Wednesday, April 8, 2015

E Commerce issues- 2. Identifying E-Business Models and Revenue-Generation Methods

·         Zappos
                            I.     The business model for Zappos is to create a loyal customer base, as well as building a relationship with the customer. This is done by emphasizing customer satisfaction, rather then sales. By doing this, it allows Zappos to keep its customers and even if they make a mistake, they will assist the customer to ensure that they make a mistake turn into a positive outcome. They call their strive for the best customer service the WOW philosophy, and by doing this, it allows Zappos to profit off customers who return because of the good service they received. The ads on the website are links to their social media page, or other types of Zappos information such as gift cards, sweepsteakes, and specials. I did not see many ads for things I have searched or any advertisement in general. Zappos does used interest based ads from Amazon.com. The information you search on amazon become ads on Zappos, known as targeted ads.
·         Rackspace
                            I.     Rackspace has the business model of hosting cloud computing services. With the rise of technology, cloud based IT infrastructure are becoming the norm in businesses. With a focus on customer service, Rackspace will expand along with its open source framework and with an expected 20% increase in cloud computing over the next few years. The ads that came on the screen were Jimmy Johns, which used to be a previous employer of mine, but I am not sure if that connection was made by chance, because I have not searched Jimmy Johns at any point on my computer. Other ads on the page are banking, stock trading, and ad council powered ads.
·         Hometown Favorites
                            I.     Hometown favorites is an ebusiness that focuses on selling candy from different decades from the past. It is a method to make profit on selling retro food. There is no ads on this website, however they do recognize different. They do not mention anything about putting ads on their website.
·         Twitter
                            I.     Twitter is a microblog that allows users to post a status, picture, or replies to people using up to 140 characters per post. They help advertise your company by Reaching the right audience by targeting based on interests, geography, gender, device, or users similar to your followers.
·         Hulu
                            I.     Hulu is a video streaming website where users can watch TV shows or movies for a small monthly fee. Their business method is to captivate and connect people with the stories they love by creating amazing experiences. Hulu using cutting edge technology to target users with ads that they care about based on target marketing.

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