16.7 PROVIDING E-COMMERCE
SUPPORT SERVICES
Determining how the website actually will be
built and by whom are the implementation parts
of website construction. Website construction
can be done in one of the following options:
In-house development, outsourcing, and partnering.
In addition, construction is done during both
start up and maintenance.
Who Builds the Website?
The online business owner has to decide among
the above-cited options or some combination(s)
of them. This involves considerations such as
available resources, urgency, budget, and existing
computing systems.
Payments: Accepting Credit Cards
Another important service is payment (see Chapter
11). No business can exist without a payment system.
Thus, every online business has to make decisions
about electronic payment systems. The
dominant form of B2C payment is accepting credit
cards over the Internet. Paying for goods and
• Intuitive design : a nearly effortless
understanding of the architecture and
navigation of the site
• Ease of learning : how fast a user who
has never seen the user interface before
can accomplish basic tasks
• Effi ciency of use : how fast an experienced
user can accomplish tasks
• Memorability : after visiting the site, if
a user can remember enough to use it
effectively in future visits
• Error frequency and severity : how
often users make errors while using the
system, how serious the errors are, and
how users recover from the errors
• Subjective satisfaction : if the user likes
using the system
16 Launching a Successful Online Business and EC Projects
755
services in the physical world is moving to mobile
devices, including conducting micropayments.
Chapter 11 described the process for accepting
credit card payments. As noted there, processing
credit card payments on the Internet
differs only slightly from the process in traditional,
face-to-face transactions.
Website Promotion
Chapter 9 discussed website promotion through
advertising (e.g., banner ads, pop-up ads) and
marketing strategies (e.g., banner swapping,
use of video ads, use of blogs, chat rooms, or
groups in social networks and virtual worlds).
This section focuses on internal website promotion,
i.e., conducting marketing communications
on the site itself. The related topic of
search engine optimization also was described
in Chapter 9.
Internal Website Promotion
Internal website promotion begins by including
content to attract customers so that they will return
and refer others to the site. To do this, the website
needs compelling content, useful links to other
websites, and features that will make customers
want to return (e.g., provide entertainment).
The results derived from Web analytics are
used to plan promotions and ads. Web analytics is
defi ned and described in Chapter 14. Web analytics
vendors include IBM, Oracle, Microsoft,
MicroStrategy, SAS, and Webtrends.
Search Engine Optimization (SEO)
How do customers fi nd a specifi c website in
cyberspace? How does a new e-business get
noticed and beat established competitors? In
addition to promotional and advertising strategies
discussed in this and other chapters, perhaps
the most important and cost-effective way to
attract new customers is search engine optimization.
Search engine optimization (SEO), as
defi ned in Chapter 9, is the use of strategies
intended to position a website at the top of Web
search engine results.
Several SEO services, such as webposition.
com and searchsummit.com will manage the
entire SEO process for a website. However,
SEO requires constant monitoring to be effective.
For comprehensive coverage of SEO, see Harris
( 2014 ).
An Example: How Does
Baidu Succeed?
Case 16.3 describes the rise of Baidu ( baidu.
com ) from a small startup to the top search engine
in China.
CASE 16.3: EC APPLICATION
Baidu’s Strategies for Success
Baidu is a Chinese language Internet search provider,
offering a Chinese-language search platform
on its website. It provides Chinese language
Internet search services to enable users to fi nd relevant
information online (e.g., images, news, Web
pages). Founded in 2000 by software developers
Robin Li and Eric Xu, Baidu.com is known as
“China’s Google.” However, it has differentiated
itself from Google by targeting Chinese users.
Chinese Internet users search for content in a
different way than the way people do in the West
(see clickz.com/clickz/column/2288982/searchin-china-how-baidu-is-different-from-
google ).
According to Li, the name of the company
“Baidu,” meaning “hundreds of times,” is from a
Chinese poem written during the Song Dynasty.
The company initially relied on fi nancing provided
by venture capitalists. In August 2005, Baidu went
public in the U.S. (debuting at $27/share).
