Chapter 10 - Marketing and Advertising in E-Commerce
Learning Objectives
Upon completion of this chapter, you will be able to:
1. Describe factors that influence online consumer behavior.
2. Explain how consumer behavior can be analyzed for creating personalized
services.
3. Understand consumer market research in e-commerce.
4. Describe the objectives and characteristics of Web advertising.
5. Describe the major advertising methods used on the Web.
6. Learn mobile marketing concepts and techniques.
7. Describe various online advertising strategies and types of promotions.
8. Understand some implementation issues.
Section 10.1 Review Questions
1. Describe the major components of the consumer online purchasing behavior model.
• Influential factors. Factors influencing purchasing decisions fall into five major dimensions. They are
consumer factors, environmental factors, merchant and intermediary factors, product/service factors
(which include market stimuli), and EC selling systems. The first three dimensions are not controllable by
the sellers, while the last two are mostly controlled by the sellers. The dimensions are shown in Fig. 9.1.
The influential factors affect the buyers’ decision process.
• The attitude-behavior decision process. The second part in a consumer behavior model is the decision-
making process, which usually starts with awareness of the situation and a positive attitude and ends
with the buyer’s decision to purchase and/or repurchase (see the oval part in Fig. 9.1). A favorable
attitude would lead to a stronger buying intention, which in turn would result in the actual buying
behavior. Previous research has shown that the links between attitude, purchase intention, and actual
purchase behavior are quite strong.
2. List some major personal characteristics that influence consumer behavior.
Consumer (personal) characteristics, which are shown in the top-left portion of Fig. 9.1, refer to
demographic factors, individual preferences, and behavioral characteristics of the consumer.
3. List the major environmental variables of the purchasing environment.
• Social Variables. People are influenced by family members, friends, coworkers, and current styles.
Therefore, social variables (such as customer endorsements, word-of-mouth) play an important role in
EC. Of special importance in EC are Internet communities and discussion groups, where people
communicate via chat rooms, electronic bulletin boards, tweeting, and newsgroups. A study (by Liang et
al. 2011–2012) shows that social support in online communities significantly enhances the intention to
purchase online.
• Cultural/Community Variables. The influence of culture on buying behavior varies from country to
country. It makes a big difference in what people buy if a consumer lives near Silicon Valley in California
or in the mountains in Nepal. Chinese shoppers may differ from French shoppers, and rural shoppers
may differ from urban ones. Bashar (2013) conducted a comprehensive study about online shopping for
electronics in Pakistan.
• Other Environmental Variables. These include aspects such as available public information,
government regulations, legal constraints, and situational factors. For example, tax rates (Chapter 15)
may affect online shopping (see Einav et al. 2014).
4. List and describe five major merchant-related variables.
This group of factors includes merchant reputation, size of the transaction, trust in the merchant, and so
on. For example, a customer may feel more secure when making a purchase from Amazon. com (due to
its reputation) than from an unknown seller. Other factors such as marketing strategy and advertising
can also play a major role.
5. Describe the relationships among attitude, intention, and actual behavior in the behavior
process model.
A favorable attitude would lead to a stronger buying intention, which in turn would result in the actual
buying behavior. Previous research has shown that the links between attitude, purchase intention, and
actual purchase behavior are quite strong.
6. Why is loyalty an important part of the purchase decision model?
Loyalty is a very important part of this model because it allows for repeat business which tends
to be both quicker and less expensive for the seller.
CASE 10.1: EC APPLICATION USING AI AT THE NORTH FACE
Questions
1. Why is personalization important for retailers and shoppers?
It allows them to create products that meet their specific needs.
2. How is the North Face using artificial intelligence?
The recommendation system uses artificial intelligence to make more specific and accurate
product presentations to potential customers.
3. Why would this system generate repeat purchases?
Users may feel that they are able to select more appropriate equipment due to the artificial
intelligence recommendations then they could configure themselves.
CASE 10.2: EC APPLICATION
NETFLIX USES TECHICAL AND SOCIAL SYSTEMS SO YOU CAN FIND SOMETHINF TO WATCH
Questions
1. Why does making choices get harder when you have more options?
Selecting from a larger number of options becomes more difficult as many different
characteristics must be evaluated. This may not be something that users want to do when
selecting an entertainment option.
2. Why does Netflix use both a technical and a social approach two recommendations?
This allows users to make selections based on their own personal preferences, or by relying on
preferences from their social group. Having both options available allows users to make
selections based on their own requirements.
