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U-Commerce Broadening the universe of marketing. Richard T. Watson Leyland F. Pitt Pierre Berthon George M. Zinkhan rwatson@terry.uga.edu. Expanding the vision. Expanding the vision. Physics Newtonian to special theory of relativity Art Realism to modern art. Parallel revolutions.
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U-CommerceBroadening the universe of marketing Richard T. Watson Leyland F. Pitt Pierre Berthon George M. Zinkhan rwatson@terry.uga.edu
Physics Newtonian to special theory of relativity Art Realism to modern art Parallel revolutions
Parallel revolutions • Einstein and the Cubists proposed alternative concepts of space • Space interacts with the volume, shape, and size of objects • Space and time can be fractured into visual elements
U-commerce • An alternative view of time and space for business and marketing • Commerce has been flattened to two dimensions • Multiple connections are being reduced to a single point
A foundation in light • Physics • Speed of light in a vacuum is constant • E = mc2 • Art • Innovations in recording light • Commerce • Using light to communicate
Types of commerce A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Key forces • Bounded rationality • Attention deficit society
Bounded rationality • Consumers are capable of a wide variety of reasoning errors when making decisions • Managers have difficulty in managing a multitude of customers on a one-to-one basis
Attention deficit society • Consumers are increasingly bombarded with more and more messages • It is estimated that a single weekday issue of the New York Times contains more information than the average person in seventeenth-century England came across in a lifetime • Conscious attention is a scarce resource • Some messages need to be attenuated and others amplified
U-commerce • The use of ubiquitous networks to support personalized and uninterrupted communications and transactions between a firm and its various stakeholders to provide a level of value over, above, and beyond traditional commerce • Über-commerce
Ubiquitous • Networks everywhere • All consumer durable devices are on a network • Intelligence and information are widely dispersed and always accessible • Smart entities • Appliances • Buildings • Signs • Street smart communities
Universal • Devices work everywhere • All networks • All locations • Always connected • Universal access
Unique • Information is customized • To person • To device • To context • Location • Time • Role
Unison • Synchronization/replication of designated files • Transparent to owner • Current data are always available
Network driven firm • A directed collection of electronically interacting stakeholders that coordinates activities through the exchange of messages over electronic networks • Networks are a means of increasing • efficiency (e.g., lowering transaction costs) • effectiveness (e.g., adding value to customers) • Applies concepts of object-orientation
The object-oriented firm • Applies the computer science principles of object orientation to creating a business • A new firm can be built from existing firms • Procedures are developed for electronically exchanging messages between firms via the Internet
Hyper-real • Ultra-conscious & unique • Extraordinary experience • Adventuring • Entertainment • Teleimmersion • Immersion marketing • Processes that enhance conscious interaction with the phenomenal world in specific situations
Post-human • Ultra-conscious & ubiquitous • The network is always on • Permanent enhancement of human facilities • Information processing • Cell phone/PDA • Advanced prosthetics • Genetic enhancement • Body change • Rhinoplasty • Transformation marketing • Processes that enhance conscious interaction with the phenomenal world acontextually – that is transcending specific time-space locations
Network • Unconscious & ubiquitous • Move tasks from conscious to unconscious • Automated consumption • Automated toll booths • Smart cards • Automatic background execution • Price comparison bots • Attention freeing • Matrix marketing • Universal, acontextual processes designed to automatically perform tasks
Node • Unconscious & unique • Subscription services • CRM tries to understand the customer so well that offers easily capture attention • Ultimate form of permission marketing • Wine-of-the-month club • Nodal marketing • Processes that reduce the necessity of an individual or collective to consciously interact with phenomena in specific contexts
Implications for marketing • Revalidate existing theories • Build new theories • New forms of marketing • Amplifying and attenuating consciousness
Implications for MIS • Integrated customer database • Electronic communication links • Simple interfaces and high functionality • Automation of tasks to free attention
Conclusion • Innovations in processing information are the bedrock of cultural, social, political, and economic change • U-commerce is the final step in the evolution of commerce • It is part of the evolution in thinking about a firm’s relationship with the customer • From products to services • From services to information • Information is service
U-commerce • The ultimate killer app • It changes everything
Draft of article Contact rwatson@terry.uga.edu