Advances in Electronic Marketing

337 Pages·2005·4.757 MB·English

by  Irvine, III Clarke, Theresa B. Flaherty

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Irvine Clarke III
James Madison University, USA
Theresa B. Flaherty
James Madison University, USA
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Library of Congress Cataloging-in-Publication Data
Advances in electronic marketing / Irvine Clarke, III and Theresa Flaherty, editors.
p. cm.
Summary: "This book addresses Internet marketing and the World Wide Web, and other electronic
marketing tools such as geographic information systems, database marketing, and mobile advertis-
ing"--Provided by publisher.
Includes bibliographical references and index.
ISBN 1-59140-321-9 (h/c) -- ISBN 1-59140-322-7 (s/c) -- ISBN 1-59140-323-5 (ebook)
1. Internet marketing. 2. Internet advertising. 3. World Wide Web. I. Title: Electronic marketing.
II. Clarke, Irvine, 1961- III. Flaherty, Theresa, 1968-
HF5415.1265.A38 2005
658.8'72--dc22
2004029847
British Cataloguing in Publication Data
A Cataloguing in Publication record for this book is available from the British Library.
All work contributed to this book is new, previously-unpublished material. The views expressed in
this book are those of the authors, but not necessarily of the publisher.
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Preface ................................................................................................. vii
Acknowledgments................................................................................ xv
Section I: Buyer Behavior of Online Consumers
Chapter I
Attracting and Retaining Online Buyers: Comparing B2B and B2C
Customers.............................................................................................. 1
Eileen Bridges, Kent State University, USA
Ronald E. Goldsmith, Florida State University, USA
Charles F. Hofacker, Florida State University, USA
Chapter II
Unlocking E-Customer Loyalty........................................................... 28
Alvin Y.C. Yeo, University of Western Australia, Australia
Michael K.M. Chiam, University of Western Australia, Australia
Chapter III
Drivers and Barriers to Online Shopping: The Interaction of
Product, Consumer, and Retailer Factors.......................................... 45
Francesca Dall’Olmo Riley, Kingston University, UK
Daniele Scarpi, Universitá di Bologna, Italy
Angelo Manaresi, Universitá di Bologna, Italy
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ChapterIV
eCRM: Understanding Internet Confidence and the Implications
for Customer Relationship Management........................................... 67
Terry Daugherty, University of Texas at Austin, USA
Matthew Eastin, Ohio State University, USA
Harsha Gangadharbatla, University of Texas at Austin, USA
Section II: E-Marketing Strategy
Chapter V
Global Internet Marketing Strategy: Framework and Managerial
Insights................................................................................................. 84
Gopalkrishnan R. Iyer, Florida Atlantic University, USA
Chapter VI
Interactive Brand Experience: The Concept and the Challenges... 103
Mary Lou Roberts, University of Massachusetts Boston, USA
Chapter VII
Viral Marketing: The Use of Surprise ............................................. 122
Adam Lindgreen, Eindhoven University of Technology,
The Netherlands
Joëlle Vanhamme, Erasmus University Rotterdam,
The Netherlands
Chapter VIII
Retailer Use of Permission-Based Mobile Advertising .................. 139
Jari Salo, University of Oulu, Finland
Jaana Tähtinen, University of Oulu, Finland
Section III: Technology for E-Marketing
Chapter IX
Integrating Internet/Database Marketing for CRM....................... 157
Sally Rao, Adelaide University, Australia
Chris O’Leary, MSI Business Systems Pty Ltd, Australia
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Chapter X
Developing Brand Assets with Wireless Devices............................ 175
Jari H. Helenius, Swedish School of Economics and
Business Administration, Finland
Veronica Liljander, Swedish School of Economics and
Business Administration, Finland
Chapter XI
Geographic Information Systems (GIS) in E-Marketing ................ 193
Mark R. Leipnik, Sam Houston State University, USA
Sanjay S. Mehta, Sam Houston State University, USA
Section IV: E-Marketing Legal Challenges
Chapter XII
Legal Online Marketing Issues: The Opportunities
and Challenges................................................................................... 211
Michael T. Zugelder, Old Dominion University, USA
Chapter XIII
Regulatory and Marketing Challenges Between the U.S. and
EU for Online Markets ..................................................................... 229
Heiko deB. Wijnholds, Virginia Commonwealth University, USA
Michael W. Little, Virginia Commonwealth University, USA
Section V: E-Consumer Theoretical Frameworks
Chapter XIV
Modeling the Effects of Attitudes Toward Advertising
on the Internet ................................................................................... 247
Chris Manolis, Xavier University, USA
Nicole Averill, Carmichael Events, A Division of Eight
Entertainment, LLC, USA
Charles M. Brooks, Quinnipiac University, USA
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Chapter XV
Virtual Community: A Model of Successful Marketing
on the Internet ................................................................................... 270
Carlos Flavián, University of Zaragoza, Spain
Miguel Guinalíu, University of Zaragoza, Spain
Chapter XVI
An Online Consumer Purchase Decision Cycle ............................... 287
Penelope Markellou, University of Patras, Greece
Maria Rigou, University of Patras, Greece
Spiros Sirmakessis, Technological Educational Institution of
Messolongi, Greece
Glossary............................................................................................. 300
About the Authors.............................................................................. 304
Index................................................................................................... 315
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Introduction to Advances in Electronic
Marketing
While the Internet has been in existence since the 1960s, it was not until the
advent of the World Wide Web (WWW) that businesses began to modify
practices in an attempt to exploit the advantages of this new technology. Most
