1. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. App.-1 Chapter Seven ElectronicCommerce

2. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. App.-2 Functions of the Net  Communication - E-mail - Instant messaging  E-commerce - 40% of b2c sites now profitable - B2b transactions lead the way  Information  Entertainment

3. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. App.-3 Web Statistics V Average number of hours web users spend online in week = 4-5 V Percentage using e-mail frequently = 63% V Percentage using the Web primarily for research = 39% V Percent shopping online = 31% V All-time Net searches as of 8-03 V After 9/11, the Iraq war, Election 2000, Kobe Bryant Source: Source: CIO Web Business

4. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. App.-4 B2C Online Purchases 2004  Security issues  3% of retail sales  #1: books,music,videos, #2 apparel, #3 travel  $63B loss in aborted online purchases - 52% of shopping carts are abandoned - Additional costs like shipping & long delivery times - Sites asking for too much info. - Lack of product info.

5. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. App.-5 ChickClicks  Females – 51% on online users (2003)  Like AOL, MSN, Yahoo, iVillage, women.com On Health, Oxygen Media  Seek ease of use & help making lives more efficient & productive - Men spend more time to download software and to make upgrades  Female-oriented sites - Smart, sassy, progressive - More than just a pink banner - Spend 2 hrs. less than men online - Contests, promos & giveaways - Multiple channels of typical women’s topics plus more serious topics

6. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. App.-6 Measuring Effectiveness  Only 15% of large companies use web to generate revenue  Conversion rate - Percent of site visitors who make a purchase. - 3-5% is average  Click-through rates - Percent of people presented with Web banner ad who click it - Half of 1 percent (1-2% for direct mail)

7. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. App.-7 Web Shopping Guidelines  www.ftc.gov www.ftc.gov - 1-877-FTC-HELP (1-877-382-4357) The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad. The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.Consumer SentinelConsumer Sentinel  www.shopthenet.org www.shopthenet.org - The DMA ConsumerLine Direct Marketing Association 1111 19th Street, NW, Suite 1100 Washington, DC 20036-3603 202.955.5030 consumer@the-dma.org consumer@the-dma.org

8. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. App.-8 FTC Tips  Be wary of extravagant claims about performance or earnings potential. Get all promises in writing and review them carefully before making a payment or signing a contract.  Read the fine print and all relevant links. Fraudulent promoters sometimes bury the disclosures they're not anxious to share by putting them in teeny-tiny type or in a place where you're unlikely see them.  Look for a privacy policy. If you don't see one - or if you can't understand it - consider taking your business elsewhere.  Be skeptical of any company that doesn't clearly state its name, street address and telephone number. Check it out with the local Better Business Bureau, consumer protection office or state Attorney General.

9. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. App.-9 Online Retailers  Ebay-online auction  Amazon  Travelocity  TOYSRUS  Dell  CDNow

10. McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. App.-10 Most Important Web Site Characteristics  Site is updated frequently  Links to other relevant sites  Easy to find what you are looking for  Site responds quickly to inquiries  Site downloads quickly Source: Source: Yankolovich Partners