SlideShare une entreprise Scribd logo
1  sur  188
Télécharger pour lire hors ligne
ELEVENTH EDITION 
ELECTRONIC 
COMMERCE 
GARYP.SCHNEIDER 
Chapter1 
IntroductiontoElectronicCommerce 
© Cengage Learning 2015 
19
Introduction 
•Late1990s:fewcompaniesdoingbuyingor selling 
online 
–Amazon,EBay establishingfootholds 
•1998:Google searchengine established 
–Providedmorerelevantsearch resultsthanexisting 
search engineWebsites 
–Sellsadvertisingbasedon akeywordbiddingmodel 
–One of most successfulonlinecompaniestoday 
© Cengage Learning 2015 2
1 TheEvolutionofElectronic Commerce 
© Cengage Learning 2015 3 
•Electroniccommercehistory 
–Rapidgrowthfrom mid-1990sto2000 
–“Dot-com boom”()followedby “dot-combust” ( ) 
–2000to 2003:overlygloomy() news reports 
–2003:signsof newlife 
•Salesandprofitgrowthreturn 
•Electroniccommercegrowingata rapid pace 
•Electroniccommercebecomespartof general economy
TheEvolutionofElectronicCommerce 
© Cengage Learning 2015 4 
•Electroniccommercehistory(cont’d.) 
–2008generalrecession() 
•Electroniccommercehurt less thanmostof economy 
–From 2003to thepresent 
•Electroniccommerceexpandedmorein goodtimes andcontractedlessin badtimes
ElectronicCommerce() and ElectronicBusiness () 
© Cengage Learning 2015 5 
•Electroniccommerce 
–ShoppingontheWeb 
–Businessestradingwithotherbusinesses 
–Internalcompanyprocesses 
•Broaderterm:electronicbusiness(e-business) 
–IncludesallbusinessactivitiesusingInternet technologies 
•InternetandWorldWideWeb(Web) 
•Wirelesstransmissionson mobiletelephone networks 
•Dot-com(pure dot-com) 
–Businessesoperatingonlyonline
CategoriesofElectronicCommerce 
Thethreecategoriesthatare mostcommonlyusedare: 
•Business-to-consumer()(B2C): 
ConsumershoppingontheWeb 
•Business-to-business()(B2B):e- procurement 
–Transactionsconductedbetweenbusinessesonthe 
Web 
–Supplymanagement()orprocurement( ) departments 
•Negotiate purchasetransactions withsuppliers 
•Businessprocesses 
–Use of Internettechnologieswithinthe businessthat 
supportsellingandpurchasingactivities 
25
CategoriesofElectronicCommerce (cont’d.) 
© Cengage Learning 2015 7 
•Businessactivity():researchershavebeen 
studyingthewayspeoplebehave 
–Task performedby a workerinthe course of doinghis or her job 
–Improvejob performance andproductivity 
–May or maynotbe relatedto atransaction 
•Transaction() 
–Exchangeof value 
–Purchase,sale,orconversionofraw materials into 
finishedproduct 
–Involvesatleastonebusinessactivity
CategoriesofElectronicCommerce (cont’d.) 
© Cengage Learning 2015 8 
•Businessprocesses() 
–Groupoflogical,related,sequentialactivitiesand 
transactions 
–E.g.Transferringfunds,placingorders,sending invoices,andshippinggoodstocustomers 
•Webhelping peopleworkmoreeffectively 
–Telecommuting() or telework() 
–Workathome or fromotherlocations
RelativeSizeofElectronicCommerce Elements 
© Cengage Learning 2015 9 
•RoughapproximationshowninFigure1-1 
•Dollarvolumeand numberoftransactions 
–B2B much greater thanB2C 
•Numberoftransactions 
–SupportingbusinessprocessesgreaterthanB2Cand 
B2B combined
FIGURE1-1 Elementsof electroniccommerce() 
© Cengage Learning 2015 10
RelativeSize ofElectronicCommerce Elements(cont’d.) 
© Cengage Learning 2015 
30 
•Consumer-to-consumer()(C2C) 
–Individualsbuyingandsellingamongthemselves 
•Webauction site 
–C2CsalesincludedinB2Ccategory 
•Seller actsasa business (fortransaction purposes) 
•Business-to-government()(B2G) 
–Businesstransactions withgovernment agencies 
•Payingtaxes,filingrequiredreports
© Cengage Learning2015 
12 
FIGURE1-2Electroniccommercecategories()
© Cengage Learning2015 
13 
FIGURE1-2Electroniccommercecategories()
2 TheDevelopmentand Growthof ElectronicCommerce 
•Peopleengaging in commerce: 
–Adoptavailabletools andtechnologies 
•Internet 
–Changedway peoplebuy,sell,hire,andorganize businessactivities 
•ElectronicFundsTransfers()(EFTs) 
–AlsocalledWire transfers() 
–Electronictransmissionsofaccountexchange 
information 
•Usesprivatecommunicationsnetworks 
•E.g.,transfermoneybetweenbusinesses,payrolldeposit,paymentof mortgageloans 
33
TheDevelopmentand Growthof ElectronicCommerce(cont’d.) 
© Cengage Learning 2015 15 
•ElectronicDataInterchange()(EDI) 
–Business-to-businesstransmissionofcomputer- 
readabledata instandard format 
–Standardtransmittingformatsbenefits 
•Reduceserrors 
•Avoidsprintingandmailingcosts 
•Eliminatesneedto re-enterdata 
•Tradingpartners() 
–BusinessesengaginginEDI witheachother
TheDevelopmentand Growthof ElectronicCommerce(cont’d.) 
© Cengage Learning 2015 16 
•ProblemfacedbyEDIpioneers() 
–Highimplementationcost 
•Expensivecomputerhardwareandsoftware 
•Establishing directnetworkconnectionstotrading partnersorsubscribing to value-addednetwork(VAN) 
•Value-addednetwork()(VAN) 
–IndependentfirmofferingEDIconnectionand transaction-forwardingservices( ) 
•EDIcontinuestobea large portionofB2Belectronic 
commerce
The FirstWaveofElectronic Commerce,1995-2003 
Thefirstwave of electroniccommercewascharacterized byits rapid growth,oftencalleda “boom,”which wasfollowed bya rapid contraction, oftencalled a“bust.” 
•1997to 2000 
–Morethan 12,000Internetbusinessesbegun 
–Morethan5,000of theseInternetstart-upfirmswent outof 
business orwereacquiredinthedownturnthat beganin2000. 
•2000to 2003 
–$200 billion invested;investorsfearedofmissingthe 
moneymakingopportunity 
–Fueled online business activitygrowthrebirth 
•2008to 2009globaleconomicrecession() 
–Onlinesalesgrowthcontinued, butat aslower rate 
36
37 
© Cengage Learning2015 
FIGURE1-3Actual and estimatedglobalonlinesales in B2C and 
B2Bcategories(B2CB2B)
The SecondWaveofElectronic Commerce,2004-2009 
© Cengage Learning 2015 19 
•Electroniccommercefirstandsecondwave() 
characteristics 
–Regionalscope 
•First wave:UnitedStatesphenomenon()(web pageswereprimarilyinEnglish) 
•Second wave:expandinginternationalscope 
–Start-upcapital() 
•First wave:easy to obtain 
•Secondwave:companiesusing internalfunds 
–Internettechnologiesused 
•First wave:slowandinexpensive (especially B2C) 
•Secondwave:broadbandconnections
TheSecondWaveofElectronic Commerce,2004-2009(cont’d.) 
© Cengage Learning 2015 20 
•Firstand secondwavecharacteristics(cont’d.) 
–Electronicmail(e-mail)use 
•First wave:unstructured communication 
•Secondwave:integralpartof marketing,customercontactstrategies 
–Revenuesource 
•First wave:online advertising(failed) 
•Secondwave:Internetadvertising(moresuccessful)
TheSecondWaveofElectronic Commerce,2004-2009(cont’d.) 
•Firstand secondwavecharacteristics(cont’d.) 
–Digitalproductsales 
•First wave:fraughtwithdifficulties () 
–Themusicrecordingindustrywasunable,orunwilling,to devisea waytodistributedigitalmusicontheWeb. 
•Secondwave:supportslegaldistribution ontheWeb 
–Businessonlinestrategy 
•First wave:first-moveradvantage() 
•Secondwave:secondmousegetsthecheese 
•Web 2.0technologies 
–Users participateincreating andmodifyingcontent 
40
The ThirdWaveofElectronic Commerce 
© Cengage Learning 2015 
41 
•Factorsin thethirdwave 
–Emergenceofmobilecommerce 
•Smartphone()technologyandtablet computers ()havemadeInternetavailable everywhere 
•Ever-increasingnumberof peoplehaveaccessto the 
Internet 
–Criticalmass ofmobileusers with powerfuldevices 
•Thisgrowthisexpectedtobeespeciallydramaticinhighly populated countriessuch as China,India, and Brazil. 
–Widespreadparticipationinsocialnetworking 
•Oftenusedto promoteorsell goodsand services
TheThirdWaveofElectronic Commerce(cont’d.) 
•Factors (cont’d.) 
–Smallerbusinesses using Internetforsales,purchasing, and 
raisingcapital 
•Crowdsourcing(Websitesusedtogathermultiplesmall investorstogetherforspecificbusinessfundingactivitiesare calledcrowdsourcingsites.) 
–Analysis of largeamountsof collected customerdata 
•Bigdata:verylargestoresofinformationaboutthedetailed behaviorofcustomersastheynavigatethecompanyWebsite 
•Dataanalytics:sophisticatedtoolsforinvestigatingpatternsand knowledgecontainedin bigdata 
–Trackingtechnologiesintegratedinto B2B electronic commerce 
•RFID(radiofrequencyidentification)devices 
•Biometrictechnologies(),suchasfingerprint 
readersandretina()scanners 
42
FIGURE1-4 Keycharacteristics of thethreewavesof electroniccommerce() 
© Cengage Learning2015 
43
FIGURE1-4 Keycharacteristics of thefirst threewavesof electroniccommerce() 
25 
© CengageLearning2015
3 BusinessModels,Revenue Models, and BusinessProcesses 
26 
© CengageLearning2015 
•Businessmodel() 
–Set of processescombinedtoachievecompany’s 
primarygoal(typicallyprofit) 
•Electroniccommercefirstwave 
–InvestorssoughtInternet-drivenbusinessmodels 
•Expectationsofrapidsales growth,marketdominance 
–Successful“dot-com”businessmodelswere emulated() 
•MichaelPorterarguedbusiness modelsdid not exist
BusinessModels,RevenueModels, and BusinessProcesses (cont’d.) 
© Cengage Learning 2015 27 
•Instead ofcopyingmodel,examinebusiness 
elements 
–Streamline(),enhance,andreplacewithInternet technologydrivenprocesses 
•Revenuemodel()usedtoday 
–Specificcollectionofbusinessprocesses,used to 
•Identifycustomers 
•Markettothosecustomers 
•Generatesales 
–Classifyrevenue-generatingactivitiesfor communicationandanalysispurposes(tobe presentedinChapter3)
Focuson SpecificBusinessProcesses 
© Cengage Learning 2015 28 
•Examplesof businessprocesses 
–Purchasing rawmaterialsorgoods forresale 
–Convertingmaterialsandlaborinto finishedgoods 
–Managingtransportationandlogistics 
–Hiringandtrainingemployees 
–Managingbusiness finances 
•Identify processesbenefitingfrome- commerce technology 
–Productsthat buyerspreferto touch, smell,orexamine closelycan bedifficulttosell using electroniccommerce. 
•Internettechnologiesas a means tofacilitatebusiness processes
RoleofMerchandising 
© Cengage Learning 2015 29 
•Merchandising() 
–Combinationofstoredesign,layout,andproduct 
displayknowledge 
•Salespeopleskills 
–Identifycustomer needs 
•Findproductsor servicesmeetingneeds 
•Merchandising andpersonalselling 
–Difficult topracticeremotely 
•Web sitesuccess 
–Transfermerchandisingskillsto theWeb 
•Easier for someproductsthan others
Product/ProcessSuitability() to ElectronicCommerce 
© Cengage Learning 2015 30 
•Evaluating advantages/disadvantages ofelectronic 
commerce 
•E.g.BooksorCDsare goodcandidatesfor electronic commerce 
–Becauseonecopy ofanewbook is identicalto other copies 
•Suitability isdependentonavailabletechnologies’ currentstate 
–Changeas newe-commerce tools emerge
50 
FIGURE1-5 Business processsuitabilityto typeofcommerce() 
© Cengage Learning2015
Product/Process Suitabilityto ElectronicCommerce(cont’d.) 
© Cengage Learning 2015 
51 
•Commodityitem():well-suitedtoe- 
commerceselling 
–Productor servicehard todistinguishfromsame products orservicesprovidedbyothersellers 
–Features: standardizedandwellknown 
–Price:distinguishingfactor 
•Considerproduct’sshippingprofile () 
–Collectionof attributesaffecting how easilythat 
productcan be packagedanddelivered 
–Highvalue-to-weightratio() is desirable 
•makingtheoverallshipping cost asmall fraction
Product/Process Suitabilityto ElectronicCommerce(cont’d.) 
33 
•Easier-to-sellproductshave: 
–Strongbrandreputation(itreducesthebuyer’s 
concernsaboutquality) 
•Traditionalcommerce betterfor: 
–Productsrelyingon personalsellingskills 
–E.g.,Realestate:transactions involvinglarge amountsof 
moneyandahigh degreeofinterpersonal trust 
•Combinationofelectronicand traditional commerce strategiesbestwhen: 
–Businessprocess includesbothcommodityand 
personalinspectionaspects 
–E.g.,newandusedautomobiles:buyersdo research on specificmodelsbefore visitingadealershiptobuy
4 ElectronicCommerce:Opportunities, Cautionsand Concerns 
© Cengage Learning 2015 34 
•Businesses needtoexercisecautioninweighing 
risksand benefits ofonlinebusiness 
•Astechnologiesadvance: 
–Morebusinessesmay benefitfromelectronic commerce
OpportunitiesforElectronicCommerce 
© Cengage Learning 2015 35 
•Electroniccommercecanhelp increaseprofits 
–Increases sales 
•Geta smallfirm’spromotionalmessageouttopotential customersinother countries 
–Decreasesbusinesscosts 
•reachsmallgroupsofcustomersthat are geographically scattered 
•Virtual community() 
–Gathering of peopleonlineusingWeb2.0 technologies,sharinga common interest
•E-commercebuyeropportunities 
–Increases purchasingopportunities 
–Identifyingnewsuppliersandbusinesspartners 
–Efficiently obtainingcompetitivebidinformation 
•Easier tonegotiate price anddeliveryterms 
–Increases speed, informationexchangeaccuracy 
–Wider rangeof choicesavailable24 hours a day 
•Immediateaccessto prospectivepurchase information 
© Cengage Learning 2015 36 
OpportunitiesforElectronicCommerce (cont’d.)
OpportunitiesforElectronicCommerce (cont’d.) 
•Benefitsextendtogeneralwelfareofsociety() 
–Lowercoststoissueand secure: 
•Electronicpaymentsof taxrefunds 
•Publicretirement 
•Welfaresupport 
–Providesfaster transmission 
–Providesfraud(),theftlossprotection 
•Electronicpaymentseasier toaudit andmonitor 
–Telecommutingreducestraffic,pollution 
–Productsand servicesavailableinremote areas 
•Distancelearning:people canlearnskillsandearndegrees 
remotely 
56
ElectronicCommerce:CurrentBarriers 
© Cengage Learning 2015 38 
•Poor choicesforelectronic commerce 
–Perishable()foodsandhigh-cost,unique 
items 
•custom-designedjewelryarevery difficult to inspect 
•Fourbarriers 
–Needforcriticalmass ofcustomerswithappropriate technology 
–Unpredictabilityincostsandrevenues 
–Insufficienttoolsforhardwareand software 
integration 
–Culturalandlegalbarriers
5 Identifying ElectronicCommerce Opportunities 
© Cengage Learning 2015 39 
•Focusonspecificbusinessprocesses 
–Break businessdown 
–Seriesof value-addingactivities() that combineto meet firm’s goals 
•Businessactivitiesconductedby firmsofall sizes 
•Firm 
–Multiplebusinessunitsownedbya common set of shareholders 
•Industry() 
–Multiplefirmssellingsimilarproducts tosimilar customers
Strategic Business UnitValueChains 
© Cengage Learning 2015 59 
•Valuechain() 
–Organizingstrategicbusinessunitactivitiestodesign, produce, promote,market,deliver,andsupportthe products orservices 
–MichaelPorter includessupportingactivities 
•Humanresourcemanagementandpurchasing 
•Strategic businessunit(SBU)primaryactivities( ) 
–Identifycustomers,design,purchasematerials and supplies,manufacture product or createservice, market and sell,deliver,provideafter-saleservice and support
Strategic Business UnitValueChains (cont’d.) 
© Cengage Learning 2015 69 
•Importanceofprimaryactivitiesdependson: 
–Productor service 
–Customers 
•Centralcorporateorganizationsupportactivities( ) 
–Financeandadministration 
–Humanresource 
–Technologydevelopment
Primaryactivitiesperformedinastrategicbusinessunit 
e a 
cuAU 
rnt 
eaw 一 
指 
5 
e 
wF- 
. 
陀 PF 
evu--N 
UVO 
V•• 
N 
S- 
J 
, 
J 
況 
E 
' 
D 
E 
' 
, 
' 
, 
' 
, 
' 
, 
' 
, 
' 
,' 
' 
, 
' 
, 
' 
, 
' 
, 
', 
' 
, 
' 
, 
' 
,, 
,' 
' 
' 
, 
, 
' 
, 
d 
", J 
' 
J 
', 咽a, 
' 
, 
' 
', 
,' 
a 
', 
Manufactureproductor createservice 
Oesign 
一可「一 
、、 
、、• 
• 
Purchase 
materialsandsupplies 
、、 
、、 
、、 
、、 
、、 
、、 
4 
Market andsell 
Identify 
customers 
、、 
、、 
、、|斌、、、、、 
Oeliver 
-4 
, 
' 
,' 
,' 
,' 
,' 
,' 
' 
、﹒、,,﹒I ....,,,, 
..、、,, 1.' 
, 
、,、,、,:..".'.1." 、。川、1 
Supportingactivitiespe付。rmedbythecentralcorporate organization 
Financeandadministration activities 
Humanresource activities 
Technologydevelopmentactivities 
FIGURE1-9Valuechain forastrategicbusinessunit 
(策略事業體的價值鏈 ) 
61 
@CengageLearning2015
PrimaryActivitiesin ValueChains 
testing,andpackaging 
62 
•Design 
–Fromconcepttomanufacturing 
–Includingconceptresearch,engineering,andtestmarketing 
•Identifycustomers 
–Find newcustomersandnewwaystoserveexistingcustomers 
–Includingmarketresearchandcustomersatisfactionsurveys 
•Purchasematerialsandsupplies 
–Procurementactivities 
–Includingvendorselection,vendorqualification,negotiatinglong- termsupplycontracts,andmonitoringqualityandtimeliness 
•Manufactureproduct orcreateservice 
–Transformmaterialsandlaborintofinished products 
–Includingfabricating(),assembling(),finishing(),
PrimaryActivitiesin ValueChains (cont’d.) 
warranties,andreplacingparts 
63 
•Marketand sell 
–Givebuyersa waytopurchase 
–Including advertising,promoting,managingsalespeople, pricing,andmonitoringsalesanddistribution channels 
•Deliver 
–Store,distribute, and ship thefinal productor providetheservice 
–Includingwarehousing,handling materials,consolidatingfreight, selecting shippers, andmonitoringtimelinessofdelivery 
•Provide after-sale serviceandsupport 
–Promotea continuing relationship with thecustomer, including installing,testing, maintaining,repairing,fulfilling
SupportingActivitiesin ValueChains 
•Financeand administrationactivities 
–Providingthefirm’sbasicinfrastructure 
–Includingaccounting,borrowingfunds,reportingto governmentregulators,and ensuringcompliance 
•Humanresourceactivities 
–Coordinatingthemanagementof employees 
–Includingrecruiting,training, compensation, and managingbenefits 
•Technologydevelopmentactivities 
–Improving theproductor serviceand thebusiness 
processesineveryprimaryactivity 
–Includingresearchanddevelopment, process improvementstudies 
64
IndustryValueChains 
© Cengage Learning 2015 
65 
•Examinewherestrategicbusinessunit(SBU)fits 
•withinindustry 
•Porter’svaluesystem() 
–Describeslargeractivities stream intowhichparticular businessunit’svaluechainis embedded 
–Many subsequentresearchersuse Industry value chain () refersto valuesystems 
•Awarenessofbusinesses valuechainactivities 
–Allowsidentificationofnewopportunities 
–Usefulway tothink aboutgeneralbusinessstrategy
FIGURE1-10Industry valuechainfora strategicbusinessunit ( ) 
© Cengage Learning2015 
Eachbusinessunit (logger, sawmill, lumberyard,chair factory,retailer, consumer,andrecycler)shown 
To createanindustryvaluechain 
•Startwiththeinputsto yourstrategicbusiness unit(SBU) 
•Workbackward toidentify yoursuppliers’suppliers,andsoon 
•startwithyourcustomersand workforwardto identifyyourcustomers’customers,andsoon 
66
SWOTAnalysis:EvaluatingBusiness UnitOpportunities 
© Cengage Learning 2015 
67 
•DefineSWOT (strengths,weaknesses, 
opportunities,andthreats)(,,,) 
•Firstlookintobusinessunit 
–Identifystrengthsandweaknesses 
•Thenreviewoperatingenvironment 
–Identifyopportunitiesandthreatspresented 
•Takeadvantageofopportunities 
–Buildon strengths 
–Avoidthreats 
–Compensate()forweaknesses
68 
FIGURE1-11SWOTanalysisquestions 
(SWOT) 
© Cengage Learning2015 
Dell 
()
69 
FIGURE1-12Resultsof Dell’s SWOT analysis 
(SWOT) 
© Cengage Learning2015 
Dell 
(e.g.,HPand IBM)
6 InternationalNatureofElectronic Commerce 
•Internetconnectscomputersworldwide 
•Whencompaniesuse Webtoimprovebusiness process: 
–They automaticallyoperateinglobalenvironment 
•Thirdwave 
–RapidlyincreasingproportionoutsideUS 
–Countrieswithlargepopulationssuch asChina, India, andBrazilhaveseenenormousrecent growth 
© CengageLearning2015 
70
71 
FIGURE1-13Proportionofonline B2Csales bygeographic 
region,2013 
© Cengage Learning2015 
In2013,forthefirsttime,theUnitedStateswas notthe 
countrywiththehighest valueof B2C online sales
InternationalNatureofElectronic Commerce(cont’d.) 
© Cengage Learning 2015 53 
•Keyinternational commerceissues 
–Trust() 
–Culture() 
–Language() 
–Government () 
–Infrastructure()
TrustIssuesontheWeb 
© Cengage Learning 2015 54 
•Importanttoestablishtrustingrelationshipswith 
•customers 
•Companiescanrelyonestablishedbrandnames 
–Difficult for onlinebusinesses 
•Anonymity()existsin Webpresence 
–Bankingexample:browsingsite’spages 
•Difficult todeterminebanksize orhow wellestablished 
•Visitors will notbecomecustomersunless theytrust thecompany 
•Businessmustovercomedistrustin Web“strangers”
ClQntheInternet,ηobo句knowsyoulγeaaozf 
ThisclassiccartoonfromTheNewYorkerillustratesanonymityontheWeb 
74 
。CengageLeaming2015
LanguageIssues 
•Businessmustadapttolocalcultures 
–“Think globally, act locally” 
–Providelocal language versionsof Website 
•Customersmore likelyto buy fromsites inownlanguage 
[Researchersestimatedin2013] 
–25-55percent ofInternetcontent inEnglish 
–HalfofcurrentInternetusersdonotread English 
–By2015: 70%ofe-commercetransactionswill involve at least one partyoutsideof theUnitedStates 
–By2016: Chinesewill equalEnglishasthemost-used 
languageonline 
•Languagesmay requiremultipletranslations 
–Separatedialects(),e.g.Chinesehastwo main 
systemsof writing: simplifiedandtraditionalChinese 
75
LanguageIssues(cont’d.) 
•Large sitetranslationmaybecost-prohibitive() 
–Certainpagesmaybetranslated 
–Homepageshouldbetranslated into allsupported languages 
–Allfirst-level linksto home page 
•Highprioritypagestotranslate 
–Marketing,productinformation,establishingbrand 
•Usetranslationservicesandsoftware 
–Humantranslation:key marketing messages 
–Software (or machinetranslation):usedfortranslating routinetransaction-processingfunctions, translationis 
notperfectbut may be an acceptablealternative 
76
CulturalIssues 
58 
•Importantelementofbusinesstrust 
–Anticipating()howtheotherpartytoa 
•transaction willact in specificcircumstances 
•Culture 
–Combinationof language() andcustoms () 
–Variesacross nationalboundaries,regionswithin nations 
•Culturalissueexamples 
–VirtualVineyards()(nowWine.com) 
•packaging…
Case :ComplaintsfromCustomers in Japan 
59 
•VirtualVineyardssold mostof its wineincase(12bottles) or half-casequantities.Thus,tosaveonoperatingcosts, itstockedshippingmaterialsonlyin case,half-case, and two-bottlesizes. Afteran investigation,the company determinedthatmanyof itsJapanesecustomersordered onlyone bottleofwine,whichwas shippedin a two-bottle container.Tothese Japanesecustomers,whoconsider packagingto be animportantelementof ahigh-quality productsuch as wine,itwas inconceivable() that anyonewouldshipone bottle ofwineina two-bottle container.Theyweree-mailingto askwherethe other bottlewas, notwithstandingthe factthatthey had ordered onlyone bottle.
CulturalIssues (cont’d.) 
•Selecticonscarefully 
–Shoppingcart,baskets 
andtrolleys 
–Handsignalfor“OK”: obscene() gesture inBrazil 
•Dramaticculturalovertones 
–India:inappropriateto use cow imageincartoon 
–Muslimcountries:offended ()by humanarmsor legsuncovered 
–Whitecolor(purityversus death) 
–Japan:numberfour symbolizesdeath. 
•A Web pagethatisdividedinto foursegmentscan beoffensive toa Japanese visitor 
79
CulturalIssues (cont’d.) 
© Cengage Learning 2015 
80 
•Onlinebusinessapprehension() 
–Japanese shoppers’unwillingnesstopay bycredit card 
•Softbank() 
–Deviseda wayto introduce electroniccommerceto areluctant Japanese population 
–Createda joint venturewith7-Eleven,Yahoo!Japan, and Tohan(a majorJapanese bookdistributor) tosell books andCDsonline 
–Allowedcustomersto orderitemsontheInternet,andthenpickthemupandpayforthemincashat thelocal 7- Eleven conveniencestore 
–Byadding an intermediary()thatsatisfiedtheneedsoftheJapanesecustomer,Softbankwashighlysuccessful inbringingbusiness-to-consumerelectroniccommerceto Japan
Cultureand Government 
© CengageLearning2015 
•Onlinediscussioninhospitabletocultural 
environments 
•Governmentcontrolsin somecultures 
–Unfettered ()communicationnot desiredor consideredacceptable 
•Denounced()Internetmaterialcontent 
–UnrestrictedInternetaccess forbidden 
–Web contentfiltered 
–MonitorsISPrecords 
–Imposelanguagerequirements 
•In France,anadvertisementfora productor service mustbeinFrench. 
81
InfrastructureIssues 
© Cengage Learning 2015 
82 
•Internetinfrastructure,includes 
–ComputersandsoftwareconnectedtoInternet 
–Communicationsnetworks 
•Infrastructurevariationsand inadequaciesexist 
•TelecommunicationsindustryoutsideUnitedStates 
–Heavilyregulated,government-owned 
–Highlocaltelephoneconnectioncosts affectonline behavior 
•In countrieswhereInternetconnectioncosts are high, few businesspeoplewould spend timesurfingtheWebto shopfora product.
Infrastructure Issues (cont’d.) 
© Cengage Learning 2015 
83 
•International orders:globalproblem 
–Noprocesstohandleorder andpaperwork 
•Freightforwarder() 
–Arrangesinternationaltransactions’shippingand insurance 
•Customsbroker 
–Arrangestariff() payment andcompliance 
•Bondedwarehouse() 
–Securelocation 
–Holdsinternationalshipmentsuntilcustoms requirementsor paymentssatisfied
International 
84 
transaction (典型的國際貿易與交易流程 ) 
@CengageLearning 2015 
4一一一_freig圳 
carner 
,一 
j I 
Jl閏月用品i 
t 
hH 
nuo 
au 
rr 
st 
自uv 
cn 
Ur 
sa 
自M 
m 
O 
D 
戶LV 
þ 
一, 
lhl|e「S 
bank 
Customsbroker 
Customsoffice 
