With the advent of information technologies and emergence of online stores, the online marketing has not been the same as it was in the past. Now in order to strive in this cut throat competition it is of vital importance for the organizations to understand the factors that matter for consumers when they shop online. As the competition in e-commerce is intensified, it becomes more important for online retailers to understand the antecedents of consumer acceptance of online shopping. Such knowledge is essential to customer relationship management, which has been recognized as an effective business strategy to achieve success in the electronic market.

Internet marketing is the fastest growing and most exciting branch of marketing today as the world becomes ever more connected, keeping up with developments and trends is vital for marketers trying to reach new audiences – who are more discerning, fragmented and cynical than ever technology and software are changing at such a high rate that it seems almost impossible to keep up with trends. Products and services are evolving and adapting to the online sphere. The web is constantly shifting, growing and changing – everything is fleeting. How do savvy internet marketers cope with all this? they harness the power of the web – and its myriad tools – for their own needs. they find unique and personal ways to interact with customers online. They plan, organise, implement and measure complex internet-wide strategies seamlessly. Most importantly, they never stop learning, growing and adapting themselves.

The new possibilities offered by digital technologies facilitate advanced forms of exchange and interaction between consumers and businesses. Thanks to the Internet, consumers are presented with new opportunities to enhance their power in relationships with businesses. Besides having access to an unprecedented amount of information, online consumers can compare a vast range of products, access independent and professional sources of expertise,


As a result. Initial research has mostly focused on developing consumer profiles and identifying online segments in this digital marketing environment. 2002). and even to sanction firms among far-reaching audiences. It has been realized that companies must strive for a complete view of their customers. These consumers are more willing and prepared to disseminate their opinions about brands and products -whether supportive or unfavourable. The potential of digital technologies to transform the marketing environment has resulted in a great deal of research on the online consumer and the business strategies and orientations which companies adopt in order to build relationships with consumers through the Internet. It must be clarified. online consumers may play an active role in both marketing communication programmes and the design of products and their related sets of benefits and values.and interact in an efficient and productive manner with firms and institutions. demand greater control over their shopping experience and the design of value propositions in terms of their own individual interests. This includes the e-shopping decision. With such a large potential. online consumer satisfaction and loyalty. that early research on e-tailing focused on the effects of the Web on product pricing. the Web has become more frequently viewed as a place to provide better service and enhance consumer relationships (Rust & Kannan. e-tailing has attracted tremendous attention and investment in the past few years as well as a great deal of interest in developing new strategies and focused research of this new phenomena. many assumed that it was a cheap medium to reach consumers and conduct e- 4 . Online consumers benefit from a collective intelligence. as the relationship shifts from commerce to collaboration. the Internet has evolved into a promising tool for relationship marketing (Thorbjornsen et al. the expansion of ecommerce in general and the widespread adoption of the Internet as a marketing channel led to the appearance of a broad and varied array of research topics on consumer behaviour and emarketing. and trust in purchasing decisions on the Internet. When the Web became a marketing medium. Due to its potential for interactive communication. 2002). However. Contrary to the early image that the Web was a place for bargain hunting. however..

2000. competitors. Mitchell. 5 . (2000) examined Internet car retailing. 2000). 1999). because it turns products and services into commodities. and may damage company reputations by creating perceptions of price unfairness (Sinha. 2004). (2001) examined pricing in the online book industry. Among many others. Furthermore. and Brown and Goolsbee (2002) examined the life insurance industry. This severely impairs a seller's ability to obtain high margins. On the other hand. many e-tailers offered low prices and focused on customer acquisition. which mainly due to the benefits that internet provides. Brynjolfsson and Smith (2000) examined online book and CD retailing. There are many reasons for such a rapid developing of internet shopping. 2000). Through the different search (Nunes et al. the large amount of information about pricing. Obviously. First of all. 1996. and very detailed text description to help consumer learning and choosing the most suitable product (Moon. and features available on the Internet also helps to create a cost transparent environment. Clay et al. sound. and it also helps evaluate between each sites to get the cheapest price for purchase. Sinha. the internet can enhance consumer use product more efficiently and effectively than other channels to satisfy their needs.. and which information with mixture of images. consumers do not need go out looking for product information as the internet can help them to search from online sites. As a result of this costbenefit focus. the internet offers different kind of convenience to consumers. Morton et al. Early work suggested that the Internet could present a threat to branding and erode loyalty (Kalakota & Whinston. consumers save time to access to the consumption related information.

little more than a decade later. However. search engine companies like Yahoo! began to create significant profits from advertising alone. to small businesses began to build company sites and spend marketing dollars to attract qualified traffic. begin to realize that they could accomplish the same thing via email…and for much less. Now. which marked the beginning of the end for interruptive marketing such as flashing banner ads. What was 6 . informative and educational marketing. It wasn’t long before everyone from industry giants such as Microsoft Corp. it wasn’t considered to be an advertising medium at all. but increased to over $300 million in 1995. Within just a few years. Most importantly. as well as graphically enticing banner ads began to be show up. Instead. Then came the great internet marketing business bust around the year of 2000. When the internet was first introduced in the early 90s. spending for internet marketing totaled nearly nothing. Next.BACKGROUND OF INTERNET MARKETING Considering the current volume of internet marketing business. While the timeline of internet marketing has been short. but wasn’t yet considered valuable for reaching customers. the internet was treated as a tool for exchanging emails and digital information. it’s hard to believe how young the internet marketplace is. In 1994. Today. marketing spending and internet marketing business has exploded to nearly $200 billion (according to Forrester Research). companies which had been spending huge chunks of their marketing budget on offline list building. the cumulative events leading up to where we are now have impacted the entire globe faster than any marketing revolution in history. It wasn’t long before result s began to flood in which proved the value of the internet marketplace to even the most skeptical advertisers. it wasn’t long before marketing pioneers began to see the potential for internet marketing business as millions of web surfers logging on each day to find valuable and relevant information. it’s hard to believe in having an organization which doesn’t have some kind of online presence.

Then entered the age of education based invitational marketing*.0 technology. billions of “voices” began to rise all over the world. 161 billion in 2006. cost effectiveness. as reported by PWC. which crystallized with the creation of web 2. Suddenly. In the 7 . Online advertising grew to an industry worth nearly $1 billion in 1997. 196 billion in 2007 as compared with Rs. consumers were given the option of turning off marketing messages at will…and they did. Who knows where the internet marketing revolution will lead us. but one this is for sure: Those who understand the principles upon which the thriving internet marketplace is built will most likely never want for opportunities to create internet marketing business success and to earn a solid income.When internet was first introduced not a single business house recognized the huge potential it had in store as a marketing tool. As early as 1993 it was just a tool used for emailing & data transfer. the figure paled in comparison to the $175 billion spent on traditional advertising as a whole that year.happening? As interactive features were added to web pages.S. In India. as the internet marketplace became as much a global community as it was an advertising medium. While significant compared to the zero dollars spent in 1994. The wide reach. Internet Marketing today has become an integral part of people’s lives. The flood-gates opened after that: Spending on Internet advertising in 1996 totaled $301 million in the U. capabilities to measure the spendings and easy accessibility made internet as the most feasible marketing tool. advertising industry recorded a growth of 22% over 2006 and thus contributed an estimated Rs. The best of the business units had declared it unfit for marketing purposes. This led to a relational based marketing** approach which has led to one of the most lucrative opportunities for solo entrepreneurs and small start ups alike to make a small fortune working from their spare bedroom. Then in 1995 Netscape the ISP went public and bought the online world into prominence by exploring its commercial potential.

