E-Marketplaces: Structures and Mechanisms Chapter 2 E-Marketplaces: Structures and Mechanisms

Transactions, Intermediation, and Processes in EC SELLERS, BUYERS, AND TRANSACTIONS THE ROLES AND VALUE OF INTERMEDIARIES IN E-MARKETPLACES Brokers Infomediaries e-distributor An e-commerce intermediary that connects manufacturers with business buyers (customers) by aggregating the catalogs of many manufacturers in one place—the intermediary’s Web site. Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Transactions, Intermediation, and Processes in EC Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Transactions, Intermediation, and Processes in EC disintermediation Elimination of intermediaries between sellers and buyers. reintermediation Establishment of new intermediary roles for traditional intermediaries that have been disintermediated. Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Participants, Transactions, Intermediation, and Processes in EC Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Electronic Catalogs and Other Market Mechanisms The presentation of product information in an electronic form; the backbone of most e-selling sites. Electronic catalogs can be classified on three dimensions: The dynamics of the information presentation The degree of customization Integration with business processes Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Electronic Catalogs and Other Market Mechanisms Online Catalogs Versus Paper Catalogs Customized Catalogs Implementing E-Catalogs Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Electronic Catalogs and Other Market Mechanisms search engine A computer program that can access databases of Internet resources, search for specific information or keywords, and report the results. electronic shopping cart An order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop. Product Configuration ONLINE CLASSIFIED ADS Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Auctions as EC Market Mechanisms A competitive process in which a seller solicits consecutive bids from buyers (forward auctions) or a buyer solicits bids from sellers (backward auctions). Prices are determined dynamically by the bids. Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Auctions as EC Market Mechanisms TRADITIONAL AUCTIONS VERSUS E-AUCTIONS Limitations of Traditional Offline Auctions electronic auction (e-auction) Auctions conducted online. DYNAMIC PRICING AND TYPES OF AUCTIONS dynamic pricing Prices that change based on supply and demand relationships at any given time. Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Auctions as EC Market Mechanisms One Seller, Many Potential Buyers forward auction An auction in which a seller entertains bids from buyers. Bidders increase price sequentially. One Buyer, Many Potential Sellers reverse auction (bidding or tendering system) Auction in which the buyer places an item for bid (tender) on a request for quote (RFQ) system, potential suppliers bid on the job, with the price reducing sequentially, and the lowest bid wins; primarily a B2B or G2B mechanism. “name-your-own-price” model Auction model in which a would-be buyer specifies the price (and other terms) he or she is willing to pay to any willing and able seller. It is a C2B model that was pioneered by Priceline.com. Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Auctions as EC Market Mechanisms Many Sellers, Many Buyers double auction Auctions in which multiple buyers and their bidding prices are matched with multiple sellers and their asking prices, considering the quantities on both sides. vertical auction Auction that takes place between sellers and buyers in one industry or for one commodity. auction vortal Another name for vertical auction portal. Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Auctions as EC Market Mechanisms BENEFITS, LIMITATIONS, AND IMPACTS OF E-AUCTIONS Benefits of E-Auctions Limitations of E-Auctions Minimal security Possibility of fraud Limited participation Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Bartering and Negotiating Online ONLINE BARTERING bartering The exchange of goods or services. e-bartering (electronic bartering) Bartering conducted online, usually in a bartering exchange. bartering exchange A marketplace in which an intermediary arranges barter transactions. Consumer-to-Consumer Barter Exchanges ONLINE NEGOTIATING Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

E-commerce in he wireless environment: M-commerce and L-commerce I-mode: a successful mobile portal Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Cometition in the digital economy and its impact on industries Ecosystem Competitive factors Exhibit 2.8 porter's competitive forces model: How the internet influences industry structure Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Impacts of EC on business processes and organizations Exhibit The Analysis-of-impacts framework The changing face of marketing How customization is done online:the case of nike shoes changes in the supply chain Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Managerial Issues What about intermediaries? Should we auction? Should we barter? Should we sponsor blogs and wikis? Can we blog for business? Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Summary E-marketplaces and their components. The role of intermediaries. The major types of e-marketplaces. Electronic catalogs, search engines, and shopping carts. Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Retailing in Electronic Commerce: Products and Services Chapter 3 Retailing in Electronic Commerce: Products and Services

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Learning Objectives Describe electronic retailing (e-tailing) and its characteristics. Define and describe the primary e-tailing business models. Describe how online travel and tourism services operate and their impact on the industry. Discuss the online employment market, including its participants, benefits, and limitations. Describe online real estate services. Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Learning Objectives Discuss online stock-trading services. Discuss cyberbanking and online personal finance. Describe on-demand delivery of groceries and similar products/services. Describe the delivery of digital products and online entertainment. Discuss various e-tail consumer aids, including comparison-shopping aids. Describe disintermediation and other B2C strategic issues. Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Internet Marketing and Electronic Retailing OVERVIEW OF ELECTRONIC RETAILING electronic retailing (e-tailing) Retailing conducted online, over the Internet. e-tailers Retailers who sell over the Internet. Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Internet Marketing and Electronic Retailing SIZE AND GROWTH OF THE B2C MARKET WHAT SELLS WELL ON THE INTERNET CHARACTERISTICS OF SUCCESSFUL E-TAILING Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

E-Tailing Business Models Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

E-Tailing Business Models CLASSIFICATION BY DISTRIBUTION CHANNEL Direct marketing by mail-order retailers that go online Direct marketing by manufacturers Pure-play e-tailers Click-and-mortar retailers Internet (online) malls Chapter 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall