The Tourism Industry and Information Technology PDF

influences of technology in the tourism industry can be observed in the following aspects: The Tourism Industry and Information Trav...

influences of technology in the tourism industry can be observed in the following aspects: The Tourism Industry and Information Travel Distribution Technology Internet technology has a great impact on travel Tourism and Information Technology distribution, as it enables direct transactions The tourism industry comprises organizations between consumers and primary suppliers. This is involved in the production and distribution of known as disintermediation or the elimination of travel and tourism products. It can be viewed as intermediaries in the conduct of tourism an umbrella industry with a complex distribution transactions. Such disintermediation empowers chain containing a set of interrelated businesses, suppliers who were previously unable to obtain such as transportation companies, and maintain contacts with consumers and handle accommodation facilities, attractions, food and transactions without the help of intermediaries. beverage enterprises, intermediaries, and At the same time, travel distribution experienced providers of recreation and leisure facilities, as re-intermediation as new intermediaries (such as well as a multitude of government agencies, online travel agencies [OTAs]) emerged that according to Werthner and Klein (as cited in handle tourism transactions, although several Gretzel & Fesenmaier, 2009). large hotel providers have chosen not to Information technology (IT) is defined as the participate in this form of distribution. They only collective term given to the most recent allow booking from their own websites and offer development in the mode (electronics) and price guarantees and incentives to consumers who machines (computers and communication book directly with them. technology) used for acquisition, processing, Another addition in technology-based players in analysis, storage, retrieval, dissemination, and the distribution chain are metamediaries that application of information (Haque & Rahman, form strategic alliances with suppliers and provide 2012). In tourism, unlike other industries, it is not consumers with opportunities to simultaneously a physical product but information that moves search the databases of their partners (Gretzel & from suppliers to customers. This information Fesenmaier, 2009). They aim to charge for passing must be able to flow smoothly among consumers, along the consumer directly to the supplier site. intermediaries, and suppliers involved in serving These fight the traditional concept of using online customer needs. travel agencies as the major medium in referring As a result, according to Buhalis, IT has become an shoppers to a booking site. For hotels, this means almost universal distribution platform for the potential additional costs for a booking on top of tourism industry and has emerged as the the fees for each transaction completed through a “info-structure” that supports internal and third party. They present more content within the external processes in tourism organizations (as initial search, which potentially bypasses multiple cited in Gretzel & Fesenmaier, 2009). It reduces visits to OTAs or hotel websites. As a result, the the cost of each transaction by minimizing print, metamediaries can gain control over the entire coordination, communication, and distribution booking process by being the initial point of costs. It also allows short-notice changes, supports contact to consumers and, thus, can direct the one consumer to additional websites or channels to-one interaction with a customer, and enables (Nieberding, 2015). organizations to reach a broad audience. Most Dynamic packaging is another technology-based communications and transactions are now also development disrupting established relationships supported by Web-based systems. among tourism service providers. According to Given how IT is reshaping the structure of both Cardoso and Lange (as cited in Gretzel & commerce and society in general, Buhalis & Fesenmaier, 2009), dynamic packaging involves O’Connor pointed out that tourism companies the assembly of various travel products and have changed dramatically in the way they service components into one (1) package at the conduct their business; they are also under moment of request. This requires instant access to pressure to invest further in new technologies to information, interaction with the consumer, and maintain their competitive advantage (as cited in Gretzel & Fesenmaier, 2009). Some of the major  The Role of Technology in Shaping Tourism adaptability. This also changes the notion of Experiences collaboration in tourism into being driven by consumers rather than providers. Internet-based technologies have become Tourism Marketing important drivers of change in consumer behavior. In contrast to consumer goods, the consumption Information technology has also led to a change in of tourism experiences, in addition to the actual the marketing environment of the tourism trip, involves extensive pre-consumption and industry. Website marketing has become an post-consumption stages. These stages of the essential component of tourism marketing. tourism consumption process are normally Destination marketing organizations (DMOs) are information-intensive, and Internet technologies particularly affected by technological have a significant role in supporting consumers developments. Their product is destination related throughout this multistage process. This role can information, and such information is increasingly be summarized in each stage of the tourism provided by websites (such as those of travel consumption process (Gretzel & Fesenmaier, agencies, portals, consumer communities, and 2009): even suppliers). Thus, DMOs have to adapt their A. Pre-consumption – Internet technologies