Amir Manzoor

E-Commerce
An Introduction

LAPLAMBERT
Academic Publishing
 Amir Manzoor

E-Commerce
An Introduction

LAP LAMBERT Academic Publishing

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Table of Contents
INTRODUCTION TO E-COMMERCE .
E-COMMERCE: THE DEFINITION .......... ..
E-COMMERCE AND .
INTERNET ECONOMY, E-COMMERCE, AND E-BUSINESS...................
DIMENSIONSOF FROMMERCE ........................................................ ..
INTERNETVs NON-INTERNE-rE-COMMERCE .......................................... ..
CATEGORIESOF EKX)MMERCE.................... —
Business-to-Business (B2B)
Business-to-Consumer (B2C) ...„...mm.5
Business-to-Business-to-Consumer (B2B2C)..............
Business-to-Government (B2G) ................. .
Consumer-to-business (C2B)
Consumer-to-Consumer (C2C)
Business-to-Employee .
Government-to-Government
Government-to-Employee .
Government-to-Business (G2B)
Government-to-Citizen (G2C)
Other Forms of E-commerce............................
EIÆCTRONIC DATA INTERCHANGE (EDI)............ .
FORMS OFE- COMMERCE ORGANIZATIONS ... ....... 10
Brick-and-Mortar business....................... ... .. 10
Click-and-Mortar Business . ... 10
Virtual Business
E-marketplaces.................................
INTERMEDIATION, DISINTERMEDIATION, REINIERMEDIATION, HYPERMEDIATION, AND SYNDICATION IN
E-COMMERCE................. .
DEVELOPMENT AND GROWITI OF E-COMMERCE . ... 13
GENERATIONS OF E-COMMERCE ............................ .
E-COMMERCE:CRI'IW'ALSUCCESSFACIORS(CSF) ..... .. . , . ........15
Internal Factors....................... ... ...
External Factors
ECOMMERCE: TECHNOLOGY . . .18
ECOMMFNCE: SUITABILITYOF PRODUCESAND ... ... .. .20
ADVANTAGES AND DISADVANTAGES OF E-COMMERCE ............... ..... ..„......................21
Advantages of E-commerce ...........................„... .
Disadvantages of E-commerce................... ..
IMPACTS ECONOMY AND ORGANIZATIONAL.RESPONSES .. „ ...„......24

i
 The New Business Environment.................... .
Business Pressures
Organizational Responses ........................
PROMOTINGGLOBAL E-COMMERCE: INTERNATIONALCOOPERATION,COLLABORATION, AND
REGULATIONS .... . .........28
E-COMMERCE FUTUREOUTLOOK........
REVIEW QUESTIONS.................................................. ..
BIBLIOGRAPHY..................
E-COMMERCE INFRASTRUCTURE.
PRINCIPALCOMPONENIS OF E-COMMERCEINFRASTRUCI*URE.........................
E-COMMERCE AND BUSINESS PROCESSES ...
MAJOR PLAYERS IN E-COMMERCE —
THE INTERNET...........
Switching

TCP/IP...
Workingof ...41
Function of Router
Protocol .
IP
Domain Name Systems (DNS)
URL: Uniform Resource
Internet Servers and Clients
Ports and HTTP....
E-mail
World Wide Web (WWW) .
Markup Languages and the Web................
INTRANETS AND EXTRANETS............................ . .
Intranets....,.,......... ..... . .. ................52
Extranets................ ...................s:
VIRTUAL PRIVATE NETWORK (VPN)............................
SIORAGEAREANETWORKS (SANS) .................... ..
INTERNETCONNECTIVITYOvr10NS ......................................
Dial-up......... ........................s:
Integrated Services Digital Network
Broadband Connections .......................... ...............................s
Wireless
EVOLUTION OF INTERNETAND WORLD WIDE WEB
Internee .....................f
 Web 2.0 „
Semantic Web
E-COMMERCE2.0 ............. ....
REVIEW .
BIBLIOGRAPHY............... . .
ELEMENTS OF E-COMMERCE

