Ministry of Education and Training

Ho Chi Minh City University of Economics and Finance

Subject

ONLINE CONSUMER
BEHAVIOR
Lecturer: Le Hoang Hai Yen, MBA

1
University of Economics and Finance www.uef.edu.vn Yen Le, MBA
 ASSESSMENT METHODS

Assessment Approach Weights

Attendance check 10%

Exercise essay 20%

Formative Assessment
Mid-term exercise essay
20%

Summative Assessment Project report 50%

University of Economics and Finance www.uef.edu.vn 2 Yen Le, MBA

 CHAPTER 1

INTRODUCTION TO
ONLINE CONSUMER BEHAVIOR
Contents:

1.1. Definition of consumer behavior

1.2. Definition of online consumer behavior
1.3. The importance of online consumer behavior
1.4. The applications of online consumer behavior analysis in
online

University of Economics and Finance www.uef.edu.vn 3 Yen Le, MBA

 1.1. Definition of consumer behavior

Definition of consumer/customer

❖ A customer is someone who buys a product or service, while a consumer is someone who
uses a product or service.

❖ A customer may or may not be the consumer of the product or service they buy.

❖ A customer always purchases a product or service but might not be the end user.

❖ A consumer is always the end user of a product or service but might not have purchased it

University of Economics and Finance www.uef.edu.vn 4 Yen Le, MBA

University of Economics and Finance www.uef.edu.vn 5 Yen Le, MBA
 Definition of consumer behavior
➔ Consumer behavior is the study of how people make decisions about purchasing
goods and services. It includes the factors that influence a consumer's decision,
such as their attitudes, beliefs, and past experiences.
➔ Factors that influence consumer behavior:
+Personal factors: These include a consumer's occupation, which can affect
what they buy.
+Psychological factors: These include a consumer's emotions and desires.
+Social factors: These include a consumer's family and friends.
+Cultural factors: These include the culture in which a consumer lives.
+Economics factors: The economy can impact employment levels and consumer
confidence.
+Technological factors: The rapid advancement of technology has transformed
how consumers interact with brands, conduct research, and make purchasing
decisions.
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University of Economics and Finance www.uef.edu.vn 7
 Example:
❖ Psychology
Starbucks' Rewards Program: By offering
rewards and personalized experiences,
Starbucks leverages principles of operant
conditioning to encourage repeat
purchases and loyalty.
❖ Sociology
Social Media Marketing: Companies like
Nike and Adidas use social media
platforms to build brand communities and
foster a sense of belonging among
customers.
By understanding social norms and
values, they create targeted marketing
campaigns that resonate with specific
demographics.

University of Economics and Finance www.uef.edu.vn 8

 Economics
Dynamic Pricing: Airlines and hotels
use dynamic pricing to adjust prices
based on demand and other factors.
This strategy maximizes revenue by
understanding consumer price
sensitivity and willingness to pay
Anthropology
Cultural Nuances: International
brands like H&M and Zara adapt
their product offerings and marketing
strategies to suit different cultural
preferences and values. By
understanding cultural nuances, they
can build strong brand relationships
with customers around the world.

University of Economics and Finance www.uef.edu.vn 9

 1.2. Definition of online consumer behavior

❖ Online consumer behavior is the way people interact with online stores and market
places to make purchases. It includes how people search for products, decide what to
buy, and how they pay for it.

❖ Expectations like product availability, delivery transparency, affordable shipping, and,

more recently, a convenient buying journey all affect how consumers make decisions
to buy items online (and whether or not they’ll remain, loyal customers, once they’ve
made a purchase).

❖ Customer behavior analysis focuses on understanding individual customer interactions

with a brand (e.g., purchase history, website clicks) to improve sales. Consumer
behavior analysis looks at broader trends and influences on people's buying decisions
(e.g., cultural norms, psychological factors) to create targeted marketing campaigns.

❖ Both are crucial for effective marketing, one focusing on optimizing sales strategies
based on individual customer actions, and the other on developing targeted
campaigns based on broader consumer trends.

University of Economics and Finance www.uef.edu.vn 10 Yen Le, MBA

 1.3. The importance of online consumer behavior

Understanding online consumer behavior is a key element of a marketing

strategy.

To do this, brands need to understand how the consumers will react and be
influenced by your marketing strategies.
− How do the consumers perceive the information?
− How do you capture their paying attention?
- What are their needs?
- What factors influence them to make purchasing decisions?

University of Economics and Finance www.uef.edu.vn 11 Yen Le, MBA

 Example: LEGO and User-Generated Content
❖ Consumer Behavior Insight: LEGO recognized
that its passionate fan base was creating
amazing and innovative designs using their
building blocks. They understood that tapping
into this creativity could lead to exciting new
product lines and strengthen brand loyalty.

