Electronic Business Models

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Transcript Electronic Business Models

The Information Society
Companies as drivers of change
Competition and strategy
ICT and Strategy
ICT
acceptance
Competitive advantage
Transaction costs, value chain
The New Capitalism
E-Business: the perspectives
Financial
perspective (4)
Technology
perspective
E-Business
(2)
Consumer
perspective
(1)
Industry
perspective (3)
Perspectives
• Financial
• Industry
Business model (how to
earn money)
Strategy, competitors,
industry structure (how to
beat the competitors)
Perspectives
• Technology
Technology acceptance
models (when, why do
consumers use IT systems)
• Consumer
Consumer behaviour,
product/service characteristics
(who uses why the Internet for
what)
E-Business: the perspectives
Financial
perspective (4)
Technology
perspective
E-Business
(2)
Consumer
perspective
(1)
Industry
perspective (3)
A quick scan
• Make a list of the products/services for which you used the
Internet to search for information during the last month
• Which of these products/services did you buy and where
(Internet, shop, catalog)
• Make a list of the products/services your parents bought the
last month through the Internet
• Make a list of the products/services your grandparents
bought last month through the Internet
• Make a list of the products/services you think your fellow
students bought last month through the Internet
1. Marketing perspective
• 1.1
• 1.2
• I.3
Nature of product/service
Stages of the decision making
process
Consumer characteristics
Test the audience
• In groups of 3/4 students: which
products/services are suitable to sell
through the Internet and why?
1.1 Nature of
services/products
•
-
PRODUCTS
Physical
Standardization
Production separate
- Possible to store
Koiso-Kantilla (2004)
•
-
SERVICES
Intangible
Heterogenity
Simultaneous
production
- Perishability
Classification according to
tasks
• Perceived risk
• Frequency of purchase
• Functional versus expressive value
Zeng and Reinartz (2003)
Evaluation stage
• High touch versus low touch
• High information content versus low
information content
• Demand on consumer expertise
The information component
•
•
•
•
Search goods
Experience goods 1
Experience goods 2
Credence goods
Girard et al. (2003)
Information and tangibility
Experience
goods
Search goods
Low tangibility E.g. Advisory
services
E.g. Stock
market quotes
High tangibility E.g. Personal
items
E.g. Music
CD’s
Poon (1999)
Positive and negative reinforcement products
% who have
shopped online
% who have
purchased online
Purchase/shop
ratio
Travel
services
69%
44 %
63 %
CD/Music
53%
35%
66%
Wine
16%
4%
25%
Sporting
goods
41%
21%
51%
Virus
detection
software
17%
9%
49%
Insurance
13%
1%
8%
9%
2%
23%
Tires
Service process matrix
Service shop
Professional
service
Service factory
Mass service
High
Interaction
and customization
Low
Low
High
Labor intensity
Junglas and Watson,
2004
Internet service process matrix
Service center
The club
Utility
Mass
entertainment
High
Customization
Low
Low
High
Interaction
Junglas and Watson,
2004
Conclusions?
•
•
•
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•
Books
Cds/dvds
Travel
Tickets
Pornography
•
(Not the shopping goods, which were predicted in 1967 by Doody
and Davidson, HBR, )
Marketing perspective (1.2)
• The stages of decision making
Test the audience
• Assume you are intending to buy a new
TV. How do you come to your decide
which television you are going to buy?
