Kenneth C. Laudon, C. G. (2011). E-Commerce 2011, Seventh Edition. Upper Saddle River: Prentice Hall, Pearson Education, Inc.
1. Understanding E-Commerce
E-Commerce is the use of the Internet and the Web to conduct business transactions and e-commerce digitally able to facilitate commercial transactions between the organization and between the organization and the individual. 2. The difference in E-Commerce and E-Business
E-Commerce describes the process of purchase, sale, transfer, exchange of services or products, services or information via computer networks including the Internet. While the E-Business E-Commerce with respect to the broader definition is not just the buying and selling of goods and services but also customer service, collaboration among business partners, e-learning provision and procurement of electronic transactions between an organization. 3. 7 seven unique features of E-Commerce Technology
a. Ubiquity: Internet technology is everywhere: at work, home and also through mobile phones. b. Global Reach: broad technology without boundaries around the world. c. Universal Standards: the Internet as a set of technology standards. d. Richness: video, audio, integrated text messaging.
e. Interactivity: the technology works through interaction with users. f. Information Density: information technology can reduce costs to improve Quality. g. Personalization / Customization: technology enables private message conveyed to individuals or groups
4. Type of E-Commerce
a. Busines to Busines (B2B)
B2B can be defined as a system of communication between businesses online business. The form of B2B transaction can be Inter-Organizational System (IOS), such as extranet transactions and electronic funds transfer.
b. The Business to Consumer (B2C)
B2C is the retail transactions with individual shoppers. In addition it can also mean B2C online store mechanism (electronic shopping mall) is the e-merchant transactions with e-customers.
c. Consumer to Consumer (C2C)
C2C is a transaction in which consumers sell directly to other consumers. Can be defined as when an individual who advertise goods or services, knowledge, and expertise on the web.
d. Peer to Peer (P2P)
Internet users share files and bias resource computer.
e. Mobile Commerce (M-Commerce)
Digital devices are used to conduct transactions on the Web, and linked by a personal digital assistant (PDA). M-Commerce is widely used in Japan and Europe. 5. E-Commerce Business Models
The business model is a set of planned activities (sometimes referred to as business processes) designed to generate profits in the market. There are 8 elements that growing businesses (Ghosh, 1998): a. Value proposition
In many cases, companies develop their value proposition is based on current market conditions or trends. The value proposition is the core of a company's business model. A value proposition defines how a company's product or service to meet customer needs (Kambil, Ginberg, and Bloch, 1998). b. Revenue Model
While there are many e-commerce revenue models that have been developed, most companies rely on one, or some combination, the following major revenue models: advertising model, subscription model, transaction cost model, sales model and the affiliate model. In Advertising revenue model, a website that offers its users content, services and / or products also provide a forum for advertisements and receives fees from advertisers. In the subscription revenue model, a website that offers content or service users change the subscription fees for access to some or all bids. In revenue transaction cost model, firms receive a fee for enabling or executing a transaction. For example, creating an auction marketplace eBay.com online and receive a small transaction fee from the seller when the seller successfully sell an item. In the sales revenue model, companies earn income by selling goods, information or services to customers. In...
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