Chapter 9 Concepts

What is e-commerce? P. 293

At what rate has e-commerce been growing? P. 294

Describe the unique features of e-commerce. P. 296
Ubiquitous – available everywhere at all times
Global reach – transactions cross cultural and national boundaries
Universal standards – Internet standards are shared by all.
Richness of content – text, audio, and video
Interactivity
Information density
Personalization
Social technology

What are digital goods? Give an example. P 299

Describe the impact the Internet has had on the music (CDs) industry. P. 300

Describe the E-tailer business model. P. 302-303, Amazon

Describe the Market Creator business model. P. 303, eBay

What is the advertising revenue model for e-commerce? P. 304

What is the sales revenue model for e-commerce? P. 306

What is the free/premium revenue model for e-commerce? P. 307

Case Study:
Who Will Dominate Internet Retailing?
Main Point: Amazon is currently the largest e-commerce retailer, however eBay and
Walmart are serious challengers. Walmart and eBay may just end up enlarging the online
retail market space, thus helping Amazon grow in the process. The real winners are likely
the American consumers.

Case Study:
Social Commerce Creates New Customer Relationships
Main Point: Facebook and Twitter have become powerful tools that companies may use
to engage their customers resulting in better service and more dedicated customers. These
activities have the potential for translating into higher profits!