Buyer'sbank 
.‘ 
4一一一 一- 
l1li 
r噩噩噩噩矗重h 
輛警量i 
4由自由自由自由一 
司111 
Buyer(importer) 
Domesticfreight carner 
Portorbondedwarehouse 
þ 
一一+ 
Informationflow 
Physicalflow 
FIGURE1-14Partiesinvolvedinatypicalinternationaltrade
Infrastructure Issues (cont’d.) 
© Cengage Learning 2015 
85 
•Handlinginternationaltransactions paperwork 
–Industryexperts estimatethattheannualcostof 
handlingpaperworkforinternationaltransactions is 
$800billion. 
–Software automates somepaperwork 
•Countries haveownpaper-basedforms,procedures 
•Countrieshaveincompatiblecomputersystems
ELEVENTH EDITION 
ELECTRONIC 
COMMERCE 
GARYP.SCHNEIDER 
Chapter2 
TechnologyInfrastructure: 
TheInternetand theWorldWideWeb 
© CengageLearning2015
Introduction 
•AgrowingnumberofInternetusersare using 
smartphoneor tablet 
–Smartphonesis mostlikelyto be a user’sprimarymeans of accessingthe Internet. 
•HistoryofInternet-capablemobilephones 
–Firstintroducedinlate-1990s 
•Slow, unreliable service, no keyboards,lackedcolors 
–2001:Treo,Blackberryintroduced(includedkeyboards) 
–2009:Allmajor phonemanufacturersofferedarangeof 
smartphonesand Internet-capablemobilephones. 
–2011-2013:Lowerprice phonestargeteddeveloping markets. 
•Chinese phone manufacturerswereproducinglow-priced 
smartphonesfortheirdomesticmarket. 
3
1 TheInternetand the WorldWide Web 
©CengageLearning2015 6 
9 
•Computernetwork 
–Technologyallowingpeopletoconnectcomputers 
•Internet(capital“I”) 
–Interconnected globalcomputernetworks 
–Whichusesaspecificset of rulestoconnect 
•internet(small“i”) 
–Short for“interconnectednetwork 
–Groupof interconnectedcomputernetworks
TheInternetand the World Wide Web (cont’d.) 
©CengageLearning2015 7 
0 
•WorldWideWeb(Web,WWW) 
–SubsetofInternetcomputersthatare connectedto 
oneanother 
–Includeseasy-to-use interfaces 
•Easy to use theWebtoaccessa varietyof Internet 
resources. 
•Thischapterintroducebasictechnologystructure 
–The technologiessupports networks,theInternet,and 
e-commerce
Origins(起源) ofthe Internet 
7 
1 
•Early1960s 
–DefenseDepartment(國防部) nuclearattack(核彈攻 
擊) concerns 
•Todesign a worldwidenetworkthat could remain operational,evenifpartsofthenetworkweredestroyed 
–Leasedtelephonecompanylines 
•Single connectionbetweensender andreceiverforeach telephonecall 
–Singleconnectionrisk solution 
•Communicateusing multiplechannels(packets)
OriginsoftheInternet(cont’d.) 
•1969AdvancedResearchProjectsAgency(ARPA) 
–Packetnetwork connectedfourcomputers 
•ARPANET:earliest network(becametheInternet) 
•Academicresearchconnectedto theARPANET(1970s and1980s) 
•DefenseDepartmentnetwork:theoriginal goal 
–To control weaponssystems;transferresearchfiles 
7 
2 
ARPAnet(4-node)
NewUses fortheInternet 
7 
3 
•1970s:otheruses 
–E-mailwas born(1972), messagecouldbesentand 
received 
–Networkingtechnology 
•usersinthemilitaryandeducationresearch 
communitiescontinued togrow 
•Remotefiletransferandcomputeraccess 
•1979:Usenet(User’sNewsNetwork) 
–Readandpostarticles 
–They are calledNewsgroups(新聞群組)today
NewUses fortheInternet(cont’d.) 
© CengageLearning2015 7 
4 
•LimitedInternetuse 
–Limitedtoresearch andacademiccommunitieswho 
couldaccessthe networks 
•1979–1989 
–Networkapplicationsimprovedandtested 
–DefenseDepartment’snetworkingsoftware 
•Gainedwider academicandresearchinstitutionuse 
•Commoncommunicationsnetworkbenefit recognized 
–Securityproblemsrecognized(chapter10)
CommercialUse oftheInternet 
•1980s:personalcomputer(PC)useexplosion 
–PCbecamemore powerful,affordable,andavailable 
–CompaniesincreasinglyusedPCtoconstructtheir own internalnetworks 
–Otherindependentnetworkswere developed 
•Largerfirmsbuilttheirownnetworks(leased 
telephonelines) 
•1989:twocommerciale-mailserviceswerepermitted 
–NationalScienceFoundation(NSF) prohibited 
commercialnetworktrafficonitsnetworks 
–Businessesturnedtocommerciale-mailservice providers 
–Commercialenterprisescouldsende-mail 
10
Growthofthe Internet 
76 
•1991 
–NSFfurther easeditsrestrictions on commercial Internetactivityandbeganimplementingplansto privatizethe Internet 
•1995:privatization oftheInternet 
–Operations turnedover toprivatelyownedcompanies 
•Internetbasedonfournetworkaccesspoints (網路存取 點)(NAPs) 
•Networkaccessproviders 
–SellInternetaccess rightsdirectlytolargercustomers 
–Use Internetservice providers(網絡服務供應商 ) (ISPs) 
•Sell to smallerfirmsandindividuals
Growthofthe Internet(cont’d.) 
© CengageLearning2015 77 
•Internethosts(網絡主機): 
–computersdirectlyconnectedtotheInternet 
•Internetgrowth 
–One of the mostsignificanttechnologicalandsocial accomplishmentsof lastmillennium 
–Nearlyevery country involved 
–Usedby millionsofpeople
FIGURE2-1GrowthoftheInternet 
© CengageLearning2015 78
TheInternetofThings 
•DevicescanbeconnectedtotheInternet 
–Usedby computerstomanageautomatically 
environmentalconditions(heating,cooling,lighting) 
–Examples:opticalscanners,sensorsthatdetect changesintemperature,light 
–E.g.,acomputerthatmonitorsinventorylevelsusing sensors connectedto itover the Internetcan use its Internetconnectionto placeinventoryorderswitha vendor’scomputerautomatically. 
•TheInternetofthings 
–Term usedfor these connecteddevices 
–Estimatedsize is 9 billion(morethan peopleon Earth) 
14 
©CengageLearning2015
2 Packet-SwitchedNetworks 
•Localarea network(LAN)(區域網路) 
–Networkofcomputerslocatedclosetogether 
•Widearea networks(WANs)(廣域網路) 
–Networksofcomputersconnectedover greater distances 
•Circuit(線路) 
–Combinationof telephonelinesandclosedswitches (交換機) connectingthem to each other 
•Forma single electrical path betweencaller andreceiver 
•Circuitswitching(線路交換) 
–Centrallycontrolled,single-connectionmodel 
© CengageLearning201515
Packet-SwitchedNetworks(cont’d.) 
•Circuitswitching(cont’d.) 
–Workswellfortelephonecalls 
–Doesnotworkas wellfor: 
•Sending dataacrosslargeWANandinterconnected network(Internet) 
•Circuit-switchednetworkproblem 
–Connectedcircuitfailure 
•Causesinterruptedconnection anddata loss 
–(TheInternetwas designedtoberesistanttofailure.) 
•Solution 
–Packetswitching(分封交換):move data betweentwo 
points 
16
Packet-SwitchedNetworks(cont’d.) 
© CengageLearning2015 82 
•Packet-switchednetwork 
–Packets 
•Smallpieceslabeled electronically (origin, sequence, anddestinationaddress) 
•Travelalonginterconnectednetworks 
•Can take differentpaths 
–Destinationcomputer 
•Collectspackets 
•Reassemblesoriginalfile or e-mailmessage
RoutingPackets(路由封包) 
83 
•Routingcomputers(路由電腦) 
–Decidehowbesttoforwardeachpacket 
–Alsoknownas routers,gatewaycomputers, border routers 
•ActasthegatewayfromLAN orWANtoInternet 
•Located at theborderbetweenorganization andtheInternet 
•Routingalgorithms(路由演算) 
–Programson routingcomputers 
•Determinebest path forpacket 
•Specify whichconnectionsto usefirst 
•Havetherulesforhandling instances of heavypacket traffic
RoutingPackets(cont’d.) 
84 
•IndividualLANs and WANscanuseavarietyof 
•rulesand standardsforcreatingpackets 
•Hubs(集線器),switches(交換器),and bridges(路由 器) 
–Devicesthatmove packetsfromonepart of anetwork to another 
•Routers 
–Usedto connectnetworksto othernetworks 
–Translatepacketsintostandard format 
–Routersare an important partof theinfrastructure of the Internet
RoutingPackets(cont’d.) 
© CengageLearning2015 85 
•Internetbackbone(網絡骨幹) 
–Routers that handlepacket trafficalongthe Internet’s 
mainconnectingpoints 
–Routersandtelecommunicationlinesbetween Internet’smaincollectingpoints 
–alsocalledbackbonerouters
FIGURE2-2Router-basedarchitectureoftheInternet 
© CengageLearning2015 86
Publicand PrivateNetworks 
© CengageLearning2015 87 
•Publicnetwork() 
–Computernetworkortelecommunicationsnetwork 
thatis availableto the public(such as Internet) 
•Privatenetwork() 
–Private,leased-lineconnection 
–Physicallyconnectsintranetsto one another 
•Leasedline() 
–Permanenttelephoneconnectionbetweentwo points 
–Advantage:security 
–Drawback:cost(can be quite expensive)
VirtualPrivateNetwork(VPN) (虛 擬私有網絡) 
•Connectionvia publicnetworksand protocols 
–Protect dataas wellas privatenetwork 
•UsesIPtunneling(IP通道)or calledencapsulation 
–Privatepassagewaythrough publicInternet 
–Securetransmission 
•Encapsulation(打包) 
–VPNsoftware installedon both computers 
–Thepassagewayis created by VPNsoftware 
–Encrypts(加密)packetcontent;placesinsideanother 
packet 
•“Virtual”sinceconnectionseemspermanent 
–Actuallya temporary connection 
23 
(打包)
IntranetsandExtranets 
•Intranet() 
–Interconnectedprivatenetworks 
–Aninternetwithinthe boundariesof theorganization 
•Extranet() 
–Anintranetthathadbeenextendedtoincludespecific entitiesoutsidethe boundariesof theorganization (businesspartners, 
customers,or suppliers) 
© CengageLearning2015 
24
3 InternetProtocols () 
•Protocol():acollectionofrules for formatting,ordering,and error checkingdatasent acrossa network 
–Includestransmissionrules 
–Computers must use sameprotocol 
•Openarchitecture(開放架構)wasdevelopedfor ARPANET(laterbecamethecore oftheInternet) 
–Uses common protocolforallcomputers connectedto 
theInternet 
–Includeskey message-handlingrules 
–Contributedto theInternet’ssuccess 
25
TCP/IP 
©CengageLearning2015 
•TCP/IParetherulesthatgovernhowdatamovesthroughtheInternetandhownetworkconnectionsareestablishedandterminated 
•TransmissionControlProtocol (TCP)(傳輸控制協定) 
–Controlsmessageor filedisassemblyintopackets before Internettransmission 
–Controlspacket reassemblyintooriginalformatsat destinations 
•InternetProtocol(IP) (網絡控制協定) 
–Specifiesaddressingdetailsforeachpacket 
–Labelspacket withoriginationanddestination addresses 
26
IPAddressing 
© CengageLearning2015 
27 
•InternetProtocolversion4 (IPv4)(網絡通訊協定第四版) 
–Usedsince1981 
•IPaddress 
–32-bitnumberidentifyingcomputers 
•Base2 (binary)(二進制)numbersystem 
–Computers useforinternalcalculations 
–Digit:0or a1(on oroffcondition) 
–Fourbilliondifferentaddresses(232= 4,294,967,296) 
•Routerbreaksmessageintopackets 
–Containssource anddestinationIPaddress
IPAddressing(cont’d.) 
•IPv4 
–uses 32-bit(four-byte)addresses 
–limitsthe addressspace to 4,294,967,296(232) addresses 
–As addresseswere assignedtousers, the numberof unassignedaddressesdecreased 
Dotteddecimalnotation: 
-Fournumbersseparated 
-IPaddressesrange:0.0.0.0 
to 255.255.255.255 
© CengageLearning2015 
28
IPAddressing(cont’d.) 
•InternetProtocolversion6 (IPv6) 
–ReplacesIPv4 
•Addressespredictedto be exhaustedin2015 
–IPv4andIPv6notdirectlycompatible 
•Switching theInternetcompletelyoverto IPv6network 
•Torunbothprotocols in paralleloninterconnected networks 
•IPv6 majoradvantages 
–Uses 128-bitnumberforaddresses 
–Numberof availableaddresses:34 followedby37 zeros 
•Morecomplexnotationsystem 
29
ElectronicMailProtocols 
95 
•Electronicmail(e-mail)(電子郵件) 
–Formattedaccording tocommonset ofrules 
–Mostorganizationsuse aclient/server structure 
•E-mailserver (郵件伺服器) 
–Computerdevotedtoe-mailhandling 
–Stores,forwardse-mailmessages 
•E-mailclientsoftware (電子郵件終端軟體) 
–Readsandsendse-mail 
–Communicateswithe-mailserversoftware 
–ProgramsincludeMicrosoftOutlook 
•E-mailservicesofferedbyWebsites 
–E-mailserversandclients areoperatedbytheownersof theWeb sites 
–Such asYahoo! Mail,orGoogle’sGmail
WebPageRequestand Delivery Protocols 
•Webclientcomputers 
–Webclientsoftware/Webbrowsersoftware 
•SendsWebpagefile requeststo othercomputers(Webservers) 
•Popular Web browsersoftware includeGoogleChrome, MicrosoftInternetExplorer, andMozilla Firefox 
•Webservercomputer 
–Web server software 
•ReceivesrequestsfrommanydifferentWeb clients 
•respondsbysendingfilesback tothoseWeb clientcomputers 
•Webclientsoftwarerendersthosefiles intoa Webpage 
96
WebPageRequestand Delivery Protocols(cont’d.) 
•HypertextTransferProtocol (HTTP) 
–InternetWebpagefiledeliveryrules 
–Developedin1991 
•WebpagerequestusingWeb browser 
–User typesprotocolname 
•Followed by“://”charactersbeforethedomainname 
•Typehttp://www.yahoo.comto visit Yahoo!Website 
•Webbrowserstodayautomaticallyinsert the http:// 
–UniformResourceLocator(URL) 
•Combination:protocolname,domainname 
•Itlet user locatea resource(Web page)onanother 
computer(Web server) 
©CengageLearning2015 
32
4 Emergenceofthe WorldWideWeb 
98 
•Web 
–Software runningonInternet-connectedcomputers 
(at atechnologicallevel) 
–Generatesnetworktraffic 
•Websoftware:largestsingle trafficcategory 
•Outpaces(超越):e-mail,file transfers, andother datatransmissiontraffic 
•KeytechnologicalWeb elements 
–Hypertext 
–Graphicaluser interfaces
TheDevelopmentofHypertext 
99 
•1989:TimBerners-Lee 
–Proposedhypertextdevelopmentproject 
–Provideddata-sharingfunctionality 
–Developedthe codefor ahypertextserver program andmade it availableon theInternet. 
•Hypertextserver(超本文伺服器) 
–StoresHypertextMarkup Language(HTML) files 
•Webservers(網頁伺服器) 
–Hypertextservers usedontheWebtodaycalledweb 
servers
TheDevelopmentofHypertext(cont’d.) 
©CengageLearning2015 10 
0 
•HTML(HypertextMarkupLanguage,超本文標記語 
言) 
–HTMLis the languageused for thecreationof Web pages 
–Set ofcodes(tags)attachedtotext 
–Describesrelationshipsamongtext elements 
•Indicates which textispartof aheaderelement,whichtextispartof aparagraphelement,andwhichtextis partof anumberedlistelement 
•Hypertextlink(超本文連結)(hyperlink)(超連結) 
–Pointsto anotherlocation 
–Sameor anotherHTMLdocument
Graphical Interfacesfor Hypertext 
©CengageLearning2015 10 
1 
•Webbrowser(網頁瀏覽器) 
–Software,e.g.,InternetExplorerorFirefox 
–Users read(browse)HTMLdocuments 
–Move fromoneHTMLdocumentto another 
–Textformattedwithhypertextlinktagsinfile 
•Graphicaluserinterface (GUI)(圖形使用者介面) 
–Isa wayofpresentingprogramcontrol functionsand programoutputtousers andacceptingtheir input 
–Uses pictures,icons,andothergraphicalelements
TheWorldWideWeb 
•WorldWideWeb:Berners-Leecalledhissystemof 
hyperlinkedHTMLdocumentstheWorldWideWeb 
•Quick acceptanceinscientificresearchcommunity 
•1993:firstGUIprogram(Mosaic) 
–ReadHTML 
–UsedHTMLhyperlinksfor page-to-pagenavigation 
–FirstWebbrowserwidely availableforpersonal computers 
©CengageLearning2015 10 
2
TheWorldWideWeb (cont’d.) 
•EasywaytoaccessInternetinformation 
–Providedby functionalsystemofpagesconnectedby 
hypertextlinks 
–Profit-making potentialofferedby a worldwide network 
•NetscapeCommunicationsfoundedin 1994 
–NetscapeNavigatorWebbrowser(basedon Mosaic) 
–Microsoft:InternetExplorer(mostwidelyused) 
–Firefox:NetscapeNavigatordescendant 
•NumberofWebsites 
–Thenumberof Web siteshas growneven more 
rapidlythan theInternetitself 
38
FIGURE2-3GrowthoftheWorldWideWeb 
© Cengage Learning2015 
39
TheDeep Web (深度網頁) 
© CengageLearning2015 
40 
•SomeWebprovidesaccesstocustomizedWeb pagesthatare created inresponsetoaparticular user’squery 
–Pullcontent fromdatabases 
–Example:search for“onlinebusiness”bookon Amazon.com 
–QuerythedatabasesofinformationaboutbooksandcreateaWebpagethatisacustomizedresponsetoyoursearch 
•DeepWeb:information thatisstoredin databases and isaccessibletousersthroughWeb interfaces
DomainNames(網絡域名) 
•Dotteddecimalnotationdifficulttoremember 
•Domainnames 
–Sets ofwordsassignedto specificIP addresses 
•Therightmostpartof adomainnameisthemostgeneral. 
Eachpart ofthedomainnamebecomesmorespecificas youmoveto theleft. 
–Example:www.google.com 
•Containsthreepartsseparatedbyperiods(句點) 
–Top-leveldomain(頂級域名)(TLD):rightmostpart,includes: 
•Generictop-leveldomains((一般頂級域名)(gTLDs))— suchas.edu,.com,and.org 
•Countrydomains 
•Sponsoredtop-level domains(贊助頂級域名)(sTLD) 
–E.g.,.aerosTLDis sponsoredby anairtransportassociation 
41
FIGURE2-4Commonlyuseddomainnames 
©CengageLearning2015 
Individualcountriesarepermittedto maintaintheirown TLDs,whichtheirresidents 
10 
7 
canuse aloneor incombinationwithotherTLDs.
5 Markup Languagesand the Web 
© CengageLearning2015 10 
8 
•The mostimportantpartsofa Webpage 
–Thestructureofthepage,and thetextthatmakes up 
the mainpart of thepage 
–Storedinatext filethatis formatted,or markedup 
•Textmarkuplanguage 
–Specifiesset oftags insertedintotext 
–Markup tags (標記標籤) (tags):provideformatting instructionsWebclientunderstands 
•HTML 
–Mostcommonly usedWeb markuplanguage
HypertextMarkup Language 
© CengageLearning2015 10 
9 
•HTMLlinks 
–Hyperlinksoninterlinkedpagesforma “web”ofthose 
pages 
•Linear hyperlinkstructure 
–ReadsWeb pageinserialfashion 
–Works wellwhencustomerfillsout form 
•Hierarchicalhyperlinkstructure 
–Uses anintroductory page(homepage,startpage) 
linkingtootherpages 
–Sitemap often availableforhierarchicalsites 
–Good forleadingcustomers fromgeneralto specific
FIGURE2-8Linearvs. nonlinearpaths throughdocuments 
© CengageLearning2015 11 
0
FIGURE2-9Three 
commonWebpage organizationstructures 
11 
1 
© CengageLearning2015 
Aninvertedtree inwhichthe rootis at thetop andthe branchesare belowit
6 InternetConnectionOptions (網 絡連接選項) 
© CengageLearning2015 
47 
•Internet 
–Setofinterconnectednetworks 
–Organizations,families,andmobilephonesare connectedto theInternet in anumber of ways 
•Internetaccessproviders(IAPs) or Internetservice providers(ISPs) 
–ProvideInternet access toindividuals, businesses, other organizations 
–Offerseveralconnectionoptions
ConnectivityOverview 
© CengageLearning2015 
•Commonconnectionoptions 
–Voice-gradetelephone lines, varioustypes ofbroadband 
connections, leasedlines, wireless 
•Distinguishingfactor 
–Bandwidth(頻寬) 
•Amountofdatatravelingthroughcommunicationline perunitof 
time 
•Net bandwidth(淨頻寬) 
–Actualspeedinformationtravels 
–When fewpeople are competingforservicefromanISP,net 
bandwidthapproachesthe carrier’supperlimit. 
•Symmetricconnections(對稱式連線) 
–Providesamebandwidth in bothdirections(downloadand 
upload) 
48
ConnectivityOverview(cont’d.) 
© CengageLearning2015 49 
•Asymmetricconnections(非對稱式連線) 
–Providedifferentbandwidthsforeach direction 
•Upstreambandwidth(uploadbandwidth)(上傳頻寬) 
–Amountof informationfromuser tothe Internetina givenamount oftime 
•Downstreambandwidth(download,downlink bandwidth)(下載頻寬) 
–Amountof informationfromthe Internetto userina 
givenamountoftime
Voice-GradeTelephoneConnections 
© CengageLearning2015 59 
•Usedin earlydaysofWeb 
•Plain oldtelephoneservice(POTS) 
–Uses existingtelephonelines,analogmodem 
–Bandwidthbetween28and56Kbps 
–56 Kbpsis 56 kilobitsper secondor 56,000 bit/s
BroadbandConnections 
© CengageLearning2015 
•Broadband:connectionspeeds>200 Kbps 
–Asymmetricdigitalsubscriberline(ADSL) 
•UsesDSL protocolprovidingbroadbandrangeservice 
–High-speedDSL(HDSL) 
•Morethan 768Kbpssymmetricbandwidth 
–Cablemodems 
•Transmissionspeeds toserver:300Kbpsto 1.5Mbps 
•Thedownstreambandwidth canbeashighas10Mbps 
•Subscriberscompeteforshared resource,bandwidth varywiththenumberof subscribers 
51
Leased-LineConnections 
52 
•Moreexpensivetechnologies 
•Classifiedbyequivalentnumberoftelephonelines 
included 
–DS0(digitalsignalzero) 
•Carriesonedigitalsignal (56Kbps) 
–T1line(DS1) 
•Carries24DS0 lines(1.544Mbps) 
–T3 (DS3): 
•Offers44.736Mbps,equivalent of 30T1linesor760 DS0 lines 
•Largeorganizationsrequireveryhigh bandwidth mayuseT1or T3lines
WirelessConnections 
© CengageLearning2015 
53 
•Inruralareas,satellite microwavetransmissions 
madeconnectionstotheInternet 
–Downloadspeedsof 500 Kbps 
–Uploadhandledby POTS(Plainoldtelephone service) modemconnection 
•Today:POTS modemconnectionnotrequired 
–Use microwavetransmitterforuploads(150 Kbps) 
•Many wirelessnetworktypes now available 
–Internet-capablemobilephones,smartphones,game 
consoles,andnotebookcomputers
Personal AreaNetworks 
© CengageLearning2015 
•Personalarea networks(PANs)alsocalledpiconets 
(微型網絡) 
•Bluetooth(藍牙) 
–Designedforpersonaluse over shortdistances 
–Low-bandwidthtechnology(722 Kbps) 
–Usefulfortaskssuchaswirelesssynchronization( 同步)oflaptopcomputerswithdesktopcomputersandwirelessprintingfromlaptopsormobilephones 
–Advantages: 
•Devicesconsumeverylittlepower 
•Devicescan discover oneanotherandexchange 
informationautomatically 
54
WirelessEthernet(Wi-Fi) 
© CengageLearning2015 12 
0 
•Themostcommonwirelessconnectiontechnology 
foruseonLANsiscalledWi-Fi,alsocalled802.11n 
•Wirelessaccesspoint(WAP)(無線存取點) 
–A computer equippedwithaWi-Finetworkcard can communicatethrough a WAPbecomea partof aLAN 
–TransmitspacketsbetweenWi-Fi-equipped computersandother deviceswithinrange 
–Bandwidthof 450MBps 
–Rangeof500 feet
WirelessEthernet(cont’d.) 
© CengageLearning2015 12 
1 
•Capableofroaming(漫遊) 
–ShiftingfromoneWAPtoanother 
–Nouserintervention 
•Hotspots(熱點) 
–WAPsopentopublic 
–Someorganizations,includingairports, convention centers,and hotels,operate WAPs thatare opento the public
Mobile TelephoneNetworks 
© CengageLearning2015 12 
2 
•Shortmessageservice(SMS)(簡訊服務) 
–Sendand receiveshort textmessages 
•Third-generation(3G)(第三代)wirelesstechnology 
–2 Mbpsdownload/800Kbps uploadspeeds 
–Mostmobiletelephonenetworkstoday use oneof a 
seriesof3Gtechnologies 
•Fourth-generation(4G)(第四代)technology 
–These 4G technologiesofferdownloadspeedsup to 14 Mbps anduploadspeedsup to 8 Mbps. 
•Significancein mobilecommerce 
–Mosthandhelddeviceshavethe abilityto use either a mobiletelephonenetworkor alocallyavailable wirelessnetwork 
protocol
ELEVENTH EDITION 
ELECTRONIC 
COMMERCE 
GARYP.SCHNEIDER 
Chapter3 
Sellingon the Web 
© CengageLearning2015 
123
LearningObjectives 
© CengageLearning2015 1 
2 
4 
Inthischapter,you willlearn about: 
•Whata revenuemodel(營收模式)isand how companiesuse variousrevenuemodels 
•Howtocreateaneffectivebusinesspresence(商務 
形象)on theWeb 
•WhatfactorsenhanceWebsiteusability(網站實用 性) 
•Howcompaniesuse theWeb toconnectwith 
customers
1.RevenueModelsforOnline Business 
© CengageLearning2015 1 
2 
5 
•Webbusinessrevenue-generatingmodels 
–Webcatalog 
–Digitalcontent(fee-for-content) 
–Advertising-supported 
–Advertising-subscriptionmixed 
–Fee-based(Fee-for-TransactionRevenueModels, Fee-for-Service RevenueModels) 
•Samemodelcanworkforbothsaletypes 
–Business-to-consumer(B2C) 
–Business-to-business(B2B)
a)WebCatalogRevenueModels 
() 
© CengageLearning2015 1 
2 
6 
•Adaptedfrommail-order(郵購)orcatalog model(型 
錄模式) 
–Sellerestablishesbrandimage 
–Printedinformation mailedto prospectivebuyers 
•Ordersplacedbymailorphone 
•Expandstraditional model 
–Replacesor supplementsprintcatalogs 
–Ordersplacedthrough Web site 
–Creates additionalsalesoutletforexistingcompanies 
•EarlyyearsofeCommerce 
–Shoppersusedthe Webtoobtaininformationabout products andcompare prices andfeatures
WebCatalogRevenueModels(cont’d.) 
•Discountretailers 
–Some discountersbeganasretailoperationsonline, 
e.g.,Overstock.com 
–Traditionalretailers,were reluctantto implement onlinesales,nowusingWeb catalogrevenuemodel: Walmart 
•Multiplemarketingchannels(行銷通路) 
–Allowsmore customers tobe reachedat alowercost 
–Marketingchannelexamples 
•Physical stores 
•Websites 
•Mailedcatalogsornewspaperinsert 
5
Usingmultiplemarketingchannelsto reachthesamesetofcustomerscanbe an effectivestrategyforretailers. 
FIGURE3-1 Combiningmarketingchannels:tworetailerexamples 
1 
2 
8 
©CengageLearning2015
Mailedcatalogs(ornewspaper advertisinginserts)continuetobean effectivemarketingtool. 
FIGURE3-1 Combiningmarketingchannels:tworetailerexamples 
1 
2 
9 
©CengageLearning2015
WebCatalogRevenueModels(cont’d.) 
•Addingthepersonaltouch 
–Many apparel(服裝)sellersadaptedcatalogsales 
modelto Web 
–Displayclothingphotoscategorizedby type 
•Prices, sizes,colors, and tailoringdetails 
–Wantcustomers toexamineclothingonline 
•PlaceordersthroughWebsite 
–Somesites offeronlineWeb shoppingassistance,text andvideochat 
© CengageLearning2015 
8
WebCatalogRevenueModels(cont’d.) 
•Personalshopper(個人購物) 
–Anintelligentagentprogram thatlearnspreferences 
andmakes suggestions 
IBM's PersonalShopping 
IBM’sPersonalShoppingAssistantusesintelligentagenttechnologyto 
helptheInternetshopperortheInternetshopownertofindthedesired itemquicklywithouthavingtobrowsepageafterpageofthewrong merchandise.WiththePersonalShoppingAssistant,storesand merchandisearecustomizedastheintelligentagentlearnedtheshopper's preferencesashe/sheentersin anyon-linemallorstoresorlookingat specificmerchandise.Itcouldalsoarrangethemerchandisesothatthe items youlike themostarethefirstoneyousee.Finally,Personal ShoppingAssistantautomatesyourshoppingexperiencebyremindingyou toshopwhena birthday,ananniversaries,oritemthatison saleoccurred.
WebCatalogRevenueModels(cont’d.) 
•Virtual model() 
–Graphic imagebuiltfrom 
customermeasurements 
–Allowscustomers totry clothes 
© CengageLearning2015 
Someretailersreportthat thedollar amountof ordersplacedbycustomerswho usethevirtualmodelissignificantlyhigherthanotherorders. 
