Sizing Up The Active Wear Market Marketing Essay

Sizing Up The Active Wear Market Marketing Essay In the wake of falling sales and decreasing profit margins, Harrington Collection is evaluating the opportunity to expand into the high-growth active-wear market. The idea of expanding into lower priced fashion product lines was not new to the company (Tedlow Beckham 2008) which was renowned for its sophisticated high class roots. However, after three years of consecutive lacklustre sales and margins Sara Huey, Vice President of Strategic Planning and her team have to take a critical look at the active-wear product line option as a possible solution to reverse the companys negative performance trend. To come up with sound decision Harrington Collection executives would have to analyze the financial implications of the opportunity, assess trade and competitor reactions, consider the risks, and determine whether they have the capacity to successfully launch and manage the new product line. This basically means that they will have to assess consumer behaviour, product introduction and financial implications. Consumer behaviour Consumer buying behavior refers to the buying behavior of final consumers (individuals households) who buy goods and services for personal consumption. This is generally affected by consumer culture, social, personal and psychological characteristics. Consumer products are designed to be attractive to consumers, so that they feel encouraged to buy. This makes it mandatory for any organization to understand and manipulate product attributes so as to positively influence consumers to buy. However, buying behavior is also a function of the competing products in the marketplace and the brand marketing strategy applied by that given firm. In order to design the best product, it is necessary to understand not just the physical and chemical nature of the product, but also the psychology of consumers and the sociology of consumer groups. Harrington Collection is a company with decades of expertise (Tedlow Beckham 2008) that has an excellent relationship with its retail trade (Tedlow Beckham 2008) therefore their knowledge of consumer behaviour is high. Moreover we are told that the company also commissioned surveys and focus groups which revealed that their target customers showed considerable interest in buying active-wear clothing (Tedlow Beckham 2008). The push for introduction of a new product line is also supported by three factors that determine consumer behaviour i.e. loyalty, sociology and psychology. Loyalty is defined as that tendency for consumers to stick to the same products. Loyalty is also manifested through what is referred to as the memory effect, which represents that tendency of consumers in returning to products they had previously used, after trying something new they then did not like. The focus groups commissioned by Harrington Collection showed that a subset of Harrington customers who had been loyal throughout their careers were interested in something fresh and comfortable that would fit their active lifestyles (Tedlow Beckham 2008). On the other hand the sociology factor was heightened by the popularity of active-wear among Hollywood celebrities. Sociology in this context implies how one persons buying is influenced by that of others. We are told that this trend toward more contemporary athletic fashions resulted in rapid growth for firms that offered these lines. Harrington Collection estimated that over seven and a half million active-wear units were sold in 2007 with the projection that this would grow to 15 million by 2009 (Tedlow Beckham 2008). Moreover by 2009 it was expected that 40% of the 15 million buyers would prefer the better category which is what Harringtons Vigor division specialized in. Vigors market expertise could come in handy in deploying the active-wear better product line. Psychology covers what, and how, aspects of the actual items on the shelves influence people to make their choices, possibly buying something different from previously. Most firms would use advertising to influence consumer psychology. Harrington on the other hand we are told was known for its top in-house design staff, extensive national advertising campaigns and its exceptional quality and styling (Tedlow Beckham 2008). Plus, after analyzing the better sets of active -wear that were in the market Harrington knew that the standards they had could not allow them to produce such poor quality products. Therefore a launch of a product line in active-wear could provide Harrington with an opportunity to display their superior products to the low end consumer market and thus rapidly increase their market share and probably pull though a customer lock-in. Also we cannot ignore the fact that introduction of a new product onto the market by as renowned a fashion company as Harrington has the ability to change the way consumers, or at least some of them, view the other established active-wear brands. Harringtons quality and styling might draw attention to some quality which was not previously much regarded by consumers in this category, or it might make people give different weightings to the established products when making their decisions. If Harrington