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E-Commerce

30-11-2020
Why do we use Software?

• Perceived Usefulness
• Perceived Ease of Use
• Expectation-Confirmation
• TAM is an intention-based model stipulating that the intention to
adopt a technology is a good predictor of its actual usage
Technology Acceptance Model
T
A
M

t
o
d
a
y
Expectation-Confirmation Model
TOE framework
• The TOE framework classifies technology, organization and
environment as the three sets of factors that affect an organization
adopting innovations (Baker, 2012).
TOE Framework – Adoption of Innovation
• Technological context
• the technological characteristics of an organization usually explain IT
innovation attributes that affect the organisational adoption of IT
innovation
TOE Framework
•  Organizational context
• organisational characteristics affecting the organisational adoption of new
innovative technology .
• Organizational context refers to the features and resources of the
organization or firm. This may include, its human resources, size, managerial
structure, degree of centralization, degree of formalization and linkages
among employees
• Two innovation characteristics within the organisational context as regards
social commerce adoption by SMEs
• top management support
• organisational readiness
TOE Framework
• Top management support refers to the level of support received from
the higher management to adopt innovative technology for business
use.
• organisational readiness, which refers to the level of available
technical and financial resources in the organization to adopt new
innovative technology.
TOE Framework
Environmental context
• in the TOE framework incorporates the structure of the industry, the availability of
technology service providers, and the dogmatic environment of the organization .
• The support infrastructure for technology can influence innovation In addition, the
existence of skilled consultants and workers, as well as other suppliers of technology
services, promotes innovation.
• The environmental context of a TOE framework helps in providing better understanding
of the influence of external environmental pressures on organisational adoption.
• Two innovation characteristics within the environmental context to explain social
commerce adoption by SMEs:
• consumer pressure
• trading partner pressure.
TOE Framework
Consumer pressure
• Several relationship characteristics between organization and
consumer have been identified as playing a significant role in
organizations' adoption of technologies,
• encouragement, commitment and pressure from customers, in addition to
trust between an organization and its customers.
• Satisfying the different needs and expectations of customers by
providing electronic customer services, which allow better interactive
communication with customers, is a key driver of technology adoption
in businesses.
TOE Framework
Trading partner pressure
• To implement Internet-based technologies successfully, readiness of
firms’ suppliers and business partners is a key factor
• This is due to partner relationships where there are critical
determinants of inter-organisational systems adoption proposed that
a powerful supplier could pursue IS strategies to boost its trading
partners to adopt and use new technology.
• https://marker.medium.com/why-tj-maxx-doesnt-need-e-commerce-to-survive-the-pandemic-2b9cb766cedc
Ocloo, C. E.,
Xuhua, H.,
Akaba, S., Shi,
J., & Worwui-
Brown, D. K.
(2020). The
Determinant
Factors of
Business to
Business (B2B)
E-Commerce
Adoption in
Small-and
Medium-Sized
Manufacturing
Enterprises. Jour
nal of Global
Information
Technology
Management, 1-
26.
Reasons for non-adoption of e-commerce
•Problems in measuring benefits of B2B e-commerce efforts
•Internal fear of opening corporate systems to suppliers and customers
•Not enough time to develop new skills for B2B EC efforts
•Lack of interoperability between Web applications and those of business partners
(suppliers, customers, etc.)
•Difficulties in making changes to current corporate culture
•Difficulties in integrating Web applications with existing applications and syste
•Limitations posed by existing database infrastructure in firm
•Lack of communication among the organizational members
•Lack of adequate commitment of resources (finance, human resources, etc.)
•Difficulties in re-designing the business processes for B2B e-commerce
Reasons for non-adoption of e-commerce
• Lack of international access and trade barriers to do e-commerce across national borders
• Lack of clear legal environment
• Uncertain response of business partners towards e-commerce
• Lack of adequate IT/ e-commerce expertise in the firm
• Unresolved security, encryption and authentication issues
• Inadequate mechanisms for protecting data and information in B2B e-commerce
transactions
• Lack of robust and stable infrastructure for e-commerce
• Difficulties in gaining cross-functional cooperation.
• Lack of strategic vision for B2B e-commerce
• Lack of top management support for B2B e-commerce efforts
https://www.youtube.com/watch?v=Fb8C_i4o1yo

Wagner, G., Schramm-Klein, H., & Steinmann, S. (2020). Online retailing across e-
channels and e-channel touchpoints: Empirical studies of consumer behavior in the
multichannel e-commerce environment. Journal of Business Research, 107, 256-270.
The B-C-G connections
Kinds of E-Commerce Websites
Kinds of E-Commerce Websites
• Transactional E-Commerce – Amazon, Flipkart
• Brand Building Websites - talking about websites you love to use!
• https://www.lean-labs.com/blog/website-branding-examples

• Services-oriented relationship-building web sites : audi.com


• Pure publisher models - Access and means to create and publish content were limited to staff editors or
freelancers. Audiences had very little say, while all content decisions were made by publishers: They drew a clear line between
content consumers and content creators; they paid for content creation, and less for technology; and they were responsible for
bad content or copyright infringements. New York Times, Bloomberg and ESPN. 