10
WebCatalogRevenueModels(cont’d.) 
© CengageLearning2015 
11 
•Problem:varyingcomputermonitorcolor settings 
–Itis difficultforcustomerstogetanaccurateideaof 
whatthe product’scolorwilllooklikewhenitarrives 
–Solutions:sendfabric swatch on requestand/oroffer generousreturnpolicies 
•Givesthe customera sense of thecolor andfabric’s 
texture 
•Allow customerstoreturnunused merchandiseforanyreason
b)Fee-for-Content RevenueModels 
•Firmsowningwritteninformationor informationrights 
–AdopttheWebas ahighlyefficientdistribution 
mechanism 
–Use the digitalcontentrevenuemodel 
•Sell rightsto access informationtheyown 
•Legal,academic,businessand technicalcontent 
–LexisNexis:offersvariety of informationservices for lawyers andlawenforcementofficials (執法人員) 
–Subscriptionsandindividual 
access rights toonlineacademicjournalsandother publications 
12
Fee-for-Content RevenueModels (cont’d.) 
•Academicinformationaggregationservices 
–Purchaseandresellrightsin subscriptionpackagesto schools,libraries,companies,andnot-for-profit institutions 
•DowJonesprovidesbusiness- focusedpublicationsonline 
–One of the firstpublishersto create aWeb site for sellingsubscriptionsto digitizednewspaper, magazine,andjournalcontent 
–Onlinecontentmanagementandintegrationservice:subscriptionstoindividualsforpurposesofbusinessresearch,jobsearches,orinvestmentanalysis 
© CengageLearning2015 
13
ElectronicBooks 
•Canbe read orlistenedto 
–Electronic bookscan bedisplayed onmobilephone andtablet deviceappsaswell as oncomputersusing the appropriatebookreadersoftware 
•Physicalandelectronicbookswillcoexistforyears 
–Amazon.comannounced in 2011itwasselling more 
electronicbooks than paperbooks. 
© CengageLearning2015 
14
OnlineMusic 
•Recordingindustryslowto embraceonlinedistributionof 
music 
–Digit productscan be easily copiedonce purchased 
•Largeststores:AmazonMP3,Apple’s iTunes, GooglePlay 
–Sellsinglesongs(tracks)forabouta dollareach 
–Sellalbumsatvariousprices(mostbetween$5and$12) 
•Subscriptionservicesto streammusic 
–Streammusicto yourdevicefora monthlyfeeratherthancharging forspecificsongsoralbums 
©Cen 
gageLearning2015 1 
5
OnlineMusic (cont’d.) 
–Firsttime in14 years 
16 
•Complications 
–Nosinglestoreoffersallmusic 
–Individualstorespromote their ownmusicfileformats 
•DigitalRightsManagement(DRM,數位版權管理) software 
–Onlinemusicsellersrequiredbuyers todownloadand 
install 
–Usedto limit the number ofcopiesthatcouldbe made of each audiofile 
•Musicindustry 
–Reportsincreasedsalesin2013(afteryears of sufferingdeclinesduetoillegalcopying)
OnlineVideo 
–Videodeliverytechnologiesbecomingtransparent 
17 
•Canbesold or rentedonline 
–Downloadedorstreamed 
•Pastlimitations 
–Largefilesize(makedownloadtimes longand streamingfeeds uneven) 
–Salesmight weakenother salesof thevideo 
–Technologicalbarriersarounddevices 
•Overcomingtheissues 
–Newtechnologiesimprovingdelivery 
–Companiesincorporatingonlinedistributioninto revenuestrategy
OnlineVideo(cont’d.) 
•Apple’siTunesserviceincludesvideoofferingsforrentorpurchaseinadditiontoitsmanyfreevideodownloads. 
•Netflix:offersonline accesstomoviesonitsWeb siteaspartofitsDVDrentalsubscriptionplans. 
•Google’sYouTubehasbecomea leading sourceof freevideosontheWeb. 
© CengageLearning2015 
18
c)Advertisingas a RevenueModel Element 
© CengageLearning2015 19 
•Advertisers’feesin placeofusers’subscriptions 
–The feeschargedareusedtosupporttheoperationof 
the Website 
•Advertising-supportedrevenuemodels 
–Usedby UnitedStatesbroadcast networktelevision 
•Providesfreeprogrammingandadvertising messages 
•Supportsnetworkoperationssufficiently
Advertising-SupportedRevenue Models(cont’d.) 
© CengageLearning2015 29 
•Onlineadvertisingchallenges 
–Difficultyofmeasuringandchargingsitevisitorviews 
•Multiple measurements:numberof visitors, numberofuniquevisitors, numberof click-throughs, orother attributesof visitorbehavior 
–Stickiness(黏著度) 
•Keeping visitorsatsite andattracting repeatvisitors 
•Peoplespend moretimeat astickyWebsiteand arethusexposedto moreadvertising
Advertising-SupportedRevenue Models(cont’d.) 
•Obtaininglargeadvertiserinterest 
–Requires demographicinformation(人口統計信息)collection 
(mostsuccessful advertisingistargetedat specificgroups) 
–demographicinformationincludes thingssuchasaddress, age, gender,incomelevel, typeof job,hobbies, and religion 
–Characteristics setused togroupvisitors 
•Canobtainlargeadvertiserinterestby: 
–Usinga specializedinformationWebsite 
•Drawa specialized audiencecertain advertiserswant 
toreach 
21 
©CengageLearning2015
己,一L歹三::Ll 、「、二, 包可‘ 
General intereststrategy 
Adve叫iserspaylowratestoreachlargenumbersofundi付erentiatedvisitors 
/z_2 r_J_.室主"-_,:_, 
Specificintereststrategy 
Advertiserspayhighratestoreachsmallnumbersofvisitorswithspecificinterestsrelatedtothetheme ofthesite 
日 
Collectionofspecificinterests 
Advertiserspayhighratesforadsonspecificpagesthat appealtovisitorswithspecificinterestsrelatedtothosepagesor sectionsofthesite 
FIGURE3-2Threestrategiesforanadve付ising-suppo付edrevenuemodel 
22 
。CengageLearning2015
Advertising-SupportedRevenue Models(cont’d.) 
•Webportals(portal)(入口網站) 
–Siteusedasa launchingpointtoentertheWeb 
•Almost alwaysincludes a search engineorWebdirectory() 
•Oftenincludes otherfeatures 
(shoppingdirectories,freee-mail, 
filestorageservices, andcalendartools.) 
015 
© CengageLearning2 
23
Advertising-SupportedRevenue Models(cont’d.) 
•Webdirectory() 
–Listof hyperlinks 
to Web pages 
© CengageLearning2015 
24
Advertising-SupportedRevenue Models(cont’d.) 
©CengageLearning2015 
5 
2 
•Travelportals 
•Allowsvisitorstospecifytraveldatesand destinations,andthen searches multiplesites tofind the bestairfares, car rentals,andhotelrooms. 
Itsells targeted advertisingspaceto companiesthatwantto reachtravelerswith travelplans
Advertising-SupportedNewspapers 
© CengageLearning2015 14 
8 
•Newspapersormagazinespublishonlineversionof 
printcontent 
–Selladvertisingtocover Web site costs 
–Newspaper’sWeb presence 
•Providesgreaterexposureandadvertisingaudience 
•Can divert(轉移)sales fromtheprintedition(experiencesalesloss)
Advertising-SupportedNewspapers (con’t) 
•Mixed-revenuemodel 
–Some contentfree,othercontentforpurchase 
–Paywall 
•Point at whichfeesbegin(avisitorcan access free content until hitting a wall,andthenmustpayto passoverthatwall) 
© CengageLearning2015 14 
9
Advertising-SupportedOnline ClassifiedAdSites 
15 
0 
•Targeted classifiedadvertisingsites 
–Can commandhigher ratesthangeneraladvertising 
–Each ad is placedina specificclassification andonly readersinterestedinthat typeof adwill readthat classification 
•Examples:Webemploymentadvertising 
–Mostsuccessful targetedclassifiedadvertisingcategory 
–CareerBuilder.com:Whena visitor specifies aninterest term,theresultspagecan include a targetedadforwhich anadvertiserwill paymorebecause it is directedataspecificmarketsegment 
–Monster.com:targetspecific categoriesof jobseekersbyincluding shortarticlesontopics of interest.
Advertising-SupportedOnline ClassifiedAdSites(cont’d.) 
©CengageLearning2015 29 
•Advertising-subscriptionmixedrevenuemodels 
–Subscriberspay feeandacceptsome advertising 
•Lessadvertisingthan advertising-supportedsites 
–Thesiteallowsnon-subscribingvisitors toviewthe classifiedads andcertain stories fromthe newspaper, butmostofthecontentis reserved forsubscribers whopay an annualfee foraccess to the site 
–Examples:TheWall StreetJournal,TheNewYork Times
FIGURE3-3Revenuemodelsusedby onlineeditionsofnewspapersand 
magazines 
© Cengage Learning2015 
©CengageLearning2015 39
d) Fee-for-TransactionRevenueModels (按交易收費的營收模 式) 
introduced 
31 
•Servicefeecharged 
–Basedontransactionnumberorsize 
•Websiteoffersvisitortransactioninformation 
–Personalservice formerly providedbya humanagent 
•Valuechain 
–Disintermediation() 
•Intermediary(humanagent)removedfroma valuechain 
•Thewebsitesprovideoptionsandexecutetransactions, thataremuchlessexpensivethantraditionaltransactionserviceproviders 
–Reintermediation() 
•Newintermediary(fee-for-transactionWeb site)
Fee-for-TransactionRevenueModels (cont’d.) 
salaries,overhead,andprintingor mailingcost) 
15 
4 
•Stockbrokeragefirms(股票經紀公司) 
–Originalfull-linebrokerschargedrelativelyhigh commissions(therates were set by a government agency) 
•Theydid not chargefortheadvices 
•Theycould not competeonprice, the best wayto 
competewas tooffermoreand betterinvestmentadvice 
–1990s:disintermediationdueto brokers faced competitionfromonlinefirms 
•Firmscan offerinvestmentadvice postedontheirWeb 
pages orsent ine-mailednewsletters 
•Without manyof thecostsof distributing theadvicethat traditional brokershadincurred(such asstockbroker
Fee-for-TransactionRevenueModels (cont’d.) 
•Insurancebrokers(保險經紀人) 
–Insurance companieswereslowtoofferpoliciesand 
investments forsaleonline 
–Quotesmith: 
•offeredInternetpolicy price quotesdirectly topublic 
(1996) 
•Independentinsuranceagents:disintermediated 
–ProgressiveWebsite: 
•Providesquotesforbothits insuranceproductandforitscompetitors’ products. 
© CengageLearning2015 15 
5
Fee-for-TransactionRevenueModels (cont’d.) 
© CengageLearning2015 15 
6 
•Eventtickets 
–Weballowsevent(concerts,shows,andsporting events) promotersto sellticketsfromonevirtual locationto customers worldwide 
–Onlineagenciesearn a feeon every ticketsold 
•Ticketmaster(example) 
–Web created secondaryticketmarket 
•Brokersconnecting ticket ownerswithbuyers 
•Earnfees onticketsresold for others,buyticket blocks 
–Web created easy-to-find central marketplace, facilitatingbuyer-sellernegotiations
ticketmaster 
SEARCH 
SearchResu包for"n、ePhantom01theOpera" (233) 
StYðurLoelUon 
Grest8ots;n(1-50of232) 
[......"1 
區王,rf'<lroOt1" 
lo阿IItio;fI 
011.1'‘﹒ 
e,ty 
1 的4斜的。(.r...,、", 
1111?Pll ntorn01tt.oeOPE"ra 
*****(: '. 
εve倫t 
-h.Ph制I)n:ftIItOptra 
;;刊, 
1111?們l."ltOO101tt.oeOPffil 
*****但也雪, 
。CengageLeaming2015
Fee-for-TransactionRevenueModels (cont’d.) 
•Onlinebankingand financial services 
–Financialservicesdonotinvolveaphysicalproduct 
–Easy toofferon Web 
–Slowtotake offduetoconcernsaboutsecurity 
–Since2010,thegeneralleveloftrustinonline 
serviceshas increased 
–About 84 percentof allU.S. householdsuse online bankingservicestoday 
© CengageLearning2015 
36
Fee-for-TransactionRevenueModels (cont’d.) 
•Onlinebankingand financial services (cont’d.) 
–Growingparticipationas servicesbecome more 
widelyavailable 
–Billpresentmentservice() 
•Providesanelectronicversionof an invoice orbilling statement(creditcardormobile phoneservicesstatement)withall of thedetails 
•Allowsto viewall ofthebills and payeach of themwith a single click 
–Accountaggregationtools() 
•Toobtain bank, investment,loan,andother financial accountinformationfrommultiple Websites and 
display it all in one location atthebank’sWebsite 
37
Fee-for-TransactionRevenueModels (cont’d.) 
© CengageLearning2015 
38 
•Travel 
–Travelagencyrevenuemodel:receivefeeforfacilitatingatransaction(airplaneticket,hotelreservation,autorental,orvacationpackage) 
–Travel sites generaterevenuethrough: 
•Commissions 
•Websiteadvertising fees(advertising-feerevenue model) 
–Theonlinetravelsites wereabletodisintermediate 
many traditionaltravel agencies 
•Theywereable tonegotiatebetterdealsonhotelrooms andairlineseatsthat theypurchasedforresale
Fee-for-TransactionRevenueModels (cont’d.) 
•Travel(cont’d.) 
–Populartravel Websites 
•Travelocity(based onSabrecomputersystemthat traditional travelagencies used tobookflightsand hotelrooms) 
arning2015 
© CengageLe 
39
Fee-for-TransactionRevenueModels (cont’d.) 
•Automobilesales 
–Websitesimplementthefee-for-transactionrevenue 
modeldifferently 
–Informationservice(Autobytel, Edmunds.com) 
•Theweb sites offeranindependentsource of information,reviews,andrecommendationsregarding auto makesandmodels;locate local dealers 
–Carsalesperson:disintermediated 
•Thefirmlocatesdealersinthebuyer’sareathat arewilling to sell the carspecified bythebuyer 
•Buyercanpurchase thecarwithout negotiatingwith a 
salesperson 
•Website: new intermediary(reintermediation) 
•Could reducethetransaction costsintheprocess 
40
Fee-for-TransactionRevenueModels (cont’d.) 
©CengageLearning2015 16 
3 
•Realestateandmortgageloans 
–Brokeragefirmsand individualrealestatebrokers 
featureonlineinformationon properties 
–Havinga strongonlinepresence, including informationaboutproperties,alongwithcontact informationforindividualbrokers affiliated 
–2008financialcrisis 
•Dramaticallyreducednumberof mortgagebrokersinbusiness 
•Somebrokersstillprovideinformationand takes 
mortgageloanapplicationsonline
e)Fee-for-ServiceRevenueModels 
©CengageLearning2015 16 
4 
•CompaniesofferWebservice 
–Fee basedonthevalueoftheserviceprovided 
•Not abroker service 
•Not basedontransactions-processednumberorsize 
•Onlinegames 
–Salesrevenuesource 
•Advertising (anolderconceptinthepast);pay-to-play forpremiumgames;subscription fees 
–Gamesdesignedto be playedon mobiledevices 
•Oneof thefastest growingsegments
Fee-for-ServiceRevenueModels (cont’d.) 
©CengageLearning2015 16 
5 
•Professionalservices 
–Medical,legalandotherprofessionalpractices 
•Patientsor clients mayset appointmentsandreceiveonline consultation 
•Concernsaboutprotecting the privacyof their patients 
orclientsonlinearise 
–Web sites offer generalhealthcare professionals 
•Havebeenreluctant tosell specificadvicesonline 
•Experiencing difficulty of diagnosing medical problems 
without a physicalexamination
FreeforMany,Feefora Few 
•Economics ofmanufacturing 
–Differentforphysicalanddigitalproducts 
–Unit costhighpercentageof physicalproducts 
–Unit costverysmallfordigitalproducts 
•Leadstoadifferentrevenuemodel 
–Offerbasicdigitproduct tomany for free 
–Chargea fee tosome for differentiated products 
•Examples:Yahooe-mailaccounts 
•Enhanced version:no advertisement,able to send large 
attachments,morestoragespace fortheire-mails. 
•Inverselogic applied tophysicalproducts: freesamplesto 
attract sales(cookie samples) 
44
2.Creating anEffectiveBusiness PresenceOnline 
•Organization’spresence 
–Publicimageconveyedtostakeholders(利害關係人) 
–Usuallynot importantor tendnot to worry 
•Until growthreachessignificantsize 
–Stakeholders 
•Customers,suppliers, employees,stockholders, neighbors, andgeneral public 
•EffectiveWeb presence 
–Criticaleven forsmallestandnewestWeboperating 
firms 
–Stakeholdersof aWebbusinessknowthe company onlythrough itsWebpresence 
45
IdentifyingWeb Presence (網站形象) Goals 
•Businessphysicalspace 
–Mustsatisfymany businessneeds 
•Convenientforcustomers,sufficientspaceandfeaturesto allow selling, balance inventorystoragespace andemployeeworkspace 
•Oftenfails to conveya good presence 
•Webbusinesssite 
–Intentionallycreates distinctive()presences 
–Good Web sitedistinctivedesignprovides: 
•Effective image-creation/ image-enhancingfeatures 
•Serveasa salesbrochure,aproductshowroom,afinancial report,anemploymentad,and acustomercontactpoint 
46
47 
FIGURE3-5 Webpresenceobjectivesandstrategies 
Objectives 
Strategies 
Attractingvisitors tothe Web site 
IncludelinkstotheWebsite(orspecificpages)inmarketinge- mails 
Makingthesiteinteresting enoughthatvisitorsstay andexplore 
Productreviews,comparison features,adviceon howto use a product orservice 
Convincingvisitorsto followthe site’slinksto obtaininformation 
Clearlylabeledlinksthatincludea hintof theinformationto be obtainedby followingthem 
Creatinganimpression consistentwiththe organization’sdesired image 
Usingestablishedbranding elementssuchas logos,characters usedinother advertisingmedia,or slogans
© CengageLearning2015 
48 
FIGURE3-5 Webpresenceobjectivesandstrategies 
Objectives 
Strategies 
Buildingatrusting relationshipwithvisitors 
Ensuringthe validityandobjectivity () ofinformationpresented on thesite 
Reinforcingpositive imagesthatthevisitor might alreadyhaveabout the organization 
Presentinginformationabout awards,linkstoexternalreviewsor articlesaboutthe organizationor its products andservices 
Encouragingvisitors to returnto thesite 
Featuringcurrentinformationabouttheorganizationoritsproductsandservicesthatisregularlyupdated
MakingWebPresenceConsistent withBrandImage 
•DifferentfirmsestablishdifferentWebpresence 
goals(eventhose in thesameindustry) 
•CocaColaWebsitepages 
–Usuallyincludetrustedcorporateimage(Coke bottle) 
–Image: traditionalpositionas a trustedclassic 
•PepsiWebsitepages 
–Hyperlinksto activities and product-relatedpromotions 
–Image: upstartproduct favored byyounger generation 
49
Not-For-ProfitOrganizations(非營利組織) 
communicationlinks to visitors 
50 
•Websites’ key goals 
–Informationdissemination() 
•Successfulsite key elements 
–Integrateinformationdissemination with fund-raisinginonelocation 
–Usually justone or twoclicks awayfroma pageoffering 
memberships 
–Providetwo-waycontactchannel 
•Websites usedto stay in touch withexistingstakeholders andidentifynewopportunitiesforservingthem 
•Politicalparties: 
–Offerinformationabout partypositionsonissues, recruitmembers,keepexisting membersinformed,andprovide
3.WebSiteUsability(網站實用性) 
© CengageLearning2015 
51 
•CurrentWeb presences 
–Few businessesaccomplishallgoals 
–Mostfail to providevisitorssufficientinteractive contactopportunities 
–ImprovingWeb presence 
•Accessibleto morepeople 
•Easier touse 
•Encouragevisitors’ trust 
•Fosterfeelingsof loyaltytowardtheorganization
HowtheWebIs Different 
17 
4 
•Simplemid-1990sWeb sites 
–Conveyedbasicbusinessinformation 
–Fewfirmsconductedmarketresearch 
–What kindsofthingspotential visitors mightwanttoobtain fromtheseWeb sites? 
–Fewfirmshade-mailaddresslinks on theirsites 
•Webobjectivesoftenunmet 
–Failure tounderstand howWebdiffersasa mediafor presence-building 
•Websites designedto createanorganization’spresence 
–Contain linksto standardinformationset(the organization’s history,mission statement,productsor services,financial information,andcontact) 
–Successdependentonhow thisinformationoffered
Meeting theNeeds ofWebSiteVisitors 
© CengageLearning2015 17 
5 
•SuccessfulWeb businesses: 
–Realizeevery visitoris a potentialcustomer(partner) 
•Challenge: 
–To meet allmotivationsofvisitors 
–Visitorsarrivewithdifferentneeds,experience,and 
expectationlevels 
–Problemsposedby thediversityof visitor characteristics,technologyissues (different Web browsersrunningondifferent devices,different bandwidths…)
Meeting theNeeds ofWebSiteVisitors (cont’d.) 
© CengageLearning2015 17 
6 
•VariedmotivationsofWebsitevisitors 
–Learningaboutcompany productsor services 
–Buyingproducts orservices 
–Obtainingwarranty,service, andrepairpolicy information 
–Obtaininggeneralcompanyinformation 
–Obtainingfinancialinformation 
–Identifyingpeople 
–Obtainingcontactinformation 
–Followinga linkintothe site whilesearchingfor informationabouta related product,service,or topic
MakingWebSitesAccessible (讓 網站容易親近) 
•Build interfaceflexibilityoptions 
–Text-onlyversion 
•Thebest ways toaccommodatea broadrangeof visitorneeds, including disabilities 
–Option toselectsmallergraphicimages 
–Choiceofstreamingmediaconnectiontype 
–User-specifiedinformationattributes 
•Controversial()Websitedesignissues 
–E.g.,AdobeFlashsoftware use 
•CreateanimatedgraphicelementsonWebpages 
•Flash files arelarge, takesa longtimeto download, nonstandardinterface, doesnot workonAppleiPhone 
oriPad 
55
MakingWebSitesAccessible(cont’d.) 
56 
FIGURE3-8AccessibilitygoalsforbusinessWebsites 
© CengageLearning2015 
BusinessWebsitesneedto: 
•Offereasilyaccessiblefactsabouttheorganization 
•Allowvisitorstoexperiencethesiteindifferentwaysandat differentlevels 
•Providevisitorswithameaningful,two-way(interactive) communicationlinkwiththeorganization 
•Sustainvisitor attentionandencouragereturnvisits 
•Offereasilyaccessibleinformationaboutproductsandservices andhowtousethem
Trustand Loyalty(信任與忠誠) 
Researchersfound thata 5% increaseincustomerloyalty (theproportionofreturningcustomers)canyieldprofit increasesof 25%to 80% 
•Sustainedgoodservice leadsto sellertrust 
–Delivery,orderhandling, help selectingproduct,and 
after-salesupport 
•Repeatedsatisfactory service buildscustomerloyalty 
•Customerserviceweaknesses 
–Lackof integration betweencall centersand Websites (thecustomerservice representativedoesnothaveinformationaboutWebtransactions) 
–Growingdisappointmentine-mailresponsiveness(slow to 
respond,neverresponse) 
57
UsabilityTesting() 
58 
•Usabilitytesting is the testing andevaluationof asite by 
itsownertoensureease ofuse forsitevisitors. 
•Recognizedimportanceof usabilitytesting 
–AvoidsWeb site difficulty and confusion 
•Customersleave sitewithoutbuyinganything 
–Simplesiteusabilitychanges 
•Includetelephonecontact information 
•Staffa call center 
–Learnaboutvisitorneedsby conductingfocusgroups 
(焦點團體) 
–Usabilitytesting cost 
•Low comparedto Website designcosts
Customer-Centric() Web SiteDesign 
© CengageLearning2015 
59 
•Importantpartofsuccessfulelectronic business 
operation 
•Focusonmeeting allsitevisitors’needs 
•Customer-centric()approach 
–Putting customeratcenterofallsitedesigns 
•Follow guidelinesandrecommendations 
•Makevisitors’Webexperiencesmoreefficient, effective, memorable 
•Givespecial considerationsformobiledevices
Customer-CentricWebSite Design 
60 
Guidelinesand recommendations 
•Design the sitearoundhow customerswillnavigatethe links. 
•Helpcustomersaccessinformationquickly. 
•Useconcise(簡潔)descriptive language ratherthaninflated(誇 大)marketingstatementsinproduct orservicedescriptions. 
•Avoid usingindustryjargon andspecializedterms. 
•Build thesite to workforvisitorswhoareusing older andslowerdevices. 
•Be consistent inuse of designfeaturesandcolorsthroughoutthesite. 
•Avoid Webpagedesign elementsthatlooklikebannerads. 
•Makesurethatnavigation controls areclearlylabeled. 
•Test textvisibility on arangeof monitorsizes. 
•Checkto makesure thatcolor combinationsdonot impairviewingclarity (清晰度)forcolor-blind visitors.
4.UsingtheWebto Connectwith Customers 
© CengageLearning2015 
61 
•Importantelementofa corporateWeb presence 
•Identifyand reachouttocustomers
TheNatureofCommunicationon the Web 
•Communicationmodes() 
–Personal contact (prospecting)model 
•Individually searchfor,qualify,andcontactpotential customers 
•Thisapproachis calledprospecting 
–Massmedia() 
•Prepareadvertisingandpromotionalmaterialsaboutthefirm 
anditsproductsorservices 
•Delivermessagesbybroadcastingontelevisionorradio, printingin newspapersormagazines,postingonhighway billboards 
•Internetmedium 
–CompaniesviewtheirWebsites as broadcasts 
–Provideindividualstheconvenienceof makingpersonal 
contacts 
62
Seller 
Massmedia 
One-to-many 
Sendsafewcarefullycraftedmessagestoall 
Thousandsormillionsofviewers,listeners,orreaders 
Seller 
VJ 
m 
m 
仔 
b 
m 
劃Mα 
w 仔 
ev 
wd 
h 
剖 叫 別 
TM 剖 m 
Personalcontact 
One-to-one 
Salesperson 
Information-seeking 
Websitevisitors 
Customerorprospect 
@CengageLearning2015 
O,j 
FIGURE3-9Businesscommunicationmodes
TheNatureofCommunicationon the Web(cont’d.) 
© CengageLearning2015 18 
6 
•Characteristics ofcommunicationmodes 
–Massmedia:one-to-many communicationmodel(一 
•對多傳播模式) 
•Seller is active; buyerispassive 
–Personalcontact:one-to-onecommunicationmodel 
•Interchangeinframeworkof existingtrust relationship 
–TheWeb:one-to-one,many-to-one, andmany-to- many communicationmodels 
•Buyerasactive participant in determininglength, depth, andscopeof search
Summary 
© CengageLearning2015 18 
7 
•Businessesareusingsix mainapproachesto generate revenueon theWeb,including:theWebcatalog,digital contentsales,advertising-supported,advertising- subscriptionmixed,fee-for-transaction,andfee-for- servicemodels. 
•Creatinganeffective Web presenceis criticalforthe 
firms operatingon theWeb. 
•CompaniescouldimprovetheirWeb presencesby makingtheirsitesaccessibleto morepeopleand easier to use. 
•Firmsmustunderstandthenatureofcommunicationon the Webso they can useitto identifyandreach the largestpossiblenumberof customersandqualified prospects.
Exercise 
© CengageLearning2015 
67 
•Assumeyouarelookingtobuya laptopcomputerto useatschool.Listfivefeatures orcharacteristics thatwouldbeimportantforyou tohave in sucha device.Usingyourlist,describetheadvantagesand disadvantagesofshoppingonline(instead ofin a physicalretailstore) for thelaptopcomputer.Asyou writeyouranswer,youmightfindithelpfulto considerwhichofyour desiredfeatures or characteristics wouldbeeasieror moredifficultto evaluatewhenshoppingonline.

