ecommerce lec
TRANSCRIPT
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ECOMMERCE
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Myspace and Facebook
Tv programs vs online venture
2008 Survey for a US Tv show(12 M) vsfacebook(40 M) and myspace(72 M) of total
111 M. World wide 130M facebook and 115 M
myspace
Both sites have more than 100 M profiles
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Myspace history
Founders:Tom Anderson and Chris DeWolfe(2003)
People to talk about the things they loved and
in personal way bulletin board type building your own website,
promote themselves
Top 100 sites over the world
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Myspace
They started advertising
Big Companies willing to pay for the audience.
They used popular pages/sites on myspace topromote their products.
Toyota, Proctor & Gamble
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Myspace
In 2005 they sold myspace for $580 M
User profiles banned.
Downfall- 2011 they sold it for $35 M
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Facebook (2004)
As rival of myspace Marck Zukerberg createdfacebook with a new thefacebook.com ashobby at Harward.
Digital version of traditional student classpicture
Became popular and expanded to 3000
colleges and unv.
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Facebook
Originally restricted to college students.
They opened it for all in 2006.
At start they have fixed templates rather thanuser designed web pages
Opened up its Web pages to thousands ofwidgets
Allow users to create apps on their site.
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Some facts about E-commerce
Online consumer sales (retail, travel andonline content) to an estimated $255 billion.
Shop electronics, home furnishings, and
apparel.About 78 % of US population use internet
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Some facts about E-commerce
On an average day, 112 million people goonline. Around 97 million send e-mail, 33million share music and 35 million research a
product.
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What is E-commerce?
Use of Internet and Web to transact business
More formally:
Digitally enabled commercial transactionsbetween and among organizations and individuals
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E-commerce
E-commerce involves
Digitally enabled transactions this meanstransactions that occur over the Internet and
the Web Commercial transactions involve the exchange
of value across organizational or individual
boundaries in return for products or services
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E-commerce vs. E-business
E-business:
Digital enablement of transactions and
processes within a firm, involving informationsystems under firms control
Does not include commercial transactions
involving an exchange of value acrossorganizational boundaries
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E-commerce vs E-Business
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Unique Features of E-commerceTechnology
1. Ubiquity
2. Global reach
3. Universal Standards
4. Information richness
5. Interactivity
6. Information density7. Personalization/customization
8. Social technology
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Ubiquity
Traditional comm. Marketplace is physical.
television and radio typically motivate
Its is available everywhere. (home,job)
Came out of being restricted to a physicalplace.
Reduce transaction cost (time + money)
Lower the Cognitive energy.
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Universal Standards
There is one set of technology standards,namely Internet technology.
most traditional commerce technologies differ
from one nation to the next lower market entry costs.
Lower search costs
Users can find any type of product any wherein the world
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Global Reach
permits commercial transactions to crosscultural and national boundaries far moreconveniently and cost-effectively than is true in
traditional commerce. potential market size for e-commerce
merchants is roughly equal to the size of the
worlds online population. Traditional comm. Has limited reach.
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Richness
Trad comm do face to face sales
More information richeness.
Chatting with online users
Sell complex goods that require face to facepresentation.
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Interactivity
Two way interaction (telephone,ecomm)between merchant and consumer.
Trad tevel commercials cant ask any question
or enter in to conversation.
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Information Density
Information processing, storage andcommunication costs drop dramatically, whilecurrency and accuracy improve greatly.
Information becomes plentiful, cheap, andaccurate.
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Personalization/Customization
merchants can target their marketingmessages to specific individuals
They will store the past purchased of customer
and show them to others
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Social Technology
the Internet and e-commerce technologieshave evolved to be much more social byallowing user to create and share content.
Traditional forms are one to many. (press,broadcasting model)
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Web 2.0
Technologies that allow users to:
Create and share content, preferences,bookmarks, and online personas
Participate in virtual lives
Build online communities
E.g. Twitter, YouTube, Facebook, Second Life,Wikipedia
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Types of E-commerce
Classified by market relationship
Business-to-Consumer (B2C)
Business-to-Business (B2B)
Consumer-to-Consumer (C2C)
Classified by technology used
Peer-to-Peer (P2P)
Mobile commerce (M-commerce)
C
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Business-to-Consumer E-commerce
Most commonly discussed type
Online businesses attempt to
reach individual consumers Consumers will spend $255
billion in 2008.
B i B i E
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Business-to-Business E-commerce Businesses focus on sell to other
businesses
Largest form of e-commerce
$3.8 trillion in transactions in 2008
C t C E
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Consumer-to-Consumer E-commerce
Provide a way for consumers tosell to each other
Estimated $5 billion market
Ebay and craiglist
Consumer: prepares the product for market
places the product for auction orsale
relies on market maker to provide
catalog, search engine, and
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Peer-to-Peer E-commerce
Enables Internet users to sharefiles and computer resources
BitTorrent
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Mobile E-commerce
Wireless digital devices enable totransactions on the Web
involves the use of wirelessnetworks to connect cell phonesonce connected they can
conduct transcation through theirIphone, Andriod etc.
Used most widely in Japan and
Europe
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The Internet
Worldwide network of computer networksbuilt on common standards
Created in late 1960s
Services include the Web, e-mail, filetransfers, etc.
Can measure growth by looking at numberof Internet hosts with domain names
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The Growth of the
Internet, Measuredby Number ofInternet Hosts with
Domain Names
Figure 1.3, Page 23
SOURCE: Internet Systems Consortium,Inc. , 2010.
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The Web
Most popular Internet service
Developed in early 1990s
Provides access to Web pages
HTML documents that may include text, graphics,animations, music, videos
Web content has grown exponentially
Google indexes between 75100 billion pages
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Origins & Growth of E-commerce Precursors:
Baxter Healthcare
Electronic Data Interchange (EDI)
French Minitel (1980s videotex system)
None had functionality of Internet
1995: Beginning of e-commerce
First sales of banner advertisements
E-commerce fastest growing form ofcommerce in United States
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The Growth of B2C E-commerceFigure 1.4, Page 25
SOURCES: Based on data from eMarketer, Inc., 2010; authors estimates.
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The Growth of B2B E-commerceFigure 1.5, Page 28
SOURCES: Based on data from U.S. Census Bureau, 2010; authors estimates.
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Search the Web for an example of each of thefive major types of e-commerce. Create awritten report describing each Web site (take a
screenshot of each), and explain why it fits intoone of the five types of e-commerce.