Chapter 4

Slide 4.
Chapter 4
E-environment
Lecturer: Nguyen Van Dung Ph.D.

Slides are based on slides accompanied the book “Digital Business and
e-commerce management strategy, implementation and practice”, with
improvement from the lecturer
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 4.2
Learning outcomes
• Identify the different elements of an organisation

macro-environment that impact on an
organisation’s digital business and digital
marketing strategy
• Assess the impact of legal, privacy and ethical
constraints or opportunities on a company
• Assess the role of macro-economic factors such
as economics, governmental digital business
policies, taxation and legal constraints
Slide 4.3
Management issues
• What are the constraints such as legal issues

which should be taken into account when
developing and implementing a digital business
strategy?
• How can trust and privacy be assured for the
customer while seeking to achieve marketing
objectives of customer acquisition and retention?
• Assessment of the business relevance of
technological innovation.
Slide 4.4
SLEPT factors
• Macro-environment
(impact on an organization's digital business and
digital marketing strategy)
– Social
– Legal
– Economic
– Political
– Technological
Slide 4.5
Table 4.1 Factors in the macro-and micro-environment of an organisation
Slide 4.6
Activity 4.1
Introduction to social, legal and
ethical issues
• List all the social, legal and ethical issues that

the manager of a sell-side e-commerce website
needs to consider to avoid damaging
relationships with users of his or her site or
which may leave the company facing
prosecution.
Slide 4.7
Activity answer – this lecture
• Cookies – laws and consumer perception on placing

these
• Are we limiting access to information from certain
sections of society (social exclusion)?
• Privacy of personal information entered on a website
• Sending unsolicited e-mail
• Replying promptly to e-mail
• Copyright
• Site content and promotional offers/adverts are in
keeping with the different laws in different countries
• Providing text, graphics and personality in keeping with
social mores of different countries.
Slide 4.8
Figure 4.1 ‘Waves of change’ – different timescales for change in the environment
Slide 4.9
Table 4.2 Significant laws which control digital marketing
Slide 4.10
Table 4.2 Significant laws which control digital marketing (Continued)
Slide 4.11
Social factors
• E-commerce service adoption
– Cost of access
– Value Proposition: Customers need to perceive a
need to be online
– Ease of use
– Security
– Fear of the unknown
Slide 4.12
Social factors – usage of the online channel
Figure 4.2 Applications of using the Internet

Source: EuroStat (2012).
Slide 4.13
Social factors
Understanding user's access requirements
•Usage location (from home or work)
•Access device (browser and computer platform including
mobile devices)
•Connection speed – broadband versus dial-up
connections
•ISP
•Experience level
•Usage type
•Usage level
Slide 4.14
Variation in number of sources on information used to inform buying

Figure 4.3
decision by sector
Source: Google Shopper Sciences (2011).
Slide 4.15
The influence of different information sources on purchase. ZMOT = Zero

Figure 4.4
Moment of Truth (before visiting store), FMOT = First Moment of Truth (in ‑store)
Source: Google Shopper Sciences (2011).
Slide 4.16
Social factors – motivation and online purchases

• Motivation for use of online services
1. Community
• Get to know other people
• Participate in an online chat
• Join a group
2. Entertainment
• Amuse myself
• Entertain myself
• Find information to entertain myself
3. Product trial
• Try on the latest fashions
• Experience a product
• Try out a product
Slide 4.17

4. Information
• Do research
• Get information I need
• Search for information I need
5. Transaction
• Make a purchase
• Buy things
• Purchase a product I’ve heard about.
6. Game
• Play online games
• Entertain myself with Internet games
• Play online games with individuals from other countries
Slide 4.18

7. Survey
•Take a survey on a topic I care about
•Fill out an online survey
•Give my opinion on a survey
8. Downloads
•Download music
•Listen to music
•Watch online videos
9. Interaction
•Connect with my friends
•Communicate with others
•Instant message others I know
Slide 4.19

10. Search
•Get answers to specific questions
•Find information I can trust
11. Exploration
•Find interesting web pages
•Explore new sites
•Surf for fun
12. News
•Read about current events and news
•Read entertainment news
Slide 4.20
Adoption of digital business by organisations
Enterprises adopting technologies for digital business, by size class,

Figure 4.6
EU27, 2012
Source: EuroStat (2013).
Slide 4.21
Adoption of digital business by organisations
Figure 4.7 Barriers to adoption of e‑commerce services of European countries

