STORE:

CANVAS IMAGE: PRICE: SIZE:
 20150404_150802 $22.00 14 by 14
 IMG_0873 $22.00 14 by 14
 IMG_20141014_222909 $23,00 14 by 14
 IMG_20150217_091736 $21.00 14 by 14
 IMG_0830 $22.00 14 by 14
 IMG_20141229_193522 $22.00 14 by 14
 IMG_20150618_095024 $24.00 14 by 14
 IMG_20150807_221923 $26.00 11 by 11
 IMG_20150323_173415 $20.00 14 by 14
 IMG_20150301_213933 $22.00 11 by 11

(Was unable to link a ecwid shopping cart to this wordpress, because e commerce plugins no longer work on the site). (I would have pasted the following links in this to activate the site): 

Product browser:

[ecwid id=”9330717″
categories_per_row=”3″
category_view=”grid”
search_view=”list”
grid=”3,3″ list=”10″ table=”20″
widgets=”productbrowser”]

Categories:

[ecwid id=”9330717″ widgets=”categories”]

Mini cart:

[ecwid id=”9330717″ widgets=”minicart” layout=”MiniAttachToProductBrowser”]

Search bar:

[ecwid id=”9330717″ widgets=”search”]

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Week 6 questions

Digital markets.

When you think of the term ‘market’ what comes to mind? I think of physical gatherings and exchange of food, products and service. It is a very sensory and close relationship with the sellers and people.

Question 1

a) What experiences have you had with shopping online? I have had good experiences with the likes of Ebay, Mura boutique, Our botanicals and in general. I have always had reliable service and parcels have always arrived in satisfactory condition.

b) Describe a good experience. Once I ordered some products from Brown Cow tanning and they provided a very fast shipping for their product, a reasonable price and was an ethical business that sold products that were vegan and non evasive to the environment. They individually wrap their products and hand write the order in a card, encouraging you to keep buying from their online site. They included a free product for ordering with them for the first time.

c) What did you like about the online store you used? It was easy to navigate, simplistic layout and attractive fonts and pictures. The buying process only had a few steps to process your purchase and had a reliable feel, where I felt safe leaving card details on the site.

d) Describe a bad experience. I have not had any bad experiences with online stores, there was one site that sold basketball shoes (supposedly meant to be real brands alike: Kobe shoes), they were actually fake branded shoes with very low quality. The site was overloaded with pictures, had a weird layout and did not send verification emails until days later. I actually forwarded them too much money (luckily they refunded) but it was not a standard shopping cart at all.

e) What problems did you have with the online store? Answered above.

f) What features make an online store more appealing? Simplistic layout, design and font. Relevant pictures and easy to operate. Good feedback and forums.

g) What features make an online store less appealing? Confusing layout, difficult shopping cart, poor layout and overall design,

h) Should we expect to see the prices of goods and services rise or fall due to the migration of consumers online?

When a business is based online that generally means there will larger amounts of stock available for consumers thus meaning less fluctuation in prices. Businesses can afford to have a lower price with bundles or large orders, rather than at a physical market stall. Customers who use online services, are able to choose from a variety of sellers, thus prices must be competitive to stay active in sales. Nearly all offline businesses have converted to online businesses so that they can have more sales. Prices will still fluctuate but often decrease online because large amounts of stock being bought by businesses can mean discounts at lower prices for consumers.

Marketplace elements include:
Communications infrastructure
Structured environment
Transaction mechanism
Delivery

Ease of communication is both a strength and a weakness because of the huge volume of information and excess noise such as SPAM

(Understanding Digital Markets). indicate if you agree with them or not.

Question 2

a) The dispersion of prices (that is, the spread between the lowest and highest price for a particular product) will narrow. I think that initially there will be a low contrast in prices for particular products, once the market for the product expands I expect that larger companies will be able to provide cheaper products than smaller competitors. Once they product match what the small company is providing, prices will have high contrast between those who can produce them cheaply.

b) The importance of brand names will decrease. I disagree, I think there is a genuine link between a brand and a consumer and this is outlined through it’s brand. The brand name must represent the culture of the organisation, a simple name will penetrate the consumer market not just a number.

c) Price competition will make all products cheaper. As they speak about low cost price equilibrium I think that products will become cheaper and cheaper until a wider organisation is able to minimise product producing cost with innovation.

d) Digital markets will become dominated by a handful of mega-sites, like Amazon.com. Initially yes, but the internet is a vast place and I think it has the potential to provide more competition for online stores.

e) How do you think the balance of power between buyer’s and seller’s will change? Buyers obviously have the power to research between stores online. They are prepared to find the best deal and to not buy a product if it is outrageously costed on one site, they will switch to another. Sellers will have more market power if their site is too attract a larger pool of customers.

f) Prices are clustered online. I think that prices will fluctuate between online businesses initially.

g) Online prices are elastic. ( i.e. immune to change up and down with demand). Online prices will not be excluded from price elasticity, the more popular they are the more consumers will exercise their research rights or buy from someone else or at a physical store.

h) Online prices are generally transparent (the extent to which prices for a given product or service are known by buyers in the marketplace.). They will continue to be so.

I have also included some key points below which may help your understanding.

Market characteristics
In any given marketplace, a buyer who is seeking out a particular product or service has to undergo a search to understand the various offerings. Who’s selling what? How do the products of different sellers vary along dimensions such as quality or price? And search takes time, so that there’s a cost incurred by the buyer to discover what is available in the marketplace in any given segment.

Online may also increase or decrease switching costs. It can be expensive for large businesses to compete with say AMAZON, but it may be for smaller niche businesses eg a seller specialising in Classic Car books.

Sources of price dispersion on the Internet

1) The first, and most obvious, source of price dispersion online is product heterogeneity. If the products being compared are different in some way, then it should not be surprising if their prices are also different. You can take this a step further and note that even when the products are physically identical, they are not always good substitutes. For instance, they may be available in different locations or time periods — a bottle of wine in a supermarket is not a perfect substitute for the identical bottle in a fine restaurant. It is easy to extend this kind of argument to goods that are accompanied by different levels of customer service, advertising or even customer awareness. For most purposes, a reasonable approach is to consider product heterogeneity as relating only to the tangible or essential characteristics of the product. These characteristics include differences in the product’s physical characteristics or differences in retailer services that must be consumed with the product(e.g., return policies).

2) Product information used to evaluate homogeneous goods is typically separable from the physical product. Just providing better information on a homogeneous good should not provide a retailer with strategic advantage. It is possible, however, that product information is a useful strategic tool because of substantial search costs or switching costs in Internet markets. Customers may be drawn to a site because of its outstanding product information and then choose to purchase from that site because of the high search costs to find the good (at a potentially lower price) at another site. Offering a compelling shopping experience may also effect competition in Internet markets (Novak, Hoffman, and Yung 1998). Web design may influence consumer purchase behaviour.

3) Awareness: The three critical success factors for conventional retailers are sometimes said to be location, location, and location. Geography largely determines the set of potential customers that know of a store and that make purchases there. Many Internet retailers aggressively purchase premium locations on Internet “portals” and spend hundreds of millions of dollars on advertising through online, print and traditional broadcast media. This suggests that customer awareness may be just as important in online markets as physical real estate is in conventional markets. The importance of awareness can be traced to the high search costs to locate retailers in Internet markets. These search cost result from the sheer volume of information available. At times, searching for retailers online takes the form of the proverbial search for a “needle in a haystack.” While some retailers such as Amazon.com have used strategic marketing and large advertising budgets to develop high brand awareness, it can be difficult to locate other, more obscure, retailers among the millions of Internet sites available online.

4) Product information may also serve as a signal of trust and reliability in online markets. Retailer awareness is, in part, reflected by a Xerox study that found that just 5% of the websites online receive nearly 75% of the hits (Adamic and Huberman 1999). Consumers may be willing to pay a premium to purchase a product from a retailer who they trust in favor of an unknown retailer. Therefore, heterogeneity in retailer trust may lead to price dispersion in online markets.

