MIS Chapter 5

Electronic Commerce
The process of buying, selling, transferring or exchanging of products, services or information via computer networks, including the internet
E-Business
Broader definition of Electronic Commerce. Also refers to servicing customers, collaborating with business partners, and performing electronic transaction within an organization
Business to Consumer
the sellers are the organizations and the buyers are individuals
Business to Business
Both the sellers and buyers are business organizations
Consumer to Consumer
an individual sells products or services to other individuals
Business to Employee
An organization uses e-commerce internally to provide information and services to its employees.
E-Government
The use of Internet Technology in general and e-commerce in particular to deliver information about public services to citizens, business partners and suppliers of government entities, and those working in the public sector
Mobile Commerce
Electronic commerce conducted in a wireless environment
E-Commerce Business Models
– Online direct
– Electronic Tendering System
– Name your own price
– Affiliate Marketing
– Viral Marketing
– Group Purchasing
– Deep Discounters
Online Direct Marketing
Manufacturers or retailers sell directly to customers
Electronic Tendering System
Business (or governments) request quotes from suppliers; uses B2B (or G2B) with reverse auctions
Viral Marketing
Receivers send information about your product to their friends
Group Purchasing
Small buyers aggregate demand to get a large volume; then the group conducts tendering or negotiates a lower price
Online Auctions
Companies run auctions of various types on the internet
Benefits of E-commerce
– Makes national and international markets more accessible
– Lowering costs of processing, distributing, and retrieving information
– Access a vast number of products and services around the clock
– Ability to easily and conveniently deliver information, services, and products to people in cities, rural areas, and developing countries
Limitations of E-commerce
– Lack of universally accepted security standards
– Insufficient telecommunications bandwidth
– Expensive Accessibility
– Perception that EC is unsecured
– Unresolved legal issues
– Lacks a critical mass of sellers and buyers
Electronic Storefront
A website that represents a single store
Electronic Mall
A collection of individual shops under one Internet address
Electronic Marketplace
A central, virtual market space on the web where many buyers and many sellers can conducts e-commerce and e-business activities
Electronic Retailing
The direct sale of products and services through electronic storefronts or electronic malls, usually designed around and electronic catalog format/or auctions
Disintermediation
When the functions of providing information can be automated or eliminated
Cyberbanking
Involves conducting banking activities from home, a place of business, or on the road instead of at a physical bank location
Online Securities Trading
Many Canadians use computers to trade stocks, bonds, and other financial instruments
Online Job Market
Job seekers use the online job market to reply to employment ads, to place resumes on various job sites and social networking sites, and use to recruiting firms
Online Travel Services
Allow you to purchase airline tickets, reserve hotel rooms, and rent cars
Advertising
An attempt to disseminate information in order to influence a buyer-seller transaction
Internet Advertising
Redefines the advertising process, making it media-rich, dynamic, and interactive
Permission marketing
Asks consumers to give their permission to voluntarily accept online advertising and e-mail
Performance-based Advertising
Occurs when the advertising company pays only for measurable results
Impression-based Advertising
Occurs when a company purchases a set amount of impressions
Channel Conflict
Occurs when clicks-and-mortar companies may face a conflict with their regular distributors when they sell directly to customers online
Multichanneling
A process many companies use to integrate their online and offline channels
Order Fulfillment
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
Public Exchanges
– Vertical Exchanges
– Horizontal Exchanges
– Functional Exchanges
Electronic Payments
– Electronic checks
– Electronic Credit Cards
– Purchasing Cards
– Electronic Cash
– Digital wallets