Ch.8 - E-Commerce

advantages of omnichannel

It improves customer satisfaction and retention. It allows to meet customers where they are. It retains more customers. It increases revenue. It improves brand recognition.

Banner ads (web marketing)

Usually placed on frequently visited Web sites, these ads are rather small (around 468 × 60 pixels) and employ simple animation. Clicking a banner ad displays a short marketing message or transfers the user to another Web site.

Government-to-government (G2G)

Disaster assistance and crisis response

Government-to-employee (G2E)

E-training

Information channels versus network channels (The four pillars of hypersociality)

Hypersocial organizations should forget information channels and concentrate on knowledge networks. As noted, the majority of the customers follow peers on social media. Customers already have some basic knowledge about a company and its products and services and have heard comments from the peers in their tribes. Companies should share knowledge and work to gain trust using social media. Gaining trust in an online world is more challenging than in the traditional world, and social media could play a major role in this.

Social messiness versus process hierarchy (The four pillars of hypersociality)

Hypersocial organizations should forget process and hierarchies and embrace social messiness. This new paradigm will be less rigid and less predefined but will allow people in an organization to interact as humans. People can make mistakes, but over time, they will correct themselves. This pillar realizes that the benefits of leveraging social media are much greater than its negatives

social media information system (SMIS)

an information system that includes all the components like other information systems (discussed in Module 1) such as hardware, software, people, and procedures that support content sharing among its members or users. - Three additional components of a SMIS include: 1. Application (app) providers: Social media sites such as Facebook, Twitter, LinkedIn, and Snapchat that create features and functions for the app and make them available for free to their users. 2. User communities: All the people (you and me) that use any of the social media apps. 3. Sponsors: Organizations and businesses that pay money to social media sites to advertise their products and services such as Walmart, Macy's, and Intel. Organizations and businesses could also use social media sites free of charge to promote their products and services and connect with their customers by creating fan pages, publishing FAQs, blogs, podcasts, and so forth.

(t/f) To achieve profitability, different e-commerce companies focus their operations in different parts of the value chain

true

The four pillars of hypersociality

(1) tribe versus market segment, (2) human-centric versus company-centric, (3) information channels versus network channels, and (4) social messiness versus process hierarchy

Disadvantages of e-commerce

- Bandwidth capacity problems (in certain parts of the world) - Security and privacy issues - Accessibility (not everybody is connected to the Web yet) - Acceptance (not everybody accepts this technology)

Advantages of e-commerce

- Creating better relationships with suppliers, customers, and business partners - Creating "price transparency," meaning all market participants can trade at the same price - Being able to operate around the clock and around the globe - Gathering more information about potential customers - Increasing customer involvement (e.g., offering a feedback section on the company Web site) - Improving customer service - Increasing flexibility and ease of shopping - Increasing the number of customers - Increasing opportunities for collaboration with business partners - Increasing return on investment because inventory needs are reduced - Offering personalized services and product customization - Reducing administrative and transaction costs

primary activities in Michael porter's value chain analysis

- Inbound logistics—Movement of materials and parts from suppliers and vendors to production or storage facilities; includes tasks associated with receiving, storing, and disseminating incoming goods or materials - Operations—Processing raw materials into finished goods and services. - Outbound logistics—Moving and storing products, from the end of the production line to end users or distribution centers. - Marketing and sales—Activities for identifying customer needs and generating sales. - Service—Activities to support customers after the sale of products and services.

advantages of multichannel

- It targets consumers at different stages of the buyer's activities. Unless urgent, when most shoppers see a product for the first time they are not ready to buy it. They like to browse, read reviews, compare pricing, and then commit to a purchase. - It leverages the power of marketplaces and search engines. Multichannel sellers have more freedom and flexibility and are able to take advantage of different features that each channel offers.

some common ways to optimize a Web site's traffic (search engine optimization)

