Ph.D thesis Viability of Multimedia Systems for Marketing and Sales

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Ph.D. thesis: The Viability of Multimedia Retrieval Systems for Marketing and Sales

by prof dr Martijn Hoogeveen ISBN 90-72125-47-9

Contents
Summary
Order info
Acknowledgements
Commercial 1996 update

Order information

The printed Ph.D thesis can be obtained by sending to Martijn Hoogeveen, C. Peeterslaan 18, 3723 PL BILTHOVEN, The Netherlands

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an international (Post Office) money order of $ 15
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a money transfer to Postbank account No 411.45.49 in the Netherlands

Several people are succesfully sending me the payment by letter. In case you want to do this, take care that it is wrapped up invisibly. Anyway, its the more easy but risky approach.

Sorry, but I can't accept credit card yet.

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Contents

Summary vii
Acknowledgements ix
Contents xi

1. Introduction 1
    1.1. Multimedia Retrieval for Marketing and Sales 1
    1.2. Insight into the viability 3
    1.3. Research approach 4
    1.4. Outline of the thesis 9

2. A Framework for Multimedia Retrieval Systems for Marketing & Sales 11
    2.1. Introduction 11
    2.2. Developments in Marketing & Sales (M&S) 12
        2.2.1. Introduction 12
        2.2.2. Improving the quality of service and other business objectives 13
        2.2.3. Types of products and services 15
        2.2.4. Types of tasks and processes 16
        2.2.5. Types of people involved 25
        2.2.6. Type of information items processed 25
        2.2.7. Type of M&S Support Systems 26
        2.2.8. Conclusion 30
    2.3. Developments in Multimedia Systems (MSs) 32
        2.3.1. Introduction 32
        2.3.2. Types of media involved 34
        2.3.3. Multimedia information processing 38
        2.3.4. Conclusion 39
    2.4. Developments in retrieval systems 40
        2.4.1. Introduction 40
        2.4.2. Types of MDBMSs 41
        2.4.3. MDBMS facilities in support of an MRS client application 44
        2.4.4. Conclusion 48
    2.5. Summary 48

3. Multimedia Retrieval Systems for Marketing & Sales 51
    3.1. Introduction 51
    3.2. Symbols used in diagrams 51
    3.3. The Marketing Communications Archive (MCA) 53
    3.4. The Tele Sales Assistant (TSA) system 62
    3.5. The Multimedia Business Catalogue (MBC) 71
    3.6. The Multimedia Promotion System (MPS) 81
    3.7. Multimedia Assisted Instruction (MAI) 88
    3.8. The Marketing Documentation Archive (MDA) 95
    3.9. The Virtual Market (VM) 103
    3.10. Summary 116
        3.10.1. A corporate Marketing & Sales Support System 116
        3.10.2. Indications of the viability and the business objectives and success/risk factors 117

4. Hypotheses about the Viability of Multimedia Retrieval Systems for Marketing and Sales 121 (better: paper in Int'l Journal for Human Computer Interaction 1998)
    4.1. Introduction 121
    4.2. Explaining the symbols used 122
    4.3. Theoretic viewpoints 123
    4.4. Basic assumptions and outline of the theory 124
    4.5. Hypotheses about the value added of MR functionality 126
        4.5.1. Multimedia paradigm 127
        4.5.2. Support of the MM paradigm 129
        4.5.3. Retrieval paradigm 134
    4.6. Hypothesised success/risk factors 136
    4.7. Business objectives hypothesised as relevant 142
    4.8. Operationalisation of the dependent variables 144
    4.9. Summary 146

5. Testing Business Perceptions and Financial Viability 149
    5.1. Introduction 149
    5.2. Test measurement, test reliability and test validity 149
    5.3. Perceptions of the value added of MM and success/risk factors. 152
    5.4. Expert assessment of the viability of MM teleservices 158
    5.5. Expert evaluation of an MBC and the value added of MR 167
    5.6. Expert evaluation of a promotional CD-i and the value added of MR 171
    5.7. Comparing judgements with regard to the promotional CD-i and the MBC 177
    5.8. A survey of the effectiveness of MM teleshop services 178
    5.9. Market research and viability 188
    5.10. A retrospective Cost Benefit Analysis of the IECT Photo Archive 191
    5.11. A prospective Cost Benefit Analysis of an MBC for tele-ordering 196
    5.12. Summary 202

6. Discussion 205
    6.1. Introduction 205
    6.2. Towards a new MM paradigm 205
    6.3. Has MR value added? 207
    6.4. Are there MM specific critical success/risk factors for MRS for M&S? 208
    6.5. Are MRSs for M&S effective? 209
    6.6. What is the viability of MRSs for M&S? 210
    6.7. Further research issues 211
    6.8. Some speculations about surviving information competition 211

A. Abbreviations 215
B. Terminology 219
C. Questionnaires and results 225
References 249
About the author 259
Samenvatting (Summary in Dutch) 261
Index 26

Summary (dutch version)

This Ph.D. thesis addresses the issue of the viability of Multimedia Retrieval Systems (MRSs) for Marketing & Sales (M&S), i.e. multimedia systems with a clear retrieval component, that support one, or more, M&S processes. Multimedia means that multiple information types, such as speech, music, text, graphic, still, animation and video, are used in an integrated manner.

