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Chapter 2E-Marketplaces: Mechanisms, Tools, and Impacts of E-Commerce

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LEARNING OBJECTIVESDescribe the major electronic commerce (EC) activities and processes and the mechanisms that support them.Define e-marketplaces and list their components.List the major types of e-marketplaces and describe their features.Describe electronic catalogs, search engines, and shopping carts.2-1Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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LEARNING OBJECTIVESDescribe the major types of auctions and list their characteristics.Discuss the benefits, limitations, and impacts of auctions.Describe bartering and negotiating online.List the major Web 2.0 tools and their use in EC.Understand virtual worlds and their use in EC.2-2Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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E-MARKETPLACESe-marketplaceAn online market, usually B2B, in which buyers and sellers __________________________; the three types of e-marketplaces are _______, public, and _________.2-5Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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E-MARKETPLACESmarketspaceA marketplace in which sellers and buyers exchange goods and services for money (or for other goods and services), _______________________________________________________2-8Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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E-MARKETPLACESE-MARKETPLACE COMPONENTS AND PARTICIPANTSCustomers 1.6 billion people worldwide surf the web. Potential buyer of G/SSellers advertising and offering huge variety of itemsProducts and servicesdigital productsGoods that can be transformed to digital format and delivered over the Internet.Infrastructure electronic network, h/ware, s/ware etc2-9Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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E-MARKETPLACESfront end_______________________________________________ _______________________________________________ _______________________________________________

back endThe activities that support online order fulfillment, inventory management, ___________________________, payment processing, _________________, and delivery.intermediaryA third party that operates between sellers and buyers. 2-10Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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E-MARKETPLACESOther business partners In addition to intermediaries, several types of partners such as shippers, use internet to collaborate, mostly along the supply chain.- Support service different support service: certification and escrow service (to ensure security ) to content providers.disintermediation_____________________________________ _____________________________________2-11Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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E-MARKETPLACESTYPES OF E-MARKETPLACESPrivate E-Marketplaces____________________ e-marketplaceA private e-marketplace in which one company sells either standard and/or customized products to qualified companies. (One to many)____________________ e-marketplaceA private e-marketplace in which one company makes purchases from invited suppliers. (many to one; eg hotel)Public E-Marketplaces/ Exchange a__________ ________________________________________________2-12Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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CUSTOMER INTERACTION MECHANISMS: STOREFRONTS, MALLS, AND PORTALSWebstore (storefront)A single companys Web site where ________ _____________________________________ _____________________________________. Many Webstores target a specific industry and find their own unique corner of the market.2-13Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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CUSTOMER INTERACTION MECHANISMS: STOREFRONTS, MALLS, AND PORTALSELECTRONIC MALLS AND LARGE RETAILERSe-mall (online mall)An online shopping center where many online stores are located. TYPES OF STORES AND MALLSGeneral stores/malls. Specialized stores/mallsRegional versus global stores2-14Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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CUSTOMER INTERACTION MECHANISMS: STOREFRONTS, MALLS, AND PORTALSPure-play versus click-and-mortar stores

Web (information) portalWith the growing use of intranets and internet organizations encounter info overload. A single point of access, through a Web browser, to critical business information located inside and outside (via Internet) an organization.

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CUSTOMER INTERACTION MECHANISMS: STOREFRONTS, MALLS, AND PORTALSTypes of Portals Commercial (public) portalsCorporate portalsPublishing portalsPersonal portalsmobile portalA portal accessible via a mobile device.voice portalA portal accessed by telephone or cell phone.Knowledge portals2-17Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallFind the info

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CUSTOMER INTERACTION MECHANISMS: STOREFRONTS, MALLS, AND PORTALSTHE ROLES AND VALUE OF INTERMEDIARIES IN E-MARKETPLACESBrokersBuy/sell fulfillmentVirtual mallMetamediaryComparison agentShopping facilitatorMatching services

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CUSTOMER INTERACTION MECHANISMS: STOREFRONTS, MALLS, AND PORTALSinfomediariesElectronic intermediaries that provide and/or control information flow in cyberspace, often aggregating information and selling it to others.e-distributor2-19Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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ELECTRONIC CATALOGS, SEARCH ENGINES, AND SHOPPING CARTSelectronic catalogs (e-catalogs)The presentation of product information in an electronic form; the backbone of most e-selling sites.2-20Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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EC SEARCH ACTIVITIES, TYPES, AND ENGINESTypes of EC SearchesInternet/Web Searchenterprise searchThe practice of identifying and enabling specific content across the enterprise to be indexed, searched, and displayed to authorized users.