Collection decides to go ahead with the idea to add an active-wear product line to its existing business then they would have to model their target consumers behavior. They will need to look at the external stimuli that assist the consumer to make the decision to buy their product. An external stimulus that Harrington Collection has direct influence over is the marketing mix: product, place, price, promotion, people, process and physical evidence. Product is the active-wear itself and here decisions regarding the features of the product, quality level, product lines and branding will be addressed. Place caters for decisions on channel type, service levels, managing the channels, transporting and delivering, market exposure, intermediaries, locations and stores. Pricing in this case is vital considering that the target market is price sensitive and there are other large competitors such as Liz Clairbornes Juicy Couture. Decisions regarding the discounts to be allowed, allowances and whether pricing will change with product life cycle will also depend on the breakeven analysis that we shall be looking at later in this paper. Promotion decisions regard the communications mix, the type, qualifications and number of salespeople needed the required media, sales promotion, and publicity. People decisions regard the type of customers, the customer care personnel and their knowledge, qualifications and motivations for participating during the service encounter. The process factor looks at the length of the process, the activities that can be done during the process and technologies that will facilitate the process and finally, physical evidence is concerned with decisions on the types of tangible evidence available to customers. In spite of all the theories and models made with respect to consumers it is still acknowledged that the buyers decision process is a black box that even with knowledge of characteristics that affect consumer behaviour. Product Introduction The introduction process of a new product into any market is highly complex. It requires ability to coordinate work of numerous teams within an organization, as well as with the extended network of partners and suppliers. The new product in here would be the active-wear apparel (hoodies, tee-shirts and pants). One aspect of the complexity is derived from the use of several different new parts, each of which may need unique design, specifications, development, and other specialized conditions. This complexity is compounded further by the myriad of tools used during the new product introduction (NPI) process e.g. computer aided design (CAD) applications, project management tools and enterprise resource planning (ERP) systems. A typical new product development and introduction process would consist of three core phases: 1) product definition, 2) product development, prototyping, and testing, and 3) product build and ramp to production. Each of these phases requires effective project management to ensure that at the end we have optimized productivity and results. In modern best-in-class NPI processes, a collaborative approach is encouraged, that is, where manufacturing integrates into the design phase early, ramping up the manufacturing effort as the design progresses to production. Engineering continues to participate even in the production phase to ensure the design is correctly built (Arena 2007). This joint approach shortens new product introduction time to market and enhances product quality. However, it also necessitates greater levels of communication and coordination amongst the project teams. The first phase in the new active-wear apparel introduction would be product definition. At this stage the design and marketing teams come up with new ideas either from market research. The NPI team for Harrington Collection would then perform technical feasibility studies and business case analysis (which we shall look at later in this paper using the breakeven analysis). This is duly followed by the creation of initial market and product requirements. These initial planning documents outline the objectives and goals for the new product introduction (NPI). The real challenge at this stage is in the selection of the right ideas and managing them to commercial success. It is advisable for organizations to develop a disciplined portfolio management process that they shall be using to aid them in consistently choosing the better product ideas and NPI processes to bring better products to market, before their competitors do so. After product definition we proceed with the product development phase. How this phase is managed generally determines how quickly the innovative idea reaches the market. New product development is complex partly due to the huge number of participating groups required to collaborate e.g. the design team, sourcing, quality control and others. These teams carry out hundreds of activities, such as design, prototyping, sourcing, quoting, testing, manufacturing and planning. This situation could be worse for global outsourced players because of the geographical distance and the extension of the teams beyond the boundaries of a single company. To deal with such a complex team environment the organization would need to