1. 1-1 5-1

2. 1-2 5-2 Chapter 5 Strategy Formulation: Customer Interface McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

3. 1-3 5-3 Chapter 5: Strategy Formulation: Customer Interface Questions Answered in this Chapter: – What are the seven design elements of the customer interface? – What determines the look-and-feel of the design? – What are the three content classifications? – Why be concerned with community? – What are the two ways in which websites can achieve customization? – What types of communication can a firm maintain with its customer base? – How does a firm connect with other businesses? – What commerce features help websites perform financial transactions?

4. 1-4 5-4Introduction Customer interface – is the virtual representation of a firm's chosen value proposition Seven design elements of customer interface (7Cs) – Context – Content – Community – Customization – Communication – Connection – Commerce

5. 1-5 5-5 Exhibit 5.1: The 7Cs of Customer Interface Context Site’s layout and design Commerce Site’s capabilities to enable commercial transactions Connection Degree site is linked to other sites Communication The ways sites enable site- to-user communication or two-way communication Customization Site’s ability to self-tailor to different users or to allow users to personalize the site Community The ways sites enable user- to-user communication Content Text, pictures, sound, and video that webpages contain

6. 1-6 5-6 Exhibit 5.2: Fit and Reinforcement of the 7Cs ContextContentCommunityCustomizationCommunicationConnectionCommerce Business Model Consistent Reinforcement Individually Supporting Fit

7. 1-7 5-7 What Determines the Look-and-Feel of the Design? First: Context Context – captures its aesthetics and functional look-and-feel Dimensions of Context 1.Function refers to the organization and accessibility of informationFunction Section Breakdown is the way the site is organized into subcomponents Linking Structure enables users to move easily between sections Navigation Tools facilitate how the user moves through the site Speed is measured by the time needed to display a page on a user’s screen Reliability how often a site experiences “downtime” Platform Independence is measured by how well the website can run on multiple platforms, including old versions of Web browsers Media Accessibility the ability of a site to download to various media platforms

8. 1-8 5-8 First: Context (cont’d) 2.Aesthetics refers to the visual characteristics of a siteAesthetics Color Scheme refers to the colors used throughout the site Visual Themes help to tell the story portrayed across the site Context Classifications – Aesthetically Dominant: Emphasis is on the look-and-feel of the site. This type of site makes heavy use of visual elements – Functionally Dominant: Emphasis is on the display of textual information. This type of site limits the visual design to a minimum – Integrated: Balance of form and function. These sites have a clear and appealing theme that support the underlying graphics

9. 1-9 5-9 Exhibit 5.3: Form vs. Function -The Design Context Frontier Integrated Aesthetically Dominant High Low High Low FUNCTION Functionally Dominant Frontier is gradually moving outward as technology advances

10. 1-10 5-10 Exhibit 5.4: Aesthetically Dominant example—KMGI.com

11. 1-11 5-11 Exhibit 5-5: Functional Dominant— Brint.com

12. 1-12 5-12 Exhibit 5-6: Integrated Example— Patagonia.com

13. 1-13 5-13 Second: Content Deciding What Information to Include The Content of a website – refers to all the digital information on the site Evaluating Content – Offering Mix Content of a site can include products, information, services, or a mix of these three – Appeal Mix Company's value proposition is projected in the promotional and communications messages of a site – Multimedia Mix Refers to the choices of media including text, audio, image, video and graphics – Timeliness Mix information presented on a site is time-sensitive – Current Content – Highly time-sensitive information with very short shelf life – Reference Content – less time-sensitive information with longer shelf life

14. 1-14 5-14 Exhibit 5-7: A Framework to Understand Content Classifications Superstore Category Killer Specialty Store NUMBER OF PRODUCT CATEGORIES Multiple Single Narrow Broad DEPTH OF PRODUCT LINE

