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Slide 4.
Chapter 4
E-environment
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
Table 4.1 Factors in the macro-and micro-environment of an organisation
Slide 4.5
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. You can base your answer on
current issues which may concern you, your
friends or your family when accessing a website.
Slide 4.6
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 4.7
SLEPT factors
• Macro-environment
– Social
– Legal
– Economic
– Political
– Technological
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
Figure 4.2 Applications of using the Internet

Source: EuroStat (2012).
Slide 4.12
Variation in number of sources on information used to inform buying

Figure 4.3
decision by sector
Source: Google Shopper Sciences (2011).
Slide 4.13
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 4.14
Figure 4.5 Development of experience in Internet usage
Slide 4.15
Enterprises adopting technologies for digital business, by size class,

Figure 4.6
EU27, 2012
Source: EuroStat (2013).
Slide 4.16
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 4.17
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 4.18
Table 4.3 Identity fraud categories in the UK

Source: CIFAS (2013).
Slide 4.19
Table 4.4 Types of information collected online and related technologies
Slide 4.20
Table 4.4 Types of information collected online and related technologies (Continued)
Slide 4.21
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 4.22
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 4.23
Information flows that need to be understood for compliance with data

Figure 4.8
protection legislation
Slide 4.24
Figure 4.9 Comparison of number of blog postings for three consumer brands
Source: Blogpulse (www.blogpulse.com), reprinted by permission of Nielsen Buzzmetrics. No longer available.
Slide 4.25
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 4.26
Localisation (Continued)
• 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. Durex
(www.durex.com) is a good example of a culturally
customised website.
Slide 4.27
Economic/political
• Ensuring companies competitiveness

– Funding for education and technology
– Promoting new technology for example, 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.
Slide 4.28
Technological issues
• Rate of change
– Which new technologies should we adopt?
• Monitoring for new techniques
• Evaluation are we early adopters?
• Re-skilling and training
• Are our systems secure?
Slide 4.29
Figure 4.12 Diffusion–adoption curve of a Gartner hype cycle
Slide 4.30
Figure 4.13 Example of a Gartner hype cycle

Source: Gartner (2010).
Slide 4.31
Figure 4.15 Alternative responses to changes in technology

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Slide 4.

• 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

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)

Figure 4.2 Applications of using the Internet

Variation in number of sources on information used to inform buying

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

Figure 4.5 Development of experience in Internet usage

Enterprises adopting technologies for digital business, by size class,

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

Ethical issues and data protection

• Ethical issues concerned with personal

Table 4.3 Identity fraud categories in the UK

Table 4.4 Types of information collected online and related technologies

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

• Singh and Pereira (2005) provide an evaluation

• Highly localised websites. Country-specific websites

• Ensuring companies competitiveness

• Are our systems secure?

Figure 4.12 Diffusion–adoption curve of a Gartner hype cycle

Figure 4.13 Example of a Gartner hype cycle

Figure 4.15 Alternative responses to changes in technology

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