Ch. 7 - E-business and E-commerce Flashcards
e-commerce
process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the Internet
e-business
broader concept than e-commerce that also includes servicing customers, collaborating with business partners, and performing electronic transactions within an organizations
brick-and-mortar
physical organizations
virtual organizes
pure-play, digital-only organizations
clicks-and-mortar
partial EC with primary physical presence
types of e-commerce
- business to consumer (B2C)
- business to business (B2B)
- consumer to consumer (C2C)
- business to employee (B2E)
- e-government (G2C or G2B)
- mobile commerce (m-commerce)
- social commerce
- conversational (or chat) commerce
online direct marketing
manufacturers or retailers sell directly to customers
very efficient for digital products + services
ex. Amazon
electronic tendering system
businesses request quotes from suppliers
uses B2B with a reverse auction mechanism
name-your-own-price
customers decide how much they are willing to pay
an intermediary tries to match a provider
find-the-best-price
customers specify a need
intermediary compares providers + shows the lowest price
customers must accept the offer in a short time or they will lose the deal
affiliate marketing
vendors asks partners to place logos on partner’s sites
if a customer clicks on the logo, go to the vendors site and makes a purchase, the vendor pays commissions to the partners
viral marketing
recipients of your marketing notices send information about your product to ehri friends
group purchasing (e-coops)
small buyers aggregate demand to create a large volume
group conducts tendering or negotiates a low price
onlin auctions
companies run auctions of various types on the internet
very popular in C2C but gaining ground in other types of EC as well
ex. ebay
product customization
customers use the internet to self-configure products or services
sellers then price them and fulfill them quickly (build-to-order)
ex. dell
electronic marketplaces and exchanges
transactions are conducted efficiently (more information to buyers and sellers, lower transaction costs) in electronic marketplaces (private or public)
bartering online
intermediary administers online exchange of surplus products r company receives “points” for its contribution, which it can use to purchase other needed items
deep discounters
company offers deep price discounts
appeals to customer who consider only price in their purhcasing decisions
membership
only members can have access to the content and services
ex. netflix
major e-commerce mechanisms
- electronic catalogues
- electronic auctions (reverse/forward auction)
- electronic storefronts
- e-malls (cybermalls)
- electronic marketplaces
electronic payment mechanisms
- electronic cheques (e-cheques)
- electronic cards
- digital online payments (payment gateways)
types of electronic cards
- electronic credit/debit cards
- purchasing cards
- store-value money cards
- EMV smart cards
benefits of EC
- national + internal markets are more accessible
- lower costs of processing, distributing + retrieving information
- provides access to a vast # of products + services 24/7
- deliver info, services + products to people in cities, rural areas + developing countries
limitations of EC
- lack of universally accepted security standards
- in less-developed countries telecommunications bandwidth is often insufficient + web access is expensive
- perceptions that e-commerce is insecure
electronic storefronts and malls
- electronic retailing (e-tailing)
- electronic storefront
- electronic mall
online service industries
- disintermediation
- financial technology (Fintech)
- online securities trading
- the online job market
- travel services
- online advertising
issues in e-tailing
- channel conflict + multi channelling
- order fulfillment
- personalized pricing
sell-side marketplace
B2B model in which organization sell to other organizations from their own private e-marketplace or from a third-party site
- forward auctions
- electronic catalogues
- third-party auction sites
buy-side marketplace
B2B model in which organizations buy needed products or services from other organizations electronically, often through reverse auction
- procurement
- purchasing
- reverse auction
- e-procurement
- group purchasing
e-procurement
purchasing by using electronic support
group purchasing
aggregation of purchasing orders from many buyers so that a volume discount can be obtained
auction
competitive buying + selling process where prices are determined from competitive bidding
electronic exchanges
- private exchanges
- public exchanges (vertical/horizontal/functional exchanges)
forward auction
sellers solicit bids from many potential buyers
ex. request for proposal
reverse auction
one buyer (usually an organization) wnats to purchase a product or service
ex. request for information
ethical issues
- threats to privacy
- potential job loss
legal + ethical issues specific to e-commerce
- fraud on the internet
- domain names
- cybersquatting
- taxes + other fees
- copyright
e-tailing
direct sale of products + services through storefronts or electronic malls, usually designed around an electronic catalogue format and auctions
electronic storefront
website of a single company, with its own internet address where orders can be placed
e-mall
collection of individual shops under one internet address
ex. amazon
spamming
use of ads without permission of the recipient
channel conflict
alienation of existing distributors when a company decides to sell to customers directly online
multichanneling
process in which company integrates its online + offline channels
standardized pricing
cost should not vary by more than the diff in shipping, taxation + distribution costs
order fulfillment
hard to accomplish effectively + efficiently in B2C; have to fulfill many orders to many customers at a time
