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9781423903055 ppt ch03


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  • 1. Electronic Commerce Eighth Edition Chapter 3 Selling on the Web: Revenue Models and Building a Web Presence
  • 2. Learning Objectives
    • In this chapter, you will learn about:
    • Revenue models
    • How some companies move from one revenue model to another to achieve success
    • Revenue strategy issues that companies face when selling on the Web
    • Creating an effective business presence on the Web
    • Web site usability
    • Communicating effectively with customers on the Web
    Electronic Commerce, Eighth Edition
  • 3. Revenue Models
    • Web business revenue generating models
      • Web catalog
      • Digital content
      • Advertising-supported
      • Advertising-subscription mixed
      • Fee-based
    • Can work for both sale types
      • Business-to-consumer (B2C)
      • Business-to-business (B2B)
    • Can work with one Web site, separate sites, or separate pages
    Electronic Commerce, Eighth Edition
  • 4. Web Catalog Revenue Models
    • Adapted from traditional catalog-based model
      • Seller established brand image
      • Sold through printed information
        • Mailed to prospective buyers
    • Web sites expand traditional model
      • Replace or supplement print catalogs
      • Offer flexibility
        • Order through Web site or telephone
        • Payment though Web site, telephone, or mail
    • Creates additional sales outlet
    Electronic Commerce, Eighth Edition
  • 5. Web Catalog Revenue Models (cont’d.)
    • Computers and consumer electronics
      • Apple, Dell, Gateway, Hewlett-Packard, IBM, Sun Microsystems
        • Sell full range of products
      • Dell
        • Allows product configuration; creates value
      • Crutchfield and The Sharper Image
        • Successful mail order expansion includes Web sites
      • Best Buy, Circuit City, J&R Music World, Radio Shack
        • Successful retail store presence expansion
        • Sell same products
    Electronic Commerce, Eighth Edition
  • 6. Electronic Commerce, Eighth Edition
  • 7. Web Catalog Revenue Models (cont’d.)
    • Books, music, and videos
      • Most visible electronic commerce examples
      • Web-only retailer
        • Originally sold only books
      • Barnes & Noble, Blackwell’s, Books-A-Million, Powell’s Books
        • Well-established physical book stores
      • CDnow Web-only online music store
      • Tower Records, Sam Goody retail stores
        • Created Web sites to compete with CDnow
      • CD Universe copied CDnow approach
    Electronic Commerce, Eighth Edition
  • 8. Electronic Commerce, Eighth Edition
  • 9. Web Catalog Revenue Models (cont’d.)
    • Luxury goods
      • Clientele reluctant to buy through Web
      • Vera Wang and Versace
        • Web sites provide information
        • Shopper purchases at physical store
        • Heavy use of graphics and animation
      • Evian
        • Uses flash animation
      • Tiffany & Co
        • Graphics and animation require broadband connection
    Electronic Commerce, Eighth Edition
  • 10. Web Catalog Revenue Models (cont’d.)
    • Clothing retailers
      • Adapt catalog sales model to Web
      • Display clothing photos
        • Prices, sizes, colors, tailoring details
      • Customers examine clothing online
        • Place orders through Web site
      • Lands’ End online Web shopping assistance
        • Lands’ End Live (1999)
      • Text chat and call-back features
      • Lands’ End personal shopper agent (more recent)
        • Learns preferences and makes suggestions
    Electronic Commerce, Eighth Edition
  • 11. Web Catalog Revenue Models (cont’d.)
    • Clothing retailers (cont’d.)
      • My Virtual Model (customers try clothes)
        • Graphic image built from customer measurements
      • Lands’ End
        • Two shoppers using different computers
        • Simultaneously browse Web site together
      • Online overstocks stores
        • Reaches more people than physical store
      • Problem with varying computer monitor color settings
        • Send fabric swatch on request
        • Offer generous return policies
    Electronic Commerce, Eighth Edition
  • 12. Web Catalog Revenue Models (cont’d.)
    • Flowers and gifts (gift retailers)
      • 1-800-Flowers
        • Online extension to successful telephone business
        • Competes with online-only florists
      • Godiva
        • Offers business gift plans
      • Hickory Farms and Mrs. Fields Cookies
        • Offer familiar name brands on Web
      • Harry and David
        • Original Web site for informational purposes
        • Promoted catalog business
        • Added online ordering feature
    Electronic Commerce, Eighth Edition
  • 13. Web Catalog Revenue Models (cont’d.)
