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	<title>People &#124; Design &#124; Technology &#187; Uncategorized</title>
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		<title>The Federal Office of Science and Technology Policy heads off to battle</title>
		<link>http://www.peopledesigntechnology.com/the-federal-office-of-technology-policy-heads-off-to-battle/</link>
		<comments>http://www.peopledesigntechnology.com/the-federal-office-of-technology-policy-heads-off-to-battle/#comments</comments>
		<pubDate>Sun, 13 Dec 2009 19:56:34 +0000</pubDate>
		<dc:creator>Lee Wright</dc:creator>
				<category><![CDATA[Industry evolution]]></category>
		<category><![CDATA[Management challenges]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[government 2.0]]></category>
		<category><![CDATA[Office of Science and Technology Policy]]></category>
		<category><![CDATA[open government]]></category>

		<guid isPermaLink="false">http://www.peopledesigntechnology.com/?p=292</guid>
		<description><![CDATA[Like all large, long-lived organizations that believe they are immune from the brutal force with which technology and innovation reshape the world, the government, and especially the Federal government, struggles to understand whether they should do anything, and if so what, in leveraging the web and sharing information broadly.
(Note: The private sector is replete with [...]]]></description>
			<content:encoded><![CDATA[<p>Like all large, long-lived organizations that believe they are immune from the brutal force with which technology and innovation reshape the world, the government, and especially the Federal government, struggles to understand whether they should do anything, and if so what, in leveraging the web and sharing information broadly.</p>
<p>(Note: The private sector is replete with examples of large, successful, entrenched organizations that <em>thought </em>themselves immune.  <a title="Seeking Alpha blog post, &quot;Nortel: The Beginning of the End?&quot;" href="http://seekingalpha.com/article/177167-nortel-the-beginning-of-the-end" target="_blank">Nortel</a>, <a title="The Boston Globe in 2008 on Polaroid shutting two more plants." href="http://www.boston.com/news/local/massachusetts/articles/2008/02/08/polaroid_shutting_2_mass_facilities_laying_off_150/" target="_blank">Polaroid</a>, <a title="Read the Wikipedia entry on DEC." href="http://en.wikipedia.org/wiki/Digital_Equipment_Corporation" target="_blank">DEC</a>, and Data General (below), are a few of many.)</p>
<p>Nonetheless, there are several initiatives underway, some of which have the potential to make an important difference.  One of them concerns public access to Federally-funded research and began earlier this week with the Federal Office of Science and Technology Policy&#8217;s <a title="Read their blog post announcing the forum." href="http://blog.ostp.gov/2009/12/09/ostp-to-launch-public-forum-on-how-best-to-make-federally-funded-research-available-for-free/" target="_blank">announcement</a> of an online forum on this issue.  The fact that the question is being asked at all, and that the discussion is public and online, is in and of itself progress.</p>
<p>However, the topics to be discussed—implementation (12/10 &#8211; 20), features and technology (12/21 &#8211; 31), and management (1/1 &#8211; 7)—suggest that the operating assumption may be that any new effort will require rules, infrastructure, and headcount.</p>
<p>My <a title="Read the post and comment thread on the Office's blog." href="http://blog.ostp.gov/2009/12/10/policy-forum-on-public-access-to-federally-funded-research-implementation/#comments" target="_blank">comment</a>, as a resource-constrained entrepreneur (and taxed taxpayer), advocates a different approach:</p>
