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E-commerce: Digital Markets, Digital Goods

Terms in this set (51)

advertising revenue model
Web site generating revenue by attracting a large audience
affiliate revenue model
an e-commerce revenue model in which Web sites are paid as "affiliates" for sending their visitors to other sites in return for a referral fee
behavioral targeting
tracking the click-streams (history of clicking behavior) of individuals across multiple Web sites for the purpose of understanding their interests and intentions, and exposing them to advertisements which are uniquely suited to their interests
business-to-business (B2B) electronic commerce
electronic sales of goods and services among businesses
business-to-customer (B2C) electronic commerce
electronic retailing of products and services directly to individual consumers
co-location
a kind of Web site hosting in which firms purchase or rent a physical server computer at a hosting company's location in order to operate a Web site
community provider
a Web site business model that creates a digital online environment where people with similar interests can transact (buy and sell goods); share interests, photos, videos; communicate with like-minded people; receive interest-related information; and even play out fantasies by adopting online personalities called avatars
consumer-to-consumer (C2C)
electronic commerce consumers selling goods and services electronically to other consumers
cost transparency
the ability of consumers to discover the actual costs merchants pay for products
crowdsourcing
using large Internet audiences for advice, market feedback, new ideas and solutions to business problems; related to the "wisdom of crowds" theory
customization
the modification of a software package to meet an organization's unique requirements without destroying the package software's integrity
digital goods
goods that can be delivered over a digital network
disintermediation
the removal of organizations or business process layers responsible for certain intermediary steps in a value chain
dynamic pricing
pricing of items based on real-time interactions between buyers and sellers that determine what an item is worth at any particular moment
electronic data interchange (EDI)
the direct computer-to-computer exchange between two organizations of standard business transactions, such as orders, shipment instructions, or payments
e-tailer
online retail stores from the giant Amazon to tiny local stores that have Web sites where retail goods are sold
exchange
third-party Net marketplace that is primarily transaction oriented and that connects many buyers and suppliers for spot purchasing
free/fremium revenue model
an e-commerce revenue model in which a firm offers basic services or content for free, while charging a premium for advanced or high value features
geoadvertising
delivering ads to users based on their GPS location
geoinformation services
information on local places and things based on the GPS position of the user
geosocial services
social networking based on the GPS location of users
information asymmetry
situation where the relative bargaining power of two parties in a transaction is determined by one party in the transaction possessing more information essential to the transaction than the other party
information density
the total amount and quality of information available to all market participants, consumers, and merchants
intellectual property
intangible property created by individuals or corporations that is subject to protections under trade secret, copyright, and patent law
location-based services
GPS map services available on smartphones
long tail marketing
refers to the ability of firms to profitably market goods to very small online audiences, largely because of the lower costs of reaching very small market segments (people who fall into the long tail ends of a Bell curve)
market creator
an e-commerce business model in which firms provide a digital online environment where buyers and sellers can meet, search for products, and engage in transactions
market entry costs
the costs merchants must pay to bring their goods to market
marketspace
a marketplace extended beyond traditional boundaries and removed from a temporal and geographic location
menu costs
merchants' costs of changing prices
micropayment
payment for a very small sum of money, often less than $10
mobile commerce (m-commerce)
the use of wireless devices, such as cell phones or handheld information appliances, to conduct both business-to-consumer and business-to-business e-commerce transactions over the Internet
net marketplace
a single digital marketplace based on Internet technology linking many buyers to many sellers
personalization
ability of merchants to target marketing messages to specific individuals by adjusting the message for a person's name, interests, and past purchases
podcasting
publishing audio broadcasts via the Internet so that subscribing users can download audio files onto their personal computers or portable music players
prediction markets
an analysis of the portfolio of potential applications within a firm to determine the risks and benefits, and to select among alternatives for information systems
price discrimination
selling the same goods, or nearly the same goods, to different targeted groups at different prices
price transparency
the ease with which consumers can find out the variety of prices in a market
private exchange
another term for a private industrial network
private industrial networks
Web-enabled networks linking systems of multiple firms in an industry for the coordination of trans-organizational business processes
revenue model
a description of how a firm will earn revenue, generate profits, and produce a return on investment
richness
measurement of the depth and detail of information that a business can supply to the consumer as well as information the business collects about the customer
sales revenue model
selling goods, information, or services to customers as the main source of revenue for a company
search costs
the time and money spent locating a suitable product and determining the best price for that product
social graph
map of all significant online social relationships, comparable to a social network describing offline relationships
social shopping
use of Web site featuring user-created Web pages to share knowledge about items of interest to other shoppers
streaming
a publishing method for music and video files that flows a continuous stream of content to a user's device without being stores locally on the device
subscription revenue model
Web site charging a subscription fee for access to some or all of its content or services on an ongoing basis
transaction costs
costs incurred when a firm buys on the marketplace what it cannot make itself
transaction fee revenue model
an online e-commerce revenue model where the firm receives a fee for enabling or executing transactions
wisdom of crowds
the belief that large numbers of people can make better decisions about a wide range of topics or products than a single person or even a small committee or experts (first proposed in a book by James Surowiecki)
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