Evaluating Direct Marketing Practices On the Internet via the Fuzzy Cognitive Mapping Method

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1 Itratoal Joural of Busss ad Maagmt Dcmbr, 28 Evaluatg Drct Marktg Practcs O th Itrt va th Fuzzy Cogtv Mappg Mthod Slcuk Burak Hasloglu (Corrspodg author) Dpartmt of Marktg, Faculty of Ecoomc ad Admstratv Sccs Uvrsty of Pamukkal Dzl 27, Turky E-mal: slcukburak@hasloglu.com Rca Car Dpartmt of Busss, Idustral Arts Educato Faculty Uvrsty of Gaz Golbas Akara 683, Turky E-mal: rcar@gaz.du.tr Abstract May kds of tools ar usd drct marktg applcatos o th Itrt wth -mal ad th bg th most mportat amog ths. O th othr had, th Itrt brgs som gatv factors lk spam ad vrus. Naturally ths factors affct drct marktg applcatos o th Itrt gatvly. Th objctv of th prst study s to valuat ths factors, whch ar carrd out ths applcato. To rach ths goal, a fuzzy cogtv mappg mthod s mad us of th study. Kywords: Itrt, Drct marktg, Fuzzy cogtv mappg 1. Itroducto Today, formato s th ma sourc of th coomy ad puts th classcal trad of raw matral-captal-labor, whch s cssary for maufacturg, dow to th scod prorty. Th formato socty ops a w rvoluto to popl, whch s dvlopg at a rattlg rat. Bsds th formato sourc of ths rvoluto, ts most mportat qualty s th valdty of coomc thors. Th Itrt ad smlar formato-basd tchologs, th mas of th formato socty, ar amog th sourcs of th chag xprcd coomy. Th frst stags of th formato tchology startd wth th apparac of th computr ad cotud utl ts troducto to homs ad small trprss. Th scod stag, whch s basd o th Itrt, appars th 199s wth wb tchologs usd to trasfr formato wth th orgazato ad th tratoal platform va wrlss ls. By mas of a lot of w tchologs, spcally formato tchologs, small trprss ar abl to rach th scal coomy ad sourcs owd by th bg trprss. Small trprss ths coomy ar ot a posto to kp thmslvs udr such havy loads as th bggr os do. Accompayg th formato socty, formato ad commucato tchologs cotrbut a lot to commrcalzato, thus havg coomc valu. Udr th ffct of global tsv comptto, trprss ar makg mor ad mor fforts to crasgly us advacd formato tchologs ad to adapt to w work procsss. Th trprss makg us of formato tchologs rduc costs, thus bcomg procss-cld sttutos. Iformato tchologs do away wth th dstacs btw th trprss, thus brgg togthr supplrs, busss partrs, clts ad rvals (Tapscott, 1996, pp ). Dvlopmts formato ad commucato tchologs, th Itrt partcular, provd w faclts for th producto, storag, maagmt, tgrato ad us of formato. Th Itrt s also a ffctv tool usd drct marktg applcatos. Drct marktg applcatos carrd out o th Itrt ar groupd to two tchcal trms: wb ad -mal. Wb has got a tchology of whch fdbacks ca b masurd vry stp ragg from prstatos, advrtsmt ad supportg srvcs ad v ordr-sal procdurs, all of whch ar th actvts of th compas to xst o th Itrt. E-mal s a tchology that has th capacty to rach pottal customrs, to ralz th dpdc ad promoto stratgs wth th body of drct 31

2 Vol. 3, No. 12 Itratoal Joural of Busss ad Maagmt marktg systm. Ths study s tdd to classfy ad valuat th drct marktg applcatos o th Itrt wth a fuzzy a cogtv mappg mthod. 2. Drct marktg Th us of catalogus for marktg of books Vc 1498 ad th maagmt of ordrs drctly by mal ar amog th arlst xampls of drct marktg (Odabaı & Oyma, 21, pp. 33). Drct marktg s frst troducd by Motgomry Ward 1884 ad cotud by Sars Shrma 1897 ad by Spgl catalogus 195. Aftr Spgl, th actvts of th book club foudd by Maxwll Sackhm ad Harry Shrma 1926 ar accptd as o of th arlst of data-basd marktg actvts basd o catalogus (Hughs, 196). Morovr, plastc crdt cards dvlopd by th Dr s Club ad Amrca Exprss th 195s allowd ordrs by mal, cotrbutg cosdrably to drct marktg by mal. Accordg to Odabaı & Oyma (21, pp ), drct marktg cluds four basc pots. Frstly, drct marktg s a tractv marktg systm. Ths tracto s ralzd btw th orgazato ad clt, ad basd o mutual mssag dlvry. Scodly, rsposs to th clt s ablty to mov ar obtad by th ffct of drct marktg. Thrdly, drct marktg s usd through th agcy of advrtsmt mda. Ths pot allows a orgazato to rach a clt outsd of th sals vromt, ad thrfor, formato ad commucato tchologs ar rqurd. Th last pot s that rspos ad acto toward drct marktg attmpts ar masurd. Cosqutly, th rsults of drct marktg actos should b masurabl. Passavat (1984, pp. 7-9) o th othr had, xams drct marktg udr four ttls. Th frst s a rspos to advrtsg. I drct marktg, advrtsmt ams at sal ad ralzato of th sal. Ths cas s vry dffrt from gral advrtsmt maagmt. Thrfor, th advrtsmt to b appld to drct marktg should cota ough formato, as wll as motvat th clt. Th scod s th databas formato about th targt mass. I drct marktg, t s cssary to hav formato about th dmographc qualts ad buyg pottals of th mass to whch mssags wll b st. Th thrd s th masurabl advrtsmt practc. Masurg th rsults of th applcato mad drct marktg s possbl ad t s qualty that has a mportat strgth for plag ad stratgy dvlopg. Th last s th hgh cost. Ev though drct marktg sms to b mor costly tha svral othr marktg actvts, t has a mportat advatag that advrtsmts ad sals should b carrd out togthr (Nakp & Gdkl, 1996, pp. 3). Drct marktg s o of th mthods whrby a product s mad avalabl to th targt mass ad th mssag s prstd to hm/hr a propr way. Lttrs, brochurs, catalogus, wspaprs, magazs, tlphos, faxs, rados, tc. hav b usd as a drct marktg tool so far (Akaah t al., 1995, pp ). Today commucato tools basd o formato tchologs ar usd for ths purpos. E-mal ad SMS ca b rgardd as rct tchologs amog th commucato tools usd drct marktg. O th othr had, drct marktg s collctd sv groups accordg to th commucato tools; fac-to-fac sllg, marktg by mal, marktg by pho, drct-aswr TV marktg, catalogu marktg, kosk marktg ad ol marktg (Kotlr & Armstrog, 1998, pp. 512). I fac-to-fac sllg, th am s to motvat th xstg clt to buy ad th pottal clt to act. I marktg by mal, a suggsto, rmdg ot, aoucmt or smlar wrtg s st to popl wth fxd addrsss whch ar dtrmd bforhad. Marktg by pho, th thrd group, s tdd to rach th targt clt by mas of th trad marktg prsol. I drct-aswr tlvso marktg, gv a ordr ad w tchqus ar usd. Th ffth s marktg by catalogu. I ths kd of marktg, product s catalogu s dstrbutd ad st to th rgo whr a crta mass of cosumrs lv ad to th pr-dtrmd addrsss. Kosk marktg uss machs whch ar locatd busy placs, such as arports ad stors, ordr to gv formato ad tak ordrs. Th last s ol marktg, whch s accptd as th last stp drct marktg today. Today ol marktg s dvdd two groups; marktg ovr th wb ad -mal marktg. 3. Mthodology of th rsarch ad th fdgs May factors ar tak as modls th vstgatos drct marktg o th Itrt. Thr ar also lots of studs about what th factors drct marktg o th Itrt s. Plty of rsarch trst of th studs s cludd wb (Roxas t al., 2; Karso & Korgaokar, 21; Tapp, 22; Hussa & Prttula, 26; Bar & Brow, 27) although th Itrt s ot oly wb but also -mal. Just th rght umbr of th studs cotas both wb ad -mal spt of usortd (Mhta & Svadas, 1995; Mhta t al. 1996; Dolcar & Jordaa, 27). Covrsly, th Itrt brgs som gatv factors lk spam ad vrus (Murphy & Massy, 22; Mormoto & Chag, 26; Marova t al., 26) Th objctv of th prst study s to classfcato ad to valuat drct marktg applcatos coductd o th Itrt. To ralz ths targt, a fuzzy cogtv mappg mthod, as a quattatv mthod, has b usd. 3.1 Cogtv Mappg Mthod Cogtv maps gud th dvdual or group s bhavor, thus bcomg th pctur of th rlatoshps btw 32

3 Itratoal Joural of Busss ad Maagmt Dcmbr, 28 thoughts ad vts a systmatc fram (Chadra & Nwburry, 1997). Cogtv mappg mthod, th root of whch s basd o th Graph Thory formulatd by Eulr 1736, s matad by Axlrod (1976) as a structur that xams complx socal rlatoshps. Ths s a mthod that s usd to modl th complx systms dfg th caus-ad-ffct rlatoshps btw thr compots. Thrfor, th mthod has b usd svral socal ad tchcal sccs (Özsm, 1999). Cogtv maps ar composd of varabls ad causal rlatoshps (Axlrod, 1976). Each varabl s lkd to o aothr by postv or gatv sgs th map. Aothr stp of th procss of cogtv mappg s th prparato of bary comparso matrx. Each varabl that forms th matrx ths stag s compard wth o aothr accordg to causal rlatoshps (Ed, 1988). I th fuzzy cogtv maps, th valus th trval [, 1] ar usd, dpdg o th strgth of affctg btw th varabls. Fgur 1 cotas a xampl of th affctg schm of fuzzy cogtv map whr thr ar valus just btw, ad 1. Hr 1 affcts 3 ad 4 a postv way ad 2 ad 5 a gatv way. Morovr, 2 affcts 1 oly, ad thr ar o varabls by whch 3 s affctd. O th othr had, 4 affcts 5 a postv way but s affctd by 5 (gatv) ad by 1 (postv). Lastly, 5 affcts 4 (gatv) ad 2 (postv), whl 5 s affctd by 1 (gatv) ad 4 (postv). Formd dpdg o th xampl Fgur 1, E matrx s gv Equato Fgur 1. Structur of th schm of fuzzy cogtv map affctg +1 E x5 (1) 3.2 Dgr of Ctralty ad Coutg of Idx Valus Mathmatcal modlg Graph Thory s usd ths mthod, whch s also usd socal sccs, spcally stratgy dvlopg procsss. I ths modlg procss, coctvty dx - dsty (D), outdgr (od ), dgr (d ), total varabls ctralty dgr (c ) ad hrarchy dx (h) should b calculatd by usg th followg paramtrs (Çoba & Sçm, 25, pp ; Kadasamy & Smaradach, 23, pp.25-26; Özsm, 1999, pp ). A formula of th coctvty dx s gv Equato 2. Hr C shows th umbr of coctos, ad shows th umbr of varabls. C D (2) 2 I calculatg th ctralsm dgr of th varabls, th vctor (od ) s obtad from th sum of th l lmts of th E squar matrx Equato 3 ad th vctor (d ) s obtad from th sum of ts colum lmts ar usd. Th sum of ths two vctors lads to th vctor (c ) that shows th ctralty dgr of th varabls (Equato 6) (Özms & Özsm, 24, pp. 51). 33

