imchapter3.docx

imchapter3.docx

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imchapter3

Chapter3

RetailinginElectronicCommerce:

ProductsandServices

LearningObjectives

Uponcompletionofthischapter,youwillbeableto:

1.Describeelectronicretailing（e-tailing）anditscharacteristics.

2.Defineanddescribetheprimarye-tailingbusinessmodels.

3.Describehowonlinetravelandtourismservicesoperateandtheirimpactontheindustry.

4.Discusstheonlineemploymentmarket,includingitsparticipants,benefits,andlimitations.

5.Describeonlinerealestateservices.

6.Discussonlinestock-tradingservices.

7.Discusscyberbankingandonlinepersonalfinance.

8.Describeon-demanddeliverybye-grocers.

9.Describethedeliveryofdigitalproductsandonlineentertainment.

10.Discussvariouse-tailconsumeraids,includingcomparison-shoppingaids.

11.Identifythecriticalsuccessfactorsandfailureavoidancefordirectonlinemarketingande-tailing.

12.Describereintermediation,channelconflict,andpersonalizationine-tailing.

Content

A:

TakingE-TailingtotheNextLevel

3.1InternetMarketingandElectronicRetailing

3.2E-TailingBusinessModels

3.3TravelandTourismServicesOnline

3.4EmploymentPlacementandtheJobMarketOnline

3.5RealEstate,Insurance,andStockTradingOnline

3.6BankingandPersonalFinanceOnline

3.7On-DemandDeliveryServicesandE-Grocers

3.8OnlineDeliveryofDigitalProducts,Entertainment,andMedia

3.9OnlinePurchase-DecisionAids

3.10ProblemswithE-TailingandLessonsLearned

3.11IssuesinE-Tailing

ManagerialIssues

Real-WorldCase:

Wal-MartGoesOnline

AnswerstoPause/BreakSectionReviewQuestions

Section3.1ReviewQuestions

1.DescribethenatureofB2CEC.

B2Ce-commerceisconcernedwithbusinessessellingproductstocustomers.

2.WhatsellswellinB2C?

Avarietyofgoodssellwellonline.Thesegoodsinclude:

computersandelectronics,sportinggoods,officesupplies,booksandmusic,toys,healthandbeautyproducts,entertainment,apparel,servicesandcars.

3.Whatarethecharacteristicsofhigh-volumeproductsandservices?

Thecharacteristicsofhigh-volumeproductsandservicesinclude:

highbrandrecognition,recognizedguarantees,digitizedformats,relativelyinexpensiveitems,frequentlypurchaseditems,commoditieswithstandardspecificationsandwell-known,unopenablepackageditems.

4.DescribethemajortrendsinB2C.

Sometrendsinclude:

∙Morerelianceonresearch

∙Interneteffectsonretailsales

∙Increasedincentivesforcross-channelsales

∙Increasedrichmedia

Section3.2ReviewQuestions

1.ListtheB2Cdistributionchannelmodels.

TheB2Cdistributionchannelmodelsinclude:

directmarketing,pure-playe-tailersandclick-and-mortarretailers.

2.Describehowmail-orderhousesaregoingonline.

Companiesareattemptingtoleveragetheirexistinginfrastructuresbyusinganewmarketingsystem（online）,inadditiontotheirexistingmethod（catalogs,etc.）

3.Describethedirectmarketingmodelusedbymanufacturers.

Thedirectmarketingmodeltakesplacewithoutintermediariesbetweenmanufacturersandbuyers.

4.Describevirtuale-tailing.

ThesefirmsselltocustomersovertheInternetwhilenotmaintaininganytypeofphysicalsaleslocation.

5.Describetheclick-and-mortarapproach.

WiththisapproachthefirmsellstocustomersthroughtheInternetandthroughphysicalsaleslocations.

6.Describee-malls.

Electronicmalls（e-malls）arecombinationsofseveralonlinemerchantsinonelocation.Somemallsarejustanaggregationofmerchants,whileothermallsprovideintegratedservices（likeasinglecheckoutformanymerchants）.

6.Describeonlineweddingandgiftservices.

Theseservicesprovidetheabilitytocreate“want”liststhatcanbeaccessedandpurchasedbyothersfortherecipient.

Section3.3ReviewQuestions

1.Whattravelservicesareavailableonlinethatarenotavailableoff-line?

Someoftheadditionalservicesprovidedinclude:

traveltips,electronictravelmagazines,farecomparisons,currencyconversioncalculators,faretracking,worldwideplacelocators,atravelproductsstore,expertopinions,travelnews,drivingmaps,chatrooms,bulletinboardsandfrequent-flyerdeals.

2.Listthebenefitsofonlinetravelservicestotravelersandtoserviceproviders.

Onlinetravelservicesprovidethebenefitsoflargeamountsoffreeinformation,24/7availabilityandthepotentialforsignificantreductionsinprice.

3.Whatroledosoftware（intelligent）agentshaveintravelservices?

Whatfutureapplicationsmaybepossible?

Intelligentagentscouldprovideaservicetotravelcustomersbyprovidingbuyer-sellernegotiations.Futureapplicationswouldallowgreaterinformationflowforbetterpricinganddecisionmaking.

Section3.4ReviewQuestions

1.Whatarethedrivingforcesoftheelectronicjobmarket?

