Chapter 9 - Electronic Commerce
Chapter 9 - Electronic Commerce
Chapter 9 - Electronic Commerce
Technology
2nd Edition
Turban, Rainer & Potter
2003 John Wiley & Sons, Inc.
Chapter 9:
Electronic Commerce
Prepared by:
Roberta M. Roth, Ph.D.
University of Northern Iowa
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
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Chapter Preview
In this chapter, we will study:
Forms and uses of business-toconsumer electronic commerce
Forms and uses of business-tobusiness electronic commerce
New forms of EC
Technical and non-technical
requirements needed to make EC work
Legal and ethical issues associated
with EC
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E-Commerce / E-Business
Electronic Commerce: buying and
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Types of E-Commerce
Business-to-business EC (B2B)
Collaborative commerce (c-commerce)
Business-to-consumer EC (B2C)
Consumer-to-businesses (C2B)
Consumer-to-consumer (C2C)
Intrabusiness (intraorganizational)
commerce
Government-to-citizens (G2C) and
others
Mobile commerce (m-commerce)
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advertising
home banking
shopping in electronic stores and malls
buying stocks
finding a job
conducting an auction
collaborating electronically with business partners
around the globe
providing customer service
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EC Benefits to Organizations
Reduced cost:
Broaden markets
Find niche markets (e.g. www.dogtoys.com)
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EC Benefits to Customers
Choice
Convenience
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EC Benefits to Society
Convenience
Access
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Technical Limitations of EC
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Non-Technical Limitations of EC
Cultural resistance:
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Business-to-Consumer EC
Electronic Storefronts and Malls
Electronic retailing can be conducted via
solo storefront or as a part of cybermall
Issues of e-tailing
May cause channel conflict and conflict
with existing stores
Difficult to fulfill large quantity of very
small orders
Incorrect business model (advertising
revenue versus profitable sales)
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Business-to-Consumer EC
(continued)
Services Online
Banking (www.sfnb.com)
Securities trading (Schwab Online)
Job markets (Monster Board)
Travel (Expedia.com)
Real estate (Realtor.com)
Auctions (eBay.com)
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Business-to-Consumer EC
(continued)
Personalization ability to customize
product, service, advertisement, or
customer service
B2C EC enables personalization at low
cost
Internet enables marketing research
Questionnaires
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Business-to-Consumer EC
(continued)
Use of intelligent agents
Help customers determine what to buy
Search for and compare vendor prices
Collect information and develop customer
profiles
Online advertising
Banners
Keyword banners
Random banners
Direct email
Pop-up windows
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Business-to-Consumer EC
(continued)
Advertising Approaches and Issues
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Business-to-Consumer EC
(continued)
Providing Customer Service
Help customer determine needs
Help customer acquire product or
service
Support customer during ownership
of product or service
Help customer dispose of product or
service
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Business-to-Business EC
Composes the majority of EC volume
Enables organizations to form electronic
relationships
Covers all activities along the supply chain
Business Models:
Sell-Side Marketplace
Buy-Side Marketplace
Electronic Exchanges
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Electronic Commerce
Requirements
Infrastructure hardware, software, and
networks needed to conduct transactions,
communicate, and collaborate
Electronic Payment Mechanisms
Electronic checks
Customer opens account with a bank
the customer e-mails an encrypted electronic
check signed with a digital signature
the merchant deposits the check in his or her
account; money is debited in the buyers account
and credited to the sellers account
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Electronic Commerce
Requirements
Electronic cash in PC
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Electronic Commerce
Requirements
Electronic Payment Mechanisms (continued)
Electronic payment cards with e-cash
Smart cards
EFT
Electronic wallets
Purchasing cards
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Electronic Commerce
Requirements
Security
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Electronic Commerce
Requirements
Security (continued)
Encryption - a process of making messages
indecipherable except by those who have an
authorized decryption key
Single-key encryption
Public/private key encryption
Public key infrastructure
Electronic Certificates
Secure Socket Layer (SSL)
Secure Electronic Transaction Protocol
(SET)
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Electronic Commerce
Requirements
Order Fulfillment
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Web Tracking
by using sophisticated software it is
Disintermediation
the use of EC may result in the elimination
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Copyright
intellectual property is protected by copyright
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Chapter Summary
B2C EC encompasses e-tailing, auctions,
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