Electronic Commerce Tenth Edition Chapter 6 Social Networking, Mobile Commerce, and Online Auctions Learning Objectives In this chapter, you will learn: • How social networking emerged from virtual communities • How social networking tools such as blogs are used in online business activities • About mobile technologies that are now used to do business online • How online auctions and auction-related businesses have become a major new commercial activity introduced as part of electronic commerce Electronic Commerce, Tenth Edition 2 From Virtual Communities to Social Networks • Online Web communities – Not limited by geography – Individuals and companies with common interests • Meet online and discuss issues, share information, generate ideas, and develop valuable relationships • Companies make money by serving as relationship facilitators – Combine Internet’s transaction cost-reduction potential with a communication facilitator role Electronic Commerce, Tenth Edition 3 Virtual Communities • Virtual community (Web community, online community) – Gathering place for people and businesses • No physical existence • Early virtual communities – Bulletin board systems (BBSs) • Revenue source: monthly fees and selling advertising – Usenet newsgroups • Message posting areas on usenets Electronic Commerce, Tenth Edition 4 Virtual Communities (cont’d.) • Current forms – Web chat rooms – Sites devoted to specific topics or general exchange of information, photos, videos – People connect and discuss common issues, interests – Considerable social interaction – Relationship-forming activities • Similar to physical communities Electronic Commerce, Tenth Edition 5 Early Web Communities • 1985: WELL (“whole earth ‘lectronic link”) – Monthly fee to participate in forums and conferences – 1999 bought by Salon.com • 1995: Beverly Hills Internet virtual community site – Offered webcams, free Web site space – Grew into GeoCities • Revenue source: advertising, pop-up pages • 1999: purchased by Yahoo! ($5 billion) • Closed in 2009 Electronic Commerce, Tenth Edition 6 Early Web Communities (cont’d.) • 1995: Tripod virtual community – Offered free Web page space, chat rooms, news, weather updates, health information pages – Revenue source: sold advertising • 1995: Theglobe.com Cornell University class project – Included bulletin boards, chat rooms, discussion areas, personal ads • Added more features – Revenue source: sold advertising • Most early Web community businesses closed Electronic Commerce, Tenth Edition 7 Social Networking Emerges • As the Internet and Web grew: – Experience of sharing new online communication faded – New phenomenon in online communication began • Multiple common bonds joined people with all types of common interests • Social networking sites – Allow individuals to create and publish a profile, create a list of other users with whom they share a connection (or connections), control that list, and monitor similar lists made by other users Electronic Commerce, Tenth Edition 8 Social Networking Emerges (cont’d.) • Social networking sites – Six Degrees (1997) – Friendster (2002) • Had features found in today’s social networking sites – – – – – LinkedIn: devoted to business connections Tribe.net YouTube: popularized video inclusion MySpace: popular with younger Web users Twitter • Users can send short messages to other users who sign up to follow their messages (tweets) – Google+ Electronic Commerce, Tenth Edition 9 Social Networking Emerges (cont’d.) • Basic idea behind social networking – People invited to join by existing members – Site provides directory • New members work through friends established in the community Electronic Commerce, Tenth Edition 10 © Cengage Learning 2013 FIGURE 6-1 Social networking Web sites Electronic Commerce, Tenth Edition 11 © Cengage Learning 2013 FIGURE 6-2 Leading social networking sites around the world Electronic Commerce, Tenth Edition 12 Social Networking Emerges (cont’d.) • Web logs (Blogs) – Web sites containing individual commentary on current events or specific issues – Form of social networking site – Twitter: microblog • Very informal; tweets limited to 140 characters • Early blogs focused on technology topics • 2004: blogs used as political networking tool • 2008: all major candidates using blogs – Communicating messages, organizing volunteers, raising money, meetups Electronic Commerce, Tenth Edition 13 Social Networking Emerges (cont’d.) • Retailers embracing blogs – Way to engage visitors not ready to buy from site – Marketing and supply managers saw social networking benefits of enhancing B2B relationships • Business uses – CNN • Blog information included in television newscasts Electronic Commerce, Tenth Edition 14 Social Networking Emerges (cont’d.) • Business uses (cont’d.) – Newspapers • Inviting information and opinion contributions • Targeting 18- to 35-year-old generation – Participatory journalism • Trend toward having readers help write the online newspaper • Blogs can become businesses in themselves – Must generate financial support (fees, advertising) Electronic Commerce, Tenth Edition 15 Social Networking Emerges (cont’d.) • Social networking Web sites for shoppers – Social shopping • Practice of bringing buyers and sellers together in a social network to facilitate retail sales – Example: craigslist • Operated by not-for-profit foundation • All postings free (except help wanted ads) – Example: Etsy Web site • Marketplace for selling handmade items • We Love Etsy: Etsy buyers, sellers share information Electronic Commerce, Tenth Edition 16 Social Networking Emerges (cont’d.) • Idea-based social networking – Social networking sites form communities based on connections among people – Idea-based virtual communities • Communities based on connections between ideas – Idea-based networking • Participating in idea-based virtual communities • Examples: del.icio.us site, 43 Things site Electronic Commerce, Tenth Edition 17 Social Networking Emerges (cont’d.) • Virtual learning networks – Distance learning platforms for student-instructor interaction (Blackboard) – Tools include: • Bulletin boards, chat rooms, drawing boards – Moodle and uPortal • Open-source software projects devoted to virtual learning community development – Open source software • Developed by a programmer community • Software available for download at no cost Electronic Commerce, Tenth Edition 18 Revenue Models for Social Networking Sites • Late 1990s – Revenue created by selling advertising • Used by virtual communities, search engine sites, Web directories • 1998 – Purchases and mergers occurred – New sites still used advertising-only revenuegeneration model • Included features offered by virtual community sites, search engine sites, Web directories, other informationproviding and entertainment sites – Web portal goal: every Web surfer’s doorway to Web Electronic Commerce, Tenth Edition 19 Revenue Models for Social Networking Sites (cont’d.) • Advertising-supported social networking sites – Smaller sites with specialized appeal • Can draw enough visitors to generate significant advertising revenue • Example: I Can Has Cheezburger site – Recall from Chapter 3 • Sites with higher number of visitors can charge more • Stickiness: important element in site’s attractiveness – Rough measure of stickiness • Time user spends at the site Electronic Commerce, Tenth Edition 20 FIGURE 6-3 Popularity and stickiness of leading Web sites Electronic Commerce, Tenth Edition 21 Revenue Models for Social Networking Sites (cont’d.) • Advertising-supported social networking sites (cont’d.) – Social networking sites • Members provide demographic information • Potential for targeted marketing: very high – High visitor counts • Can yield high advertising rates – Second-wave advertising fees • Based less on up-front site sponsorship payments • Based more on revenue generation from continuing relationships with people who use the social networking sites Electronic Commerce, Tenth Edition 22 Revenue Models for Social Networking Sites (cont’d.) • Mixed-revenue and fee-for-service social networking sites – Most social networking sites use advertising – Some charge a fee for some services • Examples: Yahoo! All-Star Games package, Yahoo! premium e-mail service – Monetizing • Converting site visitors into fee-paying subscribers or purchasers of services • Concern: visitor backlash – More examples: The Motley Fool and TheStreet.com Electronic Commerce, Tenth Edition 23 Revenue Models for Social Networking Sites (cont’d.) • Fee-based social networking – Google Answers site • Early attempt to monetize social networking • Questions answered for a fee • Google operated service from 2002 to 2006 – Similar free services • Yahoo! Answers, Amazon (Askville) – Uclue (paid researchers earn 75 percent of total fee) • Advocates claim better quality – Fee-based Web sites can generate revenue by providing virtual community interaction Electronic Commerce, Tenth Edition 24 Revenue Models for Social Networking Sites (cont’d.) • Microlending sites – Function as clearinghouses for microlending activity – Microlending • Practice of lending very small amounts of money • Lend to people starting or operating small businesses (especially in developing countries) – Microlending key element • Working within social network of borrowers • Provide support, element of pressure to repay – Examples: Kiva and MicroPlace Electronic Commerce, Tenth Edition 25 Revenue Models for Social Networking Sites (cont’d.) • Internal social networking – Provide social interaction among organization’s employees – Run on organization’s intranet – Save money (less paper) – Provide easy access to employee information – Good for geographically dispersed employees – Adding wireless connectivity – Combine second-wave technology with first-wave business strategy • Wireless communications with internal Web portals Electronic Commerce, Tenth Edition 26 Mobile Commerce • Short messaging service (SMS) – Allows mobile phone users to send short text messages to each other • 2008: United States developments allowing phones as Web browsers – High-speed mobile telephone networks grew dramatically – Manufacturers offered range of smart phones with Web browser, operating system, applications • Potential for mobile commerce (m-commerce) Electronic Commerce, Tenth Edition 27 Mobile Operating Systems • Japan and Southeast Asia mobile commerce – Much larger online business activity • Had high-capacity networks before U.S. – NTT DoCoMo, Japan’s largest phone company • Pioneered mobile commerce in 2000 • U.S. mobile commerce beginning in 2008 – Introduction of smart phones and high-capacity networks – Smart phone examples: Apple iPhone, Palm Pre, several BlackBerry models • Android operating system Electronic Commerce, Tenth Edition 28 FIGURE 6-4 Smart phones come in a range of different styles Electronic Commerce, Tenth Edition 29 Mobile Operating Systems (cont’d.) • Mobile commerce browser display options – Wireless Application Protocol (WAP) • Allows Web pages formatted in HTML to be displayed on small-screen devices – Display a normal Web page on the device • Made possible by increased screen resolution • Example: Apple iPhone – Design Web sites to match specific smart phones • Much more difficult to accomplish Electronic Commerce, Tenth Edition 30 Mobile Operating Systems (cont’d.) • Mobile commerce browser display options (cont’d.) – Apple, BlackBerry, Palm • Use proprietary operating systems – HTC, Motorola, Nokia • At one time created their own operating systems and software applications • Now use a standard operating system provided by a third party – Most common third-party operating systems • Android, Windows Mobile, Symbian Electronic Commerce, Tenth Edition 31 Mobile Operating Systems (cont’d.) • Android operating system – Most popular and fastest growing third-party operating system – Developed by Google – Open source • Smart phone operating system – Cannot be deleted/switched by user • Operating system modifications – Jailbreaking (Apple iphone’s operating system) – Rooting (Android operating system) Electronic Commerce, Tenth Edition 32 FIGURE 6-5 Smart phones operating systems: U.S. market shares Electronic Commerce, Tenth Edition 33 Mobile Apps • Common operating systems emergence – Occurred due to a change in the way software applications developed and sold • Old U.S. mobile phone company revenue strategy – Control application software (apps) • Apple turned old revenue strategy on its head – AT&T agreed to be sole carrier for iPhone – Apple Apps for iPhone online store • Independent developers create apps and sell them • BlackBerry and Palm followed Apple’s lead Electronic Commerce, Tenth Edition 34 Mobile Apps (cont’d.) • Recap from Chapter 4 – Some mobile app sellers include advertising element • Messages displayed from advertisers • Part of the app screen or in a separate screen • Mobile apps’ advertising space marketed in same way as Web sites’ banner advertising • Companies moving to mobile commerce – Determine suitability of Web site to mobile devices – May be pertinent to develop separate Web site optimized for mobile users Electronic Commerce, Tenth Edition 35 Mobile Apps (cont’d.) • Mobile phones for online banking – In early stages in the United States • Physicians using smart phones – Read EKGs, managing diabetic patients – Medical students: Epocrates (drug information database) • Phones’ global positioning satellite (GPS) service capabilities – Allow mobile business opportunities • Apps tools/resources – Swebapps, App Inventor, TaskCity Electronic Commerce, Tenth Edition 36 Tablet Devices • Tablet devices – 2010: Apple’s iPad introduced • Smaller than laptop computer; larger than smart phone – Wireless phone carrier’s service or local wireless network Internet connection – Larger screen size better suited for online consumer products purchases Electronic Commerce, Tenth Edition 37 Mobile Payment Apps • Mobile wallets – Mobile phones functioning as credit cards – Japan’s NTT DoCoMo phones combined capabilities • Generate significant business • Widespread credit card use in U.S. has limited use of mobile phone payments – 2011: Phone readers offered by American Express, Visa, MasterCard – Google Wallet for Android phones introduced Electronic Commerce, Tenth Edition 38 Online Auctions • Business opportunity perfect for the Web • Auction site revenue sources – Charging both buyers and sellers to participate – Selling advertising • Targeted advertising opportunities available • Online auctions capitalize on Internet’s strength – Bring together geographically dispersed people sharing narrow interests Electronic Commerce, Tenth Edition 39 Auction Basics • From Babylon to the Roman Empire to Buddhists • Common activity of 17th century England – Sotheby’s (1744), Christie’s (1766), colonial auctions • Auction: seller offering item for sale – – – – – Bids: price potential buyer willing to pay Bidders: potential buyers Private valuations: amounts buyer willing to pay Auctioneer: manages auction process Shill bidders: work for seller or auctioneer • May artificially inflate price Electronic Commerce, Tenth Edition 40 Auction Basics (cont’d.) • English auctions – Bidders publicly announce successively higher bids • Item sold to highest bidder (at bidder’s price) – Also called ascending-price auction – Open auction (open-outcry auction) • Bids publicly announced – Minimum bid • Beginning price • If not met, item removed (not sold) Electronic Commerce, Tenth Edition 41 Auction Basics (cont’d.) • English auctions (cont’d.) – Reserve price (reserve) • Seller’s minimum acceptable price • Not announced • If not exceeded, item withdrawn (not sold) – Yankee auction • Multiple item units offered for sale (bidders specify quantity) • Highest bidder allotted bid quantity • Remaining items allocated to next highest bidders until all items distributed • Bidders pay lowest successful bidder price Electronic Commerce, Tenth Edition 42 Auction Basics (cont’d.) • English auctions (cont’d.) – Seller drawback • May not obtain maximum possible price – Buyer drawback • Winner’s curse psychological phenomenon – Bidder gets caught up in competitive bidding excitement – Bids more than their private valuation Electronic Commerce, Tenth Edition 43 Auction Basics (cont’d.) • Dutch auctions – Open auction • Bidding starts at a high price • Drops until bidder accepts price – Also called descending-price auctions – Seller offers number of similar items for sale – Common implementation • Use a clock (price drops with each tick) • Bidders stop clock and take items at the given price • If items remain, clock restarted Electronic Commerce, Tenth Edition 44 Auction Basics (cont’d.) • Dutch auctions (cont’d.) – Often better for the seller – Quickly move large numbers of commodity items – Successful examples: • Google initial public offering stock sale (2004) • LookSmart stock repurchase Electronic Commerce, Tenth Edition 45 Auction Basics (cont’d.) • First-price sealed-bid auctions – Sealed-bid auctions • Bidders submit bids independently • Prohibited from sharing information – First-price sealed-bid auction • Highest bidder wins • If multiple items auctioned, next highest bidders awarded remaining items at their bid price Electronic Commerce, Tenth Edition 46 Auction Basics (cont’d.) • Second-price sealed-bid auction – Same as first-price sealed-bid auction – Except highest bidder awarded item at secondhighest bidder price – Commonly called Vickrey auctions • William Vickrey: 1996 Nobel Prize in Economics – Findings: • Yields higher seller returns • Encourages all bidders to bid private valuation amounts • Reduces tendency for bidder collusion Electronic Commerce, Tenth Edition 47 Auction Basics (cont’d.) • Open-outcry double auctions – Example: Chicago Board of Trade auctions of commodity futures and stock options – Buy and sell offers shouted by traders in trading pit • Each commodity, stock option traded in own pit • Quite frenzied • Double auctions (either sealed bid or open outcry) – Good for items of known quality traded in large quantities – No item inspection before bidding Electronic Commerce, Tenth Edition 48 Auction Basics (cont’d.) • Double auctions – Buyers, sellers submit combined price-quantity bids – Auctioneer • Matches sellers’ offers – Starts with lowest price and then goes up • To buyers’ offers – Starts with highest price and then goes down until all quantities offered are sold – Operation format: Sealed bid or open-outcry – Example: New York Stock Exchange Electronic Commerce, Tenth Edition 49 Auction Basics (cont’d.) • Reverse (seller-bid) auction – Multiple sellers submit price bids • Auctioneer represents single buyer – Bids for given amount of specific item to purchase – Prices go down as bidding continues • Until no seller willing to bid lower – Occasionally operated for consumers – Most involve businesses as buyers and sellers Electronic Commerce, Tenth Edition 50 FIGURE 6-6 Key characteristics of seven major auction types Electronic Commerce, Tenth Edition 51 Online Auctions and Related Businesses • Online auction business: rapidly changing • Three auction Web site categories – General consumer auctions – Specialty consumer auctions – Business-to-business auctions • Varying opinions on categorizing consumer auctions – Business-to-consumer – Consumer-to-consumer – Consumer-to-business Electronic Commerce, Tenth Edition 52 Online Auctions and Related Businesses (cont’d.) • General consumer auctions • eBay: registration required, seller fees, rating system – Seller’s risk: buyer uses stolen credit card; buyer fails to conclude transaction – Buyer’s risk: no item