Chapter 9: E-commerce Software

Google Analytics 

• Reflect on which statistics you feel are most important and why.
• What statistic would you like to see that may not be there already?
• How can this information be used to assist in developing an organization's e-commerce strategies?

After a week of using Google Analytics on my blog, there were (3) main categories that I feel collected the most important data. These categories were "Visitors," "Traffic Sources," and "Content." Within the "Visitors" category,  I think the overall visits, absolute unique visitors, pageviews, bounce rate, and browser capabilities helped to see the success rate in attracting viewers to the website as well as recognized the types of viewers visiting. With my blog, I received 34 overall visits within a week, but of those 34, only 29 were absolute unique visitors. This means that 5 visits actually came from the same viewer. These 29 visitors, visited an average of 1.21 pages per visit and gave an 85.29% bounce rate, which showed me that these viewers showed little interest in my blogs. As far as the usefulness of the browser capabilities, I think by knowing which browsers your viewers are using, you can better create your website to compliment those browsers and hopefully gain more traffic. Reviewing the "Traffic Sources" section would also help because of it's breakdown of sources and keywords, which attracted visitors to my site. The majority of my visitors came from a direct link, which showed me that very few visitors did not take any effort in searching for my website. However, for those who did, the google search tool directed them the most and by using the keywords that they used to find my site within my blogs, I can hopefully attract more visitors. However, it is the "Content" section which helps the most in attracting more visitors. By seeing the breakdown of which pages the visitors visited the most, I can see what interest them and what did not. Many of my visitors showed more interest in chapters 5 and 8 as opposed to the rest of the chapters. This can help me better improve the pages they did not visit as well as expand on the visits they showed more interest on. By using these three statistic categories, I can help focus on certain visitors, customize my website to the majority of my visitors, take advantage of keywords through search results, and edit content in terms of viewer interest.

If I were to ask for any other statistic, which I think would be beneficial to e-commerce, I would suggest maybe having an "Origin" section. This section can be broken down by countries, states, and even languages. This would help in international e-commerce. I would also suggest a "Transaction" section. Many e-commerce sites include web catalogs and process payments. Perhaps having the capability to track transactions would help companies better track their profits, rate their products based on profits, expand their payment options, as well as better their payment software. Last, I would maybe want a "Time" section, which would track the exact times of visits. Companies can take advantage of this by highlighting short-term sales during peak times. They can also better their customer service and sales representative availabilities, which will not only take advantage of more sales, but show the quality of their service. Overall, all of these suggested statistics can help to increase the quality of an e-commerce business, but it is really up to the company or individual in how they take advantage of these statistics. 

Chapter 8: Web Servers

RQ1. Most electronic commerce Web sites use three- tier client / server architecture. In about 100 words, explain why they do and briefly describe what happens in the third tier of most electronic commerce Web sites.

The three tier architecture is needed to support dynamic websites and to process transactions. In most cases the third tier consists of databases and software applications which interact with the web server. The web server can extract the information from the database in order to produce dynamic websites. The third tier also helps with web catalog websites by responding to customer requests. For example, if a customer wanted more information on a product, the third tier is what allows the web server to search and retrieve the requested information from a database. Other than responding to requests, it also processes and responds to transactions by interacting with applications such as checkout software and databases consisting of pricing and “order complete” responses, which is important in ecommerce operations.

RQ3. Beginning with the links provided in the Online Companion, locate more information about two of the three Web servers discussed in the chapter: Apache, Microsoft IIS, and Sun JSWS. Write approximately 100 words about each of the two servers you choose. Include descriptions of three features for each Web server and indicate the computer platforms and operating systems on which each runs.

Apache is an open source web server created and maintained by a community of developers. It is the most common web server used online today. It is cross-platform compatible, supporting many of today’s operating systems such as Microsoft Windows, Mac OS X, Unix, and Linux. Apache also has a variety of features such as modular programming, DBM database implementation, customized error responses, as well as authentication and authorization set up.

Following Apache as the second most used web server is Microsoft IIS. This web server was created by Microsoft Windows specifically for Windows operating system. Unlike Apache, IIS is a paid service. It is a modular architecture with features such as ASP.NET and PHP support, integrated media platform, and centralized web farm.

RQ4. In one paragraph, outline the main differences between a typical desktop PC and a computer that would be suitable to use as a Web server for a small Web site.

