Copyright © 2002 by Marketspace LLC Rayport, Jaworski e-Commerce Chapter 4 Enhanced Lecture Slides Customer Interface Exhibits and Tables.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Customer Interface — Today’s Objective Develop an understanding of the technology – mediated customer interface

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Chapter 4 Customer Interface The seven design elements of the customer interface The alternative “look and feel” approaches to design The five content archetypes Be concerned with community The levers used to customize a site Types of communication a firm maintains with its customer base Firms connect with other businesses The alternative pricing models of commerce archetypes Case studies: Schwab and Palm Conclusion

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–1: The 7Cs of the Customer Interface Context Site’s layout and design Context Site’s layout and design Commerce Site’s capability to enable commercial transactions Commerce Site’s capability to enable commercial transactions Connection Degree site is linked to other sites Connection Degree site is linked to other sites Communication The ways sites enable site-to- user communication or two-way communication Communication The ways sites enable site-to- user communication or two-way communication Customization Site’s ability to self-tailor to different users or to allow personalization Customization Site’s ability to self-tailor to different users or to allow personalization Community The ways sites enable user-to- user communication Community The ways sites enable user-to- user communication Content Text, pictures, sound and video that webpages contain Content Text, pictures, sound and video that webpages contain

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Table 4–1: The 7Cs of Lands’ End Context Landsend.com utilizes both aesthetic and functional design elements to communicate its core benefits Content Landsend.com includes content pertaining to its product offerings, services and offline support. The content is conveyed through a combination of text, photographs and graphics. Community “Shop with a Friend” allows two users to shop simultaneously, creating a virtual shopping experience. Customization Personal shopping accounts are used to facilitate use of the site and tailor future visits to the customer’s individual needs. Communication “Lands’ End Live” allows users to talk directly to a customer service representative via phone or live text chat. Connection Landsend.com does not link to any other sites; their affiliate program, however, links other sites to Landsend.com. Commerce Landsend.com has typical transactional capability, providing the customer with a confidential and convenient way to shop online. How does Landsend.com utilize the 7Cs?

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–2: Fit and Reinforcement of the 7Cs Context Content Community Customization Communication Connection Commerce Business Model Reinforcement Are each of the 7Cs consistent with one another? Supporting Fit Do each of the 7Cs individually support the business model? The success of a business depends on the extent that all of the Cs work together to support the value proposition and business model:

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–3: Drill Down — Online and Offline Integration of the 7Cs The integration of online and offline strategies is important to success: Context Both online and offline stores appear simple and elegant. Commerce Both storefronts enable and facilitate commerce. Connection Polo is very independent in both formats, with few links on the website and no apparent in-store relationships. Content Same clothes, same prices, similar selection. Community Both the site and the store attempt to create a culture surrounding the product offering. Communication Online sales help is available, just like in stores. Customization The online shopping experience is more customizable (registration, shopping cart, etc.) than the offline experience. Polo.com Ralph Lauren, Madison Ave., NY

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–4: Performance of Lands’ End Site Landsend.com has found much success on the Internet: The Lands’ End website is ranked No. 1 overall in its industry.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–5: Dimensions of Context  VISUAL Section Breakdown  The way the site is organized into subcomponents Linking Structure  The site’s approach to linking alternative sections Navigation Tools  Facilitate how the user moves through the site Color Scheme  The colors used throughout the site Visual Themes  Help to tell the stories portrayed across the site  VISUAL Section Breakdown  The way the site is organized into subcomponents Linking Structure  The site’s approach to linking alternative sections Navigation Tools  Facilitate how the user moves through the site Color Scheme  The colors used throughout the site Visual Themes  Help to tell the stories portrayed across the site  PERFORMANCE Speed  The time required to display a site page on the user’s screen Reliability  How often is the site down?  Percent of times that the site correctly downloads to user Platform Independence  How well the site runs on various platforms Media Accessibility  The site’s ability to run on various devices Usability  The ease with which the site can be navigated by users  PERFORMANCE Speed  The time required to display a site page on the user’s screen Reliability  How often is the site down?  Percent of times that the site correctly downloads to user Platform Independence  How well the site runs on various platforms Media Accessibility  The site’s ability to run on various devices Usability  The ease with which the site can be navigated by users The context of a site can take many different forms:

