basic computer concepts what is commerce?
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Basic Computer Concepts What is Commerce?. Commerce , or doing business , is a negotiated exchange of valuable objects or services between at least two parties and includes all activities that each of the parties undertake to complete the transaction. - PowerPoint PPT PresentationTRANSCRIPT
Basic Computer Concepts
What is Commerce?
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Commerce, or doing business, is a negotiatedexchange of valuable objects or servicesbetween at least two parties and includes allactivities that each of the parties undertake tocomplete the transaction.
Commerce is the activities of buying andselling.
TransactionProcess “Buyer”“Seller”
Trends and Issues - Ecommerce
Trends and Issues - Ecommerce
Basic Computer Concepts
Defining E-Commerce(EC)
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Electronic commerce is an emerging conceptthat describes the process of buying andselling or exchanging of products, services andinformation via computer networks includingthe Internet.
E-Commerce can be defined from theseperspectives:
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communications perspectivesbusiness process perspectiveservice perspectiveonline perspective
Trends and Issues - Ecommerce
Basic Computer Concepts
Origins and Growthof E-Commerce
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Electronic funds transfers (EFTs or wiretransfers): electronic transmissions of accountexchange information over private networks.
Electronic data interchange (EDI): occurs whenone business transmits computer-readable datain a standard format to another business.
Trends and Issues - Ecommerce
Basic Computer Concepts
Features of E-CommerceTechnology
Unique of E-commerce Technology and theirBusiness Significance:
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is ubiquitoushas global reachoperates according to universal standardsprovides information richnessis interactiveincreases information densitypermits personalization
Trends and Issues - Ecommerce
Basic Computer Concepts
Advantages of E-Commerce
E-Commerce benefits to merchants:
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Increase sales opportunities for the sellerReduce operational costsIncrease purchasing opportunities for the buyerProvide wide range of choicesUse the web to target their offers to a nichemarket"The store is always open!"Establish better relationships with customersLow cost information distributionIncreased speed to marketExpanded delivery channelsGlobal exposure and reach
Trends and Issues - Ecommerce
Basic Computer Concepts
Advantages of E-Commerce
E-Commerce benefits to consumers:
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ConvenienceInformativeValue presented upfront: Demo and freedownloadNo long wait timesEasy flow and navigationSearch capabilitiesEngaging presentationConstant updatesEasy to buy
Trends and Issues - Ecommerce
Basic Computer Concepts
Disadvantages ofE-Commerce
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Cost and JustificationSecurity and PrivacyLack of trust and user resistanceOther limiting factors
Trends and Issues - Ecommerce
Basic Computer Concepts
Major Types ofE-Commerce
§ Market relationships§
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Business-to-Consumers (B2C)Business-to-Business (B2B)Consumer-to-Consumer (C2C)
§ Technology-based§
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Peer-to-Peer (P2P)Mobile Commerce (M-Commerce)
“Seller”
Business
Business
Consumer
Consumer
“Buyer”
Business
Consumer
Business
Consumer
TransactionProcess
B2B
B2C
C2B
C2C
Trends and Issues - Ecommerce
Basic Computer Concepts
B2B E-Commerce
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Electronic means for business to businessinteraction
Examples:vv
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Online purchasingOnline supplier integrationOnline information services
Ø Largest form of e-commerce
Ø Other models have developed§ e-distributors§ infomediaries§ B2B service providers
Trends and Issues - Ecommerce
Basic Computer Concepts
B2C E-Commerce
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Electronic means for business to customerinteraction
Examples:• online shopping• online service• online technical support
Most commonly discussed type
Online businesses attempt to reach individualconsumers
Trends and Issues - Ecommerce
Basic Computer Concepts
C2B E-Commerce
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Electronic means for customer to businessinteraction
Examples:• Answering to surveys• Sharing/selling customer’spreferences
• Providing reviews, ratings,etc.
Trends and Issues - Ecommerce
Basic Computer Concepts
C2C E-Commerce
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Electronic means for customer to customerinteractionExamples:
• Online auctions (with intermediary?)• Online classified ads• Online communities
Ø Provide a way for consumers to sell to eachother
Ø Consumer:§ prepares the product for market§ places the product for auction or sale§ relies on market maker to provide catalog,
search engine, and transaction clearingcapabilities
Trends and Issues - Ecommerce
Basic Computer Concepts
P2P E-Commerce
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Peer-to-Peer technology enables Internet usersto share resources without going through acentral server
Ex: Napster: uses P2P to find and share onlinemusic
Trends and Issues - Ecommerce
Basic Computer Concepts
M-Commerce
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Wireless digital devices enabletransactions on the Web
Uses personal digital assistants (PDAs) toconnect
Used most widely in Japan and Europe