<blockquote><p>While raising this issue is progress, it will only matter if and when something is implemented.  Rather than cautious small measures made after lengthy deliberation and implemented over a period of years, why not take a revolutionary, innovative approach and do something simply, cheaply now.</p>
<p>Starting January 1:</p>
<p>- Grant applications are made public upon submission.<br />
- Progress and results reports are made public upon submission.<br />
- All research that includes Federal funding of any sort must disclose the amount of the funding and the agency giving the grant when the research is published or presented in any medium.</p>
<p>This requires no cost and only a few minutes of time. Use existing documents, which means the cost of creation is zero, and existing publishing infrastructure, such as <a title="View their site." href="http://www.scribd.com" target="_blank">scribd.com</a>, which is free to all and already used widely by the SEC and other Federal organizations.  (My <a title="My document stream on scribd." href="http://www.scribd.com/leewright" target="_blank">document stream</a> on scribd, most of which concerns <a title="The Historic Preservation group on scribd." href="http://www.scribd.com/group/9329-historic-preservation" target="_blank">historic preservation</a>.)</p>
<p>The excellent search (full-text, author, keywords, tags) will take care of discovery.  Free tools enable embedding documents in web pages and blog posts.</p>
<p>Implementation is as simple as requiring all grant requests going forward to include a standard compliance line that places the burden on those submitting grant requests.  And for those individuals, their only cost would be uploading already-created documents, which takes less than 5 min./document.</p>
<p>Finally, if instituting this in a few days seems unfathomable, make it January 1, 2011.  Either way, let&#8217;s make it incredibly simple and straightforward to understand, very cheap/free to implement, and comprehensive in scope.</p></blockquote>
<p>It will be interesting to see if and when progress is made.  Meaningful change is very hard in any  bureaucracy.</p>
<p>There is one area in which states do face a direct and compelling challenge that often motivates them to adopt new technology: Warfare.</p>
<p><em><br />
<object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="480" height="385" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/Dgf52qc2bfc&amp;hl=en_US&amp;fs=1&amp;rel=0&amp;color1=0x2b405b&amp;color2=0x6b8ab6" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="480" height="385" src="http://www.youtube.com/v/Dgf52qc2bfc&amp;hl=en_US&amp;fs=1&amp;rel=0&amp;color1=0x2b405b&amp;color2=0x6b8ab6" allowscriptaccess="always" allowfullscreen="true"></embed></object><br />
</em></p>
<p>The management team at Data General, a company founded in 1968 by former DEC execs, would have been advised to pay closer attention to the message in their own commercial.  The company, which rode the minicomputer boom up and down as technology and competition evolved, was acquired by <a title="Read the Wikipedia entry on EMC." href="http://en.wikipedia.org/wiki/EMC_Corporation" target="_blank">EMC</a> (founded in 1979).  EMC promptly closed down or sold off everything except Data General&#8217;s storage business.</p>
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		<title>&#8220;Sounds difficult.  Let&#8217;s try it.&#8221;</title>
		<link>http://www.peopledesigntechnology.com/sounds-difficult-lets-try-it/</link>
		<comments>http://www.peopledesigntechnology.com/sounds-difficult-lets-try-it/#comments</comments>
		<pubDate>Tue, 08 Dec 2009 07:01:22 +0000</pubDate>
		<dc:creator>Lee Wright</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.peopledesigntechnology.com/?p=267</guid>
		<description><![CDATA[Startup Weekend Boston was a great reminder of  . . .