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–6: Form vs. Function — The Design Context Frontier Integrated Aesthetically Dominant HighLow High Low Function Aesthetic/ Form Functionally Dominant The age old argument of form vs. function is being changed by the Web: Frontier is gradually moving outward as technology advances

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–7: Aesthetic Example — KMGI.com High form, low function: The KMGI approach used to make heavy use of visual elements, but lacked performance capability. Now, KMGI has integrated more functionality into its site, while still maintaining some of the strong visual elements. BEFOREAFTER

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–8: Functional Dominant — @Brint.com Low form, high function: Brint.com assumes its users have little need for visual elements or themes and instead seek ease of use and plentiful information: The site is also text- laden Notice the plethora of links

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–9: Integrated Approach Example — Patagonia.com Patagonia’s integrated approach is a balance of form and function that creates an attractive and easy-to-use interface: The links, for instance, are both textual and graphical

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–10: The 7Cs of CarPoint The site is information- intensive with lots of links and options to access other parts of the site. Visually, the site’s graphics denote the theme of the value proposition; even if there were no words, one could still derive that this is a site devoted to car sales. Functionally, the site appears to have adequate speed, reliability and usability. The site is information- intensive with lots of links and options to access other parts of the site. Visually, the site’s graphics denote the theme of the value proposition; even if there were no words, one could still derive that this is a site devoted to car sales. Functionally, the site appears to have adequate speed, reliability and usability. CarPoint takes a predominantly functional approach to the context of the site:

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Supporting Slide 4–A Point-Counterpoint: Form vs. Function It is important to note the prior discussion of suggested context archetypes is not fully representative of prevailing views of website design.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–11: Dimensions to Content Content refers to all digital information included on the site. There are four key dimensions to content, each carrying choices about how to convey the site’s content:: Dimension Choices Offering Mix Appeal Mix Multimedia Mix Multimedia Mix Content Type Products Services Information Cognitive functional, low price, availability, etc. Emotional humor, warmth, stories, etc. Text Audio Video Image Graphics Current Reference

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–12: Intro to the Five Content Archetypes Offering Dominant We will first describe each archetype and then give an example of each: Information Dominant Market Dominant Superstore Category Killer Specialty Store

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–13: A Framework for Understand Offering-Dominant Archetypes Superstore Category Killer Specialty Store Number of Product Categories Multiple Single NarrowBroad Depth of Product Line Classifying content archetypes on two dimensions:

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–14: Superstore Example — Amazon.com One-stop shop where the customer can find a wide range of goods in multiple product categories: Note the array of product categories on the site.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–15: Category Killer Example — Petsmart.com Exclusively provides products and services by specific product or by a customer- needs category: Again, note the categories; rather than being broad, they focus on a single vertical.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–16: Specialty Store Example — Frontgate.com Focuses on exceptional quality and exclusivity while selling single or multiple categories of products: The site offers a broad array of products, but they are all high- end, premium quality products

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–17: Information-Dominant Example — Business 2.0 Organize and house vast archives of information and provide tools to the customer to explore areas of interest and find answers to specific questions: “New economy, new rules, new leaders” — this site is focused entirely on providing timely information to business leaders

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Table 4–2: Drill Down — Content Archetypes vs. Offering Types Each of the content archetypes can be illustrated with a product, information or services example:

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–18: Market-Dominant Example — PlasticsNet.com Create markets where buyers and sellers congregate to conclude transactions: This site creates an online market for the plastics industry; note the supplier information and product specs available