Stages of decision making
•
•
•
•
•
Problem recognition
Information search
Evaluation of alternatives
Purchase decision
Post purchase behavior
Howard and Sheth (1969), Engel et al. (1994), Kotler (2003)
Information search paradox
Number of
important features
Product familiarity
Stages and channel preferences
Problem recognition
Pro off-line
Pro on-line
No arguments
No arguments
Information search
Reduction of the
search effort for price
and product
information
Evaluation
Feel and touch;
perceived risk
Only price and other
specific attributes
Purchase
Delivery time
Perceived risk
Digitized
products/services
(delivery time)
Gupta et al. (2004)
Channel use during orientation stage
% of households who bought product during last six months
100
90
80
70
60
shop
internet
50
catalogue
telephone
40
30
20
10
0
books
mortgage
Doffer et al. (2005)
audio/video
travel
clothes
computers
health insurance
% of households who bought the product during the last six months
Suitablility and use of the Internet
80
70
60
50
used for orientation
40
suitable for transaction
used for transaction
30
20
10
0
books
mortgage
Doffer et al. (2005)
audio/video
travel
clothes
computers
health
insurance
Test the audience
• What is the profile of the Internet buyer
• What is the explanation for this profile
Marketing perspective (1.3)
• Consumer characteristics
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Internet use and age
120
100
total
80
12-15 years
15-25 years
60
25-35 years
35-45 years
45-55 years5
40
55-65 years
65-75 years
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Internet use and income level
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total
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low level
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low middle level
middle level
40
high middle level
30
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Intenet use and educational level
120
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80
total
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lower level
middle level
higher level
40
20
0
Reasons
• The higher educated, the higher the
efficiency (less time, therefore lower
transaction costs)
• The higher the experience (age,
education, gender) the higher the
efficiency (lower prices)
E-Business: the perspectives
Financial
perspective (3)
Technology
perspective
E-Business
(4)
Consumer
perspective
(1)
Industry
perspective (2)
2. The strategy perspective
• 2.1(Structure-Conduct-Performance
model (Porter, 1980, 1985)
• 2.2 Resource Based View (Barney,
1991, 1994)
• 2.3 Multi channel strategy
2.1 The five forces model to define
attractiveness of industry (Porter, 1980)
THREAT OF
ENTRY
THREAT OF
BUYERS
RIVALRY AMONG
EXISTING FIRMS
THREAT OF
SUBSTITUTES
THREAT OF
SUPPLIERS
Test the audience
• Are there industry characteristics
(based on the five forces model) which
explain the use of the Internet as a
channel?
Disappearance of barriers of
entry
•
•
•
•
Economies of scale
Product differentiation
Switching costs
Access to distribution channels
(Shin, 2001; Lucas, 2002)
Existing rivalry
• Winner takes all
• First mover advantage
(Source: Coltman, 2001)
Strategies to realize competitive
advantage (Porter, Treacy and
Wiersema)
• Cost leadership/operational excellence
• Differentiation/product leadership
• Focus/customer intimacy
Test the audience
• Mention examples of companies that
use the Internet to create a competitive
advantage
Results
• Multi-channel strategy as access-based
positioning
• Multi-channel strategy as a defense by
increasing barriers to entry
2.2 Resource based view (Penrose,
1959, Barney, 1991)
• The firm as a bundle of resources
• Competitive advantage when resources
are:
- Valuable
- Rare
- Costly to imitate
- Organized
Results
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•
•
e-Technology as a resource
IT-knowledge as resource
Back-end integration as resource
Direct channel experience (economy of
scope)
• Advantage of scale and scope disappear
• Switching costs by multi channel strategy
• Focus on brand(s)
Resources
• Catalog sellers
• Channel conflicts
• Disruption in retailing (Christensen and Tedlow, 2000)
Reasons for using the internet
Channel
Price
per transaction
Web
$
Call
$ 10
Retail
$ 50
Personal sales
$ 200
Simons et al. (2002)
1
2.3 Strategy perspective
• The multi-channel strategy
Advantages internet
• Costs reduction
• Differentiation
• Defensive
Disadvantages internet
•
•
•
•
Perceived risk (lack of trust)
Delivery and return problems
Impersonal relationship
No psychical inspection
The solution
• BRICKS AND CLICKS
Adding the internet
Channel
used
Original
purchase
Purchases
during 24
month period
Catalog only
76.2 %
68.8 %
Internet only
Store only
Multiple
channels
6.5 %
17.3 %
5.6 %
13.3 %
12.3 %
Dholakia (2005)
Channel used in 24
month period
Catalog only
Internet only
Store only
Multichannel
Catalog
87.1 %
2.9 %
1.1 %
8.8 %
Dholakia et al. (2005)
Customer’s channel
of entry into
database
Internet
4.0 %
50.4%
0.1 %
45.5 %
Store
5.8 %
0.9 %
80.2 %
13.1 %
Results
• Multi-channel enhances loyalty,
although the results are mixed
• Multi-channel customers buy more (?)
