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Abstract:
In many ways, Amazon.com is perhaps the company that is most closely tied with the E-Commerce phenomenon. The purpose of this case is to present a balanced and up-to-date business history of the company.

Internet, Web, Retailing, E-Tailing, E-tailer, E-Commerce, Amazon.com, BN.com, Auctions, Marketing, Brand

Abstract:
Open-source software is not for hobbyists any more. Instead, it is a business strategy with broad applicability. Businesses can be built around this idea. In this paper, I want the reader to grapple with the specifics of how to build and grow such a business. To this end, I have proposed three fundamental business models - Distributor, Software producer [GPL and non-GPL] and the Third-Party Service Provider. These are sustainable models that can lead to robust revenue streams. The business models provided here can be enhanced by the addition of further revenue streams. For instance, we now know that certification of developers on an Open-Source product can lead to strong revenues. Not all products have the same profit potential. Therefore, not all Open Source Software products have the same profit potential. I have classified Open Source Software products into four categories - Stars, High-profile nichers, Low-profile nichers and Mainstream utilities. Businesses can be built around Stars. High-profile nichers can lead to robust revenue streams if properly marketed. The other two categories may not lead to high profits. Since many Open Source Software products are freely available, managers must scan public repositories to find out which products will be suitable for their business. The future of Open Source Software is bright. Increasingly, we will find that these products will take a central role in the realm of software and will find a larger place in all our lives.

Open Source, Business Model

Abstract:
This case provides a business history of the famous auction house - eBay.

Auction, E-Auction, E-Tailer, Internet, Web, eBay, Amazon.com, Yahoo, E-Commerce, E-Marketing

Abstract:
Internet advertising presents a puzzle to advertisers. On the one hand, total spending on Internet advertising has exploded and everybody (including your competition) seems to be advertising on it. On the other, click-through rates on banners have dropped to about 0.5% and the most basic measures of ad viewership and effectiveness have been called into question. In this article, our goal is to provide you with some guidelines on how to think of Internet advertising. We summarize the measurement problems with banners and introduce you to the concepts of permission and viral marketing. We end with six prescriptions to keep in mind when you are putting together your campaign. The Internet is evolving rapidly and managers interested in advertising on it must be prepared to adapt in real-time if they are to be successful.

Internet Advertising, Banner, Click-Through

Abstract:
Starting with Eric Raymond's groundbreaking work, The Cathedral and the Bazaar, open-source software (OSS) has commonly been regarded as work produced by a community of developers. Yet, given the nature of software programs, one also hears of developers with no lives that work very hard to achieve great product results. In this paper, I sought empirical evidence that would help us understand which is more common - the cave (i.e., lone producer) or the community. Based on a study of the top 100 mature products on Sourceforge, I find a few surprising things. First, most OSS programs are developed by individuals, rather than communities. The median number of developers in the 100 projects I looked at was 4 and the mode was 1 - numbers much lower than previous numbers reported for highly successful projects! Second, most OSS programs do not generate a lot of discussion. Third, products with more developers tend to be viewed and downloaded more often. Fourth, the number of developers associated with a project was positively correlated to the age of the project. Fifth, the larger the project, the smaller the percent of project administrators.

Open Source, Group Structure, One-person groups, Community

Abstract:
Open-source software(OSS) programs (e.g. LINUX, Apache) provide access to the source code to any interested party. This leads to a distributed innovation model where users actively participate in the development of the product. The main purpose of this paper is to help managers who have to choose between OSS and commercial software. Not all OSS products are free. OSS products are distributed under a wide variety of public licenses. They are more reliable, provide greater flexibility and choice to the user and are frequently free. On the other hand, OSS leads to a proliferation of versions and may appeal only to the high-end user. Vendors of open-source products make money by selling the program on a CD, providing support services to enterprises and authenticating versions. The open source system leads to fascinating competitive and cooperative relationships among companies, between a company and a community and among communities.

Open Source Software, Linux, Business Model

Abstract:
The use of Internet seal of approval programs has been touted recently as an alternative to potential legislation concerning consumer-related online privacy practices. Questions have been raised, however, regarding the effectiveness of such programs with respect to maintaining privacy standards and aiding online consumers. The authors examine these issues in a series of four studies, the first of which examines Internet seal of approval logo usage in the current marketplace. The next study applies Federal Trade Commission privacy standards to various online privacy policies in an effort to determine the ability of seal of approval program participation to act as a valid cue to a firm's state privacy practices. The last two studies are experiments designed to ascertain how online firm participation in Internet seal of approval programs affect consumers. Implications for policy and industry are also discussed.

