1. CHAPTER 12 ELECTRONIC COMEMRCE

8. A Framework for EC Electronic Commerce Applications • Direct Marketing • Stocks, Jobs • On-line banking • Procurement and purchasing • Malls • Procurement • Auctions • Travel • On-line publishing • Customer Services • Intrabusiness Transactions People : Buyers, Sellers, Intermediaries, Services, IS People and Management Public Policy : Taxes, Legal, Privacy Issues, Regulations, and Technical Standards Marketing and Advertisement: Market Research, Promotions, and Web content Supply Chain: Logistics and Business Partners Infrastructure (1) Common business services infrastructure (security, smart cards/authentication electronic payments, directories/catalogs (2) Messaging and information distribution infrastructure (EDI, e-mail, Hyper Text Transfer Protocol, Chat Rooms) (3) Multimedia content and network publishing infrastructure (HTML, JAVA, World Wide Web, VRML) (4) Network infrastructure (Telecom, cable TV wireless, Internet) (VAN, WAN, LAN, Intranet, Extranet) Access (cell phones) (5) Interfacing infrastructure (The databases, logistics, customers, and applications) Management

17. The Process of Electronic Shopping Introduction to Information Technology Turban, Rainer and Potter Chapter 12 Electronic Commerce  A user gains access to an online service or the internet and goes to a merchant’s Web site. He may know the address, find it in another Web site (refer to it by a search engine), or find it by browsing.  At any time, the user can review the items in the shopping cart and change quantities or delete items, This review continues until a final selection is made.  The user enters the merchant’s storefront and goes to the product displays.  If the user does not find anything of interest, or want to do more shopping he or she may browse some additional merchant storefronts to search for the desired products or services.  When the user does find something of interest, he or she may elect to purchase it online. To finalize the decision, the user may need more information that can be found on the Web pages or obtained by e-mail.  The item is typically stored in a shopping cart. This allows the user to continue looking through this store, or even to visit other merchants, before paying for the items.  When the user is ready to pay he is advised about the payment options the user makes a section and provides payment information (e.g., the credit care number)  The payment authorization is either approved or denied. If denied, the user is prompted for another form of payment .If approved, the transaction is executed.  Shipment is made, if needed, or permission to download products from the Internet is granted. Warranty is established.  Customer service is established. Product may be returned or exchanged, for example maintenance information may be found on the Web site as needed.

39. Market Research : Behavioral Model Decision Making Process Personal Characteristics Age, Gender, Ethnicity, Education, Lifestyle, Psychological, Knowledge, Values, Personality Environmental Characteristics Social, Family, Communities Vendors’ Controlled Systems Logistic Support Payments, Delivery Technical Support Web Design, Intelligent Agents Customer Service FAQs, E-mail, Call Centers, One-to-One Buyers’ Decisions Buy or Not What to Buy Where (Vendor) When How Much to Spend Repeat Purchases Stimuli Marketing Price Promotion Product Quality Others Economical Technology Political Cultural

50. EC Infrastructure COMPONENT DESCRIPTION AND ISSUES Networks A shift from VANs to the Internet. Increased use of VPNs (virtual private networks) to enhance security and capabilities over the Internet. Web severs Special Web servers are usually superior to dual-purpose servers. Available for rent. The interface to legacy systems may be a problem Web server support and software 1. Web site activity tracking. 2. Database connectivity. 3. Software for creating electronic forms. 4. Software for creating chat rooms and discussion groups. Electronic catalogs Product description, multimedia use, customized catalogs, inclusion in Web site design and construction, templates for construction. Web page design and construction software Web programming languages (HTML, JAVA, VRML, XML) Transactional software 1. Search engines for finding and comparing, products. 2. Negotiating software. 3. Encryption and payment. 4. Ordering (front office) inventory and back office software. Internet access components TCP/IP package, Web browsers, remote access server, client dial-in software, Internet connection device, leased line connection, connection to leased line, Internet kiosks Others Firewalls, e-mail, HTTP (transfer protocols), smart cards