Sales

E commerce and the internet

Unique features of E-commerce Technology

Universal standards

* One set of technology standards: Internet standards]

* Effects

* Disparate

Richness

* Support video, audio, and text message

Effect

Traditional commerce richness of serves comes with fewer clients

Reach

Interactivity

Information density

Total information available to all market users.

Large increases in information density

The total amount and quality of information available

Effect:

* Greater price transparency

* Greater cost transparency

* Enables merchants to engage in price discrimination

* Other same things to different people

Personalization/customization

* Technology permits modification

Social technology

Technology promotes user content generation and social networking

#many to many model

Digital marketing Effects

* Decreased information asymmetry – before customers won’t know who the suppliers is

Some people in the stock market has more information than others

* Reduced search cost and transaction costs – how much does it take to find a supplier- getting rid of middle man cut down on cost

* Delayed gratification: effects dependent on product

* Reduced menu cost- easy to change price online

* Increased price discrimination

* Increased market segmentation

* Switching costs

Digital Goods

* Goods that can be delivered over a digital network

* E.g music tracks, videos, software

Types of E-commerce

Business to consumer (B2C)

.barnesandnoble.com

Business to business (B2B)

.chemconnect

Consumer to consumer

Ebay

7 major ecommerce models

* E-Tailer

* Content provider- google,- site where you can provide content to buys

* Transaction broker- travel agent , insurance companies

* Market creator- bring many to one central place to buy (eBay)

* Service provider (amazon ) s2, prezi, apple iCloud

* Community provider –...