Topic Nine - Online Auctions

Q1: eBay is one of the only major Internet "pure plays" to consistently make a profit from its inception. What is eBay's business model? Why has it been so successful?

In simple terms, Ebay is an auction broker which allows buyers and sellers an online forum in which to conduct transactions.

Ebay has been so successful because of

-the large media coverage

-extensive amount of users

-it’s cheap, easy and allows new, used or even old broken products to be traded

-buyers and sellers can trade in any parts of the world

-relatively simple layout used to minimise confusion

Q2: Other major web sites, like Amazon.com and Yahoo!, have entered the auction marketplace with far less success than eBay. How has eBay been able to maintain its dominant position?

Ebay was able to dominate the market because it was largely used and recognised before any other competition arouse. It is with this dominance that Ebay was able to tackle competition by having enough status to keep their prices lower yet their standards high. This benefits both the buyer and seller as the buyer wants the best quality product for the lowest money, yet the seller requires a high demand for their products. With the use of online auctioning both the buyer and the seller are satisfied because the buyer will only pay for what they think the product is worth therefore once an auction has begun price continues to rise (benefiting the seller) yet remain relatively low compared to average retail prices (benefitting the buyer).

Q3: What method does eBay use to reduce the potential for fraud among traders on its site? What kinds of fraud, if any, are eBay users most susceptible?

The best way Ebay can prevent fraudulent acts is with the use of Paypal for their payment system in which personal details are entered, passwords are also a requirement of using ebay. Other than that tutorials and other information are provided so that fraud is minimised. Plus it is well known that personal details should not be given over the internet to strangers. Ebay users need to watch out for false bids which unnecessarily raise the price of a product to get the most money out of a buyer.

Q4: eBay makes every effort to conceptualize its users as a community (as opposed to, say "customers" or "clients"). What is the purpose of this conceptual twist and does eBay gain something by doing it?

Loyalty and trust are important here. There is huge concern with internet trading, therefore trust and loyalty need to be established before buyers and sellers begin their transactions to know that they won’t be ripped off or come into any issues.

Q5: eBay has long been a marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?

The best way to answer this is a simple response in which most organisations are looking towards the internet for future sales. The internet promotes shops and businesses in a cheap and easy way. They also allow for older products to be traded and sold at cheaper prices which allows for more sales which they may not be subjected to in regular stores.

Topic Eight

There was no topic this week as we had to complete the mid-semester exam. I received 22/40 as a result of my exam which I was pretty disappointed in. Truth be told the reason for such a low score was the fact that I didn't really attempt the short answer questions which were worth 5marks each. I'm relieved about having no end of semester exam for this class also for the fact that I am almost finished my assignment. You would think after 8 weeks the online aspect of this class would get easier for me, but its not - I still manage to get behind in the work and often find some of the content hard to get my head around.

Topic Seven - Digital Automata

1) Check this link to my ‘intelligent’ cybertwin which I also mentioned in the Powerpoint. You may like to create your own cybertwin as well. The more you 'train' your twin, the better the responses will be. While it is just a fun exercise, Think of the opportunities. Imagine if we had a cybertwin that could answer your questions about the course. Or perhaps a shopping assistant?

I created a cyber twin; the link is mycybertwin.com/naomi8246. I am currently still teaching it with the use of the classroom lessons.

Even though I do believe this sort of technology will become a way of the future, I don’t believe it could ever help with questions on the course or shopping as it requires on information input and would already be known by the user. I don’t believe technology should completely replace human interaction and information based conversations.

2) Write a one paragraph describing the Turing test and another paragraph describing an argument against the Turing Test, known as the about the Chinese room.

As defined in the PowerPoint, the Turing test is a proposal for a test of a machine's capability to demonstrate thought. But what does this mean? Basically in the 1950’s Alan Turing developed a theory of the concept that a computer or machine device can act as human. In order to test this theory a human is meant to have a conversation with the machine and if they cannot depict whether the device is human or machine than it passes the test.

