Topic 12 Questions

Question 1

See if you can find an example of a privacy breach that was reported in the Australian or international news in the last 6 months. What were the consequences? i.e. legal, political, financial, personal etc. What action was taken in response to the privacy breach?

Sony Playstation had hackers access its network. On the 3^rd of April Sony took legal action against the hackers GeoHot and Graf Chokolo, who have both been releasing tools to jailbreak and add, or replace functionality to the gaming console. More information at http://www.businessinsider.com/playstation-network-users-hackers-may-have-all-your-personal-info-now-2011-4

Topic 11 Questions

Topic 11 Web 2.0

Exercise - select five applications that you have not heard of before from Popular URL's Web 2.0 awards or the webware awards and describe on your blog page how they could be useful to a business.

1.    Yelp.com: Yelp is an online reviews service for local eateries and attractions. Users can leave reviews for any business they've been to, including photos and personal anecdotes. Yelp then gives the establishment a 1-5 star rating based on the total number of user ratings, which makes it easy to find out whether or not a restaurant is worth going to

http://news.cnet.com/8301-13546_109-10237738-29.html#ixzz1NW7HZUWF

2.    YouSendIt.com: YouSendIt is a file-sharing service. It allows receivers to get files by clicking standard URL links. Since YouSendIt stores files on its own servers, you have to upload what you want to share, but then you don't have to leave your PC on to allow people to pick it up. The hosted transfer model isn't as flexible as peer-to-peer sharing, but it is easier to use for both senders and receivers.

http://news.cnet.com/8301-13546_109-10237779-29.html#ixzz1NW7YRM6V

3.    OpenTable.com: OpenTable is an online reservation service. It lets people find reservations at local restaurants and book them from their computer or mobile phone; all the while, not having to use the traditional system of calling or visiting the restaurants in person.

http://news.cnet.com/8301-13546_109-10237740-29.html#ixzz1NW7l0Wob

4.    EventBrite.com: Eventbrite is an events management service. If you're having an event and want to manage the entire thing online, Eventbrite lets you set up a customized destination page where attendees can register and buy tickets. It can also take the event you created and send it out to other events services in order to promote it.

http://news.cnet.com/8301-13546_109-10237666-29.html#ixzz1NW7yfDBm

5.    Etsy.com: Etsy is an online marketplace for buying and selling handmade goods. Users can create their own virtual shopfronts to sell almost anything they'd want. Etsy has an integrated search tool that lets anyone search the site for goods and services out of a centralized directory. Users can also get into the nitty-gritty and design the specific look and feel of their own shops.

http://news.cnet.com/8301-13546_109-10237640-29.html#ixzz1NW88iFgB

Topic 10 Questions

Topic 10: Trust

1.    What is meant by the following statements?

i.              Trust is not associative

Trust is not symmetric when buying or selling products on the internet, this is because a seller will only has to wait for a buy to place the money in there account before sending out the goods and because of this there is no trust in the relationship, the seller could not send the product.

ii.             Trust is not transitive

This means that you can refer customers to people whom you trust but it does not necessarily mean that they themselves will trust that person.

iii.            Trust is always between exactly two parties

This makes a point of trust being between 2 parties as a whole rather than trust being between individuals. This allows an individual party to trust a collection of individuals in a party.
                                                           

iv.           Trust will involve either direct trust or recommended trust

This means

2.    a) Have a look at the following websites. What are some of the elements that have been incorporated to increase your trust in the sites? If there are also some aspects which decrease your level of trust, describe them as well.

i.              http://www.eBay.com.au

You have to be registered before you can sell any goods. They also allow ratings for each seller so a potential customer can see all the reviews based on that seller.

ii.             http://www.anz.com.au

The bank provides a lot of precautious such as;

-          constant reminder to change passwords regularly

-          security and privacy statements

-          the use and disclosure of information

-          Record of IP addresses

(ANZ, 2010)

iii.            http://thinkgeek.com

Thinkgeek.com uses the following forms of security that users can implement and are more willing to trust them:

· 128-bit encryption to and from the servers and web browser.

· Credit card numbers are not stored in our database. We keep on file only the last 5 digits in cases where we need to verify the card that was used.

· Once the information is transmitted to our servers for processing, we use even stronger encryption in the back end to transmit the request to our payment processor to verify the credit card and place an authorization for the order total.

· If the authorization, address verification and risk assessment all clear, the order is accepted and a one-time unique ID is associated with the order for purposes of billing the previous authorization. This ID cannot be used to place further authorizations or bill more than the original auth. It contains no identifiable link to the credit card number.

· Once that ID has been used to bill the order (which happens only once the order begins shipping), it is no longer valid and cannot be used to authorize or bill again

iv.           http://paypal.com.au

b) Find a website yourself that you think looks untrustworthy

www.mcrosoft.com

Topic 8 Questions

Topic 8: Online Auctions Questions

1.       eBay is one of the only major internet “pure plays” to consistently make a profit from its inception. What is eBay’s business model? Why has it been so successful?

eBay’s business model is the brokerage model. It is so successful because it allows customers to purchase items that are no longer in stores or not in stores close to their region. They can also purchase items at a cheaper price than stores and customers tend to have a better experience as they have control of the situation – i.e. they provide feedback about the seller for future customers.

2.       Other major websites like Amazon.com and Yahoo! have entered the auction marketplace with far less success than eBay. How has eBay been able to maintain its dominating position?

eBay has been able to maintain this success by the way it is operated.  eBay has a larger range of stock compared to Amazon.com and for the most part tends to be cheaper than retail stores. eBay also allows customers to bid for an item, the highest bidder winning the auction and this effectively taps into people’s competitive nature.

3.       What method does eBay use to reduce the potential for fraud among traders on its site? What kinds of fraud, if any, are eBay’s users most susceptible?

eBay produces security information on their website for customers to be aware of security risks when purchasing items online.  They also provide feedback and complaint areas where customers can complain if they feel they have been cheated in any way. Some examples from their website include; only using safe payment methods such as PayPal, to never trade outside the eBay site as items purchased outside the site are not eligible for buyer protection, to never use western union, MoneyGram or other instant wire transfer services and if an offer sounds too good to be true, it probably is. eBay’s users are most susceptible to identity thief, seller’s fraud, buyer’s fraud and fraudulent emails.

4.       eBay makes every effort to conceptualize its users as a community (as opposed to, say “customers” or “clients”). What is the purpose of this conceptual twist and how does eBay gain something by doing it?

eBay does this to make everyone feel equal and not be put pressure on them. eBay wants customers to return to their website so they interact as a ‘community’ to let people have a good experience and feel welcomed.

5.       eBay has long been a marketplace for used goods and collectables. Today, it is an increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?

Brand name vendors may choose to set up an online presence as well as a real world presence. This may be part of a marketing strategy where it allows customers to be aware of multiple locations where the brand is located, compared to just one store in one region. This allows customers to have access to the brand 24/7 from whatever location they may be from. This may also let customers bid on the brand, in the hopes of purchasing the brands at a cheaper price than what they would have compared to retailed prices.

6.       I have a few businesses, and I have used eBay for about 12 years on and off. Currently I have about 600 books listed. I stopped selling on eBay for a few years but they changed the rules this July and it is viable again (for me). What do you think changed?

This was caused by changes from the introduction of a new policy in July 2010. eBay overhauled the ‘Accepted Payments Policy”. This meant that it gave the option to offer a number of trusted payment options, allowing customers to recognise safer and protected methods of payments. This also allows a certain amount of insurance and intervention on behalf of eBay if they were to be a corrupt transaction.  

Topic 7 Questions

Topic 7 Digital Automata

1.       Write one paragraph describing the Turing test and another paragraph describing an argument again the Turing test, known as the about the Chinese room.

The Turing test was introduced by Alan Turing in the 1950’s. The Turing test is a test of a machines ability to demonstrate intelligence. The test involves two humans and one machine. A human talks, in natural language conversation, with both one human and one machine, both of them trying to appear human. If the human cannot tell which the machine is and which is the human, then the machine is said to have passed the test.

The Chinese room was an argument against the Turing Test. It was developed by John Searle in 1980. Searle argued that the software ‘could pass the Turing test simply by manipulating symbols of which they had no understanding’.  Searle stated that without understanding, machines could not be described as ‘thinking’ in the same sense people do therefore the Turing test cannot prove that machines can think.

Turing, A (1950). As cited by Wikipedia (2011). The Turing Test. Retrieved on 13th of April 2011 from http://en.wikipedia.org/wiki/Turing_test.

2.       Can virtual agents succeed in delivering high quality customer service over the web? Think of examples which support or disprove the question or just offer an opinion based on your personal experience.

There are different types of agents. These include mobile, distributed, autonomous, fuzzy and intelligent agents. I think that virtual agent will eventually be able to successfully delivering high quality customer service over the web. As technology advances, so will virtual agents. The advantages of having virtual agents deliver customer service is no waiting in a queue on the phone to speak to another human but instant communication 24/7. A problem that could arise is the ability for the agent to pick up everyday language and interpret it and give the relevant answer. People may be annoyed if they were given irrelevant answers and therefore lead bad customer service.

Rappa, M. (2005) Automata. Retrieved on 13^th April 2011 from http://digitalenterprise.org/transcripts/automata_tr.html

Topic 6 Questions

Topic 6: Digital Markets

1.       a) What experience have you had with shopping online?

