CH 9 Info systems E-commerce: Digital Markets, Digital Goods

Created by KRose08 

Upgrade to
remove ads

E-commerce

use of the Internet and Web to transact business; digitally enabled transactions

Business types

Brick-and-mortar business
Click-and-mortar business (click-and-brick)
Pure-play business (also called .com's, clicks only, or virtual

Ubiquity

A marketplace extended beyond traditional boundaries and removed from temporal, geographic locations

Global reach

Commerce enabled across cultural and national boundaries seamlessly and without modification.

Universal standards

Lower market entry costs & consumers' search costs

Richness

the complexity and content of a message
Possible to deliver rich messages with text, audio, and video simultaneously to large numbers of people

Interactivity

e-commerce can provide two way communication between merchant and consumer

Information density

the total amount and quality of information available to all market participants

price transparency

the ease of finding out the cost of an item

cost transparency

the ability to find out the actual cost to the merchants

price discrimination

selling the same goods to different targeted groups at different prices

Personalization

ability to target marketing messages to specific individuals by adjusting the message to a person's name, interests, and past purchases

Customization

modification of a good or service based on a user's preference

Social technology

Allows users to create and share content in the form of text, videos, music, photos

Digital markets reduce

Information asymmetry
Search costs
Transaction costs
Menu costs

Digital markets enable

Price discrimination
Dynamic pricing
Disintermediation

Business-to-Consumer (B2C)

- businesses sell their products or services directly to consumers over the Internet

E-shop (e-tailer, e-store, on-line store)

an on-line version of a retail store

E-mall

consists of a number of e-shops; serves as a gateway (portal) through which a consumer can access multiple e-shops

Menu-driven pricing

: company sets the price that consumers pay

Reverse-pricing:

consumer specifies the price he/she is willing to pay, the company can accept or reject it

Consumer-to-Consumer (C2C)

Involves business transactions between users; offer goods and services to assist consumers interacting with each other over the Internet

Forward auction

Sellers use the site as a selling channel to many buyers and the highest bid wins

Business-to-Business (B2B)

Purchase orders, invoices, inventory status, shipping logistics, business contracts, and other operations

Electronic data interchange (EDI)

Computer-to-computer exchange of standard transactions such as invoices, purchase orders

procurement

businesses can now use Internet to locate most low-cost supplier, search online catalogs of supplier products, negotiate with suppliers, place orders, and so on

Private industrial networks (private exchanges)

Large firm using extranet to link to its suppliers, distributors, and other key business partners

Reverse auction

- vendors provide quotes (bid) to firm on price they will sell for - buyer selects the vendor with the lowest bid or quote

Net marketplaces (e-hubs) or 3rd party Exchanges

Industry-owned or owned by independent intermediary.
Single digital market for many buyers and sellers.

E-government

involves the use of Internet technologies to transform government(s) by improving the delivery of services and enhancing the quality of interaction between the citizen-consumer and the various branches of government

M-commerce

use of wireless mobile devices for purchasing goods and services

E-commerce Revenue Models

Advertising
Sales (sometimes called merchant)
Subscription
Free/Fremium
Transaction fee (sometimes called brokerage)
Affiliate

E-commerce Business Models

Portal
E-tailer
Content provider
Transaction broker
Market creator
Service provider
Community provider

Crowdsourcing

where firms offer incentives to customers for solving a problem or coming up with an idea

Wisdom of crowds

Based on concept that large numbers of people can make better decisions about topics and products than a single person.

Prediction markets:

peer-to-peer betting markets on specific outcomes (elections, sales figures, designs for new products) - customer places bets or votes for or against specific outcomes

Long tail marketing

ability to reach a large audience inexpensively.

Behavioral targeting

tracking online behavior of individuals on thousands of Web sites

Search Engine Optimization

Method for improving the volume or quality of traffic to a Web site; improving the ranking of a web site in search engine listings

Spamdexing

using a variety of deceptive techniques in an attempt to manipulate search engine rankings

Micropayments

provide content providers with a cost-effective method for processing high volumes of very small monetary transactions

Disadvantages/Challenges:

Bandwidth capacity problems
Accessibility
Acceptance
Security issues
Potential Liability Issues
Taxation rules

information asymmetrey

when one party in a transaction has more information importat to the transaction than the other party.

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set