As America and other countries in the world become more technologically adept, retail shopping has expanded itself into new stores. These stores are open twenty four hours a day, don't require any employees, and come right to the customer's home; they're e-stores, and they're shopping's new best friend. Whenever new technology comes out, people find a way to sell their product using it. With radio there were jingles, with television came infomercials, and now with the internet there is an entire warehouse of products anyone can buy as long as they have a credit card.
Unfortunately, buying things online may be too easy. There are many online privacy concerns, which are fears that consumers have about the information collected online and the ways it may be used, or abused (Hawkins). Identity theft has become more common in the internet age when a person knowledgeable and tricky enough can get someone's credit card number and buy whatever they like. Online stores have no way of checking a person's ID. There are even bots, software robots that do shopping for users (Hawkins), that gather personal information and store it. Those bots can be used for good, to make shopping easier for users, or bad, to store information and release it to people who take advantage of it. The typical online store tries to assure people of its safety measures.
The memory a consumer has of a series of events they participated in is called the schema (Hawkins). The schema may be something as simple as eating when they are hungry, or getting toothpaste when they run out. A product's brand image is the schema as it relates to a particular brand (Hawkins). When the consumer goes to get toothpaste they have a wide selection, and the brand image of one kind may appeal more to the consumer than others because they have gotten it before and enjoyed it. With online stores it's very important that the brand image of their store is positive. While every store wants to have a good brand image, it's particularly simple for a consumer to dislike a web page when it first loads and choose someone else in a single click. Online stores have to be very user friendly and assure consumers of the safety of buying from them.
The store's target market, the section of consumers that sellers focus their efforts on, is chosen by demographics and psychographics. Demographics include a consumer's physical details; their age, gender, income, education, occupation, and geographic location (Hawkins). Online stores may only want to target younger people who are on computers often, which would require them to look at demographics of young adult ages in geographic locations with internet who make enough money to shop at their store. Psychographics look at consumer's lifestyles; their interests, attitudes, values, activities, and usage rates. While the demographics selected a group of people to advertise to, the psychographics could be used to determine what type of advertisement would appeal to their target market. Their target group of consumers may be very active in outdoor sports and not on the internet often. Using the psychographics and demographics, the online store knows it needs to make an ad that is active and sporty and place it on e-mail and news websites, the places that someone not online much goes to check.
Online advertisements, usually banner ads horizontally placed at the top of a web page, have to be very specific to catch a consumer's attention. Many ads try to be flashy and include games and sound. Unfortunately ads that are too over the top tend to annoy people who were just trying to quietly check their email. There may be many ads on one web page, all competing for the consumer's attention at the same time. Ads too plain may get lost in the crowd; specific demographics and psychographics are very important for online ads for this reason. Advertisers may want to use emotional ads, ads designed to produce a positive response rather than to provide information (Hawkins). While these ads may not tell much about the product they are more likely to catch a consumer's attention. The beauty of the internet is that consumers can actually click on the advertisement and be taken to the product's website. The website can provide all the information they need and the advertisement needs only to be used as a way to get consumer's there.
Reviews of products and stores can be found all over the internet. There are many journals on the internet that are called blogs where people can keep a "running dialogue" about anything (Hawkins) and are often used to review products and give opinions. These opinions are held in high regard by frequent internet users, and their rapid pass along of information is called viral marketing (Hawkins). Online retailers can focus their efforts on blogs recommending their store. As users hear about a good store with nice features the word spreads quickly and consumers flock to see what the store has to offer them. The online store itself can also have a blog that can be used to update consumers about products and special promotions, such as a customer loyalty program (Hawkins), which provides incentive for consumers to come back to their store by offering discounts and rewards. The blog helps relate consumers to the company and make the use of the store personal, which is hard to achieve when there is no physical store or real people.
Consumers generally start to shop when they way they feel is not the way they want to feel, and they look to new products or services as an answer. This is called their desired state, the way they want to feel at the present time (Hawkins). People often identify themselves based on what they have. This is called the extended self, "the self plus possessions," (Hawkins). Online stores offer a quick fix for consumers to achieve their desired state and expand their extended self. A busy mother with a sleeping baby is running low on diapers. She can't go to the store and when the baby wakes she'll have other things to do. Her desired state is to get all her errands done and relax. Online retailers are perfect for her because she can go to a website, purchase diapers, and with fast delivery they will be delivered to her doorstep, allowing her to achieve her desired state and relax. Mothers also tend to feel less beautiful after their pregnancy, and she may want to feel pretty again with a new dress. She doesn't have time to shop at the mall, and she has no nice dresses at home. She desires to feel beautiful again and she defines that by owning a beautiful dress. She can achieve her desired state and her extended self's need for a new dress by going to an online department store. As long as she knows her measurements and has a credit card she can easily get the dress of her choice tailor made for her and delivered in a week.
