Chapter 13: Creating Innovative Organizations

Clickstream Data

they can observe the exact pattern of a consumer's navigation through a site.

Unidentified Visitor

A visitor is an individual who visits a website. An ____________ means that no information about that visitor is available.

Identified Visitor

An ID is available that allows a user to be tracked acress multiple visits to a website.

Internet

a massive network that connects computers all over the world and allows them to communicate with one another.

Unique Visitor

a visitor who ca be recognized ad counted only once within a given period of time.

Associate Program

affiliate program, allows a business to generate commissions or referral fees when a customer visiting its website clicks on a link to another merchant's website. For example, if a customer to a company website clicks on a banner ad to another vendor's website, the company will receive a referral fee or commission when the customer performs the desired action, typically making a purchase or completing a form.

Intermediaries

are agents, software, or businesses that provide a trading infrastructure to bring buyers and sellers together.

Innovators Dilemma

discusses how established companies can take advantage of disruptive technologies without hindering existing relationships with customers, partners, and stakeholders

Digital Darwinism

implies that organizations that cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction.

Ebusiness

includes ecommerce along with all activities related to internal and external business operations such as servicing customer accounts, collaborating with partners, and exchanging real-time information.

Banner Ad

is a box running across a website that advertises the products and services of another business, usually another ebusiness. The banner generally contains a link to the advertiser's website. Advertisers can track how often customers click on a _____________________ resulting in a click-through on their website. They are like living, breathing classified ads. Tracking the number of banner ad clicks is an excellent way to understand the effectiveness of the ad on a website.

Click Through

is a count of the number of people who visit one site and click on an advertisement that takes them to the site of the advertiser. Tracking effectiveness based on ______________________ guarantees exposure to target ads; however, it does not guarantee that the visitor liked the ad, spent any substantial time viewing the ad, or was satisfied with the information contained in the ad.

Disruptive Technology

is a new way of doing things that initially does not meet the needs of existing customers.

Cookie

is a small file deposited on a hard drive by a website containing information about customers and their browsing activities. They allow websites to record the comings and goings of customers, usually without their knowledge or consent.

Pop Up Ad

is a small web page containing an advertisement that appears outside of the current website loaded in the browser. A pop under ad is a form of a ____________ that users do not see until they close the current web browser screen.

Viral Marketing

is a technique that induces websites or users to pass on a makreting message to other websites or users, creating exponential growth in the message's visibility and effect. One example of successful _________ is Hotmail, which promotes its service and its own advertisers' messages in every user's email notes. Encourages users of a product or service supplied by an ebusiness to encourage friends to join. Is a word-of-mouth type advertising program.

Web 1.0

is a term to refer to the World Wide Web during its first few years of operation between 1991 and 2003.

Hypertext Transport Protocol (HTTP)

is the Internet protocol web browsers use to request and display web pages using universal resource locators.

Mass Customization

is the ability of an organization to tailor its products or services to the customers' specifications.

Universal Resource Locator (URL)

is the address of a file or resource on the web such as www.apple.com.

Ecommerce

is the buying and selling of goods and services over the Internet and refers to only online transactions.

Hypertext Markup Language (HTML)

links documents, allowing users to move from one to another simply by clicking on a hot spot or link.

Interactivity

measures advertising effectiveness by counting visitor interactions with the target ad, including time spent viewing the ad, number of pages viewed, and number of repeat visits to the advertisement.

Information Reach

measures the number of people a firm can communicate with all over the world.

Disintermediation

occurs when a business sells directly to the customer online and cuts out the intermediary.

Personalization

occurs when a company knows enough about a customer's likes and dislikes that it can fashion offers more likely to appeal to that person, say by tailoring its website to individuals or groups based on profile information, demographics, or prior transactions.

Paradigm Shift

occurs when a new radical form of business enters the market that reshapes the way companies and organizations behave.

Sustaining Technology

produces an improved product customers are eager to buy, such as a faster car or larger hard drive.

World Wide Web (WWW)

provides access to Internet information through documents including text, graphics, audio, and video files that use a special formatting language called HTML.

Long Tail

referring to the tail of a typical sales curve.

Cybermediation

refers to the creation of new kinds of intermediaries that simply could not have existed before the advent of ebusiness, including comparison-shopping sites such as Kelkoo and bank account aggregation services such as Citibank.

Information Richness

refers to the depth and breadth of details contained in a piece of textual, graphic, audio, or video information.

Reintermediation

steps are added to the value chain as new players find ways to add value to the business process.

Web Browsers

such as Internet Explorer or Mozilla's Firefox, allow users to access the WWW.

Raw Visit Depth

the total number of pages a visitor is exposed to during a single visit to a website.

Stickiness

website visit time. The length of time a visitor spends on a website.

Hit

when visitors reach a website, their computer sends a request to the site's computer server to begin displaying pages. Each element of a requested page is recorded by the website's server log file as a "______".