offerings and services to the new realities of are used to obtain information necessary tourism marketing constantly. for planning travels, formulating correct Emerging technologies also provide opportunities expectations, and evaluating and selecting for collaboration within a destination and among alternatives, as well as to communicate destinations in a region. Most notable is the Web with providers of tourism products and 2.0 technologies, which are based on services to prepare or execute user-generated content and social networking transactions. The challenge in tourism lies applications that provide tourism marketers with in providing consumers with an increasing challenges. Consumer reviews and opportunity for a product trial before the blogs can easily damage costly branding strategies actual purchase. This is a challenge employed by tourism marketers. because tourism products are These contents are perceived as more credible experience-oriented, intangible goods than marketer-based information and are that are normally consumed at a place extremely search engine friendly, making it reach away from the point of purchase. Given greater rates of exposure and have more impact this limited opportunity for pre-purchase on consumers. trial, virtual tours, with their ability to Some tourism marketers have successfully represent tourism products and services implemented Web 2.0 marketing. For example, in more realistic and dynamic ways than JetBlue Airways, a New York’s hometown airline other promotional materials, play a crucial and a leading carrier in Boston, asks consumers to role in offering rich travel information. submit their stories online or visit their touring The new generation of 3D applications JetBlue Story Booth to make a recording. Another offers virtual worlds that have a greater example is Sheraton Hotels and Resorts (part of potential of immersing the user and Marriott International, Inc. with over 435 hotels creating telepresence (the feeling of being and 88 resorts in more than 70 countries transported to and present in the virtual worldwide) presenting consumer stories on its environment). website (sheraton.marriott.com). Online customer support technology, which allows consumers to contact Very often, travelers will be looking for other suppliers or distributors of tourism customers’ experiences from websites and other products if they need additional media and will be generating their personal information or other forms of assistance, evaluations of a product or service. Tourism is also a development because of IT. marketers must realize that word of mouth has Geographical and cultural distances evolved and that new technologies should be between travel and tourism suppliers and utilized to capture and promote services better. consumers make communication through  traditional means difficult. The Internet, Another development is the provision of on the other real-time location-based services. Empowered by geographical information systems (GIS) and global positioning hand, provides consumers with fast, easy, system technology (GPS), in combination and cost-effective ways of contacting the with information available on the Internet, providers of travel and tourism-related these advanced mobile applications goods and services. Technologies of identify the traveler′s location to generate support include frequently asked personalized assistance in the form of questions (FAQs) on websites, online location-specific and time request forms, e-mail, real-time chat sensitive information. Many options, and instant messaging advancements in mobile technologies are applications. encouraged by needs arising from B. Consumption – Internet technologies are information and communication problems used during the actual trip mainly for encountered during travel. travelers to stay connected and obtain C. Post-consumption – Internet technologies relevant en-route information at a specific are used in ways that allow sharing, place and moment in time for documenting, storing, and reliving decision-making and on-site transactions. tourism experiences, as well as The spread of Internet cafes at tourist establishing close relationships with destinations, the growing number of places, attractions, or product and service accommodation establishments offering providers. Virtual travel communities and high-speed Internet connections, and the social media are examples of Internet efforts of airlines to provide in-flight applications that provide consumers with Internet access to travelers indicate that a support during the post-consumption substantial need for this kind of phase. These are facilitated by information and communication link computer-mediated communication exists. En route Internet access means allowing members to conduct various anywhere and-anytime availability of types of travel-related tasks, such as tourism-related information for obtaining travel information, maintaining consumers. connections, finding travel companions, Mobile technologies play an important or simply having fun by telling each other role in this sense due to their ability to interesting travel experiences and stories. provide travelers with wireless and Consumers can use these technologies to instantaneous Internet access. Cellular post photographs and testimonials of their phones supported through a wireless trips, mimicking real-world storytelling application protocol (WAP), global system activities that normally happen at this for mobile communication (GSM), and stage. short message service (SMS) allow travelers to take full advantage of the Internet while on the road. Tourism Marketing Communications Information and Communication Technologies in Tourism Tourism is an information-intensive industry. Information and Communication Technologies: Organizations rely on communication with tourists Challenges and Trends through various channels to market their products and