Chapter 8: Electronic Commerce
Chapter Overview
Chapter 8 presents an overview of how e-commerce works, from the perspective of
the organization and the customer. Businesses and individuals use e-commerce to
reduce transaction costs, speed the flow of goods and information, improve the level
of customer service, and enable close coordination among manufacturers, suppliers,
and customers. It also enables consumers and companies to gain access to worldwide
markets. There are three types of e-commerce: business-to-consumer (B2C), in which
customers deal directly with an organization and avoid any intermediaries; businessto-business (B2B), in which the participants are organizations, and consumer-to
consumer (C2C), which involves consumers selling directly to other consumers.
Chapter Outline
Lecture Topics
An Introduction to Electronic Commerce
E-Commerce Applications
Technology Infrastructure
Electronic Payment Systems
Threats to E-Commerce
Strategies for Successful E-Commerce
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Chapter Principles and Objectives
Principles
Learning Objectives
E-commerce is a new way of conducting business,
and as with any other new application of technology,
it presents both opportunities for improvement and
potential problems.
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E-commerce requires the careful planning and
integration of a number of technology infrastructure
components.
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Users of the new e-commerce technology must take
safeguards to protect themselves.
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Organizations must define and execute a strategy to
be successful in e-commerce.
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1
Identify several advantages of ecommerce.
Outline a multistage model that describes
how e-commerce works.
Identify some of the major challenges
companies must overcome to succeed in ecommerce.
Identify several e-commerce applications.
Outline the key components of technology
infrastructure that must be in place for ecommerce to succeed.
Discuss the key features of the electronic
payment systems needed to support ecommerce.
Identify the major issues that represent
significant threats to the continued growth
of e-commerce.
Outline the key components of a successful
e-commerce strategy.