Contextual Marketing and Customer-Orientation Strategy for E-Commerce: An Empirical Analysis

Xueming Luo and Mojtaba Seyedian
International Journal of Electronic Commerce,
Volume 8, Number 2, Winter 2003-4, pp. 95.

Abstract: Theories from information systems and strategic marketing are integrated to develop a framework for understanding the direct, mediated, and moderated influences of contextual marketing and customer-orientation strategy on site satisfaction. Empirical testing shows that customers’ perceived contextual marketing and customer-oriented strategies are associated with site satisfaction and loyalty. Departing from the simple linear-association approach, the study also investigates the moderating role of privacy concerns and site design complexity and the mediating role of perceived site value. It finds that the influence of contextual marketing and customer-orientation strategy on site satisfaction is moderated by the perceived complexity of the site design but not by consumer privacy concerns. These influences may also be mediated by perceived site value. Overall, the contextual marketing approach of providing personalized, real-time information to customers at the point of need will obtain competitive advantage in e-commerce.

Key Words and Phrases: Consumer behavior, contextual marketing, customer orientation, Internet marketing, privacy concerns.