E-Commerce Final Flashcards
Attracting people to your own marketing messages
Aquire Fans, let them know you’re here
Fan acquisition
encouraging others to interact with your content and brand
Worth their while to share, respond to you
Engagement
encouraging visitors to share their comments and likes with their friends
The sharing, makes them share
Amplification
a stable group of fans engaging and communicating with one another over a substantial period of time about your brand
Build loyal influencers, people associated them
Community
???
Brand strength (sales)
sharing outside the major social networks. (IM, email, texting etc.)
Social sharing offline
Dark Social:
no purchases
Marketing to Children (do’s & don’ts)
p.447
Measuring Marketing Results (FB)
the number of posts, comments, and respones. Number of views of brand page conent. The number of likes generated per visotr, the numbers of users who responed to games, contest, and coupons (particpation) the number of minuets on averrage that vistors stay on your page (duration) the rate of likes per post or other content)
Engagement (conversion rate
he % of likes, shares, or posts to other sites (the rate which fans share content)
Amplification (reach)
Intensity, how deeply involved and connected are they with the content they’re consuming
the number of posts, comments, and respones. Number of views of brand page conent. The number of likes generated per visotr, the numbers of users who responed to games, contest, and coupons (particpation) the number of minuets on averrage that vistors stay on your page (duration) the rate of likes per post or other content)
Engagement (conversion rate
The % of revaune sales that is generated by Facebook links compared to other platforms, such as email, search engine etc. The % of FB-sourced customer purchased compared to other sources of customers (conversion ration). The conversion ratio for friends of fans.
Brand Strength/Sales (e.g. conversion ratio)
(summarized on chart on page 482)
Location-Based Marketing Tools and Campaigns
(see page 505 for summary)
Understand how the E-Commerce Technology Dimensions have potential ethical, social and political impact
Targets messages to users based on location
Marketing of location-based services
Location-Based Marketing Tools and Campaigns
Rights that specify claims and duties with regard to the communication, collection, access, use, and control of information. Information rights include the rights to privacy, intellectual property, free expression, and access to information
Information rights
Who will control what will be controlled and how will the controls be implemented with Ecommerce
Governance:
Rights that specify claims and duties with regard to the communication, collection, access, use, and control of information. Information rights include the rights to privacy, intellectual property, free expression, and access to information
Information rights Later pt 2
How should we get everyone to have internet? Should they be allowed in cars? Are goats responsible for schools? Are certain online activities a threat?
Public safety and welfare
How property rights can be enforced when things can be easily distributed
Property rights
A feature of political systems in which a body of law is in place that permits individuals to recover the damages done to them by others
Liability
Individuals, society and organizations should be held accountable to others for the consequences of their actions
Accountability
the process in which laws are known and understood and there is ability to appeal to higher authority to ensure that laws have been correctly applies
Due process p.510
sticky situation
Dilemma -
Identify and clearly describe the facts Define the conflict or dilemma and identify the issues Identify the stakeholders Identify the options you can take Identify potential consequences
Dilemma (define & five-step process to address)
the process in which laws are known and understood and there is ability to appeal to higher authority to ensure that laws have been correctly applies
Laws are known, understood
Ability to appeal to higher authorities to ensure laws applied correctly
Due process p.510
protects original forms of expressions such as writings, art, drawings, photos, movies, performances, and computer programs from being copied by others for minimum of 70 years
does not protect ideas- just their expression in a tangible medium such as paper, cassette tape, or handwritten notes.
Copyright law
- Identify and clearly describe the facts
- Define the conflict or dilemma and identify the issues
- Identify the stakeholders
- Identify the options you can take
- Identify potential consequences
Dilemma (define & five-step process to address)
Golden Rule Universalism Slippery Slope Collective Utilitarian Principle Risk Aversion No Free Lunch The New York Times Test The Social Contract Rule
Ethical Principles/how to analyze intended action (eight examples in your text on page 510)
Protects original forms of expression (not ideas) from being copied by others for a period of time
It protects against copying of entire programs or their parts. Drawback is that the underlying ideas behind the work are not protected, only the expression in a work.
