Chapter 1: Printerest

1. Why does Pinterest view Google as its primary competitor?

Pinterest now describes itself as a visual bookmarking tool for discovering and saving
creative ideas and potential purchases) with less emphasis on sharing with friends. Search has
become the core part of its mission, and as such, Google, which is dominant in search, is now
a primary competitor.
   Pinterest view’s Google as its primary competitor because most people use Google to
search for what they are looking for. Many people use Pinterest to get ideas or inspiration,
even when they don’t know exactly what they’re looking for. Pinterest wants to be the place
that people go to when they are searching for ideas, and they are slowly becoming so. I use
Pinterest when I want to see lots of images and different ideas. Google images isn’t always
the best quality. Many things that are Pinterest can also be searched for on Google, so that’s a
big reason why they’re a competitor. 
2. Why does Pinterest focus on the smartphone platform when it develops new features
and products?
Pinterest focuses on the smartphone platform when it develops new features and products
because, in 2017, the clear majority (80%) of Pinterest's traffic originated from mobile
devices.
The majority of Pinterest’s traffic activity is originated by mobile devices, considering that
most of its activity comes from mobile devices, it makes sense that they focus on the
smartphone platform when developing new features and products. When you’re on Pinterest
on a mobile device, you can constantly scroll through images without ever having to leave
one page. Most people use smartphones instead of desktops nowadays, so Pinterest wants to
focus on what people are using the most. Users can also purchase items through Pinterest
using the mobile app. It saves lots of time.
3. Why is copyright infringement a potential issue for Pinterest?
Copyright infringement is a potential issue for Pinterest because the basis of Pinterest's
business model involves users potentially violating others' copyrights by posting images
without permission and/or attribution. Although Pinterest's Terms of Service puts the onus on
its users to avoid doing so, the site knowingly facilitates such actions by, for example,
providing a Pin It tool embedded in the user's browser toolbar. Much content on the site
reportedly violates its Terms of Service. Pinterest has provided an opt-out code to enable
other sites to bar its content from being shared on Pinterest, but some question why they
should have to take action when Pinterest is creating the problem. Another thing Pinterest has
done to try to ameliorate the problem is to automatically add citations (attribution) to content
coming from certain specified sources, such as Flickr, YouTube, Vimeo, Etsy, Kickstarter,
and SlideShare, among others. In 2013, it entered an agreement with Getty Images in which it
agreed to provide attribution for Getty content and pay Getty a fee, Pinterest says it complies
with the Digital Millennium Copyright Act, which requires sites to remove images that
violate copyright, but this too requires the copyright holder to be proactive and take action to
demand the images be removed. Christopher Boffoli, a well-known photographer, filed a
federal lawsuit against Printerest in late 2014 alleging that Pinterest users used his
photographs without his permission, and that Pinterest failed to take adequate measures to
remove them. In September 2015, Boffoli agreed to dismiss the case, presumably as part of a
confidential settlement with Pinterest, leaving the legal issues raised unresolved.
Copyright infringement is a potential issue for Pinterest because the users post pictures from
other people without any kind of permit. This is causing Pinterest some problems,
furthermore, they are having similar issues with videos posted from YouTube and similar
sources. Sometimes pins have to be deleted because they belong to someone who didn’t want
them use publicly. I’ve had this happen with a couple pins on my page, they simply delete the
pins and nothing else happens so I don’t think it’s a huge deal. Most of the pins are put online
to be used and shared by everyone.
End of chapter question
3. What are some of the unique features of e-commerce technology?
The unique features of e-commerce technology include: Ubiquity: It is available about
everywhere and always Global reach: The potential market size is roughly equal to the size of
the online population of the world.
Universal standards: The technical standards of the Intemet and, therefore, of conducting e-
commerce are shared by all nations in the world. Richness. Information that is complex and
content-rich can be delivered without sacrificing reach
Interactivity: E-commerce technologies allow two-way communication between the merchant
and the consumer.
Information density: The total amount and quality of information availableto all market
participants is vastly increased and is cheaper to deliver
Personalization Customization: E-commerce technologies enable merchants to target their
marketing messages to a person's name, interests. and past purchases. They allow a merchant
to change the product or service to suit the purchasing behavior and preferences of a
consumer.
Social technology: User content generation and social networktechnologies
4. What is a marketspace?
A marketspace is a marketplace that is extended beyond traditional boundaries because it is
removed from the restrictions of geography and time. The ubiquity of e-commerce
technologies liberates the market from these limitations.
5. What are three benefits of universal standards?
Reduced search costs for consumers
Becomes simpler, faster, with more accurate price discovery
Lower market entry costs for merchants
6. Compare online and traditional transactions in terms of richness
Traditional transactions can provide more richness in terms of face-to-face service including
visual and aural cues. However, traditional transactions are limited in terms of how many
people can be reached at a single time. Online transactions, which can be global in reach, can
provide content that is both complex and rich, overcoming the traditional trade-off between
reach and richness.
8. What is Web 2.0? Give examples of Web 2.0 sites and explain why you included them
in your list.
Web 2.0 is a set of applications and technologies that enable user-generated content, such as
online social networks, blogs, video and photo sharing sites, and wikis. Students may list
Facebook, Pinterest, Twitter, YouTube, Instagram Wikipedia, Tumblr, and WordPress,
among others, as example sites
9. Give examples of B2C, B2B, C2C, and social, mobile, and local e-commerce besides
those listed in the chapter materials.
The answers to this question will vary. Possible examples include:

