Ch. 4 Enabling Business-to-Consumer Electronic Commerce Key Terms

Electronic Commerce (EC)

Refers to the exchange of goods/services on the internet between customers, firms, employees, business partners, and suppliers.

Business-to-Consumer (B2C)

Direct sales from businesses to consumers primarily through online platforms.

Business-to-Business (B2B)

Largest EC form in terms of revenue, highlighting the importance of inter- business transactions between businesses in the digital economy.

Consumer-to-Consumer (C2C)

Transactions between consumers, often via platforms. Like eBay and Craigslist, allowing consumers to buy and sell directly to each other.

Consumer-to-Business (C2B)

Consumers sell products/services to businesses.

Mobile Commerce (MC)

Expected to reach 45% of retail by 2024 that is rapidly growing with consumers increasing smartphones for shopping, leading to the need for mobile friendly websites and apps.

Government-to-Citizens (G2C)

Government services directly to the public like online tax filing, license, renewals, public service announcements, enhancing accessibility and efficiency.

Government-to-Business (G2B)

Interactions involve services like business registration, compliances reporting, government is purchasing materials from directly from suppliers, and streamlining processes for enterprises.

Government-to-Government (G2G)

Transactions between countries or between different levels of government within a country. Ex: state agency reporting birth/death info to U.S. social security administration.

Online Banking

Lets users to manage their finances online, including checking balances, transferring funds, and applying for loans.

Electronic Bill Pay

Simplifying the process of paying bills/automate payments/track expenses online through digital platforms.

Mobile Banking

Enables users to manage finances via mobile devices, allowing balance checks, fund transfers, and loan applications.

Fintech

Technologies introducing the enhance financial services and consumer experiences like online banking/crowdfunding.

E-tailing

Online retailing that is selling products directly to consumers online on the internet.

Brick and Mortar

Retailers that operate in only physical stores.

Click and Mortar

Retailers using both physical and online stores.

Click Only

Retailers operating exclusively online, without any physical presence.

The Long Tail

Focuses on the niche markets instead of mainstream to allow sales of less popular products that may not be workable in physical stores.

Disintermediation

Eliminates the middlemen, allowing businesses to connect directly with consumers, enhancing efficiency.

Mass Customization

Tailoring/focuses on products to meet individual customer needs to increase customer satisfaction and loyalty.

Structural Firmness

Website reliability with no broken links, clear error messages, and robust privacy/security measures.

Functional Convenience

Focuses on user friendly navigation websites, feedback mechanisms, and efficient ordering processes.

Representational Delight

Aesthetic appeal and professional website design that enhances user experience through professional visuals and consistent layout.

Reintermediation

The process of reintroducing the middlemen back in a business model to enhance transactions.