A desktop PC is an individual-based computer used for personal activities such as browsing the internet, word processing, and media downloads. However, a web server is used on an upscale level by responding to client requests and delivering content to the internet. In order for web servers to take on these tasks, they have high-capacity memory and hard disk drives as well as faster, also multiple processers unlike PCs, which usually have one processor. Since web servers consist of these high-capacity elements, they are typically much larger and more expensive compared to  a desktop PC.

E2. You created a Web site for International Paper Products and Pulp, complete with links to other pages on your site and to pages on the Internet. Bob Pardee, your supervisor, wants you to check periodically that the links on the corporate site are still valid. Instead of purchasing and installing a link- checking program, you decide to investigate online link check-ers ( Web sites that allow you to enter a Web site’s root or home address and then check all the links that emanate from that site). Use W3C Link Check or Elsop LinkScan Quick Check to check the links on any site of your choice. Print a few pages of the report and be prepared to turn them in to your instructor. Be patient. The program can take some time to complete its work— especially on a Web page that has a large number of links.

In using the W3C Link Checker, I checked out www.smashingmagazine.com. The results showed that 26 links were not checked due to the robots exclusion rules. Meaning, the link was instructed by its web owner to disallow a check with robots.txt files.  Of the links that were checked, 7 links were broken links. This meant that they were missing characters in the URI in order to properly link. However, only 1 link was completely disabled due to a server side problem.

Chapter 7: Legal, Ethic, and Tax Issues

C1. Nissan.com

1. U. S. courts sometimes appoint advisors ( often called Special Masters) to help them decide cases that involve complex business or technical issues. Assume you are a business advisor to a court that is hearing an appeal of the Nissan Motor Co. v. Nissan Computer Corp. case. In about 200 words, explain why Nissan Motor Co. is so concerned about the use of these two domain names and how a monetary damages judgment of $ 10 million could be justified ( if you do not believe that the monetary damages are justified, explain why).

The concern that Nissan Motor Co. has in terms of the two domain names is the association their company will have due to the use of the “Nissan” name. Since Nissan Motor Co. was established before Uzi Nissan’s company, “Nissan” can be considered their trade name. Therefore, when people see or hear of “Nissan,” they think of Nissan Motor Co. and its products such as their vehicles. Having this name registered under a different company can confuse customers wanting more information on Nissan Motor Co. and perhaps veer prospective buyers away from the Nissan Motor Co. products. This confusion could result in profit losses. Considering the amount of years that Nissan Motor Co. had already established their name, the worth of their products, and then the years that Uzi Nissan registered the two domains for, Nissan Motor Co. potentially had a profit loss of 6 years. I believe that would justify the $10 million dollar suit.      

2. In about 200 words, provide an outline of the ethics of the position taken by Uzi Nissan in this dispute.

Uzi Nissan ethically registered the two domain names under his family name, which would be considered a “basic right.” He also sold products, which had no relevance to Nissan Motor Company. The products he sold were computer related, which was entirely different to that of Nissan Motor Co. vehicle products.  With that in mind, he had no intentions of associating the domains to Nissan Motor Company only to his family name nor did he want to persuade sales since his products had no relation or mention of Nissan Motor Company.  

3. In about 200 words, provide an outline of the ethics of the position taken by Nissan Motor Co. in this dispute.

Nissan Motor Co.  changed their brand name before Uzi Nissan established his company thus branding the “Nissan” name for their products. Their vehicle products gain popularity in the U.S.  making it a well-known brand name. In order to secure their brand, Nissan Motor Company’s lawyer sent a letter to Uzi Nissan to notify him of the misuse of their brand name. However, Uzi Nissan took the notice lightly and did not reply nor make any changes. Uzi Nissan’s negligence led Nissan Motor Co. to believe his use of the two domain names were for cybersquatting.  

4. If you believe that the courts’ decisions in this case are fair to the parties and the general public, explain why in about 200 words. If you believe that the courts’ decisions are not fair, outline a decision ( in about 200 words) that you believe would be fair.

“Cybersquatting is the practice of registering a domain name that is the trademark of another person or company in the hopes that the owner will pay huge amounts of money to acquire the URL.” However, in this case, Uzi Nissan had no intention of selling the domain names to Nissan Motor Company. He sincerely registered the domains because he was only using his family name. However, under common law, Nissan Motor Company had trade name rights. Since Nissan was established before Uzi Nissan’s company, the name “Nissan” identified Nissan Motor Co. first. With both parties acting under ethical terms, I believe the court’s decision was fair. It eliminated the confusion concerns of Nissan Motor Co., but was also considerate towards Uzi Nissan’s company since he registered the domains without harmful intent. I think favoring one company over the other in this case would contradict ethical approaches, thus making this the best decision. 

