chapter 7

Market Segmentation

The process of dividing the total market into groups whose members have similar characteristics.

Business-To-Business (B2B) E-Commerce

e-commerce in markets where businesses buy from and sell to other businesses

Identity theft

the fraudulent acquisition and use of a person's private identifying information, usually for financial gain.

Digital Certification

An electronic document attached to a file certifying that this file is from the organization it claims to be from and has not been modified from its original format or content.

Why is it important to maintain and improve an existing Web site? (test question)

Maintaining and Improving Your Web Site 1. Web site operators must constantly monitor the traffic to their sites and the response times experienced by visitors. Online shoppers expect service to be better than or equal to their in-store experience. 2. Walmart recently invested $2 billion as part of a multiyear project designed to improve its Web site and strengthen its e-commerce infrastructure. The site is being overhauled from the ground up and they intend to continue adding content. 3. Web site operators must also continually be alert to new trends and developments in the area of e-commerce and be prepared to take advantage of new opportunities. 4. Personalization - the process of tailoring Web pages to specifically target individual consumers.

What is market segmentation? What is its purpose?

Market Segmentation - the identification of specific markets to target them with tailored advertising messages

storefront broker

A company that acts as an intermediary between your Web site and online merchants who have the products and retail expertise.

Electronic Cash (E-Cash)

A payment mechanism designed for the Internet, electronic cash represents a series of monetary value units electronically stored on the hard drive of a computer or microchip of a plastic card. It is anonymous like cash, and has immediate value. E-cash is attractive to money launderers because of its anonymity and the ease it provides in "transporting" large sums quickly and easily via the Internet. It is also called "e-money."

Business-To-Consumer (B2B) E-Commerce

A subset of e-commerce in which consumers deal directly with an organization and avoid intermediaries.

What is e-Commerce? How is it different from m-commerce?

Business-to-Business E-Commerce 1. Business-to-Business E-Commerce (B2B) - a subset of e-commerce in which all the participants are organizations 2.Business-to-Consumer E-Commerce (B2C) - A subset of e-commerce in which consumers deal directly with an organization and avoid intermediaries. 3.Consumer-to-Consumer (C2C) e-commerce - a subset of e-commerce that involves electronic transactions between consumers using a third party to facilitate the process. Mobile commerce (m-commerce) relies on the use of mobile devices such as phones and tablet, to place orders and conduct business. Smartphone manufacturers such as Apple, Huawei, Lenovo, LG, Samsung, and Xiaomi are working with communications companies such as AT&T, Sprint/Nextel, T-Mobile and Verizon to develop the wireless devices and technology to support m-commerce

Consumer-To- Consumer (B2B) E-Commerce

Consumer-to-Consumer (C2C) e-commerce - a subset of e-commerce that involves electronic transactions between consumers using a third party to facilitate the process. e-Bay, an example of C2c, was founded in 1995 and became one of the most popular Web sites in the world with 2015 net revenue pf $8.5 billion

What is disintermediation?

Disintermediation is the removal of intermediaries in economics from a supply chain, or cutting out the middlemen in connection with a transaction or a series of transactions.[1] Instead of going through traditional distribution channels, which had some type of intermediary (such as a distributor, wholesaler, broker, or agent), companies may now deal with customers directly, for example via the Internet.[2] Hence, the use of factory direct and direct from the factory to mean the same thing

What are the three forms of e-government?

E-government - the use of information and communications technology to simplify the sharing of information, speed formerly paper-based processes, and improve the relationship between citizens government. 1. Government-to-Citizens (G2C) allow citizens to submit state and federal tax returns online, renew auto licenses, purchase postage, and apply for student loans 2. Government-to- Business (G2B) applications support the purchase of materials and service from private industry by government procurement offices. The Web site Business.USA.gov allows businesses to access information about laws and regulations and to download relevant forms 3. Government-to-Government (G2G) applications support transactions between government entities, such as between federal government and state and/or local governments

What are web-influenced sales? (test question)

Web influence is the degree to which the Internet influences offline retail sales. This forecast highlights the effects of retailers' cross-channel selling efforts. By 2020, we expect 42% of in-store sales to be influenced by the Internet during the customer's purchase journey

What is buy-side e-commerce? How does it differ from sell-side e-commerce? (test question)

a. Buy-side i. Buy-side - purchase goods and services from their suppliers ii. Activities include: - identifying and comparing competitive suppliers and products - negotiating and establishing prices and terms - ordering and tracking shipments - steering organizational buyers to preferred suppliers and products b. Sell-side i. Sell-side - sell products to their customers ii. Activities include - enabling the purchase of products online - providing information for customers to evaluate the organization's good and services - encouraging sales and generating leads from potential customers - providing a portal of information of interest to the customer - enabling interactions among a community of consumers

E-Government

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