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DESCRIPTION
Introduction to electronic commerce, definition, and categoriesTRANSCRIPT
ELEVENTH EDITION
ELECTRONIC COMMERCE
GARY P. SCHNEIDER
Introduction to Electronic Commerce
Chapter 1
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Learning Objectives
What is electronic commerce / electronic business
Types of eCommerce
Business to consumers (B2C)
Consumers to consumers (C2C)
Business to business (B2B)
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Electronic Commerce
• Digital commercial transaction between organization and individuals– Digital is use of internet and world wide wed (www)– Commercial transaction is the exchange of value for
merchant’s good or service
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Electronic Commerce and Electronic Business
• Electronic commerce– Shopping on the Web– Businesses trading with other businesses– Internal company processes– Broader term: electronic business (e-business)– Includes all business activities using Internet
technologies• Internet and World Wide Web (Web)• Wireless transmissions on mobile telephone network
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Business Processes
• Examples of business processes– Purchasing raw materials or goods for resale– Converting materials and labor into finished goods– Managing transportation and logistics– Hiring and training employees– Managing business finances
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FIGURE 1-9 Value chain for a strategic business unit© Cengage Learning 2015
Electronic Commerce
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Electronic Commerce
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Categories of Electronic Commerce
• Business-to-consumer (B2C) • Consumer shopping on the Web
– Example: customer buys phone from Verizon
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Categories of Electronic Commerce
• Consumer-to-consumer (C2C)– Individuals buying and selling among themselves
• Web auction site– C2C sales included in B2C category
• Seller acts as a business (for transaction purposes)– Example: customer sells old phone to another
customer
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Categories of Electronic Commerce
• Business-to-business (B2B): – Transactions conducted between Web businesses,
like between a manufacturer and a wholesaler, or between a wholesaler and a retailer.
– Supply management (procurement) departments• Negotiate purchase transactions with suppliers
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FIGURE 1-2 Electronic commerce categories© Cengage Learning 2015