CLIENT-SERVER COMMUNICATION
............................................... — „ 70
WEB 70
Static Content
Dynamic Content .........
Dynamic Page-GenerationTechnologies...................................„................. 71
SOFTWARE FOR WEB SERVERS ...................................................
Open Source Software Vs Commercial
Web Server Software .......................,............................
Evaluating Efficiency of Your Website
Operating Systems (OS) for Web Servers ... .....„ . .„
Web Server Market
Finding Web Server Information .. .. ..
DatabaseManagementSystems for Web Severs .
E-MAIL.... .. .
SPAM....................................
Solutions to the Spam Problem
CONTENT FILTERING
E-mail Content Filtering ......................„ .
Web Content . . ............ss
Bypassing Content Filtering...........................
WEBSITE AND INTERNET UTILITY PROGRAMS ................ ............ss
Finger and Ping Utilities • . .. ............................85
Traceroute and Other Route-Tracing • .......................,.........86
Telnet and . . . ............................86
Indexing and Searching Utility Programs............................................„........• • ..............................87
Data Analysis ..........................87
Link-Checking
Remote Server Administration Software ............... .... .
E-COMMERCEHARDWARE .. .........ss
Web Server Hardware: Components and ...................................88
Web Server Performance ..................................... ..... .89
Web Server Hardware Architectures . .. .,.................91
 E«OMMERCE SOFTWARE.......................
Selecting E-commerce Software .
Basic Functions of E-commerce Software
Advanced Functions Of E-commerce .
E-commerce Software for Small and Medium Enterprise .........

REVIEW
_
E-commerce Software for Mid-size to Large Businesses
Mid-Range E-commerce
E-commerce Software for Large Businesses

BIBLIOGRAPHY......

E-COMMERCE BUSINESS MODELS

TRADITIONAL Vs ELECTRONICBUSINESS MODELS . . 13
E-COMMERCE BUSINESS MODELS . .
Benefits of E-commerce Business Model
COMPETITIONIN THE E-COMMERCE.......... 14
INTERNEr AND ITS IMPACT ON BUSINESS II
KEY ELEMENTS OF E-COMMERCE BUSINESS MODEL .
PRIMARY REVENUE MODELS IN
Revenue Model Issues...............
FUNDAMENTALCATEGORIESOF E-COMMERCE BUSINESS MODELS
Business to Consumer (B2C) .
Consumer to Consumer (C2C) .
Business to Business (B2B) Models
Other Business Models .
REVIEW QUESTIONS.............................. „ ..... . .12
BIBLIOGRAPHY................
E-COMMERCESTRATEGY. .. 13
DEFINING E-COMMERCE STRATEGY .............„....... .. 13
SNAITiGY INITIATION.................................
SnAIEGY FORMULATION.............................
IMPLEMENTATION
STRATEGY .. .......13
COMMON E-COMMERCE STARTUP MISTAKES .....................„..... . ..... ..... ... .... .... .... 13
BUILDING E-COMMERCE
Method for Building E-commerce Site ....................„........
FiiATURFSOFGOOD ECOMMERCE .
SIX WEB PAGES OF GOOD E-COMMERCE SITES 14
COMPLIANCE WITH WEB STANDARDS............„........ 14
MEASURING SUCCESS OF ECOMMERCE
E-COMMERCE INVESTMENTS..................
 REVIEW ..............146
...................„..147

WEBSITE USABILITY ... ...150

IMPORTANCEOFEFFECTIVE
WEB PRESENCE........................ .... .... . .. ............... 151
WEB PRESENCE .................. 151
Achieving Web Presence Goals .. .. ... . ....................152
Web Presence and Brand Image ............... 152
WEBSITE USABILITY ....................................... . .... 152
What does usability measure? ....................................... .. ................... 153
CUSTOMER-CENTRICWEB SITE DESIGN.......................................................... .............153
Creating a User-Centric Web ......................... 155
USABILITY IMPROVEMENTCHECKLIST ................................................. ............ 161
REVIEWQUESTIONS.................................................................................................... .......... ... . . 178
179

E-COMMERCE MARKETING..............,.............................................. ...............................................180

