2. E- Business, Ninth Edition 2
Learning Objectives
In this chapter, you will learn about:
• Revenue models
• How some companies move from one revenue
model to another to achieve success
• Revenue strategy issues that companies face when
selling on the Web
• Creating an effective business presence on the Web
• Web site usability
• Communicating effectively with customers on the
Web
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Revenue Models
• Web business revenue-generating models
– Web catalog
– Digital content
– Advertising-supported
– Advertising-subscription mixed
– Fee-based
• Can work for both sale types
– Business-to-consumer (B2C)
– Business-to-business (B2B)
• Can use same revenue model for both types of sales
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Web Catalog Revenue Models
• Adapted from mail-order (catalog) model
– Seller establishes brand image
– Printed information mailed to prospective buyers
• Orders placed by mail or toll-free telephone number
• Expands traditional model
– Replaces or supplements print catalogs
– Offers flexibility
• Orders placed through Web site or telephone
• Payments made though Web site, telephone, or mail
– Creates additional sales outlet for existing companies
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Web Catalog Revenue Models (cont’d.)
• Computers and consumer electronics
– Leading computer manufacturers
• Sell a full range of products on the Web
– Dell allows product configuration flexibility
• Creates value
– Crutchfield
• Expanded successful mail-order catalog operations to
include Web sites
– Best Buy, J&R Music World, Radio Shack
• Web sites sell same products as in stores
6. 6
Web Catalog Revenue Models (cont’d.)
• Computers and consumer electronics (cont’d.)
– Marketing channel
• Pathway to customers
– Advantage of having several marketing channels
• Reach more customers at less cost
– Can combine marketing channels
• Example: in-store online ordering
• Example: mail catalogs with reference to retailer’s Web
site
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Web Catalog Revenue Models (cont’d.)
• Books, music, and videos
– Most visible electronic commerce examples
– Amazon.com Web-only retailer originally sold books
• Evolved into general retailer
– Barnes & Noble, Blackwell’s, Books-A-Million,
Powell’s Books
• All adopted Web catalog revenue model
– CDnow Web-only online music store
• CD Universe copied CDnow approach
– Tower Records, Sam Goody retail stores
• Created Web sites to compete with CDnow
9. Web Catalog Revenue Models (cont’d.)
• Luxury goods
– Difficult to sell online
• Customers want to see product in person or touch
– Vera Wang and Versace
• Web sites provide information
• Shopper purchases at physical store
• Heavy use of graphics and animation
– Evian Web site
• Presents information in a visually stunning way
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10. Web Catalog Revenue Models (cont’d.)
• Clothing retailers
– Many adapted catalog sales model to Web
– Display clothing photos categorized by type
• Prices, sizes, colors, tailoring details
– Want customers to examine clothing online
• Place orders through Web site
– Lands’ End online Web shopping assistance
• Lands’ End Live (1999)
• Online text chat and call-back feature
• Ability to push Web pages to customer’s browser
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11. E- Business, Ninth Edition 11
Web Catalog Revenue Models (cont’d.)
• Clothing retailers (cont’d.)
– Lands’ End personal shopper agent (more recent)
• Learns preferences and makes suggestions
– My Virtual Model (customers try clothes)
• Graphic image built from customer measurements
– Another feature allows:
• Two shoppers using different computers to
simultaneously browse Web site together
• Only one of the shoppers can purchase items
• Either shopper can select items to view
• Selected items appear in both Web browsers
12. 12
Web Catalog Revenue Models (cont’d.)
• Clothing retailers (cont’d.)
– Online overstocks stores
• Reach more people than physical outlet stores
– Problem: varying computer monitor color settings
• Solution: send fabric swatch on request
• Solution: offer generous return policies
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Web Catalog Revenue Models (cont’d.)
• Flowers and gifts (gift retailers)
– 1-800-Flowers
• Online extension to successful telephone business
• Competes with online-only florists
– Godiva offers business gift plans
– Hickory Farms and Mrs. Fields Cookies
• Offer familiar name brands on the Web
– Harry and David
• Original Web site for informational purposes
• Promoted catalog business and added online ordering
feature
14. Web Catalog Revenue Models (cont’d.)
• General discounters
– Buy.com and Overstock.com
• Borrowed Wal-Mart and discount club sales model
• Sell merchandise at extremely low prices
– Traditional discount retailers (Costco, Kmart, Target,
Wal-Mart)
• Slow to implement online sales on their Web sites
• Had huge investments in physical stores
• Did not understand online retailing world
• Now use the Web catalog revenue model in their
successful online sales operations
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Digital Content Subscription Revenue
Models
• Firms owning written information or information
rights
– Embrace the Web as a highly efficient distribution
mechanism
– Use the digital content revenue model
• Sell subscriptions for access to information they own
• Legal content
– LexisNexis: offers variety of information services
– Lexis.com: offers original legal information product
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Digital Content Subscription Revenue
Models (cont’d.)
