3003 IS Chap 9

  1. Ecommerce
    • began in 1995
    • use of the Internet and Web to transact business; digitally enabled transactions.
  2. Business applications that use Internet
    • -buying and selling products and services
    • -collaborating with other customers
    • -providing customer service
    • -offering vendor support
    • -making sw updates available
  3. Business types include
    • -brick and motar
    • -click and motar
    • -pureplay business
  4. Why is ecommerce different
    • 1. Ubiquity
    • 2.global reach
    • 3.Universal Standards
    • 4.Richness
    • 5. Interactivity
    • 6.Information Density
    • 7. Personalization/Customize
    • 8.Social Technology
  5. Ubiquity
    available anywhere and anytime

    enchanced customer convinience
  6. Global Reach
    it reaches across boundaries

    billions of customers and millions of businesses worldwide
  7. Universal Standards
    One set of technology standards

    market entry costs- markets must pay merchants to bring goods to market

    lower consumers search cost-effort required to find suitable product
  8. richness
    the complexity and content of message

    e commerce- supports video and audio chat

    effect:possible to deliver messages with text, audio to large number of people.
  9. interactivity
    e commerce can provide two way communication between merchant and consumer

    consumer becomes co-participant in process of delivering goods
  10. why ecommerce is different?
    information density-total amount and qualityof information available to all market

    • -greater price transparency-the ease of finding a cost of an item
    • -great cost transparency- the ability to find out the actual cost to merchants.

    enables merchants to engage in price discrimination.

    ability to target marketing messages to specific individuals

    customization-modification of a good

    social technology-allows users to share and create content
  11. Digital Markets
    • -info assymetry
    • -search costs
    • -transaction costs
    • -menu costs

    • digital markets enable
    • -price discrimination
    • -dynamic pricing
    • -disintermediation
  12. digital goods
    goods that can be delivered over a digitl network

    • costs over the internet very low
    • costs of producing the first unit almost entire cost of the product:marginal cost of second product is zero

    industires with digital goods are undergoing revolutionary changes
  13. Types of Ecommerce
    • B2C- business to cosumer
    • C2C- Consumer to consumer
    • B2B-business to business

    • G2C- government to consumer
    • G2B- government to business
    • G2G- government to government
  14. Business to Consumer
    businesses sell their products to consumers over the interent.

    may involve disintermediation

    • -ESHOP- online version of retail store
    • -Emall-consists of a number of E shops

    Priceline? what consumers like about it?

    • -menudriven pricing-company sets the price consumer pays
    • -reverse pricing-consumer specifies the price he or she is willing to pay, company accepts or rejects
  15. Consumer to consumer
    involves transactions between users

    • -craigslist
    • -ebay

    • pricing model
    • foward auction:sellers use the site as a selling channel to many buyers and the highest bid wins.
  16. Business to Business
    -involves electronic transactions between businesses

    • -fastes growing segment of ecommerce
    • -tend to be more complex and higer security needs

    • - reduces delivery time
    • -purchase orders, inventory, inventory status, shipping , logistics, business contacts, other operations
  17. B2B
    • -Intranets
    • -Extranets
    • -VPN Virtual Private Networks
    • -EDI Electronic data interchange
    • -Private Industrial networks
    • -Net marketplaces and exchanges
  18. EDI
    Electronic data inerchange
    computer comnputer exchange of standard transactions
  19. Private Industrial Networks
    large firm using extranet to link to its suppliers, distributors, and other key business partners

    reverse auction-vendors provide quotes to firm price they sell for, buyer selects the vender with the lowest bid.
  20. net marketplaces
    -single market for many buyers and sellers

    - industry owned by independent intermediary

    -generate fees from other transaction fees
  21. e government
    involves the use of internet technologies to transform governments by improving the delivery of services and enhancing the quality of interaction between citizen-consumer branches

    • G2C-
    • G2B
    • G2G
  22. Government to Citizen
    -renew drivers license, pasports, visas, medicare, medicaid benefits , social security, food stamps, public service announcemnt

    -consumer initiated transactions with government- elections/ voting, census
  23. government to busiess
    info about regulations, licenses, import, export , tariff info

    business initiated transactions to gov- filing info with SEC/EEO/IRS paying taxes, fees
  24. Government to Government
    governments exchaning info

    local-health department

    state-state budget, education, medicaid programs, statwide criminal records

    national-medicare programs,social security,transportation, national crime records, disaster assistance

    international-international trade agreements,treaties , immigration info
  25. m-commerce
    use of mobile devices using goods

    • steadiliy growing
    • -location based services
    • -banking and financial services
    • -wireless advertising
    • -games and entertainment
  26. E commerce business models
    • -Portals
    • -Etailer
    • -content provider
    • -transaction broker
    • -market creator
    • -service provider
    • -community provider
  27. E commerce revenue models
    • -banners
    • -sells
    • -subscirption
    • -free/fremium
    • -transaction
    • -affiliate
  28. most popular web 2.0 sevices
    social networking

    -set up their own profiles
  29. wisdom of crowds
    larger number of people can make better decisions about topics than a single person.

    variation of crowdsourcing-firms offer incentives to customers for solving a problem or coming up with an idea

    prediction market- peer to peer betting markets on specifc outcomes
  30. Ecommerce marketing
    long tail marketing- ability to reah large audience inexpensively

    • behavioral targeting-tracking online behavior of individuals on thousands of websites.
    • (clickstream data, personalization)

    advertising formats include search engine marketing,display adds, rich media, email
  31. search engine optimization
    improving the volume or quality of traffic to a website;

    • -editing a sites content and HTML code to increase its relevance to specific keywords.

    • -keywords
    • -page title
    • -impound links

    spamdexing-using a variety of deceptive techniques to manipulate search engine rankings
  32. Micropayments
    provide content providers with a cost effective method for processing high volumes of very small monetary transactions
  33. building ecommerce website

    to build a team
    • -techonology
    • -site design
    • -social and info policies
    • -hw, sw, and telecommunications infrastructure
  34. business drives the design technology
    not the reverse
  35. disadvantages
    • -bandwith
    • -accessiblity
    • -acceptance
    • -security issues
    • -potenital liability issues
    • -taxation rules
Card Set
3003 IS Chap 9
3003 IS Chap 9