Info Systems Chapter 8

Digital Immigrants

Older, however, they are increasingly comfortable with technology, but they fundamentally view retail channels as separate and distinct

E-Commerce and M-Commerce

Online Shopping and Mobile Shopping

Digital Natives

The first generation who have grown up surrounded by digital devices

Two Basic Goals of E-Procurement Strategies/Solutions

1) Control Costs 2) Simplify Processes

Issues in Online Retailing

1) Resolving Channel Conflict 2) Resolving conflicts within click-and-mortar organizations 3) Managing order fulfillment and logistics 4) Determining viability and risk of online retailers 5) Identifying appropriate revenue (business) models

Mobile Browser

A Web browser that is optimized to display Web content effectively on a small mobile device such as a smart phone

Quick Response (QR) Codes

A machine readable code typically used to store a link to a URL or web address that can be read by a mobile device

Barcode

A machine-readable code consisting of numbers and a pattern of thick and thin lines that can be scanned to identify the object on which the code appears.

Mobile Visual Search

A search engine that uses an image instead of a text-based query to search for information on the Web

Electronic Wallet (E-Wallet)

A software application that can store encrypted information about a user's credit cards, bank accounts, and other information necessary to complete electronic transactions, eliminating the need to re-enter the information during the transaction.

Augmented Reality

A technology that superimposes a computer-generated image onto an image of the real world to provide information or entertainment

Short Message Service (SMS)

A technology used to send and receive text messages on mobile devices via telecommunications network

Electronic Fund Transfer (EFT)

A transfer of funds from one bank account to another over a computerized network

Mobile Payment

A type of smartphone app that lets an account holder pay people and businesses using a cell phone. Customers can pay for products at Macy's using Google Wallet.

Mobile Marketing

A variety of activities used by organizations to engage, communicate, and interact over Wi-Fi and telecommunications networks with consumers using wireless, handheld devices. Example: Sending special offers to customers who have opted into receiving discounts via SMS text messages

Near-Field Communication

Approach to mobile payment designed for payments in traditional retail stores. At check out, mobile user simply passes or taps his phone on merchant terminal and payment is transferred.

Need for Convenience

As economic and social factors lead to more stressful lives, consumers will be looking for products and shopping channels that reduce the impact on their time and financial resources, while satisfying their demand for immediate gratification and desirable goods and services

Mobile Banking

Carrying out banking transactions and other related activities via a mobile device

Channel Conflict

Competition between a manufacturer's distribution partners who sell through different channels. Channel conflict can occur at the wholesale, retail or internal sales department level.

SMS Database Strategy

Compiling and tracking short message service (SMS) codes to encourage customers to opt-in to receiving coupons and other offers via text message.

Empowered Price Sensitivity

Consumer empowerment to find the lowest price available for a product through the Web and mobile technology.

Channel Hopping

Consumers can now purchase products through traditional retailers, online, and via mobile devices and apps.

Nonlinear Search and Influence Patterns

Consumers today are influenced by a large range of new communications channels including social media, mobile ads, e-mail, search marketing, and other digital communications

Omni-Channel Retailing

Creating a seam-less cross-channel buying experience that integrates in-store, online, and mobile shopping

Corporate Procurement or Corporate Purchasing

Deals with the transactional elements of buying products and services by an organization for its operational and functional needs

Business-to-Business (B2B)

In these markets, the buyers, sellers, and transactions involve only organizations

Sell-Side Marketplace

In this model, organizations sell their products or services to other organizations from their own private website or from a third-party site

Spot Sourcing

Indirect materials in one industry are purchased as needed using this practice

MRO Supplies

Indirect supplies that are products used for maintenance, repair and operations (not resold to generate revenue)

Demand Management

Knowing or predicting what to buy, when and how much.

Horizontal Exchanges

Many-to-Many e-marketplaces for indirect materials such as office supplies, light bulbs, cleaning materials in any industry

Phone Displayed Barcode that Retailer Scans

Mobile payment systems that generate a QR code on the user's phone, which is in turn scanned by the retailer. Example: Starbucks payment system.

Functional Exchanges

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

Direct Procurement

Organizations procure materials to produce finished goods

Indirect Procurement

Organizations procure materials to produce products for daily operational needs

Maverick Buying

Outside the established system. Occurs if the procurement process is too complicated, so people will go outside the system and buy from a local vendor.

Mobile Bill Payments

Paying bills directly from cell phone

E-Sourcing

Refers to many different procurement methods that make use of an electronic venue for identifying, evaluating, selecting, negotiating and collaborating with suppliers

Digital Dependents

Represent the emerging generation of young people who are growing up in a world of broadband connections, constant connectivity, and related technology and become uncomfortable if they don't have access to it.

Mobile Phone Card Reader

Requires mobile phone users to insert a small card reader into the audio jack of mobile device. Card reader allows those with accounts to make or receive credit card payments without a merchant account

Horizontal Exchanges Definition

Serve many industries that use the same products or services (office supplies, cleaning materials, etc.)

Vertical Exchanges

Serve one industry along the entire supply chain (automotive, chemical, manufacturing, etc.)

Mobile Commerce (M-Commerce)

The buying and selling of goods and services using a wireless, handheld device such as a cellphone or tablet computer

Showrooming

The practice of examining products in a traditional retail store, sometimes with the help of a salesperson, and then purchasing the product online.

E-Procurement

The reengineered procurement process using e-business technologies and strategies

Mobile E-Commerce

The use of a wireless handheld device to order and/or pay for goods and services from online vendors. Example: Ordering pair of shoes from Zappos.com using a mobile app. Purchasing music from iTune from an iPad

Mobile Check-in Strategy

The use of mobile apps to enhance shopping behavior at retail outlets with discounts, coupons, descriptive videos, etc. Check into the store and receive points on their account just for visiting.

Mobile Retailing

The use of mobile technology to promote, enhance, and add to value to the in-store shopping experience. Example: using a coupon on cell phone when checking out at the Hard Rock Cafe

Vertical Exchanges for Direct Materials

These are B2B marketplaces where direct materials are traded usually in large quantities in an environment of long-term relationship known as systematic sourcing

Charge to Phone Bill with SMS Confirmation

This e-commerce payment solution is a lot easier than entering credit card and other information on a small mobile handheld device. Requires users to set up an account with a company like Zong.com. Enter phone number and receive text with pin number to complete transaction.

Micropayments

Transactions involving relatively small sums of money

Mobile Display Strategy

Use by retailers of QR codes and Short Message Service (SMS) technology to encourage store customers to view short videos featuring selected merchandise

Transfer of Funds from Payment Account Using SMS

User creates an account at a company like obopay.com and transfers money into it from a bank card account. Using phone and SMS, user can then transfer money to anyone else with a phone number. Receiver must create account to receive funds.

User Scan of 2D Tags Generated by Retailer

Uses QR codes or 2D tags to identify the merchant or payee. The buyer scans the merchant's tag using special smartphone app and then approves fund transfer when it shows on device.

Credit Card + Webform

Using a mobile Web browser, the buyer makes online purchases by entering his or her credit card number and other ID info.

Short Code

Works like a telephone number, except that it is only five or six characteristics long and easier to remember. You lease the short code and can use the code in promotions and interactive exchanges with customers. Example: American Idol voting