• Academic research content
– ProQuest: digital copies of academic publications
• Business content
– Dow Jones newspaper publisher subscriptions
• Sold digitized newspaper, magazine, and journal
content subscriptions
• Factiva: online content management and integration
service
• Technical content
– Association for Computer Machinery (ACM): digital
library
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Advertising-Supported Revenue
Models
• Used by United States broadcast network television
– Provides free programming and advertising
messages
• Supports network operations sufficiently
• Problem: measuring and charging site visitor views
– Stickiness
• Keeping visitors at site and attracting repeat visitors
• Exposed to more advertising in a sticky site
• Problem: obtaining large advertiser interest
– Requires demographic information collection
• Characteristics set used to group visitors
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Advertising-Supported Revenue
Models (cont’d.)
• Can obtain large advertiser interest by:
– Using a specialized information Web site
• Draw a specialized audience certain advertisers want to
reach
– Examples:
• The Huffington Post and the Drudge Report
• HowStuffWorks
19. 19
FIGURE 4-2 Three strategies for an advertising-supported revenue model
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Advertising-Supported Revenue
Models (cont’d.)
• Web portals (portal)
– Site used as a launching point to enter the Web
• Almost always includes a Web directory or search
engine
• Often includes other features
– Web directories
• Listing of hyperlinks to Web pages
– Yahoo!: one of the first
• Presents search term triggered advertising on each
page
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21. 21
Advertising-Supported Revenue
Models (cont’d.)
• Web portals (cont’d.)
– Portal sites using general interest strategy
• AOL, Excite, Google, Bing
– Portal sites not using general interest strategy
• Help visitors find information within a specific
knowledge domain
• Advertisers pay more
• Example: C-NET
– Travel sites
• Successful as advertising-supported online businesses
• Example: Kayak
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22. E- Business, Ninth Edition 22
Advertising-Supported Revenue
Models (cont’d.)
• Newspaper and magazine publishers
– Sell advertising to cover Web site costs
– Internet Public Library Online Newspapers page
• Provides links to worldwide newspaper sites
– Local shopping news, alternative press newspapers
• Easier transition to advertising-supported Web revenue
model
– Newspaper’s Web presence
• Provides greater exposure and advertising audience
• Diverts sales from the print edition (difficult to measure)
• Operating costs not covered by advertising revenue
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Advertising-Supported Revenue
Models (cont’d.)
• Targeted classified advertising sites
– Can command higher rates than general advertising
– Original version
• Newspaper classified advertising
– Growth of classified advertising Web sites
• Very bad for newspapers
• Example: craigslist
– Web employment advertising
• Most successful targeted classified advertising category
• Examples: CareerBuilder.com, The Ladders and
Guru.com, Monster.com
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Advertising-Supported Revenue
Models (cont’d.)
• Targeted classified advertising sites (cont’d.)
– Used vehicle sites
• AutoTrader.com, CycleTrader.com, BoatTrader.com
• Accept paid advertising to sell cars, motorcycles, boats
– Product sites with dedicated following (VetteFinders)
• Successful by catering to small audiences
– Potential classified advertising sites
• Any site selling products useful to buyer after initial use
• Musicians Buy-Line, ComicLink.com, The Golf
Classifieds
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Advertising-Subscription Mixed
Revenue Models
• Subscribers pay fee and accept advertising
– Typically less advertising compared to advertising-
supported sites
• Web sites offer different degrees of success
– The New York Times (today)
• Bulk of revenue derived from advertising
– The Wall Street Journal (mixed model)
• Subscription revenue weighted more heavily
26. 26
FIGURE 4-3 Revenue models used by online editions of newspapers and
magazines
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27. E- Business, Ninth Edition 27
Advertising-Subscription Mixed
Revenue Models (cont’d.)
