Chapter 4 – Enabling Business-To-Consumer Electronic Commerce – Flashcards
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Electronic Commerce
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The exchange of goods, services and money among firms, between firms and their customers, and between customers, supported by communication technologies and, in particular, the internet
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Information Dissemination
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Products and services can be marketed over vast distances
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Integration
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Web sites can be linked to corporate databases to provide real-time access to current and/or personalized info
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Mass Customization
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Firms can tailor their products and services to meet a customer's particular needs
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Interactive Communication
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Companies can communicate with customers, improving their image of responsiveness
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Transaction Support
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Clients and business can conduct business online without human support
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Disintermediation
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Cutting out the "middleman" and reaching customers more directly and efficiently
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Enabling Customers Business Strategies
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Physical: Brick and Mortar purely (grocery stores) Mix between Physical and Virtual: Click and Mortar (best buy) Virtual: Click Only (amazon)
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Affiliate Marketing
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Paying businesses that bring or refer customers to another business (Amazon's Associates Program)
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Subscription
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Users pay a monthly or yearly recurring fee for the product/service (Netflix)
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Licensing
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Users pay a fee for using protected intellectual property (Norton antivirus)
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Transaction Fees/Brokerage
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A commission is paid to the business for aiding in the transaction (Paypal)
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Traditional sales
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A consumer buys a product/service from the web site (Nordstrom or iTunes)
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Web advertising
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A free service/product is supported by advertising on the web site (Facebook)
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E-tailing
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Benefits: 1. Product - no shelf restrictions or store size, sell far wider variety of goods 2. Place - storefronts available on any computer with access to the internet 3. Price - offer the most competitive prices with high volumes and low OH
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Attracting and Retaining Online Customers
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4 key recommendations: 1. Be unique 2. Motivate people to visit, stay and return 3. Advertise 4. Always learn from own web site Zone of Tolerance - spans utilitarian and hedonic websites, is the MINIMUM acceptable level for structural firmness and representational delight, parallel to functional convenience
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Search Engine Optimization (SEO)
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Critical to web site's success, must market your web site
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Search Marketing
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Includes paid search, place ads according to search terms, optimize relative search engine ranking
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Display Ads
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Simple banner ads, contextualized to what person is viewing
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E-Mail Marketing
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Extremely low cost, very popular, less than a penny an email, effectiveness easy to track
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Social Media
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Increasingly used for interactive communication and relationship building with customers
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Mobile marketing
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Highly targeted marketing opportunities tailored to users location
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Pricing Models and Click Fraud
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Pay-per-Click through, impression
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Location-Based M-Commerce
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Services can be offered tailored to a person's needs based on their current location
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Information on the GO
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Customers can get further information about a product wherever they are, including in the store, which leads to "show rooming"
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Product and Content Sales
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Consumers use mobile apps to make purchases while on the go
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E-Auctions
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Think of eBay here!
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Online Classifieds
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Think Craigslist here, typically local in nature
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E-Banking
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1. Online Banking -Convenience -Security concerns -Mobile banking applications 2. Online Investing -Increased access to financial information and analytical tools -Online and mobile investing
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Managing Risk and Securing Payments
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-Firm is financially liable for fraudulent transactions
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E-Government
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COPLINK
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Taobao
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Largest digital marketplace in China (370 Mil users) that is the online marketplace for multiple companies (lots of logistic headaches dealing with fraud)
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Catchafire.com
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Potential volunteers can"shop" for a good fit
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Reputation Management
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Help offset negative biased reviews, but poses ethical dilemmas
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E-Commerce Giants assisting Small Business
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-Giant E-Commerce assist in facilitating small business processes and simplify implementation
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Rigging Search Results and Google
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Constant struggle between search engines trying to provide accurate results and sites seeking to skew results in their favor
