Info chpt. 10

dynamic pricing

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

private exchange

another term for private industrial network is a _______

crowdsourcing

companies can reach out to customers for help in the design of a product. Kickstarter arguably one of the most famous e-commerce crowdfunding site.

sales revenue model

companies derive revenue by selling goods, info, or services to customers.

C2C

e-commerce involves consumers selling directly to consumers. EX: eBay.

B2C

e-commerce involves retailing products and services to individual shoppers. EX: barnesandnoble.com

electronic data interchange (EDI)

enables the computer-to-computer exchange between two organizations of standard transactions such as invoices, bills of lading, shipmen schedules, or purchase orders. 80% of B2B e-commerce are still based on proprietary systems.

ubiquity

internet/web technology is available everywhere: at work, at home, and elsewhere by desktop and mobile devices. Mobile devices extend to local areas and merchants.

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.

community provider

provides an online meeting place where people with similar interests can communicate and find useful information. EX: Facebook, Google+, 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. EX: SaaS

Micropayment systems

provides content providers with a cost-effective method for processing high volumes of very small monetary transactions. (anywhere from .25-5.00 per transaction). EX: largest micropayment on web is the Apple's ITunes store.

market creators

provides digital environment where buyers and sellers can meet, search for products, display product, and establish prices for those products; can serve consumers or B2B e-commerce, generating revenue from transaction fees . EX: eBay, priceline, exostar, elmica.

lead generation fees

referral fees are also referred to as ______.

behavioral targeting

refers to tracking the clickstream of individuals on thousands of websites to understand their interest and intentions and expose them to advertisements that are uniquely suited to their online behavior.

transaction broker

saves users money and time by processing online sales transactions and generating a fee each time a transaction occurs. EX: expedia ETrade.com

AdSense

selling add spaces. Google's revenue derives from this.

social graph

the collection of personal social networks. EX: Facebook

information asymmetry

the internet reduces ______ _______ .

e-commerce technology dimension

ubiquity global reach universal standards richness interactivity information density personalization/customization social technology these make up?

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.

advertising revenue model

a website generates revenue by attracting a large audience of visitors who can then be exposed to advertising. most widely used revenue model in e-commerce.

AdWord

selling key words. Google's revenue derives from this.

social shopping

sites such as Pinterest and Kaboodle, you can swap shopping ideas with friends.

net marketplaces

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

portals

Gateways to the web and are often defined as those sites that users set as their home page. Include: search engines such as Google and Bing even if few make these sites their home page.

market entry costs

It is the cost merchants must pay simply to bring their goods to market. universal technical standards greatly lower this cost.

transaction cost

It is the cost of participating in a market. ubiquity reduces this cost. Like, time and money spent traveling to the market and less effort to make a purchase.

search cost

It is the effort required to find suitable products. universal standards reduce this cost.

true

Net marketplaces are industry-owned or operate as independent intermediaries between buyers and sellers. (true or false)

true

Net marketplaces generate revenue from purchase and sale transactions and other services provided to clients. (true or false)

planning

Phase 1 _______: envision web presence; determine personnel. MILESTONE: web mission statement

website development

Phase 2:_____: acquire content; develop a site design; arrange for hosting the site. MILESTONE: website plan

web implementation

Phase 3_____: develop keywords and metatags; focus on search engine optimization; identify potential sponsors. MILESTONE: a functional website

social media plan

Phase 4_____: identify appropriate social platforms and content for your products and services. MILESTONE: a social media plan

social media implementation

Phase 5____: develop Facebook, Twitter, and Pinterest presence. MILESTONE: functioning social media presence

mobile plan

Phase 6____: develop a mobile plan; consider options for porting your website to smartphones. MILESTONE: a mobile media plan

administrative overhead

_____ _____ includes processing paper, approving purchase decisions, spending time using the telephone and fax machine, arranging for shipping, and recieving the goods.

information density

_____ also helps merchants differentiate their products in terms of cost, brand, and quality.

EDI

_____ originally automated the exchange of documents such as purchase orders, invoices, and shipping notices.

transaction fee revenue model

a company receives a fee for enabling or executing a transaction. EX: eBay provides online auction and receives a percentage of a sale.

marketspace

a marketplace extended beyond traditional boundaries and removed from a temporal and geographic location. Like, from your desk at work or home or from your mobile device.

geoinformation service

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

geoadvertising service

a service that can tell you where to find the nearest restaurant, store, etc.

geosocial service

a service that can tell you where your friends are meeting. about 20% of smartphones use this service.

electronic commerce

business-to-consumer (B2C) e-commerce business-to-business (B2B) e-commerce consumer-to-consumer (C2C) e-commerce these make up the three major ____ ____ transaction categories.

customization

changing the delivered product or service based on a user's preferences or prior behavior.

internet business models

e-tailer transaction broker market creator content provider community provider portal service provider

zero

in general, for digital goods, the marginal cost of producing another unit is about _____. however the cost of producing the first unit is relatively high. cost of delivering can be highly variable.

