Wednesday, October 13, 2010
WEB 2.0
Select five applications that you have not heard of before from Popular URL's Web 2.0 awards or the webware awards and describe on your blog page how they could be useful to a business.
Digg:
The Digg application is a social news website which allows people to vote on the popularity of stories on the news. Its interface allows people to vote and rate a story on the news. The Digg phenomenon has lead to the constructions of other such social networks that attempt to rate the news.
Google calendar:
It is a web application that allows user to have a time management device in order to plan their activities or just remember important dates. It works the same way as an agenda or electronic diary would. The advantage of this application is that it allows you to manage your diary on the go since it is online and can be accessed from any computer or mobile device with internet access. In addition with its online interface, information can be shared, uploaded or downloaded.
Reddit:
Reddit is another social news application that allows its users to submit news stories whether by copying links from other websites, copying stories or even writing their own creation. Then these stories can be read by other users and they can be voted for or against by users and users can also have forums about the topics and they can also interact with the writers. It creates a sort of community interaction among its users.
Safari:
Safari is an application developed by Apple in order to browse the web on its different products such as the Mac, the iPhone or the iPad. The program has been developed in order to allow the user to access the internet and navigate with the greatest ease possible. Its popularity is ranked fourth in the world and since 2007; it has been modified to be adapted to Microsoft operating systems for Windows.
Adobe flash player:
The adobe flash player application is one that allows the user of any internet browser to view any piece of animation or even video that may be available for streaming on a website. This has been developed by Adobe based on the concepts of Macromedia which have been taken over by Adobe. The program is becoming ever so popular as the internet is now used more and more for video streamlining.
Trust
Questions
1) What does this meant by the following statements?
Trust is not associative (non-symmetric)
A description of trust being not associative implies that it does not apply to the same extent to two sides of a relationship. For instance, in a trade, the buyer can have greater trust in the seller, than the seller has in the buyer and vice versa. The disequilibrium of trust between two parties can imply that one of the parties can abuse the lack of trust.
Trust is not transitive
Trust is not transitive implies that trust cannot be transferred from one party to another then further on like in a chain. This is because if party A trust party B while party B trust party C, this cannot necessarily imply that party A will trust party C. Trust cannot be moved down the line as such.
Trust is always between exactly 2 parties
In most cases of human interaction, trust will be shared among two parties only. However, in the complex world we live in, such trust can be extended to groups of members in communities we share. Thus trust can exists among more than two parties, however, the level of trust will certainly not be the same.
Trust will involve either direct trust or recommender trust
Trust can be depicted as either direct trust or recommender trust. Direct trust implies that the trust emerges from a direct relationship or experience whereas a recommender trust relates to trust built around the experience of someone else’s word on a relationship or experience.
2a) Have a look at the following websites. What are some of the elements that have been incorporated to increase your trust in the sites? If there are also some aspects which decrease your level of trust describe them as well.
http://www.eBay.com.au
The website eBay has presented me with various features that increases my trust in it as a website and as a service and these include:
1) PayPal insurance
2) Sellers rating
3) Members recommendation
4) Advice services given by eBay
http://www.anz.com.au
Being a bank, the website of ANZ bank offers the maximum possible level of trust. Its use of various information protection procedures as well as extensive encryption to ensure that security is at its highest level during any visit on the website. This is why I would always use such a website without of any fear of abuse of trust.
http://www.thinkgeek.com
Thinkgeek is a website that looks fairly unorganized as compared to many other website. It does include many security features such as contact details and extensive description of its product. However, the design of the website makes me doubt if my details would receive extensive protection from any hacking if I were to transact there.
http://www.paypal.com.au
PayPal is according to me on of the safest website that is available on the web. Due to its extensive privacy features along with its insurance guarantee, any user of this website can transact over the website with absolute peace of mind. I trust it and would never hesitate to use it for any of my transactions.
2b) Find a web site yourself that you think looks untrustworthy.
http://www.bidrivals.com/au due to its lack of privacy information and security options.
1) What does this meant by the following statements?
