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E-Commerce End of Chapter Solutions Reviews and Discussions 1. What are showrooming and Webrooming? How should a business manage these buying options? Showrooming is when consumers physically inspect a product in a store to get a look and feel for it—and then buy it from an online store because it is cheaper to do so. Webrooming is the opposite of showrooming: consumers see a product online, do all their research online, but for a final check and purchase go to a store. To combat this trend, retailers can create an omnichannel, which integrates online, social media, mobile technology, and the physical store. By doing this, a retailer is flexible enough to generate a sale regardless of where a customer wants to initiate the sale. 2. What are two examples of B2C e-commerce business models? The merchant model and the brokerage model are two examples of B2C e-commerce business models. 3. How does the infomediary business model work? The infomediary business model collects information on consumers and businesses and then sells this information to other companies for marketing purposes. 4. What are two advantages of e-procurement compared to traditional procurement (per revised MS, April 16)? E-procurement streamlines the traditional procurement process, which reduces costs, saves time, and improves relationships between suppliers and participating organizations. 5. How are restaurant chains using m-commerce? Restaurant chains are increasingly utilizing mobile commerce (m-commerce) to enhance customer convenience, streamline ordering processes, and increase sales. Here are several ways restaurant chains are leveraging m-commerce: Mobile Ordering Apps: Many restaurant chains have developed their own mobile apps that allow customers to browse menus, place orders, and pay directly from their smartphones. These apps often include features like customization options, order tracking, and loyalty programs to enhance user experience and encourage repeat business. Mobile Payment: M-commerce enables customers to make payments using their smartphones, eliminating the need for physical cash or cards. Restaurant chains integrate mobile payment options such as Apple Pay, Google Pay, or proprietary payment systems within their apps to facilitate seamless transactions. Order Ahead and Pickup: Through mobile apps, customers can place orders in advance and schedule a pickup time, reducing wait times and streamlining the dining experience. This feature is particularly popular for quick-service and fast-casual restaurant chains where speed and convenience are paramount. Delivery Services: Many restaurant chains partner with third-party delivery platforms such as Uber Eats, DoorDash, or Grubhub to offer delivery services through their mobile apps. Customers can place orders for delivery directly from the restaurant's app, expanding their reach and catering to customers who prefer dining at home. Mobile Loyalty Programs: Restaurant chains utilize mobile apps to implement loyalty programs that reward customers for frequent purchases. Customers can earn points or discounts for each order placed through the app, encouraging repeat business and fostering customer loyalty. Push Notifications and Promotions: Mobile apps allow restaurant chains to send targeted push notifications and promotions directly to customers' smartphones. This enables them to communicate special offers, new menu items, or upcoming events, driving engagement and increasing sales. Personalized Recommendations: By analyzing customer data and order history, restaurant chains can provide personalized recommendations and suggestions through their mobile apps. This enhances the customer experience by offering relevant menu options tailored to individual preferences. Overall, restaurant chains are leveraging m-commerce to create more convenient, personalized, and engaging experiences for their customers while driving sales and fostering brand loyalty in an increasingly digital landscape. 6. What are three examples of Web marketing? Splash screen, spot leasing, and pop-up ads are three examples of Web marketing. 7. What is mobile marketing? What are two examples of mobile marketing strategies? Mobile marketing uses mobile devices, such as smartphones and tablets, to promote goods and services. Examples of mobile marketing include: app-based marketing and in-game mobile marketing. 8. What is social commerce? What are two categories of social networks and online media that constitute social commerce? Social commerce is a subset of e-commerce that is influenced by social networks and other online media. Two categories of social networks and online media that constitute social commerce are social networking sites and group buying platforms. 