Reasons introducing online banking
DRIVERS
INNOVAT ION
CHARACT ERISTICS
SECT OR
CHARACT ERISTICS
Availabilityof technology
Other banks adopting
Sui tabil ityof banking to online
Competi tiveforces
Costs reductions possible
Consumer demand (long
term)
Ability to deal with customers
Government infl uence
INHIBIT ORS
Ability to deal with customers
Lack of innovati ve culture
Rapidity
change
Consumer demand (sh ort
term)
of
Legacy syst ems
Bandwidth
Source: Bradley and
Stewart, 2003
technological
Factors influencing multi-channel strategy
in financial industry
Transactioncost analysis
Marketing considerations
Strategic considerations
Asset specificity
Customer target
heterogeneity
Channel capabilities
Behavioral uncertainty
Environm ental uncertainty
Brand position
Size/dispersion of the
consumer target
Channel conflict
Product sophistication
Purchase importance to
consumers
Source: Coelho and
Easingwood, 2003
Resources and scale
and scope economies
Competitiveintensity
Competitivestrength
Relative bargaining power
Strategic goals
The research shopper
• Attribute driven decision making
• Lack of channel lock-in
• Cross channel synergy
Verhoef et al. (2005)
The research shopper
Transaction offline
Information
Same channel/retailer
69.2 %
Other retailer/other channel 20.4%
Same retailer/other channel 10.4 %
Van Baal and Dach (2005)
Transaction online
73.6 %
24.6 %
1.8%
E-Business: the perspectives
Financial
perspective (3)
Technology
perspective
E-Business
(4)
Consumer
perspective
(1)
Industry
perspective (2)
3: Financial perspective
Electronic Business Models
Content
•
•
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•
Definitions
Old & new business models
Business models
Cases
Assignment
Business model
• What is a business model
Definition (Timmers, 1999)
• An architecture for product, service and
information flows, including a
description of the various business
actors and their roles; and a description
of the potential benefits for the various
business actors; and a description of
the sources of revenue
Business models
• Old business models
• New business models
Old business models (or
strategy)
• Operational excellence/cost leadership
• Product excellence/differentiation
(enhancing the service/product)
• Customer intimacy
New business models
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E-Shop
E-procurement
E-malls
E-auctions
Virtual communities
Collaboration platforms
Third-party marketplaces
Value chain integrators
Value chain service providers
Information brokerage
Trust and other services
Test the audience
• Mention a company per business model
• Restructure the list
Business models and
revenues
•
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•
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•
E-Shop
E-procurement
E-malls
E-auctions
Virtual communities
Collaboration platforms
Third-party marketplaces
Value chain integrators
Value chain service providers
Information brokerage
Trust and other services
Top 10 web shops
Netherlands (turnover, 2007)
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1. Transavia.com, 456 million
2. TUI.nl, 420 million
3. Wehkamp.nl, 270 million
4. Sundiogroup.com, 246 million
5. Airtrade.nl (Airtrade Holding), 240 million
6. Bol.com, 171 million
7. D-reizen.nl, 110 million
8. Albert.nl, 107 million
9. Landal.nl (Landal GreenParks), 100 million
10. Dexcom.nl (o.a. Dixons en Coolblue) , 100 million
Top 10 webshops Netherlands (No. of purchases,
2006, last three purchases)
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Bol.com (14%)
Marktplaats (11%)
Wehkamp (7%)
E-bay (4%)
Neckermann (3%)
ECI (2%)
Ticketservice.nl (1%)
Amazon.com (1%)\
Pabo (1%)
Otto (1 %)
Top 20 by no. of visitors per month (first
half of 2008)
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1
2
3
4
5
6
7
8
9
10
(1)
(8)
(4)
(3)
(67)
(2)
(7)
(6)
(9)
(5)
Google.nl
Hyves.nl
Live.com
Marktplaats.nl
Buienradar.nl
Startpagina.nl
nl.Wikipedia.org
Postbank.nl
DeTelefoongids.nl
Msn.com
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11
12
13
14
15
16
17
18
19
20
(48)
(11)
(16)
(10)
(13)
(14)
(20)
(17)
(12)
(28)
RelatiePlanet.nl
nl.Bol.com
9292ov.nl
Nu.nl
Hotmail.com
Web-log.nl
RTL.nl
Neck.nl
ZylonGames.com
Schoolbank.nl8
Value creation (based on 59 e-businesses;
Amit and Zott, 2001)
Novelty
-new transaction structures
-new transactional content
-new participants
Efficiency
-search costs
-selection range
VALUE
CREATION
Complementaries
-between products and services
-between online and offline assets
-symmetric information
-between technologies
-speed/simplicity
-between activities
-scale economies
Lock in
-switching costs
- positive network externalities
Testing the audience
• Combine the list of business models
with the list of value adding; explain by
examples
What’s really new about the
models
•
•
•
•
iTunes
eBay
Amazon.com
Google
E-Business: the perspectives
Financial
perspective (3)
Technology
perspective
E-Business
(4)
Consumer
perspective
(1)
Industry
perspective (2)
II. Technology perspective: the
Internet as a channel
Test the audience
• Think about the last new technology you
tried (e.g. Mobile telephone, MP3,
Internet). What were the reasons for
trying it.
