CHAPTER 17

INTERNATIONAL MARKETING IN E-COMMERCE

Chapter Objectives

Dissimilarities and similarities of international electronic marketing process.

E-Commerce for international applications. Demographic and preferences of international

Web users.

International Market for Web Products

Importance of Marketing Research:Web user profiles country by countryWeb usage and internet home penetration by foreign

consumersLevels of interest in online shoppingCost of access time and computer equipment.Cultural factors on product and services usage and

online purchase propensity.

Consumer Protection laws Assessing International e-commerce potential:

Monitoring currency fluctuations in foreign markets. Varying country regulations on Web site content. Allowable types of advertising or sales promotions. Levels of literacy in developing countries.

Expectations in international e-commerce applications: Country by country review of Web user profiles. Internet home penetration . Levels of interest in online shopping in international markets.

Differences Between Each Market Transportation for distribution Traditional media outlet for primary message delivery. Standard of living. Strength of financial systems Availability of reliable credit sources. Availability of credit cards and its acceptance in online

shopping. Levels of discretionary income. National and local taxes.

Demographic Information on European and World Markets

United Nations’ resources. U.S. Department of Commerce International Chamber of Commerce Private sources:

www.internationalist.com

User Survey In Europe, on line users are on internet 1-3 years while in

the U.S.A. they started a year ago. 46% of 10000 people have Web page. European respondents (67%) were more likely to have

created a Web page than U.S. respondents (43%). Online penetration is important for market segmentation. Internet familiarity must be check before entering foreign

online market.

Difficulties and Challenges Patience will be essential:

International marketing is uncertain/risky for many businesses. Many people may be uncomfortable because they are unfamiliar

with foreign cultures. Government support is different in different countries. Taxation, consumer protection, and fraudulent operations

should be controlled. Self-regulation will be expected in every foreign country. Internet, media and telecommunication system should be

international.

Issues Effecting Electronic Commerce in International Markets

Taxation. Data security. Online privacy. Liability for online content. Intellectual property-right. Technical concerns about the internet. Ethical issues. Consumer confidence in e-commerce transactions.

Internet Application in Europe