CHAPTER 4 : E-Business Revenue Model

Creating an Effective Presence online

Identify Web Presence Goals

Making Web Presence with Brand Images

Not-for-Profit Organization

Revenue Models for Online Business

Web Catalog Revenue Models

mail order catalog models

expand traditional model

Fee-for-Content Revenue Mopdels

Legal,Academic, Business and Technical content

sell subscriptions and individual access rights to their journals and other publication online

ls expensive and more timely

more flexibility in how they access their subscription

Electronic books

sold on subscription basis

Online Music

generated from sale of individual songs or digital albums

Online Video

subscription or per-view fee

Fee-for-Transaction Revenue Models

Stock Brokerage Firms : Two rounds of Disintermediation

Insurance Brokers

Event Ticket

Online Banking and Financial Services

Travel

Automobile Sales

Real Estate and Mortgage Loans

Fee-for-Service Revenue Models

free based on the value of the service provided

companies offer Web services

online games

professional services

Fee for Many, Fee for a Few

same materials allow large producers to buy material at lower costs by ordering bulk

Advertising as a Revenue Model Elements

Advertising-Supported Revenue Models

broadcast network television in the US

stickiness of a Web

set of characteristic that marketers use to group visitor

Advertising-Supported Online Classified Ad Sites

to cover the costs of converting their print content to an online format and operating the Web site

Advertising-Supported Mixed Revenue Models

make most content available but do restrict the amount of free content

Changing Strategies : Revenue Models in Transition

Subscription To Advertising-Support Models

Advertising-Support to Advertising-Subscription Mixed Model

Advertising-Support to Fee-for-Service Model

Advertising-Support to Subscription Model

Multiple change to Revenue Model

Web Site Usability

How the Web is Different

mid 1990 conveyed basic information only

No market research conduct

market design to create an organizations presence

Meeting the Needs of Web Site Visitors

Varied motivation of Web site visitors

Making Web site accessible

Trust and Loyalty

Create relationship Value

good service lead to seller trust

satisfactory service builds customer loyalty

Usability testing

help meet web site goals

Avoid Web site frustration

simple site usability change

learn visitor needs

low cost compare than Web site design cost

Customer-Centric Web Site Design

Revenue Strategy Issues for Online Business

Channel Conflict and Cannibalization

Companies that have existing sales outlets and distribution Network

Strategies Alliances

two or more companies join forces

Luxury Goods Strategies

Overstock Sales Strategies

use outlet stores to sell their overstocks

Using Web to Connect with Customer

The Nature of Communication on the Web

Communication Modes

Personal Contact

One-to-One Communication Model

prospecting

Mass Media

One-to-Many Communication Model

Addressable Media

Many-to-One Communication Model

MAny-to-Many Communication Model

Floating topic