Chapter 7

E-business

A broader definition of e-commerce including the buying and selling of goods and services, and also servicing customers, collaborating with partners, conducting e-learning and conducting electronic transactions within an organization

Electronic mall

A collection of individual shops under a single Internet address

Click through advertising

A company pays only if someone clicks on the ad

Auction

A competitive process in which either a seller solicits consecutive bids from buyers or buyers solicit consecutive bids from sellers

Communitainment

A driver of online advertising, The blending of community, communication, and entertainment into a new form of online activity driven by consumers

person-to person payment

A form of e-cash that enables two individuals or an individual and a business to transfer funds without using a credit card

Brand advertising

A large advertising campaign relying on a brand name or logo that emphasizes the company's brand and utilizes special features like fan pages that are unique to Facebook and other social networking sites

Buy-side marketplace

A model in which organizations attempt to buy needed products or services from other organizations electronically; major method reverse auctions

Domain tasting

A practice of registrants using the 5 day grace period to profit from pay-per-click advertising

Multichanneling

A process where a company integrates its online and offline channels

Forward auction

A type of auction where sellers have many potential buyers bidding and the highest bid wins

Broadcaster

A video entertainment community and live webcam social network

Electronic storefront

A website that represents a single store

Self-service advertising

Advertising purchased without the assistance of a sales representative

Intermediary

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

Electronic credit cards

Allow customers to charge online payments to their credit card account

Stored-value money cards

Allow you to store a fixed amount of prepaid money and then spend it as necessary

Advertising

An attempt to disseminate information in order to influence a buyer-seller transaction

Virtual organization

An organization that is engaged only in e-commerce; i.e. no physical location but customers can be uncomfortable with online transactions and there are no face-to-face interactions

E-checks

Are similar to paper checks and are used mostly in B2B

Permission marketing

Asks the consumer to give their permission to voluntarily accept online advertising and e-mail

Purchasing cards

B2B equivalent of electronic credit cards and are typically used for unplanned B2B purchases

Society

Benefits of e-commerce to ______: Ability to easily and conveniently deliver information services and products to people in cities, rural areas, and developing countries

Customers

Benefits of e-commerce to ______: Access a vast number of products and services around the clock (24/7/365)

Electronic tendering system

Business or government request quotes from suppliers; uses B2B or (G2B) with reverse auctions

Online auctions

Companies run auctions of various types on the Internet to sell their good

Deep discounters

Company offers deep price discounts

Horizontal exchange

Connects buyers and sellers across industries and are used mainly for MRO materials

Vertical exchange

Connects buyers and sellers in a given industry

Product customization

Customers use the Internet so self-configure products. Sellers then price them and fulfill them quickly

Virtual bank

Dedicated entirely to Internet transactions

Electronic commerce (e-commerce)

Describes the buying, selling, transferring, or exchange of products, services, or information via computer networks, including the Internet; the exchange of money over the Internet

Privacy

E-commerce provides opportunities for businesses and employees to track individual activities on the WWW using cookies or special spyware. This allows information to be tracked, compiled, and stored as a profile and this profile can be sold to other businesses

Banners

Electronic billboards

Buyers sellers

Exchanges have many ____ and ______

Order fulfillment

Finding the product to be shipped, packaging the product, arranging for speedy delivery, and handling returns of unwanted or defective goods

forward reverse

In general _____ auctions result in higher prices over time while _____ auctions result in lower prices over time

E-commerce

Increases the reach of organizations, removes barriers preventing starting up a business, drastically changes the nature of competition

Cyberbanking

Involves conducting banking activities from home, a place of business, or on the road online instead of at a physical bank location

Online service

Involves customers accessing services via the web

Online direct marketing

Manufacturers or retailers sell directly to the customer with e-commerce

Group purchasing

Multiple buyers combine orders so that they constitute a large volume and therefore attract more seller attention

Functional exchanges

Needed services such as temporary help or extra office space are traded on an as needed basis

Membership

Only members of the organization can use the services provided

Brick and Mortar

Organizations that are purely physical; i.e. traditional stores with limited geographical reach

Click and mortar

Organizations that conduct some e-commerce, yet their business is primarily done in the physical world; i.e. physical locations and online, hybrid strategy, makes it hard to integrate the two environments

e-procurement

Purchasing by using electronic support

Digitalization

Pure vs. Partial EC depends on the degree of ______ involved; the extent to which commerce has been transferred from physical to digital

