Topics 6 – Digital Markets

1a) What experiences have you had with shopping online?
I haven’t had much experience with online shopping and my only experience is purchasing a couple of items through eBay. 

1b) Describe a good experience.

I have only purchased a couple of items through eBay and have had no problems with the transaction.  I purchased the items through highly rated eBay seller and received the items I bought.  The goods, price and expected delivery time was as stated. 

1c) What did you like about the online store you used?
Convenience and price.  The items I purchased were available from local retailers, but at a more expensive price. I could shop when it suited me, which is generally at night after work. 

1d) Describe a bad experience.

I haven’t had a bad experience, so far, with any online shopping transactions. 

1e) What problems did you have with the online store?

I didn’t have any problems with the eBay site or seller. 

1f) What features make an online store more appealing?

Price and convenience are the only factors that concern me when purchasing items.  I don’t really pay much attention to the site itself.  I also factor in the reputation of the seller and ensure I only deal with reputable people. 

1g) What features make an online store less appealing?

As long as the product details and pricing information is correct I’m not really fussed by the remainder of the site.  I can understand that the appearance of the online store is very important and it must look professional. Websites that are visually unappealing or look “unprofessional” may not do so well.

1h) Should we expect to see the prices of goods and services rise or fall due to the migration of consumers online?

Pricing depends largely on what the market dictates and what the supply chain can deliver.  A recent example of this is Apple IPad 2 launch.  Apple, in my opinion, did not have enough stock to meet the expected demand.  As a result the IPad 2 is now selling on eBay at a higher price than the Apple RRP.  

2a) The dispersion of prices (that is, the spread between the lowest and highest price for a particular product) will narrow.

Yes, in the case I agree. Consumers generally always look for products and compare the prices. Most of the time consumers know what they want and will compare physical stores to online sites.  Most of the time a consumer will purchase through physical store if they can negotiate a lower price than the online store.

2b) The importance of brand names will decrease.

The importance of brand names, in my opinion, will not decrease. Consumers can be very brand loyal and this loyalty is developed over a long period of time.  Some consumers buy certain branded products despite the cost.

2c) Price competition will make all products cheaper.

Prices get cheaper for a number of reasons; part of this is due to competition.  Stores need to differentiate themselves from each other and if this means lowering prices to compete then stores will do so.  There has also been a rise in the number of “house brands” to help off set price wars.

2d) Digital markets will become dominated by a handful of mega-sites, like Amazon.com.

I agree that digital markets are dominated by mega sites. Sites such as Amazon, eBay and other sites dominate since are well known so consumers turn to them first.

2e) How do you think the balance of power between buyers and sellers will change?

The balance of power will always remain with the buyer.  The buyer has the money think that the balance of power will change between buyers and sellers are that people will be looking online for things. The buyers have to make sure that their prices are competing with other stores. If other stores are cheaper than consumers are more incline to go elsewhere. Sellers have more opportunity now since they can go online and see where they can get a product for a cheaper price.

2f) Prices are cluster online.

Prices, both in the physical and online store environment, vary.  If the same branded products can be purchased from multiple stores, then there will be price competition.  Pricing is also store dependant as areas like overheads will also impact on store pricing. 

2g) Online prices are elastic. (i.e. immune to change up and down with demand).

I think this depends on competition and demand.   Most prices would probably stay the same, depending on the level of demand and availability.  There is competition, but stores don’t discount unless required. 

2h) Online prices are generally transparent (the extent to which prices for a given product or service are known by buyers in the marketplace).

Product pricing is available everywhere in both the physical and online environments.  Most people have an understanding, when they purchase a product, as to what the price levels are.  Having stores online, just gives another avenue of comparing prices.

3a) What types of m-commerce services does your cell phone provider offer?

My mobile provider, Optus, provides m-commerce functions like:

• Paying bills online
• Web Email
• Gaming
• Movies-on-Demand

3b) Which of these services do you use?

The only mobile phone based service I use is accessing the internet.

3c) What types of transactions do you perform through your cell phone or other wireless devices?

I don’t use my mobile phone to buy, sell, bank etc. 

3d) What types of transactions would you like to perform, but are currently unable to?

