1. Write a paragraph in which you describe the conditions under which a Web site could become profitable by relying exclusively on advertising revenue. In a second paragraph, provide an example of a company not mentioned in the chapter that is using the advertising-supported model and that is likely to be successful in the long run. Explain why you think it will succeed.
2. Describe two possible service-for-fee offerings that might become available to users of Internet-enabled wireless devices (such as PDAs or mobile phones) in the near future. Write one paragraph for each service in which you outline the profit potential and risk of losses for each.
3. In two paragraphs, explain why a customer-centric Web site design is so important, yet is so difficult to accomplish.
4. In one paragraph, define the term "presence". Write an additional paragraph in which you explain why firms that do business on the Web should be more concerned about presence than firms that operate only in the physical world.
5. Many real estate agents today have Web sites that list the properties they have for sale. These agents also advertise the properties in classified newspaper ads and sometimes in television ads. However, most real estate agents today would tell you that personal contact provides their most important connections with clients, potential clients, and client referral sources. Write three paragraphs in which you briefly describe the things that real estate agents can best accomplish through (1) their Web sites, (2) mass media advertising, and (3) personal contact.
6. Promoting products on the Web is different from using mass media promotion or personal contact. Assume that you want to explain these differences to a person who is planning to open a Web site that will sell snowboarding vacation packages. Write one paragraph about each approach (mass media, personal contact, the Web). In each paragraph, explain the advantages and disadvantages of the approach for the snowboarding vacation package Web business.
Exercises
1. Page 149 includes a list of five things that Web sites can do to meet the needs of visitors. Create a table in which the first column is a list of the five needs of Web site visitors. Find three Web sites that meet three or more of the needs. Create a column for each Web site next to the first column (columns two through four) and rate how well each site meets each need in the first column. You may want to use the Webby Awards site as a starting point in your search, but do not use any of the award nominees or winners as your table.
2. Evaluate the usability of two Web sites that sell large-screen televisions. A list of links to companies that sell this product is included in the Online Companion for this exercise, but you may use other sites if you wish. In your evaluation, compare the sites on how easy it is to learn about the product and purchase the product. Your report should include a section of about 200 words in which you describe the criteria you used in your evaluation, a section of about 300 words that summarizes your findings, and a section of about 100 words in which you present your conclusion.
3. You have been employed by Bob Drudge, the owner of refdesk.com, to explore revenue-generating alternatives. Currently, the site is using an advertising-supported revenue model. Bob wants you to consider each of the other revenue models and the potential of strategic alliances that might make sense for his site. Write a report of about 400 words in which you summarize your research and state your recommendations. Your instructor might assign you to a group to complete this exercise and might ask you to present your recommendations in class.
4. High-end jewelry retailers such as Harry Winston and Tiffany & Co. often use Macromedia's Flash software to create their Web sites. Present three arguments for and three arguments against the use of Flash animations in sites such as these. Consider the retailers' objectives, the characteristics of the products being sold, and the type of customers who visit these sites. Limit your answer to 400 words.