E-Commerce Final Flashcards by Brillian Qi-Bell

Attracting people to your own marketing messages

Aquire Fans, let them know you’re here

Fan acquisition

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encouraging others to interact with your content and brand

Worth their while to share, respond to you

Engagement

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encouraging visitors to share their comments and likes with their friends

The sharing, makes them share

Amplification

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a stable group of fans engaging and communicating with one another over a substantial period of time about your brand

Build loyal influencers, people associated them

Community

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???

Brand strength (sales)

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sharing outside the major social networks. (IM, email, texting etc.)
Social sharing offline

Dark Social:

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no purchases

Marketing to Children (do’s & don’ts)

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p.447

Measuring Marketing Results (FB)

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the number of posts, comments, and respones. Number of views of brand page conent. The number of likes generated per visotr, the numbers of users who responed to games, contest, and coupons (particpation) the number of minuets on averrage that vistors stay on your page (duration) the rate of likes per post or other content)

Engagement (conversion rate

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he % of likes, shares, or posts to other sites (the rate which fans share content)

Amplification (reach)

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Intensity, how deeply involved and connected are they with the content they’re consuming

Engagement (conversion rate

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The % of revaune sales that is generated by Facebook links compared to other platforms, such as email, search engine etc. The % of FB-sourced customer purchased compared to other sources of customers (conversion ration). The conversion ratio for friends of fans.

Brand Strength/Sales (e.g. conversion ratio)

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(summarized on chart on page 482)

Location-Based Marketing Tools and Campaigns

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(see page 505 for summary)

Understand how the E-Commerce Technology Dimensions have potential ethical, social and political impact

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Targets messages to users based on location

Marketing of location-based services

Location-Based Marketing Tools and Campaigns

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Rights that specify claims and duties with regard to the communication, collection, access, use, and control of information. Information rights include the rights to privacy, intellectual property, free expression, and access to information

Information rights

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Who will control what will be controlled and how will the controls be implemented with Ecommerce

Governance:

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Information rights Later pt 2

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How should we get everyone to have internet? Should they be allowed in cars? Are goats responsible for schools? Are certain online activities a threat?

Public safety and welfare

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How property rights can be enforced when things can be easily distributed

Property rights

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A feature of political systems in which a body of law is in place that permits individuals to recover the damages done to them by others

Liability

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Individuals, society and organizations should be held accountable to others for the consequences of their actions

Accountability

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the process in which laws are known and understood and there is ability to appeal to higher authority to ensure that laws have been correctly applies

Due process p.510

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sticky situation

Dilemma -

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``` Identify and clearly describe the facts Define the conflict or dilemma and identify the issues Identify the stakeholders Identify the options you can take Identify potential consequences ```

Dilemma (define & five-step process to address)

the process in which laws are known and understood and there is ability to appeal to higher authority to ensure that laws have been correctly applies Laws are known, understood Ability to appeal to higher authorities to ensure laws applied correctly

Due process p.510

protects original forms of expressions such as writings, art, drawings, photos, movies, performances, and computer programs from being copied by others for minimum of 70 years does not protect ideas- just their expression in a tangible medium such as paper, cassette tape, or handwritten notes.

1. Identify and clearly describe the facts 2. Define the conflict or dilemma and identify the issues 3. Identify the stakeholders 4. Identify the options you can take 5. Identify potential consequences

