E- Commerce Midterm Review
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
Fragmentation
- Every customer has individual needs, wants, desires
- Problems with marketers is that you must satisfy every customer desires, wants, and needs.
Funnel Model
- Exposure
- Seeking Knowledge
- Evaluating the alternatives and make selections
- Purchase
- Conversion of loyal shoppers
Automation
- 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?
E-Business
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
- Location
- Close to the point of purchase increase the desire to buy
- Using promotion depending on the area you live in
- Promotion
- Discounts
- As marketers want is repeat purchase
- Flash sale – time limit on a sale FOMO
- Customize promotion based on your last purchase
- 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
Articles
THE FUTURE OF MOBILE ELECTRONIC PAYMENTS
- 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