9. What is Apple Pay? Apple Pay is a mobile payment service that works based on NFC (near field communication) technology. Projects 1. Local, state, and federal government agencies are establishing e-gov sites in order to improve the efficiency and effectiveness of their operations. After reading the information presented in this chapter and other sources, write a one-page paper that summarizes six advantages of using e-gov applications for running a city? What are some of the challenges? In today's digital age, local, state, and federal government agencies are increasingly turning to e-government initiatives to streamline operations and enhance service delivery. Within urban contexts, the adoption of e-gov applications offers a plethora of advantages, accompanied by a set of unique challenges. Advantages: • Enhanced Accessibility: E-government platforms enable citizens to access government services and information round-the-clock from the convenience of their homes or mobile devices. This accessibility eliminates the constraints of physical presence, ensuring inclusivity and reaching a broader demographic. • Improved Efficiency: Automation of administrative processes through e-gov applications reduces bureaucratic bottlenecks and paperwork, leading to faster response times and smoother service delivery. Tasks such as applying for permits, paying taxes, or reporting issues can be expedited, enhancing overall efficiency. • Cost Savings: E-government solutions help in reducing administrative overheads associated with traditional brick-and-mortar operations. By digitizing processes and promoting online transactions, governments can achieve significant cost savings in terms of infrastructure, manpower, and resource utilization. • Transparency and Accountability: Through e-gov platforms, governments can foster transparency by providing citizens with real-time access to government proceedings, budgets, and decision-making processes. This transparency enhances public trust and fosters a culture of accountability among government officials. • Data-Driven Decision Making: E-government systems generate vast amounts of data regarding citizen interactions and service usage. By leveraging data analytics, urban authorities can gain valuable insights into citizen needs, preferences, and trends, facilitating evidence-based policymaking and resource allocation. • Citizen Engagement and Feedback: E-gov applications provide avenues for citizens to actively participate in governance by offering feedback, suggestions, and complaints online. This engagement fosters a sense of community ownership and empowers citizens to collaborate with authorities in shaping urban development initiatives. Challenges: • Digital Divide: Despite increasing internet penetration, disparities in digital literacy and access persist, potentially excluding marginalized communities from benefiting fully from e-gov services. Bridging this digital divide requires targeted interventions to ensure equitable access for all citizens. • Security and Privacy Concerns: E-gov platforms deal with sensitive citizen data, raising concerns regarding data security, privacy breaches, and cyber threats. Governments must prioritize robust cybersecurity measures and adhere to stringent data protection regulations to safeguard citizen information. • Resistance to Change: Transitioning from traditional to digital governance may encounter resistance from bureaucratic structures, entrenched processes, and workforce inertia. Overcoming this resistance necessitates comprehensive change management strategies, including training and capacity building initiatives. • Infrastructure and Connectivity: Adequate infrastructure and reliable internet connectivity are prerequisites for successful e-gov implementation. However, urban areas facing infrastructural deficiencies or connectivity gaps may struggle to ensure seamless access to e-gov services for all citizens. • Legal and Regulatory Frameworks: E-gov initiatives must navigate complex legal and regulatory frameworks governing data protection, digital signatures, online transactions, and interoperability standards. Harmonizing these frameworks across different levels of government poses a significant challenge to e-gov deployment. • User Experience and Digital Inclusion: Designing user-friendly interfaces and ensuring accessibility for diverse user groups, including the elderly and persons with disabilities, is essential for promoting widespread adoption of e-gov services. Additionally, proactive measures are needed to address language barriers and cater to non-native speakers. In conclusion, while e-gov applications offer tremendous potential for enhancing urban governance, realizing these benefits requires concerted efforts to address the associated challenges. By navigating these challenges effectively, governments can harness the transformative power of digital technology to create more inclusive, responsive, and efficient cities. 2. Yelp is a successful social networking site. After reading the information presented in this chapter and other sources, write a one-page paper that describes the business model used by Yelp. How does Yelp generate revenue? How can businesses benefit from this social networking site? Yelp, a prominent social networking site, has established itself as a vital platform for consumers seeking information and reviews about local businesses. Understanding Yelp's business model reveals its revenue generation strategies and the benefits it offers to businesses leveraging its platform. Business Model and Revenue Generation: Yelp primarily operates on a two-sided marketplace model, connecting consumers with local businesses while monetizing both user engagement and business promotion. • Advertising Revenue: Yelp generates a significant portion of its revenue through advertising solutions tailored for businesses. This includes sponsored search results, display ads, and enhanced profile features, allowing businesses to