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people decide to look at them for a particular reason, which does not happen as often as people had at rst assumed it would. What do people do on the Web Some do personal (or professional) research. The Web is the greatest research tool ever invented. You can nd information on just about anything. Some visit chat rooms. Some get details on news or events that go beyond what can be found in the mass media. Some buy products that they cannot easily nd in stores. Some listen to or download music. My vacuum cleaner story, I believe, is typical of consumer Web use. I bought a Hoover with a micro ltration system that needed special bags. When my bags ran out, I went to several supermarkets and department stores in search of more micro ltration bags. None of them stocked the bags. So in desperation I looked up Hoover on the Web. Sure enough, the company had a Web site that offered the right bags. I purchased several. I am sure that Hoover does not make a pro t by selling small parts like this on the Web. What the Web site does for Hoover is make its micro ltration vacuum cleaner a viable product. Without the Web, few would ever be able to nd the replacement bags.
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In addition to vacuum cleaner bags, I have bought scores of books and movies on the Web. I have bought vitamins and hard-to-get replacement light bulbs and electronic parts. I would never buy clothing, an automobile, a TV, a house, a computer, or a microwave on the Web. Why not Because when I buy most things, I want to see and feel the product, or talk to someone about it before I buy it. Sears reports that many customers who are buying major appliances have already done their research on the Web. When they come to the store, they know what they want. But before they plunk down $1000, they want to see the product and talk to a salesperson. I researched Dell, Compaq, IBM, and Gateway on the Web before I bought the computer I am using to write this book. I nally settled on Gateway. But when I actually bought the computer, I called Gateway on the phone and talked to a sales rep, who put the package together for me with an Iomega Zip
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drive. This was a $1500 purchase. The sales rep talked me into a 1300megahertz model that was on sale, rather than the 1500-megahertz that I had selected on the Web. I saved $300.
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Since everyone assumed that consumers would ock to the Web and spend hours every day looking at Web sites, it made sense to clutter their computer screens with advertisements. A large percentage of the dot com business plans included advertising as an important revenue source. This was signi cant not only for the portal sites, such as Yahoo! and America Online, but also for thousands of other sites, such as those of the New York Times and the Washington Post and Women.com. Most of these sites had no other source of revenue. At rst, advertising agencies placed substantial amounts of their clients ads on the Web, hoping for success. When few people seemed to be responding to the ads, the idea was, It is early yet. As people get used to the Web, the sales will follow. The sales did follow in a few areas (books, travel, and nancial services), but even there, the pro ts were meager. The response rates to banner ads dropped from 2 percent to tiny fractions of 1 percent. After the crash, most major corporations drastically reduced their advertising on the Web. The banners tended to be quick-decision, low-budget operations. Gone were the shopping arcades and many consumer product ads. Why Because they didn t work as well as mass media ads.
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