set up a centralized and shared project and data management infrastructure, so that cross functional and cross enterprise teams are able to access the latest design files, work instructions, change orders, task list, and project plans as and when they are revised. The idea that Harrington Collection should pursue this product development under its Vigor division is heavily supported by this point. Being a division that is already running we would expect most of the infrastructure required for data management and information sharing to be in place in contrast to having to set up everything a new in the case where a new division is formed to handle this new product line. Also, with the increasing environmental and regulatory compliance pressures from different countries where the active-wear would eventually be sold, an organization at this product development phase must seek cost-effective solutions to meet product and process compliance requirements such as Restriction of Hazardous Substances (RoHS), Global Best Practices for Clothing Manufacturers and ISO standards. Harringtons is advantaged here since it has not outsourced its manufacturing. In an outsourced environment, companies need to assess compliance risks of all outsourced activities, implement necessary controls, and create documentation to establish an audit trail. This adds to complexity and has high cost effects too. The final key phase for NPI is the production phase. To ensure that manufacturing is efficient and cost-effective all teams (operations, manufacturing, testing, component manufacturing and design engineering etc.) must work together to ensure that a given design is manufactured to correct specifications. The earlier teams begin to collaborate the better equipped they will be for a rapid production ramp. According to Arena to facilitate efficient and accurate communication of product bills of materials (BOM), companies must ensure that the product record is available to all involved in the production and change implementation, including internal groups, contract manufacturers, and suppliers. Providing contract manufacturers and suppliers with selected visibility to centralized product record allows them direct access to the most recent changes. It removes the data communication bottlenecks that result from relying upon individuals and reduces the potential costly revision errors (Arena, 2007, p5). It is our opinion that having the product line run under Vigor division would be more efficient and effective than establishing a new division to do it because it has a seasoned team, supportive infrastructure in place and Harrington Collection could more easily develop a cross-functional product development process which is important to ensure the success of the new product introduction (NPI). From the shared project and data management infrastructure within Vigor division teams involved in the NPI would be able to access the latest project plans and tasks that are related to parts, sub-assemblies, and assemblies. It is also easier to ensure that project revisions are accessible to everyone involved. Demand and Profitability Analysis Template Table 1: Start up costs table Start Up Costs: Amount ($) Start-up Costs Pants Plant 1,200,000.00 Start-up Costs Hoodie and Tee-shirt Plant 2,500,000.00 Equipment Pants Plant 2,000,000.00 Equipment Hoodie and Tee-shirt Plant 2,500,000.00 Launch PR, Advertising 2,000,000.00 Fixtures for Company Stores* 2,500,000.00 Total Start-up Costs 12,700,000.00 Annual Depreciated Start-up Costs** 2,540,000.00 *For Fixtures for Company Stores we assumed that only the exclusive Vigor stores would be stocked with active-wear apparel. The company owned stores are 120 in total but exclusive Vigor stores are 50 (Tedlow Beckham 2008). Fixtures for each Company Store would cost $50,000.00 (Tedlow Beckham 2008). The figure obtained above was therefore obtained by multiplying $50,000 by 50 stores. **We are told that all launch fixture, plant start-up, and equipment costs would be depreciated over a five year period (Tedlow Beckham 2008). We used the straight-line depreciation method: Table 2: total fixed operating costs Annual Ongoing Operating Costs Fixed Overhead Pants Plant 3,000,000.00 Overhead Hoodie and Tee-shirt Plant 3,500,000.00 Rent Pants Plant 500,000.00 Rent Hoodie and Tee-shirt Plant 500,000.00 Management / Support 1,000,000.00 Advertising 3,000,000.00 Total Fixed Operating Costs 11,500,000.00 Table 3: total direct variable costs Direct Variable Costs Hoodie ($) Tee-shirt ($) Pants ($) Sew and Press 3.25 2.00 2.85 Cut 1.15 0.40 0.70 Other Variable Labor 3.20 2.40 3.05 Fabric 9.10 2.20 7.50 Findings 3.85 0.50 2.30 Total Direct Variable Costs 20.55 7.50 16.40 Table 4: total unit direct variable cost Direct variable costs translated into unit cost Hoodie ($) Tee-shirt ($) Pants ($) 20.55 7.50 16.40 multiply by 0.50 1.50 1.00 10.28 11.25 16.40 37.93 Table 5: Vigor unit Retail Price Suggested Retail Unit price Hoodie ($) Tee-shirt ($) Pants ($) 100.00 40.00 80.00 220.00 Wholesale unit price = 50% of Retail unit price = $110 Table 6: total variable costs as % of Wholesale Price Total variable costs as % of wholesale price working capital requirements 3.00 sales commissions 4.00 inventory