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4-19: The 7Cs of CarPoint CONTENT Most of the content is current (new and used car inventory, updated regularly), though the site does contain reference material (one can research older cars). MIX CarPoint’s offering mix consists of products, information and services. The appeal mix is clearly cognitive, with an emphasis on functionality. The multimedia mix is composed of text, image and graphics. CONTENT Most of the content is current (new and used car inventory, updated regularly), though the site does contain reference material (one can research older cars). MIX CarPoint’s offering mix consists of products, information and services. The appeal mix is clearly cognitive, with an emphasis on functionality. The multimedia mix is composed of text, image and graphics. CarPoint’s site clearly fits in the “category killer” archetype. From the car itself to financing to insurance needs, CarPoint is a one-stop shop for all car buying needs.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Supporting Slide 4–B: Point-Counterpoint: Is Content King? There is considerable debate concerning the role of content in the success of online businesses:

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Cohesion Effectiveness Help Relationships Language Self-Regulation Cohesion Effectiveness Help Relationships Language Self-Regulation Just Friends Enthusiasts Friends in Need Friends in Need Players Traders Need Fulfillment Inclusion Mutual Influence Shared Emotional Experiences Need Fulfillment Inclusion Mutual Influence Shared Emotional Experiences Degree of Participation Degree of Participation Exhibit 4–20: Communities — Elements, Types and Benefits Elements of Community Types of Communities Member Outcomes: Participation and Benefits

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–21: Dimensions of Community The cohesion of a site can come about through several different methods: INTERACTIVE Chat  Asynchronous chat allows users to consider and formulate responses in nonreal time Instant Messaging  Allows messages to happen quickly because each participant sees the message within seconds of when it is sent Message Boards  Allows users to communicate by posting messages at a location on the site Member-to-Member E-Mail  The “killer app” of the Web, acting as a virtual post office for digitized messages INTERACTIVE Chat  Asynchronous chat allows users to consider and formulate responses in nonreal time Instant Messaging  Allows messages to happen quickly because each participant sees the message within seconds of when it is sent Message Boards  Allows users to communicate by posting messages at a location on the site Member-to-Member E-Mail  The “killer app” of the Web, acting as a virtual post office for digitized messages VISUAL Public Member Webpages  Community members may have the option of crafting their own webpages on a particular site Member Content  Similar to public member webpages, this content is generated by members VISUAL Public Member Webpages  Community members may have the option of crafting their own webpages on a particular site Member Content  Similar to public member webpages, this content is generated by members

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–22: Intro to Six Community Archetypes Bazaar Theme Park Club Shrine Theatre Cafe Each archetype will be defined and an example of each will be given:

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–23: Bazaar Example — Yahoo Games Community that allows users to wander through a vast number of interest areas but does not provide any means for users to interact: The site offers a wide collection of games that can be played with other users, but community is not a priority; the elements of community are not present (cohesion, effectiveness, etc.).

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–24: Theme Park Example — VoxCap.com Community that focuses on a finite number of interest areas that are organized by categories and subcategories: This site encourages activism on world and community issues, but it is activism that is the theme.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–25: Club Example — Gillette Women’s Cancer Connection Community that is highly focused on one area of interest and promotes a considerable amount of interaction among members: The most prominent link on the site encourages member communication on message boards

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–26: Shrine Example — The Unofficial Cheers Website Highly focused community with minimal interaction between members: This site allows comprehensive exposure to a single topic (in this case, a TV show) with no interaction among users.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–27: Theater Example — iFilm.com Community that is focused in a particular area but allows for moderate interaction among members: Not as focused as a “shrine,” this site concentrates on film, but still allows for little interaction among users.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–28: Cafe Example — Bolt.com Community that focuses on a common area of interest but also provides for considerable interaction among members: “Everything you need to speak your mind, hang out, hook up... whatever” — this teen site allows for a high level of interaction among its users.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–29: Focus vs. Interactivity Bazaar Theme Park Mall ShrineTheaterCafe Interactivity Focus Bolt.com VoxCap.com iFilm.com Trace.com Contact Consortium.com Contact Consortium.com Games.yahoo.com Non-equilibrium state: Successfully managed communities will move toward higher levels of interaction Women’s Cancer Connection Women’s Cancer Connection leonardodicaprio.com A number of hybrid communities can form by combining interactivity and focus in unique ways:

