Ch 4 5 Flashcards
What is Advertisement Support Revenue model?
The revenue model in which the firm offers a product/service for free but sells access to its audience to interested advertisers
What is Affiliate Revenue Model?
A revenue model in which revenue is generated from a third party based on customer traffic to the firm’s website
What is B2B?
Transactions in which two or more business entities take part
What is B2C?
Transactions that involve a for-profit organization on one side as a seller and an end consumer on the other as a buyer. Includes online retailers such as amazon. Firm offers values to consumer without selling any physical goods
What is blog?
Online journal published on the web by an individual
What is Brick and Mortar?
Firms that have physical locations such as stores
What is bricks and clicks?
Firms that have a hybrid operation: both physical (store) and online (website)…barnes & noble
What is Business model?
The firm’s concept of: what product/services it offers, based on what value propositions, and how it will achieve a dominate position.
What is C2B?
Transactions that involve a for-profit organization on one side as a buyer and an end consumer on the other as a seller, Elance
What is C2C?
Transactions that enable individual consumers to interact and exchange directly, Ebay
What is Channel conflict?
It’s exemplified by Compaq which faced significant resistance from electronics store chains carrying its devices when it created it direct-sale website
What is Disintermediation?
It is exemplified by many travel agents that found it difficult to stay in business after airlines started selling directly to customers and eliminated travel agent commissions
What is electronic data exchange (EDI)?
It enabled computer-to-computer exchange of structured data by two or more organizations that agreed on message standards.
What is emergent structure?
Technology that makes it easier for users to interact with and customize online applications, such as creating a folksonomy, think tags on pictures on Flikr
What is Evangelist Effect?
It’s the dynamic and the incentive that current members of the network have to “spread the word” and convince others to join it
What is Exchanges?
Firms that bring buyers and sellers together in the market place
What is freemium revenue model?
A revenue model in which a firm gives away its product and services for free but then offers premium services for a fee ‘free premium’
What is infomediary?
Firms that provide specialized information on behalf of product and service providers by linking to online retailers and receiving compensation for referrals as well as advertisement
What is Internet?
The worldwide publicly accessible system of interconnected computer networks that transmit data by packet switching, network of networks, it’s the infrasturce upon which services- such as email, the web ,instant messaging etc. are delivered
What is Long-tail Strategy?
When customers interests are highly varied, this strategy focuses on selling “specialty” (not very popular) products to a large number of customers rather then selling very popular products to a relatively small number of customers. Ex. Amazon- books, music, CD’s
What is Market Efficiency?
It is exemplified by travel meta-search infomediaries, such as skyscanner, which eliminated significant costs of searching for products/services to customers
What is Mash up?
Stringing together available digital resources into a novel web application that delivers new functionalities
What is Micro blogs?
Unidirectional short bursts of communication to a self selected audience of followers
What is Minitel?
Introduced by France Telcom about 30 years ago as a tool to check telephone directories, ordering flowers, purchasing train/airline tickets, etc.
What is Network Effects?
Positive and negative feedback play a crucial role in physical and virtual networks because of the value of a network to its members is a function of the number of nodes in the same network. New nodes add value by joining and creating a larger network
What is Pay for service revenue Model?
The revenue model in which the firm offers a product.service and charges based on usage.
What is Positive Feedback?
Adoption of a new technology product or service typically follows the pattern represented by the S-curve. Self-reinforcing mechanism by which the strong get stronger and the weak get weaker. Well-known for the economic phenomenon at the heart, for example economies of scale. In industries with strong economies of scale, say automobile manufacturing there is a significant advantage stemming from size. Virtuous cycle, benefiting the larger firm and a vicious cycle penalizing the smaller one
What is pure play?
Firms that have no stores and provide their services entirely on the internet
What is Reintermediation?
It is exemplified by Orbitz, a website that acts as a new for of intermediary between customers and airline companies, think brokers
What is Revenue Model?
How a firm plans to make money
What is RSS?
A technology that enables the creation of short summaries of content which a link to the full-fledged version
What is subscription revenue model?
The revenue model in which the firm offers a product/service and charges based on access regardless of the amount of usage
What is Tags?
Short descriptors associated with an object to categorize the increasing amount of available content
What is Tipping Point & tippy Markets?
a market that is subject to strong positive feedback, It goes in favor of the firm that is able to reach critical mass and dominate it. Winner take all tendencies. The point of no return in which losers and winners are defined. Not all markets do this and winner take all is the exception rather than the rule
What is two sided networks?
networks that have two types of members, each creating value for each other
What is wiki?
A technology that enables the coauthoring and editing of Web content
What is Web?
services available on the internet, electronic mail is the most popular
What is eGovernment?
transactions involving legislative and administrative institutions, for example electronic filing of tax return
What are the 5 Revenue models
pay for service, subscription, advertisement support, affliate, Freemium
What are the 5 Business models
Online retailing, Infomediaries, Content Providers, Online communities and exchanges
What are the advantages of user-generated content for content providers
considered more honest and less prone to marketing influence or manipulation. Also, it has a limited cost of production since the community typically volunteers its input
What is an online community
a group of people brought together by a common interest
Why do virtual communities work
they alleviate the constraints of physical distance
What are Exchanges
organizations that create a marketplace for buyers and sellers to come together and transact…ebay