Chapter 6: Web Communities

E4. Midland University, like most metropolitan universities, faces a chronic shortage of parking spaces on campus. Each stakeholder group in the typical university community (these groups include students, faculty, administrators, staff, and visitors) believes its members should have the top priority for parking spaces. You have been assigned to a university task force to study the problem. You decide that an annual online auction of parking spaces conducted on the university’s intranet could provide a solution. In about 300 words, describe the elements of an annual online auction for parking spaces at Midland University. Be sure to include provisions for disabled persons and for those university employees who do not have regular access to computers in their typical work environment (such as janitors, physical plant maintenance workers, or gardeners).

                I believe that implementing a Reverse Auction for parking spaces at Midland University would be the best option. Reverse Auction works well in this situation because the products being sold have more than 1 quantity and are all the same. Also, since there are a number of stakeholder groups bidding for this product, this would be the fairest way to sell. It allows the buyer to buy the product at their desired price rather than have everyone compete and drive prices to where some individuals cannot afford it.

                First, I think the parking spaces should be broken up in Lots based off the groups. For example, parking spaces for students would be called the “Student Lot” and staff would have a “Staff Lot.” This way, each group gets the same amount of parking spaces and do not have to compete with each other on bidding. Of course, the University should keep a couple non-specified Lots for those who are unable to win a reserved parking space for the year.

                In conducting the Reverse Auction, each Lot will commence the auction at the same time. Half of the parking spaces from each lot will be held online while the other half will be conducted through form submission. This way, individuals who do not have access to a computer may also bid. All parking spaces will begin with a specified price and since it is a Reverse Auction, the price will drop in increments such as $50 every 30 minutes. Each bidder may bid at the current price or indicate a bid they are willing to pay. The auction ends when the number of people bidding equals the number of spaces available. All winning bidders then pay the final posted price even if a winner bid higher. However, those who bid a price below the final posted price will not win. Also, if there is ever a tie, the bidder who bid first wins.

Chapter 5: B2B Strategies

1.      Become familiar with RFID technology and its potential uses in Harley- Davidson’s supply chain using the information presented in this chapter and information you obtain through the Online Companion links, your favorite search engine, and your library. In about 400 words, evaluate the advantages and disadvantages for Harley- Davidson of replacing its bar codes and scanners technology with RFID.

HARLEY DAVIDSON—RFID Evaluation

Radio Frequency Identification Devices (RFIDs) are small chips used to track inventory through radio transmissions and are powered by radio signals similar to that of a cell phone. This technology is fairly new, but quiet advanced in comparison to bar codes. Unlike bar codes, RFIDs do not have to be visible for scanning. They can be scanned through boxes, over product materials, and from far ranges.

Using RFID technology can greatly benefit Harley Davidson. RFIDs can track inventory much faster and in real-time due to its scanning capabilities. This helps to manage inventory by making sure that items are stocked accordingly. It also improves processing time in terms of ordering needed supplies. Last, since RFIDs have read and write capabilities unlike barcodes, mistakes are less likely and maintaining accuracy is consistent.

However, RFIDs do have its flaws. Since its technology is just beginning to rise in popularity, the cost of implementing RFID in a company like Harley Davidson would be high. Harley Davidson would need to support not only their own massive inventory, but also deal with hundreds of suppliers in providing RFIDs and scanners.  There is also the issue of reliability. Since scanning capabilities rely on radio signals, just as a cellphone could lose signal, so can an RFID. Also, in terms of signals, there is always the possibility of security. Implementing a secure network could be costly.

3.      Develop and present a timetable for the adoption of RFID technology with specific recommendations on where Harley- Davidson should first implement it. For example, RFID tags could be installed in motorcycles as they leave final assembly, in various parts before they are shipped from suppliers, or in subassemblies as they are created at various Harley- Davidson manufacturing operations. Justify the time delays you propose in the adoption of RFID at each stage of the supply chain.