3. How do the technical recommendations work?
The system evaluates individual and group ratings and aligns those ratings with similar titles,
recommending titles that are similar with high user ratings.
4. Why is it important for Netflix to be able to make appropriate recommendations for their
users?
The company wants to ensure that users are able to find entertainment that they enjoy. If users
are unable to find enjoyable entertainment, they may discontinue their service.
Section 10.2 Review Questions
1. Define and describe the benefits and costs of personalization.
Personalization refers to the matching of advertising content and vendors’ services with customers
based on their preferences and individual needs. Personalized content on a website was also found to
increase conversion rates.
2. Define cookies and describe their values and drawbacks.
Cookies are small files sent from a website and stored in a designated area in your computer.
Vendors can provide consumers with considerable personalized information if they use cookies that
signal a consumer’s return to a site. Cookies can provide marketers with a wealth of information, which
then can be used to target specific ads to them. Thus, marketers get higher rates of “click-throughs,”
and customers can view information that is relevant to them. Cookies can also prevent repetitive ads
because vendors can arrange for a consumer not to see the same ad twice.
Some people object to cookies because they do not like the idea that “someone” is watching their
activity on the Internet.
3. Define behavioral targeting and find a sample application on the Internet.
Behavioral targeting uses consumer browsing behavior information, and other information about
consumers, to design personalized ads that may influence consumers better than mass advertising does.
Representative vendors of behavioral targeting tools are predictad. com, twcmedia.com/adlink; a
service of Time Warner Cable Media), (boomerang.com, criteo. com, and conversantmedia.com.
4. Define collaborative filtering and find a sample application on the Internet.
A company could predict what products or services are of interest to them without asking or viewing
their previous records.
Amazon’s “Customers who bought this item also bought…” is a typical statement generated by
collaborative filtering, which intends to persuade a consumer to purchase the recommended items by
pointing to preferences of similar consumers.
5. Explain how one-to-one advertising is done using cookies and behavioral targeting.
Marketers can evaluate a user’s past actions based on information store in their web browser
(cookies). This information can then be analyzed, and a picture of the customers interests can
be created, with advertising based on those interests.
Section 10.3 Review Questions
1. Describe the objectives of market research.
Investigation of EC markets can be conducted through conventional methods (e.g., in-person surveys;
focus groups) or it can be done by using the Internet. Internet-based market research is frequently
faster, allowing researchers to reach remote or diverse audiences. In addition, market researchers can
conduct very large studies on the Web at a much lower price than using offline methods.
2. Describe the role of transaction logs and clickstream analysis.
A transaction log can be further analyzed with log file analysis tools (e.g. from Oracle), to get a good idea
about online visitors’ activities such as how often they visit the site.
Note that, as customers move from site to site, they establish their clickstream behavior, a pattern of
their movements on the Internet, which can be seen in their transaction logs (see upcoming discussion
of clickstream analysis).
3. Define cookies, Web bugs, and spyware, and describe how they can be used in online
market research.
Cookies and Web bugs can be used to supplement transaction-log methods. Cookies allow a website to
store data on the user’s personal device. When the customer returns to a site visited before, the website
can find what the customer did in the past from the cookie. Then the customer can be greeted by
his(her)name, or a targeted ad can be sent to her(him).
Web bugs that are tiny (usually invisible) objects concealed in a Web page or in e-mail messages. Web
bugs transmit information about the user and his or her movements to a monitoring site (e.g., to find
out if the user has viewed certain content on the web page).
Spyware is software that enters your computer like a virus does, without your knowledge. It then
enables an outsider to gather information about your browsing habits.
4. Describe how the issue of privacy relates to online market research.
Retailers are using technology to track shoppers’ location and movements in physical stores and malls
by identifying the shoppers’ smartphones (finding the MAC address). This information is used by
advertisers and marketing planners.
5. Describe the limitations of online market research.
One technical problem with online market research is that there may be an abundance of data. To use
data properly, one needs to organize, edit, condense, and summarize them. However, such a task may
be expensive and time-consuming.
Behavioral limitations of online research methods are responding biases, sample representatives that
are hard to control, and the ethics and legality of Web tracking.
6. Describe how biometrics and smartphones can improve market research.
A biometric is one of an individual’s unique physical or behavioral trait that can be used to authenticate
an individual (e.g., more precisely fingerprints; see list in Chapter 10). By applying the technology to
computer users, we can improve security and learn about the user’s profile.