Trust is not associative (non-symmetric)
A description of trust being not associative implies that it does not apply to the same extent to two sides of a relationship. For instance, in a trade, the buyer can have greater trust in the seller, than the seller has in the buyer and vice versa. The disequilibrium of trust between two parties can imply that one of the parties can abuse the lack of trust.
Trust is not transitive
Trust is not transitive implies that trust cannot be transferred from one party to another then further on like in a chain. This is because if party A trust party B while party B trust party C, this cannot necessarily imply that party A will trust party C. Trust cannot be moved down the line as such.
Trust is always between exactly 2 parties
In most cases of human interaction, trust will be shared among two parties only. However, in the complex world we live in, such trust can be extended to groups of members in communities we share. Thus trust can exists among more than two parties, however, the level of trust will certainly not be the same.
Trust will involve either direct trust or recommender trust
Trust can be depicted as either direct trust or recommender trust. Direct trust implies that the trust emerges from a direct relationship or experience whereas a recommender trust relates to trust built around the experience of someone else’s word on a relationship or experience.
2a) Have a look at the following websites. What are some of the elements that have been incorporated to increase your trust in the sites? If there are also some aspects which decrease your level of trust describe them as well.
http://www.eBay.com.au
The website eBay has presented me with various features that increases my trust in it as a website and as a service and these include:
1) PayPal insurance
2) Sellers rating
3) Members recommendation
4) Advice services given by eBay
http://www.anz.com.au
Being a bank, the website of ANZ bank offers the maximum possible level of trust. Its use of various information protection procedures as well as extensive encryption to ensure that security is at its highest level during any visit on the website. This is why I would always use such a website without of any fear of abuse of trust.
http://www.thinkgeek.com
Thinkgeek is a website that looks fairly unorganized as compared to many other website. It does include many security features such as contact details and extensive description of its product. However, the design of the website makes me doubt if my details would receive extensive protection from any hacking if I were to transact there.
http://www.paypal.com.au
PayPal is according to me on of the safest website that is available on the web. Due to its extensive privacy features along with its insurance guarantee, any user of this website can transact over the website with absolute peace of mind. I trust it and would never hesitate to use it for any of my transactions.
2b) Find a web site yourself that you think looks untrustworthy.
http://www.bidrivals.com/au due to its lack of privacy information and security options.
Online Auctions
Q1: eBay is one of the only major Internet "pure plays" to consistently make a profit from its inception. What is eBay's business model? Why has it been so successful?
Ebay’s model is a revolutionary one that allows buyers and sellers around the world to interact with each other in order to transact in various goods and services. It has emerged with an auction format which allows users to sell and bid for products they wish to trade and nowadays, it also allows straightforward selling also. It follows what is theoretically known as a broker method and it allows buyers and sellers to interact on its platform and charge a commission on usage. The popularity of ebay stems from its ease of use, its international reach, its user interaction which captivates many through its bidding system and also due to the fact that it allows people to make money off it.
Q2: Other major web sites, like Amazon.com and Yahoo!, have entered the auction marketplace with far less success than eBay. How has eBay been able to maintain its dominant position?
EBay’s dominance stems from the fact that it has been a pioneer for years in the field of online auctioning. In contrast, other sites like Amazon and yahoo have only entered the marketplace on a more experimental basis trying to copy a model set up by eBay. The reason for their lower success is that they do not have the expertise to compete with eBay and have not been totally engaged to follow the model completely. If you look at Amazon for instance, it is more involved in direct selling, hence necessitating an extensive infrastructure for procurement, storage and delivery which is a high cost. With eBay, the only cost is the website and anything else is done by the users who are both buyers and sellers and hence have to incur all other costs. Its auctioning system which allows the goods to be sold based purely on the forces of demand and supply allows the users to remain very interested. This is why eBay remains at the top.
Q3: What method does eBay use to reduce the potential for fraud among traders on its site? What kinds of fraud, if any, are eBay users most susceptible?
Ebay’s popularity is mainly based on the fact that all the users that interact on its website place great trust in the service it offers. They feel safe transacting on the website and a breach of such trust could be fatal to ebay. This is why the website always strive to offer the users maximum protection. This is done via the use of user accounts, whereby all users must identify themselves to a certain extent. They also use password and encryptions in order to ensure that user’s privacy is not breached. The addition of paypal and the protection it offers has greatly helped to boost security on the website. Finally, in order to help identify any fraudulent sellers or members, ebay has a system of feedback which allows everyone to rate sellers on the site. The risk inherent to ebay users is privacy breach, fraud and identity theft.
