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BUS237 CH.9

E-commerce buying or selling goods over computer networks
problem of e-commerce - not easy to set up - need to consider impact on operations and order fulfillment - security implications
merchant companies - take title to the goods they sell - three types: B2C, B2B, B2G
merchant companies: Business to Consumer (B2C) - sales btw supplier and retail customer - typically provides web-based application
merchant companies: Business to Business (B2B) - sales btw companies - suppliers -> manufactures -> distributors -> retailers
merchant companies: Business to Government (B2G) - sales btw companies and government organizations
non-merchant companies - selling goods without every taking title of the goods - selling services that are provided by others
examples of non-merchant companies - e-commerce auctions (ebay) - clearing house - electronic exchanges
clearing house :matches buyer and seller -> takes payment from buyer -> transfers payment -> arrange delivery
electronic exchanges sellers offer goods at a certain price -> buyer make offers -> system match buyers and sellers (take commission)
benefits of E-commerce - greater market efficiency (disintermediation) - increased flow of information on price and terms - produces information about price elasticity - overcome geographical limitations - gain new customers - open 24/7 - locate unique products faster
disintermediation -removal of intermediaries between parties (manufacturer to consumer) - higher revenues for manufacturers and lower consumer prices
price elasticity how much demand rises or falls with change in price
Issues of E-commerce - channel conflict - price conflict - logistics expense - customer service expense - show rooming - taxation
social networking process by which individuals use relationship to communicate with others in a social netowork
physical capital investment of resources for future profit
human capital investment in human knowledge and skills for future profit
social capital the investment in social relations with the expectation of returns in the marketplace
social capital adds values in 4 ways - information - influence - social credentials - personal reinforcement
how to measure value of social capital - number of relationship - strength of relationship - resources controlled by those related
strong relationship create the most social capital
weak relationship contribute the most to the growth of social networks
weak tie the ppl you know the least but they contribute the most to your netowork
customer loyalty the need to retain customers (and attract new ones)
how does IS help social networking - improved search capabilities - use systems to keep track of friends - network effect: as network grows, value of such network increase
web 2.0 - websites that allow users to dynamically interact with it - able to add User Generated Content (UGC) - enable Software as a Service (SaaS) - increase values by collecting user info - organic user interfaces and mashups - participation and ownership
Examples of User Generated Content (UGC) - information - blog - comments - user reviews - photos - wikis
Software as a Service (SaaS) - google,, ebay - dont sell software licenses, provide software as a serivce - dont need installation
web 2.0: organic user interfaces and mashups - interface -> tool bar in all office programs - mashup -> two or more websites combined for single user experience
Created by: sky58658
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