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.