Question | Answer |
Electronic Commerce | The online exchange of goods, services and money between businesses, people and customers |
7 Types of E-Commerce | • Business to consumer (B2C)
• Business to business (B2B)
• Business to employee (B2E)
• Consumer to consumer (C2C)
• Government to citizen (G2C)
• Government to business (G2B)
• Government to government (G2G) |
6 Web Capabilities | • Global Information dissemination
Integration
• Mass customization
• Interactive communication
• Collaboration
• Transactional support |
Information Dissemination (Give 1 Example) | The sharing and distribution of information on a large scale that everybody can access like the internet. |
Integration (Give 1 Example) | Uses web technologies to link corporate databases to provide access for personalized information such as accessing updated airline fees for plane flights. |
Mass Customisation (Give 1 Example) | Tailor products and services for their customers’ needs and wants such as the customization of an athletic shoe’s colours. |
Interactive Communication (Give 1 Example) | Provides communication between businesses can customers, such as online PC support applications from an IT servicing company. |
Collaboration (Give 1 Example) | Allows for different business departments to share information between each other on the web, such as accessing profit figures from the consumer electronics department |
Transaction Support | Conducts business transactions without human support such as purchasing a PC online. |
Disintermination | Having electronic commerce tends to streamline its operations and reduces the need for human intervention. More automated services can serve customers. |
Reintermediation | The business model where it reintroduces middlemen to reduce chaos brought it by disintermediation |
3 Main Business Strategies | • Brick-and-mortar (physical)
• Click-only (virtual, online)
• Click-and-mortar (combination) |
5 Main Components of the Business Model | • Revenue model
• Value proposition
• Competitive environment
• Marketing strategy
• Management team |
5 Possible Revenue Models for E-Commerce Businesses (Elaborate and give example for each) | • Affiliate marketing
• Subscription based
• Transaction fees
• Traditional sales
• Web advertising/hosting |
Electronic Data Interchange (EDI) | was a system used for data exchange between business before the development of the Internet and the Web. They helped streamline processes and reduce error rates when the data was used. |
Extranet | A private website that is used to do business-to-business interaction with. They offer more advantages than EDI’s since they were low cost to implement, centrally managed, little training needed and improved timelines and accuracy of information. |
Intranet | Private network that authorized employees can access. |
Which E-Commerce Types rely on extranet and intranet? (2 Types) | B2B and B2E |
Which E-Commerce Type uses the internet? | B2C |
3 Stages of B2C Commerce (Diagram) | • E-Information
• E-Integration
• E-Transaction |
E-Information | Providing electronic brochures and other types of information for customers |
E-Integration | Process of providing customers with access to gain personalized information by querying corporate databases and other information sources |
E-Transaction | Allows customers to place orders and make payments |
E-Tailing | The online sales of goods and services |
3 Benefits of e-tailing (Elaborate) | • Product benefits
• Place benefits
• Price benefits |
3 Drawbacks of E-Tailing (Elaborate) | • Product delivery
• Lack of sensory information
• Lack of social element |
Long Tail | E-Tailing for niche markets |
6 Rules for Attracting and Retaining Online Customers | • Unique Website
• Aesthetically pleasing Website
• Website must be easy to use and fast
• Website must motivate people to visit, purchase, stay and return
• Website must advertise your presence on the web
• Businesses must learn from their website |
Search Marketing | Pay fees to get listed in search engine results |
Search Advertising | Companies bid to be listed in sponsored search results |
Search Engine Optimisation | Position within search results based on a complex, secret formula |
3 Ways to Advertise a Website | • Search marketing
• Search advertising
• Search engine optimization |
3 Types of Financial Transactions | • Online banking
• Electronic bill pay
• Online Investing |
2 Types of C2C E-Commerce | • E-auctions
• M-Commerce (Mobile) |
5 Opportunties for C2C E-Commerce | • Broader markets to buy and sell
• No middleman
• Available 24/7/365
• Set prices accordingly to market demand
• Increased visibility of buyers and sellers to each other |
3 Threats for C2C E-Commerce | • No quality control
• Higher possibility of fraud
• Harder to use traditional methods to pay with like cash and cheques
• M-Commerce (Mobile) |
E-Government (Elaborate and give examples for the 3 forms of Government E-Commerce) | Provides public services information to its citizens, business organizations and other governmental parties |