I recommend that Harley Davidson first implement the RFID technology with its Franklin Distribution Center in Wisconsin. This center is responsible for more than 22,000 parts and 36,000 locations. By implementing the technology with this center first, it not only familiarizes Harley Davidson’s main distribution center, but it also allows them to educate the 36,000 locations that they manage.  I would estimate the training to be completed within 1-3 years. Delays could be due to the amount of locations needing training as well as transition time needed from the familiarity of bar codes to RFIDs. During the same time, I recommend that the Harley Davidson Dealer Systems located in Ohio work with the Franklin Distribution Center for training and inventory success. With H-D Dealer Systems responsible for providing technical tools, training, and support to U.S. dealers, expanding the technology within the Harley Davidson chain would be much quicker.  After training and implementing the RFIDs within the two centers, I recommend that the RFIDs be distributed to the five Harley Davidson U.S. Operations facilities. Here, RFIDs can be placed during final assembly.  The transition to the new assembly procedure could pose delays, but I estimate that within 2 years, RFID procedures will be established making the implementation of RFIDs with Harley Davidson total from 3-5 years. 

Source: www.harley-davidson.com

Chapter 4: Marketing

E1. Visit FTD.com to examine how that company implements occasion segmentation. Write a report of approximately 200 words in which you describe two clear examples of occasion segmentation on the site and explain why an online florist would mix occasion segmentation with product segmentation rather than use one or the other separately.

When first entering FTD.com, the first thing I notice is a colorful bouquet of flowers and large text that says, “Make their BIRTHDAY beautiful.” That alone, shows occasion segmentation because it links a “specific time or occasion” to their product. Other than that homepage ad, FTD.com also has a drop down button and sidebar buttons options for specific holidays or occasions. Each occasion have gift suggestions such as flowers, food, and teddy bears, which associate best with that occasion. These examples of occasion segmentation allow viewers to associate their occasion interest to specific products.

However, I believe an online florist would benefit more in mixing occasion segmentation with product segmentation. With florist, the product focus is the flowers. The focus is not a birthday, an anniversary, or a holiday, it’s the product itself. In using occasion segmentation on its own, viewers would only associate flowers to an occasion, thus only making profit when an occasion arises. If product segmentation is implemented as well, a viewer first assumes that the product is a beautiful bouquet of flowers meant for anything and anyone.  

C2. Montana Mountain Biking

1.       Review the five stages of customer loyalty shown in Figure 4- 4 and prepare a report of about 200 words in which you classify MMB’s customers. Estimate the percentage of MMB customers who fall into each of the five categories. Support your classification with logic and evidence from the case narrative.

According to the five stages of customer loyalty, I believe MMB’s customers lye mostly in the commitment category. If I were to estimate their customer percentage in regards to all the stages, I would assume these percentages:

Awareness:         20%

Exploration:        15%

Familiarity:          15%

Commitment:      65%

Separation:           0%

I estimated MMB’s commitment rate at 65% because the narrative stated that out of their current customers 80% were repeat riders. This also meant the other 20% would have to be in the familiarity group because they were now experiencing MMB, making it more likely for them to try MMB again. However, there current customers cannot fill up all the stages so I decreased the percentage in proportionate to what I assumed the other stages rates were. I came up with 20% as their Awareness rate because with the amount of advertising MMB spent in magazine ads, I would assume many people have seen them to associate their name to Mountain Biking. Also, it was stated that the MMB logo was well-known in the upper Mid-West, thus having more awareness rating. I then left the remaining 15% to Exploration because of the new website traffic as well as email inquiries. Last, I did not enter any Separation rates because it seemed as though many customers who chose MMB were determined to stick with MMB.   

2.       In a report of about 200 words, recommend an e- mail marketing strategy for MMB. In your recommendation, consider the results of MMB’s earlier print mail advertising campaign, your answer to the first requirement, and the potential offered by permission marketing.

I would suggest combining content and advertising as far as email marketing for MMB. With the popularity of the MMB photos in mind, I think it would be best to include them in a newsletter. This way, MMB not only shares photos and experiences that interest the recipient, but also allows the recipient to associate them to MMB. Below the newsletter, MMB should provide a mountain biking tour registration link as well as a link to the website. Creating this newsletter with the links would allow more traffic for potential customers.

If MMB were to stick with their print advertising, they would spend more printing the ads then they would in gaining profit from those ads. With email marketing, there would be no cost in printing because everything is done online. This would save advertising cost as well as provide a low-risk of lost in terms of return revenue. However, if MMB opted for just permission marketing where only recipients who were already interested asked for emails, MMB’s efforts to expand their market would be limited. Using the email marketing strategy I suggested would bring in potential customers of a wider interest such as the photos not just mountain biking tours.  

4.       Prepare a report of about 500 words in which you outline an affiliate marketing strategy for MMB. Include a description of the types of Web sites that MMB should attempt to recruit as affiliates, and present at least five examples of specific sites that would be good referral sources.

MMB Affiliate Marketing Strategy

An affiliate is a web site, which promotes another company’s product(s) in order to get click-through sale revenue. Since MMB mainly sells one product, which is Mountain Biking Expeditions, MMB could serve as an affiliate site to related products. Products which relate to MMB would be Mountain Bike Gear, Apparel, and Accessories. 

The best way to set up an affiliate is to join their program then add the linked product images to MMB’s website. MMB should also provide products with good reviews in order to have higher click-through sales. I would also suggest having monthly MMB product picks that can be added to an MMB newsletter. This way, MMB can market directly to interested customers as well as the usual website traffic.

                Five affiliates I would suggest are REI, Sports Authority, Dick’s Sporting Goods, JensonUSA and Great Outdoors. All of these companies sell related products and most of them also promote outdoor activities where there products can be used. This is beneficial for MMB because not only can MMB gain revenue from affiliate sales, but also create a partnered advertising format.

                From all the affiliate suggestions, I highly recommend that MMB affiliate with REI or Great Outdoors. REI is a popular outdoor products chain and I believe associating with such a well-known company would help boost MMB’s popularity as well. Plus, REI has a large inventory of cycling products, which would allow more options for customers.  

Although the Great Outdoors is neither as popular nor have as large an inventory as REI, they do have the benefit of promoting MMB towards their viewers. Great Outdoors not only sells Outdoor Gear, but they are also an Outdoor Resources and News Website. They link information such as tour events, pictures of tours, and tips when taking a bike tour. MMB associating with Great Outdoors would help establish them on their website and perhaps link future tour photos and news to MMB.      

Chapter 3: Revenue Models & Web Presence

E2. Evaluate the usability of two Web sites that sell large- screen LCD high- definition televisions. A list of links to companies that sell this type of product is included in the Online Companion for this exercise, but you may use other sites if you wish. In your evaluation, compare the sites on how easy it is to learn about the product and purchase the product. Your report should include a section of about 200 words in which you describe the criteria you used in your evaluation, a section of about 300 words that summarizes your findings, and a section of about 100 words in which you present your conclusion.

LCD HDTV Website Evaluation: BestBuy.com vs. hhgreg.com

In evaluating these two websites, I used Dr. Nielson’s five components in testing usability. The five components are the following:

1.       Learnability—learning the design to easily accomplish basic tasks for the first time

2.       Efficiency—quickly perform tasks

3.       Memorability—easy to remember tasks when returning to the site

4.       Errors—amount of errors a made and whether it is easy to fix those errors

5.       Satisfaction—pleased with the use of the design

When first entering BestBuy.com, navigating was very easy to learn because it’s right at the header in big, distinguishing text. The main buttons have a drop-down menu, which helps to narrow the user’s options. Although, it took me about (3) clicks before I could even get to the TV listings with the amount of narrowing options. Once I got the listing though, it was fairly easy to find the best options with all the search tools they provide. They have a “sort by” drop-down that list the user’s options by Price, Brand, Best Sellers, and New Arrivals. To the left, there are also narrowing selections such as Size, Features, Resolution, and several other specifications. The list itself is very well organized as well. Each product contains an image, the price (red sale price distinction), and a brief description of the item.

When I returned to the site the next day, it was just as easy to start my TV search as the first time around. I did not personally encounter any errors, but judging from the application they use in order show graphics and video, some users may face accessibility options if the so not have a flash application installed to their browser. However, it can easily be fixed by approving a free flash installation.

Overall, I would say that my experience with BestBuy.com was satisfactory. The website design was consistent, attractive, and well-organized. Searching for an LCD HDTV was as easy as typing it into the search bar, clicking through the menu options, or even using their very own TV Finder application. If I did purchase a TV from them, I would feel safe as well because the site is trusted by (2) certified companies, cybertrust and TRUSTe. In the end, the site succeeds in selling to the customer.

