Chapter 10, Problem 1RQ

Program Plan Intro

E-commerce:

• E-commerce is also known as electronic commerce or internet commerce.
• It is the process of buying and selling products online over the Internet.
• Using e-commerce, customers can exchange the goods and services electronically with no barrier of time.

Explanation of Solution

 Unique features of e-commerce:

• Ubiquity:
  • Internet technology is accessible to the customers everywhere.
• Global reach:
  • It displays that e-commerce grows to each part of the world.
  • It also allows commercial transaction among national boundaries.
• Universal standards:
  • It is also called as universal standards.
  • These standards are used for organizing e-commerce business that is exchanged across the world.
• Richness
  • Video, audio, and text messages are possible in these features.
    • These features are merged into single marketing message and consumer experience.
• Interactivity:
  • This feature works by communication with the user. The communication is done by two-way method that is the consumer and supplier.
• Information density:
  • Here, the technology decreases the information costs.
  • It improves the currency, accuracy and quality.
• Personalization/Customization:
  • This feature is used to deliver the personalized message to individual and also to groups.
• Social technology:
  • It supports the content generation and social networking.

Unique features of digital markets:

• Digital market reduces the information asymmetry.
• It is clearer than traditional markets.
• It is very flexible and well-organized.
• It is used to decrease the cost for search, transaction and menu.
• It has dynamic ability to modify the prices based on the market situations.
• It offers the chances to sell directly to the customer and bypassing intermediaries.

Unique features of digital goods:

• The goods can be distributed by a digital network.
• Once a digital product is created, the delivering cost for given product is very low.
• It is used to generate new business models.

Explanation of Solution

Four business trends shaping e-commerce:

• First business trend:
  • When comparing e-commerce with physical trade supplies and services, e-commerce is continuously increasing amongst the commerce.
  • Companies containing only physical trade supplies may start to view at getting an online occurrence according to keep to the new trends in e-commerce.
• Second business trend:
  • The second business trend depends on mobile e-commerce.
    • It will start to take off in the US states with location based services.
• Third business trend:
  • This business trend is based on the online demographics of shoppers.
    • It is develop to compare that of normal shoppers.
      • In this business trend, company ought to each demographics online.
• Fourth business trend:
  • Here, the business trend is based on small business.
  • It means that the small businesses are coming into the e-commerce marketplace and are holding benefits of cloud based computing resources.
    • It implies that businesses are reducing costs in organization and it also turns better efficient and creative.
      • Improve the productivity and creation of corporate and small businesses using the below ways:
        • Reviewing the business models in given corporate.
        • Considering a change to cloud computing services.

Three technology trends shaping e-commerce:

• Wireless internet connections
  • The internet connections such as Wi-Fi, WiMax and 4G smartphones are growing continuously.
  • People can access the internet everywhere using wireless internet connections.
• Internet based model of computing
  • The computing models include cloud computing, Software as a Service (SaaS) and database software.
    • This model helps to decrease the e-commerce websites cost.
    • The companies are viewed for well and cost-effective replacements for holding their technology.
• Social networking apps and sites
  • These apps and sites offer following services:
    • E-commerce
    • Marketing
    • Advertising
      • Businesses contain the most effective method of advertising if they are able to determine a plan that works fine with social media.

Explanation of Solution

Features of e-commerce:

The eight unique feature of e-commerce is shown below:

• Ubiquity:
  • Internet technology is accessible to the customers everywhere.
• Global reach:
  • It displays that e-commerce grows to each part of the world.
  • It also allows commercial transaction among national boundaries.
• Universal standards:
  • It is also called as universal standards.
  • These standards are used for organizing e-commerce business that is exchanged across the world.
• Richness
  • Video, audio, and text messages are possible in these features.
    • These features are merged into single marketing message and consumer experience.
• Interactivity:
  • This features works by communication with the user. The communication is done by two-way method that is the consumer and supplier.
• Information density:
  • Here, the technology decreases the information costs.
  • It improves the currency, accuracy and quality.
• Personalization/Customization:
  • This feature is used to deliver the personalized message to individual and also to groups.
• Social technology:
  • It supports content generation and social networking.

Explanation of Solution

Digital markets and digital goods:

• Digital marketing is the process of building and maintaining the customer relationships over online procedures to enable the sharing of ideas, products, and services that satisfy the goals of both parties.
• Digital goods mean goods that can be distributed by a digital network.
  • The digital goods are shipped to the customers electronically by using e-mail or download from the internet.

Distinguishing features in digital market and digital goods:

• Features of digital markets
  • Digital market reduces the information asymmetry.
  • It is clearer than traditional markets.
  • It is very flexible and well-organized.
  • It is used to decrease the cost for search, transaction and menu.
  • It has dynamic ability to modify the prices based on the market situations.
  • It offers the chances to sell directly to the customers and bypassing intermediaries.
• Features of digital goods
  • The goods can be distributed by a digital network.
  • Once a digital product is created, the delivering cost for the given product is very low.
  • It is used to generate new business models.