I don’t have any plans to use my mobile phone for any web based transaction. 

3e) What is your opinion of wireless advertising/mobile marketing?

In my opinion wireless advertising/mobile marketing is obviously a tool that organisations will use to their advantage if required.  More and more people now have a mobile phone and it make sense that marketers would tap into this trend and use this channel to assist their efforts.  With the introduction of smarter phones consumers will have more access to the information they need, when they need it. 

The Future of Online Shopping

Augmented Reality Online Shopping

Internet

Topics 5 - Models

1) What is the mobile phone use /100 population - compare Australia, USA, China, India.

The global mobile phone usage per 100 population is 131.9%

The mobile phone usage / 100 population is:

·         Australia: 113.5%

·         USA:  90.8%

·         China: 55.5%

·         India: 43.8%

2) Internet use population - compare Australia, USA, China, India

The internet users / 100 population is:

·        Australia: 74.3%

·        USA: 78%

·        China: 28.9%

·        India: 5.1%

3) Compare main strengths and weaknesses of Australia in the survey.

Strengths:

• Political regulatory environment
• Infrastructure environment
• Individual readiness Weakness:

• Market environment
• Business readiness
• Government readiness

Overall Australia ranked quite well completely low. There were a few areas which Australia needs to improve on to become ranked higher.

4) What does the survey suggest to you about the Information Technology readiness of Australian business compared to Australian consumers?

This survey suggests that Australian business readiness is ranked 22 compared to individual Australian consumer which is ranked 13. This shows that the Australian consumer is ranked higher than Australian businesses.

All information is sourced through this website:
World Economic forum.(2009). The global information technology report. Retrieved April 25, 2009 from: http://www.insead.edu/v1/gitr/wef/main/fullreport/index.html

Topics 4 - Analytics

1) Looking at the site usage, what does the terms visits, page views and pages/visit mean? What does the bounce rate mean and does it vary much from day to day?

When using Google Analytics to analyse the site www.foliospaces.com the following information was found:

Visits: Represents the total number of visits the site has had.  As of Monday 11/04/2011 there had been a total of 8427.  this amount represented an average of 271.84 visits per day .

Page Views: Is the number of time a page had been viewed. The total number of page views on Monday 11/04/2011 was 92,334. 

Pages/Visit: Is the average number of site pages viewed by a user.  As of Monday 11/04/2011 the average page views was 10.96.

Bounce Rate: It represents the percentage of visitors who enter the site and "bounce" (leave the site) rather than continue viewing other pages within the same site.  The bounce rate does vary from day to day and the average bounce rate is $35.47%

2) Now look at the traffic sources report. What are the three sources of traffic and where has most of the traffic come from?

The three sources of traffic are Direct Traffic (42.57%) Referring Sites (23.76%) and Search Engines (33.68%).  Most of the traffic has come from educational institutions.

3) What was the most popular web browser used to access the site?

Up until Monday 11/04/2011 the most popular web browser used to access the site was Internet Explorer with 432 visits which equated to 51.36% of the total browser statistic.  Internet Explorer 8 is the most used version with 66.41%.

4) How many countries did visitors to Foliospaces come from and what were the top three countries?

As at 12/04/2011 there were a total of 8586 visits and these came from 74 countries/territories.  The top 3 countries listed were:

Australia: 3894

United States: 2193 visits

United Kingdom: 991 visits



Google Analytics World Map



5) Having clicked every possible link on my analytics, make a few comments on:

(a) What you can track:

• Visits
• Page Views
• Time on Site
• Bounce Rate
• Traffic Sources
• List of Countries
• User Overview

(b) What you can track over time:

• Number of Visits
• Number of Page Visits
• Length of Time Spent on a Page
• Visits per Country
• Bounce Rate

(c) What you can’t track.

• User Gender
• Specific User Location
• User Age

6) What do the following terms mean?

High Bounce Rate: High bounce rate means the many times a user/person left the website after entering.  http://en.wikipedia.org/wiki/Web_analytics

Keywords: Keywords, in web analytics, are the words used when searching for a website in a search engine.  Each website has its own keywords that allow users to find relevant websites that contains the keywords which the user is looking for. http://en.wikipedia.org/wiki/Web_analytics

Average Page Depth: Means the average user page visits for a site. http://en.wikipedia.org/wiki/Web_analytics

Click Through Rate: is a way of measuring the success of an online ad campaign.  A CTR is obtained by dividing the "number of users who clicked on an ad" on a web page by the "number of times the ad was delivered. http://en.wikipedia.org/wiki/Web_analytics

Click: Means the selection of a web items (i.e. hyperlink) and pressing a button on a mouse.

http://en.wikipedia.org/wiki/Web_analytics

Cookie: Cookies store web/user data on a user's PC in small text files which is data about websites visited. http://en.wikipedia.org/wiki/Web_analytics

Impression: Is an advertisement's appearance on an accessed web page.

http://www.webopedia.com/TERM/I/impression.html   

Hyperlink: In computing, a hyperlink (or link) is a reference to a document that the reader can directly follow, or that is followed automatically. http://en.wikipedia.org/wiki/Hyperlink

Navigation: Web navigation refers to the process of traversing a network of web resources, and the user interface that is used to do so. A central theme in web design is the development of a web navigation interface that maximizes usability. http://en.wikipedia.org/wiki/Web_navigation

Pageview: Is when the internet page is viewed. http://en.wikipedia.org/wiki/Web_analytics  

Session: A session is how long the user is on the website for. http://en.wikipedia.org/wiki/Web_analytics  

Unique Visitors (or Absolute Unique Visitors): A unique visitor is when the website identifies the user by IP address.  http://en.wikipedia.org/wiki/Unique_visitors

URL: In computing, a Uniform Resource Locator (URL) is a Uniform Resource Identifier (URI) that specifies where an identified resource is available and the mechanism for retrieving it.

http://en.wikipedia.org/wiki/Url 

Visitor: A visitor is a user/person who visits a website. http://en.wikipedia.org/wiki/Web_analytics   

Visitor Session: A visitor session is the amount of time a user/person spends on a website.
http://en.wikipedia.org/wiki/Web_analytics    

Analytics: How it works

Google Analytics: Tutorial

Topic 3 - Digital Design

1) In two paragraphs explain why a customer centric Web site design is so important, yet so difficult to accomplish.

“Customer-centric" means creating a platform, such a web site that is completely centered on a customer’s wants and needs.  Organisations need to realise they have to provide consumers with a unique experiences, which offer trust, quality products and ease of use.  Web sites also have to project strength and confidence to the consumer.  Things that need to be considered when designing a “customer-centric” website include:

·         Organisation: You need to make sure your site is clearly organized, consistent, spelt correctly and easily navigable.

·         An area to provide feedback is vital.  Organisations need to take an interest in the opinions of their customers to ensure they are providing the products and service their clients want and need. 

·         Support is also a crucial factor in designing your site.  Support tools (i.e. manuals, updates etc) need to be provided easily.  Customers also need to be reassured that if questions are raised, answers will be given.

·         Clear definitions and products descriptions need to be given.  Contact details also need to be clearly displayed.

A “customer-centric” web site is difficult to achieve and maintain due to a number of factors that include:

• The first of which is the changing needs of the consumer.  Any change in consumer demand needs to be acted upon in order to retain and grow current market share.
• A web site designed for the consumer, so that they get want they need, when they want it.  This is extremely difficult to achieve as consumers can be affected by influences such as social and financial standing, personal and cultural values and geographical location.
• Company view and outlook.  Quite often a company will have a different view or understanding of what their customers want.  Without this connection, which can be gathered through market research, feedback etc, the organization may be developing plans or releasing new products that are not required or irrelevant.

Business success is all about meeting a customers needs better than anyone else.  Web sites are a direct extension of your organisation and appropriate resources need to be invested to ensure this sales channel reaches and maintain it full potential.  http://www.4hb.com/0520cpcustomercentric.html


2. Define the term 'presence'. Write an additional paragraph that describes why firms that do business on the Web should be more concerned about presence than firms that operate in the physical world.

The term presence is defined as “the state or fact of being present; current existence or occurrence. (http://www.thefreedictionary.com/presence).

