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E- Commerce Midterm Review

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E-Commerce Mid-term Notes

Chapter 1

Global E-business

B to B

  • Selling products or services to other businesses
  • Supply management departments negotiate purchase transactions with suppliers

Electronic Data Interchange (EDI)

  • Business to business transmission of computer-readable data in standard format
  • Reduces errors

Internet technology integration

  • First wave: bar codes, scanners
  • Second wave: (RFID), smart cards, biometric technologies
  • Third Wave: Smartphones technology was introduced

Poor choice for electronic commerce

  • High cost, unique items, and perishable foods
  • As e-commerce matures these items will become more available online
  • Calculating return on investment

Benefits of E-commerce

  • Cheaper than retail outlet

Network Economic hierarchy

  • Avigation model
  • Using other services to improve your own services
  • Share resources and skills sets

International commerce issues

  • Trust
  • Cultures issues
  • Select icons carefully
  • Languages
  • Government

Mobile Payments

  • Strengths
  • Convenience
  • Quicker
  • Simpler to use an app than a e-commerce app
  • Disadvantages
  • App clutters your phone
  • Must use the app

Chapter 3

Revenue Models

Virtual Model

  • Avatars built for customer measurements

Online Retailing

What is the reality with customers

  • Customers are in hurry
  • Impatient
  • Approach customer with reality
  • 40% of customers will be impatient no more than 30 seconds for app to load
  • Change the amount of steps to purchase a product


  • Every customer has individual needs, wants, desires
  • Problems with marketers is that you must satisfy every customer desires, wants, and needs.

Funnel Model

  1. Exposure
  2. Seeking Knowledge
  3. Evaluating the alternatives and make selections
  4. Purchase
  5. Conversion of loyal shoppers


  • Using software to increase productivity in e-commerce
  • Dynamic pricing
  • Using software to change pricing depending on need
  • Scarcity effect
  • The fear of missing out
  • Ex. Tickets company will say that their tickets will sell out in quickly if you do not buy.
  • Less data errors
  • Reduce costs

Automation Promotion

  • Programmed buying, or biding
  • Buy context, key words, special circumstances

Assignment information

  • Remember mobile and social

Omni- Channel Marketing

  • Using many different channels to market your product and service
  • Allows the marketer to reach a wider audience knowing that not everyone is the same

What percent of commerce is electronic?

  • 11 percent of commerce is e-commerce

Native selling

  • Is a type of advertising, mostly online, that matches the form and function of the platform upon which it appears?


What does social, website and mobile do besides commerce?

  • What utility can bring?
  • Any product can be use for the customers benefits
  • Create value that customer repeat purchases your product or return to your site or app
  • Helps improve
  • Example
  • Map function on a phone
  • Weather app on your phone
  • What can customer service bring
  • Brings satisfaction to your customers
  • What can knowledge bring?
  • Information can help customers connect to your product
  • Customers want to know that safety is being considered

Customization of Products

  • Example
  • Oreo let customize your cookie

Mobile Blindness

  • Looking at your phone without knowing your surroundings

Internet of things influence on m-commerce?

  • Everything is connected to each other to the point where you can control everything by a mobile phone
  • Example
  • You can control electricity in your house on your phone

Message as way of communication?

  • Communication is crucial to connect with customers and find a line of communication that will respond to customers quickly
  • Majority of people use texting and chatting more than any other line of communication

Omni channel Marketing

  • Using variety of channels to market

Blurred digital

Physical Lines

Loyalty program

  • Increase repeat purchase
  • Increases loyal customers base

Buy buttons

  • The likely that a customer spends clicking buttons to buy a product its likely they will lose interest and leave

8/10 minutes spend on top 3 apps

  • Customers impatient

MEO-mobile experience optimization

  • Low click counts
  • Create an experience

1/3 of e commerce buyers abandon shopping car

  • Decrease the amount of clicks
  • Increase the experience
  • Spend an notification that alerts that you abandon your kart

How can you compress the purchase process?

  • Apple pay 1%
  • Websites need to find a way to decreases purchase process

3 top value drivers

  1. Location
  • Close to the point of purchase increase the desire to buy
  • Using promotion depending on the area you live in
  1. Promotion
  • Discounts
  • As marketers want is repeat purchase
  • Flash sale – time limit on a sale FOMO
  • Customize promotion based on your last purchase
  1. Personalization
  • Selling you products that customers want
  • Selling products that customers do not want customers are trained to tune out any ad the company have

Indoor mapping

  • Using cell signals to tell you where to go
  • Having coupons on where near



  • Magnetic Stripe Cards
  • Effortless way to pay
  • Providing service for over fifty years
  • Huge security concern
  • Vulnerable to theft and duplication
  • Account numbers are invisible to all parties
  • Smart Cards
  • They are magnetic stripe card with additional capabilities
  • Has an electronic chip
  • No need for consumers to swipe a smart card
  • Difficult to duplicate
  • This requires the merchant to make an additional upgrade
  • No Card and Pay at Launch
  • Things like Google Wallet (2011) and Apple Pay uses NFC technology
  • Lot more secure because credit cards leave personal information at the store rather than on your device
  • Develop by Wal mart, Best Buy
  • Seen as secondary payment than a primary
  • Convenience is the significant motivation for this payment method and the main driving force
  • Apple pay when device is over the machine it gives a biometric fingerprint is required to complete the transaction
  • Pay will be used at over 22,000 stores
  • Disadvantages
  • The card is not actually loaded on the card
  • Mobile Electronic Payment from the merchant Perspective
  • Five attributes
  • Customer Shopping experiences
  • Applications Finding users deals and coupons
  • Cost
  • Applications that liked your bank information to your phone as a prefunded method, higher fees
  • Reduces the amount of frauds
  • Investing in NFC payments are too costly
  • Customer data control
  • Transaction history is collected and access to for research purposes
  • Security
  • Fragmented Markets
  • Customer shopping experience is the most perceives as the important attribute
  • Mobile

The mobile shopping revolution: Redefining the consumer decision process

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