Page 189 - Electronic Commerce

Chapter 3

stickiness Web catalog revenue model
sticky Web directory
usability testing Web portal
164 virtual fitting rooms
virtual model

Review Questions

1. In one or two paragraphs, briefly describe two Web site features that are used by online
clothing retailers to help customers find products in the right styles, colors, or sizes for
them.
2. In one or two paragraphs, describe the changes that have occurred in movie distribution
since the Web became an important sales outlet for this medium.
3. Define the term “stickiness” as used in electronic commerce. In one or two paragraphs,
explain why it is important for advertising-supported Web sites to have this characteristic.
4. In about two paragraphs, explain the differences between general-interest portals and spe-
cialized portals. Include at least one example of a specialized portal in your answer.
5. In about 100 words, define “channel conflict” and describe how a consumer electronics
company that sells its products both in retail stores and online might deal with this issue.
6. In one or two paragraphs, define and distinguish between disintermediation and
reintermediation.
7. Many businesses offer free samples of their products or services to potential customers to
induce them to become customers. Write a paragraph in which you describe how this strat-
egy can be implemented online. Be sure to note how the amount of sampling that is likely
to be beneficial differs in the online environment and the physical world.
8. In general, custom-made luxury products sell better in physical stores than online because
the unique nature of each individual product is easier to evaluate in person. In about 100
words, explain why expensive jewelry, especially diamond jewelry, sells well online in an
apparent contradiction of this general tendency.
9. In about 100 words, compare the economics of producing digital goods with the economics
of producing physical goods.
10. In one or two paragraphs, describe steps a company might take to ensure that its Web site
created an impression consistent with its established image and brand reputation.
11. In about 100 words, describe the advantages and disadvantages of using the Web rather
than mass media outlets to communicate with customers.

Exercises
1. Assume you are looking to buy a tablet device to use at school. List five features or char-
acteristics that would be important for you to have in such a device. Using your list, write
about 100 words to describe the advantages and disadvantages of shopping online
(instead of in a physical retail store) for the tablet device. As you write your answer, you
might find it helpful to consider which of your desired features or characteristics would be
easier or more difficult to evaluate when shopping online.
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