CIS Chapter 7

8 types of websites for advertising

1. Portals 2. Search 3. Commerce 4. Entertainment 5. Community 6. Communications 7. News/weather/sports 8. Games

Drivers of today's online advertising

1. The emergence of "communitainment." 2. The increasing popularity of Usites. 3. Mainstreaming of the Internet. 4. Declining usage of traditional media. 5. Fragmentation of content consumption. 6. Consumers are multitasking and they do not like ads.

order fulfillment

All activities involved in completing a sales transaction, beginning with making the sale and ending with on-time delivery to the customer.

Pure vs. Partial e-commerce

depends on the degree of digitation involved. Brick and mortar organizations; virtual organizations; click and mortar organizations.

virtual organizations

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

e-government electronic commerce

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.

Legal issues specific to e-commerce

-Fraud on the Internet -Domain Names -Cybersquatting -Domain Tasting -Taxes and Other Fees -Copyright

Electronic Business

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

Auctions

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

business-to-employee electronic commerce

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

Major e-commerce mechanisms

Auctions, forward auctions, reverse auctions.

buy-side marketplaces

B2B model in which organizations buy needed products or services from other organizations electronically, often through reverse auctions.

sell-side marketplaces

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

business-to-consumer electronic commerce

E-commerce transactions that involve businesses providing goods or services to consumers.

channel conflict

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

Electronic commerce

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

Reverse auctions

an auction in which one buyer, usually an organization, seeks to buy a product or 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 bid.

consumer-to-consumer electronic commerce

applies to customers offering goods and services to each other on the Internet.

online advertising methods

banners, pop-up ads, pop-under ads, permission marketing, viral marketing.

Issues in E-tailgating

channel conflict and order fulfillment

Online service industries

cyber banking, online securities trading, online job market, travel services, online advertising

electronic payments

e-checks, electronic credit cards, purchasing cards, electronic cash

horizontal exchanges

electronic marketplaces that connect buyers and sellers across many industries, used mainly for MRO materials.

vertical exchanges

electronic marketplaces that connect buyers and sellers in a given industry.

functional exchanges

electronic marketplaces where needed services such as temporary help or extra office space are traded on an "as-needed" basis.

E-commerce business models

online direct marketing, electronic tendering system, name-your-own price, find-the-best-price, affiliate marketing, virtual marketing, group purchasing, online auctions, battering online, product customization, deep discounters, membership.

Brick and mortar organizations

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

click and mortar organizations

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

Mobile commerce

the ability to purchase goods and services through a wireless Internet-enabled device.

business-to-business electronic commerce

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