Turban 2008

Instructors Manual
Chapter 4 Consumer Behavior, Market Research, and Advertisement
Learning Objectives
Upon completion o this chapter, !ou "ill be able to#
1. Describe the factors that influence consumer behavior online.
2. Understand the decision-makin !rocess of consumer !urchasin online.
". Describe ho# com!anies are buildin one-to-one relationshi!s #ith customers.
$. %&!lain ho# !ersonali'ation is accom!lished online.
(. Discuss the issues of e-lo)alt) and e-trust in %*.
+. Describe consumer market research in %*.
,. Describe Internet marketin in -2-. includin orani'ational bu)er behavior.
8. Describe the ob/ectives of 0eb advertisin and its characteristics.
1. Describe the ma/or advertisin methods used on the 0eb.
10. Describe various online advertisin strateies and t)!es of !romotions.
11. Describe !ermission marketin. ad manaement. locali'ation. and other advertisin-related
issues.
12. Understand the role of intellient aents in consumer issues and advertisin a!!lications.
Content
2etfli& Increases 3ales Usin D4D 5ecommendations and 6dvertisements
$.1 7earnin about *onsumer -ehavior 8nline
$.2 The *onsumer Decision-Makin 9rocess
$." Mass Marketin. Market 3ementation. and 8ne-to-8ne Marketin
$.$ 9ersonali'ation. 7o)alt). 3atisfaction and Trust in %*
$.( Market 5esearch for %*
$.+ Internet Marketin in -2-
$., 0eb 6dvertisin
$.8 8nline 6dvertisin Methods
$.1 6dvertisin 3trateies and 9romotions 8nline
$.10 3!ecial 6dvertisin To!ics
$.11 3oft#are 6ents in Marketin and 6dvertisin 6!!lications
Manaerial Issues
5eal-0orld *ase: 1-800-;780%53.*8M Uses Data Minin to ;oster 5elationshi!
Manaement
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Ans"ers to $ause%Break &ection Revie" 'uestions
4() &ection Revie" 'uestions
1. Describe the major components and structure of the consumer online purchasing behavior
model.
The %* consumer behavior model is based in the follo#in characteristics: !ersonal
characteristics. environmental characteristics. stimuli. the s)stems used b) the vendor and the
bu)er<s decisions.
2. List some major personal characteristics that influence consumer behavior.
There are a number of !ersonal characteristics that affect bu)in behavior. 3ome of these
characteristics include ae. ender. ethnicit). education. lifest)le. !s)cholo). kno#lede. values
and !ersonalit).
3. List the major environmental variables of the purchasing environment.
The variables of the !urchasin environment include social variables. cultural=communit)
variables and other variables.
4. List and describe the major vendor-controlled variables.
9ricin > the !rice of a ood or service
6dvertisin=!romotions=brandin - the marketin surroundin a ood or service
9h)sical environment > the store or sales environment of a ood or service
7oistics=technical su!!ort > su!!ort for a ood or service
*ustomer service - su!!ort for the !urchaser of a ood or service
5. Define the process model of consumer behavior online.
This is a model that describes the ste!s of customers !urchase !rocess.
4(* &ection Revie" 'uestion
1. List the roles people play in purchasing.
*onsumers can !la) one or several of the follo#in roles in the consumer decision-makin
!rocess: initiator. influencer. decider. bu)er and user.
2. List the five stages in the generic purchasing-decision model.
The five staes in the eneric !urchasin-decision model are: need identification? information
search? evaluation of alternatives? !urchase and deliver)? and after-!urchase evaluation.
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3. Describe the eb-based purchasing-decision model.
This model is used to sho# that each of the five staes in the eneric !urchasin-decision model
can be su!!orted throuh the Internet. It is called the *onsumer Decision 3u!!ort 3)stem
@*D33A.
4. Describe the architecture of the online buyer decision support model.
This model is divided into three !arts. The first !art e&amines the three staes of bu)er
behavior: identif) and mane bu)in criteria? search for !roducts and merchants? and com!are
alternatives. The second !art e&amines !rice. shi!!in. and finance? #hile the third !art
e&amines !ersonali'ation. !references and customer hel!.
4(+ &ection Revie" 'uestions
1. Define mass mar!eting.
Mass marketin directs advertisements to a lare. undifferentiated rou! of !otential customers.
