BA 370 Chap 10 E-Commerce
Exchanges
3rd party of net marketplaces that connect 1000s of suppliers and buyers for spot purchasing.
Private Exchange
Another term for private industrial network
Market Creators
Build digital environment in which buyers and sellers can meet, disply products, search for products and establish prices.
Net Market Places
Called e-hubs, provide a single, digital marketplace based on internet technology for many different buyers and sellers. Generate revenue from purchase and sale transactions.
Customization
Changing delivered product or service based on a user's preferences or prior behavior.
Wisdom of Crowds
Large numbers of people can make better decisions about a wide range of topics/products than a single person/even small committee
Dynamic Pricing
Price of a product varies depending on demand characteristics of the customer/ supply situation of seller
Search Costs
Reduced by universal standards- effort required to find suitable products.
Disintermediation
Removal of organizations/business process layers responsible for intermediary steps in value chain.
Behavioral Targeting
Tracking history of clicking behavior.
E-Commerce
Use of the Internet and web to transact business. Digitally
Long-Tail Marketing
ability of firms to profitably market goods to very small online audiences, largely because of the lower costs of reaching very small market segments. (People who fall into long tailed ends of a bell curve)
Richness
complexity and content of a message. Able to provide personal, face-to face service using aural and visual cues when making a sale.
Private Industrial Networks
consist of large firm using an extranet 2 link to its suppliers and other key business partners.
Streaming
continuous stream of content to a users device without being stored locally on the device.
Market Entry Costs
cost merchants must pay simply to bring their goods to the market
Transaction Costs
cost of participating in a market.
Electronic Data Interchange (EDI)
enables computer-2-computer exchange between 2 organizations of standard transactions such as invoices, bills, etc.
Prediction Markets
established a peer-2-peer betting markets where participants make bets on specific outcomes.
Crowdsourcing
firms being actively helped in solving some business problems using this method.
Free/freemium revenue model
firms offer basic services for free, while charging a premium for advanced/special features.
Digital Goods
goods delivered over digital network.
Marketspace
marketplace extanded byond traditional boundaries and removed from temporal and geographic location.
Menu Costs
merchants costs of changing prices
Podcasting
method of publishing audio/video broadcasts via the internet, allows users to download audio/video files onto their personal computers.
e-Tailers
online retail stores
Information density
otal amount and quality of information available to all market participants, consumers, and merchants alike.
Micropayment systems
provide content providers with a cost-effective method for processing high volumes of very small monetary transactions.
Transaction Free Revenue Model
receives a fee for enabling/executing a transaction. EX: Ebay
Intellectual Property
refers to all forms of human expression that can be put into a tangible medium such as text, cd's, dvd's
Cost Transparency
refers to the ability of consumers to discover the actual costs merchants pay for products.
Price Transparency
refers to the ease with which consumers can find out the variety of prices in a market.
Price Discrimination
selling the same goods to different targeted groups at different prices.
Community Providers
sites that create a digital online environment where people with similar interests can transact.
Subscription Revenue Model
web site offering content charges a subscription fee for access to some or all of its offerings on an ongoing basis.
Advertising Revenue Model
web sites generate revenue by attracting large audience who can be exposed to these advertisements
Affiliate Revenue Model
web sites send visitors to other web sites in return for a referral fee/percentage of the revenue from any resulting sales.
Social Shopping
you can swap shopping ideas with friends via the internet. Kaboodle.com
Co-Location agreement
your firm purchases a web server but located the server in a vendor's physical facility.