INTRODUCTION.. ... ........ 181
INTERNETMARKETING AND E-MARKETING .. . ... ... . .... 181
COMMON INTERNET MARKETING MISTAKES ......................................... . .... 182
ADVANTAGESAND DISADVANTAGESOF INTERNET . ..183
THE 4 Ps OF MARKETING................................ ......... 184
OWNE BRANDING................................. . 184
Cost of Branding ........................... ... 185
Emotional Vs Rational Branding ..................... .. ..... ..... ..... 186
Online Brand Leveraging.......................... .. 186
Online Brand Consolidation............ .... ... 186
Affiliate Marketing................. .. ... ... 187
APPLICATIONS OF INTERNET TOOLS IN INTERNET MARKETING ..................... . . . ...... ............188
INTERNET, INTRANETS, EXTRANETS, AND INTERNET MARKEMNG ... ......... 189
INTERNETMARKETING COMMUNICATION ............ .. ........190
INTERNETMARKETING COMMUNICATION TOOLS ............................... ............................ 191
Online Advertising ............... . . ..,..............................191
Online Personal .........202
Online Sales Promotion . ..............203
Online Public Relations . ..... ......................204
Online Direct Marketing ....... ... ......................205
The Corporate Web . ... ..........208
Web . . .. ...................212
Web Positioning Strategies .... . ................212
SOCIAL NETWORKING SITES AND E-COMMERCE .. ............217
 Generating Sales through Social Networking Sites ...„...218
WEB 2.0 TOOLSANDE-COMMERCE .......................... ...........„219
Examples of Web 2.0 Tools Usage ......
VIRTUAL WORLDS FOR . m....221
MARKEYSEGMENTATION.................. m..22i
THE INTERNET USERS: POPULATION AND USAGE TRENDS................
Internet Users Population.......
Internet Usage Trends ........ .
ONLINE CONSUMERBEHAVIOR................
ONUNE CONSUMER PURCHASE DECISION ......... ........ .
Online Consumer Purchase Decision Aids .............
INTERNET MARKETING IN B2B .
Characteristics of B2B and B2C Online Buyers ...................
Marketing and Advertising in B2B E-commerce......................
B2B Online Marketing Methods
BUILDING TRUST IN E-COMMERCE ....................................
Factors That Influence Trust Building in E-commerce.......... .
ELECTRONIC WORD OF MOUTH (EMOW).
E-COMMERCE MARKET RESEARCH — ..
Advantages of Online Market Research .
Disadvantages of Online Market Research .........................
Methods of Online Market Research .
PARTNER RELATIONSHIP MANAGEMENT IN E-COMMERCE.......................... ...........235
236
REVIEW ... . .
..238

E-COMMERCE PAYMENT SYSTEMS.

PAYMENTNIEuiODS.......................... .... ........„..247
CASH AS MEIMODOF PAYMENT— . ...247
INTRODUCTION EINCIRONICPAYMENTS ..............................,.,.......................„.................. ..247

Domestic and International Payments Mechanisms ....................................... ...............24S

Basic Problems with Electronic . ..... ..... .........................„248
Electronic Payments Terminology .................................................................... ......... ..249
Electronic Payments: Major Stakeholder and
Methods of Electronic Payments ............ .251
Electronic Payment
TRANSACTIONSECURITYPROTOCOLS...................................,...... .„.... .... ....25'
SET (Secure Electronic Transactions) ......................... .,.....257
PHISHINGATTACKS........................................................................... .... ....259
Phishing Attack Countermeasures
vi
MICROPAYMENTS........................................................„.
. .. „ ——261
BUSINESS-TO-BUSINESS(B2B) TRANSACTIONS............ .
B2B Electronic Payment Solutions............... .