2. Define mar!et segmentation.
Market sementation is the dividin of !otential customers b) t)!e. The oal is to create a
subrou! that is more likel) to be interested in the !roduct than the #hole.
3. Define one-to-one mar!eting.
8ne-to-one marketin uses s!ecial marketin techniBues that treat each customer in a uniBue
#a). Internet technoloies reatl) facilitate the ease of one-to-one marketin.
4. Describe the mar!eting relationship process.
This is the !rocess of atherin relevant information about a !otential customer to more
effectivel) customi'e marketin to meet !articular needs.
4(4 &ection Revie" 'uestions
1. "#plain ho$ personali%ation &matching people $ith goods'services( is done.
9ersonali'ation of oods and services for uniBue individuals reBuires information from the
individual and the abilit) to match that information to a!!ro!riate !roducts. There are several
different #a)s to obtain information from individuals. These methods include solicitin the
information from the individual directl). usin cookies or other methods to observe online
behavior. !erformin market research or e&tra!olatin from !revious !urchasin !atterns. 8nce
a firm has information about an individuals !references. the) can then use a soft#are s)stem to
match those !references to available !roducts and services.
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2. Define loyalty and describe e-loyalty.
*ustomer lo)alt) is the deree to #hich a consumer #ill sta) #ith a s!ecific vendor or brand.
%-lo)alt) is a measure of a customer<s commitment to an online retailer.
3. Describe the issue of trust in ") and ho$ to increase it.
Trust is ver) im!ortant in %* because of the lack of direct human interaction bet#een the
customer and the merchant. Merchants are able to increase the amount of trust their customers
have throuh brand reconition. securit) mechanisms and business trans!arenc).
4. hat influences customer satisfaction online* hy do companies need to monitor it*
Man) thins influence online customer satisfaction includin customer service. This is
im!ortant to monitor as decreased satisfaction could lead to decreased sales.
5. +o$ can trust be increased in ")*
Trust can be increased b) the endorsement of a third !art) or bu) establishin a histor) of
trust#orthiness.
4(, &ection Revie" 'uestion
1. Describe the objectives of mar!et research.
The ob/ective of market research is to find information that describes the relationshi!s bet#een
customers. !roducts. marketin methods and marketers. Market research assists a firm in both
their marketin and !roduct mi& decisions.
2. Define and describe segmentation.
Market sementation is the !rocess of dividin a customer market into loical rou!s for
conductin market research. advertisin. and sales. Markets are semented so that the) can be
more easil) manaed and so marketin strateies can be a!!lied to s!ecific subsets of the
!o!ulation.
3. Describe ho$ mar!et research is done online and the major mar!et research methods.
8nline market research is ver) similar to the research that #ould be done off-line. 8nline
marketin research is conducted online. and the Internet can make the !rocess Buicker and
easier. 5esearchers o throuh the same ste!s online in determinin #hat needs to be
researched and validatin results. 5esearchers can ain access to a lare variet) of secondar)
research available online. The ma/or methods include 0eb surve)s. focus rou!s. direct
feedback. customer scenarios. customer trackin. and anal)sis of clickstream data.
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4. Describe the role of eb logs and clic!stream data.
These methods can be used to track a users movements throuh the 0eb. This data can hel!
marketers to understand usae !atterns to im!rove 0eb sites or taret advertisin.
5. Describe ho$ biometrics and cell phones can improve mar!et research and advertising.
These methods allo# better trackin and data collection from distinct individuals as o!!osed to
com!uter #hich ma) be used b) multi!le users.
,. -elate coo!ies. eb bugs. and spy$are to mar!et research.
These are all methods that can be used to track customer movements. This information can be
hel!ful in several areas of marketin. but can have ethical considerations.
/. Describe the limitations of online mar!et research.
The ma/or limitation of online market research is the sam!le and characteristics of 0eb users.
These 0eb users ma) not t)!if) the !o!ulation at lare. so marketers must ensure that the) are
a#are of the demora!hics of those the) are researchin.
4(- &ection Revie" 'uestions
1. Distinguish bet$een organi%ational buyers and individual consumers.
8rani'ational bu)ers are !uchasin for their orani'ation #hile individual customers are
!urchasin for their o#n use.
2. Describe 020 mar!eting and advertising methods.
B2B uses a variet) of marketin methods online and off-line. 8nline the) ma) use director)
services or tr) to taret s!ecific customers. 8ff-line the) ma) make sales calls or attend events.