Today, M&S is one of the most viable application domains for multimedia technology. Viability, being able to survive under business conditions, is a very important issue for every investor in multimedia systems, therefore this study focuses on increasing insight into viability, and factors influencing viability, to improve MRSs for M&S and the way they are developed.

An overview of potentially viable MRSs for M&S is given on the basis of extensive case research. Subsequently, business aspects, functional aspects and implementation aspects of MRSs are discussed such as the Multimedia Communications Archive for storage and retrieval of corporate advertisement material, Tele Sales Assistant for support of telephonic sales personnel, Multimedia Business Catalogue offering the possibility of tele-ordering to business customers, Multimedia Promotion System at a trade fair stand, Multimedia Aided Instruction for training marketing and sales staff, and the Virtual Market. The Virtual Market is the most appealing system, as it offers flexible support for all types of information services and meets the demands of heterogeneous groups of private and business customers.

Insight into the viability of MRSs for M&S is given by describing experimental findings with regard to the value added of multimedia, and by presenting the results of a qualitative survey of business objectives and success/risk factors for projects investigated. Experimental findings indicate that multimedia adds entertainment value as respondents experience it as fun, as enjoyable and attractive. Perceptions about the effectiveness of multimedia and multimedia retrieval are, however, more positive than can be concluded from experimental findings. The belief in multimedia has clearly taken the form of a paradigm, which needs to be corrected. Experimental findings suggest that multimedia systems are only effective for information and knowledge transfer if a high level of multimediality is combined with a high level of man-machine interactivity, adequate use of mental reference models, good quality of information representation and if audio, video, text and graphics, etc. are used congruently. Some of the success/risk factors, identified as critical for the viability of MRSs for M&S, are seen as multimedia specific; for example, the technological complexity of multimedia projects, the scarcity of necessary multimedia expertise, too little standardisation of multimedia products, and the innovative image of multimedia systems.

The results of quantitative surveys, expert assessments and Cost Benefit Analyses suggest that most MRSs are viable today; they are perceived as effective; and for the case of a Multimedia Communications Archive and tele-ordering Multimedia Business Catalogue, it has been shown that a very high Return On Investment is possible. Only the Virtual Market can not today be seen as economically effective and viable; experts believe it will take about 5-10 years before this will be the case. This implies that multimedia service providers and M&S firms that want to survive the shift from service competition to information competition in the next century, have to prepare themselves for the Virtual Market now, to be ready for an awakening market in about 5 years and a profitable market in about 10 years from now.

Acknowledgements

These four years of multimedia business research, can be seen as an adventure through the Gobi dessert. You've to cross many, many - potentially very fertile, but due to the complete absence of water - deadly bare plains. It is your quest to find the multimedia river and return some of its water to fertilise these plains. You're finding your way with a self-made compass as the sun and stars are often obscured by sandstorms, and you've to calibrate your compass regularly. Your will to proceed is tested to the uttermost, and particularly, if you hit upon a seductive business oasis it is hard to gird up your research backpack again next morning, and to start once more your search for the multimedia river. The moment you think you've found this river, beware. It often turns out to be a fata morgana, whose bewildering promises are never fulfilled, that leads complete caravans astray. These caravans have to have clear objectives to survive, but you'll be surprised how many of these 'projects' don't and therefore are only by chance able to reach a worthwhile destination! And if you accidentally hit upon the quick streaming, ever glittering, multimedia river, with its sparkling rainbows, impressively roaring falls, and blossoming flowers at the river sides, then you know that you haven't undertaken the journey for nothing. Still, you must dig many ditches, build many aqueducts, and cope with many risk factors, before the magic multimedia water may flow to release the plains from dryness, to fulfil your quest.

If you've finished such an adventure, believe me, you're happy to look back and thank all those who have helped you on your way. Thus, I want to express my sincere gratitude to my supervisors Henk Sol and Kees van der Meer, who patiently urged me to proceed even when I hit upon a refreshing oasis. Further, I want to thank my colleagues of the OCTOPUS project at Cap Gemini for inspiring me when I started my research and, later on, my colleagues at PTT Research where it was adopted and my colleagues at EURESCOM for innovative collaboration in Pan European multimedia services. In particular, I want to thank my PTT Research colleagues André Terpstra, Harry van Binsbergen, Willem Remmers and George Huitema who helped me to embed my research within PTT Research and helped to guard the usefulness of my research from the Royal PTT Nederland perspective. Further, I want to thank all those who helped me, directly or indirectly, during my research to gather and analyse data, Michel van den Bempt, Meindert Bekker, Paul Geurts, Frank Thomas, Richard Mounoury, Roger Derksen, Irene Kwaaitaal and many many others. I also want to express my gratitude for the intelligible support of Miranda Aldham-Breary, encouraging me to trust in my feel for English. Finally, I want to give a thought to Beulah MacNab who 'lured' me seven years ago into the realm of Perception Psychology, and it still baffles me how essential this is when trying to explain the value added of multimedia.