MIS 304 Ch 4 Enabling Business-to-Consumer Electronic Commerce

Learning Objectives

  • Electronic Business:

    • Compete in cyberspace

    • Understand forms of electronic government and fintech

  • Business-to-Consumer E-Commerce:

    • Describe e-commerce strategies

  • Electronic Commerce Websites and Internet Marketing:

    • Keys to successful e-commerce websites

    • Various forms of Internet marketing

  • Mobile Commerce:

    • Describe various forms of electronic commerce

    • including mobile commerce

    • C2C

    • C2B

  • Managing Finances and Legal Issues:

    • Navigate e-commerce financial transactions and legalities

E-Commerce Definitions

  • E-Commerce Defined:

    • Exchange of goods, services, and money among businesses, customers, and supported by communication technology and the Internet.

    • Source: U.S. Census Bureau News, U.S. Department of Commerce

Types of E-Commerce

  • Business Models:

    • B2C (Business-to-Consumer): Transactions between businesses and consumers (e.g., buying a book from Amazon)

    • B2B (Business-to-Business): Transactions among businesses (e.g., manufacturers conducting business with suppliers)

    • C2B (Consumer-to-Business): Transactions where consumers offer products or services to businesses (e.g., photography sold on shutterstock.com)

    • C2C (Consumer-to-Consumer): Transactions between consumers (e.g., eBay purchases)

E-Government Initiatives

  • Types of E-Government:

    • G2C (Government-to-Citizens)

    • G2B (Government-to-Business)

    • G2G (Government-to-Government)

Financial Services via Technology

  • Disintermediation:

    • Enabled firms to provide financial services directly to consumers.

  • Fintech:

    • Technologies supporting activities in the financial sector.

EC Business Strategies

  • Types of Retail Strategies:

    • Brick and Mortar: Operate solely in physical stores.

    • Click and Mortar: Use both physical and online stores.

    • Click Only: Operate solely online.

Advantage of E-tailing

  • Disintermediation:

    • Efficiently cuts the middleman.

  • Mass Customization:

    • Customizing products to fit individual needs.

Mass Customization Value

  • Consumer Surplus:

    • Benefits derived from tailored products.

  • Traditional vs. Mass-Customized Products:

    • Increased surplus and profits for producers with customization.

Capabilities and Opportunities (cont)

  • Group Buying:

    • Significant discounts for collective purchases upon people agreeing to purchase

  • New Revenue Models:

    • Subscription, licensing, and transaction fees.

    • Earn money through web advertising

Product, Place, and Price Benefits in E-Tailing

  • Product Variety:

    • No store restrictions, vast variety of goods available online.

  • Price Efficiency:

    • Online pricing advantages can enhance competitiveness.

Trust and Challenges in E-tailing

  • Concerns:

    • Lack of trust for new businesses

    • Requires additional delivery time for products

    • Returns can be a hassle

Internet Marketing Essentials

  • Search Engine Optimization (SEO):

    • Vital for website success and attracting visitors.

    • attempts to improve page’s ranking in search engines

    • Other pages linked to the page; keep updated content

Internet Marketing Methods

Mobile E Commerce

  • Location Based:

    • Offered tailored to a person’s needs on current location

  • Info on the Go:

    • Obtain further info about a product wherever they are

  • Product and Content Sales:

    • Consumers use mobile apps to make purchases on the go

C2C EC

  • E - Auctions:

    • Individual sellers sell or barter items at online auctions

    • consumers place bids; E.g. Ebay

    • Revenue based on small transaction fees

  • Online Classfieds:

    • No online transactions; just advertising

    • Freecycling

    • Ex. Craiglist

E-commerce Payments

  • Handling Payments:

    • Protecting personal information and managing risks associated with fraud.

  • Cryptocurrency Transactions:

    • Understanding bitcoin transactions and blockchain technology.

Protecting Yourself When Shopping Online

  • Use Secure Browser

  • Check site privacy policy

  • Keep personal info private

  • Keep records of online transactions and check email

  • Review monthly credit card and bank statements

Legal Issues in E-Commerce

  • Digital Rights Management:

    • Intellectually property rights, media access, and streaming rest

  • Taxation:

    • Sales taxes

    • Internet Freedom Act: Internet sales treated like mail order sale