Marketing on the Internet
MKT 435
Fall 2000

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Class Discussion Questions

This page was updated on 12/13/00.

History of the Internet
In your own words, what is the Internet?
Be prepared to briefly summarize what you found out about the history of the Internet.
What is the most interesting thing you found in reading about the history of the Internet?
Why should we care about understanding how the Internet has evolved?

Strauss & Frost Chapter 1 - Introduction to the Internet
In your own words, what is the Internet?
Why should you study Internet marketing?
Be prepared to summarize the hierarch-of-effects model and how it relates to Internet Marketing.
Why would a business be interested in Internet marketing?
In what ways are businesses using the Internet?  (What are the various Internet Business models?)

Hanson Chapter 1
Describe each of the three major Web site "stages" according to Hanson.
Describe the four stages of technological change that has shifted emphasis back toward focusing on the customer.  How does the Internet fit into this discussion?

Hof (Business Week Article) - "A New Era of Bright Hopes and Terrible Fears"

Hof states "The Internet puts the customer in charge as never before."  What does he mean?  What is the basis for this statement?
According to Hof, what advantage does Amazon.com have over Barnes & Noble?
What does it mean to "get Amazoned"?

Anders (WSJ Article) - "Buying Frenzy"
Can the Internet continue to grow at the rate pointed out in the article?
Will the Internet continue to grow at the rate pointed out in the article?
Why is business-to-business commerce so big on the Internet?
What do you think of the statement "in five years...all companies will be Internet companies"?
How might customer service be improved by Internet marketers?

Strauss & Frost Chapter 2 - Internet User Characteristics and Behavior
What questions should a firm be asking in trying to determine if an investment in Internet programs is worthy of pursuing?
What are the various "diffusion of innovation" adopter categories?   Why would an Internet marketer care?
What is the best way to segment Internet users?  What variables might you use to segment customers or potential customers? 
Which of the following segmentation variables might be used by (1) an online mortgage company, (2) an online toys company,  (3) Ford Motor Company, and (4) Fridgedoor.com (an online magnet store) to attract new customers?
Demographic variables (age, gender, household income, education, others)
Geographic variables (specific cities, regions, states, countries)
Psychographic varibles (personality, values, lifestyle, activities, interests, opinions, VALS categories)
Behavior (benefits sought, product usage)
What is "flow"?  Why is this of concern to an Internet marketer?
Would you consider the Internet to be an appliance?  Why or why not?

Peterson (WSJ Article) - "Lost in the Maze"
How are people currently using the Internet?  How might this change over time?
Why are portals becoming so important?

Leonhardt (Business Week Article) - "Lemonade Stands on Electric Avenue"
What marketing implications do you see potentially arising from people starting "mom and pop" Internet businesses at home?
How can affiliating with eBay, HyperMart, or ShopNow.com help these startups?
How might affiliating with eBay, HyperMart, or ShopNow.com be a disadvantage to these startups?

 

Strauss & Frost Chapter 3 - Online Research
What is the difference between primary and secondary data?
How might you assess the quality of data collected via the Internet?
Why is it important to assess the quality of data collected via the Internet?
In what ways would each of these primary data collection methodologies differ from the traditional methods if applied on the Interent?

Online experiments
Online focus groups
Online observations
Online survey research

What are the advantages of conducting online survey research?  What are the disadvantages?
How might the Internet change the way a company does marketing research?

Green (2001) "Evaluating Web Sources"

Why is it important to evaluate the quality of information found on the Internet?
What is the CARS Checklist that Green proposes?  
What does each letter of CARS represent?
What one additional criteria would you add to this list?

White (2000) "Marketing Research on the Internet Has Its Drawbacks"

According to White, what are the advantages of doing survey research on the Internet?
According to White, what are the disadvantages of doing survey research on the Internet?

Dreazen (2000) "U.S. Unveils New Quarterly Index to Track E-Commerce"

No discussion questions will be used for this reading.

 

Strauss & Frost Chapter 4 - Product and Pricing on the Net

Product Questions:

What are four ways to reach a customer that have interactive capabilities (and thus allow transactions to occur)?
Of the four major areas Mougayar (p. 132) suggests are ripe for Internet commercialization, which do you think has the most potential:  communications and collaboration, networked applications, real-time multimedia, or electronic commerce?
Why is a brand important to an Internet marketer?

Pricing Questions:

What forces are driving prices down for those firms doing business through the Internet?
Why are costs often lower for those firms who do business on the Internet?
What three pricing strategies are often used in environments where there is downward price pressure?  Be prepared to describe each.

Fletcher (WSJ Article) - "Should You Get a Mortgage Online?"
Who is the target market of a typical online mortgage company?  (Describe them in as much detail as possible.)  What are their needs?  (Be specific.)
What exactly is the service being offered?
What are the advantages of an online mortgage vs. a traditional mortgage?
What are the disadvantages of an online mortgage vs. a traditional mortgage?
If you were the marketing manager of an online mortgage company, how would you suggest positioning your product?
Pick a web site from the article (or another of your own choosing) that provides mortgages online.  Walk through the web site and be prepared to report on your experience.