With the above definition in mind web based businesses need to focus on “presence” to ensure that they distinguish themselves from other sites and to, it is vital for virtual business’ to have a solid and trustworthy “presence”

In my opinion firms/businesses that do business over the internet on websites have to be more concerned about presence because consumers may not know about the businesses and would then most likely never search for that particular product/service. Online businesses have to be more aware of presence rather than businesses in the physical world because businesses in the physical world have shops and people can see the shop physically so it is easier for the business to be recognised. Businesses that are online have to advertise and try and make sure they become present and have a presence in consumers’ minds since a consumer is unlikely to know about the business if they have not made an impact.



3. Describe the things Real Estate Agents can best accomplish through:

1.       A web site.

2.       Mass media advertising

3.       Personal contact

The three things that Real Estate Agents can accomplish best through the below channels are:

Websites: Most Real Estate Agents now use websites as their initial contact portal for potential buyers and sellers.  Websites, once developed and setup are easy and cheap to maintain.  Information that is contained on these websites is deemed, in my opinion, to be the most up to date.  Most people (buyers or sellers) will use the internet to find out information about properties in the area of interest to gauge current prices and market trends.  Web sites like www.domain.com.au and www.realestate.com.au allow Real Estate Agents to provide floor plans, virtual tours and photos.  The other advantage of a web site is that it is available 24 hours a day, 7 days a week allowing potential clients to browse the catalogues when it suits them.  The web is global and offers Real Estate Agents to capture clients from a variety of locations that have traditionally been difficult to service. 

Mass Media: Is, in my opinion, the tool of choice for Real Estate Agents to promote brand recognition and promote business strength.  It is generally contained in print media and is highly customised for the local/regional needs of the Real Estate Agent.  Print media is often quite expensive and can often be out of date by the time clients receive the information.  Television and radio campaigns are often used to promote the brand. 

Personal Contact:  Real Estate Agents use personal contact to build and maintain client (both seller and purchaser) relationships.  Using interpersonal skills and contact is essential to the sales process, as it gives the Real Estate Agent a chance to gauge the prospective clients and gives a feel for the quality of the potential transaction.  Alternatively the clients are also evaluating the Real Estate Agent during this personal contact to gauge similar feelings to see if the representative can give them what they want and need.  Personal contact is also used to clarify and offer additional information about services and/or properties.

Topic 2 – Navigating the Web Questions

Part 1 – Navigation

One of the biggest challenges for businesses and customers alike is navigating the Internet. This week please answer the following questions on your blog -

1) Listen to the podcast on Navigation which can be found on the Digital Enterprise Page. http://digitalenterprise.org/navigation/nav.html

b) Watch or read the Marissa Mayer interview. Write a paragraph or two, on four points made by Marissa Mayer, that you think were the most interesting or significant for business. There are no right or wrong answers here, I just want your opinion.

a) What are the four (4) main points Michael Rappa makes about search? Please write them on your blog page.

The four main points that Michael makes about searching are:

• Volume: Data is in a constant state of change on the Internet and coupled with relatively inexpensive data storage techniques we now have the ability to keep everything.  The information is available to us comes from a variety of sources and is available in massive quantities.  The problem with the massive volume of data is that search can become time consuming and irrelevant. http://digitalenterprise.org/navigation/nav.html

• Search Engines:  Generally search engines use key phases or terminology to determine and display results.  As a result search engines can provide a massive number of “hits” that can often prove irrelevant or unhelpful.  Search engines also use paid placements and as these are often the first items displayed, searches can be distorted. http://digitalenterprise.org/navigation/nav.html

• Available and Accurate Information: Despite the ability of search engines, they can only display a certain amount of information, based on factors like paid placement, to the user at a particular point of time.  This means the user can’t see all information and can only sort through what is available to them.  http://digitalenterprise.org/navigation/nav.html

• Paid Placement:  Generally people only look at the first few pages of result for an Internet search.  Therefore Companies could manipulate the results, based on their financial resources, to provide an advantage over their competitors.  There also may be an implied trust with a high search result placement that may be inappropriate. http://digitalenterprise.org/navigation/nav.html

b) Watch or read the Marissa Mayer interview. Write a paragraph or two, on four points made by Marissa Mayer, that you think were the most interesting or significant for business.