Dilemma (define & five-step process to address)

``` Golden Rule Universalism Slippery Slope Collective Utilitarian Principle Risk Aversion No Free Lunch The New York Times Test The Social Contract Rule ```

Ethical Principles/how to analyze intended action (eight examples in your text on page 510)

Protects original forms of expression (not ideas) from being copied by others for a period of time It protects against copying of entire programs or their parts. Drawback is that the underlying ideas behind the work are not protected, only the expression in a work.

any behavior that would weaken the connection between trademark and product

Dilution:

Involves the registration of an infringing domain name or use of an existing trademark for the purpose of extorting payments

Cybersquatting:

Grant the owner an exclusive monopoly for 20 years on ideas behind an invention Invention must be new, non-obvious, novel Encourages inventors Promotes dissemination of new techniques through licensing Stifles competition by raising barriers to entry

Patent

used to identify and distingue goods and indicate their source Purpose Ensure consumer gets what is paid for/expected to receive Protect owner against piracy and misappropriation Infringement Dilution Federal Trademark Dilution Act and Trademark Dilution Revision Act Uniform Rapid Suspension System (U R S)

Trademark

Involves bypassing the homepage and going directly to content page

Deep Linking:

Integrating web operations with physical store operations

Omni-Channel

``` General Merchandisers Online Retailers Gasoline & Fuel Consumer Durables Specialty Stores Food & Beverage MOTO ```

Composition of US Retail Industry (no numbers/percentages, just definitions)

Can new entrants be barred from entering the industry through high capital costs or intellectual properly barriers (such as patents and copy rights)?

Barriers to entry

using trademarked words in a websites meta tag

Metatagging

Can customers choose from many competing suppliers and hence challenge high prices and high margins?