increase their visibility and attract potential customers. Advertisers pay Yelp based on clicks, impressions, or other engagement metrics, creating a revenue stream tied to advertising effectiveness. • Yelp Reservations and Transactions: Yelp offers a reservation and booking service for restaurants, spas, and other establishments. By facilitating transactions directly through its platform, Yelp earns commissions or transaction fees, further diversifying its revenue streams. • Yelp Deals and Gift Certificates: Yelp provides businesses with the option to offer deals and gift certificates to attract customers. Yelp takes a percentage of the revenue generated from these promotional offers, providing another avenue for monetization. • Data Licensing and Insights: Yelp aggregates vast amounts of data regarding consumer preferences, reviews, and business interactions. It monetizes this data by offering insights, analytics, and licensing agreements to businesses, marketers, and researchers seeking to understand consumer behavior and market trends. Business Benefits of Yelp: • Enhanced Visibility and Reach: Businesses listed on Yelp gain exposure to a large and diverse user base actively seeking local services and products. Positive reviews and high ratings can significantly boost a business's visibility and attract new customers. • Reputation Management: Yelp provides businesses with a platform to manage their online reputation by responding to reviews, addressing customer feedback, and showcasing their strengths. Actively engaging with customers on Yelp can help businesses build credibility and trust. • Targeted Advertising: Yelp's advertising solutions allow businesses to target specific demographics, locations, or user interests, maximizing the effectiveness of their marketing efforts. This targeted approach ensures that businesses reach relevant audiences likely to convert into customers. • Customer Insights: Through Yelp's analytics tools and customer feedback mechanisms, businesses gain valuable insights into customer preferences, satisfaction levels, and areas for improvement. This data-driven approach enables businesses to make informed decisions and tailor their offerings to meet customer needs effectively. • Competitive Advantage: Maintaining a strong presence on Yelp and garnering positive reviews can provide businesses with a competitive edge in their local market. A favorable reputation on Yelp can differentiate businesses from competitors and influence consumer purchasing decisions. In conclusion, Yelp's business model revolves around connecting consumers with local businesses while monetizing user engagement and business promotion through advertising, transactions, and data monetization. Businesses stand to benefit from Yelp's platform by enhancing their visibility, managing their reputation, targeting advertising efforts, gaining valuable insights, and gaining a competitive advantage in their respective markets. By leveraging Yelp effectively, businesses can tap into the power of social networking to drive growth and success. 3. Twitter has become a very popular personal as well as business social networking site. After reading the information presented in this chapter and other sources, write a one-page paper that summarizes five ways that a business can use Twitter in order to increase its revenue. What does “trending” mean on Twitter? What are promoted tweets? Trending refers to hashtag-driven topics that become popular very fast. Promoted tweets refer to those tweets that advertisers pay for their placement on Twitter. 4. A Mediterranean restaurant chain with over 25 restaurants in Southern California is trying to expand its operations. After reading the information presented in this chapter and other sources, write a two-page paper that outlines a mobile marketing program for this company. What are three mobile marketing strategies that you recommend for this company? What are the bases of your recommendations for reaching out to the largest number of potential customers with a moderate cost? In today's digital age, leveraging mobile marketing strategies is essential for any business looking to expand its operations, especially in the competitive landscape of the restaurant industry. For the Mediterranean restaurant chain with over 25 restaurants in Southern California, a well-crafted mobile marketing program can significantly enhance brand visibility, customer engagement, and ultimately drive sales. Here are three recommended mobile marketing strategies along with the bases for these recommendations: • Mobile App Development: Developing a dedicated mobile application for the restaurant chain can be a game-changer in terms of customer convenience and engagement. The app can feature functionalities such as online ordering, table reservations, loyalty rewards, and push notifications for special offers and promotions. By offering a seamless and user-friendly experience, the restaurant can effectively encourage repeat business and attract new customers. Basis for Recommendation: Mobile apps provide a direct channel for engaging with customers and fostering brand loyalty. With over 80% of smartphone users preferring mobile apps over mobile websites for regular use, investing in an app can ensure the company reaches a large number of potential customers. Despite the initial development costs, the long-term benefits