build customer relationships. Social The advent of information and communication media marketing – using a variety of social media technology (ICT) has a vital impact on tourism. channels to promote a company and its products The effects of this revolution continue to change and services – has become indispensable to an the nature of tourism, imposing both trends and organization’s marketing plan. Social media have challenges, on a regular basis. Some of these grown to be one of the most effective means for influences are discussed below. tourists to seek information and share travel The Challenge: Tourist experience has gained experiences. Given the prevalence of social media much attention as the main focus for creating the use among tourists, social media became value of tourism products. The reason is based on indispensable platforms for tourism marketers. the concept that the tourism product is intangible, The Challenge: Engagement with consumers on perishable, and seasonal. Therefore, it is the social media is driven by word of mouth among experience that tourists gain during consumption. consumers, in an electronically facilitated As such, designing and staging memorable extension of the traditional word of mouth. experiences are of high importance. Companies Additionally, consumers not only have greater must deliver experiences that would unveil unique access to information and greater command over emotions and memories to consumers. Tourist information consumption but can themselves experiences are socially constructed in the actively create marketing content. With this, tourists’ interactions and experiences, which are marketers cannot dictate communication on social associated with different social and environmental media; instead, they have to engage consumers’ components of the visited destination. This is interest and participation. Successful marketing in directing competitive tension on the tourism this new conversation space calls for innovative industry and thereby advocating the strategies. An engaging conversation on social customization of experiences. Consumers no media requires marketers to understand who is longer purchase services but rather seek talking to whom—not only marketers to experiences gained through the consumption of consumers, but consumers to each other—and products and services. Tourists are co-creating what they are talking about. Though various their own experiences, and the inability to studies have discussed the importance and recognize this shift can showcase a great impact differences of social media marketing, very few on tourism service providers (Baggio et al., 2014). marketers have a clear idea of how to engage consumers and influence conversations on social media (Baggio et al., 2014). Virtual Platform Co-Creation Tourist Experiences The Internet and the World Wide Web have provided a whole new virtual platform to conduct Tourist experience has been playing a vital role in business called e-commerce (involves the use of the tourism product, thereby requiring the Internet, the Web, and mobile apps and practitioners to focus on designing and staging browsers running on mobile devices to transact memorable experiences. Neuhofer, Buhalis, and business). This created both opportunities and Ladkin (2013) explained that co creation tourist threats for businesses in the tourism industry. experiences are “experiences that are not only passively staged but rather actively shaped and Easy access to the Internet has changed the way created by the tourist consumer in conjunction travel is planned and bought. The Internet-savvy with the company.” The co-creation experience is traveler can research and shop in just about any the next practice in value creation. It is a process place with wireless connection (Internet or Wi-Fi) that changes the game of innovation from and at any time of the day or night. designing for people to designing with people. The Challenge: Understanding the behavior of The co-creation process begins with the travelers online and the important elements of inspiration or the heart’s desire of functional websites is necessary to ensure success individuals—what they would like to experience when adopting e-commerce. An electronic trading the most. The co-creation process connects system is a type of information system. Many closely with active participation, the inner studies have approached the development of alignment of an individual with a positive motive applications for e-commerce and identified to co-create what they want. However, the several features to be taken into account. These experience environment or destination should be key factors consist of the quality of information, of arousing interest so that consumers can take on quality of service, the playful character, the quality active participation. As a result, they become of the system design, and system usability. A directly involved in the co-creation of their well-designed website would lead to better individual experiences. memory by the user and a positive attitude to the website and its products. Additional factors that include all transactions mediated by digital tourism companies have to focus on include technology, i.e., transactions that occur over the customer relationship management, after sales Internet, the Web, and/or via mobile devices. service, and customer information updating. To Commercial transactions involve the exchange of entice and keep the interest of online customers, value (such as money) across organizations or tourism companies have to level up their individuals in return for products and services. strategies and meet the demands of online Exchange of value is important because without customers (Baggio et al., 2014). this, no commerce occurs (Laudon & Traver, Augmented Reality Gaming 2017). Technological Building Blocks of E-Commerce Location-based mobile augmented reality (AR) games are an