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