The Chinese room is an argument created in the 1980s by John Stearle, which debates the turning tests reliability and actual rate of success. This is because Stearle believes that the test can be manipulated to read symbols which means that the system could not actually think like a real human.

* Question 3 was not answered this week as I wasn't totally sure of the correct answer and I believe customer service can be effective and not effective both in person and online. I didn't think I had enough information to answer the question fully and coherently.

Source:

http://en.wikipedia.org/wiki/Turing_test#The_Chinese_room.

Topic Six - Digital Markets

Question 1

a) What experiences have you had with shopping online?

b) Describe a good experience.

c) What did you like about the online store you used?

d) Describe a bad experience.

Questions A through to D are irrelevant to myself as I have never purchased anything online, nor has anyone in my immediate family.

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

By just viewing some online stores I have noticed that navigation is often difficult as well as getting the most information available to make the best purchase choices.

f) What features make an online store more appealing?

Online stores are appealing due to the freedom of being able to browse products online without having to leave the house and be bothered by busy stores or pushy shop assistants, different pay options, its quick, easy and cheap as well as extensive information such as product information, reviews and buyer opinions.

g) What features make an online store less appealing?

Online shopping can appeared less appealing due to lack of information, navigation issues, time spent on postage and the costs therefore involved, problems with bandwidth connections and confusion when trying to compare similar products.

h) Should we expect to see the prices of goods and services rise or fall due to the migration of consumers online?
I would assume that prices would rise with the introduction of online customers and for the fact that sellers will continue to use online auction based sites in order to sell to the consumer willing to pay the highest prices.

Question 2

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

I believe that online prices will always have a narrow effect because it is in the consumer’s best interest to search and compare when deciding on purchases. Therefore internet distributors of similar companies will always keep their prices low close to equal.

b) The importance of brand names will decrease.

I don’t believe brand names will decrease because they are important to distinguish between companies and their own guaranteed qualities. However due to the increase in internet shopping, consumers may be less concerned about a particular brand name as they are just looking for particular services that the product can provide such as 3G network, wireless and Bluetooth on a mobile phone, rather than just relying on the Nokia brand. Without contradicting myself I do acknowledge that the internet will provide a massive rival for conventional stores, however I do believe that for the time being and the near future, that brand names will still play a large part in the recognition on shopping for certain products.

c) Price competition will make all products cheaper.

Yes, competition of the same or similar product will usually make prices cheaper.

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

People generally do a large search before purchasing anything on the internet which allows customers to get a great knowledge about the product and the companies involved. It is this knowledge which companies may take for granted, as mega-sites like Amazon.com may in fact overlook smaller sites which can sometimes offer cheaper prices. All sites have to start off small therefore I think it would take a very long time for domination to occur as competition is increased every day.

e) How do you think the balance of power between buyer’s and seller’s will change?

Since buyers are able to search and gain more information about products and comparative prices, it is the buyers who will essentially gain power. Sellers will always have less power as they rely on the buyers.

f) Prices are clustered online.

- I don’t really understand this question, but I think all prices whether online or in conventional stores, need to reflect the quality of the product and the services it displays.

Question 3

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

Content and products, wireless advertising, games and entertainment

b) Which of these services do you use?

Contents and products, wireless advertising

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

Nothing

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

I prefer to make transactions in person rather than an online basis.

e) What is your opinion of wireless advertising/mobile marketing?
Advertising is essential to understand the product, promotion and for the companies to gain profits.Mobile advertising is usually in the form of sms promotions which are often annoying if you are not interested in the content, but can also be essential if you do require certain information straightaway, such as mobile phone access to emails.

Topic Five - Business Models

1. Describe the features of each of these business models, on your blog page, giving an example of each.

Brokerage:“Brokers are market-makers: they bring buyers and sellers together and facilitate transactions.”
eBay is an Auction Broker.

