Chapter 10

Geosocial service

can tell you where your friends are meeting.

Customization

changing the delivered products or service based on a user's preference or prior behavior.

Transaction broker

Saves users money and time by processing online sales transactions and generating a fee each time a transaction occurs. Example- ETrade.com, Expedia, Fidelity, Financial Services

Portals

gateways to the web and are often defined as those sites that users set as their homepage. These include search engines like google or bing.

Location-based services

include geosocial, geoadvertising, and geoinformation services. 74% of smartphone owners use location-based services.

Market creator

provides a digital environment where buyers and sellers can meet, search for products, display products, and establish prices for those products: can serve consumers or B2B e-commerce generating revenue from transaction fees Example - eBay, Priceline.com, Exostar, elemica

Streaming

pushed method for music and video files that flow a continuous stream of content to a user's device without being stored locally on the device.

Cost transparency

refers to the ability of consumers to discover the actual costs merchants pay for products.

Richness

refers to the complexity and content of a message. Traditional markets, national sales forces, and small retail stores have great richness. They can provide personal, face-to-face service, using aural and visual cues when making a sale.

Price transparency

refers to the ease with which consumers can find out the variety of prices in a market

Information asymmetry

the internet reduced info asymmetry. It exists when one party in a transaction has more information that is important for the transaction than the other party. The info helps determine their relative bargaining power.

Electronic data interchange (EDI)

80 percent of online B2B e-commerce is still based on proprietary systems for EDI. It enables the computer-to-computer exchange between two organizations of standard transactions such as invoices, bill of lading, shipment schedules or purchase orders.

Disintermediation

Airlines and hotels operating their own reservation sites online earn more per ticket because they have eliminated travel agents as intermediaries.

Global reach

E-commerce tech permits commercial transactions to cross cultural and national boundaries far more conveniently and cost effectively than is true in traditional commerce. Most traditional are regional or local

Disintermediation

The removal of organizations or business process layers responsible for intermediary steps in a value chain. It is addicting the market for services.

Indirect goods

are all other goods not directly involved in the production process such as office supplies or products for maintenance and repair.

Direct goods

are goods used in a production process, such as sheet steel for auto body prosecution.

Exchange

are independent third-party net marketplaces that connect thousands of suppliers and buyers for spot purchasing.

Geoinformation services

can tell you the price of a house you are looking at or about special exhibits at the museum you are passing.

Sales revenue model

companies derive revenue by selling goods, information, or services to customers. Companies such as amazon, LL bean and Gap all have sales revenue models. Content providers make money by charging for downloads or streaming of entire files such as music tracks (Apple Music) or books for downloading music and video.

Consumer- to-consumer (C2C)

electronic commerce involves consumers selling directly to consumers. For example, ebay, the giant web auction site, enables people to sell their goods to other consumers by auctioning their merchandise of the highest bidder or for a fixed price.

Social technology

the technology supported content generation and social networking.

Affiliate revenue model

websites called affiliate websites send visitors to other websites in return for a referral fee or percentage of the revenue from any resulting sales. Referral fees are also referred to as lead generation fee. Amazon used affiliates that steer business to the amazon websites by placing amazon logos on their blogs.

Net marketplaces

which are sometimes called e-hubs, provides a single, digital marketplace based on internet technology for many buyers and sellers.

Interactivity

two-way communication between merchant and consumer and peer-to-peer communication among friends.

Private industrial networks

typically consist of a large firm using a secure website to link to its suppliers and other key business partners. The buyer owns the network and it permits the firm and designated supplies, distributors and other business partners to share product design and development.

Community provider

Provides an online meeting space where people with similar interests can communicate and find useful information. Examples - Facebook, Twitter

Service provider

Provides applications such as photo sharing, video sharing, and user generated content as services: provides other services such as online data storage and backup Example - Google docs, SalesForce, photobucket.com, dropbox,

Portal

Provides initial point of entry to the web along with specialized content and other services. Example - Yahoo, MSN, AOL

Intellectual property

Refers to the tangible and intangible products of the mind for which the creator claims a property right. Such as digital video, music, photos, text, and artwork over the web.

Universal standards

(internet) all nations around the world share them and enable any computer to link with any other computer regardless of the technology platform each is using.