3. "#plain ho$ affiliate programs and data mining $or! in 020.
6ffiliate marketin uses another merchant to assist in !romotin or sellin oods for a
commission. Data minin is the use of a variet) of data sources to better understand customer
behavior and !references.
&ection 4(. Revie" 'uestions
1. Define eb advertising and the major terms associated $ith it.
0eb advertisin is the use of the 0orld 0ide 0eb to advertise to customers. 3ome im!ortant terms
in Internet advertisin include: ad vie#s @the number of times users call-u! the !ae that has a
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banner on itA. button @a small banner link to a 0eb siteA. !ae @an CTM7 documentA. click @a tall)
of each time a visitor clicks on an advertisin bannerA. *9M @the cost !er thousand im!ressionsA.
hit @a reBuest for data from a 0eb !ae or fileA. and visit @a series of reBuests durin one naviation
of the 0eb siteA.
2. Describe the reasons for the gro$th in eb advertising.
6dvertisers are lookin to the 0eb because it is a viable advertisin medium. Individuals ma) be
movin a#a) from other advertisin mediums and to the Internet. 6dditionall). the demora!hics
of individuals #ho use the Internet are enerall) more affluent then the !o!ulation as a #hole.
makin an attractive !o!ulation to advertise to. 0eb ads also have the benefit of lo#er cost.
increased richness of format and the abilit) to !ersonali'e.
3. List the major characteristics of eb advertising.
0eb advertisin can be characteri'ed b) its use of Internet technoloies to advertise to rou!s.
0eb advertisin can be more com!le& and !ersonali'ed then off-line advertisin.
4. "#plain the role of ad net$or!s in eb advertising.
6dvertisin net#orks are s!eciali'ed firms that offer customi'ed 0eb advertisin. such as
brokerin ads and taretin ads to select rou!s of consumers.
&ection 4(/ Revie" 'uestions
1. Define banner ads and describe their benefits and limitations.
-anner ads are ra!hic advertisements dis!la)ed on 0eb !aes that link to the advertisers 0eb
site. -anner ads are limited b) their cost. s!ace for information and customer indifference.
2. Describe banner s$apping and banner e#changes.
-anner s#a!!in is an areement bet#een t#o com!anies to dis!la) the others banner ad on its
0eb site. -anner e&chanes are markets in #hich com!anies can trade or e&chane !lacement of
banner ads on each other<s 0eb sites.
3. Describe the issues surrounding pop ups and similar ads.
These ads can be hihl) effective for advertisers. but man) users consider them anno)in and
intrusive.
4. "#plain ho$ e-mail is used for advertising.
It is !ossible for advertisers to send out lare volumes of advertisements contained inside e-mail
messaes. This is an effective method of advertisin to lare rou!s. If the advertiser sends a lare
number of unreBuested e-mail solicitations. it is considered s!ammin. #hich is considered b)
some to be illeal=rude.
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5. Describe advertising via classified ads.
These ads use a consistent and familiar format that can be used in several locations.
,. Discuss advertising via 1-Ls and in chat rooms.
U57s are an e&cellent method of advertisin b) !rovidin an easil) remembered DhomeE for a
merchant. *hat room advertisin can be beneficial if a merchant is su!!ortin or s!onsorin a
room. 6dvertisin or !romotin in a room #ithout !ermission can be considered s!ammin.
/. Discuss advertising in blogs and social net$or!s.
This advertisin method !laces ads in blos and other social net#orkin sites based on the t)!e and
volume of traffic the) enerate.
2. Describe the search engine ad strategy.
This s)stem !laces ads in search enine results. The ads attem!t to relate to the users search.
3. Describe 4oogle5s 6dord and 6d7ense.
Fooles 6d0ords s)stem !laces ads #ith similar to!ics in users search results. 6d3ense is an
affiliate !roram that d)namicall) !laces ads on a #ebsite based on the sites content.
18. Define advergaming and describe ho$ it $or!s.
6dveramin is the !lacin of advertisements in ames. The ames are !rovided for free. but the
user must #atch the !laced ads.
&ection 4(/ Revie" 'uestions
1. Discuss the process and value of affiliate mar!eting.
6ffiliate marketin uses another entit) to advertise and sell !roducts or services for a commission.
The s)stem is most effective in eneratin a user base for a ne# site.