Cowan (WSJ Article) - "The Best Way to...Make Travel Plans"
Who is the target market of a typical Internet travel planning company?  (Describe them in as much detail as possible.)  What are their needs?  (Be specific.)
What exactly is the service being offered?
What are the advantages of an online travel planner vs. a traditional travel planner?
What are the disadvantages of an online travel planner vs. a traditional travel planner?
If you were the marketing manager of an online travel planning company, how would you suggest positioning your product?
Pick a web site from the article (or another of your own choosing) that provides travel planning online.  Walk through the web site and be prepared to report on your experience.

 

Warner (2000) - WSJ Article "Online Auto-Sales Sites Retool"

What have been the traditional models used for selling automobiles on the Internet?
How do the approaches by Autobytel.com and Greenlight.com differ?
What advantages are there to consumers in buying automobiles over the Internet?
What drawbacks or potential problems do YOU see with selling automobiles over the Internet?
Will the traditional (bricks and mortar) auto dealer survive?  Why or why not?

Lohse (2000) - WSJ Article "Major Auto Insurers Are Warming Up to Internet Sales" 

Why is car insurance "ripe for being sold over the Internet"?
What advantages are there to consumers in buying automobile insurance over the Internet?
What drawbacks or potential problems do YOU see with selling automobile insurance over the Internet?
Will the traditional (bricks and mortar) auto insurers survive?  Why or why not?
What do you think of Esurance's marketing strategy to primarily build its brand through alliances with other well-know web sites (e.g., Autobytel.com for car insurance and Homestore.com for home insurance)?

Warner (1999) - WSJ Article "General Motors Looks to the Future With Internet Unit" 

What challenges does GM face in developing a presence on the Internet?
What must be done internally for GM to offer a "web car" (a customized vehicle) that can be made available to customers in less than 10 days?
What do you think of GM's plan for GM.com to be the portal for consumers to reach all of its Internet Products?

Lavoie (WSJ Article) - "Name-your-price Ticket Services Burgeoning"

Why has the name-your-price approach for airline tickets attracted so many customers?
What are the drawbacks to this approach?
In what other industries do you think this approach would work?  Why?
In what industries do you think this approach would never work?  Why?

 

Sapsford (WSJ Article) - "You've Got Mail (With Cash!)"

What is the concept behind PayPal.com?  (What is the primary benefit they provide to customers?)
Do you think this Internet service will be a success in the long run?  Why or why not?
What do you think of PayPal's promotional strategy of providing a $10 virtual coupon to any user who signs up a friend (and gives $10 to the friend too)?
Some investors value Web-based financial-services companies at $1,000 to $10,000 per customer.  What do you think of that estimate?

Anders (WSJ Article) - "EBay, Wells Team Up on Web Payments"

What is the primary benefit that Billpoint will provide to customers?  (Who are the customers here?)
What do eBay and Wells Fargo hope to gain with their joint venture?
Compare and contrast this service with PayPal.com.

Sports Illustrated Article - "E-Scalping?"

What is the primary benefit that the Giants' Double Play Ticket Window provides?  (Who are the customers here?)
What do you think of this practice, given that it provides the Giants with an additional (projected) $400,000 in income on tickets they have already sold once?

 

Strauss & Frost Chapter 5 - The Net as Distribution Channel

What is a distribution channel?
What are the various functions of a distribution channel? What is unique about each of these functions in the context of the Internet?
What are the advantages of a direct distribution channel?  The disadvantages?
What are the benefits of purchasing online?
What are the obstacles of purchasing online?

Himelstein (WSJ) "Can You Sell Groceries Like Books?"

What is Webvan's value proposition?  Does this differ from other online grocers?
Why has the growth of online grocery sales been so slow? 
What do you think of Webvan's strategy of carrying 20,000 more items (67% more) than the typical grocery store?
What other types of products is Webvan thinking about selling?  Which ones seem to make the most sense?

Thurm (WSJ) "Getting the Goods"

According to this article, what is the leading cause of complaints about online retailers?  Why do you think this is the leading cause of complaints?
What do online customers expect when it comes to distribution?
Why are many online retailers investing heavily in distribution centers?  Does such a focus contradict a major advantage of web-based businesses (that of NOT being a "brick and mortar" shop)?

Blackmon (WSJ) "The Milkman Returns–With Much More"

What are the major competitive advantages online grocers have over their "bricks and mortar" cousins?  The major competitive disadvantages?
Do you think home grocery delivery (organized through the Internet) will be successful in the long-run?  Why or why not?
What products are best suited for home delivery?
What products are not well suited for home delivery?