- B2C: E-tailers: Bluefly, Uncommon Goods

- B2C: Service Providers: Expedia, Travelocity

- B2C: Portals: Yahoo, MSN

- B2C: Content Providers: WSJonline, Consumer Reports

- B2B: Grainger, Ariba, Amazon Business

- C2C: Craigslist, Etsy

- Social e-commerce: Buy buttons on Pinterest. Facebook and Instagram

- Mobile e-commerce: Mobile retail websites and apps, Mobile banking websites and
apps, Mobile travel services websites and apps, Mobile Advertising, Mobile content, Mobile
payment services

- Local e-commerce: LivingSocial, On-demand service companies.

10. What are some of the privacy issues that Facebook has created?
Privacy advocates, politicians, and commentators point to the following practices as threats to
the privacy of Facebook users:

₋ Facebook collects information without telling users or making it possible for them to
easily opt out.

₋ Facebook has made it more difficult for users to find out how their personal
information is being used, or who it is being shared with.

₋ Facebook fails to explain how it creates user profiles.

₋ Facebook makes it difficult for users to change privacy settings.

₋ Facebook makes it very difficult to understand its information use policy.

Chapter 2:  Dollar Shave Club

1.      What is Dollar Shave Club's business model and how does it differ from its
competitors?
The Dollar Shave Club’s business model is a subscription-based business model that products
are sent directly to customers’ homes at a low price with only 1$. By that way, Dollar Shave
Club can underprice Gillette to gain market share in the razors and blades industry.
Furthermore, it minimizes its production cost by making poor quality products, cutting out
retail stores with simple design to use easily to save money. Their main purpose is to create a
lifestyle brand opposite of other simple delivery services.
2.      What are the key elements of Dollar Shave Club's value proposition for
consumers?
Dollar Shave Club creates a different value proposition for the customer than other giant
razor companies such as Unilever, Gillette.  The target customer of this company is American
young men. Dollar Shave Club employees try to figure out what features of razors that men
were looking for. They focus on the demand for this customers segment. In contrast to other
big companies producing complexed and expensive razors, their products have a simple
design at a reasonable cost.
3.      What revenue model does Dollar Shave Club use and why does it work for them?
Dollar Shave Club use a subscription revenue model that their customers subscribe to their
service every month. This model offers many different options to meet exactly customers’
need. It works really well for them because they will have a loyal customer base and might
become ambassadors for their brand. The customers do not have to order by themselves.
When subscribing this service, their card will be charged automatically and razors are sent to
their home the same day every month.
4.      How would you characterize Dollar Shave Club’s online business strategy?
Dollar Shave Club began their online business strategy with a viral video that was launched
on the Internet in 2012. Dubin, the founder of the company, appeared in an online
promotional video introducing his company. Through the video, the company’s services are
highlighted, including comparison with high-cost razors in the market and their unnecessary
features. In 2018, the video attracts a large views as a marketing trick. Dollar Shave Club use
online-only videos as well as social media as a marketing purpose to get customer attention
5.      How have Dollar Shave Club's competitors responded?
The growth of Dollar Shave Club is a threat to its competitors. One of the major competitors
in the shaving market is Gillette. In 2017, Gillette launched a new service called Gillette On
Demand which allows customer using text message to order new razors. Furthermore, they
offer a lot of good services such as offering a fourth free order after three regular orders,
receiving orders within 3 business days, offering a competitive price. In addition, in response
to criticism that product prices were too high, Gillette reduced the price of products and ran
marketing campaigns to bring the customer back. They also sued Dollar Shave Club for
patent infringement but they failed. They make an effort to add a new feature to their razors
with free cost. Although that, Gillette still lose traction in this shaving market.
Chap 3: Akamai
1.      Why does Akamai need to geographical disperse is servers to deliver its customer’s
Web content?
They needed to disperse its servers because it is the best way to solve delays to its customers.
Storing copies of their web content in different locations will make web pages to lad faster.
2.      If you wanted to deliver software content over the Internet, would you sign up for
Akamai’s service? Why or why not?
I will sign up for Akamai’s service. Some of their clients include Apple, and NASDAQ. It
has servers all over the world so it would guarantee a fast access from any place around the
world, so it would be a smart investment.
3.      What advantages does an advertiser derive from using Akamai’s service? What
kinds of products might benefit from this kind of service?
Using Akamai’s service would practically guarantee that your website will work fast and the
server will not crash. If something like this happens, the customers will go to a different
website that works properly, and you do not want to loss clients for your business. Products
like videos and pictures with a lot of traffic are some of the products that might benefit from
this kind of service.
4.      Do you think Internet users should be charged based on the amount of bandwidth
they consume, or on a tiered plan where users would pay in rough proportion to their
usage?
I do not think that getting charge based the amount of bandwidth consume would be a good
idea. People that need the Internet from professional use would have to pay a ridiculous
amount of money for the service, while the normal citizen would have a poor Internet
connection. I believe that the actual system works pretty well.
Question 
1.      What are the three basic building blocks of the Internet?
The three basic building blocks of the Internet are packet switching, the TCP protocol, and
client/server computing.
2.      What technological innovations made client/server computing possible?
The technological innovations that made client/server computing possible are the
development of personal computers, and local area networks.
3.      What is the goal of the Internet2 project?
Better network and support of the service. However, it is not only a faster connection but also
more powerful tools for research and development.
4.      What are the basic capabilities of a Web server?
The basic capability that a web server must have is to serve the files to the users. Security is
another important capability that computers must have since a lot of the people’s information
is located in some servers. 
5.      Why are mobile apps the next big thing?
Mobile apps are the next big thing because it facilitates desire for connectivity, they are
always available and easy to use; app development improvement, every year new phone
applications and new features come out; reach millennials, since they are the new generation
coming up, and ready to enter the labor force companies want to know what they want;
affordability, they do not have an extra cost and provide a great service.
Chap 4
1. Why did Dick’s decide to leave eBay and take over its own e-commerce operations?
The cost of working with eBay was growing rapidly as Dick’s became more successful in
online sales. The fees eBay charged rose a percentage of sales even though it cost eBay no
more to fulfill an expensive order than an inexpensive order.  Dick’s also wanted to
customize its web operations to the needs of its customers, in particular to develop an
omnichannel business.
2. What is Dick’s omnichannel strategy?
Dick’s plans to use its physical stores as mini-distribution centers, fulfilling online orders
from local and regional customers from physical stores located nearby. The stores can also
act as showrooms for its goods, and customers could pick up online orders in nearby stores
the same day.
3. What are the three steps in Dick’s migration to its new website?
Step 1 involves developing the new site and integrating it with their existing systems. Step 2
involves moving its lesser brands to the new platform and continuing to develop the platform.
Step 3 involves moving its primary website, Dick’s Sporting Goods, onto the new platform.
4. What are the primary benefits of Dick’s new system?
Among the primary benefits are the ability to buy online and pick up in store and the ability
to test different pricing and marketing approaches by region. Other benefits include an
improved search engine and better analytics capabilities. Dick’s also hopes to achieve higher
sales because multi-channel customers spend three times as much as single-channel
customers.  Finally, the new system allows Dick’s to speed up the innovation and
development cycles of its online and physical store operations.
Chap 6 
1.      Pay a visit to your favorite portal and count the total of ads on the opening page.
Count how many of these ads are (a) immediately of interest and relevant to you, (b)
sort of interesting or relevant but not now, and (c) not interesting or relevant. Do this 10
times and calculate the percentage of the three kinds of situations. Describe what you
find and explain the results using this case.
I normally used Google, but it does not have any ads so I tried Yahoo. I assume that since I
never use it the ads I have seen are kind of “randomly” selected. I have visited the main site a
couple times and most of the ads were located in the c category; only a couple of them,
products that I have previously search on Amazon (5), were located in the category (b). 
2.      Advertisers use different kinds of “profiles” in the decision to displays ads to
customers. Identify the different kinds of profiles described in this case, and explain
why they are relevant to online display advertising.
Trade-off between privacy and efficiency, display products that the consumer wants;
expanding the scope, breadth, and depth of personal information, targeting based on the
behavior of the customer; tracking cookies/number, captures what people is searching; data
exchange firm, targeting personification, the advertisers choose who to show their ads;
banner ads based on granular vision, ads based on cookies; tracking process to individual-
level behavior, evaluates individual in real time.
They are relevant because depending of the clients the advertisers want to reach; it would
choose the most effective method to reach them. 
3.      How can display ads achieve search-engine-like results?
They can be successful because tracking what these potential clients are interested in, can
give enough information in order to know who can be a potential customer and who not in
order to focus on the potential buyers. 
4.      Do you think instant display ads based on your immediately prior clickstream will
be as effective as search engine marketing techniques? Why or why not?
Sometimes they will. Let’s say I visit a clothing brand for women because I am thinking
about buying something for a girlfriend, my mom, or my sister, it would not make sense to
me if I start seeing ads about women clothing all time. However, it can be a powerful web of
advertising on regular basis since during long periods of time some sort of website will be
more visited by the customer and it would provide a closer profile of the client. 
Questions
1.      Is growth of the Internet, in term of users, expected to continue indefinitely?
What, if anything, will cause it to slow?
Internet users increase every year, but eventually most of the population will have access to
it, so the increments will be smaller. 
