One-to-One Marketing Loyalty, and Trust in EC one-to-one marketing Marketing that treats each customer in a unique way One of the benefits of doing business over the Internet is that it enables companies to better communicate with customers and better understand customers'needs and buying habits Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 6 One-to-One Marketing, Loyalty, and Trust in EC one-to-one marketing Marketing that treats each customer in a unique way • One of the benefits of doing business over the Internet is that it enables companies to better communicate with customers and better understand customers’ needs and buying habits
Exhibit 4.3 The New marketing model Customer Receives marketing Exposure Marketing/Advertising Customer Decides on Chosen to Best Marketing Medium for Serve/Reach Customer Response “ Four Ps” (Product, Place Price, and Customer Customer Makes Promotion Relationships Purchase Decision Updated Uniquely to Customer Customer Profiled Based on behavior Customer Detailed Transaction/ Segmentation Developed Behavior Data collected Database Update Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 7 Exhibit 4.3 The New Marketing Model
One-to-One Marketing Loyalty, and Trust in EC personalization The matching of services, products, and advertising content with individual consumers user profile The requirements preferences, behaviors and demographic traits of a particular customer cookie a data file that is placed on a user's hard drive by a Web server, frequently without disclosure or the user,s consent, that collects information about the users activities at a site Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 8 One-to-One Marketing, Loyalty, and Trust in EC personalization The matching of services, products, and advertising content with individual consumers user profile The requirements, preferences, behaviors, and demographic traits of a particular customer cookie A data file that is placed on a user’s hard drive by a Web server, frequently without disclosure or the user’s consent, that collects information about the user’s activities at a site
One-to-One Marketing Loyalty, and Trust in EC collaborative filtering A personalization method that uses customer data to predict, based on formulas derived from behavioral sciences, what other products or services a customer may enjoy, predictions can be extended to other customers with similar profiles Variations of collaborative filtering Rule-based filtering Content-based filtering Activity-based filtering Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 9 One-to-One Marketing, Loyalty, and Trust in EC collaborative filtering A personalization method that uses customer data to predict, based on formulas derived from behavioral sciences, what other products or services a customer may enjoy; predictions can be extended to other customers with similar profiles • Variations of collaborative filtering – Rule-based filtering – Content-based filtering – Activity-based filtering
One-to-One Marketing Loyalty, and Trust in EC Customer Loyalty Customer loyalty is the degree to which a customer will stay with a specific vendor or brand for repeat purchasing Customer loyalty is expected to produce more sales and increased profits over time e-loyalty Customer loyalty to an e-tailer Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 10 One-to-One Marketing, Loyalty, and Trust in EC • Customer Loyalty – Customer loyalty is the degree to which a customer will stay with a specific vendor or brand for repeat purchasing – Customer loyalty is expected to produce more sales and increased profits over time e-loyalty Customer loyalty to an e-tailer