Chapter 7 - E_commerce

8/13/2019 Chapter 7 - E_commerce

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CHAPTER 7E - COMMERCE





E-Commerce

Electronic Commerce : buying and selling of products, servicesand information via computer networks, primarily theInternet

TYPES

Business-to-business EC (B2B)Collaborative commerce (c-commerce)Business-to-consumer EC (B2C)Consumer-to-businesses (C2B)

Consumer-to-consumer (C2C)Intrabusiness (intraorganizational) commerceGovernment-to-citizens (G2C) and othersMobile commerce (m-commerce)



E-Commerce from Different Perspectives:

Communications• EC is the delivery of goods, services, information, or payments

over computer networks or by other electronic means.

Business process• EC is the application of technology toward the automation of

business transactions and work flow.

Service• EC is a tool that addresses the desire of firms, consumers, and

management to cut service costs while improving the qualityof customer service and increasing the speed of service

delivery.



E-Commerce from Different

Perspectives:Online• EC provides the capability of buying and selling

products and information on the Internet and other

online services.

Community•

EC provides a gathering place for communitymembers, to learn, transaction and collaborate.



E-Commerce History and Scope • History

– Began in the early 1970s (long before the Internetwas open to commercial use)

– Limited to large businesses initially

• Scope Today Includes – advertising – home banking – shopping in electronic stores and malls – finding a job – conducting an auction – collaborating electronically with business partners

around the glob



EC Benefits to Organizations

1. Reduced cost:

– Reach a large number of customers at littlecost

– Procure material and services from othercompanies at less cost

– Shorten marketing distribution channels andreduce marketing costs

– Decrease the cost of creating, processing,

distributing, storing, and retrieving paper-based information – Lower telecommunications costs because the

Internet is much cheaper than value-addednetworks (VANs)



EC Benefits to Organizations

2. Increased customer base: – Broaden markets – Find niche markets (e.g. www.dogtoys.com )

3. Reduced cycle time: – Procure material and services from other companies

rapidly – Reduce the time between the outlay of capital and

the receipt of products and services

4. Helps small businesses compete against largecompanies

http://www.dogtoys.com/

http://www.dogtoys.com/



EC Benefits to Customers

1. Choice

– Consumers can select from many vendors and

many more products than they could locateotherwise – Consumers can get customized products , from

PCs to cars, at competitive or bargain prices – Consumers can find unique products and

collectors’ items through virtual auctions.



EC Benefits to Customers

2. Convenience

– Consumers can conduct online quick comparisons tofind less expensive products and services

– Customers can shop or make other transactions 24hours a day, year round , from almost any location

– Product information immediately available 24 hours

a day, year round , from almost any location – Consumers can interact with other consumers in

electronic communities and can exchange ideas aswell as compare experiences



EC Benefits to Society

1. Convenience – Enables more individuals to work at home and to do

less traveling

2. Access – Allows some merchandise to be sold at lower prices – Enables people in less developed countries and rural

areas to enjoy products and services that otherwise are not available to them

– Facilitates delivery of public services , such asgovernment entitlements, reducing the cost ofdistribution and fraud,

health care and education



Business-to-Consumer EC

•

Electronic Storefronts and Malls – Electronic retailing can be conducted via solostorefront or as a part of cybermall

• Issues of e-tailing – May be channel conflict and conflict with

existing stores –

Difficult to fulfill large quantity of very smallorders – Incorrect business model (advertising revenue

versus profitable sales)



Business-to-Consumer EC• Several market sectors have taken advantages

of business opportunities on the web

• Most popular market segment: – Retail – Finance – Entertainment and media – Travel – Health




•

Personalization –

ability to customizeproduct, service, advertisement, orcustomer service

•

B2C EC enables personalization at low cost

• Internet enables marketing research – Questionnaires

• Usually involve some inducement – Direct behavior observation

• Cookies or site tracking services




•

Use of intelligent agents – Help customers determine what to buy – Search for and compare vendor prices – Collect information and develop customer profiles

• Online advertising – Banners

• Keyword banners• Random banners

– Direct email – Pop-up windows




• Providing Customer Service

– Help customer determine needs – Help customer acquire product or service – Support customer during ownership of product

or service – Help customer dispose of product or service



Business-to-Business EC • Composes the majority of EC volume•

Enables organizations to form electronicrelationships• Covers all activities along the supply chain• Business Models:

–

Sell-Side Marketplace • Organizations sell products to otherorganizations electronically.

– Buy-Side Marketplace •

Buyers post needs; sellers submit bids – Electronic Exchanges

• Electronic marketplaces link many buyers andmany sellers





Electronic Commerce Innovations • E-Government – deliver information and public

services to citizens and members of the publicsector

• M-Commerce – use of wireless devices todeliver mobile e-commerce

• Consumer-to-consumer EC – direct interactionfacilitated by auctions, classifieds, and bartering

• Intrabusiness EC – business units interact oremployees interact with employers

Documents

Chapter 7 - E_commerce