Copyright -
any behavior that would weaken the connection between trademark and product
Dilution:
Involves the registration of an infringing domain name or use of an existing trademark for the purpose of extorting payments
Cybersquatting:
Grant the owner an exclusive monopoly for 20 years on ideas behind an invention
Invention must be new, non-obvious, novel
Encourages inventors
Promotes dissemination of new techniques through licensing
Stifles competition by raising barriers to entry
Patent
used to identify and distingue goods and indicate their source
Purpose
Ensure consumer gets what is paid for/expected to receive
Protect owner against piracy and misappropriation
Infringement
Dilution
Federal Trademark Dilution Act and Trademark Dilution Revision Act
Uniform Rapid Suspension System (U R S)
Trademark
Involves bypassing the homepage and going directly to content page
Deep Linking:
Integrating web operations with physical store operations
Omni-Channel
General Merchandisers Online Retailers Gasoline & Fuel Consumer Durables Specialty Stores Food & Beverage MOTO
Composition of US Retail Industry (no numbers/percentages, just definitions)
Can new entrants be barred from entering the industry through high capital costs or intellectual properly barriers (such as patents and copy rights)?
Barriers to entry
using trademarked words in a websites meta tag
Metatagging
Can customers choose from many competing suppliers and hence challenge high prices and high margins?
Existence of suitable products
Business procedures, formulas, methods of manufacture and service delivery May not be unique or novel Trade secrets are (a) secret (b) have commercial value to owner (c) owner has taken steps to protect
Trade Secrets
All Internet activities charged the same rate, regardless of bandwidth used
Net Neutrality
Non-local nature of Internet commerce complicates governance and jurisdiction issues
Taxation
Integrating web operations with physical store operations
Leverage value of physical store
Types of integration, e.g. online order, in-store pickup
Omni-Channel
products are made prior to orders received based on estimated demand
Supply-push model
p. 606!!!!!!
Understand advantages and challenges of online retailing
Focuses on both industry and firm itself
Key industry strategic factors Barriers to entry Power of suppliers Power of customers Existence of substitute products Industry value chain Nature of intra-industry competition
Strategic Analysis—Industry Level (e.g. barriers to entry) p. 604
refers to a kind of DRM that uses proprietary file formats, operating systems, and hardware to control the use of content after initial sale
Walled Garden -
Convergence (means being able to get any conent you want, when you want it, on whatever platfrom you want it
Media Convergence - p. 659
DEVLOPMENT OF HYBRID DEVICES THAT CAN COMBINE THE FUNCTIONALITY OF TWO OR MORE EXITNG MEDIA PLATOFROMS in single device
Like media, books, newspapers, tv, games etc
Examples: iphone being able to be used as phone, for music, tv, photos, etc
Technological Convergence -
Convergence in the design, production, and distribution of content.
Today artist and writers assimilate new digital and internet tools into their toolkits
Ex – garage band from apple enables low-budget independent bands to mix and control eight different digital music tracks to produce professional sounding records on a shoestring budget. Writers of books are beginning to think about video and interactive versions of their books. Online news papers are changing the news cycle to 24-hour stream
Content Convergence
The merger of media entirepses into powerful, synergistic combinations that can cross-market conent on many different platfroms and create new works that use multiple platfroms
Takes place through purchases or stragetic alliances
Each type of media use to have its own seprate industry typially compuse of large players, ex. Hollwood based production stuios or book publishers
Internt has cosed on media and intner fris that make partnerships a necarry business propstion.
Industry Convergence
Publishing
Newspapers (print & online)
Books (print & e-books)
Magazines (traditional & specialty)
Television
Cord-Cutters
Games (growth trends in mobile gaming)
Music (streaming & downloaded)
Trends:
paid subscription service
Paywall
companies that have a network of physical stores as their primary retail channel, but have also introduced online offerings
Examples: Walmart, Macy’s, JCPenney, Staples, Target
Bricks-and-Clicks
omni channel merchants
selling movies online for download and ownership. The movei industry deries revune from both physical fromats (DVDs) and digital fromats like selling movis fro download
Lead players: Apple’s iTunes store. Customers purchase and own the downloaded movie.
