p.8
Marketplace Channel Structures
What is the focus of Chapter 2 in the context of e-commerce?
Marketplace analysis for e-commerce.
p.8
Types of Online Commercial Arrangements
What are the three perspectives from which a business model can be viewed?
Marketplace position perspective, revenue model perspective, and commercial arrangement perspective.
p.12
Assessing Online Business Sustainability
What is a major challenge for investors assessing new e-commerce companies?
Determining the long-term sustainability of start-ups.
p.14
Marketplace Channel Structures
What is the purpose of conducting a marketplace analysis in e-commerce?
To develop a long-term digital business plan or a shorter-term digital marketing campaign.
p.11
Revenue Models in Online Business
What is the impact of the number and size of ad units on revenue?
Too many obtrusive ad units can harm user experience, while too few can reduce revenue.
p.5
Types of Online Commercial Arrangements
How has the Internet changed the importance of commercial arrangements?
The ability to publish new offers and prices rapidly has increased the importance of options like auctions.
p.12
Revenue Models in Online Business
What does ARPU stand for?
Average Revenue Per User.
p.8
Types of Online Commercial Arrangements
What does Michael Rappa provide in his compilation related to online business models?
Examples of online business models in various categories.
p.5
Types of Online Commercial Arrangements
What is a negotiated deal in online transactions?
A bargaining process between a single seller and buyer, similar to an auction.
p.9
Revenue Models in Online Business
What do revenue models specifically describe?
Different techniques for generation of income.
p.8
Types of Online Commercial Arrangements
What is the purpose of Activity 2.2 mentioned in the text?
To explore different types of business models available on the web and suggest a structure for evaluating them.
p.2
Disintermediation and Reintermediation
What is a significant example of disintermediation in the music industry?
Bands like Radiohead selling their albums directly to consumers, allowing purchasers to name their own price.
p.7
Business Models for E-commerce
What is the customer segment targeted by the business?
Businesses wanting to improve their returns from marketing.
p.4
Marketplace Channel Structures
What is a multichannel marketing strategy?
An approach that defines how different marketing channels should integrate and support each other.
p.11
Revenue Models in Online Business
What are the four main revenue options for online businesses?
The text does not specify the four main revenue options, but it mentions that site owners can develop models based on these options.
p.2
Disintermediation and Reintermediation
What is disintermediation?
The removal of intermediaries such as distributors or brokers that formerly linked a company to its customers.
p.7
Business Models for E-commerce
What are the key activities outlined in the business model?
Content creation, experience creation, service promotion, and sales maximization.
p.11
Revenue Models in Online Business
How do fee levels for advertising models depend on market conditions?
They depend on market competition and demand for advertising space.
p.9
Revenue Models in Online Business
What additional revenue generation options may manufacturers explore?
Selling advertising space or digital services.
p.3
Disintermediation and Reintermediation
What is disintermediation in the context of retail channels?
The process of bypassing intermediaries like wholesalers and retailers, allowing producers to sell directly to consumers.
p.8
Business Models for E-commerce
Why is it important for existing businesses to use the Internet according to Venkatram (2000)?
To build on current business models while experimenting with new ones.
p.2
Marketplace Channel Structures
What is the main distinction between traditional marketplaces and Internet-based markets?
Traditional marketplaces have a physical location, while Internet-based markets are virtual and have no physical presence.
p.4
Marketplace Channel Structures
What is a seller-controlled site?
The main home page of the company that is e-commerce enabled.
p.2
Marketplace Channel Structures
How has the Internet changed the relationship between companies and their channel partners?
The Internet allows companies to bypass some channel partners, altering traditional distribution strategies.
p.5
Role of Intermediaries and Influencers in E-commerce
What role do online intermediaries play in e-commerce?
They are potential partners to promote an online business.
p.11
Revenue Models in Online Business
What is eCPM?
Effective cost per thousand, which assesses the total charge to advertisers for each page or site.
p.9
Revenue Models in Online Business
What are some revenue generation options for online publishers?
Advertising and fees for usage of online services.
p.7
Business Models for E-commerce
What are the key resources required?
Content creation, development, and marketing.
p.3
Disintermediation and Reintermediation
What are some examples of new intermediaries in the insurance market?
MoneySupermarket.com and Confused.com in the UK, and Esurance.com and Insurance.com in the US.
p.13
Business Models for E-commerce
How can customer service impact a website's brand image?
If products are not dispatched correctly or promptly, it adversely affects customer service and brand image.
p.8
Revenue Models in Online Business
What is crucial for the success of Internet start-ups?
