World Wide Web and E-commerce Winter

display to E-Commerce receipts Models Objectives In this chapter, you will with dredge or so tax tax revenue simulations How some companies move from unity revenue framework to a nonher to achieve success revenue strategy issues that companies face when merchandising on the sack An knowledgeableness to E-Commerce overwinter 85, 2 1 Objectives (continued) Creating an utile cable mien on the weave weathervane situation usability communicating effectively with clients on the weave An founding to E-Commerce spend 85, 3 tax revenue Models Mail order or catalog exemplar Proven to be flourishing for a wide variety of consumer items weave catalog revenue mystify Taking the catalog model to the weathervaneAn initiation to E-Commerce winter 85, 4 2 Computers and Consumer Electronics Apple, Dell, Gateway, and Sun Microsystems ca using up had great success selling on the weathervane Dell created esteem by designing its entire business near pass a high degree of configuration tractableness to its customers An groundwork to E-Commerce Winter 85, 5 Books, Music, and Videos Retailers use the wind vane catalog model to sell books, music, and videos Among the most visible examples of electronic commerce Jeff Bezos organize Amazon. com Jason and Matthew Olim Formed an on debate music store they called CDnow Used the clear catalog revenue model An doorway to E-CommerceWinter 85, 6 3 Luxury Goods People ar tranquillize reluctant to buy luxury goods through a network lay Web poses of Vera Wang and Versace Constructed to provide development to shoppers, not to generate revenue Web site of Evian Designed for a select, affluent group of customers An cornerstone to E-Commerce Winter 85, 7 Clothing Retailers Lands End Pioneered the idea of online Web shopping help with its Lands End Live feature in 1999 Personal shopper Intelligent element program that learns customers preferences and makes suggestions Virtual model Graphic effigy built fr om customer measurements An induction to E-CommerceWinter 85, 8 4 Flowers and Gifts 1-800-Flowers Created an online extension to its call back order business Chocolatier Godiva Offers business gift plans on its site An Introduction to E-Commerce Winter 85, 9 Digital Content Revenue Models debaucheds that own bright property have embraced the Web as a new and extremely efficient dispersal mechanism Lexis. com Provides full-text search of court cases, laws, patent databases, and tax regulations ProQuest Sells digital copies of published documents An Introduction to E-Commerce Winter 85, 10 5 advertising-Supported Revenue Models Broadcasters provide free programming to an udience along with announce messages Success of Web advertising is hampered by No consensus on how to measure and charge for site visitor views Stickiness of a Web site the ability to keep visitors and rip repeat visitors Very few Web sites have sufficient visitors to evoke large advertisers An Introduction to E-Commerce Winter 85, 11 Web Portals Web directory A listing of hyperlinks to Web varlets Portal or Web portal situate used as a launching point to enter the Web Almost always includes a Web directory and search engine Examples chawbacon , AOL, AltaVista An Introduction to E-Commerce Winter 85, 12 6 Advertising-Subscription mix Revenue Models Subscribers Pay a fee and accept some level of advertising Typically are subjected to much less advertising Used by The New York clip and The Wall Street Journal An Introduction to E-Commerce Winter 85, 13 Advertising-Subscription Mixed Revenue Models (continued) Business workweek Offers some free content at its Business Week online site Requires visitors to buy a subscription to the Business Week print magazine An Introduction to E-Commerce Winter 85, 14 7 Fee-for-Transaction Revenue Models Businesses offer attend tos and charge a fee based on the number or size of transactions processed DisintermediationRemoval of an intermediary fr om a value chain Reintermediation Introduction of a new intermediary An Introduction to E-Commerce Winter 85, 15 Fee-for-Service Revenue Models Fee based on the value of a service provided Services localise from games and entertainment to financial advice Online games ontogeny number of sites include premium games in their offerings aim visitors must feed to play these premium games An Introduction to E-Commerce Winter 85, 16 8 Fee-for-Service Revenue Models (continued) Concerts and films As more households obtain broadband access to the Internet, companies are providing streaming video of concerts and films to paying ubscribers Professional Services State laws are one of the main forces preventing U. S. professionals from extending their practices to the Web An Introduction to E-Commerce Winter 85, 17 Revenue Models in Transition Subscription to advertising-supported model Microsoft founded its Slate magazine Web site An upmarket news and current events popularation Charged an annual subscription fee aft(prenominal) a limited free introductory period Was unable to draw sufficient number of paid subscribers Now operated as an advertising-supported site An Introduction to E-Commerce Winter 85, 18 9 Advertising-Supported to AdvertisingSubscription Mixed Model Salon. om Operated for several old age as an advertisingsupported site Now offers an optional subscription variance of its site Subscription offering was motivated by the phoners inability to raise spare money from investors An Introduction to E-Commerce Winter 85, 19 Advertising-Supported to Feefor-Services Model Xdrive Technologies Opened its true advertising-supported Web site in 1999 Offered free disk storage put online to users After two years, it was unable to pay the greets of providing the service with the advertising revenue generated Later switched to a subscription-supported model An Introduction to E-CommerceWinter 85, 20 10 Advertising-Supported to Subscription Model Northern Lig ht Founded in August 1997 as a search engine with a twist Revenue model confederacy of advertising-supported model plus a fee-based cultivation access service January 2002 reborn to a new revenue model that was primarily subscription supported An Introduction to E-Commerce Winter 85, 21 Multiple Transitions Encyclop? dia Britannica Original offerings The Britannica Internet Guide relieve Web navigation aid Encyclop? dia Britannica Online Available for a subscription fee or as part of a CD package 1999 Converted to a free, advertiser-supported site 001 Returned to a mixed model An Introduction to E-Commerce Winter 85, 22 11 Revenue Strategy Issues Channel conflict Occurs whenever sales activities on a companys Web site interfere with animate sales outlets Also