Chapter 4 Retailing in Electronic Commerce ISM 41113 M Fathima Rashida Learning Objectives Describe electronic retailing etailing and its characteristics Define and describe the primary etailing business models ID: 764384
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Chapter 4 Retailing in Electronic Commerce ISM 41113 M. Fathima Rashida
Learning Objectives Describe electronic retailing (e-tailing) and its characteristics. Define and describe the primary e-tailing business models. Describe how online travel and tourism services operate and their impact on the industry. Discuss the online employment market, including its participants, benefits, and limitations.Discuss cyber banking and online personal finance. ISM 41113 2
Learning Objectives …Describe on-demand delivery of groceries and similar products/services.Describe the delivery of digital products and online entertainment. Discuss various online consumer aids, including comparison-shopping aids. Describe disintermediation and other B2C strategic issues.
Internet Marketing and Electronic RetailingOverview Of Electronic RetailingA retailer is a sales intermediary, a seller that operates between manufacturers and customers Electronic Retailing (E-tailing) Retailing conducted online, over the Internet called as e-tailingE- tailers Retailers who sell over the Internet B2C: B2B ISM 41113 4
Internet Marketing and Electronic Retailing cont… Travel Computer hardware and software Consumer electronicsOffice supplies Sport and fitness goodsBooks and musicToys and hobbiesHealth and beautyEntertainmentApparel and clothingJewelryCarsServicesFood and drugsPet suppliesOthers ISM 41113 What Sells Well On The Internet 5
Internet Marketing and Electronic Retailing cont…Characteristics Of Successful E-tailing Following characteristics are expected to facilitate higher sales volume: High brand recognition Dell, SonyA guarantee provided by highly reliable or well-known vendors DellDigitized format software, music or videos Relatively inexpensive items office suppliers, vitaminsFrequently purchased items groceries, prescriptions drugsCommodities with standard specifications books, CDs, airline ticketsWell-known packaged items that cannot ne opened even in a traditional store food, chocolates vitaminsISM 411136
E-Tailing Business Models ISM 41113 7 E-tailing as an Enterprise EC system: B2B, B2C
E-Tailing Business Models cont…Classification By Distribution Channel Direct marketing by mail-order retailers that go online Broadly, marketing that takes place without intermediaries between manufacturers and buyers Direct marketing by manufacturersPure-play e-tailers Firms that sell directly to consumers over the Internet without maintaining a physical sales channelGeneral purpose amazonSpecialized e-tailers Cattoys.com ISM 41113 8
E-Tailing Business Models cont…Click-and-mortar retailers Internet (online) malls Online shopping center where many online stores are located
E-Tailing Business Models cont…Other B2C Models And Special Retailing Transaction brokers Information portals Community portal and social networksContent creators or disseminatorsViral marketingMarket makersMake (build)-to-order B2B2CService providersB2C In Social Networks ISM 41113 10
Travel and Tourism (Hospitality) Services OnlineOnline travel bookings and associated travel services are one of the most successful e-commerce implementationsSpecial Services Online Conventional services + Wireless servicesDirect marketingAlliances and consortiaTravel-Oriented Social Networks ISM 41113 11
Travel and Tourism (Hospitality) Services Online cont…Benefits And Limitations Of Online Travel Services Benefits The amount of free information is tremendous Information is accessible at any time from any placeSubstantial discountsLimitationsMany people do not use the InternetThe amount of time and the difficulty of using virtual travel agencies can be significant Complex trips or those that require stopovers might not be available online ISM 41113 12
Travel and Tourism (Hospitality) Services Online cont…Corporate TravelMany large corporations receive additional services from large travel agencies To reduce corporate travel costs, companies can make arrangements that enable employees to plan and book their own trips Travel authorization software that checks availability of funds and compliance with corporate guidelines is usually provided by travel companies ISM 41113 13
Travel and Tourism (Hospitality) Services Online cont…Impact Of EC On The Travel IndustryDirect impacts because customers increasingly using the Internet to make bookings Indirect impacts because airlines and hotel chains encouraging customers to book direct or through online wholesalers, bypassing travel agents Investing in content (information, travel advice, and the like) is a requirement for success in this competitive market ISM 41113 14
Employment Placement and the Job Market Online ISM 41113 15 Traditional Vs. Online job market
Employment Placement and the Job Market Online cont…The Internet Job MarketThe following parties use the Internet job market: Job seekers hotjobsEmployers seeking employeesClassified adsJob agencies hotjobs, AOLGovernment agencies and institutions jobsearch.gov.auA Consortium of Large Employers and College Career AdvisorsOnline Job Markets on Social Networking ISM 41113 16
ISM 41113 17 The Referral Power of Social Networks in Job Matching
Employment Placement and the Job Market Online cont…Benefits And Limitations Of The Electronic Job Market Probably the biggest limitation of the online job market is the fact that some people do not use and do not have access to the Internet, although this problem has declined substantially ISM 41113 18
ISM 41113 19 Advantages of the Electronic Job Market for Job Seekers and Employers
Banking and Personal Finance OnlineElectronic (online) banking or e-banking Various banking activities conducted from home or the road using an Internet connection; also known as cyberbanking , virtual banking, online banking, and home banking Home Banking CapabilitiesInformational, administrative, transactional, portal, and othersVirtual BanksHave no physical location; only conduct online transactions International And Multiple-currency BankingSupport global transactions ISM 41113 20
Banking and Personal Finance Online cont…Online Financial Transaction Implementation IssuesSecuring Financial Transactions Access to Banks’ Intranets by Outsiders Bank of America Imaging SystemsFees Online Versus Fees for Offline ServicesRisksPersonal Finance Online Online Billing and Bill PayingTaxes ISM 41113 21
On-Demand Delivery of Products, Digital Items, Entertainment, and GamingOn-demand Delivery Of Productse-grocer A grocer that takes orders online and provides deliveries on a daily or other regular schedule or within a very short period of time on-demand delivery service Express delivery made fairly quickly after an online order is received: Albertsons.com, woolworths.com.au ISM 41113 22
On-Demand Delivery of Products, Digital Items, Entertainment, and Gaming cont… ISM 41113 23 Distribution of Digital Vs. Physical Products
Online Purchase-Decision AidsShopping Portals Gateways to e-storefronts and e-malls; may be comprehensive or niche oriented Shopping Robots (Shopping Agents Or Shopbots ) Tools that scout the Web on behalf of consumers who specify search criteriaBusiness Ratings SitesTrust Verification Sites Other Shopping Tools ISM 41113 24
Issues in E-TailingDisintermediation The removal of organizations or business process layers responsible for certain intermediary steps in a given supply chain Reintermediation The process whereby intermediaries (either new ones or those that had been disintermediated) take on new intermediary roles ISM 41113 25
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Issues in E-Tailing cont…Cybermediation (Electronic Intermediation) The use of software (intelligent) agents to facilitate intermediation Channel Conflict Situation in which an online marketing channel upsets the traditional channels due to real or perceived damage from competitionDetermining The Right Price Product And Service Customization And PersonalizationFraud And Other Illegal ActivitiesHow To Make Customers Happy ISM 41113 27
End of the ChapterISM 41113 1- 28