    • General discounters (completely new businesses)
      • Buy.Com
        • Borrowed Wal-Mart and discount club sales model
      • Many sites sold advertising (originally)
        • Subsidized extremely low prices
        • Most sites now out of business
      • Rely on volume purchasing strategy (now)
        • Keeps prices low
      • Fiercely competitive (thin margins: little profits)
      • Traditional discount retailers
        • Costco, Kmart, Target, Wal-Mart
        • Slow to introduce electronic commerce Web sites
    Electronic Commerce, Eighth Edition
  • 14. Digital Content Revenue Models
    • Highly efficient distribution mechanism
      • Firms own written information or information rights
    • LexisNexis: variety of information services
    • traditional research product
    • ProQuest: sells published documents’ digital copies
    • Dow Jones newspaper publisher subscriptions
      • Digitized newspaper, magazine, and journal content
    • Association for Computer Machinery: digital library
    • Sellers of adult digital content
      • Pioneered online credit card payment processing
    Electronic Commerce, Eighth Edition
  • 15. Advertising-Supported Revenue Models
    • United States network television
      • Provides free programming and advertising messages
        • Supports network operations sufficiently
    • Site visitor views problem (measuring and charging)
      • Stickiness
        • Keeping visitors at site and attracting repeat visitors
        • Exposed to more advertising in sticky site
    • Obtaining large advertiser problem
      • Demographic information
        • Characteristics set used to group visitors
    Electronic Commerce, Eighth Edition
  • 16. Advertising-Supported Revenue Models (cont’d.)
    • Successful sites attract specific groups
      •, HowStuffWorks, Drudge Report
    • Web portals
      • Yahoo!
        • First Web directory
        • Search engine results presented on separate page
        • Search term triggered advertising
      • Main portal sites (AOL, Excite, Google, MSN)
      • Smaller general-interest sites (
        • More difficulty attracting advertisers
        • C-NET (offers items to a specialized group)
    Electronic Commerce, Eighth Edition
  • 17. Advertising-Supported Revenue Models (cont’d.)
    • Newspaper publishers
      • Publish print content on Web
      • Internet Public Library Online Newspapers page
        • Links to worldwide newspaper sites
      • Newspaper’s Web presence
        • Provides greater exposure and advertising audience
        • Print edition sales loss (difficult to measure)
        • Operating costs not covered by advertising revenue
    Electronic Commerce, Eighth Edition
  • 18. Advertising-Supported Revenue Models (cont’d.)
    • Targeted classified advertising sites
      • More successful at generating adverting revenue
      • Web site profit potential
        • Specialize in classified advertising
      • Web employment advertising (
        • Web directory and search engine advertising approach
        • Topics of interest; short articles (increases stickiness)
    Electronic Commerce, Eighth Edition
  • 19. Electronic Commerce, Eighth Edition
  • 20. Advertising-Supported Revenue Models (cont’d.)
    • Targeted classified advertising sites (cont’d.)
      • Used vehicle sites
        • Accepts paid advertising and charge listing fee
        • Seller ad options: Web site only, print version inclusion
      • Dedicated following product sites (VetteFinders)
        • Caters to small audiences
      • Product sites useful to buyer after use
        • Musicians Buy-Line ,, The Golf Classifieds
    Electronic Commerce, Eighth Edition
  • 21. Advertising-Subscription Mixed Revenue Models
    • Subscribers
      • Pay fee and accept advertising
      • Typically less advertising
        • Compared to advertising-supported sites
    • Web sites offer different degrees of success
      • The New York Times (today)
        • Bulk of revenue derived from advertising
      • The Wall Street Journal (mixed model)
        • Subscription revenue weighted more heavily
      • Print edition and online editions
        • Different model versions
    Electronic Commerce, Eighth Edition
  • 22. Advertising-Subscription Mixed Revenue Models (cont’d.)
    • The Washington Post , Los Angeles Times
      • Mixed revenue model variation
        • No subscription fee charges
        • Current stories free
        • Pay for archived articles
    • Business Week
      • Mixed revenue model variation
        • Free content at online site
        • Requires paid subscription to print magazine
        • Archived article additional charge (over five years old)
    Electronic Commerce, Eighth Edition
  • 23. Advertising-Subscription Mixed Revenue Models (cont’d.)