Location-based services

includes geosocial, geoadvertising, and geoinformation services. 74% of smartphone owners use this.

price discrimination

information density can allow merchants information for this, it is selling the same goods, or nearly the same goods to different targeted groups at different prices.

transparent

information density in e-commerce markets make prices and costs more _______.

podcasting

is a method of publishing audio or video broadcast through the internet, allowing subscribing users to download audio or video files onto their personal computers, smartphones, tablets, or potable music players.

streaming

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

intellectual property

refers to tangible and intangible products of the mind for which the creator claims a property right.(copyright, patent,etc.)

cost transparency

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

Richness

refers to the complexity and content of a message. video, audio, and text messages are possible.

Price transparency

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

Personalization/Customization

the technology allows personalized messages to be delivered to individuals as well as to groups.

clickstreams

history of clicking behavior

DoubleClick

Google's revenue derives from this, they sell display ad spaces to advertisers.

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.

TRUE

all three types of e-commerce transactions can take place using m-commerce technology. (true or false)

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. EX: sheets of steel for an auto body production

exchanges

are independently owned third-party Net marketplaces that connect thousands of suppliers and buyers for spot purchasing.

brick-and-clicks

are subsidiaries or divisions of existing physical stores and carry the same products. EX: Walmart.com or Staples.com

individual websites and within apps and on various advertising networks

behavioral targeting takes place at two levels _____ and _________ that track users across thousands of websites.

true

building a successful e-commerce presence requires a keen understanding of business, technology, ad social issues as well as a systematic approach. (true or false)

content provider

creates revenue by providing digital content, such as news, music, photos, or videos, over the web. The customer may pay to access the content, or revenue may be granted by selling advertising space. EX: ITunes, Games, WSJ, Gettyimages

revenue model

describes how the firm will earn revenue, generate profits, and produce a superior return on investment.

works of mind

digital goods are intellectual property and can be defined as _______ of ______.

menu costs

digital markets lower this type of cost. It is the merchant's costs of changing prices.

B2B

e-commerce involves sales of goods and services among businesses.

information asymmetry

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

free/freemium revenue model

firms offer basic services or content for free and charge a premium for advanced or special features. EX: Pandora. one problem is getting people to upgrade. none of the freemium music streaming sites have earned a profit to date. Starting to put together free services and ad revenues is more profitable than the paid subscription part of their business.

moment of purchase

given the interactive nature of e-commerce technology, much information about the consumer can be gathered in the marketplace at the ______ of ______.

spot purchasing

goods are purchased based on immediate needs, often from many suppliers.

digital goods

internet digital marketplace has greatly expanded this good. Goods that can be delivered over a digital network. EX: music tracks, video, Hollywood movies, software, newspapers, etc.

e-tailer

online retail store, come in all sizes. they are similar to typical brick-and-mortar storefront, except that customers only need to connect to the internet to check their inventory and place an order.

revenue

portals generate ____ primarily by attracting very large audiences, charging advertisers for display ad placement, collecting referral fees or steering customers to other sites, and charging for premium services.

wisdom of crowds

some argue that 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. suggests that firms should consult with thousands of their customers first as a way of establishing a relationship with them and second understand better how their products and services are used and appreciated (or rejected).

long tail marketing

the internet allows marketers to find potential customers inexpensively for products where demand is really low. there is always a demand for almost any product.

disintermediation

the removal of organizations or business process layers responsible for the intermediary steps in value chain. EX: selling directly to consumers or reducing the number of intermediaries.

Global Reach

the technology reaches across national boundaries, around the world.

Social Technology

the technology supports content generation and social networking. internet and e-commerce technologies have evolved to be much more social by allowing users to create and share with their friends.

Interactivity

the technology works through interaction with the user.

Information Density

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

true

the two most important management challenges in building a successful e-commerce presence are.... 1. developing a clear understanding of your business objectives. 2. knowing how to choose the right technology to achieve those objectives. (true or false)

m-commerce

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

six

theoretically, it takes ___ links for any one person to find another person anywhere on earth.

looking at the nature of the participants and platform participants use in a transaction

there are many ways to classify electronic commerce transactions 1. _____ and 2._____.

Universal Standards

there is one set of technology standards, name Internet standards.

Private industrial networks

typically consists of a large firm using a secure website to link to its suppliers and other key business partners.