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    Chapter 10

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    Islam Babiker

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    © All Rights Reserved
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    Chapter 10

    Uploaded by

    Islam Babiker
    4 views14 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
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    4 views14 pages

    Chapter 10

    Uploaded by

    Islam Babiker

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 14

    Essentials of Management Information

    Systems
    Thirteenth Edition

    Chapter 10
    E-commerce: Digital
    Markets, Digital Goods

    Slides in this presentation contain hyperlinks.


    JAWS users should be able to get a list of
    links by using INSERT+F7

    Copyright © 2019 Pearson Education Ltd.


    E-Commerce Today

    • E-commerce: Use of the Internet and web to transact


    business
    • Began in 1995 and grew exponentially; still stable even in
    a recession
    • Companies that survived the dot-com bubble now thrive
    • The new e-commerce: social, mobile, local
    • Move from desktop to smartphone

    Copyright © 2019 Pearson Education Ltd.


    Figure 10.1 The Growth of E-Commerce

    Sources: Based on data from eMarketer, “US Retail Ecommerce Sales, 2015-2021,”
    2017a; eMarketer, “US Digital Travel Sales, 2014-2020,” 2016; and eMarketer chart, “US
    Mobile Downloads and In-App Revenues 2013-2016,” 2016.
    Copyright © 2019 Pearson Education Ltd.
    Why E-Commerce is Different (1 of 2)

    • Ubiquity
    – Marketspace is virtual
    – Transaction costs reduced
    • Global reach
    – Transactions cross cultural and national boundaries
    • Universal standards
    – One set of technology standards: Internet standards
    • Richness
    – Supports video, audio, and text messages

    Copyright © 2019 Pearson Education Ltd.


    Why E-Commerce is Different (2 of 2)

    • Interactivity
    • Information density
    – Greater price and cost transparency
    – Enables price discrimination
    • Personalization/customization
    – Technology permits modification of messages, goods
    • Social technology
    – Promotes user content generation and social
    networking

    Copyright © 2019 Pearson Education Ltd.


    Key Concepts in E-Commerce – Digital Markets
    and Digital Goods in a Global Marketplace

    • Internet and digital markets have changed the way


    companies conduct business
    • Information asymmetry reduced
    • Menu costs, search and transaction costs reduced
    • Dynamic pricing enabled
    • Switching costs
    • Delayed gratification
    • Disintermediation

    Copyright © 2019 Pearson Education Ltd.


    Figure 10.2 The Benefits of
    Disintermediation to the Consumer

    Copyright © 2019 Pearson Education Ltd.


    Digital Goods

    • Goods that can be delivered over a digital network


    • Cost of producing first unit is almost entire cost of product
    • Costs of delivery over the Internet very low
    • Marketing costs remain the same; pricing highly variable
    • Industries with digital goods are undergoing revolutionary
    changes (publishers, record labels, etc.)

    Copyright © 2019 Pearson Education Ltd.


    Types of E-Commerce

    • Three major types


    – Business-to-consumer (B2C)
    ▪ Example: BarnesandNoble.com
    – Business-to-business (B2B)
    ▪ Example: ChemConnect
    – Consumer-to-consumer (C2C)
    ▪ Example: eBay
    • E-commerce can be categorized by platform
    – Mobile commerce (m-commerce)

    Copyright © 2019 Pearson Education Ltd.


    E-Commerce Business Models

    • Portal
    • E-tailer
    • Content provider
    • Transaction broker
    • Market creator
    • Service provider
    • Community provider

    Copyright © 2019 Pearson Education Ltd.


    E-Commerce Revenue Models

    • Advertising
    • Sales
    • Subscription
    • Free/Freemium
    • Transaction fee
    • Affiliate

    Copyright © 2019 Pearson Education Ltd.


    What is the Role of M-Commerce in Business, and
    What are the Most Important M-Commerce
    Applications?
    • M-commerce in 2017 is 35 percent of all e-commerce
    • Fastest growing form of e-commerce
    – Growing at 20 percent or more per year
    • Main areas of growth
    – Mass market retailing (Amazon, eBay, etc.)
    – Sales of digital content (music, TV, etc.)
    – In-app sales to mobile devices

    Copyright © 2019 Pearson Education Ltd.


    Location-Based Services and Applications

    • Used by 74 percent of smartphone owners


    • Based on GPS map services
    • Geosocial services
    – Where friends are
    • Geoadvertising
    – What shops are nearby
    • Geoinformation services
    – Price of house you are passing

    Copyright © 2019 Pearson Education Ltd.


    Other Mobile Commerce Services

    • Financial account management apps


    – Banks, credit card companies
    • Mobile advertising market
    – Google and Facebook are largest markets
    – Ads embedded in games, videos, and mobile apps
    • 55 percent of online retailers have m-commerce websites

    Copyright © 2019 Pearson Education Ltd.

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