4 Vol. 3, No. 12 Itratoal Joural of Busss ad Maagmt E =1,.., ; j=1,, (3) od j j1 d j j1 =1,.., (4) =1,.., (5) c od d =1,.., (6) To aalyz th hrarchcal faturs of th cogtv map, Equato 8 s cssary. Th hrarchy dx (h) s wth th trval [, 1]. If h=, th cogtv map s accptd as fully dmocratc ; f h=1, th cogtv map s accptd as fully hrarchcal (Özsm & Özsm, 24, 51; MacDoald, 1983). 34 od od od od 1 2 od 1 (7) 2 12 h od (8) Collctg th Data Whl collctg data, th partcpats wr rqustd to draw cogtv maps statg th factors affctg drct marktg o th Itrt. A focus study group cosstg of 7 partcpats composd of xprts was formal to dal wth th subjct of th study. To that d, attto has b pad to th fact that th mmbrs of th study group ths rsarch should b th acadmcas of marktg or th staff of a prvat sctor marktg dpartmt. 3.4 Fdgs Tabl 1 cotas th varabl (), cocto umbrs (C) ad cocto dx (D) of th dvdual cogtv maps amd for ach cogtv map. Dcso cogtv map s formd wth thr combato. As ca b s th tabl th avrag cocto dx, (th dsty valu of th dvdual cogtv maps) s foud as,645 ad th cocto dx of th dcso cogtv map s foud to b,64. Tabl 1. Dsty data Maps Varabl N Cocto C Dsty D Idvdual Cogtv Maps Numbr of maps 7 7 Total 3 83 Avrag 4,286 11,857,645 Stadard rror,565 2,314 Stadard dvato 1,496 6,122 Dcso Cogtv Map 5 16,64 Fgur 2 prsts th dcso cogtv map. Th map shows 5 varabls ad 16 coctos. Th frst of th varabls s -mal, th scod s th malg lsts also kow as lstsrv (or lsts), th thrd s spam&vruss, th fourth ar wb sts ad th ffth ar forums. Th matrx that rprsts ths map s gv Equato 9. Th calculatos mad to aalyz th hrarchcal valu of th cogtv map hav yldd to th valu of h as h=,264. Ths fdg suggsts that th cogtv map s closr a dmocratc structur. 2

5 Itratoal Joural of Busss ad Maagmt Dcmbr, 28 1,4,2 5,7 -,3 -,2,7 -,2 2,2 -,3 1 - E-mal 2 - Lsts 3 - Spam - vrus 4 - Wb 5 - Forums,2 4,3 -,4 -,2 3,3,2 -,2 Fgur 2. Dcso cogtv map As ca b s, -mal affcts th lsts a postv way ad th lsts affct th -mal th sam way. A smlar cas s vald btw th -mal ad wb tools. Both affct ach othr ad thus drct marktg o th Itrt a postv way. Howvr, -mal affcts th spam applcatos a postv way, whl spam applcatos affct th -mal a gatv way. I cotrast, th lsts affct spam&vruss a postv way, whl spam&vruss affct th lsts a gatv way. I addto, thr s a rvrs tracto btw th lsts ad forums. Smlarly, thr s a rvrs tracto btw spam&vruss ad wb applcatos. Fally, a postv tracto btw th wb ad forums has b foud.,2 E,2,4,7,3,2,2,3,2,4,2,3,2,2,3, od=,529 h=,264 (9) Matrx E Equato 9 s composd of th bary comparso valus of th varabls. Ctralsm vctor (c ), whch s qual to th sum of th l ad colum vctor of th matrx, s gv Equato 1. Accordg to ths fdgs, thr ar four drct marktg tools us o th Itrt. Ths ar -mal (1,7), wb (1,2), lsts (,5) ad forums (,2), rspctvly. Spam&vruss (-,8) ar also dtrmd as factors whch affct th drct marktg applcatos o th Itrt a gatv way. c 1,7,5,8 1,2,2 7 X1 (1) 4. Dscusso ad Rsults Th factors affctg drct marktg applcatos o th Itrt as a rsult of th fuzzy cogtv mappg mthod ca b dvdd to two groups, th frst o s postv ad th othr o s gatv. Postv factor tools ar -mal, lsts, wb ad forums. Th gatv os ar spam&vruss. Fgur 3 gvs ths classfcato vsually. 35