• Social Network Sites – Facebook, Tumblr, Reddit, Twitter.


• https://techcrunch.com/2014/12/04/platform-or-publisher-whatever-you-call-it-its-the-future-of-media/

• Platform Publishers –
• have evolved and become mainstream like BuzzFeed, Huffington Post, Bleacher Report, Medium, Bustle, Mic and Elite Daily. All of them are more or less in the middle of
this spectrum, embracing the democratization and technology and even opening up their means to content production and distribution to people outside their systems.
Kinds of E-Commerce Websites
How to reach potential customers
Is the title appropriate (Yes/No)?
Is the title appropriate (Yes/No)?

speak to their End Goal – what they’re


looking to achieve – with a headline like
this:
Kill Acne Once & For All
Don’t give up very precious headline space
for something you and the visitor already
know. Instead, give visitors that end
solution they’re looking for.
3 Easy Ways to Get Advertisers on Your
Site
• 1. Promote an affiliate product on your site.
• As an affiliate, you earn a commission each time someone you've
referred makes a purchase. To encourage sales, you might post a
banner on your site that links to the affiliate site or publish a
newsletter article about their product. – Join Amazon’s affiliate
program to get the link to post on your webpage.
• Website.com : https://www.website.com/affiliate/
• Amazon Associates - Amazon's affiliate marketing program :https
://affiliate-program.amazon.in/
3 Easy Ways to Get Advertisers on Your
Site
• 2. Use targeted advertising with Google AdSense.
• These ads are paid for by businesses that use Google's pay-per-click
program, AdWords. These ads reflect the content on your site, so if
your site sells a book on how to recognize authentic baseball cards,
for example, the ads that appear on your site might be for baseball
card retailers.  
• Google AdSense is free to join. It's easy, too. Google does all the work
of finding relevant ads for your site--you just collect the payments.
3 Easy Ways to Get Advertisers on Your
Site
• Approach companies directly to ask if you can advertise for them.
• If your site is already getting lots of traffic, try looking for sites that
offer complementary products and target the same niche market as
you do. For instance, if you own a bridal shop, you could approach a
local florist to see if they'd like to advertise their wedding bouquets
on your site. An ad on your site would also be seen as an implicit
recommendation of their product, and it could send a ton of brides to
their site. 
Keyword Match Types

• Broad match – This is the default keyword match type. Google will match your ad against
the greatest number of possible queries. For example, if you bid on the keyword
“massage,” your ads might show when people search on longer phrases that include
“massage,” like “Miami massage” or “deep tissue massage therapist.” Your ads might also
show for closely related searches like “hot stone therapy.”
• Modified broad match – With modified broad match, you can tell Google to only display
your ads when one or more words is in the query, preventing synonym matches. If you bid
on “+massage,” only queries that actually include the word “massage” will trigger your ad.
• Phrase match – This match type allows you to tell Google to display your ad only when
the search query includes a full phrase, such as “hot stone.” (The words have to appear in
that order.) Other words may be included in the search query before or after the phrase.
• Exact match – The most restrictive match type, exact match tells Google to only match
your ads to queries that are exactly the same, word for word, as your keyword.
How to improve your quality score
• Target specific key words –
• use exact match for advertising
• Avoid broad search.
• Negative Keywords
• Group your keywords and create relevant ad texts
• Continue to tweak your ad texts.
• Optimise your landing page
• Put your keywords on the landing page
• Increase the probability that your ad will be clicked upon, this improves your
ad quality score and thus you pay lesser for each click.
F-Patterns No More: How People View Google & Bing Search Results
: https://cxl.com/blog/how-people-view-search-results/
PPC Case Study: How We Cut AdWords Costs by 67% With a Simple Tweak
: https://www.semrush.com/blog/ppc-case-study-how-we-cut-adwords-costs-by-67-with-a-simple-tweak/
Which ad received better CTR?
Which ad received better CTR? Why?

