chapter 4 e-environment. slept factors macro-environment social legal economic political ...
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CHAPTER 4E-ENVIRONMENT
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SLEPT Factors Macro-environment
Social Legal Economic Political Technological
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SLEPT: Social
Include the influence of consumer perceptions in determining usage of the Internet for different activities
SLEPT: Legal and Ethical Determine the method by which
products can be promoted and sold online
Governments, on behalf of society, seek to safeguard individuals right to privacy
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SLEPT: Economic
Variations in the economic performance in different countries and region affects spending patterns and international trade
SLEPT: Political National governments and transnational
organizations have an important role in determining the future adoption and control of the Internet and the rules by which it is governed
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SLEPT: Technological
Changes in technology offer new opportunities to the ways products can be marketed
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Factors Governing Internet Adoption Cost of access Value proposition Ease of use Security Fear of the unknown
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Internet Access
Consumers and businesses who uses Internet vary according to countries
Within each country, adoption of the Internet vary significantly according to individual demographic characteristics
Broadband adoption
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Why Personal Data are Valuable?1. Contact information2. Profile information3. Behavioral information (on a single
site)4. Behavioral information (on multiple
site)
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Ethical Issues and Data Protection
Ethical issues concerned with personal information ownership have been usefully summarized by Mason (1986) into four areas:
1. Privacy – what information is held about the individual?
2. Accuracy – is it correct?3. Property – who owns it and how can ownership be
transferred?4. Accessibility – who is allowed to access this
information, and under which conditions?
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Ethics – Fletcher’s View Fletcher (2001) provides an alternative
perspective, raising these issues of concern for both the individual and the marketer:
1. Transparency – who is collecting what information?
2. Security – how is information protected once collected by a company?
3. Liability – who is responsible if data is abused?
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The Eight Principles for Data Protection Fairly and lawfully processed; Processed for limited purposes; Adequate, relevant and not excessive; Accurate; Not kept longer than necessary; Processed in accordance with the data subject's
rights; Secure; Not transferred to countries without adequate
protection.
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Regulations on Privacy and Electronic communications Privacy and Electronic Communications
Regulations (PECR) Act1. Applies to consumer marketing using
email or SMS text messages2. Is an ‘opt-in’ regime3. Requires an opt-out option4. Does not apply to existing customers
when marketing similar products5. Contact details must be provided
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Regulations on Privacy and Electronic Communications
6. The ‘From’ identification of the sender must be clear
7. Applies to direct marketing communications
8. Restricts the use of cookies
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Viral e-mail Marketing
To reassure web users about threats to their personal information
TRUSTe ISIS – a UK accreditation initiative
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Checklist of Compliance
Follow privacy and consumer protection Inform the user Ask for consent for collecting sensitive personal
data Reassure customers by providing clear privacy
statements Let individual know when cookies are used Never collect or retain personal data Amend incorrect data Only use data for marketing Provide the option to stop receive information Use appropriate security technology
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Legal – Sparrows Eight Areas1. Marketing your e-commerce business Domain name registration Using competitor names and trademarks
in meta tags Using competitor names and trademarks
in pay-per-click advertising Accessibility law
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Legal – Sparrows Eight Areas2. Forming an electronic contract 3. Making and accepting payment4. Authenticating contracts concluded over
the Internet5. E-mail risks 6. Protecting Intellectual Property 7. Advertising on the Internet 8. Data protection.
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Economic/Political, Competitive Factors
Ensuring companies competitive Funding for education and technology Promoting new technology e.g. broadband 12% in UK, 70%
Taiwan, South Korea Achieving government efficiencies
E-government – all UK services online by 2005 Singapore ‘Intelligent Island’
Taxation regimes Legislation for offshore trading.
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A framework describing the e-economy
Source: Booz Allen Hamilton (2002).
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E-commerce and Globalization The increase of international trading and
shared social and cultural values Language and cultural understanding English becoming the lingua franca of
commerce Tailoring e-commerce services for
individual countries or regions
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Political Factors
Promoting the benefits of adopting the Internet
Enacting legislation to protect privacy or control taxation
Providing guidelines and assistance for compliance with legislation
Setting up international bodies to coordinate the Internet
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Technological Issues Need to be able to assess new innovation Rate of change
Which new technologies should we adopt? Monitoring for new techniques Evaluation – are we early adopter Re-skilling and training
Are our systems secure?