week 10: E business Flashcards
E-commerce (EC)
the process of buying, selling, transferring or exchanging products, services or information via computer networks, including the Internet
E-business
in addition to EC
e-business also refers to servicing customers, collaborating with business partners, and performing electronic transactions within an organization
Brick-and-mortar organizations
purely physical
Virtual organizations
engaged only in ED (also called “pure play”)
Click-and-mortar
conduct some e-commerce activities, yet their business is primarily done in the physical world
Buy books at university bookstore in person
Brick-and-mortar, Partial EC or Pure EC?
Bricks-and-mortar
Use Internet to order physical book from Amazon
Brick-and-mortar, Partial EC or Pure EC?
Partial EC
Order and download e-book from Amazon
Brick-and-mortar, Partial EC or Pure EC?
Pure EC
Business-to-Consumer (B2C)
business sells to consumers
Business-to-Business (B2B)
business sells to business
Consumer-to-Consumer (C2C)
consumers sell to consumers
Business-to-Employee (B2E)
business interacts with employees (e.g. pays payroll)
Government-to-Citizen (G2C) or Government-to- Business (G2B)
government interacts with consumers or business (e.g. collects taxes)
Mobile Commerce (m-commerce)
any of the e-commerce types handled using mobile systems
Types of E-commerce
Business-to-Consumer (B2C)
Business-to-Business (B2B)
Consumer-to-Consumer (C2C)
Business-to-Employee (B2E)
Government-to-Citizen (G2C)
Government-to- Business (G2B)
Mobile Commerce (m-commerce)
Online direct marketing
selling online directly to customers
Electronic tendering system
B2B reverse auction
involves requesting quotes from suppliers
Name-your-own-price
using an intermediary
customers decide how much they are willing to pay
Name-your-own-price
using an intermediary
customers decide how much they are willing to pay
Find-the-best-price
intermediaries search for and provide the best price for what customers want
Affiliate marketing
logos or banners are placed on partner sites
if purchases are made then the advertiser pays a commission to the affiliate
Affiliate marketing
logos or banners are placed on partner sites
if purchases are made then the advertiser pays a commission to the affiliate
Viral marketing
“friend marketing”
relying on people to tell their friends electronically about products
Group purchasing (e-coops)
groups of buyers negotiate volume discounts
Online auctions
products are auctioned online
Product customization
online self-configuration of products that are individually produced
Electronic marketplaces and exchanges
online private (one seller) or public (many sellers) marketplaces attract many buyers
Bartering Online
exchanges or sales of products without the exchange of cash using an intermediary
(i.e. auction using “points”)
Deep discounters
online direct sales at low prices (i.e. deeply discounted) for special promotions or “fire sales” e.g. ends of lines
two types of online auctions
Forward auctions
Reverse auctions
Forward auctions
try to obtain the highest amount for a product or service placed on sale by a buyer
increases sales prices over time
ex: eBay
Reverse auctions
the buyer tries to obtain the lowest price from a seller by requesting a quote
lowers buying prices over time
ex: Merx
Forward auctions
try to obtain the highest amount for a product or service placed on sale by a buyer
ex: eBay
Reverse auctions
the buyer tries to obtain the lowest price from a seller by requesting a quote
benefits of e-commerce to organizations
Makes national and international markets more accessible
Lowering costs of processing, distributing, and retrieving information
benefits of e-commerce to customers
Access a vast number of products and services around the clock (24/7/365)
benefits of e-commerce to organizations
Makes national and international markets more accessible
Lowering costs of processing, distributing, and retrieving information
benefits of e-commerce to customers
Access a vast number of products and services around the clock (24/7/365)
benefits of e-commerce to society
Ability to easily and conveniently deliver information, services, and products to people in cities, rural areas, and developing countries
benefits of e-commerce to society
Ability to easily and conveniently deliver information, services, and products to people in cities, rural areas, and developing countries
Technological Limitations to e-commerce
Lack of universally accepted security standards
Insufficient telecommunications bandwidth in some areas
Expensive accessibility to the web in some countries or regions
non-technological Limitations to e-commerce
E-commerce is insecure
There are unresolved legal issues
It lacks a critical mass of sellers and buyers
Electronic storefronts (e-storefronts)
have a unique URL for a single organization
they can be extensions of physical stores
Electronic malls (e-malls)
have many individual shops also grouped under a single URL
Referral malls
Purchasing malls
disintermediation
the function(s) of intermediaries is automated or eliminated in online service industries
Purchasing malls
provide a common shopping cart for multiple vendors
Online service
customers accessing services via the Web
Intermediaries or middlemen provide information and/or provide value-added services
disintermediation
the function(s) of intermediaries is automated or eliminated in online service industry
online service industries
Cyberbanking
Online securities trading
Online job market
Travel services
Online advertising
online advertising methods
Banners (example of a banner ad below)
Pop-up ad
Pop-under ad
Spamming
Permission marketing
Viral marketing
online advertising methods
Banners (example of a banner ad below)
Pop-up ad
Pop-under ad
Spamming
Permission marketing
Viral marketing
problems in e-tailing
Channel conflict
Showrooming
Order fulfillment
Channel conflict
occurs when clicks-and-mortar companies may face a conflict with their regular distributors when they sell directly to customers on-line
Showrooming
shoppers visit a bricks-and-mortar store to look at products in person, then research the product online, often buying it elsewhere
Sell-side marketplaces Key mechanisms
electronic catalogues and forward auctions
main solution to channel conflict, show rooming, and order fulfillment
Multichannelling
Multichannelling
a process many companies use to integrate their on-line and off-line channels
also known as omni-channelling
B2B Sell-side marketplace
organizations sell their products or services to other organizations electronically from their own Web site and/or from a third-party Web site.
types of electronic exchanges
private exchanges
public exchanges
B2B buy-side marketplace
a model in which organizations attempt to buy needed products or services from other organizations electronically
buy-side marketplaces Key mechanisms
reverse auctions
types of public exchanges
vertical
horizontal
functional
types of electronic exchanges
private exchanges
public exchanges
private exchanges
have one buyer and many sellers
public exchanges
E-marketplaces
independently owned by a third party and connect many sellers and many buyers
types of public exchanges
vertical
horizontal
functional
vertical public exchanges
connect buyers and sellers in a given industry
horizontal public exchanges
Exchanges connect buyers and sellers across many industries
functional public exchanges
provide needed services such as temporary help or extra office space on an “as-needed” basis
Ethical Issues with e commerce
Privacy
Tracking
Use of the Internet for illegal or unethical purposes
Fraud on the Internet
fraudulent activity
Cybersquatting
practice of registering or using domain names for the purpose of profiting from the goodwill or the trademark that belongs to someone else
Domain Tasting
a practice of registrants using the five-day “grace period” at the beginning of a domain registration to profit from pay-per-click advertising
