that a company can respond to
environmental changes and act on legal and
ethical constraints on its activities
Environmental constraints are related to the microenvironment variables reviewed in chapter 5 and
the macro-environment variables in this chapter
using the SLEPT mnemonic
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.52
Summary
3.
4.
Social factors that must be understood as part of
the move to the Information Society include buyer
behaviour characteristics such as access to the
Internet and perceptions about it as a
communications tool
Ethical issues include the need to safeguard
consumer privacy and security of personal
information. Privacy issues include collection and
dissemination of customer information, cookies and
the use of direct e-mail
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.53
Summary
5.
6.
Legal factors to be considered by e-commerce
managers include: accessibility, domain name
registration, copyright and data protection
legislation
Economic factors considered in the chapter are the
regional differences in the use of the Internet for
trade. Different economic conditions in different
markets are considered in developing e-commerce
budgets
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.54
Summary
7.
8.
Political factors involve the role of governments in
promoting e-commerce, but also trying to control it
Rapid variation in technology requires constant
monitoring of adoption of the technology by
customers and competitors and appropriated
responses
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.55
Tugas

Di Indonesia, undang-undang apa saja yang
berhubungan dengan pemanfaatan ICT? Mengatur
apa sajakan hukum2 tersebut?
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007