IST Chapter 7

virtual bank

A banking institution dedicated solely to Internet transactions.

electronic business (e-business)

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

smart card

A card that contains a microprocessor (chip) that enables the card to store a considerable amount of information (including stored funds) and to conduct processing.

electronic mall

A collection of individual shops under one Internet address.

auction

A competitive process in which either a seller solicits consecutive bids from buyers or a buyer solicits bids from sellers, and prices are determined dynamically by competitive bidding.

stored-value money card

A form of electronic cash on which a fixed amount of prepaid money is stored; the amount is reduced each time the card is used.

person-to-person payments

A form of electronic cash that enables the transfer of funds between two individuals, or between an individual and a business, without the use of a credit card.

multichanneling

A process in which a company integrates its online and offline channels.

electronic marketplace (e-marketplace)

A virtual market space on the Web where many buyers and many sellers conduct electronic business activities.

pop-up ad

An advertisement that is automatically launched by some trigger and appears in front of the active window.

pop-under ad

An advertisement that is automatically launched by some trigger and appears underneath the active window.

reverse auction

An auction in which one buyer, usually an organization, seeks to buy a product or a service, and suppliers submit bids; the lowest bidder wins.

forward auctions

An auction that sellers use as a selling channel to many potential buyers; the highest bidder wins the items.

business-to-employee electronic commerce (B2E)

An organization that uses electronic commerce internally to provide information and services to its employees.

sell-side marketplace

B2B model in which organizations sell to other organizations from their own private e-marketplace and/or from a third-party site.

benefits e-comemerce

Benefits to Society Ability to easily and conveniently deliver information, services and products to people in cities, rural areas and developing countries.

benefits e-commerce

Benefits to customers Access a vast number of products and services around the clock (24/7/365

benefits e-commerce

Benefits to organizations Makes national and international markets more accessible Lowering costs of processing, distributing, and retrieving information

banners

Electronic billboards, which typically contain a short text or graphical message to promote a product or a vendor.

mobile commerce (m-commerce)

Electronic commerce conducted in a wireless environment.

consumer-to-consumer electronic commerce (C2C)

Electronic commerce in which both the buyer and the seller are individuals (not businesses).

business-to-business electronic commerce (B2B)

Electronic commerce in which both the sellers and the buyers are business organizations.

business-to-consumer electronic commerce (B2C) Electronic commerce in which the sellers are organizations and the buyers are individuals; also known as e-tailing.

Electronic commerce in which the sellers are organizations and the buyers are individuals; also known as e-tailing.

public exchange (or exchange)

Electronic marketplace in which there are many sellers and many buyers, and entry is open to all; it is frequently owned and operated by a third party.

disintermediation

Elimination of intermediaries in electronic commerce.

spamming

Indiscriminate distribution of e-mail without the receiver's permission.

Bartering online

Intermediary administers online exchange of surplus products and/or company receives "points" for its contribution, which can be used to purchase other needed items (www.bbu.com).

Online direct marketing

Manufacturers or retailers sell directly to customers. Very efficient for digital products and services. Can allow for product or service customization (www.dell.com).

permission marketing

Method of marketing that asks consumers to give their permission to voluntarily accept online advertising and e-mail.

limitations e-commerce

Non-technological Limitations Perception that EC is unsecure Unresolved legal issues Lacks a critical mass of sellers and buyers

viral marketing

Online word-of-mouth marketing.

Membership

Only members can use the services provided, including access to certain information, conducting trades, etc. (www.egreetings.com).

virtual organizations

Organizations in which the product, the process, and the delivery agent are all digital; also called pure-play organizations.

brick-and-mortar organizations

Organizations in which the product, the process, and the delivery agent are all physical.

clicks-and-mortar organizations

Organizations that do business in both the physical and digital dimensions.

e-procurement

Purchasing by using electronic support.

Viral marketing

Receivers send information about your product to their friends.

cybersquatting

Registering domain names in the hope of selling them later at a higher price.

Group purchasing (e-coops)

Small buyers aggregate demand to get a large volume. The group then conducts tendering or negotiates a low price.

limitations e-commerce

Technological Limitations Lack of universally accepted security standards Insufficient telecommunications bandwidth Expensive accessibility

electronic storefront

The Web site of a single company, with its own Internet address, at which orders can be placed.

group purchasing

The aggregation of purchasing orders from many buyers so that a volume discount can be obtained.

channel conflict

The alienation of existing distributors when a company decides to sell to customers directly online.

electronic retailing (e-tailing)

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

business model

The method by which a company generates revenue to sustain itself.

electronic commerce (e-commerce)

The process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the Internet.

e-government

The use of electronic commerce to deliver information and public services to citizens, business partners, and suppliers of government entities, and those working in the public sector.

Electronic marketplaces and exchanges

Transactions are conducted efficiently (more information to buyers and sellers, lower transaction costs) in electronic marketplaces (private or public).

cyberbanking

Various banking activities conducted electronically from home, a business, or on the road instead of at a physical bank location.

Affiliate marketing

Vendors ask partners to place logos (or banners) on partner's site. If customers click on the logo, go to the vendor's site, and buy, then the vendor pays commissions to partners.

horizontal exchanges

buyers and sellers across many industries and are used primarily for MRO materials. Examples of horizontal exchanges are Worldbid.com (www.worldbid.com), Global Sources (www.globalsources.com), and Alibaba (www.alibaba.com).

vertical exchanges

connect buyers and sellers in a given industry. Examples of vertical exchanges are www.plasticsnet.com in the plastics industry, www.papersite.com in the paper industry, www.chemconnect.com in the chemical industry, and www.isteelasia.com in the steel industry.

functional exchanges

ctional exchanges, needed services such as temporary help or extra office space are traded on an "as-needed" basis. For example, Employease (www.employease.com) can find temporary labor by searching employers in its Employease Network.

pure vs. partial

electronic commerce depends on he degree of digitization involved.

Communitainment

is the blending of community, communication, and entertainment into a new form of online activity driven by consumers.

buy-side marketplace B2B

model in which organizations buy needed products or services from other organizations electronically, often through a reverse auction.

Product customization

Customers use the Internet to self-configure products or services. Sellers then price them and fulfill them quickly (build-to-order) (www.jaguar.com).

Electronic tendering system

Businesses request quotes from suppliers. Uses B2B with a reverse auction mechanism.

Online auctions

Companies run auctions of various types on the Internet. Very popular in C2C, but gaining ground in other types of EC (www.ebay.com).

Deep discounters

Company (for example, www.half.com) offers deep price discounts. Appeals to customers who consider only price in their purchasing decisions.

electronic payment systems

Computer-based systems that allow customers to pay for goods and services electronically, rather than writing a check or using cash.

Name-your-own-price

Customers decide how much they are willing to pay. An intermediary (for example, www.priceline.com) tries to match a provider.

Find-the-best-price

Customers specify a need; an intermediary (for example, www.hotwire.com) compares providers and shows the lowest price. Customers must accept the offer in a short time, or they may lose the deal.