E-Commerce

Chapter 5
Short Notes/ Short questions:

1. Market segments in different tv shows-

 Daytime- detergent, soap, stores
 Golf tournament- golf equipment, insurance
 Cartoons- toys, chocolates
 Late night talk shows- non-prescribed pills.
 Movies add- snacks
 Documentary- books, series, educational dud

2. Acquisition cost- cost that occurs while turning visitors into customers. Like-
advertisement cost.
3. Retention cost- cost that occurs to retain customers to buy product or service again.
Like- valid coupon, discount cards etc.
4. Conversion- first time buying process for a visitor cost.
5. Banner exchange network- showing my banner in others site and others in mine. Ex-
voltrunk, hit exchange.
6. Interstitial ads- where clicking links open advertisement instead of webpage. It needs to
refresh.
7. 3 (three) elements of branding
 Differentiation (Product Different than existing)
 Relevance ( How product will be useful for consumers)
 Perceived value( What Value will be added from the product)

Broad Questions:
1. What is web management? Describe the 4 (four) P’s of marketing.
web management refers to all of the activities included in the process of posting and
maintaining a website on the World Wide Web
 Product-
 Design (Attractive)
 Packaging (How the product will be packaged)
 Features/ consumer perception (What consumers will be having from the product)
 Branding (Creating value in consumer’s minds)
 Quality(Ensuring good quality)
  Price-
 Discounts ( When high competition- so that consumer buy products)
 Differential pricing (Different price for different sized products – Sunsilk
Shampoo)
 Value to customer (Should add value to the consumer with the price)
 Customer price sensitivity (Charming price like $11.99 to attract more)
 Price to compete other products (Relative price to competitor’s products)
 Promotions-
 Advertisement- (Billboards)
 public relation ( iPhone community on facebook)
 personal selling ( Selling at door)
 Online communication (Live chat on webpage)
 Place-
 Logistics ( Difference between physical and online selling is that physical selling
requires high inventory cost)
 Distribution channel (No distribution channel for Ecommerce business)
 Inventory (For physical stores its costly, for online market its maintained with
Artificial Intelligence )
 Market coverage (Online market coverage is higher than traditional market)

2. Describe the ways of communication with different market segments.

 Trust, product complexity and media choice

Low Product Service Complexity High

Mass Media Web Personal Contact

Low Trust High

 Market segments- segmenting a group of consumers based on their buying preferences

Daytime- detergent, soap, stores

Golf tournament- golf equipment, insurance
Cartoons- toys, chocolates
Late night talk shows- non-prescribed pills.
Movies add- snacks
Documentary- books, series, educational dud

 Web market segmentation – Segmenting market with Cookies and User preferences
  Offering customers a choice- Pinterest.

3. Describe customer behavior and relationship intensity.

 Segment using customer behavior (customers like to eat Breakfast items at morning and
lunch items at afternoon)
 Web browser
 (Cookies from past memories,
 trigger words(Present activities)
 Buyers
 (Regular buyer)
 (One click system- sends directly to transaction page)
 Shoppers
 (frequent users)
 (Shopping Cart system)
 (They use comparison tools to differentiate pricees
 Alternative models-
 Simplifiers- medical stores, elderly
 Surfers- don’t buy just visit webpage
 Bargainers- doesn’t want to buy at given price
 Routiners- Consumers who comes back again at the site (to purchase timely
medicines)
 Sport stars- Consumers who comes back but not in a fixed time
 Connectors- who brings other customers to the site.

4. Describe customer relationship intensity and life-cycle segmentation.( (intensity and

time graph)

 Awareness (Creating awareness with campaigns )

 Exploration (Setting booth to let consumers to know that the product doesn’t have any
flaws)
  Familiarity (When consumer gets to know about the product but also try competitor’s
products. Must introduce competitive advantage here)
 Commitment ( Consumers get committed to a product)
 Separation (Starts disliking product and doesn’t consume anymore)

5. Describe funnel model. (funnel graph)

 Needs Identification (500,000 people ad)

 Search & Gather information (10,000 information seekers)
 Evaluate Alternatives (900 shoppers)
 Complete Purchase (500 complete purchase)
 Conversion (80% loyal customers)

 Content and advertising model (Emails with pdf , catalogues attached)

 Outsourcing email (third party sending emails on my behalf)

Chapter 6
Short Notes/ Short questions:
3. Spot purchasing- purchase of indirect goods on materials. Ex- Daily Household goods.
4. 2 (two) types of material tracking technology-
 ASCX12- Numerical. Ex- 580, 587
 UNEDIFACT- alphabetical. Ex- PURCHASE N, PURCHASE K
5. Industry marketplace- New seller cannot enter into market usually. There is monopoly seller
and many buyers.
9. Customer portal- a portal open for all. Everyone can know the product details.
10. Industry-consortia sponsored marketplace.

11. Direct VAN- interconnected company with its bank, warehouse, retailers, finished good
manufacturer etc. data is interchanged between them.

Broad Questions:
1. Describe all 3 (three) business support activities-
 Finance and business administration-
 conducts payment from supplier, consumer,
 planning and budgeting expenditure,
 computer infrastructure.
 Human resource- employee hiring, recruitment, evaluating, training and development.
 Technology development- creating and maintaining of new technology. Connecting the
researchers and collaborating with them.
.
3. Define SCM using internet technology. Also discuss the advantages of internet enables SCM-

SCM – Supply Chain Management.

