E-Commerce

E-Commerce or Electronic Commerce

* is used as a catchall phrase to describe several interrelated concepts and business phenomena.

* conducting of business activities using the Internet platform and in particular the Web.

Ex: Buying books, executing stock trades and checking bank account on the Web

Types of E-Commerce

* Business-to-Consumer

* the two parties involved are a business and an end consumer.

* direct consumer uses the Internet platform to conduct activities such as browsing, ordering, and making a payment.

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Activities in Business-to-Consumer:

* Promotion

* Banners, buttons, superstitials, rich-media banners

* Ordering

* Product delivery

* Digital products, such as software, news, and music, are ideally suited for delivery over the Internet, saving time and money compared to the alternative of shipping the product.

* After-sales support

1. Customer support is the final link in the chain between the producer and consumer. The internet allows delivery of after-sales service to custoemrs through the use of e-mail, search engines, and bulletin boards.

Creating Business Value

The goal of all businesses is to survive and maximize shareholder value. This is made possible by reaching intermediate goals, which are often described as business values. Three types or dimensions of business values are:

* Operational excellence, under which businesses emphasize how costs, low overhead, quick response, and streamed processes.

* Customer intimacy, where the focus is on establishing lifelong relationships with customers and meeting their individual needs.

* Product and service leadership, with continuous innovation in product and service lines and investment in research and development.

Creating Consumer Value

Consumers shop on the web because they find value there. The dimensions of customer value can be captured as four Cs:

* Cost – cost savings is a major reason consumers go...