early entrants primarily focused on informational activities while discovering
limiting technologies and perplexing consumer behavior. Few companies were
able to utilize the Internet’s full capabilities, and stories of failure amassed.
The transition was seldom smoothe, and companies enjoyed a mixture of suc-
cesses and failures. In this period, one lesson became clear: electronic busi-
nesses operated in a distinct and unique manner from traditional business ac-
tivities.
Today, the Internet has exploded into mainstream society. The electronic me-
dium has created an informational and communication revolution that has for-
ever changed the overall business environment. Consequently, marketers con-
tinue to explore the possibilities of electronic marketing as an ideal channel for
communication, entertaining, selling, and distributing goods, services, and ideas.
Marketers seek opportunities to tap into the Internet’s potential for optimizing
performance and success, while realizing that it remains a dynamic ever-changing
medium. With a brisk rate of change, the state of electronic marketing remains
fluid, success factors transform, and marketers must continually pursue the
most robust advances in the field.
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viii
In the early 1990s, electronic marketing was fueled by the potential of revolu-
tionizing the manner in which organizations conducted their entire business
operations. In the past decade, with its rapid explosion of Web technologies,
marketers have experienced excitement and panic; trial and error; and suc-
cess and failure as they created online businesses and expanded into elec-
tronic channels of distribution. Most now agree that Internet marketing re-
mains unique from traditional approaches, yet, still draws on fundamental
marketing principles. Therefore, the genesis of this book lies in investigating
contemporary marketing thought about how the Internet has changed the face
of marketing. Specific emphasis is placed on managerially relevant discus-
sions of progress in electronic marketing.
The buyer behavior of online consumers is the starting point for Advances in
Electronic Marketing. In Section I, issues are investigated, such as customer
attraction and retention, e-customer loyalty, factors influencing purchase be-
havior on the Internet, and customer willingness to provide information online.
Section II explores emerging strategic issues associated with e-marketing.
Technological tools (e.g., databases, wireless devices, and geographical in-
formation systems), once unavailable to traditional marketers but now com-
monplace for e-marketers, are investigated in Section III. Section IV includes
two complementary chapters devoted to the various opportunities and chal-
lenges of the law as it pertains to e-marketing. Theoretical frameworks and
models of e-marketing phenomena are presented in Section V.
Buyer Behavior of Online Consumers
All marketing efforts are ultimately directed toward the consumer. As such,
the introductory section takes a closer look at some of the emerging issues
pertaining to buyer behavior of online consumers.
Chapter I. Eileen Bridges, Ronald E. Goldsmith, and Charles F. Hofacker
differentiate between business-to-business (B2B) and business-to-consumer
(B2C) marketplaces. The authors describe how and why customers purchase
online and why consumers are attracted to particular suppliers. Online and
off-line customers are compared in order to understand reasons for observed
differences. Various antecedents of the online experience are addressed to
determine influences on satisfaction and buying behavior. Web site efficacy
(usefulness and ease-of-use) is addressed in light of its importance in cus-
tomer satisfaction and retention for online shopping. The chapter concludes
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ix
with insights for e-marketers that wish to attract new buyers, satisfy, and re-
tain them.
Chapter II. E-customer loyalty is defined as the intention to repurchase a
certain product/service consistently from a particular e-vendor, despite the
presence of other circumstances that may induce switching behavior. Alvin
Y.C. Yeo and Michael K.M. Chiam provide an integrated framework for un-
derstanding the impact of corporate image, customer trust, and customer value
on e-customer loyalty in a B2C e-commerce context. This framework incor-
porates cognitive, affective, and conative components in order to gain cus-
tomer mind share, nurture emotional ties, and influence future purchase deci-
sions. The authors offer managerial suggestions for online loyalty management
to attain the “tao of loyalty”.
Chapter III. This chapter provides a thorough analysis of three key factors
that can influence consumer purchase behavior on the Internet. These factors
include product-related factors (e.g., product type, brand name, etc.), con-
sumer-related factors (e.g., consumer expertise, attitudes, risk perceptions,
shopping orientation, etc.), and retail-related factors (e.g., strategies and tac-
tics). Francesca Dall’Olmo Riley, Daniele Scarpi, and Angelo Manaresi pro-
pose that consumer-related factors affect online purchasing and the resulting
implications for online retailers. The authors provide practical suggestions for
retailers to reduce or overcome some of the barriers that prevent consumers
from increasing the amount of products purchased online.
Chapter IV. The Internet has emerged as a powerful electronic customer
relationship management tool. However, this tool is of practical use only when
consumers are willing to provide the type of information that is of value to the
e-marketer. Consumer willingness to provide personal information is a cor-
nerstone of customer relationship management. Terry Daugherty, Matthew
Eastin, and Harsha Gangadharbatla explore how consumers’ self-confidence
in using the Internet impacts their willingness to provide personal information
online. Results from their consumer panel support the idea that increasing
Internet confidence may result in more favorable attitudes toward information
requests and an increased willingness to provide information.
E-Marketing Strategy
We include several unique aspects of marketing strategy in this section to
highlight some of the distinctive characteristics of the Internet. The first chap-
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