- Keywords—Decide on a few keywords that best describe the Web site and use them consistently throughout the site's contents. - Page title—Make sure the page title reflects the site and its contents accurately. - Inbound links—Get people to comment on your Web site, using one of your top keywords. - Content—Update your Web content regularly. - Links to others—Develop relationships with other Web sites

A user-focused government Web site should include the following features:

- Responsive design: The users of a government Web site may use smartphones, tablets, or desktops to access the Web site for the needed information. The Web site should provide easy access to the requested information in proper format regardless of the device in use. - Interactive searchable calendars: The Web site should assist visitors to stay informed with up-to-date and searchable calendars for local events, meetings, and activities. The site should remove outdated activities promptly. - Search facility: The Web site should provide a search tool that enables visitors to search by keywords and find the needed information anywhere on the site and its related documents. - Online forms with online payment tools: The Web site should provide online forms that users can access online and pay online, or simply be able to download any needed form. This increases convenience and also reduces the unnecessary paperwork. In addition, it helps the agency to achieve its green goals. - Consistent design: The Web site should be unique to the community that it serves and provide a consistent look and feel throughout the site - E-mail alerts: The Web site should offer e-mail alerts related to emergencies and breaking news. - Intuitive navigations: The Web site should organize its content in a way that users can find the needed information fast by using logical searches. - ADA compliance. Although it might be challenging, the Web site has to be ADA compliant as required by law. - User-friendly access: Similar to any other system, a user-focused government Web site should provide easy access to frequently requested information in the header and footer of each page and provide multiple links to frequently asked information. - The front page: The Web site should utilize the front page as efficiently and effectively as possible. The front page is the most valuable real estate of any Web site and can play a major role in its success. This page is the gate to the system and should provide a quick glance at the latest news, events, and items for community interest.

disadvantages of the multichannel

- Selling on the wrong channels. While diversification is key to reaching a larger audience, launching a product on an unrelated channel can do more harm than good. A business may risk promoting products to the wrong community, audience, or industry. - An infrastructure must be in place in order to maintain a multichannel strategy. Listing on various channels, maintaining inventory, processing orders, and providing customer service can be very challenging if the business does not have an infrastructure in place.

E-commerce can enhance a value chain by offering new ways to reduce costs or improve operations, including the following:

- Using e-mail rather than regular mail to notify customers of upcoming sales can reduce costs. - Selling to customers via the company Web site can generate new sources of revenue, particularly from customers who live far away from the company's headquarters or physical store. - Offering online customer service can make products or services more appealing to customers.

The 9 major categories of e-commerce

- consumer to consumer (C2C) - consumer to business (C2B) - consumer to government (C2G) - business to business (B2B) - business to consumer (B2C) - business to government (B2G) - government to consumer (G2C) - government to business (G2B) - government to government (G2G)

B2C E-Commerce Cycle

1. Information sharing—A B2C e-commerce company can use a variety of methods to share information with its customers, such as company Web sites, online catalogs, e-mail, online advertisements, video conferencing, message boards, and newsgroups. 2. Ordering—Customers can use electronic forms or e-mail to order products from a B2C site. 3. Payment—Customers have a variety of payment options, such as credit cards, e-checks, and digital wallet. 4. Fulfillment—Delivering products or services to customers varies, depending on whether physical products (books, videos, CDs) or digital products (software, music, electronic documents) are being delivered. also varies depending on whether the company handles its own fulfillment operations or outsources them. Fulfillment often includes delivery address verification and digital warehousing, which maintains digital products on storage media until they are delivered. 5. Service and support—Service and support are even more important in e-commerce than in traditional commerce, given that e-commerce companies do not have a physical location to help maintain current customers. Because maintaining current customers is less expensive than attracting new customers, e-commerce companies should make an effort to improve customer service and support by using some of the following methods: e-mail confirmations and product updates, online surveys, help desks, and guaranteed secure transactions. - info sharing - ordering - payment - fulfillment - service and support - activities are the same in traditional commerce and probably occur in the same sequence, too. However, each stage has been transformed by Web technologies and the Internet.

