TLFeBOOK Contemporary Research in E-Marketing Volume 2 Sandeep Krishnamurthy University of Washington, USA Hershey • London • Melbourne • Singapore IDEA GROUP PUBLISHING Acquisitions Editor: Renée Davies Development Editor: Kristin Roth Senior Managing Editor: Amanda Appicello Managing Editor: Jennifer Neidig Copy Editor: Joyce Li Typesetter: Cindy Consonery Cover Design: Lisa Tosheff Printed at: Yurchak Printing Inc. Published in the United States of America by Idea Group Publishing (an imprint of Idea Group Inc.) 701 E. Chocolate Avenue, Suite 200 Hershey PA 17033 Tel: 717-533-8845 Fax: 717-533-8661 E-mail: cust@idea-group.com Web site: http://www.idea-group.com and in the United Kingdom by Idea Group Publishing (an imprint of Idea Group Inc.) 3 Henrietta Street Covent Garden London WC2E 8LU Tel: 44 20 7240 0856 Fax: 44 20 7379 3313 Web site: http://www.eurospan.co.uk Copyright © 2006 by Idea Group Inc. All rights reserved. No part of this book may be reproduced, stored or distributed in any form or by any means, electronic or mechanical, including photocopying, without written permission from the publisher. Product or company names used in this book are for identification purposes only. Inclusion of the names of the products or companies does not indicate a claim of ownership by IGI of the trademark or registered trademark. Library of Congress Cataloging-in-Publication Data Contemporary research in e-marketing / Sandeep Krishnamurthy, editor. v. <2 > cm. Includes bibliographical references and index. ISBN 1-59140-824-5 (h/c) — ISBN 1-59140-825-3 (s/c) — ISBN 1-59140-826-1 (eisbn) 1. Internet marketing. I. Krishnamurthy, Sandeep, 1967- HF5415.1265.C67 2006 658.8’72—dc22 2004016288 British Cataloguing in Publication Data A Cataloguing in Publication record for this book is available from the British Library. All work contributed to this book is new, previously-unpublished material. The views expressed in this book are those of the authors, but not necessarily of the publisher. Contemporary Research in E-Marketing Volume 2 Table of Contents Preface vi Chapter I. Evaluation of Web Sites on Information and Entertainment Properties: The Role of Involvement 1 Sanjeev Swami, Indian Institute of Technology, Kanpur, India Ram Krishna, Tata Consultancy Services, India Chapter II. An Examination of Consumer Behavior on eBay Motors 40 Mark P. Sena, Xavier University, USA Gerald Braun, Xavier University, USA Chapter III. Job Search at Naukri.com: Case Study of a Successful Dot-Com Venture in India 58 Sanjeev Swami, Indian Institute of Technology, Kanpur, India Chapter IV. User-Centered Design and Marketing: Online Customer Value 88 Thomas W. Porter, University of North Carolina Wilmington, USA Chapter V. A Synthesis and Analysis of Behavioral and Policy Issues in Electronic Marketing Communications 106 Merrill Warkentin, Mississippi State University, USA Robert S. Moore, Mississippi State University, USA Melissa Moore, Mississippi State University, USA Chapter VI. Providing Value to Customers in E-Commerce Environments: The Customer’s Perspective 119 Shailey Minocha, The Open University, UK Liisa H. Dawson, The Open University, UK Ann Blandford, University College London Interaction Centre, UK Nicola Millard, British Telecommunications PLC, UK Chapter VII. Key Success Requirements for Online Brand Management 147 Subir Bandyopadhyay, Indiana University Northwest, USA Rosemary Serjak, University of Ottawa, Canada Chapter VIII. The Evolution of the Theory and Practice of Marketing in Light of Information Technology 168 Daniela Andreini, University of Bergamo, Italy Chapter IX. The Internet and Global Markets 216 José Manuel Ortega Egea, University of Almería, Spain Manuel Recio Menéndez, University of Almería, Spain Chapter X. Stance Analysis: Social Cues and Attitudes in Online Interaction 262 Peyton Mason, Linguistic Insights, Inc., USA Boyd Davis, University of North Carolina-Charlotte, USA Deborah Bosley, University of North Carolina-Charlotte, USA Chapter XI. Application of Internet-Based Marketing Instruments by Multichannel Retailers: A Web Site Analysis in the U.S. and the UK 284 Maria Madlberger, Vienna University of Economics and Business Administration, Austria Chapter XII. The E-Mode of Brand Positioning: The Need for an Online Positioning Interface 304 S. Ramesh Kumar, Indian Institute of Management, Bangalore, India Chapter XIII. Locked In By Services: Willingness to Pay More and Switching Behavior in a Digital Environment 322 Manlio Del Giudice, University of Milano-Bicocca, Italy Michel Polski, Grenoble Ecole