Q4: eBay makes every effort to conceptualize its users as a community (as opposed to, say "customers" or "clients"). What is the purpose of this conceptual twist and does eBay gain something by doing it?
EBay has always attempted to give its client of it being a community to its users due to the fact that it believes that its service brings users together in a way more meaningful than just a pure buyer seller relationship. This idea gives the users a better sense of belonging which means that they will tend to integrate eBay as an integral part of their lives. The fact that eBay has now innovated with more member interactions on its website; the idea of community is a major part of its functioning and this allows its business to keep flourishing.
Q5: eBay has long been a marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?
EBay’s popularity has been ever increasing and its number of users keeps on rising, making it as a business with a very solid customer base. Having a presence on eBay is like enjoying all the advantages of having an internet presence but this time, due to the potential number of buyers on the site, it offers even more possibility of boosting sales for these businesses. This is why they are now booming on EBay.
Q6. I have a few businesses, and I have used eBay for about 12 years on and off. Currently I have about 600 books listed on eBay (seller name ozrural). I stopped selling on eBay for a few years but they changed the rules this July and it is viable again (for me). What do you think changed?
EBay has adopted new rules regarding its payments options since July 2010. These extended payment options has aimed to increase the security of transacting on the website and promoted sales on the platform.
Ebay’s model is a revolutionary one that allows buyers and sellers around the world to interact with each other in order to transact in various goods and services. It has emerged with an auction format which allows users to sell and bid for products they wish to trade and nowadays, it also allows straightforward selling also. It follows what is theoretically known as a broker method and it allows buyers and sellers to interact on its platform and charge a commission on usage. The popularity of ebay stems from its ease of use, its international reach, its user interaction which captivates many through its bidding system and also due to the fact that it allows people to make money off it.
Q2: Other major web sites, like Amazon.com and Yahoo!, have entered the auction marketplace with far less success than eBay. How has eBay been able to maintain its dominant position?
EBay’s dominance stems from the fact that it has been a pioneer for years in the field of online auctioning. In contrast, other sites like Amazon and yahoo have only entered the marketplace on a more experimental basis trying to copy a model set up by eBay. The reason for their lower success is that they do not have the expertise to compete with eBay and have not been totally engaged to follow the model completely. If you look at Amazon for instance, it is more involved in direct selling, hence necessitating an extensive infrastructure for procurement, storage and delivery which is a high cost. With eBay, the only cost is the website and anything else is done by the users who are both buyers and sellers and hence have to incur all other costs. Its auctioning system which allows the goods to be sold based purely on the forces of demand and supply allows the users to remain very interested. This is why eBay remains at the top.
Q3: What method does eBay use to reduce the potential for fraud among traders on its site? What kinds of fraud, if any, are eBay users most susceptible?
Ebay’s popularity is mainly based on the fact that all the users that interact on its website place great trust in the service it offers. They feel safe transacting on the website and a breach of such trust could be fatal to ebay. This is why the website always strive to offer the users maximum protection. This is done via the use of user accounts, whereby all users must identify themselves to a certain extent. They also use password and encryptions in order to ensure that user’s privacy is not breached. The addition of paypal and the protection it offers has greatly helped to boost security on the website. Finally, in order to help identify any fraudulent sellers or members, ebay has a system of feedback which allows everyone to rate sellers on the site. The risk inherent to ebay users is privacy breach, fraud and identity theft.
Q4: eBay makes every effort to conceptualize its users as a community (as opposed to, say "customers" or "clients"). What is the purpose of this conceptual twist and does eBay gain something by doing it?
EBay has always attempted to give its client of it being a community to its users due to the fact that it believes that its service brings users together in a way more meaningful than just a pure buyer seller relationship. This idea gives the users a better sense of belonging which means that they will tend to integrate eBay as an integral part of their lives. The fact that eBay has now innovated with more member interactions on its website; the idea of community is a major part of its functioning and this allows its business to keep flourishing.