Electronic Sell Through (EST p.698) -
selling access on cable or the internet to specific movies a la carte on cable tv and over the internet
Lead players: apple also the leader in iVOD a la carte rentals, but other major players include amazon, Hulu, and cable systems which also rent movies on demand.
Internet Video On Demand (iVOD) -
Staging the release of a new movie across different distribution channels with different prices.
How Hollywood archives market segmentation by controlling release window, staggering market releasee.
a from of price discrimation: those willing to see movie first willing to pay higher
Releasee window is chaning under pressure from consumers to realse films ealier to streaming and VOD services. RW shrinking from 9 to four months, esp for bad movies
Release Window - p.699
(free conent can drive customers to paid conent, as streaming services like pandora and spofity have discovered
Media Revenue Models:
a freemium model that allows users access to free streamed music for a limited number of hours per month and relies on advertising to grenade revenue
Ad revenues typical exceed subscription revenues by substantial margins
Advertising revenue supported -
p. 668 Refers to the combination of technical and legal means for protecting digital content from unlimited reproduction with out permission
D R M hardware and software encrypts content
Streaming content
Difficult to copy
Walled garden
Digital Rights Management (DRM)
A la carte networks examples showtime(premiere cable network original programing available on apple, Roku, Hulu and Vue. $11 a month) , HBO now, CBS all access (live tv in selected cities on-demand streaming of past shows in CBS archives).
A la Carte vs. Subscriptions (All You Can Eat) p. 695
is watching a tv series over an entire season as installments. Now being supplanted by binge watching entire seasons online over a few days.
Netflix is leading subscription streaming service both in terms of number of subscribers and time spent using the service
Duration is grown faster and large than iVOD and reflected in market share of Netflix and apple.
subscription – all you can eat
A la carte pay from what you use
Linear tv
do multiple things with one device, Ipad
DEVLOPMENT OF HYBRID DEVICES THAT CAN COMBINE THE FUNCTIONALITY OF TWO OR MORE EXITNG MEDIA PLATOFROMS in single device
Like media, books, newspapers, tv, games etc
Examples: iphone being able to be used as phone, for music, tv, photos, etc
Technological Convergence -
Merging what you can do, it has become easier with easier tech
Three aspects: Design, production, distribution
New tools for digital editing and processing
Convergence in the design, production, and distribution of content.
Today artist and writers assimilate new digital and internet tools into their toolkits
Ex – garage band from apple enables low-budget independent bands to mix and control eight different digital music tracks to produce professional sounding records on a shoestring budget. Writers of books are beginning to think about video and interactive versions of their books. Online news papers are changing the news cycle to 24-hour stream
Content Convergence
Merger of media enterprises into firms that create and cross-market content on different platforms
The merger of media entirepses into powerful, synergistic combinations that can cross-market conent on many different platfroms and create new works that use multiple platfroms
Takes place through purchases or stragetic alliances
Each type of media use to have its own seprate industry typially compuse of large players, ex. Hollwood based production stuios or book publishers
Internt has cosed on media and intner fris that make partnerships a necarry business propstion.
Industry Convergence
significantly narrower. Practice has experts and professionals who are sharing techniques to deal with problems. They are doers.
Some non-profits
Advertisers like it because they can put up ads for niche communities
As an advertiser you can get more bang for your buck
Practice Communities:
hobbyists, people who are interested in following a topic
Interest Communities
linear tv, whenever you want
Use of the internet to deliver entertainment services to the home on cable TV or FiOS networks. Developed by powerful technology companies
Consumers have access to television shows and some full-length feature movies using the household internet service rather than cable tv service.
Refers to the fact that Entertaiment service rides on top of other network services lie cable tb and telephone. With ott tv does not have to be linear, do not have to purchase a lot of bundles
Over-the-Top Services (OTT) (p.695) -
set up by companies, government etc.
