E-Commerce Definition and Features
10 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is e-commerce?

E-commerce is the use of electronic means and technology for conducting business.

Which generation of E-commerce introduced the concept of business to consumer E-commerce?

  • Fourth Generation - 2009 onwards
  • First Generation - 1995-1997 (correct)
  • Second Generation - 1997-2001
  • Third Generation - 2001-2009

    • E-commerce is limited to Internet shopping and Internet business.

    False

    Business-to-Administration (B2A) e-commerce encompasses all transactions conducted online between ________________ and public administration.

    <p>companies</p> Signup and view all the answers

    What is a disadvantage associated with e-commerce?

    <p>Strong dependence on information and communication technologies</p> Signup and view all the answers

    What are the two factors that lead to the development of Models of E-Commerce based on Functionality?

    <p>Value addition to the product available online and control of websites.</p> Signup and view all the answers

    Which model of E-Commerce involves the broker bringing buyers and sellers on a common platform?

    <p>Brokerage Model</p> Signup and view all the answers

    The Subscription Model charges a subscription fee in exchange for services like Content Service and Trust service.

    <p>True</p> Signup and view all the answers

    ______ Model involves websites providing advertisements, infomercials, and advertorials.

    <p>Advertising</p> Signup and view all the answers

    Match the following types of Market Segmentation with their descriptions:

    <p>Demographic Segmentation = Based on variables such as age, gender, income, etc. Geographic Segmentation = Targets people who live in a particular location based on needs and cultural considerations. Psychographic Segmentation = Segments based on beliefs, values, lifestyle, social status, and other psychological criteria. Behavioral Segmentation = Divides customers based on their behavior patterns when interacting with a business.</p> Signup and view all the answers

    Study Notes

    Definition and Features of E-Commerce

    • E-commerce refers to the use of electronic means and technology for conducting business.
    • Features of e-commerce:
      • Virtual existence: easy to set up an online store
      • Availability: open 24/7, accessible from anywhere
      • Time-saving approach: reduces travel time and distance
      • Economical process: reduces costs for sellers and buyers
      • Comfort for buyers: convenient shopping experience
      • Comfort for suppliers/sellers: easier to promote and sell products

    History and Development of E-Commerce

    • Four generations of e-commerce:
      1. First generation (1995-1997): business-to-consumer e-commerce
      2. Second generation (1997-2001): consumer-to-consumer and business-to-business e-commerce
      3. Third generation (2001-2009): online malls and web stores
      4. Fourth generation (2009 onwards): business-to-business-to-consumer-to-consumer (B2B2C2C) e-commerce

    Types of E-Commerce

    • Six types of e-commerce:
      1. Business-to-Business (B2B): electronic transactions between companies
      2. Business-to-Consumer (B2C): electronic transactions between businesses and final consumers
      3. Consumer-to-Consumer (C2C): electronic transactions between consumers
      4. Consumer-to-Business (C2B): electronic transactions where consumers offer services or products to businesses
      5. Business-to-Administration (B2A): electronic transactions between companies and public administration
      6. Consumer-to-Administration (C2A): electronic transactions between individuals and public administration

    Advantages of E-Commerce

    • Advantages of e-commerce:
      • Global reach without large financial investment
      • Direct interaction with final consumers, shortening the product distribution chain
      • Increased productivity and competitiveness for companies
      • Cost reduction and improved customer service
      • 24/7 availability of virtual stores

    Disadvantages of E-Commerce

    • Disadvantages of e-commerce:
      • Dependence on information and communication technologies (ICT)
      • Lack of adequate legislation and regulation
      • Cultural and economic identity concerns
      • Insecurity in online business transactions

    Models of E-Commerce based on Functionality

    • Two factors lead to the development of Models of E-Commerce based on Functionality: value addition to products available online and control of websites.
    • There are seven models of E-Commerce based on functionality:
      • Brokerage Model: brings buyers and sellers together on a common platform, mediates between them, and earns profit from fees and commissions.
      • Info-mediary Model: helps sellers gather and manage customer information for targeted marketing.
      • Affiliate Model: earns commissions by selling other e-retailers' products or services on their websites.
      • Subscription Model: charges customers for content services, person-to-person networking, trust services, and internet services.
      • Advertising Model: generates revenue from advertising on websites.
      • Community Model: thrives through chat rooms, social networks, bulletin boards, open content, and public broadcasting.
      • Manufacturer Model: classified into purchase, lease, license, and brand-integrated content.

    Marketing Strategies

    • Two types of marketing strategies:
      • Product-centric: focuses on developing new products, expanding product portfolios, innovating products, advertising, and offering promotional discounts.
      • Customer-centric: focuses on fulfilling customer needs, segmenting markets, providing solutions, and conducting customer surveys.

    Market Segmentation

    • Four types of market segmentation:
      • Demographic Segmentation: based on age, gender, income, family size, family life cycle, occupation, education, religion, and social class.
      • Geographic Segmentation: based on international, national, regional, city, town, or neighborhood locations.
      • Psychographic Segmentation: based on beliefs, values, lifestyles, social status, activities, interests, and opinions.
      • Behavioral Segmentation: based on attitudes towards products, response to products, and behavior patterns.

    Guidelines for Market Segmentation on the Web

    • Four guidelines:
      • Identify market segments on the web using search visitors, referrer visitors, campaign visitors, and direct visitors.
      • Measure responsiveness of visitors to the website.
      • Measure the stability of a segment's behavior.
      • Measure the profitability of each segment.

    Search Engine Optimization (SEO) and Search Engine Marketing (SEM)

    • SEO: designing, writing, and coding a website to maximize chances of appearing at the top of search engine results for selected keywords and phrases.
    • SEM: placing an organization's website at the top of search results to attract potential customers.

    E-Publication and E-Banking

    • E-Publication: digitally produced materials like bulletin boards, newsgroups, mailing lists, CD-ROM-based media, and websites.
    • E-Banking: integrating technology into financial services, allowing customers to use banking services through the internet or mobile apps.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Learn about the definition and key features of e-commerce, including its virtual existence, availability, time-saving approach, and economical process.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser