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    9780538469241 ppt ch03 9780538469241 ppt ch03 Presentation Transcript

    • Electronic Commerce Ninth Edition Chapter 3 Selling on the Web: Revenue Models and Building a Web Presence
    • 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, Ninth Edition
    • 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 use same revenue model for both types of sales
      Electronic Commerce, Ninth Edition
    • Web Catalog Revenue Models
      • Adapted from mail-order ( catalog ) model
        • Seller establishes brand image
        • Printed information mailed to prospective buyers
          • Orders placed by mail or toll-free telephone number
      • Expands traditional model
        • Replaces or supplements print catalogs
        • Offers flexibility
          • Orders placed through Web site or telephone
          • Payments made though Web site, telephone, or mail
        • Creates additional sales outlet for existing companies
      Electronic Commerce, Ninth Edition
    • Web Catalog Revenue Models (cont’d.)
      • Computers and consumer electronics
        • Leading computer manufacturers
          • Sell a full range of products on the Web
        • Dell allows product configuration flexibility
          • Creates value
        • Crutchfield
          • Expanded successful mail-order catalog operations to include Web sites
        • Best Buy, J&R Music World, Radio Shack
          • Web sites sell same products as in stores
      Electronic Commerce, Ninth Edition
    • Web Catalog Revenue Models (cont’d.)
      • Computers and consumer electronics (cont’d.)
        • Marketing channel
          • Pathway to customers
        • Advantage of having several marketing channels
          • Reach more customers at less cost
        • Can combine marketing channels
          • Example: in-store online ordering
          • Example: mail catalogs with reference to retailer’s Web site
      Electronic Commerce, Ninth Edition
    • Electronic Commerce, Ninth Edition FIGURE 3-1 Combining marketing channels: Two retailer examples
    • Web Catalog Revenue Models (cont’d.)
      • Books, music, and videos
        • Most visible electronic commerce examples
        • Amazon.com Web-only retailer originally sold books
          • Evolved into general retailer
        • Barnes & Noble, Blackwell’s, Books-A-Million, Powell’s Books
          • All adopted Web catalog revenue model
        • CDnow Web-only online music store
          • CD Universe copied CDnow approach
        • Tower Records, Sam Goody retail stores
          • Created Web sites to compete with CDnow
      Electronic Commerce, Ninth Edition
    • Web Catalog Revenue Models (cont’d.)
      • Luxury goods
        • Difficult to sell online
          • Customers want to see product in person or touch
        • Vera Wang and Versace
          • Web sites provide information
          • Shopper purchases at physical store
          • Heavy use of graphics and animation
        • Evian Web site
          • Presents information in a visually stunning way
      Electronic Commerce, Ninth Edition
    • Web Catalog Revenue Models (cont’d.)
      • Clothing retailers
        • Many adapted catalog sales model to Web
        • Display clothing photos categorized by type
          • Prices, sizes, colors, tailoring details
        • Want customers to examine clothing online
          • Place orders through Web site
        • Lands’ End online Web shopping assistance
          • Lands’ End Live (1999)
          • Online text chat and call-back feature
          • Ability to push Web pages to customer’s browser
      Electronic Commerce, Ninth Edition
    • Web Catalog Revenue Models (cont’d.)
      • Clothing retailers (cont’d.)
        • Lands’ End personal shopper agent (more recent)
          • Learns preferences and makes suggestions
        • My Virtual Model (customers try clothes)
          • Graphic image built from customer measurements
        • Another feature allows:
          • Two shoppers using different computers to simultaneously browse Web site together
          • Only one of the shoppers can purchase items
          • Either shopper can select items to view
          • Selected items appear in both Web browsers
      Electronic Commerce, Ninth Edition
    • Web Catalog Revenue Models (cont’d.)
      • Clothing retailers (cont’d.)
