The customer adoption process is a generally accepted conceptualization of the stages a consumer goes through when confronted with a new product or service. According to the adoption process, the consumer must first become aware of the product. Then, they must develop an interest in it and perform some pre-purchase evaluation. Next, they try the product, either as a consequence of a purchase or because of a marketer-sponsored promotion or incentive. Two importance stages follow. First, the consumer must decide to purchase or continue purchasing the product which can be identified as adoption. A harder to discern stage is that of internalization in which the product has become an integral part of the consumer’s lifestyle. The internalization stage is particularly important in the case of technology.

Diffusion process is a communications model and consists of four elements: the innovation, communication channels, time, and social system within which innovation is spreading.

Pervasive computing implies that a single person has access to myriad of computing devices to assist in performing all sorts of daily tasks. Pervasive computing aims to enable people to accomplish an increasing number of personal and professional transactions using a new class of intelligent and portable devices. It gives people convenient access to relevant information stored on powerful networks, allowing them to easily take action anywhere, anytime. There new intelligent appliances or “smart devices” are embedded with micro-processors that allow users to plug into intelligent networks and gain direct, simple and secure access to both relevant information and services. These devices are as simple to use as calculators, telephones or kitchen toasters.

Server log is a record kept at the server level that records each file requested from a website.  The process for using panel data to generate site effectiveness data is the same as using panels in the general marketing research process. The 1st step is to recruit a statistically representative panel of internet users who agree to participate in the data collection. Specialized software is downloaded onto the participant’s computer to record the click stream data. The software is polled at regular intervals to upload the data. 1st-the source of the data is unambiguous, which it often it not with server logs. 2nd-a person who uses the internet from both home and work is two separate people according to server logs, but carefully planned and maintained panel data can overcome this issue. 3rd-the measurement firm can collect demographic and behavioral data from panel households that can be useful in reporting and analyzing.

Fairness is important when pricing goods because price determines at what point the product will be purchased. Price is also looked at as quality. There are a few things that are taken into consideration when it comes to pricing–the past price, close-substitute price, and context–which is the environment in which the purchase is being made.

A product can be tangible or intangible (services) and its purpose is for transactions.  There are two types of products: physical and services. Interactivity and Individualization affect product development. They also allow the firm to learn about their consumers and the personalization of the product for the preference of consumers. These also decrease the cost for its sellers.

Anticipatory customer service is the anticipatory service concept of being proactive  I is tnot simply waiting passively until customers request service. To do this, companies must anticipate potential problem areas before they become troublesome, develop situations, and provide service that exceeds customer expectations. To implement anticipatory customer service, one must (1) build customer scenarios, using data including call center reports, e-mail logs, chat transcripts, and Web site software that can report unusual volumes of activity and uncover patterns in a day-to day service queries. Use the scenarios to determine where intervention can prevent problems, such as common customer mistakes in placing orders.(2) make customer service pervasive by fulfilling common requests before the customer even asks and enduring that service is readily available throughout the value chain (3) design the service process  for “seamless escalation”. This means firms must guide customers to the service they need without having to move through frustrating layers of information that does not for the needs of the customer.

Some of the techniques that enterprises can use email promotions, search engine marketing, events & public relations, viral marketing, online advertising.There are four stages of brand building: Awareness, Familiarity, Positive Imagery, and Completed Transaction. It is important to create Awareness.  This is the first step introduces the brand to the consumer so the consumer can recognizes and be able to recall the brand later on.  Familiarity suggests some knowledge of the product, its features, and services offered.  It is measured by asking about recall of message points from the ad.  Creates Positive Imagery is created by marketing programs that link strong, favorable, and unique associations to the brand in memory. Completed Transaction should be the beginning of a relationship, not the end of the process. The best brand building on the Internet will fuse the attention-getting power of the Web’s interactive environment with the targeted relationship techniques of information-driven direct market. It will be tightly integrated with offline brand development activities.

This article is about the recent collaboration between YouTube and Carnegie Hall to create an “Internet Orchestra.”

Relationships – connection or bond, commitment

intellectual relationship – based on value or attributes, logical

Firms Want Relationships with Customers
-Anticipate positive feelings from remaining loyal to seller
-Trust that the seller will provide good value
-Feel the brand represents you
-Promote seller to friends and family
-Seek out and actively read seller’s promotional material

Pricing
Dynamic Pricing – one of the most significant contributions the internet and the 2 i’s have made to the pricing stategy
-Internet has enhanced dynamic pricing by decreased menu costs and interactivity

Auction Types
-English Auctions
-Dutch Auctions
-1st price sealed bid auctions
-reverse 1st price sealed bid auctions
-group buying
-exchanges

This article describes PayPal’s new system that allows parents to give their children a PayPal account linked to the main account.  This will allow children to shop online wherever PayPal is accepted but also lets the parents set limits to spending.

This article is about how Cyber Monday has now become a tradition on the Monday after Thanksgiving.

This is an interesting article about the new movie ‘Twilight’ and how it’s internet buzz has created a domination of online ticket sales weeks before the movie comes out.

In today’s class, we discussed Advertising which is primarily permission based.  Advertisers look to customers to opt in to their ads.  To do this, they have to get information about the different customers.  So advertisers create trends to figure out when to show ads and what kinds of ads to show to customers.

Cole states that teens don’t want to receive information but they want to generate and share it with peers.  Young users tend to trust unknown peers more than recognized experts (peer-2-peer).  90% of viewing is spent on 16 websites, 10% is spent on millions of other websites.

Barabba states that understanding the impact of the internet is not in technology but using it in new and different ways.

Rogers states that customer cluster will take on a life of their own, data mining will be a way of uncovering the complex DNA of groups.

Tobaccowala states that in an on demand world, you have an audience of one whom you need to re-aggregate into large enough audiences to target with scale and relevance, almost backward segmentation.

McAndrews states that you must target and personalize every marketing interaction.

Kenny states that digital media is the future of direct marketing.

For people today, there are more choices and more information out there.  But this makes everyone more lazy.

Brand is a shorthand of a conscious choice.  If you like a brand, you tend to stick with it.  If you buy a Toyota and you are satisfied with it, you are more likely to buy another Toyota when your lease is up (brand loyalty).  The is critical in the internet age.

The ad, like the web, will become dynamic, explorable, searchable, and participative.  Websites will be fun to visit, full of surprises and a compulsive attraction.

Customer Relationships – Stages

• Awareness – customer recognizes firm but has not installed any transactions.
• Exploration/Expansion – customer gathers information about firm which determines whether repeated transactions will occur.
• Commitment – customer and firm feel a sense of obligation or responsibility to one another.
• Dissolution – total loss of commitment and relationship.