e-com
Electronic Commerce, 7th Edition
14188-37032
Chapter 3 Solutions
Review Questions
1. Write a paragraph in which you describe the conditions under which a Web site could become profitable by relying exclusively on advertising revenue. In a second paragraph, provide an example of a company not mentioned in the chapter that is using the advertising-supported model and that is likely to be successful in the long run. Explain why you think it will succeed.
Answer: A Web site that relies exclusively on advertising revenues must contend with two major problems. First, no consensus has emerged on how to measure and charge for site views and the second problem is that very few Web sites have sufficient numbers of visitors to interest large advertisers. To be successful using the advertising-supported revenue model exclusively, a Web site must be a large search engine, because they generate sufficient traffic to be profitable. Another alternative is to become a site that targets niche markets, for example employment-advertising sites.
2. Describe two possible service-for-fee offerings that might become available to users of Internet-enabled wireless devices (such as PDAs or mobile phones) in the near future. Write one paragraph for each service in which you outline the profit potential and risk of losses for each.
Answer: Two possible fee-for-service offerings that might become available are medical and legal services. The profit potential for these services would be higher than the traditional brick and mortar services offered. There are limitations placed on these services because of licensure issues and dispensing legal and medical advice over the Internet is still a major hurdle. As technology and the Internet mature, it will be possible to offer these services offer the Internet.
3. In two paragraphs, explain why a customer-centric Web site design is so important, yet is so difficult to accomplish.
Answer: An important part of a successful
14188-37032
Chapter 3 Solutions
Review Questions
1. Write a paragraph in which you describe the conditions under which a Web site could become profitable by relying exclusively on advertising revenue. In a second paragraph, provide an example of a company not mentioned in the chapter that is using the advertising-supported model and that is likely to be successful in the long run. Explain why you think it will succeed.
Answer: A Web site that relies exclusively on advertising revenues must contend with two major problems. First, no consensus has emerged on how to measure and charge for site views and the second problem is that very few Web sites have sufficient numbers of visitors to interest large advertisers. To be successful using the advertising-supported revenue model exclusively, a Web site must be a large search engine, because they generate sufficient traffic to be profitable. Another alternative is to become a site that targets niche markets, for example employment-advertising sites.
2. Describe two possible service-for-fee offerings that might become available to users of Internet-enabled wireless devices (such as PDAs or mobile phones) in the near future. Write one paragraph for each service in which you outline the profit potential and risk of losses for each.
Answer: Two possible fee-for-service offerings that might become available are medical and legal services. The profit potential for these services would be higher than the traditional brick and mortar services offered. There are limitations placed on these services because of licensure issues and dispensing legal and medical advice over the Internet is still a major hurdle. As technology and the Internet mature, it will be possible to offer these services offer the Internet.
3. In two paragraphs, explain why a customer-centric Web site design is so important, yet is so difficult to accomplish.
Answer: An important part of a successful