5.      What are some of the changes that Google has made to its search engine
algorithms to improve search results and user experience?
Mobile-Friendly, if the page that you are trying to find does not show up on your mobile
device, it might be because it does not offer a mobile-friendly interface. 
10. What pricing strategy turned out to be deadly for many e-commerce ventures
during the early days of e-commerce? Why?
Free services. They though it would bring enough customers, which would be willing to pay
a premium fee in the future but the outcome did not work out. Instead customers jumped to
different options, and even though they had a big number of consumers during the time, they
did not find the way to make it profitable. 
15. What are some reasons why online advertising still constitutes only about 28% of
the total advertising market?
The TV industry stills being an important industry that counts will millions of daily users.
For that reason, businesses keep investment on it, plus some people still watching more TV
and shopping at the physical location, than online content and online shopping. 
20. What are Web analytics and how are they used?
Web analytics are different software that measure, collect, and report web data with the
objective of understanding and optimizing the web site. Web analytics are being used to track
information of the customers and predict future purchasing and behavioral acts. 
6.      Visit Facebook and examine the ads shown in the right margin. What is being
advertised and how do you believe it is relevant to your interests or online behavior?
You could also search on retail product on Google several times, and related products,
then visit Yahoo or another popular site to see if your past behavior is helping
advertisers track you.
The ads located in the right margin on Facebook when I opened it were related to sports
events and providers of the events, and sport clothing companies; last night I was reading a
sports newspaper related with the game that was being advertised. You can determine that
these companies have tracked my web searches or have access to them, in fact, when I search
some products on Amazon or Craigslist, the next web page I visit is normally full of the kind
of products I was searching a minute before.
Chap 7
1.      Find a site on the Web that offers classified ads for horses. Compare this site to
ExchangeHunterJumper.com in terms of the services offered (the customer value
proposition). What does the Exchange offer that other sites do not? 
Bigeq.com is one popular site that also offers classified ads for horses, and is probably
ExchangeHunterJumper.com’s strongest competitor. One service that the Exchange offers
that this site does not is that the Exchange professionally screens horses that are listed, while
Bigeq.com allows anyone to post sales ads. Therefore, the horses on the Exchange are more
likely to be appropriately described and have a better track record than those on Bigeq.com.
However, this does mean that Bigeq.com typically has more horses listed than the Exchange
does. Another service that the Exchange provides is that all of the horses listed have high-
quality videos and photos embedded within the site that the customer can view, while not all
of the horses on Bigeq.com have videos or photos, and those that do are linked to YouTube,
some of which are not very good quality. The Exchange continually updates information on
the horses available, while the ads on Bigeq.com are static once they have been submitted by
the seller.
2.      In what ways were social media effective in promoting The Exchange brand?
Which media led to the most increase in sales and inquiries? Why?
ExchangeHunterJumper.com uses the following social media: Facebook, Twitter, YouTube,
RSS Feeds, and an iPhone app. The biggest increase seems to have come from Facebook
although the YouTube videos also appear to have had an impact also. Facebook probably
worked so well because of its viral recommending features (the Like button) and the ease
with which word can be spread on Facebook.
3.      Make a list of all the ways the Exchange attempts to personalize its services to both
sellers and buyers.
Works with individual sellers and trainers on the sell side to create effective ads, including
photos and videos.
Develops a personal strategy for each horse (horses have personalities too!).
Buyers fill out forms and expected budgets.
Personal e-mail responses to buyer queries.
Searching for suitable horses
Making recommendations. 
Chap 12
1.   If you were a small chemical company, what concerns would you have about joining
Elemica?
Is the cost worth the benefits of joining Elemica? 
What do you lose by being in Elemica’s community platform?  “It unites community
members by linking together their enterprise systems.”
Although small and medium firms do not need to have an ERP system to connect
to Elemica, they do require some level of technological sophistication even to use the
online portal. Elemica offers a Web portal for those companies not as technically
sophisticated as the larger global chemical companies. For all firms, Elemica reduces the
burden on IT staff. In fact, one of the missions of Elemica is to help companies do more
with fewer resources—including IT staff. As a small firm, you would be concerned that
you would be able to respond to requests for large quantities of commodities that might
be requested by partners. 
2.   Elemica provides a community for participants where they can transact, coordinate,
and cooperate to produce products for less.  Yet these firms also compete with one another
when they sell chemicals to end-user firms in the automobile, airline, and manufacturing
industries.   How is this possible?
This is possible because Elemica is like a network or trading hub that caters to this
particular industry.  It allows companies and firms of all sizes to compete without a
middleman.  This helps level the playing field and improve efficiency.