        • Online overstocks stores
          • Reach more people than physical outlet stores
        • Problem: varying computer monitor color settings
          • Solution: send fabric swatch on request
          • Solution: offer generous return policies
      Electronic Commerce, Ninth Edition
    • 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 the Web
        • Harry and David
          • Original Web site for informational purposes
          • Promoted catalog business and added online ordering feature
      Electronic Commerce, Ninth Edition
    • Web Catalog Revenue Models (cont’d.)
      • General discounters
        • Buy.com and Overstock.com
          • Borrowed Wal-Mart and discount club sales model
          • Sell merchandise at extremely low prices
        • Traditional discount retailers (Costco, Kmart, Target, Wal-Mart)
          • Slow to implement online sales on their Web sites
          • Had huge investments in physical stores
          • Did not understand online retailing world
          • Now use the Web catalog revenue model in their successful online sales operations
      Electronic Commerce, Ninth Edition
    • Digital Content Subscription Revenue Models
      • Firms owning written information or information rights
        • Embrace the Web as a highly efficient distribution mechanism
        • Use the digital content revenue model
          • Sell subscriptions for access to information they own
      • Legal content
        • LexisNexis: offers variety of information services
        • Lexis.com: offers original legal information product
      Electronic Commerce, Ninth Edition
    • Digital Content Subscription Revenue Models (cont’d.)
      • Academic research content
        • ProQuest: digital copies of academic publications
      • Business content
        • Dow Jones newspaper publisher subscriptions
          • Sold digitized newspaper, magazine, and journal content subscriptions
          • Factiva: online content management and integration service
      • Technical content
        • Association for Computer Machinery (ACM): digital library
      Electronic Commerce, Ninth Edition
    • Advertising-Supported Revenue Models
      • Used by United States broadcast network television
        • Provides free programming and advertising messages
          • Supports network operations sufficiently
      • Problem: measuring and charging site visitor views
        • Stickiness
          • Keeping visitors at site and attracting repeat visitors
          • Exposed to more advertising in a sticky site
      • Problem: obtaining large advertiser interest
        • Requires demographic information collection
          • Characteristics set used to group visitors
      Electronic Commerce, Ninth Edition
    • Advertising-Supported Revenue Models (cont’d.)
      • Can obtain large advertiser interest by:
        • Using a specialized information Web site
          • Draw a specialized audience certain advertisers want to reach
        • Examples:
          • The Huffington Post and the Drudge Report
          • HowStuffWorks
      Electronic Commerce, Ninth Edition
    • Electronic Commerce, Ninth Edition FIGURE 3-2 Three strategies for an advertising-supported revenue model
    • Advertising-Supported Revenue Models (cont’d.)
      • Web portals ( portal )
        • Site used as a launching point to enter the Web
          • Almost always includes a Web directory or search engine
          • Often includes other features
        • Web directories
          • Listing of hyperlinks to Web pages
        • Yahoo!: one of the first
          • Presents search term triggered advertising on each page
      Electronic Commerce, Ninth Edition
    • Advertising-Supported Revenue Models (cont’d.)
      • Web portals (cont’d.)
        • Portal sites using general interest strategy
          • AOL, Excite, Google, Bing
        • Portal sites not using general interest strategy
          • Help visitors find information within a specific knowledge domain
          • Advertisers pay more
          • Example: C-NET
        • Travel sites
          • Successful as advertising-supported online businesses
          • Example: Kayak
      Electronic Commerce, Ninth Edition
    • Advertising-Supported Revenue Models (cont’d.)
      • Newspaper and magazine publishers
        • Sell advertising to cover Web site costs
        • Internet Public Library Online Newspapers page
          • Provides links to worldwide newspaper sites
        • Local shopping news, alternative press newspapers
          • Easier transition to advertising-supported Web revenue model
        • Newspaper’s Web presence
          • Provides greater exposure and advertising audience
          • Diverts sales from the print edition (difficult to measure)
          • Operating costs not covered by advertising revenue
      Electronic Commerce, Ninth Edition
    • Advertising-Supported Revenue Models (cont’d.)
