Chapter 4 : E-business revenue models

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Chapter 4 : E-business revenue models by Mind Map: Chapter 4 : E-business revenue models

1. Revenue Model

1.1. web catalog, digital content, advertising-supported, advertising-subscription mixed, fee-based

1.2. can work for type : B2C and B2B

2. Web Catalog Revenue Models

2.1. mail-order (catalog) model

2.2. Expands traditional model

2.3. Computers and consumer electronics

2.4. Marketing channel

2.5. Advantage of having several marketing channels

2.6. combine marketing channels

2.6.1. in-store online ordering

2.6.2. mail catalogs with reference to retailer’s Web site

2.7. Books, music, and videos

2.8. Luxury goods

2.8.1. Difficult to sell online

2.9. Clothing retailers

2.9.1. Display clothing photos categorized by type

2.9.2. My Virtual Model (customers try clothes)

3. Digital Content Subscription Revenue Models

3.1. Firms owning written information or rights

3.2. Sell subscriptions for access to information they own

3.3. Example : LexisNexis offers variety of information services

4. Advertising-Supported Revenue Models

4.1. Provides free programming and advertising messages

4.2. measuring and charging site visitor views

4.3. obtain large advertiser interest

4.4. Example  : HowStuffWorks

4.5. web portals (portal) : Site used as a launching point to enter the Web

4.6. Newspaper and magazine publishers : Sell advertising to cover Web site costs

4.7. Targeted classified advertising sites

5. Advertising-Subscription Mixed Revenue Models

5.1. Subscribers pay fee and accept advertising

5.2. Web sites offer different degrees of success

5.3. Consumers Union (

5.3.1. Purely a subscription-supported site

5.3.2. Free information

6. Fee-for-Transaction Revenue Models

6.1. Service fee charged-based on transaction number or size

6.2. Web site offers visitor transaction information

6.3. Value chain

6.3.1. Disintermediation

6.3.2. Reintermediation

6.4. Travel agency revenue model: receive fee for facilitating a transaction

6.5. Insurance brokers

6.6. Online banking and financial services

7. Fee-for-Service Revenue Models

7.1. Companies offer Web service

7.2. Online games

7.3. Professional services

8. Free for Many, Fee for a Few

8.1. Economics of manufacturing

8.2. Leads to a different revenue model

9. Revenue Models in Transition

9.1. subscription to advertising-supported model

9.2. advertising-supported to advertising-subscription mixed model

9.3. advertising-supported to subscription model

9.4. multiple changes to revenue models

10. Revenue Strategy Issues

10.1. Channel conflict and cannibalization

10.2. strategic Alliances

10.3. Luxury goods strategies

10.4. overstock sales strategies

11. Creating an Effective Web Presence

11.1. Organization’s presence

11.2. Effective Web presence

11.3. Identifying Web Presence Goals

11.3.1. Attracting Web site visitors

11.3.2. Keeping visitors to stay and explore

11.3.3. Convincing visitors to follow site’s links to obtain information

11.3.4. Making Web presence consistent with brand image

12. Web Site Usability

12.1. Make site accessible to more people

12.2. Make site easier to use

12.3. Make site encourage visitors’ trust

12.4. Make site develop feelings of loyalty toward the organization

12.5. Trust and Loyalty

12.6. Usability Testing