Course: E-Commerce and E-marketing

Instructor: Wisam Benamer (MSc IT)

Spring 2019/2020

The lecture material sourced from the following references:

• Introduction to Electronic Commerce and Social Commerce,
4th (2017), Efraim Turban, Judy Whiteside, David King, Jon Outland
• Introduction to Electronic Commerce, Prentice-Hall,
2nd (2009), Efraim Turban, David king and Judy Lang
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1. Understand the decision-making process of
consumer purchasing online.
2. Describe how companies are building one-to-one
relationships with customers.
3. Explain how personalization is accomplished online.
4. Describe consumer market research in EC.
5. Describe the objectives of Web advertising and its
characteristics.

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7. Describe the major advertising methods used on the
Web.
8. Understand how advertising is done in social
networks and the Web 2.0 environment.

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• A GENERIC PURCHASING-DECISION MODEL
– Need identification
– Information search
• product brokering
Deciding what product to buy.
• merchant brokering
Deciding from whom (from what merchant) to buy products.
– Evaluation of alternatives
– Purchase decision and delivery
– Postpurchase behavior

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• CUSTOMER DECISION SUPPORT IN WEB
PURCHASING
• PLAYERS IN THE CONSUMER DECISION PROCESS
– Initiator
– Influencer
– Decider
– Buyer
– User
• ONE-TO-ONE MARKETING

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• personalization
The matching of services, products, and
advertising content with individual consumers
and their preferences.
• user profile
The requirements, preferences, behaviors, and
demographic traits of a particular customer.

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• CUSTOMER LOYALTY
– e-loyalty
Customer loyalty to an e-tailer or loyalty programs
delivered online or supported electronically.
• SATISFACTION IN EC
• TRUST IN EC
– trust
The psychological status of willingness to depend
on another person or organization.
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• METHODS FOR CONDUCTING MARKET
RESEARCH ONLINE
– Online Surveys
– Web-Based Surveys
– Online Focus Groups
– Hearing Directly from Customers
– Observing Customers’ Movements Online

• WHAT ARE MARKETERS LOOKING FOR IN EC

MARKET RESEARCH?
– Companies want to know why some customers are online shoppers, and why others are not.

– How can we identify those who are real buyers from those who are just browsing?
– What is the optimal Web page design?

• MARKET SEGMENTATION RESEARCH

– Market segmentation by various characteristics (e.g., age, income, gender)
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• MARKET RESEARCH FOR ONE-TO-ONE
– Direct Solicitation of Information
• Implementing Web-Based Surveys
• Online Focus Groups
• Hearing Directly from Customers
– Data Collection in the Web 2.0 Environment
• Discussion forums, polling, blogging, chatting, live chat,
chatterbots, collective wisdom for intelligence, find
expertise, folksonomy, data in videos, photos, and
other rich media

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– Observing Customers’ Movements Online
• transaction log
A record of user activities at a company’s Web site.
• clickstream behavior
Customer movements on the Internet.

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– Cookies, Web Bugs, and Spyware
• Web bugs
Tiny graphics files embedded in e-mail messages and in
Web sites that transmit information about users and
their movements to a Web server.
• spyware
Software that gathers user information over an Internet
connection without the user’s knowledge.

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• LIMITATIONS OF ONLINE MARKET RESEARCH
AND HOW TO OVERCOME THEM
• BIOMETRIC MARKETING
– biometrics
An individual’s unique physical or behavioral
characteristics that can be used to identify an
individual precisely (e.g. fingerprints).

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• OVERVIEW OF WEB ADVERTISING
– interactive marketing
Online marketing, facilitated by the Internet, by
which marketers and advertisers can interact
directly with customers, and consumers can
interact with advertisers/vendors.

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• SOME BASIC INTERNET ADVERTISING
TERMINOLOGY
– ad views
The number of times users call up a page that has
a banner on it during a specific period; known as
impressions or page views.
– button
A small banner that is linked to a Web site. It can
contain downloadable software.

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– click (click-through or ad click)
A count made each time a visitor clicks on an advertising
banner to access the advertiser’s Web site.
– click-through rate
The percentage of visitors who are exposed to a banner
ad and click on it.
– click-through ratio
The ratio between the number of clicks on a banner ad
and the number of times it is seen by viewers; measures
the success of a banner in attracting visitors to click on
the ad.
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– Advertising Online and Its Advantages
• Cost
• Richness of format
• Personalization
• Timeliness
• Location-basis
• Linking
• Digital branding

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• BANNERS
– banner
On a Web page, a graphic advertising display linked
to the advertiser’s Web page.
– keyword banners
Banner ads that appear when a predetermined word
is queried from a search engine.
– random banners
Banner ads that appear at random, not as the result
of the user’s action.
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– Benefits of Banner Ads
• The major benefit of banner ads is that, by clicking on
them, users are directly transferred to the shopping
page of an advertiser’s site.
• The ability to customize them for individual surfers or a
market segment of surfers.
– Limitations of Banner Ads
• The major disadvantage of banners is their cost
• A limited amount of information can be placed on the
banner

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• pop-up ad
An ad that appears in a separate window before,
after, or during Internet surfing or when reading
e-mail.
• pop-under ad
An ad that appears underneath the current
browser window, so when the user closes the
active window the ad is still on the screen.

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• E-MAIL ADVERTISING
– E-Mail Hoaxes
– Fraud
– E-Mail Advertising Methods and Successes
• CLASSIFIED ADS

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• SEARCH ENGINE ADVERTISEMENT
– URL Listing
– Keyword Advertising
– search engine optimization (SEO)
The craft of increasing site rank on search engines;
the optimizer uses the ranking algorithm of the
search engine (which may be different for different
search engines) and best search phases, and tailors
the ad accordingly.

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• social network advertising
Online advertising that focuses on social
networking sites.
– Types of Social Network Advertising
• Direct advertising that is based on your network of
friends
• Direct advertising placed on your social network site
• Indirect advertising by creating “groups” or “pages”

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• affiliate marketing
A marketing arrangement by which an
organization refers consumers to the selling
company’s Web site.
• ADS AS A COMMODITY (PAYING PEOPLE TO
WATCH ADS)
• SELLING SPACE BY PIXELS

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• PERSONALIZED ADS AND OTHER
PERSONALIZATION
– Webcasting
A free Internet news service that broadcasts
personalized news and information, including
seminars, in categories selected by the user.
• ONLINE EVENTS, PROMOTIONS, AND
ATTRACTIONS
– Live Web Events

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7. Should we integrate our Internet and non-
Internet marketing campaigns?
8. What ethical issues should we consider?
9. Are any metrics available to guide advertisers?
10.Which Internet marketing/advertising channel
should you use?

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