2. +o$ does the ads-as-a-commodity strategy $or!*
0ith this advertisin a!!roach. customers are !aid to read ads b) the advertisers.
3. Describe viral mar!eting.
4iral marketin is #ord-of-mouth marketin b) #hich consumers !romote a !roduct or service b)
tellin others about it.
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4. +o$ are ads customi%ed*
6dvertisements are customi'ed b) com!arin users !references to available !roducts or services.
9roducts or services that fit a users !reference are then used as the ad is dis!la)ed=sent.
5. List some typical 9nternet promotions.
There is a lare variet) of Internet !romotion ideas. 3ome of the most !o!ular Internet !romotions
are ive-a#a)s and discounts.
,. Define admediaries and describe their roles.
6dmediaries are third-!art) vendors that conduct !romotions. es!eciall) lare scale ones.
&ection 4()0 Revie" 'uestions
1. Describe permission advertising.
9ermission advertisin is a strate) in #hich customers aree to acce!t advertisin materials.
2. hat is locali%ation* hat are the major issues in locali%ing eb pages*
7ocali'ation is the !rocess of convertin media !roducts develo!ed in one countr) to a form
culturall) and linuisticall) acce!table in countries outside of the oriinal taret market. The ma/or
issue #ith locali'ation is the abilit) to !erform it correctl).
3. +o$ is $ireless advertising practiced*
0ireless advertisin uses m-commerce and l-commerce technoloies to advertise to !eo!le usin
mobile devices.
4. hat is the importance of ad content*
6d content can have a lare effect on customers res!onse and their interest in #hatever is bein
advertised.
&ection 4()) Revie" 'uestions
1. List the major types of soft$are &intelligent( agents used in customer-related and
advertising applications.
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There are several t)!es of intellient aents that are used includin aents that su!!ort need
identification. !roduct brokerin. merchant brokerin and com!arison. bu)er-seller neotiation.
!urchase and deliver). and after-sale service and evaluation.
2. hat role do soft$are agents play in need identification*
3oft#are aents can be used to hel! customers reconi'e their need for a !roduct b) !rovidin
!roduct stimuli and information.
3. +o$ do soft$are agents support product bro!ering and merchant bro!ering*
6ents can su!!ort !roduct brokerin b) identif)in s!ecific !roducts that #ill meet a customers
defined need. In the same #a). aents can be used to identif) different merchants that can su!!l)
the s!ecific !roducts.
4. hat are avatars and chatterbots* hy are they used on eb sites*
6n avatar is a com!uter-animated character that e&hibits human-like movements and behaviors. 6
chatterbot is a talkin animated character. These aents are used on 0eb sites to !rovide a friendl)
interface and communication method #ith the merchant.
1C Application Cases
1C Application Case 4()# 2nternet Market Research 13pedites 4ime54o5Market at $roctor
6 7amble
1. +o$ did :;4 reduce time-to-mar!et*
The com!an) used its 0eb site to sell ne# !roducts to select rou!s and athered their feedback.
2. hat $as data mining used for*
Data minin #as used to determine the !rofiles of visitors to the #ebsite.
3. hat research methods $ere used*
9GF used data minin. online Buestionnaires and o!inion !olls.
1C Application Case 4(*# 8ujitsu Agents or 4argeted Advertising in 9apan
1. hy $ould customers agree to have a personal profile built on them*
*ustomers are !aid for their !artici!ation in this advertisin model.
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2. hat is the role of the soft$are agent in this case*
The soft#are aent in this case matches merchants and !roducts to individual customers.
:iscussion 'uestions
1. hat $ould you tell an e#ecutive officer of the ban! about the critical success factors for
increasing loyalty of ban!ing customers by using the 9nternet*
*ustomer lo)alt) is oin to be increased throuh !ositive customer service. 6 bank can
!rovide !ositive customer service b) !rovidin additional services to the user throuh the use of
the Internet. This can include such thins as online bankin and online bill !a)in.
2. hy is data mining becoming an important element in ")* +o$ is it used to learn about
customer behavior* +o$ can it be used to facilitate customer service*
Data minin is becomin an im!ortant !art of %* because it allo#s merchants and others to
access information about individual users and then !ersonali'e advertisin and marketin
to#ards them. Data minin allo#s a firm to e&amine customer information and to areate
that information into a !rofile of that consumers behavior. 3ince data minin can be used to
create !ersonali'ation for users. it is often used in customer service to customi'e the users
e&!erience.