delivery; misrepresented item – Most common auction format: English auction • • • • Seller may set reserve price Bidders listed: bids not disclosed (until auction end) Continually updated high bid amount displayed Private auction option available Electronic Commerce, Tenth Edition 53 Online Auctions and Related Businesses (cont’d.) • General consumer auctions (cont’d.) – Another eBay auction format: Dutch auction – Both formats require minimum bid increment • Amount by which one bid must exceed previous bid – Proxy bid • Bidder specifies maximum bid • May cause bidding to rise rapidly – eBay stores • Integrated into auction site • Sellers generate additional profits Electronic Commerce, Tenth Edition 54 Online Auctions and Related Businesses (cont’d.) • Competition in general consumer auctions – eBay’s success due to unspecified audience • Also spends $1 billion per year to market and promote Web site – Major determinants of Web auction site success • Attracting enough buyers and sellers – Yahoo! Auction operation closed in 2007 – Amazon.com with “Auctions Guarantee” • Offered buyer protection through escrow service • Closed in 2006 Electronic Commerce, Tenth Edition 55 Online Auctions and Related Businesses (cont’d.) • Future challengers to eBay – Must overcome lock-in effect • New auction participants inclined to patronize established marketplaces – Example: Japanese general consumer auction • Yahoo! first to enter market – Now dominates (more than 90% market share) • eBay maintains low market share (less than 3%) Electronic Commerce, Tenth Edition 56 Online Auctions and Related Businesses (cont’d.) • Specialty consumer auctions – Identify special-interest market targets – Create specialized Web auction sites • No need to compete with eBay – Examples: • JustBeads.com, Cigarbid.com, Winebid Electronic Commerce, Tenth Edition 57 Online Auctions and Related Businesses (cont’d.) • Consumer reverse auctions • Reverse bid – Visitor describes desired items or services – Site routes visitor to participating merchants • Reply to visitor by e-mail • Offer item at particular price – Buyer accepts • Lowest offer • Offer best matching buyer’s criteria • All these types of sites now closed Electronic Commerce, Tenth Edition 58 Online Auctions and Related Businesses (cont’d.) • Consumer reverse auctions (cont’d.) • Priceline.com – Considered a seller-bid auction site – Visitor states desired airline ticket, car rental, hotel room price • If sufficiently high price: transaction completed – Many transactions come from inventory • Priceline operates more as a liquidation broker Electronic Commerce, Tenth Edition 59 Online Auctions and Related Businesses (cont’d.) • Group shopping sites – Also known as group purchasing site – Seller posts item with tentative price – Individual buyers enter bids • Agreement to buy one unit (no price provided) • Site negotiates with seller for lower price – Posted price decreases • As number of bids increases (only if number of bids increases) – Result: buyers force seller to reduce price • Similar to consumer reverse auction Electronic Commerce, Tenth Edition 60 Online Auctions and Related Businesses (cont’d.) • Group shopping sites (cont’d.) • Well-suited product types – Branded products, well-established reputations • Produces buyer confidence of good bargain – High value-to-size ratio, non-perishable • Disadvantages – Difficulty attracting sellers’ interest – Well-suited companies • Find no advantage, fear sites cannibalize product sales, reluctant to offend current distributors • Mercata and LetsBuyIt sites closed • Successful sites: Groupon, LivingSocial, Gilt Electronic Commerce, Tenth Edition 61 Online Auctions and Related Businesses (cont’d.) • Business-to-business auctions – Evolved to meet specific existing need • Excess inventory disposal (manufacturing) – Two methods • Liquidation specialists: find buyers for unusable items • Liquidation brokers: firms that finds buyers for items – Online auctions • Logical extension of these inventory liquidation activities to a new and more efficient channel (Internet) Electronic Commerce, Tenth Edition 62 Online Auctions and Related Businesses (cont’d.) • Business-to-business auctions (cont’d.) – Emerging business-to-business Web auction models • Large-company model: creates own auction site • Small-company model: uses third-party Web auction site instead of liquidation broker • Both are direct descendants of traditional methods Electronic Commerce, Tenth Edition 63 Online Auctions and Related Businesses (cont’d.) • Business-to-business auctions (cont’d.) – Third emerging business-to-business Web auction model • New business entity enters market lacking efficiency and creates a site at which buyers and sellers who have not historically done business with each other can participate in auctions • Resembles consumer online auctions • Example: hospitals using online auctions to fill temporary