Upload
jayden-davis
View
217
Download
3
Tags:
Embed Size (px)
Citation preview
Dr. Ehud Reiter, Computing Science, University of Aberdeen 1
E-Commerce (2)
Attracting and keeping customers» Issue: security, trust
Legal issues Personalisation Adverts
Dr. Ehud Reiter, Computing Science, University of Aberdeen 2
Customers are different!
Consumer types» Individual consumers» Organizational buyers
Goal of shopping» Pragmatic: buy something useful, cheaply» Hedonic: have fun
Personality» Impulsive buyers—purchase quickly» Patient buyers—make some comparisons first» Analytical buyers—do substantial research before buying
Dr. Ehud Reiter, Computing Science, University of Aberdeen 3
Consumer Behaviour
Prentice Hall, 2002
Dr. Ehud Reiter, Computing Science, University of Aberdeen 4
Consumer Satisfaction
Prentice Hall, 2002
Dr. Ehud Reiter, Computing Science, University of Aberdeen 5
Security/Trust
Security/trust» Will the company actually deliver the
correct product in reasonable shape, in a reasonable time, at correct price
» Will the customer pay up (is the credit card stolen, will it be repudiated)
Technical aspects (CS5401) Focus here on trust
Dr. Ehud Reiter, Computing Science, University of Aberdeen 6
Trust in physical shops
Experience: shoppers trust shops they’ve used before
Appearance: shoppers trust store that look reputable
Complaints: easy to complain, shop can’t hide
Transactions are simple
Dr. Ehud Reiter, Computing Science, University of Aberdeen 7
On-line trust
What makes you trust an e-commerce shop?
Dr. Ehud Reiter, Computing Science, University of Aberdeen 8
On-line Trust
Experience: I trust Amazon because I’ve used them before» Reputation: because my friends use them» Very important with e-shops
Appearance: do I trust Amazon because they have a nice website???» Less important than with physical shops» Marketing helps
Dr. Ehud Reiter, Computing Science, University of Aberdeen 9
On-line trust
Complaints: Harder to complain since don’t know where shop is
Transactions are complex because of delivery» Where many e-shops mess up
Third-party: do I trust Amazon more if another web site says good things about Amazon (???)
Dr. Ehud Reiter, Computing Science, University of Aberdeen 10
Does Amazon Trust Me?
Amazon trusts me because» Experience: I’ve always paid Amazon
before» Reputation: I’ve used other companies and
always paid up» Marketing: Amazon threatens nasty things
to customers who don’t pay up
Dr. Ehud Reiter, Computing Science, University of Aberdeen 11
Trust
We know how trust is established in physical shops.
We are developing mechanisms for establishing trust in e-shops» Partially technology, but psychology and
sociology probably matter more» Lack of trust mechanisms is barrier to new
e-shops
Dr. Ehud Reiter, Computing Science, University of Aberdeen 12
Legal Issues: Tax
In USA, one driving force behind early e-store success was less tax» Because of a tax loophole, sales tax (VAT)
was not charged on e-commerce sales Automatically gave price advantage to
e-commerce sites!
Dr. Ehud Reiter, Computing Science, University of Aberdeen 13
Legal Issues: Intl E-Commerce
In theory, e-commerce means sites can sell globally
In practice, difficult because of different tax rules, regulations, customs, etc» More common to set up subsidiaries in
different countries, as Amazon has done Lack of global legal/regulatory
framework hinders ecommerce
Dr. Ehud Reiter, Computing Science, University of Aberdeen 14
Personalisation
E-Commerce sites can treat customers differently» Offer recommendations, special deals» Personalise web site» Adjust prices
In theory, “personalised shop” one of the great benefits of e-commerce
Dr. Ehud Reiter, Computing Science, University of Aberdeen 15
Recommendation
Build profiles» What has X bought?» What has X looked at?» Demographics: age, gender, etc
Recommendation» Rules: If X buys Harry Potter 6, recommend HP 7» Data Mining: Other people who bought Harry
Potter also bought Lord of the Rings» Collaborative: X’s overall buying profile is similar
to Y, so recommend whatever Y bought
Dr. Ehud Reiter, Computing Science, University of Aberdeen 16
Recommendations
If done well, perceived very positively» Real benefit, not just marketing spam» Credit-card companies have done this well
– Have the most purchasing data?
Data privacy issues» Can Visa sell data about you to Amazon?» Spyware to track all of your web browsing?
Dr. Ehud Reiter, Computing Science, University of Aberdeen 17
Personalise Web Sites
Let customers create their own “shop front” focusing on their interest
Adjust appearance (eg, for visually disabled, or strict Muslims)
Doable, not huge success
Dr. Ehud Reiter, Computing Science, University of Aberdeen 18
Personalised Pricing
Companies would love to be able to charge people different amounts for the same product» Airline seats, cars, etc» Full price for people who are keen, in a
rush, don’t care about money» Discount for choosy/finicky
Dr. Ehud Reiter, Computing Science, University of Aberdeen 19
Personalised Pricing
Amazon, etc have tried this, but customers hated it.
So has gone “underground” for now. Technology permits this, but society’s
expectations does not allow it
Dr. Ehud Reiter, Computing Science, University of Aberdeen 20
Advertising
E-Shops (and other sites) can make money via advertising» Google makes billions from its “sponsored
links”» Amazon has adverts as well
Dr. Ehud Reiter, Computing Science, University of Aberdeen 21
Web Advertising
Conventional advertising focuses on visual appeal
Less successful on web» Flashy animated banner adverts are a
nuisance and distraction
Dr. Ehud Reiter, Computing Science, University of Aberdeen 22
Targeted adverts
Web allows relevant adverts to be associated with a web page» Google sponsored links based on search» Amazon could display different adverts for
sci-fi and romance novel Very effective if done well
» So Web sites can charge more for targeted adverts
Dr. Ehud Reiter, Computing Science, University of Aberdeen 23
Web adverts
Initially treated like TV adverts, put huge effort into flashy multimedia banner ads
Now focusing on simple targeted adverts instead
Advertising models cannot be blindly moved from TV to web» need new models!
Dr. Ehud Reiter, Computing Science, University of Aberdeen 24
E-Commerce Summary
Initially tried to make e-shops similar to high street shops. But» Need different business model» Trust issues much more important» Need appropriate legal framework
Dr. Ehud Reiter, Computing Science, University of Aberdeen 25
E-Commerce Summary
Sometimes technology really helps» Recommender systems, targeted adverts
Sometimes technology works but society doesn’t like it» Differential pricing