Mobile market research is a method of collecting data though mobile devices including mobile phones,
smartphones, and tablets. Typical methods for collecting information are through Apps, short message
systems (SMS), WAP, mobile Web, and location-based services. A major advantage of mobile market
research is that it can be conducted virtually anywhere at any time.
Section 10.4 Review Questions
1. Define Web advertising and the major terms associated with it.
Advertising is the delivery of ads to Internet users in order to influence people to buy a product or a
service. Traditional advertising (also known as marketing communication) is an impersonal, one-way
mass communication. Telemarketing and direct mail ads attempted to overcome the deficiencies of
mass advertising, but they are expensive and their response rate was not too high.
2. Describe the reasons for the growth in Web advertising.
Since the Internet provides interactivity, online ads are also useful for brand building directly through
response ads.
3. Describe emerging Internet advertising approaches.
Many consumers are spending more time on the Internet (about a 25 % annual growth) and using
mobile devices. Internet advertising is getting more attention. The advertising revenue of Internet
advertising exceeded that of the broadcast TV, cable TV and newspapers in 2013 and we can foresee
this trend continuing. Hence, online advertising is a clear choice for the future.
4. List the major benefits of Web advertising.
• Cost. Online ads usually are cheaper than ads in traditional media.
• Media richness. Web ads can include rich and diversified media (e.g., videos, animation). In addition,
games and entertainment can be combined with ads.
• Easy updating. Updating can be done quickly and inexpensively.
• Personalization. Web ads can be either one-to-one or addressed to population segments.
• Location-based. Using wireless technology and GPS, Web advertising can be location based (see
Chapters 6 and 7).
• Linking to shopping. It is easy to link from an online ad to a vendor’s webstore. Usually, it can be done
in one click.
5. Draw and explain the advertising cycle.
See Figure 9.4. The cyclical process requires a plan to determine the target audience of a campaign and
how to reach that audience. Analyzing a campaign after its completion assists a company in
understanding the campaign’s success or failure. This knowledge is then used for planning future
campaigns.
6. What is the impact of online advertising on newspapers and TV viability?
They concluded that not only is Internet advertising more cost efficient, the business impact of Internet
ads is larger than traditional ads.
The synergy between TV and online advertising can help attract more attention than either medium on
its own. It has been found that a TV campaign increases brand awareness by 27 %, whereas a combined
TV and online campaign increases it by 45 %.
The impact of Internet ads on newspaper viability is devastating. Many newspapers are disappearing,
merging, or losing money. One solution is to increase their digital ads, as th
CASE 10.3: EC APPLICATION
SUPPORTING MARKETING CAMPAIGNS WITH SOFTWARE SYSTEMS
Questions
1. Why would businesses want to use supportive software systems for their online marketing
activities?
These systems allow them to be more productive when working with online marketing.
Additionally, these systems may make data analysis and the creation of usable insights easier.
2. For each of the selected systems, what is the main advantage?
Kenshoo allows you to manage automate and optimize multiple search engine
marketing campaigns.
HootSuite is an integrated package that allows you to manage all of your social media
marketing activities from one central location.
MailChimp is a comprehensive email marketing system that allows users to create
marketing emails using well design templates and special interactive features, send
those messages to defined user groups, and track the results of those messages.
3. For each of the named systems, go online and find an alternative.
Student selections will vary.
Section 10.5 Review Questions
1. Define banner ads and describe their benefits and limitations.
A banner is a display that is used for advertising on a Web page (words, logos, etc. embedded in the
page).
The major benefit of banner ads is that, by clicking on a banner, users are transferred to an advertiser’s
site, frequently directly to the shopping page of that site. Another advantage of using banners is the
ability to customize them for individual surfers or a market segment of surfers.
The major disadvantage of banners is their cost. If a company demands a successful marketing
campaign, it will need to pay high fees for placing banners on websites with high traffic
2. Describe the difference between banner swapping and banner exchanges.
Banner swapping means that company A agrees to display a banner of company B in exchange for
company B’s displaying company A’s banner.
Banner exchanges are marketplaces that allow multiple websites to barter space for banners. Such an
intermediary finds partners for such trades. A multi-company banner match may provide a better match,
and it will be easier to arrange than a two-company swap.