    • ESPN
      • Leverages brand name from cable television business
      • Sells advertising, offers free information
      • Collects Insider subscriber revenue
    • Consumers Union (
      • Subscriptions and charitable donations
      • Not-for-profit organization
        • No advertising
      • Free information
        • Attracts subscribers and fulfills mission
    Electronic Commerce, Eighth Edition
  • 24. Fee-for-Transaction Revenue Models
    • Service fee based on transaction number or size
    • Web site offers visitor personal service
      • Formerly, human agents provided service
    • Value chain
      • Disintermediation
        • Intermediary (human agent) removed
      • Reintermediation
        • New intermediary (fee-for-transaction Web site) introduced
    Electronic Commerce, Eighth Edition
  • 25. Fee-for-Transaction Revenue Models (cont’d.)
    • Travel agents
      • Receive fee for initiating transaction
      • Replaced by computers
    • Online travel agents
      • Saber system (Travelocity)
      • Expedia,, Hotel Discount Reservations
        • All profitable
      • Orbitz
        • Five major U.S. airlines consortium
        • Generates advertising revenue
    Electronic Commerce, Eighth Edition
  • 26. Electronic Commerce, Eighth Edition
  • 27. Fee-for-Transaction Revenue Models (cont’d.)
    • Travel agents (cont’d.)
      • Traditional travel agents being squeezed out
        • Reduced or eliminated fees
      • Smaller travel agents specializing (cruises, hotels)
      • Reintermediation strategy
        • Travel agents focus on groups
      • Cruise Web sites
        •, Cruise Specialists
      • Group travel Web sites
        •, WannaSurf
    Electronic Commerce, Eighth Edition
  • 28. Fee-for-Transaction Revenue Models (cont’d.)
    • Automobile sales
      • Web site removes salesperson negotiation
        • Reduces costs
        • Provides buyers information service
      • model
        • Customers select specific car, site determines price and finds local dealer
      • and Autobytel model
        • Site locates local dealers, car sells at small premium over dealer’s nominal cost
      • Car salesperson disintermediated
      • Web site: new intermediary (reintermediation)
    Electronic Commerce, Eighth Edition
  • 29. Fee-for-Transaction Revenue Models (cont’d.)
    • Stockbrokers
      • Charge customers trade execution commission
      • Web-based brokerage firms (E*TRADE and Datek)
        • Offer investment advice, fast trade execution
        • Creates competition
      • Discount brokers and full-line brokers
        • Web sites opened for stock trading and information
        • Transaction cost reductions (like online auto buying)
        • Stockbrokers disintermediated
    Electronic Commerce, Eighth Edition
  • 30. Fee-for-Transaction Revenue Models (cont’d.)
    • Insurance brokers
      • Quotesmith
        • Internet policy price quotes direct to public (1996)
        • Independent insurance agents disintermediated
      • Insurance policy information, comparisons, sales sites
        • InsWeb, Answer Financial,,
      • Progressive Web site
        • Provides quotes for competitors’ products too
      • Major insurance company Web sites
        • Offer information or policies for sale
    Electronic Commerce, Eighth Edition
  • 31. Electronic Commerce, Eighth Edition
  • 32. Fee-for-Transaction Revenue Models (cont’d.)
    • Event tickets
      • Event promoters use Web
        • Ticketmaster,, TicketWeb
        • Sell original tickets
        • Customers reside anywhere worldwide
      • Secondary market tickets
        • StubHub , TicketsNow
        • Operate as brokers
        • Connect ticket owners with buyers
        • Reduce transaction costs
    Electronic Commerce, Eighth Edition
  • 33. Fee-for-Transaction Revenue Models (cont’d.)
    • Real estate and mortgage loan brokers
      • Web sites provide all traditional broker services
        • Coldwell Banker, Prudential
      • National Association of Realtors Web site
      • IndyMac Bank Home Lending
        • Offers online credit review, decision in minutes, printing approval letter
      • Successful Web mortgage brokers
        • Ditech and E-LOAN
    Electronic Commerce, Eighth Edition
  • 34. Electronic Commerce, Eighth Edition
  • 35. Fee-for-Transaction Revenue Models (cont’d.)
    • Online banking and financial services
      • No physical product
        • Easy to offer on Web
      • Web financial transactions concerns
        • Trust and reliability of financial institution
      • Solutions
        • Use existing bank’s identification and reputation (Citibank Online)
        • Start online bank not affiliated with existing bank (First Internet Bank of Indiana)
        • Use different name (Bank One used Wingspan)
    Electronic Commerce, Eighth Edition
  • 36. Fee-for-Transaction Revenue Models (cont’d.)
