Chapter 5
ELECTRONIC COMMERCE
Strategies for the New Economy
STUDENT LEARNING OUTCOMES
WHAT’S REPLACING THE DAY AFTER
THANKSGIVING FOR SHOPPING SALES?
INTRODUCTION
• E-commerce is changing everything
• Electronic commerce (e-commerce)
INTRODUCTION
• But e-commerce is still commerce
• You must have a clear path-to-profitability
(P2P)
CHAPTER ORGANIZATION
1. E-Commerce Business Models
2. Understand Your Business, Products,
Services, and Customers
3. Find Customers and Establish
Relationships
CHAPTER ORGANIZATION
4. Move Money Easily and Securely
5. E-Business Trends
E-COMMERCE BUSINESS
MODELS
B2B E-Commerce
• Business to Business (B2B) ecommerce
B2C E-Commerce
• Business to Consumer (B2C) ecommerce
C2B E-Commerce
• Consumer to Business (C2B) ecommerce
C2C E-Commerce
• Consumer to Consumer (C2C) ecommerce
B2G E-Commerce
• Business to Government (B2G) ecommerce
C2G E-Commerce
• Consumer to Government (C2G) ecommerce
G2B E-Commerce
• Government to Business (G2B) ecommerce
G2C E-Commerce
• Government to Consumer (G2C) ecommerce
G2G E-Commerce
• Government to Government (G2G) ecommerce – e-commerce activities within a
nation’s government (can also refer to ecommerce activities between 2 or more
nations’ governments)
– Vertical govt integration
– Horizontal govt integration
• Mainly about information sharing, not
UNDERSTAND YOUR BUSINESS,
PRODUCTS, SERVICES, &
CUSTOMERS
• To be successful, you must…
Who Are Your Customers?
• Business to Business
• Business to Consumer
• Each is different and has different needs
and wants
Customer Product and Service
Value Perception
B2C: Convenience Versus Specialty
• Convenience
• Specialty
B2C: Commoditylike and Digital
• Commoditylike
• Digital
B2C: Mass Customization
• Mass customization
B2B: MRO Versus Direct
• Maintenance, repair, and operations
(MRO) materials (indirect materials)
MRO Materials
• Buyers in B2B make large purchases
• Can then demand a discount (not true in
B2C)
• Can team up with other buyers to create
demand aggregation
• Demand aggregation
Direct Materials
• Direct materials
Direct Materials
• Buyers can participate in reverse auctions
for direct materials
• Reverse auction
B2B: Horizontal Versus Vertical
• B2B e-commerce takes advantage of emarketplaces
• Electronic marketplace (e-marketplace)
E-Marketplaces
Horizontal E-Marketplace
• Horizontal e-marketplace
Vertical E-Marketplace
• Vertical e-marketplace
To Summarize
• B2C
To Summarize
• B2B
FIND CUSTOMERS AND
ESTABLISH RELATIONSHIPS
Business to Consumer
• Need to determine your marketing mix
• Marketing mix
B2C Marketing Mix Tools
•
•
•
•
Registering with search engines
Online ads
Viral marketing
Affiliate programs
Registering with Search Engines
Online Ads
• Online ads (banner ads)
Online Ads
Banner ad for a
loan lending
services
Viral Marketing
• Viral marketing
Affiliate Programs
• Affiliate program
Affiliate Programs
• Click-throughs and conversion rates are
important
• Click-through
• Conversion rate
Affiliate Programs
Business to Business Marketing
To Summarize
• B2C
To Summarize
• B2B
MOVE MONEY EASILY &
SECURELY
B2C Payment Systems
Financial Cybermediaries
• Financial cybermediary
Financial Cybermediaries
Electronic Checks
• Electronic check
Electronic Bill Presentment &
Payment
• Electronic Bill Presentment and
Payment (EBPP)
Smart Cards
• Smart card
B2C Payment Systems
• Must move money and other information
such as shipping address
• Digital wallets can help
• Digital wallet
Digital Wallets
B2B Payment Systems
EDI
• Electronic data interchange (EDI)
EDI and a VAN
Financial EDI
• Financial EDI
Security: The Pervading
Concern
• Security is very important when moving
money
Encryption
• Encryption
Public Key Encryption
Secure Sockets Layers
• Secure Sockets Layer (SSL)
Secure Sockets Layers
The “s” in https and
the padlock
Secure Electronic Transactions
• Secure Electronic Transaction (SET)
To Summarize
• B2C
To Summarize
• B2B
To Summarize
• B2C and B2B – security…
E-BUSINESS TRENDS
E-Business Trend - Youth
• Screenager
• Digital native
E-Business Trend – MCommerce
• Mobile computing
• M-commerce
• Mobility
E-Business Trend – Long Tail
• Long Tail
E-Business Trend – Long Tail
E-Business Trend – Long Tail