E-MARKETING Internet User

Characteristics and
WEEK 2 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.

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THE CUSTOMERS STORY

A typical one-hour adventure in the life of a 25-

year-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 CUSTOMERS 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?

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CONSUMERS IN THE
21ST 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
21ST 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

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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

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SOCIAL AND CULTURAL CONTEXTS

The cornerstones for attracting customers online:
Reputation
Relevance
Engagement

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ENGAGING CUSTOMERS

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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.

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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 consumers
resources for exchange:
Monetary cost
Time cost
Energy and psychic costs

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7-18 U.S. COMBINED HOME/WORK INTERNET USAGE

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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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CONNECTING ONLINE IN THE U.S.

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CREATING & UPLOADING CONTENT IN THE
U.S.

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ENTERTAINMENT ONLINE
IN THE U.S.

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 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

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LEARNING AND GETTING INFORMATION

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TRADING ONLINE
IN THE U.S.

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WHAT ABOUT SOUTH EAST ASIA?

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Malaysia, Indonesia, Philippines, Singapore
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