    • Online music
      • Amazon MP3, Apple’s iTunes, eMusic, Microsoft’s MSN Music, Napster, Rhapsody, Yahoo!, Music Downloads
      • Sell single songs (tracks) and albums
      • Sales revenue source
        • Fee-for-transaction model
        • Some sites offer subscription plans
    Electronic Commerce, Eighth Edition
  • 37. Fee-for-Transaction Revenue Models (cont’d.)
    • Online music (cont’d.)
      • Problems
        • Digital products easily copied
        • Stores promote own music file format
        • Buyers required to download and install software
        • Software limits number of audio file copies
        • Software does not prevent illegal copying
      • Solution
        • Adopting one standard file format
        • No copying restrictions
        • DRM-free MP3 format (Amazon)
    Electronic Commerce, Eighth Edition
  • 38. Online Video
    • Copying control
      • Use DRM software
    • Three issues hampering sales
      • Large file size
        • Reduced by higher Internet connection speeds
      • Fear of online sales impairing other sales types
        • Potential serial release pattern impact
      • Inability to play on variety of devices
        • DRM not platform compatible
    Electronic Commerce, Eighth Edition
  • 39. Fee-for-Service Revenue Models
    • Companies offer Web service
      • Fee based on service value
        • Not broker service
        • Not based on transactions-processed number or size
    • Online games
      • Sales revenue source
        • Advertising (older concept)
        • Pay-to-play premium games
        • Subscriptions
      • Frequent player demographics
        • 40% over age 35
    Electronic Commerce, Eighth Edition
  • 40. Fee-for-Service Revenue Models (cont’d.)
    • Professional services
      • Limited Web use
        • State laws prohibit extension of practice
        • Patients may set appointments
      • Major concern
        • Patient privacy
      • Significant barrier
        • Patient diagnosis difficult without physical examination
    Electronic Commerce, Eighth Edition
  • 41. Revenue Models in Transition
    • Need to change revenue model
      • When Web users’ needs change
    • Conditions after 2000
      • Funding became scarce
        • Unprofitable growth phase
      • Change model or go out of business
    Electronic Commerce, Eighth Edition
  • 42. Subscription to Advertising-Supported Model
    • Slate magazine (e-zine)
      • Upscale news and current events
    • Success expectations were high
      • Experienced writers and editors
      • Acclaim for incisive reporting and excellent writing
    • Initial revenue source
      • Annual subscription
        • Did not cover operating costs
    • Now an advertising-supported site
      • Part of MSN portal
        • Increases stickiness
    Electronic Commerce, Eighth Edition
  • 43. Advertising-Supported to Advertising-Subscription Mixed Model
      • Acclaim for innovative content
    • Initial revenue source
      • Advertising-supported site
      • Needed additional money to continue operations
        • Investors did not provide
    • Now offers optional subscription version
      • Annual fee for Salon premium
        • Free of advertising
        • Downloadable content
        • Additional content
    Electronic Commerce, Eighth Edition
  • 44. Advertising-Supported to Fee-for-Services Model
    • Xdrive Technologies
      • Free disk storage
    • Initial revenue source (1999)
      • Advertising-supported
        • Pages contained advertising
        • Targeted e-mail advertising
        • Did not cover operating costs
    • Now subscription-supported service
      • Monthly fee dropping
    • Other similar companies (IBackup and Kela)
    Electronic Commerce, Eighth Edition
  • 45. Advertising-Supported to Subscription Model
    • Northern Light
      • Search engine (includes own database)
        • Results include Web site links and abstracts
    • Initial revenue source
      • Combination (advertising-supported and fee-based)
        • Individual article payment
        • Search results page advertising
      • Did not cover operating costs
    • Now subscription model
      • Annual, large clients
    Electronic Commerce, Eighth Edition
  • 46. Multiple Transitions
    • Encyclopedia Britannica
      • Initial Web offerings
        • Britannica Internet Guide
        • Encyclopedia Britannica Online
    • Initial revenue source
      • Paid subscription site
        • Low subscription sales
      • Converted to free advertiser-supported site
        • Sold educational and scientific products
    • Returned to mixed model
      • Subscription plan and free content
    Electronic Commerce, Eighth Edition
  • 47. Electronic Commerce, Eighth Edition
  • 48. Revenue Strategy Issues
    • Implementations issues
      • Channel conflict and cannibalization
      • Strategic alliances and channel distribution management
      • Mobile commerce
    Electronic Commerce, Eighth Edition
  • 49. Channel Conflict and Cannibalization
    • Channel conflict (cannibalization)
      • Company Web site sales activities interfere with existing sales outlets
    • Retail distribution partner issues
      • Levis: stopped selling products on company Web site
        • Site now provides product information
      • Maytag: incorporated online partners into Web site
        • Site now provides product information
      • Eddie Bauer
        • Online purchases returnable at retail stores