Advertising: Traditionally advertisements were used on mass media sources such as newspapers, radio and television, however advertising has now moved to online. Advertisements used online are usually in the form of banners and links. Google is a form of advertising as an online forum because it is a highly trafficked website displaying advertisements in conjunction with the relevant information searched.

Infomediary: This is when information is exchanged from companies and consumers. The companies supply the information and the consumers are looking for the information in order to understand the market, producers and products.

Merchant: The merchant is a wholesaler/retailer of a products and services. Manufacturers are not usually involved in this process as the stock is marketed differently due to the different form of selling and marketing techniques. Amazon is a form of internet merchant.

Manufacturer (Direct): The direct source that creates a product or service and after producing it they reach buyers directly via distribution channels. Dell Computers.

Affiliate: The model provides purchase opportunity wherever people may be surfing by offering financial incentives such as percentage from profit/revenue, to affiliate partner sites. Examples: Barnes and Noble.

Community: This is a media tool for free social networking, telephone, email and email. This is the use of the internet in a regular and emotional basis. As these websites are free to use, the ower of the website can only generate profits with the use of advertising. Examples of addicting social networking and regularly used websites are facebook, Wikipedia and twitter.

Subscription: Subscription is used to charge users on a period of time spent on a site rather than the actual usage. Netflix uses subscriptions.

Utility: This is the opposite of subscription, in which the usage is charged, such a “pay as you go” approach. An example of this approach is Slashdot.

2. What is the business model for TWITTER and how is it raising revenue?

Twitter has a high rate of traffic therefore they are able to introduce advertising, their site is used for social network therefore creating a sense of emotion and loyalty of subscription and can one day target all the business models. Revenue is raised due to the advertisements and large range of media coverage.

3.Mobile phone use per 100 populations - Australia, USA, China, India and UAE:
Unite Arab Emirates (UAE) 208.65

Australia 104.96

USA 86.79

China 47.95

India 29.36

4. Internet use per 100 populations - Australia, USA, China, India and UAE:

USA 74

Australia 71.98

Unite Arab Emirates (UAE) 65.15

China 22.28

India 4.38

My thoughts so far

I have been having difficulty understand the business models table in topic five. It is this reason why I would much prefer standard lectures, as it is difficult to get all information from the power points to coincide with the tute work. I think the power points could also benefit us more if there was more information, and detailed rather than brief points or unanswered questions. I know that we are suppose to learn independently in this class however it is a challenge for me sometimes especially since I don't know if I am on the right track or not.

Topic Four Questions - Web Analytics

Questions

I have one of my Google Analytics pages accessible for you. Go to www.google.com/analytics/ and logon using the email address

ewiki2@gmail.com password ballarat. This is a read only view (I hope) of one of Foliosapces. At the top right where it says My Analytics Accounts select Foliospaces.com (the other one is not currently active). Then click on view report and answer the following questions:-

1) Looking at the site useage, 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?
Visits display the amount of times someone has used the website.

Page views are the amount of times someone has viewed that particular page of the website.

Pages/visits depicts the average amount of page views per visit were made.

The bounce rate shows the percentage number of page views compared to overall views; this is determined by the highest peaks of views daily.

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 are of traffic are, direct traffic, referring sites and search engines. Direct traffic is creating the most traffic at the moment at 42.33%.

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

Internet Explorer was the most popular web browser used initiating 1,166 visits and 43.61% of all new visits.

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

Visitors from 58 countries viewed Foliospaces creating 2,674 visits. The top four countries were the United States (1,109 visits), Australia (764 visits), Spain (436visits) and the United Kingdom (59 visits).

5) Having clicked every possible link on my analytics, make a few comments on (a) What you can track, (b) What you can track over time and (c) What you can’t track.

6) What do the following terms mean? These are just a few, you may like to add some more and perhaps include them on the Moodle glossary.

high bounce rate - The percentage of visits where the visitor can enter and exit the same page without visiting any other pages on the site in between.

key words – key words are common words used

Average Page Depth - Page Depth is the average number of page views a visitor consumes before ending their session. It is calculated by dividing total number of page views by total number of sessions

click through rate – is a way of measuring the success of an online advertising campaign.

click- "refers to a single instance of a user following a hyperlink from one page in a site to another"

Cookie- is a text file stored as plain text on a user's computer by a web browser.

