Review of “Case Study – Online Office Supply Retailers”

Reviewed by Dr. Jeff Harper, 16-18 July 2008

“I am very pleased to review your work. It is obvious to me that you worked quite hard on this project. My specific comments are below.

My notes for this review are a little different that for the other papers. That is because your paper was so well organized, well-written, and complete that I did not feel it was necessary to go through page by page, line by line, and offer criticism or praise. Instead, let me comment to your paper in an “overall” format.

Clearly, this group understands how to conduct and report formal research. It is refreshing to see that you had a clear plan and followed through. The amount of data you collected in three weeks indicates that you were focused and efficient in your efforts. I find very little in your paper that is off-target, misstated, or extraneous.

Your findings are significant. In particular, you are able to justify your conclusions through the work you have presented. That is the mark of good research.

This paper is one of the best I have seen, ever. It ranks 1 out of the 6 papers in this course.

Your grade: A

Well done!”

Assignment 3 – BIDZ.COM Signaling to avoid adverse selection

Nowadays, it is possible to sell almost everything on the internet but it is not easy to convince your potential clients that you are selling trusted products. This issue is specially important when you talk about exclusive items such as jewellery. What if you buy an expensive fake ring or watch? Well, Bidz.com has developed a careful signalling strategy to answer all your doubts and insecurities before you start bidding.

Signaling is the key for the first impression, and people in Bidz.com have done a magnificent work about it. As you can see in fig.1, the main page contains 4 different awards recently obtained. “They must be doing it great if they are in the Top 10” you think. But maybe that is not enough to start bidding because you want to feel secure when you are buying your new diamond ring…

So you need security. What about Jewelers Vigilance Committee logo in the bottom of the page? Is it not enough for you? Could be. Next step is clicking on a product to see further information. There it its, what you needed to jump into the pool…”Auction 100% Guarantee” (fig 2). You are almost conviced, and Bidz.com gives you the final incentive: The “Gemological laboratory report” (fig 3) available at Checkout. What more can they do to ensure the veracity of their products?

With this smart signaling strategy, Bidz.com is trying to attract new customers at the same time that is attracting trusted sellers. Warranties are credible and they end up being more expensive for sellers of low quality products. This practice is good for the consumer and, as a consequence, for the auction site because it solves the sellers adverse selection problem.

Author: Álvaro Sanmartín Cid

Assignment 2 – Definition of E-Commerce

Electronic Commerce definition

Electronic commerce is the use of any electronic device capable of processing information during the purchase process of whatever item or service. The electronic device usually automate some parts or the entire process of selling and buying goods, by itself or as a small part inside of a bigger system interconnected by a network.

The purpose of the Electronic Commerce is: increase profitability and organizational performance as a result of the automated tasks performed by the electronic devices. This means better and faster service for customers with lower costs for the seller, which increases the efficiency of the business process.

Author: Álvaro Sanmartín Cid

First Assignment – Writing about a contemporary article of an E-Commerce Strategy

Summary of “THE NORTH FACE CHARTS NEW COURSE FOR VIDEO”, published on Brandweek the 5th of May of 2008 by Anonymous.

The North Face is one of the most famous trademarks in the sports gear scenario. As a result of it´s products style, it is very attractive the idea of showing customers how and where their products work. After watching few videos of the product being used by some famous sponsored athletes, maybe the customer feels that it is time to buy it.

So when that situation happens, The North Face wants to be there to sell its products. That is why the company decided to create its own advertisement campaign based on widgets, short videos showed in the most important skiing and snowboarding networks. This helps potential clients to know the brand and ensures that The North Face will be there in the moment they fall in love with the latest snowboard or the coolest T-shirt. Just few clics are needed to receive it at home…and this tentation is just too much for the clients, which means increasing the profits up to four times more than traditional display advertisements.

Author: Alvaro Sanmartin Cid