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Overview of Electronic Commerce

Learning Objectives
1. 2. 3. 4. 5.

Define electronic commerce (EC) and describe its various categories. Describe and discuss the content and framework of EC. Describe the major types of EC transactions. Discuss e-commerce 2.0. Describe social commerce and social software.

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Learning Objectives
6. Understand the elements of the digital world. 7. Describe the drivers of EC as they relate to business

pressures and organizational responses. 8. Describe some EC business models. 9. Describe the benefits of EC to organizations, consumers, and society. 10. List and describe the major limitations of EC.

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Electronic Commerce: Definitions and Concepts


electronic commerce (EC) The process of buying, selling, or exchanging products, services, or information via computer e-business A broader definition of EC that includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organization

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Electronic Commerce: Definitions and Concepts


MAJOR EC CONCEPTS Pure Versus Partial EC EC Organizations

brick-and-mortar (old economy) organizations Old-economy organizations (corporations) that perform their primary business offline, selling physical products by means of physical agents virtual (pure-play) organizations Organizations that conduct their business activities solely online click-and-mortar (click-and-brick) organizations
Organizations that conduct some e-commerce activities, usually as an additional marketing channel
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Electronic Commerce: Definitions and Concepts


ELECTRONIC MARKETS AND NETWORKS electronic market (e-marketplace) An online marketplace where buyers and sellers meet to exchange goods, services, money, or information intranet An internal corporate or government network that uses Internet tools, such as Web browsers, and Internet protocols extranet A network that uses the Internet to link multiple intranets
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The Electronic Commerce Field: Classification, Content, and a Brief History


AN EC FRAMEWORK EC applications are supported by infrastructure and by the following five support areas:
1. 2. 3. 4. 5.

People Public policy Marketing and advertising Support services Business partnerships

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The Electronic Commerce Field: Classification, Content, and a Brief History


CLASSIFICATION OF EC BY THE NATURE OF THE

TRANSACTIONS AND THE RELATIONSHIPS AMONG PARTICIPANTS


business-to-business (B2B)

E-commerce model in which all of the participants are businesses or other organizations business-to-consumer (B2C) E-commerce model in which businesses sell to individual shoppers e-tailing Online retailing, usually B2C
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The Electronic Commerce Field: Classification, Content, and a Brief History


business-to-business-to-consumer (B2B2C)

E-commerce model in which a business provides some product or service to a client business that maintains its own customers consumer-to-business (C2B) E-commerce model in which individuals use the Internet to sell products or services to organizations or individuals who seek sellers to bid on products or services they need

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The Electronic Commerce Field: Classification, Content, and a Brief History


intrabusiness EC

E-commerce category that includes all internal organizational activities that involve the exchange of goods, services, or information among various units and individuals in an organization business-to-employees (B2E) E-commerce model in which an organization delivers services, information, or products to its individual employees

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The Electronic Commerce Field: Classification, Content, and a Brief History


consumer-to-consumer (C2C)

E-commerce model in which consumers sell directly to other consumers collaborative commerce (c-commerce) E-commerce model in which individuals or groups communicate or collaborate online e-government E-commerce model in which a government entity buys or provides goods, services, or information from or to businesses or individual citizens
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The Electronic Commerce Field: Classification, Content, and a Brief History


A BRIEF HISTORY OF EC The Interdisciplinary Nature of EC The Google Revolution f-commerce E-commerce activities conducted on Facebook or influenced by the site EC Failures EC Successes THE FUTURE OF EC
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E-Commerce 2.0: From Social Commerce to Virtual Worlds


social computing

An approach aimed at making the humancomputer interface more natural Web 2.0 The second generation of Internet-based services that lets people collaborate and share information online in new ways, such as social networking sites, wikis, communication tools, and folksonomies

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E-Commerce 2.0: From Social Commerce to Virtual Worlds


social network

A category of Internet applications that help connect friends, business partners, or individuals with specific interests by providing free services such as photo presentation, e-mail, blogging, and so on using a variety of tools

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E-Commerce 2.0: From Social Commerce to Virtual Worlds


social networking service (SNS)

A service that builds online communities by providing an online space for people to build free homepages and that provides basic communication and support tools for conducting different activities in the social network social networking The creation or sponsoring of a social network service and
any activity, such as blogging, done in a social network (external or internal)

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E-Commerce 2.0: From Social Commerce to Virtual Worlds