One of the interesting points I got from this interview was that despite the technological advances and the progress they have made since Google was created, Marissa Mayer words sounded like they still had a long way to go and that Google had only just scratched the surface.  Marissa Mayer made comments that Google could only just scratch the surface of the web with regards to data searches.

Another point Marissa discussed was how Google used a prototype and the feedback from users to adapt and continually improve its product.  It is critical that businesses use this information to not only improve products, but also the way they do business.  If organisations don’t use the information available to them they will lose their competitive edge and may face unforeseen problems with products or services. Companies need to keep their customers happy, if not consumers will take their business elsewhere

Another area Marissa Mayer spoke about was advertising and how Google used the advertising revenue to boost the working capital.  Advertising also complimented the searching by displaying ads that attract or focus attention.  Companies can use this to their advantage. 

Throughout the interview Mayer also spoke about Google and its penetration into various countries throughout the world.  Google, in slightly various forms in India and Brazil, can be accessed from any country. Information flows and data sources remain the same, although Google needed to expand its physical presence into these markets.  This would have proved costly.

http://techcrunch.com/2009/03/06/marissa-mayer-on-charlie-rose-the-future-of-google/

Part 2 - History of the Internet

1) So what are the 6 webs?

The six webs, as outlined by Bill Joy on the website http://www.technologyreview.com/blog/pontin/14964/ , are:

1)       The Near Web: Which is described as the Internet you can see when you look at your PC screen.

2)       The Here Web: Which is the Internet that you carry with you that is accessible on mobile devices like a mobile phone. 

3)       The Far Web: Is the Internet that you can see when you sit back and from a big screen, like a television.

4)       The Weird Web: Which is the Internet that is accessed through your voice and which you listen to.  This will be accessible when you are in your car or when you talk to an intelligent software system on your phone.  Bill Joy concedes that this Web does not yet fully exist.

5)       Business-to-Business (B2B): This Internet doesn’t possess an end user interface and is considered to be a medium where business machines talk to other business machines. It is the chatter of corporations amongst themselves when they do not care about their human drones.

6)       Device-to-Device (D2D): This is the Internet of intelligent buildings and cities.  This web does not exist yet, but it is getting closer with the invention of smart houses and technology.

2) Could there be more?

Of course there could be more.  At the moment it may not be possible to define what these will be or how they will relate to us, but as technology, culture, habits and beliefs change, new previously unidentified needs or wants may develop.

3) What does it mean for business?

Potentially ii means huge markets with limitless growth opportunities, however companies will need to spend money, take planned risks and develop products that are based on the current and foreseeable needs of their consumer base and society as a whole.

Topic 1 - Introduction to eCommerce Questions

Q1): Internet risks – give examples of four things that can go wrong with a transactional site?

Many things that can go wrong, some of these include:

• Fraud and Theft:  For the vendor this can include dealing with stolen credit cards and false claims about missing shipments.  Indentify theft and hacking are also major concerns for any transactional site.
• Order Fulfilment: This can occur when goods go missing during shipping, or are delayed. 
• Disputes: Arising from disputes about product or service descriptions and there intended/expected use.  Incorrect billing (i.e. multiple charges or being billed without approval) can also cause major issues for the vendor.
• Hardware: Electronic vendors can face system issues due to unexpected or heavy volumes of traffic and equipment failure.  Scalability should be factored into your resource planning

It should be pointed out the above issues are also concerns for your traditional physical store.

http://en.wikipedia.org/wiki/Ebusiness

2) Write down a definition for each:

a)   eCommerce: Is the term used to describe to conducting of business (i.e. buying and selling of products or services) over an electronic medium like the internet or a computer network.  eCommerce is often catagorised into Business-Business (B2B) and Business-to-Consumer (B2C).  eCommerce has extended to areas like supply chain management, inventory management and marketing.

http://en.wikipedia.org/wiki/Ecommerce

b)  eBusiness: eBusiness is the term used to describe the information and communication technologies (ICT) that support the activities of the business.  This means the infrastructure (i.e. hardware etc) that is used to process the eCommerce transactions.

http://en.wikipedia.org/wiki/Ebusiness

3) What is the difference between buy-side and sell-side eCommerce?