Source: European Commission (2010): http://ec.europa.eu/information_society/digitalagenda/documents/edcr.pdf. No longer available.
Slide 4.22
Legal factors
• Ethical Standards
- Practice or behavior which is morally acceptable to
society
• Privacy legislation
- Moral right of individuals to avoid intrusion into their
personal affairs by third parties.
Slide 4.23
Why personal data are

valuable for digital business
Through understanding customers’ needs,
characteristics and behaviours, it is
possible to create more personalized
targeted communications, which help
increase sales.
Slide 4.24
Legal factors
- Main information types
- Contact information: name, postal address, email
address and, for B2B companies, website address
- Profile information: information about a customer’s
characteristics that can be used for segmentation:
age, sex and social group for consumers, and
company characteristics and individual role for
business customers
- Platform usage information: Through web
analytics systems it is possible to collect information
on type of computer, browser and screen resolution
used by site users
Slide 4.25
Legal factors
- Main information types
- Behavioral information (on a single site):
purchase history, but also includes the whole buying
process
- Behavioral information (across multiple sites):
how a user accesses multiple sites and responds to
ads across sites. Typically these data are collected
and used using an anonymous profile based on
cookie or IP addresses which is not related to an
individual
Slide 4.26
Table 4.4 Types of information collected online and related technologies
Slide 4.27
Table 4.4 Types of information collected online and related technologies (Continued)
Slide 4.28
Ethical issues and data protection
• Ethical issues concerned with personal

information ownership have been usefully
summarised 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?
Slide 4.29
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 are abused?
Slide 4.30
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.
www.dataprotection.gov.uk
Slide 4.31
Information flows that need to be understood for compliance with data

Figure 4.8
protection legislation
Slide 4.32
Legal factors – other e-commerce legislation

1. Marketing your e-commerce business
•Domain name registration: The domain name refers
to the name of the web server and it is usually
selected to be the same as the name of the
company
•Using competitor names and trademarks in meta-
tags (for search engine optimization)
•Using competitor names and trademarks in pay-
per-click advertising
•Accessibility law: Legislation intended to protect
users of websites with disabilities
Slide 4.33
Legal factors – other e-commerce legislation

2. Forming an electronic contract
3. Making and accepting payment
4. Authenticating contracts
5. Email risks
6. Protecting intellectual property
7. Advertising on the internet
8. Data protection
Slide 4.34
Economic factors
The economic health and competitive environment in different
countries will determine their e-commerce potential.
●
E-economy
The dynamic system of interactions between a nation's citizens,
businesses and government that capitalise upon online
technology to achieve a social or economic good
●
Globalisation
The increase of international trading and shared social and
cultural values
●
Localisation
Tailoring of web-site information for individual countries or
regions
Slide 4.35
Economic factors - Localisation
• Singh and Pereira (2005) provide an evaluation

framework for the level of localisation:
– Standardised websites (not localised). A single site
serves all customer segments (domestic and international).
– Semi-localised websites. A single site serves all
customers; however, there will be contact information
about foreign subsidiaries available for international
customers. Many sites fall into this category.
– Localised websites. Country-specific websites with
language translation for international customers, wherever
relevant. 3M (www.3m.com) has adapted the websites for
many countries to local language versions. It initially
focused on the major websites.
Slide 4.36
Economic factors - Localisation (Con't)
• Highly localised websites. Country-specific websites

with language translation; they also include other
localisation efforts in terms of time, date, postcode,
currency formats, etc. Dell (www.dell.com) provides
highly localised websites.
• Culturally customised websites. Websites reflecting
complete ‘immersion’ in the culture of target customer
segments; as such, targeting a particular country may
mean providing multiple websites for that country
depending on the dominant cultures present.
• For large multinational companies, localisation is a
significant strategic issue for e-commerce.
Slide 4.37
Activity 4.2
• Assuming that your company’s website targets

foreign markets (e.g., USA, Europe, etc.). How
do you localize your websites? Give a detailed
example.
Slide 4.38
Case Study 4.1
The implications of globalization for consumer

attitudes
1.What does globalization actually mean?
2.What does “think global, act local” mean? Give
an example that is outside the case study.
3.Based on this article and your experiences,
debate the statement: “Site localization is essential
for each country for an e‑commerce offering to be
successful in that country.”
Slide 4.39
Political Factors
• Political actions enacted to control the adoption of
Internet
– Promoting the adoption benefits
– Define legislation to protect privacy or control taxation
– Lead companies to follow legislation
– Establish international components for Internet coordination
• Political actions intented to improve the economic
competitiveness
– Establish a brand in e-commerce both domestically and internationally.
– Transform existing businesses
– Foster e-commerce creation and growth
– Expand the e-commerce skills
– Provide leadership in policy development
– Government online should be a priority
Slide 4.40
Political Factors
• Approaches by governments to encourage use of the
Internet
– Increasing the penetration of ‘access devices’
– Increasing skills and confidence of target groups
– Establishing ‘passport’ qualifications (France, Italy and the UK have
schemes which grant simple IT qualifications, particularly aimed at low-
skilled groups)
– Building trust, allaying fears
– Direct marketing campaigns
Slide 4.41
Political Factors
• Approaches by governments to encourage e-business
– Access, participation, and skills: Encouraging all sectors of the
community to actively participate in the information economy
– Adoption of e-business: The government is working to provide more
efficient communication between businesses to help improve the
productivity of the economy
– Confidence, trust, and security: The government is working to build
public trust and confidence in going online, and addressing barriers to
consumer confidence in e-commerce and other areas of online content
and activity
– E-government strategies and implementation: The use of new
technologies for government information provision, service delivery and
administration has the potential to transform government, which will
improve the lives of people
– Environment for information economy firms: Provide research on the
environmental variables that drive innovation and growth in the
information economy and underpin its future development
– International dimensions: represents in world forums where decisions
are made that may affect national interests in the information economy
Slide 4.42
Technological factors
• Issues faced by managers when a new technology emerges
– ‘wait-and-see’ approach: Ignore the use of the
technique, perhaps because it is felt to be too expensive
or untried, or the manager simply doesn’t believe that the
benefits will outweigh the costs
– ‘early adopter’ approach: Enthusiastically adopt the
technique without a detailed evaluation since the hype
(sự quảng cáo thổi phồng) alone convinces the manager
that the technique should be adopted
– intermediate approach: Evaluate the technique and
then take a decision whether to adopt it according to the
evaluation
Slide 4.43
• Diffusion – adoption process

– innovators
– early adopters
– early majority
– late majority
– laggards
Slide 4.44
Figure 4.12 Diffusion–adoption curve of a Gartner hype cycle
Slide 4.45
Figure 4.13 Example of a Gartner hype cycle

Source: Gartner (2010).
Slide 4.46
• Approaches to identify emerging technology

– Technology networking
– Crowdsourcing: Utilising a network of customers or
other partners to gain insights for new product or
process innovations
– Technology hunting
– Technology mining
Slide 4.47
Figure 4.154.15
Figure Alternative
Alternative
responses
responses
to changes
to changes
in technology
in technology
Slide 4.48
Figure 4.15 summarizes the choices.
•The stepped curve I shows the variations in technology through time.

Some may be small incremental changes such as a new operating system,
others such as the introduction of personalization technology are more
significant in delivering value to customers and so improving business
performance.
•Line A is a company that is using innovative business techniques, that
adopts technology early, or is even in advance of what the technology can
currently deliver.
•Line C shows the conservative adopter whose use of technology lags
behind the available potential.
•Line B, the middle ground, is probably the ideal situation where a
company monitors new ideas as early adopters trial them and then adopts
those that will have a positive impact on the business.
Figure 4.15 Alternative responses to changes in technology
Slide 4.49
• Multiscreening: A term used to describe simultaneous

use of devices such as digital TV and tablet
• The growth in use of mobile technology is perhaps the
most significant trend in consumer adoption of digital
media.
Slide 4.50
Activity 4.3
• What are the three key factors which affect

consumer adoption of the Internet?
• Present a new IT technology that has been

introduced and assess its impacts on e-
commerce.

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Slide 4.

Lecturer: Nguyen Van Dung Ph.D.

• Identify the different elements of an organisation

• What are the constraints such as legal issues

Table 4.1 Factors in the macro-​and micro-​environment of an organisation

• List all the social, legal and ethical issues that

Activity answer – this lecture

• Cookies – laws and consumer perception on placing

Table 4.2 Significant laws which control digital marketing

Table 4.2 Significant laws which control digital marketing (Continued)

Social factors – usage of the online channel

Figure 4.2 Applications of using the Internet

Social factors – usage of the online channel

Variation in number of sources on information used to inform buying

Social factors – usage of the online channel

The influence of different information sources on purchase. ZMOT = Zero

Social factors – motivation and online purchases

Social factors – motivation and online purchases

Social factors – motivation and online purchases

Social factors – motivation and online purchases

Adoption of digital business by organisations

Enterprises adopting technologies for digital business, by size class,

Adoption of digital business by organisations

Figure 4.7 Barriers to adoption of e‑commerce services of European countries

Why personal data are

Table 4.4 Types of information collected online and related technologies

Ethical issues and data protection

• Ethical issues concerned with personal

Ethics – Fletcher’s view

• Fletcher (2001) provides an alternative

The eight principles for data protection

• Fairly and lawfully processed

Information flows that need to be understood for compliance with data

Legal factors – other e-commerce legislation

Legal factors – other e-commerce legislation

Economic factors - Localisation

• Singh and Pereira (2005) provide an evaluation

Economic factors - Localisation (Con't)

• Highly localised websites. Country-specific websites

• Assuming that your company’s website targets

Case Study 4.1

The implications of globalization for consumer

• Diffusion – adoption process

Figure 4.12 Diffusion–adoption curve of a Gartner hype cycle

Figure 4.13 Example of a Gartner hype cycle

• Approaches to identify emerging technology

Figure 4.15 summarizes the choices.

•The stepped curve I shows the variations in technology through time.

Figure 4.15 Alternative responses to changes in technology

• Multiscreening: A term used to describe simultaneous

• What are the three key factors which affect

• Present a new IT technology that has been

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Table 4.1 Factors in the macro-and micro-environment of an organisation