To review, there are many concerns consumers have about buying things online. An online retailer needs to assure consumers of the safety of their store. There is a lot of competition for consumer's attention and ads need to be specific to the target market. They don't need to be particularly informative because they link directly to the store's website, but they store they link to does need to be attractive because online consumer's attention is easily shifted. Blogs have much power over consumer's opinions and can be used for the benefit of the company if they create their own and offer consumer promotions. Online stores are the easiest way for consumers to achieve their desired state. A great online store can function independently from a physical store as long as the online retailer can use the various opportunities the internet presents.
Works Cited
Hawkins, Mothersbaugh, Best. “Consumer Behavior: Building Market Strategy, 10th Edition.” McGraw-Hill Irwin, New York, New York. Copyright, 2007.
Review of definitions used:
Chapter 1, 18. Target market - that segment of the larger market on which we will focus our marketing effort.
Chapter 2, 66. Demographics - they describe a population in terms of its size, structure, and distribution. Size is number of individuals in the society; structure is age, income, education, and occupation; distribution is physical location of individuals in terms of geographic location in rural, suburban, and urban.
Chapter 7, 249. Blogs - personalized journals where people or organizations can keep a running dialogue. Viral marketing - an online "pass it along" strategy.
Chapter 9, 346. Brand image - schematic memory of a brand. Schema, page 325, the memory of a sequence of events in which a person participated.
Chapter 11, 419. Emotional ads - designed primarily to elicit a positive effective response rather than provide information or arguments.
Chapter 12, 442 and 436. Psychographics - quantitative measures of lifestyle; attitudes, values, activities and interests, demographics, media patterns, and usage rates. Extended self - the self plus possessions.
Chapter 14, 514. Desired state - the way an individual wants to feel or be at the present time.
Chapter 15, 542. Bots - software robots that do the shopping/searching for users.
Chapter 17, 603. Online privacy concerns - consumer fears regarding how personal information about them that is gathered online might be used.
Chapter 18, 661. Customer Loyalty Programs - focuses on repeat purchases by providing incentives.
Unfortunately, buying things online may be too easy. There are many online privacy concerns, which are fears that consumers have about the information collected online and the ways it may be used, or abused (Hawkins). Identity theft has become more common in the internet age when a person knowledgeable and tricky enough can get someone's credit card number and buy whatever they like. Online stores have no way of checking a person's ID. There are even bots, software robots that do shopping for users (Hawkins), that gather personal information and store it. Those bots can be used for good, to make shopping easier for users, or bad, to store information and release it to people who take advantage of it. The typical online store tries to assure people of its safety measures.
The memory a consumer has of a series of events they participated in is called the schema (Hawkins). The schema may be something as simple as eating when they are hungry, or getting toothpaste when they run out. A product's brand image is the schema as it relates to a particular brand (Hawkins). When the consumer goes to get toothpaste they have a wide selection, and the brand image of one kind may appeal more to the consumer than others because they have gotten it before and enjoyed it. With online stores it's very important that the brand image of their store is positive. While every store wants to have a good brand image, it's particularly simple for a consumer to dislike a web page when it first loads and choose someone else in a single click. Online stores have to be very user friendly and assure consumers of the safety of buying from them.
The store's target market, the section of consumers that sellers focus their efforts on, is chosen by demographics and psychographics. Demographics include a consumer's physical details; their age, gender, income, education, occupation, and geographic location (Hawkins). Online stores may only want to target younger people who are on computers often, which would require them to look at demographics of young adult ages in geographic locations with internet who make enough money to shop at their store. Psychographics look at consumer's lifestyles; their interests, attitudes, values, activities, and usage rates. While the demographics selected a group of people to advertise to, the psychographics could be used to determine what type of advertisement would appeal to their target market. Their target group of consumers may be very active in outdoor sports and not on the internet often. Using the psychographics and demographics, the online store knows it needs to make an ad that is active and sporty and place it on e-mail and news websites, the places that someone not online much goes to check.