      • Targeted classified advertising sites
        • Can command higher rates than general advertising
        • Original version
          • Newspaper classified advertising
        • Growth of classified advertising Web sites
          • Very bad for newspapers
          • Example: craigslist
        • Web employment advertising
          • Most successful targeted classified advertising category
          • Examples: CareerBuilder.com, The Ladders and Guru.com, Monster.com
      Electronic Commerce, Ninth Edition
    • Advertising-Supported Revenue Models (cont’d.)
      • Targeted classified advertising sites (cont’d.)
        • Used vehicle sites
          • AutoTrader.com, CycleTrader.com, BoatTrader.com
          • Accept paid advertising to sell cars, motorcycles, boats
        • Product sites with dedicated following (VetteFinders)
          • Successful by catering to small audiences
        • Potential classified advertising sites
          • Any site selling products useful to buyer after initial use
          • Musicians Buy-Line, ComicLink.com, The Golf Classifieds
      Electronic Commerce, Ninth Edition
    • 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
      Electronic Commerce, Ninth Edition
    • Electronic Commerce, Ninth Edition FIGURE 3-3 Revenue models used by online editions of newspapers and magazines
    • Advertising-Subscription Mixed Revenue Models (cont’d.)
      • ESPN
        • Leverages brand name from cable television business
        • Sells advertising, offers free information
        • Mixed model includes advertising and subscription revenue (collects Insider subscriber revenue)
      • Consumers Union (ConsumerReports.org)
        • Purely a subscription-supported site
        • Not-for-profit organization with no advertising
        • Free information
          • Attracts subscribers and fulfills mission
      Electronic Commerce, Ninth Edition
    • Fee-for-Transaction Revenue Models
      • Service fee charged
        • Based on transaction number or size
      • Web site offers visitor transaction information
        • Personal service formerly provided by a human agent
      • Value chain
        • Disintermediation
          • Intermediary (human agent) removed
        • Reintermediation
          • New intermediary (fee-for-transaction Web site) introduced
      Electronic Commerce, Ninth Edition
    • Fee-for-Transaction Revenue Models (cont’d.)
      • Travel
        • Travel agency revenue model: receive fee for facilitating a transaction
          • Travel agent adds information consolidation and filtering value
        • Computers also good at information consolidation and filtering
          • Travel agents have long used networked computers: Sabre Travel Network
        • Internet provided a new way to do business online
      Electronic Commerce, Ninth Edition
    • Fee-for-Transaction Revenue Models (cont’d.)
      • Travel (cont’d.)
        • Web-based travel agencies were new entrants
          • Examples: Travelocity, Expedia, Hotels.com, Hotel Discount Reservations, Orbitz
          • Generate advertising revenue from ads placed on travel information pages
        • Traditional travel agents: squeezed out
          • Surviving agencies charge a flat fee
        • Smaller travel agents specialize (cruises, hotels)
          • May use a reintermediation strategy (WaveHunters.com)
      Electronic Commerce, Ninth Edition
    • Electronic Commerce, Ninth Edition FIGURE 3-4 Orbitz home page
    • Fee-for-Transaction Revenue Models (cont’d.)
      • Automobile sales
        • Web sites implement the fee-for-transaction revenue model differently
        • CarsDirect.com model
          • Customers select specific car, site determines price and finds local dealer
        • Autoweb.com and Autobytel model
          • Locate local dealers, car sells at small premium over dealer’s nominal cost
        • Car salesperson: disintermediated
        • Web site: new intermediary (reintermediation)
      Electronic Commerce, Ninth Edition
    • Fee-for-Transaction Revenue Models (cont’d.)
      • Stockbrokers
        • Original full-line brokers charged relatively high commissions
          • Provided advice
        • 1970s: deregulation resulted in discount brokers
          • Web-based brokerage firms: E*TRADE and Datek
          • Web allowed investment advice, fast trade execution online
      Electronic Commerce, Ninth Edition
    • Fee-for-Transaction Revenue Models (cont’d.)
      • Stockbrokers (cont’d.)