Splash screen (web marketing)

A Web page displayed when the user first visits the site; it is designed to capture the user's attention and motivate the user to browse the site. The splash screen may display the company's logo as well as a message about any requirements for viewing the site, such as the need to install plug-ins.

Multichannel (B2C E-Commerce Evolution)

A customer uses one channel of a given business to purchase an item, including in-store, on a cell phone, on the company's Web site, social media channels, comparison shopping engines, third-party marketplaces, other companies' Web sites, and so forth. - These various channels are not connected to one another and different departments and channels do not share any data with each other. - If a customer orders online and goes to the business location, salespeople will not have access to his or her purchase history. - n this scenario, channels are in competition with one another, so consumers have to choose one channel and stick to it

cross-channel (B2C E-Commerce Evolution)

A customer uses several channels in order to buy an item. - This strategy offers freedom and convenience to the customer. - For example, "click & collect" allows customers to order online and pick up the item in-store or at some agreed-upon location. - Alternatively, a customer tries some items such as clothing in a store, thinks about it later at home, and eventually orders those clothes online

Hit (web marketing)

Any element of a Web page (including text, graphics, and interactive items) that is clicked counts as a hit to a server. Hits are not the preferred unit of measurement for site traffic because the number of hits per page can vary widely, depending on the number of graphics, type of browser used, and page size.

common business applications that use the Internet:

Buying and selling products and services Collaborating with other companies Communicating with business partners Gathering business intelligence on customers and competitors Providing customer service Making software updates and patches available Offering vendor support Publishing and disseminating information

Security features for voice-based e-commerce are expected to include the following:

Call recognition, so that calls have to be placed from specific mobile devices Voice recognition, so that authorizations have to match a specific voice pattern Shipping to a set address that cannot be changed by voice commands

Human-centric versus company-centric (The four pillars of hypersociality)

Human centricity directs all company activities and decisions toward providing value to the humans who are a company's customers, employees, or business partners. A hypersocial organization should engage with customers and satisfy their needs directly using social media. Personalization technologies used on Web sites such as Amazon demonstrate this.

advantages of cross-channel

It makes the buyer's purchase activities more enjoyable by catering to his or her habits. It makes customer service more personal. It attracts new customers faster. It improves the company's brand image. It gets a unique view of its customers. It increases sales opportunities. It allows the business to know its customers better.

Cost per thousand (CPM) (web marketing)

Most Web and e-mail advertising is priced based on the cost per thousand ad impressions. (M stands for mille, which means "thousand.") For example, a $125 CPM means it costs $125 for 1,000 ad impressions.

Government-to-business (G2B)

Sales of federal assets, license applications and renewals

Spot leasing (web marketing)

Search engines and directories offer space that companies can purchase for advertising purposes. Spots have an advantage over banner ads because their placement is permanent; banner ad placement can change from visit to visit. However, spots can be more expensive than banner ads, especially on high-traffic sites, such as Yahoo!.

Government-to-citizen (G2C)

Tax filing and payments; completing, submitting, and downloading forms; requests for records; online voter registration

pop-up ads (web marketing)

These display ads appear on top of a browser window, blocking the user's view.

Pop-under ads (web marketing)

These display ads appear underneath a browser window. They are less intrusive than pop-up ads

Meta tag (web marketing)

This HTML tag does not affect how a Webpage is displayed; it simply provides information about a Web page, such as keywords that represent the page content, the Web designer, and frequency of page updates. Search engines use this information (particularly the keywords) to create indexes.

Click-through rate (CTR) (web marketing)

This is computed by dividing the number of clicks an ad gets by the total impressions bought. For example, if an advertiser buys 100,000 impressions and gets 20,000 clicks, the CTR is 20 percent (20,000/100,000).

Cookie (web marketing)

This is information a Web site stores on the user's hard drive so it can be used for a later visit, such as for greeting a visitor by name. This information is also used to record user preferences and browsing habits.

ad impression (web marketing)

This refers to one user viewing one ad.