ENTERPRISE SOCIAL NETWORKS social commerce

The e-commerce activities conducted in social networks and/or by using social software (i.e., Web 2.0 tools)

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E-Commerce 2.0: From Social Commerce to Virtual Worlds


VIRTUAL WORLDS AND SECOND LIFE virtual world

A user-defined world in which people can interact, play, and do business; the most publicized virtual world is Second Life
How Students Make Money in a Virtual World

THE MAJOR TOOLS OF WEB 2.0 Wikis RSS feeds Blogs Microblogs (e.g.,Twitter)
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The Digital World: Economy, Enterprises, and Society


digital economy

An economy that is based on digital technologies, including digital communication networks, computers, software, and other related information technologies; also called the Internet economy, the new economy, or the Web economy

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The Digital World: Economy, Enterprises, and Society


digital enterprise

A new business model that uses IT in a fundamental way to accomplish one or more of three basic objectives: reach and engage customers more effectively, boost employee productivity, and improve operating efficiency; uses converged communication and computing technology in a way that improves business processes
corporate portal

A major gateway through which employees, business partners, and the public can enter a corporate website.

THE DIGITAL SOCIETY


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The Changing Business Environment, Organizations Response, and EC Support


THE CHANGING BUSINESS ENVIRONMENT PERFORMANCE, BUSINESS PRESSURES, AND

ORGANIZATIONAL RESPONSES AND EC SUPPORT


Impact Model Business Pressures Organizational Response Strategies

The Business Environment and Performance

The support of EC
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The Major Capabilities of E-Commerce


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Electronic Commerce Business Models


business model

A method of doing business by which a company can generate revenue to sustain itself

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Electronic Commerce Business Models


THE STRUCTURE AND PROPERTIES OF

BUSINESS MODELS
Revenue Models value proposition

The benefits a company can derive from using EC Functions of a Business Model

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Electronic Commerce Business Models


TYPICAL EC BUSINESS MODELS 1. Online direct marketing 2. tendering (bidding) system Model in which a buyer requests would-be sellers to submit bids; the lowest bidder wins. 3. Electronic marketplaces and exchanges 4. Viral marketing 5. Group purchasing

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Benefits, Limitations, and Impacts of Electronic Commerce


THE BENEFITS AND IMPACTS OF EC EC as a Provider of Competitive Advantage THE LIMITATIONS AND BARRIERS OF EC ethics The branch of philosophy that deals with what is considered to be right and wrong WHY STUDY E-COMMERCE?

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Managerial Issues
1. 2. 3. 4. 5.

Is EC real? Why is B2B e-commerce so essential and successful? Which EC business model should I choose? How can we exploit social commerce? What are the top challenges of EC today?

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Summary
1. 2. 3. 4. 5.

Definition of EC and description of its various categories The content and framework of EC The major types of EC transactions E-commerce 2.0 Description of social commerce and social software

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Summary
6. The elements of the digital world 7. The drivers of EC 8. The major EC business models 9. Benefits of EC to organizations, consumers, and

society 10. Limitations of e-commerce

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

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E-Commerce: Mechanisms, Infrastructures, and Tools

Learning Objectives
1. 2. 3. 4. 5.

Describe 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. Describe the major types of auctions and list their characteristics.
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Learning Objectives
6. Discuss the benefits and limitations of e-auctions. 7. Describe bartering and negotiating online. 8. Describe virtual communities. 9. List the major Web 2.0 tools and their use in EC. 10. Describe social networks as an EC mechanism. 11. Understand virtual worlds and their use in EC. 12. Describe Web 3.0 and define Web 4.0.

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Electronic Commerce Mechanisms: An Overview


EC ACTIVITIES AND SUPPORT MECHANISMS

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SELLERS, BUYERS, AND TRANSACTIONS The Purchasing Process

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E-Marketplaces
e-marketplace

An online market, usually B2B, in which buyers and sellers exchange goods or services; the three types of emarketplaces are private, public, and consortia COMPONENTS OF AND THE PARTICIPANTS IN EMARKETPLACES
marketspace

A marketplace in which sellers and buyers exchange goods and services for money (or for other goods and services), but do so electronically
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E-Marketplaces
The major components and players in a marketspace

are:

Customers Sellers Products and services

digital products Goods that can be transformed to digital format and delivered over the Internet

