Marketing in hypermedia computer-mediated environment: Conceptual foundations

This paper addresses the role of marketing in hypermedia computer-mediated environments (CMEs). Our approach considers hypermedia CMEs to be large-scale (i.e. national or global) networked environments, of which the World Wide Web on the Internet is the first and current global implementation. We introduce marketers to this revolutionary new medium, and propose two structural models of consumer behavior in a CME. Then we examine the set of consequent testable research propositions and marketing implications that flow from the models. Marketing in Hypermedia Computer-Mediated Environments: Conceptual Foundations 1) Introduction Firms communicate with their customers through various media. Traditionally, these media follow a passive one-to-many communication model whereby a firm reaches many current and potential customers, segmented or not, through marketing efforts that allow only limited forms of feedback on the part of the customer. For several years now, a revolution has been developing that is dramatically altering this traditional view of advertising and communication media. This revolution is the Internet, the massive global network of interconnected packet-switched computer networks, and as a new marketing medium, has the potential to radically change the way firms do business with their customers. The Internet operationalizes a model of distributed computing that facilitates interactive multimedia many-to-many communication. As such, the Internet supports discussion groups (e.g. USENET news and moderated and unmoderated mailing lists), multi-player games and communications systems (e.g. MUDs, irc, chat, MUSEs), file transfer, electronic mail, and global information access and retrieval systems (e.g. archie, gopher, and the World Wide Web). The business implications of this model "[where] the engine of democratization sitting on so many desktops is already out of control, is already creating new players in a new game" (Carroll 1994), will be played out in as yet unknown ways for years to come. This paper is concerned with the marketing implications of commercializing hypermedia computer-mediated environments (CMEs), of which the World Wide Web (Berners-Lee et. al. 1992, 1993) on the Internet is the first and current networked global implementation. While we provide a formal definition subsequently, at this point we informally define a hypermedia CME as a distributed computer network used to access and provide hypermedia content (i.e., multimedia content connected across the network with hypertext links). Though other CMEs are relevant to marketers, including private bulletin board systems (Bunch 1994); public conferencing systems such as the WELL (Figallo 1993; Rheingold 1992, 1993) and ECHO; and commercial online services such as America On-Line, Prodigy, and CompuServe, we restrict our current focus to marketing activities in hypermedia CMEs accessible via the "Web" on the Internet. The Internet is an important focus for marketers because consumers and firms are conducting business on the Internet in proportions that dwarf the commercial provider base of the other CMEs combined. There are over 21,700 commercial Internet addressess (Verity and Hof 1994), and an increasing percentage of these commercial addresses are providing Web services. As of December 28, 1994, 1465 firms were listed in Open Market’s (1994) directory of "Commercial Services on the Net," and there were 6370 entries in the "Business/Corporations" directory of the Yahoo Guide to WWW (Filo and Yang 1994). The central thesis driving this research is that hypermedia CMEs, such as but not limited to the World Wide Web on the Internet, require the development and application of new marketing concepts and models. This is because hypermedia CMEs possess unique characteristics, including machine-interactivity, telepresence, hypermedia, and network navigation, which distinguish them from traditional media and some interactive multimedia, on which conventional concepts and models are based. Hoffman & Novak (1995), "Marketing in Hypermedia CMEs: Conceptual Foundations" page 1