E-Commerce Terminology
augmented product
a product with additional benefits to customers beyond the core benefits embodies in the actual product
customer relationship management (CRM) system
a repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to "know the customer"
library effect
an attempt to appeal to consumers on the basis of the total number of products offered
weblining
charging some customers more money based on their profiles
working capital
current assets - current liabilities
rule-based data mining
examines demographic and transactional data of groups and individuals at a Web site and attempts to derive general rules of behavior for visitors
organic search
inclusion and ranking of sites depends on a more or less unbiased application of a set of rules imposed by the search engine
impressions
number of times an ad is served
transactive content
results from the combination of traditional content, such as articles and product descriptions, with dynamic information culled from product databases, tailored to each user's profile
one-to-one marketing
segmenting the market based on a precise and timely understanding of an individual's needs, targeting specefic marketing messages to these individuals, and then positioning the product vis-a-vis competitors to be truley unique
collaborative filtering
site visitors classify themselves into affinity groups characterized by common interests; products are then recommended based on what other members in the group have recently purchased
price dispersion
the difference between the highest and lowest price in a market
clickstream behavior
the transaction log that consumers establish as they move about the Web
security of credit card information, privacy of personal information, shipping costs, product quality, web site return policy
top 5 concerns about purchasing online (in order)
design look, information design/structure, information focus, company motive, information usefulness
top 5 factors in the credibility of web sites
save time by not going to store, can shop when stores are closed, avoid holiday crowds, might find better prices, can find products online more easily
top 5 reasons for shopping online
product advertising, financial services, scam/fraud, health remedies, pornography
top 5 spam categories
travel reservations, computer hardware, auto/auto parts, consumer electronics, jewelry/luxury goods
top 5 things bought online (largeticket)
apparel/accessories, home and garden, food/beverages, office supplies, entertainment tickets
top 5 things bought online (small ticket)
e-mail and instant messaging, web surfing or browsing, reading news, hobbies, entertainment information, shopping and buying online
top 6 most popular internet activities
behavioral, demographic, pyschographic, technical, contextual, search
types of online market segmentation
closed loop marketing
when marketers are able to directly influence the design of the core product based on market research and feedback from the market
Law of One Price
with complete price transparency in a perfect information marketplace, there will be one world price for every product