The control ad (top) and the variation


(bottom)
The result? The more timely, current ad
saw a whopping 217% increase in CTR
and 23% improvement in conversion
rates.
And I’m willing to bet that the specificity
of the number also added some
conversion power...
Which ad received better CTR? Why?
Which ad received better CTR? Why?
The control ad (top) and the
variation (bottom)
The specificity of the new ad could
have made it just a tad more credible
than the control ad.
How could we make the ad perform
even better?
By getting even more specific.
It’s been shown that specific numbers
like 1,542 can improve performance
over round numbers like 1,500+. If
you're including a number, write out
the exact number!
The more specific you are, the more
believable you become.
Which one stands out and gets you most
excited to click?
Which one stands out and gets you most
excited to click?

both Shopify and Volusion do a great job, but


we all know that AmeriCommerce struggles. Find
opportunities where you can include the word “you” in
your headline or first description line. And as always,
lead with benefits.
Make your ads hyper-local
Google Guarantee
• The Google Guarantee covers claims up to the amount on the job invoice up to the lifetime
cap for coverage. Services must be booked through Google Local Services.
• Google is fighting back against fraud with an advanced verification process for handymen,
plumbers, and locksmiths.
• Locksmiths, plumbers, and handymen who are not licensed, bonded and screened are going
to have a hard time going through this process to get a listing on Google My Business.
• Showing Proof of License, Bond or Insurance will be Mandatory
• If they do manage to get a listing or already have a listing on Google My Business, they will
need to show proof that they are “Google Guaranteed” by uploading documents showing
that they are licensed, bonded and screened.
• Failure to prove that their company is licensed, bonded and screened will result in Google My
Business removing their Google My Business page (YIKES). That will end up being hundreds of
locksmith who will be in need of some serious recovery services.
CPC
• Cost per Click (CPC), where the advertiser pays each time a website
visitor clicks on the ad.
• If your campaign generated 1,000 clicks at a $2 CPC, you would pay $2,000.
• CPC is the best way to drive performance (revenue) or a particular sort of
action (e.g. visits to the website, vacation package purchases, brochure
downloads, etc.).  With CPC there are less impressions, but the ads are a lot
more tailored and targeted, and you only pay when a user clicks on those ads.
Cost Per Thousand (CPM)
• Cost per thousand, also called cost per mille, is a marketing term used to denote the price of 1,000
advertisement impressions.
•  click-through rate, which is the percentage of people who saw your ad and clicked on it. For
example, an advertisement that receives two clicks for every 100 impressions has a 2% CTR.
• This ratio of clicks to impressions is measured by what's known as the click-through rate (CTR). To calculate CTR,
simply divide the number of clicks by the number of impressions; for example, if your ad received
1,000 impressions and 25 clicks, you would have a 2.5% CTR.
• Advertiser perspective - CPM makes the most sense for a campaign focused on heightening 
brand awareness or delivering a specific message. In this case, the CTR matters less, since the
exposure from having an ad prominently placed on a high-traffic website helps promote a company's
brand name or message, even if visitors do not click on the ad.
• Host perspective - Website publishers like CPM advertising because they get paid for just displaying
ads. However, because CPM rates are low—the $2.00 rate mentioned above is fairly standard—a
website needs robust traffic to make decent money from CPM ads.
CPA - CPI
• Cost per Acquisition (CPA), where the advertiser only pays each time a
website visitor makes a purchase after clicking an ad.
• Companies focused less on mass appeal and more on promoting a product to
a niche audience gravitate toward CPC or CPA advertising since they only have
to pay when visitors click through to their site or purchase the advertised
product.

• Cost-per-Install (CPI)
• is the price an advertiser pays whenever the consumer installs the advertised
application.
Which type of campaign works better?

• CPC –conversions or acquisitions, a CPC pricing model is probably your best bet. You pay only
when shoppers engage with your campaigns, and, as a result, you maximize your ROI.
• CPM – Use this method to create awareness/promotions. If customer clicks, well and good!
You pay for CPM not for the CPC.
• As it happens with many other key questions in digital marketing, the answer is “it depends”.
Every model has its pros and cons, but if properly handled, the three models can be effective
–and on the contrary, if not properly handled, all three of them might result in money loss.
• Want to emphasize the final step on a consumer’s journey? Choose CPA.
Want uncapped impression scalability and ROI? Choose CPM.
• Want to incentivize users to download your app? Choose CPI.
• It is always recommended to invest part of the advertising budget in each of these
strategies, and find out which one works better in each particular case.
Food for thought - CPM
• CPM is particularly effective when you have high performing creative,
as the cost of each action will go down as the total actions taken goes
up.
• This is one of the main reasons why the CPM model synchronizes
quite ably with mobile advertising, as the rich media capabilities of
mobile offer much higher levels of engagement than standard display
and desktop advertising.
Videos

• Google Adwords Tutorial 2020 with Step by Step Walkthrough


• https://www.youtube.com/watch?v=aqzR2Ki2Ka4

• The Inventory & Shipping Platform For Ecommerce


• https://www.youtube.com/watch?v=Fb8C_i4o1yo

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