1st Exam Notes
1st Exam Notes MIS 441
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This 5 page Study Guide was uploaded by Becca Savino on Saturday February 7, 2015. The Study Guide belongs to MIS 441 at Washington State University taught by Mr. Vithayathil in Winter2015. Since its upload, it has received 835 views. For similar materials see Global eCommerce in Computer Science and Engineering at Washington State University.
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Date Created: 02/07/15
Exam 1 Review 1 List and discuss the FIVE potential limitations that may inhibit the future growth of eCommerce 2 a Expensive technology If we can t afford it we won t be using it b Sophisticated Skill set If consumers cannot easily use the technology many will give up and resort to easier options c Attraction to physical markets and traditional shopping experiences Businesses must make online shopping an interactive fun shopping experience or consumers will resort to more traditional shopping methods d Global inequality leading to limiting phone and computer access Not everywhere has equal access to the internet or even phones computers e Saturation and celling effects It will be hard to penetrate a saturated market and there are only so many consumers that need a product eventually there may be ceiling effects Identify the eight unique features of ecommerce technology and explain how these features set ecommerce apart from more traditional ways of conducting commercial transactions 8 Ubiquity The state of being everywhere Internetweb technology is available everywhere at work at home and elsewhere via mobile devices Global Reach The technology reaches across national boundaries around the earth Universal Standards There is one set of technology standards namely internet standards Richness Video audio and text messages are possible Interactivity The technology works through interaction with the user Information density The technology reduces information costs and raises quality Personalization Customization The technology allows personalized messages to be delivered to individuals as well as groups Social Technology User content generation and social networks Discuss the implications of each of the unique features of ecommerce technology on the overall business environment Ubiquity Alters industry structures by creating new marketing channels and expanding the size of the overall market Creates new efficiencies in industry operations and lowers costs of firm sales operations Enables new differentiation strategies Global Reach Lowering barriers to entry and expanding markets Lowers cost of industry and firm operations though production and sales efficiencies Enables competition on a global scale Universal Standards Lowers barriers to entry and intensifying competition with an industry Lowers costs of industry and firm operations by lowering computing and communications costs Enables broad scope strategies Richness Reducing strength of powerful distribution channels Reduces reliance on sales force and enhances postsales support strategies Interactivity Reduces threat of substitutes through enhanced customization Reduces reliance on sales force Enables personalized marketing strategies Information density weakens powerful sales channels and shifting bargaining power to consumers Reduces firm operation by lowering costs of disseminating information about suppliers and consumers Personalization Customization Reduces threats of substitutes and raises barriers to entry Lessens reliance on sales force Enables personalized marketing strategies Social Technology shifts programming and editorial decisions to consumers Creates substitute entertainment products Energizes a large group of new suppliers Define and discuss brands addressing the issues of whether or not they are rational how long they typically last and if they are viable in the Internet era Definition brand is what your prospect thinks of when he or she hears your brand name Brands can be both irrational and rational depending on the person and brand For example someone can be loyal to a brand because they feel like it s a better brand with only emotions to back their rationale Or on the other hand people can think that a brand is better quality more durable which in my eyes in rational But either way it s no surprise that brands are incredibly important to an organization because having a strong brand can increase recognition for your company and help increase prices if your brand has built up a great identity I don t think brands have a 1ife expectancyquot because each brand is so different and you can t really put a number on their life expectancy Brands are viable in the Internet Era which is unlike what they originally thought in mid to late 1900 s because although there is more information available to consumers there is still information asymmetry so the predicted law of one pricequot and frictionless commercequot have yet to emerge in the internet era 5 Discuss the process of establishing a relationship with the customer focusing on permission marketing affiliate marketing and mobile marketing 1 5 Focus on making your website communicate key ideas that you want your customer to associate with a Because the first function of the website is to establish the brands identity and anchors the firms other marketing techniques Making interactive online interfaces simple and easy to use Make website a hub for the rest of your digital presences such as social media accounts Make it easy to connect to all your other social media accounts ect Make the customer experiencequot phenomenal a This includes the search informing purchase and post purchase help from the company b This will effect the customer s cognitive affective emotional physical and social relationship to the firm Permission marketing obtaining permission from the customer before sending them promotional messages 0 Establishes better relationship with customer because they feel like they get to opt in or out of messages at any time o Heavily used in email Affiliate marketing Paying other web sites to send customers to your site 0 Operates on a payforperformancequot basis 9 paying for the amount of times people go to your link through their site 0 When affiliate company is prestigious it makes your site gain credibility Mobile Marketing Using banner ads rich media video games email texts instore messaging QR codes and couponing to market yourself 0 This is great for creating your brand identity 6 Define network effects herd contagion behavior and wordofmouth can affect O O 0 business favorable and unfavorably Network Effect When users receive utility from the fact that many other people are using it as well Herd behavior People follow what others are buying WOM Also called viral marketing people talk post of social media sites about their shopping experience and others will follow suit based off of that persons opinions All three of these behaviors can affect a business either favorably or unfavorably in very similar ways In each case if someone starts to use a product and is raving about it it makes the productbusiness seem more prestigious and helps them gain customers and loyalty If people are unsatisfied with their experience they can rant about it and others will stop shopping there or not buy certain products based on all three of these behaviors Terms Definitions Firm Value Web A networked business ecosystem that uses internet technology to coordinate the value chains of business partners within an industry or to coordinate the value chain of a group of firms Web 20 Provide services that are truly unique to the web such as photo sharing video sharing and usergenerated content Set of application technologies that allows users to edit create and distribute content share preferences bookmarks and online personas participate in virtual lives and build online communities Bund ng Offering two or more goods for a more reduced price than when bought individually Gilder39s Law Bandwidth grows 3 times faster than computer power Binary System Only use 1 s and 0 s On off 01 Base number is 2 when taking binary code and converting it to number It s easier to represent two states in electronics 0 Ex Light onoff Bit Byte 0 Bit is a O or 1 0 Byte is how many spaces Moore39s Law The observation that over the history of computing hardware the number of transistors in a dense integrated circuit doubles approximately every two years Wikipedia quot In other words Transistors double every 2 years Was the cofounder of Intel Corp Global Reach Technology that reaches across national boundaries Consumer Surplus difference between willingness to pay and price charged As an ecommerce merchant you would like the consumer surplus to be as small as possible Apple is The Masterquot at doing this Maybe Microsoft market share Versioning Creating multiple versions of information goods and selling essentially the same product to different markets at different prices FrictionFree Commerce A version of commerce which information is equally distributed transaction costs are low prices can be dynamically adjusted to re ect actual demand unfair competitive advantage are eliminated Digital Goods Digital goods are delivered over a digital network Said networks can include 0 Music Video Software Newspapers Magazines Books 00000 Information Asymmetry Differences in information in both parties in a single transaction Can create trust issues between consumer and seller if seller is taking advantage of these information differences WillingnesstoPay WTP Based on utility Most difficult factor to determine Use internet marketing techniques to find Network Effect Occurs when users receive value rom the fact that everyone else uses the same tool or product
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