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

Chapter Four: Enabling Business to Consumer Electronic Commerce

Introduction to E-Commerce

• Definition: Information systems technologies, especially the internet, facilitate the online exchange of goods and services.

• Benefits to Businesses: Cost savings, expanded reach, and enhanced consumer convenience.

Learning Objectives

• Understanding competitive approaches in cyberspace including:

  • Types of E-commerce

  • E-Government

  • Fintech

  • Focus on Business to Consumer (B2C) e-commerce.

  • Explore Mobile Commerce (m-commerce), Consumer to Consumer (C2C), and Consumer to Business (C2B).

  • Discuss financial and legal issues in e-commerce.

Competitive Approaches in Cyberspace

• E-commerce categorized by interaction party:

  • B2C: Business sells to individual consumers.

  • C2B: Individually selling goods/services to businesses.

  • B2B: Interaction among businesses.

  • C2C: Consumer-to-consumer transactions, e.g., via eBay.

• E-Government: Enhancing efficiency through online services like tax filing and business licenses.

• Fintech: Online banking, investments, and technology-driven financial services.

Deep Dive into B2C E-commerce

• Business Models in E-commerce:

  • Brick-and-Mortar: Traditional physical stores.

  • Click-and-Mortar: Companies with both online and physical presences (e.g., Walmart).

  • Click-Only: Purely online companies (e.g., Netflix).

• Advantages of Online Retailing (E-tailing):

  • Global access 24/7 without product inspection.

• Disadvantages:

  • Risks in trust and product verification, delivery times, and non-physical inspection of products.

Designing Effective E-commerce Websites

• Website Essentials:

  • Structural Firmness: Quick loading, secure data handling.

  • Functional Convenience: User-friendly navigation, efficient checkout process.

  • Representational Delight: Visual appeal and professionalism.

• Importance: Poor website function can deter potential buyers.

Internet Marketing Strategies

• Shifts in Advertising: Increased focus on internet marketing over traditional media.

• Types of Internet Marketing:

  • Search Marketing: Ads in search results.

  • Email Marketing: Promotions via email.

  • Social Media Marketing: Ads on platforms like Facebook and Twitter.

• Tracking Success: Use dashboards for metrics tracking.

• Search Engine Optimization (SEO): Crucial for improving organic search results.

Characteristics of Mobile Commerce

• Definition: Transactions via mobile devices.

• Location-Based Services: Matching services to user locations (GPS).

• AI Advances: Voice and chatbot purchases (e.g., Amazon Alexa).

Consumer to Consumer E-commerce (C2C)

• Definition: Individuals selling to each other online.

• e-Auctions and Online Classifieds: Examples include eBay and Craigslist.

• Opportunities & Threats:

  • Increased market reach but potential fraud.

Financial Aspects of E-commerce

• E-banking and Payment Methods:

  • Use of credit cards for consumer protection vs. fraud risks.

  • Payment Services: Third-party management of payment information (e.g., PayPal).

  • Cryptocurrencies: Low fees and anonymity, with volatility and limited acceptance.

• Security Measures:

  • Ensure encrypted browsing; avoid sharing excessive personal info.

Legal Issues in E-commerce

• Sales Tax Considerations: E-commerce sales treated like mail orders; shifts in legislation for taxing online sales.

• Digital Rights Management (DRM): Practices to protect digital content from piracy.

• Net Neutrality: Equal treatment of data packets online.

Conclusion

• E-commerce opens pathways for companies and consumers alike, but understanding the landscape, from competition to legal frameworks, is essential for success.

• For Questions: Contact the instructional team for further discussions.