QR codes (quick response codes) (Mobile Marketing)

This strategy allows a user to scan a QR code; the user is then transferred to a Web site that displays a marketing message for a product or service.

omnichannel (B2C E-Commerce Evolution)

This strategy seeks to integrate the physical stores, the Internet, and mobile technologies. - Using this strategy, a sales associate who cannot find a product at his or her particular store will be able to quickly find it somewhere in the company's operations and have it sent to the customer free of charge. - The strategy is designed to create seamless communication among all sales channels

SMS (Short Message Service) and MMS (Multimedia Messaging Service) (Mobile Marketing)

This strategy sends short messages with offers to mobile device users. SMS only uses text and MMS uses multimedia that combines text, sound, and video.

Location-based marketing (Mobile Marketing)

This strategy uses ads that appear on mobile devices based on the location of a user relative to a specific business location (such as within a 2-mile radius of a business).

Mobile search ads (Mobile Marketing)

This strategy uses basic search engine ads such as Google or Bing designed for mobile devices. These ads usually include additional features such as click-to-call or click for maps.

Mobile image ads (Mobile Marketing)

This strategy uses image-based ads, such as banners, that appear on mobile devices. Because of screen size limitations, these images must be specifically designed for mobile devices.

In-game mobile marketing (Mobile Marketing)

This strategy uses mobile ads that appear within popular mobile games and can take several forms—such as banner pop-ups, full-page image ads, or video ads—that appear between loading screens.

App-based marketing (Mobile Marketing)

This strategy uses mobile apps, but an online business does not necessarily need to develop its own app. Services such as Google AdMob assist advertisers in creating mobile ads that appear within third-party mobile apps. Facebook helps advertisers create mobile ads that can be integrated with Facebook's mobile apps

Tribe versus market segment (The four pilars of hypersociality)

Tribes have their own language and protocols, and they identify with each other in some way, such as people from different economic and social classes that share the same interest. Companies should forget market segments and focus on tribes, which are based on group behavioral characteristics (market segments are based on individual consumer traits). Companies need to reach tribes with members who influence each other.

Click (web marketing)

When users click URLs or banner ads, they are transferred to other Web sites or shown marketing messages, and this is recorded by the Web server. For example, each time a certain keyword used for a search takes a user to a particular Web page, the advertiser who owns that site pays the search engine a cost per click

Search engine optimization (SEO) (E-Commerce Supporting Technologies)

a method for improving the volume or quality of traffic to a Web site. A higher ranking in search results should generate more revenue for a Web site. - For the average keyword used in a search, the search engine might list hundreds or thousands of Web sites, but most people visit only the top 5 or 10 sites and ignore the rest. Therefore, it is important to be among the top sites. - A comprehensive Web marketing campaign should use a variety of methods, and SEO is another method that can help improve business - Unlike Web-marketing methods that involve paying for listings on search engines, SEO aims at increasing a Web site's performance on search engines in a natural (and free) fashion - involves editing a site's contents and HTML code to increase its relevance to specific keywords. SEO includes techniques that make it easier for search engines to find and index a site for certain keywords

paypal

a popular online payment system used for many online transactions. Users with valid e-mail addresses can set up accounts and make secure payments using their credit cards or bank accounts.

e-cash

a secure and convenient alternative to bills and coins, complements credit, debit, and charge cards and adds convenience and control to everyday cash transactions.

value chain

a series of activities designed to meet business needs by adding value (or cost) in each phase of the e-commerce process. - created by Michael porter in 1985 - Typically, a division within a business designs, produces, markets, delivers, and supports its products or services. Each activity adds cost and value to the product or service delivered to the customer - is really about understanding what aspects of an organization's business add value for customers and then maximizing those aspects. - E-commerce, its applications, and its supporting technologies (like the Internet) are an example of these activities