This is a difficult question. The chemical industry is very interrelated with a long history of
firms buying/selling from each other. All firms in the industry at one point or another end up
with spare inventory they would like to sell, or come short on specific chemicals preventing
order execution. The Elemica hub is perceived as a neutral trading platform where all can
benefit from lower-cost-to-serve, greater efficiencies, and overall more efficient operations
that can serve customers better. By keeping bids and quotations anonymous, and the
community fairly large and open, members can get a sense of “market price” and available
quantities quite easily without revealing their names.
3.   Review the concept of private industrial networks and describe how Elemica illustrates
many of the features of such a network.  In what ways is it different from a private
industrial network?
Elemica facilitates transactions of all types including order processing and billing, and
logistics management.
Diminish communication barrier and reduces overhead and errors.
Elemica offers cloud-based solutions for four area: Logistics Management, Customer
Management, Suppler Management, and Sourcing Management.
Gives safe and reliable deliveries.

 Like a private industrial network, Elemica is focused on long-term relationships with

partners to reduce long-term costs for the firm. Unlike a private industrial network, it’s not
just a single large firm that controls the network, but rather it is owned by key industry
members trying to coordinate the transactions in an entire industry. 
Questions:
1.   Explain the differences between total B2B commerce and B2B e-commerce.
Before the Internet, B2B referred to the procurement process.  The term now refers to all
types of inter-firm trade to exchange value across organizational boundaries.  It does not
include transactions that occur within the boundaries of a single firm.
B2B e-commerce is a term to describe specifically that portion of B2B commerce that is
enabled by the Internet, including mobile apps.
3. List at least five potential benefits of B2B e-commerce
B2B e-commerce promises many strategic benefits for participating firms, both the buyers
and the sellers including:
 lower administrative costs
 lower search costs for buyers
 reduced inventory costs due to increased competition among the suppliers (which
increases price transparency) and reducing inventory to a bare minimum
 lower transaction costs due to the elimination of paperwork and the partial automation
of the procurement process
 increased production flexibility by ensuring delivery of parts “just-in-time”
 improved quality of products due to increased cooperation among buyers and sellers,
reducing quality issues
 decreased product cycle time due to the sharing of designs and production schedules
with suppliers
 increased opportunities for collaborating with suppliers and distributors
 increased price transparency
4. Name and define the two distinct types of procurements firms make. Explain the
difference between the two.
The two types of procurements that firms make are for direct goods and indirect goods.
Direct goods are directly involved in the production process such as the sheet steel used to
produce an automobile body. Indirect goods are all other goods that are needed to carry out
the production process, but are not directly involved in creating the end product. They include
office supplies and maintenance products, which are often called MRO (maintenance, repair
and operations) goods.
5.   Name and define the two methods of purchasing goods.
1.    Contract purchasing—involves long-term written agreements to purchase specified
products, under agreed-upon terms and quality, for an extended period of time.
2.    Spot Purchasing—involves the purchase of goods based on immediate needs in
larger marketplaces that involve many suppliers.
6. Define the term supply chain and explain what SCM systems attempt to do. What
does supply chain simplification entail?
The supply chain refers to the series of transactions that links sets of firms that do business
with each other. It includes not only the firms themselves, but also the relationships between