3. Describe the issues surrounding pop-ups and similar ads.
A pop-up ad, also known as ad spawning, appears due to the automatic launching of a new browser
window when a visitor accesses or leaves a website, when a delay occurs. Pop-ups cover the user’s
current screen and may be difficult to close. They can gain a user’s immediate attention, but their use is
controversial. Many users strongly object to this advertising method, which they consider to be
intrusive.
4. Explain how e-mail is used for advertising.
1. Using e-mail advertising means that ads are attached to e-mails.
2. Sending e-mail messages for facilitating vendor-customer relationships (CRM types).
3. Sending e-mail messages for attempting to acquire new customers.
4. Sending messages via microblogs or other social media platforms.
5. Describe the search engine optimization technique and what it is designed for.
Search engine optimization (SEO) is a process that improves the visibility of a company or brands on the
results page displayed by a search engine. Ideally, the results should be in the top five to ten on the first
page. Companies hire search optimizers or try to optimize by themselves. SEO can increase the number
of visitors to a website, and therefore companies are willing to pay for this service.
6. Describe Google’s AdWords and AdSense.
AdWords is an advertising program for sponsored ads. Whenever you use Google to search for
something, you will notice URLs with colored backgrounds, titled “sponsored links” on the right hand
side or on the top of the page. These include Google AdWords participants.
Google’s AdSense is an affiliate program. In other words, website publishers can earn money by
displaying targeted Google ads on their website. In collaboration with Google, participating website
owners (publishers) can add search engines to their own sites. Then, when someone is searching for a
term related to the content of the affiliated websites, she(he) can see the Google ad and, if interested,
will be directed to the advertisers’ text, video, or image ads, which are crafted by Google.
7. Describe video ads and their growing popularity.
Video advertising refers to the insertion of video ads into advertisements or regular online contents.
Video ads are growing rapidly, mainly due to the popularity of YouTube and similar sites. Online video is
growing nearly 40 % annually while TV viewing continues to fall.
Video ads appear all over the Web, both as unsolicited pop-ups, or when you give permission to see a
demo or information about a product.
8. Define advergaming and describe how it works.
Advergaming (in-game advertising) refers to the insertion of advertisement into video games, especially
computer-based ones, to advertise a product or a service. Such games are popular in social networks
and give advertisers a chance to reach millions of game players.
9. Describe augmented reality advertising.
Augmented reality (AR), which was introduced in Chapter 2, can be utilized by advertisers and
marketers, especially in the fashion industry.
Retailers in the clothing, fashion, and jewelry industries are using this technology, because in their
industries, visualization is critical. For example, ClothiaCorp. combines AR and with realtime
merchandise recommendations. It allows shoppers to “try on” clothing and share the ‘how they look’
with family and friends, in real time.
Section 10.6 Review Questions
1. Why is it important for businesses to respond to the growth of mobile devices?
Businesses must respond to the growth of mobile devices with m-commerce because those
devices are used by a larger and larger percentage of the buying population. Businesses must
advertise where customers are located.
2. Define mobile marketing (provide at least three definitions). Why are there several
definitions?
Mobile marketing is frequently defined as the use of mobile devices and wireless infrastructure as a
means of marketing and advertising.
The marketer intends to access potential customers through wireless information channels. The Mobile
Marketing Association (mmaglobal. com) provides definitions of advertising, apps, messaging, m-
commerce and CRM on all mobile devices, including smartphones and tablets.
Mobile marketing takes several forms such as using SMS (e.g., Twitter) as well as games and videos.
3. What drives mobile advertising?
Mobile advertising ranges from simple text messaging to intelligent interactive messaging on mobile
devices. It involves several key players such as the advertisers, mobile ad networks, mobile apps, and
mobile devices.
4. What is the role of SMS in mobile ads?
SMS ads are commercial messages sent in the form of short text messages. They are quite popular and
SMS mobile banner ads are growing rapidly due to the increased popularity of smartphones and 4G
networks.
One advantage of SMS is that users can send them quickly and privately from any place and almost at
anytime.
5. Define mobile interactive advertising.
Mobile interactive advertising refers to the delivery of interactive marketing contents via mobile
devices, mostly tablets and smartphones.
6. Describe the process of mobile advertising.
A company hires a mobile advertiser to create a mobile ad and specifies the promotional criteria. The
mobile ad is then sent to a mobile advertising network. The original network forwards these ads to
multiple mobile networks and keeps track of the distribution and responses to these ads. The ad will
reach the mobile user through proper mobile devices and apps. The user’s response is then transmitted
to the advertiser and the company through mobile networks.
