Ch. 7


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  • TA 17-3 Web Stats 1. Information technology such as the types listed on the acetate have only been available to consumers since 1994. How far do you think such technology will progress in 10 years? 2. FAX machines for office use were introduced in 1986 at an average cost of $25,000. How quickly has that technology been embraced and ultimately reduced prices? 3. WSJ 8-03 according to All time Net searches Kobe sites that Yahoo lists include. www.,,,
  • NTIQ survey in 12-03 of 636 adults over age 18
  • 1. Can always regift. The Direct Mkt. Assn. says 20% of people who don’t want their gifts, give them to someone else.
  • 1. EBAY- founded by the supportive husband of a Pez dispenser collector. Built user base during Beanie Baby craze. Constantly tops Media Metrix’s rating of e-commerce sites. Has 10m registered users. In 2002 bought auctioneer Butterfield& Butterfield for high-end items and also has niche plays like e-bay motors, a collaboration with
  • TA 17-6 Most Important Web Site Characteristics 1. What is your greatest frustration has been while using the web? Do you have improvement suggestions?
  • Ch. 7

    1. 1. Chapter Seven Electronic Commerce
    2. 2. Functions of the Net <ul><li>Communication </li></ul><ul><ul><li>E-mail </li></ul></ul><ul><ul><li>Instant messaging </li></ul></ul><ul><li>E-commerce </li></ul><ul><ul><li>40% of b2c sites now profitable </li></ul></ul><ul><ul><li>B2b transactions lead the way </li></ul></ul><ul><li>Information </li></ul><ul><li>Entertainment </li></ul>
    3. 3. Web Statistics <ul><li>Average number of hours web users spend online in week = 4-5 </li></ul><ul><li>Percentage using e-mail frequently = 63 % </li></ul><ul><li>Percentage using the Web primarily for research = 39% </li></ul><ul><li>Percent shopping online = 31% </li></ul><ul><li>All-time Net searches as of 8-03 </li></ul><ul><ul><li>After 9/11, the Iraq war, Election 2000, Kobe Bryant </li></ul></ul>Source: CIO Web Business
    4. 4. B2C Online Purchases 2004 <ul><li>Security issues </li></ul><ul><li>3% of retail sales </li></ul><ul><li>#1: books,music,videos, #2 apparel, #3 travel </li></ul><ul><li>$63B loss in aborted online purchases </li></ul><ul><ul><li>52% of shopping carts are abandoned </li></ul></ul><ul><ul><li>Additional costs like shipping & long delivery times </li></ul></ul><ul><ul><li>Sites asking for too much info. </li></ul></ul><ul><ul><li>Lack of product info. </li></ul></ul>
    5. 5. ChickClicks <ul><li>Females – 51% on online users (2003) </li></ul><ul><li>Like AOL, MSN, Yahoo, iVillage, On Health, Oxygen Media </li></ul><ul><li>Seek ease of use & help making lives more efficient & productive </li></ul><ul><ul><li>Men spend more time to download software and to make upgrades </li></ul></ul><ul><li>Female-oriented sites </li></ul><ul><ul><li>Smart, sassy, progressive </li></ul></ul><ul><ul><li>More than just a pink banner </li></ul></ul><ul><ul><li>Spend 2 hrs. less than men online </li></ul></ul><ul><ul><li>Contests, promos & giveaways </li></ul></ul><ul><ul><li>Multiple channels of typical women’s topics plus more serious topics </li></ul></ul>
    6. 6. Measuring Effectiveness <ul><li>Only 15% of large companies use web to generate revenue </li></ul><ul><li>Conversion rate </li></ul><ul><ul><li>Percent of site visitors who make a purchase. </li></ul></ul><ul><ul><li>3-5% is average </li></ul></ul><ul><li>Click-through rates </li></ul><ul><ul><li>Percent of people presented with Web banner ad who click it </li></ul></ul><ul><ul><li>Half of 1 percent (1-2% for direct mail) </li></ul></ul>
    7. 7. Web Shopping Guidelines <ul><li> </li></ul><ul><ul><li>1-877-FTC-HELP (1-877-382-4357) </li></ul></ul><ul><ul><li>The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel , a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad. </li></ul></ul><ul><li> </li></ul><ul><ul><li>The DMA ConsumerLine Direct Marketing Association 1111 19th Street, NW, Suite 1100 Washington, DC 20036-3603 202.955.5030 [email_address] </li></ul></ul>
    8. 8. FTC Tips <ul><li>Be wary of extravagant claims about performance or earnings potential. Get all promises in writing and review them carefully before making a payment or signing a contract. </li></ul><ul><li>Read the fine print and all relevant links. Fraudulent promoters sometimes bury the disclosures they're not anxious to share by putting them in teeny-tiny type or in a place where you're unlikely see them. </li></ul><ul><li>Look for a privacy policy. If you don't see one - or if you can't understand it - consider taking your business elsewhere. </li></ul><ul><li>Be skeptical of any company that doesn't clearly state its name, street address and telephone number. Check it out with the local Better Business Bureau, consumer protection office or state Attorney General. </li></ul>
    9. 9. Online Retailers <ul><li>Ebay-online auction </li></ul><ul><li>Amazon </li></ul><ul><li>Travelocity </li></ul><ul><li>TOYSRUS </li></ul><ul><li>Dell </li></ul><ul><li>CDNow </li></ul>
    10. 10. Most Important Web Site Characteristics <ul><li>Site is updated frequently </li></ul><ul><li>Links to other relevant sites </li></ul><ul><li>Easy to find what you are looking for </li></ul><ul><li>Site responds quickly to inquiries </li></ul><ul><li>Site downloads quickly </li></ul>Source: Yankolovich Partners