Ch. 11 Summary - Social Networks, Auctions, and Portals

• Social Networks have many characteristics
• a group of people
• shared social interaction
• common ties among members
• a shared area for some period of time
• Difference between social networks and portals
• a social network is a network of social connections with other individuals
• a portal is more of a "homepage" where Internet users start and link to other locations from there
• Types of social networks
• general communications
• practice networks
• interest-based communities
• affinity communities
• sponsored communities
• Types of auctions
• English auctions
• Traditional Dutch auction
• Internet Dutch auction
• Name your own price auction
• Group buying auction
• Benefits of auctions
• liquidity
• price discovery
• price transparency
• market efficiency
• lower transaction costs
• consumer aggregation
• network effects
• market-maker benefits
• Costs of auctions
• delayed consumption
• monitoring costs
• equipment costs
• trust risks
• fulfillment costs
• Methods to reduce auction risks
• rating system
• watch lists
• proxy bidding
• Factors for businesses to consider when using auctions
• the type of product
• the product life cycle
• channel management
• the type of auction
• initial pricing
• bid increments
• auction length
• number of items
• price allocation rule
• closed vs open bidding
• Abuses of auctions
• bid rigging
• price matching
• shill feedback
• feedback extortion
• transaction interference
• bid manipulation
• non-payment after winning
• blocking legitimate buyers by bidding high then no paying
• shill bidding
• transaction non-performance
• non-selling seller
• bid siphoning
• Major types of Internet portals
• Enterprise portals
• general purpose portals
• vertical market portals
• affinity groups
• focused content portals
• Business model of portals
• Revenue sources
• ISP services
• general advertising
• tenancy deals
• subscription fees
• commissions on sales