Chapter 4 E-commerce and E-government

Cryptocurrency:

Virtual currency that is not issued by any central bank and uses encryption technologies to secure transactions and generate new units of the currency.

Showrooming

Shoppers coming into a store to evaluate the look and feel of a product and then purchasing it online or at a competitor's store.

Group buying:

Special volume discounts negotiated with local businesses and offered to people in the form of "daily deals"; if enough people agree to purchase the product or service, everyone can purchase the product at the discounted price.

Mass customization:

Tailoring products and services to meet the particular needs of individual customers on a large scale.

Fintech:

Technologies that support activities in the financial sector.

Navigation

The ability to give route directions from one point to another

Tracking

The ability to see another person's location

Click fraud:

The abuse of pay-per-click advertising models by repeatedly clicking on a link to inflate revenue to the host or increase costs for the advertiser.

Reintermediation:

The design of a business model that reintroduces middlemen in order to reduce the chaos brought on by disintermediation.

Electronic commerce (EC):

The exchange of goods and services via the Internet among and between customers, firms, employees, business partners, suppliers, and so on.

Long tail:

The large parts of consumer demand that are outside the relatively small number of mainstream tastes.

Click-through rate:

The number of visitors who click on an ad (i.e., clicks) divided by the number of times it was displayed (i.e., impressions).

Bounce rate:

The percentage of single-page visits; reflecting the percentage of users for whom a particular page is the only page visited on the website during a session.

Conversion rate:

The percentage of visitors to a website who perform the desired action.

Exit rate:

The percentage of visitors who leave the website (terminate the session) after viewing a particular page.

Disintermediation:

The phenomenon of cutting out the "middleman" in transactions and reaching customers more directly and efficiently.

Net neutrality:

The principle that all Internet traffic should be treated the same.

E-government:

The use of information systems to provide citizens, organizations, and other governmental agencies with information about and access to public services.

E-finance:

The use of information systems to provide financial services and markets.

Electronic bill pay:

The use of online banking for bill paying.

Online banking:

The use of the Internet to conduct financial transactions.

Online brokerage:

The use of the Internet to obtain information about stock quotes and manage financial portfolios.

Paid inclusion:

The inclusion of a website in a search engine's listing after payment of a fee.

Internet Tax Freedom Act:

An act mandating a moratorium on electronic commerce taxation in order to stimulate electronic commerce.

M-commerce (mobile commerce):

Any electronic transaction or information interaction conducted using a wireless, mobile device and mobile networks that leads to a transfer of real or perceived value in exchange for information, services, or goods.

Sales beacon:

Bluetooth device that can detect proximate smartphones and send marketing messages or personalized coupons.

Location

Determining the basic geographic position of the cell phone

E-auction:

Electronic auction

The five megatrends

social, cloud computing, the Internet of Things, mobile, and Big Data

Brick-and-mortar business strategy:

A business approach exclusively utilizing physical locations, such as department stores, business offices, and manufacturing plants, without an online presence.

Click-only business strategy:

A business approach that exclusively utilizes an online presence. Companies using this strategy are also referred to as virtual companies.

Click-and-mortar business strategy:

A business approach utilizing both physical locations and virtual locations. Also referred to as "bricks-and-clicks."

Blockchain:

A decentralized public ledger that is highly resilient against tampering, as transactions are added in blocks, serving as proof of all transactions ever made.

Watermark:

A digital or physical mark that is difficult to reproduce; used to prevent counterfeiting or to trace illegal copies to the original purchaser.

Pay-per-click model:

A payment model used in online advertising where the advertiser pays the website owner a fee for visitors clicking on a certain link.

Digital rights management (DRM):

A technological solution that allows publishers to control their digital media (music, movies, and so on) to discourage, limit, or prevent illegal copying and distribution.

Card security code:

A three-digit code located on the back of a credit card; used in transactions when the physical card is not present.

QR code:

A two-dimensional barcode with a high storage capacity.

Structural firmness:

A web page's characteristics related to security and performance.

Functional convenience:

A web page's characteristics that make the interaction with the site easier or more convenient.

Representational delight:

A web page's characteristics that stimulate a user's senses.

Search advertising:

Advertising that is listed in the sponsored search results for a specific search term.

Mapping

Capturing specific locations to be viewed on the phone

Government-to-business (G2B):

Electronic commerce that involves a country's government and businesses.

Business-to-business (B2B):

Electronic commerce transactions between business partners, such as suppliers, manufacturers, and distributors.

Business-to-consumer (B2C):

Electronic commerce transactions between businesses and end consumers.

Consumer-to-business (C2B):

Electronic commerce transactions in which consumers sell goods or services to businesses.

Consumer-to-consumer (C2C):

Electronic commerce transactions taking place solely between consumers.

Government-to-government (G2G):

Electronic interactions that take place between countries or between different levels of government within a country.

E-tailing:

Electronic retailing; the online sales of goods and services.

Location-based services:

Highly personalized mobile services based on a user's location.

Social commerce:

Leveraging visitors' social networks in e-commerce interactions to build lasting relationships, advertise products, or otherwise create value.

Search engine optimization (SEO):

Methods for improving a site's ranking in search engine results.

Multichannel retailing:

Offering the customer different (independent) touchpoints, such as a retail store and a catalogue.

Cross-channel retailing:

Offering the customer different touchpoints, such that transactions take place across multiple environments.

Government-to-citizen (G2C):

Online interactions between federal, state, and local governments and their constituents.

Menu-driven pricing model:

Pricing model under which companies set and present non-negotiable prices for products to consumers.

Dynamic pricing model:

Pricing model under which customers specify the product or service they are looking for and how much they are willing to pay for it, and the provider either accepts or rejects the customers' bids.

Impression based model:

Pricing model under which pricing is based on the number of times the page containing an ad is displayed, typically expressed in cost per thousand impressions (i.e., cost per mille, or CPM).

Omni-channel retailing:

Providing seamless, simultaneous retail interactions using different channels, such that a customer does not interact with a single channel but with the brand as a whole.