15. 1-15 5-15 Second: Content (cont’d) Content Classifications – Product Dominant: Encompasses store sites that primarily sell physical goods Superstore – One-stop shop offering a wide range of goods in multiple product categories Category Killer – Sites offering a comprehensive selection of products and services but only within a specific category Specialty Store – Stores offering exceptional quality and exclusivity in single or multiple categories of products – Information Dominant: Encompasses store sites that focus heavily on information – Service Dominant: Encompasses store sites that focus on the services offered, often for a fee

16. 1-16 5-16 Exhibit 5-8: Category Killer Example— PetSmart

17. 1-17 5-17 Exhibit 5-9: Specialty Store— Frontgate.com

18. 1-18 5-18 Exhibit 5-10: Information-Dominant Example—Fast Company

19. 1-19 5-19 Exhibit 5-11: Service Dominant Example—PlasticsNet

20. 1-20 5-20 Third: Community Community includes a feeling of membership in a group along with a strong sense of involvement and shared common interests Five components determine the shape of online communities: – Characteristics – Member Motivation – Member Participation – Member Benefits – Interaction Tools

21. 1-21 5-21Characteristics The more evolved the community the more likely it is to have these six characteristics – Cohesion- the community develops a group identity – Effectiveness- the group has impact on members’ lives – Help- members feel comfortable asking for and receiving help from other members – Relationships- interaction between individuals leads to friendships – Language- members develop a specialized language and/or abbreviations with unique meaning within the community – Self-regulation- the group sets rules for its own interaction and develops a system for policing itself

22. 1-22 5-22 Exhibit 5-12: Communities—Elements, Types & Benefits Member Benefits Need fulfillment Inclusion Mutual influence Shared experiences/ information Why members are motivated to join the community Community Characteristics How members participate in the community Cohesion Effectiveness Help Relationships Language Self-regulation Interaction Tools

23. 1-23 5-23 Community Classifications Nonexistant - sites that have no community offer no way for users to interact with one another, on either a one-to-one basis or one-to-many basis Limited- sites that offer features such as reading and posting information, stories, or opinions Strong - sites that offer interactive community functions such as chat rooms and message boards

24. 1-24 5-24 Exhibit 5-13: Limited Community Ex. Gillette Women’s Cancer Connection

25. 1-25 5-25 Exhibit 5-14: Strong Community Example—Bolt.com

26. 1-26 5-26 Fourth: Customization Creating an Individualized Website refers to a site's ability to tailor itself to each user or to be tailored by the user Dimensions of Customization – Personalization: user initiates & manages the customization process – Tailoring: Software dynamically publishes unique versions of the site to address specific user's interests, habits & needs more appropriately

27. 1-27 5-27 Fourth: Customization (Cont’d) Commonly used customization features: – E-mail accounts Users can send and receive e-mail from the site, using a free, unique e-mail address – Content and layout configuration Users can design their own homepage, within limits, by choosing background colors, layout design, and content sources – Storage Users can store e-mail, URLs, favorite content, or items they want to buy – Agents Computer programs can perform simple tasks upon request, such as notifying a user via e-mail when a product is in stock

28. 1-28 5-28 Exhibit 5-15: Personalization by User Example—MyLook.com

29. 1-29 5-29 Exhibit 5-16: Tailoring Example— Amazon Homepage for Two Users

30. 1-30 5-30 Fifth: Communication Keeping in Touch with Users refers to the dialogue between a site & its users Dimensions of Communication – Broadcast One-way information exchange from organization to user. can be in the form of mass mailing, FAQ, e-mail newsletters, content-update reminders and broadcast events – Interactive Two-way communication between the organization and a user. can be in the form of e-commerce dialogue, customer service and user input

31. 1-31 5-31 Fifth: Communication Communication Archetypes – One-to-One, Non-Responding User User receives personalized messages to address specific interests or needs without a need to respond – One-to-One, Responding User User responds to personalized messages sent by the site – One-to-Many, Non-Responding User Site messages are announcements that users receive without needing to respond – One-to-Many, Responding User Site messages are invitations to users to submit their comments and responses