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–30: The 7Cs of CarPoint Where does CarPoint fit on the focus/interactivity matrix? The site seems to focused on the car industry (Bazaar), but all of the interactivity the site offers is from its affiliates; CarPoint itself offers little opportunity to interact with the site or with other users. CarPoint

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–31: Dimensions of Customization Customization of a site can occur in many different ways: PERSONALIZATION Log-in Registration  The site recognizes return users and configures itself accordingly Cookies  Temporary files that track and gather data about user’s behavior Personalized E-Mail Accounts  Provided free-of-charge to site users Content and Layout Configuration  Users select layout and content based on their interests Storage  Sites provide virtual hard-disk storage Agents  Programs designed to perform simple tasks PERSONALIZATION Log-in Registration  The site recognizes return users and configures itself accordingly Cookies  Temporary files that track and gather data about user’s behavior Personalized E-Mail Accounts  Provided free-of-charge to site users Content and Layout Configuration  Users select layout and content based on their interests Storage  Sites provide virtual hard-disk storage Agents  Programs designed to perform simple tasks TAILORING Based on Past User Behavior  Many sites adjust themselves dynamically based on a user’s past behavior and preferences Based on Behavior of Other Users With Similar Preferences  Some sites make recommendations to the user based on preferences of other users with similar profiles TAILORING Based on Past User Behavior  Many sites adjust themselves dynamically based on a user’s past behavior and preferences Based on Behavior of Other Users With Similar Preferences  Some sites make recommendations to the user based on preferences of other users with similar profiles

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–32: Personalization by User Example — Mylook.com Enables the user to modify site content and context based on consciously articulated and acted-upon preferences: The first step in this site’s customization process is to choose the category with which you are the best fit; content will then be customized accordingly.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–33: Tailoring by Site Example — Amazon.com Enables the site to reconfigure itself based on past behavior by the user or by others with similar profiles: Without consciously articulating preferences, users find that Amazon.com makes recommendations based on their past buying habits.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–34: The 7Cs of CarPoint CarPoint is an information-intensive site concentrated on a single industry; the degree of personalization by either the user or the site itself is minimal. Customization is not central to CarPoint’s value proposition:

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–35: Dimensions of Communication Communication between a site and its users can occur in many different ways: BROADCAST Mass Mailings  Broadcast transmissions of large volumes of e-mail targeted at large audiences FAQs  Answers to frequently asked questions E-Mail Newsletters  Inform site subscribers of site changes, special offers, etc. Content-Update Reminders  E-mail reflecting user interest in a particular content area Broadcast Events  Events can be broadcast from a website (webcast) that allows limited user control over such things as camera angle BROADCAST Mass Mailings  Broadcast transmissions of large volumes of e-mail targeted at large audiences FAQs  Answers to frequently asked questions E-Mail Newsletters  Inform site subscribers of site changes, special offers, etc. Content-Update Reminders  E-mail reflecting user interest in a particular content area Broadcast Events  Events can be broadcast from a website (webcast) that allows limited user control over such things as camera angle INTERACTIVE E-Commerce Dialogue  Organizations and users trade e-mails regarding order placement, tracking and fulfillment Customer Service  Organizations can provide customer service through trading e-mails or live online dialogue User Input  User-generated content such as supplier ratings and user feedback to the site INTERACTIVE E-Commerce Dialogue  Organizations and users trade e-mails regarding order placement, tracking and fulfillment Customer Service  Organizations can provide customer service through trading e-mails or live online dialogue User Input  User-generated content such as supplier ratings and user feedback to the site

