Chapter 10 Flashcards
commerce technologies are interactive,
meaning they allow for two-way communication between merchant and
consumer.
Interactivity
free social networking application that allows you to share your
status and track the location of friends via smartphones such as the iPhone,
BlackBerry, and over 100 other mobile devices
Loopt
are established as peer-to-peer betting markets where
participants make bets on specific outcomes of, say, quarterly sales of a new
product, designs for new products, or political elections.
Prediction markets
r is similar to the typical bricks-and-mortar storefront, except
that customers only need to connect to the Internet to check their inventory
and place an order
online retail store
E-tailers
One strikingly unusual feature of e-commerce technologies is that the technical
standards of the Internet and, therefore, the technical standards for conducting
e-commerce are universal standards
Universal Standards
distribute information content, such as digital video, music, photos, text, and
artwork, over the Web
Content provider
User content generation and social networking
Social Technology
companies derive revenue by selling goods,
information, or services to customers.
Sales revenue model
are independently owned third-party Net marketplaces that
connect thousands of suppliers and buyers for spot purchasing.
Exchange
—the effort required to find suitable products.
Search costs
selling the same
goods, or nearly the same goods, to different targeted groups at different prices.
Price discrimination
E-commerce technology permits commercial transactions to cross cultural and
national boundaries far more conveniently and cost effectively than is true in
traditional commerce.
Global Reach
involves not only purchasing
goods and materials but also sourcing, negotiating with suppliers, paying for
goods, and making delivery arrangements.
Procurement
a Web site generates revenue by attracting
a large audience of visitors who can then be exposed to advertisements.
is the most widely used revenue model in e-commerce, and
arguably, without advertising revenues, the Web would be a vastly different
experience from what it is now.
Advertising revunue model
Web sites (called “affiliate Web sites”) send visitors to other Web sites in return for a referral fee or percentage of the revenue
from any resulting sales.
Affiliate revenue model
Sites that process transactions for consumers normally handled in person, by
phone, or by mail are transaction brokers
Transaction brokers
merchants’ costs of
changing prices
Menu cost
offer services online
Service provider
Merchants can target their
marketing messages to specific individuals by adjusting the message to a
person’s name, interests, and past purchases.
Personalization
which are sometimes called e-hubs, provide a single,
digital marketplace based on Internet technology for many different buyers
and sellers
net marketplaces
refers to the use of the Internet and the Web to transact business
is about digitally enabled commercial transactions
between and among organizations and individuals.
E-commerce
refers to the ease with which consumers can
find out the variety of prices in a market;
Price transparency
are sites that create a digital online environment
where people with similar interests can transact (buy and sell goods); share
interests, photos, videos; communicate with like-minded people; receive
interest-related information; and even play out fantasies by adopting online
personalities called avatars.
Community Providers
s build a digital environment in which buyers and sellers can
meet, display products, search for products, and establish prices.
Market creators
argue that large numbers of people can make better decisions about a wide
range of topics or products than a single person or even a small committee of
experts (Surowiecki, 2004).
t suggests that firms should consult
with thousands of their customers first as a way of establishing a relationship
with them, and second, to better understand how their products and services
are used and appreciated (or rejected).
The wisdom of crowds
Type of net marketplaces
- Direct goods
- Indirect goods
typically consist of a large firm using an
extranet to link to its suppliers and other key business partners
Private industrial network/Private exchange
refers to tracking the click-streams (history of clicking behavior) of
individuals on thousands of Web sites for the purpose of understanding their
interests and intentions, and exposing them to advertisements that are
uniquely suited to their behaviorrefers to tracking the click-streams (history of clicking behavior) of
individuals on thousands of Web sites for the purpose of understanding their
interests and intentions, and exposing them to advertisements that are
uniquely suited to their behavior
Behavioral targeting
a Web site offering content or services
charges a subscription fee for access to some or all of its offerings on an ongoing
basis.
Subscription revenue model
a company receives a fee for enabling
or executing a transaction.