de Management, France Chapter XIV. Comparative Analysis of International Approaches to the Protection of Online Privacy 347 Peter O’Connor, ESSEC Business School, France About the Authors 365 Index 372 vi Preface It is a pleasure to announce the second volume in the Contemporary Research in E-Marketing series. Volume 1 in this series was released in 2004 and has been very well received. This volume builds on the intellectual capital of Vol- ume 1 by a compilation of interdisciplinary papers on the topic of e-marketing. The Internet and the Web continue to evolve at a rapid pace. Examples of innovative applications of these technologies in the domain of marketing abound. E-marketing has become standard practice all over the world. This volume offers an exciting set of papers that use different perspectives, theories, and research methodologies to enrich the burgeoning e-marketing literature. The first paper by Sanjeev Swami and Ram Krishna, “Evaluation of Web Sites on Information and Entertainment Properties: The Role of Involvement,” pro- vides an excellent empirical examination of consumer involvement on how Web sites are evaluated. Web sites receive a continuum of visitors in terms of moti- vation. Some care deeply about the topic of the site and others are not so engaged. Swami and Krishna provide us with empirical data on the impact of involvement on online consumer behavior. Their results show that the consumer’s information and entertainment profiles significantly affect utilitarian and he- donic evaluations of involvement. They also find positive and significant rela- tionships between the evaluations of involvement and affect toward the Web site. Most people think that products sold on eBay tend to be low-value, low-price products that one would encounter in a yard sale. It would perhaps be very surprising to many readers to learn that eBay Motors is the largest part of the company with an annual sales of $7.5 billion. The second paper by Mark Sena and Gerald Braun, “An Examination of Consumer Behavior on eBay Motors,” studies transactions in this product category. The findings of their study suggest vii that within selected data ranges, such factors as seller feedback ratings, num- ber of pictures in item description, and seller type (dealer vs. individual) may affect the percentage of retail value that sellers are able to earn in eBay Mo- tors auctions. Too often, discussions of e-marketing are limited to examples from America or Europe. If we are to acknowledge the truly global nature of e-marketing, it is imperative that we learn about the best practices in other areas of the world. The third chapter by Sanjeev Swami is titled, “Job Search at Naukri.com: Case Study of a Successful Dot-Com Venture in India.” This chapter is an in-depth analysis of an Indian company that has successfully competed with Monster India to establish an online portal for job hunters. Everyone agrees that providing customers with value is vital to the success of an online enterprise. Yet we know little about how one must design a Web site to maximize the consumer experience and to provide the greatest value. Tho- mas Porter fills this gap with his chapter, “User-Centered Design and Market- ing: Online Customer Value.” Blending insights from marketing, consumer be- havior, and human–computer interaction (HCI), Porter provides an incisive analy- sis of how Web design needs to be focused on the user. The model proposed in the paper based on means-end theory provides a theoretical explanation for linking Web site features and functions to perceptions of value by consumers. Communication is central to every marketing effort. In today’s multifaceted technology environment, consumers are inundated with marketing communica- tions from all sorts of advertisers on all sorts of devices. The chapter by Merrill Warkentin, Robert Moore, and Melissa Moore, “A Synthesis and Analysis of Behavioral and Policy Issues in Electronic Marketing Communications,” pro- vides an interdisciplinary synthesis of recent research concerning emerging electronic marketing communications. The chapter explores how different lev- els of marketing information acquisition and integration could impact consumer perceptions and behaviors. The next chapter by Shailey Minocha, Liisa Dawson, Ann Blandford, and Nicola Millard, “Providing Value to Customer in E-Commerce Environments: The Customer’s Perspective,” comes to us from the United Kingdom. Borrowing from the HCI literature and using intensive research, these authors provide us with a new way to understand online