MAR 4933002

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MAR 4933-002

• E-Commerce Marketing
• Fall 2002Tampa
• Customer Interface II
• Rich Gonzalez
• October 23, 2002 (Week 9 Wednesday)

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URLs (Well probably Visit Today)

• wsj.com
• Various Others, see slides

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Agenda October 23, 2002

• Customer InterfaceChapter 6Several Websites
• Due For October 28

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For Today October 23

• The Power of Optimal Pricing, p68, Business
  2.0, July 21, 2002
• Chapter 6Customer Interface
• Find one website and make a comment on it (on
  listserv) per Chapter 6

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Suggested Sites II

• www.disney.com
• www.bbc.co.uk
• www.dillards.com
• www.cdnow.com
• www.gap.com
• www.ae.com
• www.shockwave.com

• www.oldnavy.com
• www.homedepot.com
• www.nissanusa.com
• www.usf.edu
• www.maxstudio.com
• www.thewirelesswaitress.com
• www.honda.com

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For October 28

• www.useit.comBe ready to tell us what Jakob
  Nielsens philosophy/guidelines are.
• Chapter 6Customer Interface

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BusinessWeek Prices

• Prices Not Rising As Fast
• Disinflation
• Profits Squeezed
• Decrease Costs
• Differentiation Pricing Power

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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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Last Time

• Porter
• Beginning of Customer Interface

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Porter

• Internet An Enabling Technologya Powerful Set
  of Tools For Almost Any Industry and Strategy

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Porter Value

• Economic value is created PROFITS
• The metric is
• Price minus costs
• How does an industry create value?What are the
  factors?
• Industry Structure
• Sustainable Competitive Advantage

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Porter Conclusion

• The Internet will rarely be a competitive
  advantage.
• Hes Wrong

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Customer Interface
Technology-mediated interface
People-mediated interface
Face-to-face interaction
Screen-to-face interaction
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Ended HerePick Up
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3 Fundamental Business Shifts

• 1. Most transactionsB2C, B2B, C2C and G2C will
  become self-service digital transactions.
• 2. Customer service will become the primary
  value-added function in every business. Personal
  consultancy not routine services.
• 3. The pace of transactions and customer needs
  for customer service will force firms to adopt
  digital processes---for survival.

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No Frills Discounter/E-tailer

• www.overstock.com
• Kind of like outlet malls
• www.cdbaby.com

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Rich E-tailer

• www.FAOschwarz.com
• www.maxstudio.com
• www.barneys.com
• www.disney.com
• Less Commerce (Selling), More Content

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Customer Interface

• 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)
• Brand?

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Design Principles

• FitHow do the 7Cs support the business model?
• ReinforcementDegree of consistency between each
  of the Cs
• The idea is performance and synergy.

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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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Jakobs Nielsens Homepage Guidelines

• Generally apply also to the entire website.
• Has Several. Well Use Only 8.

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Jakobs 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. Fostering Community

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7Cs Framework

• of Interface Design

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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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Dimensions of Context
The context of a site has many different forms.
The two key context dimensions are function and
aesthetics
Look and Feel Of S2F
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• www.CeoExpress.com
• www.reflect.com
• www.nordstrom.com

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Context Archetypes

Content archetypes refer to broad, generic
approaches to context design
Aesthetically Dominant
Functionally Dominant
Integrated

• High form low function
• Look-and-feel of the site is the primary emphasis
• The site is slow to load, limited in information

• Low form high function
• Focused on the display of textual information
• The visual design is limited
• Pure text no graphics, sound or animation

• Balance of form and function
• Attractive and easy-to-use interface
• The use of a clear design theme, small images and
  plenty of white space

LandsEnd.com vs. LuckyJeans.com
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Five Content Archetypes

• One-stop shop with a wide range of goods in
  multiple product categories

Superstore
Offering Dominant

• Exclusive provider of products and services
  within the specific category

Category Killer

• Focus on exceptional quality and exclusivity
  while selling single or multiple categories of
  products

Specialty Store

• Provider of information goods although physical
  products can be purchased as a complement
• Sites are generators, sources or aggregators of
  content

Information Dominant
Market Dominant

• Provider of place for transactions, where
  buyers and sellers come together to conduct
  business

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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
• Distracting?

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Commerce

• Selection
• Pricing...Shipping
• The Shopping Cart
• Approval and Payment
• Can you avoid this experience? (browsing,
  selection, approving, paying?)
• www.djangos.payment

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For October 28

• www.useit.com
• Be ready to tell us what Jakob Nielsens
  philosophy/guidelines are.
• What would Nielsen say about the site you
  forwarded to the listserv?

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Animated Slide
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Can You Get Addicted To eBay?

• cgi.ebay.com/ws/eBayISAPI.dll?ViewItemitem139000
  7452