Q5: eBay has long been a marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?
EBay’s popularity has been ever increasing and its number of users keeps on rising, making it as a business with a very solid customer base. Having a presence on eBay is like enjoying all the advantages of having an internet presence but this time, due to the potential number of buyers on the site, it offers even more possibility of boosting sales for these businesses. This is why they are now booming on EBay.
Q6. I have a few businesses, and I have used eBay for about 12 years on and off. Currently I have about 600 books listed on eBay (seller name ozrural). I stopped selling on eBay for a few years but they changed the rules this July and it is viable again (for me). What do you think changed?
EBay has adopted new rules regarding its payments options since July 2010. These extended payment options has aimed to increase the security of transacting on the website and promoted sales on the platform.
Sunday, October 3, 2010
Introduction to Digital Automata
1) Check this link to my ‘intelligent’ cybertwin which I also mentioned in the Powerpoint. You may like to create your own cybertwin as well. The more you 'train' your twin, the better the responses will be. While it is just a fun exercise, think of the opportunities. Imagine if we had a cybertwin that could answer your questions about the course. Or perhaps a shopping assistant?
Having a cyber twin is just amazing. Seeing that has made me realize how fast the electronic world is progressing and that perhaps the things that we see in science fiction movies are not totally false at all. It was astonishing to see how much a machine can replicate the patterns of a real human being. It is scary to think of it, especially if you think of movies where machines take over the world.
2) Write a one paragraph describing the Turing test and another paragraph describing an argument against the Turing Test, known as the about the Chinese room.
According to Wikipedia, the Turing test is a test has been developed as one of the major concepts in the philosophy of artificial intelligence as proposed by Alan Turing (1950). The test originates from a paper he published called "Computing Machinery and Intelligence" and its goal was to determine whether or not computers are able to demonstrate show intelligence. The test comprises a discussion by a human subject with both a computer and a human being and it attempts to discern signs of intelligence in the computer by analyzing its communication patterns.
A counter argument to the Turing test is the Chinese room theory which has been developed by John Searle in his paper “Minds, Brains and Programs" published in the 1980s. It states that even if the computers creates responses that attempts to replicate the thinking pattern of a human being, it cannot fully adopt a self conscious mind which allows it to think. Therefore, due to such a limitation, the computers will never be made equal to the human brain.
3) Can virtual agents succeed in delivering high-quality customer service over the Web? Think of examples which support or disprove the question or just offer an opinion based on your personal experience.
Virtual agents are automated programs adopted by websites with the purpose of offering the customer a service that is rapid, accurate and of consistent standards. This implies that by using the agent, the customer is given the impression that they are being looked after personally and have their queries answered in a satisfactory manner. This allows the provider of such agents to save on costs of employing agents while maintaining a consistent level of service as well as eliminating any lags in the service. However, being a human being, the customer will always have new questions or more personal issues and this is something that I believe is outside the capabilities of the virtual agents. Therefore, they need human support in order to be complete.
Reference:
1. Wikipedia (2010) Turing Test retreieved on 26th September 2010 from http://en.wikipedia.org/wiki/Turing_test
2. Wikipedia (2010) Chinese Room retrieved on 26th September 2010 from http://en.wikipedia.org/wiki/Chinese_room
Having a cyber twin is just amazing. Seeing that has made me realize how fast the electronic world is progressing and that perhaps the things that we see in science fiction movies are not totally false at all. It was astonishing to see how much a machine can replicate the patterns of a real human being. It is scary to think of it, especially if you think of movies where machines take over the world.
2) Write a one paragraph describing the Turing test and another paragraph describing an argument against the Turing Test, known as the about the Chinese room.
According to Wikipedia, the Turing test is a test has been developed as one of the major concepts in the philosophy of artificial intelligence as proposed by Alan Turing (1950). The test originates from a paper he published called "Computing Machinery and Intelligence" and its goal was to determine whether or not computers are able to demonstrate show intelligence. The test comprises a discussion by a human subject with both a computer and a human being and it attempts to discern signs of intelligence in the computer by analyzing its communication patterns.