• ESPN
– Leverages brand name from cable television business
– Sells advertising, offers free information
– Mixed model includes advertising and subscription
revenue (collects Insider subscriber revenue)
• Consumers Union (ConsumerReports.org)
– Purely a subscription-supported site
– Not-for-profit organization with no advertising
– Free information
• Attracts subscribers and fulfills mission
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Fee-for-Transaction Revenue Models
• Service fee charged
– Based on transaction number or size
• Web site offers visitor transaction information
– Personal service formerly provided by a human agent
• Value chain
– Disintermediation
• Intermediary (human agent) removed
– Reintermediation
• New intermediary (fee-for-transaction Web site)
introduced
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Fee-for-Transaction Revenue Models
(cont’d.)
• Travel
– Travel agency revenue model: receive fee for
facilitating a transaction
• Travel agent adds information consolidation and
filtering value
– Computers also good at information consolidation and
filtering
• Travel agents have long used networked computers:
Sabre Travel Network
– Internet provided a new way to do business online
30. 30
Fee-for-Transaction Revenue Models
(cont’d.)
• Travel (cont’d.)
– Web-based travel agencies were new entrants
• Examples: Travelocity, Expedia, Hotels.com, Hotel
Discount Reservations, Orbitz
• Generate advertising revenue from ads placed on travel
information pages
– Traditional travel agents: squeezed out
• Surviving agencies charge a flat fee
– Smaller travel agents specialize (cruises, hotels)
• May use a reintermediation strategy
(WaveHunters.com)
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Fee-for-Transaction Revenue Models
(cont’d.)
• Automobile sales
– Web sites implement the fee-for-transaction revenue
model differently
– CarsDirect.com model
• Customers select specific car, site determines price
and finds local dealer
– Autoweb.com and Autobytel model
• Locate local dealers, car sells at small premium over
dealer’s nominal cost
– Car salesperson: disintermediated
– Web site: new intermediary (reintermediation)
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Fee-for-Transaction Revenue Models
(cont’d.)
• Stockbrokers
– Original full-line brokers charged relatively high
commissions
• Provided advice
– 1970s: deregulation resulted in discount brokers
• Web-based brokerage firms: E*TRADE and Datek
• Web allowed investment advice, fast trade execution
online
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Fee-for-Transaction Revenue Models
(cont’d.)
• Stockbrokers (cont’d.)
– 1990s: discount brokers faced competition from
online firms
• Discount brokers and full-line brokers opened new
stock trading and information Web sites
– Online brokers offer transaction cost reductions
– Traditional stockbrokers: disintermediated
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Fee-for-Transaction Revenue Models
(cont’d.)
• Insurance brokers
– Quotesmith offered Internet policy price quotes
directly to public (1996)
• Independent insurance agents: disintermediated
– Insurance policy information, comparisons, sales sites
• InsWeb, Answer Financial, Insurance.com
– Progressive Web site
• Provides quotes for competitors’ products too
– The General (General Automobile Insurance
Services) Web site
• Offers comfortable, anonymous experience
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Fee-for-Transaction Revenue Models
(cont’d.)
• Event tickets
– Web allows event promoters to sell tickets from one
virtual location to customers worldwide
– Online agencies earn a fee on every ticket sold
• Ticketmaster, Tickets.com, TicketWeb
– Web created secondary ticket market (StubHub,
TicketsNow)
• Brokers connecting ticket owners with buyers
• Earn fees on tickets resold for others, buy ticket blocks
– Web created easy-to-find central marketplace,
facilitating buyer-seller negotiations
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Fee-for-Transaction Revenue Models
(cont’d.)
• Real estate and mortgage loans
– Web sites provide all traditional broker services
• Coldwell Banker, Prudential
– National Association of Realtors Web site
• Realtor.com
– 2008 financial crisis
• Dramatically reduced number of mortgage brokers in
business
– Successful online mortgage brokers
• Ditech and E-LOAN
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Fee-for-Transaction Revenue Models
(cont’d.)
• Online banking and financial services
– No physical product
• Easy to offer on Web
– Web financial transactions concerns
• Trust and reliability of financial institution
– Solutions
• Use existing bank’s identification and reputation
• Start online bank not affiliated with existing bank (First
Internet Bank of Indiana)
• Use different name (Bank One used Wingspan)
– Approach was not successful
39. 39
Fee-for-Transaction Revenue Models
(cont’d.)
