Digital Marketing Project
Internet Marketing Understanding Consumers
Dr. Ofer Mintz
Information Rules
“As the century closed, the world became smaller. The public rapidly gained access to new and dramatically faster communication technologies. Entrepreneurs, able to draw on unprecedented scale economies, built vast empires. Great fortunes were made. The government demanded that these powerful new monopolists be held accountable under antitrust law. Every day brought forth new technological advances to which the old business models seemed no longer to apply. Those who mastered these laws survived in the new environment. Those who did not, failed.”
Source: Shapiro & Varian (p.1)
Outline of Today’s Class
Why Do Consumers Go Online?
Flow on the Web
4 Shopping Strategies
Directed buying
Search/deliberation
Hedonic browsing
Knowledge building
Why Do Consumers Go Online?
Why Do Consumers Go Online?
Easy to get information they are interested in
Experience information as an “experience good”
Enjoy network effects
6
The Internet “Flow” Experience
Flow is a function of control, content, and motivational characteristics that define four direct determinants of the flow state:
Perceived congruence of skills and challenges
Focused attention
Interactivity
Telepresence (consumer is both a sender and a receiver)
Model of Network Navigation on the Internet
Source: Hoffman and Novak (1996)
8
Flow and Firm Shopping Strategies
What should firms do:
Create action points
Keep high involvement
Allow social interactions
Why Do Consumers Go Online?
4 Types of Shopping Strategies:
Directed buying
Search/deliberation
Hedonic browsing
Knowledge building
Source: Moe (2003)
Directed Buying
Directed Buying Strategy
Pros
Cons
Search/Deliberation
Search/Deliberation Strategy
Pros
Cons
Hedonic Browsing
Hedonic Browsing Strategy
Pros
Cons
Knowledge Building
Knowledge Building Strategy
Pros
Cons
Putting it Together (Customer Purchase Journey)
Trade-off between Full Flow of Information vs. Information Overload
Visual Engagement
Source: Mashable (2012)
Visual Engagement
Source: Mashable (2012)
Website Design Perspective
Recap of Internet Marketing I
Understanding why and how consumers shop online is VITAL for your business!
Next Tutorial & Class
Tutorial TOPIC:
Introduce live-case
Find group members for live-case
Email marketing activity
Lecture TOPIC:
Internet Marketing Goals
Next Tutorial
Discuss Live-Case project
Find group members for project
Email marketing activity