Spread the word of their product
Sponsored Communities
delivering content that people find interesting and relevant. Unfortunately, it can reinforce mindsets creating people with extreme beliefs
Computer algorithms p. 737:
the difference in times before sent to dvd or streaming
Staging the release of a new movie across different distribution channels with different prices.
How Hollywood archives market segmentation by controlling release window, staggering market releasee.
a from of price discrimation: those willing to see movie first willing to pay higher
Releasee window is chaning under pressure from consumers to realse films ealier to streaming and VOD services. RW shrinking from 9 to four months, esp for bad movies
Release Window - p.699
a place where people can have discourse, but it only encourages likeminded discourse
Echo Chamber
everyone has the same idea, i.e.: when Facebook would only show stories that reaffirmed peoples’ political stance on their newsfeeds
Filter Trap:
C2C, B2C, English auction, ducth intnenet uction, name your own price auction, penny (bidding fee) auction,
Online Auctions Types
Delayed consumption costs Monitoring costs Equipment costs Trusts risks Fulfillment costs
Online Auctions Risks
Liquidity Price discovery Price transparency Market efficney Lower transcation costs Consumer aggreation Network effects
Online Auctions Benefits
p.727
first social media group
The Well
buisenss sells goods it owns or controls using various dymanic pricng models
B2C
Facebook, twitter. Lot of people organized in general communities. Generally supported by ad space. Little filtering.
Offer opportunities to interact with general audience organized into general topics
Advertising supported by selling ad space on pages and videos
General Communities:
Offer focused discussion groups, help, and knowledge related to area of shared practice
May be profit or nonprofit; rely on advertising or user donations
significantly narrower. Practice has experts and professionals who are sharing techniques to deal with problems. They are doers.
Some non-profits
Advertisers like it because they can put up ads for niche communities
As an advertiser you can get more bang for your buck
Practice Communities:
hobbyists, people who are interested in following a topic
Offer focused discussion groups based on shared interest in some specific subject
Usually advertising supported
Interest Communities
Interest-based social networks:
based on what the individuals self-identify as. Part of the members identity
Ie: associations, organizations
Offer focused discussion and interaction with other people who share same affinity (self or group identification)
Advertising and revenues from sales of products
Affinity Communities
: Like religious, or race
set up by companies, government etc.
Spread the word of their product
Created by government, nonprofit, or for-profit organizations for purpose of pursuing organizational goals
Sponsored Communities
Setup by companies with goal to promote product
Produce relationship-based content
Affinity groups ex: profiles, newsfeed, etc.
delivering content that people find interesting and relevant. Unfortunately, it can reinforce mindsets creating people with extreme beliefs
Computer algorithms p. 737:
buyer wins by the smallest amount, but buyer did not know how much they were really willing to pay
Seller’s lament:
people feel bad for losing the product after auction is over
Loser’s lament
p.751 (e.g. bid rigging)
Types of Auction Fraud
giving negative feedback to
Fraud:
Delayed consumption costs
Monitoring costs
(Solution: Fixed pricing)
Equipment costs
Trusts risks
(Solution: Rating system)
Fulfillment costs
Merchants: Nonpayment, false bidding
Online Auctions Risks
liquidity
Benefits of Auctions:
Conversations Engagement Now we’re trying to engage in conversations Need to be relevant Smartphones have impacted us Impact of smartphones and tablets
New marketing concepts
Strong ties between consumer use of social networks, mobile devices, and local shopping
Social-mobile-local nexus
item up for sale, people bid within a timeframe
Single item up for sale to single seller
Highest bidder wins
English Auction
don’t need to know it offhand
Public ascending price, multiple units
Final price is lowest successful bid, which sets price for all higher bidders
Dutch Internet Auction:
people pay whatever price they want. You have to commit to the purchase once you name your price.
Users specify what they are willing to pay for goods or services and multiple providers bid for their business
Prices do not descend and are fixed
Consumer offer is commitment to buy at that price
Enables sellers to unload unsold excess capacity
Example: Priceline
Name Your Own Price Auction: it’s gonna go out of stock
auction site has taken possession of the item. Need to purchase the right to bid.
