1. Internet Service

2. Learning Objectives n Describe different Internet business models. n Contrast an electronic and traditional service. n Describe the relationship between the product and process structure of electronic services. n Locate an Internet service on the electronic services product-process matrix.

3. Purpose of Web-site n A channel to sell a product or service (Amazon.com) n A supplemental channel (Barnes & Nobel) n Technical support (Dell Computer) n Embellish existing service (HBS Press) n Order processing (Delta Airline) n Convey information (Dr. Koop)

4. Internet Business Models n Internet access providers (AOL) n Portal (Yahoo) n Information content (New York Times) n Online retailers (garden.com) n Transaction enablers (E*Trade) n Market makers (eBay)

5. Electronic and Traditional Services

6. Grocery Shopping Comparison

7. Electronic Service Product Structure

8. Electronic Service Process Structure n Service Kiosk (e.g. enricobiscotte) n Service Mart (e.g. burpee) n Mass-Service Customization (e.g. bluemountain) n Joint-Alliance Service Customization (e.g. epicurious) (Shown in order of increasing flexibility)

9. Electronic Services Product-Process Matrix

10. Topics for Discussion n Can an Internet service encounter be a memorable experience? n What is the “front-office” of an Internet service? n What is the contribution to gross national product (GNP) of “self-service” activities? n Position the following websites on the electronic services product-process matrix: cookingpost.com, chocoholic.com, peapod.com, raisinrack.com, and win.com.