• Online banking and financial services (cont’d.)
– Additional barriers preventing a more rapid rate of
growth
• Lack of bill presentment features
• Lack of account aggregation tools
– By 2012:
• Industry analysts expect most banks (online and
traditional) will offer aggregation services
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40. E- Business, Ninth Edition 40
Fee-for-Transaction Revenue Models
(cont’d.)
• Online music
– Recording industry: slow to embrace online
distribution
• Feared digital copying
– Large online music stores
• Revenue from fee-for-transaction model
• Some sites offer subscription plans
– Complicating issues
• Stores offer limited number of digital music files
• Stores promote their own music file format
• Artists and recording companies invoke limits
41. 41
Fee-for-Transaction Revenue Models
(cont’d.)
• Online music (cont’d.)
– Complicating issues (cont’d.)
• Buyers required to download and install Digital Rights
Management (DRM) software
• Varying restrictions confusing to consumers
– Online music market industry failed to embrace the
network effect gained by adopting one standard file
format
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42. 42
Fee-for-Transaction Revenue Models
(cont’d.)
• Online music (cont’d.)
– Some stores sold audio in a generally compatible file
format with no copying restrictions
• Mondomix MP3 and Smithsonian Folkways
• Music not produced by major recording companies
– Solutions
• Adopt one standard file format, no copying restrictions,
DRM-free MP3 format (Amazon in 2007)
– By 2012: 80 percent of all music will be sold online
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43. E- Business, Ninth Edition 43
Fee-for-Transaction Revenue Models
(cont’d.)
• Online video
– Issues hampering prior sales
• Large file size
• Fear of online sales impairing other sales types
• Inability to play on variety of devices
– Overcoming the issues
• New technologies improving delivery
• Companies incorporating online distribution into
revenue strategy
• Delivery allowed on multiple devices
– Through standard Web browser
44. 44
• Electronic books
– Forms of digital audio books
• CDs (originally) and various types of digital files
• Audible sells subscriptions
– Allows monthly download of a certain number of
books
• Pricing is per book
• Amazon.com
– Offers books, newspapers, magazines, other digital
format items
• Delivered directly to its line of Kindle readers
Fee-for-Transaction Revenue Models
(cont’d.)
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Fee-for-Service Revenue Models
• Companies offer Web service
– Fee based on service value
• Not a broker service
• Not based on transactions-processed number or size
• Online games
– Sales revenue source
• Advertising (older concept), pay-to-play for premium
games, subscription fees
– Average game player is 35 years old, playing
computer or video games for 12 years
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Fee-for-Service Revenue Models
(cont’d.)
• Professional services
– Limited Web use
• State laws prohibit extension of practice
• Patients may set appointments, receive online
consultation
– Major concern
• Patient privacy
– Law on the Web site
• Legal consultations to United Kingdom residents
– Martindale.com
• Online version of Martindale-Hubbell lawyer directory
47. • Professional services (cont’d.)
– CPA Directory
• United States accounting professionals site
– General health information
• RealAge, Dr. Andrew Weil’s Self Healing, WebMD
– Significant barrier
• Patient diagnosis difficult without physical examination
– Some physicians beginning to offer online
consultations
• For ongoing, established relationship patients
Fee-for-Service Revenue Models
(cont’d.)