        • Required compensation and bonus plans adjustments to support Web site
    Electronic Commerce, Eighth Edition
  • 50. Strategic Alliances and Channel Distribution Management
    • Strategic alliance
      • Two or more companies join forces
        • Undertake activity over long time period
      • Joining Web sites with channel distribution management firms
    • Yodlee
      • Relationship with portal site clients
      • Joined with Target, Borders, CDnow, ToyRUs
    • Handleman Company
      • Manages music inventories (Walmart, KMart)
    Electronic Commerce, Eighth Edition
  • 51. Mobile Commerce
    • Few companies successful generating significant revenues
      • NTT’s DoCoMo I-Mode service (Japan cell phone)
        • Send short messages, play games, obtain weather forecasts
      • AvantGo (United States)
        • Offers channels of information as PDA downloads
    • Mobile commerce: $400 billion by 2012
      • Requires larger memory, easier-to-use interfaces, higher screen resolutions
        • E-mail, telephone, Web access, entertainment services convergence
    Electronic Commerce, Eighth Edition
  • 52. Creating an Effective Web Presence
    • Organization’s presence
      • Public image conveyed to stakeholders
      • Usually not important
        • Until growth reaches significant size
      • Stakeholders
        • Customers, suppliers, employees, stockholders, neighbors, general public
    • Effective Web presence
      • Critical
        • Even for smallest and newest Web operating firms
    Electronic Commerce, Eighth Edition
  • 53. Identifying Web Presence Goals
    • Business physical space
      • Focus on very specific objectives
        • Not image driven
        • Must satisfy many business needs
        • Fails to convey good presence
    • Web business site intentionally creates distinctive presence
    • Good Web site design
      • Provides effective image-creation features
      • Provides effective image-enhancing features
        • Serves as sales brochure, product showroom, financial report, employment ad, customer contact point
    Electronic Commerce, Eighth Edition
  • 54. Identifying Web Presence Goals (cont’d.)
    • Making Web presence consistent with brand image
      • Different firms establish different Web presence goals
      • Coca Cola pages
        • Usually include trusted corporate image (Coke bottle)
        • Traditional position as a trusted classic
      • Pepsi pages
        • Usually filled with hyperlinks to activities and product-related promotions
        • Upstart product favored by younger generation
    Electronic Commerce, Eighth Edition
  • 55. Achieving Web Presence Goals
    • Effective site creates attractive presence
      • Meets business or organization objectives
    • Objectives
      • Attract visitors to the Web site
      • Make site interesting
      • Convince visitors to follow site’s links
      • Create impression consistent with organization’s desired image
      • Build trusting relationship with visitors
      • Reinforce positive image
      • Encourage visitors to return
    Electronic Commerce, Eighth Edition
  • 56. Achieving Web Presence Goals (cont’d.)
    • Profit-driven organizations
      • Toyota
        • Good example of effective Web presence
        • Presence consistent with corporate goal
      • Quaker Oats older Web site
        • Offered little sense of corporate presence
      • Quaker Oats current Web site
        • Much better
    Electronic Commerce, Eighth Edition
  • 57. Electronic Commerce, Eighth Edition
  • 58. Electronic Commerce, Eighth Edition
  • 59. Electronic Commerce, Eighth Edition
  • 60. Achieving Web Presence Goals (cont’d.)
    • Not-for-profit organizations
      • Web presence effort goals
        • Image-enhancement capability
        • Provide information dissemination
      • Successful site key elements
        • Integrate information dissemination with fund-raising
        • Provide two-way contact channel
      • American Civil Liberties Union (ACLU)
        • Serves many different constituencies
      • Political party Web sites
    Electronic Commerce, Eighth Edition
  • 61. Electronic Commerce, Eighth Edition
  • 62. Web Site Usability
    • Current Web presences
      • Few businesses accomplish all goals
      • Most fail to provide visitors sufficient interactive contact opportunities
      • Improve Web presence
        • Make site accessible to more people
        • Make site easier to use
        • Make site encourage visitors’ trust
        • Develop feelings of loyalty toward organization
    Electronic Commerce, Eighth Edition
  • 63. How the Web Is Different
    • Simple mid-1990s Web sites
      • Conveyed basic businesses information
      • No market research conducted
    • Web objectives achievement failure
      • Not understanding Web presence-building media
    • Web objective achievement success
      • Sites create organization’s presence
      • Sites contain standard information set
        • History, objectives, mission, product information, financial information, two-way meaningful communication
    Electronic Commerce, Eighth Edition
  • 64. Meeting the Needs of Web Site Visitors
    • Successful Web businesses:
      • Realize every visitor is a potential customer (partner)
    • Crafting Web presence is an important concern
      • Know visitor characteristic variations
    • Visitor at site for a reason
    Electronic Commerce, Eighth Edition
  • 65. Meeting the Needs of Web Site Visitors (cont’d.)