Theelectronicjobmarketisdrivenbythevolatilenatureoftheemploymentmarketitselfandtheconstantchangeinavailablepositionsandapplicants.

2.Whatarethemajoradvantagesoftheelectronicjobmarkettothecandidate?

Toemployers?

Avarietyofadvantagesaredescribedinexhibit3.6.

3.Describetheroleofintelligentagentsintheelectronicjobmarket.

Intelligentagentscanbeusedtosearchandretrievesuitablepositionsforcandidatesandsuitablecandidatesforemployerpositions.

Section3.5ReviewQuestions

1.Listthemajoronlinerealestateapplications.

Themajoronlinerealestateapplicationsinclude:

advicesystemsforcustomerswhoarebuyingandsellinghomes,directoryandnewsites,propertylistings,commercialpropertylistings,residentialpropertylistings,linkstorealtors,maps,mortgageinformation,mortgagecomparisons,mortgagebrokers,onlinelenders,andsitesforhomesellersandbuyers.

2.Whataretheadvantagesofonlinestocktracking?

Themajoradvantagesofonlinestocktrackingareitsease-of-use,accesstolargeamountsofinformation,convenience,andinmanycasesreducedcosts.

3.Whatinvestmentinformationisavailableonline?

Severaldifferenttypesofinformationareavailableincludingfinancialnews,bondprices,advice,evaluationtools,IPOinformation,andfinancialinformation.

4.Whataresomeoftherisksoftradingstocksonline?

Inadditiontorisksoftradingstocksingeneral,tradingstocksonlinecanhavetherisksofdelayedinformationaswellastherelativeeaseoftrading（increasingtheamountoftradingoverall）.

Section3.6ReviewQuestions

1.Listthecapabilitiesofonlinebanking.Whichofthesecapabilitieswouldbemostbeneficialtoyou?

Studentopinionsontheusefulnessoffeatureswillvary.Thecapabilitiesavailableinclude:

currentaccountbalances,accesstostatements,paybillsonline,downloadaccounttransactions,transfermoneybetweenaccounts,balanceaccounts,communicatewiththebank,accessinformationanytimeandaccessinformationanywhere.

2.Discusssomeimplementationissuesoffinancialservices.

Someoftheimplementationissuesofonlinefinancialservicesinclude:

securingfinancialtransactions,usingthebankintranet,usingimagingsystems,differentialpricingofonline/off-lineservicesandpotentialrisks.

3.Listthemajorpersonalfinanceservicesavailableonline.

Themajorpersonalfinanceservicesavailableonlineinclude:

billpaying,electroniccheckwriting,trackingofaccounts,portfoliomanagement,investmenttracking/monitoring,stockquotes,budgetorganization,cashflow/profit-lossanalysis,taxservicesandretirementservices.

4.Explainonlinebillpaying.

Inonlinebillpaying,fundsaretakenfromtheuser'saccountsbyanintermediarywhothenarrangespaymentswiththeuser'sdebtor.

Section3.7ReviewQuestions

1.Explainon-demanddeliveryservice.

On-demanddeliveryserviceisexpressdeliverythatismadequicklyafteranonlineorderisreceived.

2.Describee-grocersandhowtheyoperate.

Thesefirmswilltakeordersonlineandprovidedeliveriestocustomersthrougharegularlyscheduleddelivery.

3.Whoarethetypicale-groceryshoppers?

Whatservicestotheyrequire?

Typicale-groceryshoppersfallintooneormoreofthefollowinggroups:

shoppingavoiders,necessityusers,newtechnologists,extremelybusyconsumers,consumerswhoenjoyonlineshoppingandolderindividualswhoenjoyshoppinginanytypeofstore.

4.Whatarethedifficultiesinshoppingonlineforgroceries?

Customersmaybefrustratedshoppingforgroceriesonlinebecausetheycannotphysicallyexaminethegoodsbeforepurchase.

Section3.8ReviewQuestions

1.Describedigitalgoodsandtheirdelivery.

DigitalgoodsareproductsthatcanbecompletelydigitizedanddeliveredovertheInternet.

2.Whatarethebenefitsandthelimitationsofdigitaldelivery?

Thereareseveraladvantagestotheuseofdigitaldeliveryincludingincreasedspeedofdelivery,lowproductcostandlowdistributioncosts.Themajordisadvantageisthatnotallgoodscanbedigitized.

3.Whatarethemajorformsofonlineentertainment?

Doyouthinkpeopleofdifferentagegroupsandsocialclassesmightbeattractedtodifferenttypesofonlineentertainment?

Studentopinionsonmediaattractivenesswillvary.Themajortypesofonlineentertainmentincludewebbrowsing,gaming,sportsgames,etc.Afulllistcanbeseenonpage130.

Section3.9ReviewQuestions

1.Defineshoppingportalsandprovidetwoexamples.

Shoppingportalsaregatewaystostorefrontsandmallsthatmaybeeithercomprehensiveorniche-oriented.Exampleswouldincludeand

2.Whatareshopbots?

AshopbotisashoppingrobotthatscoutstheWeblookingforgoodsandservicesthatmeetconsumer’sspecifiedsearchcriteria.

3.ExplaintheroleofbusinessratingandWebsiteverificationtools