This document summarizes key concepts in e-commerce. It discusses the unique features of digital markets and goods like reduced costs. It outlines different e-commerce business models like e-tailers, transaction brokers, and market creators. It also describes how e-commerce has transformed marketing through behavioral targeting and social networking. B2B e-commerce is discussed in relation to EDI and private industrial networks. The role of mobile commerce is covered in terms of location-based services and applications that allow customers to receive deals based on their location.
This document summarizes key concepts in e-commerce. It discusses the unique features of digital markets and goods like reduced costs. It outlines different e-commerce business models like e-tailers, transaction brokers, and market creators. It also describes how e-commerce has transformed marketing through behavioral targeting and social networking. B2B e-commerce is discussed in relation to EDI and private industrial networks. The role of mobile commerce is covered in terms of location-based services and applications that allow customers to receive deals based on their location.
Original Description:
Business Organisation and Management - Summary chapters
This document summarizes key concepts in e-commerce. It discusses the unique features of digital markets and goods like reduced costs. It outlines different e-commerce business models like e-tailers, transaction brokers, and market creators. It also describes how e-commerce has transformed marketing through behavioral targeting and social networking. B2B e-commerce is discussed in relation to EDI and private industrial networks. The role of mobile commerce is covered in terms of location-based services and applications that allow customers to receive deals based on their location.
This document summarizes key concepts in e-commerce. It discusses the unique features of digital markets and goods like reduced costs. It outlines different e-commerce business models like e-tailers, transaction brokers, and market creators. It also describes how e-commerce has transformed marketing through behavioral targeting and social networking. B2B e-commerce is discussed in relation to EDI and private industrial networks. The role of mobile commerce is covered in terms of location-based services and applications that allow customers to receive deals based on their location.
Group 1 Nguyễn Thị Linh - 18071139 Trịnh Thị Hoà An - 19071279 Đỗ Minh Giang - 19071340 Lương Thị Ngọc Ánh - 20070677 Lưu Ngọc Thành - 20070325 Nguyễn Ngọc Minh – 21070833
1 What are the unique features of e-commerce, digital markets, and digital goods?
- Distinguishing features include reduced information asymmetry, search costs, transaction
costs, and menu costs, along with the ability to change prices dynamically based on market conditions. Digital goods are goods that can be delivered over a digital network. The characteristics of eCommerce technology
• Global reach. • Location. • Interactivity. • Universal standards. • Personalization and adaptation. • Social technology. • Information density. • Wealth. Key words for understanding new e-commerce in 2014 are “social, mobile, local”. THE GROWTH OF E- COMMERCE
- THE NEW E-COMMERCE: SOCIAL, MOBILE, LOCAL
+ From Eyeballs to Conversations
+ From Desktop to Smartphone
- WHY E-COMMERCE IS DIFFERENT? + Ubiquity: available anywhere, anytime. Marketspace: a marketplace extended beyond traditional boundaries and removed from a temporal and geographical location.
+ Global Reach; Universal Standards; Richness; Interactivity; Info. Density;
Personalization/Customization; Social Technology KEY CONCEPTS IN EC: DIGITAL MARKETS AND DIGITAL GOODS IN A GLOBAL MARKETPLACE
+ Information Asymmetry: exists when 1 party in the transaction has more info. that is important for the transaction than the other party. This info. helps determine their relative bargaining power. In digital markets, consumers and suppliers can “see” the prices being charged for goods, so it’s more transparent than traditional markets. Digital markets are very flexible and efficient: reduced search and transaction costs, lower menu costs (when change prices), greater price discrimination, ability to change prices dynamically based on market conditions.
+ Disintermediation: removing the middleman, has allowed many companies to improve their profits while reducing prices.
+ Digital Goods: Music and books have been the forerunner. Now movies and television shows. Digital goods are much cheaper to produce in the long run with little or no distribution costs compared to traditional channels. Digital goods marketspaces also provide relatively cheap and efficient channels for merchants who otherwise could not afford to reach customers on a global scale. Independent musicians and moviemakers are finding tremendous opportunities for reaching new audiences through the Internet that they couldn’t reach before. This is especially true on social networking sites and through viral marketing. E-commerce firms now have more opportunities to reach customers, suppliers, and partners through Internet channels. The Internet has also given digital firms the opportunity to create new business models or reshape their current model by using one or more of the unique features of e-commerce: ubiquity, global reach, universal standards, richness, interactivity, information density, personalization/customization, and social technology.
