E-COMMERCE COMPREHENSIVE THEORETICAL OUTLINE
Building the System_______________________________________________________________________________ 41
CHAPTER 1. OVERVIEW OF E-COMMERCE____________________________________________________________________ 3
1. Concept (slide)___________________________________________________________________________________________ 3
2. Stages___________________________________________________________________________________________________5
2.1. Information________________________________________________________________________________________ 5
2.2. Transaction________________________________________________________________________________________ 5
2.3. Collaboration_______________________________________________________________________________________5
3. Classification____________________________________________________________________________________________ 5
3.1. By Target (slide)____________________________________________________________________________________ 5
3.2. By Types of Organization (slide + book1, page 11)_____________________________________________________5
4. Framework (book1, page 10)_____________________________________________________________________________ 7
5. Characteristics__________________________________________________________________________________________ 8
6. Business models in E-COM______________________________________________________________________________ 8
6.1. Transaction fee (Book 1, page 27)____________________________________________________________________ 9
6.2. Subscription fee (Book 1, p.27)______________________________________________________________________ 9
6.3. Advertising model________________________________________________________________________________ 10
6.4. Sale model (Book 1, p.27)__________________________________________________________________________ 10
6.5. Affiliate model and others (Book 1, p.27)____________________________________________________________10
7. Benefits and challenges of E-COM_______________________________________________________________________ 11
7.1. Benefits (Book 1, p.15,16)_____________________________________________________________________________11
7.2. Challenges (Book 1, p.29)___________________________________________________________________________ 11
7.3 The difference between traditional business and e-commerce business_____________________________ 12
8. Global and country-specific E-com development trends_________________________________________________ 12
8.1. Global (Book 1, p.30)________________________________________________________________________________12
8.2. Vietnam__________________________________________________________________________________________ 15
9. E-com systems_________________________________________________________________________________________ 16
CHAPTER 2. HARDWARE, SOFTWARE AND TECHNOLOGY 4.0 APPLIED FOR ECOM_________________________ 16
1. Computer network (LAN < MAN < WAN)_________________________________________________________________ 16
1.1. LAN________________________________________________________________________________________________ 16
1.2. MAN_______________________________________________________________________________________________16
1.3. WAN______________________________________________________________________________________________ 16
1.4. Internet, Intranet, Extranet (slide chapter 2 + giáo trình (2) chapter 3________________________________ 17
Câu hỏi tham khảo_______________________________________________________________________________________ 19
2. Hardware and software_________________________________________________________________________________30
2.1. Hardware_________________________________________________________________________________________ 30
2.2. Software__________________________________________________________________________________________ 30
3. Introduction to Industrial 4.0 technologies and its application in ECOM_________________________________ 30
3.1. IoTs_______________________________________________________________________________________________ 30
3.2. AR/VR____________________________________________________________________________________________ 32
3.3. Blockchain__________________________________________________________________________________ 34
3.4. Big Data__________________________________________________________________________________________ 35
3.5. AI___________________________________________________________________________________________ 36
CHAPTER 3. E-COMMERCE WEBSITE________________________________________________________________________ 39
1. Website technologies___________________________________________________________________________________ 39
2. EC Website analysis (Web development circle)__________________________________________________________40
2.1. Systems Analysis/Planning________________________________________________________________________ 40
2.2. Systems Design___________________________________________________________________________________ 41
1 2
2.3.
2.4. Testing the System________________________________________________________________________________ 41
2.5. Implementation and Maintenance_________________________________________________________________41
3. EC website attributes___________________________________________________________________________________ 41
3.1. Two ways interaction_______________________________________________________________________________41
3.2. Measurement_____________________________________________________________________________________ 41
3.3. Instantaneous____________________________________________________________________________________ 42
3.4. Global____________________________________________________________________________________________ 42
3.5. Personalization___________________________________________________________________________________ 42
4. EC Website design_____________________________________________________________________________________ 42
5. Other software support for EC website__________________________________________________________________ 42
5.1. The Foundations__________________________________________________________________________________ 42
5.2. Other EC sites tools_______________________________________________________________________________ 43
5.3. Web 2.0 Features and Services____________________________________________________________________ 44
CHAPTER 5. RETAILING IN E-COMMERCE (B2B, B2C…) (Câu hỏi thảo luận thực tế)__________________________ 44
1. Definition of electronic retailing_________________________________________________________________________44
2. Characteristics of online sale___________________________________________________________________________ 44
3. Online purchasing process_____________________________________________________________________________ 45
4. Consumer touch point_________________________________________________________________________________ 46
5. Online consumer purchasing decision-making and behavior____________________________________________46
6. Application of retailing in some business sectors________________________________________________________ 47
6.1. Health service_____________________________________________________________________________________ 47
6.2. Tourism__________________________________________________________________________________________ 47
6.3. Banking and Finance_____________________________________________________________________________ 47
6.4. Real estate_______________________________________________________________________________________ 48
7. Software application in EC Retailing____________________________________________________________________ 48
7.1. OMNI Channel____________________________________________________________________________________ 48
7.2. CRM and CDP____________________________________________________________________________________ 50
a, Definition______________________________________________________________________________________ 50
b, Features and functions_________________________________________________________________________ 50
c, Application model (Hướng dẫn sử dụng)________________________________________________________ 52
d, Differentiate CRM and CDP. What is the best solution for businesses?___________________________ 54
CHAPTER 6. ONLINE B2B TRANSACTION (Câu hỏi thảo luận thực tế)________________________________________56
1. Definition and online B2B Models_______________________________________________________________________ 56
2. Evolution of B2B Commerce____________________________________________________________________________ 56
3. Types of transaction____________________________________________________________________________________ 57
3.1. Buyers’ side (buy-side): One buyer from many sellers_______________________________________________ 57
3.2. Sellers’ side (sell side): One seller to many buyers__________________________________________________ 58
3.3. Exchange market (marketplaces or exchanges): Many sellers to many buyers______________________ 58
3.4. Supply chain improvements and 3.5. Collaborative commerce_____________________________________ 59
4. B2B Decision-making behavior_________________________________________________________________________ 59
5. B2B Infrastructure and software________________________________________________________________________ 60
5.1. EDI (Electronic Data Interchange)_________________________________________________________________ 60
- Broadly defined communications protocol for exchanging documents among computers_______________ 60
+ Stage 1: 1970s–1980s—Document automation___________________________________________________________ 60
+ Stage 2: Early 1990s—Document elimination____________________________________________________________ 60
+ Stage 3: Mid-1990s—Continuous replenishment/access model___________________________________________ 60
5.2. SCM (Supply Chain Management Systems)________________________________________________________ 61
 5.3. ERP______________________________________________________________________________________________ 62
5.4. Others____________________________________________________________________________________________ 63
○ Personalization_____________________________________________________________________________________ 64
○ Improve SEO_______________________________________________________________________________________ 64
○ Manage Customer Relationships____________________________________________________________________ 64
6. Collaborative commerce________________________________________________________________________________65
6.1. Definition_________________________________________________________________________________________ 65
6.2. Essentials of Collaborative commerce_____________________________________________________________ 65
6.3. The Elements and Processes of C-Commerce______________________________________________________65
CHAPTER 7. E-GOVERNMENT________________________________________________________________________________66
1. Overview - Book 1 Page 169_____________________________________________________________________________ 66
2. Different models (G2G, G2E, G2B, G2C) - Book 1 Page 170________________________________________________66
2.1 Government-to-Citizens___________________________________________________________________________ 67
2.2 Government-to-Business_________________________________________________________________________ 67
2.3 Government-to-Government______________________________________________________________________67
2.4 Government-to-Employees (G2E)_________________________________________________________________68
2.5 Internal Efficiency and Effectiveness (IEE)_________________________________________________________ 68
3. Framework_____________________________________________________________________________________________68
4. Government regulations on E-gov______________________________________________________________________ 68