the ability of interested individuals to self-organize


the way in which small groups of creative individuals can rapidly iterate, going from idea to fleshed-out concept in short order


the passion and commitment that fuels people to work late into Saturday night and then be up and at [...]]]></description>
			<content:encoded><![CDATA[<div id="attachment_273" class="wp-caption alignright" style="width: 235px"><a rel="attachment wp-att-273" href="http://www.peopledesigntechnology.com/sounds-difficult-lets-try-it/boston-startup-weekend-friday-night/"><img class="size-full wp-image-273" title="Boston Startup Weekend gets underway Friday night in Cambridge." src="http://www.peopledesigntechnology.com/wp-content/uploads/2009/12/Boston-Startup-Weekend-Friday-night.jpg" alt="Boston Startup Weekend gets underway Friday night in Cambridge." width="225" height="300" /></a><p class="wp-caption-text">Boston Startup Weekend gets underway Friday night in Cambridge.</p></div>
<p><a title="Read more about the weekend and view pictures and a video on the Startup Weekend site." href="http://boston.startupweekend.org/" target="_blank"><em>Startup Weekend Boston</em></a> was a great reminder of  . . .</p>
<ul>
<li>the ability of interested individuals to self-organize<img src="file:///C:/DOCUME%7E1/Lee/LOCALS%7E1/Temp/moz-screenshot-3.png" alt="" /></li>
</ul>
<ul>
<li>the way in which small groups of creative individuals can rapidly iterate, going from idea to fleshed-out concept in short order</li>
</ul>
<ul>
<li>the passion and commitment that fuels people to work late into Saturday night and then be up and at it at 9 a.m. (or earlier) on Sunday morning</li>
</ul>
<p>Few people better illustrate the opportunity that is <em>Startup Weekend</em> and the drive and creativity of the participants than <a title="Ray's site: thecrandallster.com" href="http://thecrandallster.com/" target="_blank">Ray Crandall</a>, a 21 year old developer who took the train in from the Berkshires for this weekend event.  During his trip,  he designed a personal business card and when he arrived had them printed.   A short while later he was meeting people and handing out his cards as <em>Startup Weekend</em> got underway Friday night in Cambridge.</p>
<p>When I met him that evening he explained that, where he lives, there really isn&#8217;t much interest in doing start-ups, and that he hopes to move to Boston or Cambridge some day to be part of the start-up scene.</p>
<p>Fast forward to Sunday night and the presentations and judging: There he is—with three different groups.  Turns out he pitched in not just in one team but three.</p>
<p>And after the presentations he told me that he was offered a lot of contract work from the leader of one of his teams, and as a result, he <span style="text-decoration: line-through;">was going to quit his job and move to Boston now. </span>is moving to Boston in January and supporting his current employer&#8217;s site remotely as he dives into the local Boston/Cambridge start-up scene.</p>
<p>Perhaps I should have seen it coming.  After all, his business card included this: “Sounds difficult.  Let’s try it.”</p>
<p>Words to live by.</p>
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		<title>The new new thing</title>
		<link>http://www.peopledesigntechnology.com/the-new-new-thing/</link>
		<comments>http://www.peopledesigntechnology.com/the-new-new-thing/#comments</comments>
		<pubDate>Fri, 04 Dec 2009 09:27:35 +0000</pubDate>
		<dc:creator>Lee Wright</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://www.peopledesigntechnology.com/?p=264</guid>
		<description><![CDATA[In the echo chamber that is the web, a reassuring voice is never far away.
]]></description>
			<content:encoded><![CDATA[<p>In the echo chamber that is the web, a reassuring voice is never far away.</p>
]]></content:encoded>
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		<title>Thinking like your customers when designing site navigation</title>
		<link>http://www.peopledesigntechnology.com/designing-site-navigation/</link>
		<comments>http://www.peopledesigntechnology.com/designing-site-navigation/#comments</comments>
		<pubDate>Fri, 08 May 2009 04:22:54 +0000</pubDate>
		<dc:creator>Lee Wright</dc:creator>
				<category><![CDATA[Channels]]></category>
		<category><![CDATA[Consumer behavior]]></category>
		<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Mobile applications]]></category>
		<category><![CDATA[Retail stores]]></category>
		<category><![CDATA[Site design]]></category>
		<category><![CDATA[The IDEA Process]]></category>
		<category><![CDATA[The competition between the Web and bricks and mortar stores]]></category>
		<category><![CDATA[The economy]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Working with industry analysts]]></category>
		<category><![CDATA[iPhone]]></category>
		<category><![CDATA[IDEA]]></category>
		<category><![CDATA[information architecture]]></category>
		<category><![CDATA[navigation]]></category>
		<category><![CDATA[Organize.com]]></category>
		<category><![CDATA[The Container Store]]></category>

		<guid isPermaLink="false">http://www.peopledesigntechnology.com/?p=187</guid>
		<description><![CDATA[Much has been written about designing website navigation, but Organize.com does an especially good job of showing the kind of helpful navigation that results when you think like your customers.
