chapter 9 study set
Name and describe four business trends shaping e-commerce today.
1. Social Networking – this contributes to a massive online audience that is attractive to marketers. 2. Online Advertising – grows twice as fast as TV and print advertising 3. Online Newspapers and Traditional Media – have adopted to interactive models and some have made their service subscription-based. 4. Online Entertainment Business Models – They offer television, movies, music, sports, and eBooks in cooperation with the major copyright owners.
Name and describe three technology trends shaping e-commerce today.
Social commerce – is the use of social networks (Facebook, Etsy, Ebay) in the context of e-commerce transactions. Mobile commerce – the use of wireless devices to conduct both business to consumer and business to business e-commerce transactions over the Internet. Local Commerce – Using GPS-enabled devices to provide location-specific services to consumers.
List the eight unique features of e-commerce.
Ubiquity, Global Reach, Universal Standards, Richness, Interactivity, Information Density, Personalization/Customization , Social Technology
The Internet is available anywhere via mobile devices
Global reach feature
It reaches across national boundaries around the earth.
Universal standards feature
It has one set of Internet Standards.
Video, audio, and text messages are possible.
It works through interaction with the user.
Information density feature
It reduces information costs and raises quality.
It allows personalized messages to be delivered to individuals and groups.
Social Technology feature
User can generate content and engage in social networking.
Name 7 principal e-commerce business models.
1.E-tailor, 2.Transaction Broker, 3.Market Creator, 4.Content Provider, 5.Community Provider, 6.Portal, 7.Service provider
Description and example of e-tailor
Sells physical products directly to consumers, Amazon
Description and example of transaction broker
Processes and charges for online sales transactions, expedia
Description and example of market creator
Provides digital and interactive marketplace, eBay
Description and example of content provider
Provides digital content, can be paid by consumer or advertiser, Itunes
Description and example of Community provider
Provides online meeting place for communication and information, Facebook
Description and example of portal
Provides initial point of entry to the Web, yahoo
Description and example of service provider
Provides Web 2.0 apps, storage, and backups, Google apps
six e-commerce models
1 – Advertising Revenue Model, 2 -Sales Revenue Model, 3 -Subscription Revenue Model, 4 – Free/Fremium Revenue Model, 5 – Transaction Fee Revenue Model, 6 – Affiliate Revenue Model
Advertising Revenue Model
Revenue is generated by attracting a large audience of visitors who are exposed to advertisements.
sales revenue model
Revenue is generated by selling goods, information, or services.
subscription revenue model
Subscription fees are charged for access to some or all content.
Free/freemium revenue model
Free basic content is offered, but premium content is charged.
Transaction fee revenue model
A fee is charged for enabling or executing a transaction.
Affiliate revenue model
Website visitors are sent to other websites in return for a fee or percentage of sales revenue.
two ways social networking and “the wisdom of crowds” help companies improve their marketing
Crowdsourcing and prediction markets
What is crowdsourcing?
using large Internet audiences to learn how to improve product offerings and increase customer value.
What happens in prediction markets?
participants make bets on how a product or service will succeed.
Define the social graph
is a map of all significant online social relationships, comparable to a social network describing offline relationships.
How is social graph used in e-commerce marketing.
the products and services you buy will influence the decisions of your friends, and vice versa
Explain how Internet technology supports business-to-business electronic commerce.
enables companies to locate suppliers, solicit bids, place orders, and track shipments in transit electronically.
four m-commerce services and applications
Location-Based services, Banking and Financial services, Mobile Advertising and Retailing, Games and Entertainment
Uses GPS technology to identify your precise location
banking and financial services
Allows customers to manage their financial accounts on a mobile device
Mobile Advertising and Retailing
Identifying cell-phone users for location-based advertisements
Games and Entertainment
Offering downloadable and streaming digital content
3 barriers to m-commerce.
less Safety and security, lack of connectivity, and small screen size
Building a successful e-commerce requires what two things?
clear understanding of business objectives and the right technology to achieve those objectives.
List four business objectives of a typical e-commerce Web site.
1. Display Goods 2. Provide Content (product information) 3. Personalize/Customize Product 4. Execute a transaction payment
List four system functionalities of a typical e-commerce Web site.
1. Digital catalog 2. Product Database 3. Customer on-site tracking 4. Shopping Cart/payment system
List and describe four information requirements of a typical e-commerce Web site.
1. Dynamic text and graphics catalog 2. Product description, stocking numbers, and inventory levels 3. A site log for every customer visit 4. Secure credit card clearing and multiple payment options
What are the information requirements for a system
the information elements that the system must produce in order to achieve the business objectives.
What are business objectives for a website?
are simply capabilities that you would want your site to have.
System capabilites are what?
types of information systems capabilities you will need to achieve your business objectives.