costs 1.00 bad debt 0.70 transportation 0.24 miscellaneous 0.15 9.09 Table 7: total variable costs per unit Indirect variable costs Wholesale unit price 110.00 Total variable costs as % of wholesale price 9.09 Indirect variable costs per unit 10.00 Direct variable costs per unit 37.93 Indirect variable costs per unit 10.00 Total variable costs per unit 47.92 Table 8: contribution per unit Contribution Wholesale price per unit 110.00 less total variable costs per unit 47.92 Contribution per unit 62.08 Table 9: Breakeven units Breakeven Fixed annual costs (operating and depreciated start-up) 14,040,000.00 Ã · Contribution per unit 62.08 Breakeven Units 226,174.37 Table 10: Vigor active-wear approximate revenue Vigor active-wear approximate revenue Total units sold in 2007 7,500,000.00 Vigor Market share % 7.00 Vigor total unit sales for 2007 525,000.00 Vigor retail unit price 220.00 Approximate Vigor revenue for 2007 115,500,000.00 Table 11: Profit Margin Profit Margin Revenue 115,500,000.00 less fixed annual costs 14,040,000.00 less total variable costs (Vigor total unit sales for 2007 x total variable costs per unit) 25,160,100.00 Profit before tax 76,299,900.00 Profit margin before tax % 66.06 Making the Decision Based on the breakeven analysis we see it would be prudent for Sara Huey to approach the board and advise them to embark on the new active-wear product line because within a year Harrington Collection would have been able to not only breakeven but make a pre-tax profit of $76.3 million. Secondly we believe that the new product line of active-wear should be folded within the Vigor division so that it can benefit from the already existing infrastructure and sales channels. Moreover, like Myers suggested, the active-wear line would be a perfect addition to the Vigor division because it also focused on better wear plus fewer than 2% of respondents in their customer research survey felt that a less-expensive active-wear line would cheapen the brand (Tedlow Beckham 2008). This is a big thumb up from the most important public for the Harrington Collection, i.e. the consumer. We have also seen from the consumer behavior analysis that Harington Collection has got a lot more to gain from intr oducing the active-wear line for example we are told that the aging baby boomer population wanted clothes that would not make them feel old. In addition to that, another survey showed that 10% of customers purchasing apparel in the $100 $200 price range would buy an active-wear set if they could get one with superior styling, fabric and fit, which is what Harrington Collection was intending to manufacture and sell.

Native American Women :: American America History

Native American Women On few subjects has there been such continual misconception as on the position of women among Indians. Because she was active, always busy in the camp, often carried heavy burdens, attended to the household duties, made the clothing and the home, and prepared the family food, the woman has been depicted as the slave of her husband, a patient beast of encumbrance whose labors were never done. The man, on the other hand, was said to be an loaf, who all day long sat in the shade of the lodge and smoked his pipe, while his overworked wives attended to his comfort. In actuality, the woman was the man's partner, who preformed her share of the obligations of life and who employed an influence quite as important as his, and often more powerful. Native Americans established primary relationships either through a clan system, descent from a common ancestor, or through a friendship system, much like tribal societies in other parts of the world. In the Choctaw nation, " Moieties were subdivided into several nontotemic, exogamous, matrilineal 'kindred' clans, called iksa." (Faiman-Silva, 1997, p.8) The Cheyenne tirbe also traced their ancestry through the woman's lineage. Moore (1996, p. 154) shows this when he says "Such marriages, where the groomcomes to live in the bride's band, are called 'matrilocal'." Leacock (1971, p. 21) reveals that "...prevailing opinion is that hunting societies would be patrilocal.... Matrilineality, it is assumed, followed the emergence of agriculture...." Leacock (p. 21) then stated that she had found the Montagnais-Naskapi, a hunting society, had been matrilocal until Europeans stepped in. "The Tanoan Pueblos kinship system is bilateral. The household either is of the nuclear type or is extended t o include relatives of one or both parents...." (Dozier, 1971, p. 237) The statuses and roles for men and women varied considerably among Native Americans, depending on each tribe's cultural orientations. In matrilineal and matrilocal societies, women had considerable power because property, housing, land, and tools, belonged to them. Because property usually passed from mother to daughter, and the husband joined his wife's family, he was more of a stranger and yielded authority to his wife's eldest brother. As a result, the husband was unlikely to become an authoritative, domineering figure. Moreover, among such peoples as the Cherokee, Iroquois, and Pueblo, a disgruntled wife, secure in her possessions, could simply divorce her husband by tossing his belongings out of their residence.