• What were the reasons for using (or not
using) it after trying.
Relevant theories (1)
Theory of ReasonedAction
(TRA), Fishbein and Ajzen
(1975)
Human behaviour ingeneral
Attitude is used and transferred to
channel choice set; subjective norms
are used to explain the use of a
channel; not specific for ICT enabled
channels
Theory ofPlanned
Behaviour insituations in
Behaviour(TPB), Ajzen and which the actor has no
Madden (1986)
complete control
Not used as P erceived Behavior
Control is for workingsituations
TechnologyAcceptance
Model, Davis (1989)
Based on TRA and TPB to
explain theuse of
information systems
Explanation for the trial of electronic
channels
InnovationDiffusion
Theory (IDT), Rogers
(1962)
Adoption ofinnovation
s in
general
Not used as constructs are not
operationalized and it lacks the ITrelated variables, which have become
important in prediction the use of
ICT enabled channels (P avlou and
Fygenson, 2006)
Task TechnologyFit (TTF),
Goodhue and Thompson
(1995)
Use and success of the use
of information systems in
organizations
Not used as it is a specific model for
explainingIS use, originally in
working situatons
Information Richness, Daft
and Lengel, 1986
Use of differe nt information
channels for differe nt
situations inorganizations
Not used as empirical results are not
favourable (Rice and Shook,1990;
Ngwenyamand Lee, 1997; Carlson
and Davis, 1998;Otondoet al., 2008)
Relevant theories (2)
Expectancy
Disconfir mation Theory
(EDT), Oliver (1980)
The continued use of
product/services by
consumers
Used to explain continuous
use
DeLone & McLean IS
Success Model, DeLone
and McLean, (1992)
Success of an Information
System
Not used as user satisfaction
does not predict system usage
satisfactorily
Social Cognitive Theory
(SCT), Bandura, 1986
Behavior of individuals w hich
is influenced by (among
others)the behavior itself
Not used as the constructs are
included in other theories
Uses & Gratifications
(U&G),
The use of differe nt media is
formed by different needs
Not used as gratifications are
similar to EDT
Switching behaviour,
Keaveney (1995);Roos
(1999)
Switching of consumers
between service providers
Not used as multi-channel
implies the use of several
channels
SERVQUAL,
P arasuraman, Zeithaml
and Berry, 1985
Model for measuringservice
quality
Used in the definitions of endstates
Consid eration set (evoked
set), Howard (1963)
Consumer choice of a brand
Used in explainingdecision
making process and
transferred to channel choice
set
Multi attribute attitude
model (Fishbein, 1963)
Consumer decision making
model
Used in explainingdecision
making process
TAM
• Theory of reasoned action (Fishbein
and Azjen, 1975)
• Theory of planned behavior (Azjen and
Madden, 1986)
• Technology acceptance model (Davis,
1989)
Theory of reasoned action
AT TITUDE
BEHAVIORAL
INTENTION
SUBJECTIVE
NORMS
BEHAVIOR
Theory of planned behavior
AT TITUDE
SUBJECTIVE
NORMS
PERCEIVED
BEHAVIORAL
CONTROL
Notani (1998)
BEHAVIORAL
INTENTION
BEHAVIOR
TAM
Schubert (2002)
Two most important variables
• Perceived usefulness (PU)
• Perceived ease of use (PEOU)
• Cf. Rogers’
- Relative advantage
- Compatibility and complexity
The results from the literature
• Perceived usefulness is the number one
factor
• Is linked with a number of other
constructs (trust, perceived risk, control,
task or decision making stage,
enjoyment)
DeLone & McLean Success
Model (1992)
•
•
•
•
•
•
