Download E-Commerce Ch.3 Selling on the Web | ECE - Electronics 3 - Advanced and more Quizzes Electronics in PDF only on Docsity!
Revenue Models for Online Business (6)
- web catalog2. fee-for-content/access3. advertising supported4. mixed model (ad. suported + subscription)5. fee for transaction (brokered online)6. fee-for-service (delivered online) ** Same model can work for both sale types: B2C & B2B TERM 2
1. Web Catalog
DEFINITION 2 Appealing for discount retailers Provides an additional channel Provides product info & reviews Used for personalization & communication TERM 3
Multiple Marketing Channels (use of)
DEFINITION 3 Allows more customer to be reached at a lower cost.Marketing channel examples:- physical stores- web sites- mailed catalogs or newspaper inset TERM 4
Adding the Personal Touch
DEFINITION 4
- Many adapted catalog sales model to web- Display clothing photos categorized by type prices, sizes, colours, and tailoring want customers to examine clothing online and place orders through web site virtual model Ex. Land's End online shopping assistance TERM 5
2. Fee-for-Content Revenue Models
DEFINITION 5 Legal, academic, business & technical Ex. EBSCO e-books, music & video streaming. Ex. iTunes, Netflix, Spotify Anderson's freemium model (free for many, fee for few) ** digital content revenue models: companies sell rights to access info they own (quiz)
Online Music
- Recording industry slow to embrace- Largest stores: Amazon MP (first store to offer DRM-free mp3 format). Apple iTune's, Google PlaySubscription services: Pandora Internet Radio, Spotify, RhapsodyEarly complications:- no single store offers all music- individual stores promote their own music file formatsDRM: digital rights management - intended to curtail music piracy TERM 7
Online Video
DEFINITION 7
- sold or rented and either downloaded or streamed- past limitations were file size, cannibalizing other sales and technological barriers- many pay and free providers including Netflix, Amazon, Hulu, HBO, Showtime & Youtube TERM 8
3. Advertising-Supported Revenue
DEFINITION 8 Search/directories/portals Ex. Yellow Pages classified advertising sites Ex. autotrader.ca newspaper publishers ** this is the model that is used by network TV in the US (quiz) TERM 9
General Interest Strategy
DEFINITION 9 advertisers pay low rates to reach large numbers of undifferentiated visitors TERM 10
Specific interest strategy
DEFINITION 10 advertiser pay high rates to reach small numbers of visitors with specific interests related to the theme of the website
Reintermediation
the introduction of a new intermediary (fee-for-transaction Web site) into a value chain TERM 17
6. Fee for Service
DEFINITION 17
- Increasing variety of fee-based web servicesEx. games & entertainment to financial advice and professional servicesboostmygrade.com TERM 18
Evaluating a website (3)
DEFINITION 18
- Web presence (image and branding)- web usability/utility- usability factors TERM 19
1. Web Presence
DEFINITION 19 attractive & easy to use ranks high on stickiness provides rich links/content provides help and support portrays consistent image reinforces positive image builds trust engages for return-ability TERM 20
2. Web
Usability/Utility
DEFINITION 20 customer centric varied motivations - browsers, researchers, bargain hunters, one time shoppers build for accessibility 2 way communication
3. Usability Factors
- learnability2. efficiency3. memorability4. errors5. satisfaction TERM 22
Digital products
DEFINITION 22 tend to have large up-front costs. Once those costs are incurred, additional units can be made at very low additional cost. TERM 23
Cannibalization
DEFINITION 23 AKA channel conflict TERM 24
Mass Media Approach
DEFINITION 24 firms prepare advertising and promotional materials about the firm and its products or services and broadcast them to potential customers (quiz) TERM 25
Travelocity
DEFINITION 25 Which is owned by Sabre, was based on the Sabre computer system that traditional agencies used to book flights and hotel rooms (quiz)
