1. In Chaffey 20008, chapter four, three types of social behaviour are identified. These are the track, hunter and the explorer. What are the characteristics of these customer behaviours and how in particular might you encourage them to purchase online?
A tracker knows the exact product they want to purchase. They use online shopping sites to track a product down and check the price, availability, delivery time, delivery charges or after-sales support. This type of buyer requires very little persuasion to purchase online.
A hunter doesn’t have a particular product in mind but knows the types of product they are after. For example, a television or a laptop. They use online shopping to a find suitable products, compare them and decide which one to purchase. This type of buyer needs more help, support and guidance to reach a purchasing decision.
An explorer doesn’t have a particular product in mind but may have a well-defined shopping objective, a less-resolved shopping objective or no shopping objective at all. This type of buyer has a range of possible needs and many uncertainties to be resolved before committing to purchase. Suggested gift ideas, guides to product categories, lists of top-selling products and information-rich promotions could encourage them to purchase online.
2. Given that the main fears about using the Internet are security and privacy, what can organisations do to reassure customers?
In order to reassure customers, organisations could offer a 100% security guarantee, which means that customers pay nothing if unauthorised charges are made to their card as a result of using their services. Organisations should also state on their website that they are committed to ensuring the privacy of customer at all times when using their websites. Contact details of the organisation should be posted on the site in an easily accessible and clear position to give customers peace of mind and allow them to contact them if they have any concerns.
3. Onsite information processing can be divided into 5 stages: exposure, attention, comprehension & perception, yielding & acceptance and loyalty. What do you think is meant by each of these stages?
• Exposure: Customers must be exposed to content long enough in order to process it. If content is not displayed long enough the message will not be received.
• Attention: Customers have a limited attention span and therefore only pick up the main messages from a website. Therefore movement, text size and colour are helpful in gaining customers’ attention.
• Comprehension & Perception: Customers must be able to interpret the combination of graphics, text and multimedia on the website clearly and accurately. The design should be familiar to the customer so that they will interpret it according to previous experience and memory.
• Yielding & Acceptance: The information presented must be accepted by the customer. Some customers will respond to emotive appeals, while other will make a more clinical evaluation based on the text.
• Retention: Customers must be able to recall their experience. A clear, distinctive site design will be retained in the customer’s mind, therefore increasing the likelihood of a repeat visit.
4. How can (online) customer loyalty be improved?
Organisations need to retain high-value customers for life by building strong emotional and rational bonds. They must find out more about their needs, serve them and then offer relevant incentives to keep them coming back. The five determinant of loyalty include:
• Quality customer support
• On-time delivery
• Compelling product presentations
• Convenient and reasonably priced shipping and handling
• Clear trustworthy pricing policies.
5. It is very cost effective to conduct online market research, but there is also potential for sampling errors. The article extract below shows that 78% of women would rather have a pet than a husband. Do you think this figure is accurate? Give reasons for your answer.
The figure is not accurate as the majority of listeners to the radio station are females between the ages of 23 to 49. Furthermore, the younger-aged women are less likely to have a husband at that particular stage in their life, and are more inclined to vote for a dog instead. Therefore, they have a biased response rate. Marketers must carefully plan their research first before conducting it. As research can be very costly and time consuming, it is important that sampling questions and segments are chosen correctly to avoid any data biasness.
6. As more and more services can be delivered via mobile devices, there is already talk of the post-PC consumer. What impact will this have on marketing?
Marketers will be faced with the same marketing dilemmas as they have with previous technology such as radio, television, computers and i-phones. Dealing with a post-PC consumer should be exactly the same. Marketers need to continue to be adaptable to the new technology and develop marketing strategies and campaigns to suit the new type of consumer. Marketers must not be afraid of change and should move with the market in order to stay in the game.
7. Watch the 1800 Flowers video. How does 1800 Flowers optimise fresh delivery of flowers in all states of America?
In order to optimise the fresh delivery of flowers in all States of America, 180 Flowers controls delivery tightly. They control distribution by working closely with florists around country to manage quality, delivery and all aspects of the experience with perishable products.
8. Watch the Yahoo video. What are the key elements of a social network that are identified?
The CIO of Version Telecom says that giving people creativity makes a job fun. When people enjoy their job, they are more likely to go above and beyond. The key elements that he states are:
(a) Ask people to propose ideas in order to identify new opportunities in the business.
(b) Give people the opportunity to try and fail quickly. Quick failures are easy to resolve and cost the business less money. It facilitates quick learning and puts the business on the right course to get the right solution.
9. In addition to answering the questions this week, you should read widely on the subject. Visit some online blogs such as clickZ, Wired, Techcrunch and find some scholarly articles using Google Scholar. Search for articles on online relationships and loyalty, communities and social networks, buyer behaviour online, trust, loyalty and online customer motivation. You wont be able to cover all of these areas, so concentrate on finding a couple of journal articles and briefly describe the key points in them.
Does online relationship marketing enhance customer retention and cross-buying?
For full document, visit the following link: http://search.ebscohost.com.ezproxy.ballarat.edu.au/login.aspx?direct=true&db=hjh&AN=34319968&site=ehost-live
I found this journal article on EBSCO Host when searching for articles on ‘online relationships’. The key points in the article are that customer loyalty is more difficult to achieve in the online context than in the offline one. The integration of Internet technology with the customer loyalty concept is rarely discussed in the relationship marketing literature. The article also uses a model that examines the relations among relationship-bonding tactics, perceived relationship investment, perceived relationship quality, customer loyalty, customer retention, and cross-buying. The results demonstrate the effectiveness of relationship marketing as it positively influences online customers' perception, then their loyalty, and ultimately, their actual purchase behavior.
Between Friends
For full document, visit the following link: http://web.ebscohost.com.ezproxy.ballarat.edu.au/ehost/pdf?vid=8&hid=108&sid=794be57e-0216-457c-bcf2-d5b155a24aa6@sessionmgr111
I found this journal article on EBSCO Host when searching for articles on ‘online social networks’. The article outlines the growth of social networking sites worldwide. It revealed that the idea of a social graph, a representation of a person's network of friends, family and acquaintances, gained popularity in 2007 as online social networks grew. Facebook claims that they have more than 64 million active users, with 250,000 more signing up each day. These companies tried to commercialise the social connections by permitting outside developers to build applications that access user's networks. According to Facebook, they also advertise user's contacts in accordance with the user's online buying habits. Some of these networks include Blogosphere, Comment Flow, Twitter Social Network and Virtual Marketing.