Middleman needs to be paid
Must purchase bids ahead of time
Items owned by the site
Timed auction; last and highest bidder wins
Penny Auction: bidding fee
Fan acquisition, Engagement, Amplification, Community, Brand strength in terms of sales.
The Social Marketing Process
cognitive dissonance, buyer’s remorse
i spent too much
Winner’s regret: lament
Over 255 million Americans use a mobile device for Internet access
Devices used multiple times per day
By 2021, m-commerce will account for more than 50% of all retail and travel e-commerce.
Challenges: Mobile search
Motivating consumers to click
Raising fees for each click
Mobile Marketing
people feel bad for losing the product after auction is over
i should’ve gone up
Loser’s lament
p.751 (e.g. bid rigging)
Bid rigging, price matching, shill feedback, feedback extortion, shill bidding, bid siphoning
Types of Auction Fraud
giving negative feedback to
information asymmetries between buyers and sellers, causing auctions to fail
Fraud:
Provide services to users based on location
Personal navigation
Point-of-interest
Reviews
Friend-finders, family trackers
Consumers have high likelihood of responding to local ads
Location-based services
liquidity Price discovery Price transparency Market efficiency Lower transaction costs Consumer aggregation Network effects
Benefits of Auctions:
Search engines ads
Navigation of the Web
Commerce
Content (owned and others’)
Goal is to keep visitors present and viewing ads
Portals p.752
Attempt to attract very large general audience
Retain audience by providing in-depth vertical content channels
Example: Yahoo
General Purpose p.754 portals
Attempt to attract highly-focused, loyal audiences with specific interest in:
Community
Specialized content
particular community
Vertical Market
Location-based considerations Action-based, time-restrained offers and opportunities Target demographic and location-aware mobile user demographics Strategic analysis of marketspaces Measuring marketing results Same measures as mobile and Web marketing Metrics for unique characteristics Inquire Reserve Click-to-call Friend Purchase
Location-Based Marketing Campaigns
Information rights
Property rights
Governance
Public safety and welfare
Four major categories of issues by internet
Ethics Responsibility Accountability Liability Due process
Basic ethical Concepts
Moral right of individuals to be left alone, free from surveillance or interference from other individuals, organizations, or state
Privacy
- Right to control information collected about them
- “Right to be forgotten”
- Right to know when information is collected and give consent
- “Informed consent”
- Right to personal information due process
- Right to have personal information stored in a secure manner
Information privacy: 4 premises
Information Rights
Data collected includes
Personally identifiable information (P I I)
Anonymous information
Types of data collected
Name, address, phone, e-mail, social security
Bank and credit accounts, gender, age, occupation, education
Preference data, transaction data, clickstream data, browser type
Information Collected by Websites
Profiling and ad targeting Social network privacy Sharing of information by marketers Mobile phone privacy Digital assistant privacy
Key Issues in Online Privacy of Consumers
Creation of data images that characterize online individual and group behavior
Anonymous profiles
Personal profiles
Facial recognition a new dimension
Profiling
Track consumer and browsing behavior on Web
Dynamically adjust what user sees on screen
Build and refresh profiles of consumers
Advertising networks
Fair Information Practice (F I P) principles
Informed consent: Opt-in and opt-out
Harm-based approach
“Do Not Track” mechanism
Recent emphasis is to give consumer rights regarding collected personal information
F T C’s current privacy framework
Scope:
Applies to all commercial entities
Privacy by Design:
Companies should promote consumer privacy throughout the organization and at all stages in the development of products
Simplified Choice
Companies should simplify consumer choice
Greater Transparency
F T C
All tangible and intangible products of human mind
Intellectual property:
All tangible and intangible products of human mind
Intellectual property:
Self-regulation, through variety of Internet policy and technical bodies, co-exists with limited government regulation
Mixed mode environment
Self-regulation, through variety of Internet policy and technical bodies, co-exists with limited government regulation
Mixed mode environment
Most similar to online retail sector
Sophisticated order entry, delivery, inventory control systems
Mail order/telephone order (M O T O) sector
Most similar to online retail sector
