Chapter 5 Advanced E-Commerce (Dr.Maha)

7/31/2019 Chapter 5 Advanced E-Commerce (Dr.Maha)

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Chapter 5

Strategy Formulation:Customer Interface

McGraw-Hill/Irwin


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5-3Chapter 5: Strategy Formulation:Customer Interface

Questions Answered in this Chapter: What are the seven design elements of the customer

interface? What determines the look-and-feel of the design?

What are the three content classifications? Why be concerned with community? What are the two ways in which websites can achieve

customization?

What types of communication can a firm maintain withits customer base? How does a firm connect with other businesses? What commerce features help websites perform

financial transactions?


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Introduction

Customer interface is the virtual representation of a firm's chosen value

proposition Seven design elements of customer interface

(7Cs) Context Content Community

Customization Communication Connection Commerce


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5-5Exhibit 5.1: The 7Cs of CustomerInterface

Context

Sites layout and design

Commerce

Sites capabilities toenable commercial transactions

Connection

Degree site is linked toother sites

CommunicationThe ways sites enable site-

to-user communication or two-way communication

Customization

Sites ability to self -tailor todifferent users or to allow users to personalize the site

Community

The ways sites enable user-to-user communication

Content

Text, pictures, sound, and video that webpages

contain


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5-6Exhibit 5.2: Fit and Reinforcement ofthe 7Cs

Context Content Community Customization Communication Connection Commerce

Business Model

Consistent Reinforcement

Individually Supporting Fit


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1-71-75-7What Determines the Look-and-Feelof the Design? First: Context

Context captures its aesthetics and functional look-and-feel Dimensions of Context

1. Function refers to the organization and accessibility of information Section Breakdown is the way the site is organized into

subcomponents Linking Structure enables users to move easily between sections Navigation Tools facilitate how the user moves through the site Speed is measured by the time needed to display a page on a

users screen Reliability how often a site experiences downtime Platform Independence is measured by how well the website can

run on multiple platforms, including old versions of Web browsers Media Accessibility the ability of a site to download to various

media platforms


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First: Context (contd)

2. Aesthetics refers to the visual characteristics of a site Color Scheme refers to the colors used throughout the site Visual Themes help to tell the story portrayed across the site

Context Classifications

Aesthetically Dominant: Emphasis is on the look-and-feel of the site. This type of site makes heavy use of visual elements

Functionally Dominant: Emphasis is on the display of textualinformation.

This type of site limits the visual design to a minimum

Integrated: Balance of form and function. These sites have a clear and appealing theme that support the underlying

graphics


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1-91-95-9Exhibit 5.3: Form vs. Function-The Design Context Frontier

Integrated

AestheticallyDominant

HighLow

High

Low

FUNCTION

FunctionallyDominant

Frontier isgradually moving

outward astechnologyadvances


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1-101-105-10Exhibit 5.4: Aesthetically Dominantexample KMGI.com


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1-111-115-11Exhibit 5-5: Functional Dominant Brint.com


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1-121-125-12Exhibit 5-6: Integrated Example Patagonia.com


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1-131-135-13Second: ContentDeciding What Information to Include

The Content of a website refers to all the digital information on the site

Evaluating Content Offering Mix

Content of a site can include products, information, services, or a mix of these

three Appeal Mix Company's value proposition is projected in the promotional and

communications messages of a site Multimedia Mix

Refers to the choices of media including text, audio, image, video and graphics Timeliness Mix

information presented on a site is time-sensitive Current Content

Highly time-sensitive information with very short shelf life Reference Content

less time-sensitive information with longer shelf life


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1-141-145-14Exhibit 5-7: A Framework toUnderstand Content Classifications

Superstore

Category

Killer

SpecialtyStore

NUMBER OFPRODUCT

CATEGORIES

Multiple

Single

Narrow Broad

DEPTH OF PRODUCT LINE


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Second: Content (contd) Content Classifications

Product Dominant: Encompasses store sites thatprimarily sell physical goods

Superstore One-stop shop offering a wide range of goods in multiple product

categories

Category Killer Sites offering a comprehensive selection of products and services

but only within a specific category Specialty Store

Stores offering exceptional quality and exclusivity in single or multiple categories of products

