ECommerce

1
E-Commerce

• Carolyn Y. Woo

2
A Teak Outdoor FurnitureQ For what did I go
shopping on the Internet?

• Cant find any in South Bend
• Catalogues only 2
• Dont know enough about the product or
  manufacturer
• Lowest search costs

3
A The Greatest Generation,Sarah Brightman,
Bare Naked Ladies, Oxford BluesQ What do
people buy on the Internet?

• CDs, books, Lands End standard specification
• Groceries?
• Information intensive antique auto, rare books
• When user experience can be provided for trial
  period for software, test-drive auto at
  dealership
• Simulated user experience spatial
  representation, clothing fit
• Most difficultsmell, feel, finely detailed

4
A Chocolate Chip, Peanut Butter, OatmealQ What
are cookies?

• A device imbedded in the software to trace which
  websites an individual has visited, what
  inquiries were made, what items were purchased
• Targeted profiling of customers
• Direct Mailing to customers

5
A Not yet.Q Would you buy on the Internet?

• Security
• Encryption
• Electronic cash
• Transaction management companies
• Privacy (notification and consent)
• Issues similar to catalogue purchases

6
A You wont believe what happened to me
today.Q what a dissatisfied customer is about
to tell the world?

• Conventional wisdom unhappy customer tells 9
  people now, its the world
• All aspects of the experience service, purchase
  process, tangible product quality
• Good news also spread
• Implications Ralph Nader is everywhere
• Brand names / auctions/ sustainable forms of
  product differentiation

7
A UPS, Fed Ex, US MailQ Who profit from
e-Commerce?

• Mailers
• Back-end logistics to support electronic
  storefront
• Manufacturing mass customization, short cycle
  time
• Inventory Management warehousing
• Transportation
• Supply chain management
• Communication processes
• Transaction processes
• B2C, B2B

8
A Love with a Proper Stranger?Q Who is our
customer?

• Adultescent
• Cellie
• DINS
• Homepreneur
• Keypal
• Mouse Potatoe
• Permalancer
• Optionaire

• Frankenfood
• Identity Theft
• Pagejack
• -scape//-sphere
• Smartway
• Voice-jail system

Source WSJ 1/1 2000
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A I did it my wayQ Why are there so many
start-ups on the Internet?

• Lower Barriers
• Circumvent distribution channels, brand name,
  advertising, prior user experience
• Access to global market
• Collaboration with other businesses
• Venture capital / evaluation of possibilities
• Technology as key competence
• Diffuse power of size of large firms