MAR 6936798

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MAR 6936-798

• E-Commerce Marketing
• Spring 2003Downtown--MBA
• Web Site Evaluation
• Rich Gonzalez
• March 20, 2003 (Week 11)

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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 20, 2003

• Final Exam DetailsMay 1, 2003
• Useit.com and Nielsen
• Site/Model Evaluation Assignment
• Due For March 27---Web Site/Biz Model Evaluation
• Spyware

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Final ExamMay 1, 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 20

• 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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Worst Sites

• www.mclainfoods.com
• www.franklin-templeton.com
• www.myflorida.com
• www.useit.com
• www.websitesthatsuck.com

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For March ??

• www.useit.com
• Be ready to tell us what Jakob Nielsens
  philosophy/guidelines are.
• Pick a Site That You Can Say Something About and
  Forward To ListservWhat would Nielsen say about
  the site?

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CNN.com

•  
• 3)Provides neatly organized information options
  in columns that isorganized in order of
  important new breaking news. This makes it easy
  forthe user to follow...
•  
• 4)Provides nice categories for each section to
  allow the user to easilyidentify ...
•  
• 5)Provides the user to select the language they
  want ...
• 6)Easily provides users the option to switch to
  International News

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www.dell.com

• Nielsen's philosophy is to enhance customer
  relationships homepagecommunication must meet
  the needs and expectations of many online
  users.Since a website is a "company's face to
  the world," it should discloseinformation in
  such a way that it is not confusing to comprehend

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www.bananarepublic.com

• Jakob Nielson would most likely appreciate the
  simplicity and usability ofBanana Republic's
  Homepage. It is not the most extensive website
  however, itis very easy for consumers to locate
  2. Highest prioritized tasks are recognizable
  immediately 3. There really don't appear to be
  "wasted clicks".

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www.pokerroom.com

• This is what I think Nielsen would like
  aboutPokerroom.com1. Pokerroom is easily seen
  and displayed in the topleft hand corner.2. It
  does a great job of allowing a customer to setup
  a new account. "Sign Me Up" is in red, and
  itcatches the eye.3. It does a good job of
  listing other poker-relatedwhich you can link
  to.

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www.nba.com

• Strengths1. Proportionate graphic usage with
  effective use of white space2. Interactive
  properites3. Excellent search functions
• Weaknesses1. NBA is incorporated in the
  background instead of the forefront2. Abundance
  of information may be distracting3. No direct
  contact with the NBA ("About Us")

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FoodTV.com

• Overall, the areas that Nielson would like is
  that it communicates the purpose of the site very
  well. It is tied to a TV network
• Nielson would also have several concerns for this
  site. The search function can be confusing
• It is also not customizable

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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 Customer Does It
• TailoringThe Firm Does It

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Or...

• 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 27 for everyone)
• 2 Pages BulletsOne Summary Section
• Cover Sheet
• 15 Copies (colored paper?)
• In Class Presentation
• 8 to 10 Minutes Overview, Pick a Few Main Points
• Presentations on March 27/April 3

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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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Prices--Trends

• Prices Rising?
• Increases Down, CPI Down or Slight
• 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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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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For March 27

• E-Business Communications, Kleindl, Chapter 3
• www.acsi.org (e-commerce companies)
• WSJRealNetworks Builds Fan Base For Broadband
  Video Service, Walter Mossberg, March 20, 2003
• http//www.ml.com/woml/forum/ecommerce1.htmHold
  off on this onewell look at it later...RG

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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