7. What are the benefits of location based ads?
Location based ads have the ability to offer products or services to customers based on their
current location, increasing the chances for purchase.
8. What are the similarities and differences between traditional media and mobile marketing/
ad campaigns?
As with all campaigns, both seek to appeal to a customer’s preferences, some of which can be
determined by location. Mobile marketing can be significantly more targeted due to the
increased amount of personal information available on customer preferences.
9. What are the trends in mobile advertising in the near future?
1. Continued importance of SMS
2. Experimenting with rich media
3. Mobile vs. mobile apps
4. Interest in geolocation (see Chapters. 6 and 7)
5. The growth of mobile video
10. When are mobile apps superior to responsive websites?
In general, mobile apps are superior to responsive websites because they can access a larger
number of features using the smart phones operating system.
Section 10.7 Review Questions
1. Describe permission advertising.
Users register with vendors and agree to accept advertisements
2. Describe video ads and their sudden increase in appearance.
These are ads that show a short video instead of an image or text. They are more feasible
today due to better bandwidth.
3. Discuss the process and value of affiliate marketing.
Affiliate marketing is a type of ‘performance-based-marketing’ used mainly as a revenue source for the
referring organization and as a marketing tool for the sellers. Earlier in this chapter we introduced
Google’s AdSense. This is an example of affiliate marketing. However, the fact that the vendor’s logo is
placed on many other websites is free advertising as well.
4. How does the ads-as-a-commodity strategy work?
People are paid by advertisers (money or discounts) to view ads.
5. Describe other kinds of online advertising methods.
Affiliate marketing is a type of ‘performance-based-marketing’ used mainly as a revenue source for the
referring organization and as a marketing tool for the sellers. Earlier in this chapter we introduced
Google’s AdSense.
In some cases, people are paid by advertisers (money or discounts) to view ads (also called “ads as a
commodity”). This approach is used, for example, at MyPoints.com, ClickRewards. com, Swagbucks.com
(get rewards for watching videos, playing games), CreationsRewards.net, and others.
Selling Space by Pixels The Million Dollar Homepage (milliondollar homepage.com) was created by Alex
Tew, a student in the United Kingdom. The website sold advertising spaces on one page (1 million
pixels), similar to the way classified ads in a newspaper are sold. Once you clicked on a logo, you were
taken to a website.
Personalized Ads. Since the Internet contains too many irrelevant ads, customized ads can help. The
heart of e-marketing is a customer database, which includes registration data and information gleaned
from site visits. Companies use the one-to-one approach to send customized ads to consumers.
Advertising as a Revenue Model. Many of the dot-com failures from 2000 to 2002 were caused by a
revenue model that contained advertising income as the only or the major revenue source.
AdSelector is a format created in 2010, which lets viewers choose their own ads. The AdSelector allows
consumers to select what ads they like to view within the video clips (they are presented with 2 or 3
options).
6. What is localization? What are the major issues in localizing Web pages?
Localization in EC refers to the transformation and adaptation of Web content media products and
advertising materials to fit the Web environment of a certain region or country.
• Many countries do business in English, but the English used may differ in terminology, spelling, and
culture (e.g., United States versus United Kingdom versus Australia).
• Without a proper translation program, accented characters cannot be converted to English and other
languages. Thus, the translation may be inaccurate. If text includes an accented character, the accent
will disappear when converted into English, which may result in an incorrect translation.
• Hard-coded text and fonts cannot be changed, so they will stay in their original format in the
translated material.
• Graphics and icons look different to viewers in different countries. For example, a U.S. mailbox
resembles a European trashcan.
• When translating into Asian languages, and so forth, significant cultural issues must be addressed; for
example, how to address older adults in a culturally correct manner.
• Date formats that are written as mm/dd/ yy (e.g., June 8, 2013) in the United States are written as
dd/mm/yy (e.g., 8 June 2013) in many other countries. Therefore, “6/8” would have two meanings (June
8 or August 6), depending on the location of the writer.
• Consistency in document translation in several different documents can be very difficult to achieve.
7. Describe choose-your-own-ad format.
AdSelector is a format created in 2010, which lets viewers choose their own ads. The AdSelector allows
consumers to select what ads they like to view within the video clips (they are presented with 2 or 3
options).
