ecom quiz 4 essay

7/29/2019 Ecom Quiz 4 Essay

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Charisma Mae Ayson Essay

Quiz# 4

1. What are three categories of customer online behavior? Discuss each. (10 points)

Distant customers

These customers like to keep to themselves and may act indifferent. They are afraid of

intimacy, dependence and unpredictability. Generally they feel more at ease with facts or numbers

than with other people. Most distant customers are timid, impersonal, reserved and silent. In their

eyes social people are annoying, while dominant people are irrational and dictatorial. Customers who

are aloof distrust sales people and therefore keep their distance. They see sales people as intruders

and try to run away from the sales process.

Dominant customers

Dominant customers can approach you with a bit of a hostile, even aggressive, attitude. They

are assertive, competitive and always want to win. This type of people is driven by status and success

and is generally very ambitious. Insensitive as they are, some dominant people are not afraid to use a

bit of manipulation to achieve their goals. Most of them are suspicious by nature, which leads them to

be independent and individualistic. This type of customer loves active sales people and a good mental

spar. Remain professional and stick to facts, even when the customer seems to act by instinct. Try to

be moderately dominant, without making it a cockfight. They can be very direct and in-your-face.

Social customers

Social customers are friendly This also means they have much need for affection, acceptance,

approval and understanding from others. They are docile, flexible and easygoing by nature. Their

friendliness and cordiality are paired with a genuine interest for others. Still, they can also feel

insecure from time to time, therefore being vulnerable to manipulation and exploitation. Social

people are afraid of loneliness and dont like to be rejected. They will go out of their way to prevent

or avoid conflicts and dont like competition. In general these customers need your help, but dont

want to be patronized. They require more care, love and attention than other customers.

2. Discuss the stages of Customer Relationship Life Cycle. On what ways can you increase thecommitment of a customer? (10 points)


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One-to-one marketing and usage-based segmentation value

Strengthen companies relationships with customers

Good customer experiences

Create intense loyalty feeling

Typical five-stage model of customer loyalty

First four stages show increase in relationship intensityFifth stage (separation)

Decline occurs, relationship terminates

Touchpoints

Online and offline customer contact points

Touchpoint consistency

Goal of providing similar levels and quality of service at all touchpoints

Characteristics of the five stages

Awareness

Customers recognize company name, product

Exploration

Customers learn more about company, productsFamiliarity

Customers have completed several transactions

Customers aware of returns and credits policies

Customers aware of pricing flexibility

Characteristics of the five stages

Commitment

Customer experiences highly satisfactory encounters

Customer develops fierce loyalty or strong preference

Separation

Conditions that made relationship valuable change

Parties enterseparation stage

Life-cycle segmentation

Customer life cycle (the five stages)

Using stages to create customer groups in each stage


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3. What are the revenue models for Social Networking Sites? Discuss each. (10 points)

By late 1990s:

Revenue created by selling advertising

Used by virtual communities, search engine sites, Web directories

1998

Purchases and mergers occurredNew sites still used advertising-only revenue generation model

Included features offered by virtual community sites, search engine sites, Web directories, other

information providing and entertainment sites

Goal: be every Web surfers doorway to the Web

Advertising-supported social networking sites

Smaller sites with specialized appeal

Can draw enough visitors to generate significant advertising revenue

Sites with higher number of visitors can charge more

Stickiness: important element in sites attractiveness

Rough measure of stickiness

Time user spends at the site Advertising-supported social networking sites

Social networking sites

Members provide demographic information

Potential for targeted marketing: very high

High visitor counts

Can yield high advertising rates

Second-wave advertising fees

Based less on up-front site sponsorship payments

Based more on revenue generation from continuing relationships with people who use the social

networking sites

Mixed-revenue and fee-for-service social networking sites

Most social networking sites use advertising

Some charge a fee for some services

Monetizing

Converting site visitors into fee-paying subscribers or purchasers of services

Concern: visitor backlash

Fee-based social networking

Google Answers site

Early attempt to monetize social networking

Questions answered for a fee

Google operated service from 2002 to 2006Similar free services

Advocates claim better quality

Fee-based Web sites can generate revenue byproviding virtual community interaction

Microlending sites

- Function as clearinghouses for microlending activity

- Microlending

Practice of lending very small amounts of money

Lend to people starting or operating small businesses

Microlending key element

Working within social network of borrowers

Provide support, element of pressure to repay


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Internal virtual communities

Provide social interaction among organizations employees

Run on organizations intranet

Save money (less paper)

Provide easy access to employee information

Good for geographically dispersed employeesAdding wireless connectivity

Combine second-wave technology with first-wave business strategy

Wireless communications with internal Web portals

4. Differentiate English auctions from Dutch auctions. What type of auction would be better for the

seller?

Why? (10 points)

English Auction: This is an open, ascending auction where each winner pays his/her bid. When

people speak of auctions, they usually mean this one. At most Internet auction sites, if there is no

indication otherwise, this is the method used.

Dutch Auction: A type of auction in which the price on an item is lowered until it gets a bid. The first

bid made is the winning bid and results in a sale, assuming that the price is above the reserve price.This is in contrast to typical options, where the price rises as bidders compete.

English Auction is better because whoever bids the most wins the said item. In a Dutch auction,

many identical items/lots are put up for an auction; winning bidders pay the price of the lowest

winning bidder.

ecom quiz 4 essay

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