The e-Trading Business Models

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Presentation transcript:

The e-Trading Business Models Electronic Commerce The e-Trading Business Models B2C

Business Models of Electronic Marketing (Cont.) Global vs. Regional marketing. Global marketing. Being on the internet makes you work globally by default. Regional marketing. Perishable items like groceries cannot be sold globally. Delivery cost, legal boundaries, and language may limit global distribution.

Peapod.com Regional Shopping e-Stores

Regional Shopping Service Peapod Case (www.peapod.com) The leading Internet supermarket, providing consumers with broad product choices and local delivery services Provide pictures of items, nutritional contents, past purchase records Users: middle and upper class people, some of whom are single parents, and all of whom are very busy. Also sick and elderly people or those without transportation. Delivery within 90 min. or by appointment. Express delivery within 30 min is possible for extra charge. Although there is a monthly membership fee, the customer retention rate is 80%. The merit is convenience and time saving. $4.95/month membership fee, and $6.95 service fee + 5% of the purchased amount = cost of delivery service

Business Models of Electronic Marketing (Cont.) Sales vs. Customer service All major hardware and software companies provide customers service sites Enhance customer satisfaction Reduce the cost of maintaining call center personnel.

HP Support: Online Customer Services

HP Customer Service

HP Support

B2C Online Purchasing Aids

Aiding Comparison Shopping Search hypertext files by agents Search in a web-based database both by human and software agents within an e-mall Comparable item retrieval and tabular comparison Comparisons over multiple malls Comparisons as a multiple criteria decision making

Online Purchasing Aids (cont.) Shopbots and agents—tools that scout the Web for specific search criteria requested by consumers Mysimon.com - best prices on multiple items AutoBytel.com – cars Zdnet.com/computershopper – computers Office.com – office supplies

Electronic Commerce Books BestBookBuys.Com

Book Comparison

Comparison Shopping Compare.Net

Compare.net

Online Purchasing Aids (cont.) Business ratings sites—sites that rate e-tailers Bizrate.com—compiles results provided by a network of shoppers Gomez.com—consumer identifies relative importance of different criteria

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Review Questions Describe the major trends in B2C? Why is B2C also called e-tailing? List the major characteristics of B2C List the B2C distribution channel models. Describe how mail-order firms are going online.