Is an Internet business model that provides an initial point of entry to the Web along with specialized content and other services?

List and describe the eight unique features of e-commerce.

• Ubiquitous
• Has global reach
• Has universal standards
• Information richness
• It's interactive
• Increases information density (total amount and quality of info available to all participants)
• Permits personalization and customization
• Uses social technology

Define a digital market and their distinguishing features.

Digital markets are said to be more “transparent” than traditional markets. Table 10-3 describes distinguishing features of digital markets. The Internet has created a digital marketplace where millions of people are able to exchange massive amounts of information directly, instantly, and for free. Information asymmetry is reduced. Digital markets are very flexible and efficient, with reduced search and transaction costs, lower menu prices, and the ability to change prices dynamically based on market conditions. Digital markets provide many opportunities to sell directly to the consumer, bypassing intermediaries, such as distributors or retail outlets. Other features include delayed gratification, price discrimination, market segmentation, switching costs, and network effects.

Define digital goods and describe their distinguishing features.

Digital goods are goods that can be delivered over a digital network and include music, video, software, newspapers, magazines, and books. Once a digital product has been produced, the cost of delivering that product digitally is extremely low. New business models based on delivering digital goods are challenging bookstores, publishers, music labels, and film studios that depend on delivery of traditional goods.

Name and describe the three types of e-commerce.

The three types of e-commerce are B2C, B2B, and C2C e-commerce. B2C e-commerce involves selling products and services to individual shoppers, like Amazon. B2B e-commerce involves businesses selling goods and services to other businesses, like Elemica. C2C is consumers selling to other consumers, like eBay.

Name and describe the 7 principal e-commerce business models.

- E-tailer:

• Transaction broker

• Market creator: Provides a digital environment where buyers and sellers meet, search for and display products, and establishes prices for those products

• Content provider: Creates revenue by providing digital content, such as digital news, music, photos, or video over the web.

• Community provider: Provides an online meeting place where people with similar interests can communicate and find useful information.

• Portal: Provides an initial point of entry to the web along with specialized content and other services.

• Service provider: Provides Web 2.0 applications such as photo sharing, video sharing, and user-generated content as services. Provides other services such as online data storage and backup.

Name and describe the 6 e-commerce revenue models.

• Advertising revenue: Generates revenue by attracting a large audience of visitors who can then be exposed to advertisements. It’s the most widely used revenue model in e-commerce.

• Sales revenue: Companies derive revenue by selling goods, information, or services to customers.

• Subscription revenue: A website offering content or services charges a subscription fee for access to some or all of its offerings on an ongoing basis.

• Free/freemium revenue: Basic services or content are free while advanced or special features cost extra.

• Transaction fee revenue: A company receives a fee for enabling or executing a transaction.

• Affiliate revenue: Sites that steer customers to an affiliate business receive a referral fee or percentage of the revenue from any resulting sales

Explain how social networking and the wisdom of crowds help companies improve their marketing.

Creating sites where thousands, even millions, of people can interact offers business firms new ways to market and advertise products and services, and to discover who likes or dislikes their products. In a phenomenon called “the wisdom of crowds” some argue that large numbers of people can make better decisions about a wide range of topics or products than a single person or even a small committee of experts. In marketing, the wisdom of crowds concept suggests that firms should consult with thousands of their customers first as a way of establishing a relationship with them, and second, to better understand how their products and services are used and appreciated. Actively soliciting customer comments builds trust and sends the message to customers that the company cares what they are thinking and that customer advice is valuable

Define behavioral targeting

Behavioral targeting refers to tracking the click-streams of individuals for the purpose of understanding their interests and intentions, and exposing them to advertisements that are uniquely suited to their behavior. Ultimately, this more precise understanding of the customer leads to more efficient marketing and larger sales and revenues. Behavioral targeting of millions of web users also leads to the invasion of personal privacy without user consent.

Define the social graph and explain how it is used in e-commerce marketing.

A social graph is a depiction of all the people you know and all the people they know. A digital social graph is a mapping of all significant online social relationships. It’s synonymous with the idea of a “social network” used to describe offline relationships. The small world theory believes any person is only six links away from any other person on earth.

The products and services you buy will influence the decisions of your friends, and their decisions will in turn influence you. It’s the “word of mouth is the best advertising” theory in digital format. Marketers’ target audience is not the one isolated individual but millions of connected people all talking to each other and swapping information. Marketers will spend over $3 billion on social network marketing in 2012. That’s twice the amount of money spent in 2010 and about nine percent of all online marketing.

Explain how Internet technology supports business-to-business electronic commerce

Business-to-business transactions can occur via a company website, net marketplace, or private exchange. Web sites make it easy to sell and buy direct and indirect goods over the Internet, compare suppliers, products, and prices, and even find out how others feel about the product. Further, supply chain linkages through intranets and extranets can support JIT, reduce cycle times, and other practices of continuous improvement. Because of the ease and efficiencies brought by the Internet, business-to-business participants can save a significant amount of money and time.

Define and describe Net marketplaces and explain how they differ from private industrial networks (private exchanges).

A net marketplace is a single digital marketplace based on Internet technology linking many buyers to many sellers. The net marketplace is an important business model for B2B e-commerce because some net marketplaces serve vertical markets for specific industries and other net marketplaces serve horizontal markets, selling goods that are available in many different industries. Also, net marketplaces can sell either direct goods or indirect goods. Net marketplaces are more transaction-oriented and less relationship-oriented than private industrial networks.

Explain why m-commerce is the fastest-growing type of B2C e-commerce.

The majority of Internet users in the United States will rely on mobile devices as their primary device for accessing the Internet within five years. The mobile audience is expanding, and so too is mobile commerce.

Describe the different types of location-based services and applications.

Location-based services include geosocial (tells you where your friends are), geoadvertising (tells you nearby locations relating to searches, such as restaurants), and geoinformation services (tells you about objects in your immediate vicinity, like a house you are looking at).

List and describe the four types of e-commerce presence.

• Web sites: traditional, mobile, and/or tablet platforms with search, display, apps, affiliates, sponsorships as possible activities

• E-mail: internal lists and/or purchased lists as a platform with newsletters, updates, and sales as possible activities

• Social media: Facebook, Twitter, and/or blogs as a platform with conversation, engagement, sharing, and/or advice as possible activities

• Offline media: print and or TV and radio as the platform with education, exposure, and/or branding as possible activities

Which of the following types of e

Which of the following is the type of electronic commerce that involves consumers selling directly to consumers?

What is another name for e hubs?

What is done in the planning phase for the development of an e