By understanding that there are different types of customers that will be looking for things in different ways, the designers have created navigation that gives buyers [...]]]></description>
			<content:encoded><![CDATA[<div id="attachment_188" class="wp-caption alignright" style="width: 310px"><a title="The home page of Organize.com with selected types of navigation highlighted." rel="attachment wp-att-188" href="http://www.peopledesigntechnology.com/2009/05/08/designing-site-navigation/organize-web-site/"><img class="size-medium wp-image-188" title="The home page of Organize.com, with selected types of navigation highlighted." src="http://www.peopledesigntechnology.com/wp-content/uploads/2009/05/organize-web-site-300x225.jpg" alt="The home page of Organize.com with selected types of navigation highlighted." width="300" height="225" /></a><p class="wp-caption-text">The home page of Organize.com, with selected types of navigation highlighted</p></div>
<p>Much has been written about designing website navigation, but <a title="View their site." href="http://www.organize.com" target="_blank">Organize.com</a> does an especially good job of showing the kind of helpful navigation that results when you think like your customers.</p>
<p>By understanding that there are different types of customers that will be looking for things in different ways, the designers have created navigation that gives buyers many ways to find what they&#8217;re looking for—in spite of the fact that the navigation groupings fly in the face of the some of the traditional ways that people have thought about navigation.</p>
<p>Three very different approaches (also highlighted in yellow in the screenshot):</p>
<ul>
<li><strong>As seen in . . .</strong> — Navigation by magazine cover (with date).  The screenshot shows the expanded view that appears when you click on the link in the main nav.</li>
<li> <strong>Organized by color</strong></li>
<li><strong>Shop by brand</strong></li>
</ul>
<p>In addition, the designers have included a variety of other content categories, including . . .</p>
<ul>
<li><strong>What&#8217;s New</strong>—By date, making it easy for frequent shoppers to zero in on the items recently added to the site.</li>
<li><strong>Video Library</strong>—By content format; a different way to engage buyers and stimulate interest in featured products.</li>
<li><strong>Eco-Friendly</strong>—By item material and construction, though more likely this works as a psychographic profile of a buyer segment.</li>
<li><strong>Clearance</strong>—By price (i.e., lowered); attracting the segment of shoppers interested in &#8220;a deal.&#8221;</li>
<li><strong>Mrs. Organized</strong>—By application, with a blog written by in-house and guest experts.</li>
</ul>
<p>Along with <strong>As seen in . . . </strong>, these are all in the same navigation area, the brown tabs shown in the screenshot.  What&#8217;s the common element that would cause one to group these together?  None whatsoever, other than that these work in helping the many different types of buyers.</p>
<p>Other main navigation items include . . .</p>
<ul>
<li><strong>Gifts and Occasions</strong></li>
<li><strong>She</strong>—A category that includes <strong>The Career Girl</strong>, <strong>The Hostess</strong>, <strong>The Mommy</strong>, and others</li>
<li><strong>College</strong></li>
<li><strong>Kitchen</strong>, <strong>Closet</strong>, <strong>Bath</strong>, <strong>Storage</strong>, <strong>Shelving</strong>, and other locations and applications</li>
</ul>
<p>As above, there is no logical reason that these would be grouped together.</p>
<p>In other words, if a person were to go through the exercise of thinking, &#8220;What goes together?&#8221; you would never end up with these navigation groupings.  On the other hand, if you were to think, &#8220;Why might someone be coming to the site?&#8221; and &#8220;What are they trying to accomplish?&#8221; and &#8220;What factors are most important to them?&#8221; one might easily end up with top level navigation that includes <strong>As seen in . . . </strong>, <strong>Kitchen</strong>, and <strong>Eco-Friendly</strong> and <strong>Shop by Color</strong>.</p>
