CIS425 Final

  1. Five stages in the consumer decision procress
    • Awareness of need
    • Search for more information
    • Evaluation of alternatives
    • Actual purchase decision
    • Post-purchase contact with firm
  2. Diffusion of innovations
    Process by which an innovation is communicated through certain channels over time among the members of a social system.
  3. Characteristics of early adopters
    • Have more education
    • More literate
    • Higher social status
    • Greater upward social mobility
    • Belong to larger units
  4. 5 characteristics that determine adoption speed
    • Relative advantage
    • Complexity
    • Compatibility
    • Trial-ability
    • Observability
  5. 2 key factors of adoption according to the Technology Acceptance Model (TAM)
    • Perceived usefulness
    • Perceived ease-of-use
  6. Digital divide
    Refers to the gap between those people with effective access to digital/information technology and those without.
  7. Types of products people buy online
    • Mass merchant/Department store
    • Computers/Electronics
    • Office Supplies
  8. Internet marketing technologies
    • Web transaction logs
    • Cookies and web bugs
    • Databases, data warehouses, data mining
    • CRM systems
  9. Advertising networks
    Image Upload 2
  10. Viral marketing
    Get customers to pass along company's marketing message
  11. Recommender systems
    Technique that attempts to recommend information items
  12. Different approaches to segmenting consumers
    • Behavioral
    • Demographic
    • Psychographic
    • Technical
    • Contextual
    • Search
  13. Channel conflict
    Occurs when new venue for selling products or services threatens or destroys existing venues for selling goods.
  14. Advantages of online advertising
    • Where audiences are moving
    • Targets profitable segments
    • Can be very personalized
    • Ability to track performance in real time
    • Provides greater opportunity for interactivity
  15. Disadvantages of online marketing
    • Concerns about cost vs benefit
    • Concerns about how to measure results
    • Supply of good venues to display ads
  16. Successful online advertising formats
    • Search
    • Video ads
    • Rich media
  17. AdWords
    Google's pay-per-click advertising and site-targeted advertising for text, banner, and rich-media ads
  18. AdSense
    Allows online publishers to earn revenue by displaying relevant ads on a wide variety of online content
  19. Click fraud
    • click on competitor ads to drive up costs
    • click on your site's ads to increase revenue
    • click on your ad to improve ranking
  20. Web 2.0 marketing examples
    • Blog marketing
    • Social network ads
    • Game advertising
  21. Online marketing metrics
    • Browse-to-buy ratio
    • View-to-cart ratio
    • Retention rate
    • Abandonment rate
  22. Facebook beacon
    Activity on partner websites was published on the user's newsfeed without the users' consent
  23. "Implicit Bargain" underlying the "free" Internet:
    The internet is not really free. Consumers get content because they are looking at ads.
  24. 3 main types of intellectual property (IP)
    • Copyright
    • Patent
    • Trademark law
  25. Cybersquatting
    Registration of an infringing domain name, or other Internet use of an existing trademark to extort payments
  26. Cyberpiracy
    Has the intent of diverting traffic from a legitimate site to an infringing site
  27. Deep linking
    Bypassing target site's home page and linking directly to content page
  28. Metatagging
    Using other's trademarks as meta-tags in misleading or confusing manner
  29. Keywording
    Using other’s trademarks as keywords on search engines in a misleading or confusing manner
  30. Framing
    Displaying content of another site within frame or window
  31. Net Neutrality
    The principle that delivery of content on the Internet should be free of restrictions particularly regarding the content delivered, sites visited, or platforms used
  32. Early vision of online retailing
    • 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
  33. Major trends in online retail
    • Online retailing becomes necessity for established retailers
    • Online retail increasingly profitable
    • Online buying is mainstream behavior
  34. 4 types of online retail business models:
    • Virtual merchant
    • Bricks-and-clicks
    • Catalog merchant
    • Manufacturer direct
  35. Virtual merchants
    Single channel web firms that generate almost all revenues from online sales (i.e. Amazon)
  36. Bricks-and-clicks
    Companies that have network of physical stores as primary retail channel, but also online offerings (i.e. Wal-Mart, Sears)
  37. Catalog merchants
    Established companies with national offline catalog operations, but also have online capabilities (i.e. Pottery Barn, Victoria's Secret)
  38. Manufacturer direct
    Single or multi-channel manufacturers who sell directly online to consumers without intervention of retailers (i.e. Dell)
  39. Shopbot
    Price comparison service (i.e. Amazon)
  40. Illusion of knowledge
    • Information overload may decrease forecasting skill
    • More information reinforces prior bias
    • People seek out confirmatory information
  41. Illusion of control
    • Personal involvement leads to perception of influence of outcome
    • Leads to more active, speculative trading
  42. 3 ways online brokerage impact speculative equity bubbles:
    • Increased ratio of inexperienced to experienced investors
    • Investors have more cash to invest
    • Greater uncertainty about the valuations
  43. 7 relevant characteristics of information-based goods
    • 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
  44. Issues related to fixed vs marginal costs for information-based goods
    • On the web, marginal cost of producing duplicate copies is essentially zero
    • Fixed development costs may create barriers to entry for early movers
  45. Basic roles of an intermediary
    economic agent that purchases from suppliers for resale to buyers or that helps buyers and sellers meet and transact.
  46. Approaches firms might use to encourage their standard to be adopted by others:
    • Penetration pricing
    • Expectations
    • Vaporware and pre-announcements
    • Alliances
    • Credible commitments for the future
  47. Trends in online content
    • Tremendous growth of online media
    • Paid and free content coexist
    • Content moves to mobile devices
    • Consolidation of major content providers
  48. What CBS learned from televising NCAA basketball tournament over the Internet?
    • People were watching it at work
    • $1.8 B in lost productivity
  49. 5 types of revenue models for online media content providers:
    • Marketing
    • Advertising
    • Pay-for-download
    • Subscription
    • Mixed
  50. Factors needed to charge for online content:
    • General content
    • Focused market
    • Niche content
    • Sole source
    • High net value
  51. What made the world "flat"?
    • 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
Card Set
CIS425 Final
CIS425 Final