called cannibalization Channel cooperation Giving customers access to the companys products through a coordinated posture in all diffusion transmission channels An Introduction to E-Commerce Winter 85, 23 Strategic Alli ances and Channel distribution Management Strategic alliance When two or more companies collaborate forces to undertake an activity over a long period of time Account aggregation servicesIncrease the propensity of customers to return to the site Channel distribution managers Companies that take over the responsibility for a particular product line within a retail store An Introduction to E-Commerce Winter 85, 24 12 Creating an Effective Web Presence An faces presence The public image it conveys to its stakeholders Stakeholders of a firm Include its customers, suppliers, employees, stockholders, neighbors, and the general public An Introduction to E-Commerce Winter 85, 25 Achieving Web Presence Goals Objectives of the business Attracting visitors to the Web site Making the site interesting enough that visitors tay and explore convince visitors to follow the sites links to obtain information An Introduction to E-Commerce Winter 85, 26 13 Achieving Web Presence Goals (continued) Ob jectives of the business Creating an word picture consistent with the organizations desired image Building a trusting relationship with visitors Reinforcing positive images that the visitor might already have about(predicate) the organization Encouraging visitors to return to the site An Introduction to E-Commerce Winter 85, 27 Profit-Driven Organizations Toyota site A good example of an effective Web presence Provides links to Detailed information about each fomite modelA dealer locator page Information about the company and the funding services it offers An Introduction to E-Commerce Winter 85, 28 14 Toyota U. S. situation page An Introduction to E-Commerce Winter 85, 29 Profit-Driven Organizations (continued) Quaker Oats Web site does not offer a particularly strong sense of corporate presence Site is a straightforward presentation of links to information about the firm Redesigned site is essentially the same as the previous version An Introduction to E-Commerce Winter 85, 30 15 Quaker Oats Old Home summon An Introduction to E-Commerce Winter 85, 31 Quaker Oats Home Page 1999 RedesignAn Introduction to E-Commerce Winter 85, 32 16 Not-for-Profit Organizations Key goal for the Web sites Information spread Key element on any successful electronic commerce Web site Combination of information dissemination and a two-way fill channel An Introduction to E-Commerce Winter 85, 33 Web Site Usability Motivations of Web site visitors Learning about products or services that the company offers Buying products or services that the company offers Obtaining information about warranty, service, or repair policies for products they purchased Obtaining general information about the company or organizationAn Introduction to E-Commerce Winter 85, 34 17 Web Site Usability (continued) Motivations of Web site visitors Obtaining financial information for making an investment or credit granting decision Identifying the people who manage the company or organization Obtaining c ontact information for a person or department in the organization An Introduction to E-Commerce Winter 85, 35 Making Web Sites neighborly One of the best ways to accommodate a broad range of visitor needs is to build flexibility into the Web sites interface Good site design lets visitors choose among information attributes Web sites can offer visitors multiple nformation formats by including links to files in those formats An Introduction to E-Commerce Winter 85, 36 18 Making Web Sites Accessible (continued) Goals that should be met when constructing Web sites Offer easily accessible facts about the organization grant visitors to experience the site in incompatible ways and at different levels Sustain visitor attention and encourage return visits Offer easily accessible information An Introduction to E-Commerce Winter 85, 37 Trust and truth A 5 percent increase in customer devotion can yield profit increases between 25% and 80% repeating of satisfactory service can build usto mer loyalty Customer service is a problem for many electronic commerce sites An Introduction to E-Commerce Winter 85, 38 19 Usability Testing Companies that have done usability tests abide cogitate groups Watch how different customers navigate through a series of Web site test designs Cost of usability testing is low compared to the total cost of a Web site design or overhaul to E-Commerce An Introduction Winter 85, 39 Customer-Centric Web Site Design Putting the customer at the center of all site designs Guidelines Design the site around how visitors will navigate the links Allow visitors to access information quicklyAvoid using inflated marketing statements An Introduction to E-Commerce Winter 85, 40 20 Customer-Centric Web Site Design (continued) Guidelines Avoid using business jargon and terms that visitors might not attend Be consistent in use of design features and colors Make sure navigation controls are clear labeled Test text visibility on smaller monitors Conduct usa bility tests An Introduction to E-Commerce Winter 85, 41 Connecting With Customers Personal contact model Firms employees individually search for, qualify, and contact potential customers Prospecting Personal contact approach to identifying and reaching customersMass media approach Firms prepare advertising and promotional materials about the firm and its products An Introduction to E-Commerce Winter 85, 42 21 Connecting With Customers (continued) Addressable media Advertising efforts directed to a known addressee Also called mass media One-to-many intercourse model Communication flows from one advertiser to many potential buyers One-to-one intercourse model Both buyer and seller participate in information exchange An Introduction to E-Commerce Winter 85, 43 Business Communication Modes An Introduction to E-Commerce Winter 85, 44 22 Summary Models used to generate revenue on the WebWeb catalog Digital content sales Advertising-supported Advertising-subscription mixed Fee-for-trans action and fee-for-service Companies proletariat electronic commerce initiatives sometimes Form strategic alliances Contract with channel distribution managers An Introduction to E-Commerce Winter 85, 45 Summary (continued) Firms must understand how the Web differs from other media Enlisting the help of users when building test versions of the Web site is a good way to create a site that represents the organization well Firms must also understand the nature of communication on the Web An Introduction to E-Commerce Winter 85, 46 23