Internet Marketing, Business Models, and Public Policy

Abstract

The authors examine the role of the Internet in marketing in the context of business models that are economically viable. This examination raises questions regarding the degree to which the Internet is genuinely different and whether it will be a boon to consumers and investors. Economic necessity associated with the need to obtain and maintain profit streams suggests that Internet markets will likely be more similar to than different from traditional markets. The authors challenge assumptions regarding the role of the Internet in creating frictionless markets that benefit consumers and the role of personal information and privacy on the Internet that are necessary conditions for potentially profitable business models. The authors also discuss subsidization of Internet businesses in the context of public policy and examine other issues related to the relationship of current models of Internet business to public policy and consumer welfare.

Attributes contributing to perceived customer value in the czech clothing on-line shopping

“…Further differentiation of on-line shopping into the sub categories such as click-onlymarketers or click-and-mortar marketers (Zamazalová, 2009) provides other specifi cs of on-line shopping such as a possibility to try or test the goods, which encourages some customers in their decisions to shop on-line. This fact partially disproves former statements that on-line shoppers do not have possibility well experience sensory implications during the shopping such as atmosphere, touch, aroma or fl avour due to its limitations (Steward & Zhao, 2000). On the other hand, bad experience with on-line shopping gained for example by problems to return goods due to wrong size, pattern or material is responsible for creating a negative customer approach towards future on-line purchases.…”

“…The concept created by Heard (1993) specifi es three factors of customer value based on product characteristics, purchase order and goods delivery, and transaction experience. From the customer's point of view, the concept of customer value includes functional, social, emotional, epistemic and situational dimensions (Sheth, Newman, & Gross, 1991).…”

Audience Commodification: A Source of Innovation in Business Models

“…Moreover, the business model has been referred to as an architecture, design, pattern, plan, method, assumption, and statement" (Morris et al, 2005). A simple definition of business model comes from Stewart and Zhao (2000), who define it as a statement of how a firm will make money and sustain its profit stream over time. According to Osterwalder and Pigneur (2010), a business model describes the rationale of how an organization creates, delivers, and captures value.…”

Business Model Development for Virtual Enterprises

“…Key Activities [1], [24], [26] Partners Evaluation Criteria Definition [32], [33] Actors [9], [13], [18], [20], [34], [35], [36] Roles [18], [20], [35] Core competences [18], [24], [26] Sharing resources and processes Automation Polymorphism Flexibility [18], [19], [24] Shared Information Technology Supporting [11], [37], [38] VALUE CAPTURE Cost [1], [17], [39], [40] Revenues [1], [10], [13], [37], [40], [41], [42], [43], [44], [45] NETWORK GOVERNANCE Flows of information [9], [13] …”