Management 265Introduction to E-Commerce

Nicholas A. Davis

Session Three

09/29/2009

Session Three• Describe the basic consumer behavior concepts behind

internet marketing• Identify and describe how technology supports online

marketing• Explain how online market research is conducted• Identify the major forms of online marketing

communications• Discuss the ways in which a website can serve as a

marketing communications tool• Discuss the main ethical, social and political issues raised

by e-commerce• Explain the different forms of intellectual property and

challenges faced in protecting intellectual property rights

Assignments

• Read chapters 6-8

• Submit the ethical implications paper (individual)

• Discuss article on ethical issues related to e-commerce

• Submit case analysis (team)

• Continue to wok on e-commerce functions paper

Case Analysis (Team)

• Describe which case you selected and why you selected it.

• What did you know about the subject prior to the assignment?

• What did you learn from the assignment?

• What are your opinions on the subject?

• Are your opinions different now than they were previously?

E-commerce Function Paper

• Questions?

Shopping Online

• How do you shop online?• When do you shop online?• Where do you shop online?• Why do you shop online?• How long do you spend shopping at a e-

commerce site?• Which products will you buy and not buy on the

Internet?• What is your motivation for shopping online?

Class Profile

• Describe the profile of the class and lecturer in relation to e-commerce

• Cultural information• Social Information• Psychological Information• Demographic Information• Select a product to market to the class• Discuss an e-commerce strategy for the

product

Internet Marketing Concepts• Law of one price• Price dispersion• Library effect• Ubiquity• Global reach• Universal standards• Richness• Interactivity• Information density• Personalization/Customization• Social technology

Ethical Issues in E-Comemrce

• Identify and clearly describe the facts

• Identify the conflict or dilemma and identify the higher order values involved

• Identify the stakeholders

• Identify the options that you can reasonably take

• Identify the potential consequences of your options

Ethical Issues in E-Comemrce (Continued)

• The Golden Rule

• Universalism

• Slippery Slope

• Collective Utilitarian Principle

• Risk Aversion

• No Free Lunch

• The New York Times Rule

• The Social Contract Rule

Legal and Ethical Issues List

• On the white board, we will write down as many legal and ethical issues as we can

• Legal

• Ethical

• What are the top three from each list?

• Identify strategies for dealing with these top issues

Class Legal and Ethical Discussion

• Page 552, Scenario #5

• Why should the firm comply or not comply with the judicial request?

• What moral dilemmas present themselves?

• What types of value conflicts are there?

• How do you propose that society resolves these value conflicts?

Ethical Implications Paper

• Share highlights from your ethical implications paper

• Discuss your news article related to e-commerce ethics

Working With web Bugs Discussion

• Pages 375-377

• Should the government regulate web bugs?

• Do you like the name web bugs, or does it carry a certain negative meaning to you?

• How would you regulate web bugs? Government, at the desktop level, self regulating by website?

Digital Millennium Copyright Act

• Makes it a crime to circumvent anti-piracy measures built into most commercial software.

• Outlaws the manufacture, sale, or distribution of code-cracking devices used to illegally copy software.

• Does permit the cracking of copyright protection devices, however, to conduct encryption research, assess product interoperability, and test computer security systems.

• Provides exemptions from anti-circumvention provisions for nonprofit libraries, archives, and educational institutions under certain circumstances.

• In general, limits Internet service providers from copyright infringement liability for simply transmitting information over the Internet.

Digital Millennium Copyright Act

• Service providers, however, are expected to remove material from users' web sites that appears to constitute copyright infringement.

• Limits liability of nonprofit institutions of higher education -- when they serve as online service providers and under certain circumstances -- for copyright infringement by faculty members or graduate students.

• Requires that "webcasters" pay licensing fees to record companies.• Requires that the Register of Copyrights, after consultation with

relevant parties, submit to Congress recommendations regarding how to promote distance education through digital technologies while "maintaining an appropriate balance between the rights of copyright owners and the needs of users.“

• States explicitly that "[n]othing in this section shall affect rights, remedies, limitations, or defenses to copyright infringement, including fair use..."

Digital Millennium Copyright Act

• Page 552, Exercise #3

• Make a list of the protections afforded property owners and users of the copyrighted material

• Does the legislation balance the interests of owners and users appropriately

• Do you have any suggestions for strengthening the “fair use” provision of the legislation?

Additional Concerns