Tutorial 12

Chapters 8 & 13

End of Chapter Questions, Chapter 8 (p.485):

1. What is the difference between an interstitial ad and a superstitial ad? (Question 5)

Interstitial ad : a way of placing a full-page message between the current and destination pages of a user

Superstitial ad : a rich media ad that is pre-loaded into a browser’s cache and does not play until fully loaded and the user clicks to another page

2. What are some of the advantages of direct e-mail marketing? (Question 9)

è Low cost (sending e-mail is free)

è Fast & worldwide

è Sent to interested users

3. List and describe some Web site design features that impact online purchasing. (Question 15)

Compelling experience: provide interactivity, entertainment, human interest, site is dun to use.

Editorial content: provide helpful content, opinions, features on subjects of interest to visitors in order to increase stickiness.

Fast download times: quicker is better, if longer, provide amusement.

Easy product list navigation: consumers can easily find the products they want.

Few clicks to purchase: the shorter the click list, the greater the chance of a sale.

Customer choice agents: recommendation agents/configurators help the consumer make quick, correct choices.

Responsiveness: personal e-mail response; 1-800 phone capability show on Web site

End of Chapter Questions, Chapter 13 (P. 808):

1. What is personalization or personal value pricing and how can it be used at the beginning of a product’s life cycle to increase revenues? (Question 1)

Personalization / personal value pricing : adjusts prices based on the merchant’s estimate id how much the customer truly values the product.

For example, Web merchants may charge committed fans of a musician a higher prices for the privilege of receiving a new DVD before its official release to retail stores.

2. What is an affinity community and what is its business model? (Question 2)

Statistical aggregrates of people who self-identify with one another to some material extent in their attitudes, values, beliefs, and behaviour.

Affinity group tends to offer less well-known brands in their business compared to general purpose portals.

3. Why did most communities in the early days of e-commerce fail? What factors may enable some online vertical communities to prosper today? (Question 13)

In the old days, not many companies goes online, so the online shops offered limited products and not everyone in the old days trust online products and online transactions (safety reason).

Nowadays, you can find anything online, and the online shops provide the safe online transaction so many consumers start to buy things online and they find it easy, convenient and secure.