2 What are the principal e-commerce business and revenue models?
- TYPES OF E-COMMERCE B2B; B2C; C2C m-Commerce E-COMMERCE BUSINESS MODELS
• Advertising • Sales • Subscription • Free/Freemium • Transaction fee • Affiliate 3 How has e-commerce transformed marketing? - ONLINE MARKETING AND ADVERTISING FORMATS • SEM: SEARCH ENGINE MARKETING • DISPLAY Ads • VIDEO • CLASSIFIED • RICH MEDIA: interactive, targeted, entertaining, for branding orientation • LEAD GENERATION • SPONSORSHIP • EMAIL
- BEHAVIORAL TARGETING It should come as no surprise that online businesses and
merchants collect millions and millions of pieces of data about Internet users outlining exactly what they do and where they spend their time. E-commerce marketers use the data in the form of behavioral targeting. Behavioral targeting occurs on individual Web sites and also on the vast advertising networks that track your every move on the Web. Just some of the data collected are: The site from which you came; Where you go when you leave the current site; Each page you viewed on the current site; How long you viewed each page; Which images you may have clicked on; Whether you purchased anything; The operating system you use; The browser you use; Personal data you may have entered such as address, home address, and credit card data; Who said the Internet was anonymous? Businesses and e-commerce marketers use the data to:
• Determine how well their Web sites are working.
• Create personalized Web pages suited to individual users (think Amazon.com’s “What others are reading that purchased this book”). • Improve customer experiences. • Create additional value for each user.
Often, the data are collected by advertising networks rather than individual Web sites. It’s cheaper, easier, and less time-consuming that way.
68% of Internet users disapprove of search engines and websites tracking their online behaviors in order to aim targeted ads at them.
28% (of those surveyed) approve of behavioral targeting because they believe it produces more relevant ads and information.
+ Do Not Track option in Browser.
- SOCIAL E-COMMERCE AND SOCIAL NETWORK MARKETING
Social EC is based on the idea of the digital social graph which is a mapping of all significant online social relationships – similar to social network used to describe offline relationships. You map 10 closest people, then each of them map their 10 closest people… the social graph. The interconnectedness of people is so important to EC: the P/S you buy will influence the decisions of your friends, and vice versa. Features of Social Commerce: newsfeed; timelines; social sign-on; collaborative shopping; network notification; social search (recommendations)
Social shopping sites: Pinterest, you can swap shopping ideas with friends
The wisdom of crowds: large number of people can make better decisions about a wide range of topics or products than a single person or even a small committee of experts.
Crowdsourcing is another way businesses are using the wisdom of crowds concept on social networking sites. Present a problem or opportunity on the site and let people provide suggestions, advice, or feedback free of charge.
Prediction markets also let businesses gain insight into what customers are really thinking. This concept lets people bet on specific outcomes of, let’s say, new marketing campaign or the next congressional election.
4 How has e-commerce affected business-to-business transactions?
- EDI: electronic data interchange; 80% of online B2B EC is still based on proprietary systems for EDI. Companies use EDI to automate transactions for B2B e-commerce and continuous inventory replenishment. Suppliers can automatically send data about shipments to purchasing firms. The purchasing firms can use EDI to provide production and inventory requirements and payment data to suppliers.
- NEW WAYS OF B2B BUYING AND SELLING
Private Industrial Networks: typically consist of a large firm using a secure website to link to its suppliers and other key business partners. Owned by the buyer, and it permits the firm and designated suppliers, distributors, and other biz partners to share product design and development, marketing, production scheduling, inventory management, and unstructured communication including graphics and. It’s also called Private Exchange Network.
Net Marketplaces: Alibaba.com
Exchanges: independently owned third-party marketplaces that connect thousands of suppliers and buyers for spot purchasing. May be vertical.
5 What is the role of mobile commerce in business, and what are the most important m-commerce applications?
- LOCATION-BASED SERVICES AND APPLICATIONS
Location-based services are perhaps one of the most interesting growth areas in m-commerce. There are several leaders in this technology, namely Foursquare, Gowalla, and Loopt. Users track their friends’ locations using geosocial services and earn points and badges for responding to special deals from businesses they “check-in” with through geo advertising services. Businesses offer customers special deals in an effort to boost sales from immediate promotions.
Geoinformation services provide mobile users instant, on-the-spot updates on product prices they wanted.
Wikitude is an example of geoinformation service: it provides a special kind of browser for
smartphones equipped with a built-in GPS (global positioning sys.) and compass that can identify your precise location and where the phone is pointed. Using info. from over 800,000 points of interest available on Wikipedia, plus thousands of other local sites, the browser overlay info. about points of interest you are viewing, and display that info. on your smartphone screen, superimposed on a map or photograph that you just snapped.
- OTHER MOBILE COMMERCE SERVICES
Folks in Japan and Europe can already do that. Soon Americans will, too. Studies show that U.S. consumers, particularly the younger set, have embraced the convenience of online shopping and e- banking and are now ready to move to the next frontier: person-to-person mobile payments.
Mobile Apps, some not available for web
6 What issues must be addressed when building an e-commerce Web site?
+ Develop an e-commerce presence map.
+ Develop a timeline milestones
Developing a successful e-commerce site requires managers to develop a clear understanding of their business objects and choose the right technology to achieve those objectives. Decisions need to be made about the site design and social and information policies. Most of all, the company must adequately budget for all the necessary components of an e-commerce site.