them and the processes that connect them. SCM (supply chain management) systems attempt
to coordinate and link the activities of suppliers, shippers, and order entry systems to
automate the order entry process from start to finish. This includes the purchase, production,
and moving of a product from a supplier to a purchasing firm. Supply chain simplification
refers to the reduction of the size of a firm’s supply chain. Firms today generally prefer to
work closely with a strategic group of suppliers in order to reduce both product costs and
administrative costs. Long-term contract purchases containing pre-specified product quality
requirements and pre-specified timing goals have been proven to improve end product quality
and ensure uninterrupted production.
7. Explain the difference between a horizontal market and a vertical market.
Horizontal markets serve a myriad of different industries. An electronic storefront is an
example of a horizontal market in that it tends to carry a wide variety of products that are
useful to any number of different industries. Vertical markets, on the other hand, provide
expertise and products targeted to a specific industry. EDI (electronic data interchange)
systems usually serve vertical markets.
8. How do the value chain management services provided by e-procurement companies
benefit buyers? What services do they provide to suppliers?
The value chain management services benefit buyers by automating a firm’s entire
procurement process including purchase orders, requisitions, sourcing, business rules
enforcement, invoicing, and payment. For the suppliers, they provide automation of the entire
selling business process including catalog creation and content management, order
management, fulfillment, invoicing, shipment, and settlement.
10.   Identify and briefly explain the anticompetitive possibilities inherent in Net
marketplaces.
Some anticompetitive possibilities could be:
It could be biased against suppliers because they can force suppliers to reveal their prices
and terms to other suppliers in the marketplace.
 Big firms could collaborate and force suppliers to sell at lower price.
  Access to some markets dominated by large firms could force small firms to pay higher
prices.
9. What are the three dimensions that characterize an e-procurement market based
on its business functionality? Name two other market characteristics of an e-
procurement Net marketplace.
The three dimensions that characterize an e-procurement market based on its business
functionality are that (1) they are horizontal marketplaces (2) in which long-term contractual
purchasing agreements are used (3) to buy indirect goods. Other market characteristics of e-
procurement Net marketplaces are that they are independently owned, that they are many-to-
many markets, and that they use fixed price catalogs. E-procurement companies serve as
intermediaries connecting hundreds of online suppliers offering millions of MRO goods to
business firms who pay a fee to join the market, thus it is a public marketplace. They are
mediated by an independent third party that purports to represent both buyers and sellers;
however, they are likely to have a bias in favor of the buyer because they include the catalogs
of competing suppliers and competing e-distributors.
15.   What are the barriers to the complete implementation of private industrial networks?
  Concern with sharing proprietary and sensitive data which could potentially be shared
with its closest competitor.
Integrating private industrial networks into existing enterprise systems and EDI networks
poses a significant investment of time and money
Requires a change in mindset and behavior for employees and suppliers
Recognize fate is intertwined with their suppliers and distributors
All lose some of their independence
20.   What is a cloud-based B2B platform and what advantages does it offer?
The cloud platform owner provides the computing and telecommunications capability;
establishes connections with the firm’s partners; provide software on-demand to connect
the firm’s systems to its partners’ system; performs data coordination and cleaning; and