A counter argument to the Turing test is the Chinese room theory which has been developed by John Searle in his paper “Minds, Brains and Programs" published in the 1980s. It states that even if the computers creates responses that attempts to replicate the thinking pattern of a human being, it cannot fully adopt a self conscious mind which allows it to think. Therefore, due to such a limitation, the computers will never be made equal to the human brain.
3) Can virtual agents succeed in delivering high-quality customer service over the Web? Think of examples which support or disprove the question or just offer an opinion based on your personal experience.
Virtual agents are automated programs adopted by websites with the purpose of offering the customer a service that is rapid, accurate and of consistent standards. This implies that by using the agent, the customer is given the impression that they are being looked after personally and have their queries answered in a satisfactory manner. This allows the provider of such agents to save on costs of employing agents while maintaining a consistent level of service as well as eliminating any lags in the service. However, being a human being, the customer will always have new questions or more personal issues and this is something that I believe is outside the capabilities of the virtual agents. Therefore, they need human support in order to be complete.
Reference:
1. Wikipedia (2010) Turing Test retreieved on 26th September 2010 from http://en.wikipedia.org/wiki/Turing_test
2. Wikipedia (2010) Chinese Room retrieved on 26th September 2010 from http://en.wikipedia.org/wiki/Chinese_room
Digital markets
Question 1
a) What experiences have you had with shopping online?
I have never been involved with much online shopping but in the rare instances that I have done so, it was mainly to book flight tickets and also to buy some stuff from e-bay. I was not too keen on using this method due to the risk of having my details hacked into. However, I must admit that the comfort that it offers is worth it when shopping otherwise is time consuming.
b) Describe a good experience.
I have had a lot of good experiences while doing my shopping online. However one that stands out from all others is when I went to purchase my last trip around Australia online. The website that I have visited had all kinds of holiday experiences that could do with various price range, offering me great inconvenience.
c) What did you like about the online store you used?
The online store offered a great deal of convenience and a huge variety both in terms of product, quality and price. This is a true model of a one stop shop. In addition the payment method was completely safe with the website having the recognition from online payment protection agencies.
d) Describe a bad experience.
There was that one time when I wanted to buy some cheap household equipments on a website, they wanted me to register to their website and give my email address before completing the purchase. This was not even an option and after selecting my products and being ready for payment, it told me that my email was invalid, although I use it everyday. Eventually, it did not accept my purchase and I could not buy the goods, leaving me frustrated.
e) What problems did you have with the online store?
It was too rigid, putting barriers in the purchasing process that prevents the customer to complete the transaction. In addition to that, forcing the customer to give such details feels like an invasion of privacy.
f) What features make an online store more appealing?
The ease of access to it, its lower prices and its facilities for navigation
g) What features make an online store less appealing?
Bugs, lack of safety over the payment, difficult to navigate and too many processes in order to complete the transaction.
h) Should we expect to see the prices of goods and services rise or fall due to the migration of consumers online?
A movement to consumers online implies a far better product reach for consumers and competition will rise in all markets. Therefore, in order to remain profitable, the prices will eventually need to fall if stores still want to make sales.
Question 2
a) The dispersion of prices (that is, the spread between the lowest and highest price for a particular product) will narrow.
The advent of online stores means that customers will get a far better reach to all kinds of products and are better able to judge prices and will always buy at the cheapest prices. This implies that the prices for similar products will have to converge as customers become more informed.
b) The importance of brand names will decrease.
Brand names are a major factor in differentiating products in the eyes of the customer. Even if the web allows us to buy the same type of products at lower prices, loyalty to brand name will always remain a drive for customers to purchase. For instance, no matter how many type of shoes there are in the market, the brand Nike will always remain a high value brand with a devoted section of the market always purchasing the brand.
c) Price competition will make all products cheaper.
As customers can get better reach of many products around the planet, price competition will eventually be driving prices for all types of goods and services down. However, it price competition is not the only factor that matters in determining prices. Customers are also motivated by quality, brands and non price competition, thus although some goods may get cheaper with price competition. It would be wrong to think that all products will change this way.
d) Digital markets will become dominated by a handful of mega-sites, like Amazon.com.
