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Tuesday, October 5, 2010

consumer behavior,customer service and advertising

Internet Marketing (Electronic Commerce)

Online marketing can serve several purposes:
  • Actual sales of products—e.g., Amazon.com.
  • Promotion/advertising:  Customers can be quite effectively targeted in many situations because of the context that they, themselves, have sought out.  For example, when a consumer searches for a specific term in a search engine, a “banner” or link to a firm selling products in that area can be displayed.  Print and television advertisements can also feature the firm’s web address, thus inexpensively drawing in those who would like additional information.
  • Customer service:  The site may contain information for those who no longer have their manuals handy and, for electronic products, provide updated drivers and software patches.
  • Market research:  Data can be collected relatively inexpensively on the Net.  However, the response rates are likely to be very unrepresentative and recent research shows that it is very difficult to get consumers to read instructions.  This is one of the reasons why the quality of data collected online is often suspect.

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