E-commerce 2014

business. technology. society.

tenth edition

Chapter 1
The Revolution Is Just Beginning

Kenneth C. Laudon
Carol Guercio Traver

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

 Eight Unique Features of
E-commerce Technology
1. Ubiquity
2. Global reach
3. Universal standards
4. Information richness
5. Interactivity
6. Information density
7. Personalization/customization
8. Social technology

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 1-2
 UBIQUITY
 It is available just about everywhere and
at all times.
 Market Place vs Market Space
 Reduce Cognitive Energy (Advantage)

Examples:-
 Accessing a bank account (24/7) | https://www.abl.com
 Purchasing from Internet. | http://www.shophive.com/
 Online Tracking | http://www.cargoserv.com/tracking.asp?Carrier=PK&Pfx=214
 Online Ticket Reservation | www.piac.com.pk
 Paying Utility Bills | https://epayment.ptcl.net.pk

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 1-3
 GLOBAL REACH
 Reach: the number of user or customers
an e-commerce business can obtain.
 Traditional Commerce base on Television , Radio, Newspaper and
Sales force.
 Using Internet Commercial transactions to cross cultural and
national boundaries
Examples:-
 100 million customers | http://www.amazon.com/
 1,310,000,000 Active Users | http://www.facebook.com/
 Growing Mobile Social Network |smsall.pk (A messaging App) [National]
 The Designers Mall | http://www.fashionsouk.com/ [Global Presence]

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 1-4
 UNIVERSAL STANDARDS
 Standards (i.e. INTERNET) shared by all
nations around the world
 Traditional commerce technologies differ from one nation to the
next ( Radio, Newspaper, TV ) etc.
 Using Internet Commercial transactions to cross cultural and
national boundaries
Benefits of Universal Standards
 Reduced search costs for consumers| http://www.google.com/
 simpler, faster, with more accurate price discovery | https://pricenoia.com/
 Lower market entry costs for merchants
 find many of the suppliers, prices, and delivery terms of a specific product
| https://www.mysupermarket.co.uk/

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 1-5
 RICHNESS
 The complexity and content of a message
- Traditional commerce national sales forces, and small retail stores
have great richness face-to-face service using aural and visual cues
when making a sale.
- But there is Trade-off between richness and reach
Benefits of Richness
 more information richness than traditional media
 chatting with an online customer support person
 sell ‘complex’ goods and services
 Compare All (Prices, attributes, Services etc)
Examples:
 http://tcsconnect.com/nokia-lumia-1520.html | Product description, Vendor info, Compare Prices etc.
 http://www.daraz.pk/ | Product Detail, Size, Color etc. ; Online Chat

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 1-6
 INTERACTIVITY
 Communication between the merchant
and the consumer.
- Traditional commerce national sales forces, and small retail
stores have great richness face-to-face service using aural and visual
cues when making a sale.
Interactivity in E-Commerce
 Customer Support | http://www.beliscity.com/support/index.php?a=add
 Customer Reviews| http://www.tcsconnect.com
 Feedback, FAQ’s, Newsletter Option | http://www.Dell.com/
 E-mail Support | http://www.amazon.com
 Live Help with customer representative | http://tcsconnect.com

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 1-7
 INFORMATION DENSITY
 Total amount and quality of information
available to all market participants
 Internet and the web vastly increase information density.
 Ecommerce technologies reduce information collection, storage, processing,
and communication costs.
 Due to E-commerce Technologies information becomes more plentiful, less
expensive and of higher quality.
 Go to Amazon, Ebay or wallmart website you can find verity of products and
prices.
Growth in information density could result in
 Greater price transparency- for customers
 Greater Cost transparency- for customers
 Marketers to practice price discrimination (Segmentation)
http://www.statisticbrain.com/facebook-statistics/ | Data use for Segmentation

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 1-8
 PERSONALIZATION & CUSTOMIZATION
 PERSONALIZATION: The targeting of marketing
messages to specific individuals.
 by adjusting the message to a person’s name, interest, and past
purchases.
Examples:- 1. Product search history on amazon.com
2. Welcome message by name on Gmail.

 CUSTOMZATION: Changing the delivered product or

service by Customer.
Examples:- 1. Add Text or Images not included in the original design
2. Customize a laptop on Dell.com.
3. http://www.customink.com | Add Text , Color to customize Shirts.

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 1-9
 SOCIAL TECHNOLOGY
 User content generation and social
networking technologies.
- socializing traditional e-commerce sites by integrating social
elements into existing retail websites.
- Social technologies are increasingly being used to connect with
customers to build strong and lasting relationships, through ratings
and reviews, blogs, Wiki’s, micro-blogging, forums and communities
like Facebook. 
Social Media Examples
 Facebook | plugins integration
 Twitter | plugins integration
 Pinterest | plugins integration
 Google+ | plugins integration

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 1-10