- Explain the nature of the consumer adoption process. How is it different from the concept of difussion of innovations?
The consumer adoption process is when a customer comes in contact with a new product and gets some interest after awareness. The customer can sometimes contrast the product with another product. As the customer begins to buy their product, they will begin to purchase other products from the same firm; thus making them(company) a part of the customers life. The consumer adoption process will explain the customer’s behavior. THis will show us how a consumer adapts to the product and using the product in which it will explain the life of a product over a period of time. The diffusion of innovations is the communication models that consists of four parts: the time, communication channels, innovation, and social system in which the innovation is spreading.
- Define “pervasive computing” in your own words. What changes is it likely to bring about in the way marketers approach the internet?
Pervasive computing - is the concept that explains how a single person has access to multiple computing devices that can be both online and offline. (ex. Blackberry, laptops, cellphone) Marketers will have to keep up with the changes. New services and products will be a consequence of this evolving access to technology. (ex. RFID)
- Strategic drivers of wireless adoption and explanation for each.
| The strategic drivers that will enable them to operate successfully in this environment are as follows: |
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- Context.This means providing necessary information when and where the customer needs or wants it. The content trigger is in the hands of the customer, not of the marketer. Context in the wireless environment has two dimensions:
- Localization.Through various geographic systems, the location of the user can be identified and information specific to that location can be provided. A consumer driving down the highway can be beamed information about attractions in the area.
- Personalization. The customer can select not only the type of information desired but also the frequency of information provision. For example, the consumer may select specific stocks and specific price levels at which he or she wishes to be notified.
- Time sensitive.Screens are small and storage is limited, so information must be provided at the time appropriate to the customer, not convenient for the marketer. As a customer passes a store in a shopping mall, he or she may be willing to receive a coupon for a purchase in that store, which can be saved or retained on the screen until the customer shows it when checking out the purchase.
- High value. The coupon will have to have a reasonable value in order to make it welcome in the wireless context.
- Voice activation. There are many situations, driving in particular, in which it is not safe—and in many locales, not legal—to use the keyboard of a mobile device. Voice activation is the solution in these situations.
- One-click payment mechanisms. Consumers are not going to be willing to enter credit card information on mobile keyboards and may be uncomfortable with the idea of their credit card data being transmitted wirelessly. They are not likely to be willing, either, to have numerous vendor-specific accounts, especially for micropayments. A system in which payment is easily and securely authorized and billed to a single account will be necessary to enable frequent use of m-commerce services.
- Security. Users must be assured that data transmissions are secure, and authentication services must be provided in a way that is suitable for the devices. Embedded devices that identify the owner are one possibility. Smart cards that can be inserted and removed to protect encoded information are another.
- Privacy. In addition to protecting personal data, providers of content and services will have to be sensitive to download times, lack of storage, and the fact that users are paying for airtime. They must not abuse technological capabilities like geographic locational services.
- Expanded permission marketing. Marketers will have to extend the concept of Permission Marketing beyond simple opt-in scenarios. They must find out what kind of information consumers are willing to receive, how often they are willing to receive transmissions, and where they are willing to receive it. This means an accurate customer database that is updated in real time.
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