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48. Free for Many, Fee for a Few
• Economics of manufacturing
– Different for physical and digital products
– Unit cost high percentage of physical products
– Unit cost very small for digital products
• Leads to a different revenue model
– Offer basic product to many for free
– Charge a fee to some for differentiated products
• Examples: Yahoo e-mail accounts, bakery: free cookies
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49. E- Business, Ninth Edition 49
Revenue Models in Transition
• Companies must change revenue model
– To meet needs of new and changing Web users
• Some companies created e-commerce Web sites
– Needed many years to grow large enough to become
profitable (CNN and ESPN)
• Some companies changed model or went out of
business
– Due to lengthy unprofitable growth phases
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Subscription to Advertising-Supported
Model
• Slate magazine
– Upscale news and current events
• Success expectations were high
– Experienced writers and editors
– Acclaim for incisive reporting and excellent writing
• Initial revenue source
– Annual subscription did not cover operating costs
• Now an advertising-supported site
– Part of the Bing portal
• Value to Microsoft: increase the portal’s stickiness
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Advertising-Supported to Advertising-
Subscription Mixed Model
• Salon.com
– Acclaimed for innovative content
• Initial revenue source
– Advertising-supported site
– Needed additional money to continue operations
• Now offers optional subscription version
– Annual fee for Salon premium
• Free of advertising
• Additional content
• Downloadable content
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Advertising-Supported to Fee-for-
Services Model
• Xdrive Technologies: offered free disk storage
• Initial revenue source (1999): advertising-supported
– Targeted e-mail advertising
– Did not cover operating costs
• 2005: bought by AOL
– Switched to a subscription-supported model
– Xdrive frequently adjusted its monthly fee downward
– AOL closed the service in 2009
• Successful companies: fee based on storage
amount used
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Advertising-Supported to Subscription
Model
• Northern Light search engine includes own
database
– Results include Web site links and abstracts of its
owned content
– Initial revenue source
• Combination of the advertising-supported model plus a
fee-based information access service
• Advertising revenue: insufficient to cover service
– Converted to a new subscription-supported revenue
model
• Mainly large corporate clients
• Individual monthly billing option for articles accessed
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Multiple Transitions
• Encyclopedia Britannica
– Initial Web offerings (1994)
• Britannica Internet Guide
• Encyclopedia Britannica Online
– Initial revenue source
• Paid subscription site had low subscription sales
– Converted to free advertiser-supported site (1999)
• Advertising revenues declined
– 2001: returned to mixed model with subscription plan
and free content
– Value added: sells reputation and the expertise
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Revenue Strategy Issues
• Topics:
– Web revenue models implementation issues
– Dealing with the issues
56. Channel Conflict and Cannibalization
• Channel conflict (cannibalization)
– Company Web site sales activities interfere with
existing sales outlets
– Levis Web site and Maytag
• Web sites no longer sell products
• Sites now provide product, retail distributor information
– Eddie Bauer
• Online purchases returnable at retail stores
• Required compensation and bonus plans adjustments
to support Web site
• Channel Cooperation made it successful
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57. E- Business, Ninth Edition 57
Strategic Alliances
• Strategic alliance
– Two or more companies join forces
• Undertake activity over long time period
• Yodlee account aggregation services provider
– Yodlee concentrates on developing the technology
and services
– Banks provide the customers
• Amazon.com
– Joined with Target, CDnow, ToysRUs
• ToysRUs and Amazon suing each other
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Creating an Effective Web Presence
• Organization’s presence
– Public image conveyed to stakeholders
– Usually not important
• Until growth reaches significant size
– Stakeholders
• Customers, suppliers, employees, stockholders,
neighbors, general public
• Effective Web presence
– Critical even for smallest and newest Web operating
firms
59. Identifying Web Presence Goals
• Business physical space
– Focus: very specific objectives
• Not image driven
• Must satisfy many business needs
• Often fails to convey a good presence
• Web business site
– Intentionally creates distinctive presences
– Good Web site design provides:
• Effective image-creation features
• Effective image-enhancing features
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Identifying Web Presence Goals
(cont’d.)
• Web business site objectives:
– Attracting Web site visitors
– Keeping visitors to stay and explore
– Convincing visitors to follow site’s links to obtain
information
– Creating an impression consistent with the
organization’s desired image
– Building a trusting relationship with visitors
– Reinforcing positive images about the organization
– Encouraging visitors to return to the site
61. 61
Identifying Web Presence Goals
(cont’d.)
• Making Web presence consistent with brand image
– Different firms establish different Web presence goals
– Coca Cola Web site pages
• Usually include trusted corporate image (Coke bottle)
• Image: traditional position as a trusted classic
– Pepsi Web site pages
• Usually filled with hyperlinks to activities and product-
related promotions
• Image: upstart product favored by younger generation
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62. 62
Identifying Web Presence Goals
(cont’d.)
• Matching site design to function
– Volkswagen of America site
• Accomplishes important functions for the company
• Provides links to detailed Volkswagen model
information, links to a dealer locator page, links to
information about the company, a link to a set of
shopping tools
– Volkswagen’s home page
• Meets the needs of most visitors quickly and effectively
– Volkswagen site enhances company image by
providing useful information to customers online
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63. E- Business, Ninth Edition 63
FIGURE 4-5 Volkswagen of America home page
64. Identifying Web Presence Goals
(cont’d.)