Contenu connexe

Similaire à ECOMMERCE

Assessing the Digital Transformation Maturity of Motherboard Industry: A Fuzz...
Assessing the Digital Transformation Maturity of Motherboard Industry: A Fuzz...Assessing the Digital Transformation Maturity of Motherboard Industry: A Fuzz...
Assessing the Digital Transformation Maturity of Motherboard Industry: A Fuzz...
BOHR International Journal of Finance and Market Research
 
4BU017 Lecture Slides - Definition and Scope of Digital Business - 2021-22-1....
4BU017 Lecture Slides - Definition and Scope of Digital Business - 2021-22-1....4BU017 Lecture Slides - Definition and Scope of Digital Business - 2021-22-1....
4BU017 Lecture Slides - Definition and Scope of Digital Business - 2021-22-1....
Dibyesh1
 

Similaire à ECOMMERCE (20)

Introduction to Digital e-marketing management
Introduction to Digital e-marketing managementIntroduction to Digital e-marketing management
Introduction to Digital e-marketing management
 
1637 copy
1637   copy1637   copy
1637 copy
 
PPT01 - Dig Bus Ecomm Mgmt.pptx
PPT01 - Dig Bus  Ecomm Mgmt.pptxPPT01 - Dig Bus  Ecomm Mgmt.pptx
PPT01 - Dig Bus Ecomm Mgmt.pptx
 
E commerce unit 1
E  commerce unit 1E  commerce unit 1
E commerce unit 1
 
Top Technology Trends to Watch Out for in 2021
Top Technology Trends to Watch Out for in 2021Top Technology Trends to Watch Out for in 2021
Top Technology Trends to Watch Out for in 2021
 
Technology Trends 2014 - Alba Incubation Service
Technology Trends 2014 - Alba Incubation ServiceTechnology Trends 2014 - Alba Incubation Service
Technology Trends 2014 - Alba Incubation Service
 
Digital Transformation
Digital TransformationDigital Transformation
Digital Transformation
 
digital economy
digital economydigital economy
digital economy
 
Assessing the Digital Transformation Maturity of Motherboard Industry: A Fuzz...
Assessing the Digital Transformation Maturity of Motherboard Industry: A Fuzz...Assessing the Digital Transformation Maturity of Motherboard Industry: A Fuzz...
Assessing the Digital Transformation Maturity of Motherboard Industry: A Fuzz...
 
