Mid Term Flashcards
Gordon Moore
- Co-Founder of Intel
- Established Moore’s Law
Mass Customization
The product itself can be changed to what the consumer wants
One to one marketing
Each customer gets a personalized experience
ex: product recommendations
Personal Media
People collect all their favorite media to inform and entertain themselves
Moore’s Law
Each generation of computer memory chips:
- pack the same technology into half the space
- doubles performance
- released about every 18 months
Early History of the Web (3)
- Started in 1969 as ARPANET
- Governed by the National Science Foundation
- Commercial transactions were forbidden
ARPANET
- The first version of the internet
- A network for academic and military use
History of the Web: 90s to Now (4)
- Web pages and browsers appeared in 1993
- 1st generation of e-business was a “gold rush”
- Dot-com crashed in the late 90s
- New profitable business models today
Paradigms of the Industrial Age (3)
- Mass Production
- Mass Marketing
- Mass Media
Paradigms of the Digital Age (3)
- Mass Customization
- One to One Marketing
- Personal Media
Web 2.0 Definition
- The 2nd generation of internet-based services
- Emphasize online collaboration and sharing among users
- “Architecture of Participation”
The Semantic Web
- Content expressed in format read by “intelligent” software agents
- Machines perform basic tasks and transactions without human direction
Web 2.0 Characteristics (6)
- Social Networking
- User-generated content
- Remixing of digital content
- Collaboration
- Open Source
- Empowered Individuals
Principles of Wikinomics (4)
- Openness
- Peering
- Sharing
- Acting Globally
Principle of Wikinomics: Openness
- Open and transparent to customers, competitors, suppliers, and public
- Sharing knowledge
- Encouraging contributions from outside the organization
Principle of Wikinomics: Peering
A horizontal network of peers collaborating without formal hierarchical structure
Principle of Wikinomics: Sharing
- Sharing intellectual property to innovate more quickly and create more value
- Sharing computer power, bandwidth, and other resources
- Collaborating with competitors
Principle of Wikinomics: Acting Globally
- Use global alliances and human capital to gain access to new markets, ideas, and technologies
- Eliminate the redundancies of multi-national operations
- Build diverse, multi-national workforce
Hyper-connectivity
- The state of being constantly connected
- Person to Person (social media, Skype, email)
- Computing device to network (Google Drive, location awareness)
Components of Smart Products
- Physical components
- Smart components
- Connectivity components
Physical Components of a Smart Product
Mechanical, electrical parts
Smart components of a Smart Product
Enhanced interface via sensors, microprocessors, software, embedded operating system
Connectivity components of a Smart Product
- Wired or wireless protocols for communicating
Levels of Capabilities, Lowest to Highest
- Monitoring
- Control
- Optimization
- Autonomy
Levels of Commitment, Lowest to Highest
- Activity
- Business Process
- Enterprise
- Pure Play
8 Web Business Models
- Brokerage
- Advertising
- Infomediary
- Merchant
- Manufacturer
- Affiliate
- Community
- Subscription
Brokerage Model
- Exchange (Orbitz)
- Demand collection (Priceline)
- Auction (eBay)
- Transaction (PayPal)
- Search Agent (Shopping Bot)
Advertising Model
- Portal (Yahoo)
- Classifieds (Monster)
- Search Paid Placement (Google)
- User Registration (NY Times)
Infomediary Model
- Advertising Networks (DoubleClick)
- Audience Measurement (Nielsen)
- Metamediary (Edmunds)
Merchant Model
- Virtual merchant (Amazon)
- Catalog merchant (Land’s End)
- Click and Mortar (Barnes & Noble)
- Bit vendor (iTunes Music Store)
Manufacturer Model
- Direct (Dell)
- Purchase, lease, or licence
- Disintermediation: cut out the distribution partners
Affiliate Model
- Banner exchange
- Pay per click
- Revenue Sharing
Community Model
- Open source (Linux)
- Open content (Wikipedia)
- Public broadcasting (NPR)
- Social networking (Facebook)
Subscription Model
- Content Services (Netflix)
- Networking Services (Classmates)
- Internet services providers (AOL)
The Purpose of Pricing
To capture the percieved customer value
Fixed Pricing Strategies (4)
- Markup
- Volume-based
- Bundling
- Promotional
Markup Pricing
The cost of buying the product from the producer plus amounts for profit and expenses
Volume-Based Pricing
Establish separate price levels based on quantity purchased
Bundling Pricing
Establish price for a combination of more than one product/service
Promotional Pricing
Short term discount or incentive to purchase
Dynamic Pricing Strategies (4)
- Yield Management
- Negotiated
- Segmented
- Personalized
Yield Management
Adjust prices to fill unused capacity for perishable services
Negotiated
Price established through back and forth negotiation between buyer and seller
Segmented Pricing
Adjust prices for customer groups based on predetermined factors
Personalized Pricing
Customize pricing options for an individual customer
Cross-Subsidies (3)
- Get something free in return for buying another product or service
- Shifting cost from one product to another
- Fundamental pricing strategy
The Evolution of Pricing
Fixed -> Dynamic -> Free
Anderson’s Taxonomy of free pricing strategies (6)
- Freemium
- Advertising
- Zero marginal cost
- Cross-subsidies
- Labor exchange
- Gift Economy
Freemium (4)
- Web and software services
- Varying tiers of content
- Ratio of paid vs. free often as low as 1%
- Cost to serve other 99% is negligible
Advertising