5. Digital Government - Book 2 Page 175__________________________________________________________________ 68
CHAPTER 8. ONLINE PAYMENT AND SECURITY_____________________________________________________________ 68
1. Drivers of online payment_______________________________________________________________________________68
2. Online payment technologies (slide chap 8)____________________________________________________________ 68
3. Online payment risks___________________________________________________________________________________ 71
4. Overview of online payment in VN_____________________________________________________ 72
5. Potential risks in EC (Sách 2 từ trang 267) + slide chap 9_________________________________________________ 73
6. Legal aspects of EC security (Sách 2, Từ trang 305)______________________________________________________ 78
7. E-contract______________________________________________________________________________________________79
8. EC security solutions (slide chap 9)_____________________________________________________________________ 79
CHAPTER 10. DIGITAL MARKETING__________________________________________________________________________ 80
1. Overview_______________________________________________________________________________________________ 80
2. Online marketing research and segmentation__________________________________________________________ 80
2.1. Online marketing research and techniques (Book 1 - 371)___________________________________________ 80
2.2. Market segmentation_____________________________________________________________________________ 82
3. Online marketing strategies____________________________________________________________________________ 82
3.1. Pricing Strategies (Slide Chap 10 - page 47)_________________________________________________________82
3.2. Placing Strategies (Slide Chap 10 - page 43)________________________________________________________82
3.3. Promoting Strategies_____________________________________________________________________________ 83
3.4. Product Strategies________________________________________________________________________________ 90
4. Chief marketing technologies__________________________________________________________________________ 90
4.1. Martech international_____________________________________________________________________________ 90
4.2. Martech Vietnam ( Slide Chap 10 - page 83)_______________________________________________________ 90
3 4
CHAPTER 1. OVERVIEW OF E-COMMERCE
1. Concept (slide)
DEFINITION: EC can be defined from these perspectives:
- Business process: E-commerce is doing business electronically by completing business process
over electronic network, thereby substituting information for physical business process (Weil and
Vitale 2001)
- Service: It is a tool that addressed the desire of governments, firms, consumers, and
management to cut service costs while improving the quality of customer service and increasing
the speed of service delivery.
- Learning: It enables online training and education schools to the customers.
- Collaboration: Which is a framework for inter- and intra organizational collaboration.
- Community: Provides a gathering place for community members to learn, transact, and
collaborate
1.1. Pure Versus Partial EC
- EC can be either pure or partial depending on the nature of its three major activities: ordering
and payments, order fulfillment, and delivery to customers. Each activity can be done physically
or digitally.
- If all activities are digital, we have pure EC; if none are digital, we have no EC; otherwise, we
have partial EC.
- If there is at least one digital dimension, we consider the situation EC, but only partial EC.
For example, purchasing a computer from Dell’s website or a book from Amazon.com is partial
EC, because the merchandise is physically delivered. However, buying an e-book from
Amazon.com or a software product from microsoft.com is pure EC, because ordering, processing,
and delivery to the buyer are all digital.
1.2. EC Organizations
- Purely physical organizations (companies) are referred to as brick-and-mortar (or old economy)
organizations, whereas companies that are engaged only in EC are considered virtual (pure-play)
organizations.
- Brick-and-mortar organizations that perform their primary business off-line, selling physical
products by means of physical agents
- Click-and-mortar is a type of business model that has both online and offline operations, which
typically include a website and a physical store. A click-and-mortar company can offer customers
the benefits of fast online transactions and traditional face-to-face service and is thus potentially
more competitive than a traditional "bricks and mortar" type of business, which is offline only.
This type of business model is also referred to as clicks and bricks.
- Click-and-mortar (click-and-brick) organizations are those that conduct some EC activities,
usually as an additional marketing channel. Gradually, many brick-and-mortar companies are
changing to click-and-mortar ones (e.g., GAP, Walmart, Target).
1.3. Internet versus Non-Internet EC
- Most EC is done over the Internet, but EC also can be conducted on private networks, such as
value- added networks, local area networks, or on a single computerized machine.
- Non-Internet EC includes the use of mobile handwriting-recognition computers used by field
reps to write their notes in the field.
2. Stages
2.1. Information
2.2. Transaction
2.3. Collaboration
In general, selling and buying electronically can be either business-to-consumer (B2C) or
business-to-business (B2B). Online transactions are made between businesses and individual
consumers in B2C, such as when a person purchases a coffee at store.starbucks.com or a
computer at dell.com. In B2B, business transactions are made online between businesses, such
as when Dell electronically buys parts from its sup- pliers. Dell also collaborates electronically
with its partners and provides customer service online e-CRM.
3. Classification
3.1. By Target (slide)
- Exchange: A public electronic market with many buyers and sellers
- Exchange-to-exchange (E2E): E-commerce model in which electronic exchanges
formally connect to one another for the purpose of exchanging information
3.2. By Types of Organization (slide + book1, page 11)
- Business-to-business (B2B): E-commerce model in which all of the participants are
businesses or other organizations. Today, about 85% of EC volume is B2B. For Dell, the entire
wholesale transaction is B2B. Dell buys most of its parts through e-commerce and sells its
products to businesses (B2B) and individuals (B2C) using e-commerce.
- Business-to-consumer (B2C): E-commerce model in which businesses sell to individual
shoppers.The typical shopper at Amazon.com is this type.
- E-tailing: Online retailing, usually B2C.
- Business-to-business-to-consumer (B2B2C): E-commerce model in which a business
provides some product or service to a client business that maintains its own customers. For
instance, Alibaba Group operates a platform called Tmall, which is an online marketplace that
facilitates B2B2C transactions. Tmall connects businesses (B2B) with individual consumers (B2C)
through an intermediary platform.
- Consumer-to-business (C2B): E-commerce model in which individuals use the Internet
to sell products or services to organizations or individuals who seek sellers to bid on products or
services they need. Priceline.com is a well-known organizer of C2B travel service transactions,
where people place a request for offers at a price they are willing to pay for a specific trip.
- Mobile commerce (m-commerce): E-commerce transactions and activities conducted in
a wireless environment. For example, The Amazon mobile app is a prime example of
m-commerce, allowing users to shop for a wide range of products directly from their mobile
devices.
- Location-based commerce (l-commerce): M-commerce transactions targeted to
individuals in specific locations, at specific times. For example, The Starbucks mobile app is an
example of L-commerce as it leverages location-based features to enhance the customer
experience.
5 6
- Intrabusiness EC: E-commerce category that includes all internal organizational
activities that involve the exchange of goods, services, or information among various units and
individuals in an organization. For example, SAP (Systems, Applications, and Products) is a
multinational software corporation known for its enterprise software, including ERP systems.
SAP's ERP system is an example of Intrabusiness EC as it facilitates seamless electronic
communication and transactions within an organization.
- Business-to-employees (B2E): E-commerce model in which an organization delivers
services, information, or products to its individual employees. For example, Microsoft Teams is a
collaboration platform that exemplifies B2E by providing a centralized space for communication
and collaboration within an organization. It is part of the Microsoft 365 suite of productivity tools.
- Collaborative commerce (c-commerce): E-commerce model in which individuals or
groups communicate or collaborate online. For example, business partners may design a new
product together.
- Consumer-to-consumer (C2C): E-commerce model in which consumers sell directly to
other consumers. Examples of C2C include individuals selling computers, musical instruments,
or personal services online. eBay sales and auctions are mostly C2C as are the ads on Craigslist.
- Peer-to-peer (P2P): Technology that enables networked peer computers to share data
and processing with each other directly; can be used in C2C, B2B, and B2C e-commerce. For
example, BitTorrent is a peer-to-peer file-sharing protocol designed for distributing data over the
internet in a decentralized manner. It's commonly used for sharing large files such as software,
movies, music, and other digital content.
- E-learning: The online delivery of information for purposes of training or education. For
example, Coursera is a popular online learning platform that offers a wide range of courses,
specializations, and degrees in collaboration with universities and organizations worldwide. It
provides learners with access to high-quality educational content in various fields, from computer
science and business to humanities and health.
- E-government: E-commerce model in which a government entity buys or provides
goods, services, or information from or to businesses or individual citizens. For example, the
Vietnam e-Government Portal serves as a hub for sharing information related to government
policies, regulations, and announcements. This transparency helps citizens stay informed about
government activities.
 organize, motivate, devise strategy, and restructure processes, as needed, to optimize the
4. Framework (book1, page 10) business use of EC models and strategies.
5. Characteristics
(gộp vào mục 4)
6. Business models in E-COM
(Thông tin tổng hợp từ slides là chính + ví dụ từ trong giáo trình hoặc bên ngoài. Thông tin trong
giáo trình khác vcl :D so với slides ý nên là t sẽ note lại các trang trong giáo trình tương ứng để
lúc đi thi mng tìm trong giáo trình nhé)
BOOK 1. Phần 1.6. Trang 25-28.
- Definition: A business model is a method of doing business by which a company can generate
revenue to sustain itself. (Book 1, p.26)
- Six elements of business model: (Book 1, p.26)
+ Customers and the company’s relationships with these customers including customers’
value proposition
+ All products and services the business will offer
+ The business process required to make and deliver the products and services
+ The resources required and the identification of which ones are available, which will be
developed in house, and which will need to be acquired
+ Supply chain: including suppliers and other business partners
+ The revenue expected (revenue model), anticipated costs, sources of financing and
estimated profitability (financial viability)
- Revenue model: how the company or an EC project will earn revenue (Book 1, p.27)

