Poloposloe Essay

2110 WordsSep 26, 20129 Pages
CHAPTER 7 E-commerce Marketing Concepts NetFlix Develops and Defends Its Brand Class Discussion * What was NetFlix’s first business model? Why did this model not work and what new model did it develop? * Why is NetFlix attractive to customers? * How does NetFlix distribute its videos? * What is NetFlix’s “recommender system?” * How does NetFlix use data mining? * Is video on demand a threat to NetFlix? Consumers Online: The Internet Audience and Consumer Behavior * Around 175 million Americans (67% of total population) had Internet access in 2005 * Growth rate has slowed * Intensity and scope of use both increasing Internet Audience and Consumer Behavior * Some demographic groups have much higher percentages of online usage than other groups * Demographics to examine include: * Gender * Age * Ethnicity * Community Type * Income * Education Type of Internet Connection: Broadband Impacts * 52 million Americans had broadband access by end of 2005 * Broadband audience quite different from dial-up audience: * Wealthier * More educated * More middle-aged * Greater intensity and scope of use Lifestyle Impacts * Intense Internet usage may cause a decline in traditional social activities * Social development of children using Internet intensively instead of engaging in face-to-face interactions or undirected play may also be negatively impacted * The more time people spend on the Internet, the less time spent using traditional media Consumer Behavior Models * Attempt to predict/explain what consumers purchase and where, when, how much and why they buy. * Consumer behavior models based on background demographic factors and other intervening, more immediate variables A General Model of Consumer Behavior [pic]

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