• Not-for-profit organizations
– Web presence effort key goals:
• Image enhancement and information dissemination
– Successful site key elements
• Integrate information dissemination with fund-raising
• Provide two-way contact channel
– American Civil Liberties Union (ACLU)
• Serves many different constituencies
– Web sites used to stay in touch with existing
stakeholders, identify new opportunities for serving
them
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Web Site Usability
• Current Web presences
– Few businesses accomplish all goals
– Most fail to provide visitors sufficient interactive
contact opportunities
– Improving Web presence
• Make site accessible to more people
• Make site easier to use
• Make site encourage visitors’ trust
• Make site develop feelings of loyalty toward the
organization
67. How the Web Is Different
• Simple mid-1990s Web sites
– Conveyed basic business information
– No market research conducted
• Web objectives achievement
– Failed due to no understanding for Web presence-
building media
• Web sites designed to create an organization’s
presence:
– Contain links to standard information set
– Success dependent on how this information offered
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Meeting the Needs of Web Site Visitors
• Successful Web businesses:
– Realize every visitor is a potential customer (partner)
• Web presence is an important concern
– Know visitor characteristic variations
• Understand that the visitor is at the site for a reason
• Varied motivations of Web site visitors
– Why visitors arrive at Web sites
• Learning about company products or services
• Buying products or services
• Obtaining warranty, service, repair policy information
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Meeting the Needs of Web Site Visitors
(cont’d.)
• Varied motivations of Web site visitors (cont’d.)
– Why visitors arrive at Web sites (cont’d.)
• Obtaining general company information
• Obtaining financial information
• Identifying people
• Obtaining contact information
• Following a link into the site while searching for
information about a related product, service, or topic
– Challenge to meet all motivations
• Visitors arrive with different needs, experience, and
expectation levels
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Meeting the Needs of Web Site Visitors
(cont’d.)
• Making Web sites accessible
– Build interface flexibility options:
• Frame use
• Text-only version
• Selection of smaller graphic images
• Specification of streaming media connection type
• Choice among information attributes
– Controversial Web site design issues
• Adobe Flash software use
– Some tasks lend themselves to animated Web pages
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Meeting the Needs of Web Site Visitors
(cont’d.)
• Making Web sites accessible (cont’d.)
– Offer multiple information formats
– Consider goals in Web site construction
FIGURE 4-8 Goals for business Web sites
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Trust and Loyalty
• Creates relationship value
• Good service leads to seller trust
– Delivery, order handling, help selecting product, after-
sale support
• Satisfactory service builds customer loyalty
• Customer service in electronic commerce sites
– Problem
• Lack integration between call centers and Web sites
• Poor e-mail responsiveness
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Rating Electronic Commerce Web Sites
• Companies routinely review electronic commerce
Web sites for:
– Usability, customer service, other factors
– Sell the gathered information directly to the
companies operating the Web sites
• Include suggestions for improvements
• BizRate.com posts ratings
– Provides comparison shopping service
– Compiles ratings by conducting surveys of sites’
customers
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Usability Testing
• Importance
– Helps meet Web site goals
– Avoids Web site frustration
• Customers leave site without buying anything
– Simple site usability changes
• Include telephone contact information
• Staff a call center
– Learn about visitor needs by conducting focus groups
– Usability testing cost
• Low compared to Web site design costs
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Customer-Centric Web Site Design
• Important part of successful electronic business
operation
• Focus on meeting all site visitors’ needs
• Customer-centric approach
– Putting customer at center of all site designs
• Follow guidelines and recommendations
• Make visitors’ Web experiences more efficient,
effective, memorable
• Webby Awards site
– Examples of good Web site design
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Connecting with Customers
• Important element of a corporate Web presence
• Identify and reach out to customers
78. E- Business, Ninth Edition 78
The Nature of Communication on the
Web
• Communication modes
– Personal contact (prospecting) model
• Employees individually search for, qualify, contact
potential customers
– Mass media
• Deliver messages by broadcasting
– Addressable media
• Advertising efforts directed to known addressee
• Internet medium
– Occupies central space in medium choice continuum
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Summary
• Six main Web revenue models
– Models work differently
– Different business types use different models
– Companies change models as they learn more about:
• Customers, business environment
• Channel conflict and cannibalization challenges
– One approach: channel cooperation
• Effective Web presence delivers customer value
– Web site visitors arrive with a variety of expectations,
prior knowledge, skill levels, technology
• Web communication fits in between personal
contact and mass media