Infrastructure

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E-Marketplaces
front end

The portion of an e-sellers business processes through which customers interact, including the sellers portal, electronic catalogs, a shopping cart, a search engine, and a payment gateway back end The activities that support online order fulfillment, inventory management, purchasing from suppliers, payment processing, packaging, and delivery intermediary A third party that operates between sellers and buyers
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E-Marketplaces
DISINTERMEDIATION AND

REINTERMEDIATION
disintermediation

Elimination of intermediaries between sellers and buyers

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E-Marketplaces
TYPES OF E-MARKETPLACES sell-side e-marketplace A private e-marketplace in which one company sells either standard and/or customized products to qualified companies buy-side e-marketplace A private e-marketplace in which one company makes purchases from invited suppliers

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Customer Shopping Mechanisms: Storefronts, Malls, and Portals


Webstore (storefront)

A single companys website where products or services are sold; usually has an online shopping cart associated with it Many Webstores target a specific industry and find their own unique corner of the market.
Microsites

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Customer Shopping Mechanisms: Storefronts, Malls, and Portals


e-mall (online mall)

An online shopping center where many online stores are located TYPES OF STORES AND MALLS
General stores/malls Specialized stores/malls Regional versus global stores Pure-play versus click-and-mortar stores

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Customer Shopping Mechanisms: Storefronts, Malls, and Portals


Web (information) portal

A single point of access, through a Web browser, to critical business information located inside and outside (via Internet) an organization
Types of Portals Commercial (public) portals Corporate portals Publishing portals Personal portals mobile portal A portal accessible via a mobile device. voice portal A portal accessed by telephone or cell phone.
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Customer Shopping Mechanisms: Storefronts, Malls, and Portals


THE ROLES AND VALUE OF INTERMEDIARIES IN E-

MARKETPLACES
Brokers infomediaries

Electronic intermediaries that provide and/or control information flow in cyberspace, often aggregating information and selling it to others e-distributor An e-commerce intermediary that connects manufacturers with business buyers (customers) by aggregating the catalogs of many manufacturers in one placethe intermediarys website
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Merchant Solutions: Electronic Catalogs, Search Engines, and Shopping Carts


electronic catalogs (e-catalogs)

The presentation of product information in an electronic form; the backbone of most e-selling sites
Online Catalogs Versus Paper Catalogs

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Merchant Solutions: Electronic Catalogs, Search Engines, and Shopping Carts


EC SEARCH ACTIVITIES, TYPES, AND

ENGINES

Types of EC Searches

Internet/Web Search enterprise search The practice of identifying and enabling specific content across the enterprise to be indexed, searched, and displayed to authorized users
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Merchant Solutions: Electronic Catalogs, Search Engines, and Shopping Carts

desktop search Search 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 wordprocessed documents, as well as in all internal files and databases.
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Merchant Solutions: Electronic Catalogs, Search Engines, and Shopping Carts


search engine

A computer program that can access databases of Internet resources, search for specific information or key words, and report the results Software (Intelligent) Agents Questions and Answers Online Voice-Powered Search Visual Shopping Search Engine

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Merchant Solutions: Electronic Catalogs, Search Engines, and Shopping Carts


electronic shopping cart

An order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop OTHER MECHANISMS IN MERCHANT SOFTWARE
Other Shopping Engines Product Configuration

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Auctions, Bartering, and Negotiating Online


auction

A competitive process in which a seller solicits consecutive bids from buyers (forward auctions) or a buyer solicits bids from sellers (backward auctions); prices are determined dynamically by the bids dynamic pricing Prices that change based on supply and demand relationships at any given time

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Auctions, Bartering, and Negotiating Online


TRADITIONAL AUCTIONS VERSUS E-AUCTIONS Limitations of Traditional Offline Auctions electronic auctions (e-auctions) Auctions conducted online INNOVATIVE AUCTIONS

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Auctions, Bartering, and Negotiating Online


TYPES OF AUCTIONS One Buyer, One Seller One Seller, Many Potential Buyers

forward auction An auction in which a seller entertains bids from buyers; bidders increase price sequentially

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Auctions, Bartering, and Negotiating Online


One Buyer, Many Potential Sellers reverse auction (bidding or tendering system) Auction in which the buyer places an item for bid (tender) on a request for quote (RFQ) system, potential suppliers bid on the job, with the price reducing sequentially, and the lowest bid wins; primarily a B2B or G2B mechanism name-your-own-price model Auction model in which a would-be buyer specifies the price (and other terms) he or she is willing to pay to any willing and able seller; a C2B model that was pioneered by Priceline.com.
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Auctions, Bartering, and Negotiating Online


