MIS 213 Ch. 7 – Flashcards
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Describes the buying, selling, transferring or exchanging of products, services or information via computer networks, including the Internet.
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Electronic Commerce (E-Commerce)
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A broader definition of EC, including buying and selling of goods and services, and also servicing customers, collaborating with partners, conducting e-learning and conducting electronic transactions within an organization.
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E-Business
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Pure versus Partial Electronic Commerce depends on the ______ involved.
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Degree of Digitization
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Purely physical organizations.
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Brick-and-mortar organizations
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Companies engaged only in E-Commerce (also called pure play)
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Virtual Organizations
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Conduct some e-commerce activities, yet their business is primarily done in the physical world in example: partial EC
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Click-and-mortar Organizations
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The four types of E-Commerce are:
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B2C - Business to Consumer B2B - Business to Business C2C - Consumer to Consumer B2E - Business to Employee
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The sellers are organizations and the buyers are individuals
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B2C
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Both the sellers and buyers are business organizations. *Represents the vast majority of e-commerce
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B2B
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An individual sells products or services to other individuals
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C2C
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An organization uses e-commerce internally to provide information and services to its employees. Companies allow employees to manage their benefits, take training classes electronically; buy discounted insurance, travel packages, and event tickets.
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B2E
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The use of Internet Technology in general and e-commerce in particular to deliver information about public services to citizens (called Government-to-citizen [G2C EC]), business partners
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E-Government
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Refers to e-commerce that is conducted in a wireless environment.
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Mobile Commerce
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Major E-Commerce Mechanisms include:
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Auctions Forward Auctions Reverse Auctions
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A competitive process in which either a seller solicits consecutive bids from buyers or a buyer solicits consecutive bids from sellers.
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Auction
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Sellers use a _____ as a channel to many potential buyers. *Note that Sotheby's uses forward auctions.
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Forward Auction Results in higher prices over time
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One buyer, usually an organization, wants to buy a product or a service. The buyer posts a request for quotation (RFQ) on its Web site or on a third-party Web site. The RFQ contains detailed information on the desired purchase. Suppliers study the RFQ and submit bids, and the lowest bid wins the auction.
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Reverse Auctions Results in lower prices over time
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In what type of e-commerce business model do manufacturers or retailers sell directly to customers.
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Online direct marketing
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In what type of e-commerce business model do businesses request quotes from suppliers
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Electronic tendering system
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In what type of e-commerce business model do customers decide how much they want to pay
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Name-your-own-price
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In what type of e-commerce business model do customers specify a need and an intermediary compares providers and shows the lowest price
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Find-the-best-price
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In what type of e-commerce business model do vendors ask partners to place logos or banners on partner's sites
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Affiliate Marketing
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In what type of e-commerce business model do receivers send information about your product to their friends
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Viral marketing
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In what type of e-commerce business model do small buyers aggregate demand to get a large volume; then the group conducts tendering or negotiates a lower price
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Group purchasing
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In what type of e-commerce business model do companies run auctions of various types on the internet
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Online auctions
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In what type of e-commerce business model do customers use the internet to self-configure products or services
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Product customization
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In what type of e-commerce business model do companies offer deep price discounts
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Deep discounters
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What type of e-commerce business model allows only members to use the services provided
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Membership
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What are the benefits of E-Commerce to organizations and customers and society?
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Benefits to Organizations: -makes markets more accessible -lowers costs Benefits to Customers: -access to a vast number of products and services around the clock Benefits to Society: -ability to easily deliver to people everywhere
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What are the disadvantages of E-Commerce
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-No universal security standard -Insufficient bandwidth -Expensive accessibility -Perception that EC is insecure -Lacks a critical mass of buyers and sellers
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A Web site that represents a single store.
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Electronic Storefront
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Collections of individual shops under a single Internet address.
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Electronic Malls
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The alienation of existing distributors when a company decides to sell to customers directly online
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Channel Conflict
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A process in which a company integrates its offline and online channels.
