Class 4: E-Commerce (7/14/2011) - U-System

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8 Δεκ 2013 (πριν από 3 χρόνια και 8 μήνες)

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1

MIS 111: Computers and the
Inter
-
networked Society

Class 4: E
-
Commerce

July 14
th
, 2011


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Today’s Learning Objectives


List one or two current events in technology news


Define e
-
commerce


List at least 4 different ways e
-
commerce can make money


Explain the difference between Business
-
to
-
Customer and
Business
-
to
-
Business e
-
commerce


List the components of an online store


Discuss how the “long tail” is implemented in e
-
commerce and
why it makes e
-
commerce successful


Discuss a few ways you can make money online


Survey

4

When was the last time you used a physical store to buy…

Music

Book

Software

DVD

5

E
-
Commerce: An Example

6

E
-
Commerce: A Definition

“The process of buying, selling,
transferring, or exchanging
products, services, or information
via computer networks, including
the Internet.”

Pure vs. Partial E
-
Commerce


Bricks and mortar (not e
-
commerce)



Virtual (pure e
-
commerce)



Clicks and mortar (partial e
-
commerce)

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A Word on Nomenclature


Business and technology people are fairly
simple people.



Hence, the names they choose mean exactly
what they say (for example, management
information systems? The world wide web?)

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Types of E
-
Commerce


Business
-
to
-
Consumer


Business
-
to
-
Business


Consumer
-
to
-
Consumer


Business
-
to
-
Employee


E
-
Government


Mobile Commerce

9

More details

Business
-
to
-
Consumer

and

Business
-
to
-
Business

10

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Business
-
to
-
Consumer EC (B2C)


Means of Access (E
-
Tailing)


Direct sale through Electronic Storefronts


Like www.officedepot.com


Direct sale through Electronic Malls


May include thousands of vendors


Benefits of E
-
Tailing:


Can buy from home 24/7


Wider variety of products at lower prices (text
books?)


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Business
-
to
-
Consumer Services


Online Service Industries (in addition to goods)


Cyberbanking (paying bills, applying for loans)


Online Securities Trading (E*Trade)


Online Job Market (www.monster.com)


Travel Services (www.hotels.com)



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Business
-
to
-
Consumer Ads


Online Advertising Methods


Banners (electronic billboards)


Pop
-
ups/Pop
-
unders (annoying!!)


Spamming vs. Permission Marketing


(Will you please sign up for our newsletter?)


Viral Marketing


“Word of Mouth” marketing


Addwords (not as good as search engine
optimization)




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Business
-
to
-
Business (B2B)


Sell
-
Side Marketplaces


Organizations sell products to others


Buy
-
Side Marketplaces


Organizations buy products from others


Electronic Exchanges


One buyer, many sellers


Some E
-
Commerce Business
Models


Online direct marketing


Manufacturers/Retailers sell directly to customers


Deep discounters


Appeals to customers who consider only price


Viral marketing


Receivers send info about product to friends


Group purchasing


Small buyers aggregate demand to get low price


Online auctions


Like regular auction, but online


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How do they make money?

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Amazon.com

Pandora.com

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Ebay.com

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iTunes

http://www.barnesandnoble.com/

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Google

22

Facebook

23

CNN

24

ESPN

25

NCN.com

26

go.disney.com

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www.arizona.edu

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Woot.com

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Where to start?


Q1. how are you going to make money


Adverting


Selling a product


Selling a service


Selling digital media


Affiliate program


Selling sort of you own program


Subscriptions


Hybrid


DO YOUR RESEARCH!

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Example, I’m going to be selling a
digital product


Tomorrow, we will do an affiliate program so
today we are going to be selling videos and
music


Q2. how much work am I willing to put into
Web development?

31

Option 1


Online solutions


http://shopping
-
cart
-
review.toptenreviews.com/


https://www.bigcommerce.com/ecommerce
-
solution
-
features.php


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e
-
commerce
-

Michael McDonnell

Online Stores:

Components &
Processes

Customer

Catalogue

Shopping

Cart

Checkout

Payment

Collection

a

b

c

d

Catalogue


List of Products


Descriptions


Prices


Options, size, etc.


Pictures

1

Shopping Cart


A temporary list of
item to be
purchased

2

Checkout


Billing Info


Shipping Address


Shipping Cost


Record Order


Process Payment

3

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Electronic Payments


Electronic Checks


Electronic Credit Cards


Purchasing Cards




Do you know what that little lock means in
the upper right hand corner of the browser?


35

Electronic Payments (cont’d)


Electronic Cash


Stored
-
Value Money Cards (calling cards)


Smart Cards (like the CatCard)


Person
-
to
-
Person Payments (PayPal)


Digital Wallets (stores financial info of buyer so no
reentry is needed)

Option 2


Content Management System


Blog


Google sites


Word press


Joomla


Drupal


Plugins


http://extensions.joomla.org/


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Option 3


Completely program it


Why?


Complete flexibility


Your platform doesn’t support content
management systems


http://govollow.appspot.com/


Free and lots of traffic (great for facebook, iphone
integration)


You’re a geek


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With option 2 and 3


You usually need to find you own place to
host the Web site (they are just software)


Install software


Create a database

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The Long Tail

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“The Long Tail”


What happened to
Touching the Void
?


What does it mean that we have a “market of
hits?” (anyone listen to the Top 40 station?)


Why aren’t obscure products in the market?


What is the 20/80 principle and why doesn’t it
apply to the market for music and videos?


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The Long Tail: Power Law Distribution

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The Rules of The Long Tail


Rule 1: Make Everything Available


Why can sellers sell everything online?


Rule 2: Cut the Price in Half; Now Lower it.


Is any price too low?


Rule 3: Help Me Find it.


How do recommendations work?

You: A Money Maker


Affiliate Programs (http://www.amazon.com/)


Advertising (
www.google.com/adsense/)


Create Products (
http://www.spreadshirt.com/
)


I want to sell my own product …


Don’t want to handle order fulfillment


http://www.amazonservices.com/content/fulfillment
-
by
-
amazon.htm?id=hm2



43

Tomorrow


No reading


Meet in McClelland Hall 214


We’re going to make a business!!!

44

Quiz




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