Free content sponsored by advertisers such as: paid search, social ads, video sites
Zero Marginal Cost
Digital content distributed at virtually no cost to large audiences
Labor Exchange
Free web services in return for users who create content
Gift Economy
Altruistic sharing of talent and content
Copyright Myths (4)
- If it doesn’t have a ©, it’s not copyrighted
- If I don’t charge for it, it’s not a violation
- If it’s on the internet, it’s in the public domain
- If the copyright is not defended, it can be lost
Fair Use of Copyright Material Categories (6)
- Criticism
- Comment
- News reporting
- Teaching
- Scholarship
- Research
Fair use factors (4)
- Purpose of use
- Nature of copyrighted work
- Substantiality of use
- Effects on the potential market
Digital Millennium Copyright Act (5)
- Prohibits illegal software copying
- Limits liability of ISP’s
- Limits liability of nonprofit colleges
- Requires webcasters to pay licensing fees
- Does not limit traditional copyrights or change the doctrine of fair use
Software Infringement (3)
- Copyright infringement
- Counterfeiting
- Globally, over 1/3 of the software sold is illegal
Copyright Infringement
Loan software to others without licenses
Counterfeiting
Illegally copied software is duplicated and distributed
Licenses (2)
- A popular method of intellectual property protection
- Allow to buyer to use the product but restrict duplication or distribution
Two types of licenses
- Shrinkwrap/break-the-seal
- Clickwrap: user is required to click a button to accept terms
Creative Commons
Non-profit organization providing alternative copyright licensing
Attribution (3)
- Part of the creative commons
- Others may copy and use work and derivatives must give credit
- Symbol is a man in a circle
Noncommercial (3)
- Part of the creative commons
- Others may copy and use work only for noncommercial applications
- Symbol is $ with a slash through it
No Derivative (3)
- Part of the creative commons
- May use verbatim copies of original work but no derivatives
- Symbol is = in a circle
Cookies (3)
- Packets of data created and stored on the user’s hard drive in response to instructions received from a Web page
- Normally executed without any user action
- Allow marketers to track an individual’s online behavior
3 Purposes Cookies May Serve
- Create shopping baskets to hold purchases
- Recall stored sales information
- Collect user data
Remix Culture Manifestations (5)
- Sampling
- Dub
- Open source
- Peer to peer
- Mash-ups
Culture Jamming
Remix media to subvert message
3 Key Issues of Remix Culture
- Utilize traditional copyright or creative commons license
- Establish and publish privacy policy
- Balance personalized data against privacy accommodations
Common Domains (9)
- .com
- .net
- .biz
- .co
- .info
- .org
- .edu
- .ca, .jp, etc.
- .mobi
.com
Commercial and personal
.net
Internet providers
.biz
Commercial and business
.co
Commercial and business
.info
Commercial and personal
.org
Non-profits
.edu
Schools, colleges, universities
.ca, .jp, etc
Country specific
.mobi
Websites designed for mobile usage
ICANN (2)
- The Internet Corporation for Assigned Names and Numbers
- Regulates protocol and domain name assignment
Domain Challenges (3)
- More than 97% of the words in the dictionary have already been registered
- Every combination of 3 letters is already registered
- Cybersquatting and domain speculators
Average length of time spent on most sites
3 page views
Look ahead model
Decision to continue based on value of current page and expected value of any page yet to come
What do dynamic personalization systems do?
Adjust information to user goals
Dynamics of a web visit (4)
- Length of time
- Look ahead model
- Dynamic personalization systems
- Entry and exit points
Usability for Task-Oriented Sites (5)
- Users looking to solve problems want efficiency and effectiveness
- Fast response time
- Effective navigation
- Responsiveness to user goals
- Higher interactivity and quality content
Usability for Experiential Sites (3)
- Gaming and entertainment sites among the ‘stickiest’ and most profitable
- Different priorities than for task-oriented
- Emphasis on beauty, flow, engagement
Jesse James Garrett
Created the “Elements of User Experience” and the User Design Model
User Design Model, from Abstract to Concrete
- Strategy
- Scope
- Structure
- Skeleton
- Surface
Strategy Plane (2)
- What site owners want to accomplish
- What users want to get out of the site
Scope Plane (2)
- Identify features and functions of the site
- Defines how features and functions fit together
Structure Plane (2)
- Flow diagram of the site
- Defines the navigational routes and options of the site
Skeleton Plane (2)
- Physical placement of objects - buttons, tabs, navigation bars
- Page layouts optimized to provide impact and user efficiency
Surface Plane (2)
- Visual display of the site
- Combines text, images, navigation clues
How search engines work
Look for tags in the Index (NOT the whole internet)
Search Engine Optimization Strategies (6)
- Title Tags
- Site Content
- Headlines
- Descriptive URLs
- Meta Tags
- Popularity
Title Tags (3)
- Appear at the top of the browser
- 40-60 characters
- Unique to each page
Site Content (2)
- First 200 characters are most important
- Media/graphics can help build traffic
Headlines (3)
- Larger text
- html tags
- Sometimes bolding
Descriptive URLs
Path and file names
Meta Tags (3)
- Embedding additional information into HTML source code
- Description (what the page is about & its target)
- Keywords and phrases that anticipate search terms
Popularity (3)
- Who’s Linking to you
- Larger sites carry a larger weight
- Value of affiliates
