Electronic Fund Transfers, Electronic Data Exchange - Assignment Example

Generally, the paper "Electronic Fund Transfers, Electronic Data Exchange" is an outstanding example of a finance and accounting assignment. Electronic commerce is the modern tool for shopping online or transferring electronic data through the most up-to-date technologies and newest means of transmission. The major role of the emergence of E-commerce was laid in the fact that it helps in a massive reduction of costs, improving product quality, reaching new customers or suppliers, creating new ways of selling existing products. Emerging categories of E-commerce such as Business –to- Consumers, Business- to- Business and Business processes have helped to accelerate the pace of income generation through the use of internet technologies.

Electronic Fund Transfers, Electronic data Exchange, value-added networks have resulted in the segregation of the different kinds of revenue models available for selling goods and services on the net and engendering sales to the customers, identifying the target customers, creating a common platform, a market base for the identified customers. A business can reduce its costs by using e-commerce in its sales support, order-taking and price quoting processes.

To understand the link between the different revenue models and their significance in creating a huge customer database, let’s study few examples of each:

For a Web Catalog Model, Avon Cosmetic has been chosen as it is one of the most popular cosmetic companies providing a wide range of products. The maximum dealing with the customers is through the catalogs circulated on the net or the catalogues posted to different intermediaries for sale. The product Is not directly available in retail shops for sale. The Digital Content revenue model is apt for selling digital coded products such as downloading videos, movies etc. It serves as an archive for the category: Youtube and other user-generated video sites. This site is a popular attraction for the teens and the young crowd hence is able to generate a good sale. The advertising support revenue model can be best described by taking the example of ‘Naukri.com’ a competitor of ‘Monster.com’. The ads on the television and on the net have created a remarkable impact on the consumer's mind, most of the people get associated with the company through logging in and finding enormous opportunities to get employed and being a part of their customer inventory.

The advertising and subscription mixed revenue model was reflected in the strategy of American Journalism review where the subscribers have to pay a certain amount of subscription charges for a particular time period along with a regular update of the articles and journals on the net. For the Transaction fee revenue model, Make my trip .com can be a suitable quote because here Businesses offer services and charge a fee based on the number or size of transactions processed. There is a complete elimination of the intermediary from the value chain apart from the web site which serves the purpose of the intermediary. Internet games developer site ‘nuskyway.com’ fits into the requirement of the fee for service revenue model as the fee charged here is on the value of service provided and not on the number or size of the transaction, and there are no broker services attached also.

            Customer-Centric Design:

Web Portal revenue models are strategies that build on a combination of virtual communities and other activities through the medium of Shopping directories, white and yellow pages, free email, free storage, chat rooms, games, employment services, etc.

For a success of a website there features play a vital role:

• The advertisement on the web site must be search related
• One rough measure of stickiness: how long each user spends at the site reveals the interest rate of the customer
• The site popularity is determined by the number of unique customers visiting the site
• Higher visitor counts yield higher advertising rates thus popularity and awareness among the people is to be generated
• Sticky features such as chat rooms, e-mail, and calendar functions should be added