Slide 4.

CHAPTER 4
E-ENVIRONMENT

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.2

SLEPT Factors
 Macro-environment
 Social

 Legal

 Economic

 Political

 Technological

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.3

SLEPT: Social
 Include the influence of consumer perceptions in
determining usage of the Internet for different
activities

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.4

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

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.5

SLEPT: Economic
 Variations in the economic performance in different
countries and region affects spending patterns and
international trade

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.6

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

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.7

SLEPT: Technological
 Changes in technology offer new opportunities to
the ways products can be marketed

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.8

Factors governing Internet adoption

 Cost of access
 Value proposition
 Ease of use
 Security
 Fear of the unknown

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.9

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

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.10

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?

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.11

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?

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.12

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
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.13

Regulations on privacy and electronic

communications
 Privacy and Electronic Communications Regulations
(PECR) Act
1. Applies to consumer marketing using email or SMS
text messages
2. Is an ‘opt-in’ regime
3. Requires an opt-out option
4. Does not apply to existing customers when
marketing similar products
5. Contact details must be provided
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.14

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

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.15

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

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.16

Legal – Sparrows eight areas

1. Marketing your e-commerce business
2. Forming an electronic contract
3. Making and accepting payment
4. Authenticating contracts concluded over the Internet
5. E-mail risks
6. Protecting Intellectual Property
7. Advertising on the Internet
8. Data protection.

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.17

Economic/Political
 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.

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.18

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

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.19

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

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 4.20

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?

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007