8. Describe the six-step process life cycle for an advertising plan.
(1) Set up advertising goals: Determining what are the goal of the advertising project. The goal needs to
be specific – is it for gaining brand awareness, traffic to the website, or higher revenue?
(2) Identify target customer: A group of target customers must be determined for the advertising plan.
As we have discussed in this chapter, customer segmetation is useful for reducing costs and increasing
effectiveness. Depending on the nature of the campaign, segmentation may be based on demographics
or other criteria.
(3) Choose media and advertising tools: Once the target customer is chosen, the advertising plan should
select proper media and tools that can access the target customers. For instance, many firms use mobile
social media to enhance their brand awareness in the younger generation in Taiwan.
(4) Develop action and implementation plans: After choosing media and tools, a number of
implementation issues must be planned such as budget, time frame for advertising, advertisement
design (e.g., video), and so on.
(5) Develop performance measurement and monitoring plans: In order to ensure that the money spent
on advertising is not wasted, performance measurement and monitoring plans must be developed
before the plan is put into action. The performance measurement must be clearly defined and
objectively measurable.
(6) Execute plans and evaluate performance: After the advertising plan is approved, attention must be
given to its execution, and finally, its performance must be evaluated to see whether the originally
planned goals are achieved. For preparing a promotion plan see Sauer (2013) and for mobile marketing
see Brocato and Fairbrother (2013).
Discussion Questions
1. How can you describe the buying decision process when the customer is online and looking
for an iPhone? What can a webstore do to attract this customer to purchase from their store?
Customers are working through the traditional buying cycle. The website can provide all
needed information to make a decision. Tracking users based on their place in the buying cycle
can help you target advertising.
2. Discuss the advantages and limitations of three methods of data collection about individual
online consumer behavior.
Student selections will vary.
3. Why is personalization becoming an important element in EC? What techniques can be
used to learn about consumer behavior? How can personalization be used to facilitate
customer service? Give an example.
Personalization is important because it allows more targeted marketing to individuals and a
greater chance of a purchase. Websites can track user actions, and evaluate those actions to
better understand the buyer process. In the same way, this information can be used to
proactively determine is customer service is needed, and on what topic.
4. View the videos “Wherever You Want to Go” (from BMW; youtube.com/playlist?
list=PL53450A123A3ADCE2), “One Million Heineken Hugs” (youtube.com/watch?
v=smO1onPkA3Q), and Burger King’s “Sign and Race” (youtube.com/watch?v=qab5PH43sok)
and also find articles about them. Write a report on what made these videos so successful.
Student responses will vary.
5. Discuss why banners are popular in Internet advertising. What kinds of products may or
may not be suitable for banners?
Banners are an established method to advertise online, and may work best to get a user to a
seller’s website. Banners should be eye-catching and may work best if they are targeted based
on user activities.
6. Discuss the advantages and limitations of registering a company’s URL with various search
engines.
Student responses will vary, but having a website available on a search engine is positive, with
the issue being the amount spent on SEM.
7. Explain why online ad management is critical. What are the major concerns for a company
managing its own online ad program?
The primary issues are cost and effectiveness. Campaigns must be adjusted based on results,
and lack of changes or improper changes can increase costs with no corresponding increase in
effectiveness.
8. Discuss the evolving landscape of mobile advertising. Select a topic and explain its
importance.
Student reports and opinions will vary.
9. Discuss the potential ethical implications of location-based advertising.
Student reports and opinions will vary.
10. Discuss the benefits of video ads in the social networking environment.
Student reports and opinions will vary.
Topics for Class Discussion and Debates
1. Discuss the similarities and differences between data mining, text mining, and Web mining
for online market research. (Hint: To answer this question, you will need to read Online
Tutorial T3.)
Student opinions on debate topics will vary.
2. Some say that people come to social networks to socialize and they will disregard, disable,
or not accept ads. Others say that people do not mind the ads, but they ignore them. Discuss.
Student opinions on debate topics will vary.
3. What strategic implications do you see for companies that use videos, mobile devices, and
social networks as platforms for advertising? Discuss.
Student opinions on debate topics will vary.
4. Debate: Will traditional advertising (TV, newspapers, billboards) disappear in the future?
Student opinions on debate topics will vary.
5. Debate: Netflix.com, Amazon.com, and others view historical purchases as input in their
recommendation systems. Some believe that this is an invasion of privacy.
Student opinions on debate topics will vary.