[2019] week06 electronic and mobile commerce
[2019] week06   electronic and mobile commerce[2019] week06   electronic and mobile commerce
[2019] week06 electronic and mobile commerce
 
Open Data … Open Wallonia
Open Data … Open WalloniaOpen Data … Open Wallonia
Open Data … Open Wallonia
 
4BU017 Lecture Slides - Definition and Scope of Digital Business - 2021-22-1....
4BU017 Lecture Slides - Definition and Scope of Digital Business - 2021-22-1....4BU017 Lecture Slides - Definition and Scope of Digital Business - 2021-22-1....
4BU017 Lecture Slides - Definition and Scope of Digital Business - 2021-22-1....
 
Digital transformation - the imperative to change: Presentation for Smart Di...
Digital transformation - the imperative to change:  Presentation for Smart Di...Digital transformation - the imperative to change:  Presentation for Smart Di...
Digital transformation - the imperative to change: Presentation for Smart Di...
 
Digital Transformation : Buzzword or Real Transformation
Digital Transformation : Buzzword or Real TransformationDigital Transformation : Buzzword or Real Transformation
Digital Transformation : Buzzword or Real Transformation
 
NSPCC: Embracing Risk for Digital Buy-In
NSPCC: Embracing Risk for Digital Buy-InNSPCC: Embracing Risk for Digital Buy-In
NSPCC: Embracing Risk for Digital Buy-In
 
DIGITAL & IoT: A TALE OF THE HAVES AND HAVE-MORES- McKinsey & Company
DIGITAL & IoT: A TALE OF THE HAVES AND HAVE-MORES- McKinsey & CompanyDIGITAL & IoT: A TALE OF THE HAVES AND HAVE-MORES- McKinsey & Company
DIGITAL & IoT: A TALE OF THE HAVES AND HAVE-MORES- McKinsey & Company
 
Ia
IaIa
Ia
 
eyefortransport 17th Annual Logistics CIO Forum - Opening address
eyefortransport 17th Annual Logistics CIO Forum - Opening addresseyefortransport 17th Annual Logistics CIO Forum - Opening address
eyefortransport 17th Annual Logistics CIO Forum - Opening address
 
Digital Transformation : Just a Buzzword or Real Transformation
Digital Transformation :  Just a Buzzword or Real TransformationDigital Transformation :  Just a Buzzword or Real Transformation
Digital Transformation : Just a Buzzword or Real Transformation
 
E-Commerce: Digital Markets, Digital Goods
E-Commerce: Digital Markets, Digital GoodsE-Commerce: Digital Markets, Digital Goods
E-Commerce: Digital Markets, Digital Goods
 

Dernier

Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in PakistanChallenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
vineshkumarsajnani12
 
Mckinsey foundation level Handbook for Viewing
Mckinsey foundation level Handbook for ViewingMckinsey foundation level Handbook for Viewing
Mckinsey foundation level Handbook for Viewing
Nauman Safdar
 

Dernier (20)

Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
 
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in PakistanChallenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
 
Lundin Gold - Q1 2024 Conference Call Presentation (Revised)
Lundin Gold - Q1 2024 Conference Call Presentation (Revised)Lundin Gold - Q1 2024 Conference Call Presentation (Revised)
Lundin Gold - Q1 2024 Conference Call Presentation (Revised)
 
PHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation Final
 
Falcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business GrowthFalcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business Growth
 
Falcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business PotentialFalcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business Potential
 
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All TimeCall 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
 
Chennai Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Av...
Chennai Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Av...Chennai Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Av...
Chennai Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Av...
 
Mckinsey foundation level Handbook for Viewing
Mckinsey foundation level Handbook for ViewingMckinsey foundation level Handbook for Viewing
Mckinsey foundation level Handbook for Viewing
 
New 2024 Cannabis Edibles Investor Pitch Deck Template
New 2024 Cannabis Edibles Investor Pitch Deck TemplateNew 2024 Cannabis Edibles Investor Pitch Deck Template
New 2024 Cannabis Edibles Investor Pitch Deck Template
 
Buy gmail accounts.pdf buy Old Gmail Accounts
Buy gmail accounts.pdf buy Old Gmail AccountsBuy gmail accounts.pdf buy Old Gmail Accounts
Buy gmail accounts.pdf buy Old Gmail Accounts
 
JAJPUR CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN JAJPUR ESCORTS
JAJPUR CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN JAJPUR  ESCORTSJAJPUR CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN JAJPUR  ESCORTS
JAJPUR CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN JAJPUR ESCORTS
 
Ooty Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Avail...
Ooty Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Avail...Ooty Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Avail...
Ooty Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Avail...
 
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60% in 6 Months
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60%  in 6 MonthsSEO Case Study: How I Increased SEO Traffic & Ranking by 50-60%  in 6 Months
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60% in 6 Months
 
HomeRoots Pitch Deck | Investor Insights | April 2024
HomeRoots Pitch Deck | Investor Insights | April 2024HomeRoots Pitch Deck | Investor Insights | April 2024
HomeRoots Pitch Deck | Investor Insights | April 2024
 
Pre Engineered Building Manufacturers Hyderabad.pptx
Pre Engineered  Building Manufacturers Hyderabad.pptxPre Engineered  Building Manufacturers Hyderabad.pptx
Pre Engineered Building Manufacturers Hyderabad.pptx
 
PARK STREET 💋 Call Girl 9827461493 Call Girls in Escort service book now
PARK STREET 💋 Call Girl 9827461493 Call Girls in  Escort service book nowPARK STREET 💋 Call Girl 9827461493 Call Girls in  Escort service book now
PARK STREET 💋 Call Girl 9827461493 Call Girls in Escort service book now
 
Falcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investorsFalcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investors
 
Uneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration PresentationUneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration Presentation
 
Lucknow Housewife Escorts by Sexy Bhabhi Service 8250092165
Lucknow Housewife Escorts  by Sexy Bhabhi Service 8250092165Lucknow Housewife Escorts  by Sexy Bhabhi Service 8250092165
Lucknow Housewife Escorts by Sexy Bhabhi Service 8250092165
 

