E-commerce Early Visions

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Questions and Answers

Which of the following is NOT mentioned as a key e-commerce trend from 2012-2013?

The emergence of a new 'social e-commerce' based on social networks

The rise of mobile retail e-commerce

The continued growth of search engine marketing (correct)

What is the primary driver behind the emergence of 'social e-commerce'?

The growth of social media and social networking platforms (correct)

Advancements in targeted advertising and marketing technologies

Increased consumer demand for more personalized shopping experiences

What is the estimated total value of online transactions by 2016?

More than 1 million apps in Apple's and Google's app stores

$542 billion for consumers and $5.7 trillion for businesses (correct)

$11 billion for mobile retail e-commerce in the US

What is identified as a key e-commerce society trend in the text?

Concerns over commercial and governmental privacy invasion and declining internet security Signup and view all the answers

Which of the following is NOT mentioned as a key driver of the rapid growth and change in e-commerce during its first 30 years?

The increasing integration of e-commerce with physical retail channels Signup and view all the answers

What is the primary focus of the e-commerce trends discussed in the text?

The technological advancements driving the evolution of e-commerce Signup and view all the answers

Which type of e-commerce involves online businesses selling directly to individual consumers?

B2C Signup and view all the answers

Which e-commerce model involves consumers selling to other consumers online?

C2C Signup and view all the answers

Which e-commerce trend involves leveraging social networks and online social relationships to enable transactions?

Social e-commerce Signup and view all the answers

Which e-commerce trend focuses on engaging consumers based on their current geographic location?

Local e-commerce Signup and view all the answers

Which key driver of early e-commerce growth and change involved the displacement of traditional market intermediaries?

Disintermediation Signup and view all the answers

Which of the following is NOT mentioned as a key characteristic of the 'friction-free commerce' vision described in the text?

Transaction costs are high Signup and view all the answers

What is the primary driver behind the 'networking effect' described in the text?

The more people that use a product or service, the more valuable it becomes to each individual user Signup and view all the answers

Which of the following best characterizes the shift in e-commerce focus during the 'Consolidation' period (2001-2006) described in the text?

A focus on creating new e-commerce brands rather than extending and strengthening existing ones Signup and view all the answers

Which of the following is identified as a key characteristic of the 'Reinvention' period (2006-present) of e-commerce described in the text?

The increased use of customer data to coordinate targeted marketing messages Signup and view all the answers

How does the text characterize the impact of the 'Dot.com bust' on the e-commerce industry?

It caused a reassessment and shift towards a more business-driven approach rather than a technology-driven one Signup and view all the answers

Study Notes

Early Visions of E-commerce

Computer scientists envisioned an inexpensive, universal communications and computing environment accessible by all
Economists saw e-commerce as a nearly perfect competitive market with friction-free commerce, lowered search costs, disintermediation, price transparency, and elimination of unfair competitive advantage
Entrepreneurs saw an extraordinary opportunity to earn far above normal returns on investment, with a first-mover advantage

Understanding E-commerce: Organizing Themes

Technology: development and mastery of digital computing and communications technology
Business: new technologies present businesses with new ways of organizing production and transacting business
Society: intellectual property, individual privacy, and public welfare policy

Academic Disciplines Concerned with E-commerce

Technical approach: computer science, management science, and information systems
Behavioral approach: information systems, economics, marketing, management, finance/accounting, and sociology

Pinterest and the Age of Privacy

Pinterest drives more purchasing than Facebook links, with users spending on average $80 per online purchase, twice the amount of Facebook users
Pinterest has developed a mobile version of its website, serving multiple platforms
Almost 25% of large retailers are highlighting Pinterest in their marketing e-mail
eBay and Amazon have added Pinterest buttons to allow users to share product images and page links directly from their platforms

E-commerce Trends 2012-2013

A new "social e-commerce" continues to emerge based on social networks and supported by advertising
Mobile retail e-commerce explodes to more than $11 billion in the US
Search engine marketing continues to challenge traditional marketing and advertising media
More than 1 million apps in Apple's and Google's app stores create a new platform for online transactions
Cloud computing stores consumer content and software on Internet servers, making it available to any consumer-connected device
Big Data and social networks encourage self-revelation while threatening privacy
Concerns over commercial and governmental privacy invasion increases
Internet security continues to decline as major sites are hacked

Major Types of E-commerce

B2C (Business to Consumer): online businesses selling to individual consumers, including purchases of retail goods, travel services, and online content
B2B (Business to Business): online business selling to other businesses, the largest form of e-commerce
C2C (Consumer to Consumer): online consumers selling to other consumers, relying on auction sites or market makers
Social E-commerce: e-commerce enabled by social networks and online social relationships
Mobile E-commerce: use of mobile devices to enable transactions on the web
Local E-commerce: focused on engaging the consumer based on their current geographic location

Stages of E-commerce History

1995-2000: Invention, characterized by digital disruption of entire industries, first-mover advantage, disintermediation, and friction-free commerce
2001-2006: Consolidation, marked by a sobering period of reassessment, business-driven approach, and emphasis on profitability
2006-Present: Reinvention, characterized by a "social, mobile, local" online world, new models based on user-generated content, social networks, and services

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Description

Explore the early visions of E-commerce presented in slides 1-26 to 1-28 from Pearson Education in 2014. Learn about the perspectives of computer scientists, economists, and entrepreneurs on friction-free commerce and its impact on the market.