Wednesday, November 3, 2010

Chapter 6

Chapter 6
1.    Other than search engines, what are some of the most popular uses of the Internet?
       37% of comsumers use search engine, 33% go directly to the company Web site, comparison shopping sites 17% and product rating sites 15%.
2.    Would you say that the Internet fosters or impedes social activity? Explain your position.
      We can use the internet to talk to the person from the other side of the world, video chatting, shopping and a lot other thing can be finished online so that i think the internet helps social activity.
3.    Why would the amount of experience someone has using the Internet likely increase future Internet usage?
       The amount of experience someone has using the internet likely increase future internet usage because the internet is always changing and if someone who does not use internet often will have hard time to keep up with the everyday changing on the internet.
4.    Research has shown that many consumers use the Internet to investigate purchases before actually buying, which is often done in a physical storefront. What implication does this have for online merchants? What can they do to entice more online buying, rather than pure research?Name four improvements Web merchants could make to encourage more browsers to become buyers.
     The many consumer use the internet to investigate purchases before actually buying because they go to the different sites and different online stores to compare the product's price, quality, shipping cost and etc... Four improvements Web merchants could make to encourage more browsers to become buyers are online news, health informations, hobby related informations and financial informations.  
5.    Name the five stages in the buyer decision process, and briefly describe the online and offline marketing activities used to influence each.
       The five stages in the buyer decision process are Awareness need recigniton, search, evaluation of alternatives, purchase and post-purchase behavior loyalty. Offline awareness need recognition are Mass media, TV, radio, print media. Online awareness need recognition are targeted banner, ads, interstitials, targeted event promotions. Offline Search are Catalogs, print ads, mass media, salespeople, product raters, store visits. Online search are Search engines, online catalogs, site visits, targeted e-mail. Offline Evaluation of alternatives are Reference groups, opinions leaders, mass media, product raters, store visits. Online evaluation of alternatives are Search engines, online catalogs, site visits, product reviews ans user evaluatioins. Offline Purchases are promotions, direct mail, mass media, print media. Online purchase are online promotions, lotteries, discounts and targeted email. Offline post-purchase behavior loyalty are warranties, service calls, parts and repair, consumer groups. Online post-purchase behavior loyalty are Communities of consumption, newsletters, customer e-mail, online updates.
6.    What are the components of the core product, actual product, and augmented product in a feature set?
     The components of the core product are the core benefit the coustomer receives from the product. Actual product are the set of characteristics designed to deliver the product's core benefits. Augmented product are a product with additional benefits to customers beyond the core benefits embodied in the actual product.
7.    Name some of the drawbacks to the four data mining techniques used in Internet marketing.
       There are many drawbacks to all these techniques, not least of which is that there may be millions of rules, many of them nonsensical, and many others of short-term duration. the rules need extensive validation and culling. Also, there can be millions of affinity groups and other patterns in the data that are temporal and meaningless. The difficulty is isolating the valid, powerful patterns in the data and then acting on the ovserved pattern fast enough to make a sale you would otherwise not have made.
8.    Which of the four market entry strategies is most lucrative?
       The most common strategy existing firms is ti extend their businesses and brands by using a mixed bricks-and-clicks strategy in which online marketing is closely integrated with offline physical stores.
9.    Compare and contrast the four marketing strategies used in mass marketing, direct marketing, micromarketing, and one-to-one marketing.
      One-to-one marketing is the ultimate form of market segmentation, targeting, and positioning-where the segments are individuals. Mass marketing based on national media messages aimed at a single national audience and with a single national price, is appropiate for products that are relatively simple and attractive to all customers in a single form. Direct marketing is based on direct mail or phone messages and ained at segments of the market likely to purchase and which has little variation in price. Micromarketing is aimed at geographical units or specialized market segments is the firm form of true database marketing.
10.  What are some of the reasons that freebies, such as free Internet service and giveaways, don’t work to generate sales on a Web site?
     The reasons that freebies and giveaways are knocking out competitors, taking consumer's attentions, advertising but most of the freebies are basic stuff and if you willing to upgrade to better quality on you would have to pay. For example, the free movie sites offering the HD version for $10 per month.
11.    Why do companies that bundle products and services have an advantage over those that don’t or can’t offer this option?
    Bundling offers consumers two or more goods for one price. The key idea behind the concept of bundling is that although consumers typically have very diverse ideas about the value of a single product, they tend to agree much more on the value of the bundle if products offered at a fixed price.

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