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–36: One-to-Many, Non-Responding Example — TheStandard.com Communicates with users through mass mailings targeted at defined audiences: Note: TheStandard.com is out of business.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–36: One-to-Many, Non-Responding Example — CNN.com Communicates with users through mass mailings targeted at defined audiences: CNN.com sends out breaking news e-mail alerts to interested users.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–37: One-to-Many, Responding Example — BizRate.com Communicates with a mass user group logged on as registered users or through e-mailings targeted at specific users: Customers rate their experience with online merchants; these ratings are gathered and communicated to registered users of BizRate.com.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–38: One-to-Many, Live Interaction Example — Accrue 2000 Web Seminar Allows users to interact with the site live, with information exchanged back and forth in real time: This site recently broadcast a live seminar; registered users were able to participate by asking questions via chat in real time.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–39: One-to-One, Non-Responding User Example — Hallmark.com Sends personalized messages to users to address specific user interests or needs, but there are no means for customer response: Hallmark.com allows users to manage their schedules by reminding users of important upcoming dates (birthdays, anniversaries, etc.).

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–40: One-to-One, Responding User Example — Amazon.com Sends users personalized messages that address specific user interests or needs with the opportunity for users to respond: Users can create their own storefront using Amazon’s zShops. Users post all information related to the products they wish to sell on Amazon’s site; they can also check order status on the site and be notified of sales via e-mail.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–41: One-to-One, Live Interaction Example — LivePerson.com Sends and receives personalized user messages or carries on chat sessions that address specific user interests or needs: This site offers online customer support in real time via chat sessions.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–42: The 7Cs of CarPoint CarPoint closely resembles a one-to- many non-responding site, in that it broadcasts vast amounts of information and content with very little direct feedback from users. CarPoint utilizes a simple and straightforward approach to communication with users:

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–43: Dimensions of Connection Home Site Background Outsourced Content Links % of Home Site Content Pathway of Connection ? Sites connect with other businesses in the following ways: KEY Home site Connected Sites Links can take the user completely outside of the home site Links can take the user to a new site, but the home site is still in the background Site content is derived from third parties %? What percentage of content originates from the home site and how much is outsourced? Does the site lead users to other sites, or does it simply retrieve information from outside sites?

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–44: Intro to Six Connection Archetypes Destination Each archetype will be defined and an example of each will be given: Hub Portal Affiliate Meta-Software Outsourced Content PATHWAY-OUT Links lead the user outside the environment of the site; links are absolute in that the user’s click causes an exit from the original website. PATHWAY-OUT Links lead the user outside the environment of the site; links are absolute in that the user’s click causes an exit from the original website. PATHWAY-IN Links are hybrid; the user’s click causes the retrieval of material from the same or other sites without exiting the current website. PATHWAY-IN Links are hybrid; the user’s click causes the retrieval of material from the same or other sites without exiting the current website.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–45: Destination Site Example — NYTimes.com Exclusively provides site-generated content with very few links to other sites: NYTimes.com not only includes the daily content of the newspaper, but also publishes exclusive feature stories online.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–46: Hub Site Example — IndustryCentral.net Provides a combination of site-generated content and selective links to sites of related interests: This is a motion picture and television industry site, a hub that provides external links to various local film commissions, production studios and film festivals.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–47: Portal Site Example — Yahoo.com Exclusively provides links to a large number of other sites: Yahoo is the classic example of a portal; users can search the Web and find links to thousands of other websites related to their topic of interest.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–48: Affiliate Programs Example — Onhealth.com and Proflowers.com Directs users to affiliated websites through general links, links embedded in site banners, or other advertising materials: Onhealth.com provides a link to Proflowers.com so users can have access to supplemental offerings, including those that the home site cannot fulfill.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–49: Outsourced Content Example — Real.com Contains content generated by third parties: Everything users find on Real.com is generated by a third party; Real.com is simply a distributor of Web-based media.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–50: Meta-Software Example — RUSure.com Consists of utility and plug-in software applications created to assist users in narrowly defined tasks: Note: RUSure.com is out of business.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–51: Meta-Software Example — CNet.com Consists of utility and plug-in software applications created to assist users in narrowly defined tasks: Users can find thousands of available software downloads

