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

2. 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.

3. Peapod.com Regional Shopping e-Stores

4. Regional Shopping Service
Peapod Case (
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

5. 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.

6. HP Support: Online Customer Services

7. HP Customer Service

8. HP Support

9. B2C Online Purchasing Aids

10. 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

11. 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

12. Electronic Commerce Books BestBookBuys.Com

13. Book Comparison

14. Comparison Shopping Compare.Net

15. Compare.net

19. 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

20. 20

21. 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.