<p>It all comes down to thinking like a customer rather than as an information architect, or at least the way many information architects have approached this problem.</p>
<p>And what brought me to Organize.com?  Trying to match a tall white plastic bin purchased several years ago at The Container Store, earlier today I stopped into one of their stores and walked down every aisle looking for the item.  I didn&#8217;t see it, and asked a clerk.  She summoned other clerks, I described to them the size, shape, style, material, and color of the item—I hadn&#8217;t brought it with me—and they said that they didn&#8217;t think they carried it anymore.</p>
<p>At home, I looked at the bottom of the bin and saw the name of the manufacturer molded into the bottom.  A quick Google search brought me to Organize.com, where I clicked on <strong>Shop by Brand</strong>.  I selected the manufacturer and clicked on &#8220;View all&#8221; when I got to the manufacturer&#8217;s page, and then quickly scrolled through what would have otherwise been 46 pages of items and found that they do make the <a title="View the product detail page on their site." href="http://www.organize.com/modx3storbox1.html" target="_blank">same bin</a>, though in a slightly different shade of white.  Total elapsed time from the Google search?  About three minutes, thanks to the site&#8217;s helpful navigation.</p>
<p>(The Container Store&#8217;s <a title="View their site." href="http://containerstore.com/" target="_blank">site</a> doesn&#8217;t include the shopping brand as a navigation choice; entering the name of the manufacturer in the search box on the site returns no results.)</p>
<p><strong><br />
</strong></p>
<h4><strong>A note about the IDEA Process</strong></h4>
<p><strong></strong></p>
<p>In work for Nokia, GameStop, and other clients we developed the IDEA process: Iterative Development, Evaluation, and Analysis, which is a process for creating site blueprints (including navigation and information architecture) based on in-depth sessions with users interacting with current and development sites to complete tasks.</p>
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		<title>Misusing market research in assessing the demand for new services</title>
		<link>http://www.peopledesigntechnology.com/misusing-market-research-in-assessing-the-demand-for-new-services/</link>
		<comments>http://www.peopledesigntechnology.com/misusing-market-research-in-assessing-the-demand-for-new-services/#comments</comments>
		<pubDate>Mon, 23 Mar 2009 16:41:26 +0000</pubDate>
		<dc:creator>Lee Wright</dc:creator>
				<category><![CDATA[Consumer behavior]]></category>
		<category><![CDATA[Market research]]></category>
		<category><![CDATA[Mobile applications]]></category>
		<category><![CDATA[New product/service introduction]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Working with industry analysts]]></category>
		<category><![CDATA[iPhone]]></category>
		<category><![CDATA[Accenture]]></category>
		<category><![CDATA[Fierce Mobile Content]]></category>
		<category><![CDATA[mobile TV]]></category>
		<category><![CDATA[mobile video]]></category>

		<guid isPermaLink="false">http://www.peopledesigntechnology.com/?p=48</guid>
		<description><![CDATA[In response to an article reporting the findings of a recent global study by Accenture in which it was claimed that consumer market research showed &#8220;. . . 54 percent indicating their don&#8217;t want or need mobile video services:&#8221;

&#8220;This is a great example of research that is not helpful in making investment and partnering decisions, [...]]]></description>
			<content:encoded><![CDATA[<div class="content">In response to an <a title="Read the article." href="http://www.fiercemobilecontent.com/story/fifty-four-percent-say-they-dont-want-or-need-mobile-video/2009-03-23" target="_blank">article</a> reporting the findings of a recent global study by Accenture in which it was claimed that consumer market research showed &#8220;. . . 54 percent indicating their don&#8217;t want or need mobile video services:&#8221;</div>