System quality
Information quality
Information use
User satisfaction
Individual impact
Organization impact
DeLone and McLean 2004
Results
• Satisfaction with content (information)
• Satisfaction with performance
• Satisfaction is seen as an external
variable (Wixam and Todd, 2005)
Innovation of diffusion theory
(Rogers, 1962)
ATTRIBUTES THAT INFLUENCE ADOPTION:
• Relative advantage (economic, status)
• Compatibility (values, beliefs, needs, life
style)
• Complexity
• Triability
• Observability (visible to others)
Innovation possibilities
• Improvement of existing attributes
• New attributes to existing products or
services
• Entirely new product or service
Bagozzi and Lee, 1999
Results
• Later adopters discontinue more than
early adopters (expectation-reality gap)
• Hardly used for e-Commerce research
Expectation-disconfirmation
theory
Expectation
(t1)
Perceived
performance
(t2)
Confirmation
(t2)
Satisfaction
(t2)
Repurchase
intention
(t2)
Results
• Satisfaction (and perceived usefulness)
are strong predictors of the intention to
continuous use
• Desires versus expectations in
explaining satisfaction (desire with trial
and expectation with adoption)
Other aspects
• Habits
• Past behavior/experience
Test the audience
• Form groups of four students
• Prepare a laddering interview
• Subject: use of a channel for financial
services
Building the model: TAM as an explanation
for trial of the new channel
Perceived
Usefulness (PU)
External
Variables
Attitude
toward using (A)
Perceived Ease
of use (PEOU)
(green = TRA; red = TAM)
Behavioral
Intention to Use (BI)
Actual system
use
Building the model: TAM and the channel
choice set
Perceived
Usefulness (PU)
External
Variables
Attitude
toward using (A)
Perceived Ease
of use (PEOU)
(TRA; TAM; Consideration set)
Channel choice set
(BI)
Actual
channel use
The channel choice set: multi-attribute model
Attribute
Risk
Advice
Speed
Ease of use
Total
Evaluation
(weight)
+3
+1
+2
+4
Channel 1
Beliefs
Channel 2
Channel 3
+2
+3
-1
+2
+2
+1
+1
+1
+1
-1
+3
+1
15
13
12
The model
Trial of new
ICT enabled channel
Multi channel use
PU
Context specific
weight factors
Attitude
External
Variables
Channel
choice set
PEOU
(TRA; TAM; Consideration set; multi attribute model; EDT)
Actual
channel use
(Dis)confirmation
of expectations
Defining the attributes based on
research literature
• Problem: research results on different levels
Means-end model
Desired end-states (E)
(describes the goals of the person)
Consequences (C)
(describes the user/service interaction)
Attributes (A)
(describes the service)
Literature research results (1)
T AM LITERAT URE
OT HER IS T HEORIES
Performance (C)
Convenience (E)
SERVICE
QUALITY
LIT ERAT URE
Efficiency (E)
Speed (A)
T rust (C)
Fulfilment (E)
Effectiveness (E)
Easier (C)
Efficac y of information
acquisition (A)
Efficiency (E)
Availability (of the
system) (A)
Privacy (A)
Productivity (C)
Ease of use (C)
Ease of use (C)
Useful
Performance (C)
Infor mation
accuracy (A)
Greater control (C)
Perceived control (C)
Functionality (A)
Quality of decision
making (C)
Better decisions (C)
Convenience (E)
Saves money (C)
T ime saving (C)
Ease of use (C)
Service quality (E)
Perceived risk (C)
OT HER MARKETING
LIT ERAT URE
Assortment (A)
Infor mation available
(A)
24/7 availability (A)
Social interaction (C)
No waiting (C)
No transportation time
(C)
Chance of a better deal
(C)
Perceived risk (E)
