13 Questions
What is the primary revenue model of an E-tailer?
Sale of goods
Which business model is characterized by selling services online?
Service provider
What is the primary function of a Portal?
Providing an integrated package of content
Which business model is characterized by forming new markets online?
Market creator
What is the primary revenue model of a Community provider?
Advertising and subscription
Can a single business fall into multiple business models?
Yes
Which business model is characterized by selling goods and services online?
E-tailer
What is the primary revenue model of a Content provider?
All of the above
Which business model is characterized by creating online communities and generating revenue through advertising?
Community provider
Which business model is characterized by processing online transactions and generating revenue through transaction fees?
Transaction Broker
What is the primary function of a Portal?
Integrated package of content
Which business model is characterized by selling goods and services online, and generating revenue through the sale of goods?
E-tailer
What is the primary revenue model of a Market creator?
Transaction fees
Study Notes
Major B2C Business Models
- E-tailer: virtual merchant, bricks & clicks, catalog merchant, or manufacturer direct, selling goods online, e.g. Amazon, Walmart.com
- Revenue model: sale of goods
Service Provider
- Sells services online, where services are actions, "verbs", as opposed to goods, which are items, "nouns"
- Examples: TurboTax
- Revenue model: sale of services
Content Provider
- Sells content, including articles, music, videos, games, etc.
- Examples: CNN, Netflix, YouTube
- Revenue models: subscription, advertising, affiliate referral fees
Community Provider
- Creates online communities, e.g. Facebook
- Revenue model: advertising, subscription, affiliate referral fees
Portal
- Offers an integrated package of content, often a "home page" for users
- Examples: Yahoo, AOL
- Revenue model: advertising, subscription, transaction fees
Transaction Broker
- Processes online transactions, e.g. Hotels.com
- Revenue model: transaction fees
Market Creator
- Forms new markets online, e.g. eBay
- Revenue model: transaction fees (often also advertising)
Key Observation
- One business can fall into many of these categories, e.g. Amazon has multiple business models
Major B2C Business Models
- E-tailer: virtual merchant, bricks & clicks, catalog merchant, or manufacturer direct, selling goods online, e.g. Amazon, Walmart.com
- Revenue model: sale of goods
Service Provider
- Sells services online, where services are actions, "verbs", as opposed to goods, which are items, "nouns"
- Examples: TurboTax
- Revenue model: sale of services
Content Provider
- Sells content, including articles, music, videos, games, etc.
- Examples: CNN, Netflix, YouTube
- Revenue models: subscription, advertising, affiliate referral fees
Community Provider
- Creates online communities, e.g. Facebook
- Revenue model: advertising, subscription, affiliate referral fees
Portal
- Offers an integrated package of content, often a "home page" for users
- Examples: Yahoo, AOL
- Revenue model: advertising, subscription, transaction fees
Transaction Broker
- Processes online transactions, e.g. Hotels.com
- Revenue model: transaction fees
Market Creator
- Forms new markets online, e.g. eBay
- Revenue model: transaction fees (often also advertising)
Key Observation
- One business can fall into many of these categories, e.g. Amazon has multiple business models
Types of B2C business models, including e-tailer, service provider, and content provider, with examples and revenue models. Learn about online retailers, service-based businesses, and content providers.
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