<div class="content">
<p><p style="padding-left: 30px;">&#8220;This is a great example of research that is not helpful in making investment and partnering decisions, and this outcome could have been predicted before the study went to the field.</p>
<p style="padding-left: 30px;">&#8220;Instead of asking consumers the questions in the study, try this simple thought experiment:</p>
<blockquote>
<ul>
<li>What percentage of the population watches one or more TV shows regularly?</li>
</ul>
</blockquote>
<blockquote>
<ul>
<li>Are there live events that caused people to seek out live TV wherever they were?  It&#8217;s easy to think of several, including the OJ chase, 9-11, the flight that landed in the Hudson, many major sports championships, and the inauguration.</li>
</ul>
</blockquote>
<p style="padding-left: 30px;">&#8220;The question isn&#8217;t, &#8216;Do you want mobile video?&#8217;  Instead, it&#8217;s, &#8216;If you heard that [name of event] was being broadcast <em>right now</em>, would you be interested in seeing a live broadcast?  [If yes,] Where would you go to watch it?  If you also had the option of watching it right here right now using a high resolution color screen handset that you already owned with a plan that you already had, how likely would you be to pull it out of your pocket or purse and watch it now?&#8217;</p>
<p style="padding-left: 30px;">&#8220;The challenge for the industry isn&#8217;t whether or not people want it or will use it once it&#8217;s mainstream, but rather developing the enabling infrastructure and identifying the business model that supports the reliable, affordable, easy-to-use delivery of live video.&#8221;</p>
<p>A later comment from another reader pointed out that the <a title="Read this article on their site." href="http://www.fiercemobilecontent.com/story/march-madness-demand-traffic-56-percent/2009-03-23" target="_blank">article</a> immediately following this one proved the point that compelling live video content will pull people to mobile video, reporting this finding:</p>
<p style="padding-left: 30px;">&#8220;More than 2.7 million unique visitors checked out digital coverage of Thursday&#8217;s opening round of the 2009 NCAA Division I Men&#8217;s Basketball Championship according to CBSSports.com, which adds that traffic increased 56 percent over last year&#8217;s first-day total. Perhaps even more notable, CBSSports.com reports that its new NCAA March Madness on Demand <a href="http://www.fiercemobilecontent.com/story/march-madness-live-video-comes-iphone/2009-03-12?utm_medium=rss&amp;utm_source=rss&amp;cmp-id=OTC-RSS-FMC0">iPhone application</a>, which provides sports live streaming tournament video to iPhone and iPod touch devices, topped the paid application rankings in Apple&#8217;s App Store.&#8221;</p>
</div>
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		<title>Buying in a post-store world</title>
		<link>http://www.peopledesigntechnology.com/buying-in-a-post-store-world/</link>
		<comments>http://www.peopledesigntechnology.com/buying-in-a-post-store-world/#comments</comments>
		<pubDate>Fri, 01 Oct 2004 13:14:55 +0000</pubDate>
		<dc:creator>Lee Wright</dc:creator>
				<category><![CDATA[Channels]]></category>
		<category><![CDATA[Consumer behavior]]></category>
		<category><![CDATA[Mobile applications]]></category>
		<category><![CDATA[Retail stores]]></category>
		<category><![CDATA[The competition between the Web and bricks and mortar stores]]></category>
		<category><![CDATA[The economy]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Amazon]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[shopping]]></category>

		<guid isPermaLink="false">http://www.peopledesigntechnology.com/?p=64</guid>
		<description><![CDATA[The web is the store—marketplace, really—and the search engine is the interface, right?
It wasn&#8217;t always this way, and it&#8217;s instructive to consider the underlying forces that drove this and the role of some of the Web&#8217;s largest companies in this evolution.
