Topic 4 - E-business and E-commerce Flashcards
Electronic commerce
The process of buying, selling, transferring, or exchanging products, services, or information through computer networks, including internet.
Electronic business
Servicing customers, collaborating with business partners, and performing electronic transactions within an organization, in addition to buying and selling goods.
The degree of digitization
The extent to which the commerce has been transformed form physical to digital.
Brick-and-mortar organizations
Organizations in which the product, the process, and the delivery agent are all physical.
Virtual (or pure play) organizations
Organizations in which the product, the process, and the delivery agent are all digital.
Clicks-and-mortar organizations
Organizations that do business in both the physical and digital dimensions.
Business-to-consumer electronic commerce (B2C)
The sellers are organizations, and the buyers are individuals.
Business-to-business electronic commerce (B2B)
Both the sellers and buyers are business organizations.
- Comprises the vast majority of EC volume.
Consumer-to-consumer electronic commerce (C2C)
An individual sells products or services to other individuals.
- Major strategies for conducting C2C on the internet are auctions and classified ads.
Business-to-employee (B2E)
Organizations use EC internally to provide information and services to its employees.
- Ex., companies allow employees to manage their benefits and to take training classes electronically. Employees can buy discounted insurance, travel packages, and tickets to events on the corporate intranet. Many companies have electronic corporate stores that sell their products to their employees, usually at a discount.
E-government (G2C and G2B)
The use of internet tech. and e-commerce to deliver information and public services to citizens (G2C) and to business partners and suppliers (G2B).
- G2C ex., requesting a birth certificate online, or registering online for sports activities run by your municipality.
Mobile commerce
E-commerce that is conducted entirely in a wireless environment.
- Ex., using cellphones to shop over the internet.
Social commerce
The delivery of electronic commerce activities and transactions through social computing.
Conversational commerce
A type of e-commerce that uses natural language processing to engage in various means of conversation.
- Ex. online chat messaging apps, chatbots on messaging apps or websites, and voice assistants.
Business model
The method by which a company generates revenue to sustain itself.
Electronic catalogues
Consists of a product database, a directory and search capabilities, and a presentation function.
- Backbone of most e-commerce sites.
Auction
A competitive buying and selling process in which prices are determined dynamically by competitive bidding.
Forward auction
Auctions that sellers use as a selling channel to many potential buyers; the highest bidder wins the items.
Reverse auctions
Auctions in which on buyer, usually an organization, seeks to buy a product or a service, and suppliers submit bids; the lowest bidder wins.
Electronic marketplace
A virtual market space on the Web where many buyers and many sellers conduct electronic business activities.
- Ex., FB marketplace.
Electronic payment mechanisms
Computer-based systems that allow customers to pay for goods and services electronically, rather than writing a cheque or using cash.
Electronic cheques
Customer emails an encrypted electronic cheque to the seller.
Electronic credit (or debit) cards
Allows customers to charge online payments to their credit (or debit) account.
- Mainly used in B2C and in shopping by small and medium-sized enterprises (SMEs)
Purchasing cards
B2B equivalent of electronic credit cards
- Payments made are settled within a week.
Stored-value money cards
Allow you to store a fixed amount of prepaid money and then spend it as necessary.
- Ex., Presto cards and gift cards.
EMV smart cards
Contain a chip that can store a large amount of info as well as a magnetic stripe for backward compatibility.
- EMV stands for Europay, Mastercard, and Visa, the three companies that originally created the standard.
Electronic retailing (e-tailing)
The direct sale of products and services through electronic storefronts or electronic malls, usually designed around an electronic catalogue format and auctions.
Electronic storefront
The website of a single company, with its own internet address, at which orders can be placed.
Electronic mall
A collection of individual shops under one internet address; also known as a cybermall or an e-mall.
Disintermediation
Elimination of intermediaries in electronic commerce.
2 Functions of intermediaries
- They provide information.
- They perform value-added services such as consulting.
Fintech
An industry composed of companies that use technology to compete in the marketplace with traditional financial institutions and intermediaries in the delivery of financial services, which include banking, insurance, real estate, and investing.
Channel conflict
The alienation of existing distributors when a company decides to sell to customers directly online.
Mutlichanneling
A process in which a company integrates it online and off-line channels.
Order fulfillment
Anytime a company sells directly to customers, it must complete order fulfillment activities.
- quickly find the products to be shipped; pack them; arrange for the packages to be delivered speedily to the customer’s door; collect the money from every customer, either in advance, on delivery, or by individual billing; and handle the return of unwanted or defective products.
- It can be very difficult to accomplish these activities because a company has to ship small packages to many customers quickly.
Personalized pricing
The practice of pricing items at a point determined by a particular customer’s perceived ability to pay.
Sell-side marketplace
B2B model in which organizations sell to other organizations from their own private e-marketplace or from a third-party site.
- Key mechanisms are forward auctions and electronic catalogues
Buy-side marketplace
B2B model in which organizations buy needed products or services from other organizations electronically, often through reverse auctions.
Public exchanges (or exchanges)
Electronic marketplaces in which there are many sellers and many buyers, and entry is open to all; frequently owned and operated by a third party.
Vertical exchanges
Connect buyers and sellers in a given industry
Horizontal exchanges
Connect buyers and sellers across many industries
