Virtual+Customer+Relationships

=** SELECTING AND SATISFYING CUSTOMERS **=

== It is important for all businesses to identify prospective customers, understand consumer behavior, and recognize how customers make decisions. Business consumers and final consumers with common characteristics and needs make up target markets. All consumers are attempting to satisfy needs with the purchases they make. They will follow the steps in the consumer decision-making process. They will also use each of the three types of decision making from time to time. ==

== Principles of consumer behavior can be applied to all businesses and types of products and services, including those on the Internet. E-commerce businesses may find that their target markets are different. Thus, the types and sources of information used by their consumers will vary. Even so, consumer behavior is somewhat predictable. Understanding consumers and their needs allows e-commerce businesses to attract customers and aid them in the decision-making process. The results are satisfied customers and a successful, growing business. ==

= Characteristics of E-Commerce Customers =

== The Internet is still an innovative technology. While the number of people using the Internet grows each day, only a small percentage of businesses and final consumers use the Internet for shopping. Of those who do, most do not actually complete the entire purchasing process online. Even people who buy products on the Internet make only a small percentage of their total purchases online. ==

== If you started an e-commerce business, what would be the characteristics of your target market? Do you know the demographic and psychographic descriptions of people who use the Internet and those who don’t? How would you decide whether to attempt to serve international markets rather than just those in the United States? What information would be most effective for helping customers through the decision-making process? ==

== Abundant research has been completed in the attempt to understand who is using the Internet. Much of that research is available on the Internet. If can bus used by businesses to make segmenting decisions about their customers. ==

== Internet Consumers: The typical U.S. Internet user is young, Caucasian, employed, well educated, and a suburban dweller with above-average income. Almost as many females as males regularly use the Internet. African-American and Hispanic usage rates are lower than average. However, they are increasing at a faster rate than that of Caucasian users. The lowest participation rates are found in the youngest (under 13) and oldest (over 65) age groups. ==

== Internationally, the United States has more Internet users, but U.S. growth is much slower than in many other countries. People in Sweden, Hong Kong, the Netherlands, and Australia have the highest level of computer ownership and usage. They also have the greatest percentage of computers connected to the Internet. Spain and the countries of central and eastern Europe are viewed as high-potential Internet markets for the several years. ==

== People who purchase online are characterized as innovators and risk takers. They are interested in new products, services, and ideas. They want to be viewed by others as trend setters and opinion leaders. ==

== People who are less likely to purchase products online have greater needs for safety and security. They take longer to complete the decision-making process. They want to be viewed as making good economic decisions. ==

= Decision-Making Process =

== The majority of Internet users are online for the purposes of gathering information, communicating with others, and enjoying entertainment. Most Internet shoppers are in the second step of consumer decision making – the information search. However, their interest in communicating with others online can be helpful in the later steps of alternative analysis and post-purchase evaluation ==

== Fewer Internet shoppers are in the purchase decision step because they are uncomfortable with making online purchase. They may want an alternative method of purchasing. They also may need support and confidence in completing an online purchase. The average online consumer makes a relatively small number of purchases, spends less than $100 online per year, and is most likely to purchase familiar, low-cost products. People with annual incomes exceeding $100,000 purchase more than five times as much online per year and usually buy more expensive items. ==