Buyer behavior today
Here&#8217;s the way in which I buy most things, which I imagine is [...]]]></description>
			<content:encoded><![CDATA[<p dir="ltr" align="left">The web is the store—marketplace, really—and the search engine is the interface, right?</p>
<p>It wasn&#8217;t always this way, and it&#8217;s instructive to consider the underlying forces that drove this and the role of some of the Web&#8217;s largest companies in this evolution.</p>
<h3>Buyer behavior today</h3>
<p>Here&#8217;s the way in which I buy most things, which I imagine is similar to the approach of many others who buy a lot of different things online:</p>
<p><em>Determine the specific product I want</em>—Read various review sites and read newsgroup posts, both through Google (google.com and groups.google.com).  To narrow this down, check Amazon and read the reviews there.  One of the things that Amazon has added that has been especially helpful is the information that notes, &#8220;People who shopped for this item also bought/viewed . . .&#8221;  This may add a product or two to my list to check out.</p>
<p>Ideally, find a unique product name or model number.</p>
<p><em>Find the low-price sellers</em>—Enter this in to Froogle.  If I&#8217;ve already got a model number, such as for the Lutron dimming switches I recently purchased from &#8220;Beverly Hills Electronic,&#8221; this is where I start; no product shopping required.  (I use the Firefox browser with Google search built into the toolbar, which includes buttons for site search, search within discussion groups, and a Froogle search, which means that product search is available from every page.)</p>
<p>Rank the results from low to high, which is done with one click, and focus on those at the top of the list (i.e., those that are the cheapest).  Depending on the item, check eBay.</p>
<p><em>Assess the trade-offs for low-price seller</em>—Look through the first few low price results for a retailer one recognizes. Check the &#8220;About us&#8221; and other information at the site to assess the degree of confidence in the merchant.  This includes their stated return policy and information from independent store rating services (if available).  Weigh whether the price difference between the cheapest and the next cheapest and is worth the difference in perceived risk? For example, is it worth saving $17 on a $300 item if that means I&#8217;d be buying it from a company that I&#8217;ve never heard of and who claims they have it in stock, versus from Outpost (a division of Fry&#8217;s) or buy.com or Amazon?</p>
<p>Because the Web enables anyone to put up a store front, the price competition is brutal, and since with many products the only thing you care about is price—you&#8217;ve already figured out what you want and there isn&#8217;t any after-sale service to consider—using a convenient shopping search engine such as Froogle increases the likelihood that you&#8217;re getting the best price possible.</p>
<p>It&#8217;s exactly this behavior that caused Yahoo to launch Yahoo stores and later drove Amazon to create their zShop program and their &#8220;sell yours&#8221; programs, and still later to purchase a small search technology company and invest in the additional development necessary to launch A9.</p>
<h3>The new battleground</h3>
<p>The battle now shifts to getting people to use &#8220;your&#8221; search engine.  Here are four ways in which this battle is being waged:</p>
<ul>
<li><strong>Convenience</strong>: Building search into the toolbar.</li>
<li><strong>Ubiquity</strong>: Building it into the browser (MS).</li>
<li><strong>Pervasiveness</strong>: One form of this, though not specifically search, is Google&#8217;s gmail, which incorporates their Adwords ads, which are triggered by the context of the e-mail messages.  And we&#8217;ve all read about the work being done on hard drive search.  We&#8217;ll see something from Google soon that provides hard drive search and includes Adwords Ads in the results.</li>
<li><strong>Money</strong>: Amazon has created their &#8220;splitting the pi&#8221; financial inducement, which I think creates a perverse incentive for Amazon buyers to search for products outside of Amazon.</li>
</ul>
<h3><strong>Special cases </strong></h3>
<ul>
<li><strong>Travel</strong>—The travel aggregator sites have done an excellent job of making it much easier to find good prices on all aspects of travel.  On top of these have come new companies whose products search not only those sites but also the sites of some of the hoteliers that advertise that they have the guaranteed lowest rates and the specialty travel sites that offer last minute fairs, for example.  (Some of the aggregators have purchased or have deals with some of these, of course.)</li>
</ul>
<ul>
<li><strong>Repeated buying in one product category</strong>—In the case of someone who is buying the same type of thing over and over again, such as books, a specialty book store site or a few might be the only place one goes.</li>
