Lecture Eight--ICS 131--Fall 00--19 Oct 00
Recap on Lecture Seven--Privacy
Lots of people collecting information on us
•Web sites collect information on users
•Government agencies collect info on people and organizations
e.g., IRS, DMV, state tax agencies, Carnivore
•Financial institutions collect info on users
What is being done with the information?
•Using it, e.g., Amazon, governments
•selling or giving info to others
e.g., state gov'ts selling DMV info
Security of the information
•exercise rights under privacy policies
•pay cash, don't use club cards
•FTC proposals--Model behavior
"fair information practices"
notice, choice, access, and security."
•Bills pending in Washington
•Can we trust the government in this area
Return of pen--Installment Two
AK Steel case,
Schwartz, John. Corporate case in Ohio raises questions on internet anonymity, NY Times, 17 Oct, C1, C4 ®
Jane Doe characterizes the boss as litigious
Boss wants to know who Jane Doe is
Defense says wait until prove libel
Supreme Ct says freedom of speech includes anonymous statements
Can't yell "fire" in a crowded theatre
Some background on AK Steel
Suing USWA on RICO grounds
Combat fatigues and combat boots--war
So USWA has offered support to Jane Doe
Florida case--Hvide Marine
Dunn, Ashley, and Kaplan, Karen. 2 Firms ordered to identify internet message posters, LA Times, 17 Oct 00, C5®
Florida court has issued an order to AOL and Yahoo
ACLU tried to protect identity of eight anonymous individuals
How will this play out?
Remember not to do it from company hardware
Lecture Eight--Electronic Commerce--Retail
Future of e-tailing--BW
Responsibility of auction sites--E-Bay, Yahoo
Responsibility of e-tailers--Buy.com
New ideas--Land's End, Raytheon
Future of e-tailing--BW
Berman, Dennis K., and Green, Heather. Cliff-hanger Christmas.
BusinessWeek E.BIZ, 23 Oct 00, EB 30-EB 38®
Great Internet Shakeout
once-limitless venture capital running out, stock prices down
Goldman, Sachs "...predicts at least 15 of 28 public e-tailers
will run out of money by the end of next year."
will e-tailing pure plays survive on their own?
traditional merchants having problems with on-line units
"Both pure e-tailers and traditional retailers
need to tap the expertise of the other
to make online selling work."
Example: Toy 'R' Us and Amazon
e-tailing should double this season
"consumers love it"
bricks and clicks
get customer to merchandise quickly,
get merchandise to customers quickly
cut costs of getting customers/business
Example number two: British grocer Tesco
Beck, Ernest. British grocer Tesco thrives filling web orders
from its stores' aisles. WSJ, 16 Oct 00, B1, B13®
US Counterparts (Webvan, Peapod) building automated
warehouses while Tesco operates simpler, cheaper
Tesco is largest grocer in UK, distances shorter
another example of "bricks and clicks" working together
Mix it up
mix of products
higher profit products
multi-channel customers buy more, e.g., Eddie Bauer
some pure plays may make it if they can get volume up
Sounds like Brown and Duguid to JF
What are responsibilities of Web site?
Associated Press. Yahoo purchases to be insured against fraud.
LA Times, 16 Oct 00, C8®
Lloyds of London,
Guernsey, Lisa. EBay faces suit on sale of fake goods.
NY Times, 16 Oct 00, C6®
CA judge has allowed six people to proceed with a law suit
sports memorabilia fakes
Can eBay be responsible?
Should eBay be responsible?
auctioneer or forum?
What if web site makes a pricing error?
Fields, Robin. Buy.com will pay $575,000 to settle bait-and-switch suit.
LA Times, 18 Oct 00, C3®
What is "...online stores' obligations to consumers when
pricing errors occur on Web sites"
"Last February, Buy.com's Web site mistakenly listed the Hitachi SuperScan 753 on sale for $164.50 when, at the time, the product retailed for $588. Orders flooded in. Buy.copm honored the price for the 143 monitors it had in stock but canceled thousands of other orders."
Why is it different than a bricks and mortar pricing error?
Developments in e-tailing
Tedeschi, Bob. E-Commerce Report: Large companies try to find ways to spread Internet retailing throughout their operations,
NY Times, 16 Oct 00, C14(O)
Raytheon developing software that other divisions might use
Might sell it to other organizations
Queen supply--plastic bags
Kibbutz--develops system for bakery
Quick, Rebecca. Getting the Right Fit--Hips and All. WSJ, 18 Oct 00,
Big obstacle to on-line clothing sales:
"How can you tell if something fits if you can't try it on."
So Lands' End has this trailer
Bricks and clicks--similarity to Brown and Duguid
Responsibility of web sites to protect consumer against fraud
Responsibility of web sites on pricing errors
"New" wrinkles in e-tailing
Associated Press. University to require students to take online courses,
LA Times, 16 Oct 00, C11 [www.fdu.edu](O)
Berry, Kate. One less tax-time headache:
software to download data, NY Times, 16 Oct 00, C2(O)
Answers to Question 2 on Quiz 2
Week Five Schedule
Discussions (noon on Tuesday) (one on Thursday)
Lectures--Monday and Friday