innovative way to attract tourists The technological building blocks behind into challenges and interactive gameplay while e-commerce are the following (Laudon & Traver, they explore an urban destination or cultural 2017): Internet – It is a worldwide network of heritage site. Location-based AR games can be computer networks built on common standards. It defined as making use of the player’s physical links businesses, educational institutions, location via Global Positioning System (GPS) government agencies, and individuals together, sensors, a compass, and the inbuilt mobile device and provides users with services such as e-mail, camera to project virtual 2D and 3D objects in real document transfer, shopping, research, instant time on the player’s mobile screen in order to messaging, music, videos, and news. World facilitate interactive gameplay (Azuma et al., 2001; Wide Web – It is an information system that runs Jacob, da Silva, Coelho, & Rodrigues, 2012). AR on the Internet infrastructure. It was the original games aim to create a deeper level of engagement “killer app” that made the Internet commercially with the destination by adding a game experience interesting and extraordinarily popular. It provides that educates in a fun way using location-based access to billions of Web pages indexed by storytelling, personalized features, and social Google and other search engines. Before the Web, interactions. The player location and the context the Internet was used mainly for text of playing are important dimensions in location communications, file transfers, and remote based AR gameplay. computing. The Web introduced more powerful and commercially interesting capabilities with The Challenge: The generation of digital natives direct relevance to commerce. It added color, demand new forms of media applications for their voice, and video to the Internet, creating a journeys to create engaging experiences. communications infrastructure and information Smartphones and tablets provide a link between storage system. real and virtual environments. In order to address Mobile platform – It provides the ability to young traveler’s needs, the tourism industry access the Internet from a variety of mobile needs to implement new mobile technologies, devices such as smartphones, tablets, and which combine both elements of entertainment other ultra-lightweight laptop computers via of video games and learning about cultural facts wireless networks or cell phone service. An to engage visitors with a holiday destination app (short for application) is a software (Baggio et al., 2014). application, which is typically used when referring to mobile applications, although it is sometimes used to refer to desktop computer E-Commerce Concepts and Issues applications as well. A mobile browser is a E-Commerce Essentials version of Web browser software accessed via E-commerce involves the use of the Internet, the a mobile device. World Wide Web (or simply Web), and mobile Types of E-Commerce apps and browsers running on mobile devices to There are different types of e-commerce and transact business. More formally, e-commerce can many ways to characterize them. According to be defined as “digitally enabled commercial Laudon and Traver (2017), the following are the transactions between and among organizations types of e-commerce based on the nature of and individuals.” Digitally enabled transactions market relationship—who is selling to whom.  Business-to-Consumer (B2C) E-Commerce – It is e-commerce known as conversational the most common type of e-commerce that commerce controls the mobile connection most consumers are likely to encounter. It is even further. It involves the use of mobile where online businesses attempt to reach messaging apps such as Facebook Messenger, individual consumers. B2C e-commerce WhatsApp, Snapchat, Slack, and others as a includes purchases of retail goods, travel and vehicle for companies to engage with other types of service, and online content. consumers. Business-to-Business (B2B) E-Commerce – It is E-Commerce Business Models the largest form of e-commerce in which A business model is a set of planned activities or businesses focus on selling to other business processes designed to result in a profit in businesses. a marketplace. An e-commerce business model Consumer-to-Consumer (C2C) E-Commerce – It aims to use and control the unique qualities of the provides a way for consumers to sell to each Internet, the Web, and the mobile platform. other with the help of an online market Major Business-to-Consumer (B2C) Business maker (also called a platform provider) such Models as eBay and Etsy or an on demand service company such as Airbnb. The major business models of business-to-consumer e-commerce, in which In this type of e-commerce, the consumer online businesses seek to reach individual prepares the product for market, places the consumers, are the following (Laudon & Traver, product for auction or sale, and relies on the 2017): market maker to provide catalog, search engine, and transaction-clearing capabilities E-tailers – Online retail stores, often called so that products can be easily displayed, e-tailers, are similar to the traditional discovered, and paid for. storefront, except the customers only have to connect to the Internet or use their Mobile E-Commerce (M-Commerce) – It refers smartphone to place an order. Some e-tailers to the use of mobile devices to enable online are subsidiaries or divisions of existing transactions, which involves using cellular physical stores and carry the same products. and wireless networks to connect Others, however, operate only in the virtual smartphones and tablet computers to the world without any ties to physical locations. Internet. Once connected, mobile consumers Examples of e-tailers are wine.com (online can purchase products and services, make liquor store), airasia.com (AirAsia airline), and travel