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    Chapter 7 - E - Commerce

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    Navin Chandrasekaran
    This chapter discusses electronic commerce (e-commerce) and its various types including business-to-business, business-to-consumer, consumer-to-business, and others. It describes the benefits of e-commerce for organizations and customers such as reduced costs, increased customer base, and greater convenience. The chapter also covers the history and scope of e-commerce as well as innovations like e-government, m-commerce, and consumer-to-consumer exchanges.

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    Chapter 7 - E - Commerce

    Uploaded by

    Navin Chandrasekaran
    554 views19 pages
    This chapter discusses electronic commerce (e-commerce) and its various types including business-to-business, business-to-consumer, consumer-to-business, and others. It describes the benefits of e-commerce for organizations and customers such as reduced costs, increased customer base, and greater convenience. The chapter also covers the history and scope of e-commerce as well as innovations like e-government, m-commerce, and consumer-to-consumer exchanges.

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    E-Commerce

    Original Title

    Chapter 7 - E_commerce

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    © Attribution Non-Commercial (BY-NC)

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    This chapter discusses electronic commerce (e-commerce) and its various types including business-to-business, business-to-consumer, consumer-to-business, and others. It describes the benefits of e-commerce for organizations and customers such as reduced costs, increased customer base, and greater convenience. The chapter also covers the history and scope of e-commerce as well as innovations like e-government, m-commerce, and consumer-to-consumer exchanges.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    554 views19 pages

    Chapter 7 - E - Commerce

    Uploaded by

    Navin Chandrasekaran
    This chapter discusses electronic commerce (e-commerce) and its various types including business-to-business, business-to-consumer, consumer-to-business, and others. It describes the benefits of e-commerce for organizations and customers such as reduced costs, increased customer base, and greater convenience. The chapter also covers the history and scope of e-commerce as well as innovations like e-government, m-commerce, and consumer-to-consumer exchanges.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 19

    CHAPTER 7

    E - COMMERCE

    Objectives
    Describe the types of e-commerce

    Discuss the benefits of e-commerce

    Discuss the B2C and B2B

    Determine electronic commerce innovation

    E-Commerce
    Electronic Commerce: buying and selling of products, services and information via computer networks, primarily the Internet TYPES Business-to-business EC (B2B) Collaborative commerce (c-commerce) Business-to-consumer EC (B2C) Consumer-to-businesses (C2B) Consumer-to-consumer (C2C) Intrabusiness (intraorganizational) commerce Government-to-citizens (G2C) and others Mobile commerce (m-commerce)

    E-Commerce from Different Perspectives:


    Communications EC is the delivery of goods, services, information, or payments over computer networks or by other electronic means. Business process EC is the application of technology toward the automation of business transactions and work flow. Service EC is a tool that addresses the desire of firms, consumers, and management to cut service costs while improving the quality of customer service and increasing the speed of service delivery.

    E-Commerce from Different Perspectives:


    Online EC provides the capability of buying and selling products and information on the Internet and other online services. Community EC provides a gathering place for community members, to learn, transaction and collaborate.

    E-Commerce History and Scope


    History

    Began in the early 1970s (long before the Internet was open to commercial use) Limited to large businesses initially
    Scope Today Includes

    advertising home banking shopping in electronic stores and malls finding a job conducting an auction collaborating electronically with business partners around the glob

    EC Benefits to Organizations
    1. Reduced cost:
    Reach a large number of customers at little cost Procure material and services from other companies at less cost Shorten marketing distribution channels and reduce marketing costs Decrease the cost of creating, processing, distributing, storing, and retrieving paperbased information Lower telecommunications costs because the Internet is much cheaper than value-added networks (VANs)

    EC Benefits to Organizations
    2. Increased customer base:
    Broaden markets Find niche markets (e.g. www.dogtoys.com)

    3. Reduced cycle time:

    Procure material and services from other companies rapidly Reduce the time between the outlay of capital and the receipt of products and services

    4. Helps small businesses compete against large companies

    EC Benefits to Customers
    1. Choice
    Consumers can select from many vendors and many more products than they could locate otherwise Consumers can get customized products, from PCs to cars, at competitive or bargain prices Consumers can find unique products and collectors items through virtual auctions.

    EC Benefits to Customers
    2. Convenience
    Consumers can conduct online quick comparisons to find less expensive products and services Customers can shop or make other transactions 24 hours a day, year round, from almost any location Product information immediately available 24 hours a day, year round, from almost any location Consumers can interact with other consumers in electronic communities and can exchange ideas as well as compare experiences

    EC Benefits to Society
    Enables more individuals to work at home and to do less traveling Allows some merchandise to be sold at lower prices Enables people in less developed countries and rural areas to enjoy products and services that otherwise are not available to them Facilitates delivery of public services, such as government entitlements, reducing the cost of distribution and fraud, health care and education

    1. Convenience

    2. Access

    Business-to-Consumer EC
    Electronic Storefronts and Malls
    Electronic retailing can be conducted via solo storefront or as a part of cybermall

    Issues of e-tailing
    May be channel conflict and conflict with existing stores Difficult to fulfill large quantity of very small orders Incorrect business model (advertising revenue versus profitable sales)

    Several market sectors have taken advantages of business opportunities on the web Most popular market segment:
    Retail Finance Entertainment and media Travel Health

    Business-to-Consumer EC

    Business-to-Consumer EC
    Personalization ability to customize product, service, advertisement, or customer service B2C EC enables personalization at low cost Internet enables marketing research
    Questionnaires Usually involve some inducement Direct behavior observation Cookies or site tracking services

    Business-to-Consumer EC
    Use of intelligent agents
    Help customers determine what to buy Search for and compare vendor prices Collect information and develop customer profiles

    Online advertising
    Banners Keyword banners Random banners Direct email Pop-up windows

    Business-to-Consumer EC
    Providing Customer Service
    Help customer determine needs Help customer acquire product or service Support customer during ownership of product or service Help customer dispose of product or service

    Business-to-Business EC
    Composes the majority of EC volume Enables organizations to form electronic relationships Covers all activities along the supply chain Business Models:

    Sell-Side Marketplace Organizations sell products to other organizations electronically. Buy-Side Marketplace Buyers post needs; sellers submit bids Electronic Exchanges Electronic marketplaces link many buyers and many sellers

    Business-to-Business EC
    Collaborative Commerce nonbuying/selling activities between businesses
    Planning and scheduling Design New product information Product content management Order management Sourcing and procurement

    Electronic Commerce Innovations


    E-Government deliver information and public services to citizens and members of the public sector M-Commerce use of wireless devices to deliver mobile e-commerce Consumer-to-consumer EC direct interaction facilitated by auctions, classifieds, and bartering Intrabusiness EC business units interact or employees interact with employers

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