        • 1990s: discount brokers faced competition from online firms
          • Discount brokers and full-line brokers opened new stock trading and information Web sites
        • Online brokers offer transaction cost reductions
        • Traditional stockbrokers: disintermediated
      Electronic Commerce, Ninth Edition
    • Fee-for-Transaction Revenue Models (cont’d.)
      • Insurance brokers
        • Quotesmith offered Internet policy price quotes directly to public (1996)
          • Independent insurance agents: disintermediated
        • Insurance policy information, comparisons, sales sites
          • InsWeb, Answer Financial, Insurance.com
        • Progressive Web site
          • Provides quotes for competitors’ products too
        • The General (General Automobile Insurance Services) Web site
          • Offers comfortable, anonymous experience
      Electronic Commerce, Ninth Edition
    • Fee-for-Transaction Revenue Models (cont’d.)
      • Event tickets
        • Web allows event promoters to sell tickets from one virtual location to customers worldwide
        • Online agencies earn a fee on every ticket sold
          • Ticketmaster, Tickets.com, TicketWeb
        • Web created secondary ticket market (StubHub, TicketsNow)
          • Brokers connecting ticket owners with buyers
          • Earn fees on tickets resold for others, buy ticket blocks
        • Web created easy-to-find central marketplace, facilitating buyer-seller negotiations
      Electronic Commerce, Ninth Edition
    • Fee-for-Transaction Revenue Models (cont’d.)
      • Real estate and mortgage loans
        • Web sites provide all traditional broker services
          • Coldwell Banker, Prudential
        • National Association of Realtors Web site
          • Realtor.com
        • 2008 financial crisis
          • Dramatically reduced number of mortgage brokers in business
        • Successful online mortgage brokers
          • Ditech and E-LOAN
      Electronic Commerce, Ninth Edition
    • 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
          • Start online bank not affiliated with existing bank (First Internet Bank of Indiana)
          • Use different name (Bank One used Wingspan)
            • Approach was not successful
      Electronic Commerce, Ninth Edition
    • Fee-for-Transaction Revenue Models (cont’d.)
      • Online banking and financial services (cont’d.)
        • Additional barriers preventing a more rapid rate of growth
          • Lack of bill presentment features
          • Lack of account aggregation tools
        • By 2012:
          • Industry analysts expect most banks (online and traditional) will offer aggregation services
      Electronic Commerce, Ninth Edition
    • Fee-for-Transaction Revenue Models (cont’d.)
      • Online music
        • Recording industry: slow to embrace online distribution
          • Feared digital copying
        • Large online music stores
          • Revenue from fee-for-transaction model
          • Some sites offer subscription plans
        • Complicating issues
          • Stores offer limited number of digital music files
          • Stores promote their own music file format
          • Artists and recording companies invoke limits
      Electronic Commerce, Ninth Edition
    • Fee-for-Transaction Revenue Models (cont’d.)
      • Online music (cont’d.)
        • Complicating issues (cont’d.)
          • Buyers required to download and install Digital Rights Management ( DRM ) software
          • Varying restrictions confusing to consumers
        • Online music market industry failed to embrace the network effect gained by adopting one standard file format
      Electronic Commerce, Ninth Edition
    • Fee-for-Transaction Revenue Models (cont’d.)
      • Online music (cont’d.)
        • Some stores sold audio in a generally compatible file format with no copying restrictions
          • Mondomix MP3 and Smithsonian Folkways
          • Music not produced by major recording companies
        • Solutions
          • Adopt one standard file format, no copying restrictions, DRM-free MP3 format (Amazon in 2007)
        • By 2012: 80 percent of all music will be sold online
      Electronic Commerce, Ninth Edition
    • Fee-for-Transaction Revenue Models (cont’d.)
