E--Commerce Final Review

E-­‐Commerce Final Review

Chapter 9 -­‐-­‐ Online Retail and Services

Row of intermediaries and suppliers

* View table 9.1, pg. 579, and determine the intermediaries and suppliers.

Different sectors of the economy: Example: MO/TO (mail order and telephone order), durable goods, general merchandise, food and beverage, specialty stores, gasoline and fuel, mail order/telephone order, and online retail firms; see pgs. 584, 586, 578-­‐580

* Durable goods- goods that are consumed over a longer period of time (generally more than a year)

* Non-durable goods- goods that are consumed quickly and have shorter life spans

* Online retailing- most high-profile sector of e-commerce on the web; refers solely to sales of physical goods over the internet

* General merchandise- highly concentrated with large firms dominating sales

* Specialty retailers- catering to much smaller segments with higher priced goods; the success depends on building unique products for a marketing segment, offering strong customer service, and providing a persuasive shopping experience to support the brand image

* MOTO (mail & telephone order)- distribute millions of physical catalogs and operate large telephone call centers to accept orders; are advantaged when competing in e-commerce, and the transition to e-commerce has not been difficult

* Food and beverage- use the web to inform people of their physical locations and menus, while others offer delivery via web orders

Advantages and Challenges to Retail Online Retail, see pgs. 583, 589

Advantages of Online Retailing * Lower supply chain costs by aggregating demand at a single site and increasing purchasing power * Lower cost of distribution using websites rather than physical stores * Ability to reach quickly to customer tastes and demands * Ability to change prices nearly instantly * Ability to rapidly change visual presentation of goods * Avoidance of direct marketing costs of...