service quality and maximize the total consumer experience (TCE). Their framework of online service quality (E- SEQUAL) promises to have a major impact on the practice of e-marketing. This article also represents a truly remarkable collaboration with members of academia and industry. Online brands help us make sense of the abundance of information online. En- countering a familiar brand online is akin to meeting a friend in an alien environ- ment. Yet managing brands online provide unique challenges. In the chapter by Subir Bandyopadhyay and Rosemary Serjak, “Key Success Requirements for viii Online Brand Management,” we learn about what the brand manager can do to manage brands online and integrate them with physical brands for a successful consumer experience. Daniela Andreini’s chapter, “The Evolution of the Theory and Practice of Mar- keting in Light of Information Technology,” is a theoretical examination of the place of e-marketing in the marketing theory literature. This Italian author pro- vides an exhaustive analysis of the different theoretical perspectives of e-mar- keting and then integrates it with the known theoretical frameworks in market- ing. The next chapter comes to us from Spain. The work of José Manuel Ortega Egea and Manuel Recio Menéndez, “The Internet and Global Markets,” is a theoretical overview of how the Internet is affecting global markets. Online marketing research may well be the killer application that e-marketers have been waiting for. Online focus groups provide us with unique advantages. The biggest stated disadvantage may be that we lose body language and hence, an understanding of how things are said and not just what is said. The next chapter by Peyton Mason, Boyd Davis, and Deborah Bosley, “Stance Analysis: Social Cues and Attitudes in Online Interaction,” introduces us to the notion of stance and describes how we could measure this construct using multivariate techniques, using an ongoing example taken from an online financial focus group. They review differences in stance between online real-time focus groups and online chat, as well as between online and face-to-face focus groups; and fi- nally, they proffer examples of stance analysis in two very different online focus groups: older adults discussing financial services and teenagers discuss- ing clothes. Their work could very well be the missing piece in our understand- ing of online research and is a must-read for everyone interested in using the Internet as a research tool. The next chapter comes to us from an Austrian author—Maria Madlberger— who provides us with a fascinating comparative analysis in her paper, “Applica- tion of Internet-Based Marketing Instruments by Multichannel Retailers: A Web Site Analysis in the United States and the United Kingdom.” Her findings are provocative. She found that the observed multichannel retailers still prefer “tra- ditional” retail marketing instruments on their online shops and often do without innovative Internet-based marketing instruments such as personalization or con- tent and information offering. Additionally, they did not find fewer-than-ex- pected differences between the observed U.S. and U.K. retailers. The next chapter comes to us from S. Ramesh Kumar, and his work, “The E- Mode of Brand Positioning: The Need for an Online Positioning Interface,” takes on the issue of the positioning of online brands. Drawing from global as well as Indian examples, Kumar provides us with potential positioning frame- works. ix The chapter by Manlio Del Giudice and Michel Polski is titled, “Locked In By Services: Willingness to Pay More and Switching Behavior in a Digital Environ- ment.” They discuss a dynamic model of cognitive and behavioral e-loyalty. Using results from an empirical study, their chapter focuses on the determi- nants of the switching behavior online and on the opportunity to change Web site usability using a powerful lock-in strategy. The last chapter is by Peter O’Connor which comes to us from France. His paper titled, “A Comparative Analysis of International Approaches to the Pro- tection of Online Privacy,” compares the self-regulation approach epitomized by the United States with the comprehensive omnibus legislative approach mandated by the European Union. This collection of articles is expected to add to an already-considerable litera- ture and to enhance our understanding of this intrinsically interdisciplinary and global phenomenon. Sandeep Krishnamurthy University of Washington, Bothell, USA [...]