GLOBAL
EDITION
E-commerce 2021–2022
business. technology. society.
SEVENTEENTH EDITION
Kenneth C. Laudon • Carol Guercio Traver
E-commerce
business. technology. society.
GLOBAL EDITION
S E V E N T E E N T H
E D I T I O N
Kenneth C. Laudon
Carol Guercio Traver
New York University
Azimuth Interactive, Inc.
Developing a Mobile Website and Building Mobile Applications
CROSS-PLATFORM MOBILE APP DEVELOPMENT TOOLS
In addition to creating native apps from scratch using a programming language such as
Objective C or Java (as described in Chapter 3), there are hundreds of low-cost or open
source app development toolkits that make creating cross-platform mobile apps relatively
easy and inexpensive without having to use a device-specific programming language.
For instance, Flutter is an open-source toolkit developed by Google that can be used to
create native apps for Android and iOS devices (as well as applications for Windows, Mac,
and the Web). React Native is another open-source tool that uses React and JavaScript to
build native iOS, Android, Windows, and Mac apps. Appery.io is a cloud-based platform that
enables you to use a drag-and-drop visual builder tool to create HTML5 apps using jQuery
Mobile. Appery.io supports Android and iOS applications. Codiqa is a similar tool that is even
easier to use. It also provides a drag-and-drop interface and builds an app with 100% HTML5
components, without the need to do any coding. For those who are even less technical, Swiftic
is a free mobile app builder that allows you to include a variety of functionality, including
e-commerce, notifications, and a social feed. On the more technical side, PhoneGap is
a mobile development framework that uses software called Apache Cordova to enable
building hybrid mobile applications using HTML, CSS, and JavaScript. Axway Appcelerator
is a similar, less technical tool for creating and managing hybrid mobile apps.
MOBILE PRESENCE: PERFORMANCE AND COST CONSIDERATIONS
If you don’t have an existing website, the most efficient process may be to use a mobile
first design philosophy and design a mobile site first. Alternatively, you may choose to
build a traditional website using RWD or AWD techniques. If you already have a website
that you don’t want to totally redevelop, the least expensive path is to resize it to create a smartphone-friendly mobile site. Doing so typically will not require a complete
redesign effort. You will need to reduce the graphics and text, simplify the navigation,
and focus on improving the customer experience so you do not confuse people. Because
your customers might still need to use a relatively slow cell connection at times, you will
need to lighten up the amount of data you send. Also, given the difficulty of customer
data entry on a mobile device, you cannot expect customers to happily enter long strings
of numbers or text characters. For marketing clarity, make sure the brand images used
on the mobile website match those on the traditional website. The cost of developing
a mobile website can range widely, from upwards of $1 million for a custom-designed
site for a large global enterprise to well under $1,000 for a small business that chooses a
company such as Wix or MoFuse that offers a template or mobile website creator.
Building a mobile web app that uses the mobile device’s browser requires more
effort and cost than developing a mobile website and suffers from the same limitations
as any browser-based application. However, it does offer some advantages such as better graphics, more interactivity, and faster local calculations as, for instance, in mobile
geo-location applications like Foursquare that require local calculations of position and
then communication with the site’s web server.
The most expensive path to a mobile presence is to build a native app. Native apps
can require more programming expertise, although there are many new development
packages that can build mobile native apps with minimal programming expertise.
In addition, virtually none of the elements used in your existing website can be reused,
273
274
CHAPTER 4
Building an E-commerce Presence
and you will need to redesign the entire logic of the interface and carefully think out
the customer experience. For instance, there is a fairly stable HTML traditional website
interface with buttons, graphics, videos, and ads that has developed over the last decade.
This is not true for apps. There is no set of standards or expectations even on the part of
users—every app looks different from every other app. This means the user confronts
large variations in app design, so your interface must be quite simple and obvious. Many
of the bells and whistles found on the large desktop website screen cannot be used in
mobile apps. You’ll need even greater simplification and focus. These weaknesses are
also native apps’ greatest strength: you have the opportunity to create a really stunning, unique customer experience where users can interact with your brand. If you want
an intense branding experience with your customers, where interaction between your
brand and customers is effortless and efficient, then native apps are the best choice. The
Insight on Technology case, Klook Sets Its Sights on New Vistas, takes a look at a travel tech
company’s development of a mobile-first strategy and the steps it has taken to grow its
e-commerce presence.