Existence of suitable products

``` Business procedures, formulas, methods of manufacture and service delivery May not be unique or novel Trade secrets are (a) secret (b) have commercial value to owner (c) owner has taken steps to protect ```

Trade Secrets

All Internet activities charged the same rate, regardless of bandwidth used

Net Neutrality

Non-local nature of Internet commerce complicates governance and jurisdiction issues

Taxation

Integrating web operations with physical store operations Leverage value of physical store Types of integration, e.g. online order, in-store pickup

Omni-Channel

products are made prior to orders received based on estimated demand

Supply-push model

p. 606!!!!!!

Understand advantages and challenges of online retailing

Focuses on both industry and firm itself ``` Key industry strategic factors Barriers to entry Power of suppliers Power of customers Existence of substitute products Industry value chain Nature of intra-industry competition ```

Strategic Analysis—Industry Level (e.g. barriers to entry) p. 604

refers to a kind of DRM that uses proprietary file formats, operating systems, and hardware to control the use of content after initial sale

Walled Garden -

Convergence (means being able to get any conent you want, when you want it, on whatever platfrom you want it

Media Convergence - p. 659

DEVLOPMENT OF HYBRID DEVICES THAT CAN COMBINE THE FUNCTIONALITY OF TWO OR MORE EXITNG MEDIA PLATOFROMS in single device Like media, books, newspapers, tv, games etc Examples: iphone being able to be used as phone, for music, tv, photos, etc

Technological Convergence -

Convergence in the design, production, and distribution of content. Today artist and writers assimilate new digital and internet tools into their toolkits Ex – garage band from apple enables low-budget independent bands to mix and control eight different digital music tracks to produce professional sounding records on a shoestring budget. Writers of books are beginning to think about video and interactive versions of their books. Online news papers are changing the news cycle to 24-hour stream

Content Convergence

The merger of media entirepses into powerful, synergistic combinations that can cross-market conent on many different platfroms and create new works that use multiple platfroms Takes place through purchases or stragetic alliances Each type of media use to have its own seprate industry typially compuse of large players, ex. Hollwood based production stuios or book publishers Internt has cosed on media and intner fris that make partnerships a necarry business propstion.

Industry Convergence

Publishing Newspapers (print & online) Books (print & e-books) Magazines (traditional & specialty) Television Cord-Cutters Games (growth trends in mobile gaming) Music (streaming & downloaded)

Trends:

paid subscription service

Paywall

companies that have a network of physical stores as their primary retail channel, but have also introduced online offerings Examples: Walmart, Macy’s, JCPenney, Staples, Target

Bricks-and-Clicks | omni channel merchants

selling movies online for download and ownership. The movei industry deries revune from both physical fromats (DVDs) and digital fromats like selling movis fro download Lead players: Apple’s iTunes store. Customers purchase and own the downloaded movie.

Electronic Sell Through (EST p.698) -

selling access on cable or the internet to specific movies a la carte on cable tv and over the internet Lead players: apple also the leader in iVOD a la carte rentals, but other major players include amazon, Hulu, and cable systems which also rent movies on demand.

Internet Video On Demand (iVOD) -

Staging the release of a new movie across different distribution channels with different prices. How Hollywood archives market segmentation by controlling release window, staggering market releasee. a from of price discrimation: those willing to see movie first willing to pay higher Releasee window is chaning under pressure from consumers to realse films ealier to streaming and VOD services. RW shrinking from 9 to four months, esp for bad movies

Release Window - p.699

(free conent can drive customers to paid conent, as streaming services like pandora and spofity have discovered

Media Revenue Models:

a freemium model that allows users access to free streamed music for a limited number of hours per month and relies on advertising to grenade revenue Ad revenues typical exceed subscription revenues by substantial margins

Advertising revenue supported -

p. 668 Refers to the combination of technical and legal means for protecting digital content from unlimited reproduction with out permission D R M hardware and software encrypts content Streaming content Difficult to copy Walled garden

Digital Rights Management (DRM)

A la carte networks examples showtime(premiere cable network original programing available on apple, Roku, Hulu and Vue. $11 a month) , HBO now, CBS all access (live tv in selected cities on-demand streaming of past shows in CBS archives).

A la Carte vs. Subscriptions (All You Can Eat) p. 695

is watching a tv series over an entire season as installments. Now being supplanted by binge watching entire seasons online over a few days. Netflix is leading subscription streaming service both in terms of number of subscribers and time spent using the service Duration is grown faster and large than iVOD and reflected in market share of Netflix and apple. subscription – all you can eat A la carte pay from what you use

Linear tv

do multiple things with one device, Ipad DEVLOPMENT OF HYBRID DEVICES THAT CAN COMBINE THE FUNCTIONALITY OF TWO OR MORE EXITNG MEDIA PLATOFROMS in single device Like media, books, newspapers, tv, games etc Examples: iphone being able to be used as phone, for music, tv, photos, etc

Technological Convergence -

Merging what you can do, it has become easier with easier tech Three aspects: Design, production, distribution New tools for digital editing and processing Convergence in the design, production, and distribution of content. Today artist and writers assimilate new digital and internet tools into their toolkits Ex – garage band from apple enables low-budget independent bands to mix and control eight different digital music tracks to produce professional sounding records on a shoestring budget. Writers of books are beginning to think about video and interactive versions of their books. Online news papers are changing the news cycle to 24-hour stream

Content Convergence

Merger of media enterprises into firms that create and cross-market content on different platforms The merger of media entirepses into powerful, synergistic combinations that can cross-market conent on many different platfroms and create new works that use multiple platfroms Takes place through purchases or stragetic alliances Each type of media use to have its own seprate industry typially compuse of large players, ex. Hollwood based production stuios or book publishers Internt has cosed on media and intner fris that make partnerships a necarry business propstion.

Industry Convergence

significantly narrower. Practice has experts and professionals who are sharing techniques to deal with problems. They are doers. Some non-profits Advertisers like it because they can put up ads for niche communities As an advertiser you can get more bang for your buck

Practice Communities:

hobbyists, people who are interested in following a topic

Interest Communities

linear tv, whenever you want Use of the internet to deliver entertainment services to the home on cable TV or FiOS networks. Developed by powerful technology companies Consumers have access to television shows and some full-length feature movies using the household internet service rather than cable tv service. Refers to the fact that Entertaiment service rides on top of other network services lie cable tb and telephone. With ott tv does not have to be linear, do not have to purchase a lot of bundles

Over-the-Top Services (OTT) (p.695) -

set up by companies, government etc. | Spread the word of their product

Sponsored Communities

delivering content that people find interesting and relevant. Unfortunately, it can reinforce mindsets creating people with extreme beliefs

Computer algorithms p. 737:

the difference in times before sent to dvd or streaming Staging the release of a new movie across different distribution channels with different prices. How Hollywood archives market segmentation by controlling release window, staggering market releasee. a from of price discrimation: those willing to see movie first willing to pay higher Releasee window is chaning under pressure from consumers to realse films ealier to streaming and VOD services. RW shrinking from 9 to four months, esp for bad movies

Release Window - p.699

a place where people can have discourse, but it only encourages likeminded discourse

Echo Chamber

everyone has the same idea, i.e.: when Facebook would only show stories that reaffirmed peoples’ political stance on their newsfeeds

Filter Trap:

C2C, B2C, English auction, ducth intnenet uction, name your own price auction, penny (bidding fee) auction,

Online Auctions Types