6 Vol. 3, No. 12 Itratoal Joural of Busss ad Maagmt FACTOR 36 Fgur 3. Drct marktg applcato factors o th Itrt Th frst of th drct marktg tools o th Itrt s -mal. Today -mal has a bg rol drct marktg applcatos bsds bg a ma of commucato oft prfrrd by orgazatos. Ay mssag ca b asly st to ay rmot part of th world a vry short tm. I a study mad o adults togthr wth th ClckZ rsarch frm, Burs (25) statd that 77 prct of th Itrt usrs rfr to ad us -mal. Lsts ar th way whch -mal systms ar usd collctvly a shard platform. Th dvduals, groups ad orgazatos that ar trstd a shard topc ca, by usg ths tool, commucat wth o aothr. Lsts hav two dffrt qualts that ar tractv two-way lsts ad o-way lsts. I tractv two-way lsts modl, whch ar also calld -mal groups, ay mssag st by ay mmbr of th group s dlvrd to all th mmbrs. O-way lst modl, howvr, s basd o systm whrby th procss of sdg s ralzd by th o/os authorzd. I short, th systm s a structur whch thr ar mor rcvrs whl th sdr s just a sgl o (Hasloglu, 27, pp. 65). I marktg applcatos by -mal ad lsts, data bass whch ar th supportrs of drct marktg ar vry harmoous. It s possbl to ralz at a vry low cost th applcatos, such as fdbacks, rachg th clt, succss lvls ad masurmt (Rzz, 21, pp. 58). Othr drct marktg tools o th Itrt ar wb applcatos. Th wb s a dal trfac that trasfrs to th usr ay kd of formato. Ths tool scurs trasto to othr pags f ay word or word group or symbol a pag s tractv. Accordg to Cybr Atlas (cybratlas.com), a rsarch frm, th umbrs of th tlpho usrs rach 1.. wth 38 yars whl ths prod was oly 3 yars for wb usrs. Such a fast sprad of th us of wb guds th practtors of drct marktg. Th frms that spcally coduct th B2C trad modl today hav dsgd thr wb sts accordac wth th drct marktg ad data-basd marktg stratgs. Th applcatos of Amazo (amazo.com), whch maks tslf hard all ovr th world by sllg books o th Itrt, ar amog th xampls to b gv ths subjct. Amazo follows ad stors ts data bas th rsarch mad by ts clts about ts products, amly th bhavor of usrs of th st. I ths way, spcal ca b offrd to th clts so that thy ca buy th products thy ar most trstd. Th systm mployd by Amazo ca coduct ths procss momtarly ad masur th fdback. Forums ar also amog th postv factors affctg drct marktg applcatos o th Itrt. Not ulk th lsts, forums ar a platform whch th dvduals com togthr about a shard topc. Drct marktg applcatos ca b coductd ths platform though ot so dsly. Marktg maagrs grally us th forums to kp togthr thr pottal clts ad coduct masurabl applcatos to motvat thm to buy. Spam&vruss affct drct marktg o th Itrt a gatv way. Th us of -mal a umbr of applcatos, such as ulcsd advrtsmt mssags st dvdually or collctvly, formato to mslad ad trck, vrus-cotag softwar ad so o, s cosdrd to b spam. Accordg to Mcrosoft (mcrosoft.com), vruss ar th softwar that hdr th rug of computrs, rcord or dlt or dstroy th data, or sd thmslvs to othr computrs va th Itrt, thus causg dclrato or som othr problms thos computrs. As spam&vruss damag th usrs, thy may b abl to prvt th dvlopmt of drct marktg applcatos o th Itrt. Rfrcs Akaah, I.P., Korgaokar, P.K., & Lud, D. (1995). Drct Marktg Atttuds. Joural of Busss Rsarch, 34(3),

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