4.7
CAREERS IN E-COMMERCE
The material in this chapter provides foundational information for a number of different
careers. Job titles include web developer/programmer (including front end developer/front
end engineer; full stack developer; and titles that focus on a particular technology such
as JavaScript developer/engineer or similar), web designer (including user interface (UI)
designer, user experience (UX) designer, and interaction designer), and webmasters. Many
of these positions, although labeled as “web,” involve working with mobile applications as
well. In this section, we’ll examine a job posting by a company looking for a UX designer.
THE COMPANY
The company is a restaurant chain known for its Italian dishes, such as pizza, pasta,
heroes, and desserts. The company has over 11,000 locations in the United States and
worldwide. Much of its growth in the past five years has resulted from global expansion
including in China, Japan, India, and the Middle East. The company uses three different
formats: family-style locations, storefront delivery and carryout, and locations that do
both sit-down dinners and carryout. The company has developed a robust web presence
that enables customers to order meals either on the company website or via an app. The
company’s strategy is to leverage its investment in physical locations by expanding its
online ordering, pick-up, and delivery business. To carry out this strategy, the company
is aiming for continuous improvement of the customer experience on the firm’s websites, mobile apps, and social network sites.
POSITION: UX DESIGNER
You will be working with the UX Group, which reports to the Chief E-commerce Officer.
The UX Group creates intuitive and engaging online experiences for the company’s
customers throughout its digital and mobile ecosystem, including social media. You
will work on developing business processes, online roadmaps, and analytic models of
consumer behavior. You will be working with product managers, online developers, and
analysts to create engaging digital experiences for customers. Responsibilities include:
Careers in E-commerce
275
INSIGHT ON TECHNOLOGY
KLOOK SETS ITS SIGHTS ON NEW VISTAS
Klook Travel Technology Ltd. is a
travel tech company founded in
2014 and based in Hong Kong.
The company’s main audience is in
Southeast Asia, where the online booking markets largely bypassed the desktop
computer and went straight to mobile. Klook has
a mobile-first strategy that is based on a localized approach adapted to the different marketplaces it operates in.
Klook, which stands for “keep looking,” provides a tourism app with a simple value proposition: it does away with the inconveniences of
pre-trip and in-destination planning. It provides
an online concierge service that aims to make
the travel experience as enjoyable and hasslefree for its user base as possible. There is also
a clear focus on affordability and competitive
pricing. A direct link to in-destination attractions
and services means that prices are considerably
lower, as no commission is added to the sale
cost.
Initially focused on its home market of
Southeast Asia, Klook targeted customers
looking for adventure and things to do, but it
has grown rapidly and now offers numerous
destinations to a sizable sector of international
tourists. Starting the business involved a fundamental challenge: Klook needed merchants
providing attractive offers to appeal to customers, but it had to convince merchants that
the user numbers would be worth it too. The
company managed to assemble a wide array of
suppliers through old-fashioned cold-calling,
and over time, as brand awareness grew, it was
able to build on its initial focus on local partnering to grow strategic partnerships with many
big names in the tourism sector among transportation companies, tourist attractions, and
hoteliers. Its offerings have steadily increased
to include over 100,000 things to do, from foodthemed excursions to adventure expeditions, to
sightseeing tours.
To grow its customer base, Klook’s marketing teams provide feedback on regional and local
trends so that offers can be based on themes
such as the season or a local festival. Klook
provides blogposts on seasonal offerings, informative updates, and recommendations for its
users, and a section on its website is dedicated
to affiliates and influencers.
To scale up and digitize the available content and develop the app and associated systems for increased traffic, Klook has raised $720
million from investors such as Sequoia Capital,
Softbank Vision Fund, TCV, and Goldman Sachs
so far, including a $200 million round that closed
in January 2021, which is particularly noteworthy
given the impact that the Covid-19 pandemic
has had on the travel industry. Klook has now
expanded into Europe, North America, and
Australia. Its ever-increasing range of partnerships means that Klook can offer its customers
the best available prices while focusing on the
best-possible experience for its users, further
securing its long-term market position.