World Wide Web and E-commerce Winter

Introduction to E-Commerce Revenue Models Objectives In this chapter, you will learn about: Revenue models How some companies move from one revenue model to another to achieve success Revenue strategy issues that companies face when selling on the Web An Introduction to E-Commerce Winter 85, 2 1 Objectives (continued) Creating an effective business presence on the Web Web site usability Communicating effectively with customers on the Web An Introduction to E-Commerce Winter 85, 3 Revenue Models Mail order or catalog model Proven to be successful for a wide variety of consumer items Web catalog revenue model Taking the catalog model to the WebAn Introduction to E-Commerce Winter 85, 4 2 Computers and Consumer Electronics Apple, Dell, Gateway, and Sun Microsystems have had great success selling on the Web Dell created value by designing its entire business around offering a high degree of configuration flexibility to its customers An Introduction to E-Commerce Winter 85, 5 Books, Music , and Videos Retailers use the Web catalog model to sell books, music, and videos Among the most visible examples of electronic commerce Jeff Bezos Formed Amazon. com Jason and Matthew Olim Formed an online music store they called CDnow Used the Web catalog revenue model An Introduction to E-CommerceWinter 85, 6 3 Luxury Goods People are still reluctant to buy luxury goods through a Web site Web sites of Vera Wang and Versace Constructed to provide information to shoppers, not to generate revenue Web site of Evian Designed for a select, affluent group of customers An Introduction to E-Commerce Winter 85, 7 Clothing Retailers Lands’ End Pioneered the idea of online Web shopping assistance with its Lands’ End Live feature in 1999 Personal shopper Intelligent agent program that learns customer’s preferences and makes suggestions Virtual model Graphic image built from customer measurements An Introduction to E-CommerceWinter 85, 8 4 Flowers and Gifts 1-800-Flowers C reated an online extension to its telephone order business Chocolatier Godiva Offers business gift plans on its site An Introduction to E-Commerce Winter 85, 9 Digital Content Revenue Models Firms that own intellectual property have embraced the Web as a new and highly efficient distribution mechanism Lexis. com Provides full-text search of court cases, laws, patent databases, and tax regulations ProQuest Sells digital copies of published documents An Introduction to E-Commerce Winter 85, 10 5 Advertising-Supported Revenue Models Broadcasters provide free programming to an udience along with advertising messages Success of Web advertising is hampered by No consensus on how to measure and charge for site visitor views Stickiness of a Web site: the ability to keep visitors and attract repeat visitors Very few Web sites have sufficient visitors to interest large advertisers An Introduction to E-Commerce Winter 85, 11 Web Portals Web directory A listing of hyperlinks to Web pages Portal or Web portal Site used as a launching point to enter the Web Almost always includes a Web directory and search engine Examples: Yahoo! , AOL, AltaVista An Introduction to E-Commerce Winter 85, 12 6 Advertising-SubscriptionMixed Revenue Models Subscribers Pay a fee and accept some level of advertising Typically are subjected to much less advertising Used by The New York Times and The Wall Street Journal An Introduction to E-Commerce Winter 85, 13 Advertising-Subscription Mixed Revenue Models (continued) Business Week Offers some free content at its Business Week online site Requires visitors to buy a subscription to the Business Week print magazine An Introduction to E-Commerce Winter 85, 14 7 Fee-for-Transaction Revenue Models Businesses offer services and charge a fee based on the number or size of transactions processed DisintermediationRemoval of an intermediary from a value chain Reintermediation Introduction of a new intermediary An Introduction to E-Commerce Winter 85, 15 Fe e-for-Service Revenue Models Fee based on the value of a service provided Services range from games and entertainment to financial advice Online games Growing number of sites include premium games in their offerings Site visitors must pay to play these premium games An Introduction to E-Commerce Winter 85, 16 8 Fee-for-Service Revenue Models (continued) Concerts and films As more households obtain broadband access to the Internet, companies are providing streaming video of concerts and films to paying ubscribers Professional Services State laws are one of the main forces preventing U. S. professionals from extending their practices to the Web An Introduction to E-Commerce Winter 85, 17 Revenue Models in Transition Subscription to advertising-supported model Microsoft founded its Slate magazine Web site An upscale news and current events publication Charged an annual subscription fee after a