CHAPTER-5

1. What is the value proposition that Square offers consumers? How about
merchants? What are some of the weaknesses of Square’s system?

Answer: - Square is great for consumers and merchants. Merchants, no matter their
location, are able to give a consumer the ability to pay them with their credit card.
Merchants are only charged 2.75% of every transaction. The weakness here is that Square
loses money on transactions less than $10 because they have to pay credit companies
over 2%. Another weakness is their dependency on businesses owning an iPad. The best
app, which is a suite designed to do everything from being a cash register to figuring out
what item sells the best, is only for iPad.

2. Why would telecommunications carriers like AT& T and Verizon want to move into
the payments business? What chance do they have to compete against Google?
What’s their advantage?

Answer: - Large communication carriers want to move into the payments business
because they are in touch with hundreds of millions of cell phone subscribers within the
United States. By tapping into cell phone subscribers within the United States. By
tapping into this business, it opens up the capability to collect data on their users, and
later use that date to market to them and get them to spend more money with them. The
advantage lies within the amount of the customers and the availability of contact with
them. Also due to their experience in the industry, they have developed a billing system
that is nearly perfect and can be used as a payment system as well. They can compete
against Google because the consumer would be better integrated with their carrier.

3. What advantages does PayPal have in the mobile payment market? What are its
weaknesses?

Answer: - PayPal is at an advantage in the mobile payment market because they already do
this job, just through a different medium, which is only slightly different in the eyes of a
consumer. People who already use PayPal would enjoy using it on their mobile phone so
they are always connected to their account, no matter where they are. Their weakness is
that a consumer cannot use PayPal to pay for things in stores. They are also at a
disadvantage because they were beaten to this advancement by Square.

4. What strategies would you recommend that PayPal pursue in order to translate its
dominance in alternative online payments into a strong position in the emerging
mobile payment market, especially in on-premise payments?
 Answer:- The strategies that would recommend for PayPal to pursue in order to translate
its dominance in alternative online payments into strong position in the emerging mobile
payment market, especially in on-premise payments could be that PayPal has be on its
toes to make this translation. PayPal has to have a background and reality check firstly,
this is positive then it has to go with severe advertising campaigns to ensure the
customers get aware about the PayPal’s on-premise payment facilities. The company has
to invest a lot in world of mouth promotion and has to ensure that customers are getting
the true sense of what is being getting translate at PayPal.

CHAPTER-6

1. pay a visit to your favorite portal and count the total ads on the operating page.
Count how many of these ads are (a) immediately of internet and relevant to you,
(b) sort of interesting or relevant but not now, and (c) not interesting or relevant. Do
this 10 times and calculate the percentage of the three kinds of situations. Describe
what you find and explain the result using this case.

Answer:- www. franchiseindia. com is very good wed portal. On its opening page there
are 66 ads. It is a very good portal for young entrepreneurs. An entrepreneur struggling
with fund availability, the ads on this portal can be categorized as below:

(a) Immediately of interest and relevant : 35 (53%)

(b) Sort of interesting and relevant but not now : 18 (27%)

(c) Not interesting or relevant :13 (20%)

2. Advertisers use different kinds of “profiles” in the decision to display ads to

customers. Identify the different kinds of profiles described in this case, and explain
why they are relevant to online display advertising.
Answer:- Advertisers use different profiles in the decision to display ads to customers.
The different types of profiles described are the combinations of consumer characteristics
that an advertiser would like to target. A profile also includes the online behaviors. For
example, a sweet scented perfume brand would target young females who are recently
browsing beauty supply storcharacteristics and online behaviors are represented as a
profile needed to aid programmatic advertising. Cookies and beacon data are
technologies used to acquire individual data. Once the characteristics are defined,
advertisers can utilize the statistics to expose a personalized ad within most effective time
 frame. The personalized ads are tailored to each individual’s set of characteristics to
increase consumer relativity and awareness. Thus, display ads only portray messages to
specific consumers that may be interested in, based on their online profile. They are
relevant to online display advertising because it is a more effective way of optimizing
positive consumer results. Consumers would more likely be interested in an ad that’s
relevant to them. It will also yield higher chances for a consumer to purchase as a result
of the ad exposure.

3. How can display ads achieve search-engine–like results?

Answer:- Display ads can achieve search-engine-like results by capturing the interests of
individuals through the instance of searching and using display ads relevant to those
searches. With the use of tracking soft wares suck as beacons, web bugs, cookies, and
flash cookies, it enables advertisers to obtain profiles of consumers. The profile is the
information regarding the online behavior and characteristics of consumers. To be
specific, the product pages, services, and the search engine keywords used are
constructed as profile information.

4. Do you think instant display ads based on your immediately prior clickstream will
be as effective as search engine marketing techniques? Why or why not?

Answer:- Instant display ads based on prior clickstream will sometimes be as effective as
search engine marketing techniques. There are some disadvantages of using clickstream
behavior, where information may not be relevant for the advertisers to use. Prior
clickstream behavior is defined as recording of consumer behavior in the short term.
Users leave a click path that shows the route to where they had navigated on a website.
For example, a user may click on a clothing store.

CHAPTER-7
1. Find a site on the Web that offers classified ads for horses. Compare this site to
exchangehunterjumper. com in terms of the services offered (the customer value
proposition). What does The Exchange offer that other sites do not?

Answer:- We choose DreamHorse.com to compare the services offered with The

ExchangeHunterJumper.com website. The services offered in
ExchangehunterJumper.com website and DreamHorse.com website as shown in the
table below:

Service| The Exchange| DreamHorse.com|

 Encouraged buyers to fill out a form of their needs and budget| Present| Present|
Printed booklet,
catalog| Present| Present|
Social media| Present| Present|
Horses Sold page| Present| Not present|
Sale Barn page| Present| Not present|
Information of Horses| Present| Present|

2. In what ways were social media effective in promoting The Exchange brand?
Which media led to the most increase in sales and inquiries? Why?

Answer:-

1. It has grabbed attention of potential customers

2. It has increased visibility of the brand

3. It has provided customer feedback and helped improve its services

4. Feedbacks of certified customers have validated the business.

Presence on facebook is the one of social media that led to the highest increase of
sales and enquiries. Facebook has generated 9% of total traffic for The Exchange
website. Facebook is the best and important for e-commerce sites because ease to
determine which outlets that are most effective to reaching the specific buyers.
Followers of the facebook page are greater than those on twitter or any other social
media website.

3. Make a list of all the ways the Exchange attempts to personalize its services to
both sellers and buyers.

Answer :-

1. Develops a specific marketing strategy - reviewing information submitted

combing through a horse’s official show record, considering impartial
impressions, and identifying the most likely buyers.

2. Make a form – buyers are encouraged to fill a form of their budget and needs so
the sellers can comb a listings and make recommendations to match buyers to the
horses that are on sale.

3. Shifted to Google Analytics – to analyse the statistics of traffic or visitors to the

website
 CHAPTER-8
1. Who is harmed by the Library Project? Make a list of harmed groups, and for each
group, try to devise a solution that would eliminate or lessen the harm.

Answer:- Publishing companies and authors are harmed by the Library Project because
of the copyright infringements and royalties. Book stores and distributors would also be
harmed as their profits would spiral down. The publishing companies and authors should
be compensated in some manor for the books that Google is displaying for free. Google
will be receiving funds from the advertising companies to display ads on the “book’s
pages”. A percentage of the advertising profits should be given to the publishing
company and the author of the book for the book that is being viewed for the loss of what
their original royalties would have been. This should be completed per each individual
book as some books may have hundreds of views while others may have only a few per
month. The book stores and distributors may find some solution with Google if they
noted their business name or provided a link to where the book could be purchased. This
should help in their decreasing profits.

2. Why is Google pursuring the Library Project? What is in it for Google? Make a list
of benefits to Google.

Answer:- Google is pursuing the Library Project because it is beneficial for them
financially and “socially”. Google will sell advertising space on the “book’s pages”
which will generate revenue. With the Library Project absorbing books from all over the
world, Google’s user audience will grow. They will also have a “spillover” from one
service to another. Another one of the larger components for their pursuit is that this will
allow the Google search engine to become more valuable because the content is enriched.

3. If you were a librarian, would you support the Library Project? Why or why not?

Answer:- I would not be a supporter of the Library Project if I was a librarian. The
Library Project would rely on libraries making their collections available to them. This
can put an unwanted strain on the librarians because the Library Project would be a
substitution for the library itself. This could lead to possible layoffs or even the closing of
a small library.

4. Why have firms like Amazon, Yahoo and Microsoft opposed the Library Project?
Why would a firm like Sony support Google?
Answer:- Firms like Amazon, Yahoo, and Microsoft oppose the Library Project because
it would allow Google the exclusive rights to sell out of print works that remain under
contract. For Amazon specially, they would have the most to lose as they are a major
distribution especially with their Kindle/Kindle Fire and Kindle books. Sony supports
Google because through an agreement they are able to gain access to thousands of e-
books for their readers. Sony is looking to produce a version of the Kindle called The
Daily Edition.
5. Do you think the Library Project will result in a de facto monopoly in e-books, or
will there be other competitors?

Answer:- The Library project will result in a de facto monopoly in e-books because
Google will be allowed to set the prices in collusion with publishers. This will give
Google no competitors in this domain.

CHAPTER-12
1. If you were the owner of a small chemical company, what concerns would you
have about joining Elemica?

Answer:- The biggest challenge with small companies is the issue of competition and
barriers of entry in an industry dominated by large companies. The first concern is the
provision of a fair platform on which all companies are appreciated. I’d be concerned
about how Elemica can support small companies to gain the reputation of large
companies so that buyers can also get to order from our company. In addition, the
prioritization of the different companies supplying inputs and how they are allocated
space would be a concern. The ability of the company to meet the bids of large supplies
would also be a source of concern. A small company’s scale of production would mean
that it cannot meet the needs of large suppliers who might place high bids. The modalities
of using the Elemica system and the terms and conditions of use present another concern
in choosing to join it.

2. Elemica provides a community for participants in which they can transact,

coordinate and cooperate to produce products for less. Yet these firms also
compete with one another when they sell chemicals to end-user firms in the
automobile, airline and manufacturing industries. How is this possible?

Answer:- By sharing knowledge on production of the inputs, Elemica provides an equal

and fair platform for the different players to compete with each other. The role of
Elemica is not to completely eradicate competition but to rather limit the areas of
competition between the different players. In addition, all the participating traders benefit
through reduced costs of serving customers. In so doing, a company’s overhead costs are
reduced and this may drive the company to profitability. Moreover, the platform assures
the companies of smoother operations and the improvement of the customer experience.
This, Elemica does, through the standardization of the buying process thereby improving
customer service. The competition between the different traders is maintained through the
confidentiality of bids and quotations. For instance, new customers cannot access
previous bids or quotations pertaining to previous transactions. This means that
companies cannot use the issue of pricing as a competing factor since they are kept
confidential. In addition, competition is further ensured through the maintenance of a
large community pool and therefore one or even a few companies cannot meet all the
industry needs.

3. Review the concept of private industrial networks and describe how Elemica
illustrates many of the features of such a network.

Answer:- Such as a private industrial network, Elemica is dedicated to long-term

relationships with partners to reduce long-term costs for the firm. Private industrial
networks on the other hand, it’s not just a single large firm that controls the network,
but it is owned by key industry members trying to coordinate the transactions in an
entire industry.