 Tier 1 (Supplies Direct Goods)
 Tier 2 (Creates Collaboration between Tier 1 & 3)
 Tier 3 (Supplies Indirect goods)

Advantages
 Share the information about customer behavior change
 Share the information about product change and adjustment
 Speed up transaction process
 Inform about product specification
 Reduces the cost of handling
 Reduce the rate of transaction data error.

4. Describe all types of electronic marketplace portals-

A) market places-
 Industry market place ( One Industry/seller – Monopoly)
 Public market place (Open Market place – New buyer/seller can enter)
 Independent industry market places (Mix of public and & Industry market place)
(Equilibrium, Industry Consortia Sponsored Market place)

B) store-
 Private store (Need to enter with password – Only the owner can access)
 Customer ported (Open for all- can know about product details)

Chapter 7
Short Notes/ Short questions:
2. Mention the mobile operating systems that support mobile commerce-
Windows, palm os, blackberry os(RO), apple os, android os. Can also be used for mobile banking
( Google wallet, iPay)

3. What is private valuation?

Product sold at higher price than its actual value in an auction.

4. What is shill bidders?

Fake bidders who increase the value of bids.

Broad Questions:
2. Describe revenue model for social networking sites-
 Ad supported sites- fb, twitter. No subscription fee
 Mixed revenue- linked in. both free subscription and premium subscription available.
Generate revenue from subscriptions.
 Fee based virtual community- google answers, yahoo answers etc. Need to pay to get
service
 Micro lending virtual community sites- Users can lend and borrow money from here,
and it generates revenue from transaction. ex- microplace.com
 Internal virtual community sites- less revenue. Internal within a company. Ex- uiuELMS

3. Describe all types of traditional auctions-

 English auction/ ascending price auction/ open auction :
 Sold to highest bidder(starts from minimum amount).
 Auctions hosted by Broker/3rd Party.
 One seller many buyers
 Shill bidders are hired here
 Private valuation happens (Product sold at higher price than actual price)
 Multiple products auctioned = Yankee auction

 Dutch auction:
 Starts from highest price then reduces with time depending on the
product quality ( Ex- Perishable goods, Flowers)

 First price sealed bid auction :

 Buyer bids in a sealed envelope (Other parties don’t know) and sold to
highest bidder
 Second price sealed bid auction :
 Buyer bids in a sealed envelope .
 Sold to 2nd highest bidder.
  Shill bidders
 Open outcry auction
 Many seller and multiple buyers for same and different products. (Ex-
eBay, Amazon)
 Double auction
 Both buyer and seller bids and when matched with requirments then
after communication products are sold.
 Reverse auction
 Usually sold at less price ( One buyer multiple seller)

4. Describe all types of online auctions-

 General consumer auctions
 Seller and buyers gather here.
 Many seller and buyers
 Every product has different seller but combined there is multiple seller
(Amazon)
 Specialty consumer auction
 Multiple seller for one specified products ( Wine auction – cigarbids.com)
 Consumer reverse auctions
 Customer posting products to find buyers ( Bikroy.com)
 Group shopping sites
 With increase of buyers , the price keeps decreasing.
 It is created just to increase visitor
 B2B auctioned
 Buys unused inventory from another business.
 B2B revenue auction
 Buys from supplier at low price

with the disadvantages and advantages of using B2B reverse auction for suppliers.
Advantages-
 Quality is ensured because of highly competitive suppliers
 Product specification is clearly stated
 Suppliers willing to reduce price margin
 Suppliers willing to participate
Disadvantages-
 Highly complex product
 Switching cost high
 Need to maintain long-term relationship with suppliers.
Chapter 8
Short Notes/ Short questions:
1. Define offer-
Proposal made by one party to another.
2. Define consideration-
Willing to give something in return of something.
3. What is defamation?

Damaging the reputation of a company by providing fake information. If a company face

damages in their good will for defamation that is known as disparagement. Legal actions
one can take against defamation is known as per-se-defamation.

4. Give example of valid contracts-

A signs a contract with B to sell five cars every month on 2million dollar.

Broad Questions:
 Describe the types of contracts and offers on the web-
 Click wrap/ web wrap
 Written contracts on web
 Implied warranty
 Terms and service agreement
4. Describe the protection of intellectual property in online business-
 Copyright: (Books, Arts)
 If for individual author then the duration of the copyright will be lifetime of the
person + 70 years
 If for “not for profit” papers then duration will be for 95 years
 If for corporations or “not for profit creation” then it will be 120 years (Ex-
Creation of something scientific)
 Patent : exclusive right by the govt to individual based on his invention
 Full invention (20 years)
 Design (12 years)
 Trademark and service mark: (logo, product based) (Service related organization
trademark.
 Domain name:
 Must do web registree –Cybersquating
 If tries to fix a mistake done unintentionally – Typosquatting
(Fadebook.com)
5. Describe the taxation in E-commerce with example-
 Nexus- different state different taxation system ( Newyork- Washington)
 Income tax (Tax on income) (Same in small countries but tax rates can be different in
different states of big countries like USA)
 Sales tax(Tax on sales) (use tax – on users for TV, Radio license)
 Import tariff (Tax on import and selling)
 Value added tax (Tax on the middle period of being manufactured and sold)
Manufacturing Cost - $10
End Cost - $50
Value Added Tax $40