Anders 1999 (WSJ) "How Webvan Conquers E-Commerce’s Last Mile"

What expectations would customers have in home delivery of groceries? 
What are some of the logistical issues surrounding home delivery of groceries?
The article seems to indicate that Webvan provides free delivery. Is this a sound business strategy?
In the grocery industry, the traditional strategy has been a price strategy, the focus is on volume, and the margins are usually small (1-2%). A primary reason for such an approach is that customers typically are price sensitive when it comes to food. Will this traditional strategy work in the online world of grocers?

 

Web Site Layout and Design

Hofacker (Internet Marketing) "What a Web Site Should Look Like"

According to Hofacker, what are the "three classic ways" to set up a home page?
What are some key rules to keep in mind when designing a web page?

Hofacker (Internet Marketing) "Web Site Copy"

What is copy?
Hofacker suggests breaking text up into "modules."  Why?  How might one go about doing this?

Buskin (WSJ) "Looking Good"

What are four web site evaluation criteria suggested by Forrester Research?
What additional criteria would you add to this list?

Rewick (WSJ) "Elements of Cyberstyle"

Do you think content on the web should be different than content in traditional media?  Why or why not?
Mr. Jimerson suggests web readers not only want good information, but they also want to be entertained.  Do you agree?

 

Strauss & Frost Chapter 6 - Marketing Communications on the Internet

What are the major components of Integrated Marketing Communication?  Describe each.
According to the authors, what are the four stages of banner advertising?
What is the current average click-through rate for banner ads?  What do you think would be a suitable click-through rate?
What types of public relations activities can be done via the Internet?
What types of sales promotions can be done via the Internet?
How might the Internet be used in personal selling?
What are the strengths and weaknesses of marketing communication on the Internet?

Hofacker (Internet Marketing) "Banner Advertising"

According to Hofacker, what are three goals of advertising?
Describe the three banner advertising pricing strategies that Hofacker discusses.
According to Hofacker, what are the three "links" in a banner tactical "chain"?

Buskin (WSJ) "Online Persuaders"

What would be the difference in advertising strategy in trying to reach "active" users versus "passive" users?
Are banner ads a good use of a firm's advertising dollars?  Why or why not?
What is "permission marketing"?  When is it likely to work best?
What is "interruption marketing"?   When is it likely to work best?

Petersen (WSJ) "Getting Noticed"

What is "viral marketing"?  When is it likely to work best?
What would you suggest an Internet company do to "get noticed"?

Wingfield (WSJ) "The Name of the Game"

Why is a company's domain name so critical?
How do you get a domain name registered?

Hwang and Mangalindan (WSJ Interactive) "Yahoo!'s Grand Vision for Advertising On the Web Takes Some Hard Hits"

Why is Yahoo's idea, that advertisers will pay a big premium to be on the web's biggest and best known sites, coming under attack?
What is the current average estimated click-through rate of web banner ads?  How does this compare with typical junk mail response rates?
What do you think of the strategy of paying for banner ads based on the number of impressions?

 

Strauss & Frost Chapter 7 - Relationship Marketing Through Online Strategies

What is relationship marketing?  Why has this concept received so much attention in recent years?
What are the benefits of relationship marketing for firms?
What are the benefits of relationship marketing for customers?
How have you seen relationship marketing practiced online?
In what other ways could relationship marketing be done online?
The authors suggest consumers are more loyal online than "off line."  Do you agree?  Defend your position.

Holmgren (Business Week) "Customers Move Into the Driver's Seat"

One expert expects "90% of manufacturing to move to the Internet."  Why?
What is "not-at-all manufacturing"?
What are the benefits to manufacturers who offer customized cars via the Internet?

Bulkeley (WSJ) "We're Watching You"

In what ways have "cookies" allowed marketers to collect information that was not previously considered acceptable or practical?
How can "cookies" be used to add value to the customer's experience?
In what ways might marketers abuse "cookies"?

Anders (WSJ) "Better, Faster, Prettier"

One expert suggests companies "build up their Web capacity beyond what they need for the next 12 months."  What do you think is the reasoning behind this?

Weber (WSJ) "To Build Virtual Trust, Web Sites Develop 'Reputation Managers'"

What is a reputation-manager system?
Why have many Internet companies found it preferable (necessary?) to create reputation-manager systems?
 

Bransten (WSJ) - "Buying the Buyers"  (Article not provided.)

Do you agree with more.com's marketing strategy of maintaining the same price for a tube of toothpaste (and free shipping) for a customer for life?
What other marketing strategies could be employed on Internet sites to encourage customer loyalty?

 

Hanson Chapter 7 - Personalization

Describe the four types of customization suggested by Gilmore and Pine (1997).
Describe the four cells of Peppers and Rodgers' (1993) 1-to-1 Matrix and discuss when personalization makes the most sense.

Strauss & Frost Chapter 8 - The Internet Marketing Plan

No discussion questions.

 

Final Exam

Reicheld and Schefter (Harvard Business Review) "E-Loyalty: Your Secret Weapon on the Web"

No discussion questions.

 

Hits

Dwayne D. Gremler
Copyright © 2000. All rights reserved.
Revised: December 13, 2000.