      • Online video
        • Issues hampering prior sales
          • Large file size
          • Fear of online sales impairing other sales types
          • Inability to play on variety of devices
        • Overcoming the issues
          • New technologies improving delivery
          • Companies incorporating online distribution into revenue strategy
          • Delivery allowed on multiple devices
            • Through standard Web browser
      Electronic Commerce, Ninth Edition
      • Electronic books
        • Forms of digital audio books
          • CDs (originally) and various types of digital files
      • Audible sells subscriptions
        • Allows monthly download of a certain number of books
          • Pricing is per book
      • Amazon.com
        • Offers books, newspapers, magazines, other digital format items
          • Delivered directly to its line of Kindle readers
      Fee-for-Transaction Revenue Models (cont’d.) Electronic Commerce, Ninth Edition
    • Fee-for-Service Revenue Models
      • Companies offer Web service
        • Fee based on service value
          • Not a broker service
          • Not based on transactions-processed number or size
      • Online games
        • Sales revenue source
          • Advertising (older concept), pay-to-play for premium games, subscription fees
        • Average game player is 35 years old, playing computer or video games for 12 years
      Electronic Commerce, Ninth Edition
    • Fee-for-Service Revenue Models (cont’d.)
      • Professional services
        • Limited Web use
          • State laws prohibit extension of practice
          • Patients may set appointments, receive online consultation
        • Major concern
          • Patient privacy
        • Law on the Web site
          • Legal consultations to United Kingdom residents
        • Martindale.com
          • Online version of Martindale-Hubbell lawyer directory
      Electronic Commerce, Ninth Edition
      • Professional services (cont’d.)
        • CPA Directory
          • United States accounting professionals site
        • General health information
          • RealAge, Dr. Andrew Weil’s Self Healing, WebMD
        • Significant barrier
          • Patient diagnosis difficult without physical examination
        • Some physicians beginning to offer online consultations
          • For ongoing, established relationship patients
      Fee-for-Service Revenue Models (cont’d.)
    • Free for Many, Fee for a Few
      • Economics of manufacturing
        • Different for physical and digital products
        • Unit cost high percentage of physical products
        • Unit cost very small for digital products
      • Leads to a different revenue model
        • Offer basic product to many for free
        • Charge a fee to some for differentiated products
          • Examples: Yahoo e-mail accounts, bakery: free cookies
    • Revenue Models in Transition
      • Companies must change revenue model
        • To meet needs of new and changing Web users
      • Some companies created e-commerce Web sites
        • Needed many years to grow large enough to become profitable (CNN and ESPN)
      • Some companies changed model or went out of business
        • Due to lengthy unprofitable growth phases
      Electronic Commerce, Ninth Edition
    • Subscription to Advertising-Supported Model
      • Slate magazine
        • 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 the Bing portal
          • Value to Microsoft: increase the portal’s stickiness
      Electronic Commerce, Ninth Edition
    • Advertising-Supported to Advertising-Subscription Mixed Model
      • Salon.com
        • Acclaimed for innovative content
      • Initial revenue source
        • Advertising-supported site
        • Needed additional money to continue operations
      • Now offers optional subscription version
        • Annual fee for Salon premium
          • Free of advertising
          • Additional content
          • Downloadable content
      Electronic Commerce, Ninth Edition
    • Advertising-Supported to Fee-for-Services Model
      • Xdrive Technologies: offered free disk storage
      • Initial revenue source (1999): advertising-supported
        • Targeted e-mail advertising
        • Did not cover operating costs
      • 2005: bought by AOL
        • Switched to a subscription-supported model
        • Xdrive frequently adjusted its monthly fee downward
        • AOL closed the service in 2009
      • Successful companies: fee based on storage amount used
      Electronic Commerce, Ninth Edition
    • Advertising-Supported to Subscription Model
      • Northern Light search engine includes own database