3. "#plain $hy online trust is more difficult to achieve than off-line trust.
3tudent ans#ers #ill var). but #ill be focused around the difficult) in creatin a ra!!ort #ith
customers #ithout bein toether in the same !h)sical location.
4. Discuss the similarities and differences bet$een data mining and eb mining. &+int< =o
ans$er this >uestion. you5ll need to read 6ppendi# 46.(
The difference is centered around the location of the data and its a!!lication. Data minin uses
a hue variet) of datasets as the basis for anal)sis #hile 0eb minin concentrates on
information obtained for 0eb sites and customers interactions #ith them.
5. +o$ can research on satisfaction and dissatisfaction help online sellers*
It can !rovide them valuable information on #hat customers value most. The) can then
concentrate on fulfillin those needs.
,. Discuss $hy 02) mar!eting and advertising methods may not fit 020.
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3tudent ans#ers #ill var). -2* methods are meant to taret a lare market of individual
consumers. -2- methods enerall) taret a smaller rou! of customers !urchasin a lare
amount for their firm.
/. -elate banner s$apping $ith a banner e#change.
0ith banner s#a!!in there is enerall) an arranement bet#een t#o firms for the reci!rocal
dis!la) of banners. 0ith a banner e&chane. a third-!art) firm acts as a broker for banner
s#a!!in for a lare number of firms and 0eb sites.
2. Discuss $hy banners are popular in 9nternet advertising.
-anners are !o!ular in Internet advertisin because the) !rovide several advantaes to
advertisers. -anner ads are clearl) dis!la)ed on 0eb sites and are seen often b) Internet users.
6dditionall). banner ads !rovide a richness of media that is not available off-line.
3. "#plain ho$ 4oogle generates ads for its customers.
Foole enerates ads for customers based on #hat the) are searchin for. The com!an) uses
com!le& !rorams to match ads to the users search Bueries.
18. Discuss the relationship bet$een mar!et research and advertisement &see 6tlas D?=.
atlasdmt.com. for a start(.
3tudent ans#ers #ill var). Market research should hel! determine ho# to advertise. 6dvertisin
results can also be used to infer information about a !articular market.
11. Discuss the advantages and limitations of listing a company5s 1-L $ith various search
engines.
7istin a U57 #ith various search enines is an im!ortant !art of 0eb advertisin because it
allo#s the firm<s site to be found throuh a 0eb-based search. Co#ever. the lare number of
current 0eb sites makes searchin more difficult.
12. +o$ might a chat room be used for advertising*
It is !ossible that marketers ma) send advertisements to a chat room or !artici!ate in the chat
room #ith the intention of marketin the !roducts to the members of a rou!.
13. 9s it ethical for a vendor to enter a chat room operated by a competitor and pose >ueries*
3tudent ans#ers on this Bualitative Buestion #ill var). 3ome students #ill arue that it is
unethical because an assumed name is bein used. 3ome students #ill arue that it is ethical
because the information reBuested is !ublicl) available.
14. "#plain $hy online ad management is critical.
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-ecause !lacement of the ad and the ad itself are often ver) fle&ible. it is im!ortant to monitor an
ads success and ad/ust the ad to o!timi'e its use.
15. "#amine some eb avatars and try to interact $ith them. Discuss the potential benefits and
dra$bac!s of using avatars as an advertising media.
3tudent res!onses #ill var). 3ome avatars #ork #ell #hile others dont. The debate ma) focus
around their usefulness iven the !resent state of their develo!ment.
1,. "#plain the advantages of using chatterbots. 6re there any disadvantages*
*hatterbots can hel! !rovide !ersonali'ation and uide users. The) could !otentiall) be
anno)in to users as #ell.
1/. Discuss the benefits of using soft$are agents in mar!eting and advertising.
3tudent ans#ers #ill var).
12. +o$ can avatars increase trust*
6vatars can increase trust because the) better re!resent a human element for interaction #ith a
site.
13. "nter sric-bi.com'@6L7. @ie$ their activities and discuss ho$ they can facilitate online
mar!et segmentation.
3tudent ans#ers #ill var). The 4673 s)stem uses !ersonalit) traits to sement markets.
28. hen you buy a banner ad. you actually lease space for a specific time period. 9n
milliondollarhomepage.com you buy the space forever. )ompare and discuss.