``` Delayed consumption costs Monitoring costs Equipment costs Trusts risks Fulfillment costs ```

Online Auctions Risks

``` Liquidity Price discovery Price transparency Market efficney Lower transcation costs Consumer aggreation Network effects ```

Online Auctions Benefits

p.727 | first social media group

The Well

buisenss sells goods it owns or controls using various dymanic pricng models

B2C

Facebook, twitter. Lot of people organized in general communities. Generally supported by ad space. Little filtering. Offer opportunities to interact with general audience organized into general topics Advertising supported by selling ad space on pages and videos

General Communities:

Offer focused discussion groups, help, and knowledge related to area of shared practice May be profit or nonprofit; rely on advertising or user donations significantly narrower. Practice has experts and professionals who are sharing techniques to deal with problems. They are doers. Some non-profits Advertisers like it because they can put up ads for niche communities As an advertiser you can get more bang for your buck

Practice Communities:

hobbyists, people who are interested in following a topic Offer focused discussion groups based on shared interest in some specific subject Usually advertising supported

Interest Communities Interest-based social networks:

based on what the individuals self-identify as. Part of the members identity Ie: associations, organizations Offer focused discussion and interaction with other people who share same affinity (self or group identification) Advertising and revenues from sales of products

Affinity Communities : Like religious, or race

set up by companies, government etc. Spread the word of their product Created by government, nonprofit, or for-profit organizations for purpose of pursuing organizational goals

Sponsored Communities Setup by companies with goal to promote product

Produce relationship-based content Affinity groups ex: profiles, newsfeed, etc. delivering content that people find interesting and relevant. Unfortunately, it can reinforce mindsets creating people with extreme beliefs

Computer algorithms p. 737:

buyer wins by the smallest amount, but buyer did not know how much they were really willing to pay

Seller’s lament:

people feel bad for losing the product after auction is over

Loser’s lament

p.751 (e.g. bid rigging)

Types of Auction Fraud

giving negative feedback to

Fraud:

``` Delayed consumption costs Monitoring costs (Solution: Fixed pricing) Equipment costs Trusts risks (Solution: Rating system) Fulfillment costs ``` Merchants: Nonpayment, false bidding