        • Results include Web site links and abstracts of its owned content
        • Initial revenue source
          • Combination of the advertising-supported model plus a fee-based information access service
          • Advertising revenue: insufficient to cover service
        • Converted to a new subscription-supported revenue model
          • Mainly large corporate clients
          • Individual monthly billing option for articles accessed
      Electronic Commerce, Ninth Edition
    • Multiple Transitions
      • Encyclopedia Britannica
        • Initial Web offerings (1994)
          • Britannica Internet Guide
          • Encyclopedia Britannica Online
        • Initial revenue source
          • Paid subscription site had low subscription sales
        • Converted to free advertiser-supported site (1999)
          • Advertising revenues declined
        • 2001: returned to mixed model with subscription plan and free content
        • Value added: sells reputation and the expertise
      Electronic Commerce, Ninth Edition
    • Revenue Strategy Issues
      • Topics:
        • Web revenue models implementation issues
        • Dealing with the issues
      Electronic Commerce, Ninth Edition
    • Channel Conflict and Cannibalization
      • Channel conflict ( cannibalization )
        • Company Web site sales activities interfere with existing sales outlets
        • Levis Web site and Maytag
          • Web sites no longer sell products
          • Sites now provide product, retail distributor information
        • Eddie Bauer
          • Online purchases returnable at retail stores
          • Required compensation and bonus plans adjustments to support Web site
          • Channel Cooperation made it successful
      Electronic Commerce, Ninth Edition
    • Strategic Alliances
      • Strategic alliance
        • Two or more companies join forces
          • Undertake activity over long time period
      • Yodlee account aggregation services provider
        • Yodlee concentrates on developing the technology and services
        • Banks provide the customers
      • Amazon.com
        • Joined with Target, CDnow, ToysRUs
          • ToysRUs and Amazon suing each other
      Electronic Commerce, Ninth Edition
    • 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, Ninth Edition
    • Identifying Web Presence Goals
      • Business physical space
        • Focus: very specific objectives
          • Not image driven
          • Must satisfy many business needs
          • Often fails to convey a good presence
      • Web business site
        • Intentionally creates distinctive presences
        • Good Web site design provides:
          • Effective image-creation features
          • Effective image-enhancing features
      Electronic Commerce, Ninth Edition
    • Identifying Web Presence Goals (cont’d.)
      • Web business site objectives:
        • Attracting Web site visitors
        • Keeping visitors to stay and explore
        • Convincing visitors to follow site’s links to obtain information
        • Creating an impression consistent with the organization’s desired image
        • Building a trusting relationship with visitors
        • Reinforcing positive images about the organization
        • Encouraging visitors to return to the site
      Electronic Commerce, Ninth Edition
    • Identifying Web Presence Goals (cont’d.)
      • Making Web presence consistent with brand image
        • Different firms establish different Web presence goals
        • Coca Cola Web site pages
          • Usually include trusted corporate image (Coke bottle)
          • Image: traditional position as a trusted classic
        • Pepsi Web site pages
          • Usually filled with hyperlinks to activities and product-related promotions
          • Image: upstart product favored by younger generation
      Electronic Commerce, Ninth Edition
    • Identifying Web Presence Goals (cont’d.)
      • Matching site design to function
        • Volkswagen of America site
          • Accomplishes important functions for the company
          • Provides links to detailed Volkswagen model information, links to a dealer locator page, links to information about the company, a link to a set of shopping tools
        • Volkswagen’s home page
          • Meets the needs of most visitors quickly and effectively
        • Volkswagen site enhances company image by providing useful information to customers online
      Electronic Commerce, Ninth Edition
    • Electronic Commerce, Ninth Edition FIGURE 3-5 Volkswagen of America home page
    • Identifying Web Presence Goals (cont’d.)