EC applications are supported by infrastructure and by these five support areas:

1. People. Sellers, buyers, intermediaries, information systems and technology specialists, other
employees, and any other participants.
2. Public policy. Legal and other policy and regulatory issues, such as privacy protection and
taxation, which are determined by governments. Included are technical standards and
compliance.
3. Marketing and advertising. Like any other business, EC usually requires the support of
marketing and advertising. This is especially important in B2C online transactions, in which the
buyers and sellers usually do not know each other.
4. Support services. Many services are needed to support EC. These range from content creation
to payments to order
delivery.
5. Business partnerships. Joint ventures, exchanges, and business partnerships of various types
are common in EC.
These occur frequently throughout the supply chain (i.e., the interactions between a company
and its suppliers, customers, and other partners).
-> Infrastructure describes the hardware, software, and networks used in EC. All of these
components require good management practices. This means that companies need to plan,

7 8
 - Value proposition: the benefits a company can derive from using EC (Book 1, p.27) Eg. Spotify charges $10.99 for a monthly subscription for Spotify premium.

6.3. Advertising model

→ Companies charge others for allowing placement of banners on their websites.
Eg. Google and Youtube generate a lot of revenue from allowing businesses from small to big to
advertise on their main website.

6.4. Sale model (Book 1, p.27)

→ The revenue generated from online sales when companies sell their products/services on their
websites.
Eg. Amazon.com, Apple, Nike and a lot of other companies sell their products on the official
website and generate revenue from them.

6.5. Affiliate model and others (Book 1, p.27)

→ Affiliate model: companies receive commissions for referring customers to certain websites.
Eg. Amazon operates a program called Amazon Associates Program where individuals and
businesses can sign up to become affiliates and promote selected products on their websites
and social media platforms. Whenever customers access those links to the products, and
purchase the items, the affiliates earn commissions on the sale.
→ Licensing model: a revenue generated from allowing businesses to use a technology/service
with annual fee or per usage fee.
Eg. Microsoft receives revenue whenever an individual/organization install Windows.

TYPICAL BUSINESS MODELS IN EC (slide)

- Functions of a Business Model (Book 1, p.28)

+ Articulate a customer value proposition
+ Identify a market segment
+ Define the venture’s specific value chain structure
+ Estimate the cost structure and profit potential
+ Describe the venture’s positioning within the value network linking suppliers and
customers
+ Formulate the venture’s competitive strategy
REVENUE MODELS
6.1. Transaction fee (Book 1, page 27) - Online direct marketing: Direct marketing communicates information about a product or
→ A per-transaction fee is an expense a business must pay each time it processes an electronic business to an individual customer without using a mass distribution channel. Direct marketing
payment for a customer transaction. Per-transaction fees vary across service providers, typically campaigns use email, social media, telemarketing, and in-person meetings to speak directly to
costing merchants from 0.5% to 5% of the transaction amount plus certain fixed fees. consumers.
Eg. When a homeowner sells a house, he or she has to pay a transaction fee to the broker. The Eg. Pizza Hut reminds customers about vouchers/seasonal discounts via emails.
higher the value of the house, the higher the transaction fee. - Tendering (bidding) system: buyer requests sellers to submit bids; the lowest bidder wins
Eg. NEU requests food suppliers to open a canteen in NEU’s premises. The supplier with the
6.2. Subscription fee (Book 1, p.27)
most suitable bid will win the place. (e-tendering thường dành cho chính phủ và các cơ quan
→ Customers pay a fixed amount of money, usually monthly to receive some type of service.
nhà nước nên chưa tìm được ví dụ bên ecom)
Eg. Youtube charges $13.99 for a monthly subscription for Youtube premium.
9 10
- Name-your-own-price (reverse auction): buyer sets the price willing to pay and invites sellers - Lack of trust in sellers, computers and paperless transactions
to supply at that price - Resistance to change
Eg. Priceline - a travel company allowing consumers to set a preferred price on travel services - Unclear and unresolved legal and public policy
and suppliers will bid for the sale. - Regulations get in the way
- Viral marketing: word-of-mouth marketing in which customers promote a product/service to - Intensified global competition
friends and other people - Difficulty in measuring the costs and benefits of EC
Eg. Online stores on Tik Tok Shop can create short videos to become viral and customers will visit - Lack of collaboration along the supply chain
the shop and check out the cart’s products.
- Group purchasing: quantity purchasing (or “aggregated purchasing”) enables groups to obtain 7.3 The difference between traditional business and e-commerce business
a discount price on the products Characteristic Traditional retail E-commerce retail

7. Benefits and challenges of E-COM Expansion Physical expansion to new locations Expansion of the retail base
7.1. Benefits (Book 1, p.15,16) requirements and spaces requires increased server capacity
For organizations For individual customers For the society and distribution methods.

- Global reach - Availability -Enable Technology Automated sales technologies such - Front-end technologies
- Cost reduction - Ubiquity telecommuting as POS (Point of Sale) systems, - Back-end technologies
- Facilitate problem-solving - Self-configuration - More and better self-checkout machines - "Information" technologies
- Supply chain improvements - Find bargains public services
Customer - More sustainable relationships - Less durable due to anonymous
- Business always open - Real-time delivery - Improve homeland
relationships thanks to direct contact contact
- Customization/Personalization - No sales tax security
- Easier to reconcile in arguments - Less tolerant in arguments due to
- Ability to innovate, use new business - Enable telecommuting - Increase standard of
due to tangibility intangibility
models - Social interaction and living
- "Physical" relationship - "Logical" relationship
- Lower communication costs engagement - Close the digital
- Efficient procurement - Find unique items divide Competition - Local competition - Global competition
- Improved customer service and - Comfortable shopping - Home shipping - Fewer competitors - More competitors
relationship
- Help SME to compete Customer base - Customers in the local area - Customers in a wide area
- Lower inventories characteristics - Not anonymous - Nameless
- Lower cost of distributing digitizable - Fewer resources are needed to - More resources are needed to
products increase customer loyalty increase customer loyalty
- Provide competitive advantage
8. Global and country-specific E-com development trends
7.2. Challenges (Book 1, p.29) 8.1. Global (Book 1, p.30)
- Ethical issues - China continues to lead in global ecommerce sales according to the International Trade
- Technological limitations Association, accounting for more than 50% of all retail sales worldwide, with total online sales just
- Need for universal standards over the $3 trillion mark in 2022.
- Insufficient telecommunication - After China and the US, the third-largest ecommerce market is the United Kingdom, taking up
- Lack of software development tools 4.8% of the retail ecommerce sales share. The UK is followed by Japan (3%) and South Korea
- Difficulty in integrating Internet and EC software (2.5%).
- Additional cost from special web servers for EC - The UK is forecast to do more than $143.8 billion in ecommerce sales in 2023 (Statista).
- Internet accessibility - Latin America (including Peru, Brazil, Argentina, Chile, Colombia, and Mexico) saw $104 billion in
- Automated warehouse for order fulfillment ecommerce sales in 2022, up 22.4% from $85 billion in 2021.
- Non-technological limitations - The Singapore ecommerce market is one of the top 5 fastest growing countries in the world,
- Security and privacy concerns of customers with a 25.5% growth in sales in 2022 (Insider Intelligence).

