Click Here for Internet Insight: Advances in Clickstream Data Analysis in Marketing

Clickstream data are defined as the electronic record of Internet usage collected by Web servers or third-party services. The authors discuss the nature of clickstream data, noting key strengths and limitations of these data for research in marketing. The paper reviews major developments from the analysis of these data, covering advances in understanding (1) browsing and site usage behavior on the Internet, (2) the Internet's role and efficacy as a new medium for advertising and persuasion, and (3) shopping behavior on the Internet (i.e., electronic commerce). The authors outline opportunities for new research and highlight several emerging areas likely to grow in future importance. Inherent limitations of clickstream data for understanding and predicting the behavior of Internet users or researching marketing phenomena are also discussed.     

Does banner advertising affect browsing for brands? clickstream choice model says yes, for some

This paper investigates how exposure to Internet display advertising affects the subsequent choices users make of brand-specific pages to view within a website. Using individual-level clickstream data from a third-party automotive website, we tracked the web pages selected by users as they browsed the site and their exposures to premium placement display ads for different vehicle makes (e.g., Ford, Toyota). Pages on the site were classified into those that displayed information about a specific vehicle make (a ??make page??) versus those that did not (a ??non-make page??). For each ??make-page?? viewed, the specific automotive make selected (e.g., Ford, Toyota) was also recorded. We use these data to develop a model of users?? make-specific page choices as a function of prior banner ad exposure on the site. Consumer heterogeneity is captured using a Bayesian Mixture approach. We find that banner ads influence subsequent choices of which make-specific pages to view for ads, served during the current browsing session but not for ads served in previous sessions. The effect of banner ads is also segmented: users in one segment (54%) reacted positively, users in a second segment (46%) were not influenced. Using a standard continuous approach to heterogeneity, we would have concluded?Cincorrectly?Cthat banner advertising has no effect on the subsequent selection of make-specific pages. For the positively reacting segment, we estimate that the elasticity of make-page choice with respect to banner ad exposure is just under 0.2. Users in this segment appear less focused in their site browsing behavior and tend to stay longer than users in the non-reacting segment.     

The Impact of Online and Offline Information Sources on Automobile Choice Behavior

The Internet has significantly impacted the information search behavior of consumers. Many consumers regularly consult Internet sources for information on product categories, brands, manufacturers, and retailers, particularly when making a purchase decision about major durable goods. Automobiles are one example of such goods. The Internet has become a major source for information on automobile brands, attributes, and dealers. While much research has been done on the impact of the Internet on automobile information search behavior and search costs, there is limited work on the relationship between Internet use and the ultimate automobile choice. This type of relationship may have interesting managerial implications for both manufacturers of automobiles and firms that provide information on automobiles. This paper attempts to address this gap. It examines whether Internet use is associated with different choice patterns for automobiles. Using discrete choice analysis on automobile choice data, we explore whether there will be differences in the salience of specific information types for online versus offline consumers. We find that Internet users rely more on ratings while non-Internet users rely more on recommendations when making automobile choices. Our findings have several useful managerial implications for information provision, both online and offline.     

The Internetalisation of information,knowledge, and interaction components of the firm's internationalisation process

Abstract

Transcending traditional national borders, the Internet is an evolving technology that has opened up many new international market opportunities. However, ambiguity remains, with limited research and understanding of how the Internet influences the firm's internationalisation-process components. As a consequence, there has been a call for further investigation of the phenomenon. Thus the purpose of this study was to investigate the Internet's impact on internationalisation-process components, specifically, information availability, information usage, and interactive communication, with international market growth. Analysis was undertaken using structural equation modelling. Findings highlight the positive mediating impact of the Internet on information availability and usage, with the international market growth of the firm.     