manages data quality for all members. 
Advantages are the expense of B2B systems is shifted from the firm to the B2B network
provider, and the cost of these tasks and capabilities is spread over all members, reducing
costs for all.
Different between B2B and B2C business model.
B2B
Definition B2B, on the other hand, stands for
‘Business to Business’, and is
used to refer to transactions
between two companies. So, a
wholesale manufacturer selling to
a retailer is engaging in B2B
eCommerce.
Overall B2B buyers are professionals that
buyer are buying because it’s required
experienc for their job. Your product is
e fulfilling a specific company
need. The buying decision won’t
be spur of the moment but
instead planned for. B2B buying
schedules are often synced up
with departmental needs. B2B
customers decide based on logic,
facts, and finding the best price
Group vs. In B2B sales, you need to provide
individual the decision-maker with all of the
decision relevant materials needed to make
making an educated decision. With B2B
you’ll typically also have the
ability to create multiple customer
accounts within a single business.
So, you’ll have a management
account that can review the order
before it’s placed, along with a
purchaser account to actually
choose the products from your
store.
Most B2B buyers will buy from
Long or you for a very long time. Once
short they’re found a supplier that fills
buyer their business need there’s really
lifecycle no need to switch unless new
advancements come into the field,
or you happen to get undercut by
a competitor. Now, the customer
B2C
B2C stands for ‘Business to Customer’,
it’s the concept that most consumers will
be familiar with. When Target sells
products via their website, they’re
engaging in B2C eCommerce — because
they’re selling to customers.
In B2C stores the customer experience is
much different. They will be buying
because your product fulfills an
emotional need. B2C purchases are
going to be driven by desire and
motivation. Fulfill a pressing need and
people will buy your product. With B2C
your website needs to be streamlined to
reduce any points of buyer friction, such
as difficulty in adding products to the
cart or having a lengthy checkout
process.
With B2C the purchasing approval
process isn’t something you’ll have to
worry about. You’re dealing with a one-
on-one customer decision. This can make
the B2C sales process much faster, as all
you’ll need is a single person to pull out
their credit card to make the sale.
That is why in B2C you’ll see an
emphasis on persuasion tactics and
getting people to check out a “not to
miss” offer more directly. In eCommerce
email marketing, for instance, the B2C
retailers in fashion or electronics have a
tendency to go for urgency triggers and
have multiple cycles with new
collections each year. 
With B2C eCommerce, you won’t get as
many repeat or bulk orders. But, still
having a user account with past orders
will be important regardless of your store
type.
 acquisition process will take
longer in B2B than in B2C, but
you’ll see a higher revenue per
customer, as you’ll see below.
B2B buyers are looking for
lifetime partnerships, compared
to B2C buyer relationships
which are often one-off or
sporadic in nature.
With B2B, the core focus will be
Feature on what your product does and the
or benefit tangible need it solves. You’ll
based be leaning heavily towards the
marketin features of the product, instead
g of the benefits, the business will
receive. In order for a B2B buyer
to make a purchase they’ll need to
see how ordering from you will
help their bottom line, while
fulfilling a need.The B2B market
has a greater penchant for
knowledge surrounding your
product.
B2C markets are more emotional in
nature, so your marketing will cater
more towards the benefits of the
product. Your product’s message must
be simple, clear, and easy to understand.
You’ll be focusing more on the end
result of your product, on what your
prospects life will look and feel like with
your product. With B2C you’ll take the
time-tested approach to marketing,
which is appealing to benefits, not
features. B2B eCommerce = Focus on
features. B2C eCommerce = Focus on
benefits.