Social Commerce (s-commerce)

a subset of e-commerce that is influenced by social networks and other online media enhanced by the ever-increasing power of smartphones. - Social networking sites - Group buying platforms - Peer-to-peer e-commerce platforms - Recommendation Web sites - Participatory e-commerce - Social advice - User-curated shopping

smart card

about the size of a credit card and contains an embedded microprocessor chip for storing important financial and personal information. The chip can be loaded with information and updated periodically.

advertising model (e-commerce business models)

an extension of traditional advertising media, such as radio and television. Directories such as Yahoo! provide content (similar to radio and TV) to users for free. By creating more traffic with this free content, they can charge companies for placing banner ads or leasing spots on their sites. - Google, for example, generates revenue from AdWords, which offers pay-per-click (PPC) advertising and site-targeted advertising for both text and banner ads.

e-government

applications can include government-to-citizen, government-to-business, government-to-government, and government-to-employee transactions. Services include tax filing, online voter registration, disaster assistance, and e-training for government employees.

Trading Partner Agreements (Major Models of B2B E-Commerce)

automate negotiating processes and enforce contracts between participating businesses. - Using this model, business partners can send and receive bids, contracts, and other information needed when offering and purchasing products and services. - This model will become more common with the development of electronic business eXtensible Markup Language (ebXML), a worldwide project working on using XML to standardize the exchange of e-commerce data, including electronic contracts and trading partner agreements. - Using this model enables customers to submit, via the Internet, electronic documents that previously required hard copies with signatures. The Digital Signature Act of 1999 gives digital signatures the same legal validity as handwritten signatures. - With ebXML, contracts can be transmitted electronically, and many processes between trading partners can be performed electronically, including inventory status, shipping logistics, purchase orders, reservation systems, and electronic payments. The main advantage of ebXML or XML over HTML is that you can assign data-type definitions to information on a page so Web browsers select only the data requested in a search. This feature makes data transfer easier because not all data is transferred, just the data needed in a particular situation. - It is particularly useful in m-commerce (mobile commerce) because loading only the necessary data in a browser makes searches more efficient.

brokerage model (e-commerce business models)

brings sellers and buyers together on the Web and collects commissions on transactions between these parties. - best example of this model is an online auction site, such as eBay - Auction sites can generate additional revenue by selling banner advertisements - other examples are online stockbrokers like Schwab, which generate revenue by collecting commissions from buyers and sellers of securities

E-commerce

buying and selling goods and services over the Internet. - is a part of e-business - builds on traditional commerce by adding the flexibility that networks offer and the availability of the Internet.

business-to-consumer (B2C) e-commerce

companies sell directly to consumers. - ex. amazon, walmart

Hypersocial organizations

companies that leverage social media to better connect with customers and increase sales through the social process, and, as a result, be able to better connect with their customers and sell more products and services. - share information through many different avenues. - The most popular is direct social media interaction, such as Facebook posts, Twitter pages, and Instagram. These organizations may also use blogs, videos on YouTube, and their own company Web sites. - Social media is perceived by many people around the world as authentic. The complaints many customers post are viewed as accurate, even though some of them may in fact have been fabricated. - leverage the power of online communities. - There are four key elements for a successful community: members, content, member profiles, and transactions - The importance of members is probably the most vital element. The more members in a community the better it is. - The content in these communities is important as well. Organizations need quality content in order to work and grow a community. - The member profiles capture key information used to attract new members or increase knowledge about the community. - Finally, there is the transaction element: the more easily a community helps its members engage in a transaction, buy something, or discover information, the more likely it is they will tell others, which will increase membership.

Consumer-to-consumer (C2C) e-commerce

e-commerce involves business transactions between users, such as consumers selling to other consumers via the Internet. - When people use online classified ads (e.g., Craigslist, Letgo) or online auction sites (e.g., eBay) - a digital marketplace it allows users to buy, sell, and trade items with other users in their area. - People can also advertise products and services on organizations' intranets and sell them to other employees