limited free introductory period Was unable to draw sufficient number of paid subscribers Now operated as an advertising-supported site An Introduction to E-Commerce Winter 85, 18 9 Advertising-Supported to AdvertisingSubscription Mixed Model Salon. om Operated for several years as an advertisingsupported site Now offers an optional subscription version of its site Subscription offering was motivated by the company’s inability to raise additional money from investors An Introduction to E-Commerce Winter 85, 19 Advertising-Supported to Feefor-Services Model Xdrive Technologies Opened its original advertising-supported Web site in 1999 Offered free disk storage space online to users After two years, it was unable to pay the costs of providing the service with the advertising revenue generated Later switched to a subscription-supported model An Introduction to E-CommerceWinter 85, 20 10 Advertising-Supported to Subscription Model Northern Light Founded in August 1997 as a search engine with a twist Revenue model Combination of advertising-supported model plus a fee-base d information access service January 2002 Converted to a new revenue model that was primarily subscription supported An Introduction to E-Commerce Winter 85, 21 Multiple Transitions Encyclop? dia Britannica Original offerings The Britannica Internet Guide Free Web navigation aid Encyclop? dia Britannica Online Available for a subscription fee or as part of a CD package 1999 Converted to a free, advertiser-supported site 001 Returned to a mixed model An Introduction to E-Commerce Winter 85, 22 11 Revenue Strategy Issues Channel conflict Occurs whenever sales activities on a company’s Web site interfere with existing sales outlets Also called cannibalization Channel cooperation Giving customers access to the company’s products through a coordinated presence in all distribution channels An Introduction to E-Commerce Winter 85, 23 Strategic Alliances and Channel Distribution Management Strategic alliance When two or more companies join forces to undertake an activity over a long period of time Account aggregation servicesIncrease the propensity of customers to return to the site Channel distribution managers Companies that take over the responsibility for a particular product line within a retail store An Introduction to E-Commerce Winter 85, 24 12 Creating an Effective Web Presence An organization’s presence The public image it conveys to its stakeholders Stakeholders of a firm Include its customers, suppliers, employees, stockholders, neighbors, and the general public An Introduction to E-Commerce Winter 85, 25 Achieving Web Presence Goals Objectives of the business Attracting visitors to the Web site Making the site interesting enough that visitors tay and explore Convincing visitors to follow the site’s links to obtain information An Introduction to E-Commerce Winter 85, 26 13 Achieving Web Presence Goals (continued) Objectives of the business Creating an impression consistent with the organization’s desired image Building a trusting relationship with visitors Reinforcing positive images that the visitor might already have about the organization Encouraging visitors to return to the site An Introduction to E-Commerce Winter 85, 27 Profit-Driven Organizations Toyota site A good example of an effective Web presence Provides links to Detailed information about each vehicle modelA dealer locator page Information about the company and the financing services it offers An Introduction to E-Commerce Winter 85, 28 14 Toyota U. S. Home page An Introduction to E-Commerce Winter 85, 29 Profit-Driven Organizations (continued) Quaker Oats Web site does not offer a particularly strong sense of corporate presence Site is a straightforward presentation of links to information about the firm Redesigned site is essentially the same as the previous version An Introduction to E-Commerce Winter 85, 30 15 Quaker Oats Old Home Page An Introduction to E-Commerce Winter 85, 31 Quaker Oats Home Page: 1999 RedesignAn Introduction to E-Commerce Winter 85, 32 16 Not-for-Profit Organizations Key goal for the Web sites Information dissemination Key element on any successful electronic commerce Web site Combination of information dissemination and a two-way contact channel An Introduction to E-Commerce Winter 85, 33 Web Site Usability Motivations of Web site visitors Learning about products or services that the company offers Buying products or services that the company offers Obtaining information about warranty, service, or repair policies for products they purchased Obtaining general information about the company or organizationAn Introduction to E-Commerce Winter 85, 34 17 Web Site Usability (continued) Motivations of Web site visitors Obtaining financial information for making an investment or credit granting decision Identifying the people who manage the company or organization Obtaining