ECOMMERCE

  • 1. ELEVENTH EDITION ELECTRONIC COMMERCE GARYP.SCHNEIDER Chapter1 IntroductiontoElectronicCommerce © Cengage Learning 2015 19
  • 2. Introduction •Late1990s:fewcompaniesdoingbuyingor selling online –Amazon,EBay establishingfootholds •1998:Google searchengine established –Providedmorerelevantsearch resultsthanexisting search engineWebsites –Sellsadvertisingbasedon akeywordbiddingmodel –One of most successfulonlinecompaniestoday © Cengage Learning 2015 2
  • 3. 1 TheEvolutionofElectronic Commerce © Cengage Learning 2015 3 •Electroniccommercehistory –Rapidgrowthfrom mid-1990sto2000 –“Dot-com boom”()followedby “dot-combust” ( ) –2000to 2003:overlygloomy() news reports –2003:signsof newlife •Salesandprofitgrowthreturn •Electroniccommercegrowingata rapid pace •Electroniccommercebecomespartof general economy
  • 4. TheEvolutionofElectronicCommerce © Cengage Learning 2015 4 •Electroniccommercehistory(cont’d.) –2008generalrecession() •Electroniccommercehurt less thanmostof economy –From 2003to thepresent •Electroniccommerceexpandedmorein goodtimes andcontractedlessin badtimes
  • 5. ElectronicCommerce() and ElectronicBusiness () © Cengage Learning 2015 5 •Electroniccommerce –ShoppingontheWeb –Businessestradingwithotherbusinesses –Internalcompanyprocesses •Broaderterm:electronicbusiness(e-business) –IncludesallbusinessactivitiesusingInternet technologies •InternetandWorldWideWeb(Web) •Wirelesstransmissionson mobiletelephone networks •Dot-com(pure dot-com) –Businessesoperatingonlyonline
  • 6. CategoriesofElectronicCommerce Thethreecategoriesthatare mostcommonlyusedare: •Business-to-consumer()(B2C): ConsumershoppingontheWeb •Business-to-business()(B2B):e- procurement –Transactionsconductedbetweenbusinessesonthe Web –Supplymanagement()orprocurement( ) departments •Negotiate purchasetransactions withsuppliers •Businessprocesses –Use of Internettechnologieswithinthe businessthat supportsellingandpurchasingactivities 25
  • 7. CategoriesofElectronicCommerce (cont’d.) © Cengage Learning 2015 7 •Businessactivity():researchershavebeen studyingthewayspeoplebehave –Task performedby a workerinthe course of doinghis or her job –Improvejob performance andproductivity –May or maynotbe relatedto atransaction •Transaction() –Exchangeof value –Purchase,sale,orconversionofraw materials into finishedproduct –Involvesatleastonebusinessactivity
  • 8. CategoriesofElectronicCommerce (cont’d.) © Cengage Learning 2015 8 •Businessprocesses() –Groupoflogical,related,sequentialactivitiesand transactions –E.g.Transferringfunds,placingorders,sending invoices,andshippinggoodstocustomers •Webhelping peopleworkmoreeffectively –Telecommuting() or telework() –Workathome or fromotherlocations
  • 9. RelativeSizeofElectronicCommerce Elements © Cengage Learning 2015 9 •RoughapproximationshowninFigure1-1 •Dollarvolumeand numberoftransactions –B2B much greater thanB2C •Numberoftransactions –SupportingbusinessprocessesgreaterthanB2Cand B2B combined
  • 10. FIGURE1-1 Elementsof electroniccommerce() © Cengage Learning 2015 10
  • 11. RelativeSize ofElectronicCommerce Elements(cont’d.) © Cengage Learning 2015 30 •Consumer-to-consumer()(C2C) –Individualsbuyingandsellingamongthemselves •Webauction site –C2CsalesincludedinB2Ccategory •Seller actsasa business (fortransaction purposes) •Business-to-government()(B2G) –Businesstransactions withgovernment agencies •Payingtaxes,filingrequiredreports
  • 12. © Cengage Learning2015 12 FIGURE1-2Electroniccommercecategories()
  • 13. © Cengage Learning2015 13 FIGURE1-2Electroniccommercecategories()
  • 14. 2 TheDevelopmentand Growthof ElectronicCommerce •Peopleengaging in commerce: –Adoptavailabletools andtechnologies •Internet –Changedway peoplebuy,sell,hire,andorganize businessactivities •ElectronicFundsTransfers()(EFTs) –AlsocalledWire transfers() –Electronictransmissionsofaccountexchange information •Usesprivatecommunicationsnetworks •E.g.,transfermoneybetweenbusinesses,payrolldeposit,paymentof mortgageloans 33
  • 15. TheDevelopmentand Growthof ElectronicCommerce(cont’d.) © Cengage Learning 2015 15 •ElectronicDataInterchange()(EDI) –Business-to-businesstransmissionofcomputer- readabledata instandard format –Standardtransmittingformatsbenefits •Reduceserrors •Avoidsprintingandmailingcosts •Eliminatesneedto re-enterdata •Tradingpartners() –BusinessesengaginginEDI witheachother
  • 16. TheDevelopmentand Growthof ElectronicCommerce(cont’d.) © Cengage Learning 2015 16 •ProblemfacedbyEDIpioneers() –Highimplementationcost •Expensivecomputerhardwareandsoftware •Establishing directnetworkconnectionstotrading partnersorsubscribing to value-addednetwork(VAN) •Value-addednetwork()(VAN) –IndependentfirmofferingEDIconnectionand transaction-forwardingservices( ) •EDIcontinuestobea large portionofB2Belectronic commerce
  • 17. The FirstWaveofElectronic Commerce,1995-2003 Thefirstwave of electroniccommercewascharacterized byits rapid growth,oftencalleda “boom,”which wasfollowed bya rapid contraction, oftencalled a“bust.” •1997to 2000 –Morethan 12,000Internetbusinessesbegun –Morethan5,000of theseInternetstart-upfirmswent outof business orwereacquiredinthedownturnthat beganin2000. •2000to 2003 –$200 billion invested;investorsfearedofmissingthe moneymakingopportunity –Fueled online business activitygrowthrebirth •2008to 2009globaleconomicrecession() –Onlinesalesgrowthcontinued, butat aslower rate 36
  • 18. 37 © Cengage Learning2015 FIGURE1-3Actual and estimatedglobalonlinesales in B2C and B2Bcategories(B2CB2B)
  • 19. The SecondWaveofElectronic Commerce,2004-2009 © Cengage Learning 2015 19 •Electroniccommercefirstandsecondwave() characteristics –Regionalscope •First wave:UnitedStatesphenomenon()(web pageswereprimarilyinEnglish) •Second wave:expandinginternationalscope –Start-upcapital() •First wave:easy to obtain •Secondwave:companiesusing internalfunds –Internettechnologiesused •First wave:slowandinexpensive (especially B2C) •Secondwave:broadbandconnections
  • 20. TheSecondWaveofElectronic Commerce,2004-2009(cont’d.) © Cengage Learning 2015 20 •Firstand secondwavecharacteristics(cont’d.) –Electronicmail(e-mail)use •First wave:unstructured communication •Secondwave:integralpartof marketing,customercontactstrategies –Revenuesource •First wave:online advertising(failed) •Secondwave:Internetadvertising(moresuccessful)
  • 21. TheSecondWaveofElectronic Commerce,2004-2009(cont’d.) •Firstand secondwavecharacteristics(cont’d.) –Digitalproductsales •First wave:fraughtwithdifficulties () –Themusicrecordingindustrywasunable,orunwilling,to devisea waytodistributedigitalmusicontheWeb. •Secondwave:supportslegaldistribution ontheWeb –Businessonlinestrategy •First wave:first-moveradvantage() •Secondwave:secondmousegetsthecheese •Web 2.0technologies –Users participateincreating andmodifyingcontent 40
  • 22. The ThirdWaveofElectronic Commerce © Cengage Learning 2015 41 •Factorsin thethirdwave –Emergenceofmobilecommerce •Smartphone()technologyandtablet computers ()havemadeInternetavailable everywhere •Ever-increasingnumberof peoplehaveaccessto the Internet –Criticalmass ofmobileusers with powerfuldevices •Thisgrowthisexpectedtobeespeciallydramaticinhighly populated countriessuch as China,India, and Brazil. –Widespreadparticipationinsocialnetworking •Oftenusedto promoteorsell goodsand services
  • 23. TheThirdWaveofElectronic Commerce(cont’d.) •Factors (cont’d.) –Smallerbusinesses using Internetforsales,purchasing, and raisingcapital •Crowdsourcing(Websitesusedtogathermultiplesmall investorstogetherforspecificbusinessfundingactivitiesare calledcrowdsourcingsites.) –Analysis of largeamountsof collected customerdata •Bigdata:verylargestoresofinformationaboutthedetailed behaviorofcustomersastheynavigatethecompanyWebsite •Dataanalytics:sophisticatedtoolsforinvestigatingpatternsand knowledgecontainedin bigdata –Trackingtechnologiesintegratedinto B2B electronic commerce •RFID(radiofrequencyidentification)devices •Biometrictechnologies(),suchasfingerprint readersandretina()scanners 42
  • 24. FIGURE1-4 Keycharacteristics of thethreewavesof electroniccommerce() © Cengage Learning2015 43
  • 25. FIGURE1-4 Keycharacteristics of thefirst threewavesof electroniccommerce() 25 © CengageLearning2015
  • 26. 3 BusinessModels,Revenue Models, and BusinessProcesses 26 © CengageLearning2015 •Businessmodel() –Set of processescombinedtoachievecompany’s primarygoal(typicallyprofit) •Electroniccommercefirstwave –InvestorssoughtInternet-drivenbusinessmodels •Expectationsofrapidsales growth,marketdominance –Successful“dot-com”businessmodelswere emulated() •MichaelPorterarguedbusiness modelsdid not exist
  • 27. BusinessModels,RevenueModels, and BusinessProcesses (cont’d.) © Cengage Learning 2015 27 •Instead ofcopyingmodel,examinebusiness elements –Streamline(),enhance,andreplacewithInternet technologydrivenprocesses •Revenuemodel()usedtoday –Specificcollectionofbusinessprocesses,used to •Identifycustomers •Markettothosecustomers •Generatesales –Classifyrevenue-generatingactivitiesfor communicationandanalysispurposes(tobe presentedinChapter3)
  • 28. Focuson SpecificBusinessProcesses © Cengage Learning 2015 28 •Examplesof businessprocesses –Purchasing rawmaterialsorgoods forresale –Convertingmaterialsandlaborinto finishedgoods –Managingtransportationandlogistics –Hiringandtrainingemployees –Managingbusiness finances •Identify processesbenefitingfrome- commerce technology –Productsthat buyerspreferto touch, smell,orexamine closelycan bedifficulttosell using electroniccommerce. •Internettechnologiesas a means tofacilitatebusiness processes
  • 29. RoleofMerchandising © Cengage Learning 2015 29 •Merchandising() –Combinationofstoredesign,layout,andproduct displayknowledge •Salespeopleskills –Identifycustomer needs •Findproductsor servicesmeetingneeds •Merchandising andpersonalselling –Difficult topracticeremotely •Web sitesuccess –Transfermerchandisingskillsto theWeb •Easier for someproductsthan others
  • 30. Product/ProcessSuitability() to ElectronicCommerce © Cengage Learning 2015 30 •Evaluating advantages/disadvantages ofelectronic commerce •E.g.BooksorCDsare goodcandidatesfor electronic commerce –Becauseonecopy ofanewbook is identicalto other copies •Suitability isdependentonavailabletechnologies’ currentstate –Changeas newe-commerce tools emerge
  • 31. 50 FIGURE1-5 Business processsuitabilityto typeofcommerce() © Cengage Learning2015
  • 32. Product/Process Suitabilityto ElectronicCommerce(cont’d.) © Cengage Learning 2015 51 •Commodityitem():well-suitedtoe- commerceselling –Productor servicehard todistinguishfromsame products orservicesprovidedbyothersellers –Features: standardizedandwellknown –Price:distinguishingfactor •Considerproduct’sshippingprofile () –Collectionof attributesaffecting how easilythat productcan be packagedanddelivered –Highvalue-to-weightratio() is desirable •makingtheoverallshipping cost asmall fraction
  • 33. Product/Process Suitabilityto ElectronicCommerce(cont’d.) 33 •Easier-to-sellproductshave: –Strongbrandreputation(itreducesthebuyer’s concernsaboutquality) •Traditionalcommerce betterfor: –Productsrelyingon personalsellingskills –E.g.,Realestate:transactions involvinglarge amountsof moneyandahigh degreeofinterpersonal trust •Combinationofelectronicand traditional commerce strategiesbestwhen: –Businessprocess includesbothcommodityand personalinspectionaspects –E.g.,newandusedautomobiles:buyersdo research on specificmodelsbefore visitingadealershiptobuy
  • 34. 4 ElectronicCommerce:Opportunities, Cautionsand Concerns © Cengage Learning 2015 34 •Businesses needtoexercisecautioninweighing risksand benefits ofonlinebusiness •Astechnologiesadvance: –Morebusinessesmay benefitfromelectronic commerce
  • 35. OpportunitiesforElectronicCommerce © Cengage Learning 2015 35 •Electroniccommercecanhelp increaseprofits –Increases sales •Geta smallfirm’spromotionalmessageouttopotential customersinother countries –Decreasesbusinesscosts •reachsmallgroupsofcustomersthat are geographically scattered •Virtual community() –Gathering of peopleonlineusingWeb2.0 technologies,sharinga common interest
  • 36. •E-commercebuyeropportunities –Increases purchasingopportunities –Identifyingnewsuppliersandbusinesspartners –Efficiently obtainingcompetitivebidinformation •Easier tonegotiate price anddeliveryterms –Increases speed, informationexchangeaccuracy –Wider rangeof choicesavailable24 hours a day •Immediateaccessto prospectivepurchase information © Cengage Learning 2015 36 OpportunitiesforElectronicCommerce (cont’d.)
  • 37. OpportunitiesforElectronicCommerce (cont’d.) •Benefitsextendtogeneralwelfareofsociety() –Lowercoststoissueand secure: •Electronicpaymentsof taxrefunds •Publicretirement •Welfaresupport –Providesfaster transmission –Providesfraud(),theftlossprotection •Electronicpaymentseasier toaudit andmonitor –Telecommutingreducestraffic,pollution –Productsand servicesavailableinremote areas •Distancelearning:people canlearnskillsandearndegrees remotely 56
  • 38. ElectronicCommerce:CurrentBarriers © Cengage Learning 2015 38 •Poor choicesforelectronic commerce –Perishable()foodsandhigh-cost,unique items •custom-designedjewelryarevery difficult to inspect •Fourbarriers –Needforcriticalmass ofcustomerswithappropriate technology –Unpredictabilityincostsandrevenues –Insufficienttoolsforhardwareand software integration –Culturalandlegalbarriers
  • 39. 5 Identifying ElectronicCommerce Opportunities © Cengage Learning 2015 39 •Focusonspecificbusinessprocesses –Break businessdown –Seriesof value-addingactivities() that combineto meet firm’s goals •Businessactivitiesconductedby firmsofall sizes •Firm –Multiplebusinessunitsownedbya common set of shareholders •Industry() –Multiplefirmssellingsimilarproducts tosimilar customers
  • 40. Strategic Business UnitValueChains © Cengage Learning 2015 59 •Valuechain() –Organizingstrategicbusinessunitactivitiestodesign, produce, promote,market,deliver,andsupportthe products orservices –MichaelPorter includessupportingactivities •Humanresourcemanagementandpurchasing •Strategic businessunit(SBU)primaryactivities( ) –Identifycustomers,design,purchasematerials and supplies,manufacture product or createservice, market and sell,deliver,provideafter-saleservice and support
  • 41. Strategic Business UnitValueChains (cont’d.) © Cengage Learning 2015 69 •Importanceofprimaryactivitiesdependson: –Productor service –Customers •Centralcorporateorganizationsupportactivities( ) –Financeandadministration –Humanresource –Technologydevelopment
  • 42. Primaryactivitiesperformedinastrategicbusinessunit e a cuAU rnt eaw 一 指 5 e wF- . 陀 PF evu--N UVO V•• N S- J , J 況 E ' D E ' , ' , ' , ' , ' , ' ,' ' , ' , ' , ' , ', ' , ' , ' ,, ,' ' ' , , ' , d ", J ' J ', 咽a, ' , ' ', ,' a ', Manufactureproductor createservice Oesign 一可「一 、、 、、• • Purchase materialsandsupplies 、、 、、 、、 、、 、、 、、 4 Market andsell Identify customers 、、 、、 、、|斌、、、、、 Oeliver -4 , ' ,' ,' ,' ,' ,' ' 、﹒、,,﹒I ....,,,, ..、、,, 1.' , 、,、,、,:..".'.1." 、。川、1 Supportingactivitiespe付。rmedbythecentralcorporate organization Financeandadministration activities Humanresource activities Technologydevelopmentactivities FIGURE1-9Valuechain forastrategicbusinessunit (策略事業體的價值鏈 ) 61 @CengageLearning2015
  • 43. PrimaryActivitiesin ValueChains testing,andpackaging 62 •Design –Fromconcepttomanufacturing –Includingconceptresearch,engineering,andtestmarketing •Identifycustomers –Find newcustomersandnewwaystoserveexistingcustomers –Includingmarketresearchandcustomersatisfactionsurveys •Purchasematerialsandsupplies –Procurementactivities –Includingvendorselection,vendorqualification,negotiatinglong- termsupplycontracts,andmonitoringqualityandtimeliness •Manufactureproduct orcreateservice –Transformmaterialsandlaborintofinished products –Includingfabricating(),assembling(),finishing(),
  • 44. PrimaryActivitiesin ValueChains (cont’d.) warranties,andreplacingparts 63 •Marketand sell –Givebuyersa waytopurchase –Including advertising,promoting,managingsalespeople, pricing,andmonitoringsalesanddistribution channels •Deliver –Store,distribute, and ship thefinal productor providetheservice –Includingwarehousing,handling materials,consolidatingfreight, selecting shippers, andmonitoringtimelinessofdelivery •Provide after-sale serviceandsupport –Promotea continuing relationship with thecustomer, including installing,testing, maintaining,repairing,fulfilling
  • 45. SupportingActivitiesin ValueChains •Financeand administrationactivities –Providingthefirm’sbasicinfrastructure –Includingaccounting,borrowingfunds,reportingto governmentregulators,and ensuringcompliance •Humanresourceactivities –Coordinatingthemanagementof employees –Includingrecruiting,training, compensation, and managingbenefits •Technologydevelopmentactivities –Improving theproductor serviceand thebusiness processesineveryprimaryactivity –Includingresearchanddevelopment, process improvementstudies 64
  • 46. IndustryValueChains © Cengage Learning 2015 65 •Examinewherestrategicbusinessunit(SBU)fits •withinindustry •Porter’svaluesystem() –Describeslargeractivities stream intowhichparticular businessunit’svaluechainis embedded –Many subsequentresearchersuse Industry value chain () refersto valuesystems •Awarenessofbusinesses valuechainactivities –Allowsidentificationofnewopportunities –Usefulway tothink aboutgeneralbusinessstrategy
  • 47. FIGURE1-10Industry valuechainfora strategicbusinessunit ( ) © Cengage Learning2015 Eachbusinessunit (logger, sawmill, lumberyard,chair factory,retailer, consumer,andrecycler)shown To createanindustryvaluechain •Startwiththeinputsto yourstrategicbusiness unit(SBU) •Workbackward toidentify yoursuppliers’suppliers,andsoon •startwithyourcustomersand workforwardto identifyyourcustomers’customers,andsoon 66
  • 48. SWOTAnalysis:EvaluatingBusiness UnitOpportunities © Cengage Learning 2015 67 •DefineSWOT (strengths,weaknesses, opportunities,andthreats)(,,,) •Firstlookintobusinessunit –Identifystrengthsandweaknesses •Thenreviewoperatingenvironment –Identifyopportunitiesandthreatspresented •Takeadvantageofopportunities –Buildon strengths –Avoidthreats –Compensate()forweaknesses
  • 49. 68 FIGURE1-11SWOTanalysisquestions (SWOT) © Cengage Learning2015 Dell ()
  • 50. 69 FIGURE1-12Resultsof Dell’s SWOT analysis (SWOT) © Cengage Learning2015 Dell (e.g.,HPand IBM)
  • 51. 6 InternationalNatureofElectronic Commerce •Internetconnectscomputersworldwide •Whencompaniesuse Webtoimprovebusiness process: –They automaticallyoperateinglobalenvironment •Thirdwave –RapidlyincreasingproportionoutsideUS –Countrieswithlargepopulationssuch asChina, India, andBrazilhaveseenenormousrecent growth © CengageLearning2015 70
  • 52. 71 FIGURE1-13Proportionofonline B2Csales bygeographic region,2013 © Cengage Learning2015 In2013,forthefirsttime,theUnitedStateswas notthe countrywiththehighest valueof B2C online sales
  • 53. InternationalNatureofElectronic Commerce(cont’d.) © Cengage Learning 2015 53 •Keyinternational commerceissues –Trust() –Culture() –Language() –Government () –Infrastructure()
  • 54. TrustIssuesontheWeb © Cengage Learning 2015 54 •Importanttoestablishtrustingrelationshipswith •customers •Companiescanrelyonestablishedbrandnames –Difficult for onlinebusinesses •Anonymity()existsin Webpresence –Bankingexample:browsingsite’spages •Difficult todeterminebanksize orhow wellestablished •Visitors will notbecomecustomersunless theytrust thecompany •Businessmustovercomedistrustin Web“strangers”
  • 56. LanguageIssues •Businessmustadapttolocalcultures –“Think globally, act locally” –Providelocal language versionsof Website •Customersmore likelyto buy fromsites inownlanguage [Researchersestimatedin2013] –25-55percent ofInternetcontent inEnglish –HalfofcurrentInternetusersdonotread English –By2015: 70%ofe-commercetransactionswill involve at least one partyoutsideof theUnitedStates –By2016: Chinesewill equalEnglishasthemost-used languageonline •Languagesmay requiremultipletranslations –Separatedialects(),e.g.Chinesehastwo main systemsof writing: simplifiedandtraditionalChinese 75
  • 57. LanguageIssues(cont’d.) •Large sitetranslationmaybecost-prohibitive() –Certainpagesmaybetranslated –Homepageshouldbetranslated into allsupported languages –Allfirst-level linksto home page •Highprioritypagestotranslate –Marketing,productinformation,establishingbrand •Usetranslationservicesandsoftware –Humantranslation:key marketing messages –Software (or machinetranslation):usedfortranslating routinetransaction-processingfunctions, translationis notperfectbut may be an acceptablealternative 76
  • 58. CulturalIssues 58 •Importantelementofbusinesstrust –Anticipating()howtheotherpartytoa •transaction willact in specificcircumstances •Culture –Combinationof language() andcustoms () –Variesacross nationalboundaries,regionswithin nations •Culturalissueexamples –VirtualVineyards()(nowWine.com) •packaging…
  • 59. Case :ComplaintsfromCustomers in Japan 59 •VirtualVineyardssold mostof its wineincase(12bottles) or half-casequantities.Thus,tosaveonoperatingcosts, itstockedshippingmaterialsonlyin case,half-case, and two-bottlesizes. Afteran investigation,the company determinedthatmanyof itsJapanesecustomersordered onlyone bottleofwine,whichwas shippedin a two-bottle container.Tothese Japanesecustomers,whoconsider packagingto be animportantelementof ahigh-quality productsuch as wine,itwas inconceivable() that anyonewouldshipone bottle ofwineina two-bottle container.Theyweree-mailingto askwherethe other bottlewas, notwithstandingthe factthatthey had ordered onlyone bottle.
  • 60. CulturalIssues (cont’d.) •Selecticonscarefully –Shoppingcart,baskets andtrolleys –Handsignalfor“OK”: obscene() gesture inBrazil •Dramaticculturalovertones –India:inappropriateto use cow imageincartoon –Muslimcountries:offended ()by humanarmsor legsuncovered –Whitecolor(purityversus death) –Japan:numberfour symbolizesdeath. •A Web pagethatisdividedinto foursegmentscan beoffensive toa Japanese visitor 79
  • 61. CulturalIssues (cont’d.) © Cengage Learning 2015 80 •Onlinebusinessapprehension() –Japanese shoppers’unwillingnesstopay bycredit card •Softbank() –Deviseda wayto introduce electroniccommerceto areluctant Japanese population –Createda joint venturewith7-Eleven,Yahoo!Japan, and Tohan(a majorJapanese bookdistributor) tosell books andCDsonline –Allowedcustomersto orderitemsontheInternet,andthenpickthemupandpayforthemincashat thelocal 7- Eleven conveniencestore –Byadding an intermediary()thatsatisfiedtheneedsoftheJapanesecustomer,Softbankwashighlysuccessful inbringingbusiness-to-consumerelectroniccommerceto Japan
  • 62. Cultureand Government © CengageLearning2015 •Onlinediscussioninhospitabletocultural environments •Governmentcontrolsin somecultures –Unfettered ()communicationnot desiredor consideredacceptable •Denounced()Internetmaterialcontent –UnrestrictedInternetaccess forbidden –Web contentfiltered –MonitorsISPrecords –Imposelanguagerequirements •In France,anadvertisementfora productor service mustbeinFrench. 81
  • 63. InfrastructureIssues © Cengage Learning 2015 82 •Internetinfrastructure,includes –ComputersandsoftwareconnectedtoInternet –Communicationsnetworks •Infrastructurevariationsand inadequaciesexist •TelecommunicationsindustryoutsideUnitedStates –Heavilyregulated,government-owned –Highlocaltelephoneconnectioncosts affectonline behavior •In countrieswhereInternetconnectioncosts are high, few businesspeoplewould spend timesurfingtheWebto shopfora product.
  • 64. Infrastructure Issues (cont’d.) © Cengage Learning 2015 83 •International orders:globalproblem –Noprocesstohandleorder andpaperwork •Freightforwarder() –Arrangesinternationaltransactions’shippingand insurance •Customsbroker –Arrangestariff() payment andcompliance •Bondedwarehouse() –Securelocation –Holdsinternationalshipmentsuntilcustoms requirementsor paymentssatisfied
  • 65. International 84 transaction (典型的國際貿易與交易流程 ) @CengageLearning 2015 4一一一_freig圳 carner ,一 j I Jl閏月用品i t hH nuo au rr st 自uv cn Ur sa 自M m O D 戶LV þ 一, lhl|e「S bank Customsbroker Customsoffice Buyer'sbank .‘ 4一一一 一- l1li r噩噩噩噩矗重h 輛警量i 4由自由自由自由一 司111 Buyer(importer) Domesticfreight carner Portorbondedwarehouse þ 一一+ Informationflow Physicalflow FIGURE1-14Partiesinvolvedinatypicalinternationaltrade