</ul>
<ul>
<li><strong> eBay</strong></li>
</ul>
<p><strong></strong></p>
<p style="padding-left: 30px;"><strong>Increasing returns to scale</strong>—One of the cornerstones of eBay&#8217;s success is the fact that they benefit from increasing returns to scale, which is essentially increasing returns to success.  In other words, the extent to which eBay is the largest auction site makes it more likely that someone listing or someone looking to buy <em>via </em>an auction will go there first, which puts them even further ahead of their next largest competitor.  As this process continues eBay becomes even larger.</p>
<p style="padding-left: 30px;"><strong>eBay recognized the opportunity with merchant stores</strong>—The result of the four factors above is that you&#8217;ve got to search eBay separately. EBay recognized the opportunity that this created. Specifically, that enabling merchants to build out their own &#8220;stores&#8221; within eBay created an opportunity for eBay to make even more money because stores would be exposed to traffic that might not find them through searches on the general Web or shopping searches.</p>
<p style="padding-left: 30px;">In the US, the game is over and one doesn&#8217;t even remember that there once were other auction sites of any size. This isn&#8217;t the case in many other countries, and eBay has had to acquire the dominant players in those countries for this very reason that it&#8217;s extremely difficult to catch up if you&#8217;re small and your competitor is big. In other markets where the two (typically) competitors are close to being the same size, they&#8217;re locked in intense competition to emerge as the dominant marketplace in that country, and once one pulls ahead by any significant degree, the dynamics noted above will really kick in. In the case of other merchants, while there may be increasing returns to scale, there is not this powerful effect which drives a huge wedge between the dominant player and the next largest.<strong></strong></p>
<p style="padding-left: 30px;"><strong>Collectibles and things not found in stores</strong>—If you&#8217;re trolling for one of the early GI Joes, a particular tea cup from 100 years ago, or will settle for a used monitor, where else would you go other than to a place where you can buy it directly (and presumably most cheaply) from the person selling it. Who needs a &#8220;dealer&#8221; when you can buy direct?</p>
<p style="padding-left: 30px;"><strong>eBay results often don&#8217;t show up</strong>—I&#8217;ve found that eBay listings don&#8217;t show up in Google search results (other than the paid ads along the right side, which are humorously off-target sometimes. Here&#8217;s one example:</p>
<blockquote style="padding-left: 90px;"><p><a id="aw2" title="http://www.google.com/url?q=http://www.qksrv.net/click-1376502-5463217%3Floc%3Dhttp%253A//search.ebay.com/search/search.dll%253Fcgiurl%253Dhttp%253A//cgi.ebay.com/ws/%2526krd%253D1%2526MfcISAPICommand%253DGetResult%2526ht%253D1%2526SortProperty%253DMetaEndSort%2526sonewuser%253D1%2526query%253Darc%2Bde%2Btriumph%26sid%3DpwtPz33229&amp;sa=l&amp;ai=AXZwi7pjQBJ460spxLGQy_D8tC0ekbagweOfDqyv4TdgAQ6EAQb4ABIgAYaBAAAAAAEAA&amp;num=2" onmouseover="return ss('go to eBay.com')" onmouseout="cs()" href="http://www.google.com/url?q=http://www.qksrv.net/click-1376502-5463217%3Floc%3Dhttp%253A//search.ebay.com/search/search.dll%253Fcgiurl%253Dhttp%253A//cgi.ebay.com/ws/%2526krd%253D1%2526MfcISAPICommand%253DGetResult%2526ht%253D1%2526SortProperty%253DMetaEndSort%2526sonewuser%253D1%2526query%253Darc%2Bde%2Btriumph%26sid%3DpwtPz33229&amp;sa=l&amp;ai=AXZwi7pjQBJ460spxLGQy_D8tC0ekbagweOfDqyv4TdgAQ6EAQb4ABIgAYaBAAAAAAEAA&amp;num=2">Arc De Triumph</a><br />
Aff. Cheap deals on<br />
everything Arc De Triumph.<br />
eBay.com<strong></strong></p></blockquote>
<p style="padding-left: 30px;"><strong>Those that do are sometimes out-of-date</strong>—Sometimes the results that do show up are found on pages that are created through the use of eBay&#8217;s APIs, which enable others to build applications that pull information from eBay. By formatting this information on a page that has a high rank in search engine results, the entrepreneur is hoping that at a least a few people click through, bid, and eventually buy something on eBay, which generates a commission for him. The developer programs from eBay and from Amazon have resulted in a lot of these, and since in the Google search results they don&#8217;t reveal that these pages are simply a repackaging of sometimes expired our or out of date products, it frustrates users who are using something like Google to look broadly for product and price information. Both Amazon and eBay claim that their developer programs have been very successful, but it&#8217;s clear that one of the unintended results is negative for buyers who use a search engine as a shopping interface.</p>
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