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E-BUSINESS & E-COMMERCE
CHAPTER 5

NOOSHA SAFAHANI
E-COMMERCE(EC) VS. E-BUSINESS
E- commerce(EC): describes the process of buying, selling,
transferring, or exchanging products, services, and/or
information via computer networks, including the Internet.

E-business:

refers to a broader definition of EC, not just the buying
and selling of goods and services, but also servicing
customers, collaborating with business partners, conducting elearning, and conducting electronic transactions within an
organization.
E-Business

E-Commerce
PURE VS. PARTIAL EC

 Product (service) sold

 Process
 Delivery agent (or intermediary)
E business & e-commerce
TYPES OF E-COMMERCE
Business-to-business (B2B)

Collaborative commerce (C-commerce)
Business-to-consumers (B2C)
Consumers-to-businesses (C2B)
Consumer-to-consumer (C2C)

Intrabusiness (intraorganizational) commerce
Government-to-citizens (G2C) and to others
Mobile commerce (m-commerce)
The scope of E-commerce
BENEFITS OF E-COMMERCE
To Organization
•national and international markets
•eliminates marketing distribution channels
•Decreases the costs
•product customization and reduces inventory costs
•Lowers telecommunications costs
•Helps some small businesses
•Enables a very specialized niche market
BENEFITS OF E-COMMERCE
To Customer
•conduct quick online searches and comparisons
•more choices
•24 hours a day, from almost any location
•customized products
•work and study at home.
•electronic auctions
•exchange ideas and compare experiences
BENEFITS OF E-COMMERCE
To Society
•less road traffic and lower air pollution
•increasing peoples standard of living
•developing countries and rural areas to enjoy products
and services
•Facilitates delivery of public services
LIMITATIONS OF E-COMMERCE
LIMITATIONS OF E-COMMERCE
AUCTIONS AND BARTERING
Electronic Auctions(E-Auctions)
An auction is a market mechanism by which
sellers place offers and buyers make
sequential bids
Bartering

Related to auctions is electronic
bartering, the exchange of goods or
services without a monetary
transaction.
MAJOR TYPES OF AUCTION

Forward Auction
•Many potential buyers

Reverse Auctions
•One buyer
MAJOR CATEGORIES OF B2C APPLICATIONS

1.Electronic Retailing:
 Storefronts

Specialized(persianFlora.ir)
General(walmart)



Malls

referral malls (kharidgroohi.com)

Mall organizers (store.yahoo.com)
MAJOR CATEGORIES OF B2C APPLICATIONS

2. Service Industries Online:
 banking

 trading of securities (stocks, bonds)
 job matching
 travel services
 real estates
E-COMMERCE CONSUMER BEHAVIOR MODEL
THE CONSUMER DECISION-MAKING PROCESS

1. A Generic Purchasing-Decision Model
need
identification

information
search

evaluation of
alternatives

Purchase
and delivery

afterpurchase
evaluation
THE CONSUMER DECISION-MAKING PROCESS
HOW MARKET RESEARCH FINDS WHAT CUSTOMERS WANT?

1. Asking customers what they want
2. Tracking customer activities on the web
ADVERTISING METHODS
Banners
Pop-up & Pop-under
E-mails
Electronic Catalogues & Brochures
posting advertising in chat rooms (newsgroups)
Internet Radio & TV
INTRABUSINESS
 Business to Its Employees (B2E)
Commerce
 E-Commerce Between and Among
Units Within the Business
 E-Commerce Between and Among
Corporate Employees
E-GOVERNMENT APPLICATIONS

Government
to-Citizens
(G2C)

Governmentto-Business
(G2B)

Governmentto-Government
(G2G)
CUSTOMER TO CUSTOMER E-COMMERCE

• C2C Auctions
• Classified Ads
• Personal services
E-Commerce
Services
TIPS FOR SAFE ELECTRONIC SHOPPING
● Look for reliable brand names at sites
● Call up and quiz the employees about the
sellers.
● Investigate how secure the seller’s site is by
examining the security procedures and by
reading the posted privacy notice.
● Examine the money-back
guarantees, warranties, and service
agreements.
● Compare prices to those in regular stores. Toolow prices are too good to be true, and some
“catch” is probably involved.
TIPS FOR SAFE ELECTRONIC SHOPPING
● Ask friends what they know. Find testimonials
and endorsements in community sites and wellknown bulletin boards.

● Find out what your rights are in case of a
dispute.
● Consult the National Fraud Information Center
(fraud.org).

