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E-Commerce

TABLE OF CONTENTS

Page

1. Summary   3
2. Introduction   3
2.1 E-commerce consumer behaviour model   3
3. Intervening Variables   5
3.1 Customer service     5
3.2 Advertising     9
4. Conclusions 13
5. Bibliography 14
6. Appendix A – Growth in Web advertising in millions of dollars per year           15
7. Appendix B – Consumer Information Processing Model of Choice 16


1. Summary

This report presents briefly the generic e-commerce consumer behavior model. Its task is to show different ways the companies may use to win a customer and increase their profits concentrating on "intervening variables" represented in the model as far as E-commerce is concerned. The work is divided into three main parts. The introduction leads in the reader into general consumer behavior model. The main part concentrates on vendor controlled techniques of reaching clients and keeping them with the company and in the end it's summing up the figures in the conclusion section.

2. Introduction
The omnipresent nature of the internet and its universal access makes it an excellent platform for communicating more effectively with customers. To become a successful e-business initiative the company has to figure out how to lure costumers first and how to keep them without relaying on face-to-face interactions further. For marketers, the consumers are the natural starting-point for all decision-making. The consumers are at the centre of everything the marketing-oriented company does or plans: presumably, therefore, understanding how people think and behave in purchase situations is essential to the success of a company. It is impossible to predict all clients' decisions but knowing the e-commerce consumer behaviour model enable the firm to increase its sales together with reducing the retailing costs.
2.1 E-commerce consumer behaviour model
Economists tell us that people buy...