The Klook app has an intuitive layout that
is ordered by destination and things to do. The
user can add filters for dates and availability, and
the price offers combine attractions, activities,
food tours, and sightseeing, with transportation
links also included. The design won Best of Year
awards from the Google Play and Apple app
stores in 2015, 2017, and 2018.
In what was a fragmented marketplace,
Klook has been able to successfully leverage
available technology to provide digital solutions
and make connections between the user and
the provider by working directly with attraction
owners and managers. The Klook Partner App
(continued)
276
CHAPTER 4
Building an E-commerce Presence
allows merchants to easily manage bookings, enabling local merchants and smaller
attractions to attract tourists from a wider
customer base. Klook’s custom-built enterprise
software allows even small-scale merchants to
accept digital bookings and payments, and the
data it captures allows its partners to get a good
sense of the different nationalities’ preferences.
Instant confirmation for same-day bookings
is part of Klook’s value proposition. Last-minute
bookings require instant confirmation and ticket
access, so the company uses QR code technology that enables tickets to be delivered to a
user’s device as e-vouchers, and these can be
easily accessed even offline.
One of the challenges of the in-destination
travel market has been connectivity integration,
and Klook has also taken on the task of using
its internally developed technology to digitize
in-destination supply. Operational procedures—
from the customer’s initial browsing, to booking
their choice, to booking confirmation and ticketing—have to be seamless; in a socially connected world, customer reviews quickly highlight
any issues to a global audience. Klook uses data
analytics to improve the overall experience for
all stakeholders, and the millions of monthly visitors on the platform across its website, mobile
web, and app now give the company access to
enormous data sets. The insights gleaned from
the data allow for more personalized targeted
recommendations based on search and booking behavior.
For the longer term, the company is investing in artificial intelligence and machine-learning
systems, and it has plans for connectivity to AI
voice-powered assistants to cater to an audience
that is increasingly using Amazon’s Alexa, Google
Assistant, and Apple’s Siri. Klook will have to
improve search and user recommendations to
fit both voice searching and image recognition
technology.
With 29 offices worldwide, Klook has ambitious plans for global expansion, especially in
the European markets. Klook has also launched
China Rail on its platform, leveraging the experience it has gained while working with the Hong
Kong airport express and railways in Southeast
Asia. Although the Covid-19 pandemic, travel
bans, and cancellation of global events have
somewhat stymied Klook’s ambitious expansion
plans, Klook has pivoted to offering home-based
activities that include DIY craft and cooking kits
as well as free virtual tours, with an aim to capture local demand and capitalize on the surge
in staycations until travel restrictions are eased.
SOURCES: “Software-backed Travel Platform Klook Raises $200M amid Covid-19,” by Rita Liao, Techcrunch.com, January 25, 2021; “COVID-19
Pivot: Travel Unicorn Klook Sees Jump in Staycations,” by Rita Liao, Techcrunch.com, July 10, 2020; Travel Startup Klook Plots Growth by Personalizing Trips,”
by Michelle Chan, Asia.nikkei.com, January 18, 2020; “Klook Celebrates 5th Anniversary and Will Surpass 60 Million Trip Bookings in 2019, Outlines Global
Expansion Plan,” Klook.com, September 12, 2019; “How This Hong Kong–based Travel Unicorn Is Planning to Make Its Mark in the Asian Market,” by Nidhi
Singh, Entrepreneur.com, April 10, 2019; “Hong Kong Travel Startup Klook to Focus on Expansion, COO Says,” Bloomberg Daybreak: Asia, Bloomberg.com,
April 10, 2019; “Klook Receives $225 Million SoftBank Investment in Nod to Tours and Activities,” by Raini Hamdi, Skift.com, April 09, 2019; “Klook Completes
US$425M Series D Funding with New Capital Raise Led by Softbank Vision Fund,” by Chin Yung Lu, April 9, 2019, Startmeup.hk; “The Insider Secrets & Story
of Hong Kong Traveltech Startup Klook Discovered,” by Heather Lo, Medium.com, December 4, 2017; “Klook Banking on AI to Beef Up Travel Services,” by
Trevor Tan, Straitstimes. com, November 1, 2017.
Case contributed by June Clarke, Sheffield Business School
Careers in E-commerce
• Contributing to the development of an entrepreneurial, cross-disciplinary UX team
that embraces creativity, data, and a constant focus on the customer.
