CIS425 Final

• Awareness of need
• Search for more information
• Evaluation of alternatives
• Actual purchase decision
• Post-purchase contact with firm

Process by which an innovation is communicated through certain channels over time among the members of a social system.

• Have more education
• More literate
• Higher social status
• Greater upward social mobility
• Belong to larger units

• Relative advantage
• Complexity
• Compatibility
• Trial-ability
• Observability

• Perceived usefulness
• Perceived ease-of-use

Refers to the gap between those people with effective access to digital/information technology and those without.

• Mass merchant/Department store
• Computers/Electronics
• Office Supplies

• Web transaction logs
• Cookies and web bugs
• Databases, data warehouses, data mining
• CRM systems

Get customers to pass along company's marketing message

Technique that attempts to recommend information items

• Behavioral
• Demographic
• Psychographic
• Technical
• Contextual
• Search

Occurs when new venue for selling products or services threatens or destroys existing venues for selling goods.

• Where audiences are moving
• Targets profitable segments
• Can be very personalized
• Ability to track performance in real time
• Provides greater opportunity for interactivity

• Concerns about cost vs benefit
• Concerns about how to measure results
• Supply of good venues to display ads

• Search
• Video ads
• Rich media

Google's pay-per-click advertising and site-targeted advertising for text, banner, and rich-media ads

Allows online publishers to earn revenue by displaying relevant ads on a wide variety of online content

• click on competitor ads to drive up costs
• click on your site's ads to increase revenue
• click on your ad to improve ranking

• Blog marketing
• Social network ads
• Game advertising

• Browse-to-buy ratio
• View-to-cart ratio
• Retention rate
• Abandonment rate

Activity on partner websites was published on the user's newsfeed without the users' consent

The internet is not really free. Consumers get content because they are looking at ads.

• Copyright
• Patent
• Trademark law

Registration of an infringing domain name, or other Internet use of an existing trademark to extort payments

Has the intent of diverting traffic from a legitimate site to an infringing site

Bypassing target site's home page and linking directly to content page

Using other's trademarks as meta-tags in misleading or confusing manner

Using other’s trademarks as keywords on search engines in a misleading or confusing manner

Displaying content of another site within frame or window

The principle that delivery of content on the Internet should be free of restrictions particularly regarding the content delivered, sites visited, or platforms used

• Low search costs
• Low entry costs
• Traditional offline physical stores would be forced out of business
• Everyone would move to their beach home or mountain cabin

• Online retailing becomes necessity for established retailers
• Online retail increasingly profitable
• Online buying is mainstream behavior

• Virtual merchant
• Bricks-and-clicks
• Catalog merchant
• Manufacturer direct

Single channel web firms that generate almost all revenues from online sales (i.e. Amazon)

Companies that have network of physical stores as primary retail channel, but also online offerings (i.e. Wal-Mart, Sears)

Established companies with national offline catalog operations, but also have online capabilities (i.e. Pottery Barn, Victoria's Secret)

Single or multi-channel manufacturers who sell directly online to consumers without intervention of retailers (i.e. Dell)

Price comparison service (i.e. Amazon)

• Information overload may decrease forecasting skill
• More information reinforces prior bias
• People seek out confirmatory information

• Personal involvement leads to perception of influence of outcome
• Leads to more active, speculative trading

• Increased ratio of inexperienced to experienced investors
• Investors have more cash to invest
• Greater uncertainty about the valuations

• Importance of fixed vs marginal costs
• Dramatic reduction in search costs
• Internet alters role of intermediary
• Easy to create multiple versions
• Bundling can flatten the demand curve
• Importance of network externalities
• Standards influence drive to critical mass

• On the web, marginal cost of producing duplicate copies is essentially zero
• Fixed development costs may create barriers to entry for early movers

economic agent that purchases from suppliers for resale to buyers or that helps buyers and sellers meet and transact.

• Penetration pricing
• Expectations
• Vaporware and pre-announcements
• Alliances
• Credible commitments for the future

• Tremendous growth of online media
• Paid and free content coexist
• Content moves to mobile devices
• Consolidation of major content providers

• People were watching it at work
• $1.8 B in lost productivity

• Marketing
• Advertising
• Pay-for-download
• Subscription
• Mixed

• General content
• Focused market
• Niche content
• Sole source
• High net value

• Massive investment in global broadband connectivity
• Computers became cheaper and dispersed all over the world
• There was an explosion of software
• Intellectual work can be divided and sent to multiple locations