Online advertisements, usually banner ads horizontally placed at the top of a web page, have to be very specific to catch a consumer's attention. Many ads try to be flashy and include games and sound. Unfortunately ads that are too over the top tend to annoy people who were just trying to quietly check their email. There may be many ads on one web page, all competing for the consumer's attention at the same time. Ads too plain may get lost in the crowd; specific demographics and psychographics are very important for online ads for this reason. Advertisers may want to use emotional ads, ads designed to produce a positive response rather than to provide information (Hawkins). While these ads may not tell much about the product they are more likely to catch a consumer's attention. The beauty of the internet is that consumers can actually click on the advertisement and be taken to the product's website. The website can provide all the information they need and the advertisement needs only to be used as a way to get consumer's there.
Reviews of products and stores can be found all over the internet. There are many journals on the internet that are called blogs where people can keep a "running dialogue" about anything (Hawkins) and are often used to review products and give opinions. These opinions are held in high regard by frequent internet users, and their rapid pass along of information is called viral marketing (Hawkins). Online retailers can focus their efforts on blogs recommending their store. As users hear about a good store with nice features the word spreads quickly and consumers flock to see what the store has to offer them. The online store itself can also have a blog that can be used to update consumers about products and special promotions, such as a customer loyalty program (Hawkins), which provides incentive for consumers to come back to their store by offering discounts and rewards. The blog helps relate consumers to the company and make the use of the store personal, which is hard to achieve when there is no physical store or real people.
Consumers generally start to shop when they way they feel is not the way they want to feel, and they look to new products or services as an answer. This is called their desired state, the way they want to feel at the present time (Hawkins). People often identify themselves based on what they have. This is called the extended self, "the self plus possessions," (Hawkins). Online stores offer a quick fix for consumers to achieve their desired state and expand their extended self. A busy mother with a sleeping baby is running low on diapers. She can't go to the store and when the baby wakes she'll have other things to do. Her desired state is to get all her errands done and relax. Online retailers are perfect for her because she can go to a website, purchase diapers, and with fast delivery they will be delivered to her doorstep, allowing her to achieve her desired state and relax. Mothers also tend to feel less beautiful after their pregnancy, and she may want to feel pretty again with a new dress. She doesn't have time to shop at the mall, and she has no nice dresses at home. She desires to feel beautiful again and she defines that by owning a beautiful dress. She can achieve her desired state and her extended self's need for a new dress by going to an online department store. As long as she knows her measurements and has a credit card she can easily get the dress of her choice tailor made for her and delivered in a week.
To review, there are many concerns consumers have about buying things online. An online retailer needs to assure consumers of the safety of their store. There is a lot of competition for consumer's attention and ads need to be specific to the target market. They don't need to be particularly informative because they link directly to the store's website, but they store they link to does need to be attractive because online consumer's attention is easily shifted. Blogs have much power over consumer's opinions and can be used for the benefit of the company if they create their own and offer consumer promotions. Online stores are the easiest way for consumers to achieve their desired state. A great online store can function independently from a physical store as long as the online retailer can use the various opportunities the internet presents.
Works Cited
Hawkins, Mothersbaugh, Best. “Consumer Behavior: Building Market Strategy, 10th Edition.” McGraw-Hill Irwin, New York, New York. Copyright, 2007.
Review of definitions used:
Chapter 1, 18. Target market - that segment of the larger market on which we will focus our marketing effort.
Chapter 2, 66. Demographics - they describe a population in terms of its size, structure, and distribution. Size is number of individuals in the society; structure is age, income, education, and occupation; distribution is physical location of individuals in terms of geographic location in rural, suburban, and urban.
Chapter 7, 249. Blogs - personalized journals where people or organizations can keep a running dialogue. Viral marketing - an online "pass it along" strategy.
Chapter 9, 346. Brand image - schematic memory of a brand. Schema, page 325, the memory of a sequence of events in which a person participated.
Chapter 11, 419. Emotional ads - designed primarily to elicit a positive effective response rather than provide information or arguments.
Chapter 12, 442 and 436. Psychographics - quantitative measures of lifestyle; attitudes, values, activities and interests, demographics, media patterns, and usage rates. Extended self - the self plus possessions.
Chapter 14, 514. Desired state - the way an individual wants to feel or be at the present time.
Chapter 15, 542. Bots - software robots that do the shopping/searching for users.
Chapter 17, 603. Online privacy concerns - consumer fears regarding how personal information about them that is gathered online might be used.
Chapter 18, 661. Customer Loyalty Programs - focuses on repeat purchases by providing incentives.