Online Auctions Risks

liquidity

Benefits of Auctions:

``` Conversations Engagement Now we’re trying to engage in conversations Need to be relevant Smartphones have impacted us Impact of smartphones and tablets ```

New marketing concepts

Strong ties between consumer use of social networks, mobile devices, and local shopping

Social-mobile-local nexus

item up for sale, people bid within a timeframe Single item up for sale to single seller Highest bidder wins

English Auction

don’t need to know it offhand Public ascending price, multiple units Final price is lowest successful bid, which sets price for all higher bidders

Dutch Internet Auction:

people pay whatever price they want. You have to commit to the purchase once you name your price. Users specify what they are willing to pay for goods or services and multiple providers bid for their business Prices do not descend and are fixed Consumer offer is commitment to buy at that price Enables sellers to unload unsold excess capacity Example: Priceline

Name Your Own Price Auction: it's gonna go out of stock

auction site has taken possession of the item. Need to purchase the right to bid. Middleman needs to be paid Must purchase bids ahead of time Items owned by the site Timed auction; last and highest bidder wins

Penny Auction: bidding fee

Fan acquisition, Engagement, Amplification, Community, Brand strength in terms of sales.

The Social Marketing Process

cognitive dissonance, buyer’s remorse | i spent too much

Winner’s regret: lament

Over 255 million Americans use a mobile device for Internet access Devices used multiple times per day By 2021, m-commerce will account for more than 50% of all retail and travel e-commerce. Challenges: Mobile search Motivating consumers to click Raising fees for each click

Mobile Marketing

people feel bad for losing the product after auction is over i should’ve gone up

Loser’s lament

p.751 (e.g. bid rigging) | Bid rigging, price matching, shill feedback, feedback extortion, shill bidding, bid siphoning

Types of Auction Fraud

giving negative feedback to | information asymmetries between buyers and sellers, causing auctions to fail

Fraud:

Provide services to users based on location Personal navigation Point-of-interest Reviews Friend-finders, family trackers Consumers have high likelihood of responding to local ads

Location-based services

``` liquidity Price discovery Price transparency Market efficiency Lower transaction costs Consumer aggregation Network effects ```

Benefits of Auctions:

Search engines ads Navigation of the Web Commerce Content (owned and others’) Goal is to keep visitors present and viewing ads

Portals p.752

Attempt to attract very large general audience Retain audience by providing in-depth vertical content channels Example: Yahoo

General Purpose p.754 portals

Attempt to attract highly-focused, loyal audiences with specific interest in: Community Specialized content particular community

Vertical Market

``` Location-based considerations Action-based, time-restrained offers and opportunities Target demographic and location-aware mobile user demographics Strategic analysis of marketspaces Measuring marketing results Same measures as mobile and Web marketing Metrics for unique characteristics Inquire Reserve Click-to-call Friend Purchase ```

Location-Based Marketing Campaigns

Information rights Property rights Governance Public safety and welfare

Four major categories of issues by internet

``` Ethics Responsibility Accountability Liability Due process ```

Basic ethical Concepts

Moral right of individuals to be left alone, free from surveillance or interference from other individuals, organizations, or state

Privacy

1. Right to control information collected about them - “Right to be forgotten” 2. Right to know when information is collected and give consent - “Informed consent” 3. Right to personal information due process 4. Right to have personal information stored in a secure manner

Information privacy: 4 premises | Information Rights

Data collected includes Personally identifiable information (P I I) Anonymous information Types of data collected Name, address, phone, e-mail, social security Bank and credit accounts, gender, age, occupation, education Preference data, transaction data, clickstream data, browser type

Information Collected by Websites

``` Profiling and ad targeting Social network privacy Sharing of information by marketers Mobile phone privacy Digital assistant privacy ```

Key Issues in Online Privacy of Consumers

Creation of data images that characterize online individual and group behavior Anonymous profiles Personal profiles Facial recognition a new dimension

Profiling

Track consumer and browsing behavior on Web Dynamically adjust what user sees on screen Build and refresh profiles of consumers

Advertising networks

Fair Information Practice (F I P) principles Informed consent: Opt-in and opt-out Harm-based approach “Do Not Track” mechanism Recent emphasis is to give consumer rights regarding collected personal information F T C’s current privacy framework Scope: Applies to all commercial entities Privacy by Design: Companies should promote consumer privacy throughout the organization and at all stages in the development of products Simplified Choice Companies should simplify consumer choice Greater Transparency

F T C

All tangible and intangible products of human mind

Intellectual property:

All tangible and intangible products of human mind

Intellectual property:

Self-regulation, through variety of Internet policy and technical bodies, co-exists with limited government regulation

Mixed mode environment

Self-regulation, through variety of Internet policy and technical bodies, co-exists with limited government regulation

Mixed mode environment

Most similar to online retail sector | Sophisticated order entry, delivery, inventory control systems

Mail order/telephone order (M O T O) sector

Most similar to online retail sector | Sophisticated order entry, delivery, inventory control systems

Mail order/telephone order (M O T O) sector