2-22Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallELECTRONIC CATALOGS, SEARCH ENGINES, AND SHOPPING CARTS

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desktop searchSearch tools that search the contents of a users or organizations computer files, rather than searching the Internet. The emphasis is on finding all the information that is available on the users PC, including Web browser histories, e-mail archives, and word processed documents, as well as in all internal files and databases.search engine

Software (Intelligent) AgentsVoice-Powered Search

2-23Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallELECTRONIC CATALOGS, SEARCH ENGINES, AND SHOPPING CARTS

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electronic shopping cartAn order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop.Product Configuration

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AUCTIONS, BARTERING, AND NEGOTIATING ONLINEauctionA competitive process in which a seller solicits consecutive bids from buyers ____________ _______________or a buyer solicits bids from sellers _____________. Prices are determined dynamically by the bids.2-25Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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TRADITIONAL AUCTIONS VERSUS E-AUCTIONSLimitations of Traditional Offline Auctionselectronic auctions (e-auctions)Auctions conducted online.INNOVATIVE AUCTIONS2-26Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallAUCTIONS, BARTERING, AND NEGOTIATING ONLINE

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dynamic pricingPrices that change based on supply and demand relationships at any given time.TYPES OF AUCTIONSOne Buyer, One SellerOne Seller, Many Potential Buyersforward auctionAn auction in which a seller entertains bids from buyers. Bidders increase price sequentially.2-27Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallAUCTIONS, BARTERING, AND NEGOTIATING ONLINE

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One Buyer, Many Potential Sellersreverse auction (bidding or tendering system)

name-your-own-price modelAuction model in which a would-be buyer specifies the price (and other terms) he or she is ________________ ______________________. It is a C2B model that was pioneered by Priceline.com.2-28Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallAUCTIONS, BARTERING, AND NEGOTIATING ONLINE

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Many Sellers, Many Buyersdouble auction2-30Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallAUCTIONS, BARTERING, AND NEGOTIATING ONLINE

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Limitations of E-AuctionsMinimal SecurityPossibility of FraudLimited ParticipationImpacts of AuctionsAuctions as a Social Mechanism to Determine a PriceAuctions as a Highly Visible Distribution MechanismAuctions as an EC Component in a Business ModelAuctions for Profit for Individuals2-32Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallAUCTIONS, BARTERING, AND NEGOTIATING ONLINEBook pg 102

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barteringThe exchange of goods and services.e-bartering (electronic bartering)Bartering conducted online, usually in a bartering exchange.bartering exchangeA marketplace in which an intermediary arranges barter transactions.ONLINE NEGOTIATING2-33Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallAUCTIONS, BARTERING, AND NEGOTIATING ONLINE

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WEB 2.0 TOOLS AND SERVICES: FROM BLOGS TO WIKIS TO TWITTERBLOGGING (WEBLOGGING)blogA personal Web site that is open to the public to read and to interact with; dedicated to specific topics or issues.vlog (or video blog)A blog with video content.Building Effective Blogs2-34Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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WEB 2.0 TOOLS AND SERVICES: FROM BLOGS TO WIKIS TO TWITTERmicrobloggingA form of blogging that allows users to write messages (usually up to 140 characters) and publish them, either to be viewed by anyone or by a restricted group that can be chosen by the user. text messaging, instant messaging, e-mail, MP3, or just on the Web.2-35Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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WEB 2.0 TOOLS AND SERVICES: FROM BLOGS TO WIKIS TO TWITTERTwitterA free microblogging service that allows its users to send and read other users updates.tweetsText-based posts up to 140 characters in length posted to Twitter.Commercial Uses of BlogsPotential Risks of Corporate Blogs2-36Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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WEB 2.0 TOOLS AND SERVICES: FROM BLOGS TO WIKIS TO TWITTERMECHANISM AIDS FOR WEB 2.0 TOOLS: TAGS, FOLKSONOMY, AND SOCIAL BOOKMARKStagA nonhierarchical keyword or term assigned to a piece of information (such as an Internet bookmark, digital image, video clip, or any computer document).2-37Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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folksonomy (collaborative tagging, social classification, social indexing, social tagging)

social bookmarkingWeb service for sharing Internet bookmarks. The sites are a popular way to store, classify, share, and search links through the practice of folksonomy techniques on the Internet and intranets.2-38Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallWEB 2.0 TOOLS AND SERVICES: FROM BLOGS TO WIKIS TO TWITTER

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wiki (wikilog)

SOCIAL NETWORK SERVICES

2-39Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallWEB 2.0 TOOLS AND SERVICES: FROM BLOGS TO WIKIS TO TWITTER

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VIRTUAL WORLDS AS AN ELECTRONIC COMMERCE MECHANISMAvatarsAnimated computer characters that exhibit humanlike movements and behaviors.BUSINESS ACTIVITIES AND VALUE IN VIRTUAL WORLDS2-40Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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MANAGERIAL ISSUESShould we auction?Should we barter?How do we select merchant software?How can we use Web 2.0 tools?Shall we take part in virtual worlds?

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