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4.1 Introduction


Intelligence Resource (IR)

Praktisk Intelligence (I)/Business Intelligence (BI)/

OmverdensOvervåking (OO)




Intelligence/Business Intelligence/ OmverdensOvervåking 


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Kunnskapskilden –  E-Business





E-Business – Nøkkelområder

E-Business – Sjekkliste Strategi

E-Business – Sjekkliste for IT Infrastrukturen

E-Business – Sjekkliste Innhold

E-Business – Sjekkliste for E-Handelssystemet

E-Business – Sjekkliste Marketing

E-Business – Sjekkliste Kundeservicesystemet

E-Business – Online Community

The E-Business, the E-Customer, their Relationship and Interactivity



KunnskapskildenE-Business –
E-Business, E-Customer, Relationship and Interactivity


The E-Business, the E-Customer,
their Relationship and Interactivity 

Jan Vig 

Dissertation  av Jan Vig om E.Business, E-Customer, Relationship and Interactivity  (286 sider) i forbindelse med Masterstudie i Information Technology and Communication Juni 2000.


The E-Retailer Business, the E-Customer,
their Relationship and Interactivity

Table of Contents

Chapter One Introduction to the study

Chapter Two Business in Cyberspace

Chapter Three E- Retailer Commerce

Chapter Four E-Customer, Relationship and Interactivity

Chapter Five A Successful Case study – Amazon.com

Chapter Six The Future, Critical Success Factors, E-Business Strategy, Results and Conclusion




Chapter 4

The E-Customer, the Relationship and Interactivity 




Chapter Four E-Customer, Relationship and Interactivity

4.1 Introduction 108
4.2 The E-Customer 111
4.2.1 The E-Customer 111
4.2.2 The E-Customer and Benefits 113
4.2.3 The E-Customer behavior 114
4.2.4 The E-Customer and shopping 121
4.2.5 The E-Customer and shopping agents 123
4.2.6 The E-Customer and privacy 126
4.3 One-to-One Marketing and CRM 130
4.3.1 CRM 130
4.3.2 History One-to-one Marketing 132
4.3.3 Current Situation 133
4.3.4 Why is One-to-one marketing important today? 135
4.3.5 One-to-one marketing, trends and technology 136
4.3.6 One-to-one marketing tools 138
4.3.7 Benefits of One-to-one Marketing/CRM 138
4.3.8 Arguments against One-to-one marketing 140
4.3.9 Examples on One-to-one marketing 141
4.3.10 Implementing One-to-one marketing 143
4.4 E-Retailing, relationship, customer focus and customer experience 145
4.4.1 The E-Retailing and relationship 145
4.4.2 Personalisation 148
4.4.3 Create a great customer experience 152
4.5 The Customer led E-Retailer Web Site 155
4.6 Summary







Customer behavior is changing and bringing with it a transformation in the relationship between the customer and the E-Retailer. The customer of today has numerous choices and the Internet now extends those choices. That means the customers have greater buying power. For a company to succeed it will require significant effort to create a great customer experience.
Traditional marketing, from a communications standpoint, is primarily a one-way medium. Internet marketing, on the other hand, is a two-way medium. The customer or prospect makes the choice about whether they want to view the material, what parts of the material they want to view, and when they want to view it; furthermore, they have the capability to let you know what they think of it. As such, the content has to be much richer, and more customer- and benefit-focused than you might find in traditional marketing materials. The Internet demographic is also somewhat different from the market in the offline world. Internet users are, at still, primarily male, young, well educated, however, these demographics are rapidly changing, sometimes so fast the surveys can’t keep up with the actual changes. The trend is toward more women, seniors, and families joining the Internet community. The current changing demographic is something companies need to keep in mind as they make their E-Business plans.


The Internet is an inexpensive, yet invaluable tool for researching specific markets, businesses, and industries.


The Internet has shown an entirely new way of carrying out E-Commerce, marketing activities, information retrieval and networking and is all the time in development. Everything through from marketing research, product development, distribution, promotion, advertising and selling to customer service and support can now be done on the Internet.
All of this has created new ways of targeting and informing customers and a new approach to the marketing mix and has and will lead to a complete different way to compete. Many companies are not prepared to handle this.


In today’s world, shopping takes place in two distinct modes: physical or virtual. For many, going to a department store or a suburban mall is still the fastest way to buy what they need. For others, shopping from online stores (E-Retailers) is becoming a way of life. In either case, one would wish we could make better purchasing decisions by being able to relate what we already have with what we are about to buy.


One-to-one marketing”, where marketers can market to the individual’s needs, “value added marketing”, offering something of value such as information, entertainment in return for customer’s attention to the marketing message, and “relationship marketing”, where marketers engage customers in a continuing dialogue which translates into repeat visits to the web site and customer loyalty, “loyalty marketing”, “retention programs”, “database marketing” are all marketing buzzwords on the Internet used by marketers. According to Chase (1998:161) “there are three variables that converge in order for the customers to feel comfortable and positive about purchasing online: financial incentive, convenience, and added value.”

However to succeed as an E-Retailer it is vital for every company in the contact with customers to minimising uncertainty and be able to understand and solve problems.


Peter Drucker said that the ultimate purpose of a business was to create customers and keep them. Companies create customers by understanding their needs and satisfying them. One-to-one marketing simply extends this to satisfying them over and over again in keeping with Druckers philosophy.


According to Forrest (1999: 85) “getting to know your customers has been increasingly important in an age where the customer’s every move can be closely monitored.”

The Internet has unique attributes, setting it quite apart in many respects from traditional marketing media. “ The Internet allows customers to act on their own initiative and provide a company with relevant feedback. The Internet allows customers to be pro-active rather than reactive. Accordingly corporations need to be prepared to respond to a steady stream of customer input. Mass customisation and one-to-one customer service should readily reciprocate the information that customers provide.” (Forrest, 1999: 27) The Internet is transactional and can display audio, video and other multimedia elements.


The Internet creates the opportunity to reach a global audience at a fraction of the cost of traditional marketing channels and at the same time it enables organisations to reach a fine-tuned level of market segmentation. The Internet also facilitates customised content, enabling the E-Retailer to offer personalised marketing messages.


Many of the traditional marketing channels are being eroded by Internet and replaced by new models. Distribution channels are becoming shorter and marketers are now faced with communicating directly with customers via the Internet, cutting out distributors.

This “take over” of distribution channels is opening up new responsibilities for E-Retailers. New ways of marketing mean that E-Retailer must familiarise themselves with a new marketing paradigm and learn new skills, identify new opportunities, or get left behind.


This chapter applies the findings in chapter two and three to the E-Customer and his/her need for interactivity and positively customer experience. Further shows the importance of a Customer-Led E-Retailer web site, which take care of security, privacy, customer relationship and one-to-one marketing/CRM.


Download Dissertation


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