IS chapter 10 – Flashcards
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E-commerce
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Use of the internet and web to transact business; digitally enabled transactions. Builds on traditional commerce by adding the flexibility that networks and the internet offer
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Business types include:
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Bricks-and-mortar business, clicks-and-mortar business (clicks-and-bricks), Pure-play business (.coms, clicks only, or virtual), Showrooming vs webrooming
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Why E-commerce is different:
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Ubiquity, global reach, universal standards, richness, interactivity, information density, personalization/customization, social technology
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Ubiquity
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Internet/web technology available everywhere and anytime. Marketplace extended beyond traditional boundaries.
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Global reach
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the technology reaches across national boundaries, across the globe. Marketplace includes billions of customers and millions of businesses worldwide
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Universal standards
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One set of technology standards: Internet standards. Different computer systems easily communicate with one another. Lower market entry costs. And lower consumers search costs.
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Richness
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The complexity and content of a message. Possible to deliver rich messages with text, audio, and video simultaneously to large numbers of people
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Interactivity
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E-commerce can provide two way communication between merchant and consumer . Consumer becomes co-participant in process of delivering goods to market
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Information density
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The total amount and quality of information available to all market participants. For consumers: greater price transparency, and greater cost transparency. Enables merchants to engage in price discrimination.
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Personalization & cusotmization
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Personalization is the ability to target marketing messages to specific individuals by adjusting the message to a persons name or interests. Customization is modification of a good or service based on a users preference
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Social technology
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Allows users to create and share content in the form of text, videos, music, etc. Creation of a new "many-to-many" model of mass communications
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Digital markets reduce:
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information asymmetry, search costs, transaction costs, and menu costs
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Digital markets enable:
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Price discrimination, dynamic pricing, and disintermediation
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Business-to-consumer (B2C)
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Businesses sell their products or services directly to consumers over the internet. May involve disintermediation. Include E-shop and E-mall. Utilize menu-driven pricing. and reverse-pricing
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Consumer-to-consumer (C2C)
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Involves business transactions between users; consumers selling directly to other consumers over the internet. Uses menu-driven pricing and forward auction
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Business-to-business (B2B)
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Involves electronic transactions among businesses; business buying and selling to each other over the internet. Fastest growing segment of e-commerce. Lowers production costs and improves accuracy by eliminating many labor-intensive tasks. Utilizes intranets, extranets, and VPNs. Electronic data interchange (EDI), Private industrial networks. Net marketplaces & exchanges
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Electronic data interchange (EDI)
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Computer-to-computer exchange of standard transactions such as invoices and purchasing orders
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Private industrial networks (private exchanges)
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Large firm using extranet to link to its suppliers, distributors, and other key business partners. Supports product design and development, marketing, production scheduling and inventory management. Uses reverse auction,
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Net marketplace (e-hubs, 3rd party exchanges)
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Single digital market for many buyers and sellers . Industry owned or owned by independent intermediary. Generate revenue from transaction fees. May be vertical marketplaces for specific industries or horizontal marketplaces for goods and services that are used across a variety of industries.
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E-government
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Involves the use of internet technologies to transform government by improving the delivery of services and enhancing the quality of interaction between the citizen-consumer and the branches of govt
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Government-to-citizen (G2C)
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Government services provided online to citizens/customers (renew drivers licenses, passports, visas, etc). Consumer initiated transactions with government (elections, taxes, etc)
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Government-to-business (G2B)
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Govt services to businesses (Information about regulations, licenses; imports, exports, tariff info). Business initiated transactions to govt (filing info with SEC/EEO/IRS
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Government-to-government (G2G)
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Govts exchanging information (local, state, national, international)
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M-commerce
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Use of wireless mobile devices for purchasing goods and services
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Social e-commerce
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Based on digital social graph, mapping of all significant online relationships. Fastest growing media for branding and marketing
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Wisdom of crowds
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Based on concept that large numbers of people can make better decisions about topics and products than a single person
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Crowdsourcing
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Where firms offer incentives to customers for solving a problem or coming up with an idea
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Prediction markets
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Peer-to-peer betting markets on specific outcomes. Customer places bets or votes for or against specific outcomes
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Crowd-funding
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Organized websites where individuals can ask for direct financial contributions from family, friends, etc. Equity-based, lending-based, reward-based, donation-based
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long tail marketing
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Ability to reach a large audience inexpensively
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Behavioral targeting
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Tracking online behavior of individuals on thousands of websites (clickstream data, and personalization)
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Electronic payments
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Money or script that is exchanged electronically (payment cards, e-cash, e-check, e-wallet, financial cybermediary, and micropayments