Buy-side eCommerce is the term used to describe where one business electronically purchases goods or services from another business.  Sell-side eCommerce is where that business electronically sells products to a customer or end-user. 

http://answers.yahoo.com/question/index?qid=20090211011930AA9L1jc

4) Describe the different types of eBusiness.

The different types of eBusiness are:

• Business-to-Business (B2B): When a business sells to another business. 
• Business-to-Consumer (B2C): When a business sells to an end-user (customer)
• Consumer-to-Business (C2B): When a consumer allows businesses to tender for their required products or services.
• Consumer-to-Consumer (C2C): This is when an end-user buys or sells to other end-users.  Ebay can be considered an example of C2C.
• Government-to-Government (G2G): When a government sells to another government.
• Consumer-to-Government (C2G): When end-users advise/tell the government what they want.
• Government-to-Business (G2B): Platforms that allow the government to assist businesses meet their obligations (i.e. the lodgment of tax returns, information exchanges).
• Business-to-Government (B2G): When a business advises/tells the government what they want. 
• Government-to-Consumer (G2C): Platforms that allow the government to assist end-users meet their obligations (i.e. the lodgment of tax returns, information exchanges).

(Introduction to eBusiness, Slide 13 - Ian Knox)

5) Which digital technology has the highest penetration rate?  Explain and source your answer.

Although PC’s are a major platform for the use of the internet, mobile phones have become the dominating tool used for accessing the internet.  This surge has been caused, in part, by the invention of the “smart phone”.    Mobile phones are more accessible both in price and availability to all social and economic demographics in the world.   This is particularly evident in place like Africa, China and India.    Further information regarding the penetration rate of telecommunications as an internet platform can be found here http://www.itu.int/ITU-D/ict/statistics/. 

6) List four drivers to adoption of sell-side eCommerce by business.

Four drivers, although primarily associated with cost reduction, to assist in the adoption of sell side eCommerce by business are:

• Reduction in supply chain costs with shorter lead times, direct supplier logistics, drop point or consolidated shipments. 
• Reduced marketing/advertising costs due to the use of cheaper and/or alternative marketing platforms.  Website and email often allow for greater market penetration over traditional print based mediums. 
• Potential to increase revenue by exploring new markets or up-selling current sales with little or no exposure. 
• Reduced administration costs particularly with regards to using online payment platforms (i.e. EFT) and document exchange processes like email. 

(Introduction to eBusiness, Slide 17 - Ian Knox)

7) Four barriers to adoption of sell-side ecommerce by business.

Four barriers to sell-side business and its adoption can be:

• Lack of knowledge and understanding of the platforms and technologies available.
• The high and often unplanned start-up costs associated with eBusiness. 
• Time and resources can become a major problem if the dedication, equipment or and monetary funds are limited or unavailable. 
• Trust, as this is critical to the “buy-sell” relationship.  End-users and suppliers need to have the confidence in the operators’ capacity and ability to pay.  Trust is built over a period of time, which encompasses the comment above about the importance of time and resources. 

(Introduction to eBusiness, Slide 17 - Ian Knox)

 

8) Write a paragraph or two describing the current importance of ICT in your professional life.

Information and Communication Technology (ICT) is the term used to describe all forms of computers, communications equipment and software used to create, design, store, transmit, interpret and manipulate information in its various formats.
(http://www.uq.edu.au/ict/what-is-ict)


ICT in the organisation I work for, like all businesses, is extremely important.  Apart from our normal business routines and daily operations, ICT is becoming a key factor in the development of new products.  One such example is our Automatic Milking Systems.  Details can be found here http://www.delaval.com/en/-/Product-Information1/Milking/Systems/Automatic. New product development factors for DeLaval include need to animal welfare and need to assist with farm management.  The technology used in our products is critical in achieving these requirements.

Update

Latest updates for my blog site include:

• The latest live news feed from GOOGLE
• RSS feeds from COMERSUS and THE ECOMMERCE BLOG.  
• Links to some YOUTUBE ecommerce videos
• An ABOUT ME section and BLOG ARCHIVE

Further posts and changes will occur as my knowledge and understanding of ecommerce and any associated topics occurs.