❖ Marketing Strategy: LEGO launched the LEGO

Ideas platform, a website where fans can
submit their own LEGO designs. Other users
then vote on their favorite submissions.
Designs that reach a certain threshold of
votes are reviewed by LEGO, and some are
even turned into official LEGO sets. This
strategy leverages user-generated content to
drive product innovation, engage the
community, and generate excitement around
the brand

University of Economics and Finance www.uef.edu.vn 12 Yen Le, MBA

 Why is online consumer behavior so important?

1. Tailore marketing strategies

2. Optimize user experience
3. Increase sales and revenue
4. Enhance customer loyalty
5. Competitive advantage

University of Economics and Finance www.uef.edu.vn 13 Yen Le, MBA

 Example: Sephora
❖ Personalized product recommendations:
Sephora uses its Beauty Insider program to
collect data on customer preferences and
provide personalized product recommendations,
both online and in-store.
❖ Targeted marketing campaigns: Sephora uses
email marketing and online advertising to deliver
personalized offers and promotions based on
customer purchase history and browsing
behavior.
❖ Omnichannel experience: Sephora seamlessly
integrates its online and offline channels,
allowing customers to browse products online,
try them in-store, and make purchases through
any channel, creating a convenient and
personalized shopping experience

University of Economics and Finance www.uef.edu.vn 14 Yen Le, MBA

 1.4. The applications of online consumer behavior analysis in
online

Online consumer behavior analysis is a critical aspect of modern online

marketing:

• Target audience segmentation

• Personalized marketing
• Website optimization
• Social media marketing
• Advertising optimization
• Customer journey mapping

University of Economics and Finance www.uef.edu.vn 15 Yen Le, MBA

 Example: Netflix’s Customer journey map
1. Massive Data Collection: Netflix is a data powerhouse. They collect an enormous
amount of data on user behavior, including:

○ Viewing History: What shows and movies users watch, when they watch, how
much they watch, when they pause, rewind, or fast-forward.
○ Search Queries: What users search for, including specific titles, genres, actors,
directors, and even moods or themes.
○ Ratings and Reviews: How users rate content, both explicitly (stars, thumbs
up/down) and implicitly (how long they watch).
○ Device Usage: What devices users use to watch (smart TV, phone, tablet, etc.), and
how they interact with the interface on each device.
○ Profile Interactions: How users create and manage profiles, including shared
accounts.
○ Social Media Engagement: While less direct, Netflix likely analyzes social media
trends and conversations related to their content.

University of Economics and Finance www.uef.edu.vn 16 Yen Le, MBA

 2. Advanced Customer Segmentation: Netflix goes beyond basic demographics and segments users
based on:
● Content Preferences: What genres, themes, and types of stories they enjoy.
● Viewing Habits: How often they watch, at what times, and on what devices.
● Engagement Levels: How actively they interact with the platform (ratings, reviews, searches).
● "Taste Clusters": Sophisticated algorithms group users with similar viewing preferences, even if
they haven't explicitly rated or searched for the same content.

3. Dynamic Customer Journey Mapping: Netflix's customer journey maps are constantly evolving. They
might look at stages like:
● Discovery: How users find new content (recommendations, browsing, searches, word-of-mouth).

● Selection: How users choose what to watch (trailers, synopses, reviews, peer recommendations).
● Consumption: How users experience the content (watching, pausing, rewinding, sharing).
● Engagement: How users interact with the platform beyond watching (ratings, reviews,
discussions).

University of Economics and Finance www.uef.edu.vn 17 Yen Le, MBA

 4. Personalization and Optimization: Netflix uses customer behavior
analysis and journey mapping to:
● Power Recommendations: The algorithm is constantly learning and
refining recommendations based on individual and aggregate viewing
patterns.
● Optimize User Interface: A/B testing is used to optimize the layout,
navigation, and presentation of content on different devices.
● Develop Content Strategy: Data informs what types of content to
acquire or produce, based on what users are watching and searching
for.
● Improve Customer Support: Understanding user behavior helps
anticipate and address common issues.
● Targeted Marketing: Personalized emails and notifications promote
content that aligns with user preferences.

University of Economics and Finance www.uef.edu.vn 18 Yen Le, MBA

 Customer Journey Map

Discovery Selection Consumption Engagement

01 02 03 05
• Sees • Reads synopsis, • Watches the first few • Rates the series and
recommendations for watches trailer episodes, wants to leaves a review
similar thriller series continue watching
• Show personalized • Encourage social
• Highlight new reviews from similar • Offer "Next Episode" sharing and
releases and trending users autoplay feature discussions
thrillers
TOUCH POINT?
19

University of Economics and Finance www.uef.edu.vn Yen Le, MBA

University of Economics and Finance www.uef.edu.vn 20 Yen Le, MBA