Keyterms:
Chapter One Key Terms
business-to-business (B2B) e-commerce
Businesses selling to other businesses
Business-to-business (B2B) e-commerce, in which
businesses focus on selling to other businesses, is
the largest form of e-commerce.
consumer-to-consumer (C2C) e-commerce
Ex: AliBaba.com
consumers selling to other consumers
Consumer-to-consumer (C2C) e-commerce
provides a way for consumers to sell to each
other with the help of an online market maker
(also called a platform provider).
business-to-consumer (B2C) e-commerce
Ex: eBay
online businesses selling to individual consumers
business-to-consumer (B2C) e-commerce, in
which online businesses attempt to reach
individual consumers. B2C e-commerce includes
purchases of retail goods; travel, financial, real
estate, and other types of services; and online
content
customization
Disintermediation
e-business
Ex: Amazon
changing the delivered product or service based
on a user’s preferences or prior behavior.
Ex: Nike's "Nike By You"
displacement of market middlemen who
traditionally are intermediaries between
producers and consumers by a new direct
relationship between producers and consumers
Ex: iTunes (now Apple Music) allows artists to sell
their music directly to consumers without going
through a record label.
the digital enabling of transactions and processes
within a firm, involving information systems
under the control of the firm
e-commerce
first mover
friction-free commerce
information asymmetry
information density
Interactivity
Internet
Ex: IBM provides a broad range of IT services and
solutions to businesses, which they deliver
electronically.
the use of the Internet, the Web, and mobile
apps and browsers running on mobile devices to
transact business. More formally, digitally
enabled commercial transactions between and
among organizations and individuals
Ex: Etsy, an online platform for individuals to sell
handmade, vintage, or unique factorymanufactured items.
a firm that is first to market in a particular area
and that moves quickly to gather market share
Ex: Google was the first mover in providing a
powerful, effective search engine.
a vision of commerce in which information is
equally distributed, transaction costs are low,
prices can be dynamically adjusted to reflect
actual demand, intermediaries decline, and unfair
competitive advantages are eliminated
Ex: Digital wallet services like PayPal enable
seamless and instant financial transactions
between parties.
any disparity in relevant market information
among parties in a transaction
Ex: Used car sales often involve information
asymmetry, where the seller may know more
about the vehicle's defects than the buyer.
the total amount and quality of information
available to all market participants
Ex: Online news websites provide high
information density, offering vast amounts of
information in a condensed digital format.
technology that allows for two-way
communication between merchant and
consumer
Ex: Video game platforms like Steam allow
players to interact with each other, the platform,
and the games.
worldwide network of computer networks built
on common standards
local e-commerce
Marketplace
Marketspace
mobile e-commerce (m-commerce)
mobile platform
network effect
Personalization
Reach
Richness
Ex: The global network of networks, connecting
millions of computers globally, enabling data
exchange.
e-commerce that is focused on engaging the
consumer based on his or her current geographic
location
Ex: Skip the dishes
physical space you visit in order to transact
Ex: FB Marketplace
marketplace extended beyond traditional
boundaries and removed from a temporal and
geographic location
Ex: Amazon
use of mobile devices to enable online
transactions
Ex: Shopping apps like ASOS allow consumers to
purchase goods directly from their mobile
devices.
provides the ability to access the Internet from a
variety of mobile devices such as smartphones
and tablets
Ex: iOS, Apple's mobile operating system, on
which a multitude of apps run.
occurs where users receive value from the fact
that everyone else uses the same tool or product
Ex: The value of social networking sites like
Facebook increases as more users join and
participate.
the targeting of marketing messages to specific
individuals by adjusting the message to a
person’s name, interests, and past purchases
Ex: Netflix offers personalized recommendations
based on users' viewing history.
reach the total number of users or customers an
e-commerce business can obtain
Ex: Google Ads helps businesses reach potential
customers worldwide, regardless of their
location.