Online Purchase Paths and Conversion Dynamics across Multiple Websites

Low transportation costs online allow shoppers to visit multiple e-commerce sites for a purchase decision. This research investigates online shoppers’ visit and purchase behaviors across competing websites. To consider that shoppers’ longitudinal cross-site visit data may consist of several unobserved shopping episodes, we propose a modeling approach to probabilistically clustering and relating online visits to latent shopping episodes, based on the temporal patterns of the visit events. The inferences are then used to examine shoppers’ visit-to-purchase behavior across websites. Using Internet clickstream data on individual-level browsing and transaction records at major air travel sites, we find that online shoppers’ cross-site visit patterns tend to be clustered and the purchase propensity is significantly higher at later visits within a visit cluster, compared to earlier visits. As our results suggest the possibility that visit clusters can serve as a reasonable proxy for shopping episodes, we look further into shoppers’ website choice and purchase behaviors within a cluster. We discuss how the cluster-based analysis can help managers tailor online marketing and advertising strategies based on shoppers’ cross-site visit and purchase patterns.     

The role of the Internet on free-riding: An exploratory study of the wallpaper industry

This study discusses the role of the Internet on possible free-riding activities for product categories where retail services are a critical part of the completed consumer purchase transaction. The study investigates free-riding in terms of consumer pre-purchase activities during the information search stage (how they process shopping information) and actual purchase decisions with a literature review. The study's empirical findings indicate that full-service retailers’ beliefs about online consumers’ choice of purchase outlet are predominantly influenced by online retailer prices rather than availability of a variety of products (place) on the Internet. This, in turn, indicates the possibility of strong free-riding opportunities in the sample wallpaper market. The study, in this context, proposes strategies and policies to eliminate many of the destructive effects of the opportunities for free-riding provided by the Internet for long-lasting channel and market effectiveness and efficiency.     

International Advertising Strategies by NIC Multinationals: The Case of a Korean Firm

Managers of new brands seek to leverage positive WOM and establish a critical mass of consumers who interact with their brands on social network sites (SNSs). Effective selection of ‘seeds’, or influencers, on SNSs, who will recommend the product and leverage the power of their social networks to influence other consumers is key to organic growth. This research examines the role of an influencer’s activity on a social network website (network size, membership duration, share-of-posts), brand message source (marketergenerated versus member-generated), and recipient type (SNS member versus nonmember) on an influencer’s decision to recommend a new brand and the recipient’s decision to make a referral visit. Empirical analyses of clickstream data from SNSs at a commercial website show that marketer- and consumer-generated brand ads differ in their impact on recommending propensity for high share-of-posts and long-term influencers, and for member and non-member recipients, which has implications for referral management.     

Is the Internet a primary source for consumer information search?: Group comparison for channel choices

A recent report estimates that 79% of American Internet consumers have searched online for health information [Fox, S., 2005. Health Information Online. Pew Internet & American Life Project, Washington, DC]. Currently, little information exists about consumers’ usage of the Internet as a channel of health information. As more consumers are relying on the Internet as a medical and health information search medium, relevant implicative research that provides insights into consumers’ online information searching behavior should be conducted. The present research attempted to reveal factors that drive consumers to adopt the Internet as their main channel of health information. Specifically, multiple facets, such as consumers’ psychological factors (i.e., personal characteristics) and perceived quality dimensions, were explored. Two Internet user groups were selected by their primary channel when searching for health information. Structural equation modeling was utilized to compare the two groups and identified significant differences of personal characteristics and perceived quality.     

International opportunity recognition as a critical component for leveraging Internet capabilities and international market performance

Recent research in the field of international entrepreneurship has emphasized the need for a better conceptualization of international opportunity recognition. Further, with advancements in information and communication technologies, such as the Internet, there has been a profound impact on the way in which international business is conducted, for example, enabling entrepreneurial firms to capitalize on the economic opportunities of an Internet environment. In this study, we propose a model, highlighting the importance of international opportunity recognition, as a critical component for leveraging Internet capabilities and international market performance. Through the lens of a resource capabilities approach, a quantitative, online survey was used to collect data from Australian, international entrepreneurial firms. Structural equation modelling results indicate that international opportunity recognition plays a central role in explaining how resources and Internet capabilities combine for the firm’s realization of international opportunities, and subsequent international performance. The findings enrich current understanding of how international entrepreneurial firms realize opportunities in Internet-based environments.     

Consumer willingness to pay across retail channels

Published research examining differences in consumer willingness to pay for products at omnichannel and pure-play online retailers is based on non-durable, search products and is equivocal; prices at pure-play online retailers are not always lower. This research examines differences in consumer willingness to pay for online purchases of functional and expressive products that differ in the length of product life, i.e. durable and nondurables at omnichannel versus pure play online retailers. Empirical analysis of consumer-centric, multi-site clickstream data of prices paid show that consumers are willing to pay higher prices for home goods products at omnichannel retailers compared to pure-play online retailers but differ for functional and expressive products. Implications are drawn to assist both omnichannel and PPO retailers in their pricing strategies.     

Models of Multi-Category Choice Behavior

Given the advent of basket-level purchasing data of households, choice modelers are actively engaged in the development of statistical and econometric models of multi-category choice behavior of households. This paper reviews current developments in this area of research, discussing the modeling methodologies that have been used, the empirical findings that have emerged so far, and directions for future research. We also motivate the use of Bayesian methods to overcome the computational challenges involved in estimation.     

互联网独角兽企业生态圈与数字经济环境的双向影响机制——基于滴滴和美团的案例分析

构建商业生态系统逐渐成为现代企业的重要战略选择,然而,在数字经济情境下,近几年崛起的平台型互联网独角兽企业呈现出有别于传统商业生态系统的互联网生态圈模式。结合滴滴和美团生态圈构建案例,从数据生成、数据获取、数据分析、数据应用和数据辅助五个阶段总结了在数字经济环境下平台型互联网独角兽企业生态圈的构建动机和逻辑,并从动态视角探讨了独角兽企业的互联网生态圈与数字经济环境的交互和结果,在此基础上补充了商业生态系统的评价体系。研究发现,第一,互联网独角兽企业的生态圈建设与过去的国际化生态、上下游供应链生态等模式相比,更倾向于选择通过成立新企业而非传统的依托于其他企业的方式来构建商业生态系统,且更强调商业生态系统的独立性,而非依托于传统的供应链;第二,众多互联网独角兽企业选择具有很大共性的“反常”跨界战略作为生态圈构建的战略方向,是因为它们面对着诸多数据环境压力,包括市场信心带来的数据覆盖压力、下游市场屏障带来的基础数据压力、行业壁垒低带来的数据接入压力和机会、用户黏性低带来的数据黏性压力、人口红利和专利法律政策带来的数据规模和数据模仿特点、垄断型市场格局带来的数据竞争压力、业务扩张带来的数据差异化压力、重大突发公共事件带来的数据网络化压力、盈利缺失带来的数据变现压力等;第三,独角兽企业的互联网生态圈具有广泛的环境影响力,应从用户黏性与生态圈数据沉淀、用户数据权与数据价值密度、用户消费习惯与数据价值深度、平台数据创新与数据应用多样化四方面评价其与数字化环境的双向影响。新时代的企业生态越来越成为依托数据的数据网络生态,数字化企业尤其是大规模的独角兽企业在构建生态圈的过程中应充分发挥自身数据优势,构建圈内圈外的数据交换体系,并最大化地利用数据方法和效应提升企业的生态竞争力,找到适合自己的生态位。     

Consumer acceptance of the mobile Internet

Technological innovations are often designed to help consumers save time. However, some consumers refuse to use innovations and downgrade their usability with increasing usage time. The purpose of this research is to find out how consumers?? personality in younger (vs. older) men (vs. women) affects behavioral choices of the mobile Internet, as an example of new technology, and how usage time affects perceived ease of use of innovative (vs. established) media. The study shows that innovativeness, low desire for social contact, and technology optimism, in interaction with demographics, determine whether consumers choose mobile Internet services over substitutes. Job-related dependency on technology and gender directly affect choice behavior. The study reveals that ease of use is downgraded as more time is spent using the mobile Internet, whereas there is no such relation for established media. The results help explain overoptimistic forecasts that were made in the field of technology acceptance.     

The Future Scope of Netnography and Social Network Analysis in the Field of Marketing

The marketing landscape has evolved to a great extent with the advent of Internet strategy integration, refined Internet marketing metrics, increase in wireless networking, rising consumer ownership of computers, the era of big data and e-commerce, influencer marketing, and the evolution of the Internet. To tap this virtual environment, newer methods of Internet research are required. This article studies the usage of two Internet research methodologies—Netnography and Social Network Analysis—and explores their potential toward the domain of marketing. An exhaustive literature review was conducted and after analyzing the previously published literature in this domain, it is seen that a clear link between these methodologies and the field of marketing has not been established. With a detailed analysis of previously published research work, using these two methodologies the authors are able to derive correlations with marketing concepts and are able to establish the future potential of the two methodologies of Netnography and Social Network Analysis as marketing research methodologies.     

Instant messaging continuance: A media choice theory perspective

Instant Messaging (IM) has become one of the most popular applications for many Internet users. While prior research has primarily focused on IM initial adoption, continued usage (or continuance) has not drawn much attention. This research integrates media choice theories with motivation theory to explain IM continuance. It tests the proposed model using data collected from a sample of 207 Chinese university students via an online survey. Results indicate that perceived enjoyment, perceived critical mass are key to IM continuance intention. Perceived social presence and perceived critical mass are positively associated with perceived enjoyment. We also find that perceived social presence, perceived media richness and perceived enjoyment have significant effects on perceived usefulness.     

The effect of attribute-based and alternative-based processing on consumer choice in context

The current research proposes that the extent to which consumer choices are affected by the decision process depends on the underlying nature of the choice problem. Specifically, choices resulting from substantial inter-brand comparisons and tradeoff analyses are vulnerable to whether product information is evaluated by attribute- or alternative-based processing. By contrast, choices resulting from a minimal cognitive processing are less sensitive to variations in the decision strategy employed. We test our theory in the well-known domain of choice context effects. Across three studies using multiple operationalizations of the decision process (i.e., information display format, product presentation mode, and processing goal), we find converging evidence that the more cognitively involving compromise choice increases when the environment facilitates attribute- versus alternative-based processing. Conversely, the choice of asymmetrically dominating option, which is characterized by relatively little analytical processing, does not depend on the type of decision strategy highlighted by the task.     

Convergence marketing

The authors discuss two enduring lessons of the Internet revolution: The first is that new technologies do not replace the old. They live side by side. They converge. The second is that people are complex, combining new technology and behaviors with enduring human needs. Like the mythical centaur, they run on the fleet hooves of the new technology but still carry the same human heart. These lessons of convergence shaped the unfolding of Internet technology—contributing to the decline of dot-coms and the missed opportunities of incumbent firms—and these lessons will shape the technological revolutions to come. In this article, Jerry Wind and Vijay Mahajan examine the implications of these lessons for marketing and business strategy in five specific areas of convergence—customerization (customization of marketing and product or service offering), community, channels, competitive value and choice tools. In each of these areas the greatest opportunities may be in strategies that emphasize convergence of old and new, online and offline, traditional and revolutionary.     

Information processing and innovative choice

In this paper we examine how the information processing of subjects who make an innovative choice (innovators) differs from that of subjects who make a noninnovative choice (noninnovators). The task involves selection of an alternative within a range of prerated product category innovativeness. We propose that subjects who seek 1) impersonal/uncontrollable sources, 2) higher levels of information, 3) more detailed (versus summary) data, and 4) noncomparative (versus comparative) data are more likely to make innovative choices. The research method is a computerized process tracing experiment utilizing Search Monitor (Brucks 1988).The authors wish to express their gratitude to Merrie Brucks for the use of and help with Search Monitor and to Eric Johnson, Dave Schmittlein, and Mita Sujan for helpful comments on an earlier version of this paper.     

Modelling real-time online information needs: A new research approach for complex consumer behaviour

Abstract

A major challenge for online vendor website operations is serving information that meets visitor needs at a given point in their purchase process. The problem arises from the complexity of human behaviour, as well as changing needs with the evolution of consumer knowledge and skills through the purchase process. The most difficult element, however, is determining the effects of information provided on the site, as well as from other sources that the consumer may access, and anticipating resulting consumer needs. This paper discusses the contributions and limitations of current modelling techniques and utility studies of online consumer information to model consumer needs in real time. An alternative basis for real-time customer need appraisal is proposed using clickstream and customer input data combined with online information utility to enable more effective information serving. This requires further academic research and changes in practitioner online marketing operations.