  • 66. Infrastructure Issues (cont’d.) © Cengage Learning 2015 85 •Handlinginternationaltransactions paperwork –Industryexperts estimatethattheannualcostof handlingpaperworkforinternationaltransactions is $800billion. –Software automates somepaperwork •Countries haveownpaper-basedforms,procedures •Countrieshaveincompatiblecomputersystems
  • 67. ELEVENTH EDITION ELECTRONIC COMMERCE GARYP.SCHNEIDER Chapter2 TechnologyInfrastructure: TheInternetand theWorldWideWeb © CengageLearning2015
  • 68. Introduction •AgrowingnumberofInternetusersare using smartphoneor tablet –Smartphonesis mostlikelyto be a user’sprimarymeans of accessingthe Internet. •HistoryofInternet-capablemobilephones –Firstintroducedinlate-1990s •Slow, unreliable service, no keyboards,lackedcolors –2001:Treo,Blackberryintroduced(includedkeyboards) –2009:Allmajor phonemanufacturersofferedarangeof smartphonesand Internet-capablemobilephones. –2011-2013:Lowerprice phonestargeteddeveloping markets. •Chinese phone manufacturerswereproducinglow-priced smartphonesfortheirdomesticmarket. 3
  • 69. 1 TheInternetand the WorldWide Web ©CengageLearning2015 6 9 •Computernetwork –Technologyallowingpeopletoconnectcomputers •Internet(capital“I”) –Interconnected globalcomputernetworks –Whichusesaspecificset of rulestoconnect •internet(small“i”) –Short for“interconnectednetwork –Groupof interconnectedcomputernetworks
  • 70. TheInternetand the World Wide Web (cont’d.) ©CengageLearning2015 7 0 •WorldWideWeb(Web,WWW) –SubsetofInternetcomputersthatare connectedto oneanother –Includeseasy-to-use interfaces •Easy to use theWebtoaccessa varietyof Internet resources. •Thischapterintroducebasictechnologystructure –The technologiessupports networks,theInternet,and e-commerce
  • 71. Origins(起源) ofthe Internet 7 1 •Early1960s –DefenseDepartment(國防部) nuclearattack(核彈攻 擊) concerns •Todesign a worldwidenetworkthat could remain operational,evenifpartsofthenetworkweredestroyed –Leasedtelephonecompanylines •Single connectionbetweensender andreceiverforeach telephonecall –Singleconnectionrisk solution •Communicateusing multiplechannels(packets)
  • 72. OriginsoftheInternet(cont’d.) •1969AdvancedResearchProjectsAgency(ARPA) –Packetnetwork connectedfourcomputers •ARPANET:earliest network(becametheInternet) •Academicresearchconnectedto theARPANET(1970s and1980s) •DefenseDepartmentnetwork:theoriginal goal –To control weaponssystems;transferresearchfiles 7 2 ARPAnet(4-node)
  • 73. NewUses fortheInternet 7 3 •1970s:otheruses –E-mailwas born(1972), messagecouldbesentand received –Networkingtechnology •usersinthemilitaryandeducationresearch communitiescontinued togrow •Remotefiletransferandcomputeraccess •1979:Usenet(User’sNewsNetwork) –Readandpostarticles –They are calledNewsgroups(新聞群組)today
  • 74. NewUses fortheInternet(cont’d.) © CengageLearning2015 7 4 •LimitedInternetuse –Limitedtoresearch andacademiccommunitieswho couldaccessthe networks •1979–1989 –Networkapplicationsimprovedandtested –DefenseDepartment’snetworkingsoftware •Gainedwider academicandresearchinstitutionuse •Commoncommunicationsnetworkbenefit recognized –Securityproblemsrecognized(chapter10)
  • 75. CommercialUse oftheInternet •1980s:personalcomputer(PC)useexplosion –PCbecamemore powerful,affordable,andavailable –CompaniesincreasinglyusedPCtoconstructtheir own internalnetworks –Otherindependentnetworkswere developed •Largerfirmsbuilttheirownnetworks(leased telephonelines) •1989:twocommerciale-mailserviceswerepermitted –NationalScienceFoundation(NSF) prohibited commercialnetworktrafficonitsnetworks –Businessesturnedtocommerciale-mailservice providers –Commercialenterprisescouldsende-mail 10
  • 76. Growthofthe Internet 76 •1991 –NSFfurther easeditsrestrictions on commercial Internetactivityandbeganimplementingplansto privatizethe Internet •1995:privatization oftheInternet –Operations turnedover toprivatelyownedcompanies •Internetbasedonfournetworkaccesspoints (網路存取 點)(NAPs) •Networkaccessproviders –SellInternetaccess rightsdirectlytolargercustomers –Use Internetservice providers(網絡服務供應商 ) (ISPs) •Sell to smallerfirmsandindividuals
  • 77. Growthofthe Internet(cont’d.) © CengageLearning2015 77 •Internethosts(網絡主機): –computersdirectlyconnectedtotheInternet •Internetgrowth –One of the mostsignificanttechnologicalandsocial accomplishmentsof lastmillennium –Nearlyevery country involved –Usedby millionsofpeople
  • 79. TheInternetofThings •DevicescanbeconnectedtotheInternet –Usedby computerstomanageautomatically environmentalconditions(heating,cooling,lighting) –Examples:opticalscanners,sensorsthatdetect changesintemperature,light –E.g.,acomputerthatmonitorsinventorylevelsusing sensors connectedto itover the Internetcan use its Internetconnectionto placeinventoryorderswitha vendor’scomputerautomatically. •TheInternetofthings –Term usedfor these connecteddevices –Estimatedsize is 9 billion(morethan peopleon Earth) 14 ©CengageLearning2015
  • 80. 2 Packet-SwitchedNetworks •Localarea network(LAN)(區域網路) –Networkofcomputerslocatedclosetogether •Widearea networks(WANs)(廣域網路) –Networksofcomputersconnectedover greater distances •Circuit(線路) –Combinationof telephonelinesandclosedswitches (交換機) connectingthem to each other •Forma single electrical path betweencaller andreceiver •Circuitswitching(線路交換) –Centrallycontrolled,single-connectionmodel © CengageLearning201515
  • 81. Packet-SwitchedNetworks(cont’d.) •Circuitswitching(cont’d.) –Workswellfortelephonecalls –Doesnotworkas wellfor: •Sending dataacrosslargeWANandinterconnected network(Internet) •Circuit-switchednetworkproblem –Connectedcircuitfailure •Causesinterruptedconnection anddata loss –(TheInternetwas designedtoberesistanttofailure.) •Solution –Packetswitching(分封交換):move data betweentwo points 16
  • 82. Packet-SwitchedNetworks(cont’d.) © CengageLearning2015 82 •Packet-switchednetwork –Packets •Smallpieceslabeled electronically (origin, sequence, anddestinationaddress) •Travelalonginterconnectednetworks •Can take differentpaths –Destinationcomputer •Collectspackets •Reassemblesoriginalfile or e-mailmessage
  • 83. RoutingPackets(路由封包) 83 •Routingcomputers(路由電腦) –Decidehowbesttoforwardeachpacket –Alsoknownas routers,gatewaycomputers, border routers •ActasthegatewayfromLAN orWANtoInternet •Located at theborderbetweenorganization andtheInternet •Routingalgorithms(路由演算) –Programson routingcomputers •Determinebest path forpacket •Specify whichconnectionsto usefirst •Havetherulesforhandling instances of heavypacket traffic
  • 84. RoutingPackets(cont’d.) 84 •IndividualLANs and WANscanuseavarietyof •rulesand standardsforcreatingpackets •Hubs(集線器),switches(交換器),and bridges(路由 器) –Devicesthatmove packetsfromonepart of anetwork to another •Routers –Usedto connectnetworksto othernetworks –Translatepacketsintostandard format –Routersare an important partof theinfrastructure of the Internet
  • 85. RoutingPackets(cont’d.) © CengageLearning2015 85 •Internetbackbone(網絡骨幹) –Routers that handlepacket trafficalongthe Internet’s mainconnectingpoints –Routersandtelecommunicationlinesbetween Internet’smaincollectingpoints –alsocalledbackbonerouters
  • 87. Publicand PrivateNetworks © CengageLearning2015 87 •Publicnetwork() –Computernetworkortelecommunicationsnetwork thatis availableto the public(such as Internet) •Privatenetwork() –Private,leased-lineconnection –Physicallyconnectsintranetsto one another •Leasedline() –Permanenttelephoneconnectionbetweentwo points –Advantage:security –Drawback:cost(can be quite expensive)
  • 88. VirtualPrivateNetwork(VPN) (虛 擬私有網絡) •Connectionvia publicnetworksand protocols –Protect dataas wellas privatenetwork •UsesIPtunneling(IP通道)or calledencapsulation –Privatepassagewaythrough publicInternet –Securetransmission •Encapsulation(打包) –VPNsoftware installedon both computers –Thepassagewayis created by VPNsoftware –Encrypts(加密)packetcontent;placesinsideanother packet •“Virtual”sinceconnectionseemspermanent –Actuallya temporary connection 23 (打包)
  • 89. IntranetsandExtranets •Intranet() –Interconnectedprivatenetworks –Aninternetwithinthe boundariesof theorganization •Extranet() –Anintranetthathadbeenextendedtoincludespecific entitiesoutsidethe boundariesof theorganization (businesspartners, customers,or suppliers) © CengageLearning2015 24
  • 90. 3 InternetProtocols () •Protocol():acollectionofrules for formatting,ordering,and error checkingdatasent acrossa network –Includestransmissionrules –Computers must use sameprotocol •Openarchitecture(開放架構)wasdevelopedfor ARPANET(laterbecamethecore oftheInternet) –Uses common protocolforallcomputers connectedto theInternet –Includeskey message-handlingrules –Contributedto theInternet’ssuccess 25
  • 91. TCP/IP ©CengageLearning2015 •TCP/IParetherulesthatgovernhowdatamovesthroughtheInternetandhownetworkconnectionsareestablishedandterminated •TransmissionControlProtocol (TCP)(傳輸控制協定) –Controlsmessageor filedisassemblyintopackets before Internettransmission –Controlspacket reassemblyintooriginalformatsat destinations •InternetProtocol(IP) (網絡控制協定) –Specifiesaddressingdetailsforeachpacket –Labelspacket withoriginationanddestination addresses 26
  • 92. IPAddressing © CengageLearning2015 27 •InternetProtocolversion4 (IPv4)(網絡通訊協定第四版) –Usedsince1981 •IPaddress –32-bitnumberidentifyingcomputers •Base2 (binary)(二進制)numbersystem –Computers useforinternalcalculations –Digit:0or a1(on oroffcondition) –Fourbilliondifferentaddresses(232= 4,294,967,296) •Routerbreaksmessageintopackets –Containssource anddestinationIPaddress
  • 93. IPAddressing(cont’d.) •IPv4 –uses 32-bit(four-byte)addresses –limitsthe addressspace to 4,294,967,296(232) addresses –As addresseswere assignedtousers, the numberof unassignedaddressesdecreased Dotteddecimalnotation: -Fournumbersseparated -IPaddressesrange:0.0.0.0 to 255.255.255.255 © CengageLearning2015 28
  • 94. IPAddressing(cont’d.) •InternetProtocolversion6 (IPv6) –ReplacesIPv4 •Addressespredictedto be exhaustedin2015 –IPv4andIPv6notdirectlycompatible •Switching theInternetcompletelyoverto IPv6network •Torunbothprotocols in paralleloninterconnected networks •IPv6 majoradvantages –Uses 128-bitnumberforaddresses –Numberof availableaddresses:34 followedby37 zeros •Morecomplexnotationsystem 29
  • 95. ElectronicMailProtocols 95 •Electronicmail(e-mail)(電子郵件) –Formattedaccording tocommonset ofrules –Mostorganizationsuse aclient/server structure •E-mailserver (郵件伺服器) –Computerdevotedtoe-mailhandling –Stores,forwardse-mailmessages •E-mailclientsoftware (電子郵件終端軟體) –Readsandsendse-mail –Communicateswithe-mailserversoftware –ProgramsincludeMicrosoftOutlook •E-mailservicesofferedbyWebsites –E-mailserversandclients areoperatedbytheownersof theWeb sites –Such asYahoo! Mail,orGoogle’sGmail
  • 96. WebPageRequestand Delivery Protocols •Webclientcomputers –Webclientsoftware/Webbrowsersoftware •SendsWebpagefile requeststo othercomputers(Webservers) •Popular Web browsersoftware includeGoogleChrome, MicrosoftInternetExplorer, andMozilla Firefox •Webservercomputer –Web server software •ReceivesrequestsfrommanydifferentWeb clients •respondsbysendingfilesback tothoseWeb clientcomputers •Webclientsoftwarerendersthosefiles intoa Webpage 96
  • 97. WebPageRequestand Delivery Protocols(cont’d.) •HypertextTransferProtocol (HTTP) –InternetWebpagefiledeliveryrules –Developedin1991 •WebpagerequestusingWeb browser –User typesprotocolname •Followed by“://”charactersbeforethedomainname •Typehttp://www.yahoo.comto visit Yahoo!Website •Webbrowserstodayautomaticallyinsert the http:// –UniformResourceLocator(URL) •Combination:protocolname,domainname •Itlet user locatea resource(Web page)onanother computer(Web server) ©CengageLearning2015 32
  • 98. 4 Emergenceofthe WorldWideWeb 98 •Web –Software runningonInternet-connectedcomputers (at atechnologicallevel) –Generatesnetworktraffic •Websoftware:largestsingle trafficcategory •Outpaces(超越):e-mail,file transfers, andother datatransmissiontraffic •KeytechnologicalWeb elements –Hypertext –Graphicaluser interfaces
  • 99. TheDevelopmentofHypertext 99 •1989:TimBerners-Lee –Proposedhypertextdevelopmentproject –Provideddata-sharingfunctionality –Developedthe codefor ahypertextserver program andmade it availableon theInternet. •Hypertextserver(超本文伺服器) –StoresHypertextMarkup Language(HTML) files •Webservers(網頁伺服器) –Hypertextservers usedontheWebtodaycalledweb servers
  • 100. TheDevelopmentofHypertext(cont’d.) ©CengageLearning2015 10 0 •HTML(HypertextMarkupLanguage,超本文標記語 言) –HTMLis the languageused for thecreationof Web pages –Set ofcodes(tags)attachedtotext –Describesrelationshipsamongtext elements •Indicates which textispartof aheaderelement,whichtextispartof aparagraphelement,andwhichtextis partof anumberedlistelement •Hypertextlink(超本文連結)(hyperlink)(超連結) –Pointsto anotherlocation –Sameor anotherHTMLdocument
  • 101. Graphical Interfacesfor Hypertext ©CengageLearning2015 10 1 •Webbrowser(網頁瀏覽器) –Software,e.g.,InternetExplorerorFirefox –Users read(browse)HTMLdocuments –Move fromoneHTMLdocumentto another –Textformattedwithhypertextlinktagsinfile •Graphicaluserinterface (GUI)(圖形使用者介面) –Isa wayofpresentingprogramcontrol functionsand programoutputtousers andacceptingtheir input –Uses pictures,icons,andothergraphicalelements
  • 102. TheWorldWideWeb •WorldWideWeb:Berners-Leecalledhissystemof hyperlinkedHTMLdocumentstheWorldWideWeb •Quick acceptanceinscientificresearchcommunity •1993:firstGUIprogram(Mosaic) –ReadHTML –UsedHTMLhyperlinksfor page-to-pagenavigation –FirstWebbrowserwidely availableforpersonal computers ©CengageLearning2015 10 2
  • 103. TheWorldWideWeb (cont’d.) •EasywaytoaccessInternetinformation –Providedby functionalsystemofpagesconnectedby hypertextlinks –Profit-making potentialofferedby a worldwide network •NetscapeCommunicationsfoundedin 1994 –NetscapeNavigatorWebbrowser(basedon Mosaic) –Microsoft:InternetExplorer(mostwidelyused) –Firefox:NetscapeNavigatordescendant •NumberofWebsites –Thenumberof Web siteshas growneven more rapidlythan theInternetitself 38
  • 105. TheDeep Web (深度網頁) © CengageLearning2015 40 •SomeWebprovidesaccesstocustomizedWeb pagesthatare created inresponsetoaparticular user’squery –Pullcontent fromdatabases –Example:search for“onlinebusiness”bookon Amazon.com –QuerythedatabasesofinformationaboutbooksandcreateaWebpagethatisacustomizedresponsetoyoursearch •DeepWeb:information thatisstoredin databases and isaccessibletousersthroughWeb interfaces
  • 106. DomainNames(網絡域名) •Dotteddecimalnotationdifficulttoremember •Domainnames –Sets ofwordsassignedto specificIP addresses •Therightmostpartof adomainnameisthemostgeneral. Eachpart ofthedomainnamebecomesmorespecificas youmoveto theleft. –Example:www.google.com •Containsthreepartsseparatedbyperiods(句點) –Top-leveldomain(頂級域名)(TLD):rightmostpart,includes: •Generictop-leveldomains((一般頂級域名)(gTLDs))— suchas.edu,.com,and.org •Countrydomains •Sponsoredtop-level domains(贊助頂級域名)(sTLD) –E.g.,.aerosTLDis sponsoredby anairtransportassociation 41
  • 107. FIGURE2-4Commonlyuseddomainnames ©CengageLearning2015 Individualcountriesarepermittedto maintaintheirown TLDs,whichtheirresidents 10 7 canuse aloneor incombinationwithotherTLDs.
  • 108. 5 Markup Languagesand the Web © CengageLearning2015 10 8 •The mostimportantpartsofa Webpage –Thestructureofthepage,and thetextthatmakes up the mainpart of thepage –Storedinatext filethatis formatted,or markedup •Textmarkuplanguage –Specifiesset oftags insertedintotext –Markup tags (標記標籤) (tags):provideformatting instructionsWebclientunderstands •HTML –Mostcommonly usedWeb markuplanguage
  • 109. HypertextMarkup Language © CengageLearning2015 10 9 •HTMLlinks –Hyperlinksoninterlinkedpagesforma “web”ofthose pages •Linear hyperlinkstructure –ReadsWeb pageinserialfashion –Works wellwhencustomerfillsout form •Hierarchicalhyperlinkstructure –Uses anintroductory page(homepage,startpage) linkingtootherpages –Sitemap often availableforhierarchicalsites –Good forleadingcustomers fromgeneralto specific
  • 111. FIGURE2-9Three commonWebpage organizationstructures 11 1 © CengageLearning2015 Aninvertedtree inwhichthe rootis at thetop andthe branchesare belowit
  • 112. 6 InternetConnectionOptions (網 絡連接選項) © CengageLearning2015 47 •Internet –Setofinterconnectednetworks –Organizations,families,andmobilephonesare connectedto theInternet in anumber of ways •Internetaccessproviders(IAPs) or Internetservice providers(ISPs) –ProvideInternet access toindividuals, businesses, other organizations –Offerseveralconnectionoptions
  • 113. ConnectivityOverview © CengageLearning2015 •Commonconnectionoptions –Voice-gradetelephone lines, varioustypes ofbroadband connections, leasedlines, wireless •Distinguishingfactor –Bandwidth(頻寬) •Amountofdatatravelingthroughcommunicationline perunitof time •Net bandwidth(淨頻寬) –Actualspeedinformationtravels –When fewpeople are competingforservicefromanISP,net bandwidthapproachesthe carrier’supperlimit. •Symmetricconnections(對稱式連線) –Providesamebandwidth in bothdirections(downloadand upload) 48
  • 114. ConnectivityOverview(cont’d.) © CengageLearning2015 49 •Asymmetricconnections(非對稱式連線) –Providedifferentbandwidthsforeach direction •Upstreambandwidth(uploadbandwidth)(上傳頻寬) –Amountof informationfromuser tothe Internetina givenamount oftime •Downstreambandwidth(download,downlink bandwidth)(下載頻寬) –Amountof informationfromthe Internetto userina givenamountoftime
  • 115. Voice-GradeTelephoneConnections © CengageLearning2015 59 •Usedin earlydaysofWeb •Plain oldtelephoneservice(POTS) –Uses existingtelephonelines,analogmodem –Bandwidthbetween28and56Kbps –56 Kbpsis 56 kilobitsper secondor 56,000 bit/s
  • 116. BroadbandConnections © CengageLearning2015 •Broadband:connectionspeeds>200 Kbps –Asymmetricdigitalsubscriberline(ADSL) •UsesDSL protocolprovidingbroadbandrangeservice –High-speedDSL(HDSL) •Morethan 768Kbpssymmetricbandwidth –Cablemodems •Transmissionspeeds toserver:300Kbpsto 1.5Mbps •Thedownstreambandwidth canbeashighas10Mbps •Subscriberscompeteforshared resource,bandwidth varywiththenumberof subscribers 51
  • 117. Leased-LineConnections 52 •Moreexpensivetechnologies •Classifiedbyequivalentnumberoftelephonelines included –DS0(digitalsignalzero) •Carriesonedigitalsignal (56Kbps) –T1line(DS1) •Carries24DS0 lines(1.544Mbps) –T3 (DS3): •Offers44.736Mbps,equivalent of 30T1linesor760 DS0 lines •Largeorganizationsrequireveryhigh bandwidth mayuseT1or T3lines
  • 118. WirelessConnections © CengageLearning2015 53 •Inruralareas,satellite microwavetransmissions madeconnectionstotheInternet –Downloadspeedsof 500 Kbps –Uploadhandledby POTS(Plainoldtelephone service) modemconnection •Today:POTS modemconnectionnotrequired –Use microwavetransmitterforuploads(150 Kbps) •Many wirelessnetworktypes now available –Internet-capablemobilephones,smartphones,game consoles,andnotebookcomputers
  • 119. Personal AreaNetworks © CengageLearning2015 •Personalarea networks(PANs)alsocalledpiconets (微型網絡) •Bluetooth(藍牙) –Designedforpersonaluse over shortdistances –Low-bandwidthtechnology(722 Kbps) –Usefulfortaskssuchaswirelesssynchronization( 同步)oflaptopcomputerswithdesktopcomputersandwirelessprintingfromlaptopsormobilephones –Advantages: •Devicesconsumeverylittlepower •Devicescan discover oneanotherandexchange informationautomatically 54
  • 120. WirelessEthernet(Wi-Fi) © CengageLearning2015 12 0 •Themostcommonwirelessconnectiontechnology foruseonLANsiscalledWi-Fi,alsocalled802.11n •Wirelessaccesspoint(WAP)(無線存取點) –A computer equippedwithaWi-Finetworkcard can communicatethrough a WAPbecomea partof aLAN –TransmitspacketsbetweenWi-Fi-equipped computersandother deviceswithinrange –Bandwidthof 450MBps –Rangeof500 feet
  • 121. WirelessEthernet(cont’d.) © CengageLearning2015 12 1 •Capableofroaming(漫遊) –ShiftingfromoneWAPtoanother –Nouserintervention •Hotspots(熱點) –WAPsopentopublic –Someorganizations,includingairports, convention centers,and hotels,operate WAPs thatare opento the public
  • 122. Mobile TelephoneNetworks © CengageLearning2015 12 2 •Shortmessageservice(SMS)(簡訊服務) –Sendand receiveshort textmessages •Third-generation(3G)(第三代)wirelesstechnology –2 Mbpsdownload/800Kbps uploadspeeds –Mostmobiletelephonenetworkstoday use oneof a seriesof3Gtechnologies •Fourth-generation(4G)(第四代)technology –These 4G technologiesofferdownloadspeedsup to 14 Mbps anduploadspeedsup to 8 Mbps. •Significancein mobilecommerce –Mosthandhelddeviceshavethe abilityto use either a mobiletelephonenetworkor alocallyavailable wirelessnetwork protocol
  • 123. ELEVENTH EDITION ELECTRONIC COMMERCE GARYP.SCHNEIDER Chapter3 Sellingon the Web © CengageLearning2015 123
  • 124. LearningObjectives © CengageLearning2015 1 2 4 Inthischapter,you willlearn about: •Whata revenuemodel(營收模式)isand how companiesuse variousrevenuemodels •Howtocreateaneffectivebusinesspresence(商務 形象)on theWeb •WhatfactorsenhanceWebsiteusability(網站實用 性) •Howcompaniesuse theWeb toconnectwith customers
  • 125. 1.RevenueModelsforOnline Business © CengageLearning2015 1 2 5 •Webbusinessrevenue-generatingmodels –Webcatalog –Digitalcontent(fee-for-content) –Advertising-supported –Advertising-subscriptionmixed –Fee-based(Fee-for-TransactionRevenueModels, Fee-for-Service RevenueModels) •Samemodelcanworkforbothsaletypes –Business-to-consumer(B2C) –Business-to-business(B2B)
  • 126. a)WebCatalogRevenueModels () © CengageLearning2015 1 2 6 •Adaptedfrommail-order(郵購)orcatalog model(型 錄模式) –Sellerestablishesbrandimage –Printedinformation mailedto prospectivebuyers •Ordersplacedbymailorphone •Expandstraditional model –Replacesor supplementsprintcatalogs –Ordersplacedthrough Web site –Creates additionalsalesoutletforexistingcompanies •EarlyyearsofeCommerce –Shoppersusedthe Webtoobtaininformationabout products andcompare prices andfeatures
  • 127. WebCatalogRevenueModels(cont’d.) •Discountretailers –Some discountersbeganasretailoperationsonline, e.g.,Overstock.com –Traditionalretailers,were reluctantto implement onlinesales,nowusingWeb catalogrevenuemodel: Walmart •Multiplemarketingchannels(行銷通路) –Allowsmore customers tobe reachedat alowercost –Marketingchannelexamples •Physical stores •Websites •Mailedcatalogsornewspaperinsert 5
  • 128. Usingmultiplemarketingchannelsto reachthesamesetofcustomerscanbe an effectivestrategyforretailers. FIGURE3-1 Combiningmarketingchannels:tworetailerexamples 1 2 8 ©CengageLearning2015
  • 129. Mailedcatalogs(ornewspaper advertisinginserts)continuetobean effectivemarketingtool. FIGURE3-1 Combiningmarketingchannels:tworetailerexamples 1 2 9 ©CengageLearning2015
  • 130. WebCatalogRevenueModels(cont’d.) •Addingthepersonaltouch –Many apparel(服裝)sellersadaptedcatalogsales modelto Web –Displayclothingphotoscategorizedby type •Prices, sizes,colors, and tailoringdetails –Wantcustomers toexamineclothingonline •PlaceordersthroughWebsite –Somesites offeronlineWeb shoppingassistance,text andvideochat © CengageLearning2015 8
  • 131. WebCatalogRevenueModels(cont’d.) •Personalshopper(個人購物) –Anintelligentagentprogram thatlearnspreferences andmakes suggestions IBM's PersonalShopping IBM’sPersonalShoppingAssistantusesintelligentagenttechnologyto helptheInternetshopperortheInternetshopownertofindthedesired itemquicklywithouthavingtobrowsepageafterpageofthewrong merchandise.WiththePersonalShoppingAssistant,storesand merchandisearecustomizedastheintelligentagentlearnedtheshopper's preferencesashe/sheentersin anyon-linemallorstoresorlookingat specificmerchandise.Itcouldalsoarrangethemerchandisesothatthe items youlike themostarethefirstoneyousee.Finally,Personal ShoppingAssistantautomatesyourshoppingexperiencebyremindingyou toshopwhena birthday,ananniversaries,oritemthatison saleoccurred.
  • 132. WebCatalogRevenueModels(cont’d.) •Virtual model() –Graphic imagebuiltfrom customermeasurements –Allowscustomers totry clothes © CengageLearning2015 Someretailersreportthat thedollar amountof ordersplacedbycustomerswho usethevirtualmodelissignificantlyhigherthanotherorders. 10