In B2B markets it’s common
Price practice for prices to be hidden
discrepan until a user creates an account.
cies Prices are also generally more
negotiable and based upon an
agreement. B2B customers will
receive different prices for the
products based upon future
purchase agreements, past buying
history, and more.
With B2C eCommerce the prices are
always spelled out, what you see is what
you get. Now, you may offer customer
discounts for loyal customers, or
coupons when you’re running sitewide
specials. But, there isn’t any built-in
negotiation for the price of the products
you’re selling.
This can make B2B pricing a little more
complex, as it’s customer specific and
based on a tangible relationship with the
buyer. Not priced just to move the most
products.

Supply chain management (SCM) - continuously link the activities of buying, making, and
moving products from suppliers to purchasing firms, as well as integrating the demand side
of the business equation by including the order entry system in the process

Supply chain management (SCM) systems - refers to a wide variety of activities that firms
and industries use to coordinate the key players in their procurement process

E-distributor - provides electronic catalog that represents the products of thousands of direct
manufacturers
E-procurement Net marketplaces - independently owned intermediary that connects
hundreds of online suppliers offering millions of maintenance and repair parts to business
firms who pay fees to join the market

Value chain management (VCM) services - include automation of a firm’s entire

procurement process on the buyer side and automation of the selling business processes on
the seller side just-in-time production a method of inventory cost management that seeks to
eliminate excess inventory to a bare minimum lean production a set of production methods
and tools that focuses on the elimination of waste throughout the customer value chain

Tight coupling - a method for ensuring that suppliers precisely deliver the ordered parts, at a
specific time and particular location, to ensure the production process is not interrupted for
lack of parts

Liquidity - typically measured by the number of buyers and sellers in a market, the volume
of transactions, and the size of transactions

Industry consortium - industry-owned vertical market that enables buyers to purchase direct
inputs (both goods and services) from a limited set of invited participants

Collaborative resource Planning, Forecasting, and Replenishment (CPFR) - involves

working with network members to forecast demand, develop production plans, and
coordinate shipping, warehousing, and stocking activities to ensure that retail and wholesale
shelf space is replenished with just the right amount of goods

Trans-organizational business process -process that requires at least two independent firms
to perform
Just-in-time production- a method of inventory cost management that seeks to eliminate
excess inventory to a bare minimum
Lean production- a set of production methods and tools that focuses on the eliminationof
waste throughout the customer value chain
Tight coupling- a method for ensuring that suppliers precisely deliver the ordered parts, at a
specific time and particular location, to ensure the production process is not interrupted for
lack of parts
Collaborative commerce the use of digital technologies to permit organizations to
collaboratively design, develop, build, and manage products through their life cycles
Exchange- independently owned online marketplace that connects hundreds to potentially
thousands of suppliers and buyers in a dynamic, real-time environment
Multi-tier supply chain- the chain of primary, secondary, and tertiary suppliers The term
multi-tier supply chain is used to describe the complex series of transactions that exists
between a single firm with multiple primary suppliers, the secondary suppliers who do
business with those primary suppliers, and the tertiary suppliers who do business with the
secondary suppliers.