The viability of their business model and sources of revenue.
p.8
Marketplace Channel Structures
How can the book publisher, Amazon, and Yahoo! be categorized in terms of marketplace position?
The book publisher is the manufacturer, Amazon is a retailer, and Yahoo! is both a retailer and a marketplace intermediary.
p.7
Business Models for E-commerce
Who are the key partners in the business model?
Experts, marketing agencies, online publishers, industry influencers, and trade organizations.
p.4
Marketplace Channel Structures
What role do aggregators play in the marketplace?
They involve a group of purchasers combining to purchase multiple orders, reducing costs.
p.9
Revenue Models in Online Business
What are two main types of revenue models mentioned?
Direct sales from manufacturers or suppliers and sales through intermediaries.
p.5
Types of Online Commercial Arrangements
What is a brokered deal in e-commerce?
Achieved through online intermediaries offering auction and pure markets online.
p.11
Revenue Models in Online Business
Why is visitor engagement important for revenue generation?
Longer visitor stays increase page views, leading to more ad revenue opportunities.
What constitutes the cost structure?
Fixed costs and variable costs including salary, hosting, and advertising fees.
p.3
Disintermediation and Reintermediation
What should e-commerce managers do in response to reintermediation?
Ensure representation on relevant new intermediary sites, monitor competitor prices, and consider creating their own intermediary.
p.10
Revenue Models in Online Business
What is transaction fee revenue?
A fee charged for facilitating a transaction, as seen with eBay and PayPal.
p.13
Role of Intermediaries and Influencers in E-commerce
How did some start-ups like lastminute.com grow without heavy advertising?
They grew organically through favorable word of mouth and mentions in newspaper features.
p.6
Google Trends and Consumer Demand
What tools can companies use to assess demand for products in different countries?
Google Trends and Google Keyword Planner.
p.12
Assessing Online Business Sustainability
What traditional technique is often applied to assess the value of Internet start-ups?
Discounted cash flow techniques.
p.5
Types of Online Commercial Arrangements
What is an example of a successful auction platform?
eBay, which has achieved a turnover of several billion dollars.
p.12
Assessing Online Business Sustainability
What are the six criteria used to assess the success of UK Internet start-ups?
Concept, Innovation, Execution, Customer acquisition cost, Contribution margin, and Customer churn rate.
p.4
Marketplace Channel Structures
What are neutral sites in the context of e-commerce?
Independent evaluators that enable price and product comparison.
p.14
Business Models for E-commerce
What are the key characteristics required for strategic agility in a digital business?
Efficient information collection, effective strategy processes, research into customer value, prototype implementation, and result measurement.
p.1
Marketplace Channel Structures
What are aggregators in the context of online business?
They are price comparison sites that provide product, price, and service information, comparing competitors within a sector.
p.3
Disintermediation and Reintermediation
What is reintermediation?
The creation of new intermediaries that provide services such as supplier search and product evaluation.
p.9
Revenue Models in Online Business
What does the term 'fixed-price sale' refer to?
A straightforward sale of a product or service at a set price.
p.10
Revenue Models in Online Business
What is sponsorship in the context of online revenue models?
A company pays to advertise a specific section or channel of a site for a fixed fee.
p.10
Revenue Models in Online Business
What is subscription access in online business?
Access to content or services for a fixed period, often referred to as premium services.
p.6
Business Models for E-commerce
Why is it important for existing businesses to refine their business model?
To add new services and take advantage of new opportunities made possible by the Internet.
p.5
Types of Online Commercial Arrangements
What perspective can markets be analyzed from in e-commerce?
The type of commercial arrangement used to agree on a sale and price between the buyer and supplier.
p.5
Types of Online Commercial Arrangements
What unique service does priceline.com offer?
'Name Your Own Price™' buying service, allowing users to enter their desired price for travel services.
p.1
Search Engine Marketing and Affiliate Marketing
What is the significance of 'share of search'?
It indicates the audience share of Internet searches achieved by a particular audience in a specific market.
p.4
Search Engine Marketing and Affiliate Marketing
What are the three key aspects of navigation for competitive advantage online according to Evans and Wurster (1999)?
Reach, Richness, and Affiliation.
p.2
Marketplace Channel Structures
What role do intermediaries play in distribution channels?
Intermediaries such as wholesalers and retailers help link a company to its customers.
p.1
Revenue Models in Online Business
What revenue models do aggregators commonly use?