reservations, access online content, hyatt.com (Hyatt Hotels Corporation). and much more. Community Providers – They create an online Social E-Commerce – It is enabled by social environment where people with similar networks and online social relationships. The interests can transact (buy and sell goods); growth of social e-commerce is driven by share interests, photos, and videos; several factors, including the increasing communicate with like-minded people; popularity of social sign-on (signing onto receive interest-related information; and even websites using Facebook or other social play out fantasies by adapting personalities network IDs) and social search called avatars. Facebook, LinkedIn, Twitter, (recommendations from online trusted and Pinterest, and hundreds of other social friends) and the increasing prevalence of networks all offer community integrated social commerce tools such as buy building tools and services. buttons, shopping tabs, and virtual shops on Content Providers – They distribute information Facebook, Instagram, Pinterest, and other content, such as digital video, music, photos, social networking sites. text, and artwork. These can make money via Social e-commerce is often intertwined with different revenue models, including m-commerce, particularly as more and more advertising, subscription fees, and sales of social network users access those networks digital goods. For example, in the case of via mobile devices. A variation of social music streaming services, such as Spotify and Apple Music, users can stream millions of  music by paying a monthly subscription fee. Models Portals – Portals such as Google, Yahoo, MSN, The following are the major business models of and AOL offer users powerful search tools, as business-to-business e-commerce in which well as an integrated package of content and businesses sell to other businesses (Laudon & services, such as news, e-mail, instant Traver, 2017): messaging, calendars, shopping, music E-distributors – These are companies that downloads, video streaming, and more, all in supply products and services directly to one place. These generate revenue by individual businesses. These are owned by charging advertisers for ad placement and one (1) company seeking to serve many collecting referral fees for steering customers customers. With this model, the more to other sites. products and services a company makes Transaction Brokers – These are companies that available, the more attractive it is to potential process transactions normally handled in customers. An example is Grainger person, by phone, or by mail on behalf of (grainger.com), which is a large distributor of consumers. The largest industries using this maintenance, repair, and operations (MRO) model are financial services, travel services, supplies. The platforms of e-distributor and job placement services. They make include websites and mobile apps that make money each time a transaction occurs. Travel ordering fast and easy. sites generate commissions from travel E-procurement – E-procurement firms create bookings, and job sites generate listing fees and sell access to digital markets. For from employers upfront rather than charging example, Ariba (ariba.com) has created a a fee when a position is filled. Examples of software that helps large firms to organize transaction brokers include Expedia, their procurement process by creating Travelocity, Orbitz, and Monster. mini-digital markets for a single firm. The Market Creators – They build a digital company creates custom-integrated online environment in which buyers and sellers can catalogs (where supplier firms can list their meet, display and search for products and offerings) for purchasing firms. On the sell services, and establish prices. They make side, Ariba helps vendors sell to large money by either charging a percentage of purchasers by providing software to handle every transaction made or charging catalog creation, shipping, insurance, and merchants for access to the market. The main finance. Both the buy and sell side software is examples are Priceline, an online travel referred to as value chain management agency that allows consumers to set the price software. they are willing to pay for various Exchanges – These are independent digital marketplaces where hundreds of suppliers travel accommodations and other products, meet a smaller number of large commercial and eBay, an online auction site utilized by purchasers. They generate revenue by both businesses and consumers. charging a commission or fee based on the Service Providers – These entities offer services size of the transactions conducted among online and use a variety of revenue models. trading parties. For B2B buyers, exchanges Some charge a fee or monthly subscriptions, make it possible to gather information, check while others generate revenue from other out suppliers, collect prices, and be up to date sources such as through advertising. Some on the latest happenings all in one place. examples of service providers include Sellers, on the other hand, benefit from VisaNow (visausanow.com, provider of online expanded access to buyers. TravelB2BHub immigration services – United States visas), (travelb2bhub.com) is an example of an GCash (an app that allows a user to pay bills, exchange hub that helps travel companies, purchase goods and services, and send or hoteliers, and event planners to buy or sell receive money), and RocketLawyer (an online tourism services to each other and to end legal technology company). consumers in India. Major Business-to-Business (B2B) Business Industry Consortia – These are industry-owned  vertical marketplaces that serve specific quality, price, product support, and reliability. industries such as automobile, aerospace, It also functions as an anchor for a firm’s chemical, floral, or logging. Vertical other web marketing activities. It acts as a marketplaces supply a smaller