• Implementing the company’s UX approach and best practices throughout the firm.
• Creating and directing the creation of customer journey maps, navigation flows,
prototypes, wireframes, and interactions that are customer-centric.
• Working with data analysts to continuously improve the user experience by testing,
prototyping, and analyzing customer behavior and business results.
• Contributing to UX and design thought leadership by working with product, engineering, and marketing teams to develop new products and services throughout the
digital ecosystem.
QUALIFICATIONS/SKILLS
• Bachelor’s degree in computer science, information science, management information systems, humanities, and/or equivalent experience
• Coursework or experience in e-commerce, human-computer interaction, web design,
front-end mobile web development, UX design, statistics and data analysis, and/or
marketing
• Knowledge of UX tools such as Axure, Balsamiq, Sketch, and/or Adobe CC
• Knowledge of current user experience and design methodologies
• Demonstrated ability to identify solutions to business problems using a design
perspective
• A desire to work in a multitasking, fast-paced environment and to collaborate as a
member of the e-commerce digital experience team
• Ability to look for solutions and information in creative ways and convey complicated
results and insights to people of varying backgrounds
• Intensely curious with an intrinsic love for excellent user experience
• Strong written and spoken communication skills
PREPARING FOR THE INTERVIEW
As noted in the list of qualifications/skills, a UX designer position requires a number
of technical skills that you will need to have acquired via various coursework or from
practical experience. You should be prepared to demonstrate that you have these basic
technical skills. In addition, you are likely to be asked some questions that require you
to show that you have a broader-based understanding of the process of establishing an
e-commerce presence via the development of websites, mobile sites, and mobile applications. To do so, review the material in Sections 4.2, 4.3, and 4.4, which will allow you to
show that you understand how the overall pieces of the effort fit together. Also review
Section 4.6, which specifically focuses on some basics of mobile website and mobile
application development. You can use Section 4.5 to review some basic website design
features that both annoy (Table 4.10) and are appreciated by (Table 4.11) users, as well
to refresh your memory about various software tools for interactivity, active content,
and personalization. Finally, reread the Insight on Society case, Designing for Accessibility.
277
278
CHAPTER 4
Building an E-commerce Presence
Showing that you understand the importance of accessible design will be one way to help
you distinguish yourself!
POSSIBLE FIRST INTERVIEW QUESTIONS
1. What is your favorite e-commerce website or mobile app, in terms of user
experience, and why do you like it? What do you think are the characteristics of
a really effective e-commerce experience?
Apple is frequently viewed as a paragon of user experience. Amazon also obviously
comes to mind. Why is this so? “User friendliness” is not a specific-enough answer. Focus
instead on specific qualities such as ease of search (finding what you want quickly),
coherent roadmap or path through the content to the purchase, fast payment, and speed
and responsiveness of the screens. And of course, “design” is important. Design includes
the use of images, colors, font, and icons.
2. We’re in the food service business, delivering our products to consumers no
matter where or when they want to consume our food. What would your vision
be for an effective e-commerce experience for our customers?
You can expand on your previous answer. Your vision might be one where consumers can
go online to the company’s website or apps and find exactly what they want (everything
from a seat at a table to takeout and delivery) and do so in an acceptable time frame and
price, using a visually pleasing and effective e-commerce presence.
3. How can an e-commerce presence help meet our customers’ needs?
You can suggest that the traditional ways of buying a pizza (showing up at the location
or ordering by telephone) can lead to customer annoyance: long waits at the physical
location, long order and/or delivery time, and dropped orders. Having an effective
digital presence is likely to reduce order time, increase accuracy, and provide a more
predictable outcome. For instance, digital customers can be given a pick-up time at the
store or arrange a definite delivery time. You might suggest an Uber-like app for mobile
users.
4. How can we personalize our e-commerce presence for each consumer?
You can suggest that prior purchase records could be kept to identify customer
preferences. Returning customers can be asked if they want to reorder what they ordered
during their previous visit. The digital platform needs to be able to recognize returning
customers and suggest menu items they are likely to want, rather than have them follow
a long roadmap through the site.
5. Have you had any experience in designing a website or mobile app? What did
you learn from that experience?
If you’ve had some experience designing a website, talk about the design issues you dealt
with, and how you solved them. If you have no experience, talk about your experience