Business-to-business (B2B) e-commerce

e-commerce involves electronic transactions between businesses. - These transactions have been around for many years in the form of electronic data interchange (EDI) and electronic funds transfer (EFT). - Internet has made this the fastest-growing segment of e-commerce - extranets used here - companies using these applications for purchase orders, invoices, inventory status, shipping logistics, business contracts, and other operations report millions of dollars in savings by increasing transaction speed, reducing errors, and eliminating manual tasks. - ex. walmart and its suppliers like Procter and gamble

Consumer-to-business (C2B) e-commerce

e-commerce involves people selling products or services to businesses, such as when a consumer creates online surveys for a company to use. - Another example is when businesses use crowdsourcing by asking consumers to perform services—such as contributing to a Web site—for a fee.

infomediary model (e-commerce business models)

e-commerce sites collect information on consumers and businesses and then sell this information to other companies for marketing purposes.

subscription model (e-commerce business models)

e-commerce sites sell digital products or services to customers. - For example, the Wall Street Journal and Consumer Reports offer online subscriptions, and antivirus vendors use this model to distribute their software and updates. Also Cengage

e-procurement

enables employees in an organization to order and receive supplies and services directly from suppliers. - applications often have purchase-approval procedures that allow users to connect only to company-approved e-catalogs that give employees pre-negotiated prices - main objective is to prevent purchases from suppliers that are not on the approved list of sellers and eliminate the processing costs of purchases. - can automate some buying and selling activities, which reduces costs and improves processing speeds. Companies using these applications expect to control inventory more effectively, reduce purchasing overhead, and improve the manufacturing production cycle

E-business

encompasses all the activities a company performs in buying and selling products and services using computers and communication technologies. - includes several related activities, such as online shopping, sales force automation, supply chain management, electronic procurement (e-procurement), electronic payment systems, Web advertising, and order management. - includes not only transactions that center on buying and selling goods and services to generate revenue but also transactions that generate demand for goods and services, offer sales support and customer service, and facilitate communication between business partners.

the following technologies are used extensively in B2B e-commerce

intranets, extranets, virtual private networks, EDI, and EFT

Organizational (intrabusiness) e-commerce

involves e-commerce activities that take place inside an organization, typically via the organization's intranet. These activities can include the exchange of goods, services, or information among employees (such as C2C e-commerce) - Other examples include conducting training programs and offering human resource services.

disadvantage of omnichannel

its complexity. - It requires that a large number of people in a lot of different places all be on the same page. Also, it requires seamless integration between people, software, and processes in order to be successful.

disadvantages of cross-channel

limited resources and the challenges involved for the integration of various channels.

click-and-brick e-commerce

mixes traditional commerce and e-commerce. It capitalizes on the advantages of online interaction with customers yet retains the benefits of having a physical store location. - For example, customers can buy items from the company's Web site but take them to the physical store if they need to return items

Third-Party Exchange Marketplace (Major Models of B2B E-Commerce)

model is not controlled by sellers or buyers. Instead, it is controlled by a third party, and the marketplace generates revenue from the fees charged for matching buyers and sellers. - A vertical market concentrates on a specific industry or market, such as the utilities industry, the beef and dairy industries, and the sale of medical products. - A horizontal market concentrates on a specific function or business process and automates it for different industries. Employee-benefits administration and media buying are examples - offers suppliers a direct channel of communication to buyers through online storefronts. - The interactive procedures in the marketplace have features such as product catalogs, requests for information (RFI), rebates and promotions, broker contacts, and product sample requests

Seller-Side Marketplace (Major Models of B2B E-Commerce)

model occurs most often. In this model, sellers who cater to specialized markets, such as chemicals, electronics, and auto components, come together to create a common marketplace for buyers—sort of a one-stop shopping model. - Sellers can pool their market power, and buyers' search for alternative sources is simplified. - popular application of this model is e-procurement, which enables employees in an organization to order and receive supplies and services directly from suppliers.