Transaction revenue model
electronic commerce involves retailing
products and services to individual shoppers. BarnesandNoble.com, which
sells books, software, and music to individual consumers
Business to consumer
is defined broadly to include all forms
of intellectual property
Content
refers to the complexity and content of a message.
Richness
exists when one party in a transaction has more information that is important
for the transaction than the other party
Information asymmetry
Types of e-commerce
- Business to consumer
- Business to business
- Consumer to consumer
have tools to track a shopper’s every step through an online store. Close
examination of customer behavior at a Web site selling women’s clothing shows what the store might
learn at each step and what actions it could take to increase sales.
E-commerce webiste
The use of handheld wireless devices for purchasing goods and services from any location is termed
Mobile commerce or M commerce
enables the computer-tocomputer exchange between two organizations of standard transactions such as
invoices, bills of lading, shipment schedules, or purchase orders.
Electronic Data interchange
describes how the firm will earn revenue, generate
profits, and produce a superior return on investment.
Revenue Model
—changing the delivered product or service based on a user’s
preferences or prior behavior.
Customization
Beyond merely soliciting advice, firms can be actively helped in solving
some business problems using what is
Crowdsourcing
provides a special kind of browser for smart phones equipped with
a built-in global positioning system (GPS) and compass that can identify your
precise location and where the phone is pointed.
Wikitude.me
the cost merchants must pay simply to bring their
goods to market
Market entry costs
are all other goods not directly involved in the
production process,
Indirect goods
provide content providers with a cost-effective method for processing
high volumes of very small monetary transactions
Micropayment system
are goods that can be delivered over a digital network.
Digital goods
electronic commerce involves consumers
selling directly to consumers
Consumer to consumer
provides a similar service to 4 million registered users, who are
able to connect with friends and update their location.
foursquare
link people through their mutual business or
personal connections, enabling them to mine their friends (and their friends’
friends) for sales leads, job-hunting tips, or new friends.
Social shopping
are goods used in a production process, such as sheet steel for auto
body production.
Direct goods
electronic commerce involves sales of goods
and services among businesses. ChemConnect’s Web site for buying and
selling chemicals and plastics
Business to business
firms offer basic services or content for
free, while charging a premium for advanced or special features.
Freemium revenue model
is a
method of publishing audio or video broadcasts via the Internet, allowing
subscribing users to download audio or video files onto their personal
computers or portable music players.
Podcasting
are very flexible and efficient because they operate with
reduced search and transaction costs, lower menu costs, greater price discrimination, and the ability to change prices dynamically based on market conditions.
Digital markets
refers to the
ability of consumers to discover the actual costs merchants pay for products.
Cost transparency
—a marketplace extended
beyond traditional boundaries and removed from a temporal and geographic
location.
Maketspace
. The removal of organizations or business process layers responsible for intermediary steps in a value chain is called
Disintermediation
the total
amount and quality of information available to all market participants,
consumers, and merchants alike.
Information density
refers to all forms of human
expression that can be put into a tangible medium such as text, CDs, DVDs, or
stored on any digital (or other) media, including the Web.
Intellectual property
provides access to premium content, such as
detailed ratings, reviews, and recommendations, only to subscribers, who have a
choice of paying a $5.95 monthly subscription fee or a $26.00 annual fee.
Consumer report
link people through their mutual business or
personal connections, enabling them to mine their friends (and their friends’
friends) for sales leads, job-hunting tips, or new friends.
Social Networking sites
g is a publishing method for music and video files that flows a continuous stream of content to a user’s
device without being stored locally on the device.
Streaming
he price of a
product varies depending on the demand characteristics of the customer or the
supply situation of the seller.
Dynamic Pricing
that is it available just about everywhere, at all times. It makes it possible to
shop from your desktop, at home, at work, or even from your car, using mobile
commerce
Ubiquity
were
primarily “gateways” to the Internet. Today, however, the portal business
model provides a destination site where users start their Web searching and
linger to read news, find entertainment, and meet other people, and be
exposed to advertising
Portal