32. 1-32 5-32 Exhibit 5-17: One-to-One, Live Interaction Example—LivePerson.com

33. 1-33 5-33 Sixth: Connection Linking with Other Websites is the degree to which a given site is able to link to other sites Dimensions of Connection – Outside Links Links that take the user completely outside the home site and into a third-party site – Framed Links Links that take the user to a third-party site that open in the same browser window and that are framed by the home site in some way – Pop-Up Windows Links that open up the new site in another browser window while the original website stays in the background – Outsourced Content Content that comes from an outside supplier

34. 1-34 5-34 Exhibit 5-18: Outsourced Content Example—Real.com

35. 1-35 5-35 Sixth: Connections Classifications Destination Site – Provides almost exclusively site-generated content with very few links to other sites Hub Site – Provides a combination of site-generated content and selective links to sites of related interests Portal Site – Consists almost exclusively of links to a large number of other sites

36. 1-36 5-36 Exhibit 5-19: Destination Site— NYTimes.com

37. 1-37 5-37 Exhibit 5-20: Hub Example —Industry Central

38. 1-38 5-38 Exhibit 5-21: Portal Site Example— Yahoo

39. 1-39 5-39 Seventh: Commerce Enabling Financial Transactions refers to the sale of information, products or services on the site. Dimensions of Commerce – Functional tools that are the commerce-enabling features of a website RegistrationOrders Through Affiliates Shopping CartConfiguration Technology SecurityOrder Tracking Credit-Card ApprovalDelivery Options One-Click Shopping

40. 1-40 5-40 Seventh: Commerce (cont’d) Commerce Classifications: – Low These websites have the ability to process transactions, but with few of the tools that enable e-commerce – Medium: Some websites have no need for all the commerce activities and contain financial transactions as a necessary feature but not as their main purpose. – High These websites are fully equipped with all or almost all the functional tools that enable e-commerce.

41. 1-41 5-41 Exhibit 5-22: Map of 7Cs Framework Context Aesthetically dominant Functionally dominant Integrated ContentProduct-dominant Information- dominant Service- dominant CommunityNonexistentLimitedStrong CustomizationGeneric Moderately customized Highly customized Communication One-to-many, nonrespondi ng user One-to- many, responding user One-to-one, nonrespondi ng user One-to-one, responding user ConnectionDestinationHubPortal CommerceLowMediumHigh

42. 1-42 5-42 Exhibit 5-23: Foot Locker (www.footlocker.com) Context Aesthetically dominant Functionally dominant Integrated Content Product-dominantInformation-dominantService-dominant Community LimitedStrong Customization Generic Moderately customized Highly customized Communication One-to-many, nonresponding user One-to-many, responding user One-to-one, nonresponding user One-to-one, responding user Connection DestinationHubPortal Commerce LowMediumHigh Nonexistent

43. 1-43 5-43 Exhibit 5-24: Cool Running (www.coolrunning.com) Context Aesthetically dominant Functionally dominant Integrated Content Product- dominant Information- dominant Service-dominant Community NonexistentLimitedStrong Customization Generic Moderately customized Highl Communication One-to-many, responding user One-to-one, nonresponding user Connection DestinationHubPortal Commerce LowMediumHigh Information -dominant Functionally dominant Strong Highly Customized One-to-one Responding user Hub Low One-to-many Nonresponding user

44. 1-44 5-44 Exhibit 5-25: MarketWatch.com (www.cbs.marketwatch.com) Context Aesthetically dominant Integrated Content Product- dominant Service-dominant Community NonexistentLimitedStrong Customization GenericHighly customized Communication One-to- many, responding user One-to-one, nonresponding user One-to-one, responding user Connection DestinationHubPortal Commerce LowMediumHigh Functionally Dominant Information -dominant Strong Moderately customized Strong Low One-to-many Nonresponding user

45. 1-45 5-45 Exhibit 5-26: CBS MarketWatch.com Homepage