6. Some people claim that they trust traditional media advertising (e.g., newspaper) over
online ads (e.g., Richter 2014). Others disagree. Debate the issue.
Student opinions on debate topics will vary.
7. Will advertising be more effective as an app or a website in a mobile environment?
Student opinions on debate topics will vary.
Internet Exercises
1. Examine a market research website (e.g., nielsen.com). Discuss what might motivate a
consumer to provide feedback to market research questions used by this company.
Student reports will differ.
2. Enter marketingterms.com and conduct a search by keywords and by category. Look at
their marketing glossary. Check the definitions of any 10 key terms in this chapter.
Student reports will differ.
3. Enter 2020research.com, infosurv.com, and marketingsherpa.com and identify areas about
market research on consumer behavior. Write a summary of your findings.
Student reports will differ.
4. Enter yume.com and find their video ad activities and reports. Write a summary.
Student reports will differ.
5. Enter selfpromotion.com and nielsen-online.com. What Internet traffic management, Web
results, and auditing services are provided? What are the benefits of each service? Compare
the services provided and their costs.
Student reports will differ.
6. Enter adweek.com, wdfm.com, ad-tech.com, adage.com, and other online advertising
websites to find new developments in Internet advertising. Write a report based on your
findings.
Student reports will differ.
7. Enter clickz.com and find its market research topics. Summarize your findings.
Student reports will differ.
8. Enter adobe.com/creativecloud.html. How does this product help with site optimization?
What other services does it provide?
Student reports will differ.
9. What resources do you find to be most useful at targetmarketingmag.com, clickz.com,
admedia.org, marketresearch.com, and wdfm.com? Describe useful information for online
marketing that you have found from these websites.
Student reports will differ.
10. Enter zoomerang.com and learn how it facilitates online surveys. Examine the various
products, including those that supplement the surveys. Write a report.
Student reports will differ.
11. Enter pewinternet.org and pewresearch.org. What research do they conduct that is
relevant to B2C? To B2B? Write a report.
Student reports will differ.
12. Enter whattorent.com and compare its recommendation system with the one Netflix uses.
Write a brief report comparing the two.
Student reports will differ.
13. Enter mailchimp.com and sign-up for a free trial of the system. Write a report.
Student reports will differ.
Team Assignments and Projects
1. Assignment for the Opening Case
Read the opening case and answer the following questions.
a. Why are some items that are difficult to sell online?
b. What is augmented reality?
c. Why is augmented reality a good fit for online furniture sales?
d. How could Ikea enhance their augmented reality app to make it more convenient for
customers?
Team projects will vary.
2. Apple is encroaching onto Google’s turf by buying Quattro Wireless, a mobile advertising
company and by initiating the iAd mobile device platform. Research the reason for Apple’s
venture into the field and the Apple vs. Google battle. Make a presentation to the class.
Team projects will vary.
3. The field of video ads is growing rapidly, with many companies introducing innovative
models and services (e.g., see yume.com). The class examines the major models and services
available, including mobile ads and video clips on Twitter. Write a report.
Team projects will vary.
4. Each team will choose one advertising method and conduct an in-depth investigation of the
major players in that part of the ad industry. For example, direct e-mail is relatively
inexpensive. Visit thedma.org to learn about direct mail. Also visit ezinedirector.com and
similar sites. Each team will prepare and present an argument as to why its method is
superior.
Team projects will vary.
5. In this exercise, each team member will enter pogo.com and a similar site to play games
and win prizes. Relate the games to advertising and marketing. Write a report.
Team projects will vary.
6. Enter www.autonlab.org and download tools for conducting data mining analysis (these
downloads are free). Write a report about the capabilities of the tools.
Team projects will vary.
7. Watch the video “Beginning Analytics: Interpreting and Acting on Your Data” at
youtube.com/watch?v=Hdsb_uH2yPU and answer the following questions:
a. To what metrics does the video refer?
b. How can Google Analytics be used?
c. What can analytics contribute to competitive intelligence?
d. Why is the average time spent on a site so important?
e. What decisions can be supported by analytics?
Team projects will vary.
8. Watch the video “Complete Google AdWords Tutorial 2016” at youtu.be/zhSnj3jR_6c and
answer the following questions:
a. What is required to setup an AdWords account?
b. How is AdWords integrated with your website?
c. How do you bid on keywords?
d. How can you control costs?
e. How can you evaluate your results?
Team projects will vary.
