E-BUSINESS & E-COMMERCECHAPTER 5

NOOSHA SAFAHANI

E-COMMERCE(EC) VS. E-BUSINESS

E- commerce(EC): describes the process of buying, selling, transferring, or exchanging products, services, and/or information via computer networks, including the Internet.

E-business: refers to a broader definition of EC, not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting e-learning, and conducting electronic transactions within an organization.

E-Business

E-Commerc

e

PURE VS. PARTIAL EC

Product (service) sold Process Delivery agent (or

intermediary)

TYPES OF E-COMMERCE

Business-to-business (B2B)

Collaborative commerce (C-commerce)

Business-to-consumers (B2C)

Consumers-to-businesses (C2B)

Consumer-to-consumer (C2C)

Intrabusiness (intraorganizational) commerce

Government-to-citizens (G2C) and to others

Mobile commerce (m-commerce)

The scope of E-commerce

BENEFITS OF E-COMMERCE

To Organization

• national and international markets• eliminates marketing distribution channels• Decreases the costs• product customization and reduces inventory

costs• Lowers telecommunications costs• Helps some small businesses• Enables a very specialized niche market

BENEFITS OF E-COMMERCE

To Customer

•conduct quick online searches and comparisons•more choices•24 hours a day, from almost any location•customized products•work and study at home.•electronic auctions•exchange ideas and compare experiences

BENEFITS OF E-COMMERCE

To Society

• less road traffic and lower air pollution• increasing peoples standard of living• developing countries and rural areas to enjoy

products and services• Facilitates delivery of public services

LIMITATIONS OF E-COMMERCE

LIMITATIONS OF E-COMMERCE

AUCTIONS AND BARTERING

Electronic Auctions(E-Auctions)

An auction is a market mechanism by which sellers place offers and buyers

make sequential bids

Bartering

Related to auctions is electronic bartering, the exchange of goods or services without a monetary transaction.

MAJOR TYPES OF AUCTION

Forward Auction

• Many potential buyers

Reverse Auctions

• One buyer

MAJOR CATEGORIES OF B2C APPLICATIONS

1.Electronic Retailing:

Storefronts Specialized(persianFlora.ir)

General(walmart)

Malls referral malls (kharidgroohi.com)

Mall organizers (store.yahoo.com)

MAJOR CATEGORIES OF B2C APPLICATIONS

2. Service Industries Online: banking

trading of securities (stocks, bonds)

job matching

travel services

real estates

E-COMMERCE CONSUMER BEHAVIOR MODEL

THE CONSUMER DECISION-MAKING PROCESS

1. A Generic Purchasing-Decision Model

needidentification

information

search

evaluation of

alternatives

Purchase

and delivery

after-

purchase

evaluation

THE CONSUMER DECISION-MAKING PROCESS

HOW MARKET RESEARCH FINDS WHAT CUSTOMERS WANT?

1. Asking customers what they want

2. Tracking customer activities on the web

ADVERTISING METHODS

Banners

Pop-up & Pop-under

E-mails

Electronic Catalogues & Brochures

posting advertising in chat rooms (newsgroups)

Internet Radio & TV

INTRABUSINESS

Business to Its Employees (B2E) Commerce

E-Commerce Between and Among Units Within the Business

E-Commerce Between and Among Corporate Employees

E-GOVERNMENT APPLICATIONS

Government to-Citizens (G2C)

Government-to-Business (G2B)

Government-to-Government (G2G)

CUSTOMER TO CUSTOMER E-COMMERCE

• C2C Auctions• Classified Ads• Personal

services

E-CommerceServices

TIPS FOR SAFE ELECTRONIC SHOPPING

● Look for reliable brand names at sites

● Call up and quiz the employees about the sellers.

● Investigate how secure the seller’s site is by examining the security procedures and by reading the posted privacy notice.

● Examine the money-back guarantees, warranties, and service agreements.

● Compare prices to those in regular stores. Too-low prices are too good to be true, and some “catch” is probably involved.

TIPS FOR SAFE ELECTRONIC SHOPPING

● Ask friends what they know. Find testimonials and endorsements in community sites and well-known bulletin boards.

● Find out what your rights are in case of a dispute.

● Consult the National Fraud Information Center (fraud.org).

● Check consumerworld.org for a listing of useful resources.

CASE: FREEMARKETS.COM

CASE: FREEMARKETS.COM

● Asset disposal analysis

● Detailed sales offering

● Targeted market outreach

● Event coordination

● Sales implementation

CASE: FREEMARKETS.COM

121.000$

7.500$