Buyer-Side Marketplace (Major Models of B2B E-Commerce)

model, a buyer, or a group of buyers, opens an electronic marketplace and invites sellers to bid on announced products or make a request for quotation (RFQ). Using this model, buyers can manage the procurement process more efficiently, lower administrative costs, and implement uniform pricing. - used by Large corporations (such as General Electric or Boeing) as well as consortiums of large companies - companies invest in these with the goal of establishing new sales channels that increase their market presence and lower the cost of each sale - sellers can do the following: - Conduct sales transactions - Automate the order management process - Conduct postsales analysis - Automate the fulfillment function - Improve understanding of buying behaviors - Provide an alternative sales channel - Reduce order placement and delivery time

supporting activities in Michael porter's value chain analysis

organizational infrastructure, human resource management, technological development, and procurement (gathering input) - "margin" represents the value added by them

mixed model (e-commerce business models)

refers to generating revenue from more than one source. - For example, Amazon generates revenue from Amazon Prime subscription fees and also from selling products and services to its customers. - An auction site can also generate revenue from commissions collected from buyers and sellers and from advertising.

Electronic Payment Systems/electronic payment (E-Commerce Supporting Technologies)

refers to money or scrip that is exchanged electronically. It usually involves use of the Internet, other computer networks, and digitally stored value systems. It includes credit cards, debit cards, charge cards, and smart cards. - smart cards are about the size of a credit card and contains an embedded microprocessor chip for storing important financial and personal information. The chip can be loaded with information and updated periodically. - E-cash, a secure and convenient alternative to bills and coins, complements credit, debit, and charge cards and adds convenience and control to everyday cash transactions. - e-check, the electronic version of a paper check, offers security, speed, and convenience for online transactions. Many utility companies offer customers the opportunity to use e-checks to make their payments, and most banks accept e-checks for online bill paying - Digital wallet, which is available for most handheld devices, offers a secure, convenient, and portable tool for online shopping. They store personal and financial information, such as credit card numbers, passwords, and PINs. Digital wallet can be used for micropayments - Micropayments are transactions on the Web involving very small amounts of money. They began as a way for advertisers to pay for cost per view or cost per click, which is typically one-tenth of a cent. Such fractional amounts are difficult to handle with traditional currency methods, and electronic micropayments reduce the cost of handling them for financial institutions. - Apple Pay is a mobile payment service that works based on NFC (near field communication) technology. A customer can use his or her iPhone 6 and above, Apple Watch, or iPad to pay for products and services in online or in brick-and-mortar businesses that accept Apple Pay

Page view (PV) (web marketing)

refers to one user viewing one Web page.

Cost per click (CPC) (web marketing)

refers to the cost of each click on an ad. For example, $1.25 CPC means that for every click an advertiser gets, the advertiser pays $1.25 to the sponsoring Web site.

voice-based e-commerce

relies on voice recognition and text-to-speech technologies. - For example, you will soon be able to simply speak the name of the Web site or service you want to access and use voice commands to search a database by product name and find the merchant with the most competitive prices. - Voice assistant platforms such as Amazon's Alexa and Google's assistant are moving voice commerce to the next level. - one method of conducting includes using digital wallet. In addition to storing financial information, digital wallet can store such information as the customer's address and driver's license number

Mobile Marketing (E-Commerce Supporting Technologies)

strategies include: 1. app based marketing 2. in game mobile marketing 3. location based marketing 4. QR codes 5. mobile seach ads 6. mobile image ads 7. SMS (Short Message Service) and MMS (Multimedia Messaging Service)

e-check

the electronic version of a paper check, offers security, speed, and convenience for online transactions. - are a good solution when other electronic payment systems are too risky or otherwise not appropriate.