Information Dominant: Encompasses store sites thatfocus heavily on information

Service Dominant: Encompasses store sites that focuson the services offered, often for a fee


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1-161-165-16Exhibit 5-8: Category Killer Example PetSmart


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1-171-175-17Exhibit 5-9: Specialty Store Frontgate.com


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1-181-185-18Exhibit 5-10: Information-DominantExample Fast Company

h b


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1-191-195-19Exhibit 5-11: Service DominantExample PlasticsNet


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Third: Community

Community includes a feeling of membership ina group along with a strong sense of involvement and shared common interests

Five components determine the shape of onlinecommunities: Characteristics Member Motivation

Member Participation Member Benefits Interaction Tools


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Characteristics

The more evolved the community the more likelyit is to have these six characteristics Cohesion - the community develops a group identity

Effectiveness - the group has impact on members lives

Help - members feel comfortable asking for and receiving help fromother members

Relationships - interaction between individuals leads tofriendships

Language - members develop a specialized language and/or abbreviations with unique meaning within the community

Self -regulation - the group sets rules for its own interaction anddevelops a system for policing itself

E hibi 5 12 C i i El


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1-221-225-22Exhibit 5-12: Communities Elements,Types & Benefits

Member Benefits

Need fulfillment Inclusion Mutual influence

Shared experiences/ information

Why members are

motivated to join thecommunity

Community Characteristics

How members

participate in thecommunity

Cohesion Effectiveness Help Relationships Language Self-regulation

Interaction Tools


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Community Classifications

Nonexistant - sites that have no community offer noway for users to interact with one another, on either aone-to-one basis or one-to-many basis

Limited - sites that offer features such as reading and posting information, stories, or opinions

Strong - sites that offer interactive community functionssuch as chat rooms and message boards

E hibi 5 13 Li i d C i


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1-241-245-24Exhibit 5-13: Limited CommunityEx. Gillette Womens Cancer Connection

E hibi 5 14 S C i


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1-251-255-25Exhibit 5-14: Strong CommunityExample Bolt.com

F th C t i ti


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1-261-265-26Fourth: CustomizationCreating an Individualized Website

refers to a site's ability to tailor itself to eachuser or to be tailored by the user

Dimensions of Customization

Personalization: user initiates & manages the customization process

Tailoring:

Software dynamically publishes unique versions of the site to address specific user's interests, habits &needs more appropriately

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Fourth: Customization (Contd)

Commonly used customization features: E-mail accounts

Users can send and receive e-mail from the site, using a free,unique e-mail address

Content and layout configuration Users can design their own homepage, within limits, by choosing

background colors, layout design, and content sources Storage

Users can store e-mail, URLs, favorite content, or items they

want to buy Agents

Computer programs can perform simple tasks upon request,such as notifying a user via e-mail when a product is in stock

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5 28E hibit 5 15 P li ti b U


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1-281-285-28Exhibit 5-15: Personalization by UserExample MyLook.com

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5 29E hibit 5 16 T il i g E l


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1-291-295-29Exhibit 5-16: Tailoring Example Amazon Homepage for Two Users

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5 30Fifth: Comm nication


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1-301-305-30Fifth: CommunicationKeeping in Touch with Users

refers to the dialogue between a site & its users Dimensions of Communication

Broadcast One-way information exchange from organization to user. can be in the form of mass mailing, FAQ, e-mail newsletters,

content-update reminders and broadcast events

Interactive Two-way communication between the organization and a

user. can be in the form of e-commerce dialogue, customer service

and user input

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Fifth: Communication

Communication Archetypes One-to-One, Non-Responding User User receives personalized messages to address specific

interests or needs without a need to respond One-to-One, Responding User

User responds to personalized messages sent by the site

One-to-Many, Non-Responding User Site messages are announcements that users receive

without needing to respond One-to-Many, Responding User

Site messages are invitations to users to submit their comments and responses

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5 32Exhibit 5 17: One to One Live