● Check consumerworld.org for a listing of useful
resources.
CASE: FREEMARKETS.COM
CASE: FREEMARKETS.COM
● Asset disposal analysis
● Detailed sales offering
● Targeted market outreach
● Event coordination
● Sales implementation
E business & e-commerce
CASE: FREEMARKETS.COM

7.500$

121.000$
E business & e-commerce
E business & e-commerce

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E business & e-commerce

  • 2. E-COMMERCE(EC) VS. E-BUSINESS E- commerce(EC): describes the process of buying, selling, transferring, or exchanging products, services, and/or information via computer networks, including the Internet. E-business: refers to a broader definition of EC, not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting elearning, and conducting electronic transactions within an organization.
  • 4. PURE VS. PARTIAL EC  Product (service) sold  Process  Delivery agent (or intermediary)
  • 6. TYPES OF E-COMMERCE Business-to-business (B2B) Collaborative commerce (C-commerce) Business-to-consumers (B2C) Consumers-to-businesses (C2B) Consumer-to-consumer (C2C) Intrabusiness (intraorganizational) commerce Government-to-citizens (G2C) and to others Mobile commerce (m-commerce)
  • 7. The scope of E-commerce
  • 8. BENEFITS OF E-COMMERCE To Organization •national and international markets •eliminates marketing distribution channels •Decreases the costs •product customization and reduces inventory costs •Lowers telecommunications costs •Helps some small businesses •Enables a very specialized niche market
  • 9. BENEFITS OF E-COMMERCE To Customer •conduct quick online searches and comparisons •more choices •24 hours a day, from almost any location •customized products •work and study at home. •electronic auctions •exchange ideas and compare experiences
  • 10. BENEFITS OF E-COMMERCE To Society •less road traffic and lower air pollution •increasing peoples standard of living •developing countries and rural areas to enjoy products and services •Facilitates delivery of public services
  • 13. AUCTIONS AND BARTERING Electronic Auctions(E-Auctions) An auction is a market mechanism by which sellers place offers and buyers make sequential bids Bartering Related to auctions is electronic bartering, the exchange of goods or services without a monetary transaction.
  • 14. MAJOR TYPES OF AUCTION Forward Auction •Many potential buyers Reverse Auctions •One buyer
  • 15. MAJOR CATEGORIES OF B2C APPLICATIONS 1.Electronic Retailing:  Storefronts Specialized(persianFlora.ir) General(walmart)  Malls referral malls (kharidgroohi.com) Mall organizers (store.yahoo.com)
  • 16. MAJOR CATEGORIES OF B2C APPLICATIONS 2. Service Industries Online:  banking  trading of securities (stocks, bonds)  job matching  travel services  real estates
  • 18. THE CONSUMER DECISION-MAKING PROCESS 1. A Generic Purchasing-Decision Model need identification information search evaluation of alternatives Purchase and delivery afterpurchase evaluation
  • 20. HOW MARKET RESEARCH FINDS WHAT CUSTOMERS WANT? 1. Asking customers what they want 2. Tracking customer activities on the web
  • 21. ADVERTISING METHODS Banners Pop-up & Pop-under E-mails Electronic Catalogues & Brochures posting advertising in chat rooms (newsgroups) Internet Radio & TV
  • 22. INTRABUSINESS  Business to Its Employees (B2E) Commerce  E-Commerce Between and Among Units Within the Business  E-Commerce Between and Among Corporate Employees
  • 24. CUSTOMER TO CUSTOMER E-COMMERCE • C2C Auctions • Classified Ads • Personal services
  • 26. TIPS FOR SAFE ELECTRONIC SHOPPING ● Look for reliable brand names at sites ● Call up and quiz the employees about the sellers. ● Investigate how secure the seller’s site is by examining the security procedures and by reading the posted privacy notice. ● Examine the money-back guarantees, warranties, and service agreements. ● Compare prices to those in regular stores. Toolow prices are too good to be true, and some “catch” is probably involved.
  • 27. TIPS FOR SAFE ELECTRONIC SHOPPING ● Ask friends what they know. Find testimonials and endorsements in community sites and wellknown bulletin boards. ● Find out what your rights are in case of a dispute. ● Consult the National Fraud Information Center (fraud.org). ● Check consumerworld.org for a listing of useful resources.
  • 29. CASE: FREEMARKETS.COM ● Asset disposal analysis ● Detailed sales offering ● Targeted market outreach ● Event coordination ● Sales implementation