Thats a little less than 10 of what has been bought

That’s a little less than 10% of what has been bought in traditional stores which
have existed for millennia
o E-Commerce
▪ Online buying and selling of goods and services
▪ Falls into two categories
find more resources at oneclass.com
find more resources at oneclass.com

• Merchant Companies
o Take title to the goods/services they sell
• Non merchant companies
o Arrange for the purchase and sale of goods without
owning or taking title of goods
o E-Business
▪ Carrying out any type of business activity online
▪ E-commerce is a part of e-business
• Mobile Commerce (M-Commerce)
o E-commerce based on location information to customize a transaction
o Paying with a smartphone
o Offers many opportunities to customize the live shopping experience
• Disintermediation
o Lowers costs to consumer
o Higher profit per unit for manufacturer
o Increase sales (maybe)
• Issues with E-Commerce
o Channel Conflict
▪ Retailers retaliating to the new sales channel opened by the company by
discontinuing sales of their product
o Price conflict
▪ Manufacturers lower prices th rough B2B, retailers don’t want customers
to know about reduced price
o Logistics Expense
▪ Cost of sale per unit may increase if sold one at a time vs. multiple
shipments
o Customer Service Expense
▪ Manufacturers must instruct each buyer about the product
o Showrooming
▪ Consumer goes to store to check out product, then proceeds to buy it
online
o Taxation
▪ Traditional sales taxed on location of the sale, but with B2B goods could
be subject to duties
• Business Capital
o Three types of capital
▪ Physical (resources)
▪ Human (knowledge and skills)
▪ Social (social relations)
o Adds value in four ways
▪ Info
▪ Influence
▪ Social credentials
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find more resources at oneclass.com

▪ Personal reinforcement
• Social Networking and E-Commerce:
o Social network is a structure of individuals and organizations that are related to
each other in some way
o Social networking is the process by which individuals use relationships to
communicate with others in a social network
o Social capital measured using
▪ Number of relationships
▪ Strength of relationships
▪ Resources controlled by friends
o Endorsements by high profile people are a traditional way of increasing social
capital
o Weak relationships contribute to the growth of social networks, add new
connections to social network
Lecture #8 – Decision Making Processes and Business
• Life is full of choice
o Choices have consequences
o A decision is a choice among two or more options
o Decision statement should define a decision as narrowly as possible
• Decision Phases
o The process of problem solving is generally broken down into 5 phases
▪ Intelligence
▪ Design
▪ Choice
▪ Implement
▪ Monitor
o Decision making is an iterative process
o Intelligence:
▪ Gathering of data
▪ Collecting info
▪ Deciding what to decide
▪ End result: decision statement
o Design:
▪ Alternative choices are formulated
▪ Research stage on available options
▪