Bài giảng E-commerce business, technology, society - Chapter 11: Social Networks, Auctions, and Portals

E-commerce Kenneth C. LaudonCarol Guercio Traverbusiness. technology. society.seventh editionCopyright © 2011 Pearson Education, Inc.E-commerce: Business. Technology. Society.Copyright © 2011 Pearson Education, Inc.Chapter 11: Social Networks, Auctions, and PortalsCopyright © 2010 Pearson Education, Inc.Slide 11-*Chapter 11Social Networks, Auctions, and PortalsCopyright © 2011 Pearson Education, Inc.Copyright © 2011 Pearson Education, Inc.Social Network FeverSpreads to the ProfessionsClass DiscussionHow has the growth of social networks enabled the creation of more specific niche sites?What are some examples of social network sites with a financial or business focus?Describe some common features and activities on these social network sites.What features of social networks best explain their popularity?Slide 11-*Copyright © 2011 Pearson Education, Inc.Social Networks and Online CommunitiesInternet began as community building technology for scientists, researchersEarly communities limited to bulletin boards, newsgroups; e.g. the Well2002: Mobile Internet devices, blogs, sharing of rich media began new era of social networksSocial networks one of most common Internet activitiesSlide 11-*Copyright © 2011 Pearson Education, Inc.What Is an Online Social Network?Online area where people who share common ties can interactParticipants do not necessarily share goalsPortals and social networks: Moving closer togetherPortals adding social network features Community sites adding portal-like servicesSearchingNewsE-commerce servicesSlide 11-*Copyright © 2011 Pearson Education, Inc.The Growth of Social Networks and Online CommunitiesTop 10 social networks account for over 90% social networking activityFacebook users: Over 54% are 35+Unique audience size:Social networks: 175 millionTop 4 search engines: 510 millionAnnual advertising revenueSocial network sites: $1.6 billionTop 4 search engines: $14 billionSlide 11-*Copyright © 2011 Pearson Education, Inc.Top 10 Social Network Sites, 2010Slide 11-*SOURCES: Based on data from eMarketer, 2010; Hitwise, 2010Figure 11.1, Page 714Copyright © 2011 Pearson Education, Inc.Types of Social Networksand Their Business ModelsEarly social network sites relied on subscriptionsToday primarily advertisingGeneral communities: Offer opportunities to interact with general audience organized into general topicsAdvertising supported by selling ad space on pages and videosPractice networks: Offer focused discussion groups, help and knowledge related to area of shared practiceMay be profit or non-profit; rely on advertising or user donationsSlide 11-*Copyright © 2011 Pearson Education, Inc.Types of Social Networksand Their Business Models (cont’d)Interest-based social networks: Offer focused discussion groups based on shared interest in some specific subjectUsually advertising supportedAffinity communities: Offer focused discussion and interaction with other people who share same affinity (self or group identification)Advertising and revenues from sales of productsSponsored communities: Created by government, non-profit or for-profit organizations for purpose of pursuing organizational goalsSlide 11-*Copyright © 2011 Pearson Education, Inc.Social Network Featuresand TechnologiesProfilesFriends networkNetwork discoveryGames, widgets, appsFavoritesE-mailStorageInstant messagingMessage boardsOnline pollingChatDiscussion groupsExperts onlineMembership management toolsSlide 11-*Copyright © 2011 Pearson Education, Inc.Insight on TechnologySocial Operating Systems: Facebook vs. GoogleClass DiscussionWhat does Mark Zuckerberg, Facebook’s CEO, mean by “social operating system?”Why have Facebook applications become so popular? Do they have any limitations?How has Google responded? Which core functions can their programs perform?What are the advantages of Google’s software over “closed worlds” like Facebook?Slide 11-*Copyright © 2011 Pearson Education, Inc.Online AuctionsOnline auction sites among the most popular consumer-to-consumer sites on the InterneteBay: Market leaderSeveral hundred different auction sites in U.S. aloneEstablished portals and online retail sites increasingly are adding auctions to their sitesSlide 11-*Copyright © 2011 Pearson Education, Inc.Defining and Measuring the Growth of Auctions and Dynamic PricingDynamic pricingAirline tickets, coupons, college scholarshipsPrices based on demand characteristics of customer and supply situation of sellerMany types of dynamic pricingBundlingTrigger pricingUtilization pricingPersonalization pricingSlide 11-*Copyright © 2011 Pearson Education, Inc.Defining and Measuring the Growth of Auctions and Dynamic Pricing (cont’d)Auctions: Type of dynamic pricingC2C auctionsAuction house an intermediary$25 billion gross revenue 2009B2C auctionsBusiness owns assets; often used for excess goods$19 billion gross revenue 2009Can be used to allocate, bundle resourcesExpected to grow 5% -10% annually through 2013Slide 11-*Copyright © 2011 Pearson Education, Inc.Benefits of AuctionsLiquidityPrice discoveryPrice transparencyMarket efficiencyLower transaction costsConsumer aggregationNetwork effectsMarket maker benefitsNo inventory or fulfillment activitiesSlide 11-*Copyright © 2011 Pearson Education, Inc.Risks and Costs of Auctions for Consumers and BusinessesDelayed consumption costsMonitoring costsPossible solutions include: Fixed pricingWatch listsProxy biddingEquipment costsTrust risksPossible solution—rating systemsFulfillment costsSlide 11-*Copyright © 2011 Pearson Education, Inc.Internet Auction BasicsDifferent from traditional auctionsLast much longer (usually a week)Variable number of bidders who come and go from auction arenaMarket power and bias in dynamically priced marketsNeutral: Number of buyers and sellers is few or equalSeller bias: Few sellers and many buyersBuyer bias: Many sellers and few buyersSlide 11-*Copyright © 2011 Pearson Education, Inc.Internet Auction Basics (cont’d)Price Allocation RulesUniform pricing rule: Multiple winners who all pay the same priceDiscriminatory pricing rule: Winners pay different amount depending on what they bidPublic vs. private informationPrices bid may be kept secret Bid riggingOpen marketsPrice matchingSlide 11-*Copyright © 2011 Pearson Education, Inc.Bias in Dynamically Priced MarketsSlide 11-*Figure 11.4, Page 727Copyright © 2011 Pearson Education, Inc.Types of AuctionsEnglish auctions:Single item up for sale to single sellerHighest bidder winsTraditional Dutch auction:Uses a clock that displays starting priceClock ticks down price until buyer stops itDutch Internet auction:Public ascending price, multiple unitsFinal price is lowest successful bid, which sets price for all higher biddersSlide 11-*Copyright © 2011 Pearson Education, Inc.Types of Auctions (cont’d)Name Your Own Price AuctionsUsers specify what they are willing to pay for goods or services and multiple providers bid for their businessPrices do not descend and are fixedGroup buying auctions (demand aggregators)Group buying of products at dynamically adjusted discount prices based on high volume purchasesTwo principlesSellers more likely to offer discounts to buyers purchasing in volumeBuyers increase their purchases as prices fallSlide 11-*Copyright © 2011 Pearson Education, Inc.Types of Auctions (cont’d)Professional service auctionsExample: Elance.comAuction aggregators (mega auctions)Use Web crawlers to search thousands of Web auction sites and accumulate information on products, bids, auction duration, etc.Unlicensed aggregators opposed by eBaySlide 11-*Copyright © 2011 Pearson Education, Inc.Table 11.7, p 733Slide 11-*Copyright © 2011 Pearson Education, Inc.Seller and Consumer Behavior at AuctionsSeller profit: Arrival rate, auction length, and number of units at auctionAuction prices not necessarily the lowestUnintended results of participating in auctions:Winner’s regretSeller’s lamentLoser’s lamentConsumer trust an important motivating factor in auctionsSlide 11-*Copyright © 2011 Pearson Education, Inc.Auction ProfitsSlide 11-*SOURCE: Vakrat and Seidmann, 1998.Figure 11.5, Page 744Copyright © 2011 Pearson Education, Inc.Insight on SocietySwoopo: Online Auction or Game of Chance?Class DiscussionWhat are the similarities of Swoopo to auctions? To gambling?Are there any ethical considerations posed by Swoopo’s business model?Is Swoopo essentially a deceptive experience? Why or why not?What other sites or online experiences contain deceptive elements?Slide 11-*Copyright © 2011 Pearson Education, Inc.When Auction Markets Fail:Fraud and Abuse in AuctionsMarkets fail to produce socially desirable outcomes in four situations:Information asymmetry, monopoly power, public goods, and externalities.Auction markets prone to fraudMost common: Failure to deliver, failure to payIn 2010, 10% Internet fraud complaints concern online auctionsSlide 11-*Copyright © 2011 Pearson Education, Inc.E-commerce PortalsMost frequently visited sites on WebOriginal portals were search enginesAs search sites, attracted huge audiencesToday provide:Navigation of the WebCommerceContent (owned and others’)Compete on reach and unique visitorsEnterprise portalsHelp employees find important organizational contentSlide 11-*Copyright © 2011 Pearson Education, Inc.Top 5 Portal/Search Engines in U.S.Slide 11-*SOURCE: Based on data from comScore, 2010Figure 11.5, Page 746Copyright © 2011 Pearson Education, Inc.Insight on BusinessThe Transformation of AOLClass DiscussionWhat types of decisions led to AOL’s decline in popularity?What posed the greatest competition to AOL?What are AOL’s current strategies? Are the new strategies valid? Do you think they will succeed? What is the business value of AOL?Slide 11-*Copyright © 2011 Pearson Education, Inc.Types of PortalsGeneral purpose portals: Attempt to attract very large general audience Retain audience by providing in-depth vertical content channelse.g. Yahoo, MSNVertical market portals: Attempt to attract highly focused, loyal audiences with specific interest in:Community (affinity group); e.g. iVillage.comFocused content; e.g. ESPN.comSlide 11-*Copyright © 2011 Pearson Education, Inc.Two General Types of Portals: General Purpose and Vertical Market PortalsFigure 11.6, Page 747Slide 11-*Copyright © 2011 Pearson Education, Inc.Portal Business ModelsISP services (AOL)Provide Web access, e-mail for monthly feeGeneral advertising revenueTenancy dealsFixed charge for number of impressions, exclusive partnerships, “sole providers”Commissions on salesSubscription feesCharging for premium contentApplications and gamesSlide 11-*Copyright © 2011 Pearson Education, Inc.Revenue per Customer and Market FocusFigure 11.7, Page 749Slide 11-*Copyright © 2011 Pearson Education, Inc.All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice HallCopyright © 2011 Pearson Education, Inc.