contact information for a person or department in the organization An Introduction to E-Commerce Winter 85, 35 Making Web Sites Accessible One of the best ways to accommodate a broad range of visitor needs is to build flexibility into the Web site’s interface Good site design lets visitors choose among information attributes Web sites can offer visitors multiple nformation formats by including links to files in those formats An Introduction to E-Commerce Winter 85, 36 18 Making Web Sites Accessible (continued) Goals that should be met when constructing Web sites Offer easily accessible facts about the organization Allow visitors to experience the site in different ways and at different levels Sustain visitor attention and encourage return visits Offer easily accessible information An Introduction to E-Commerce Winter 85, 37 Trust and Loyalty A 5 percent increase in customer loyalty can yield profit increases between 25% and 80% Repetition of satisfactory service can build ustomer loyalty Customer service is a problem for many electronic commerce sites An Introduction to E-Commerce Winter 85, 38 19 Usability Testing Companies that have done usability tests Conduct focus groups Watch how different customers navigate through a series of Web site test designs Cost of usability testing is low compared to the total cost of a Web site design or overhaul to E-Commerce An Introduction Winter 85, 39 Customer-Centric Web Site Design Putting the customer at the center of all site designs Guidelines Design the site around how visitors will navigate the links Allow visitors to access information quicklyAvoid using inflated marketing statements An Introduction to E-Commerce Winter 85, 40 20 Customer-Centric Web Site Design (continued) Guidelines Avoid using business jargon and terms that visitors might not understand Be consistent in use of design features and colors Make sure navigation controls are clearly labeled Test text visibility on smaller monitors Conduct usability tests An Introduction to E-Commerce Winter 85, 41 Connecting With Customers Personal contact model Firm’s e mployees individually search for, qualify, and contact potential customers Prospecting Personal contact approach to identifying and reaching customersMass media approach Firms prepare advertising and promotional materials about the firm and its products An Introduction to E-Commerce Winter 85, 42 21 Connecting With Customers (continued) Addressable media Advertising efforts directed to a known addressee Also called mass media One-to-many communication model Communication flows from one advertiser to many potential buyers One-to-one communication model Both buyer and seller participate in information exchange An Introduction to E-Commerce Winter 85, 43 Business Communication Modes An Introduction to E-Commerce Winter 85, 44 22 Summary Models used to generate revenue on the WebWeb catalog Digital content sales Advertising-supported Advertising-subscription mixed Fee-for-transaction and fee-for-service Companies undertaking electronic commerce initiatives sometimes Form strategic allia nces Contract with channel distribution managers An Introduction to E-Commerce Winter 85, 45 Summary (continued) Firms must understand how the Web differs from other media Enlisting the help of users when building test versions of the Web site is a good way to create a site that represents the organization well Firms must also understand the nature of communication on the Web An Introduction to E-Commerce Winter 85, 46 23

Biography of Humphry Davy, Prominent English Chemist

Sir Humphry Davy (December 17, 1778–May 29, 1829) was a British chemist and inventor who was best known for his contributions to the discoveries of chlorine, iodine, and many other chemical substances. He also invented the Davy lamp, a lighting device that greatly improved safety for coal miners, and the carbon arc, an early version of the electric light. Fast Facts: Sir Humphry Davy Known For: Scientific discoveries and inventionsBorn: December 17, 1778 in  Penzance,  Cornwall, EnglandParents: Robert Davy, Grace Millet DavyDied: May 29, 1829 in Geneva, SwitzerlandPublished Works: Researches, Chemical and Philosophical, Elements of Chemical PhilosophyAwards and Honors: Knight and baronetSpouse: Jane ApreeceNotable Quote: Nothing is so dangerous to the progress of the human mind than to assume that our views of science are ultimate, that there are no mysteries in nature, that our triumphs are complete and that there are no new worlds to conquer. Early Life Humphry Davy was born on December 17, 1778, in  Penzance,  Cornwall, England. He was the eldest of five children of parents who owned a small, less-than-prosperous farm. His father Robert Davy was also a woodcarver. Young Davy was educated locally and was described as an exuberant, affectionate, popular boy, intelligent and having a lively imagination. He was fond of writing poems, sketching, making fireworks, fishing, shooting, and collecting minerals; he was said to wander with one of his pockets filled with fishing tackle and the other overflowing with mineral specimens. His father died in 1794, leaving his wife, Grace Millet Davy, and the rest of the family heavily in debt because of his failed mining investments. The death of his father changed Davy’s life, making him determined to help his mother by quickly making something of himself.  