... reading news, searching online databases), communication (e.g., e-mail, chat), Copyright © 2006, Idea Group Inc Copying or distributing in print or electronic forms without written permission of Idea Group Inc is prohibited Evaluation of Web Sites on Information and Entertainment Properties 3 and education and training (e.g., interactive education, online training) (Hanson, 2000; Kolakata & Whinston,... future research Background and Hypotheses The Internet is regarded as an “infotainment” media, since Web sites usually have both information and entertainment elements (Eighmey, 1997) We operationalize a site’s information properties by informativeness and organization of information elements, and the site’s entertainment properties by entertain- Copyright © 2006, Idea Group Inc Copying or distributing in. .. sites Site Information Profile 1 Informativeness 2 Organization of Information Elements Individual Information Profile/Type 1 Information Seeking Tendency 2 Individual Specific Focused Attention Utilitarian Evaluation of Involvement 1 Need 2 Value Affect Hedonic Evaluation of Involvement 1 Interest 2 Appeal Individual Entertainment Profile/Type 1 Sensation Seeking Tendency 2 Moodiness Site Entertainment... Group Inc Copying or distributing in print or electronic forms without written permission of Idea Group Inc is prohibited Evaluation of Web Sites on Information and Entertainment Properties 13 Research Design We conducted our study in three stages In Stage 1, we collected data for classifying Web sites on information and entertainment properties In Stage 2, we collected data for the measurement of involvement... & Wolin, 1999) Consumers use the Web for self-education and information needs Users have been found to agree strongly with their usage of the Web for acquiring useful information quickly, easily, and in an inexpensive manner (Korgaonkar & Wolin, 1999) The factors used in defining the information profile of a Web user are as follows: Information Seeking Tendency7: A consumer’s information-seeking tendency... 2006, Idea Group Inc Copying or distributing in print or electronic forms without written permission of Idea Group Inc is prohibited Evaluation of Web Sites on Information and Entertainment Properties 11 consumers might use in evaluating eSQ In a related work, Loiacono, Watson, and Goodhue (2002) established a scale called WEBQUAL with underlying dimensions such as information quality, interaction, trust,... sensation-seeking tendency would find a Web site more interesting and appealing than a person with low sensationseeking tendency (e.g., Hammond et al., 1998) Similarly, individuals with higher moodiness would be more likely to switch to good mood if they find the Web site interesting and appealing Moods have been defined as mild, pervasive, and generalized affective states rather than intense emotions... on Information and Entertainment Properties 1 Chapter I Evaluation of Web Sites on Information and Entertainment Properties: The Role of Involvement Sanjeev Swami, Indian Institute of Technology, Kanpur, India Ram Krishna, Tata Consultancy Services, India Abstract This paper addresses the role of consumer involvement in Web site evaluation We investigate the factors that lead the consumer to be involved... Varianini & Vaturi, 2000) In general, online consumers are younger, more educated, and more affluent than the general population (Hanson, 2000) Consumers visit the Web for entertainment (e.g., multiuser games, online discussions or chat rooms, music, videos), buying goods or services (e.g., online banking, online shopping, financial services, electronic catalogs, reverse auction), searching for information... entertainment properties and organization of entertainment elements The informativeness of a Web site is defined in terms such as informative, intelligent content, knowledgeable, resourceful, and up-to-date The entertainment properties of a Web site are defined by adjectives such as fun, exciting, cool, imaginative, and flashy Organization of entertainment elements refers to how well the entertainment . (h/c) — ISBN 1- 5 914 0-825-3 (s/c) — ISBN 1- 5 914 0-826 -1 (eisbn) 1. Internet marketing. I. Krishnamurthy, Sandeep, 19 67- HF5 415 .12 65.C67 2006 658.8’72—dc22 2004 016 288 British Cataloguing in Publication. Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited. and education and training (e.g., interactive education, online training). volume in the Contemporary Research in E-Marketing series. Volume 1 in this series was released in 2004 and has been very well received. This volume builds on the intellectual capital of Vol- ume 1