Electronic funds transfer (EFT)

E-PAYMENTSTANDARDS......................... ..........................
OFX.................................. 265

EMV
OPEN AND CLOSED Loop PAYMENT SYSTEMS ......................... ...
PAYMENT CARDS ....................
Credit Card.....
Debit Card...
Charge Card .
Single-Use Payment Cards......................
EIÆCIRONIC WAI-LEIS .......................
Electronic Wallet Characteristics............„....
Electronic Wallet
SIORED VALUE ...........
Magnetic Strip Cards.....
Smart Cards..... .
PAYMENTGATEWAYS............
How Payment Gateways Works .
Getting a Merchant Account .. .2S0
Selection Process for Payment Gateways ...280
Rate and Fee Structures and their Determination .2S2
Value-Added
Payment Gateways: Available
PAYMENT
ALIERNAIIVE PAYMENTSYSTEMS................................................
Cash on-delivery (COD) ........... .285
Payment by Telephone using the Payment Code
INTERNETTECHNOLOGIESAND BANKING INDUSIRY......„........................... .....
Electronic .„......285
Electronic Checks........... ....
REVIEW . ..„........291
BIBLIOGRAPHY............... ....

vii
E-CRM AND E-SCM.
Ct (CRM) .... ...
REINHONSIIIP MANAGEMENT
... ..................
CUSTOMERREIAIIONSHIP MANAGEMENT(ECRM)
Components of e-CRM .
Benefits of e-CRM
Limitations of e-CRM .
Working of e-CRM .....
Implementing e-CRM .
Integration among CRM, ERP, SCM, and other application systems „
FCCRMSolutions
Choosing the Best CRM Application for Your Business ...... ... ... .................30)
Metrics in Customer Service and CRM .
E-SCM . ....................302
E-SCM: Key Processes and Infrastructure Components ..........................„...... ...
Critical Success Factors for E-supply Chains ..
Benefits of E-supply Chains .............
Functions of E-SCEM Software....................... ... .. ......................304
Categories of e-SCM Solutions..........................................
Preparing for e-SCM
REVIEW ....... . . . . ................308
.................................................
BIBLIOGRAPHY „

E-COMMERCESECURITY
OVERVIEW .. . .......014
COMPUJYR SECURrry..................,.......... ... ... ....... „ .......„..314
CLASSIFICATION OF INFORMATION
Unrestricted Information „ .......31'
Protected Information............... . .„........315
Confidential
Restricted Information .. .
BASIC SECURf1X ISSUES .................... .„.... ..........„...3 10
THREAT, VULNERABILITY, AND COUVIERMEASURES .....
GOVERNANCY OF Ecos1MERCE SECUk11N IN AN ORGANrZATION .................. .. . ................................3 16
Key elements of an E-commerce Security Governance Structure
THREATS 10 E-COMMERCE SYSTEMS
Ulreats to E-commerce Service-side .
Threats to Front-end systems
Threats to Back-end Systems . ...321
Threats to E-commerce Transactions.............
Threats to Client-Side .........

viii
 Legal and Regulatory Threats .......................................................
SOLUTIONS FOR EcoMMERCE SECURITY ................................
Solutions for Service Side Security .......... .......
Solutions for E-commerce Transaction Security .............. ..329
Solutions for Client-Side........
Solutions for Legal and Regulatory Issues .................................
REVIEW „
BIBLIOGRAPHY................. .........
MOBILECOMMERCE.
INTRODUCIION..................
M-COMMERCE TERMINOLOGY...........................
WHY M-COMMERCE.............................................. .
SPECIFICCHARACTERISTICSOF M-COMMERCE .................... .... .
Value-AddedAttributedOfM-commerce...............
BUILDING BLOCKS OEM-COMMERCE............... . .
M-Commerce
M-Commerce ...
MobileNetworks............................. .. m.....353
PROS AND CONS OEM-COMMERCE ..... ..... ........354
For Users ......................
For Network Operators .. „....„..354
For Service Providers.................................... . „...„....3S4
APPLICATIONS OF M-COMMERCE ................................................. ................ . .................„..........355
Mobile Financial Applications....................................................... ... ..... „
Mobile Marketing and Advertising......................................................... „
Mobile Auction ......... .
Mobile Booking and Ticketing ...................................... . ...........357
Mobile CRM .
MobileContent . ......„358
Mobile Purchases .................. .
Mobile ......„..3S9
Wireless ... . ......,.........359
Wireless Telemedicine........................
M-COMMERCE SECURITY ISSUES........................................................................
Physical Security Issues . ...................................................360
Transactional Security . . ... ...........„..360
Post-Transaction .... .
MCOMMERCE SECURIIY TECHNIQUES ............. .... ....... 361
SIM-Based Authentication............................„.......
ix