Impression - An impression is each time an advertisement loads on a user's screen. Anytime you see a banner, that is an impression.

Hyperlink- reference to a document that the reader can directly follow, or that is followed automatically. The reference points to a whole document or to a specific element within a document.

Navigation- reading and controlling changes and navigation from one place to another.

Pageview - A request for a file whose type which is defined as a page in log analysis.

Session - a session is when a user is using a website for 30minutes or less. The session will end if 30minutes has passed or if the user visits a new website before the 30minutes has passed.

Unique Visitors (or Absolute Unique Visitors) - The uniquely identified client generating requests on the web server (log analysis) or viewing pages (page tagging) within a defined time period (i.e. day, week or month). A Unique Visitor counts once within the timescale.

URL- the address of the webpage on the world wide web (WWW)

Visitor – A visitor usually makes multiple visits to the web server or viewing pages.

Visitor Session- Average amount of time that visitors spend on the site each time they visit.

Comparison shopping- allows individuals to see different lists of prices for specific products.

Source:

Wikipedia

Topic Three Questions - Digital Design

Topic 3

1) This week we are looking at Digital Design. Look at the Powerpoint presentation and explore some of the links. I recommend spending a good deal of time looking at 'Web Pages That Suck'

2) Listen to the podcast or read the transcript Digital Design on the Digital Enterprise page.

Questions

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

Web design is so important because an organisation requires a website that allows customers to keep up to date with their knowledge about the organisation, as well as being able to access and purchase goods online. Due to the large portion using the internet now a-days it is essential for all organisations to use websites in order to maximise their exposure and increase positive reputation.

Therefore the websites require a certain level of formalities in order to increase customer satisfaction, for example, the design must be attractive – yet not over powering, and the information depicted must be descriptive – yet customer friendly. This is why websites are difficult to accomplish successfully. All customers are different and require alternative ranges of information due to why they are initially visiting the website.

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.

Loosely defined, presence is the impressive personal appearance or bearing of something present (Wilkes & Krebs 1991). Presence is definitely the appearance of something; however it should also be described in relation to the reaction to the appearance, as it could be either positive or negative. However the presence of the website does not only depend on the website, other contributors can be with the use of social networking, email, and blogs as well as press received (Demopoulos, 2006-2008).

Organisations need to be concerned and aware of their online presence because it is the way in which most customers will view and judge their goods and services. If there is not enough information, the website is not clear and easily accessible or if the site is not visually pleasing then customers will have a negative opinion of the organisation. Therefore website design is crucial for a successful online business – especially due to the increased amount of competition which can be sourced internationally and domestically due to internet access.

Organisations retailing in the physical world, have competition, however it is not as extensive as online competition. This is because customers who visit physical organisations are usually loyal customers who enjoy the quality of the organisation rather than the added convenience applied to websites. Organisations in the physical world also allow customers to have a face to face relationship to ease any queries and concerns which is not readily available when working online.

Source:

Demopoulos, T. (2006-2008) Effective Internet Presence Retrieved April 11 2010, from: http://www.effectiveinternetpresence.com/

Wilkes, G.A., & Krebs, W.A. (1991) The Collins Concise Dictionary. 2nd edition Australia: Collins, A division of HarperCollinsPublishers PTY LTD

3. Write three paragraphs to briefly describe the things that Real Estate Agents can best accomplish through (1) their web sites (2) Mass media advertising (3) Personal contact

(1) By using websites Real estate agents can allow customers to depict and receive as much information about the organisation, their values, services and products as required. This user face allows output information at any time possible, which allows for maximum exposure at a minimum cost for the organisation. This in turn cuts out the middle man, until the customer decides if the organisation and their products are suitable for a possible transaction.