E-Commerce vs. Traditional Commerce

traditional - product info: magazines, flyers - bus comms: mail, phone calls - check prod. avail: phone calls, faxes, letters - order gen: printed forms - prod acknowledgement: phone calls, faxes - invoice gen: printed forms e-commece - prod info: web sites, online catalogues - bus comms: e-mail - check prod avail: e-mail, web sites, extranets - order gen: e-mail, web sites - prod acknowledgement: e-mail, web sites, electronic data interchange (EDI) - invoice gen: web sites

Micropayments

transactions on the Web involving very small amounts of money. They began as a method for advertisers to pay for cost per view or cost per click. - Such fractional amounts are difficult to handle with traditional currency methods, and electronic micropayments reduce the cost of handling them for financial institutions. Payment amounts are accumulated for customers until they are large enough to offset the transaction fee, and then the account deduction or charge is submitted to the bank. Of course, micropayment systems charge a fee for tracking and processing the transactions. - However, the World Wide Web Consortium (W3C; www.w3c.org), which defines standards for Web-related technologies, has canceled support for micropayments and is no longer working on standards for them.

merchant model (e-commerce business models)

transfers the old retail model to the e-commerce world by using the medium of the Internet. - in most common type, an e-commerce company uses Internet technologies and Web services to sell goods and services over the Web - Companies following this model offer good customer service and lower prices to establish a presence on the Web - ex. amazon, Dell, Cisco

(t/f) Although the goal of e-commerce and traditional commerce is the same—selling products and services to generate profit—they do it quite differently. In ecommerce, the Web and telecommunication technologies play a major role. Often, there is no physical store, and the buyer and seller do not see each other. Many companies now operate as a mix of traditional commerce and e-commerce, however, and have some kind of e-commerce presence.

true

(t/f) B2B e-commerce reduces delivery time, inventory requirements, and prices and it helps business partners share relevant, accurate, and timely information. also lowers production costs and improves accuracy by eliminating many labor-intensive tasks, such as creating invoices and tracking payments manually. The end result is improved supply chain management among business partners.

true

(t/f) Because of the increasing competition among traditional and e-commerce businesses, both groups are deploying multiple sales channels in order to attract more customers and provide additional convenience to their customers. These channels include multichannel, cross-channel, and omnichannel.

true

(t/f) Many government and other nonbusiness organizations use e-commerce applications, including the Department of Defense, the Internal Revenue Service, and the Department of the Treasury. These applications are broadly called e-government (or just "e-gov") applications

true

(t/f) One way to examine e-commerce and its role in the business world is through value chain analysis

true

(t/f) Payment cards—credit cards, debit cards, charge cards, and smart cards—are the most popular instrument for electronic payment transactions.

true

(t/f) Social media allows hypersociality to scale to the point where it has an impact on organizations.

true

(t/f) Social media should be integrated into all operations, from sales to marketing, and for ongoing sustainability.

true

(t/f) The Internet has improved productivity in many organizations, but this improvement must be converted to profitability.

true

(t/f) The products that e-commerce companies sell could be traditional products, such as books and apparel, or digital products, such as music, software, and e-books. Similarly, e-commerce models can be traditional or "digital." Traditional e-commerce models are usually an extension or revision of traditional business models, such as advertising or merchandising, or a new type of model suitable for Web implementation, such as an infomediary

true

(t/f) The value chain is really about understanding what aspects of an organization's business add value for customers and then maximizing those aspects.

true

(t/f) Universities are an example of nonbusiness organizations that use e-commerce applications

true

(t/f) many companies have taken advantage of the Web and e-commerce to reduce costs, increase revenue, and improve customer service.

true

venmo

users can transfer funds to others via a mobile app; both the sender and receiver have to live in the United States.

Web marketing (E-Commerce Supporting Technologies)

uses the Web and its supporting technologies to promote goods and services

Mobile commerce (m-commerce)

using handheld devices, such as smartphones or wireless devices, to conduct business transactions, such as making stock trades with an online brokerage firm. - based on the Wireless Application Protocol (WAP) - supporting technologies include wireless wide area networks (WWANs) and 3G and 4G networks, as well as short-range wireless communication technologies, such as Wi-Fi, WiMAX, Bluetooth, and RFID

Digital wallet

which is available for most handheld devices, offers a secure, convenient, and portable tool for online shopping. They store personal and financial information, such as credit card numbers, passwords, and PINs - can be used for micropayments - online shoppers find them useful because personal and financial information does not have to be reentered each time they place an order.