Digital markets will of course be dominated by a few giants like Amazon.com due to the popularity of those giants. These sites have mastered the market really well and have developed all the criteria necessary to give the customers the best possible shopping experience. In addition to that, their status and resources at their disposal enable them to react to the dynamism of the market, hence making their chances of survival better. However, this does not mean that small sites cannot flourish, new ideas come everyday, and I see no reason to see why this should end.
e) How do you think the balance of power between buyer’s and seller’s will change?
With the digital markets empowering the customers with greater reach to various suppliers and being better informed about price, quality and market development. This I believe will shift the balance of power in favour of the buyer, however, how far is still to be determined.
f) Prices are clustered online.
Prices will tend to get clustered online due to the high level of price competition. This is because all sellers will try to match the best available price in order to sell. However, this will not be the case in all markets because product differentiation.
g) Online prices are elastic. ( i.e. immune to change up and down with demand)
Due to the fact that customers can access a far greater amount of products than in the real physical world, the customers will buy at the cheaper price, if the products are identical. Therefore demand will be very responsive to price changes hence making the statement that online prices are elastic a true one.
h) Online prices are generally transparent (the extent to which prices for a given product or service are known by buyers in the marketplace.).
Online prices are transparent because the markets are accessible by the click of the mouse. Hence customers are fully aware of the different prices charged by different sellers. The only products that this might not apply might be highly specialized products where clients might need passwords to access the product.
Question 3
a) What types of m-commerce services does your cell phone provider offer?
My cell phone provider is Optus. It offers a wide range of m-commerce services through its Optus Zoo portal. It allows me to manage my options on my mobile and it offers me products like mobile TV, news and sport updates, social networking, games and programs.
b) Which of these services do you use?
My favourite services will have to be between news updates and the social networking facilities. With social networking facilities I can stay in touch with my family and friends on the go.
c) What types of transactions do you perform through your cell phone or other wireless device?
The only transaction that I do on my mobile phone besides communicating is to buy games for my mobile phone against my mobile phone credit. Although it offers great convenience, I am still not comfortable to give my credit card details or my bank details on my mobile phone internet due to risk of hacking.
d) What types of transactions would you like to perform, but are currently unable to?
I would like to get more possibilities to use my phone to use platforms like eBay and bidding programs. However, with the development of the iphones with its extensive range of applications, this is becoming a reality. It allows people to have countless applications each giving more options than the last.
e) What is your opinion of wireless advertising/mobile marketing?
With the development of the Iphone by Apple, the mobile technology has taken new proportions. The Iphone has the possibility of offering a variety of applications that use the internet to operate and lots of the applications that are free are very popular with its users and some sellers use it as a platform to promote their products. In contrast, text message advertising has a lot of progress to make to obtain the desired effects.
a) What experiences have you had with shopping online?
I have never been involved with much online shopping but in the rare instances that I have done so, it was mainly to book flight tickets and also to buy some stuff from e-bay. I was not too keen on using this method due to the risk of having my details hacked into. However, I must admit that the comfort that it offers is worth it when shopping otherwise is time consuming.
b) Describe a good experience.
I have had a lot of good experiences while doing my shopping online. However one that stands out from all others is when I went to purchase my last trip around Australia online. The website that I have visited had all kinds of holiday experiences that could do with various price range, offering me great inconvenience.
c) What did you like about the online store you used?
The online store offered a great deal of convenience and a huge variety both in terms of product, quality and price. This is a true model of a one stop shop. In addition the payment method was completely safe with the website having the recognition from online payment protection agencies.
d) Describe a bad experience.
There was that one time when I wanted to buy some cheap household equipments on a website, they wanted me to register to their website and give my email address before completing the purchase. This was not even an option and after selecting my products and being ready for payment, it told me that my email was invalid, although I use it everyday. Eventually, it did not accept my purchase and I could not buy the goods, leaving me frustrated.
e) What problems did you have with the online store?
It was too rigid, putting barriers in the purchasing process that prevents the customer to complete the transaction. In addition to that, forcing the customer to give such details feels like an invasion of privacy.
f) What features make an online store more appealing?
The ease of access to it, its lower prices and its facilities for navigation
g) What features make an online store less appealing?
