Lecture 8 (E-commerce marketing and advertising)

Question 1

Advantages of Online advertisement

Answer 1

-Best way to reach 18-34yo
-Individualized ads
-Price discrimination

Question 2

What does Pay per click (PPC) depend on

Answer 2

-Keyword competetiveness
-????

Question 3

Native advertisement

Answer 3

Content which fits among the actual content but is paid for

Question 4

Ad exchanges

Answer 4

Digital marketplace that uses automated auction method known as rogrammatic advertisement

Question 5

Real time bidding (RTB)

Answer 5

Process used to match advertising demand with publisher supply

Question 6

Price discrimination

Answer 6

Difference in price offers depending on time or user

Question 7

Long tail marketing

Answer 7

allows companies to realize significant profits by selling low volumes of hard-to-find items to many customers, instead of only selling large volumes of a reduced number of popular items

Question 8

Internet phases

Answer 8

Phase 1 - Static web with limited interactivity (Web 1.0)
Phase 2 - Interactive web (Web 2.0)
Phase 3 - Still Interactive web (Web 2.0)

Question 9

CRM Customer relation management

Answer 9

Tracking users and their behavior

Question 10

Cost per thousand (CPM)

Answer 10

how much you pay for 1000 ad impressions

Question 11

Cost per action CPA

Answer 11

you pay only when an action was done e.g. full video watched til end

Question 12

Characteristics of Phase 1 of internet

Answer 12

-Limited and slow broadband internet
-Mobile internet virtually non-existent

[Emails, News]

Question 13

Characteristics of Phase 2 of internet

Answer 13

-Widespread availability and adoption
-Mobile Internet

[Early social media, Chatting, Online games]

Question 14

Characteristics of Phase 3 of internet

Answer 14

-Improvements in broadband internet technology
-Mobile 3G & 4G

[Modern social media [IG, TIKTOK], Online streaming [Netflix], Productivity tools [Google docs]]

Question 15

General model of consumer behavior types of variables

Answer 15

1. Independent variables - background factors
2. Dependent variables - How users react
3. Intervening variables - stimuli

Question 16

Consumers decision process steps

Answer 16

1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-Purchase evaluation

Question 17

Types of Independent variables (background factors) in general model of consumer behavior

Answer 17

-Cultural - cultural background, values, beliefs, norms
-Social norms - Unrwitten rules and expectations
-Psychological - personality, attitudes, perceptions, motivations
-Demographics - Age, gender

Question 18

Types of Dependent variables (How users react) in general model of consumer behavior

Answer 18

-Clickstream behavior - clicks, page views, time spent on pages, conversations
-Purchase - Outcome of online consumer behavior

Question 19

Types of Intervening variables (Stimuli) in general model of consumer behavior

Answer 19

-Brand
-Marketing & Communications stimuli
-Firm Capabilities
-Consumer skills
-Product characteristics
-Purchasing attitudes
-Perceived behavioral control
-Social networks