Affiliate revenues (CPA), pay-per-click advertising (CPC), and display advertising (CPM).
p.10
Revenue Models in Online Business
How is CPM advertising charged?
Advertisers are charged a fee based on the number of times ads are served to site visitors.
p.3
Disintermediation and Reintermediation
How has e-commerce changed the role of intermediaries?
Marketers can no longer rely solely on existing intermediaries and must create their own online intermediaries.
p.6
Business Models for E-commerce
What is the purpose of the Business Model Canvas?
To summarize strategy for online businesses.
p.14
Click Ecosystem and Customer Journeys
What does the 'click ecosystem' describe?
The customer journeys or flow of online visitors between search engines, media sites, and intermediaries to an organization and its competitors.
p.14
Types of Online Commercial Arrangements
What is the role of the Facebook platform API?
To enable data exchange between websites and applications, allowing integration of consumer Facebook interactions.
p.7
Business Models for E-commerce
What types of customer relationships are established?
Self-service, dedicated mentoring and consulting, and co-creation.
p.12
Assessing Online Business Sustainability
Why is customer retention crucial for new e-commerce companies?
High costs of customer acquisition make repeat purchases essential for long-term success.
p.5
Types of Online Commercial Arrangements
What are the two types of auctions mentioned?
Seller auction and buyer auction.
p.11
Revenue Models in Online Business
What is a benefit of using the Google AdSense publisher program?
It commonly ensures that ad inventory is fully utilized.
p.7
Revenue Models in Online Business
What are the revenue streams identified?
Annual subscriptions, individual product purchases, ad revenue, consulting, and licensed content revenue.
p.10
Revenue Models in Online Business
What is an example of a company that uses CPC advertising?
Google, through its Adsense program.
p.13
Business Models for E-commerce
What is the importance of generating favorable publicity for a company?
It helps create awareness within the target market.
p.6
Types of Online Commercial Arrangements
What is a portal in the context of online services?
A website that acts as a gateway to information and services on the Internet.
p.4
Marketplace Channel Structures
What are the three types of locations identified by Berryman et al. (1998) in marketplace analysis?
Seller-controlled sites, buyer-controlled sites, and neutral sites.
p.14
Marketplace Channel Structures
What is the significance of major online players like Facebook and Google in the marketplace?
They have developed their own online market ecosystems that enhance customer experience and extend reach through data exchange.
p.1
Google Trends and Consumer Demand
How can Google Trends data be useful for companies?
It helps predict levels of spending by analyzing search volumes over time.
p.12
Business Models for E-commerce
What does the 'Concept' criterion evaluate in a business model?
The strength of the business model, including revenue potential and customer value.
p.2
Marketplace Channel Structures
What are the two types of transactions illustrated in the marketplace channel structures?
Business-to-business (B2B) and business-to-consumer (B2C) transactions.
p.7
Business Models for E-commerce
What channels are used to deliver services?
Search marketing, email marketing, partner arrangements, social media marketing, and paid advertising.
p.9
Revenue Models in Online Business
What is one method of revenue generation for media owners?
Sales of syndicated content or services.
p.5
Types of Online Commercial Arrangements
What is barter in the context of online transactions?
A mechanism where buyers and sellers exchange goods without using money.
p.6
Role of Intermediaries and Influencers in E-commerce
What types of intermediaries did Sarkar et al. (1996) identify?
Directories, search engines, malls, virtual resellers, financial intermediaries, forums, and evaluators.
p.6
Business Models for E-commerce
What is an online business model?
A summary of how a company will generate profit, identifying its core product or service value proposition, target customers, and revenue projections.
p.14
Search Engine Marketing and Affiliate Marketing
How do search engines function in the online marketplace?
As a distribution system connecting searchers to different intermediary sites.
p.4
Marketplace Channel Structures
What is a buyer-controlled site?
Intermediaries set up for buyers to initiate market-making, such as procurement posting.
p.9
Revenue Models in Online Business
What has been the primary source of income for existing companies?
Sales of products or services.
p.14
Assessing Online Business Sustainability
What is the importance of identifying anomalies in the marketplace?
They may represent learnings or opportunities for the business.
p.1
Types of Online Commercial Arrangements
What role do superaffiliates play in e-retail markets?
They gain revenue from merchants they refer traffic to, accounting for a significant percentage of sales.
What does a channel chain illustrate?
Alternative customer journeys and multichannel behavior.
p.1
Business Models for E-commerce
Why are well-known brands in a good position to succeed online?