2010 was the first year where online advertising spend overtook the amount of money spent on newspaper advertising in the advertising. In the last four years 2004-2007. This segment grew by 69% from the previous year. the segment recorded a cumulative growth of 65% on an overall basis. Throughout its history. As broadband penetration increase in the Indian homes and also the mobile devices become more internet friendly.0% in 2006. Its share in the overall advertising pie grew to 1. It is a space both for work and play – an essential tool for virtually every business and the go-to repository for all forms of media culture products. more creative and more informative. the internet has reinvented itself many times – and the changes are far from over. sharing and personal entertainment.4% in 2007. which illustrates just how large an impact the internet has had on the marketing and advertising industry. web communities that cross all boundaries. self-expression and any of the dozens of other things that the web makes possible. the highest growth was recorded by the smallest segment in the industry. up from 1. This would make online advertising more relevant. cooperation. and are turning to the internet for better services. the advertising industry recorded a cumulative growth of 20% on an overall basis.7 billion in 2007. Though different segments of the industry grew at different rates. convenience and life-enhancing tools: just consider how people use online shopping.6 billion in 2006 to Rs. 8 . People of all ages are spending more and more time online. social networks and chat. 2. It was the same year that online readership overtook traditional newspaper readership. 1. The current web is dominated by socialising. web/wap publishing companies would develop more content on the Internet.years 2004-2007. online banking. instant news and updates. albeit from a low base of Rs.

During eight years. or over three million persons.htm In Finland.THE INTERNET AND THE MARKETING MIX Nowadays. 46 billion (http://www. the number of Internet users has increased by 4 times from about 361 millions to more than 1. Figure 3: World Internet users by World regions Source: www. the concept of Internet marketing has expanded and brought more opportunities for companies to approach their customers. To understand precisely how the Internet offers new 9 . Asia. Nowadays. in which. the continent with the biggest population accounts for 39. nearly four out of five Finns aged 15 to 74.stat. In the past. used the Internet in Spring 2007 ( of World Internet particularly websites has been becoming a popular media for any firms to introduce their products and services.htm ).fi).internetworldstats. the Internet was only used as a tool to contact customers. The Internet is considered as an independent and effective marketing tool. the Internet. part of direct marketing. from 2000 to 2008.

it still plays an important role in formulating and implementing marketing strategy. In 1960. 215). The Internet offers options for varying the core product. Through its websites. Companies can use the 10 . 2006. Besides that. It provides an effective strategic framework for changing different elements of a company's product offering to influence the demand for products within target market (Chaffey et al. it is obvious that the Internet provides a new tool to collect customer feedback quickly and accelerate new product development since process of testing new products is more rapid and effective. Product is the solution to customers wants or/and needs. packaging. consumers still have concepts about different kinds of product even when staying at home. According to Philip Kotler (2003). For other products. it is necessary to examine it based on the marketing mix which is traditional but still applicable. Price. 217 . Until now. warranty. Thanks to this. conducting research online. Many digital products now can be purchased easily over the Internet via providers’ website. instead of providing a ctual products to customers. new drivers or updated package for a computer or software are easily downloaded via producers’ websites. a customer can build a laptop or a desktop with the desired functions and features. Place and Promotion. after sales services in a new method. The 4 Ps have been developed and extended to the 7 Ps with the appearance of People. Dell is a typical example. companies also can supply more extended product user guides. velocity of new product development and velocity of new product diffusion (Chaffey et al. for some companies.222). For example. Price is the most flexible element comparing to other three elements of the marketing mix. 2006. since it can be changed quickly to adapt to the market's demand.opportunities to traditional marketing model. service or brand. Besides that. many companies publish the detailed product information with pictures or images. Jerome McCarthy introduced the marketing mix . The information about new products will spread out more wildly and quickly.widely referred as the 4 Ps of Product. Process and Physical evidence (Booms and Bitner. options for changing the extended products. It brings conveniences for both of buyer and seller/ producers. In addition. 1981). it is possible for buyers to customize products. It refers to the characteristics of a product.

companies can cut costs by reducing paper works since the customers fill all the necessary information such as their own private information and credit cards information by themselves. For buyers. they are able to find out the price differences by visiting companies' websites or price comparison sites. Bills can be paid at any time and in anywhere. 2006. Moreover. Beside these conveniences. They also can use the Internet to exploit new markets with low cost international advertising since they do not have to establish sales infrastructure in different countries (Chaffey. many new payment methods are created. It is possible for customers to make their purchasing decisions anywhere at any time. assess how the Internet can be used at different stages of the buying process. Companies now can expand their business from local areas to the whole country even to international market. Together with these advances.Internet to build differential price for different customers in different countries. The Internet has the greatest implications for the Place in the marketing mix because it has a large market place (Allen and Fjermestad 2001. the Internet is considered as the most effective marketing tool (D P S Verma et al. 135-156). 237-243). sales promotions. 2003. convenient and flexible way for companies and customers. 2006. PR and direct marketing. the Internet also reduces costs and price per product by reducing operating costs of stores and number of staffs. PayPal is one of the most successful companies in this business sector. online customers still have to worry about securities and privacy matters. some third parties provide services to protect consumer privacy and to secure transactions. Place in the marketing mix refers to how the product is distributed to customers. Therefore. efficient. The Promotion element of the marketing mix refers to how marketing communications are used to inform customers and other stakeholders about an organization and its products (Chaffey. In addition to this. and 11 . Hence. 14-23). The online payment method using credit cards is the most popular. based on IP (Internet Protocol) analytic technologies. 243). New method of distributing goods through online selling is offered by the improvement of the Internet. The Internet can be used to review new ways of applying each of elements of communications mix such as advertising.

Internet Advertising: It is a form of advertising that uses the Internet to attract customers by delivering messages through websites or advertising banners on other popular websites which leads online users to a company site. Direct marketing: Thanks to the Internet. 243245). Not only encourage the customers to visit the company website again. sales promotions such as competitions or price reductions can be provided to visitors of the company’s website in a cost-reduced way.assist in different stages of customers relationship management from customer acquisition to retention (Chaffey. 243 .245). Podcasts / Internet radio shows. this also provides the means for the company to build a long term relationship with their customers (Chaffey. the company can establish a two way communication method with customers (Chaffey. 2006. online newsrooms and media kits offer companies a new opportunity to publish the news directly while in traditional marketing they would wait for periodical publications (Chaffey. The company website must be well-organized. 243-245). By using e-mail addresses. 243-245). Public relations: The Internet is a new medium for Public Relations (PR). companies nowadays have a new tool for direct marketing and advertising that may be cost effective and maximum delivery to targeted customers. welldesigned and user-friendly in order to attract more target customers. 2001) Sales promotion: Thanks to the Internet. 12 . (Rowley. 2006. 2006. 2006. Blogs.

together with the improvement of computer hardware and software industries. The popularity of using the Internet. every company.INTERNET MARKETING – COMPANY AND CUSTOMER PERSPECTIVES Internet marketing – Company perspectives The 21st century is predicted to be a century of technologies when everyone. 13 .xv). New comers in this area have to consider very carefully the use of these modern channels. Below is some results drawn from different articles and researches which touch upon different parameters that make many companies pursue Internet marketing. Boter. give their readers a set of quite satisfactory answers to these questions. Vanyushyn (2007. Drivers for Internet marketing What are factors which drive many companies to apply the Internet marketing and how does the size of a company relate to these drives? Bengtsson. the authors categorized them into three different sizes: small. Depending on the number of employees. completely boost the development of e-marketing in the whole process of buying from pre-sale to sale to post-sale and further development of customer relationship. 2006. 27) who conducted a survey with various Swedish companies of different sizes. the role of Internet marketing is to support the multi-channel marketing which is the combination of digital and traditional channels at different points in the buying cycle (Chaffey et al. every organization apply them to make their works become much easier and more effective. They figure out that different factors drive different size companies to adopt Internet marketing including willingness to cannibalize. medium and large (turnover and profit should be taken into consideration). xiv . They have to understand which the main marketing channel is and which the supportive marketing channel is. Since.

The results are only drawn from some successful websites. to be successful in Internet marketing. Failure websites. How to be successful in Internet marketing When entering an Internet marketing zone. 222-238) in their study "Internet marketing strategies: Antecedents and implications". selecting of the strategic approach and delivery result online. indicate that Internet marketing is another good choice for any companies.entrepreneurial drivers. According to Chaffey et al. Jaeki Song and Zahedi F. they also find out which of these factors drive what size of companies. the reasons of failure. 20). and market pressure. new competitors. management support. etc. Internet security. they suggest a process for development and implement Internet marketing with different separated steps: Defining the online opportunity. The authors also affirmed that the key strategic decisions for e-marketing are the same as strategic decisions for traditional marketing including selecting target customer groups. Marketing channel preference Nowadays. a company should recognize some important issues such as different target customers. And what attracting customers is a reasonable price provided by companies. another way to contact customers. and many risks that consumers have to face when using Internet marketing for example Internet security. Based on their experiences of strategy definition in a wide range of companies. scammers etc. By comparing and contrasting between companies’ motivations to choose between Internet channels and traditional channels. 14 . a strategic approach is needed to manage the risks and deliver the opportunities available from online channels. (2006. also need to be discussed.M (2006. Besides that. many companies have to take the pros and cons of Internet marketing channels and traditional marketing channels into consideration seriously to decide which channel is suitable and more effective for their companies.

when a company advocates for its customers. to be successful. Effects on environment Online sales are not only saving a huge amount of money by reducing store operating costs but also decrease remarkably the fuel consumption needed for traditional sales that contribute a lot to the environment protection program. According to the authors. Internet marketing not only contribute to save space by promoting paperless office but provide easy shipping of products than tradition sales channels as well. 10). By using variety of Save the Amazon?" (2000. differentiation and positioning are all keys to effective digital marketing. the customers will in turn advocate for the company. he proved that many firms of different sizes and business fields were using many techniques to fulfill customer's needs and interests. 24-29. 416-435) in their work named "Gender differs: assessing a model of online purchase intentions in e-tail service" figured out how important the role of gender was in online retailing. They concluded that female consumers tended to give lower evaluation to the effortlessness of online purchasing than male 15 .specifying how to deliver value to these groups. Focus on gender Chiu Yu Bin. In other words. quality and diversification of commodities should be taken into consideration to have a precise picture of how to advocate customers in general. and Greg Lindsay in their article "Will Amazon (. This was once discussed in details by Chen. Lin Chieh Peng and Tang Ling Land (2005. factors such as costs. Catering to consumer interest According to Urban Glen (2006. a company has to apply any means to satisfy its customer's interests. Segmentation. targeting. However. Christine Y. 224-225).

Chung W. 24022411). This will more or less strengthen the male customers' attitudes and intentions of purchasing. customers also have their own opinions and attitude towards Internet marketing. it should pay attention on user-friendliness seriously. to make sure that their customers’ information cannot be misused. To increase a number of female customers. based on their work. the right products should be offered to male consumers whenever they order them and companies should respond to inquiries in a timely fashion. For the authors. 16 . drew a conclusion that it was a must for companies to have privacy policy statements under their website to protect consumer privacy information.consumers. 416-435). It means that if a company wants to retain and increase number of male customers. (2002. for instance. and Paynter J. solutions such as legislation. (2005. Consumer privacy In an effort to understand New Zealand consumers more. Some solutions were also discussed in this study to protect customers' privacy. companies should provide them with a fashionable user guide. There are some works which concern what would interest consumers to pursue e-marketing and be willing to use it as well as what would prevent them from using it. According to Chiu et al. self regulation and technical solutions had be combined together to maximize its effectiveness. Internet marketing – consumer perspectives In fact. they can attract these target customers with the effectiveness of visual effects and wonderful background music.

479 . 14-22) found out that online customers would purchase via the Internet with web maven reviews influencing their mind set. Kim W.603) with their study about online travel agency service came to conclude that the top priority factor which affected customers’ decision making in purchasing was lowest price. 591. They are afraid their privacy can be revealed and misused without their acknowledgment. functions. If buyers do not trust the company which provides online sales services.Consumers decision making process in buying a product or using a service The fact is that any consumer is influenced by different factors in his or her decision making process of purchasing products or services. competence through professional websites and security. e-marketing helps consumers to have more different means to search for products' designs. so they can compare and contrast products and services before giving their final decisions. External factors such as third party recognition also are very important. 17 . Kim D. Davidson Alistair and Copulsky Jonathan (2006. In addition. many customers feel confident to make an order only when they have made a few purchases. According to George Joye F (2002. In addition.J. How consumers evaluate companies in the Internet The participants in Cheung Christy M K and Lee Matthew K O (2006. security. However. the study can bring more precise results if the participants come from different group ages. ease of navigation of the website and fast loading time of the website. guarantee terms also contribute to build trust in customers' minds. specifications.492) work evaluated Internet merchants based on integrity. 165-180).S (2007. features. A company and its website can gain customers' trust easily if a recognized third party certifies that the website is secured. prices etc.J and Han J. they will never want to make any online buying decisions.

Factors preventing consumers from enjoying Internet marketing According to Liebermann Yehoshua and Stashevsky Shmuel (2002. 18 . and different marital status. 291-300). not receiving Internet products purchased. lack of physical contact. Internet usage addiction. pornography and violence. bought online/not bought online and heavy/light Internet user. The participants for this study come from different genders. information reliability. group ages. the factors which can prevent customers from using and believing in e-commerce include: Internet credit card stealing. high/low education background. Other variables are also examined for example Internet user/non user. missing the human factor when Internet purchases are made. fear of supplying personal information. vast Internet advertising.

There are few marketing options with the speed. Start figuring out how to make more of your marketing visual in 2013. To help you capitalize on the opportunities. efficiency and reach as internet marketing. LinkedIn and Twitter. Desk. videos and ads as much as to anything else. And so you should take the time to ensure you are focusing sufficiently on your internet marketing to maximize your revenue and growth. Whether the explosion in infographics. Just look at the success of Apple. and only getting hotter. we are going through a visual revolution. communication through visual means is hot. because design sells. Nike is a shoe and apparel company. It’s the design that powers Apple’s value. and that’s no coincidence. Focus on great design for all of your internet marketing in 2013. yet pays just as much attention to the design of its website. tools and techniques will continue to increase. It actually carries very few products. 19 .com or Nike. though. Pinterest.LATEST TRENDS IN INTERNET MARKETING Internet marketing is now a critical piece of just about any company’s marketing mix. Marketing Goes Visual Similarly. Apple is the most valuable company of all time. or the redesigns of Facebook. Design Matters Design matters. The year 2013 will prove to be another year in which the array of internet marketing vehicles. All four websites are stunning. or the dramatic rise in the popularity of Pinterest. 2. here are 13 hot internet marketing trends for 2013 that you should consider when planning your marketing initiatives throughout the year: 1.

For email marketing. 4. consider that after 72 hours.1 billion smartphone subscribers specifically. or 95% of a video they watched. Mobile Mobile Mobile Wordwide. 65% of an image they’ve seen. if you need further convincing that you should start planning how to connect with your audience via mobile channels for your business. a typical person can retain about 10% of text that they’ve read. Check out all the unbelievably useful options available to you. you might be using SEOmoz. Cloud-Based Tools To be uber-efficient with your internet marketing efforts. huh?!? 6. You can see examples at the following websites: Volkswagon Beetle and Activate (be sure to scroll down the page!). For website analysis.3. The iPad was the fastest growing technology product EVER! Wow. So it’s clear your audience likes video. For heat map analysis. 20 . there are over 5 billion mobile users and 1. If you are planning a website redesign in 2013. Parallax Design Parallax website design incorporates special scrolling techniques whereby background images on the screen move slower than foreground images. you might be using BoostSuite. consider incorporating elements of parallax design. Video Video Video More than 4 billion online videos are watched every day. you should be using cloud-based tools. For landing page testing. you might be using CrazyEgg. creating an illusion of depth on the screen. you’re nuts! 5. For SEO. On top of this. Sixty-eight percent of video watchers share video links. you might be using Unbounce. you might be using MailChimp. Think that video might be helpful with communicating your message to your audience? Just a bit.

and with more granular social media analytics as provided by tools such as SproutSocial. 9.7. but ALL screens. and Twitter has more than 500 million.901 Tweets PER SECOND being issued as TV viewers watched Adele win Record of the Year at The Grammy’s. Make sure that your internet marketing accounts for not just desktops. Email Remarketing In lead generation campaigns or retailer email marketing. AdRoll. but it’s been difficult for many businesses to m ake sense of it all and to gain solid business value out of it. 10. However. Retargeter and also Bizo (for exceptional B2B retargeting). If you are already investing in your site and your marketing campaigns for more site traffic. Retargeting Goes Mainstream Retargeting is a means of placing your advertisements in front of your audience after they have left your website without converting. 8. With a growing number of marketing platforms such as Wildfire by Google and ShortStack. Social Media Gets Smarter Facebook has more than 1 billion users. Your options for retargeting include Google Remarketing. it’s clear that we all live in a multi-screen world. After the abandonment of a registration form or online shopping cart. extracting clear meaning from your social marketing will get easier over time. then it typically pays big dividends to remind the people who left your website without a conversion of your value in solving their needs. Followerwonk and PageLever. there are always going to be occurrences of form or cart abandonment. through email 21 . it’s a waste to just let the prospect go without reaching out and finding out if you might indeed offer exactly what they want or need. The Multi-Screen World With 86% of mobile internet users actually using their devices while watching TV. Social media is an opportunity for your business. and with more than 10. What many marketers fail to realize is that retargeting is one of the most effective internet marketing techniques available.

12. combined with targeted PR is going to be a triad that’s hard to beat. transparent social marketing. whether Google. and retargeting. it’s become extremely clear that quality and value matter. ClearSaleing or VisualIQ. 11. According to SeeWhy. With Google’s Panda and Penguin search algorithm updates. and the integration of search and social has accelerated with the introduction of Google+ and the Google Knowledge Graph. 22 . then it can be difficult to assess the value of each piece of your marketing puzzle. Search. combined with sincere. email marketing. That’s where attribution measurement services come in. 26% of those who abandoned an online shopping cart will return to complete the purchase in the case they receive a remarketing email. If someone encounters your brand five times in a given week through the different marketing vehicles. such as paid search. SEO. Social & PR Collide Organic search has been incorporating social signals for some time. who’s to say how much credit to give to each of the different pieces. That means high quality content.remarketing you can send out an automated email to give your brand another chance at winning the heart and mind of the prospect. Attribution Measurement If you run multiple forms of internet marketing. display advertising.

Social media marketing involves using peer recommendations. Marketers today have to think of very innovative and eye-catching strategies to entice wary viewers. It also uniquely encourages customers to create content and buzz around a product themselves. sharing. More than ever before. however. Here are some of the current trends: • Social media marketing. brands are creating personas and identities around themselves rather than the products they sell. Whether it is a fad or here to stay. Unlike the broad-strokes targeting done in traditional marketing (placing an advert in a relevant magazine. since social media platforms and their sharing functionality are the main way that a message is able to “go viral” online. building brand personality and addressing the market as a heterogeneous group of individuals. Keep in mind. that viral marketing does not make a holistic online marketing campaign and should be just one of many tools used to create awareness and encourage interaction. Viral marketing is closely tied to social media. concurrently. 23 . • Targeting. social media has made an indelible mark on the web landscape and. • Brand as product. on marketing tactics. A major component of viral communication is the meme – a message that spreads virally and embeds itself in the collective consciousness (“Don’t touch me on my studio” is a recent South African example). This form of marketing involves the exponential spread of a marketing message by online word of mouth (sometimes referred to a “word of mouse”). • Ad fatigue. The online space allows customers to interact and converse with the brand personally and directly. Virtually all online advertising is targeted to reach specific readers. • Viral marketing.GLOBAL TRENDS IN INTERNET MARKETING The internet marketing field hasn’t stood still. Web users have become very familiar with online advertising and have learned to tune it out – or have even installed programs like AdBlock Plus to block it altogether.

many of these strategies will sound outdated in a few years. 24 . These strategies do. but their essence stays the same. Refer back to this list in the future and see how much has changed – chances are. • Golden oldies.for example). use new tools and tactics (like advanced tracking. targeting can be done automatically and extremely successfully. web targeting can be extremely precise. of course. Despite all the exciting new strategies. With the immense amount of personal and usage data currently available. email and website marketing remain among the most useful and effective techniques. integration with social networks and customer-generated content).

and thus it is essential for marketers who want to possess an understanding of consumer behaviour in order to make marketing strategies (Malcolm). information search. and at last post-purchase behaviour (Crawford. and human beings are always not easily studied. but has usage and disposal the goods. the consumer behaviour is not just purchasing. During these serials actions. use or disposal of goods and services” (Malcolm). it is based on the notion of creating satisfying relationship between sellers and buyers. understood and sometimes quite ambiguities. similar as organization purchasing activities usually followed by group decisions. 1997). consumer behaviour defines that “the study of the mental and physical activities performed by individuals or groups that result in decisions or actions associated with the purchase. consumer is being an important partner to make requirements. Perspectives Traditional consumer behaviour shopping has its own model. the perspectives on consumer behaviour could be divided into two parts: Macro perspective and 25 . In this kind of exchange process. Warner emphasized the consumption related behaviours are often undertaken collectively. this type of information always be useful for company to make marketing decisions (Malcolm). then purchase. the complexity of consumer behaviour represents a challenge to anyone who wants research the subject including marketers. evaluation of alternatives. Beside this point. which the buying process starts from the problem recognition. Therefore. From the concept of marketing. Definition According to Warner. some activities performed by individuals but consumed by a family or group of people. For example.CONSUMER BEHAVIOUR To study the consumer behaviour is very complex as it is a kind of human behaviour.

The internal influences are variety of psychological processes. and the traditional shopping could gives customers more comfortable shopping environment and good quality of products 26 . and semiotics (Malcolm). afterwards a part of new products will be taken home and be used. Factors The influences on consumer behaviour are often made between external and internal factors. This behaviour will be influenced by the seller’s advertising and promotion which attracts customers goes there and purchase goods. at the same time. socio-economics. the environmental of shopping place such as free parking place. According to Warner. subculture. learning. the external influences could divide into five sectors: Demographics. Internet Shopping Internet shopping and traditional shopping are sharing many similarities. External factors are come from the environmental conditions. such as the Internet shopping could provide convenience and interactive services (Jarvanpaa and Todd. such as the brand name of the store. Macro perspective mainly influences by modes of thought and deploy form of enquiry. shopping place and consumer’s needs. The functional motives are mostly about the time. which include attitudes. reference groups. technology and public policy. motivation. self image. it still exists some differences between them. and internal factors are usually from the consumer’s mind. In addition to these. The traditional shopping is simply about the customer to purchase their needs. lower cost of products and available to choose from widely range of products. which are functional and nonfunctional. perception. Micro perspectives mainly include the decision theories (Malcolm).Micro perspective. There are many factors could influence consumer’s behaviours. The non-functional motives are more related with culture or social values. Sheth (1983) also suggested that the consumers have two types of motives while shopping. and marketing. culture. 1997). which could be like one-stop shopping to save time.

Internet offers some good ways to save money and 27 . 2001) and 3D techniques (Miller. there will be a summary provided in the end of this chapter. Convenience Internet provides a big convenience for shopper as the main reason for they shopping online has been agreed by most of researcher and customers (Wolhandler. In this section. 2000). Internet shopping malls adopt virtual reality (Lee. after that. 7 days a week from home or office. online security. which means customer can browse and shopping online 24-hours a day. it allows customer to shopping online anytime and anywhere. 2000) to improve the presentation of products. Moreover. more counters.(Lee and Chung. Additionally. Nature of Internet Shopping As mentioned above. 1999). privacy and trust will be discussed. the study would provide the nature of internet shopping at first. then the E-commerce web site will be indicated to comprehend the essence of internet shopping. the Internet shopping is another mode of shopping and it can provide customers with new experience. the product and services for Internet shopping could be influenced easily by their type. the Internet shopping has its special nature to difference with traditional shopping. Due to the feature of Internet. the nature of Internet shopping will be discussed below with three main parts: convenience. which attracts some time-starved shoppers come to Internet for save time to searching products in physical store. Both aspect of shopping malls are trying to improving their services by learn commutatively from each other. Therefore. and product and price. technology. All of these general overviews and discussions about the internet shopping will provide a background to the study and help to building the foundation of academic researches. According to Miller (2000). and closer to residential area in order to improve services in convenience. and he also indicated four sources that could explain the nature of Internet shopping. In the following sections. such as traditional shopping malls provide more parking spaces.

1999. but Internet offers them more enjoyable while shopping online (Wolhandler. Through the wide range of surveys about the Internet use. there are 30 million users often shopping online. Technology The convenience based on Internet is mainly according to the technology development. Both surveys shows that more and more Internet users prefer online payment while they shopping. which help shopper’s decision making (White.7 million among 48. thus the security of online payment certainly will become a significant factor to influence the Internet shopping.time. in the aspect of Internet shopping. and near 1/4 Internet users have online shopping experience. the growth of Internet and the rate of growth of Internet usage have been rapid increased in the last decade. and some shoppers reported that they feel pressure from the sales people sometimes. 1997). and which plays a key role during the development of Internet shopping. According to the BMRB International (2004) and GVU’s WWW 9th User Surveys (1998). there is no waiting line for shoppers on the Internet. For example. As this kind of technology is quite complexity and costly for Internet retailer develop by them own. Information technology has used in the form of the Internet improved better quality of product information. GVU’s WWW 9th User Surveys. and thus there are many important technologies like virtual reality and 3D techniques have adopted to gain big competitive advantages (Clark. they usually ask for professional security 28 . the number of Internet users in Great Britain has increased to 22. Moreover. From this report. Compare with the traditional shopping. and about 53% of Internet users have reported that shopping is a primary use of the Web. In the last decade. 1989). The provision of the security is becomes the highest or almost the highest budget in the service development of Internet retailer. shoppers do not need go out to the physical store and thus there is no transportation cost. therefore. organisations have realised that the new technology could impact on Internet shopping deeply. a statistical report on the Internet Development in China from CNNIC (China Internet Network Information Centre) have released in July 2006.4% of the adult population. 1998).

if the brand name and equity of products or services have embedded in shopper’s mind. For some products. Therefore. As Yoo W. and make/change orders instantly and easily. 29 . Product and Price The Internet allows consumers to browse products or services extensively. that means this products or services are more amenable to web based marketing. and which could increase the happiness of customer to shopping online and let them gain new shopping experience. but they still gain a new kind of shopping experience (Punj and Steelin. Because of the feature of Internet. which shoppers are already known the quality. even some of them did not actually buying anything. and thus shoppers could looking for it by search through a large scale of product database. These allowable activities offer another way of convenience to consumers. and that means the less quality concern for shoppers purchase it from online. Another Internet technology has adopted for improving the Internet environment is developing a virtual community. 1983). For browsing the products/services. consumers only need to do is open a browser and exploring the shopping sites. Suh K.. personal interactions with other customers and service providers play a very important role while shopping online. (2002) mentioned in his report. which gives them more pleasure to seeking out the new information about the products and services than searching in physical stores. the Internet retailers offering not just products or services but also a nice and efficient interface for interactions with customers. check and compare prices among all of the offers. search the newest products or services information. and people can not meet each other directly.service provider to check their E-commerce web site. therefore. and get the verify or certificates from the provider like VeriSign. the web based contexts can easily and flexibility show the inventory of some niche products. Moreover. such as books and CDs. customers can not check the products and service carefully. in order to let shopper knows that shopping on Internet is very safely. and Lee M. almost all of trade between sellers and buyers are through a virtual world.

From the firm’s view. E-commerce Web Site According to Zwass’s (1998) definition for Electronic commerce is “the sharing of business information. and it becomes very popular in the people’s life. which is mainly according to consumer’s different shopping motivations. the majority of Internet shopping behaviours consist of one-time purchases. the Ecommerce shopping websites need improve their services or reduce the cost of products in order to motivating these one-time purchase shoppers to become loyal and regular consumers. the adoption of E-commerce for Business Company could gain more advantages than disadvantages. the Ecommerce shopping websites have their strength than physical store. and some of this are not fully solved. for the aspect of the sharing of business information. 30 . and conducting business transactions by means of telecommunications networks”. taxes and tariffs. as the Internet makes much easier to running an online business for firms. Therefore. distributors). actually there are some problems are exist in the international market. email. and the associated costs will be decreased in some ways. thus that strength of the Internet attracts firms to enter this new marketplace. On the other hand. as they can remove the middle marketers (brokers. and that the lower warehousing cost and distribution expense can be added to online retailing channels for reducing the marketing price. For doing business. which could greatly attract the price-sensitive shoppers come and purchase. In the aspect of costs. maintaining business relationships. web based forum.According to the research by Bulkely and Carlton (2000). For example. such as convenience. such as the currency. The Internet mad the world become smaller and closer. Despite those problems. the Internet provides shared databases (such as the databases of books have been shared among all of the publishing company in the US). and also conducting business transactions much easier and more efficiently. electronic data interchange (EDI) and other software could increase the interactions with customers and business partners. the Internet provides a lot of technologies to enhance the E-commerce.

2002). and relationship enhancement (Swahney and Zabin. 31 . The B2B commerce and B2C commerce have some similarities. and thus it can helps firm increase the revenue expansion. Each component plays a key role in the Internet shopping. and web based advertising can lead to small expenditure. beside this big cost for traditional firm. the firm can provides much cheaper products and services to attract more customers. Cho D. For the time reduction side. products & services. the Internet also provides many applications (e. such as they both use electronic payment systems. 2001). revenue expansion.g. and the interaction between service staff and customers and instant feedback to customers could be mad possible. but it is the trend that the E-commerce is an indispensable constitutes for firms while they are doing business. and also the enhanced interfaces and operational functions. The Internet retailers can both have B2B commerce and B2C commerce as they can use B2B commerce to link directly to their suppliers and use B2C commerce to sell products and services to individual consumer through Ecommerce web site. There are two types of E-commerce web sites: Business to Business Electronic Commerce (B2B) and Business to Customer Electronic Commerce (B2C). The Ecommerce can be essential complementarities for the firms as the store rents and the cost of for sales staff can be greatly reduced by transferring physical store to online. B2B is commerce where business activities between companies through web site channel. and E-commerce web site. such as printing and mailing cost. By the reduction of costs. email) to reduce the costs. B2C is commerce where the purchase and sale transactions between the consumers and sellers (Lee H. Even there are some challenges exist for doing E-commerce. The advantages of E-commerce could be divided into four sides: cost reduction. these activities improve the relationship with customers indirectly. and facing the lack of trustiness between both sides. as the traditional store have difficult and very costly to update the products information. and Lee S.There are three components in the E-commerce processing: sellers & buyers. but the online information is all the time updated... in other words. time reduction.

because of the third party verification. In B2C E-commerce area. In the Maignan and Lukas’s research (1997) shows that the financial risks have been cited as a main reason to stop internet shopping. such as in the sections of security. which have proved by recent studies shown that consumers perceive a higher level of risk. Security Due to the characteristics of internet. there will be a seal offered by TRUSTe shows that their commitment to security. such as public credit card details to unknown people or website. 1999). Trust and Trustworthiness Compare with the in-store shopping. These financial risks are mostly caused by customers themselves. catalogue (Reynolds. 1964). Even some websites have secured certified by professional organisation. and also through unauthorized use. privacy. the internet shopping has much higher risks during the purchasing process. Thus. others such as mail order (Spence. The security treats can be made through the network and data transaction. especially the customer’s personal information and monetary details.Online Security. Therefore. As internet shopping is one of the non-store shopping formats. Even though the internet provides many functional advantages. 1970). but it still have some disadvantages. and internet shopping on the computer with virus. the customers considered this seal could make them more confident to provide their information to the site. but still have some customers lost their money through internet every year. telephone shopping (Cox and Rich. once a Internet retailer joining the program. the information across the web could be lost or stolen quite easily. and security has become a major concern both in online transaction relationships (Rowley. some customers have apparent sense of using credit card online in the insecurity way. The reasons could be widely. trust and trustworthiness. leave credit card in the public place where other people can easily reach. 1974) and so on. Privacy. The web merchants like TRUSTe provide a third-party verification program for their customers. the Internet retailers have responsibility to keep monetary and 32 . there are many web merchants are offering third-party privacy and security protection. such as encryption and password protections.

2001). From the survey results. To improve the effectiveness of the Internet shopping environment could benefit both sellers and buyers and make much convince to the customers. customers are being very carefully to reveal their personal information since the legal environment of Internet is uncertain. the privacy information could be tracked and collected. Privacy Another type of risk that consumer will faced is psychological risk. “the willingness of a party to be vulnerable to the actions of another party based on the expectation that the other will perform a particular action important to the trustor. because of the lack of legal remedies. however. which is mainly caused by the privacy information lost. irrespective of the ability to monitor or control that 33 . this implies electronic customers should be aware of privacy risk and it could affect customer’s obstacle to shopping on the Internet. According to Earp and Baumer’s research. Trust and Trustworthiness Mayer. but the evidence is not strong. On the Internet. web site that has privacy statement and third-party verification could reduce some customer concerns. Moreover. The Federal Trade Commission (FTC) has statutory authority to prohibit the web site to acquire information by “unfair and deceptive” trade practices (Earp and Baumer. it does not have ability to comprehensively control every activity among the Internet. in order to send spam mails or emails. Moreover. such as disappointment and frustration of shopping online. and Schoorman (1995) defined trust as. Davis. and then it can be used to sharing with third parties. Overall. most of customers willing to reveal their gender and ages. and 18% of respondents willing to provide credit card details to well-known web site while only 3% of respondents indicated willingness to provide the same information to lesser-known web sites.personal details of customer’s safety during the process of online shopping. and to which web site. it also leads to customers more carefully to decide what kind of information will be revealed online.

if the E-commerce web site can provide the information about their customer services. As mentioned above that the web merchant can provide third-party verification to E-commerce web site. 2000).712) (Cheung and Lee. Sitkin. 2006). Online trust is the basic and essential element for building a relationship with customers. This definition is widely recognized and the most frequently cited (Rousseau. and the result from Cheung and Lee (2006) shows that trustworthiness of Internet merchant (perceived integrity. customers could also increase their trustiness as they can feel that the online retailers is truly exist (Lohse 34 . location of the office.other party” (p. & Camerer. customers will think their E-commerce transactions through Internet are secure and thus the site is more reliable to them. A present research shows that online trust is lower level than the face-to-face interactions in the physical store (Cassell and Bickmore. and sellers either in the physical store or online shops. perceived competence. and perceived security control) and external environment (third-party recognition and legal framework) have considerable impact on consumer trust in Internet shopping (see figure 1). contact telephone number. For example. Beside this point. The trustworthiness of E-commerce web site is very relying on the how much privacy security can be provided. a highly technical competence can be a factor to influence the trustworthiness (Singh and Sirdeshmukh. and while this privacy and security strategies are used. 2000). 1998). and a help button on the web site. People purchase products and services are the most based on their level of trust in this product or services. Burt.

An Integrative Model of Consumer Trust in Internet Shopping.and Spiller. the privacy must be protected by the web sites. So far. the security must be ensured that the transactions on the Internet are safe. Online Consumer Behaviours As the traditional shopping behaviours are also could be transferred to internet shopping behaviour. 35 . Therefore. this chapter will pick some points of view in association with consumer behaviour that mentioned above and together with other ideas to have a deeper discussion. For instance. 1998). Figure 1. there are many rules and conventions need to be improved to fit the online environment. and the trust transference programs are needed to help engender customer trust in the Internet shopping environment. In summary. the Internet offers a new way to do business and gives fresh shopping experience to customers.

services. and Kardes (1995:5) suggested consumer behaviour is “the study of human responses to products. The five independent variables are identified as antecedents. According to UCLA Centre for Communication Policy (2001). Online consumer behaviour is complex and can be described as the process of purchasing products or services via the Internet. Background Since the explosion of the World Wide Web in the 1990’s. intention to shop online. immediately following email using and web surfing (Li and Zhang. the potential consumer recognized a need for products or services. According to Li and Zhang’s (2002) taxonomy that developed based on their analysis. and then. they use Internet for searching related information. After the consumer behaviour background examined. During the process of Internet shopping. and consumer satisfaction). the vendor/service/product characteristics and web site quality 36 . decision making. the shopping motivation of consumers and decision making process are considered to be separate into two sections in this study. and web site quality) and five dependent variables (attitude toward online shopping. If the information search result can meet their needs. These ten factors could be categorized into five independent variables (external environment. and it has become an essential characteristic in the Internet era. and marketing of these products and services”. personal characteristics. 2002). In the antecedents. and final purchase is made and following with post-purchase evaluation.The current status of studies of online consumer behaviours is investigated through an analysis of existing literatures as background studies of consumer behaviours in order to understanding of the dynamic of online shopping field. Internet shopping has become the third most popular Internet activities. vendor/service/product characteristics. As Liang and Lai (2000) indicated in their research that this process have similarities with traditional shopping behaviours. demographics. there are ten impacts of relevant factors on online consumer behaviours (see figure 2). the potential consumers evaluate alternatives in order to choose one of the best products or services. online purchasing. which directly determine attitudes towards online shopping. relative Electronic commerce has been developed rapidly.

thus when buying books. decision making. and then buying from the online sites. Now that consumers have both online and offline shopping choices. and the researchers seems to find different factors in different way. Research Model of Consumers’ Online Shopping Attitudes and Behaviours There are many studies of online consumer behaviours in recent years. and this two ways relationship could influence each reciprocally. attitude. there is a variety of studies which focus on comparisons between online and offline consumer behaviour in relation to different products has been presented. on the other hand. Consumer satisfaction is separated and occurs among at all possible stages depending on the consumer’s involvement during the Internet shopping process. and online purchasing are series of processing stage. most of them focus on the factors influencing the online consumer behaviours. some consumers using offline store as dating venues. intention. some consumers prefer go to the physical bookstore as their perceptions of books and the environment in the bookstore. or. Moreover.are directly impact on consumer satisfaction. Consumer behaviour difference within online and offline shopping are mainly because of consumer’s attitude and interest. Figure 2. 37 . The figure clearly shows that the antecedents.

and thus these beneficial offers from the Internet may turn into motivation for customers active or arouse their needs. 2000). online consumer might do this repeatedly. proceed to leave the site altogether. 2000). the Internet shopping allows consumers more freedom to continuously visit and purchase products. the online research drives the offline sales. The study shows that the Internet plays a role as a consumer product information utility more than its role as a direct selling medium.Consumers often use the Internet search for product information before buying from online or offline stores. return days later to purchase a product. Rangaswamy and Wu. for offline consumers they may go into a store simply to research products. Therefore. online consumers could easily go for research products. even they leave without a purchase (Wolfinbarger and Gilly. in other words. The research shows that the internet has become a useful tool for comparison shopping and users often click around various sites to view and compare products. many online visitors window shop more than impulse buy. and there also have many evidences to prove that the online shoppers become much more active than before. Furthermore. customers feel more about values. 2001). According to Anfuso’s research (2004). and then spending in the offline. Moreover. but the offline shoppers would be less likely to do research products very often. However. and then. or they might buy locally (Degeratu. but not over and over. need and concerns which energize behaviour and send the organism in a particular direction aimed at satisfaction of the motivational issues that gave rise to the increased energy (Mallalieu. the study found that Internet influenced offline spending is now growing faster than direct online spending. consumer still prefer shopping in offline store than buying from the Internet. Pittman (1998) defines a motivation as the activation of interna desires. Thus. Compare with convenience of the Internet provided. Consumers use online product research. According to 38 . Through the E-commerce web sits provide superior products and services and interactive communication with online retailers. possibly. Shopping Motivation It is true that the E-commerce is increasingly adopted by business organisations.

Perner’s research, there are several perspectives on behaviour as a way to understand what motivates the consumers: (1) the hard core behavioural perspective is based on learning theories like operant and classical conditioning; (2) the social learning perspective, which allows for vicarious learning; (3) the cognitive approach emphasizes consumer thinking rather than mere behaviour; (4) the biological approach suggests that most behaviour is determined by genetics or other biological bases; (5) the rational expectations perspective is based on an economic way of looking at the World; (6) the psychoanalytic perspective is based on the work of historical psychologists (Perner). All of the perspectives help to explain the motivation of consumers in which the customers do the shopping, and the major study in this research is related to the rational expectations perspective. In addition, through understanding of the motive for online shopping can facilitate the comprehension of consumer’s attitudes, intenti on and consideration. Thus, the following section “Decision Making Process” will be discussed about the factors that impact on consumer behaviours.

Decision Making Process

Decision making process is the cognitive process leading to the selection of a series of actions among multiple alternatives. Every decision making process will have the final choice which called decision, and it can be an action or opinion. In this study, we mainly talk about the consumer decision making processes, which are the decision making processes undertaken by consumers in regard to before, during, and after the purchase of a product or service (Wikipedia, 2006). According to the Wikipedia web site (2006), there are three ways of analysing consumer buying behaviours in general. They are: Economic models These models are largely quantitative, and they are most relying on the assumptions of rationality and close perfect knowledge. In these models, the consumer is seen to maximize their utility, and some theory such as game theory can be used in some circumstances.


Psychological models These models are qualitative rather than quantitative, and they concentrate on psychological and cognitive processes such as motivation and need reduction. Moreover, these models build on sociological factors like cultural influences and family influences.

Consumer behaviour models

These models typically blend both economic and psychological models, and which are practical models used by marketers usually. In the recent of researches, it suggested that there is a five-stage decision making process for consumer to go through in any purchase (see the diagram below).

Figure 3. The consumer decision making process and its five stages. Source from:

When people buy things, they will engage in a decision making process. Thus this model is important for anyone who making marketing decisions to consider the whole buying process rather than just the purchase decision. The current research shows that one of the major problems of E-commerce web sites is that they fail in supporting the customers in this process (Olsen, 2003). By understanding the customers needs and concerns as they process the decision making cycle, marketer can provide better products and services. The model has five stages in the whole process, but it does not means that the customers need to pass through all stages in every purchase. In some cases, the customers often skip or reverse some of the stages. For


example, a customer buying a favourite food would recognise the need, so he/she can skip the information search and evaluation, and just go right to the purchase decision. Moreover, the complexity of the decision making process can rage from careful analysis (rational) to pure impulse (emotional), like the example above, the impulse buy can take place instantaneously, but the complexity purchase always take long time to analysis. Furthermore, this buying decision making process is iterative process, “where people collect information from different sources and repeatedly return to re-evaluate and compare the information they have found” (Olsen, 2003). According to the researches from the usability consultancy UIE, the online buying decision making process can be acts as a sieve, where customers are filtered out through the each stage of the decision making process. From the figure below, there are 17% of customers are filtered out at the information search stage. In this percentage, there are 9% of customers weren’t able to find the products which they were looking for, and there are 8% of customers who find the right products but gave up at the end due to lack of information to identify final purchase. For the customers who want to evaluate their product alternatives, there are 25% of customers are filtered out due to some reasons: firstly, some stopped because there is none of the products can fit their needs; secondly, it is because the information of products was not enough to tell them that products are in satisfied their need. At the purchase stage, there are 12% of customers lost due to the inconvenience or disappointed by the E-commerce web site services. Again, there are 12% of customers have problems in the purchase evaluation stage. These customers are unhappy with the product that they purchased from online as some of them got the wrong products, some found the product was not what they expected, and extremely some customer did not receive the product at all.


At this stage. if there is email list and those customers on the list have accepted subscribe to received information of new products and related offerings. There are many ways to understand the customer needs: one effective and economical method is to collect information from salespersons that are in contact with customers very frequently. Source from: guuui. the Internet can provide huge amount of information for marketers utilize to stimulate consumer Need Recognition The decision making process starts with need recognition. which will also be useful to trigger need recognition (Mae et al. online retailers can use advertising online/offline and web site promotions to attract customers come and consume. they have to do some researches in order to learn which customer needs and concerns they have when making purchase decision. and that could help them to support the customers’ decision making process. 42 . Results from UIE.. For the online retailers. Moreover. 1999). another way is through interviews with customers and observations their shopping behaviors in order to gain information.Figure 4. Besides this. Therefore. the customer recognizes a need or responds to a marketing stimulus.

2. friends. there are many ways for customers to obtain new information. whether they will search information through the Internet and then buy through offline channels. According to the UIE study is that the usability problems have exist in the design of the sites. examining. If there is enough information of products or services they got recently (which mainly according to their shopping experience). online retailers should provide detailed product information and ease use of shopping interface in order to be able to support the 43 . therefore it plays a key factor to attract customers using the Internet as the first choice for information search. retailers. After the customers start looking for information. Therefore. whether they will search information through offline channels and then buy through the Internet. and that also meets the need close to hand. such as customers could not find product and unable to process the checkouts (Olsen. 2004). 2003). specialist magazines Experiential sources: handling. there is information search process starts. radio. then they have to decide what and how much information is required. 4. consumer organisations.point-of-sale displays Public sources: newspapers. using the product Although there are many different sources help consumer to make purchase decisions. packaging. whether they will search information through offline channels or the Internet. use the Internet for both information search and product purchase (Moon.Information Search When the customers recognized a need. neighbours etc Commercial sources: advertising. As the Internet has one of the main competitive advantages which is the ability to collect as much products information as possible and makes all of the products can be compared among the different providers. but consumers still have to make decisions on: 1. then the final purchase is likely to be made. Otherwise. it suggested four different sources:     Personal sources: family. dealers. television. According to Tutor2u web site. 3. salespeople.

for the less price sensitive customers who more likely to purchase good quality product if the online retailer can improve 44 . other valuable information such as top sellers can also lead to increased sales (Lohse and Spiller. they must choose between the alternative brands. However. 1985). Han (1996) also examined that the internet usage skill and familiarity with computers can affect consumer information search through the internet. For the product and price. the online retailers need to differentiate the products that they were offering. The extensive research shows that customer’s prior knowledge and experience of using Internet can influence the information search result (Brucks. In addition to add more details in the product list such as image and product description.customer’s decision making process. in the online book industry. Search engine is the major and useful tool to support information search. some customers prefer the internal search facilities while they shopping online. Moreover. The online customers not only compare product and price. With the development in information technology. and offer a competitive price or added other values into products such as lower cost of delivery. but also need to consider the potential risks such as payment security. more and more customers use a range of search techniques for information search. which covers most likely the entire E-commerce web sites and produce hyperlinks to every sites which in association with products. products and services in the evaluation stage. which are mainly according to the price and potential risks. For example. Amazon offers book reviews to help customers evaluate and make purchase decision. Furthermore. which will increase the effectiveness of web site and also influence the consumer’s decision making process. There is one important determinant of evaluation of alternatives is whether the customer perceived relevance of product. consumers have their own characteristics which impact on the decision making process. such as their proficiency or knowledge. Evaluation of Alternatives Once the customers obtained enough product information and then gained a number of possible alternatives. Besides the factors from the online retailers. 1998).

and return policy can be added in the design of E-commerce web site. then they may fell more comfortable and thus may purchase again in the future. the emphasis should be on providing the secure online payment and the easies possible way for the customers to go through their orders. many customers could not find the information needed to complete the purchase. payment. the online retailers can build more interactions between them and customers for increasing the consumer trust. and which is determined by the customer’s overall feelings about the product after making a purchase decision. There are many reasons for that: the first one is some required registration and poor shipping charge policies made customers leave. Furthermore. 2001). and frequently asked questions (FAQs) about shipping. which results in a level of customer satisfaction or dissatisfaction. such as the Amazon did. the contact email address. and also need to employ some security controls during the payment transactions in order to reduce the risk. In order to solve these problems. and some customers even did not find the way to checkout. Purchase At this stage. If the products or service meet the customer’s requirement. For the potential risks. The recent research discovered that 2/3 of all online purchase processes are not completed at the end (Wolfmbarger and Gilly. the online retailers have to offer a wide range of electronic interactivities in order to serve customers efficiently. they may feel that an alternative would be 45 . a well deigned community which allows interactions between customers by leaving comments or opinions will also helps customer evaluate their alternatives. some well known web sites built a large and well staffed team to help customers during the purchase process. Post-Purchase Evaluation The final stage is post-purchase evaluation of the decision. The post-purchase evaluation is common for customers to experience concerns. secondly.the shopping interface and provide high quality information. Moreover. some customers after bought a product. However. For example. instant message based on web.

46 . Therefore. the customers will be encouraged that they have made the right decision after having made a purchase. the online retailers with the marketing team to persuade the potential customers that the product will satisfy their need.much preferable. In order to manage the post-purchase evaluation stage and avoid the product to be returned. the product will be returned to online retailer. If the customers got dissatisfaction with the product as it does not meet their expectations. thus they will not re-purchase the product and may switch to other brand next time.

00.001 to 5.001 to 7.. Gender: Male 2.00.000 3. Annual Income      Less than 2.00. Age years Female 3.00.00.QUESTIONNAIRE DEMOGRAPHIC INFORMATION.001 to 3..00.00.000 More than 7.000 5.001 47 ..00.. 1.000 2. Occupation     Undergraduate Student Graduate student Professor University Staff 5. Your education level     High School Diploma Bachelors’ Degree Master Degree PhD Degree 4..

What is more likely to influence your purchase decision?   BLOGS PRINT MEDIA 7. Would you recommend a brand you follow on any social networking site?   YES NO 48 .6. Do you prefer listed articles or articles with paragraphs?   Listed Articles Articles with paragraph 10. Do you prefer posts with videos or posts without videos?   Posts with videos Posts without videos 11. Which one of the following you prefer?   Articles with graphics Articles without graphics 8. Which company’s website would you prefer?   Companies that have a blog Companies that do not have a blog 9.

In general. Does email marketing affect the purchase decision?   YES NO 14.12. you prefer to do your shopping of: (Select only one) Over the Internet Over the Phone In a Retail Store 1. Books/CDs/DVDs 4. Cosmetics 3. Cinema/concert/Theatre Tickets 5. How often do you use the following World Wide Web Activities? Never 1 Very Infrequently 2 Infrequently Occasionally Frequently 3 4 5 49 . Is the availability of the product image important while making a purchase decision?   YES NO 13. Airplane Tickets 15. Groceries 2.

Electronic Appliances/Computer Products 4. Work/Business 16. which of these purchases would you make in the internet? Yes No 1. Stock/Mutual Funds 50 . Movies/Theatre/Concert Tickets 3. Communication 4. Gifting Items 2. Assuming that you intend to conduct online shopping. Gaming 2. Hotel Reservation/Airplane Tickets 5. Shopping 3.1 2 3 4 5 1.

GENDER FEMALE RESPONDANTS MALE 0 10 20 30 40 The second question was with regards to the age of the respondents. We decided to keep the questionnaire anonymous. The first question of the survey was regarding the gender. The number of respondents in each age category have been given below: 51 . the age group in our analysis ranged from 22 to 29 years. Out of the 50 respondents 34 were females while 16 were males.FINDINGS AND ANALYSIS In this section the questionnaire shall be analysed. A total of 50 responses were considered for the analysis.

It was important to know how much do blogs affect a consumer’s decision. the following table shows the bifurcation of the respondents on the basis of their educational qualifications: NUMBER OF RESPONDANTS 20 30 EDUCATION LEVEL MASTERS PHD We then asked the educational qualifications of each of the respondents. this is so as blogs have become the latest tool of internet marketing. the respondents were either students or teachers at a particular university. Thus our next question pertained to whether companies that have their own blogs are preferred to companies that do not have their own blogs. 52 .AGE 22 23 24 25 26 27 28 29 NO OF RESPONDANTS 9 9 7 4 7 8 5 1 The next question was with regards to the educational qualification. hence it was important to understand to what extent have blogs been able to reach its target market.

With the advent of internet. blogs which are becoming the latest medium of internet marketing are preferred to print media. 53 .e listed blogs or blogs that are written in the paragraph format. so we asked our respondents whether articles with graphics are preferred to articles without graphics or not ? Articles with graphics get a whopping 94% more views than articles that do not have graphics. In the case of blogs. it is important to know which kind of blogs does a consumer prefer i.Upon analyzing the responses we understood that it was very important for companies to market themselves through the medium of blogs. these days people spend the majority of their waking time on the internet. thus they now prefer marketing through the internet medium rather than the traditional form. The design of article is very important while marketing in the internet world.

thus while marketing companies should write their blogs in the listed format to get more hits.Almost all the respondents prefer listed articles than normal posts. Twitter and Facebook have become the most important tools of online marketing. Videos have become a very important tool of online marketing but to what extent does it affect the intended target market. almost 67% of the respondents said that they would recommend a brand that they were following on these two social networking sites. As we can see that videos are far more affective in capturing the attention of the target market as compared to normal posts also it is important to know that videos capture the attention for a far longer period than normal posts. 54 . In the world of internet marketing.

We then moved on to know in a give set of questions whether the respondents prefer to buy them on the internet.Sometimes we see that while shopping online the products do not have an image or else the image is of a very poor quality. This is what we found out: 55 . this is what we found out. So does marketing through e-mail help a company increase its sales. Thus a company should not disregard this medium of marketing as it would be a grave mistake on its part. Communication in today’s world is majorly through the medium of e-mail. over the phone or in a retail store. We wanted to understand the relation between the quality of the image and the purchase decision of a consumer.

40 35 30 25 20 15 10 5 0 1 2 3 4 5 GAMING SHOPPING COMMUNICATIONS WORK/BUSINESS The last question was with regard to which one of the following would a consumer purchase on the internet or not 56 . and whether how often do they purchase these products over the internet.45 40 35 30 25 20 15 10 5 0 ON THE INTERNET OVER THE PHONE IN A RETAIL STORE Hence books/CDs/DVDs. Cinema and Airplane tickets are preferred to be purchased over the internet. The next question was related to repeat purchase. we asked our respondents on a Likert scale of 1 to 5 1 being never and 5 being frequently.

45 40 35 30 25 20 15 10 5 0 YES NO Stocks are the only items that the respondents would never prefer to buy over the internet. this gave us the insight on the mindset of the average Indian consumer as to which kind of products would he buy over the internet. 57 .




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