Handout 3 Flashcards
involves the use of the Internet, the World Wide Web (or simply Web), and mobile apps and browsers running on mobile devices to transact business.
“digitally enabled commercial transactions between and among organizations and individuals.”
E-commerce
include all transactions mediated by digital technology, i.e., transactions that occur over the Internet, the Web, and/or via mobile devices.
Digitally enabled transactions
involve the exchange of value (such as money) across organizations or individuals in return for products and services
Commercial transactions
It is a worldwide network of computer networks built on common standards. It links businesses, educational institutions, government agencies, and individuals together, and provides users with services such as e-mail, document transfer, shopping, research, instant messaging, music, videos, and news.
Internet
It is an information system that runs on the Internet infrastructure. It was the original “killer app” that made the Internet commercially interesting and extraordinarily popular.
World Wide Web
It provides the ability to access the Internet from a variety of mobile devices such as smartphones, tablets, and other ultra-lightweight laptop computers via wireless networks or cell phone service
Mobile platform
a software application, which is typically used when referring to
mobile applications, although it is sometimes used to refer to desktop computer applications as well.
app
a version of Web browser software accessed via a mobile device.
mobile browser
It is the most common type of e-commerce that most consumers are likely to encounter. It is where online businesses attempt to reach individual consumers.
Business-to-Consumer (B2C) E-Commerce
It is the largest form of e-commerce in which businesses focus on selling to other businesses.
Business-to-Business (B2B) E-Commerce
It provides a way for consumers to sell to each other with the help of an online market maker (also called a platform provider) such as eBay and Etsy or an on-demand service company such as Airbnb.
Consumer-to-Consumer (C2C) E-Commerce
It refers to the use of mobile devices to enable online transactions,
which involves using cellular and wireless networks to connect smartphones and tablet computers to the Internet.
Mobile E-Commerce (M-Commerce)
It is enabled by social networks and online social relationships. Its growth is driven by several factors, including the increasing popularity of social sign-on and social search and the increasing prevalence of integrated social commerce tools such as buy buttons,
shopping tabs, and virtual shops on Facebook, Instagram, Pinterest, and other social networking sites
Social E-Commerce
A variation of social e-commerce controls the mobile connection even further. It involves the use of mobile messaging apps such
as Facebook Messenger, WhatsApp, Snapchat, Slack, and others as a vehicle for companies to engage with
consumers.
conversational commerce
is a set of planned activities or business processes designed to result in a profit in a marketplace.
business model
aims to use and control the unique qualities of the Internet, the Web, and the mobile platform.
e-commerce business model
online retail stores, are similar to the traditional storefront, except the customers only have to connect to the Internet or use their smartphone to place an order.
E-tailers
They create an online environment where people with similar interests can transact (buy and sell goods); share interests, photos, and videos; communicate with like-minded people; receive interest-related information; and even play out fantasies by adapting personalities called avatars.
Community Providers
They distribute information content, such as digital video, music, photos, text, and artwork.
Content Providers
Google, Yahoo, MSN, and AOL offer users powerful search tools, as well as an integrated package of content and services, such as news, e-mail, instant messaging, calendars, shopping, music downloads, video streaming, and more, all in one place.
Portals
These are companies that process transactions normally handled in person, by phone, or by mail on behalf of consumers.
Transaction Brokers
They build a digital environment in which buyers and sellers can meet, display and search for products and services, and establish prices.
Market Creators
These entities offer services online and use a variety of revenue models. Some charge a fee or monthly subscriptions, while others generate revenue from other sources such as through advertising.
Service Providers
These are companies that supply products and services directly to individual businesses.
These are owned by one (1) company seeking to serve many customers.
E-distributors
these firms create and sell access to digital markets. For example, Ariba (ariba.com) has created a software that helps large firms to organize their process by creating mini-digital markets for a single firm.
E-procurement
These are independent digital marketplaces where hundreds of suppliers meet a smaller number of large commercial purchasers.
Exchanges
These are industry-owned vertical marketplaces that serve specific industries such as automobile, aerospace, chemical, floral, or logging.
Industry Consortia
supply a smaller number of companies with products and services of specific interest to their industry.
Vertical marketplaces
sell specific products and services to a wide range of companies.
horizontal marketplaces
These are sometimes referred to as private trading exchanges. These are digital networks designed to coordinate the flow of communications among firms engaged in business together.
Private Industrial Networks
a major tool for establishing an initial relationship with the customer. Its first function is to establish a brand’s identity by identifying for the consumer the differentiating features of a business’ product or service in terms of quality, price, product support, and reliability.
Website
These are the basic marketing and advertising tools for attracting e-comerce consumers
Traditional Online Marketing
It refers to the use of search engines to build and sustain brands.
Search engine marketing
the search results of a search engine that cannot be influenced by paid advertising; results are ranked according to their relevance to the search term
organic search
a program in which, for a fee, a search engine guarantees a website’s inclusion in its list of search results
paid inclusion
the primary type of search engine advertising in which advertisers pay each time a user clicks on one of their online ads
pay-per-click (PPC) search ads
is made up of texts, images, or videos that encourages users to click-through to a landing page and take action.
Display ad marketing
these display a promotional message in a rectangular box on a computer or mobile device screen and brings a potential customer directly to the advertiser’s site
banner ads
these employ features such as video, animation, sound, and other elements that encourage viewers to interact and engage with the content
rich media ads
television-like advertisements that appear as in-page video commercials before, during, or after a variety of content
video ads
a paid effort to tie an advertiser’s name to a particular information, event, or venue in a way that reinforces its brand in a positive yet not obviously commercial manner
sponsorship
Direct e-mail ( messages sent directly to interested users) was one of the first and most effective forms of online marketing communications.
E-mail marketing
It is a form of marketing where a firm pays a commission, typically anywhere between 4% and 20%, to other websites (including blogs) for sending customers to their website.
Affiliate marketing
It is a form of social marketing that involves getting customers to pass along a company’s marketing message to friends, family, and colleagues.
Viral marketing
It involves the use of online social networks and communities to build brands and drive sales revenues. There are several kinds of social networks,
Social Marketing and Advertising
includes the use of display banner ads, rich media, video, games, e-mail, text messaging, in-store messaging, quick response (QR) codes, and couponing. Apps on mobile devices constitute a marketing platform that did not exist before.
Mobile Marketing and Advertising
The growth of mobile devices has accelerated the growth of local search and purchasing.
Local Marketing
is the study of principles that individuals and organizations can use to determine right and wrong courses of action.
Ethics
possibly the most complex ethical issue raised by e-commerce, as well as the changing technology of human communications brought about by the Internet and mobile devices.
Privacy Issues
Next to privacy, the most controversial issue related to e-commerce is the
Intellectual Property Rights
as it relates to e-commerce, has something to do with social control: who will control the Internet, what elements will be controlled, and how the controls will be implemented.
Governance
Critical issues in e-commerce center around the protection of children, strong sentiments against pornography in any public media, efforts to control gambling, and the protection of public health through restricting the sales of drugs and cigarettes online.
Public Safety and Welfare
