BIS Learn Smart 3.1

click and mortar business

(a form of business to consumer business) a business that operates in a physical store AND on the internet Ex: Barnes and Noble, Nordstrom

brick and mortar business

(a form of business to consumer business) a business that operates in a physical store without an internet presence Ex: TJ Maxx

Pure play business

(a form of business to consumer business) a business that operates on the internet WITHOUT a physical store Ex: Google

banner ad

(a marketing benefit from ebusiness) a box running across a website that advertises the products and services of another business, usually another e business Ex: the banner generally contains a link to the advertiser's website. Advertisers can track how often customers click a banner ad resulting in a click-through to their website. often the cost of the banner ad depends on the number of customers who click on the banner ad. web-based advertising services can track the number of times users clock the banner, generating statistics that enable advertisers to judge whether the advertising fees are worth paying

click-through

(a marketing benefit from ebusiness) a count of the number of people who visit one site and click an advertisement that takes them to the site of the advertiser Ex: tracking effectiveness based on click-throughs guarantees exposure to target ads; however, it does not guarantee that the visitor liked the ad, spent any substantial time viewing the ad, or was satisfied with the information contained in the ad

cookie

(a marketing benefit from ebusiness) a small file deposited on a hard drive by a website, containing information about customers and their browsing activities Ex: they allow websites to record the comings and goings of customers, usually without their knowledge or consent

pop-up ad

(a marketing benefit from ebusiness) a small web page containing an advertisement that appears outside the current website located in the browser Ex: a form of one that users do not see until they close the current web browser screen

viral marketing

(a marketing benefit from ebusiness) a technique that induces websites or users to pass on a marketing message to other websites or users, creating exponential growth in the message's visibility and effect

associate (affiliate) program

(a marketing benefit from ebusiness) allows a business to generate commissions or referral fees when a customer visiting its website clicks a link to another merchant's website Ex: If a customer to a company website clicks a banner ad to another vendor's website, the company will receive a referral fee or commission when the customer performs the desired action, typically making a purchase or completing a form

online marketplaces

(an eBusiness form) bring together buyers and sellers of products and services Ex: Amazon, eBay, priceline

content providers

(an eBusiness form) generate revenues by providing digital content such as news, music, photos, or videos Ex: Netflix, iTunes, CNN

portals

(an eBusiness form) operate a central website for users to access specialized content and other services Ex: google, yahoo, MSN

transaction brokers

(an eBusiness form) process online sales transactions Ex: Etrade, Charles Schwab, Fidelity

service providers

(an eBusiness form) provide services such as photo sharing, video sharing, online backup, and storage Ex: Flickr, Mapquest, Youtube

infomediaries

(an eBusiness form) provide specialized information on behalf of producers and goods and services and their potential customers Ex: BizRate.com, Bloomberg.com, Zillow.com

marketing benefits from Ebusiness

-associate program -banner ad -click-through -cookie -pop-up ad -viral marketing

ebusiness tools

-email -instant messaging -podcasting -videoconferencing -web conferencing -content management system

challenges facing ebusiness

-identifying limited market segments -ensuring consumer protection -managing consumer trust -adhering to taxation rules

ISP (internet service provider)

a company that provides access to the internet for a monthly fee Major ones in the US: AOL, AT&T, Comcast, Netzero, including regional telephone companies

internet

a massive network that connects computers all over the world and allows them to communicate with one another -computers connected via the ____ can send and receive information, including text, graphics, voice, video, and software

disruptive technology

a new way of doing things that initially does not meet the needs of existing customers -tend to open new markets and destroy old ones

ICANN (internet corporation for assigned names and numbers)

a nonprofit organization that has assumed the responsibility for internet protocol (IP) address space allocation, protocol parameter assignment, domain name system management, and root server system management functions previously performed under US government contract

ebusiness model

a plan that details how a company creates, delivers, and generates revenues on the internet 4 categories: 1. Business to Business (B2B) 2. Business to Consumer (B2C) 3. Consumer to Business (C2B) 4. Consumer to Consumer (C2C)

applet

a program that runs within another application such as a website

domain name hosting (web hosting)

a service that allows the owner of a domain name to maintain a simple website and provide email capability

instant messaging (IMing)

a service that enables instant or real time communication between people

search engine

a website software that finds other pages based on keyword matching similar to google

intermediaries

agents, software, or businesses that provide a trading infrastructure to bring buyers and sellers together

videoconference

allows people at 2 or more locations to interact via two-way video and audio transmissions simultaneously as well as share documents, data, computer displays, and whiteboard

web browser

allows users to access the WWW (internet explorer, safari, firefox, chrome)

W3C (world wide web consortium)

an international community that develops open standards to ensure the long-term growth of the web

eshop (estore, etailer)

an online version of a retail store where customers can shop at any hour

Business to Consumer (B2C)

applies to any business that sells its products or services directly to consumers online Ex: Carfax offers car buyers detailed histories of used cars for a fee 3 Ways to Operate: 1. Brick and Mortar 2. Click and Mortar 3. Pure Play