Many Sellers, Many Buyers

double auction An auction in which multiple buyers and their bidding prices are matched with multiple sellers and their asking prices, considering the quantities on both sides

penny auction

A formal auction in which participants pay a nonrefundable small fee for each bid; bid level changes by small increments

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Auctions, Bartering, and Negotiating Online


Limitations of E-Auctions Minimal Security Possibility of Fraud Limited Participation

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Auctions, Bartering, and Negotiating Online


IMPACTS OF AUCTIONS Auctions as a Social Mechanism to Determine a Price Auctions as a Highly Visible Distribution Mechanism Auctions as an EC Component in a Business Model Auctions for Profit for Individuals

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Auctions, Bartering, and Negotiating Online


ONLINE BARTERING bartering The exchange of goods and services e-bartering (electronic bartering) Bartering conducted online, usually in a bartering exchange bartering exchange A marketplace in which an intermediary arranges barter transactions ONLINE NEGOTIATING
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Social Software Tools: From Blogs to Wikis to Twitter


social software

A software product that enables people to rendezvous, connect, and collaborate through computer-mediated communication blog A personal website 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


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Social Software Tools: From Blogs to Wikis to Twitter


Building Effective Blogs Commercial Uses of Blogs Potential Risks of Corporate Blogs

microblogging

A 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; these messages can be submitted by a variety of means, including text messaging, instant messaging, e-mail, MP3, or just on the Web
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Social Software Tools: From Blogs to Wikis to Twitter


Twitter

A free microblogging service that allows its users to send and read other users updates
tweets

Text-based posts up to 140 characters in length posted to Twitter The Essentials of Twitter for Business

The Major Benefits of Twitter Examples of Twitter as Enterprise Tools


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Social Software Tools: From Blogs to Wikis to Twitter


wiki (wikilog)

A blog that allows everyone to participate as a peer; anyone may add, delete, or change content
Business Applications of Wikis

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Social Software Tools: From Blogs to Wikis to Twitter


MECHANISM AIDS FOR WEB 2.0 TOOLS: TAGS,

FOLKSONOMY, MASHUPS, AND SOCIAL BOOKMARKS


tag

A nonhierarchical key word or term assigned to a piece of information (such as an Internet bookmark, digital image, video clip, or any computer document) folksonomy (collaborative tagging, social tagging) The practice and method of collaboratively creating, classifying, and managing tags to annotate and categorize content
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Social Software Tools: From Blogs to Wikis to Twitter


mashup

Combination of two or more websites into a single website that provides the content of both sites (whole or partial) to deliver a novel product to consumers social bookmarking Web 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

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Virtual Communities and Social Networks


virtual community

A group of people with similar interests who interact with one another using the Internet

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Virtual Communities and Social Networks


CHARACTERISTICS OF TRADITIONAL ONLINE

COMMUNITIES AND THEIR CLASSIFICATION


Types of Communities Associations Affinity portals Ethnic communities Gender communities Catering to young people Communities of practice Neighborhood communities Social networks sites Virtual worlds
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Virtual Communities and Social Networks


Other Classifications of Virtual Communities

Public Versus Private Communities Classification Categories

ONLINE SOCIAL NETWORKS A Definition and Basic Information The Size of Social Network Sites A Global Phenomenon Representative Capabilities and Services Provided by Social Network Sites
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Virtual Communities and Social Networks


business-oriented social networks

A social network whose major interest is business topics and whose members are professional people; such networks are used mostly for creating contacts, providing requirements, and enlisting members support for problem solving and knowledge sharing

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Virtual Communities and Social Networks


Example of a Business-Oriented Social Network Some Capabilities of Business-Oriented Networks Business Models and Services Related to Social

Networking Social Network Analysis Software Xanga Digg mobile social networking Members converse and connect with one another using cell phones or other mobile devices. Mobile Community Activities
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SOCIAL NETWORK SERVICES


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Virtual Worlds as an Electronic Commerce Mechanism


virtual world

A user-defined world in which people can interact, play, and do business; the most publicized virtual world is Second Life avatars Animated computer characters that exhibit humanlike movements and behaviors

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Virtual Worlds as an Electronic Commerce Mechanism


BUSINESS ACTIVITIES AND VALUE IN VIRTUAL

WORLDS

Collaboration Research and Marketing

Virtual Shopping Trading Virtual Properties

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The Future: Web 3.0 and Web 4.0


