5 1 1 1 5 2 1 2

5 -1 1 -1

5 -2 1 -2 Chapter 5 Strategy Formulation: Customer Interface Mc. Graw-Hill/Irwin Copyright © 2004 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 5: Strategy Formulation: Customer Interface 5 -3 1 -3 • Questions Answered in this Chapter: – What are the seven design elements of the customer interface? – What determines the look-and-feel of the design? – What are three content classifications? – Why be concerned with community? – What are the two ways in which websites can achieve customization? – What types of communication can a firm maintain with its customer base? – How does a firm connect with other businesses? – What commerce features help websites perform financial transactions?

Introduction • Customer interface – is the virtual representation of a firm's chosen value proposition • Seven design elements of customer interface (7 Cs) – – – – Context Content Community Customization Communication Connection Commerce 5 -4 1 -4

Exhibit 5. 1: The 7 Cs of Customer Interface 5 -5 1 -5 Context Site’s layout and design Content Text, pictures, sound, and video that webpages contain Commerce Site’s capabilities to enable commercial transactions Community The ways sites enable userto-user communication Connection Customization Site’s ability to self-tailor to different users or to allow users to personalize the site Degree site is linked to other sites Communication The ways sites enable siteto-user communication or two-way communication

Exhibit 5. 2: Fit and Reinforcement of the 7 Cs 5 -6 1 -6 Business Model Individually Supporting Fit Context Content Community Customization Communication Consistent Reinforcement Connection Commerce

What Determines the Look-and-Feel of the Design? First: Context • 5 -7 1 -7 Context – captures its aesthetics and functional look-and-feel • Dimensions of Context 1. Function refers to the organization and accessibility of information • • Section Breakdown is the way the site is organized into subcomponents Linking Structure enables users to move easily between sections Navigation Tools facilitate how the user moves through the site Speed is measured by the time needed to display a page on a user’s screen Reliability how often a site experiences “downtime” Platform Independence is measured by how well the website can run on multiple platforms, including old versions of Web browsers Media Accessibility the ability of a site to download to various media platforms

First: Context (cont’d) 2. 5 -8 1 -8 Aesthetics refers to the visual characteristics of a site • • Color Scheme refers to the colors used throughout the site Visual Themes help to tell the story portrayed across the site Context Classifications • – Aesthetically Dominant: Emphasis is on the look-and-feel of the site. • – This type of site makes heavy use of visual elements Functionally Dominant: Emphasis is on the display of textual information. • – This type of site limits the visual design to a minimum Integrated: Balance of form and function. • These sites have a clear and appealing theme that support the underlying graphics

Exhibit 5. 3: Form vs. Function -The Design Context Frontier High 5 -9 1 -9 Integrated Aesthetically Dominant Frontier is gradually moving outward as technology advances Low Functionally Dominant Low High FUNCTION

Exhibit 5. 4: Aesthetically Dominant example—KMGI. com 5 -10 1 -10

Exhibit 5 -5: Functional Dominant— Brint. com 5 -11 1 -11

Exhibit 5 -6: Integrated Example— Patagonia. com 5 -12 1 -12

Second: Content Deciding What Information to Include 5 -13 1 -13 • The Content of a website – refers to all the digital information on the site • Evaluating Content – Offering Mix • Content of a site can include products, information, services, or a mix of these three – Appeal Mix • Company's value proposition is projected in the promotional and communications messages of a site – Multimedia Mix • Refers to the choices of media including text, audio, image, video and graphics – Timeliness Mix • information presented on a site is time-sensitive – Current Content – • Highly time-sensitive information with very short shelf life – Reference Content – • less time-sensitive information with longer shelf life

Exhibit 5 -7: A Framework to Understand Content Classifications Multiple NUMBER OF PRODUCT CATEGORIES Superstore Specialty Store Category Killer Single Narrow Broad DEPTH OF PRODUCT LINE 5 -14 1 -14

Second: Content (cont’d) 5 -15 1 -15 • Content Classifications – Product Dominant: Encompasses store sites that primarily sell physical goods • Superstore – One-stop shop offering a wide range of goods in multiple product categories • Category Killer – Sites offering a comprehensive selection of products and services but only within a specific category • Specialty Store – Stores offering exceptional quality and exclusivity in single or multiple categories of products – Information Dominant: Encompasses store sites that focus heavily on information – Service Dominant: Encompasses store sites that focus on the services offered, often for a fee

5 -16 Exhibit 5 -8: Category Killer Example 1 -16 —Pet. Smart

Exhibit 5 -9: Specialty Store— Frontgate. com 5 -17 1 -17

Exhibit 5 -10: Information-Dominant Example—Fast Company 5 -18 1 -18

Exhibit 5 -11: Service Dominant Example—Plastics. Net 5 -19 1 -19

Third: Community 5 -20 1 -20 • Community includes a feeling of membership in a group along with a strong sense of involvement and shared common interests • Five components determine the shape of online communities: – – – Characteristics Member Motivation Member Participation Member Benefits Interaction Tools

Characteristics • The more evolved the community the more likely it is to have these six characteristics – Cohesion- the community develops a group identity – Effectiveness- the group has impact on members’ lives – Help- members feel comfortable asking for and receiving help from other members – Relationships- interaction between individuals leads to friendships – Language- members develop a specialized language and/or abbreviations with unique meaning within the community – Self-regulation- the group sets rules for its own interaction and develops a system for policing itself 5 -21 1 -21

5 -22 Exhibit 5 -12: Communities—Elements, 1 -22 Types & Benefits Why members are motivated to join the community How members participate in the community Characteristics • • • Cohesion Effectiveness Help Relationships Language Self-regulation Member Benefits • • Need fulfillment Inclusion Mutual influence Shared experiences/ information Interaction Tools

Community Classifications 5 -23 1 -23 • Nonexistant- sites that have no community offer no way for users to interact with one another, on either a one-to-one basis or one-to-many basis • Limited- sites that offer features such as reading and posting information, stories, or opinions • Strong- sites that offer interactive community functions such as chat rooms and message boards

5 -24 Exhibit 5 -13: Limited Community 1 -24 Ex. Gillette Women’s Cancer Connection

Exhibit 5 -14: Strong Community Example—Bolt. com 5 -25 1 -25

Fourth: Customization Creating an Individualized Website • refers to a site's ability to tailor itself to each user or to be tailored by the user • Dimensions of Customization – Personalization: • user initiates & manages the customization process – Tailoring: • Software dynamically publishes unique versions of the site to address specific user's interests, habits & needs more appropriately 5 -26 1 -26

Fourth: Customization (Cont’d) 5 -27 1 -27 • Commonly used customization features: – E-mail accounts • Users can send and receive e-mail from the site, using a free, unique e-mail address – Content and layout configuration • Users can design their own homepage, within limits, by choosing background colors, layout design, and content sources – Storage • Users can store e-mail, URLs, favorite content, or items they want to buy – Agents • Computer programs can perform simple tasks upon request, such as notifying a user via e-mail when a product is in stock

5 -28 Exhibit 5 -15: Personalization by User 1 -28 Example—My. Look. com

Exhibit 5 -16: Tailoring Example— Amazon Homepage for Two Users 5 -29 1 -29

Fifth: Communication Keeping in Touch with Users 5 -30 1 -30 • refers to the dialogue between a site & its users • Dimensions of Communication – Broadcast • One-way information exchange from organization to user. • can be in the form of mass mailing, FAQ, e-mail newsletters, content-update reminders and broadcast events – Interactive • Two-way communication between the organization and a user. • can be in the form of e-commerce dialogue, customer service and user input

Fifth: Communication • Communication Archetypes – One-to-One, Non-Responding User • User receives personalized messages to address specific interests or needs without a need to respond – One-to-One, Responding User • User responds to personalized messages sent by the site – One-to-Many, Non-Responding User • Site messages are announcements that users receive without needing to respond – One-to-Many, Responding User • Site messages are invitations to users to submit their comments and responses 5 -31 1 -31

5 -32 1 -32 Exhibit 5 -17: One-to-One, Live Interaction Example—Live. Person. com

Sixth: Connection Linking with Other Websites 5 -33 1 -33 • is the degree to which a given site is able to link to other sites • Dimensions of Connection – Outside Links • Links that take the user completely outside the home site and into a third-party site – Framed Links • Links that take the user to a third-party site that open in the same browser window and that are framed by the home site in some way – Pop-Up Windows • Links that open up the new site in another browser window while the original website stays in the background – Outsourced Content • Content that comes from an outside supplier

Exhibit 5 -18: Outsourced Content Example—Real. com 5 -34 1 -34

Sixth: Connections Classifications • Destination Site – Provides almost exclusively site-generated content with very few links to other sites • Hub Site – Provides a combination of site-generated content and selective links to sites of related interests • Portal Site – Consists almost exclusively of links to a large number of other sites 5 -35 1 -35

Exhibit 5 -19: Destination Site— NYTimes. com 5 -36 1 -36

5 -37 Exhibit 5 -20: Hub Example —Industry 1 -37 Central

Exhibit 5 -21: Portal Site Example— Yahoo 5 -38 1 -38

Seventh: Commerce Enabling Financial Transactions • refers to the sale of information, products or services on the site. • Dimensions of Commerce – Functional tools that are the commerce-enabling features of a website • Registration • Orders Through Affiliates • Shopping Cart • Configuration Technology • Security • Order Tracking • Credit-Card Approval • Delivery Options • One-Click Shopping 5 -39 1 -39

Seventh: Commerce (cont’d) 5 -40 1 -40 • Commerce Classifications: – Low • These websites have the ability to process transactions, but with few of the tools that enable e-commerce – Medium: • Some websites have no need for all the commerce activities and contain financial transactions as a necessary feature but not as their main purpose. – High • These websites are fully equipped with all or almost all the functional tools that enable e-commerce.

Exhibit 5 -22: Map of 7 Cs Framework 5 -41 1 -41 Context Aesthetically dominant Functionally dominant Integrated Content Product-dominant Informationdominant Service- dominant Nonexistent Limited Strong Generic Moderately customized Highly customized Community Customization Communication One-to-many, nonresponding ng user One-to-one, nonrespondi ng user One-to-one, responding user Connection Destination Hub Portal Commerce Low Medium High

Exhibit 5 -23: Foot Locker (www. footlocker. com) 5 -42 1 -42 Context Aesthetically dominant Functionally dominant Integrated Content Product-dominant Information-dominant Service-dominant Nonexistent Limited Strong Generic Moderately customized Highly customized Community Customization Communication One-to-many, nonresponding user One-to-many, responding user One-to-one, nonresponding user One-to-one, responding user Connection Destination Hub Portal Commerce Low Medium High

Exhibit 5 -24: Cool Running 5 -43 1 -43 (www. coolrunning. com) Context Aesthetically dominant Functionally dominant Integrated Content Productdominant Information-dominant Service-dominant Nonexistent Limited Strong Generic Moderately customized Highly Customized Community Customization Communication One-to-many, Nonresponding user One-to-one, nonresponding user One-to-one Responding user Connection Destination Hub Portal Commerce Low Medium High

Exhibit 5 -25: Market. Watch. com (www. cbs. marketwatch. com) Context Aesthetically dominant Functionally Dominant Integrated Content Product-dominant Information -dominant Service-dominant Nonexistent Limited Generic Moderately customized Community Customization Communication One-to-many Nonresponding user One-tomany, responding user 5 -44 1 -44 Strong Highly customized One-to-one, nonresponding user One-to-one, responding user Connection Strong Destination Hub Portal Commerce Low Medium High

Exhibit 5 -26: CBS Market. Watch. com Homepage 5 -45 1 -45