Ch. 7 MIS

Three Basic Types of Public Exchanges

-Vertical Exchanges -Horizontal Exchanges -Functional Exchanges

Reverse Auction

A major method of procuring goods and services in the buy-side model is the reverse auction.

Public Exchanges

Electronic marketplaces that are independently owned by a third party, and they connect many sellers with many buyers which are open to all business organizations and frequently owned and operated by a third party.

Pop-Under Ad

an Internet ad appears underneath the active window; when users close the active window, they see the ad.

Pop-Up Ad

an Internet ad that appears in front of the current browser window.

Key Mechanisms in the Sell-Side Marketplace Model

-Forward auctions Electronic catalogs customized for each large buyer Third-Party Auction Sites (e.g., eBay)

Characteristics of Banner Ads

1. the most common form of advertising on the Internet 2. customized to a target audience 3. convey only limited information because of their small size 4. many viewers simply ignore them

Electronic Commerce

The process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the Internet.

Electronic Storefront

a Web site that represents a single store.

Consumer-to-Consumer (C2C)

an individual sells products or services to other individuals.

Business-to-Business (B2B)

both the sellers and the buyers are business organizations. B2B comprises the vast majority of EC volume.

Horizontal Exchanges

connect buyers and sellers across many industries.

Vertical Exchanges

connect buyers and sellers in a given industry.

Smart Cards

contain a chip that can store a considerable amount of information—more than 100 times the amount contained on a stored-value money card and are frequently multipurpose. That is, you can use them as a credit card, a debit card, a stored-value money card, or a loyalty card.

Electronic Exchanges

deal in both direct and indirect materials.

Mobile Commerce (m-commerce)

e-commerce that is conducted entirely in a wireless environment.

Person-to-Person Payments

enable two individuals, or an individual and a business, to transfer funds without using a credit card (e.g., PayPal).

Spam

indiscriminate distribution of electronic ads without the permission of the receiver.

Functional Exchanges

needed services such as temporary help/labor or extra office space are traded on an "as-needed" basis.

Online Advertising

the practice of using the Internet and WWW to disseminate information in an attempt to influence a buyer-seller transaction through the direct response approach which personalizes advertising and marketing making the advertising process media rich, dynamic, and interactive.

Electronic Mall

(also known as a cybermall or an e-mall) a collection of individual shops consolidated under one Internet address and they are closely associated with B2C electronic commerce.

Electronic Business

-A much broader concept than e-commerce -Servicing customers, collaborating with business partners, and performing electronic transactions within an organization

Electronic Marketplace (e-marketplace)

a central, virtual market space on the Web where many buyers and many sellers can conduct e-commerce and e-business activities.

Auction

a competitive buying and selling process in which prices are determined dynamically by competitive bidding.

Buy-Side Marketplaces Model

a model in which organizations attempt to procure needed products or services from other organizations electronically. Procurement is the overarching function that describes the activities and processes to acquire goods and services.

Virtual (or pure-play) Organizations

all dimensions of the organization are digital and they engage in pure electronic commerce only.

Virtual Credit Cards

allow customers to shop online and can be used only once in order to thwart criminals by using a different, random card number every time you shop online.

Stored-Value Money Cards

allow you to store a fixed amount of prepaid money and then spend it as necessary and each time you use the card, the amount is reduced by the amount you spent.

Digital Wallet

an application used for making financial transactions. These apps can be on users' desktops or on their smartphones.

Business-to-Employee (B2E)

an organization uses EC internally to provide information and services to its employees.

Purchasing Cards

are the B2B equivalent of electronic credit cards and in some countries, purchasing cards are the primary form of payment between companies.

Banner Ads

electronic billboards containing a short text, graphics, video clips, or sound to promote a product or a vendor.

Electronic Payment Mechanisms

enable buyers to pay for goods and services electronically, rather than writing a check or using cash.

Government-to-Business (G2B)

is much like B2B EC, usually with an overlay of government procurement regulations.

Brick-and-Mortar Organizations

organizations that exist as purely physical organizations.

Forward Auctions

sellers solicit bids from many potential buyers and prices tend to increase over time.

E-procurement

uses reverse auctions, particularly group purchasing.

Government-to-Citizen (G2C)

government to individual citizens.

Private Exchanges

have one buyer and many sellers.

Direct Materials

inputs to the manufacturing process, such as safety glass used in automobile windshields and windows.

Clicks-and-Mortar (or Clicks-and-Bricks):

organizations that are partial electronic commerce (EC) combining both virtual and physical dimensions.

Degree of Digitization

the extent to which the commerce has been transformed from physical to digital which can relate to both the product or service being sold and the delivery agent or intermediary. In other words, the product can be either physical or digital, and the delivery agent can also be either physical or digital.

Purchasing

the process of ordering and receiving goods and services and it is a subset of the procurement process.

E-government

the use of Internet technology in general and e-commerce in particular to deliver information and public services to citizens.

Threats to Privacy

-Business makes it easier to store and transfer personal information -To protect the buyers' identities businesses must frequently use encryption to provide this protection -Tracking: individuals' activities on the Internet can be tracked by cookies that store a user's browsing history on their PC's hard drive -Antivirus software packages must routinely search for potentially harmful cookies.

Electronic Cards

There are a variety of electronic cards, and they are used for different purposes. The most common types are electronic credit cards, virtual credit cards, purchasing cards, stored-value money cards, and smart cards.

Permission Marketing

asks consumers to give their permission to voluntarily accept online advertising and e-mail.

Procurement

involves the activities necessary to establish requirements, sourcing activities such as market research and vendor evaluation, and negotiation of contracts.

Group Purchasing

multiple buyers combine their orders so that they constitute a large volume and therefore attract more seller attention and when buyers place their combined orders on a reverse auction, they can negotiate a volume discount.

Reverse Auctions

one buyer, usually an organization, wants to purchase a product or a service and buyer posts a request for quotation (RFQ) on its Web site or on a third party site. Prices tend to decrease over time.

Viral Marketing

online word-of-mouth marketing including messages forwarded to friends, family members, and other acquaintances suggesting they "check this out" which enables companies to build brand awareness at a minimal cost without having to spam millions of uninterested users.

Sell-Side Marketplace Model

organizations attempt to sell their products or services to other organizations electronically from their own private e-marketplace Web site and/or from a third-party Web site. In the B2B sell-side marketplace the buyer is an organization.

Business-to-Consumer (B2C)

the sellers are organizations, and the buyers are individuals.

Indirect Materials

those items, such as office supplies, that are needed for maintenance, operations, and repairs (MRO).

Electronic Checks

(e-checks), which are used primarily in B2B, are similar to regular paper checks.