    • Web site visitor motivations
      • Learning about company products or services
      • Buying products or services
      • Obtaining warranty, service, repair policy information
      • Obtaining general company information
      • Obtaining financial information
      • Identifying people
      • Obtaining contact information
    • Visitors have:
      • Various needs, experience, expectations, technology
    Electronic Commerce, Eighth Edition
  • 66. Meeting the Needs of Web Site Visitors (cont’d.)
    • Making Web sites accessible
      • Build interface flexibility
        • Optional to use frames
        • Offer text-only version
        • Option to select smaller graphic images
        • Option to specify streaming media connection type
        • Option to choose among information attributes
      • Controversial Web site design
        • Animated graphics software use
        • Some tasks lend themselves to animated Web pages
    Electronic Commerce, Eighth Edition
  • 67. Electronic Commerce, Eighth Edition
  • 68. Meeting the Needs of Web Site Visitors (cont’d.)
    • Making Web sites accessible (cont’d.)
      • Offer multiple information formats
      • Web site constructions goals
        • Offer easily accessible organization facts
        • Allow different visitor experiences
        • Provide meaningful, two-way communication link
        • Sustain visitor attention and encourage return visits
        • Offer easily accessible information about products, services, and their use
    Electronic Commerce, Eighth Edition
  • 69. Trust and Loyalty
    • Creates relationship value
    • Good service leads to seller trust
      • Delivery, order handling, help selecting product, after-sale support
    • Satisfactory service builds customer loyalty
    • Customer service in electronic commerce sites
      • Problem
        • Lack integration between call centers and Web sites
        • Poor e-mail responsiveness
      • Unlikely to recover money spent to attract customers
    Electronic Commerce, Eighth Edition
  • 70. Rating Electronic Commerce Web Sites
    • Review electronic commerce Web sites
      • Usability, customer service, other factors
        • No longer publishes most scorecards
        • Comparison shopping service
        • Links to low price and good service ratings sites
    Electronic Commerce, Eighth Edition
  • 71. Rating Electronic Commerce Web Site (cont’d.)
    • Usability testing
      • Helps meet Web site goals
      • Avoids Web site frustration
        • Customers leave site without buying anything
      • Simple site usability changes
        • Include telephone contact information
        • Staff a call center
      • Learn about visitor needs by conducting focus groups
      • Usability testing cost
        • Low compared to Web site design costs
    Electronic Commerce, Eighth Edition
  • 72. Rating Electronic Commerce Web Site (cont’d.)
    • Customer-centric Web site design
      • Important part of successful electronic business operation
      • Focus on meeting all site visitors’ needs
      • Putting customer at center of all site designs
        • Follow guidelines and recommendations
        • Make visitors’ Web experiences more efficient, effective, memorable
      • Usability
        • Important element of creating effective Web presence
    Electronic Commerce, Eighth Edition
  • 73. Connecting with Customers
    • Important element of a corporate Web presence
    • Identify and reach out to customers
    Electronic Commerce, Eighth Edition
  • 74. Connecting with Customers (cont’d.)
    • Nature of Web communication
      • Personal contact ( prospecting )
        • Employees individually search for, qualify, contact potential customers
      • Mass media
        • Deliver messages by broadcasting
      • Addressable media
        • Advertising efforts directed to known addressee
      • Internet medium
        • Occupies central space in medium choice continuum
    Electronic Commerce, Eighth Edition
  • 75. Electronic Commerce, Eighth Edition
  • 76. Summary
    • Six main approaches to generate Web revenue
      • Models work differently
      • Different business types use different models
      • Learn more about customers, business environment
        • Change models
    • Channel conflict and cannibalization challenges
      • Form strategic alliances with other companies
      • Contract with channel distribution managers
    • B2C mobile commerce not widely successful
    • Create effective Web presence to deliver value
    • Must understand Web communication
    Electronic Commerce, Eighth Edition