and potential for increased revenue justify this investment. • Location-Based Marketing: Implementing location-based marketing tactics can help the restaurant chain target customers in proximity to its various locations. Through geo-targeted ads and promotions delivered via mobile apps or social media platforms, the company can effectively reach out to potential customers in the vicinity of their restaurants. Offering real-time discounts or special deals to nearby users can incentivize them to visit the nearest restaurant. Basis for Recommendation: Location-based marketing leverages the power of mobile technology to target customers based on their current location, increasing the likelihood of conversion. With the majority of consumers using smartphones to search for local businesses and dining options, this strategy enables the restaurant chain to capture the attention of potential customers at the right place and time, maximizing the impact of its marketing efforts. • Mobile-Friendly Website Optimization: Ensuring that the restaurant chain's website is optimized for mobile devices is crucial for providing a seamless browsing experience to users on smartphones and tablets. A mobile-friendly website should feature responsive design, fast loading times, and intuitive navigation, allowing customers to easily access information about menu offerings, locations, and contact details while on the go. Basis for Recommendation: With mobile devices accounting for a significant portion of web traffic, optimizing the company's website for mobile users is essential for enhancing visibility and accessibility. By prioritizing mobile-friendly design and usability, the restaurant chain can cater to the preferences of modern consumers and capture the attention of potential customers who rely on their smartphones for browsing and research. Conclusion: In conclusion, implementing a comprehensive mobile marketing program incorporating mobile app development, location-based marketing, and mobile-friendly website optimization can significantly enhance the Mediterranean restaurant chain's reach and engagement with potential customers. By leveraging the ubiquity and convenience of mobile technology, the company can effectively attract new patrons, drive foot traffic to its restaurants, and ultimately achieve its expansion goals with a reasonable investment of resources. 5. The future of m-commerce appears to be very promising. After reading the information presented in this chapter and other sources, write a two-page paper that identifies four factors that will contribute to the future growth of m-commerce. What are some of the challenges that must be overcome? Mobile commerce (m-commerce) has emerged as a significant driver of economic activity, offering unprecedented convenience and accessibility to consumers worldwide. As technology continues to advance and consumer behavior evolves, several factors are poised to contribute to the future growth of m-commerce. Here, we identify four key factors driving this growth and discuss the challenges that must be addressed to unlock its full potential. • Proliferation of Smartphone Adoption: The widespread adoption of smartphones globally is a primary catalyst for the growth of m-commerce. With smartphones becoming increasingly affordable and feature-rich, more consumers have access to internet-enabled devices capable of conducting transactions on the go. As smartphone penetration rates continue to rise, the addressable market for m-commerce expands, driving increased usage and revenue. • Advancements in Mobile Technology: Ongoing advancements in mobile technology, including faster internet speeds, improved security features, and enhanced user experiences, are fueling the growth of m-commerce. Technologies such as mobile wallets, near-field communication (NFC), and biometric authentication are making mobile transactions more seamless and secure, thereby boosting consumer confidence and encouraging adoption. • Shift in Consumer Behavior: Changing consumer preferences and behaviors, particularly among younger demographics, are driving the shift towards m-commerce. Millennials and Generation Z, who are digital natives accustomed to using smartphones for various activities, are increasingly embracing mobile shopping and payment methods. The convenience of browsing, comparing prices, and making purchases from anywhere at any time aligns with their on-the-go lifestyles, driving m-commerce growth. • Expansion of Mobile-Friendly Platforms: The proliferation of mobile-friendly platforms, including responsive websites and dedicated mobile apps, is facilitating the growth of m-commerce. Businesses across industries are investing in optimizing their online presence for mobile devices, ensuring seamless shopping experiences for mobile users. Additionally, social media platforms and messaging apps are increasingly integrating commerce functionalities, enabling businesses to reach customers directly on their mobile devices. Challenges to Overcome: While the future of m-commerce is promising, several challenges must be addressed to unlock its full potential: • Security Concerns: Security remains a significant concern for m-commerce, with the risk of data breaches, identity theft, and fraudulent transactions. Addressing security vulnerabilities and implementing robust authentication and encryption measures are