E-commerce
E-commerce became a reality following a convergence of several technologies, including the Internet, global telephone systems, communications standard TCP/IP, addressing system of URLs, personal computers and cable TV, customer databases, sound and graphics, and user-friendly free browsers. A Web site can serve different purposes for different businesses. Some organizations use the Internet solely to communicate with employees, suppliers of raw materials, or suppliers of supporting services, such as bookkeeping, legal advice, or research materials. Local and national governments around the world maintain Web sites that are of interest to both tourists and businesses. Other organizations use Web sites to sell products and services directly to the customer. Clearly, Web sites can be used in many different ways:
As a Channel to Sell a Product or Service
Some retailers, such as Amazon.com and Newegg.com, do not have physical stores. These firms sell exclusively through the Internet, and either distribute goods locally or deliver by mail or shipping service.
As a Supplemental Channel
“Click-and-mortar” firms represent traditional retailers, such as Barnes & Noble, that have extended their market reach by adding a Web site. Delivery of items can be made from a regional warehouse by mail or within urban areas by truck from the local store. Purchasers in an area served by a “bricks-and-mortar” Barnes & Noble store, for example, can order a book, either by phone or online, and it will be delivered to the local store that day. Home Depot has plans to offer a similar service.
For Technical Support
Product firms that offer after-sales technical support find the Internet to be an inexpensive avenue to help customers solve common problems. Answers to questions about setting up a new computer, for example, can be found on the Dell Computer Web site (ht*p://www.dell.com).
To Embellish Existing Service
Services that traditionally have been offered by mail can be augmented by using a Web site. Harvard Business School Press, for example, uses a Web site to distribute business cases that faculty can review prior to adoption or view past issues of the Harvard Business Review at http://harvardbusinessonline.hbsp.harvard.edu.
To Process Orders
A Web site can be a convenient link for customers to order services. Airlines quickly made use of Web sites to allow customers to order electronic tickets. This service bypasses travel agents as a distribution channel and saves the airlines the cost of commissions. The airline Web sites also give customers access to schedules and a way to comparison shop for the lowest fare. This direct connection with customers also allows airlines to “ advertise” discounted fares (i.e., unsold seats) for the coming weekend via e-mail.
To Convey Information
Many companies use their Web sites to convey information about the organization (e.g., names of officers, addresses, phone numbers, and technical assistance). Other Web sites serve as information repositories. The kbb.com site, for example, provides a source of information for people interested in buying a car.
To Communicate with Membership
Organizations use a Web site to communicate information such as conference program announcements, job listings, and question postings to their membership. POMS, for example, is an academic organization for production and operations management faculty that provides information for members at http://www.POMS.org.
To Play Games
Online games provide a convenient outlet of entertainment. Treeloot.com is a game site that obviously is supported by forcing players to view advertisements, but other sitesfocus just on games.
Virtual versus Physical Services
A comparison of virtual and physical services is shown in Table 5.3 . The features represent general characteristics that vividly differentiate the alternative delivery systems. Table 5.4 displays the advantages and disadvantages of online and traditional grocery shopping, an activity in which almost everyone participates.
E-Service Product Dimensions
Electronic (virtual) services share many of the characteristics of traditional (physical) services. Electronic services are intangible, because the service transactions and experiences delivered via electronic channels are difficult to measure, inventory, or describe fully. The differing needs, expectations, self-service capabilities, willingness to interact,
As a Channel to Sell a Product or Service
Some retailers, such as Amazon.com and Newegg.com, do not have physical stores. These firms sell exclusively through the Internet, and either distribute goods locally or deliver by mail or shipping service.
As a Supplemental Channel
“Click-and-mortar” firms represent traditional retailers, such as Barnes & Noble, that have extended their market reach by adding a Web site. Delivery of items can be made from a regional warehouse by mail or within urban areas by truck from the local store. Purchasers in an area served by a “bricks-and-mortar” Barnes & Noble store, for example, can order a book, either by phone or online, and it will be delivered to the local store that day. Home Depot has plans to offer a similar service.
For Technical Support
Product firms that offer after-sales technical support find the Internet to be an inexpensive avenue to help customers solve common problems. Answers to questions about setting up a new computer, for example, can be found on the Dell Computer Web site (ht*p://www.dell.com).
