Download Advertising Model - E-Commerce - Lecture Slides and more Slides Fundamentals of E-Commerce in PDF only on Docsity! 2-4Electronic Commerce (WS-02/03) Business Models Current business models are: o Advertising Model o Affiliate Model o Broker / Brokerage Model o Community Model o Infomediary Model o Manufacturer Model o Merchant Model o Subscription Model o Utility Model Some of these business models are still successful, whereas other have not proven to be accepted by Internet customers. Docsity.com 2-9Electronic Commerce (WS-02/03) Brokerage Model: Marketplace Exchange Model especially common in B2B markets for basic materials and industrial intermediates. In the exchange model, the broker typically charges the seller a transaction fee based on the value of the sale. The pricing mechanism can be a simple offer/buy, offer/negotiated buy, or an auction offer/bid approach. Example: Orbitz(www.orbitz.com) ChemConnect's World Chemical Exchange (www.chemconnect.com). www.chemconnect.com Docsity.com 2-24Electronic Commerce (WS-02/03) Community Model: Knowledge Networks / Expert Sites Provide a source of information based on professional expertise or the experience of other users. Sites are typically run like a forum where persons seeking information can pose questions and receive answers from (presumably) someone know- ledgeable about the subject. The experts may be employed staff, a regular cadre of volunteers, or in some cases, simply anyone on the web who wishes to respond. Examples: ExpertCentral (www.expertcentral.com), AskMe (www.askme.com), NY Times Abuzz (www.abuzz.com). Quite some companies have turned away from this business model (guru, exp). www.expertcentral.com Docsity.com 2-29Electronic Commerce (WS-02/03) Infomediary Model: Metamediary It is a virtual mall, but one that will process the transaction, track orders, and provide billing and collection services. The metamediary protects consumers by assuring satisfaction with merchants. The metamediary charges a setup fee and a fee per transaction. In general, it is a business that brings buyers and online merchants together and provides transaction services such as financial settlement and quality assurance. Examples: Amazon's zShops (www.amazon.com), Edmunds (www.edmunds.com). www.edmunds.com Docsity.com 2-34Electronic Commerce (WS-02/03) Business Models: Merchant Model Implements classic wholesalers and retailers of goods and services (increasingly often referred to as "e-tailers"). Sales may be made based on list prices or through auction. In some cases, the goods and services may be unique to the web and not have a traditional "brick-and-mortar" storefront. Specializations: o Bit Vendor o Catalog Merchant o Surf-and-Turf o Virtual Merchant Docsity.com