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Laudon MIS13 Ch10

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Chapter10

E‐commerce: Digital 
Markets, Digital Goods

VideoCases
VideoCase1:DealsGaloreatGroupon
VideoCase2:Etsy:AMarketplaceandCommunity
VideoCase3:FordManufacturingSupplyChain:B2BMarketplace 6.1

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

ManagementInformationSystems
Chapter 6: Foundations of Business Intelligence
Chapter 10: E‐commerce: Digital Markets, Digital Goods

LEARNING OBJECTIVES

• Describe the unique features of e‐commerce, digital  markets, and digital goods.
• Describe the principal e‐commerce business and revenue  models.
• Explain how e‐commerce has transformed marketing. • Explain how e‐commerce has affected business‐to‐business  transactions.
• Describe the role of m‐commerce in business and the most  important m‐commerce applications.
• Describe the issues that must be addressed when building  an e‐commerce presence.
10.2
6.2

Copyright © 2013 PearsonCopyright
Education,
© Inc.
2014publishing
Pearson Education,
a
Inc.

ManagementInformationSystems
Chapter 6: Foundations of Business Intelligence
Chapter 10: E‐commerce: Digital Markets, Digital Goods

Groupon’s Business Model: Social and Local

• Problem: Competing with other business models 
utilizing social and local commerce in group 
couponing; large number of competitors
• Solution:
Solution: Get big quick to build a brand to prevent  Get big quick to build a brand to prevent
competitors from finding audience
• Demonstrates use of localization and social 
networking technologies in generating new 
business models
• Illustrates the difficulties many social networking  sites have in showing a profit or monetizing
10.3
6.3

Copyright © 2013 PearsonCopyright
Education,
© Inc.
2014publishing
Pearson Education,
a
Inc.

1

2/23/2014

ManagementInformationSystems
Chapter 6: Foundations of Business Intelligence
Chapter 10: E‐commerce: Digital Markets, Digital Goods

E‐commerce and the Internet

• E-commerce: Use of the Internet and Web to
transact business.
• Began in 1995 and grew exponentially; still
stable even in a recession.
recession
• Companies that survived the dot-com bubble
burst and now thrive.
• E-commerce revolution is still in its early
stages.
10.4
6.4

Copyright © 2013 PearsonCopyright
Education,
© Inc.
2014publishing
Pearson Education,
a
Inc.

ManagementInformationSystems
Chapter 6: Foundations of Business Intelligence
Chapter 10: E‐commerce: Digital Markets, Digital Goods

The Growth of E‐‐Commerce
The Growth of E

Figure 10-1

Retail e-commerce revenues grew 15–25 percent per year until the recession of 2008–2009, when they slowed measurably. In 2012, e-commerce revenues are growing again at an estimated 15 percent annually.

10.5
6.5

Copyright © 2013 PearsonCopyright
Education,
© Inc.
2014publishing
Pearson Education,
a
Inc.

ManagementInformationSystems
Chapter 6: Foundations of Business Intelligence
Chapter 10: E‐commerce: Digital Markets, Digital Goods

E‐commerce and the Internet

• Eight unique features of Internet and Web as 
commercial medium
– Ubiquity 
– Global reach
Gl b l
h
– Universal standards
– Richness
– Interactivity
– Information density
– Personalization/customization
– Social technology
10.6
6.6

Copyright © 2013 PearsonCopyright
Education,
© Inc.
2014publishing
Pearson Education,
a
Inc.

2

2/23/2014

ManagementInformationSystems
Chapter 6: Foundations of Business Intelligence
Chapter 10: E‐commerce: Digital Markets, Digital Goods

E‐commerce and the Internet

– Ubiquity 
• Internet/Web technology available 
everywhere: work, home, and so on, anytime.  
• Effect: 
Effect:
– Marketplace removed from temporal, geographic 
locations to become “marketspace”
– Enhanced customer convenience and reduced 
shopping costs

• Reduces transaction costs
– Costs of participating in market... Show More

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