Viral marketing

Receivers send information about your product to friends

Viral marketing

Refers to "word of mouth" marketing

Mobile commerce

Refers to commerce that is conducted in a wireless environment

Cybermediation

Refers to the creation of whole new companies/intermediaries that simply could not have existed before the advent of e-commerce

Cybersquatting

Registering domain names solely for the purpose of selling them at a higher price

Group purchasing

Small buyers aggregate demand to get a large volume; then the group conducts tendering or negotiates a lower price

Reintermediation

Steps are added to the value chain as "new players" (intermediaries) are added to the business process

web-browser plug-in

Stumble upon is a ________ that allows its users to discover and rate webpages, photos, videos, and news articles

Performance-based advertising

The advertising company pays only for measurable results; that is, when someone clicks on a company's ad and goes on to purchase something

Electronic retailing (e-tailing)

The direct sale of products and services through electronic storefronts or electronic malls, usually designed around an electronic catalog format and/or auction

physical digital

The product, process, or delivery agent can be ________ or ________

E-government

The use of Internet technology in general and e-commerce in particular to deliver information about public services to citizens (G2C) and business partners or suppliers (G2B)

Pop-up ads

These ads appear in front of the current browser window

Pop-under ads

These ads appear under the current browser window

Smart cards

These contain a chip called a microprocessor that can store a considerable amount of information and are multipurpose cards

Consumer to consumer (C2C)

Type of e-commerce where an individual sells products to another individual

Business to business (B2B)

Type of e-commerce where both the sellers and buyers are businesses

Affiliate marketing

Vendors ask partners to place logo or banners on their site. If customers click on the logo, or go to vendor's site, and buy, then vendor pays commission to partners

Usites

Web sites devoted to user content

Impression based advertising

When a company purchases a set amount of impressions (a single instance of a n ad appearing on a web site)

Channel conflict

When manufacturers exclude their channel partners, such as distributors, retailers, dealers, and sales reps by selling their products directly to consumers, usually through e-commerce

online database

Yelp hosts an _____ of user generated reviews of local businesses

Technological

______ limitations of e-commerce are: Lack of universally accepted security standards, Insufficient telecommunication bandwidth, expensive accessibility

Intermediaries

______ provide information and/or provide value-added services

B2B

_______ (acronym) the type of e-commerce that represents the vast majority of e-commerce

Reverse auction

A type of auction with one buyer, usually an organization, that wants to buy a product or service. The buyer posts a request for quotation, which has detailed information on the desired purchase and sellers submit bids; the lowest bidder wins the auction

Find the best price

A type of e-commerce where the customer specifies needs and an intermediary compares providers an shows the lowest prices

Name your own price

A type of e-commerce where the customers decide how much they want to pay

Community

A type of website for advertising emphasizes being a part of something and good for specific advertising

Games

A type of website for advertising good for very specific advertising

Commerce

A type of website for advertising highest reach and not conducive to selling

Entertainment

A type of website for advertising large reach strong targetability

Portals

A type of website for advertising most popular, best reach but not able to target

Communications

A type of website for advertising not good for branding and low targetability

News/weather/sport

A type of website for advertising poor targetability

Search

A type of website for advertising second largest reach and highest advertising value

Disintermediation

Occurs when a business sells directly to customers and cuts out the intermediary; when intermediary services can be automated or eliminated

Sell-side marketplace

Organizations sell their products and services electronically similar to B2C and B2B

Spamming

The indiscriminate distribution of electronic ads without permission of the receiver

Business to employee (B2E)

Type of e-commerce where an organization uses e-commerce internally to provide information and services to its employees; Companies allow employees to manage their benefits, take training classes electronically, buy discounted insurance, and travel or event tickets

Business to consumer (B2C)

Type of e-commerce where the businesses are sellers, consumers are buyers

Non-technological

_______ limitations of e-commerce are; perception that e-commerce is insecure, unresolved legal issues, lacks a critical mass of buyers and sellers

True

(T/F) All of these are drivers of online advertising: popularity of Usites, mainstreaming of Internet, declining use of mainstream media, fragmentation of content consumption, multitasking

False

(T/F) Benefits of e-commerce are it closes off international markets, and raises the cost of processing, distributing, and retrieving information