MAR 6936902

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MAR 6936-902

• E-Commerce Marketing
• Spring 2003Tampa--MBA
• Web Site Evaluation
• Rich Gonzalez
• March 24, 2003 (Week 12)

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URLs

• www.useit.com
• www.websitesthatsuck.com
• www.acsi.org
• www.lavasoftusa.com
• Several, see slides

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Agenda March 24, 2003

• Final Exam DetailsApril 28, 2003
• Useit.com and Nielsen
• Details Site/Model Evaluation Assignment
• Due For March 31---Web Site/Biz Model Evaluation
  and...
• Spyware

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Return Porter Papers

• WAP 5

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Final ExamApril 28, 2003

• Part 1SUBJECTIVE
• 3 Essay type questions
• Based on readings, text, discussions and papers

• Part 2OBJECTIVE
• 25-30 QuestionsMC, FIB, T/F
• Based on same

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For Today March 24

• The Power of Optimal Pricing, p68, Business2.0,
  July, 2002
• Price Smarter On the Net, p122, Baker, et al.,
  Harvard Business Review
• Startups May Die, But Not Their Bright Ideas,
  Steve Hamm, BusinessWeek, March 10, 2003
• E-Business Communications, Kleindl, Chapter 3
• WSJ   Web Sites Finally Take a Stab At
  Peddling Discounted Cruises, Evan Perez, March
  4, 2003

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For March 31

• E-Business Communications, Kleindl, Chapter 3
• www.acsi.org
• WSJRealNetworks Builds Fan Base For Broadband
  Video Service, Walter Mossberg, March 20, 2003

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In Class Quiz

• Worst Sites and Impressive Sites
• Selections

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Worst Sites

• Yahoo TravelDoes not always allow you to see
  the location of the hotel. Does not always
  display maphave to take address to mapquest.
• www.warner-criv.com...one of bigger competitors.
  Agonizing to find any product, the search is
  worthless...images and descriptions lacking...
  forces you to page through endless amounts of
  information...
• Not bad in a competitor...

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Worst Sites

• oraweb.ulaval.ca/pls/etu/adage_etudiantEach
  time I want to make a transaction, I have to
  enter my username and password... I lose a lot of
  time and its frustrating.
• www.lib.usf.edu/virtualHard to find specific
  articles and journals.

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Worst Sites

• www.honda.comPoor navigation (I think)didnt
  stay long enough.

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Impressive Sites

• www.petergabriel.comAwesome design, nice
  layout...information about the artist.
• espn.comThe homepage has all the breaking news
  headlines...every link you would need to access
  any part of the site is listed down the left
  side...No searching through 100 pages...

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Impressive Sites

• www.winamp.comIt is very simple, easy to use,
  easy to navigate,...(fast) download pages. You
  can choose from many different music types, see
  how many people are listening to a specific
  station, dont have to download too much music...

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For Today

• www.useit.comBe ready to tell us what Jakob
  Nielsens philosophy/guidelines/ideas are.
• Site Visit

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Nielsen

• www.useit-com

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Customer Interface 7

• Virtual Representation of Firms Value
  Proposition
• Information
• Navigation
• Is the site worth spending time at?Should I
  flee?
• i.e., Download Time
• War Developers vs. Marketers(Customers)

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Customer Interface
Technology-mediated interface
People-mediated interface
Face-to-face interaction
Screen-to-face interaction
There has to be an interface and it has to be
effective. People are pretty effective.
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The 7Cs of the Customer Interface
Context Sites layout and design
Content Text, pictures, sound and video that
webpages contain
Commerce Sites capability to enable commercial
transactions
Community The ways sites enable user-to-user
communication
Connection Degree site is linked to other sites
Customization Sites ability to self-tailor to
different users or to allow personalization
Communication The ways sites enable site-to-user
communication or two-way communication
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Content Archetypes Ex.

• Superstore amazon.com
• Category Killer petsmart.com
• Specialty Store Williams-Sonoma
• Information Dominant Business 2.0
• Market Dominant buy.commerx.com

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Community

• User to User Interactions
• www.ebay.com
• www.nytimes.com

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Customization

• Sites Ability To Tailor Itself Or Be Tailored By
  (Or For) Each User
• Marketing MantraKnow Your Customer(s).

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Customization

• PersonalizationThe Firm Does It
• CustomizationThe Customer Does It
• ex. www.wsj.com

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Communication

• Dialogue of user and site
• AsynchronousSite to UserUser to Site
• SynchronousLive Talk/Chat--------LandsEnd

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Connection

• ConnectionsAffiliatesRevenue
  SharingMarketingComplementary ProductsCustomer
  Acquisition
• Can Be Distracting

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Commerce

• Selection
• Pricing...Shipping
• The Shopping Cart
• Approval and Payment
• Can you avoid this experience? (browsing,
  selection, approving, paying?)
• Half.com pre-orders

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Jakobs Law of Internet User Experience

• Users spend most of their time on sites other
  than on yours.

