C CC Consumer Perspectives Electronic Commerce means Dynamic changes in Business Approaches

Consumer PerspectivesConsumer Perspectives

Electronic Commerce means Electronic Commerce means Dynamic changesDynamic changes

in Business Approaches in Business Approaches

As more children go online, visit As more children go online, visit virtual online environments e.g. virtual online environments e.g.

Disney’s Club Penguin. Disney’s Club Penguin. By 2011, about 87% of all teens By 2011, about 87% of all teens and 44% of all younger kids will and 44% of all younger kids will

be online be online Half will frequent digital worlds. Half will frequent digital worlds.

Source: eMarketer (emarketer.com)Source: eMarketer (emarketer.com)

A NEW COMSUMER GROUP IS EMERGING

BREAKING THE IMPORTANCE OF PRICE MYTH

*

Do Firms Compete on value Do Firms Compete on value Propositions or Value Clusters?Propositions or Value Clusters?

ta rg e t seg m en t foca l cu s tom er b en e fit u n iq u e cap ab ilit ies

V a lu e P rop os it ion

Defines how a company’s product or service fulfills the needs of customers

Why will customers choose to do business with your firmWhat will your firm provide that others do not or cannot?

Examples of successful value propositions:Personalization/customizationReduction of product search, price discovery costsFacilitation of transactions by managing product delivery

ta rg e t seg m en t foca l cu s tom er b en e fit u n iq u e cap ab ilit ies

V a lu e P rop os it ion

m u ltip leta rg e t seg m en ts

com b in a tion o fcu s tom er b en e fits

u n iq u e cap ab ilit ies

V a lu e C lu s te r

CLUSTERS IS WHERE THE INTERNET HAS ADVANTAGEMETRIX DATA COLLECTION

THE LONG TAIL OF ECOMMERCETHE LONG TAIL OF ECOMMERCE

Copyright © 2007 Pearson Education, Inc.

E-commerce Site Features that Annoy Customers

SOURCE: Based on data from Hostway Corporation’s survey, Consumers’ Pet Peeves about Commercial Web Sites, Hostway Corporation, 2007.

1. Context1. Context - Design - Design LLook and Feel ook and Feel

Section Breakdown Linking Structure Navigation Tools Site Performance Aesthetics Color Scheme Visual Themes

– Context Archetypes form and function

Aesthetically Dominant:

Functionally Dominant:

Integrated: Balance of form and function.

Designing for AccessibilityDesigning for Accessibility

Section 508 - 1998 REHABILITATION ACT

Why are merchants reluctant to make their sites accessible to disabled Americans?

How can sites be made more accessible?Should all Web sites be required by law to provide

“equivalent alternatives” for visual and sound content?

2006 TARGET CASE – ADA DOES APPLY

FUNCTIONAL DOMINATEECTION BREAKDOWN ETC.

7

INTEGRATED APPROACH PATAGONIA.COM

2. COMMERCE

4. CONECTION: LINKS TO OTHERS through a vast number of interest areas but does not provide means for users to interact with one another

5. CONTENT: MULTIMEDIA, TEXT, PICTURES, ETC.number of interest areas but does not provide means for users to interact with one another

WHAT IS A COMMUNITY AND WHAT IS A COMMUNITY AND WHY DEVELOP ONE?WHY DEVELOP ONE?

6. COMMUNITY

6. Community6. Community

Café

Bazaar

Theme ParkClub

Shrine

Theater

TARGETS FOR

THE EVALUATION OF

ECOMMERCE EFFECTIVENESS

MATRICS

Meaningful Metrics

WHAT ARE SOME MEANINGFUL METRICS?

WHY?

AND WHAT DO WE DO WITH THE INFORMATION?

Massive Data is Confusing and Overwhelms.•Numbers and information generated to measure/monitor online commerce overwhelms.

•There is no one statistic that provides insights for e-merchants to evaluate performance/adjust strategies. D

•Data must be evaluated to appreciate what is/not working. Benchmark results against key competitors, segment by individuals & perform trend analysis to discount the impact of short-term promotions and seasonality.

•E-retailers know limits of metrics and not alter strategies to produce attractive numbers

UNFORTUNATELY ITS NOT SUNNY FOR UNFORTUNATELY ITS NOT SUNNY FOR ALLALL

THE END