Davy was apprenticed to a surgeon and apothecary a year later, and he hoped eventually to qualify for a medical career, but he also educated himself in other subjects, including theology, philosophy, languages, and the sciences, including chemistry. About this time he also met Gregory Watt, son of the famous Scottish inventor James Watt, and Davies Gilbert, who allowed Davy to use a library and chemical laboratory. Davy began his own experiments, mainly with gases. Early Career Davy began preparing (and inhaling) nitrous oxide, known as laughing gas, and carried out a series of experiments that almost killed him and may have damaged his long-term health. He recommended that the gas be used as anesthesia for surgical procedures, though it was half a century later before nitrous oxide would be used to save lives. An article Davy wrote on heat and light impressed Dr. Thomas Beddoes, an eminent English physician and scientific writer who had founded the Pneumatic Institution in Bristol, where he experimented with the use of gases in medical treatment. Davy joined Beddoes institution in 1798, and at age 19 he became its chemical superintendent. While there he explored oxides, nitrogen, and ammonia. He published his findings in the 1800 book Researches, Chemical and Philosophical, which attracted recognition in the field. In 1801, Davy was appointed to the Royal Institution in London, first as a lecturer and then as a professor of chemistry. His lectures became so popular that admirers would line up for blocks to attend them. He had earned a professorship five years after reading his first chemistry book. Later Career Davy’s attention turned to electrochemistry, which became possible in 1800 with Alessandro Voltas invention of the voltaic pile, the first electric battery. He concluded that the production of electricity in simple  electrolytic cells  resulted from chemical action between substances of opposite charges. He reasoned that  electrolysis, or the interaction of electric currents with chemical compounds, offered a way to decompose substances to their elements for further study. In addition to using electrical power to conduct experiments and isolate elements, Davy invented the carbon arc, an early version of the electric light that produced light in the arc between two carbon rods. It didnt become economically practical until the cost of producing the power supply became reasonable years later. His work led to discoveries regarding sodium and potassium and the discovery of boron. He also figured out why chlorine serves as a bleaching agent. Davy did research for the Society for Preventing Accidents in Coal Mines, leading to his 1815 invention of a lamp that was safe to use in mines. Named the Davy lamp in his honor, it consisted of a wick lamp whose flame was enclosed by a mesh screen. The screen allowed for the mining of deep coal seams despite the presence of methane and other flammable gases by dissipating the flames heat and inhibiting ignition of  the gases. Later Life and Death Davy was knighted in 1812 and was made a baronet in 1818 for contributions to his country and to mankind; especially the Davy lamp. In between, he married rich widow and socialite Jane Apreece. He became president of the Royal Society of London in 1820 and was a founding Fellow of the Zoological Society of London in 1826. Beginning in 1827, his health began to decline. Davy died at Geneva, Switzerland, on May 29, 1829, at age 50. Legacy In Davys honor, the Royal Society has awarded the Davy Medal annually since 1877 â€Å"for an outstandingly important recent discovery in any branch of chemistry.† Davys work served as a guide and inspiration encouraging many to study chemistry, physics and other fields of science, including Michael Faraday, his lab assistant. Faraday became famous in his own right for his contributions to the study of electromagnetism and electrochemistry. It has been said that Faraday was Davys greatest discovery. He also was known as one of the greatest exponents of the  scientific method, a mathematical and experimental technique employed in the  sciences, specifically in the construction and testing of a  scientific hypothesis. Sources Sir Humphrey Davy: British Chemist. Encyclopedia Britannica.Sir Humphry Davy Biography. Enotes.com.Humphry Davy Biography. Biography.com.Humphry Davy. Sciencehistory.org.Humphry Davy. Famousscientists.org.