``` Firm value chain Core competencies Synergies Technology Social and legal challenges ```

Strategic Analysis | Firm-specific factors

``` Revenues Cost of sales Gross margin Operating expenses Operating margin Net margin Pro forma earnings-Earnings before interest, taxes, depreciation, and amoritization (E B I T D A) ```

Financial Analysis Factors Statements of Operations

``` Asset Current assets Liabilities Current liabilities Long-term debt Working capital ```

Financial Analysis Factors | Balance sheet

How firm is performing

Financial analysis

Ability of firms to survive as profitable business firms during specified period (i.e., 1-3 years)

Economic viability:

Amazon, Newegg, Overstock, Wayfair, Blue Nile

Virtual merchant

Virtual merchant Omni-channel merchants (bricks-and-clicks) Catalog merchant Manufacturer-direct

Types of E-tailing business models

Growing faster than pure online firms | Lower online customer acquisition costs

Multi-channel firms

Cannot provide all services that require face-to-face interaction

Pure online firms

Comparison shopping services, independent financial advice, financial planning Revenues from advertising, referrals, subscriptions Example: Yahoo! Finance, Quicken, M S N Money

Financial portals

Pulls together all of a customer’s financial data at a personalized website Privacy concerns: control of personal data, security, and so on Example: Yodlee

Account aggregation

Pulls together all of a customer’s financial data at a personalized website Privacy concerns: control of personal data, security, and so on Example: Yodlee

Account aggregation

Television viewing, music consumption remains strong, reading has increased Increase in total demand for media, including traditional products like books Physical products replaced by digital

Television, books, media, trends

Subscription A la carte Advertising supported (free/freemium)

Online content delivery revenue models

Cable

Subscription:

Just buy what you want, ex: just the 10 channels you want

A la carte:

Free:

Ads, low quality

Fee:

pay for items, higher quality

Print Movies Music

Three separate segments

Most troubled segment of publishing industry Four factors in decline Growth of Web, mobile devices as alternative medium Alternative digital sources for news Failure to develop suitable new business models Rise of social media and role of directing traffic to newspaper content

Online Newspapers

Physical magazine circulation falls after 2001 Exception is special interest magazines ``` Digital magazines!!!!!! Ad revenue growing Total audience size increasing Popular websites drive traffic to online magazines The New Yorker Today app Magazine aggregators ```

Magazines Rebound

After several years of explosive growth, e-book sales have flattened in recent years-$7.5 billion in 2017 Roughly equal to physical book sales for the first time New channel for self-publishing authors Major publishers still dominant source of book content While some large bookstore chains have disappeared, the number of small independent bookstores has grown by 35% since 2009.

E-books and Online Publishing

Retailers pay wholesale price and establish retail price

Wholesale model

Distributor as agent must charge publisher’s retail price

Agency model

``` Transition to new Internet delivery platforms Streaming and downloading services O T T: Over-the-top (Internet) delivery Mobile platform Binge watching versus linear T V Social network influences Uncertain future for cable T V growth ```

Television and Movies

``` Most disrupted of content industries Move from physical to digital product Digital revenues: 80% of all revenues Two types of digital music services Streaming subscription services (Internet radio) Digital download (download to own) ```

Music

``` Online gaming has had explosive growth Pokémon Go; Mobile platform Types of digital gamers Casual Social Mobile-fastest growing market Massively multiplayer online (M M O) Console Business models in flux E-sports, Twitch.tv ```

Games

Group of people Shared social interaction Common ties Sharing an area for period of time

social network

Marketing and branding Reaching younger audience Listening tool, monitoring online reputation Collaboration tool

Business use of social networks

Can be used to Sell goods and services Allocate resources Allocate and bundle resources

Online Auctions

Rating systems, watch lists, proxy bidding | Investigation units

Fraud prevention solutions include: