The Online Consumer Electronics Industry

1. The Online Consumer Electronics Industry Jay Cheatum Yi-Hsin Chen Yuan Chen Teguh P. Djojoargono

2. Major Players in Online Consumer Electronics • Traditional Stores • -Walmart.com • -Target.com • -CircuitCity.com • -Service Merchandise.com • Start-up E-Stores • -HiFi.com • -Comsumer-Direct.com • -Eadvantage.com • -Eforsell.com • -1cache.com

3. Basics • Unrestricted site browsing for electronic items • Consumers sign in or establish account when purchasing items • Establish customized or personalized membership • Select items into shopping cart, pay using credit card, and arrange for delivery

4. A Sample Front Page

5. Personalized SiteMy Wal*mart

6. A Sample Cart Page

7. Online Consumer Electronics • Who are the customers • hifi.com. Serve customers interested in the best of high-performance audio and video equipment • Walmat.com, Target.com, Buy.com Everyday customers-wide demographic and socio-economic background • Circuitcity.com. Customers interested in saving time, avoiding sales tax charges, enjoy the convenience of online shopping

8. Online Consumer Electronics • How do they attract customers • Referrals (hifi: 5% for every e-order generated directly from links on your site ) • Group affiliation ( most ) • Weekly giveaways (consumer-direct.com) • Media advertising (all) • Free mail catalog (consumer-direct.com) • Give away credit (hifi.com $25 coupon for registering )

9. Online Consumer Electronics • Value added • One stop web shopping (Walmart&Target) • Wholesale prices on popular electronic devices with fast delivery • Express pick-up delivery(Circuit City) • Save Cart-allows customers to save cart items and continue shopping at a later time (Walmart) • Order tracking (all)

10. Online Consumer Electronics • Additional value added • Offer expert reviews and advises for comparison shopper • hifi.com “How to make smart choices” • Circuitcity.com “Shop & Learn” • Area for enthusiat • Debate area (hifi.com ) • Teach technical terms (hifi.com “Techno Tid-bit of the week ) • Submit own product review (hifi.com )

11. Online Consumer Electronics • Installation support • hifi.com provides detailed, step-by-step installation instructions and simple diagrams • Product repair • Circuitcity.com offers factory authorized repair service on most products

12. Online Consumer Electronics • Trying the product • Free 45 day home-trial (hifi.com ) • Offer various promotions to get potential customers to try • Free UPS ground shipping & handling on most purchases (hifi.com ) • Weekly specials (hifi.com )

13. Online Consumer Electronics • Turning one-shot customers into repeat customers • Offer bonus points on items purchased. The more you buy, the more you save. (hifi.com ) • Offer store credit card (hifi.com, circuitcity.com )

14. Online Consumer Electronics • Building credibility and trust with online consumers • Established partnership with Bizate.com and BBBonline.com(Better Business Bureau) • Allowing customers to view e-business ratings and customer satisfaction data • Assurances about online privacy and security protections for consumers • E-matic low price guarantee (hifi.com )