The Business Model
Baidu’s strategy of focusing on the local market
has allowed it to dominate the Chinese market for
search engine users. Its revenues increased by
76.4% in 2010, with its share of Chinese search
Case 16.3: EC Application
756
traffi c reaching 73% compared with Google’s
21% (China Daily 2010 ). In Q1 2014, Baidu led
the search engine market with 77.1% market
share (channel revenue included), compared with
Google China’s 11% (per chinainternetwatch.
com/7375/china-search-engine-marketq1-
2014 ). For Baidu’s annual revenue from 2007
to 2013, see statista.com/statistics/269032/
annual-revenue-of-baidu . For the company’s
annual revenue and other statistics, see their
fi nancial reports at ir.baidu.com/phoenix.
zhtml?c = 188488&p = irol-reportsAnnual .
A leading formula for Baidu’s success is its
focus on several search services, which are
geared to the Chinese culture and to mobility.
Other strategies likewise have proven effective
for Baidu. The company offers paid search,
where the client chooses keywords that their customers
may use to search for their products. Their
ads then appear at the top of the related search
results page. In terms of advertising, Baidu uses
in addition to PPC ads, third parties to sell ads,
unlike Google, which sells only PPC ads directly.
Google’s withdrawal from the Chinese market
in 2010, due the Chinese Government’s refusal to
stop censoring Google’s content, further
improved Baidu’s customer base. Its stock price
in May 2010 doubled the level it was trading at in
January of the same year (see Wells 2010 ), and in
2014 it was much higher. Because Google could
not afford to miss out on the world’s biggest
Internet market, it began its push to return to the
Chinese market in 2012. As of June 2014, Google
is intermittently available in China.
Note: Google (including YouTube) is frequently
blocked in China (e.g., in June 2014,
ahead of the anniversary of Tiananman).
In 2013, Baidu began promoting its mobile
advertising, recognizing that this is the area of
most growth. In 2014, net profi t was up more
than 24% in Q1 2014 and average revenue,
and their CEO anticipates that within the year,
the company’s mobile traffi c will surpass
its PC-based traffi c (see pcworld.com/article/2148260/baidus-profi
t-boosted-by-mobilead-revenue.html
).The company has been
acquiring EC companies or a stake in EC and IT
companies in mobile ads and related fi elds.
Competitiveness and Constraints
Baidu was awarded the “China Internet SelfDiscipline
Award” in 2009, due to its strict monitoring
and censorship of online information.
Despite this recognition, Baidu was not spared
lawsuits for copyright infringement. In June 2005,
the company was sued by Shanghai Busheng
Music and Culture Media Company for allegedly
allowing downloads of pirated music. Likewise,
popular fi lm companies presented similar charges
against Baidu for unauthorized downloading of
movies. These lawsuits were settled.
Despite being initially recognized as
“China’s Google,” Baidu has adopted several
strategies to differentiate itself from the competition.
Over the years, its range of services has
expanded to include news, multimedia, and
image searching. By stressing its competitive
advantage – use of the Chinese language –
Baidu has effectively reached and gained the
loyalty of Chinese users.
In 2014, Baidu was in stiff competition with
Alibaba Group’s companies and other large Chinese
EC companies.
For an overview of Baidu, including its products
and services for users and customers, see
reuters.com/finance/stocks/company
Profi le?rpc = 66&symbol = BIDU.O .
Sources : Based on Lai ( 2011b ), Wells ( 2010 ),
China Daily ( 2010 ), and baidu.com (accessed
July 2014).
Questions
1. Baidu is also known as “China’s Google.”
How is Baidu’s business model different from
Google’s?
2. Baidu offers paid search placement. Do you
think such website ranking services will promote
unfair competition?
3. Baidu’s strategy that uses Chinese language
for its search engine is considered its biggest
competitive advantage. Explain why (start by
reading Lai 2011b ).
4. What lessons does the Baidu case offer to
e-commerce startups and entrepreneurs?
5. Investigate Baidu’s activity in using mobility
and m-commerce.
16 Launching a Successful Online Business and EC Projects
757
Customer Relationship
Management (CRM)
Customer relationship management (CRM)
refers to a customer service approach that focuses
on building long-term and sustainable customer
relationships that add value for both the customer
and the company (see Online Tutorial T1). In
building an EC website or an EC project, one
needs to consider CRM. This section focuses on
what every startup e-business needs to know in
order to initiate an effective CRM program.
In EC, we concentrate on eCRM, as described
in Online Tutorial T1.
Using Content to Build Customer
Relationships
The fi rst step in building customer relationships
is to give customers good reasons to visit and
return to the company’s website. In other words,
the site should be rich with information, provide
entertainment whenever appropriate, and have
more content than a visitor can absorb in a single
visi
16.7 提供电子商务支持服务确定网站实际上会怎样建和由谁是执行部分网站建设。网站建设可以使用以下选项之一:内部开发,外包,和建立伙伴关系。此外,两个期间完成建设启动和维护。谁建立的网站?在线业务业主已决定之间上述选项或一些 combination(s)其中。这涉及考虑如可用资源、 紧迫性、 预算和现有的计算系统。付款: 接受信用卡另一个重要的服务是付款 (见第一章11).没有生意能没有支付系统。因此,每个在线的企业不得不做出的决定关于电子支付系统。的B2C 支付的主要形式接受信用在互联网上的卡。支付货款和● 直观的设计: 几乎不费吹灰之力体系结构的理解和网站的导航• 易用性学习: 如何快速用户谁从未见过之前的用户界面可以完成基本任务• 效率的使用: 如何快速一支经验丰富用户可以完成的任务• 可记忆性: 后访问该网站,如果用户能够记住足以使用它有效地在今后访问• 错误频率和严重程度: 如何通常用户在使用时进行错误系统,多么严重的错误是,和用户如何从错误中恢复• 主观满意度: 如果用户喜欢使用系统16 发射成功的网上业务和电子商务项目755在物理世界中的服务移动到手机设备,包括进行小额支付。章 11 描述接受的过程信用卡付款。如那里,加工在互联网上信用卡付款仅稍有不同的进程从传统,面对面的交易。网站推广第 9 章讨论通过网站推广广告 (如横幅广告、 弹出式广告) 和营销策略 (例如,横幅交换,使用的视频广告,使用博客、 聊天室,或社会网络和虚拟世界中的组)。本部分着重内部网站推广即,进行营销传播对网站本身。有关的议题搜索引擎的优化也被描述在第 9 章。内部网站推广内部网站推广开始由包括内容来吸引客户,他们将返回并参考别人的网站。为此,该网站需要令人信服的内容、 有用链接到其他网站,并将使客户的特点想要返回 (例如,提供娱乐)。网站分析得出的结果是用于促销和广告计划。Web 分析工具面的 ned 和所述的章 14。网站分析供应商包括 IBM、 Oracle、 微软,微技术战略、 SAS 和 Webtrends。搜索引擎优化 (SEO)如何做客户上网 nd 规格 c 网站网络空间?一个新的电子商务是如何得到的注意到和节拍建立竞争对手吗?在除了促销和广告策略也许在这方面和其他章节,讨论最重要的和具有成本效益的方式向吸引新的客户是搜索引擎的优化。搜索引擎优化 (SEO) 作为实验室在第 9 章,奈德是策略的使用意在顶部的 Web 网站的位置搜索引擎的结果。几个 SEO 服务,如搜索引擎优化。com 和 searchsummit.com 将负责管理整个网站的 SEO 过程。然而,SEO 需要持续的监控,才能有效。SEO 的全面覆盖,请参阅哈里斯(2014 年)。示例: 如何做百度成功吗?案例 16.3 描述了崛起的百度 (百度。com) 从小启动到顶级搜索引擎在中国。案例 16.3: 电子商务的应用百度的成功策略百度是中文互联网搜索提供商,提供中文搜索平台在它的网站。它提供了中国语言互联网搜索服务,使用户对上网 nd 有关网上的信息 (例如,图像、 新闻、 网络页)。成立于 2000 年由软件开发人员李彦宏和 Eric 徐,百度是众所周知"中国的谷歌"。然而,它具有区分从谷歌针对中国用户本身。中国的互联网用户搜索的内容不同的方式,比人们的方式做在西方(见 clickz.com/clickz/column/2288982/searchin-china-how-baidu-is-different-from-谷歌)。根据李,公司的名称"百度",意思"数百倍,"是从中国的诗写在宋朝。该公司最初依靠 fi 粗浅提供由风险资本家。2005 年 8 月,百度去在美国 (首次亮相在 27 美元/股) 上市。商业模式百度的战略的重点放在本地市场上使它得以主宰中国市场搜索引擎用户。其收入每增加76.4 %2010 年,其份额的中国搜索案例 16.3: 电子商务的应用756换气 c 达到 73%,而谷歌的21%(中国日报 2010年)。在 2014 年第 1 季度,百度领导搜索引擎市场,77.1%的市场共享 (包括渠道收入),相比谷歌中国的 11%(chinainternetwatch。com/7375/中国-搜索-发动机-marketq1-2014 年).为百度年收入从 2007 年到 2013 年,看到 statista.com/statistics/269032/每年的收入-的-百度。为公司的每年的收入和其他统计数字,看看他们fi 财务报告在 ir.baidu.com/phoenix。zhtml? c = 188488 & p = irol-reportsAnnual。一个领先百度的成功公式是其重点放在几个搜索服务,是为了对中国文化和流动性。其他战略同样有证明有效对于百度。本公司提供付费的搜索,当客户端选择关键词,他们的客户may use to search for their products. Theirads then appear at the top of the related searchresults page. In terms of advertising, Baidu usesin addition to PPC ads, third parties to sell ads,unlike Google, which sells only PPC ads directly. Google’s withdrawal from the Chinese marketin 2010, due the Chinese Government’s refusal tostop censoring Google’s content, furtherimproved Baidu’s customer base. Its stock pricein May 2010 doubled the level it was trading at inJanuary of the same year (see Wells 2010 ), and in2014 it was much higher. Because Google couldnot afford to miss out on the world’s biggestInternet market, it began its push to return to theChinese market in 2012. As of June 2014, Googleis intermittently available in China. Note: Google (including YouTube) is frequentlyblocked in China (e.g., in June 2014,ahead of the anniversary of Tiananman). In 