Web 3.0

A term used to describe the future of the World Wide Web; it consists of the creation of high-quality content and services produced by gifted individuals using Web 2.0 technology as an enabling platform Semantic Web An evolving extension of the Web in which Web content can be expressed not only in natural language, but also in a form that can be understood, interpreted, and used by intelligent computer software agents, permitting them to find, share, and integrate information more easily
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The Future: Web 3.0 and Web 4.0


Web 4.0

The Web generation after Web 3.0 that is still an unknown entity; however, it is envisioned as being based on islands of intelligence and as being ubiquitous THE TECHNOLOGICAL ENVIRONMENT
McKinsey & Companys Prediction Nicholas Carrs & Companys Prediction

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Managerial Issues
1. 2. 3. 4. 5. 6. 7.

Should we use auctions for selling? Should we barter? How do we select merchant software? How can we use Facebook and other social networks in our business? How shall we start using Web 2.0 tools? Shall we take part in virtual worlds? How should we deal with Web 2.0 risks?
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Summary
1. 2. 3. 4. 5. 6.

Activities and mechanisms E-marketplaces and their components The major types of e-marketplaces Electronic catalogs, search engines, and shopping carts Types of auctions and their characteristics The benefits and limitations of auctions

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Summary
7. Bartering and negotiating 8. The structure and role of virtual communities 9. Web 2.0 tools 10. Social networks as an EC mechanism 11. Virtual worlds 12. Web 3.0 and Web 4.0

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

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Retailing In Electronic Commerce: Products and Services

Learning Objectives
1. 2. 3. 4. 5. 6.

Describe electronic retailing (e-tailing) and its characteristics. Classify the primary e-tailing business models. Describe how online travel and tourism services operate and their impact on the industry. Discuss the online employment market, including its participants, benefits, and limitations. Describe online real estate services. Discuss online stock-trading services.
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Learning Objectives
7. Discuss cyberbanking and online personal finance. 8. Describe on-demand delivery of groceries and

similar perishable products and services related to them. 9. Describe the delivery of digital products and online entertainment. 10. Discuss various online consumer aids, including comparison-shopping aids. 11. Describe disintermediation and other B2C strategic issues.
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Internet Marketing and B2C Electronic Retailing


electronic retailing (e-tailing)

Retailing conducted online, over the Internet e-tailers Retailers who sell over the Internet SIZE AND GROWTH OF THE B2C MARKET WHAT SELLS WELL ON THE INTERNET
Developments in E-Commerce

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Internet Marketing and B2C Electronic Retailing


CHARACTERISTICS AND ADVANTAGES OF

SUCCESSFUL E-TAILING
Advantages of E-Tailing

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E-Tailing Business Models


CLASSIFICATION OF MODELS BY DISTRIBUTION

CHANNEL

Direct marketing by mail-order retailers that go online Direct marketing by manufacturers Pure-play e-tailers Click-and-mortar retailers multichannel business model A business model where a company sells in multiple marketing channels simultaneously (e.g., both physical and online stores) Internet (online) malls

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E-Tailing Business Models


direct marketing

Broadly, marketing that takes place without intermediaries between manufacturers and buyers; in the context of this book, marketing done online between any seller and buyer

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E-Tailing Business Models


Direct Sales by Manufacturers

virtual (pure-play) e-tailers Firms that sell directly to consumers over the Internet without maintaining a physical sales channel click-and-mortar retailers Brick-and-mortar retailers that offer a transactional website from which to conduct business brick-and-mortar retailers Retailers who do business in the non-Internet, physical world in traditional brick-and-mortar stores
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E-Tailing Business Models


Retailing in Online Malls

Referring Directories Malls with Shared Services

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E-Tailing Business Models


OTHER B2C MODELS AND SPECIAL RETAILING B2C SOCIAL SHOPPING Online Group Buying Personalized Event Shopping event shopping A B2C model in which sales are done to meet the needs of special events (e.g., a wedding, Black Friday). private shopping club A members-only shopping club, where members can buy goods at large discounts
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E-Tailing Business Models


Group Gifting Online location-based e-commerce (l-commerce)

Delivery of e-commerce transactions to individuals in a specific location, at a specific time Shopping in Virtual Worlds

VIRTUAL VISUAL SHOPPING

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Travel And Tourism (Hospitality) Services Online


SERVICES PROVIDED SPECIAL SERVICES ONLINE

Wireless services Advanced check-in Direct marketing Alliances and consortia

Social Travel Networks

BENEFITS AND LIMITATIONS OF ONLINE

TRAVEL SERVICES CORPORATE TRAVEL

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Employment Placement and the Job Market Online