essential to building consumer trust and confidence in mobile transactions. • Digital Divide: Disparities in access to smartphones and mobile internet connectivity can widen the digital divide, limiting the participation of underserved populations in m-commerce. Bridging this gap through initiatives aimed at increasing mobile affordability and expanding internet infrastructure is crucial for inclusive growth. • User Experience: Providing a seamless and intuitive user experience across mobile devices is critical for driving m-commerce adoption. Businesses must optimize their mobile platforms for speed, responsiveness, and ease of navigation to minimize friction in the shopping process and maximize conversions. • Regulatory Compliance: Compliance with evolving regulatory frameworks governing data privacy, consumer protection, and mobile payments poses challenges for m-commerce stakeholders. Adhering to industry standards and regulatory requirements while balancing innovation and compliance is essential for sustainable growth in the mobile commerce ecosystem. Conclusion: In conclusion, the future of m-commerce is indeed promising, driven by factors such as smartphone adoption, technological advancements, shifting consumer behavior, and mobile-friendly platforms. However, addressing challenges related to security, digital inclusion, user experience, and regulatory compliance is imperative to realizing the full potential of m-commerce and ensuring its continued growth in the years to come. By overcoming these challenges through collaboration and innovation, m-commerce can continue to revolutionize the way we shop, transact, and interact in the digital age. 6. Search engine optimization should be a part of any successful Web marketing strategy. After reading the information presented in this chapter and other sources, write a one-page paper that offers seven recommendations for improving SEO in an e-commerce site. Search engine optimization (SEO) is indispensable for the success of any e-commerce website, as it directly impacts visibility, traffic, and ultimately, sales. Here are seven recommendations to enhance SEO in an e-commerce site: • Keyword Research and Optimization: Conduct comprehensive keyword research to identify relevant search terms and phrases related to your products or services. Optimize product titles, descriptions, and meta tags with targeted keywords to improve search engine rankings and attract qualified traffic. • High-Quality Content Creation: Create informative, engaging, and unique content for product pages, category descriptions, and blog posts. Incorporate keywords naturally into the content while providing valuable information that educates and assists potential customers. High-quality content not only improves SEO but also enhances user experience and builds trust with visitors. • Mobile-Friendly Design: Ensure your e-commerce site is optimized for mobile devices to cater to the growing number of mobile users. Implement responsive design techniques to ensure seamless functionality and usability across various screen sizes and devices. Google prioritizes mobile-friendly websites in its search results, making mobile optimization essential for SEO success. • Site Speed Optimization: Optimize your website's loading speed to enhance user experience and improve search engine rankings. Compress images, minify CSS and JavaScript files, and leverage browser caching to reduce page load times. Google considers site speed as a ranking factor, so investing in performance optimization can significantly impact SEO performance. • User-Friendly Navigation: Design intuitive and user-friendly navigation to help visitors find products quickly and easily. Implement clear and logical site structure with descriptive category names and hierarchical menus. A well-organized navigation structure not only improves user experience but also enables search engines to crawl and index your site more effectively. • Schema Markup Implementation: Implement schema markup to provide search engines with additional context about your products, such as pricing, availability, reviews, and ratings. Schema markup helps search engines understand the content of your pages better and can result in enhanced visibility and richer snippets in search results, increasing click-through rates. • Regular Monitoring and Optimization: Continuously monitor your e-commerce site's performance using analytics tools to identify areas for improvement. Track keyword rankings, traffic sources, conversion rates, and other relevant metrics to assess SEO effectiveness. Regularly update and optimize your SEO strategy based on data insights and algorithm changes to stay ahead of the competition and maintain visibility in search results. In conclusion, implementing these seven recommendations for improving SEO in an e-commerce site can help drive organic traffic, increase visibility, and ultimately, boost sales and revenue. By focusing on keyword optimization, high-quality content, mobile-friendliness, site speed, user-friendly navigation, schema markup, and ongoing monitoring and optimization, e-commerce businesses can establish a strong online presence and achieve long-term success in the competitive digital landscape. Are You Ready to Move On? 1. A value chain is a series of activities designed to meet business needs by adding value (or cost) in each phase of the