Because consumers often go directly to their sites through URLs, bookmarks, or searches.
p.1
Types of Online Commercial Arrangements
What is an affiliate in online marketing?
A company promoting a merchant typically through a commission-based arrangement.
p.10
Revenue Models in Online Business
What is affiliate revenue?
Commission-based revenue where a publisher earns a fee for promoting products, such as Amazon books.
p.11
Revenue Models in Online Business
What factors are important for site owners to maximize revenue?
Traffic levels, number and size of ad units, capacity to sell advertising, fee levels negotiated, and visitor engagement.
p.14
Business Models for E-commerce
What does strategic agility require for successful strategy development?
Efficient collection and evaluation of information, effective strategy generation, and rapid action on market anomalies.
p.1
Role of Intermediaries and Influencers in E-commerce
What types of online media and distribution partners should companies assess?
Mainstream news media sites, social networks, niche media sites, price comparison sites, and superaffiliates.
p.12
Business Models for E-commerce
What aspect of execution can lead to the failure of a start-up?
Insufficient promotion to attract visitors to the site.
p.3
Disintermediation and Reintermediation
What are the cost savings associated with disintermediation?
Producers can save 28% by bypassing wholesalers and 62% by bypassing both wholesalers and retailers.
p.9
Revenue Models in Online Business
What is a common revenue model based on sales?
Commission-based sales (affiliate, auction, marketplace).
p.10
Revenue Models in Online Business
How does CPC advertising differ from CPM?
CPC charges advertisers based on the number of clicks on their ads, not just impressions.
p.11
Revenue Models in Online Business
What does the capacity to sell advertising refer to?
The percentage of ad inventory sold in each category, which affects overall revenue.
p.2
Marketplace Channel Structures
What do marketplace channel structures describe?
The way a manufacturer or organization delivers products and services to its customers.
p.7
Business Models for E-commerce
What is the value proposition offered?
Help businesses grow value through improved cross-channel marketing communications.
p.12
Business Models for E-commerce
What does the 'Innovation' criterion assess in a business model?
The extent to which the business model is original or merely imitates existing models.
p.13
Search Engine Marketing and Affiliate Marketing
Why is promotion critical for start-up companies?
A critical volume of loyal, returning users is needed to repay the investment.
p.11
Revenue Models in Online Business
What is revenue per click (RPC) also known as?
Earnings per click (EPC).
p.9
Revenue Models in Online Business
What type of businesses can review the revenue options for publishers?
Price comparison sites and other types of businesses.
p.4
Disintermediation and Reintermediation
What is reintermediation?
The introduction of new intermediaries in the marketplace after disintermediation.
p.13
Assessing Online Business Sustainability
What are the key challenges faced by successful websites?
Performance, availability, and security issues can hinder fast access and service reliability.
p.10
Revenue Models in Online Business
What is pay-per-view access?
Payment for single access to a document, video, or music clip.
p.2
Marketplace Channel Structures
What is the significance of understanding different types of sites in e-commerce?
It helps managers position their organization to effectively communicate and sell to customers.
p.5
Types of Online Commercial Arrangements
What is a fixed-price sale?
An online catalogue with either static or dynamically updated prices.
p.3
Disintermediation and Reintermediation
What is countermediation?
The creation of a new intermediary by an established company, such as a comparison site or publisher.
p.13
Click Ecosystem and Customer Journeys
What role does traditional advertising play in reaching a mass market?
Traditional advertising is often required to clearly communicate the service to a wide audience.
p.4
Disintermediation and Reintermediation
What is disintermediation in the context of e-commerce?
The removal of intermediaries in the supply chain.
p.1
Role of Intermediaries and Influencers in E-commerce
What is the role of intermediaries and influencers in attracting visitors?
They successfully attract visitors via search or direct methods due to their mainstream brand recognition.
p.13
Revenue Models in Online Business
What factors are used to measure website traffic?
The number of visitors, pages visited, and transactions made.
p.13
Types of Online Commercial Arrangements
What was a significant issue faced by Boo.com?
Boo.com had a high burn rate due to an imbalance between promotion and site development costs.
p.13
Revenue Models in Online Business
What does 'burn rate' refer to in the context of dot-com companies?
The speed at which dot-coms spent investors' money.
p.10
Revenue Models in Online Business
What is digital rights management (DRM)?
Technologies used to protect the distribution of digital services or content.
p.6
Search Engine Marketing and Affiliate Marketing
What are 'spiders' or 'robots' used for in search engines?
To index registered sites automatically.
