ITM Chapter 10 Cards Flashcards
e-commerce
refers to the use of the Internet and the Web to transact business
8 E-Commerce Technology Dimensions
- Ubiquity- Global reach- Universal standards- Richness- Interactivity- Information density- Personalization / customization- Social technology
Market Entry Costs
The cost merchants must pay simply to bring their goods to market are greatly lower by e-commerce
Search Cost
The effort required to find suitable products is greatlyreduced by universal standard
Information Richness
Refers to the complexity, personalization, and content of a message
Information Density
The total amount and quality of information available to all market participants, consumers, and merchants alike
Price Transparency
Refers to the ease with which consumers can fi nd out the variety of prices in a market
Cost Transparency
Refers to the ability of consumers to discover the actual costs merchants pay for products
Price Discrimination
Selling the same goods, or nearly the same goods, to different targeted groups at different prices
Personalization
Merchants can target their marketing messages to specific individuals by adjusting the message to a person’s name, interests, and past purchases
Customization
Changing the delivered product or service based on a user’s preferences or prior behaviour
Information Asymmetry
exists when one party in a transaction has more information that is important for the transaction than the other party
Menu Costs
Merchants’ costs of changing prices
Dynamic Pricing
The price of a product varies depending on the demand characteristics of the customer or the supply situation of the seller
Disintermediation
The removal of organizations or business process layers responsible for intermediary steps in a value chain
Digital Goods
Goods that can be delivered over a digital network (ex: music video…)
Business-To-Consumer (B2C) Electronic Commerce
Involves retailing products and services to individual shoppers
Business-To-Business (B2B) Electronic Commerce
Involves sales of goods and services among businesses
Consumer-To-Consumer (C2C) Electronic Commerce
Involves consumers selling directly to consumers (ex: eBay)
Mobile Commerce / M-Commerce
The use of handheld wireless devices for purchasing goods and services from any location
E-Commerce Business Models
- Portal- E-tailer- Transaction broker- Market creator- Content provider- Community provider- Service provider
E-Tailer
Online retail stores
Intellectual Property
A term that 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
Podcasting
A method of publishing audio or video broadcasts via the Internet, allowing subscribing users to download audio or video fi les onto their personal computers or portable music players
Streaming
A publishing method for music and video fi les that fl ows a continuous stream of content to a user’s device without storing it locally on the device
Transaction Brocker
Sites that process transactions for consumers normally handled in person, by phone, or by mail
Market Creators
Build a digital environment in which buyers and sellers can meet, display products, search for products, and establish prices
Service Provider
Offer services online
Community Providers
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
Revenue Model
Describes how the fi rm will earn revenue, generate profi ts, and produce a superior return on investment
Advertising Revenue Model
A Web site generates revenue by attracting a large audience of visitors who can then be exposed to advertisements. It is the most widely used revenue model in e-commerce
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
Subscription Revenue Model
A Web site offering content or services charges a subscription fee for access to some or all of its offerings on an ongoing basis
Free/ Freemium Revenue Model
Firms offer basic services or content for free while charging a premium for advanced or special features
Transaction Fee Revenue Model
A company receives a fee for enabling or executing a transaction
Affiliate Revenue Model
Web sites (called “affi liate Web sites”) send visitors to other sites in return for a referral fee or percentage of the revenue from any resulting sales.
Social Shopping
Sites where you can swap shopping ideas with friends
The Wisdom of Crowds
Argument 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
Crowdsourcing
Creat a contest to solve business problems
Prediction Markets
Established as peer-to-peer betting markets where participants make bets on specifi coutcomes
Behavioural targeting
Refers to tracking the click-streams of individuals on thousands of Web sites for the purpose of understanding their interests and intentions and exposing them to advertisements uniquely suited to their behaviour
Electronic Data Interchange (EDI)
Enables the computer-to-computer exchange between two organizations of standard transactions such as invoices, bills of lading etc… Transactions are automatically transmitted from one information system to another through a network, eliminating the printing and handling of paper at one end and the inputting of data at the other.
Procurement
Involves purchasing goods and materials but also sourcing, negotiating with suppliers, paying for goods, and making delivery arrangements
Private Industrial Networks / Private Exchange
Consist of a large firm using an extranet to link to its suppliers and other key business partners
Net marketplaces / E-Hubs
Provide a single, digital marketplace based on Internet technology for many different buyers and sellers. They are industry-owned or operate as independent intermediaries between buyers and sellers
Direct Goods
Goods used in a production process
Indirect Goods
All goods not directly involved in the production process, such as offi ce supplies or products for maintenance and repair
Exchanges
Independently owned third-party Net marketplaces that connect thousands of suppliers and buyers for spot purchasing
M-Commerce Services and Applications
- Location-Based Services- Banking and Financial Services- Wireless Advertising and Retailing- Games and Entertainment
Building an E-Commerce Web Site
- Building Decisions- Hosting Decisions- Web Site Budgets
Co-Location Agreement
The firm purchases or leases a Web server (and has total control over its operation) but locates the server in a vendor’s physical facility
Server Farms
Provide economy of scale for large cloud service providers (Oracle IBM HP)
