ecommerce lec

8/12/2019 Ecommerce Lec

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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.

ecommerce lec

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