Week 10 - Trust

Trust

 

1) What does this meant by the following statements?

Trust is not associative (non-symmetric): In terms of buyers and sellers, non-symmetric trust is generally when the trust they have for each other is not the same. For example a seller may trust that the money will be delivered, but the buyer may lack trust that the seller will deliver the good.

Trust is not transitive: This really depends on the buyer and sellers. Usually people will develop their own trust in a relationship usually based on first impressions; however on occasions if someone close to the buyer tells them about a positive transaction they have had with the seller, they may be more willing to trust the seller than before.

Trust is always between exactly 2 parties: This is generally true but in fact when you go back further than just the ‘buyer-seller relationship’ you will find that it is false. For example sellers usually buy the product off other sellers, in the form of suppliers and manufacturers which means that trust can be between a whole number of parties in the one transaction.

Trust will involve either direct trust or recommended trust: This is true as trust can either be developed through a person’s first impressions and personal experience or it can come from someone else, where someone refers them to the seller because of a positive transaction which is referred to as recommended trust.


2a) 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.

· eBay biggest aspect which would increase trust is their ‘Security & Resolution Centre’. This allows all users of this site to trust that their transactions can be dealt with an appropriate manner and be fixed if need be.
· The layout is also another factor which may increase trust. It allows users to view items with all details, such as price and description. It also enables users to search the website which sows they are not hiding anything
· The ‘Contact Us’ option is also a HUGE help in increasing trust allowing customers to get assistance if need be.
http://www.eBay.com.au

· This site also offers the ‘Contact Us’ options, giving customers the opportunity to speak to someone in person about their banking issues
· It also offers customers the option of reading about the company to see whether they would like to join up with ANZ by incorporating the ‘About Us’ Tab.
· It also had its privacy statement down the bottom for customers to read in case of doubt and the fact that it has security alerts will definitely increase customer trust
http://www.anz.com.au

· Well seeing this is Ian’s site, I better not criticize it too much. It is obvious going from the others sites to this site that Oz Rural is not as established and large as the other two.
· It does however have great layout which is easy to navigate around and also gives contact details which is always a winner when increasing customer trust.
· It is definitely a positive influence with the lonely planet books, adding more trust as people realize the affiliation with a larger company
http://www.ozrural.com

· Using Security Center, as mentioned before, is a positive way of increasing customer trust
· Also the option to find out more about Pay Pal is one which will increase trust, as it dispels myths people have made about the organization as well.
· In the ‘About Pay Pal’ tab it mentions that it ‘uses the most advanced proprietary fraud prevention systems’ which can only add confidence to users.
http://www.paypal.com.au

2b) Find a web site yourself that you think looks untrustworthy.

This website just looks a little amateur! I probably won’t be buying anything from here anytime!!
http://cobrastrike.com/

Week 8 - Online auctions

Q1: 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?

e-Bay's business model is consumer to consumer.  e-Bay is globalization and adopt person-to-person trading. which has traditionally been conducted through such forms as garage sales, collectibles shows, flea markets and more, with their web interface. This facilitates easy exploration for buyers and enables the sellers to immediately list an item for sale within minutes of registering.

http:/www.allbusiness.com/sales/internet-ebay/3251-1.html#axzz1vUz2dQ99

Q2: Other major web sites, like Amazon.com and Yahoo!, have entered the auction marketplace with far less success than eBay. How has eBay been able to maintain its dominant position?

e-Bay is one of the only major Internet "Pure Plays".  It means that e-Bay allows anybody to bid the items and allows anybody post their products on internet.  After that, when the products are bid and sale out, e-Bay receives a commission from them.  So, e-Bay has been able to maintain its dominant position. Amazon allows consumers go onto the website and buy items which Amazon has in stock. Amazon is more of a company where as eBay allows anyone to put items up for auction.  e-Bay taps into people competitive nature which for some consumers makes it more worthwhile to bid and try to win

Q3: What method does eBay use to reduce the potential for fraud among traders on its site? What kinds of fraud, if any, are eBay users most susceptible?

e-Bay apply the security system to ensure that consumer and supplier have a safety environment in the website.  e-Bay is using Paypal security system. This is a function which eBay trusts and has a protection element for buyers and consumers (eBay, 2009). Such programs as Paypal are put in place to protect buyers and sellers if they use this program on eBay. If the buyer/seller uses another paying method then the Paypal protection does not apply to them (eBay, 2009). e-Bay also provide a feedback to know about who is being fraudulent. This allows e-Bay to know about people trying to scam the system.  The types of fraud eBay users are identity thief, fraudulent emails, buyers fraud and seller fraud.

 

Q4: 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 does eBay gain something by doing it?

It allows customers to feel part of a community in order for them to feel comfortable in the auction environment. This allows them to be familiarized with other customers and discuss different items which in the long run will allow more buying and selling to be done on eBay, that is further benefit effort to conceptualize.

Q5: eBay has long been a marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?

It is a win-win situation for both businesses. Because of eBay’s leading reputation in the virtual auction marketplace people are more likely to go there first to bid on goods rather than search for a particular business, as they know they will find it on eBay. Therefore by setting up shop on eBay other businesses are getting promoted there as well as through their own business. However, at the same time, eBay would be getting some profit off businesses using their site.

Q6. I have a few businesses, and I have used eBay for about 12 years on and off. Currently I have about 600 books listed on eBay (seller name ozrural). 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?

Week 7 - Introduction to Digital Automata

Introduction to Digital Automata

2) Write a one paragraph describing the Turing test and another paragraph describing an argument against the Turing Test, known as the about the Chinese room.

The turing test is a test of a machine's ability to show intelligent behavior.  For example, a computer engages in a natural language conversation with a human and than the computer will learn people to speaking that it sound is as same as human being.

 An argument that has been put forward against the Turing Test is known as the Chinese room.  According to John Searle said that in 1980 in his paper title 'Minds, Brains and Programs' which he had determined through experimentation (Wikipedia, 2011).  Searle argued that software could pass the Turing Test simply by mainpulating symbols of which they had not understanding.

In Wikipedia.Retrieved (14 May 2012 at 14:46) The Turing Test.From <http://en.wikipedia.org/wiki/Turning_test.>

3) 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. 

Yes. I think a virtual agents can succeed in delivering high-quality customer service over the Web? As agents who want to earn profit, who will provide a good customer service.  They will provide a clearly and information and help the customer step by step to follow the instruction.  Until the customers willing to purchase a products.  Therefore, a virtual agents can delivering high-quality customer service.

Week 6 - Digital Markets Notes and Exercises

Question 1

a) What experiences have you had with shopping online?

Although I didn't have any shopping online, I know that shopping online is very easy and convenience for customers to select their favours.

 

b) Describe a good experience.

I am no any experience in shopping online.

 

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

 If I want to purchase some products, I also go to the online store (e.g. Healthy & Heartwise, Harvey Norman...etc.) to navigating the product's introduction and price.

 

d) Describe a bad experience.

Because of I never go to the online store, so, I am not bad experience anymore.

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

I think that the online store have many advantages and disadvantages.  An advantages are convenience-it provide 24/7 online.  Customers want to purchase at anytime and anywhere.  Disadvantages are very convenience.  Customers easy to buy, sellers easy to earn. 

 

f) What features make an online store more appealing?

 The features of products photo are more appealing at the online store.

 

g) What features make an online store less appealing?

The less appealing of online store is too complex and to many words.

 

h) Should we expect to see the prices of goods and services rise or fall due to the migration of consumers online?Yes. This is good point.  The prices of products rise or fall will affect the customer's behaviour and the elastic of demand.  Furthermore, in the perfect competition market, there is not price taker, the sellers, whose products is the highest quality and low price, they will get profit. 

Question 2

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

However, several studies find substantial
and persistent dispersion in prices on the Internet. This price dispersion may be explained, in
part, by heterogeneity in retailer-specific factors such as trust and awareness. In addition, we
note that Internet markets are still in an early stage of development and may change dramatically
in the coming years with the development of cross-channel sales strategies, infomediaries and
shopbots, improved supply chain management, and new information markets.

Price dispersion is typically seen as arising from high search costs (Burdett and Judd 1983; Stahl
1989, 1996)dispersion to retailer segmentation strategiesand, in one case, to price discrimination.This price dispersion may be explained by heterogeneity in retailer-specific factors such as branding and trust, retailer efforts to build consumer lock-in, and various retailer price discrimination strategies.

http://ecommerce.mit.edu/papers/ude

Forthcoming in Erik Brynjolfsson and Brian Kahin, eds, Understanding the Digital Economy,
MIT Press, 1999.

b) The importance of brand names will decrease.

 I disagree.  It is because brand names is the part of marketing strategies. Positioning strategies are use brand names to keep in the customer's mind.

 

c) Price competition will make all products cheaper.

According in economic foundatmental, the price competition, which the number of supplier increase or the government give the subsitive the supplier.  The supply cure will righshift and the prices of products will be decreased.

 

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

I disagree.  It is because if the sellers can created a good marketing plan and strategies.  Keep the customers have a good in trust. I believed that everyone can be become dominated.

e) How do you think the balance of power between buyer’s and seller’s will change?

I think that the change in demand or supply will change the balance of power between buyer and seller.  If change in demand in the determinant of income.  For example, the buyer's income decreased, than, the buyer will buy less normal goods and buy more inferior goods.

 

f) Prices are clustered online.

I disagreed.  It is because many seller unwillingness to reveal their product's price online.  This means that there have many competitors are online.  Therefore, the sellers create many form for their customer to become their member. After that, only member can review the product's price.

 

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

I agreed.  Price elasticity measures the responsiveness of demand and supply quantities to changes in price.  

 

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

When the prices are reveal to the public that everyone can be review, even if, the buyers or sellers. (e.g. eBay, Price.com ... etc.)

Question 3

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

GPS services, Internet, SMS, Games and entertainment...etc.

 

b) Which of these services do you use?

 SMS, Internet and GPS.

 

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

 Banking with ANZ bank to made a transaction to settle the rental fee.

 

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

Not yet.

 

e) What is your opinion of wireless advertising/mobile marketing?
Very disturb.  It waste the customer's time to look at this.