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1-321-325-32Exhibit 5-17: One-to-One, LiveInteraction Example LivePerson.com

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1-331-335-33Sixth: ConnectionLinking with Other Websites

is the degree to which a given site is able to linkto other sites Dimensions of Connection

Outside Links Links that take the user completely outside the home site and

into a third-party site Framed Links

Links that take the user to a third-party site that open in thesame browser window and that are framed by the home sitein some way

Pop-Up Windows Links that open up the new site in another browser windowwhile the original website stays in the background

Outsourced Content Content that comes from an outside supplier

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5-34Exhibit 5 18: Outsourced Content


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1 341 345 34Exhibit 5-18: Outsourced ContentExample Real.com

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Sixth: Connections Classifications

Destination Site Provides almost exclusively site-generated

content with very few links to other sites

Hub Site Provides a combination of site-generated content

and selective links to sites of related interests

Portal Site Consists almost exclusively of links to a large

number of other sites

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5-36Exhibit 5 19: Destination Site


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1 361 365 36Exhibit 5-19: Destination Site NYTimes.com

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5-37Exhibit 5 20: Hub Example Industry


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1 371 375 37Exhibit 5-20: Hub Example IndustryCentral

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5-38Exhibit 5 21: Portal Site Example


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Exhibit 5-21: Portal Site Example Yahoo

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5-39Seventh: Commerce


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Seventh: CommerceEnabling Financial Transactions

refers to the sale of information, products or services on the site.

Dimensions of Commerce Functional tools that are the commerce-enabling

features of a website

Registration Orders Through Affiliates

Shopping Cart Configuration Technology

Security Order Tracking

Credit-Card Approval Delivery Options

One-Click Shopping

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Seventh: Commerce (contd)

Commerce Classifications: Low

These websites have the ability to process transactions, butwith few of the tools that enable e-commerce

Medium: Some websites have no need for all the commerce activities

and contain financial transactions as a necessary feature butnot as their main purpose.

High These websites are fully equipped with all or almost all the

functional tools that enable e-commerce.

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Exhibit 5-22: Map of 7Cs Framework

Context AestheticallydominantFunctionally

dominant Integrated

Content Product-dominant Information-dominant Service- dominant

Community Nonexistent Limited Strong

Customization Generic Moderatelycustomized Highly customized

CommunicationOne-to-many,nonrespondi

ng user

One-to-many,

responding

user

One-to-one,nonrespondi

ng user

One-to-one,responding

user

Connection Destination Hub Portal

Commerce Low Medium High

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5-42Exhibit 5-23: Foot Locker


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Exhibit 5-23: Foot Locker(www.footlocker.com )


dominant Integrated

Content Product-dominant Information-dominant Service-dominant

Community Limited Strong

Customization Generic Moderatelycustomized Highly customized

CommunicationOne-to-many,

nonresponding

user

One-to-many,responding

user

One-to-one,nonresponding

user

One-to-one,responding user



Nonexistent

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5-43Exhibit 5 24: Cool Running


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Exhibit 5-24: Cool Running(www.coolrunning.com )


dominant Integrated

Content Product-dominantInformation-

dominant Service-dominant


Customization Generic Moderatelycustomized Highl

CommunicationOne-to-many,responding

user


user



Information-dominant

Functionallydominant

Strong

Highly Customized

One-to-one

Responding user

Hub

Low

One-to-manyNonresponding

user

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5-44Exhibit 5-25: MarketWatch com


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Exhibit 5-25: MarketWatch.com(www.cbs.marketwatch.com )

Context Aestheticallydominant Integrated

Content Product-dominant Service-dominant


Customization Generic Highly customized

Communication

One-to-many,

respondinguser


user

One-to-one,responding user



FunctionallyDominant

Information-dominant

Strong

Moderatelycustomized

Strong

Low

One-to-manyNonresponding

user

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5-45Exhibit 5-26: CBS MarketWatch com


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Exhibit 5 26: CBS MarketWatch.comHomepage

Chapter 5 Advanced E-Commerce (Dr.Maha)

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