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–52: The 7Cs of CarPoint CarPoint makes use of affiliate relationships; clicking on any link or banner ad will take you to another company’s site, where you can drill down into what you are interested in finding. Notice the links to financing companies and insurance agencies. CarPoint’s strategy for connecting with other businesses is essential to its success:

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–53: Dimensions of Commerce There are many tools that sites provide to originate and facilitate commerce: TOOLS FOR ENABLING COMMERCE Registration  Allows the site to store information about users and user preferences Shopping Cart, One-Click Shopping  Facilitates online shopping by making it more user-friendly Security, Credit-Card Approval  Enables online transactions by allowing users to securely share credit-card information Orders Through Affiliates  Sites must be able to track orders that come from and go to affiliates Configuration Technology  Users can test product compatibility, and price trade-offs and product substitutions online. Order Tracking, Delivery Options  Once orders are placed on the site, users can choose how they would like their products delivered and track those orders from the site to their front door. TOOLS FOR ENABLING COMMERCE Registration  Allows the site to store information about users and user preferences Shopping Cart, One-Click Shopping  Facilitates online shopping by making it more user-friendly Security, Credit-Card Approval  Enables online transactions by allowing users to securely share credit-card information Orders Through Affiliates  Sites must be able to track orders that come from and go to affiliates Configuration Technology  Users can test product compatibility, and price trade-offs and product substitutions online. Order Tracking, Delivery Options  Once orders are placed on the site, users can choose how they would like their products delivered and track those orders from the site to their front door.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–54: Archetypes of Commerce (Transaction Models) Auction PricingReverse AuctionCatalog Pricing Demand AggregationHaggle Pricing The following are Internet-based transaction models: KEY Buyer Seller Seller dictates price to buyer Multiple buyers bid (seller chooses highest bid) Multiple sellers bid (buyer chooses lowest bid) Buyer demand is aggregate d to achieve economie s of scale Buyers and sellers negotiate

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Table 4–3: Drill Down — Commerce Origination vs. Facilitation Commerce Origination Commerce originating at a site, achieved through acquisition of new customers and loyalty-building among existing customers New customer acquisition tools include: –Online advertising –Banner ads at other sites –URL listing in industry catalogs –Sponsorships of online events or other site activities –Viral marketing –Marketing with the assistance of existing customers, who pass marketing messages along to friends or colleagues –Examples include marketing footers at the end of user e-mail messages and prompts inviting users to send the site URL or the output of their activity on the site to others –Offline advertising –Advertisements on radio and television and in movie theaters –Sponsorships of offline events, such as conferences on the networked economy Commerce originating at a site, achieved through acquisition of new customers and loyalty-building among existing customers New customer acquisition tools include: –Online advertising –Banner ads at other sites –URL listing in industry catalogs –Sponsorships of online events or other site activities –Viral marketing –Marketing with the assistance of existing customers, who pass marketing messages along to friends or colleagues –Examples include marketing footers at the end of user e-mail messages and prompts inviting users to send the site URL or the output of their activity on the site to others –Offline advertising –Advertisements on radio and television and in movie theaters –Sponsorships of offline events, such as conferences on the networked economy Commerce Facilitation Commerce facilitated through the intervention of a third party directing traffic to a site, achieved through affiliations and partnerships Affiliations/partnerships –How they work –Home site signs up other sites in a partnership/affiliation program –Affiliate sites place a link on their sites that directs users to the home site –In some cases, a user gets directed to a site through an affiliate while remaining in the affiliate’s URL space –Participating affiliate sites receive a percentage cut (typically 5–10%) on all sales generated at the home site as a result of click-throughs from the affiliate sites –Incentives to affiliates –Financial: Affiliate sites receive a percentage of the sales they generate –Brand building: Being an affiliate to a well- known brand increases visibility –Improved capabilities: By linking users to additional sites, affiliates can increase their breadth of offerings Commerce facilitated through the intervention of a third party directing traffic to a site, achieved through affiliations and partnerships Affiliations/partnerships –How they work –Home site signs up other sites in a partnership/affiliation program –Affiliate sites place a link on their sites that directs users to the home site –In some cases, a user gets directed to a site through an affiliate while remaining in the affiliate’s URL space –Participating affiliate sites receive a percentage cut (typically 5–10%) on all sales generated at the home site as a result of click-throughs from the affiliate sites –Incentives to affiliates –Financial: Affiliate sites receive a percentage of the sales they generate –Brand building: Being an affiliate to a well- known brand increases visibility –Improved capabilities: By linking users to additional sites, affiliates can increase their breadth of offerings

