9 E-commerce: Digital Markets, Digital Goods Flashcards

1
Q

What is e-commerce about?

A

E-commerce is about digitally enabled commercial transactions between and among organisations and individuals.

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2
Q

What does e-commerce use?

A

The Internet and the web to do business transactions.

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3
Q

What are the different waves of e-commerce?

A
  • First wave: books, music, air travel
  • Second wave: marketing, TV, movies, real estate, bill payments
  • Third wave: newspapers, education
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4
Q

What factors contribute to the growth of e-commerce?

A
  • Business transformation
  • Technology foundations (wifi, mobile devices and apps, social networks)
  • New business models
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5
Q

What are unique features of e-commerce?

A
  • Interactivity
  • Information density
  • Personalisation
  • Social technology
  • Ubiquity
  • Global reach
  • Universal standards
  • Richness
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6
Q

What are key concepts in e-commerce?

A
  • Internet and digital markets have changed the way companies conduct business.
  • Information asymmetry reduced.
  • Menu costs, search and transaction costs reduced.
  • Dynamic pricing enabled.
  • Switching costs.
  • Delayed gratification.
  • Disintermediation
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7
Q

What are the benefits of disintermediation to the consumer?

A

Cheaper costs for product from manufacturer straight to consumer instead of through distributor and retailer.

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8
Q

What are digital goods?

A

Goods that can be delivered over a digital network.

- Industries with digital goods are undergoing revolutionary changes (publishers, record labels, etc.)

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9
Q

What are the costs associated with digital goods?

A
  • Cost of producing first unit is almost entire cost of product
  • Costs of delivery over the Internet very low
  • Marketing costs remain the same; pricing highly variable
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10
Q

What are the types of e-commerce?

A
1. Business-to-consumer (B2C)
• Example: Kmart - Warehouse
2. Business-to-business (B2B)
• Example: ChemConnect
3. Consumer-to-consumer (C2C)
• Example: eBay – trademe
  • E-commerce can be categorised by platform
  • Mobile commerce (m-commerce)
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11
Q

What are some e-commerce business models?

A
  • Portal (yahoo)
  • E-tailer (amazon)
  • Content provider (itunes)
  • Market creator (uber)
  • Service provider (google services)
  • Community provider (instagram)
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12
Q

What are some e-commerce revenue models?

A
  • Advertising (facebook)
  • Sales (gap)
  • Subscription (netflix)
  • Free/Freemium (spotify)
  • Transaction fee (ebay)
  • Affiliate (yelp)
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13
Q

How Has E-commerce Transformed Marketing?

A
  • Internet provides new ways to identify and communicate with customers
  • Long tail marketing
  • Internet advertising formats • Behavioural targeting
  • Tracking online behaviour of individuals
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14
Q

What are the main areas of growth for m-commerce?

A
  • Mass market retailing (Trademe, Amazon, eBay, etc.)
  • Sales of digital content (music, TV, etc.)
  • In-app sales to mobile devices
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15
Q

What Issues Must Be Addressed When Building an E-Commerce Presence?

A
  • Most important management challenges
    • Developing clear understanding of business objectives
    • Knowing how to choose the right technology to achieve those objectives
  • Develop an e-commerce presence map
    • Four areas: websites, email, social media, offline media
  • Develop a timeline: milestones
    • Breaking a project into discrete phases
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16
Q

What is long tail marketing?

A

The Internet allows marketers to inexpensively find potential customers for products where demand is very low.

17
Q

Which of the following dimensions of e-commerce technology involves engaging consumers in a dialogue that dynamically adjusts the experience to the individual?

A

Interactivity.

18
Q

What standards are referred to when discussing universal standards as a unique feature of e-commerce?

A

Internet Technology Standards.

19
Q

What is information density?

A

Total amount and quantity of information available to all market participants.

20
Q

What is dynamic pricing?

A

Changing the prices of products based on the level of demand characteristics of the customer.