  • 133. WebCatalogRevenueModels(cont’d.) © CengageLearning2015 11 •Problem:varyingcomputermonitorcolor settings –Itis difficultforcustomerstogetanaccurateideaof whatthe product’scolorwilllooklikewhenitarrives –Solutions:sendfabric swatch on requestand/oroffer generousreturnpolicies •Givesthe customera sense of thecolor andfabric’s texture •Allow customerstoreturnunused merchandiseforanyreason
  • 134. b)Fee-for-Content RevenueModels •Firmsowningwritteninformationor informationrights –AdopttheWebas ahighlyefficientdistribution mechanism –Use the digitalcontentrevenuemodel •Sell rightsto access informationtheyown •Legal,academic,businessand technicalcontent –LexisNexis:offersvariety of informationservices for lawyers andlawenforcementofficials (執法人員) –Subscriptionsandindividual access rights toonlineacademicjournalsandother publications 12
  • 135. Fee-for-Content RevenueModels (cont’d.) •Academicinformationaggregationservices –Purchaseandresellrightsin subscriptionpackagesto schools,libraries,companies,andnot-for-profit institutions •DowJonesprovidesbusiness- focusedpublicationsonline –One of the firstpublishersto create aWeb site for sellingsubscriptionsto digitizednewspaper, magazine,andjournalcontent –Onlinecontentmanagementandintegrationservice:subscriptionstoindividualsforpurposesofbusinessresearch,jobsearches,orinvestmentanalysis © CengageLearning2015 13
  • 136. ElectronicBooks •Canbe read orlistenedto –Electronic bookscan bedisplayed onmobilephone andtablet deviceappsaswell as oncomputersusing the appropriatebookreadersoftware •Physicalandelectronicbookswillcoexistforyears –Amazon.comannounced in 2011itwasselling more electronicbooks than paperbooks. © CengageLearning2015 14
  • 137. OnlineMusic •Recordingindustryslowto embraceonlinedistributionof music –Digit productscan be easily copiedonce purchased •Largeststores:AmazonMP3,Apple’s iTunes, GooglePlay –Sellsinglesongs(tracks)forabouta dollareach –Sellalbumsatvariousprices(mostbetween$5and$12) •Subscriptionservicesto streammusic –Streammusicto yourdevicefora monthlyfeeratherthancharging forspecificsongsoralbums ©Cen gageLearning2015 1 5
  • 138. OnlineMusic (cont’d.) –Firsttime in14 years 16 •Complications –Nosinglestoreoffersallmusic –Individualstorespromote their ownmusicfileformats •DigitalRightsManagement(DRM,數位版權管理) software –Onlinemusicsellersrequiredbuyers todownloadand install –Usedto limit the number ofcopiesthatcouldbe made of each audiofile •Musicindustry –Reportsincreasedsalesin2013(afteryears of sufferingdeclinesduetoillegalcopying)
  • 139. OnlineVideo –Videodeliverytechnologiesbecomingtransparent 17 •Canbesold or rentedonline –Downloadedorstreamed •Pastlimitations –Largefilesize(makedownloadtimes longand streamingfeeds uneven) –Salesmight weakenother salesof thevideo –Technologicalbarriersarounddevices •Overcomingtheissues –Newtechnologiesimprovingdelivery –Companiesincorporatingonlinedistributioninto revenuestrategy
  • 140. OnlineVideo(cont’d.) •Apple’siTunesserviceincludesvideoofferingsforrentorpurchaseinadditiontoitsmanyfreevideodownloads. •Netflix:offersonline accesstomoviesonitsWeb siteaspartofitsDVDrentalsubscriptionplans. •Google’sYouTubehasbecomea leading sourceof freevideosontheWeb. © CengageLearning2015 18
  • 141. c)Advertisingas a RevenueModel Element © CengageLearning2015 19 •Advertisers’feesin placeofusers’subscriptions –The feeschargedareusedtosupporttheoperationof the Website •Advertising-supportedrevenuemodels –Usedby UnitedStatesbroadcast networktelevision •Providesfreeprogrammingandadvertising messages •Supportsnetworkoperationssufficiently
  • 142. Advertising-SupportedRevenue Models(cont’d.) © CengageLearning2015 29 •Onlineadvertisingchallenges –Difficultyofmeasuringandchargingsitevisitorviews •Multiple measurements:numberof visitors, numberofuniquevisitors, numberof click-throughs, orother attributesof visitorbehavior –Stickiness(黏著度) •Keeping visitorsatsite andattracting repeatvisitors •Peoplespend moretimeat astickyWebsiteand arethusexposedto moreadvertising
  • 143. Advertising-SupportedRevenue Models(cont’d.) •Obtaininglargeadvertiserinterest –Requires demographicinformation(人口統計信息)collection (mostsuccessful advertisingistargetedat specificgroups) –demographicinformationincludes thingssuchasaddress, age, gender,incomelevel, typeof job,hobbies, and religion –Characteristics setused togroupvisitors •Canobtainlargeadvertiserinterestby: –Usinga specializedinformationWebsite •Drawa specialized audiencecertain advertiserswant toreach 21 ©CengageLearning2015
  • 144. 己,一L歹三::Ll 、「、二, 包可‘ General intereststrategy Adve叫iserspaylowratestoreachlargenumbersofundi付erentiatedvisitors /z_2 r_J_.室主"-_,:_, Specificintereststrategy Advertiserspayhighratestoreachsmallnumbersofvisitorswithspecificinterestsrelatedtothetheme ofthesite 日 Collectionofspecificinterests Advertiserspayhighratesforadsonspecificpagesthat appealtovisitorswithspecificinterestsrelatedtothosepagesor sectionsofthesite FIGURE3-2Threestrategiesforanadve付ising-suppo付edrevenuemodel 22 。CengageLearning2015
  • 145. Advertising-SupportedRevenue Models(cont’d.) •Webportals(portal)(入口網站) –Siteusedasa launchingpointtoentertheWeb •Almost alwaysincludes a search engineorWebdirectory() •Oftenincludes otherfeatures (shoppingdirectories,freee-mail, filestorageservices, andcalendartools.) 015 © CengageLearning2 23
  • 146. Advertising-SupportedRevenue Models(cont’d.) •Webdirectory() –Listof hyperlinks to Web pages © CengageLearning2015 24
  • 147. Advertising-SupportedRevenue Models(cont’d.) ©CengageLearning2015 5 2 •Travelportals •Allowsvisitorstospecifytraveldatesand destinations,andthen searches multiplesites tofind the bestairfares, car rentals,andhotelrooms. Itsells targeted advertisingspaceto companiesthatwantto reachtravelerswith travelplans
  • 148. Advertising-SupportedNewspapers © CengageLearning2015 14 8 •Newspapersormagazinespublishonlineversionof printcontent –Selladvertisingtocover Web site costs –Newspaper’sWeb presence •Providesgreaterexposureandadvertisingaudience •Can divert(轉移)sales fromtheprintedition(experiencesalesloss)
  • 149. Advertising-SupportedNewspapers (con’t) •Mixed-revenuemodel –Some contentfree,othercontentforpurchase –Paywall •Point at whichfeesbegin(avisitorcan access free content until hitting a wall,andthenmustpayto passoverthatwall) © CengageLearning2015 14 9
  • 150. Advertising-SupportedOnline ClassifiedAdSites 15 0 •Targeted classifiedadvertisingsites –Can commandhigher ratesthangeneraladvertising –Each ad is placedina specificclassification andonly readersinterestedinthat typeof adwill readthat classification •Examples:Webemploymentadvertising –Mostsuccessful targetedclassifiedadvertisingcategory –CareerBuilder.com:Whena visitor specifies aninterest term,theresultspagecan include a targetedadforwhich anadvertiserwill paymorebecause it is directedataspecificmarketsegment –Monster.com:targetspecific categoriesof jobseekersbyincluding shortarticlesontopics of interest.
  • 151. Advertising-SupportedOnline ClassifiedAdSites(cont’d.) ©CengageLearning2015 29 •Advertising-subscriptionmixedrevenuemodels –Subscriberspay feeandacceptsome advertising •Lessadvertisingthan advertising-supportedsites –Thesiteallowsnon-subscribingvisitors toviewthe classifiedads andcertain stories fromthe newspaper, butmostofthecontentis reserved forsubscribers whopay an annualfee foraccess to the site –Examples:TheWall StreetJournal,TheNewYork Times
  • 152. FIGURE3-3Revenuemodelsusedby onlineeditionsofnewspapersand magazines © Cengage Learning2015 ©CengageLearning2015 39
  • 153. d) Fee-for-TransactionRevenueModels (按交易收費的營收模 式) introduced 31 •Servicefeecharged –Basedontransactionnumberorsize •Websiteoffersvisitortransactioninformation –Personalservice formerly providedbya humanagent •Valuechain –Disintermediation() •Intermediary(humanagent)removedfroma valuechain •Thewebsitesprovideoptionsandexecutetransactions, thataremuchlessexpensivethantraditionaltransactionserviceproviders –Reintermediation() •Newintermediary(fee-for-transactionWeb site)
  • 154. Fee-for-TransactionRevenueModels (cont’d.) salaries,overhead,andprintingor mailingcost) 15 4 •Stockbrokeragefirms(股票經紀公司) –Originalfull-linebrokerschargedrelativelyhigh commissions(therates were set by a government agency) •Theydid not chargefortheadvices •Theycould not competeonprice, the best wayto competewas tooffermoreand betterinvestmentadvice –1990s:disintermediationdueto brokers faced competitionfromonlinefirms •Firmscan offerinvestmentadvice postedontheirWeb pages orsent ine-mailednewsletters •Without manyof thecostsof distributing theadvicethat traditional brokershadincurred(such asstockbroker
  • 155. Fee-for-TransactionRevenueModels (cont’d.) •Insurancebrokers(保險經紀人) –Insurance companieswereslowtoofferpoliciesand investments forsaleonline –Quotesmith: •offeredInternetpolicy price quotesdirectly topublic (1996) •Independentinsuranceagents:disintermediated –ProgressiveWebsite: •Providesquotesforbothits insuranceproductandforitscompetitors’ products. © CengageLearning2015 15 5
  • 156. Fee-for-TransactionRevenueModels (cont’d.) © CengageLearning2015 15 6 •Eventtickets –Weballowsevent(concerts,shows,andsporting events) promotersto sellticketsfromonevirtual locationto customers worldwide –Onlineagenciesearn a feeon every ticketsold •Ticketmaster(example) –Web created secondaryticketmarket •Brokersconnecting ticket ownerswithbuyers •Earnfees onticketsresold for others,buyticket blocks –Web created easy-to-find central marketplace, facilitatingbuyer-sellernegotiations
  • 157. ticketmaster SEARCH SearchResu包for"n、ePhantom01theOpera" (233) StYðurLoelUon Grest8ots;n(1-50of232) [......"1 區王,rf'<lroOt1" lo阿IItio;fI 011.1'‘﹒ e,ty 1 的4斜的。(.r...,、", 1111?Pll ntorn01tt.oeOPE"ra *****(: '. εve倫t -h.Ph制I)n:ftIItOptra ;;刊, 1111?們l."ltOO101tt.oeOPffil *****但也雪, 。CengageLeaming2015
  • 158. Fee-for-TransactionRevenueModels (cont’d.) •Onlinebankingand financial services –Financialservicesdonotinvolveaphysicalproduct –Easy toofferon Web –Slowtotake offduetoconcernsaboutsecurity –Since2010,thegeneralleveloftrustinonline serviceshas increased –About 84 percentof allU.S. householdsuse online bankingservicestoday © CengageLearning2015 36
  • 159. Fee-for-TransactionRevenueModels (cont’d.) •Onlinebankingand financial services (cont’d.) –Growingparticipationas servicesbecome more widelyavailable –Billpresentmentservice() •Providesanelectronicversionof an invoice orbilling statement(creditcardormobile phoneservicesstatement)withall of thedetails •Allowsto viewall ofthebills and payeach of themwith a single click –Accountaggregationtools() •Toobtain bank, investment,loan,andother financial accountinformationfrommultiple Websites and display it all in one location atthebank’sWebsite 37
  • 160. Fee-for-TransactionRevenueModels (cont’d.) © CengageLearning2015 38 •Travel –Travelagencyrevenuemodel:receivefeeforfacilitatingatransaction(airplaneticket,hotelreservation,autorental,orvacationpackage) –Travel sites generaterevenuethrough: •Commissions •Websiteadvertising fees(advertising-feerevenue model) –Theonlinetravelsites wereabletodisintermediate many traditionaltravel agencies •Theywereable tonegotiatebetterdealsonhotelrooms andairlineseatsthat theypurchasedforresale
  • 161. Fee-for-TransactionRevenueModels (cont’d.) •Travel(cont’d.) –Populartravel Websites •Travelocity(based onSabrecomputersystemthat traditional travelagencies used tobookflightsand hotelrooms) arning2015 © CengageLe 39
  • 162. Fee-for-TransactionRevenueModels (cont’d.) •Automobilesales –Websitesimplementthefee-for-transactionrevenue modeldifferently –Informationservice(Autobytel, Edmunds.com) •Theweb sites offeranindependentsource of information,reviews,andrecommendationsregarding auto makesandmodels;locate local dealers –Carsalesperson:disintermediated •Thefirmlocatesdealersinthebuyer’sareathat arewilling to sell the carspecified bythebuyer •Buyercanpurchase thecarwithout negotiatingwith a salesperson •Website: new intermediary(reintermediation) •Could reducethetransaction costsintheprocess 40
  • 163. Fee-for-TransactionRevenueModels (cont’d.) ©CengageLearning2015 16 3 •Realestateandmortgageloans –Brokeragefirmsand individualrealestatebrokers featureonlineinformationon properties –Havinga strongonlinepresence, including informationaboutproperties,alongwithcontact informationforindividualbrokers affiliated –2008financialcrisis •Dramaticallyreducednumberof mortgagebrokersinbusiness •Somebrokersstillprovideinformationand takes mortgageloanapplicationsonline
  • 164. e)Fee-for-ServiceRevenueModels ©CengageLearning2015 16 4 •CompaniesofferWebservice –Fee basedonthevalueoftheserviceprovided •Not abroker service •Not basedontransactions-processednumberorsize •Onlinegames –Salesrevenuesource •Advertising (anolderconceptinthepast);pay-to-play forpremiumgames;subscription fees –Gamesdesignedto be playedon mobiledevices •Oneof thefastest growingsegments
  • 165. Fee-for-ServiceRevenueModels (cont’d.) ©CengageLearning2015 16 5 •Professionalservices –Medical,legalandotherprofessionalpractices •Patientsor clients mayset appointmentsandreceiveonline consultation •Concernsaboutprotecting the privacyof their patients orclientsonlinearise –Web sites offer generalhealthcare professionals •Havebeenreluctant tosell specificadvicesonline •Experiencing difficulty of diagnosing medical problems without a physicalexamination
  • 166. FreeforMany,Feefora Few •Economics ofmanufacturing –Differentforphysicalanddigitalproducts –Unit costhighpercentageof physicalproducts –Unit costverysmallfordigitalproducts •Leadstoadifferentrevenuemodel –Offerbasicdigitproduct tomany for free –Chargea fee tosome for differentiated products •Examples:Yahooe-mailaccounts •Enhanced version:no advertisement,able to send large attachments,morestoragespace fortheire-mails. •Inverselogic applied tophysicalproducts: freesamplesto attract sales(cookie samples) 44
  • 167. 2.Creating anEffectiveBusiness PresenceOnline •Organization’spresence –Publicimageconveyedtostakeholders(利害關係人) –Usuallynot importantor tendnot to worry •Until growthreachessignificantsize –Stakeholders •Customers,suppliers, employees,stockholders, neighbors, andgeneral public •EffectiveWeb presence –Criticaleven forsmallestandnewestWeboperating firms –Stakeholdersof aWebbusinessknowthe company onlythrough itsWebpresence 45
  • 168. IdentifyingWeb Presence (網站形象) Goals •Businessphysicalspace –Mustsatisfymany businessneeds •Convenientforcustomers,sufficientspaceandfeaturesto allow selling, balance inventorystoragespace andemployeeworkspace •Oftenfails to conveya good presence •Webbusinesssite –Intentionallycreates distinctive()presences –Good Web sitedistinctivedesignprovides: •Effective image-creation/ image-enhancingfeatures •Serveasa salesbrochure,aproductshowroom,afinancial report,anemploymentad,and acustomercontactpoint 46
  • 169. 47 FIGURE3-5 Webpresenceobjectivesandstrategies Objectives Strategies Attractingvisitors tothe Web site IncludelinkstotheWebsite(orspecificpages)inmarketinge- mails Makingthesiteinteresting enoughthatvisitorsstay andexplore Productreviews,comparison features,adviceon howto use a product orservice Convincingvisitorsto followthe site’slinksto obtaininformation Clearlylabeledlinksthatincludea hintof theinformationto be obtainedby followingthem Creatinganimpression consistentwiththe organization’sdesired image Usingestablishedbranding elementssuchas logos,characters usedinother advertisingmedia,or slogans
  • 170. © CengageLearning2015 48 FIGURE3-5 Webpresenceobjectivesandstrategies Objectives Strategies Buildingatrusting relationshipwithvisitors Ensuringthe validityandobjectivity () ofinformationpresented on thesite Reinforcingpositive imagesthatthevisitor might alreadyhaveabout the organization Presentinginformationabout awards,linkstoexternalreviewsor articlesaboutthe organizationor its products andservices Encouragingvisitors to returnto thesite Featuringcurrentinformationabouttheorganizationoritsproductsandservicesthatisregularlyupdated
  • 171. MakingWebPresenceConsistent withBrandImage •DifferentfirmsestablishdifferentWebpresence goals(eventhose in thesameindustry) •CocaColaWebsitepages –Usuallyincludetrustedcorporateimage(Coke bottle) –Image: traditionalpositionas a trustedclassic •PepsiWebsitepages –Hyperlinksto activities and product-relatedpromotions –Image: upstartproduct favored byyounger generation 49
  • 172. Not-For-ProfitOrganizations(非營利組織) communicationlinks to visitors 50 •Websites’ key goals –Informationdissemination() •Successfulsite key elements –Integrateinformationdissemination with fund-raisinginonelocation –Usually justone or twoclicks awayfroma pageoffering memberships –Providetwo-waycontactchannel •Websites usedto stay in touch withexistingstakeholders andidentifynewopportunitiesforservingthem •Politicalparties: –Offerinformationabout partypositionsonissues, recruitmembers,keepexisting membersinformed,andprovide
  • 173. 3.WebSiteUsability(網站實用性) © CengageLearning2015 51 •CurrentWeb presences –Few businessesaccomplishallgoals –Mostfail to providevisitorssufficientinteractive contactopportunities –ImprovingWeb presence •Accessibleto morepeople •Easier touse •Encouragevisitors’ trust •Fosterfeelingsof loyaltytowardtheorganization
  • 174. HowtheWebIs Different 17 4 •Simplemid-1990sWeb sites –Conveyedbasicbusinessinformation –Fewfirmsconductedmarketresearch –What kindsofthingspotential visitors mightwanttoobtain fromtheseWeb sites? –Fewfirmshade-mailaddresslinks on theirsites •Webobjectivesoftenunmet –Failure tounderstand howWebdiffersasa mediafor presence-building •Websites designedto createanorganization’spresence –Contain linksto standardinformationset(the organization’s history,mission statement,productsor services,financial information,andcontact) –Successdependentonhow thisinformationoffered
  • 175. Meeting theNeeds ofWebSiteVisitors © CengageLearning2015 17 5 •SuccessfulWeb businesses: –Realizeevery visitoris a potentialcustomer(partner) •Challenge: –To meet allmotivationsofvisitors –Visitorsarrivewithdifferentneeds,experience,and expectationlevels –Problemsposedby thediversityof visitor characteristics,technologyissues (different Web browsersrunningondifferent devices,different bandwidths…)
  • 176. Meeting theNeeds ofWebSiteVisitors (cont’d.) © CengageLearning2015 17 6 •VariedmotivationsofWebsitevisitors –Learningaboutcompany productsor services –Buyingproducts orservices –Obtainingwarranty,service, andrepairpolicy information –Obtaininggeneralcompanyinformation –Obtainingfinancialinformation –Identifyingpeople –Obtainingcontactinformation –Followinga linkintothe site whilesearchingfor informationabouta related product,service,or topic
  • 177. MakingWebSitesAccessible (讓 網站容易親近) •Build interfaceflexibilityoptions –Text-onlyversion •Thebest ways toaccommodatea broadrangeof visitorneeds, including disabilities –Option toselectsmallergraphicimages –Choiceofstreamingmediaconnectiontype –User-specifiedinformationattributes •Controversial()Websitedesignissues –E.g.,AdobeFlashsoftware use •CreateanimatedgraphicelementsonWebpages •Flash files arelarge, takesa longtimeto download, nonstandardinterface, doesnot workonAppleiPhone oriPad 55
  • 178. MakingWebSitesAccessible(cont’d.) 56 FIGURE3-8AccessibilitygoalsforbusinessWebsites © CengageLearning2015 BusinessWebsitesneedto: •Offereasilyaccessiblefactsabouttheorganization •Allowvisitorstoexperiencethesiteindifferentwaysandat differentlevels •Providevisitorswithameaningful,two-way(interactive) communicationlinkwiththeorganization •Sustainvisitor attentionandencouragereturnvisits •Offereasilyaccessibleinformationaboutproductsandservices andhowtousethem
  • 179. Trustand Loyalty(信任與忠誠) Researchersfound thata 5% increaseincustomerloyalty (theproportionofreturningcustomers)canyieldprofit increasesof 25%to 80% •Sustainedgoodservice leadsto sellertrust –Delivery,orderhandling, help selectingproduct,and after-salesupport •Repeatedsatisfactory service buildscustomerloyalty •Customerserviceweaknesses –Lackof integration betweencall centersand Websites (thecustomerservice representativedoesnothaveinformationaboutWebtransactions) –Growingdisappointmentine-mailresponsiveness(slow to respond,neverresponse) 57
  • 180. UsabilityTesting() 58 •Usabilitytesting is the testing andevaluationof asite by itsownertoensureease ofuse forsitevisitors. •Recognizedimportanceof usabilitytesting –AvoidsWeb site difficulty and confusion •Customersleave sitewithoutbuyinganything –Simplesiteusabilitychanges •Includetelephonecontact information •Staffa call center –Learnaboutvisitorneedsby conductingfocusgroups (焦點團體) –Usabilitytesting cost •Low comparedto Website designcosts
  • 181. Customer-Centric() Web SiteDesign © CengageLearning2015 59 •Importantpartofsuccessfulelectronic business operation •Focusonmeeting allsitevisitors’needs •Customer-centric()approach –Putting customeratcenterofallsitedesigns •Follow guidelinesandrecommendations •Makevisitors’Webexperiencesmoreefficient, effective, memorable •Givespecial considerationsformobiledevices
  • 182. Customer-CentricWebSite Design 60 Guidelinesand recommendations •Design the sitearoundhow customerswillnavigatethe links. •Helpcustomersaccessinformationquickly. •Useconcise(簡潔)descriptive language ratherthaninflated(誇 大)marketingstatementsinproduct orservicedescriptions. •Avoid usingindustryjargon andspecializedterms. •Build thesite to workforvisitorswhoareusing older andslowerdevices. •Be consistent inuse of designfeaturesandcolorsthroughoutthesite. •Avoid Webpagedesign elementsthatlooklikebannerads. •Makesurethatnavigation controls areclearlylabeled. •Test textvisibility on arangeof monitorsizes. •Checkto makesure thatcolor combinationsdonot impairviewingclarity (清晰度)forcolor-blind visitors.
  • 183. 4.UsingtheWebto Connectwith Customers © CengageLearning2015 61 •Importantelementofa corporateWeb presence •Identifyand reachouttocustomers
  • 184. TheNatureofCommunicationon the Web •Communicationmodes() –Personal contact (prospecting)model •Individually searchfor,qualify,andcontactpotential customers •Thisapproachis calledprospecting –Massmedia() •Prepareadvertisingandpromotionalmaterialsaboutthefirm anditsproductsorservices •Delivermessagesbybroadcastingontelevisionorradio, printingin newspapersormagazines,postingonhighway billboards •Internetmedium –CompaniesviewtheirWebsites as broadcasts –Provideindividualstheconvenienceof makingpersonal contacts 62
  • 185. Seller Massmedia One-to-many Sendsafewcarefullycraftedmessagestoall Thousandsormillionsofviewers,listeners,orreaders Seller VJ m m 仔 b m 劃Mα w 仔 ev wd h 剖 叫 別 TM 剖 m Personalcontact One-to-one Salesperson Information-seeking Websitevisitors Customerorprospect @CengageLearning2015 O,j FIGURE3-9Businesscommunicationmodes
  • 186. TheNatureofCommunicationon the Web(cont’d.) © CengageLearning2015 18 6 •Characteristics ofcommunicationmodes –Massmedia:one-to-many communicationmodel(一 •對多傳播模式) •Seller is active; buyerispassive –Personalcontact:one-to-onecommunicationmodel •Interchangeinframeworkof existingtrust relationship –TheWeb:one-to-one,many-to-one, andmany-to- many communicationmodels •Buyerasactive participant in determininglength, depth, andscopeof search
  • 187. Summary © CengageLearning2015 18 7 •Businessesareusingsix mainapproachesto generate revenueon theWeb,including:theWebcatalog,digital contentsales,advertising-supported,advertising- subscriptionmixed,fee-for-transaction,andfee-for- servicemodels. •Creatinganeffective Web presenceis criticalforthe firms operatingon theWeb. •CompaniescouldimprovetheirWeb presencesby makingtheirsitesaccessibleto morepeopleand easier to use. •Firmsmustunderstandthenatureofcommunicationon the Webso they can useitto identifyandreach the largestpossiblenumberof customersandqualified prospects.
  • 188. Exercise © CengageLearning2015 67 •Assumeyouarelookingtobuya laptopcomputerto useatschool.Listfivefeatures orcharacteristics thatwouldbeimportantforyou tohave in sucha device.Usingyourlist,describetheadvantagesand disadvantagesofshoppingonline(instead ofin a physicalretailstore) for thelaptopcomputer.Asyou writeyouranswer,youmightfindithelpfulto considerwhichofyour desiredfeatures or characteristics wouldbeeasieror moredifficultto evaluatewhenshoppingonline.