MKElect 3

E-Commerce and Internet

Marketing
Understanding the Internet Consumer
The rapidity of overall growth and use
behavior have several important implications
for marketers:
The character of the Internet customers has changed
from Geek only milieu to a place populated by all
ages and levels of technical prowess.
The users have become notably young
Internet’s speed has definitely contributed to the
growth of its users.
Consumer Behavior on the Internet
Consumer Internet Consumer Behavior
Decision Process
Awareness
Problem
Recognition Search
(Goal Oriented/ Experiential )
Information
Search Task Completion
Content
Acquisition/Purchase/Abandonment
Purchase
Repeat Visit
-Occasional/Frequent
Post Purchase
Behavior Consumption

Loyalty
Internet users Segments
Geographic
Residents of rural areas are less likely to be online
Demographic
Teenagers
 They spend much of their Internet time communicating with
peers through IM, blogs, social networking
 They increasingly see e-mail as a way to communicate with
adults not peers
 They play games, get news, make purchases, and get health
information online
 They are heavy consumers of music and related merchandise
Internet users Segments
Demographic
 Seniors
 Less than one-third of the people older than 65 have gone over
online
 Health information is popular among seniors and persons age 50-
64
 Seniors with a high school degree or less or an annual income less
than $20,000 are less likely to have gone online
 Age, affluence and education have been important to
Internet use since the beginning.
 Before, length of time has been important, but nowadays,
unimportant.
Internet users Segments
McKinsey’s US Internet Users Segmentation
 Connectors (36%) are relatively new to the Internet. They connect and
communicate using the internet but their loyalty is to offline brands
 Simplifiers (29%) use the internet to make their lives more convenient.
They require superior customer service from beginning to end.
 Routiners (15%) use the Internet as a regular source of information but
are not generally online purchasers
 Surfers (8%) spend most of time online, using it for variety of tasks,
including purchasing
 Bargainers (8%) search for the best deals online. They use the internet
for both entertainment and shopping
 Sportsters (4%) use the internet almost exclusively for sports and
entertainment Information