To Embellish Existing Service
Services that traditionally have been offered by mail can be augmented by using a Web site. Harvard Business School Press, for example, uses a Web site to distribute business cases that faculty can review prior to adoption or view past issues of the Harvard Business Review at http://harvardbusinessonline.hbsp.harvard.edu.
To Process Orders
A Web site can be a convenient link for customers to order services. Airlines quickly made use of Web sites to allow customers to order electronic tickets. This service bypasses travel agents as a distribution channel and saves the airlines the cost of commissions. The airline Web sites also give customers access to schedules and a way to comparison shop for the lowest fare. This direct connection with customers also allows airlines to “ advertise” discounted fares (i.e., unsold seats) for the coming weekend via e-mail.
To Convey Information
Many companies use their Web sites to convey information about the organization (e.g., names of officers, addresses, phone numbers, and technical assistance). Other Web sites serve as information repositories. The kbb.com site, for example, provides a source of information for people interested in buying a car.
To Communicate with Membership
Organizations use a Web site to communicate information such as conference program announcements, job listings, and question postings to their membership. POMS, for example, is an academic organization for production and operations management faculty that provides information for members at http://www.POMS.org.
To Play Games
Online games provide a convenient outlet of entertainment. Treeloot.com is a game site that obviously is supported by forcing players to view advertisements, but other sitesfocus just on games.
Virtual versus Physical Services
A comparison of virtual and physical services is shown in Table 5.3 . The features represent general characteristics that vividly differentiate the alternative delivery systems. Table 5.4 displays the advantages and disadvantages of online and traditional grocery shopping, an activity in which almost everyone participates.
E-Service Product Dimensions
Electronic (virtual) services share many of the characteristics of traditional (physical) services. Electronic services are intangible, because the service transactions and experiences delivered via electronic channels are difficult to measure, inventory, or describe fully. The differing needs, expectations, self-service capabilities, willingness to interact,
and perceptions of customers contribute to the heterogeneity of electronic services. A customer’s modem capability or Internet connection to the electronic service provider, for example, contributes to the heterogeneity in speed of delivery. Finally, the consumption and delivery of electronic services are simultaneous and, thus, inseparable in both traditional and electronic services. Traditional and electronic services both have core and auxiliary elements. Core elements of a service are central to the product, but auxiliary elements provide less important service dimensions. Electronic services can include both core and auxiliary dimensions, which may occur as both online offerings, such as multiplayer-gaming services, and offline offerings, such as delivery of food items from a local supermarket.
E-Service Process Dimensions
Service processes include front-office processes that involve direct interaction with customers and back-office processes that have little customer contact. Service processes can be characterized according to degree of contact and interaction, degree of labor intensity, and degree of labor customization. In addition, service processes include customer participation in the service delivery. Electronic services differ in the extent to which customer contact, customization, interaction, labor intensity, service inputs, and technology can be used to differentiate between operations. Electronic-service offerings are composed of online interactive service dimensions and offline noninteractive service dimensions. The online service dimensions involve continuous customer contact with the service system, and offline elements involve little customer contact. Customization can occur during online customer interactions with the electronic service and through offline back-office processes that are separated from the customer. Online customization might use technologies, such as video-conferencing systems and others that connect customizable technologies directly to online service operations. Labor and technology in traditional back-office service operations can be used to accomplish offline customization.
E-Service Process Dimensions
Service processes include front-office processes that involve direct interaction with customers and back-office processes that have little customer contact. Service processes can be characterized according to degree of contact and interaction, degree of labor intensity, and degree of labor customization. In addition, service processes include customer participation in the service delivery. Electronic services differ in the extent to which customer contact, customization, interaction, labor intensity, service inputs, and technology can be used to differentiate between operations. Electronic-service offerings are composed of online interactive service dimensions and offline noninteractive service dimensions. The online service dimensions involve continuous customer contact with the service system, and offline elements involve little customer contact. Customization can occur during online customer interactions with the electronic service and through offline back-office processes that are separated from the customer. Online customization might use technologies, such as video-conferencing systems and others that connect customizable technologies directly to online service operations. Labor and technology in traditional back-office service operations can be used to accomplish offline customization.
No comments:
Post a Comment