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–55: The 7Cs of CarPoint  CarPoint has an interesting history when it comes to conducting commerce on the site: CarPoint purchased DriveOff.com in October of 2000, in an attempt to make direct sales to consumers through the site. Due to a shortage of customers and a recent push by automakers to establish their own sites, DriveOff.com was closed in February 2001, thus returning CarPoint to its original model of commerce — linking consumers and dealers through an affiliate program.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–56: The 7Cs of Schwab.com Context Schwab.com is largely functional; the only graphics used are those that display market behavior. Commerce Schwab is essentially a broker with a transaction-based revenue model. There are also fee services that Schwab offers. Connection Schwab.com’s content and information is largely generated in-house; there are no links to outside sites. Communication Schwab.com provides e-mail news alerts. User response is limited. Basically, the site is a one- to-many, non-responding site. Customization Schwab.com is highly customizable. Users can personalize the site’s content, layout, communication and access. Community There is very little interaction among Schwab.com users. The site focuses primarily on the financial needs of the individual. Content Schwab.com is an information- dominant site that generates all of its own material.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Exhibit 4–57: The 7Cs of Palm.com Context Palm.com takes an integrated approach to the look and feel of its site; there are prominent graphics, but also functionality. Commerce The Palm Store is located at Palm.com; hardware, software and peripherals can all be purchased. Connection Palm.com provides links to a number of alternate providers of software products in a meta- software environment. Communication Palm.com is a one-to-many non- responding site; it sounds out updates on product info, but users response is limited. Customization MyPalm allows users to personalize the site to handle all of their Palm data online. Community Palm.com has a community section with message boards, software exchange and other online user-to-user info. Content Palm.com is an information- dominant site with all of its content created in-house.

Last Updated: 10/03/01 Copyright  2002 by Marketspace LLC Chapter 4 Conclusion After today’s lesson, you should be able to answer the following questions: What are the seven design elements of the customer interface? What are the alternative “look and feel” approaches to design? What are the five content archetypes? Why be concerned with community? What are the levers used to customize a site? What types of communication can a firm maintain with its customer base? How does a firm connect with other businesses? What are alternative pricing models of commerce archetypes?

Copyright © 2002 by Marketspace LLC Rayport, Jaworski e-Commerce Chapter 4 Enhanced Lecture Slides Customer Interface Exhibits and Tables.

Similar presentations

Presentation on theme: "Copyright © 2002 by Marketspace LLC Rayport, Jaworski e-Commerce Chapter 4 Enhanced Lecture Slides Customer Interface Exhibits and Tables."— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Copyright © 2002 by Marketspace LLC Rayport, Jaworski e-Commerce Chapter 4 Enhanced Lecture Slides Customer Interface Exhibits and Tables.

Similar presentations

Presentation on theme: "Copyright © 2002 by Marketspace LLC Rayport, Jaworski e-Commerce Chapter 4 Enhanced Lecture Slides Customer Interface Exhibits and Tables."— Presentation transcript:

Similar presentations

About project

Feedback