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Chapter 7:Virtual Communities (Social Networking Emerges (Social…
Chapter 7:Virtual Communities
Virtual Communities to social Networks
Online web communities
Companies make money
Virtual communities
Web/Online communities
people and business gathering place
Current forms
Web chat rooms
considerable social interaction
Usenet newsgroup
message posting areas on Usenets
Early virtual Communities
Bulletin board systems (BBS)
Early web communities
1985:WELL(whole earth lectronic link)
Forums involve Monthly fees
1995:Tripod virtual community
Social Networking Emerges
Social Networking sites
sic degrees(1997)
Linkedln
YouTube
Tribe.net
Friendster
Virtual Learning network
Moodle
Open source software
Idea-based social networking
Idea-based virtual communities
Idea based networking
Social Networking
Social shopping
Retailers embracing blogs
Finance B2B relationship between marketing and supply managers
Business used
CNN
Newspaper
Early blog focus on technology topics
2004:blogs used as potical networking tool
2008:all major candidates using blog
Weblogs (blogs)
Individual commentary on current event
Revenue models for social networking
1.The late 1990
the revenue creates by selling advertising
Fee based social networking
Google answer sites
Clue
Mixed revenue and fee for service social networking
some chargers fees for some services
monetizing
Advertising support social networking sites
smaller sites with specialized appeal
social networking sites
high visitor counts
second-wave advertising fees
1998
purchased and merger accrued
Revenue model for social networking sites(contd)
Microlending sites
function of clearing house for micro-lending activity
practice of lending very smalls amount of money
Internal social networking
save money(less paper)
Mobile commerce
Short messaging services
Allows mobile phone user to sent
short text message
Mobile Operating Systems
Smart phone operating system
Operating system modifications
Mobile apps
Common operating system emergence
Old U.S mobile phone company revenue strategy
companies moving to mobile commerce
phones global positioning satellite service
ONLINE AUCTION AND BUSINESSES
+Auction web site categories
General consumer auction
Specialty consumer auction
3.Business-to-business auction
+Varying opinions on categorizing consumer auction
-Business-to-business
-Consumer-to-consumer
-Consumer-to-business
A)General consumer auction
eBay
-registration required, seller fees, rating system
Seller risk
buyer use stolen credit card
Proxy bid
-bidder specifies maximum bid
-may cause bidding to rise rapidly
Most command auction format
: English
-seller may reserve price
: Dutch auction
(both required minimum bid increment)
buyer risk
-no item delivery
eBay store
-integrated into auction site
Future challenges to eBay
-must overcome lock-in effect
-example: Japanese general consumer auction
(Yahoo! First to enter market)
B) Specialty consumer auctions
Identify special-interest market target
example: JustBeads.com
C) Consumer reverse auction
reverse bid
-buyer will accepts lowerts offer
All these types of sites now closed
Priceline.com
-considered a seller-bid auction sites
-Priceline operates more as a liquidation broker
D) Group shopping site
also known as group purchasing site
seller post item with tentative price
result
-buyers force seller to reduce price.
disadvantages
-difficulty attracting seller's interest
successful sites
Groupon, livingSocial, Gilt
E) Business-to-business
two method
: liquidation specialists
-firm buyers for unusable items
: liquidation brokers
-firm that finds buyers for item
online auction
-logic intention of these inventory liquidation activities to a new more efficient channel
-example: Owens Corning purchases
potential disadvantages
-suppliers compete on price alone
potential advantages
-useful for nonstrategic commodity items with established quality standard
Mobile Payment Apps
Mobile wallets (Mobile phones functioning as credit cards)
Widespread credit card use in U.S has limited use of mobile phone payments
Online Auctions
Business opportunity perfect for the Web
Auction site revenue sources
Online auctions capitalize on Internet's strength
Auction Basics
From Babylon to the Roman Empire to Buddhists
Common activity of 17th century England
Auction :seller offering item for sale Bids
Bidder
Private Valuation
Auctioneer
Shill Bidder
AuctionTypes
English Auctions
Item sold the highest bidder
Also called Ascending-price auction
Open auction (open-outcry auction)
Minimum Bid
Reserve price (reserve)
Yankee auction
Seller drawback
Buyer drawback
Dutch auctions
Open auction by bidding starts at a high price
Also called Descending-price auctions
Seller offers number of similar item for sale
Common implementation
Often better for the selle
Quickly move large numbers of commodity items
Successful examples LookSmart stock repurchase
First-price sealed-bid auctions
First-price sealed-bid auction
Second-price sealed-bid auction
Commonly called Vickrey auctions
William Vickrey : 1996 Nobel Prize in Economics
Findings : Yields higher seller returns
Double auctions (Open-outcry)
Examples : Chicago Board of Trade auctions of commodity futures and stock options
Double auctions (either sealed-bid or open-outcry)
No item inspection before bidding
Double auctions
Buyers, sellers submit combined price-quantity bids
Reverse (seller-bid) auction
Occasionally operated for consumers
AUCTION-RELATED SERVICES
A) Escrow services
the indipendent party will holds the payment until buyer receives item
charges fees
-percent of item's cost
buyer's common concern
-seller reliability
example
Escrow.com
C) Auction software
1) sellers
-helps manage online auction
example: AuctionHawk and Vendio
2) buyers
-helps manage online auction
sniping software
place bid high enough to win
(
snipe
: act of placing winning bid at the last second)
example: Cricket Sniping Software site
B) Auction directory and information services
example: AuctionBytes
-publish e-mail newsletters
-online auction industry article
D) Auction consignment services
function
-handle transaction
-take item and create online auction for that item
main auction consignment business
-ePowerSellers
-iSold It
their target are people and small business who went to use online auction