5) Studies suggest that there are a variety of ways retailers may be able to signal trust in an online world including online communities, reputation systems, consumer reviews, and links from other trusted sites

6) Switching costs on the Internet can also be an incentive or disincentive for a customer to change allegiance to a particular site. For example, switching costs may be created through familiarity with a retailer’s site. Given the differences in interface design among Internet retailers, a customer who was familiar with an Internet retailer’s interface well may face a switching cost when shopping at a new retailer whose interface is unfamiliar. On the other hand if two sites are very similar, the switching cost would be low.

Some competitive features of eCommerce may include

Ubiquity (market space, transaction costs)

Global reach

Universal standards (market entry costs, search costs)

Richness

Interactivity

Information density (price transparency, cost transparency, price discrimination)

Personalization/Customization

Key concepts include

Information symmetry

Menu costs

Dynamic pricing

Disintermediation

New markets have also emerged for digital products. These include:

Digital goods: for example software delivered over a digital network.

Internet business models (pure-play, clicks-and-mortar)

Communication and community (banner ads, pop-up ads, social networking sites)

Digital content, entertainment, and services (such as podcasting, digital hosting services and syndicators)

The main categories of eCommerce are:

Business-to-consumer (B2C)

Business-to-business (B2B)

Consumer-to-consumer (C2C)

Mobile commerce (m-commerce)

G (Government) can also be substituted for (B) in the categories above. C2B is becoming more common particularly price comparison sites, but there is still a lot of resistance from businesses reluctant to get into price bidding wars.

Business-to-Business Electronic Commerce:

There is an opportunity for new efficiencies and relationships. Examples include:

Electronic data interchange (EDI)

Procurement/E-procurement

Private industrial networks

Private exchanges

Net marketplaces

Exchanges

M-Commerce Services and Applications

Mobile commerce has been slow to take off in Australia, partly because of high data costs. The introduction of the iPhone and other smart phones will probably see a huge increase in M-Commerce in the new few years. There is an increasing amount of free and commercial content already available to Australian mobile subscribers. In many countries it M-Commerce is regularly used for-

Mobile bill payment

Content and products

Banking and financial services

Wireless advertising

Location-based services

Games and entertainment

Question 3

a) What types of m-commerce services does your cell phone provider offer?

  • Financial services, which includes mobile banking (when customers use their handheld devices to access their accounts and pay their bills) as well as brokerage services, in which stock quotes can be displayed and trading conducted from the same handheld device. EG Commbank, netbank savers
  • Telecommunications, in which service changes, bill payment and account reviews can all be conducted from the same handheld device. EG Telstra contact on #125#
  • Service/retail, as consumers are given the ability to place and pay for orders on-the-fly. EG Scoopon services for travel or service vouchers
  • Information services, which include the delivery of financial news, sports figures and traffic updates to a single mobile device.”sourced from:  (http://searchmobilecomputing.techtarget.com/definition/m-commerce).

b) Which of these services do you use? Commbank, Telstra, Scoopon, Google plus

c) What types of transactions do you perform through your cell phone or other wireless device? Commbank, paypal and ebay services.

d) What types of transactions would you like to perform, but are currently unable to? I generally like to visit sites such as booking.com or certain retail stores online so I know that I have receipts etc.

e) What is your opinion of wireless advertising/mobile marketing? It’s inevitable. It will be the major form of adverts once the rest of the world catches up.

Mobile challenges currently include

Awkwardness of keyboards and screens

Data transfer speeds

Cost

Limited memory and power supplies on devices

Content

Electronic Payment Methods

eCommerce payment methods have excluded many potential users from engaging in eCommerce. This situation is improving but it still needs a lot of improvement. Payment methods include:

Digital credit card payment systems – common, but many consumers do not have a credit card. This prompted the introduction of Debit cards (Visa, Mastercard) in recent years

Digital wallet – The digital wallet was first conceived as a method of storing various forms of electronic money (e-cash), but with little popularity of such e-cash services, the digital wallet has evolved into a service that provides internet users with a convenient way to store and use online shopping information. As up to two thirds of purchases are abandoned before final checkout digital wallet technology individual allows searches on a site to be saved.

Micropayment – for very small payments such as fares. The main issue is how to charge the customer, without incurring credit card fees.

Accumulated balance digital payment systems – like a City Link eTag for toll payments.

Stored value payment systems – enables consumers to make instant online payments based on value stored in a digital account.

Digital cash – not common but one good example is Hong Kong’s Octopus card system, which started as a transit payment system and has grown into a widely used electronic cash system.

Peer-to-peer payment systems – Paypal is the best known. PayPal operates in 190 markets, and it manages over 175 million accounts (70 million active accounts)

Digital checking payment systems – Electronic version of a paper check, including date, payee name, payment amount, and signature. Electronic checks (e-checks), currently being tested by several large banks, are meant for paying bills, transferring funds, or any purpose where a paper check is used today. Paypal calls an eCheque a transaction where payment is withdrawn from a user’s bank account rather from a Paypal credit balance or credit card.

Electronic billing presentment and payment systems – Bpay is a good Australian example.

Further research
Chris Anderson, the editor of Wired Magazine, wrote a book called ‘The Long Tail’. Anderson’s theory of ‘The Long Tail’ has been widely acclaimed, but there has also been recent research which questions it’s veracity. Conduct your own research about ‘The Long Tail’, and state your opinion in favour or against the theory. It is also worth reading about Pareto’s Principle, the 80/20 Rule. How do the two relate to each other?
Revision Crossword

Week 5 Summary

TOPIC 5 Summary: Business Models

Definitions: (Sourced from: http://mylams.com/ebusiness/topics-1-6/topic-5-business-models/, https://www.weforum.org/events/world-economic-forum-annual-meeting-2016, http://moodle.federation.edu.au/course/view.php?id=28650, http://digitalenterprise.org/models/models.html)

“A business model is the method of doing business by which a company can sustain itself — that is, generate revenue.

“The main point is that they (online business models) are continuing to evolve. In the most basic sense, a business model is the method of doing business by which a company can sustain itself — that is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain.”

Revenue models are how you plan to make money and a business model is how you plan to continue to make money.

Business models often overlap, and you will find different authors contribute alternative ideas.

Brokerage: Brokers are market-makers: they bring buyers and sellers together and facilitate transactions.

Advertising: The web advertising model is an extension of the traditional media broadcast model. The broadcaster, in this case, a web site, provides content (usually, but not necessarily, for free) and services (like email, IM, blogs) mixed with advertising messages in the form of banner ads. One of the oldest money-making sources, this model is under constant evolution. With the general internet population having access to ad-blocking tools, the industry has gone on to employ complex and creative methods to stay relevant.

  • Display Ads – e.g. Yahoo!
  • Search Ads – e.g. Google
  • Text Ads – e.g. Google, Facebook
  • Video Ads – e.g.  YouTube
  • Audio Ads – e.g. Saavn
  • Promoted Content – e.g.  Twitter, Facebook

Infomediary: Independently collected data about producers and their products are useful to consumers when considering a purchase. Some firms function as infomediaries (information intermediaries) assisting buyers and/or sellers understand a given market.

Merchant: Wholesalers and retailers of goods and services. Sales may be made based on list prices or through auction.

Manufacturer (Direct): The manufacturer or “direct model”, it is predicated on the power of the web to allow a manufacturer (i.e., a company that creates a product or service) to reach buyers directly and thereby compress the distribution channel.

Affiliate: In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, the affiliate model, provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites.

Community: The viability of the community model is based on user loyalty. Users have a high investment in both time and emotion. Revenue can be based on the sale of ancillary products and services or voluntary contributions; or revenue may be tied to contextual advertising and subscriptions for premium services.

Subscription: Users are charged a periodic – daily, monthly or annual – fee to subscribe to a service.

Utility: The utility or “on-demand” model is based on metering usage, or a “pay as you go” approach.

In the most basic sense, a business model is the method of doing business by which a company can sustain itself — that is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain.

The Four Basic Online Business Models – Marko Hurst

In this video interview, Internet marketing expert Marko Hurst discusses the four basic online business models and how each of them generates income. (1) E-commerce sites sell goods or services at a profit, (2) Content sites sell advertising, (3) Customer support sites save money for the business, and (4) Lead generation sites provide information for your company or to pass along to generate money from future sales. Most sites have at least 2 of the 4 business models; Amazon.com uses 3 of these.

Notes:

  1. Freemium model

Perhaps the most common model used by Web services. The idea here is to sell a basic free product to as many customers as possible, but keep the premium features exclusively for paying customers. A large number of SaaS products use this model.  For instance, Dropbox offers 2GB of free cloud data storage. But if one wants more space, one has to pay up.

Selling through e-commerce can include:

  • Retailing – e.g. Myntra
  • Marketplace – e.g. Snapdeal
  • Sharing Economy – AirBnB
  • Aggregators – e.g Taxi for Sure
  • Group buying – e.g. Groupon
  • Digital goods / downloads – e.g. iTunes
  • Virtual goods – e.g. Zynga
  • Training – e.g. Coursera, SimpliLearn
  • Pay what you want – e.g. Instamojo (optional)
  • Auction commerce – e.g. eBay
  • Crowdsourced Services – e.g. Elance, oDesk”.

Where Australia ranks in terms of web readiness, mobile technology:

Australia ranks at number 16 in the world. With a networking readiness index of 5.5.

Networked Readiness Index is measured as 1-7 (best). Look at each of the 10 pillars of performance and comment on your blog on Australia’s performance for each pillar:

1st pillar is the: Political and regulatory environment. Australia ranked 15th with a score of 5.3.

2nd pillar: Business and innovation environment. Australia ranked 23rd with a score of 5.1.

3rd pillar: Infrastructure and digital content. Australia ranked 6th with a score of 7.0.

4th pillar: Affordability. Australia ranked 28th and scored 6.2.

5th pillar: Skills. Australia ranked 17th with a score of 5.9.

6th pillar: Individual usage. Australia ranked 15th with a score 6.1.

7th pillar: Business usage. Australia ranked 24th with a score of 4.7.

8th pillar: Government usage. Australia ranked 23rd and scored 5.1.

9th pillar: Economic impacts. Australia ranked 24th with a score of 5.1.

10th pillar: Social Impacts. Australia ranked 14th with a score of 5.6.

MY NOTES ON VIDEOS:

 4 Basic online models:

  1. E commerce: selling goods and services for a profit, it is easy to measure through profit revenue. The way to improve with conversion rates and to optimise parts of the site such as: shopping cart, product details etc.
  2. Content: Eg New York Times.com, make money on advertising, page views and click through to the sites. Most sites use 2-4 business models.
  3. Customer support: eg Amazon has a system where you can contact them online and not through a call. They will help you solve your problems at a much cheaper rate of calling consumers.
  4. Lead Generation: Collecting personal identification information from customers when they use the site. Using it from CRM, passing it on to third parties (multi step sale process).

REVENUE MODELS:

1. Advertising

One of the oldest money-making sources, this model is under constant evolution. With the general internet population having access to ad-blocking tools, the industry has gone on to employ complex and creative methods to stay relevant.

•Display Ads – e.g. Yahoo!

•Search Ads – e.g. Google

•Text Ads – e.g. Google, Facebook

•Video Ads – e.g.  YouTube

•Audio Ads – e.g. Saavn

•Promoted Content – e.g.  Twitter, Facebook

•Paid content promotion

•Recruitment Ads – e.g.  LinkedIn

•Classifieds – e.g.  JustDial, Quikr

•Featured listings – e.g. Zomato, CommonFloor

•Email Ads – e.g. Yahoo!, Google

•Location-based offers – e.g.  Foursquare

2. Freemium model

Perhaps the most common model used by Web services. The idea here is to sell a basic free product to as many customers as possible, but keep the premium features exclusively for paying customers. A large number of SaaS products use this model.  For instance, Dropbox offers 2GB of free cloud data storage. But if one wants more space, one has to pay up.

Dropbox_Freemium_Screenshot_YS

Dropbox’s purchase plans

Other examples include Adobe Flash, Evernote, Google Docs/Drive, LinkedIn, Prezi, Slideshare, Skype, WordPress, and many mobile games like Farmville, Angry Birds etc.

3. E-commerce

The traditional world of retail comprising of malls and high street stores changed forever in the 90s when companies like Amazon emerged. Because they could save on expensive real estate costs, the prices offered on these stores were significantly lower.

ecommerce

Selling through e-commerce can include:

•Retailing – e.g. Myntra

•Marketplace – e.g. Snapdeal

•Sharing Economy – AirBnB

•Aggregators – e.g Taxi for Sure

•Group buying – e.g. Groupon

•Digital goods / downloads – e.g. iTunes

•Virtual goods – e.g. Zynga

•Training – e.g. Coursera, SimpliLearn

•Pay what you want – e.g. Instamojo (optional)

•Auction commerce – e.g. eBay

•Crowdsourced Services – e.g. Elance, oDesk

4. Affiliate Marketing

Mostly followed by high-traffic blogs, this is a model wherein the publisher signs up for affiliate programs related to their service/content and convert their users to customers of their affiliates/advertisers.

In most cases this involves a publisher earning a commission when a user follows a link on their blog to another site and this converts into the user buying something at the affiliate site.

A recent example is several well-known bloggers pushing out MotoG reviews and then linking to the Flipkart exclusive sale site for commissions.

5. Subscription Model

Newspapers, Gym, Magazines – yes, all of them use a subscription model. So, it has been existent since long.

 In the digital domain, software, which was once dominated by the licensing model, is slowly moving towards a subscription model. Generally, unlimited usage is offered, but a few have a specified cap above which they charge a higher rate.

NYtimes_Subscription

The different sub-models are:

•Software as a Service (SaaS) – e.g. Freshdesk

•Service as a Service – e.g. PayU

•Content as a Service

•Infrastructure/Platform as a service – e.g. AWS, Azure

•Membership Services – e.g. Amazon Prime

•Support and Maintenance – e.g. Red Hat

•Paywall – e.g. ft.com, NYtimes

6. Licensing

Very common among software companies, this model is however losing its sheen due to the emerging trend of SaaS subscription models.

 

Licensing could be for usage, which is the model for Intellectual Property (patents, copyrights, trademarks). This type of license is usually limited by time, territory, types of products, volume, etc. The other kind is for certification, like the McAfee SECURE trustmarks used for Internet websites.

•Per Device/Server License – e.g. Microsoft products

•Per Application instance – e.g. Adobe Photoshop

•Per Site License – e.g. Private cloud on internal infrastructure

•Patent Licensing – e.g. Qualcomm

7. Selling Data

Have you heard the phrase, ‘If you are not paying for the product, you are not the customer, you are the product being sold.’

High-quality, exclusive data is very valuable in the digital age. Many companies specialize in lead generation of potential customers and sell them to third parties.

You don’t pay for services like Google, Twitter and Facebook. But they aggregate high quantities of data about you and several millions like you and show you contextual advertisements based on this data. Which is why ‘you are not the customer, you are the product being sold.’

•User data – e.g. LinkedIn

•Search Data – e.g. Google

•Benchmarking services – e.g. Comscore

•Market research – e.g. MarketsandMarkets

wikipedia-donation_YS

The famous annual appeal from Jimmy Wales

8. Sponsorship/Donations

Many services are sponsored by government organizations and major funds if it directly helps them or the world at large, for example, Khan Academy is funded by the Gates Foundation and Google.

Then there is the Wikipedia model where the users are asked to willingly donate small to large amounts of donation to help support the initiative. Many browser extensions and WordPress plugins etc. also follow this route.

9. Build to sell (to Google, Facebook and others)

This might be counterintuitive and not the best of ‘revenue models’ because there is no revenue involved. But many companies have built traction over time and never worried about how they are going to make money, and have finally sold for big bucks to the internet giants, for example, Instagram, Pinterest.