When first entering hhgreg.com, navigating was a lot easier than BestBuy.com, but that was mostly due to the fact that they had less of an inventory. Their navigation was also located at the header and each product type had a button. Each button also had drop-down menus to narrow the search. It was a lot faster to get to a TV listing with hhgreg.com with only (2) click options. However, the listing was not nearly as organized as BestBuy.com. They did not provide a sort option and only had (3) narrowing options, which was by Category, Brand, and Price. Also, while the listing had the same format with picture, price, and description, the option of availability and shipping was not as advanced as BestBuy.com. BestBuy.com gave real-time location and delivery date estimates while hhgreg.com only had a check mark of whether Pickup and Shipping were possible for the product. The user would then have to directly call the store located near them to get specific inventory info and shipping costs.

Overall, although hhgreg.com has a simpler design with an easily memorable navigation and minimal possibility for error, the website did not compare to BestBuy.com. The overall layout was aligned to the left so that there was a lot of white space to the right, which made it look unattractive and unprofessional. The colors were consistent, but it was an amateur design for a company promoting technology. However, it was secured by McAfee, which is a well-known company, but certified by a lesser known Network Solutions. I wouldn’t feel as uncomfortable purchasing a TV on their site as I would with BestBuy.com. Although, searching for an LCD HDTV was just as easy as BestBuy.com. In the end, I would have to say my experience with hhgreg.com was less satisfying than using BestBuy.com.

C2. Prepare a comprehensive report for Mario in which you outline and analyze the possible revenue models that ASIB might use for its Web site. You should address the two journals as separate issues. Your report should provide the basis for a presentation to the ASIB executive board and should include specific recommendations where possible.

ASIB Revenue Model Analysis

Attention: Mario

I understand that EBSCO has approached ASIB and proposed to manage the distribution of ASIB’s Annals of International  Business Journal. I believe taking this opportunity would be beneficial to ASIB. In terms of Revenue Models, this would be considered a digital content revenue model. ASIB would essentially be selling their Journal issues to EBSCO’s library, which academic and business institutions can subscribe to.  In doing so, ASIB would not only increase subscription traffic because of the popularity of EBSCO’s database, but also cut back on publication costs.

Looking at the numbers, printing alone would save $24,800. The cost to print yearly issues for all 600 subscribers of the Annals of International Business Journal cost $28,800. If ASIB were to take EBSCO’s offer, ASIB would only spend $4,000 a year ($1,000 * 4 issues) to produce PDF files of their journal. Managing these online journals would be just as cost-effective. Rather than have $35,000 a year worth of managing and maintenance cost, ASIB would decrease that cost down to $6,000 ($500 per month) saving ASIB $29,000 a year.

Choosing the digital content revenue would increase ASIB’s net profit four times more than what ASIB currently makes a year. With EBSCO proposing to pay ASIB $10,000 per year for access to their journal as well as $50 per subscriber, ASIB would be making an extra $40,000 a year ($10,000 + ($50 * 600 subscribers)).  If we add that cost to the $260,000 ASIB usually makes within a year in revenue. ASIB would have a total of $300,000 in revenue. However, since publishing cost is less with EBSCO, ASIB would only have to deduct $15,000 ($4,000 printing + 6,000 maintenance, + $5,000 publication editing) as oppose to their usual $204,800 publication cost. With the $15,000 deduction, ASIB would make a profit of $285,000. In comparison to the print publication profit of $55,200, ASIB would make an extra $229,800 in profit choosing the digital content revenue.  Taking all this into consideration, I highly recommend that ASIB accept EBSCO’s proposal.

As far as increasing revenue for ASIB’s International Business Today, I would propose for ASIB to take on the advertising-subscription mixed revenue model. With companies already expressing interest in establishing ads on ASIB’s website, ASIB could potentially increase advertising revenue by almost double. ASIB’s current advertising revenue is at $20,000 per year, but as estimated, at least $3,000 per month of revenue can come from web site advertising. This would increase ASIB’s total revenue by $16,000 ($20,000 + ($3,000 * 12)).

However, I understand that ASIB is concerned about losing subscribers using this model. My suggestion is that ASIB lower their online subscription rate in comparison to their print subscription. This way, people are more drawn to subscribe online than with print. If ASIB continues to post their best articles with the ads, the profit from the ads would make up for the lower subscription cost. Also, in using this technique, ASIB should advertise that when subscribing, less or no ads would be shown. This would definitely gain more subscribers. If successful, the total revenue along with the Annals of International Business Journal taking on the digital content revenue model would be $316,000.