e-commerce process. Answer: True 2. Security and privacy issues are among the advantages of e-commerce. Answer: False 3. Group buying platforms such as Groupon are a part of social commerce. Answer: True 4. All of the following are a part of social commerce except: a. Social networking sites b. Peer-to-peer e-commerce platforms c. Recommendation Web sites d. They all are Answer: d 5. Popular mobile marketing strategies include all of the following except: a. App-based marketing b. Spot leasing c. Location-based marketing d. SMS and MMS Answer: b 6. SEO includes techniques that make it easier for search engines to find and index a site for certain keywords. All of the following are some common ways to optimize a Web site’s traffic except: a. Keywords b. Page title c. Links to others d. They all are Answer: d Case Studies Case Study 8-1: E-Commerce Applications in Online Travel 1. What are the differences between online travel agents, such as Orbitz, and travel search engines, such as Mobissimo? Online travel agents (OTAs) are considered the first generation of travel services. Most OTAs charge a fee for performing these services, but customers get confirmed travel arrangements and guarantees in case flights are canceled, among other things. The second generation of travel services is offered by travel search engines, which use Web technologies to help customers make travel arrangements quickly and efficiently; major ones include SideStep, Kayak, and Mobissimo. 2. What are the differences between Priceline and other OTA business models? Priceline uses a patented model called “Name Your Own Price,” which allows customers to bid on the price of a service in addition to traditional pricing models. 3. From the perspective of travel suppliers, what are the advantages of travel search engines? From the perspective of travel suppliers, travel search engines cost less when compared to the travel suppliers. Case Study 8-2: Bridging the Gap between E-Commerce and Traditional Commerce 1. What is the function of Apple’s iBeacon? Apple’s iBeacon tracks the customer inside the store. 2. What are the differences between iBeacon and GPS? A GPS guides a customer to a store, whereas iBeacon then tracks the customer inside the store. 3. How might a retail business benefit from iBeacon? There are many potential applications of this technology. For example, a retailer can send a coupon as soon as iBeacon detects that a customer has walked to a particular aisle and is looking at a particular product. 4. What are some of the concerns that customers may have about this technology? While mobile commerce (m-commerce) offers numerous benefits to customers, there are several concerns that some customers may have about adopting this technology: 1. Privacy and Security: One of the primary concerns is the security of personal and financial information stored on mobile devices and transmitted during transactions. Customers may worry about the risk of data breaches, identity theft, or unauthorized access to their accounts. 2. Reliability and Technical Issues: Customers may encounter technical issues such as app crashes, slow loading times, or connectivity problems, which can disrupt the ordering process and lead to frustration. Concerns about the reliability of mobile apps and payment systems may deter some customers from using m-commerce platforms. 3. Complexity and User Experience: Some customers may find mobile apps or m-commerce platforms to be complex or difficult to navigate, especially if they are not technologically savvy. Complicated checkout processes, confusing menu layouts, or lack of user-friendly features can hinder the overall user experience and discourage adoption. 4. Hidden Fees and Pricing Transparency: Customers may be wary of hidden fees, surcharges, or pricing discrepancies when ordering through mobile apps, particularly with third-party delivery services. Lack of transparency regarding pricing and additional charges can erode trust and lead to dissatisfaction among customers. 5. Limited Customization and Personalization: While mobile apps may offer customization options for orders, some customers may feel limited in their ability to personalize their preferences or make special requests compared to ordering in person. This lack of flexibility can be a concern for customers with specific dietary requirements or preferences. 6. Dependency on Technology: There is a concern among some customers about becoming overly reliant on mobile devices and technology for everyday tasks such as ordering food. Dependence on mobile apps for dining experiences may raise questions about the loss of human interaction and the potential for overreliance on digital platforms. 7. Accessibility and Inclusivity: Not all customers may have access to smartphones or mobile devices, which can exclude certain demographics, such as elderly individuals or those with limited financial resources. Concerns about inclusivity and accessibility may arise if m-commerce platforms are not designed with diverse user needs in mind. Addressing these concerns through robust security measures, user-friendly interfaces, transparent pricing policies, and inclusive design can help restaurant chains alleviate customer apprehensions and promote wider adoption of m-commerce technologies. Solution Manual for MIS Hossein Bidgoli 9781305632004, 9781337625999, 9781337625982, 9781337406925