2013, Baidu began promoting its mobileadvertising, recognizing that this is the area ofmost growth. In 2014, net profi t was up morethan 24% in Q1 2014 and average revenue,and their CEO anticipates that within the year,the company’s mobile traffi c will surpassits PC-based traffi c (see pcworld.com/article/2148260/baidus-profit-boosted-by-mobilead-revenue.html).The company has beenacquiring EC companies or a stake in EC and ITcompanies in mobile ads and related fi elds. Competitiveness and Constraints Baidu was awarded the “China Internet SelfDisciplineAward” in 2009, due to its strict monitoringand censorship of online information.Despite this recognition, Baidu was not sparedlawsuits for copyright infringement. In June 2005,the company was sued by Shanghai BushengMusic and Culture Media Company for allegedlyallowing downloads of pirated music. Likewise,popular fi lm companies presented similar chargesagainst Baidu for unauthorized downloading ofmovies. These lawsuits were settled. Despite being initially recognized as“China’s Google,” Baidu has adopted severalstrategies to differentiate itself from the competition.Over the years, its range of services hasexpanded to include news, multimedia, andimage searching. By stressing its competitiveadvantage – use of the Chinese language –Baidu has effectively reached and gained theloyalty of Chinese users. In 2014, Baidu was in stiff competition withAlibaba Group’s companies and other large ChineseEC companies. For an overview of Baidu, including its productsand services for users and customers, seereuters.com/finance/stocks/companyProfi le?rpc = 66&symbol = BIDU.O .Sources : Based on Lai ( 2011b ), Wells ( 2010 ),China Daily ( 2010 ), and baidu.com (accessedJuly 2014).Questions 1. Baidu is also known as “China’s Google.”How is Baidu’s business model different fromGoogle’s? 2. Baidu offers paid search placement. Do youthink such website ranking services will promoteunfair competition?
3. Baidu’s strategy that uses Chinese language
for its search engine is considered its biggest
competitive advantage. Explain why (start by
reading Lai 2011b ).
4. What lessons does the Baidu case offer to
e-commerce startups and entrepreneurs?
5. Investigate Baidu’s activity in using mobility
and m-commerce.
16 Launching a Successful Online Business and EC Projects
757
Customer Relationship
Management (CRM)
Customer relationship management (CRM)
refers to a customer service approach that focuses
on building long-term and sustainable customer
relationships that add value for both the customer
and the company (see Online Tutorial T1). In
building an EC website or an EC project, one
needs to consider CRM. This section focuses on
what every startup e-business needs to know in
order to initiate an effective CRM program.
In EC, we concentrate on eCRM, as described
in Online Tutorial T1.
Using Content to Build Customer
Relationships
The fi rst step in building customer relationships
is to give customers good reasons to visit and
return to the company’s website. In other words,
the site should be rich with information, provide
entertainment whenever appropriate, and have
more content than a visitor can absorb in a single
visi
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