Bugs, lack of safety over the payment, difficult to navigate and too many processes in order to complete the transaction.
h) Should we expect to see the prices of goods and services rise or fall due to the migration of consumers online?
A movement to consumers online implies a far better product reach for consumers and competition will rise in all markets. Therefore, in order to remain profitable, the prices will eventually need to fall if stores still want to make sales.
Question 2
a) The dispersion of prices (that is, the spread between the lowest and highest price for a particular product) will narrow.
The advent of online stores means that customers will get a far better reach to all kinds of products and are better able to judge prices and will always buy at the cheapest prices. This implies that the prices for similar products will have to converge as customers become more informed.
b) The importance of brand names will decrease.
Brand names are a major factor in differentiating products in the eyes of the customer. Even if the web allows us to buy the same type of products at lower prices, loyalty to brand name will always remain a drive for customers to purchase. For instance, no matter how many type of shoes there are in the market, the brand Nike will always remain a high value brand with a devoted section of the market always purchasing the brand.
c) Price competition will make all products cheaper.
As customers can get better reach of many products around the planet, price competition will eventually be driving prices for all types of goods and services down. However, it price competition is not the only factor that matters in determining prices. Customers are also motivated by quality, brands and non price competition, thus although some goods may get cheaper with price competition. It would be wrong to think that all products will change this way.
d) Digital markets will become dominated by a handful of mega-sites, like Amazon.com.
Digital markets will of course be dominated by a few giants like Amazon.com due to the popularity of those giants. These sites have mastered the market really well and have developed all the criteria necessary to give the customers the best possible shopping experience. In addition to that, their status and resources at their disposal enable them to react to the dynamism of the market, hence making their chances of survival better. However, this does not mean that small sites cannot flourish, new ideas come everyday, and I see no reason to see why this should end.
e) How do you think the balance of power between buyer’s and seller’s will change?
With the digital markets empowering the customers with greater reach to various suppliers and being better informed about price, quality and market development. This I believe will shift the balance of power in favour of the buyer, however, how far is still to be determined.
f) Prices are clustered online.
Prices will tend to get clustered online due to the high level of price competition. This is because all sellers will try to match the best available price in order to sell. However, this will not be the case in all markets because product differentiation.
g) Online prices are elastic. ( i.e. immune to change up and down with demand)
Due to the fact that customers can access a far greater amount of products than in the real physical world, the customers will buy at the cheaper price, if the products are identical. Therefore demand will be very responsive to price changes hence making the statement that online prices are elastic a true one.
h) Online prices are generally transparent (the extent to which prices for a given product or service are known by buyers in the marketplace.).
Online prices are transparent because the markets are accessible by the click of the mouse. Hence customers are fully aware of the different prices charged by different sellers. The only products that this might not apply might be highly specialized products where clients might need passwords to access the product.
Question 3
a) What types of m-commerce services does your cell phone provider offer?
My cell phone provider is Optus. It offers a wide range of m-commerce services through its Optus Zoo portal. It allows me to manage my options on my mobile and it offers me products like mobile TV, news and sport updates, social networking, games and programs.
b) Which of these services do you use?
My favourite services will have to be between news updates and the social networking facilities. With social networking facilities I can stay in touch with my family and friends on the go.
c) What types of transactions do you perform through your cell phone or other wireless device?
The only transaction that I do on my mobile phone besides communicating is to buy games for my mobile phone against my mobile phone credit. Although it offers great convenience, I am still not comfortable to give my credit card details or my bank details on my mobile phone internet due to risk of hacking.
d) What types of transactions would you like to perform, but are currently unable to?
I would like to get more possibilities to use my phone to use platforms like eBay and bidding programs. However, with the development of the iphones with its extensive range of applications, this is becoming a reality. It allows people to have countless applications each giving more options than the last.
e) What is your opinion of wireless advertising/mobile marketing?
With the development of the Iphone by Apple, the mobile technology has taken new proportions. The Iphone has the possibility of offering a variety of applications that use the internet to operate and lots of the applications that are free are very popular with its users and some sellers use it as a platform to promote their products. In contrast, text message advertising has a lot of progress to make to obtain the desired effects.
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