I have bought numerous items off Amazon.com and many other online stores.

b) Describe a good experience.

The items I bought off online stores were cheaper and easier to purchase than those in a normal store.

c) What did you like about the online store you used?

It gave me more variety of products compared to stores where I lived and tended to be cheaper, including the postage.

d) Describe a bad experience.

Some of the online stores don’t have a specific shipping date so you can wait up to 4 weeks for a certain product.

e) What problems did you have with the online store?

 I have not had any problems with online stores

f) What features make an online store more appealing?

An online store is more appealing to me when they have all the little information on the product such as specifications and include realistic pictures. It also is good when there is customer ratings of the product of those who have already purchased the product.

g) What features make an online store less appealing?

The first impression is somewhat vital when I am browsing for new products on the internet so the layout, colours and style of the web page is quite important.

h) Should we expect to see the prices of goods and services rise or fall due to the migration of consumers online?

I think that we should expect to see the prices fall due to the migration of consumers online. People are becoming more aware of the popularity of purchasing online. It draws in a lot of customers because it tends to be cheaper to purchase things on the internet compared to in a store. Online stores have much less costs involved and they can target a much larger audience compared to a store in a certain town, state or country.

2.       Please discuss the following statements and indicate if you agree with them or not. No right or wrong answers.

a)      The dispersion or prices (that is, the spread between the lowest and highest price for a particular product) will narrow.

I agree. I think that as more and more people are attracted to purchasing items on the internet, the competition will become very fierce. Rappa mentions that customers will become more aware of the pricings on the internet and easily be able to compare multiple sites and prices very quickly.

b)      The importance of brand names will decrease.

I disagree. I still believe that customers will remain brand loyal. Even today, customers are still buying items that are branded no matter the cost because of the image and style they want to uphold. I think that customers will try to find places where they can get their brands cheaper.

c)       Price competition will make all products cheaper

I disagree.  I think that this statement is applicable with some items but not all. People are still willing to pay high costs for what they believe to be a high quality product.

d)      Digital markets will become dominated by a handful of mega-sites like Amazon.com.

I agree. I think just as it has happened in the real world, there will be dominant sites over the internet. Also, just as the real world, there will also be speciality stores where online stores will be able to make sales but I believe that the giants will be dominate over the internet.

e)      How do you think the balance of power between buyers and sellers will change?

I think the balance will increase on the buyer’s side. They have more information available to them, being able to compare prices with multiple stores. Sellers will now have to compete with so many more businesses and constantly view competitor prices to make sure they are in level with them.

f)       Prices are clustered online.

It depends. I think that may be the case with some products where it can be lowered constantly but with other products such as brands and expensive items it becomes more complicated.

g)      Online prices are elastic (i.e. immune to change up and down with demand)

I disagree. I think that prices will rise and fall according to the demand of a particular product. The more a product is demanded by customers, the more sellers will stock them and a price war may erupt to gain potential clients.

h)      Online prices are generally transparent ( the extent to which prices for a given product or service are known by buyers in the marketplace)

Yes, I agree. Most buyers would do research on certain products based on price to see where they can source the product at the cheapest price.

3.       a) What types of m-commerce services does your cell phone provider offer?

Mobile bill payment, banking and financial services, wireless advertising, location-based services and games and entertainment, Bluetooth, emails.

b) Which of these services do you use?

I use emails, games and entertainment and Bluetooth.

c) What types of transactions do you perform through your cell phone or other wireless device?

I would check my emails when I am not at home, Bluetooth files and pictures and play games with my iPhone.

d) What types of transactions would you like to perform, but currently unable to?

I don’t have any because I prefer using my laptop. I tend only to use my iPhone if I am away from home to check emails or am bored.

e) What is your opinion of wireless advertising/mobile marketing?

I think it is a very effective way of marketing to people as most have mobile phones compared to internet at home. It would be, however in my opinion very frustrating to be bombarded with mobile advertising while I am trying to perform tasks on my phone.

Topic 5 Questions

Topic 5: Business Models

Moodle Discussion (Collaborate Consumption) – ‘I agree with Cheyne on the meaning of collaborative consumption but i also fell it has a lot to do with money. Yes it brings out the idea of sharing but it also looks at other possibilities of receiving income as opposed to investing capital or funds into a business. In a way, it's a cheap way to make money if you have underused assets. on the other hand it can be the stepping stone for people to be able to travel cheaper (swapping houses in another country). I think the idea of collaborative consumption was raised after the recession and people were trying to find ways to either make a bit of extra 

money or travel cheaper. Let me know if I'm totally off what it means'

Question 1: Describe the features of each of these business models, giving an example of each.