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Multichanneling
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Involves finding the product to be shipped; packaging the product; arrange for speedy delivery to the customer; and handle the return of unwanted or defective products.
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Order fulfillment
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Involves conducting banking activities from home, a place of business, or on the road instead of at a physical bank location.
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Cyberbanking
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Banks dedicated only to Internet transactions.
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Virtual Banks
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Involves customers accessing services via the Web.
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Online Service
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Intermediaries or middlemen provide information and/or provide value-added services. When the function(s) of these intermediaries can be automated or eliminated, this process is called
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Disintermediation
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An attempt to disseminate information in order to influence a buyer-seller transaction.
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Advertising
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Electronic billboards.
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Banners
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Appears in front of the current browser window.
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Pop-up Ad
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Appears underneath the active window
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Pop-under Ad
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Asks consumers to give their permission to voluntarily accept online advertising and e-mail.
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Permission Marketing
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Refers to online "word of mouth" marketing
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Viral Marketing
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Drivers of today's online advertising include:
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-Communitainment -Usites -Multitasking
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The blending of community, communication, and entertainment into a new form of online activity driven by consumers.
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Communitainment
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Eight Types of Web sites for Advertising
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1. Portals: most popular; best for reach but not targeting 2. Search: second largest reach, high advertising value 3. Commerce: high reach, not conducive to advertising 4. News/weather/sports: poor target ability 5. Entertainment: large reach, strong target ability 6. Community: emphasize being a part of something; good for specific advertising 7. Communications: not good for branding; low target ability 8. Games: good for very specific types of advertising
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Where organizations sell their products or services to other organizations electronically from their own Web site and/or from a third-party Web site
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Sell-side Marketplace examples include: Ariba Dell Auction BigboXX.com
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The key mechanisms to sell-side marketplaces are
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Electronic Catalogs and Forward Auctions
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The key mechanisms to buy-side marketplaces are
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Reverse Auctions
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The three types of Electronic Exchanges
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1. Vertical Exchanges: connect byers and sellers in a given industry 2. Horizontal Exchanges: connect buyers and sellers across many industries and are used mainly for MRO materials 3. Functional Exchanges: needed services such as temporary help or extra office space are traded on an as-needed basis
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Exchanges have many
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buyers and sellers
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This enables you to pay for goods and services electronically.
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Electronic Payment Systems
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Similar to paper checks and are used mostly in B2B.
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E-checks
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Allow customers to charge online payments to their credit card account
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Electronic Credit Cards
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The B2B equivalent of electronic credit cards and are typically used for unplanned B2B purchases
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Purchasing cards
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Allow you to store a fixed amount of prepaid money and then spend it as necessary.
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Stored-value Money Card
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Contain a chip called a microprocessor that can store a considerable amount of information and are multipurpose - can be used as a debit card, credit card or a stored-value money card.
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Smart Cards
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A form of e-cash that enables two individuals or an individual and a business to transfer funds without using a credit card.
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Person-to-person Payments
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Ethical issues related to E-commerce include
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Privacy and Job loss
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Legal Issues Specific to E-commerce include
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Fraud on the Internet- stocks Domain Names- competition Cybersquatting Domain Tasting Taxes and Other Fees Copyright
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Refers to the practice of registering domain names solely for the purpose of selling them later at a higher price
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Cybersquatting
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A practice of registrants using the five-day "grace period" at the beginning of a domain registration to profit from pay-per-click advertising.
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Domain Tasting
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The method by which a company generates revenue to sustain itself
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Business Model
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B2B model in which organizations buy needed products or services from other organizations electronically, often through a reverse auction
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Buy-side Marketplace
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Purchasing by using electronic support
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E-procurement
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Electronic marketplace in which there are many sellers and many buyers, and entry is open to all; it is frequently owned and operated by a third party
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Public Exchange
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An electronic mall represents ____________.
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multiple stores
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A gift card is a(n) ____________.
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stored value money card
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The major strategies for conducting __________ commerce on the Internet are auctions and classified ads.
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C2C
