In this paper the subject to identify is three behaviors inherent in e-tailing, explain how each medium enables e-commerce, and analyze each behavior using the communication process. The three behaviors to be discussed are independent variables, intervening variables, and dependent variables. Two types of independent variables are personal characteristics and environmental variables (Turban, King, McKay, Marshall, Lee, & Viehland, 2008). Personal characteristics refer to the demographic factors, internal individual factors, and behavioral characteristics (Turban, King, McKay, Marshall, Lee, & Viehland, 2008).
Environmental refers to social, cultural, community, and other environmental variables such as available information, government regulations, legal constraints, and situational factors (Turban, King, McKay, Marshall, Lee, & Viehland, 2008). Intervening variables controlled by vendors, as in pricing, advertising, branding, physical environment, and promotions. The physical environment includes in store displays, logistic support, technical support, and customer services all are important to the consumer (Turban, King, McKay, Marshall, Lee, & Viehland, 2008).
By showing a company’s product online for the consumer it fulfills the intervening variable. The dependent variable is the buying decision, the consumer ask several questions such as, “How much to buy? ” “Where to buy the product? ” and “When to buy the product? ” These decisions depend on the independent and intervening variables (Turban, King, McKay, Marshall, Lee, & Viehland, 2008). By using personalization in e-commerce a company is referring to matching service, products, and advertising to individuals and their preferences based on what the company knows about the individual user (Turban, King, McKay, Marshall, Lee, & Viehland, 2008).
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The three steps, services of personalization are: personalized services are built on a one-on-one communication channel, individual service built on the sequence of clicks, page request, or items added to shopping carts. The third universal services are the product search function or reading of customer reviews. These three strategies will increase satisfaction, build relationship, generate lock-in situations, and realize greater produce or service turnover (Turban, King, McKay, Marshall, Lee, & Viehland, 2008). Under independent variable the company must know itself the services and products they are providing to the customers.
Then the company has to determine how it will arrive at the information to the customer through websites or mailers. The company must determine who will receive the massages. This hypothetical company has to determine where it is obtaining its products from. So advertising can be put into place around those products. Thus, informing the customer/receiver through varies technology where the product comes from (University of Phoenix, 2011). The dependent variable sets the companies course to who, what, when, where, why, and how. With personalization the company must match all services and products to different demographics.
These demographics are the targets for the products and services the company is advertising. Using detailing in this manner should permit growth and larger profit margins. Part of existing in e-tailing is customer satisfaction. Given the changes in the world with more people going online for product maintaining customer satisfaction in the online shopping experience is more important. The high levels of customer satisfaction are associated with repeat purchases and positive word-of-mouth (Turban, King, McKay, Marshall, Lee, & Viehland, 2008).
The customer needs to trust the e-tailer that the product he or she receives will be like the one in the picture on the web page. Trust is particularly important in e-commerce transactions because of the difficulties of taking legal action (Turban, King, McKay, Marshall, Lee, & Viehland, 2008). The buyers and sellers must trust the e-commerce’s computing environment and the infrastructure. If they do not feel comfortable or trust security of the infrastructure he or she will not buy the product he or she was looking to buy (Turban, King, McKay, Marshall, Lee, & Viehland, 2008).
There are two ways to increase trust in e-commerce the following are: 1. ) Affiliate with an objective third party. This builds trust by putting hypertext links on their website to other trusted reputable companies. 2. ) Establish trustworthiness through these key elements integrity, competence, and security (Turban, King, McKay, Marshall, Lee, & Viehland, 2008). The organizational behaviors are similar, to individuals with a few differences, the individual is more the business-to-consumer where family and Internet communities can have an influence.
The organizational is more the business-to-business concept where family and Internet communities have no influence on purchases (Turban, King, McKay, Marshall, Lee, & Viehland, 2008). Marketing and advertising processes for organizations are different. The traditional way to market goods was through trade shows, magazines, newspapers, and salespeople calling. With the digital world or e-commerce an organization could use online directory, matching, the marketing and advertising service of exchanges, co-branding or alliances, affiliate programs, online marketing, or e-communities (Turban, King, McKay, Marshall, Lee, & Viehland, 2008).
Some organizations that venture into the e-wholesalers, this kind of intermediary sells directly to businesses exclusively online (Turban, King, McKay, Marshall, Lee, & Viehland, 2008). With all the new technology coming out in the world a large amount of individuals and organizations are turning to the Internet to buy and sell products and services all over the world.
Internal Revenue Service (2011) Electronic Payment Options for Businesses and Individuals. Retrieved from http://www.irs.gov/efile/article/O,,id=101316,00.html Turban, E., King, D., McKay, J., Marshall, P., Lee, J., & Viehland, D. (2008) Electronic Commerce 2008: A Managerial Perspective (5th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. University of Phoenix (2011) University of Phoenix Material: COMM470 Version 3 Appendix A
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