Chapter 9

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IS FINAL EXAM Fichas sobre Chapter 9, creado por aleaguirre el 01/05/2013.
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Micropayments provide content providers with a cost-effective method for processing high volumes of very small monetary transactions
E-Commerce Advantages Decreased costs; Better relationships with suppliers, customers, business partners; Increasing customer involvement/feedback; Improving customer service; Increasing flexibility and ease of shopping
E-Commerce Advantages Increasing the number of customers; Increasing opportunities for collaboration with business partners; Increasing return on investment because inventory needs are reduced
community provider provides an online meeting place where people with similar interests can communicate and find useful information (facebook, google+)
Wisdom of Crowds Based on concept that large numbers of people can make better decisions about topics and products than a single person
crowdsourcing where firms offer incentives to customers for solving a problem or coming up with an idea
prediction markets peer-to-peer betting markets on specific outcomes (elections, sales figures, designs for new products) – customer places bets or votes for or against specific outcomes
Crowd-funding organized web sites where individuals can ask for direct financial contributions from family, friends, and others to help fund some type of venture
Long-tail marketing ability to reach a large audience inexpensively
behavioral targeting tracking online behavior of individuals on thousands of Web sites
Search Engine Marketing use of search engines to deliver sponsored links (for which advertisers have paid) in search engine results
Web Site Visitor Tracking E-Commerce Web sites have tools to track a shopper’s every step through an online store
Search Engine Optimization process of changing a site’s content, layout and format in order to increase the ranking of the site on popular search engines and to generate more site visitors
Search Engine Optimization method for improving the volume or quality of traffic to a web site; improving the ranking of a web site in search engine listings
Web Site Personalization Firms can create unique personalized Web pages that display content or ads for products or services of special interest to individual users, improving the customer experience and creating additional value.
Spamdexing using a variety of deceptive techniques in an attempt to manipulate search engine rankings
Recommendations for optimizing a Web Site -Keywords -page title -inbound links
Social E-commerce -Based on digital social graph -Mapping of all significant online relationships -On-line social network
Social Media Fastest growing media for branding and marketing
Social Network Marketing & Social Search an effort to provide fewer, more relevant, and trustworthy search results based on a person’s network of social contacts
Electronic Payment money or script that is exchanged electronically (payment cards, e-cash, e-check, e-wallet)
Financial Cybermediary an Internet-based company that facilitates payments over the Internet (ex. PayPal)
service provider provides Web 2.0 applications such as photo sharing, video sharing, and user-generated content as services. Provides other services such as online data storage and backup.
content provider creates revenue by providing digital content, such as news, music, photos, or video, over the Web. the customer may pay to access the content, or revenue may be generated by selling advertising space.
portal provides initial point of entry to the Web along with specialized content and other services
transaction broker saves users money and time by processing online sales transactions and generating a fee each time a transaction occurs
market creator provides a digital environment where buyers and sellers can meet, search for products, display products, and establish prices for those products.
E- Government involves the use of Internet technologies to transform government(s) by improving the delivery of services and enhancing the quality of interaction between the citizen-consumer and the various branches of government
Government-to-Citizen (G2C) Government services provided on-line to citizens/customers (Renew driver’s licenses, passports, visas, Medicare Medicaid benefits, social security, food stamps, public service announcements)
Government-to-Business (G2B) Government services to businesses Information about regulations, licenses; import/export/tariff information; forms
Government-to-Business (G2B) Business initiated transactions to government- Filing information with SEC/EEO/IRS, paying taxes/fees
Government-to-Citizen (G2C) Consumer initiated transactions with government - Elections/voting, census/demographic information, file/pay taxes
Government-to-Government (G2G) governments exchanging information (local, state, national, International)
M-Commerce use of wireless mobile devices for purchasing goods and services
Sales Revenue Model companies derive revenue by selling goods, information, or services to customers (ex. Amazon sells books, music, and other products)
Advertising Revenue Model a Web site generates revenue by attracting a large audience of visitors who can then be exposed to advertisements
Subscription Revenue Model a Web site offering content or services charges a subscription fee for access to some or all of its offerings on an ongoing basis
Free/ Freemium Revenue Model firms offer basic services or content for free, while charging a premium for advanced or special features
Transaction Fee Revenue Model (sometimes called brokerage) a company receives a fee for enabling or executing a transaction (ex. eBay provides an online auction marketplace and receives a small transaction fee from a seller if the seller is successful in selling an item)
Affiliate Revenue Model Web sites (called affiliate web sites) send visitors to other Web sites in return for a referral fee or percentage of the revenue from any resulting sales
e-tailer sells physical products directly to consumers or to individual businesses
Market Entry Costs costs merchants must pay to bring goods to market
Search Costs effort required to find suitable products
Richness the complexity and content of a message
Interactivity e-commerce can provide two way communication between merchant and consumer
Information Density the total amount and quality of information available to all market participants
Price Transparency the ease of finding out the cost of an item
Cost Transparency the ability to find out the actual cost to the merchants
Price Discrimination selling the same goods to different targeted groups at different prices
Personalization ability to target marketing messages to specific individuals by adjusting the message to a person’s name, interests, and past purchases
Customization modification of a good or service based on a user’s preference
Information Asymmetry exists when one party in a transaction has more information that is important for the transaction than the other party
Transaction Costs the costs of participating in a market
Menu Costs merchant's costs of changing prices
dynamic pricing the price of a product varies depending on the demand characteristics of the customer or the supply situation of the seller
disintermediation the removal of organizations or business process layers responsible for intermediary steps in a value chain
digital goods Goods that can be delivered over a digital network (music, video, software, newspapers, books)
Business- to- Consumer (B2C) businesses sell their products or services directly to consumers over the Internet; may involve disintermediation
E-shop (e-tailer, e-store, on-line store) an on-line version of a retail store
E-mall consists of a number of e-shops; serves as a gateway (portal) through which a consumer can access multiple e-shops
Menu-driven pricing company sets the price that consumers pay (traditional B2C)
Reverse-Pricing consumer specifies the price he/she is willing to pay, the company can accept or reject it (ex. Priceline.com)
Consumer-to-Consumer (C2C) Involves business transactions between users; offer goods and services to assist consumers interacting with each other over the Internet
Forward Auction Sellers use the site as a selling channel to many buyers and the highest bid wins (ex. Ebay)
Business-to-Business (B2B) Involves electronic transactions among businesses; businesses buying from and selling to each other over the Internet; lowers production costs and improves accuracy by eliminating many labor-intensive tasks
Electronic Data Interchange (EDI) Computer-to-computer exchange of standard transactions such as invoices, purchase orders.
Private Industrial Networks (private exchanges) Large firm using extranet to link to its suppliers, distributors, and other key business partners
Reverse Auction vendors provide quotes (bid) to firm on price they will sell for; buyer selects the vendor with the lowest bid or quote
Net marketplaces (e-hubs) or 3rd party Exchanges online marketplaces where multiple buyers can purchase from multiple sellers
E-Commerce use of the Internet and Web to transact business; digitally enabled transactions
Ubiquity Internet/Web technology available everywhere: anytime, anyplace; A marketplace extended beyond traditional boundaries and removed from temporal, geographic locations
Global Reach The technology reaches across national boundaries, around Earth; Commerce enabled across cultural and national boundaries seamlessly and without modification.
Universal Standards One set of technology standards: Internet standards;
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