Overview of Electronic Commerce: Definitions, Concepts, and Key Drivers, Thesis of Humanities

Download Overview of Electronic Commerce: Definitions, Concepts, and Key Drivers and more Thesis Humanities in PDF only on Docsity!

MGT 3227

Chapter 1

Overview of Electronic Commerce

LEARNING OBJECTIVES

1. Define electronic commerce (EC) and describe its various categories.
2. Describe and discuss the content and framework of EC.
3. Describe the major types of EC transactions.
4. Discuss e-commerce 2.0.

ELECTRONIC COMMERCE: DEFINITIONS AND CONCEPTS

• (^) electronic commerce (EC) The process of buying, selling, or exchanging products, services, or information via computer network including the Internet.

ELECTRONIC COMMERCE: DEFINITIONS AND CONCEPTS

• (^) e-business A broader definition of EC that includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organization.

ELECTRONIC COMMERCE: DEFINITIONS AND CONCEPTS

• (^) MAJOR EC CONCEPTS
  • (^) EC Organizations
    • (^) brick-and-mortar (old economy) organizations(pure physical organization) Old-economy organizations (corporations) that perform all of their primary business offline, selling physical products by means of physical agents.

ELECTRONIC COMMERCE: DEFINITIONS AND CONCEPTS

• (^) ELECTRONIC MARKETS AND NETWORKS
  • (^) electronic market (e-marketplace) An online marketplace where buyers and sellers meet to exchange goods, services, money, or information.
  • (^) intranet An internal corporate or government network that uses Internet tools, such as Web browsers, and Internet protocols.
  • (^) extranet A network that uses the Internet to link multiple intranets.

THE ELECTRONIC COMMERCE FIELD:

CLASSIFICATION, CONTENT, AND HISTORY

• (^) e-tailing

Online retailing, usually B2C. (is the selling of retail goods

on the Internet)

• (^) business-to-business-to-consumer (B2B2C)

E-commerce model in which a business provides some

product or service to a client business that maintains its

own customers.

• (^) consumer-to-business (C2B)

E-commerce model in which individuals use the Internet

to sell products or services to organizations or individuals

who seek sellers to bid on products or services they

need.

THE ELECTRONIC COMMERCE FIELD:

CLASSIFICATION, CONTENT, AND HISTORY

• (^) intrabusiness EC E-commerce category that includes all internal organizational activities that involve the exchange of goods, services, or information among various units and individuals in an organization.
• (^) business-to-employees (B2E) E-commerce model in which an organization delivers services, information, or products to its individual employees.
• (^) consumer-to-consumer (C2C) E-commerce model in which consumers sell directly to other consumers.

Summary and examples of transaction alternatives between businesses, consumers and governmental organisations

3. Significance of E-commerce

• (^) E-commerce technology is different, more powerful than previous technologies and brings fundamental changes to commerce
• (^) Traditional commerce Vs Modern E-commerce
• (^) Consumer as passive targets – Organization as a core target
• (^) Sales-force driven – Technology Driven
• (^) Fixed prices – Dynamic Prices
• (^) Information asymmetry – Information symmetry

Unique Features of E-commerce Technology

5. Interactivity  The tech works through interaction with the user
6. Information density  The tech reduces information costs, and raises quality
7. Personalization  The tech that allows personalized marketing messages to be deliver to individuals as well as groups
8. Social technology  User content generation and social networks, enable user content creation and distribution 19

Origins and Growth of E-commerce

• Precursors:
  • Baxter Healthcare
  • Electronic Data Interchange (EDI)
  • French Minitel (1980s videotex system)
  • None had functionality of Internet
• 1995: Beginning of e-commerce
  • First sales of banner advertisements
• E-commerce fastest growing form of commerce in

United States and other countries