3tudent ans#ers #ill var). The risk is on the continued relevance and value of the eternal ad
versus the cost of more s!ecific !lacements.
2nternet 13ercises
;<ote# URLs ma! change over time= please check the 2nternet 13ercises on the 4urban
>eb site or possible updates# """(prenhall(com%turban(?
1. "nter netfli#.com'6ffiliates*hnjrA3. Describe the value of the program as a mar!eting
channel.
3tudent o!inions on the !roram #ill var).
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2. 7urf the +ome Depot eb site &homedepot.com( and chec! $hether &and ho$( the
company provides service to customers $ith different s!ill levels. :articularly. chec! the
B!itchen and bath design centerC and other self-configuration assistance. -elate this to
mar!et research.
Come De!ot !rovides a variet) of services for different t)!es of customers. ;or home users.
the) !rovide an arra) of services includin information on !roducts and !ro/ects that a
homeo#ner ma) #ant to com!lete. ;or contractors the) !rovide a different set of services
includin commercial credit and links to contractor s!ecific information.
". "#amine a mar!et research eb site &such as acnielsen.com or claritas.com(. Discuss
$hat might motivate a consumer to provide ans$ers to mar!et research >uestions.
0hile there is no direct confirmation on the 2ielsen 0eb site. for the vast ma/orit) of consumers
the benefits to !rovidin customer information to third-!art) marketin and advertisin aencies
is the !romise of com!ensation. This com!ensation can take man) forms. but is usuall) some
sort of !a)ment in oods or services.
$. "nter mysimon.com and share your e#periences about ho$ the information you provide
might be used by the company for mar!eting in a specific industry &e.g.. the clothing
mar!etA.
The information !rovided on this site #ould hel! an) !articular industr) because it !rovides
s!ecific information about a customers likes and dislikes. In that #a) it #ould hel! a com!an)
#ith market research b) indicatin #hich items are souht out b) customers. 6dditionall). the
information could be used to hel! create a s!ecific dossier on individual customers.
5. "nter marketingterms.com and conduct a search by !ey $ords as $ell as by category.
)hec! the definitions of 18 !ey terms in this chapter.
3tudent ans#ers #ill var).
,. "nter 2828research.com. infosurv.com and mar!etingsherpa.com. and identify areas for
mar!et research about customers.
3tudent ans#ers #ill var). 6ll sites !rovide a #ide arra) of information that has been=can be
ca!tured about customers. The !articular information chosen #ould be a function of the
!roduct=service t)!e.
,. "nter nielsenmedia.com and vie$ the demos on e-mar!et research. =hen go to clickz.com
and find their offerings. 7ummari%e your findings.
3tudent ans#ers #ill var).
2. "nter selfpromotion.com and find some interesting promotion ideas for the eb.
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3tudent res!onses #ill var).
3. "nter the eb sites of ipro.com and selfpromotion.com. hat 9nternet traffic management.
eb results. and auditing services are provided* hat are the benefits of each service*
Dind at least one competitor in each category &e.g.. netratings.comE observe the FdemoF(.
)ompare the services provided and the prices.
-oth com!anies !rovide a com!rehensive suite of 0eb site traffic re!orts and hih ca!abilities.
6dditionall). their a!!lications allo# for 0eb minin to create user subsets for advertisers. -oth
firms have a com!lete set of !roducts that a!!ear some#hat similar. 2either firm lists !roduct
!ricin. 3tudent re!orts #ill var).
18. "nter hotwired.com and espn.com. 9dentify all of the advertising methods used on each
site. )an you find those that are targeted advertisements* hat revenue sources can you
find on the "7:G site* &=ry to find at least seven.(
3tudent re!orts #ill var).
11. )ompare the advertisements and promotions at thestreet.com and marketwatch.com. rite
a report.
3tudent re!orts #ill var).
12. "nter adweek.com. newroads.com. wdfm.com. ad-tech.com. iab.com. and adage.com and
find ne$ developments in 9nternet advertisement. rite a report based on your findings.
3tudent re!orts #ill var).
13. "nter clairol.com to determine your best hair color. Hou can upload your o$n photo to the
studio and see ho$ different shades loo! on you. Hou can try different hairstyles. 9t is also
for men. +o$ can these activities increase branding* +o$ can they increase sales*
3tudent re!orts #ill var).