number of central point where all the branding companies with products and services of messages that come from its digital presence, specific interest to their industry. In contrast, such as Facebook, Twitter, mobile apps, or horizontal marketplaces sell specific products e-mail, come together at a single location. A and services to a wide range of companies. website with its online catalogs and They supply companies in different industries associated shopping carts is an important with a particular type of product and service, element of the online customer experience. such as marketing-related, financial, or Traditional Online Marketing – These are the computing services. An example of this is basic marketing and advertising tools for Avendra (avendra.com), which is the leading attracting e commerce consumers: hospitality procurement services provider in o Search engine marketing – It refers to the North America and the Caribbean formed by use of search engines to build and sustain Marriott International, Hyatt Hotels, brands. Search engines are often thought ClubCorp. USA, Inc., InterContinental Hotel of as mostly direct sales channels focused Group, and Fairmont Hotels and Resorts. on making sales in response to Private Industrial Networks – These are advertisements. These are also used to sometimes referred to as private trading strengthen brand awareness and drive exchanges. These are digital networks traffic to websites. The top three (3) designed to coordinate the flow of search engine providers (Google, communications among firms engaged in Microsoft/Bing, and Yahoo) supply more business together. The network is owned by a than 95% of all online searches. single large purchasing firm. Participation is by The common types of search engine invitation to trusted long-term suppliers of advertising are organic search (the search direct inputs only. These networks typically results of a search engine that cannot be evolve out of a firm’s own enterprise influenced by paid advertising; results are resource planning (ERP) system and are an ranked according to their relevance to effort to include key suppliers in the firm’s the search term), paid inclusion (a own business decision making. For example, program in which, for a fee, a search Walmart (walmart.com) operates one of the engine guarantees a website’s inclusion largest private industrial networks in the in its list of search results), and world for its suppliers that use Walmart’s pay-per-click (PPC) search ads(the network daily to monitor the sales of their primary type of search engine advertising goods, the status of shipments, and the actual in which advertisers pay each time a user inventory level of their goods. clicks on one of their online ads). o Display ad marketing – A display ad is Digital Commerce Marketing Strategies and Tools made up of texts, images, or videos that encourages users to click-through to a The objective of online marketing is to build landing page and take action. The customer relationships so that a firm can achieve common kinds of display ads are banner above-average returns both by offering superior ads (these display a promotional message products and services and by communicating the in a rectangular box on a computer or brand’s features to the consumer. mobile device screen and brings a Major Types of Marketing potential customer directly to the Website – A business’ website is a major tool for advertiser’s site), rich media ads (these establishing an initial relationship with the employ features such as video, customer. Its first function is to establish a animation, sound, and other elements brand’s identity by identifying for the that encourage viewers to interact and consumer the differentiating features of a engage with the content), video business’ product or service in terms of ads(television-like advertisements that  appear as in-page video commercials (QR) codes, and couponing. Apps on mobile before, during, or after a variety of devices constitute a marketing platform that content), and sponsorship (a paid effort did not exist before. Apps are a non-browser to tie an advertiser’s name to a particular pathway for users to experience the Web and information, event, or venue in a way that perform several tasks from reading reinforces its brand in a positive yet not newspapers to shopping, searching, and obviously commercial manner). buying. These provide users much faster o E-mail marketing – Direct e-mail marketing access to content than multi-purpose (marketing messages sent directly to browsers. interested users) was one of the first and Local Marketing – The growth of mobile devices most effective forms of online marketing has accelerated the growth of local search communications. Marketing messages and purchasing. Local advertisements on are sent to an opt-in audience of Internet social networks and daily sites are also users who, at one time, have expressed contributing to local marketing growth. The an interest in receiving messages from most commonly used venues include the advertiser. Facebook, Google, LinkedIn, Instagram, o Affiliate marketing – It is a form of Yahoo, Bing, and Twitter, as well as more marketing where a firm pays a specific location-based offerings like Google commission, typically anywhere between My Business, Yahoo! 