(2) Mass media is an outlet for all possible customers to get information about the current real estate opportunities. Mass media comes in three forms, print, electronic and new age media (Buzzle.com 2010). Print media is a important resource to use for people who chose to browse through the possibilities of real estate without access to the internet. It is with this option that more customers are reached, maximising the level of exposure. Electronic media is also used to gain recognition due to real estate links to news coverage which often displays upcoming estates which are cost effective and well developed. Finally new-age media is used in the form of the internet to have display an online option of browsing through the organisations goals, products, services and all other necessary information about the company.

(3) Personal contact increases the sense of trust between customer and estate agent in which an honest transaction will be made. The agent is able to influence and convince the customers that the house is valuable purchase which is future maybe a profitable asset. Also when discussing the property, the agent is able to prove the positive aspects of the house, knowledge about the history of the house and area and any other queries are able to be resolved easily and promptly.

Source:

Buzzle.com (2010) Different types of mass media. Retrieved April 11 2010, from: http://www.buzzle.com/articles/different-types-of-mass-media.html

Topic Two Questions - Navigating the web

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 (Google - the digital enterprise).

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

1. People need to understand search and search engines, that they are infact a large database. However it is essential to realise that all databases are only a portion of the actual information available.

2. Understanding the collection methods of the search engine – a database of URLs, images and keywords.

3. The search protocol is necessary to understand in order to get relevant and precise information. This is with the use of normal words such as asking the search engine questions and/or using key words. It is these structures which allow accuracy when searching.

4. The ranking algorithm links search results in a ranking format to acquire the most important information on the first page searched.

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.

The Marissa Mayer interview was a lot different than I expected, her humour and use of analogies eased the formalities of the interview. This helped when trying to understand her opinion of the technologies used and future possibilities of growth in the industry. Marissa discussed many business based points which were very interesting and useful for other businesses as well as other significant points of general interest.

I found it interesting that Google uses small groups rather than large, which allows the recognition that Google really does care about their employees’ satisfaction and productivity. This is apparent with the small groups because employees’ voices are heard creating empowerment and ease in decision making.

Advertising was also interesting to me because Google makes a point of differentiating itself from other businesses by focusing on engineering rather than sales and/or marketing, however they choose to gain their revenue by using advertisements alongside their searches rather than charging the consumers for usage. By not charging the consumers they gain higher profits and allow for higher competition due to the advertisements being linked to the most effective search.

What I found hard to come to grips with was the plans for ‘Google latitude’ which was described as a form of GPS on social networking websites. I agreed with Charlie Rose in the notion of privacy. I understand Marissa saying that it depends on the user with what information is accessible, but when does it cross the line? I don’t believe that it’s safe to have access to information of someone’s location at all time, especially with the younger generations using the internet all the time and falling victim to internet predators.

Finally it is hard to believe that Google possesses only a “few” skilled interviewers and that they hire employees generally based on the interview and references. I thought a high profile organisation like Google would use much more technical ways of finding the most efficient employees rather than interview scores which can be influenced by a skilled interviewee.

Part 2 - History of the Internet

I have an expectation that you do some of your own research into the history of the Internet. The World Wide Web (WWW) is just one part of the Internet, but a very significant part. The Internet has been used for a long time now. When I first started working at 16, I was employed by Elders Smith Goldsborough Mort in Adelaide, (now Elders Ltd). We have telex machines that were used to send invoicing data and other information to head office. Elders had a mainframe computer called FRED (I only remember it meaning frigging ridiculous electronic machine). Fred had its own air conditioned room, and a team of operators. It probably wasn't as powerful as a sub-notebook today. Do you use Outlook express or another 'mail client' to access your email at home? Or you may use Internet Relay Chat? Or a news reader? This was very common just a few years ago, but a lot of these functions are now integrated into the world wide web (www). It is important to realise the Internet is much more than the WWW although many people tend to think they are the same thing. The WWW uses the Internet.

2) Please watch the Bill Joy video, and it will give you a good background to the Internet and particularly to the emergence of the World WIde Web.

From the video - please answer (on your blog page) -

a) So what are the 6 webs?

the here, near, far, weird, B2B, and D2D (device to device) Webs

b) Could there be more?

I think the 6webs will remain the same, due to the current vast variety.

c) What does it mean for business?

This means businesses must remain constant and innovative in order to adapt to changes.

Topic One Questions - Introduction to ebusiness and getting started online

Use the Powerpoint presentation but also look for further and deeper insight by using online resources to research your answers.

1) I1) Internet risks – give examples of four things that can go wrong with a transactional site?
-you wont recieve the goods

-over charging

-paranoia with pay pal and credit cards especially when travelling overseas

- goods maybe broken or faulty

2) Write down a definition for each:

a) E-commerce: E-commerce is the use of conducting business transitions over the internet some of these transactions consist of buying and selling services and products, marketing and transferring funds. E- commerce can be conducted between a business to business and/or business to customer interface.

b) E-business: E-businesses is becoming essential as they are businesses conducted online used to improve communication with workers and steakholders. Not only is communication improved but also the awareness of the organisation and their productivity and efficiency.

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

Buy side: Transactions made by organisations to gain goods and/or services from its suppliers

Sell side: Transactions used for organisations to sell products to customers.

4) Describe the different types of eBusiness

There are four different types of eBusiness, those are:

1.(B2B) When 2 businesses or firms create a transaction in which one firm was a producer and the other a supplier.

2. (B2C) One party is a firm and the other a customer. The firm can deliver goods and survey the customer whilst the customer can inquire and/or purchase online.

3.(INTRA B COMMERCE) The transactions and interactions between 2 people or departments of the organisation.

4.(C TO C COMMERCE) Both parties are involved with customers and buy and sell goods where no markets are available.

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

I believe mobile phones have the highest penetration rate out of all forms of technology.

Mobile phones are used by all sorts of people aging from children to senior citizens; it is this popularity that demands our constant use and attention in our everyday lives. Mobiles are used for social communication by most teenagers, business, home use and emergencies creating a friendly interface for consumers. It is with the use of variety in manufacturing that has become increasingly useful due to current applications adapted to the standard phones previously used. Phones are now able to withstand internet, ringtones, calls, messages, photos, videos and games to say the least which proves their adaptability and efficiency.

Even though the internet is a widely used communicational tool, it is the mobile phone which is used more due to its ease in transportation and the use of various applications.

Source: Judith Earl (2009) The popularity of mobile phones. Retrieved 16 March 2010 from http://www.buzzle.com/editorials/2-14-2006-88841.asp

6) List::Four drivers to adoption of sell-side e-commerce by business.

-Increase market and customer awareness

-Increases profits

-Reduces the need for extensive customer service – information is readily available

- Broader range of products and services to adapt to demand levels

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

-Competition from other suppliers

-Set up and running costs

-Reliability of product and services

-Lack of knowledge of both organisations and customers

8) How might a restaurant in Sturt Street Ballarat benefit from an online presence?

To many people Ballarat is a small town; therefore the introduction of online involvement would increase popularity and awareness of a restaurant on Sturt Street. This could increase profits as tourists are able to search restaurants in the area. The restaurant could also post valuable information such as direct location, the menu and reviews, which should also maintain customer value and popularity.

9) What are some examples of Digital information??

Internet, Web-pages, Mobile phones, Television, Blogs, Videos, Podcasts

10) What is the semantic web? Are we there yet?

From what I gathered the semantic web, is the introduction of the internet being run solely by computers without human involvement. This notion of computer to computer interaction may be possible however it will still take many years to perfect. I do not believe we are at that advanced point yet, even though there are many things computers should be able to do by themselves like simple updates, I do believe that human input is still quite necessary.

References:

Judith Earl (2009) The popularity of mobile phones. Retrieved 16 March 2010 fromhttp://www.buzzle.com/editorials/2-14-2006-88841.asp

Wikipedia

Class powerpoint