Brokerage: The main aim for brokers is to bring the buyer and seller together to consummate a successful transaction. They usually charge a fee or commission for each transaction. Brokering occurs literally everywhere, therefore brokerage models can vary between businesses with a particular industry, and across different industries. The web is nicely suited for the brokerage model as there are large numbers of customers that can be matched up with a large number of potential sellers. An example of this is EBay (Auction broker). Other examples of brokerage models include marketplace exchange, buy/sell fulfilment, demand collection system, transaction broker, distributer, search agent and virtual marketplace.

http://ubonline.ballarat.edu.au/mod/resource/view.php?id=51561

http://en.wikipedia.org/wiki/Brokerage_firm

Advertising: the web advertising model is a further technological advance of the tradition broadcasting model where websites provide content and services mixed with advertising banners. Advertising has become more important in two ways; the basic image advertising has evolved to become ‘rich media’ with the help of advanced technology, and the introduction of the ‘paid placement’ approach. An example of this is Google, use adwords and adsense as more efficient way to advertise. Portals, classifieds, user registrations, contextual advertising, intromercial and ultramercials are all different types of elements in the advertising model.

http://en.wikipedia.org/wiki/Advertising

http://www.digitalenterprise.org/models/models.htm

Infomediary: The infomediary model refers to mass data relating to consumers and their consumptions habits to help understand a particular market for use by marketers or advertisers. An example of this is Nielson.  The different types of models include advertising networks, audience measurement services, incentive marketing and metamediary.

http://www.digitalenterprise.org/models/models.htm

http://en.wikipedia.org/wiki/Infomediary

Merchant: The merchant model consists of wholesalers and retailers of goods and services in the attempt for a profit. They are intimately involved with in the distribution so it becomes a more complicated business, logistically, to managed, compared with brokerage. There are four types of merchant models; virtual (Amazon.com), catalogue (Lands’ End), Click and Mortar (Barnes and Noble) and bit vendor (Apple iTunes Store).

http://www.digitalenterprise.org/models/models.htm

http://www.thefreedictionary.com/merchant

Manufacturer (Direct): This model relates to the notion to reach buyers directly, therefore compressing ‘the distribution channel’. This is an advantage as customers may feel more secure when dealing with the manufacturer compared to an online shop. An example of this is Dell Computers who sell their products directly to customers.

http://www.digitalenterprise.org/models/models.htm

Affiliate: the affiliate model refers to companies who offer financial incentives to affiliated partnering sites. This includes banner exchange, pay-per-click and revenue sharing. An example of this is Amazon and Barnes and Noble.

http://www.allbusiness.com/glossaries/affiliate/4943862-1.html

http://www.digitalenterprise.org/models/models.htm

Community: the main function of community business model is for consumer loyalty and the notion that customers will continue to go back to that specific site or shop. This could range from anything between open sources and content to public broadcasting and social networking services. An example of the community model is Flickr where this social networking site allows opportunities for companies to advertise on and users to subscribe for premier services.

http://www.digitalenterprise.org/models/models.htm

Subscription: the subscription model is the basic concept that users are charge a periodic fee, whether it is daily, monthly, or yearly to subscribe to a particular service. This includes content services, person to person networking, trust services and internet services providers.  An example of this is Netflix

http://www.digitalenterprise.org/models/models.htm

http://ubonline.ballarat.edu.au/mod/resource/view.php?id=51561

Utility: This model is referring to the ‘on demand’ concept where a user pays for what they use. This tradition means of usage is now being outdated by things such as phones plans and broadband. This model includes the metered usage, which measures the amount owed based on user usage, and metered subscriptions, which allows users to purchase a given amount of content, e.g. number of pages viewed.

http://www.digitalenterprise.org/models/models.htm

Question 2

Spend time looking at the Technology report. Use some of the data analysis tools to answer the following-

a)      What is the Mobile phone use per 100 population. Compare Australia, USA, China, India, Your Country.

Australia 105.0, USA 86.8, China 47.9 and India 29.4

b)      Internet use per 100 population. Compare Australia, USA, China, India, Your Country.

Australia 72.0, USA 74.0, China 22.3 and India 4.4

c)       Compare main strengths and weaknesses of Australia or your home country in the survey.

The main strengths of Australia are the E-Participation index, time required to start a business, number of procedures required to start a business and the level of competition.

The possible weaknesses of Australia are the fixed telephone lines tariffs, the mobile cellular tariffs, the total tax rate and the business monthly telephone subscription.

d)      What does the survey suggest to you about the Information Technology readiness of Australian Business compared to Australia consumers?

This information shows that the information technology readiness of Australian businesses are ranked 22^nd in the world whereas the information technology readiness of Australian consumers are ranked at 13^th. This shows that business still have to be with par to be able to utilise the technology available for their business. Australian consumers are very technology savvy, therefore leaving a wide gap that businesses need to use to the full extent.