In personalization, merchants can target their marketing messages to specific individuals by adjusting the message to a person's name, interests, and past purchases. For example, Amazon.com greets each logged in user with their user name. Show With customization, merchants can change the delivered product or service based on a user's preferences or prior behavior. The Wall Street Journal Online allows you to select the type of news stories you want to see first and gives you the opportunity to be alerted when certain events happen. The ability of Internet technology to track customer behavior at websites, along with records of purchases and other behavior, allows merchants to create a detailed profile of a customer. These profiles can be used to create unique personalized web pages that display content or ads for products or services of special interest to each user, improving the customer's experience and creating additional value. The business value of personalization is reduced marketing costs, as you spend only the money to target customers that are more likely to be receptive and are more profitable, and improved sales results from increased customer response to personalized sites that better serve their own purposes and shopping needs. Personalization can achieve some of the benefits of using individual salespeople for dramatically lower costs. Recommended textbook solutions
Mathematics with Business Applications6th EditionMcGraw-Hill Education 3,760 solutions Intermediate Accounting14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield 1,471 solutions Business Math17th EditionMary Hansen 3,684 solutions Marketing Essentials: The Deca Connection1st EditionCarl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese 1,600 solutions Electronic Business, Electronic Commerce, and the Emerging Digital Firm E-commerce refers to:
Figure 10-1
The rapid growth of e-commerce since 1995 is due to the unique features of the Internet and the Web as a commercial medium:
The Internet also shrinks information asymmetry, which occurs when one party in a transaction has more information with respect to the transactions than the other party. For instance, the Web has reduced the information asymmetries surrounding auto purchases. Digital markets are very flexible and efficient because they allow:
Figure 10-2
The Internet digital marketplace has also greatly expanded sales of digital goods, goods that can be delivered over a digital network. In comparison to traditional goods, the marginal cost of producing another unit of a digital good is about zero, delivery costs over the Internet are low, while marketing costs are about the same and pricing can be variable. E-commerce technologies have revolutionized commerce and enabled a variety of new business models. Some are pure-play models, based purely on the Internet. Others may be hybrid clicks-and-mortar models, using Web sites as an extension of a traditional business, such as LLBean.com. New business models include:
These new business models may have revenue generated from:
What are digital goods and how do they differ from traditional goods?Digital products are the products which are not touchable, available only online and could sell only through digitally and only for digital use. Some examples of digital products are software, ebook, video courses etc.
What refers to business selling goods and services electronically to individuals?At its core, electronic commerce or e-commerce is simply the buying and selling of goods and services using the internet, when shopping online.
What is the difference between personalization and customization quizlet?Personalization refers to adjusting marketing messages for a consumer; customization refers to adjusting a product or service based on a user's preferences.
What is the primary benefit to consumers of disintermediation quizlet?total amount and quantity of information available to all market participants. What is the primary benefit to consumers of disintermediation? None, disintermediation primarily benefits manufacturers.
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