14. "nter paf.bcentral.com &part of ?icrosoft5s Bb)entralC( and as! the :osition 6gent to ran!
your eb site or a site $ith $hich you are familiar. 6ssess the benefits versus the costs.
3tudent re!orts #ill var).
15. hat resources do you find to be most useful at targetonline.com. clickz.com. admedia.org.
i-m.com. and wdfm.com*
3tudent re!orts #ill var).
1,. "nter doubleclick.com and e#amine all of the company5s products. :repare a report.
9ae 1$
*ha!ter $
3tudent re!orts #ill var).
1/. "nter sitepal.com and chec! out each of the chatterbots listed under Breasons for using
7ite:al.C 9n your opinion. $hich of these bots best accomplished the goal of the site* hy*
3tudent re!orts #ill var).
12. "nter %oom$erang.com and learn ho$ it facilitates online surveys. "#amine the various
product. including those that supplement the surveys. rite a report.
3tudent re!orts #ill var).
13. "nter pe$internet.org and pe$reasearch.org. hat research do they conduct that is
relevant to 02)* =o 020* rite a report.
3tudent re!orts #ill var).
28. "nter loomia.com. Describe their recommendation engines.
3tudent re!orts #ill var).
4eam Assignments and Role $la!ing
1. "nter harrisinteractive.com. infosurv.com and similar sites. +ave each team member
e#amine the free mar!eting tools and related tutorials and demos. "ach team $ill try to find
a similar site and compare the t$o. rite a report discussing the team5s findings.
3tudent re!orts #ill var) based on the tools chosen.
2. "ach team $ill choose one advertising method and conduct an in-depth investigation of the
major players in that part of the ad industry. Dor e#ample. direct e-mail is relatively
ine#pensive. @isit the-dma.org to learn about direct mail. =hen visit bulletmail.com.
ezinemanager.com. permissiondirect.com. and venturedirect.com. "ach team $ill prepare
and present an argument as to $hy its method is superior.
3tudent re!orts #ill var).
3. 9n this e#ercise. each team member $ill enter uproar.com. to play games and $in pri%es. hat
could be better* =his site is the destination of choice for game and s$eepsta!es jun!ies and for
those $ho $ish to reach a mass audience of fun-loving people. -elate the games to advertising
and mar!eting.
3tudent re!orts #ill var).
9ae 1(
*ha!ter $
4. Let the team try the services of constantcontact.com. )onstant )ontact offers a turn!ey e-
mail mar!eting pac!age solution. 9n less than 5 minutes. you can set up an e-mail sign-up
bo# on your eb site. 6s visitors fill in their names and e-mail addresses. they can be as!ed
to chec! off topics of interest &as defined by you( to create targeted groups. )ontact other
groups to provide input.
)onstant )ontact then provides a system to create template e-mail ne$sletter layouts. by
subject. that can be managed as separate campaigns and sent to your target users on a
predetermined schedule. =he site manages your mailings and provides reports that help you
assess the success of your efforts. :ricing is based on the number of subscribersE less than
58 and the service is free. rite a report summari%ing your e#periences.
3tudent re!orts #ill var).
5. Getfli#. 6ma%on.com. and others vie$ historical purchases as input available for use in
their recommendation systems. 7ome believe that this is an invasion of privacy. Debate
this issue.
3tudent o!inions #ill var).
,. "nter autonlab.org and do$nload tools for conducting data mining analysis &these
do$nloads are free(. 4et data on customer shopping and analy%e it.
3tudent re!orts #ill var).
Ans"ers to 1nd5o5Chapter Real5>orld Case 'uestions# )5/0058LO>1R&(COM Uses
:ata Mining to 8oster Relationship Management
1. hy is being number one in operation efficiency not enough to !eep 1-288-Dlo$ers.com
at the top of its industry*
More is needed because all other com!etitors offer similar efficiencies.
2. +o$ $as the transformation to a customer-intimate business accomplished*
The com!an) uses e&tensive 363 decision su!!ort and data minin soft#are.
3. hat is the role of data mining*
It allo#s the firm to antici!ate customer needs.
4. hy must the online presence and the telephone system be integrated*
3o that all data constantl) and consistentl) enters the s)stem.
9ae 1+
*ha!ter $
5. +o$ is the one-to-one relationship achieved*
-) understandin a customers !references and needs based on !ast transactions.
9ae 1,