CIS QUIZ 2 ch. 7

6 COMMON TYPES OF E-COMMERCE

1. Business to consumer (B2C): is business or transactions conducted directly between a company and consumers who are the end-users of its products or services. The business-to-consumer as a business model differs significantly from the business-to-business model, which refers to commerce between two or more businesses. 2. B2B (business-to-business):, also known as e-biz, is the exchange of products, services or information (aka e-commerce) between businesses 3. Customer to customer (C2C): is a business model that facilitates an environment, usually online, where customers can trade with each other. Two implementations of C2C markets are auctions and classifieds. 4. Business-to-employee (B2E): companies providing services to employees. 5. E-government: government providing services to citizens. 6. m-commerce: use of commerce over a wireless environment.

Various online services of B2C commerce

1. Electronic retailing(e-tailing): direct sale of products through electronic storefronts of electronic malls usually designed around an electronic catalog format and/or auctions. 2. Electronic Storefronts: websites that represents a single store. has a unique url, usually has an extension of physical stores: Chanel, forever 21... 3. electronic malls: collection of individual stores under one website. 2 types of cyber malls: i) referral malls: can't buy anything, so the consumer is transferred from the mall to the particular storefront. ii) for example: ebay. you might shop from many stores but make one transaction at the end. it provides a shopping cart to gather items from various vendors. 4. cyber-bankng: involves conducting various banking activities from home, work place, or on road through electronic. range from paying bills to applying for loans. more convenient and saves time. it attracts remote customers, inexpensive about 2 cents cost per transaction vs. 1.07 at a physical branch. 5. online securities trading: companies use computers to trade stocks, bonds, and other financial instruments. (e-trade ameritrade, and charles schwab) why? bc its much cheaper and more convenient. 6. online job markets: internet offers a promising new environment for job seekers and for companies searching for hard-to-find employees. govt. agencies can accept resumes and applications via internet. 7. travel services: vacation companies offers services online that allows the consumers to be able to purchase airline tickets, book hotel rooms, and rent cars. 8. online advertising: internet ads can be updated any time at a minimal cost and therefore can be kept current. these ads can reach very large numbers of potential buyers all over the world. they are generally cheaper. they can also be interactive and target specific interest groups and/or individuals. 9. advertising methods: banners, pop ups, and emails.

ethical and legal issues related to commerce

1. fraud on the internet: ex: stock promoters falsely spread positive rumors about the prospects of the companies, they touted in order to boost the stock price. info might have been true, but promoters did not disclose that they were paid to talk up the companies. frauds exist in auctions, selling bogus investments and setting up phantom business opportunities. frauds can pass via emails. 2. Domain names: ex: delta originally could not obtain the internet domain name delta.com because delta faucet had already purchased it. delta faucet had been in business under that name since 1954, so it had legitimate business interest in using the domain name. 3. Cybersquatting: refers to the practice of registering or using domain names for the purpose of profiting from the goodwill or the trademark that belongs to someone else. ex: domain tasting: lets registrars profit from the complex money trails of pay per click advertising. 4. taxes and other fees: ex: some people claim that the state in which the seller is located desires the entire sales tax. others contend that the state in which the server is located should also receive some of the tax revenues. As early as 2015, all but five states impose sales taxes on online purchase, and an increasing number have passed legislation to force online retailers to begin collecting those taxes from customers. 5. copyright: people tend to buy a piece of software and then share it with others. which isn't legal. even copying material from websites without permission is a violation of copyright laws.

3 b2b models

1. sell-side markets: organizations attempt to sell their products or services to other organizations electronically from their own private e-marketplace website/or from a third party website. key mechanisms are forward auctions and electronic catalogs that can be customized for each large buyer. ex: dell computers use auctions extensively. organizations can also use 3rd party auction sites, such as ebay, to liquidate items. seller can be manufacturer, distributor, or retailer. seller uses this mechanism to increase sales, reduce selling and advertising expenditures, increase delivery speed, and lower administrative costs. customers can also configure their orders online, this displays flexibility of the service. 2. Buy-Side Marketplaces: an organization attempt to procure needed products or services from other organizations electronically. a major method of procuring goods and services from other organizations electronically. a major method is the reverse auction. uses this to streamline the procurement process. the goal is to reduce both the costs of items procured and the administrative expenses involved in procuring them. it can also shorten the procurement cycle time. i.e (e-procurement) 3. electronic exchanges: electronic markets are independently owned by a 3rd party and they connect many sellers with many buyers. i) direct materials: inputs to the manufacturing process, such as safety glass used in automobile windshields and window. ii) indirect materials: items such as office supplies, that are needed for maintenance, operations, and repairs. 3 basic types of public exchanges: 1) vertical: connect buyers and sellers in a given industry. plastics and paper industry. are frequently owned and managed by a consortium, (a group of major players in an industry) 2) horizontal exchanges: connect buyers and sellers across many industries. they are used primarily for mro materials. ex: traderscity, global sources, and alibaba. 3) functional exchanges: needed services such as temporary help or extra office space are traded on an "as needed" bases. ex: employease.