Content providers

Creates revenue by providing digital content, such as news, music, photos, or video over the web. The customer may pay to access the content or revenue may be generated by selling advertising space. Example - Apple Music, GettyImages.com, MSN Games

Menu costs

digital markets are flexible and efficient because they operate with reduced search and transaction costs, lower menu cysts (merchants' costs of changing prices), greater price discrimination and the ability to change prices dynamically based on market conditions.

Business to consumer (B2C)

electronic commerce involves retailing products and services to individual shoppers. Amazon, Walmart, and apple music are examples of this.

Business-to-business (B2B)

electronic commerce involves sales of goods and services among businesses. Elemica's website for buying and selling chemicals and energy is an example.

Free/freemium revenue model

firms offer basic services or content for free and charge a premium for advanced or special features. Example : Google offers free applications but charges for premium services. Pandora too.

Search costs

for consumers, universal standards reduce these search costs which are the efforts required to find suitable products.

Personalization

E-commerce technologies permit personalization, Merchants can target their marketing messages to specific individuals by adjusting the message to a person's click-stream behavior, name, interests, and past purchases.

Digital goods

Music tracks, video, Hollywood movies, software, newspapers, magazines, and books can all be expressed, stored, delivered and sold as purely digital products.

Subscription revenue model

a website offering content or services charges a subscription fee for access to some or all of its offerings on an ongoing basis. Use the revenue model. Netflix.

Revenue model

a firm's revenue model describes how the firm will earn revenue, generate profits, and produce a superior return on investment. Although many e-commerce revenue models have been developed, most companies rely on one or some combination of the following six revenue models : Advertising, sales, subscription, free.freemium, transactions fee, and affiliate.

Marketspace

a marketplace extended beyond traditional boundaries and removed from a temporal and geographic location.

Advertising revenue model

a website generates revenue by attracting a large audience of visitors who can then be exposed to advertisements.

Transaction fee revenue model

company receives a fee for enabling or executing a transaction. Ebay provides an online auction marketplace and receives a small transaction fee from a seller if the seller is successful in selling an ite,

Crowdsourcing

beyond merely soliciting advice, firms can be actively helped in solving some business problems by using this. BMW launched a crowdsourcing project to enlist the aid of customers in designing a vehicle for 2025.

Geoadvertising services

can tell you where to find the nearest italian restaurant.

Behavior marketing

many e-commerce marketing firms used this technique to increase the effectiveness of banners, rich media, and video ads. This refers to tracking the clickstreams (History of clicking behavior) on thousands of websites to understand their interest and intention and expose them to advertisements that are uniquely suited to their online behavior. Used within apps or websites.

Podcasting

method of publishing audio or video broadcasting through the internet, allowing subscribing users to download audio or video files onto their personal computers, smartphones, tablets or portable music player.

Dynamic pricing

online retailers from Amazon to Walmart change prices on thousands of products based on the time of day, demand for the product, and users' prior visits to their store.

Micropayment systems

provide content producers with a cost-effective method for processing high volumes of very small monetary transactions. Apply iTunes stores.

E-tailers

selling physical products directly to consumers or to individual businesses Example - Amazon, Blue Nile

Price discrimination

selling the same goods, or nearly the same goods, to different targeted groups at different prices. For instance, online merchants can discover a consumer's avid interest in expensive, exotic vacations and then pitch high-end vacation plans to that consumer at a premium price, knowing this person is willing to pay extra for such a vacation.

Social shopping

sites such as Pinterest you can swap shopping ideas with friends. Facebook offers the like button to let your friends know you admire a product, service or content and in some cases purchase something online.

Wisdom of crowds

some argue that, in a phenomenon called the wisdom of crowds, large numbers 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.

Market entry costs

the cost merchants must pay simply to bring their goods to market. Internet and e-commerce greatly lower these costs.

Digital goods

the internet digital marketplace has greatly expanded sales of digital goods. These goods can be delivered over a digital network.

Social technology

the internet provides a unique many-to-many model of mass communication.

Dynamic pricing

the price of a product varies depending on the demand characteristics of the customer or the supply citation of the seller.

Information density

the total amount and quality of information available to all market participants, consumers, and merchants alike.

Mobile commerce or m-commerce

the use of handheld wireless decides for purchasing goods and services from any location.