employment openings Electronic Commerce, Tenth Edition 64 Online Auctions and Related Businesses (cont’d.) • Business-to-business reverse auctions – Example: Owens Corning purchases – Examples: Agilent, Bechtel, Boeing, Raytheon, Sony – Potential disadvantage • Suppliers compete on price alone • Cut corners on quality or miss scheduled delivery dates – Potential advantage • Useful for nonstrategic commodity items with established quality standards Electronic Commerce, Tenth Edition 65 Online Auctions and Related Businesses (cont’d.) • Business-to-business reverse auctions (cont’d.) – Companies opting out • Cisco, Cubic, IBM, Solar Turbines – If suppliers do not participate: • Impossible to conduct reverse auctions – If competition high among suppliers: • Reverse auctions provide efficient way to conduct, manage price bidding Electronic Commerce, Tenth Edition 66 FIGURE 6-7 Supply chain characteristics and reverse auctions Electronic Commerce, Tenth Edition 67 Auction-Related Services • Entrepreneurs encouraged by eBay and other auction site growth • Provide various kinds of auction-related services – – – – Escrow services Auction directory and information services Auction software (for sellers and buyers) Auction consignment services Electronic Commerce, Tenth Edition 68 Auction-Related Services (cont’d.) • Auction escrow services – Buyers’ common concern: seller reliability • Buyers protect interests in high-value items – Independent party holds payment until: • Buyer receives item • Buyer satisfied item is as expected – May take delivery of item from seller • Perform buyer inspection (qualified to do so) – Charge fees • Percent of item’s cost, subject to minimum fee Electronic Commerce, Tenth Edition 69 Auction-Related Services (cont’d.) • Auction escrow services (cont’d.) – Examples: Escrow.com, eDeposit – May sell auction buyer’s insurance • Protect buyers from nondelivery and quality risks – Avoid escrow fraud • Determine if licensed, bonded (licensing agency) • Avoid offshore escrow companies entirely – Other buyer protections • Check seller’s rating • Use Web site listings of unreliable sellers Electronic Commerce, Tenth Edition 70 Auction-Related Services (cont’d.) • Auction directory and information services – Example: AuctionBytes • Publishes e-mail newsletter • Online auction industry articles – Example: Price Watch • Advertiser-supported site • Advertisers post current selling prices • Computer hardware, software, electronics Electronic Commerce, Tenth Edition 71 Auction-Related Services (cont’d.) • Auction software – Target: sellers • Helps manage online auctions – Example: AuctionHawk and Vendio • • • • Seller management software and services Automate tasks Create attractive page layouts Manage hundreds of auctions Electronic Commerce, Tenth Edition 72 Auction-Related Services (cont’d.) • Auction software (cont’d.) – Target: buyers • Helps manage online auctions – Sniping software • Observes auction progress until last second • As auction expires: places bid high enough to win (unless bid exceeds sniping software owner’s limit) • Snipe: act of placing winning bid at the last second • Almost always wins out over human bidder Electronic Commerce, Tenth Edition 73 Auction-Related Services (cont’d.) • Auction software (cont’d.) – Example: Cricket Sniping Software site • Created in 1997 by David Eccles – Companies offer sniping service • • • • Sniping software runs on company Web site Customer enters instructions on site Company may offer subscriptions Company may offer mixed-revenue model Electronic Commerce, Tenth Edition 74 Auction-Related Services (cont’d.) • Auction consignment services – Target: people and small businesses • Want to use online auction • Do not have skills, time to become a seller – Auction consignment services • Take item and create online auction for that item • Handle transaction • Remit proceeds balance (after deducting fee) – Main auction consignment businesses • ePowerSellers, iSold It Electronic Commerce, Tenth Edition 75 Summary • Companies using the Web for entirely new things – Creating social networks – Using mobile technologies to make sales and increase operational efficiency – Operating auction sites – Conducting related businesses • Businesses creating online communities to connect with customers and suppliers • Individuals using social networking sites – Personal and business-related interactions • Mobile commerce opportunities emerging Electronic Commerce, Tenth Edition 76 Summary (cont’d.) • Companies’ internal social networking sites – Facilitate employee communication • Online auctions used to sell goods to customers and buy from suppliers – Seven major auction types – Consumer online auction business dominated by eBay (United States) – Ancillary service businesses support auctions • B2B auctions and reverse auctions – New methods of inventory disposal, procurement Electronic Commerce, Tenth Edition 77