richard t. watson leyland f. pitt pierre berthon george m
TRANSCRIPT
U-CommerceExpanding the universe of marketing
Richard T. Watson
Leyland F. Pitt
Pierre Berthon
George M. Zinkhan
Copyright © 2006 by Richard T. Watson
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Parallel revolutions
– Physics
– Newtonian to special theory of relativity
– Art
– Realism to modern art
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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
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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
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A foundation in light
– Physics
– Speed of light in a vacuum is constant
– Art
– Innovations in recording light
– Commerce
– Using light to communicate
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Types of Commerce
Type Foundation
Commerce Transportation network
E-commerce Internet
M-commerce Cell phone network
U-commerce Ubiquitous networks
What’s happening?Pay by phone with SMS reminder
Revenue management
Self-report of mulfunctions and tampering
Connection to ticket-writing device
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– Students can visit a Web site to find out when a laundry machine will be available and can select functions, including soap and fabric softener dispensing
– When the load is done, they are notified via an e-mail sent to a mobile device or PC (September 2002)
What’s happening?
What’s happening?
– Google offers
– Detailed directions
– Search results
– Maps
– Satellite imagery
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What’s happening?• Microsoft intends to build a global
network to support the smart watches -- as well as other devices based on its Smart Personal Objects Technology (SPOT)
• Microsoft has put together a network of more than 100 FM radio stations in the U.S. to broadcast precise time information and personalized data to the watches
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Bounded rationality
– Humans have limited capacity to process information
– People 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
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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
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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
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Universal
– Multifunction information appliances
– Devices work everywhere
– All networks
– All locations
– Always connected
– Universal access
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Why your mobile phone supports uniqueness better than your PC
Mobile phone PC or laptop Used by only one person Multiple users
Owners have the phone with them for most of their waking hours (use is initiated by the owner and those who wish to contact that person)
Will only be switched on or accessed when really needed (use is initiated by owner[s])
Text messages go directly to the phone, and the owner is immediately notified when the phone is on
Text messages (email) go to an email server, owner has to access these
The network operator usually knows exactly who that user is, their home and office address etc, and where that person is geographically
The network operator does not necessarily know exactly who the user is or whether that person’s details are correct
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Unison
• Synchronization/replication of designated files
• Transparent to owner
• Current data are always available
• Team work synchronization
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Evolution of markets
Market Definition Theme
Marketplace Traditional physical marketplace
Exchange of goods and services via face-to-face human interaction
Marketspace Informational marketplace
Exchange of goods and services via computer interaction
U-space Transcension and integration of marketplace and
The global integration of the physical and informational to provide value through amplification, attenuation, contextualization, and transcension
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U-space
Unconscious(behind or out of conscious awareness)
Attenuation marketing
Amplification marketing(extends/enhances awareness)
Ultra-conscious
Unique(time-space dependent)
Contextual marketing
Ubiquitous(time-space independent)
Transcension marketing
Post-humanHyper-real
Node Matrix
Immersion marketing Transformation marketing
Nexus marketing Sync marketing
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• Ultra-conscious & unique
• Extraordinary experience
– Teleimmersion
– Remote monitoring
• Immersion marketing
– Processes that enhance conscious interaction with the phenomenal world in specific situations
Hyper-real
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
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Matrix• 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
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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
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Types of marketing
Type of marketing Description
Amplification Extending or enhancing conscious interaction
Attenuation Reducing the necessity to consciously interact with phenomena
Contextual Adding value through time-space specificity
Transcension Transcending the traditional constraints of time-space
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Implications
• Revalidate existing theories
• Build new theories
• Understanding new forms of marketing
• Amplifying and attenuating consciousness
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Implications
• What will u-commerce do to a business and industry over time?
• How can firms use the u-space framework?
• What will u-commerce do to the structure of firms?
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Implications
• Integrated customer database
• Electronic communication links
• Simple interfaces and high functionality
• Automation of tasks to free attention
– Attention scorecard
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– Greater opportunities for coordination and collaboration
– Information overload
– Too much oversight
– Reduction of time and place constraints
– Work never ends
Organizational implications
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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