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• Sales Failures Due To Some Problem At
  Checkout(and Registration)

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Check Out Recommendations

• Use graphics to detail the checkout process --
  users like them.
• List all charges before asking for personal data.
• Don't assume that your fill-in forms are easy to
  use.
• Offer a toll-free number for credit card
  payments.
• Allow customers to purchase without registering

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• Sales Failures Due To Failure To Find What Is
  Being Looked For

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Sophisticated Search A Must

• The home page should offer search, not a search
  link.
• Allow search from every page, except during
  checkout.
• Study your logs and tune search for popular
  queries.
• Allow searches for policies and customer
  support.
• Make searching simple

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Trust A Must

• Give honest information and fair "outside"
  opinions.
• Quickly remove outdated content, typos, errors,
  etc.
• Offer free returns and other sales inducements.
• Don't seek personal data unless absolutely
  necessary.
• Use people, not machines, to handle customer
  support.

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Jakob Nielsens Homepage Guidelines

• 1. Communicating the Sites Purpose
• 2. Communicating Information About the Company
• 3. Content Writing
• 4. Navigation
• 5. Search
• 6. Graphics and Animation
• 7. Customization
• 8. Gathering Customer Data
• 9. Fostering Community
• Homepage Usability 50 Websites Deconstructed,
  Nielsen Tahir 2002

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Components of a Business Model
Developing a business model in the networked
economy requires four key choices on the part of
the senior management
Value Cluster

• Specify the value proposition or the value
  cluster for the business

Marketspace Offering

• Articulate the online product, service and
  information offer

Resource System

• Define how the company needs to align its
  resources to deliver the value proposition

• Define and select the most appropriate revenue
  model to pursue

Financial Model
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Revenue Models
Some used most frequently
Advertising

• Advertising revenues can be generated through
  the selling of ads, site sponsorships, event
  underwriting, etc. (e.g., Yahoo, AOL,
  Business2.com)

Product, Service, Information

• Revenues can be generated from the sales of
  goods and services (e.g., Amazon, CDNow, Google
  Answers)

Transaction

• Revenues can be accrued from charging a fee or
  taking a portion of the transaction sum for
  facilitating a customer-seller transaction (e.g.,
  eTrade, eBay)

Subscription

• Website can gain revenues by offering
  subscription services for information (e.g.,
  FT.com, NYTimes.com)

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Site/Model Evaluation Assignment

• Paper (Due March 31 for everyone)
• 2 Pages BulletsOne Summary Section
• Cover Sheet
• 18 Copies (colored paper suggested)
• In Class Presentation
• 8 to 10 Minutes Overview, Pick a Few Main Points
• Presentations on March 31/April 7

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Site/Model Evaluation Assignment

• 100 Points
• 50 Summary Paper
• 50 Presentation

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Site/Model Evaluation Assignment

• GradingExpertiseOpinionsClarity
• Site
• InterestingEffective

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(No Transcript)
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Prices--Trends

• Prices Rising?
• Increases Mild, CPI Down or Slightly Up
• Disinflation
• Profits Squeezed
• Path to Profit Decrease Costs
• Differentiation Pricing Power
• Any Prices Rising?

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The Power of Optimal PricingPrice Optimization
Software

• ObjectivesRevenues, Profit, Units, Share
• ContextStore, Region, Chain
• DemandTec---
• PriceAmountsFrequencies
• Cost-Plus Pricing Is Predominant
• Discrimination is Good? (Amazon.com)

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• We stopped About Here at 850 PMWill finish it
  up next time.

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Price Smarter On the Net-Baker, et al. HBR

• Typical ApproachesLow PricesSame Pricing
  Strategies
• Transparency2 Ways
• Onliners Decide On Price
• B2B Buyers Decide On Price
• Total Cost Of Ownership (TCO)
• What Are Costs OT Price?

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Price Smarter On the Net-Baker, et al. HBR

• Reverse Auctions Not Popular
• Reverse MarketsRequire Organization

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Price Smarter On the Net

• Precision
• Adaptability
• Segmentation

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Price Smarter On the Net

• PrecisionPricing Indifference Band Implications
• AdaptabilityAlacrity, Speed, ResponsivenessTick
  ets.com Example
• Can You Change Prices Fast Large?
• How Do You Find Out ?
• SegmentationHow Do You Do This?

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Price Smarter On the Net

• Testing
• Playing
• Velocity

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Spyware

• SoftwareOften Embedded In Shareware
• Transmitted To Your ComputerDuring Website
  ViewingUsing Certain Online Sites (i.e., Kazaa)
• Targeted AdsPopups
• Track Browsing Across Sites
• Hijack Your Start Page
• Server and Mothership
• Affects Performance of Applications
• http//www.spychecker.com/spyware.html

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Lavasoft

• Ad-Aware 6.0
• Scan and Quarantine
• Free Product (6.0)
• Ad-Aware Plus
• Ad-Aware Professional
• Support Forum (Community)
• www.lavasoftusa.com

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Cookies As Spyware

• DoubleClick's current policy is not to collect
  "personally-identifiable" information about a
  user without their explicit permission or
  "opt-in."

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Help Desk

• http//homepage.mac.com/deadtroll2/.Movies/helldes
  kcable.wmv

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End Here