Switching costs (A)
No physical inspection
(A)
Delivery time (A)
Literature research results (2)
T AM LITERAT URE
OT HER IS T HEORIES
Perceived usefulnes s
(C)
T ime and place
independent (A)
System quality (A)
Queue avoidance (A)
Infor mation quality
(A)
Subjective norm (C)
Service quality (E)
Enjoyment (E)
T rust (C)
Uncertainty (C)
Perceived risk (E)
Enjoyment (E)
Social Presence (C)
OT HER MARKETING
LIT ERAT URE
Shopping enjoyment
(E)
Product quality(A)
Communication cost
(C)
Convenience
Communication time
(C)
Transaction cost (C)
Transaction time (C)
Security (C)
Delivery cost (C)
Delivery time (C)
Post-sale service (A)
Results regrouped
(E)
Convenience/
efficienc y (T AM)
Uncertainty
reduction
Fulfilment
(outcome)
(EDT)
Social
status
(T RA)
(C )
Performance, Control,
Cheaper, T ime saving,
Waiting, T ransportation
time, Communication time,
Communication costs,
Transaction costs,
Transaction time, Delivery
cost, Delivery time,
Switching costs, Queue
avoidance
Easy, Ease of use,
Functionality, Availability,
Efficac y of information
acquisition, Assortment,
Infor mation available, T ime
and place independent,
T rust,
Security
Change of a
better deal,
Cheaper,
Quality of
decision
making,
Better
decisions,
SubjecSocial
tive norm interaction,
Social
presence
Physical
inspection,
Post sale
service,
Privacy,
Infor mation
accuracy
Infor mation
quality,
system
quality,
Product
quality
(A)
Enjoyment
Next step: laddering
• Laddering technique
(means - consequences - end)
• Soft/hard laddering
• 30 interviews (of which 15 soft
laddering)
• Two methods for “generating” attributes:
advantage and ranking
Preliminary results (based on 15 soft laddering
interviews)
Soft laddering op basis van kanalen op volgorde van
voorkeur zetten en vervolgens verschillen benoemen
tussen kanaal 1 en 2, 2 en 3 etc .
R espondenten :
- 28
- 30
- 36
- 40
- 41
- 44
- 45
- 62
jr student
jr systeembeheerder
jr servicemonteur w egenbouw
jr gehandicaptenverzorgster
jr manager financiele administratie
jr financieel adviseur
jr assistant begeleider gehandicaptenzorg
jr coordinator kinderopvang
1
Geld voor
belangrijke zaken
in het leven
2
2
V
2
Tijd voor
belangrijke zaken
in het leven
14
Meer rente
3
1
Onafhankelijkhei
d
1
Minder zorgen
4
13
Goede
gemoedsrust
4
Voldoening
2
2
1
1
2
Minder
inspanning
1
C
Bespaart tijd
16
Laatste moment
betalen
3
Beter
e
Geen fouten
2
1
behan
deling
1
1
1
6
2
1
2
1
1
1
Veilig
gevoe
C
Minder opletten
2
Sneller kunnen
handelen
8
C ontrole
4
Bande
l
1
Meer zekerheid
4
3
Juiste
keuze
n
verste
4
rken
1
2
1
2
C
1
1
M inde
r
foutge
voelig
1
M inde
r
verwa
rrend
1
1
1
2
3
1
4
3
1
Weten hoe het
gaat
4
1
4
1
2
1
Altijd beschikbaar
4
2
W anneer ik wil
3
2
3
Goed
geinfor
meerd
zijn
4
4
1
Makkeli
jk
commu
niceren
4
4
5
A
Gebruikers vriendelijk
2
Snelheid
3
Overzichtelijk
4
Geen reistijd
4
Plaats
onafhankelijk
4
Tijd onafhankelijk
5
Direct antw oord
Persoonlijk
contact
8
Vertrou
welijk
1
1
Sociaal
1
1
Test the audience
• The results from Finland
Attributes
•
•
•
•
•
•
•
•
(Personal) interaction (10)
Availability: time (9)
Availability: location (7)
Overview (6)
Transportation time (4)
User friendly (3)
Speed (3)
Security (2)
Consequences
•
•
•
•
•
•
Time efficient (20)
Control (6)
Certainty/no mistakes (6)
Preferable outcome (5)
Guarantee privacy (2)
Effort (1)
Desired end states (values)
• Time for important issues in life (17)
• Peace of mind (10)
• Independency (3)