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E-Commerce

E-Commerce. Chapter 11 – Social Media Information Systems Sections Q1-Q4 Skip Section Q5. Objectives. Define e-commerce and important types of e-commerce. Know the benefits of e-commerce and how e-commerce is different from traditional business transactions.

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E-Commerce

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  1. E-Commerce Chapter 11 – Social Media Information Systems Sections Q1-Q4 Skip Section Q5

  2. Objectives • Define e-commerce and important types of e-commerce. • Know the benefits of e-commerce and how e-commerce is different from traditional business transactions. • Understand the implications of the Long Tail Theory.

  3. What is E-Commerce?

  4. What Types of E-Commerce Exist? • Merchant • Business-to-Consumer (B2C) • Business-to-Business (B2B) • Business-to-Government (B2G) • Nonmerchant • Consumer-to-Consumer (C2C)

  5. What Types of B2C Exist? • Interactive Marketing • Storefront • Web Store • Portal

  6. B2C Interactive Marketing Example

  7. B2C Interactive Marketing Example

  8. B2C Storefront Example

  9. B2C Web Store Example

  10. B2C Portal Example

  11. How is E-Commerce Similar to Traditional Commerce?

  12. What is Up-Selling?

  13. What is Cross-Selling?

  14. What are the Benefits of E-Commerce? • global reach • 24/7 service • disintermediation • mass customization • value-added services

  15. Mass Customization Example

  16. Value-Added Service Example

  17. Value Added Service Example

  18. What’s more complicated about an Ecommerce Transaction? • Knowing status of transaction • Finding the product • Buying a product examined only virtually • Trusting a seller known only virtually • Contact between buyer and seller between transactions

  19. How Can an E-tailer Lower Customer Search Costs?

  20. How Can an E-tailer Increase Customer Confidence in a Product?

  21. How Can an E-tailer Increase Customer Confidence in a Product?

  22. How Can an E-tailer Increase Customer Confidence in a Product? • Simulate in-store experience • Second Life • Fashionista http://www.youtube.com/watch?v=ZnBcqV9POkY&feature=player_embedded#

  23. Second Life American Apparel Adidas

  24. How Can a E-seller Build Trust?

  25. How Can an E-tailer Maintain Customer Contact Between Sales? • Virtual Communities • Blogs • Social Networking Sites (UGC) • Facebook • Twitter • Flickr • YouTube

  26. Virtual Community Example

  27. Blog Example

  28. Social Networking Example

  29. What is Web 2.0?

  30. How Do Businesses Use Web 2.0 Effectively? • Update regularly • Let customers contribute • Avoid direct advertising

  31. Electronic Data Interchange (EDI) • Standards for common business documents

  32. Paper Purchase Order Example

  33. String of Data Example 000327Chicago Office Supply 1411 E. Michigan Chicago IL606061978 Michigan Ave. Chicago IL6061212132009 Your Truck0054126Laser printer toner cartridge46.500085433Rewritable CDs – box of 1012.500104733Copier paper – box19.50

  34. EDI Example <PO>000327<VName>Chicago Office Supply <Vaddress>1411 E. Michigan <Vcity>Chicago <Vstate>IL<Vzip>60606<ShipAddress>1978 Michigan Ave. <ShipCity>Chicago <ShipState>IL<ShipZip>60612<PODate>12132009<ShipDate> <Via>Your Truck<Qty>005<ProductNo>4126<Desc>Laser printer toner cartridge<Price>46.50<Qty>0085<ProductNo>5433<Desc>Rewritable CDs – box of 10<Price>12.50<Qty>010<ProductNo>4733<Desc>Copier paper – box<Price>19.50

  35. Formatted EDI Example <PO>000327 <VName>Chicago Office Supply <Vaddress>1411 E. Michigan <Vcity>Chicago <Vstate>IL<Vzip>60606 <ShipAddress>1978 Michigan Ave. <ShipCity>Chicago <ShipState>IL<ShipZip>60612 <PODate>12132009 <ShipDate> <Via>Your Truck <Qty>005<ProductNo>4126 <Desc>Laser printer toner cartridge <Price>46.50 <Qty>0085<ProductNo>5433 <Desc>Rewritable CDs – box of 10 <Price>12.50 <Qty>010<ProductNo>4733 <Desc>Copier paper – box <Price>19.50

  36. EDI Process

  37. What is The Long Tail Theory? • Chris Anderson, Wired’s Editor in Chief

  38. Long Tail Examples • Amazon - "We sold more books today that didn't sell at all yesterday, than we sold today of all the books that did sell yesterday.“ • Netflix – “In aggregate, unpopular movies are rented more than popular movies.” • iTunes – “A miss is just another sale with the same margins as a hit.”

  39. How Does the Internet Affect the Long Tail? • Internet allows businesses to tap into the Long Tail market. • Lowering search costs could create a longer tail by increasing sales of hard to find products • The Internet allows both lower prices and increased product variety.

  40. What are the Implications of the Long Tail? • Larger market overall • Improved customer service • Greater cultural diversity

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