Chapter 7 Summary

 

E-Commerce (EC):  Is trade by the internet.          

E-business:  Is a broader definition of EC.

Brick-and-mortar:  purely physical organizations

 

Click-and-mortar:  Organizations are those that conduct some EC activities, yet their business is primarily done in the physical world [multichannneling]

 

 Pure Play:  Organizations that are engaged only in EC.

Types of E-Commerce:                                

Business-to-Consumer (B2C):
The sellers are organizations and the buyers are individuals

 

Business-to-Business (B2B):

Both the sellers and buyers are business organizations

 

Consumer-to-Consumer (C2C):

Both the sellers and buyers are individuals.

 

Business-to-Employee (B2E):  

An organization uses e-commerce internally to provide information and services to its employees.

E-Government (E-Gov.): 

The use of Internet technology to deliver information about public services to citizens (Government-to-Citizen [G2C]), business partners and suppliers (called government-to-business [G2B]) and between governments [G2G].

 

Mobile Commerce (m-commerce): 

E-commerce that is conducted using a mobile phone.

 

E-Commerce Business Models:

Online Direct Marketing:  manufacturers sell directly to customers.

 

Electronic Tendering System:  Businesses (or governments) request quotation from suppliers [uses B2B or G2B]

 E-auction :  An auction which is held over the Internet.

Name-your-own-price:  Customers decide how much they want to pay.

 

Find-the-best-price:  Customers specify a need and an intermediary compares providers and shows the lowest price.

 

Affiliate marketing: Vendors ask partners to place logos or banners on partner’s site.

Viral marketing: Receivers send information about your product to their friends.

 

Group purchasing:  Small buyers aggregate demand to get a large volume discount.

 

Product customization: Customers use the Internet to self-configure products or services.

Deep discounters: Company offers deep price discounts. Appeals to customers who consider only price in their purchasing decisions

Membership: Only members can use the services provided, including access to certain information, conducting trade.

Benefits of E-Commerce:        

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Benefits to organizations:

• Makes national and international markets more accessible
• Lowering costs of processing, distributing, and retrieving information

Benefits to customers:

• Access a vast number of products and services around the clock (24/7/365).

Benefits to Society:

• Ability to easily and conveniently deliver information, services and products to people in cities, rural areas and developing countries.

Limitations of E-Commerce:

Technological Limitations:

• Lack of universally accepted security standards
• Insufficient telecommunications bandwidth
• Expensive accessibility

Non-technological Limitations: 

• Perception that EC is unsecure
• Unresolved legal issues
• Lacks a critical mass of sellers and buyers.

Business-to-Consumer B2C:           

 

Electronic retailing (E-tailing): the direct sale of products and services through the Internet

• E-marketplace
• E-storefront
• E-mall/ Cybermall

 

Online Service Industries:

 

  

Business-to-Business (B2B):

In B2B e-commerce, the buyers and sellers are organizations

There are several business models for B2B applications:

• B2B Sell-Side Marketplace
• B2B Buy-Side Marketplace
• Electronic Exchanges

Electronic Payments :

Implementing EC typically requires E-payment  

E-payment systems enable you to pay for goods and services electronically.

• E-check
• E-credit card
• Purchasing card
• Electronic cash

Ethical and Legal Issues:

• Privacy:
• Fraud on the Internet 
• Domain Name Competition
• Cybersquatting
• Taxes and other Fees
• Copyright