Ch 10 Text Flashcards
What is e-commerce?
Refers to the use of the Internet and the web to transact business
About digitally enabled commercial transactions between and among organizations and individuals
What does business-to-consumer (B2C) mean?
Electronic commerce involves retailing products and services to individual shoppers
What does business-to-business (B2B) mean?
Electronic commerce involves sales of goods and services among businesses
What does consumer-to-consumer (C2C) mean?
Electronic commerce involves consumers selling directly to consumers
What is mobile commerce?
The use of handheld wireless devices for purchasing goods and services at any location
What are portals?
Gateways to the web and are often designed as sites that users set as their home page
Search engines
What is content?
Defined broadly to include all forms of intellectual property
What is intellectual property?
Refers to tangible and intangible products of the mind for which the creator claims a property right
Providers do not have to be creators of the content
What is a revenue model?
Describes how the firm will earn revenue, generate profits, and produce a superior return on investment
What is the advertising revenue model?
A website generates revenue by attracting a large audience of visitors who can then be exposed to advertisements
The most widely used revenue model in e-commerce
Ex. Facebook displays ads
What is the sales revenue model?
Companies derive revenue by selling goods, information, or services to customers
Micropayment systems provide content providers with a cost-effective method for processing high volumes of very small monetary transactions
Ex. Apple iTunes Store
What is the subscription revenue model?
A website offering content or services charges a subscription fee for access to some or all of its offerings on an ongoing basis
Ex. New York Times, Wall Street Journal
What is the free/freemium revenue model?
Firms offer basis services or content for free and charge a premium for advanced or special features
Ex. Spotify
What is the transaction fee revenue model?
A company receives a fee for enabling or executing a transaction
Ex. eBay provides an online auction marketplace and receives a small transaction fee if the seller is successful in selling an item
What is the affiliate revenue model?
Send visitors to other websites in return for a referral fee or percentage of the revenue from any resulting sale
Ex. MyPoints makes money by connecting companies to potential customers by offering special deals to its members