Privacy, Internet, Web, Marketing, Seal, Seal of Approval, TrustE, BBB, Federal Trade Commission, FTC, Experiment, Consumer

Abstract:
Even though unsolicited commercial e-mail or Spam continues to be a major problem, very little academic research has focused on it. Notable exceptions include Shiman (1996), Cranor and LaMacchia (1998), Samoriski (1999) and Sheehan and Hoy (1999). The purpose of this paper is to provide a comprehensive overview of the Spam problem and a critical analysis of the solutions. We begin with a definition of Spam. This is followed by an analysis of the pernicious impact of Spam on the major stakeholder groups- consumers, Internet Service Providers, legitimate advertisers, e-commerce firms and employers. Since there is no clean solution to limiting the volume or nature of Spam, a variety of responses to Spam exist. These can be placed into four categories - laissez faire arguments, business-initiated solutions, third-party oversight, consumer education and legislative solutions. For the remainder of the paper, we focus upon one business-initiated solution - permission marketing (Godin 1999). Permission marketing envisages a world where consumers control the promotional messages targeted at them. Consumers provide a firm information about their interests and product preferences. The firm then sends the consumer promotional messages based on this information. We argue that, even though this idea has merit, there has been an inconsistent application of this idea. To support this, we discuss six variants of the original concept of Spam that purport to use permission marketing. Based on this discussion, we end by identifying six key elements that must be a part of every permission marketing campaign if it has to be clearly distinguished from Spam.

Spam, Permission Marketing, Relationship Marketing, Consumer, Stakeholder, E-mail, Internet, Web, Privacy, Internet Service Provider, Advertising

Abstract:
The prospect of using e-mail in survey research can be very exciting to academic researchers. However, it raises many ethical concerns. While many people have started to say that obtaining consumer permission is important, there is no clarity on how to obtain and maintain permission. Some academic researchers might argue that, due to the low volume and infrequent nature of their surveys and the general positive perception of academia, their e-mail surveys do not add to the Spam problem. However, this is problematic from an ethical perspective since it changes the definition of what Spam is from any unsolicited e-mail to a subset of these e-mails which have certain predefined characteristics. There are ways to implement permission-based respondent contact if the academic community wants to. The only negative to keep in mind will be the statistical problem of self-selection and the loss of complete randomness to some degree. Regardless, the future legal landscape may force academic researcher to adopt permission as the standard.

Internet, E-mail, Survey, Research, Spam, Questionnaire, Permission Marketing, Opt-in, Opt-out

Abstract:
We present an analysis of the Yahoo Buzz Index over a period of 45 weeks. Our key findings are that: (1) It is most common for a search term to show up on the index for one week, followed by two weeks, three weeks, etc. Only two terms persist for all 45 weeks studied - Britney Spears and Jennifer Lopez. Search term longevity follows a power-law distribution or a winner-take-all structure; (2) Most search terms focus on entertainment. Search terms related to serious topics are found less often. The Buzz Index does not necessarily follow the news cycle; and, (3) We provide two ways to determine star power of various search terms - one that emphasizes staying power on the Index and another that emphasizes rank. In general, the methods lead to dramatically different results. Britney Spears performs well in both methods. We conclude that the data available on the Index is symptomatic of a celebrity-crazed, entertainment-centered culture.

Yahoo, Google, Search, Star Power, Celebrity, Culture

Abstract:
Generic advertising, the promotion of an entire product or service category, is an increasingly common form of inter-firm cooperation. Voluntary participation in such a campaign represents contribution to a public good. Based on the pattern of recent campaigns, we argue that this cooperation is dependent on adaptive aspirations and an increased willingness to tolerate social risk in light of declining sales. Three experiments are reported that tested these ideas. In each study, subjects assigned to four person groups chose how many resources to contribute to a generic advertising campaign the effectiveness of which depended on total funding levels. Each group member represented a different "store" in the same mall. The instructions framed the problem by presenting varying sales trends for the stores - Positive, Negative, or Neutral. The first two experiments were one-shot games with a dominant strategy of non-contribution and free riding. The results showed that subjects confronting the declining trend contributed significantly more than those in either of the other two conditions. Sales history framing actually created a focal point because it also positively influenced their expectations that others would contribute as well. The third experiment demonstrated that this decline-induced focal equilibrium persists over trials of a finitely repeated game with a known stopping point. Contribution levels in the negative history condition dropped only in the final trial. Even in the very last round they remained higher than those for any of the other conditions. Surprisingly, the specific introduction of a competitor mall as the cause of the decline in sales actually resulted in lower levels of contribution. The implications for research and practice are discussed.

Generic advertising, public goods, adaptive aspirations

Abstract:
This is an integrative review of three books:

1. Huberman, Bernardo (2003), The Laws of the Web: Patterns in the Ecology of Information, MIT Press.

2. Watts, Duncan J (2003), Six Degrees: The Science of a Connected Age, WW Norton and Co.

3. Barabasi, Alberto-Laszlo(2002), Linked: The New Science of Networks, Perseus Book Group.

Power Law, Internet, Link, Social Network, World Wide Web