e-commerce Flashcards
emerging model of new selling and merchandising tools in which buyers are able to participate in all phases of a purchase decision, while stepping through those processes electronically rather than in a physical store or by phone (with a physical catalog).
Electronic commerce (EC)
The processes in electronic commerce include: (4)
- enabling a customer to access product information
- select items to purchase
- purchase items securely
- have the purchase settled financially.
Kalakota and Whinston (1997) define EC from these perspectives: (4)
communications
business
service
online
From a ??? perspective, EC is the delivery of information, products/services or payments over telephone lines, computer networks, or any other electronic means.
communications
From a ??? perspective, EC is the application of technology toward the automation of business transactions and work flow.
business
From the ??? perspective, EC is a tool that addresses the desire of firms, consumers, and management to cut service costs while improving the quality of goods and increasing the speed of service delivery.
service
From an ??? perspective, EC provides the capability of buying and selling products and information on the Internet and other online services.
online
Internet/Web technology is available everywhere: at work, at home, and elsewhere via mobile devices, anytime. The marketplace is extended beyond traditional boundaries and is removed from a temporal and geographic location.
Ubiquity
The technology reaches across national boundaries and around the earth. Commerce is enabled across cultural and national boundaries seamlessly and without modification.
Global Reach
Video, audio, and text messages are possible. These are integrated into single marketing message and consuming experience.
Richness
The technology works through interaction with the user. Consumers are engaged in a dialog that dynamically adjusts the experience to the individual and makes the consumer a co- participant in the process of delivering goods to the market.
Interactivity
The technology reduces information costs and raise quality. Information becomes plentiful, cheap, and accurate.
Information Density
The disadvantages of ecommerce are as follows: (3)
cost and justification
security and privacy
lack of trust and user resistance
There are many opportunities for outsourcing but where and how to do it is not a simple issue.
cost and justification
Major types of ECommerce
B2C
B2B
C2C
Mobile Commerce
a type of ecommerce that serves direct consumers. The important activity here is buying. There are retailing transactions with individual shoppers.
Business-to-Consumers (B2C)
a type of ecommerce that serves businesses. The important activity of this is purchasing.
Business-to-Business (B2B)
different from buying because instead of individuals departments are involved, formal processes are followed, high monetary values may be involved and complex negotiations and contracts may take place.
Purchasing
Benefits of B2C to Business
Lower ??? costs
New ???
More accurate and up-to-date ??? (potentially anyway)
Opportunity for ???
Better ???
Lower ??? costs
distribution;
business opportunities;
consumer data;
added value services;
customer support;
operating
Benefits of B2C to Consumers
???
???
Ability to ??? and ??? among many offers
Lower ???, at times but not always
???
Convenience;
Information;
compare and choose;
prices;
Personal Service
Advantages of B2B:
Lower (3)
Reduced ???
Efficient ???
Lower ???
Better ???
Lower:
o purchasing costs
o sales costs
o marketing costs
inventory;
logistics;
cycle time;
customer support
a type of ecommerce that involves consumers selling directly to consumers.
Consumer-to-Consumer (C2C)
Benefits of C2C:
increased ??? (products, services, advice)
reduced ???
liquidity;
search costs
