Chapter 3

Chapter 3 - Chapter 3 E-commerce 1. Definition- the use of...

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Chapter 3 E-commerce 1. Definition- the use of the Internet and the Web to transact business. - about digitally enabled commercial transactions between and among organizations and individuals. - commercial transactions involve the exchange of value ( e.g. Money ) across organizational or individual boundaries in return for products and services. 2. The feature of e-commerce ubiquity available every where, at all times marketplace extended beyond traditional boundaries and removed from a temporal and geographic location from customer perspective, it reduces transaction costs (the cost of participating in a market) global reach more conveniently and cost effectively in commercial transactions to cross cultural and national boundaries market size equal to the world's on-line population universal standards shared by all nations around the world and enable any computer to linked with any other computer regardless of the technology platform each is using. from supplier's perspective, lower market entry costs (the cost merchants must pay simply to bring their goods to market) for the customer, it reduces the search costs (the effort required to find suitable products) richness the complexity and content of a message the Web makes it possible to deliver rich messages with text, audio, and video simultaneously to large numbers of people interactivity ( information about the consumer can be gathered in the market place at the moment of purchase) allow for two-way communication between merchant and consumer allow an on-line merchant to engage a consumer in ways similar to a face-to-face experience but on a massive, global scale information density ( a great deal of information about the consumer can stored and used by online merchants) increase the total amount and quality of information available to all market participants, consumers, and merchants alike
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reduce information collection, storage, processing, and communication costs while greatly increasing the currency, on-line merchant can discover much more about consumers than the past Ω engage in price discrimination : selling the same goods, or nearly the same goods, to different targeted groups at different prices Personalisation/customization personalisation : merchants can target their marketing messages to specific individuals by adjusting the message to a person's name, interests, and past purchases customization : changing the delivered product or service based on a user's preferences or prior behavior e.g. the Wall Street Journal Online allows you to select the type of news stories you want to see first and gives you the opportunity to be altered when certain events happen social technology: user content generation and social networking evolve much more social by allowing users to create and share with their personal friends content in the from of text, videos, music, or photos
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Chapter 3 - Chapter 3 E-commerce 1. Definition- the use of...

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