the complexity and content of a message
social e-commerce
Ubiquity
universal standards
Web 2.0
World Wide Web (the Web)
Ex: YouTube allows users to upload, share, and
view high-quality videos, offering a rich
multimedia experience.
e-commerce enabled by social networks and
online social relationships
Ex: Instagram Shopping allows users to purchase
products directly through shared images and
stories.
available just about everywhere, at all times
Ex: Google Search is ubiquitous, available
anywhere there's an internet connection.
standards that are shared by all nations around
the world
Ex: HTTP (HyperText Transfer Protocol) and HTML
(HyperText Markup Language) are universal
standards used in website development.
set of applications and technologies that enable
user-generated content
Ex: Wikipedia is a Web 2.0 site, as it allows for
user interaction and collaboration.
an information system running on Internet
infrastructure that provides access to billions of
web pages
Ch.2
advertising revenue model
affiliate revenue model
angel investors
a company provides a forum for advertisements
and receives fees from advertisers
Ex: Facebook makes money primarily through
selling ad spaces to businesses.
a company steers business to an affiliate and
receives a referral fee or percentage of the
revenue from any resulting sales
Ex: Amazon Associates allows individuals or
businesses to earn commissions by promoting
Amazon products.
typically wealthy individuals or a group of
individuals who invest their own money in
exchange for an equity share in the stock of a
business; often are the first outside investors in a
startup
Asymmetry
Ex: Peter Thiel was an angel investor in Facebook,
giving the company its first $500,000 investment.
exists whenever one participant in a market has
more resources than other participants
B2B service provider
Ex: In stock markets, traders often have
asymmetrical information where insiders might
have more information than the general public.
sells business services to other firms
barriers to entry
Ex: Salesforce provides CRM services to other
businesses.
the total cost of entering a new marketplace
business model
business plan
business strategy
Commoditization
Ex: Patents held by pharmaceutical companies
are barriers to entry, preventing other companies
from producing the same drug.
a set of planned activities designed to result in a
profit in a marketplace
Ex: Uber's business model is based on the sharing
economy, where it connects drivers and riders
and takes a commission on each ride.
a document that describes a firm’s business
model
a set of plans for achieving superior long-term
returns on the capital invested in a business firm
a situation where there are no differences among
products or services, and the only basis of
choosing is price
community provider
Ex: The PC market is an example of
commoditization where different brands offer
similar products making competition primarily
price-based.
creates an online environment where people
with similar interests can transact (buy and sell
goods); share interests, photos, and videos;
communicate with likeminded people; and
receive interest-related information
competitive advantage
Ex: Reddit provides a platform for communities
to discuss shared interests.
Competitive advantage is the unique advantage
an organization possesses or creates, such as
superior technology, brand, customer service, or
competitive environment
complementary resources
content provider
Crowdfunding
customer intimacy
Differentiation
digital disruption
disruptive technologies
Disruptors
e-commerce business model
e-distributor
elevator pitch
e-procurement firm
e-tailer
exchange
resources, that sets it apart from its competitors,
enabling it to outperform them.
refers to the other companies operating in the
same marketspace selling similar products
resources and assets not directly involved in the
production of the product but required for
success, such as marketing, management,
financial assets, and reputation
distributes information content, such as digital
news, music, photos, video, and artwork
involves using the Internet to enable individuals
to collectively contribute money to support a
project
focuses on developing strong ties with customers
in order to increase switching costs
refers to all the ways producers can make their
products or services unique and different to
distinguish them from those of competitors
a business model disruption that is driven by
changes in information technology
technologies that underpin a business model
disruption
the entrepreneurs and their business firms that
lead a business model disruption
a business model that aims to use and leverage
the unique qualities of the Internet, the Web, and
the mobile platform
a company that supplies products and services
directly to individual businesses
short two-to-threeminute presentation aimed at
convincing investors to invest
creates and sells access to digital markets
online retail store
an independent digital marketplace where
suppliers and commercial purchasers can conduct
transactions