Consumer to Business (C2B)

applies to any consumer who sells a product or service to a business on the internet Ex: Priceline.com, who sells their own prices for items such as airline tickets or hotel rooms, and wait for a seller to decide whether to supply them

business to business (B2B)

applies to businesses buying from and selling to each other over the internet Ex: medical billing service, software sales and licensing, and virtual assistant businesses (oracle, SAP) -represent 80%of all online business and are more complex with greater security needs than the other types

Consumer to Consumer (C2C)

applies to customers offering goods and services to each other over the internet Ex: an auction where buyers and sellers solicit consecutive bids from each other and prices are determined dynamically Ex: Craigslist and EBay

web conferencing (webinar)

blends videoconferencing with document sharing and allows the user to deliver a presentation over the web to a group of geographically dispersed participants -regardless of the type of hardware or software the attendees are running, every participant can see what is on anyone else's screen

SEO (search engine optimization)

combines art with science to determine how to make URLs more attractive to search engines resulting in higher search engine ranking

podcasting

converts an audio broadcast to a digital music player

the innovator's dilemma

discusses how established companies can take advantage of disruptive technologies without hindering existing relationships with customers, partners, and stakeholders

search engine ranking

evaluates variables that search engines use to determine where a URL appears on the list of search results

pay per call

generates revenue for a website each time a user clicks a link that takes the user directly to an online agent waiting for a call

pay per click

generates revenue for a website each time a user clicks a link to a retailer's website

pay per conversion

generates revenue for a website each time a website visitor is converted to a customer

content management systems (CMS)

help companies manage the creation, storage, editing, and publication of their website content -user friendly -most include web-based publishing, search, navigation, and indexing to organize information -they let users with little technical expertise to make website changes

digital darwinism

implies that organizations that cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction

ebusiness

includes commerce along with all activities related to internal and external business operations such as servicing customer accounts, collaborating with partners, and exchanging real-time information Advantages: -expanding global reach -opening new markets -reducing costs -improving effectiveness

adwords

keywords that advertisers choose to pay for and appear as sponsored links on the Google results pages -keywords are chosen by the advertiser and are displayed on the results pages when the search keywords match the advertiser's keywords -the advertiser then pays a fee to Google for the search display

interactivity

measures advertising effectiveness by counting visitor interactions with the target ad, including time spent viewing the ad, number of pages viewed, and number of repeat visits to the ad -measures are a giant step forward for advertisers, since traditional advertising methods do not provide many ways to track effectiveness

information reach

measures the number of people a firm can communicate with all over the world

disintermediation

occurs when a business sells directly to the customer online and cuts out the intermediary -this business strategy lets the company shorten the order process and add value with reduced costs or a more responsive and efficient service -the introduction of ebusiness brought this Ex: travel agents, because people can now book everything online

personalization

occurs when a company knows enough about a customer's likes and dislikes that it can fashion offers more likely to appeal to that person, say by tailoring its website to individuals or groups based on profile information, demographics, or prior transactions -amazon uses this to create a unique portal for each of its customers

paradigm shift

occurs when a new radical form of business enters the market that reshapes the way companies and organizations behave

real-time communication

occurs when a system updates information at the same rate it receives it (not email)

sustaining technology

produces an improved product customers are eager to buy, such as a faster car, or larger hard drive -tend to provide us with better, faster, and cheaper products in established markets

world wide web

provides access to internet information through documents, including text, graphics, and audio and video files that use a special formatting language called hypertext markup language

HTML (hypertext markup language)

publishes hypertext on the WWW, which allows users to move from one document to another simply by clicking a hot spot or link

long tall

referring to the tail of a typical sales curve -this strategy demonstrates how niche products can have viable and profitable business models when selling via ebusiness Ex: Netflix has no physical limitations, and can extend its ___, increasing sales, even if a title is rented only a few times

cybermediation

refers to the creation of new kinds of intermediaries that simply could not have existed before the advent of ebusiness, including comparison-shopping sites such as Kelkoo and bank account aggregation services such as Citibank

information richness

refers to the depth and breadth of details contained in a piece of textual, graphic, audio, or video information

reintermediation

steps are ADDED to the value chain as new players find ways to add value to the business process

mass customization

the ability of an organization to tailor its products or services to the customers' specifications Ex: customers can order m&ms in special colors or with customized sayings such as "marry me"

URL (universal resource locator)

the address of a file or resource on the web

ecommerce

the buying and selling of goods and services over the internet -only online transactions

HTML 5

the current version of HTML delivers everything from animation to graphics and music to movies; it can also be used to build complicated web applications and works across platforms, including a PC, tablet, smartphone, or smart TV

HTTP (hypertext transport protocol)

the internet protocol web browsers used to request and display webpages using URLs (universal resource locators)

dot-com

the original term for a company operating on the internet

taxonomy

the scientific classification of organisms into groups based on similarities of structure or origin -also used for indexing the content on the website into categories and subcategories of topics

clickstream data

through ____, they can observe the exact pattern of a consumer's navigation through a site -___ metrics can include the length of stay on a website, number of abandoned registrations, and number of abandoned shopping carts