Sophisticated order entry, delivery, inventory control systems
Mail order/telephone order (M O T O) sector
Firm value chain Core competencies Synergies Technology Social and legal challenges
Strategic Analysis
Firm-specific factors
Revenues Cost of sales Gross margin Operating expenses Operating margin Net margin Pro forma earnings-Earnings before interest, taxes, depreciation, and amoritization (E B I T D A)
Financial Analysis Factors Statements of Operations
Asset Current assets Liabilities Current liabilities Long-term debt Working capital
Financial Analysis Factors
Balance sheet
How firm is performing
Financial analysis
Ability of firms to survive as profitable business firms during specified period (i.e., 1-3 years)
Economic viability:
Amazon, Newegg, Overstock, Wayfair, Blue Nile
Virtual merchant
Virtual merchant
Omni-channel merchants (bricks-and-clicks)
Catalog merchant
Manufacturer-direct
Types of E-tailing business models
Growing faster than pure online firms
Lower online customer acquisition costs
Multi-channel firms
Cannot provide all services that require face-to-face interaction
Pure online firms
Comparison shopping services, independent financial advice, financial planning
Revenues from advertising, referrals, subscriptions
Example: Yahoo! Finance, Quicken, M S N Money
Financial portals
Pulls together all of a customer’s financial data at a personalized website
Privacy concerns: control of personal data, security, and so on
Example: Yodlee
Account aggregation
Pulls together all of a customer’s financial data at a personalized website
Privacy concerns: control of personal data, security, and so on
Example: Yodlee
Account aggregation
Television viewing, music consumption remains strong, reading has increased
Increase in total demand for media, including traditional products like books
Physical products replaced by digital
Television, books, media, trends
Subscription
A la carte
Advertising supported (free/freemium)
Online content delivery revenue models
Cable
Subscription:
Just buy what you want, ex: just the 10 channels you want
A la carte:
Free:
Ads, low quality
Fee:
pay for items, higher quality
Print
Movies
Music
Three separate segments
Most troubled segment of publishing industry
Four factors in decline
Growth of Web, mobile devices as alternative medium
Alternative digital sources for news
Failure to develop suitable new business models
Rise of social media and role of directing traffic to newspaper content
Online Newspapers
Physical magazine circulation falls after 2001
Exception is special interest magazines
Digital magazines!!!!!! Ad revenue growing Total audience size increasing Popular websites drive traffic to online magazines The New Yorker Today app Magazine aggregators
Magazines Rebound
After several years of explosive growth, e-book sales have flattened in recent years-$7.5 billion in 2017
Roughly equal to physical book sales for the first time
New channel for self-publishing authors
Major publishers still dominant source of book content
While some large bookstore chains have disappeared, the number of small independent bookstores has grown by 35% since 2009.
E-books and Online Publishing
Retailers pay wholesale price and establish retail price
Wholesale model
Distributor as agent must charge publisher’s retail price
Agency model
Transition to new Internet delivery platforms Streaming and downloading services O T T: Over-the-top (Internet) delivery Mobile platform Binge watching versus linear T V Social network influences Uncertain future for cable T V growth
Television and Movies
Transition to new Internet delivery platforms Streaming and downloading services O T T: Over-the-top (Internet) delivery Mobile platform Binge watching versus linear T V Social network influences Uncertain future for cable T V growth
Television and Movies
Most disrupted of content industries Move from physical to digital product Digital revenues: 80% of all revenues Two types of digital music services Streaming subscription services (Internet radio) Digital download (download to own)
Music
Online gaming has had explosive growth Pokémon Go; Mobile platform Types of digital gamers Casual Social Mobile-fastest growing market Massively multiplayer online (M M O) Console Business models in flux E-sports, Twitch.tv
Games
Group of people
Shared social interaction
Common ties
Sharing an area for period of time
social network
Marketing and branding
Reaching younger audience
Listening tool, monitoring online reputation
Collaboration tool
Business use of social networks
Can be used to
Sell goods and services
Allocate resources
Allocate and bundle resources
Online Auctions
Rating systems, watch lists, proxy bidding
Investigation units
Fraud prevention solutions include:
