MIS: Exam 3 - Ch 10 Flashcards
Term: The web is available anywhere/anytime
Ubiquity
Term: commerce across cultural and national boundaries
Global Reach
Term: technology standards enabled connectivity
Universal Standards
Term: audio, video and text enhance marketing messages
Richness
Term: two-way interaction, engaging consumers in dialog
Interactivity
Term: increased amount and quality of information, greater price/cost transparency, enables price discrimination
Information Density
Term: modification of messages and goods
Personalization/Customization
Term: promotes user content creation and distribution
Social Technology
E-Commerce’s Unique Features
Ubiquity, Global Reach, Universal Standards, Richness, Interactivity, Information Density, Personalization/Customization, and Social Technology
Digital Markets Reduce: one party in a transaction having more information related to the transaction. (transparency, ex. Cars)
Information Asymmetry
Digital Markets Reduce: merchants costs of changing prices.
Menu Costs
Digital Markets Enable: price of a product varies depending on demand characteristics of the customer or supply situation of seller.
Dynamic Pricing
Digital Markets Reduce: The cost of participating in a market
Transaction Costs
Digital Markets Reduce: The effort required to find suitable products
Search Costs
Digital Markets Enable: Selling the same goods, or nearly the same goods, to different target groups at different prices.
Price Discrimination
Digital Markets Enable: Removal of layers responsible for intermediary steps in a value chain
Disintermediation
Term: are delivered electronically, cost of producing first unit is almost the entire cost of product. Marginal costs is virtually zero.
Digital goods
Types of E-Commerce
Business-to-consumer (B2C), Business-to-business (B2B), Consumer-to-consumer (C2C), Mobile e-commerce (m-commerce)
E-Commerce Business Models: Sells physical products directly to consumers or to individual businesses
E-tailer
E-Commerce Business Models: Saves users money and time by processing online sales transactions and generating a fee each time a transaction occurs.
Transaction Broker
E-Commerce Business Models: Provides digital environment where buyers and sellers can meet, search for products, display products, and establish prices for them. Can serve consumers or B2B e-commerce, generating revenue from transaction fees.
Market Creator
E-Commerce Business Models: Creates revenue by providing digital content, such as news, music, photos, or video, over the Web. Customer may pay to access the content or revenue may be generated by selling advertising space.
Content Provider
E-Commerce Business Models: Provides an online meeting place where people with similar interests can communicate and find useful information.
Community Provider
E-Commerce Business Models: Provides initial point of entry to the Web along with specialized content and other services.
Portal
E-Commerce Business Models: Provides Web 2.0 applications such as photo sharing, video sharing, and user-generated content as services. Provides other services such as online data storage and backup.
Service Provider
6 E-Commerce Revenue Models:
Advertising, Sales, Subscription, Free/Freemium, Transaction Fee, Affiliate
E-Commerce Revenue Models: Attract a large audience and advertise to them. Most widely used model in e-commerce, aids in providing “free” content to users. (98% of Google’s revenue)
Advertising
E-Commerce Revenue Models: Amazon.com, Micropayments systems
Sales
E-Commerce Revenue Models: Netflix, Hulu, Xbox, Match.com, Ancestry.com
Subscription
E-Commerce Revenue Models: Google, Pandora, Dropbox, Apple iCloud
Free/Freemium
E-Commerce Revenue Models: eBay, eTrade, Amazon Seller
Transaction Fee
E-Commerce Revenue Models: Referrals, Community Site, Bloggers, etc.
Affiliate
Most popular Web 2.0 service
social networking
Term: Use of websites featuring user-created web pages to share knowledge about items of interest to other shoppers. (Swap Shopping ideas with friends)
Social Shopping
Using large internet audiences for advice, market feedback, new ideas and solutions to business problems. (related to “wisdom of crowds” theory)
Crowd Sourcing
The belief 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. (sum of the whole system is greater than the sum of its parts)
Wisdom of Crowds
E-Commerce Marketing: Ability to market goods and services to very small online audiences, due to reduced costs of reaching those small market segments. (tails of a bell curve)
Long tail marketing
E-Commerce Marketing: Tracking online behavior (click-streams) of individuals on thousands of sites to better understand their interests and intentions
Behavioral targeting
search engine marketing, display ads, rich media, and e-mail are all
Advertising formats
Business-to-business e-commerce: Computer-to-computer exchange of standard transactions
Electronic data interchange (EDI)
Business-to-business e-commerce: Large firm using extranet to link to its suppliers, distributors and other key business partners. Owned by buyer and Permits sharing of: Product design and development, Marketing, Production scheduling and inventory management, Unstructured communication (graphics and e-mail)
Private industry networks (private exchanges)
Business-to-business e-commerce: Single market for many buyers and sellers
Industry-owned or owned by independent intermediary
Generate revenue from transaction fees, other services
Use prices established through negotiation, auction, RFQs, or fixed prices
May focus on direct or indirect goods
May be vertical or horizontal marketplaces
Net marketplaces (e-hubs)
Business-to-business e-commerce: Independently owned third-party Net marketplaces. Connect thousands of suppliers and buyers for spot purchasing. Typically provide vertical markets for direct goods for single industry (food, electronics)
Exchanges (third-party owned)