PARTIES WHO USE THE INTERNET JOB MARKET

Job seekers Employers seeking employees Classified ads Job agencies Government agencies and institutions

Online Job Markets on Social Networks Global Online Portals for Job Placement Virtual Job Fairs

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Real Estate, Insurance, and Stock Trading Online


REAL ESTATE ONLINE Zillow, Craigslist, and Other Web 2.0 Real Estate Services INSURANCE ONLINE ONLINE STOCK TRADING The Risk of Trading in an Online Stock Account

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Banking and Personal Finance Online


electronic (online) banking or e-banking

Various banking activities conducted from home or the road using an Internet connection; also known as cyberbanking, virtual banking, online banking, and home banking

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Banking and Personal Finance Online


HOME BANKING CAPABILITIES VIRTUAL BANKS INTERNATIONAL AND MULTIPLE-CURRENCY

BANKING

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Banking and Personal Finance Online


ONLINE FINANCIAL TRANSACTION

IMPLEMENTATION ISSUES
Imaging Systems

Securing Financial Transactions Fees Online Versus Fees for Offline Services Risks

ONLINE BILLING AND BILL PAYING Taxes

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On-Demand Delivery of Products, Digital Items, Entertainment, and Gaming


ON-DEMAND DELIVERY OF PRODUCTS e-grocer A grocer that takes orders online and provides deliveries on a daily or other regular schedule or within a very short period of time on-demand delivery service Express delivery made fairly quickly after an online order is received

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On-Demand Delivery of Products, Digital Items, Entertainment, and Gaming


ONLINE DELIVERY OF DIGITAL PRODUCTS,

ENTERTAINMENT, AND MEDIA ONLINE ENTERTAINMENT


Adult Entertainment Internet Gaming Online Dating Services

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Online Purchasing-Decision Aids


shopping portals

Gateways to webstores and e-malls; may be comprehensive or niche oriented


Helping Communities

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Online Purchasing-Decision Aids


PRICE AND QUALITY COMPARISON BY

SHOPBOT SOFTWARE AGENTS

shopping robots (shopping agents or shopbots)

Tools that scout the Web on behalf of consumers who specify search criteria Google Commerce Search 2.0 Spy Services Wireless Shopping Comparisons

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Online Purchasing-Decision Aids


BUSINESS RATINGS SITES Recommendations from Other Shoppers and Friends

referral economy The effect upon sales of consumers receiving a referral or recommendation from other consumers.

TRUST VERIFICATION SITES OTHER SHOPPING TOOLS Yelp


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Issues In E-Tailing and Lessons Learned


disintermediation

The removal of organizations or business process layers responsible for certain intermediary steps in a given supply chain reintermediation The process whereby intermediaries (either new ones or those that had been disintermediated) take on new intermediary roles

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Issues In E-Tailing and Lessons Learned


channel conflict

Situation in which an online marketing channel upsets the traditional channels due to real or perceived damage from competition

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Issues In E-Tailing and Lessons Learned


POSSIBILITY OF A PRICE CONFLICT AND

DETERMINING THE RIGHT PRICE BY SELLERS PRODUCT AND SERVICE CUSTOMIZATION AND PERSONALIZATION ONLINE COMPETITION FRAUD AND OTHER ILLEGAL ACTIVITIES

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Issues In E-Tailing and Lessons Learned


LESSONS LEARNED FROM FAILURES AND LACK

OF SUCCESS OF E-TAILERS
Speak with one voice

Leverage the multichannels Empower the customer

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Managerial Issues
1. 2. 3. 4. 5. 6. 7.

What are the limitations of e-tailing? Where is etailing going? How should we introduce wireless shopping? Do we have ethics and privacy guidelines? How will intermediaries act in cyberspace? Should we try to capitalize on social networks? How should we manage multichannel marketing to avoid channel and/or price conflicts? What are the major potential limitations of the growth of B2C EC?
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Summary
1. 2. 3. 4. 5. 6.

The scope and characteristics of e-tailing Classify e-tailing business models How online travel/tourism services operate The online job market and its benefits The electronic real estate marketplace Online trading of stocks and bonds

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Summary
7. Cyberbanking and personal finance 8. On-demand delivery service 9. Delivery of digital products 10. Aiding consumer purchase decisions 11. Disintermediation and other B2C strategic issues

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

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