      • Not-for-profit organizations
        • Web presence effort key goals:
          • Image enhancement and 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
        • Web sites used to stay in touch with existing stakeholders, identify new opportunities for serving them
      Electronic Commerce, Ninth Edition
    • Electronic Commerce, Ninth Edition FIGURE 3-6 ACLU home page
    • Web Site Usability
      • Current Web presences
        • Few businesses accomplish all goals
        • Most fail to provide visitors sufficient interactive contact opportunities
        • Improving Web presence
          • Make site accessible to more people
          • Make site easier to use
          • Make site encourage visitors’ trust
          • Make site develop feelings of loyalty toward the organization
      Electronic Commerce, Ninth Edition
    • How the Web Is Different
      • Simple mid-1990s Web sites
        • Conveyed basic business information
        • No market research conducted
      • Web objectives achievement
        • Failed due to no understanding for Web presence-building media
      • Web sites designed to create an organization’s presence:
        • Contain links to standard information set
        • Success dependent on how this information offered
      Electronic Commerce, Ninth Edition
    • Meeting the Needs of Web Site Visitors
      • Successful Web businesses:
        • Realize every visitor is a potential customer (partner)
      • Web presence is an important concern
        • Know visitor characteristic variations
          • Understand that the visitor is at the site for a reason
      • Varied motivations of Web site visitors
        • Why visitors arrive at Web sites
          • Learning about company products or services
          • Buying products or services
          • Obtaining warranty, service, repair policy information
      Electronic Commerce, Ninth Edition
    • Meeting the Needs of Web Site Visitors (cont’d.)
      • Varied motivations of Web site visitors (cont’d.)
        • Why visitors arrive at Web sites (cont’d.)
          • Obtaining general company information
          • Obtaining financial information
          • Identifying people
          • Obtaining contact information
          • Following a link into the site while searching for information about a related product, service, or topic
        • Challenge to meet all motivations
          • Visitors arrive with different needs, experience, and expectation levels
      Electronic Commerce, Ninth Edition
    • Meeting the Needs of Web Site Visitors (cont’d.)
      • Making Web sites accessible
        • Build interface flexibility options:
          • Frame use
          • Text-only version
          • Selection of smaller graphic images
          • Specification of streaming media connection type
          • Choice among information attributes
        • Controversial Web site design issues
          • Adobe Flash software use
            • Some tasks lend themselves to animated Web pages
      Electronic Commerce, Ninth Edition
    • Electronic Commerce, Ninth Edition FIGURE 3-7 Lee® Jeans FitFinder Flash animation
    • Meeting the Needs of Web Site Visitors (cont’d.)
      • Making Web sites accessible (cont’d.)
        • Offer multiple information formats
        • Consider goals in Web site construction
      Electronic Commerce, Ninth Edition FIGURE 3-8 Goals for business Web sites
    • 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
      Electronic Commerce, Ninth Edition
    • Rating Electronic Commerce Web Sites
      • Companies routinely review electronic commerce Web sites for:
        • Usability, customer service, other factors
        • Sell the gathered information directly to the companies operating the Web sites
          • Include suggestions for improvements
      • BizRate.com posts ratings
        • Provides comparison shopping service
        • Compiles ratings by conducting surveys of sites’ customers
      Electronic Commerce, Ninth Edition
    • Usability Testing
      • Importance
        • 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, Ninth Edition
    • Customer-Centric Web Site Design
      • Important part of successful electronic business operation
      • Focus on meeting all site visitors’ needs
      • Customer-centric approach
        • Putting customer at center of all site designs
          • Follow guidelines and recommendations
          • Make visitors’ Web experiences more efficient, effective, memorable
      • Webby Awards site
        • Examples of good Web site design
      Electronic Commerce, Ninth Edition
    • Connecting with Customers
      • Important element of a corporate Web presence
      • Identify and reach out to customers
      Electronic Commerce, Ninth Edition
    • The Nature of Communication on the Web
      • Communication modes
        • Personal contact ( prospecting ) model
          • 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, Ninth Edition
    • Electronic Commerce, Ninth Edition FIGURE 3-9 Business communication modes
    • Summary
      • Six main Web revenue models
        • Models work differently
        • Different business types use different models
        • Companies change models as they learn more about:
          • Customers, business environment
      • Channel conflict and cannibalization challenges
        • One approach: channel cooperation
      • Effective Web presence delivers customer value
        • Web site visitors arrive with a variety of expectations, prior knowledge, skill levels, technology
      • Web communication fits in between personal contact and mass media
      Electronic Commerce, Ninth Edition