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most, heavily, from where and for how long. This information contributes to improved measures of the results of promotional efforts. The promotional costs associated with the Inter have also been very low. For example, in direct mail marketing, to send a onepage color brochure to 5,000 random addresses will cost upwards of $2,500. The cost of setting up a Web site could be onetenth of this amount or less (although tracking and analysis can quickly add to the cost)?Many different sectors, including real estate, have found the Inter to be both efficient and costeffective as a marketing device. The next logical step a fullfledged office/store on the Web with transaction capability and merce on the Inter is now being attempted in varying degrees depending on the firm39。 s area of business. Retail sites selling products between $10 and $100, the kind that are traditionally part of a direct mail sales catalog, seem to be the ones having the greatest success(although 4% of sites sell products over $10,000 and another 13% sell products ranging from $100 to$9,999)?A number of retail sites have also harnessed a secondary revenue stream from advertising. Advertising revenues on the Web have crossed the billiondollar mark and total Inter generated revenue will approach$100 billion this year. Consumers39。 Use of the Web Surveys of consumers using the Web suggest that a Web site does not substitute for the more traditional forms of business, but can greatly facilitate the runup to the final transaction. The most mon use of the Web is for information searching, closely followed by workrelated uses, education, and entertainment. A significant majority of those that use the Web for shopping do so to carry out detailed research on product information( 90%) and to do price parisons( 85%) . This more often leads to purchases through normal channels( 67%) . Most of the online purchases tend to be of items that are standardizedfour of the five top items bought on the Web, according to survey, are software, books, hardware and music (the fifth is travel). More than half of consumers who make purchases on the Web spend less than $500 in a sixmonth period. The demographics of Web users vary widely in age and ine. Surveys by Geia Tech, Active Media and Web indicate that the average age of Web users is 35 years, with average household ine $67,000. Most are college educated (65%). A high proportion of the respondents (42%) has accessed real estate sites. Limits to the Web Some Catches to the New Technology New technology is frequently a mixed blessing, and the World Wide Web is no exception. Apart from the teething troubles that any new technology faces and the time, as well as resources needed to learn, adapt and master it, the Web poses some unique issues and problems of its own. Consumers today are facing information overload of taxing proportions. It is not always easy, or even possible, to locate the relevant information on the Web, despite sophisticated search engines. Once the site is located, fancy graphics, plex linkages, labyrinthine routings, and a lot of irrelevant information may overwhelm the consumer in short, poor and confusing site design can reduce the site39。 s effectiveness. From the point of view of the business, there are two monly heard plaints. First, the business may find that its site does not figure prominently on search results, limiting the number of customers reached. Second, for many firms, Web initiated leads are as yet few and far between. Real Estate Web Sites Real Estate firms and related businesses were among the early private sector pioneers of Inter use and have had a fast growing presence on the Web. presence on the Web. One example of the real estate sector39。 s presence on the Inter in its preWorld Wide Web incarnation was the real estate classified bulletin board of Prodigy, the online service, which had listings for homes and other real estate. A few real estate related Web sites started in 1994 (generally regarded as the inaugural year of the Web). The New York City Real Estate Guide Web site, created in the summer of 1994, was one of the first to offer free access to the latest New York real estate information. By the summer of 1995, the site was receiving more than 100,000 inquiries a month. The real estate industry registered its entry on the Web in a dramatic way in 1995. By the end of that year there were close to 4,000 real estate Web sites. The content matter of the sites, as well as the mix of real estate related firms on the Web have changed over time. Initially, quite a few of the sites were residential real estate brokerages and listing guides, but fairly rapidly the list expanded to include mercial and retail listings, mortgage brokers, appraisers, architects, real estate attorneys, developers, construction firms, and suppliers. As inv。
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