4% and 20%, to other websites (including Small Business, Citysearch, ClickTheCity, and blogs) for sending customers to their Yelp. The “daily deal” coupon sites, like website. It generally involves Groupon (American e-commerce marketplace pay-for-performance: the affiliate or connecting subscribers with local merchants) affiliate network only gets paid if users and Metrodeal Philippines (a market leader click on a link or purchase a product. when it comes to discount vouchers for o Viral marketing – It is a form of social different products and services in the country) marketing that involves getting customers are also a significant part of this marketing. to pass along a company’s marketing Without an audience, marketing is not possible. message to friends, family, and With the rapid growth of the Internet, media colleagues. It is the online version of consumption patterns have significantly changed word-of mouth advertising, which as consumers become more likely to engage with spreads even faster and further than in online media. Increasingly, marketers are also person. using multiple online channels to reach Social Marketing and Advertising – It involves customers. the use of online social networks and E-Commerce Issues communities to build brands and drive sales revenues. There are several kinds of social Ethics is at the center of social and political networks, from Facebook, Twitter, discussions about the Internet. Ethics is the study of principles that individuals and organizations can use to determine right and wrong courses of Pinterest, and Instagram, to social apps, social action. It is assumed in ethics that individuals are games, blogs, and forums. Social networks free moral agents who are in a position to make offer advertisers all the main advertising choices. Extending ethics from individuals to formats, including banner ads, short pre-roll business firms and even entire societies can be and post-roll ads (advertisements that stream difficult but not impossible. after a desktop or mobile video finishes) E-commerce and the Internet have raised so many associated with videos, and sponsorship ethical, social, and political issues that can be content. categorized into four (4) major dimensions: Mobile Marketing and Advertising – Mobile privacy and information rights, intellectual marketing includes the use of display banner property rights, governance, and public safety ads, rich media, video, games, e-mail, text and welfare. messaging, in-store messaging, quick response  Privacy Issues − Privacy is possibly the most difficult to control access, use, distribution, complex ethical issue raised by e-commerce, and copying. as well as the changing technology of human The Internet technically permits millions of communications brought about by the people to make perfect digital copies of Internet and mobile devices. The claim to various works, from music to plays, poems, privacy rests on the moral right of individuals and journal articles, and then distribute them to be left alone, free from surveillance or nearly cost-free to hundreds of millions of interference from other individuals or online users. It has demonstrated the organizations, including the government. potential to disrupt the traditional E-commerce sites routinely collect a variety of conceptions and implementations of information from or about consumers’ visits intellectual property law. The major ethical and purchases. Some of these data constitute issue relating to e-commerce in this regard is personally identifiable information (PII), or how individuals and business professionals any data that can be used to identify, locate, should treat property that belongs to others. or contact an individual. Advertising networks Governance − Governance, as it relates to and search engines also track the behavior of e-commerce, has something to do with social consumers across thousands of popular sites control: who will control the Internet, what via cookies(small files that are stored on a elements will be controlled, and how the user’s computer to hold a modest amount of controls will be implemented. Control issues data specific to a particular client and revolve around the Internet that could not be website), web beacon (often transparent controlled, given its decentralized design and graphic image, usually no larger than 1 pixel x its ability to cross borders that made 1 pixel, that is placed on a website or in an e monitoring and controlling message content mail to monitor the behavior of the user impossible. This implies that the content and visiting the Web site or sending the e-mail), behavior of e-commerce sites cannot be spyware (any software that covertly gathers “controlled” in the same way. Another issue is user information through the user’s Internet taxation. Governments collect sales taxes connection without their knowledge, usually based on the type and value of goods sold. for advertising), and other techniques. These The money is used for general government activities are just a few of the issues linked to purposes and building infrastructures. privacy over the conduct of e-commerce. However, the development of the “remote Intellectual Property Rights − Next to privacy, sales,” such as mail order/telephone order the most controversial issue related to (MOTO) or online purchasing, broke the e-commerce is the fate of intellectual relationship between physical presence and property rights. Intellectual property commerce, complicating the plans of the encompasses all the tangible and intangible government to tax all retail commerce. products of the human mind. Intellectual Public Safety and Welfare − Critical issues in property protection in the Philippines is e-commerce center around the protection of contained in Republic Act No. 8293, children, strong sentiments against otherwise known as the Intellectual Property pornography in any public media, efforts to (IP) Code of the Philippines. The term control gambling, and the protection of “intellectual property rights” in the Code public health through restricting the sales of consists of copyright and related rights, drugs and cigarettes online. trademarks and service marks, geographic indications, industrial designs, patents, layout designs of integrated circuits, and protection of undisclosed information. Generally, the creator of the intellectual property owns it and has the exclusive right to use it in any lawful way they see fit. The Internet, however, changes things. Once intellectual works become digital, it becomes