9 E-commerce: Digital Markets, Digital Goods Flashcards
What is e-commerce about?
E-commerce is about digitally enabled commercial transactions between and among organisations and individuals.
What does e-commerce use?
The Internet and the web to do business transactions.
What are the different waves of e-commerce?
- First wave: books, music, air travel
- Second wave: marketing, TV, movies, real estate, bill payments
- Third wave: newspapers, education
What factors contribute to the growth of e-commerce?
- Business transformation
- Technology foundations (wifi, mobile devices and apps, social networks)
- New business models
What are unique features of e-commerce?
- Interactivity
- Information density
- Personalisation
- Social technology
- Ubiquity
- Global reach
- Universal standards
- Richness
What are key concepts in e-commerce?
- 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
What are the benefits of disintermediation to the consumer?
Cheaper costs for product from manufacturer straight to consumer instead of through distributor and retailer.
What are digital goods?
Goods that can be delivered over a digital network.
- Industries with digital goods are undergoing revolutionary changes (publishers, record labels, etc.)
What are the costs associated with digital goods?
- 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
What are the types of e-commerce?
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)
What are some e-commerce business models?
- Portal (yahoo)
- E-tailer (amazon)
- Content provider (itunes)
- Market creator (uber)
- Service provider (google services)
- Community provider (instagram)
What are some e-commerce revenue models?
- Advertising (facebook)
- Sales (gap)
- Subscription (netflix)
- Free/Freemium (spotify)
- Transaction fee (ebay)
- Affiliate (yelp)
How Has E-commerce Transformed Marketing?
- Internet provides new ways to identify and communicate with customers
- Long tail marketing
- Internet advertising formats • Behavioural targeting
- Tracking online behaviour of individuals
What are the main areas of growth for m-commerce?
- Mass market retailing (Trademe, Amazon, eBay, etc.)
- Sales of digital content (music, TV, etc.)
- In-app sales to mobile devices
What Issues Must Be Addressed When Building an E-Commerce Presence?
- 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
What is long tail marketing?
The Internet allows marketers to inexpensively find potential customers for products where demand is very low.
Which of the following dimensions of e-commerce technology involves engaging consumers in a dialogue that dynamically adjusts the experience to the individual?
Interactivity.
What standards are referred to when discussing universal standards as a unique feature of e-commerce?
Internet Technology Standards.
What is information density?
Total amount and quantity of information available to all market participants.
What is dynamic pricing?
Changing the prices of products based on the level of demand characteristics of the customer.
