INFORMATION SYSTEMS ANALYSIS AND DESIGN MODULE 8

Midterm Written Activity 8

ACTIVITY 1: CRITICAL THINKING QUESTIONS

Based on the discussion, answer each questions and / or statements briefly. Write on the spaces
provided below.

1. Explain the fundamental difference between vertical and horizontal exchanges in the
online B2B market.

By offering a wide variety of products, the horizontal marketplace seeks to serve a

large spectrum of customers. The vertical marketplace, in contrast, offers a particular
category of products to a specified clientele. Because they may locate specialized
products there that meet their particular demands, customers choose vertical markets.
Providers in the vertical market concentrate on particular products and services that cater
to a particular customer base. These markets are the antithesis of horizontal markets,
which offer their goods and services across a range of industries and are more closely
associated with a wide range of companies and industry sectors.

2. How do direct B2B e-commerce sites attempt to make their sites more attractive to
business buyers?
It is attractive since there are affordable and convenient selling chances. They have
recently developed an interest in B2B e-commerce since it enables them to reach large
audiences with limited resources, allows them to personalize relationships at scale, and
provides customers the freedom to make their own purchasing decisions. B2B businesses
promote and transact business online, making it simple for customers to make large
orders using a reliable digital transaction model. quicker delivery Tools for B2B e-
commerce speed up the sales process for buyers by streamlining it for sellers.

3. QR codes are very popular in Japan and other parts of Asia. Manufacturers place QR codes
on product packages and advertisements, making it easy for consumers to access
information about the products using a mobile device. Why do you think QR codes are not

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popular with Philippine consumers? Do you think QR codes will eventually become
accepted by Philippine consumers? Why or why not??
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ACTIVITY 2: CASE STUDY

Angry Birds Make Mobile Game Developers Happy
Sources: Compiled from Meola (2016), Statista.com (2016), Asante (2012).
Have you ever played popular mobile games such as Angry Birds, Candy Crush, or
Pokémon Go? For years, games have been the most popular type of mobile app, second only to
news apps. According to Business Insider, over 20% of the apps in Apple’s App Store were mobile
games, the largest category. While many apps in this category are free, 93% of app downloaders
are willing to pay for game apps, compared to 76% for news apps. While the average time that
people spend playing mobile games is only about 2 minutes a day, “core gamers,” or the 20% that
spend the most time playing, can log 1.6 hours a day or almost 12 hours a week. Revenue from
the 2016 mobile game market is estimated to exceed $36 billion, and expect it to rise to over $52
billion by 2019.
To put this in perspective, in 2009, iOS and Android mobile gaming apps accounted for
just 11% of the portable (handheld) gaming market dominated by Sony and Nintendo. By 2017,
mobile games accounted for 37% of the overall gaming market. It is also the fastest growing
segment (+21.3%) compared to PC games (+3.4%) and game consoles (+0.9%). Clearly, mobile
gaming apps have become a disruptive force in the marketplace, displacing two historically strong
companies who underestimated the potential of the mobile platform for gaming. Even more
impressive is the fact that the aforementioned statistics are based on revenues produced by paid
downloads and don’t reflect the millions of free games downloaded every year. But even free
games make money through advertising and in-app purchases. Some games, such as Angry Birds,
become so popular that they generate additional revenue through sales of game-related
merchandise.

REVIEW QUESTION:
1. How are mobile games different from traditional video games? What advantages do
mobile game apps have over traditional video games?

In contrast to PC games, which are typically more complicated and call for a bigger
time commitment, mobile games are made to be played on smaller screens and for
shorter periods of time. Though they can potentially appeal to a far larger audience,
mobile games are often less expensive to develop than PC games. There are numerous
causes for this, but the main one is because they are far more widely available than
conventional video games. Mobile games can be played whenever and whenever. Both a

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console and a TV are not necessary. An internet connection and a smartphone or tablet
are all you need.
Mobile phone gamers can save money or try out more games than their colleagues
in the traditional gaming industry because to the relatively low cost. Another benefit of
the low rates is that they increase accessibility for mobile gaming players. Playing games
that test children's strategic thinking and awareness of their wider environment can assist
improve memory, spatial awareness, and problem-solving skills. Additionally, people
already have the platforms on which to play these games (their phones). In some
circumstances, younger children's dexterity can be improved through playing games.

2. Since many gaming apps are free, how do developers make money in this category?

According to a survey of worldwide app publishers conducted in 2021, video

advertising are the most widely used way to monetize apps. Video advertisements were
employed by 82% of responding mobile game makers and 76% of non-gaming app
creators. Several methods, such as advertising, in-app purchases, sponsorship, and
affiliate marketing, are used to make money from free apps. A monetization technique
used by developers to generate income for their app is the mobile gaming business
model. One-time payments, in-app purchases (often referred to as microtransactions), or
ad monetization are the three options for revenue generation.

3. From a business perspective, what evidence suggests that the mobile gaming market
represents a significant marketplace?

Our ability to concentrate, think quickly and appropriately in different situations,

solve problems more effectively, and think creatively when necessary are all improved by
playing these games. These are all crucial abilities that one also needs in daily life. Many of
the advantages of in-game advertisements apply to the in-app environment as well,
including low-risk performance pricing, reduced CACs, and fewer competitors. For
marketers aiming to raise brand awareness, attract new clients, and enhance sales, in-app
remains a solid option.