Mobile and Gaming Revenue Models

•Paid App Downloads – e.g. WhatsApp

•In-app purchases – e.g. Candy Crush Saga, Temple Run

•In-app subscriptions – e.g. NY Times app

•Advertising – e.g. Flurry

•Transactions – e.g. Airtel Money

•Freemium – e.g. Zynga

•Subscription — e.g. World of Warcraft

•Premium – e.g. xBox games

•Downloadable Content – e.g. Call of Duty

•Ad-supported

INTERNET OF THINGS: Means that business objects have functional and digital processes. Things plus IT equal functions and service. Digitally charged products, high resolution management.

Business canvas:

  1. Customer segment
  2. Value propositions
  3. Channels
  4. Customer relationships
  5. Revenue streams
  6. Key resources
  7. Key activities
  8. Key partnerships
  9. Cost structure

Week 4 questions

1. In two paragraphs explain why a customer centric Web site design is so important, yet so difficult to accomplish:

In reference to: (http://smallbusiness.chron.com/importance-customer-centric-design-30693.html), having a customer centric website means that businesses should create a web page through the eyes of their consumers, as if they were visiting the site. Some of the customer friendly aspects they spoke about include: an ease of use, ability to generate revenue from sales and their company information. Also a web design should emphasise the resolution of problems for customers, also they should improve how quickly they can be solved, as this will impact the companies reputation! According to: (http://digitalenterprise.org/transcripts/design_tr.html) it is very important to provide an easy purchase process for consumers, one that covers all basis’s. This is a very complex process to achieve, it can take years to perfect a website and not to mention how much it will cost!

Webpages should strike a balance between having a standardized theme that is used by consumers and a more appealing layout that will attract them to their site. There can be a throwoff between design and functionality. Just because a website looks pretty does not mean that is will be functionally sound. Sites should be functional because at the end of the day, consumers are generally visiting your site because it has a product or service that they are interested in using, thus making it easy to make transactions and to interact with your site. Consumers need to be attracted to the design and layout of the site, this is hard for web creators to gage because consumers want to visit great sites but also be able to scroll through them with ease. Web sites that are purely functional may lack design, minimising customer visits and limiting their reach.

2. Define the term ‘presence’. Write an additional paragraph that describes why firms that do business on the Web should be more concerned about presence than firms that operate in the physical world.

Google defines the word presence as “the state or fact of existing, occurring, or being present.” Websites need to have a great online presence, this means that they should be continually visible and attractive to consumers. Businesses can build a better presence by improving the design of their webpages, by inserting bold images and improving the usability of their site.

Businesses on the web need to have a two way presence. Consumers need to be aware of the business, no clicks on their page equivocate to no transactions and no business. In the real world, businesses are visible from the outside and people who pass by the business have the option of entering the store but when it comes to a website, consumers need to trust and of heard of the page in the first place. Webpages need to advertise and rank highly in searches so that they are accessible to anybody! There are millions of webpages and in order to stand out they must have a big presence online and this may be done by using innovative processes, having a seamless purchase process, bold images and an overall appeal to the target market.

3. *Usable Doesn’t Have To Mean Ugly ‘for a web design to be truly beautiful, it has to be functional, have purpose and contribute in some way to the website’s intuitiveness, usefulness and branding. All of these things contribute to the overall effect of a design’. This is a quote from one of the articles on web design linked on Web pages that suck. Find a web page that ‘does not suck’ and discuss the features that make it work:

Chrometer.com is a simple webpage that tracks the amount of nutrients in your food. You enter the webpage and the home screen instantly invites you to sign up (which is a good function for the page because you instantly enter their email list). The home page is a bold design but also very simplistic to use. One of the features that makes it easy to use, is it’s dropdown list that has every food available, you pick the food or search them in the search tab at the top. The next page brings up all of the nuttrients and calories in the food you have entered, everything you need to see is on the same page so it easy to see exactly what you wanted to know without having to find multiple pages about the foods on other sites! The only negative to this webpage is that if you access it through your mobile device through the internet, it is not compatible for that as the screen is not empobalised for mobile device, meaning you have to zoom up on the section you want to use and is difficult to use. Otherwise there is a mobile app that you can use which cuts out those problems anyhow!