Chapter 13 – E-Commerce- Digital Markets and Digital Goods.docx

4 Pages
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Department
Information Technology Management
Course Code
ITM 102
Professor
Sam Lampropoulos

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Chapter 13 – E-Commerce: Digital Markets and Digital Goods Technology Foundations  Wireless Internet Connections  Rich Site Summary or Really Simple Syndication  Computing and Networking component prices continue to fall  New Internet-based models of computing expand B2B Why E-Commerce is different  Ubiquity o Available just about everywhere, at all times. It makes it possible to shop from your desktop, at home, work or car o Marketspace – extended beyond traditional boundaries and removed from temporal and geographic locations o Reduces the transaction cost  Global reach o Potential market size for e-commerce merchants is roughly equal to the size of the world’s online population  Universal standards o They are shared by all nations around the world and enable any computer to link with any other computer regardless of the technology platform each is using o Market entry costs - the cost merchants must pay simply to bring their goods to market o Search costs – the effort required to find suitable products  Richness o Complexity and content of a message o Richness of traditional markets makes them powerful selling or commercial environments  Interactivity  Information density o Price transparency refers to the ease with which consumers can find out the variety of prices in the market o Cost transparency refers to the ability of consumers to discover the actual costs merchants pay for products  Personalization/customization o Customization changing the delivered product or service based on a user’s preferences or prior behavior. Key Concepts in E-Commerce: Digital Markets and Digital Goods in a Global Marketplace  Information asymmetry exists when one party in a transaction has more information than is important for the transaction than the other party o Helps determine their relative bargaining power  Lower menu costs is the merchants’ cost of changing prices and the ability to change prices dynamically based on market conditions  Dynamic pricing is the price of a product varies depending on the demand characteristics of the customer or the supply situation of the seller.  Disintermediation is the removal of organizations or business process layers responsible for intermediary steps in a value chain  Digital Goods are the goods that can be delivered over a digital network o Music, magazines, books o Marginal cost of producing another unit is about zero Internet Business Models  Virtual Storefront sells goods or services online  Information broker provides information on products or services  Transaction broker provides online transaction facility  Online marketplace provides trading platform individuals and firms  Content provider creates revenue by providing content  Online service provider provides online services including search service  Virtual community Provides an online community to focused groups  Portal Provides initial point of entry to Web, specialized content, services Communication and Social Networking  Banner ads  Pop-up ads  Social networking sites  Social Shopping Electronic Commerce  Business-to-consumer (B2C) electronic commerce involves retailing products and services to in
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