11 12
- The US ecommerce market is forecasted to reach more than $940.9 billion in 2023, a little over a
third of China’s total (Statista).
- Recent studies show that around 218.8 million US consumers will shop online in 2023 (Insider
Intelligence).
- Over 50% of consumers shop online for free delivery, followed by coupons and discounts at
38.7%. (Data Reportal).
- Recent reports state that the average shopping cart abandonment rate is 70.19% (Baymard
Institute).
- 28% of US shoppers use mobile phones while in a physical store to look up discounts, compare
pieces, and read product reviews (PYMNTS).
- 30% of consumers report that influencer recommendations guide online purchases, compared
to only 27% for recommendations from friends or family (HubSpot).
- As of May 2023, the average conversion rate across ecommerce sites was 2.02%, a 0.2 percent
point increase from the previous month (IRP Commerce).
- B2C online marketplace sales (Think Amazon and eBay) in the US are expected to reach $2.1
trillion by 2024 (Research and Markets).
- The gap between ecommerce growth and retail growth in 2022 was nearly nonexistent, just
two-tenths of a percentage point (Insider Intelligence).
- There were 41.8 million online shoppers between 25 and 34 years old in 2022, with millennials as
the largest group amongst digital buyers (Insider Intelligence).
E-COM TRENDS IN THE FUTURE
1. Global inflation pressures
For customers worldwide, inflation has become a leading concern for 40% of
respondents—above poverty and social inequality (31%), unemployment and jobs (26%),
and coronavirus (12%).
While people are still spending money, global brands are not exempt from the pressure of
inflation. As such, if you’re planning to use cross-border ecommerce, you’ll need to
consider the impact of inflation on potential customer purchasing decisions.
Speaking to Glossy in a recent interview, Olaplex CEO JuE Wong explains how even with
net sales increases of 38.6% in Q2 2022, Olaplex isn’t immune from global inflation,
macroeconomics, and geopolitical situations. As a result, Wong says while the business is
cash-rich, it will be investing in technology (such as ecommerce solutions) and
technological capabilities to help advance growth.
With this concern in mind, it’s worth researching the inflation rates of the countries you’ll
be targeting and potentially revising your pricing strategy using the data you gather.
2. More consumers will shop on their smartphones
The pandemic made a significant impact on ecommerce trends around the world. While
retail and ecommerce revenue have stabilized again, there are still more people online
shopping than before.
M-commerce, or mobile commerce, involves shopping online through mobile devices, like
a smartphone or tablet. Mobile ecommerce will continue to break out over the next few
13
years. Technological advances like branded mobile apps, 5G wireless, and social shopping
make it easier for people to shop on their phones.
In 2022, mobile shopping from Shopify merchants captured 69% of online sales over BFCM.
Online retail continues to expand due to the increasing use of smartphones and tablets
globally. Mobile commerce is expected to account for 42.9% of ecommerce sales by 2024.
Another facet of mobile shopping, social commerce sales are set to triple by 2025. While
only 47% of US consumers report purchasing goods through social platforms, over 84% of
Chinese consumers report shopping on social networks, the highest in the world.
Expect more branded shopping apps, more SMS and Facebook Messenger marketing
campaigns, and more social commerce content on TikTok and Instagram.
3. A new mix of marketing channels
In recent years there have been exciting advancements in several areas of
advertising—including access to new marketing channels.
Social commerce has been on the radar for the past five years, with the release of
Facebook and Instagram shopping features, and, more recently, TikTok shopping.
However, as an extension of social commerce, live shopping has started to become more
popular as the strategy has soared in China. The live commerce market in China was at
$3.49 billion in 2021 and is expected to increase to $4.92 billion in 2023.
Another new marketing channel coming on the horizon is connected TV
advertising—which refers to ads you’ll find on platforms like Hulu, Roku, and YouTube. The
perception of these ads by customers are largely no different to that of linear/cable TV, but
customers comparing the two found ads on streaming services to be better.
Hoka is an athletic footwear company that recently launched a global ad campaign using
connected TV platforms, and reported a 68% increase in ecommerce website visitors and a
bump in followers on social media platforms.
4. A slowly stabilizing supply chain
The impact the pandemic made on supply chains was, according to Morris Cohen,
Wharton professor of operations, information, and decisions, “a major disruption, along the
lines of having an earthquake or tsunami.” For decades, the core features of supply chain
management were:
● Globalization
● Low-cost supply
● Minimal inventory
When COVID-19 broke supply chains around the world, it drove companies to focus
on building supply chain resilience or to think of ways to keep supply chains from halting
and restoring them quickly when they do.
The effects of COVID-19 were not an exception to the rule: Supply chain disruptions
are happening with increasing frequency and severity. Levi Strauss saw its biggest
year-over-year loss in Europe in 2022, where revenue decreased 19% from the same period
14
 in 2021. McKinsey reports that significant disruptions to manufacturing production now
occur every 3.7 years, on average.
Experts predict that systems will “normalize” throughout 2023 at the earliest. Even
once they do, the pandemic has exposed global logistic network vulnerabilities to future
political instability, natural disasters, and regulatory changes. Brands like Volkswagen even
lowered delivery targets in 2023 due to supply chain issues.
“There are [some experts] who think that supply chain problems are the new normal.
There are other global crises afoot that are going to affect how global manufacturing
happens. There’s no reason to think that this system is not going to be susceptible in the
future to other problems,” says Rebecca Heilweil, a supply chain reporter.
5. Growing sales in China and APAC
Insider Intelligence and eMarketer report that five countries from Southeast Asia
made the top of the list for fastest ecommerce growth in 2022. The countries eating up
market share include:
● Philippines (24.1%)
● India (22.3%)
● Indonesia (20%)
● Malaysia (18%)
● Thailand (16%)
The Philippines and India are expected to be numbers one and two, respectively, until
2026. Digital buyers in India are anticipated to spend more than $21 billion on ecommerce
in 2023, with Indonesia’s spending to increase by over $16 billion.
6. Creating content for consumers in their local language
Fifty-seven percent of customers surveyed by PayPal say they currently shop
internationally. Almost two in five respondents said they’d made an international purchase
in the past three months.
However, amongst English-speaking shoppers, over two-thirds of respondents in a
study from Flow.io said they would not purchase from a site not translated into English. In
Japanese and South Korean markets, where cross-border commerce was lowest, that
number rose to 41% and 36%, respectively.
Going native with your site’s language—beyond Google Translate—can make or break
global sales. It creates a good customer experience from first impression to checkout.
In fact, in terms of website content, the majority of shoppers in Flow.io’s report agreed
that the following pages needed to be in their own language:
● Product descriptions (67%)
● Product reviews (63%)
● Checkout process (63%)
This bears closer examination. Localization can often feel overwhelming, like an
all-or-nothing endeavor (either everything has to be country-specific or why bother). It’s
not.
8.2. Vietnam
Ref: Báo cáo EBI 2023 - Vn.pdf
Ref: vietnam_e_conomy_sea_2022_report.pdf
15
9. E-com systems
CHAPTER 2. HARDWARE, SOFTWARE AND TECHNOLOGY 4.0 APPLIED FOR ECOM
1. Computer network (LAN < MAN < WAN)
1.1. LAN
- Definition: LAN (Local Area Network), also known as a local area network, is used in a certain
limited area with high transmission speed. Devices using LAN can share resources with each
other, typically sharing files, printers,... and some other devices.
-> Eg: You might use a LAN when you connect your laptop to the internet at your home and print
a document from a printer on the same network.
- Advantages of LAN:
+ High transmission speed, supports quick connection of many devices
+ Although limited in connection range, it is cost-effective, uses little wire, and is easy to
manage.
1.2. MAN
- Definition: MAN network (Metropolitan Area Network) is linked from many LAN networks via
cables and other transmission means,... Ability to connect in large areas such as in a town or city ,
conscious.
-> Eg: A city government might operate with a MAN if it has offices across the entire metropolitan
area.
- The MAN network model is often used mainly for organizations and businesses with many
branches and departments connected to each other.
- MAN network is often used for businesses because this model provides many types of services
such as connecting lines via voice (voice), data (data), video (images), and easily deploying
applications.
- Advantages of MAN: Large connection range makes interaction between business
departments easy, effective, low cost, stable transmission speed, information security, and simple
management.
1.3. WAN
- Definition: WAN (Wide Area Network) is a combination of urban networks including MAN
networks and LAN networks through satellite equipment, fiber optic cables, and electrical cables.
16
-> Eg: Remote workers who use the internet to access information from their company make use + Three important concepts (that are the basic technological foundations for understanding
of a WAN. the Internet): Packet Switching, TCP/IP communications protocol, Client/Server
- Wide area networks are created to connect over a large area of ​national scale. The protocol used Computing
in the WAN network is TCP/IP, the transmission bandwidth varies depending on the installation - Packet switching
location. + Definition of Packet switching: Packet switching is a method of slicing digital messages
- Advantages of WAN: Extensive connectivity, no signal limitations, easy to share information into discrete units called packets, sending the packets along different communication
and store data. Relative transmission speeds vary depending on each area or transmission device. paths as they become available, and then reassembling the packets once they arrive at
their destination
1.4. Internet, Intranet, Extranet (slide chapter 2 + giáo trình (2) chapter 3 + packets: the discrete units into which digital messages are sliced for transmission over the
INTERNET Internet
The Internet is an interconnected network of thousands of networks and millions of computers
linking businesses, educational institutions, government agencies, and individuals
- The Evolution of the Internet
+ Innovation Phase (1964-1974): Creation of fundamental building blocks
+ Institutionalization Phase (1975-1994): Large institutions provide funding and
legitimization
+ Commercialization Phase (1995-present): Private corporations take over, expand Internet
backbone and local service
=> The Internet has developed in three stages over approximately a 55-year period from 1961 to
the present. In the Innovation stage, basic ideas and technologies were developed; in the
Institutionalization stage, these ideas were brought to life; in the Commercialization stage, once
the ideas and technologies had been proven, private companies brought the Internet to millions
of people worldwide.
- The Internet: Key Technology Concepts
+ Defined by Federal Networking Commission as network that: In packet-switched networks, messages are first broken down into packets. Appended to each
In 1995, the Federal Networking Council (FNC) passed a resolution formally defining the term packet are digital codes that indicate a source address (the origination point) and a destination
Internet as a network that uses the IP addressing scheme, supports the Transmission Control address, as well as sequencing information and error-control information for the packet. Rather
Protocol (TCP), and makes services available to users much like a telephone system makes voice than being sent directly to the destination address, in a packet network, the packets travel from
and data services available to the public. computer to computer until they reach their destination. These computers are called routers.
+ A router is a special-purpose computer that interconnects the different computer
networks that make up the Internet and routes packets along to their ultimate destination
Chi tiết hơn: RESOLUTION OF THE FEDERAL NETWORKING COUNCIL
as they travel.
“The Federal Networking Council (FNC) agrees that the following language reffects our + To ensure that packets take the best available path toward their destination, routers use a
definition of the term “Internet” computer program called a routing algorithm

How does Packet Switching work? (tham khảo ngoài để hiểu thêm)
“Internet” refers to the global information system that Packet Switching works by breaking data into packets and transmitting them across the network
independently.
(i) is logically linked together by a globally unique address space based on the Internet Protocol - Splitting data packets: Data to be transmitted
(IP) or its subsequent extensions/follow-ons; is divided into smaller packets. Each data
(ii) is able to support communications using the Transmission Control Protocol/Internet packet contains information such as source
Protocol (TCP/IP) suite or its subsequent extensions/follow-ons, and/or other IP-compatible address, destination address, sequence
number, and error checking.
protocols; and
- Routing: Each data packet is appended with
information about the destination address,
(iii) provides, uses or makes accessible, either publicly or privately, high level services layered on
and switches (such as routers) use this
the communications and related infrastructure described herein.”

17 18
information to decide the optimal path to deliver the packet to the destination.
- Data packet transmission: Data packets are transmitted across the network from one switch to another.
Each data packet can go through different paths and does not necessarily follow the same path.
- Data packet concatenation: When the data packet reaches the destination, the data packets are
reassembled to reconstruct the original data.
During transmission, Packet Switching also provides features to check the integrity of data packets and
resend corrupted packets if necessary.
sequencing the packets to and from the applications
- Application layer: includes a variety of protocols used to provide user services or exchange data
+ One of the most important is the Border Gateway Protocol (BGP), which enables the
exchange of routing information among different autonomous systems on the Internet.
BGP uses TCP as its transport protocol.
+ Other important protocols included in the Application layer include HyperText Transfer
Protocol (HTTP), File Transfer Protocol (FTP), and Simple Mail Transfer Protocol (SMTP)

Câu hỏi tham khảo

IP Addresses
? Why is Packet Switching said to be the basic foundation of the modern Internet?
The IP addressing scheme answers the question “How can billions of computers attached to the
Packet Switching made an important contribution to the construction and operation of the
Internet communicate with one another?” The answer is that every computer connected to the
Internet as we know it today. This technology allows for efficient data transmission, better
Internet must be assigned an address—otherwise, it cannot send or receive TCP packets.
utilization of network resources and ensures flexibility in connection on the Internet, and also
less expensive, wasteful than circuit-switching. Data transmission protocols such as TCP/IP,
There are two versions of IP currently in use: IPv4 and IPv6
UDP/IP are also built based on Packet Switching to support data transmission on the Internet.
+ IPv4 Internet address: is a 32-bit number that appears as a series of four separate
? What are data transfer protocols based on Packet Switching?
numbers marked off by periods
Packet Switching-based data transport protocols are network protocols used to manage the
● Eg: 64.49.254.91
splitting, transmission and reassembly of data packets on the network, including: TCP/IP, UDP,
● In a typical Class C network: the first three sets of numbers identify the network
ICMP, RTP , IPsec,….
(64.49.254 is the local area network identification) and the last number (91) identifies
? What is the destination address in Packet Switching?
a specific computer.
The destination address in Packet Switching is often represented by an IP (Internet Protocol)
+ IPv6 Internet address: Internet address expressed as a 128-bit number so it can support
address . An IP address is a unique string of numbers assigned to each device or host in a
many address more than IPv4
network, allowing data packets to be identified and routed to the correct destination. The
+ IPv6 able to handle up to 1 quadrillion addresses while IPv4 can only handle 4 billion.
destination address plays an important role in the process of forwarding and routing data
packets. Switches will use destination address information to determine the path and deliver
Routing internet messages: TCP/IP and Packet switching
the data packet to the final destination.
(How TCP/IP and packet switching work together to send data over the Internet)
- TCP/IP communications protocol
+ Transmission Control Protocol (TCP): TCP establishes the connections among sending
and receiving computers, and makes sure that packets sent by one computer are received
in the same sequence by the other, without any packets missing
+ Internet Protocol (IP): IP provides the Internet’s addressing scheme and is responsible for
the actual delivery of the packets.

+ Four TCP/IP layers (each layer handling a different aspect of the communication problem)
- Network interface layer: is responsible for
placing packets on and receiving them from
the network medium
- Internet layer: is responsible for
addressing, packaging, and routing
messages on the Internet Domain Names, DNS, and URLs
- Transport layer: is responsible for - Domain name: IP address expressed in natural language
providing communication with other - Domain Name System (DNS): system for expressing numeric IP addresses in natural language
protocols (applications) within the TCP/IP - Uniform Resource Locator (URL): the address used by a web browser to identify the location of
protocol suite by acknowledging and content on the Web

19 20
 + A typical URL contains the protocol to be used when accessing the address, followed by its + Definition of Client/Server computing: Client/Server Computing: a model of computing
location. in which client computers are connected in a network together with one or more servers,
+ A URL can have from two to four parts; for example, name1.name2.name3.org. Eg: the URL which are computers that are dedicated to performing common functions that the client
http://www.azimuth-interactive.com/flash_test computers on the network need, such as file storage, software applications, printing, and
+ the IP address 208.148.84.1 Internet access
+ domain name “azimuthinteractive.com” + client: a powerful desktop computer that is part of a network
+ protocol being used to access the address: HTTP + server: networked computer dedicated to common functions that the client computers
+ A resource called “flash_test” is located on the server directory path /flash_test on the network need (eg: file storage, software applications, printing, and Internet access)
The New Client: The Emerging Mobile Platform (k biết cô lấy ở đâu 🙂 )
Within a few years, primary Internet access will be through:
- Netbooks
+ Designed to connect to wireless Internet
+ Under 2 lbs, solid state memory, 8” displays
+ $200–400
- Smartphones: Disruptive technology: Processors, operating systems
Cloud computing
- Definition: Cloud computing is a model of computing in which computer processing, storage,
software, and other services are provided as a shared pool of virtualized resources over the
Internet

The Domain Name System is a hierarchical namespace with a root server at the top. Top-level
domains appear next and identify the organization type (such as .com, .gov, .org, etc.) or
geographic location (such as .uk [Great Britain] or .ca [Canada]). Second-level servers for each
top-level domain assign and register second-level domain names for organizations and
individuals such as IBM.com, Microsoft.com, and Stanford.edu. Finally, third-level domains
identify a particular computer or group of computers within an organization, e.g.,
www.finance.nyu.edu.

- Firms and individuals obtain computing power and software over Internet
Eg: Google Apps
- Fastest growing form of computing
- Radically reduces costs of:
+ Building and operating Web sites
+ Infrastructure, IT support
+ Hardware, software
(Cloud computing has many significant implications for e-commerce. For e-commerce firms,
- Client/server computing cloud computing radically reduces the cost of building and operating websites because the
necessary hardware infrastructure and software can be licensed as a service from CSPs at a

21 22
fraction of the cost of purchasing these services as products. This means firms can adopt
“pay-as-you-go” and “pay-as-you-grow” strategies when building out their websites. For instance,
according to Amazon, hundreds of thousands of customers use Amazon Web Services. For
individuals, cloud computing means you no longer need a powerful laptop or desktop computer
to engage in e-commerce or other activities. Instead, you can use much less expensive tablet
computers or smartphones that cost a few hundred dollars.
For corporations, cloud computing means that a significant part of hardware and software costs
(infrastructure costs) can be reduced because firms can obtain these services online for a fraction
of the cost of owning, and they do not have to hire an IT staff to support the infrastructure.)

Other Internet Protocols and Utility Programs

- Internet protocols
+ HTTP: HyperText Transfer Protocol (HTTP) is the Internet protocol used to transfer web
pages
+ E-mail: SMTP, POP3, IMAP
- SMTP: Simple Mail Transfer Protocol (SMTP) is the Internet protocol used to send
e-mail to a server.
- POP3: Post Office Protocol 3 (POP3) is a protocol used by the client to retrieve mail
from an Internet server
- IMAP: Internet Message Access Protocol (IMAP) is a more current e-mail protocol
that allows users to search, organize, and filter their mail prio to downloading it from
the server: FTP, Telnet, SSL
+ FTP: File Transfer Protocol (FTP) is one of the original Internet services. Part of the TCP/IP
protocol that permits users to transfer files from the server to their client computer, and
vice versa
+ Telnet: a terminal emulation program that runs in TCP/IP
+ SSL: Secure Sockets Layer (SSL)/Transport Layer Security (TLS) are protocols that secure
communications between the client and the server
- Utility programs
+ Ping: a program that allows you to check the connection between your client and the
server
+ Tracert is one of several route-tracing utilities that allow you to follow the path of a
message you send from your client to a remote computer on the Internet.
+ PathPing command is a command-line network utility included in Windows NT operating
systems since Windows 2000 that combines the functionality of ping with that of tracert. It
is used to locate spots that have network latency and network loss. (cái này là def của wiki
nha)
The Internet Today
Internet growth has boomed without disruption because it is based on:
- Client/server computing model: is highly extensible (By simply adding servers and clients, the
population of Internet users can grow indefinitely.)
23
- Hourglass, layered architecture: the Internet architecture is built in layers so that each layer
can change without disturbing developments in other layers. (For instance, the technology used
to move messages through the Internet can go through radical changes to make service faster
without being disruptive to your desktop applications running on the Internet.)
Giải thích ảnh trên:
The Internet can be viewed conceptually as having four layers: Network Technology Substrates,
Transport Services and Representation Standards, Middleware Services, and Applications
+ Network Technology Substrate layer: layer of Internet technology that is composed of
telecommunications networks and protocols
+ Transport Services and Representation Standards layer: layer of Internet technology
that houses the TCP/IP protocol
+ Middleware Services layer is the “glue” that ties the applications to the communications
networks and includes such services as security, authentication, addresses, and storage
repositories
+ Applications layer: layer of Internet technology that contains client applications such as
the Web, e-mail, and audio or video playback
Internet Network Architecture
- Backbone
+ Definition: Backbone is high-bandwidth fiber-optic cable that that transports data across
the Internet. (The backbone has been likened to a giant pipeline that transports data
around the world in milliseconds.)
+ Private networks owned by a variety of NSPs
+ Bandwidth
- Def: measures how much data can be transferred over a communications medium
within a fixed period of time and is usually expressed in bits per second (Bps),
24
 kilobits (thousands of bits) per second (Kbps), megabits (millions of bits) per second - Satellite is offered by satellite companies that provide high-speed broadband
(Mbps), or gigabits (billions of bits) per second (Gbps). Internet access primarily to homes and offices located in rural areas where DSL or
- In the US, bandwidths ranging from 155 Mbps–2.5 Gbps cable Internet access is not available.
+ Built-in redundancy so that if one part breaks down, data can be rerouted to another part
of the backbone INTRANET
- Redundancy: - Definition:
refers to multiple duplicate ❖ Theo giáo trình (1) trang 8: An intranet is a corporate or government internal
devices and paths in a network that uses Internet tools, such as Web browsers and Internet
network protocols
This picture illustrates some of ❖ Theo giáo trình (2) trang 141: An intranet is a TCP/IP network located within a
the main physical elements of single organization for purposes of communications and information
today’s physical processing
Internet. Originally, the - The components:
Internet had a single
backbone, but today’s
Internet is woven together
from numerous privately
owned networks comprised of
high-bandwidth fiber-optic
cable that are physically
connected with each other and that transfer information from one private network to another.

- IXPs: Internet Exchange Point (IXP) hub where the backbone intersects with local and regional
networks and where backbone owners connect with one another

- CANs: Campus/corporate area network (CAN) are generally local area networks operating within
a single organization—such as New York University or Microsoft Corporation that leases access to
the Web directly from regional and national carriers

EXTRANET
Internet Service Providers (ISPs)
- Definition:
- Provide lowest level of service to individuals, small businesses, some institutions
❖ Theo giáo trình (1) trang 8: An extranet is a network that uses Internet
- Types of service
technology to link intranets of several organizations in a secure manner
+ Narrowband (dial-up) service is the traditional telephone modem connection now
❖ Theo slide cô: Extranet is formed when firms permit outsiders to access their
operating at 56.6 Kbps
internal TCP/IP networks
+ Broadband: refers to any communication technology that permits clients to play
streaming audio and video files at acceptable speeds
- Digital Subscriber Line (DSL) service is a telephone technology that provides
highspeed access to the Internet through ordinary telephone lines found in a home
or business.
- Cable Internet: t refers to a cable television technology that piggybacks digital
access to the Internet using the same analog or digital video cable providing
television signals to a home
- T1 and T3 are international telephone standards for digital communication
+ T1: offers guaranteed delivery at 1.54 Mbps
+ T3: offers guaranteed delivery at 45Mbps

25 26

- The application:
Who governs the Internet?
- Organizations that influence Internet and monitor its operations include:
+ The Internet Corporation for Assigned Names and Numbers (ICANN), which
coordinates the Internet’s systems of unique identifiers: IP addresses, protocol parameter
registries, and the top-level domain systems. ICANN was created in 1998 as a nonprofit
organization and manages the Internet Assigned Numbers Authority (IANA), which is in
charge of assigning IP addresses.
+ The Internet Engineering Task Force (IETF), which is an open international community of
network operators, vendors, and researchers concerned with the evolution of the Internet
architecture and operation of the Internet. The IETF has a number of working groups,
organized into several different areas, that develop and promote Internet standards, which
influence the way people use and manage the Internet.
+ The Internet Research Task Force (IRTF), which focuses on the evolution of the Internet.
The IRTF has a number of long-term research groups working on various topics such as
Internet protocols, applications, applications, and technology.
+ The Internet Engineering Steering Group (IESG), which is responsible for technical
management of IETF activities and the Internet standards process.
+ The Internet Architecture Board (IAB), which helps define the overall architecture of the
Internet and oversees the IETF and IRTF.
+ The Internet Society (ISOC), which is a consortium of corporations, government agencies,
and nonprofit organizations that monitors Internet policies and practices.
+ The Internet Governance Forum (IGF), which is a multi-stakeholder open forum for
debate on issues related to Internet governance.
+ The World Wide Web Consortium (W3C), which is a largely academic group that sets
HTML and other programming standards for the Web.
+ The Internet Network Operators Groups (NOGs), which are informal groups that are
made up of ISPs, IXPs, and others that discuss and attempt to influence matters related to
Internet operations and regulation.
While none of these organizations has actual control over the Internet and how it
functions, they can and do influence government agencies, major network owners, ISPs,
corporations, and software developers with the goal of keeping the Internet operating
as efficiently as possible
27
- In Vietnam: Vnnic (http://vnnic.vn)
Internet II: The future infrastructure
- Limitations of current Internet
+ Bandwidth limitations: There is insufficient capacity throughout the backbone, the
metropolitan switching centers, and most importantly, the “last mile” to the house and
small businesses. The result is slow peak-hour service (congestion) and a limited ability to
handle high volumes of video and voice traffic.
+ Quality of service limitations
- Latency: delays in messages caused by the uneven flow of information packets through the
network
+ In the case of e-mail, latency is not noticeable
+ However, with streaming video and synchronous communication, such as a telephone call,
latency is noticeable to the user and perceived as “jerkiness” in movies or delays in voice
communication
- “Best effort” quality of service (QoS) which makes no guarantees about when or whether data
will be delivered, and provides each packet with the same level of service, no matter who the user
is or what type of data is contained in the packet. A higher level of service quality is required if the
Internet is to keep expanding into new services, such as video on demand and telephony
+ Network architecture limitations: Today, a thousand requests for a single music track
from a central server will result in a thousand efforts by the server to download the music
to each requesting client. This slows down network performance, as the same music track
is sent out a thousand times to clients that might be located in the same metropolitan
area. This is very different from television, where the program is broadcast once to millions
of homes
+ Language development limitations
- HTML: Wired Internet limitations: The Internet is still largely based on
cables—fiber-optic and coaxial copper cables. Copper cables use a centuries-old
technology, and fiber-optic cable is expensive to place underground. The wired
nature of the Internet restricts mobility of users although it is changing rapidly as
Wi-Fi hotspots proliferate, and cellular phone technology advances. However,
cellular systems are often overloaded due to the growth in the number of
smartphones
+ Wired Internet limitations
Telephone-based Wireless Internet Access
- Competing 3G standards
+ GSM: Used primarily in Europe
+ CDMA: Used primarily in the United States
- Evolution:
+ 2G cellular networks: relatively slow, circuit-switched
+ 2.5G cellular networks: interim networks
+ 3G cellular networks: next generation, packet-switched
+ 3.5G (3G+)
+ 4G (WiMax, LTE)
28

Wireless Local Area Networks (WLANs)
Wireless local area network (WLAN)-based Internet access derives from a completely
different background from telephone-based wireless Internet access
- Wi-Fi
+ Wireless standard for Ethernet networks with greater speed and range than Bluetooth
+ Wi-Fi functions by sending radio signals that are broadcast over the airwaves using certain
radio frequency ranges (2.4 GHz to 5.875 GHz, depending on the type of standard involved)
+ High-speed, fixed broadband wireless LAN, different versions for home and business
market, limited range
29
- WiMax: High-speed, medium range broadband wireless metropolitan area network
- Bluetooth:
+ technology standard for short-range wireless communication under 30 feet
+ Low-speed, short range connection
- Ultra-Wideband (UWB): Low power, short-range high bandwidth network
- Zigbee: Short-range, low-power wireless network technology for remotely controlling digital
device
Internet Connection
2. Hardware and software
2.1. Hardware
Hardware refers to the physical components of a computer. Computer Hardware is any part of
the computer that we can touch these parts. These are the primary electronic devices used to
build up the computer. Examples of hardware in a computer are the Processor, Memory Devices,
Monitor, Printer, Keyboard, Mouse, and Central Processing Unit.
2.2. Software
Software is a collection of instructions, procedures, and documentation that performs different
tasks on a computer system. we can say also Computer Software is a programming code
executed on a computer processor. The code can be machine-level code or code written for an
operating system. Examples of software are MS- Word, Excel, PowerPoint, Google Chrome,
Photoshop, MySQL, etc.
3. Introduction to Industrial 4.0 technologies and its application in ECOM
3.1. IoTs
- Definition: ( Sách viết P270)
30
There are many definitions of IoT. Wikipedia provides this definition: “The Internet of Things (IoT)
is the network of physical objects-devices, vehicles, buildings, and other items embedded with
electronics, software, sensors, and network connectivity -that enables these objects to collect
and exchange data. The Internet of things allows objects to be sensed and controlled remotely
across existing network infrastructure, creating opportunities for more direct integration of the
physical world into computer-based systems, and resulting in improved efficiency, accuracy, and
economic benefit; when IoT is augmented with sensors and actuators, the technology becomes
an instance of the more general class of cyber-physical systems, which also encompasses
technologies such as smart grids, smart homes, intelligent transportation, and smart cities.
Each thing is uniquely identifiable through its embedded computing system but is able to
interoperate within the existing Internet infrastructure.”
According to Miller (2015), these are the major characteristics of the Internet: IoT is a connected
ecosystem in which:
+ Large numbers of objects (things) can be connected.
+ Each thing has a unique definition (IP address).
+ Ability to receive, send, and store data, automatically.
+ Delivered mostly over the wireless Internet.
+ Built upon machine to machine (M2M) communication
- The major Benefits of IoTs: According to Basu and Didyala (2014) and Miller (2015), the major
benefits of IoT are:
+ Creates new revenue streams.
+ Optimizes asset utilization.
+ Improves sustainability.
+ Improves workers’ productivity.
+ Systems will anticipate our needs.
+ People will make smarter decisions/purchases.
+ Greater accuracy.
+ Identifies problems quickly (even before they occur).
+ Reduces cost by automating processes.
+ Instant information availability.
+ Quick and inexpensive tracking.
+ Expedites problem resolution and recovery.
+ Supports facility integration.
- Some issues in implementing the IoTs: The following are several important issues:
+ Security: Given that the Internet is not well secured, applying IoT requires special security
measures. Perkins (2016) summarizes the situation as follows: “IoT creates a pervasive
digital presence connecting organizations and society as a whole. New actors include data
scientists; external integrators; and exposed endpoints. Security decision-makers must
embrace fundamental principles of risk and resilience to drive change.”
+ Connecting the silos of data: There are millions of silos of data on the Internet, and many of
them need to be interconnected. This issue is known as the need for a “fabric” and the
need for connectivity. This can be a complex issue for applications that involve many
different silos belonging to different organizations.
+ Preparing existing IT architectures and operating models for IoT can be a complex issue in
many organizations.
31
- Internet of things’ applications have lots of promises and potential benefits. Is it for us? The
IoT has many potential advantages, but it is in its early stages of life. As shown in the closing case,
large companies can reap considerable benefits. While small applications for a home and
appliances are feasible now, large-scale implementation in organizations may involve several
problems, such as security, system integration, financial justification, and selection of
implementing vendor. It is advisable to seek the advice of an IT management company (such as
Gartner) as well as consult a major technology vendor (such as Cisco)
- The essentials of the Internet of things (IoT). The IoT refers to an ecosystem in which a large
number of objects (like people, sensors, and computers) are interconnected via the Internet
(usually wirelessly). By the year 2020, there could be as many as 50 billion connected objects. A
system of such connected things can be used for many purposes. The use of the IoT can provide
for improved or new EC applications.
3.2. AR/VR
- Augmented Reality (AR): The term AR has several definitions depending on its field of
applications. According to Wikipedia, augmented reality is “a live or indirect view of a physical,
real-world environment whose elements are augmented (or supplemented) by
computer-generated sensory input such as sound, video, graphics or GPS data”. Such an
arrangement helps people enhance the sensory perception of reality. The computerized layer can
be seen through an application on mobile devices such as smartphones, webcams, or 3D glasses.
-> Applications in E-Commerce:
+ The major applications in e-commerce are in the areas of advertising and marketing. There
are potentially many other areas of applications.
+ Ex1: Net-a-Porter. This innovative company is using an iPhone/iPad app to view an AR
“shopping window.” Customers at the company’s physical store can point the mobile
device camera at a clothing display (e.g., in the stores or store windows), and see a 360
degree view of the clothes. They also can see presentations at fashion shows, price,
availability, and other relevant information. Furthermore, the window shoppers can
immediately buy the clothing online using their mobile device
Ex 2: IKEA. IKEA uses AR to show how its furniture can fit in your house. For details on this
mobile devices app. The technology used is made by Snapshop, a free app for iOS systems.
Ex 3: CastAR. Using AR technology, CastAR is able to produce more interactive tabletop
gaming environments for users in a small area.
Ex4: Valentino, the luxury brand, partnered with the Farfetch-owned augmented reality
company Wanna. Using the Wanna Wear mobile app, shoppers try on a curated selection
from the Valentino Urban Flows Fall 2023 men’s collection, sampling virtual clothes in
real-time and sharing looks with friends.
- Virtual Reality (VR)
Virtual reality is a computer-generated simulation of a real-life environment in which users can
be immersed. People feel like they are inside the environment and they can manipulate it . To
experience VR, users must wear special glasses and handsets. The technology has been around
for decades but was used mainly for computer games. Lately, however, VR is moving to be an EC
element. An example is Facebook’s Oculus, which is experimenting with commercial
applications. This is an example of combining social commerce and virtual reality.
- Virtual Reality Applications in ecommerce
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 + A memorable experience if the users have Equipment: When most online stores are
functioning with 2D images, allowing users to virtually step into your online store and buy
products from there will certainly make their shopping experience memorable and one of
a kind.
+ Great for Gaming and Entertainment Marketing: A VR ecommerce store can offer users
an unmatched gaming experience that they may want to discuss with their friends and
relatives. In most cases, VR may help optimize your entertainment marketing campaigns.
This may also help your business gain popularity through word of mouth.
+ Attractive Ideas: An easy-to-use and functional VR-based ecommerce store can be a
remarkable experience for many consumers. This could help attract quality leads. Plus, as a
result of this completely immersive VR shopping experience, more of your users may
remember your store and its products and want to keep coming back.
For example, Lowe’s Holoroom uses VR to allow shoppers to virtually feel the experience of
using a specific tool or performing a complex DIY project. The ability to utilize this
technology to build confidence around a startup eCommerce brand could significantly
increase buyer trust in a completely new product.
+ Comes at a High Premium: By stepping into a virtual ecommerce store, customers may
get the chance to virtually pick a product, take a quick look at it, read details, and make an
informed purchase. However, in the best cases, VR requires high installation costs, upfront
payments, can be difficult to set up, and expects the users to purchase additional
equipment. These roadblocks may make applications less enjoyable, and more technical.
- Comparing AR and VR: According to McKalin (2015), both technologies are similar in their goal
of immersing the users. But they do it in different ways and for different purposes.
Differences Between AR and VR
Augmented Reality Virtual Reality
AR allows users to project 3D visuals of objects VR allows users to step into a virtually
into their personal view of the real world. designed reality, which, in a way, replaces the
view of the real world.
For a seamless viewing experience, it’s VR systems may function on mid-range
important to minimize AR visual files. Avatar's bandwidth connections. However, users can
patent techniques can create real time assets also download files to eliminate the constant
meant for AR experiences at scale. Using the need for a high bandwidth connection.
topology preserved compression techniques,
Avataar is able to achieve savings over 90% in
file sizes vis-a-vis traditional 3D formats.
Most often requires a mobile phone with a VR headsets needed for a complete
camera. experience.
AR keeps the connection to reality intact, is VR is suitable when there’s a need for
more real and gives a more persistent presenting the user with a virtually rendered
experience to the users. environment, different from their real
environment.
For example, through AR, users can place a
sofa in their living room, and view how it may For example, VR Will be helpful when the
look. user needs to use certain equipment to step
into a virtual furniture store and take a look at
the sofa.
3.3. Blockchain
- Definition: A blockchain is a type of decentralized, peer-to-peer database that is dispersed
across all of the nodes in the trustless blockchain network. As the name indicates, a blockchain is
a series of blocks. To preserve the integrity of the whole blockchain, certain properties are
included in each block. The blockchain employs strong cryptography to maintain this integrity.
- Companies Use Blockchain in E-commerce:
+ Walmart: While being a brick-and-mortar retailer, Walmart's online presence is significant.
Walmart has been an early adopter of blockchain for tracking its supply chain. The
company uses it to trace the origins of produce and other products. For example, by
collaborating with IBM's Food Trust Network, they have enhanced the safety and
traceability of food products.
+ Starbucks: Starbucks is piloting a blockchain-based system to track the journey of coffee
beans from farms to stores. The company aims to enhance transparency and support
ethical sourcing practices. It also allows consumers to have a clear understanding of the
origins of their coffee.
+ Amazon Web Services: AWS's blockchain templates are enabling e-commerce businesses
to set up blockchain networks. This, in turn, fosters innovation and drives growth in the
sector. With these templates, businesses can harness the benefits of blockchain
technology and explore new possibilities for their operations.
- The Pros of Blockchain in E-commerce:
+ Manage supply chain : Blockchain solves the problem of supply chain management, the
process of transporting goods to consumers by smart contracts, which enables parties to
easily sign and link with multinational enterprises. Thereby ensuring the transparency of
the customer’s transaction process with the retailer and between the retailer and the
E-commerce site system. Blockchain is used to track parcels and shipments, which can
help reduce shipping costs in the e-commerce industry. By using a distributed ledger,
shipping companies and retailers can track shipments from origin to consignee with more
accuracy and efficiency, which reduces costs for buyers and sellers.
+ Secure customer information: Limit the audience who can access customer information
data on the E-commerce site. This system will allow customers to access their information
in a secure and anti-counterfeit way, ensuring that users can make payments and
purchases quickly with high security. Blockchain technology improves the e-commerce

33 34
 industry by providing a more transparent and efficient system that allows entities in the
same supply chain to verify trusted customer identities and provide the highest security
for customer databases and CRM systems.
+ Prevent data fraud: Timely prevention of data breaches by admins in the system, ensuring
all ratings and reviews are approved by surveyors. By using Blockchain, retailers can ensure
that buyers’ data is safe and secure from theft or misuse. By creating immutable data
records, the system can easily detect objects that try to add fake/fraudulent transactions of
goods or payments. The integration of Blockchain technology into e-commerce platforms,
ensures that all transactions are legal and accountable.
+ Speedy payment: Implement regulated transactions by online payment method
connecting directly between sellers and buyers on websites and e-commerce platforms,
eliminating the involvement of intermediaries. Thereby reducing transaction budget,
saving time waiting for transaction payment processing. One way that Blockchain can
help improve the speed of payments in e-commerce is through the ability to create
tamper-proof records of transactions. This can allow the retailers to eliminate the need for
customers to provide their personal information, such as addresses and digital card signals
during checkout. Thereby helping them save time, automate transactions and secure their
information.
- The cons of Blockchain in Ecom:
+ Technical and Scalability Challenges: Implementing blockchain technology for
e-commerce requires a robust infrastructure that can be costly and complex to set up and
maintain. Also, as the number of transactions increases, the blockchain network can
become slower and less efficient. The scalability challenge arises as each new transaction
must be added to every node in the network. But it consumes large computational power
and time. This can be particularly problematic for large e-commerce businesses with high
transaction volumes. Furthermore, the complexity of blockchain leads to a need for more
skilled professionals.
+ Regulatory and Legal Considerations: Blockchain technology is still new, and the
regulations governing it are changing. This can create uncertainties and compliance
problems for e-commerce companies.
3.4. Big Data
- What is Big Data? Big Data refers to the massive volumes of data that are generated every
second from various sources including social media, online transactions, researches, and more.
This data can be structured, semi-structured, or unstructured and is characterized by its high
velocity, volume, and variety, often referred to as the 3 Vs.
The analysis of Big Data, using advanced analytics and machine learning algorithms, can reveal
valuable insights and patterns that were previously hidden or inaccessible.
- The key benefits of Big Data in Ecommerce:
+ Customer insights: Through behavior analysis, brands and sellers can scrutinize the
interactions and behaviors of customers on their platforms to discern preferences and
buying patterns. For instance, if a significant number of customers frequently buy athletic
wear, it's an indicator of a preference trend.
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Moreover, Big Data empowers merchants to segment their customer base into distinct
categories, which in turn, enables targeted marketing and promotions. For instance,
sending discount offers on baby products to recent parents. Through such segmentation,
promotions resonate better with customers, enhancing the likelihood of purchases and
fostering a more personalized connection between the e-commerce platform and its
users.
+ Inventory Management
Through demand forecasting, Big Data aids in predicting the demand for various
products, which in turn assists in precise inventory management. For example, by
analyzing past sales data and current market trends, an e-commerce platform can
forecast the demand for winter jackets during the cold season, ensuring an adequate
stock is maintained to meet customer needs.
Secondly, logistics optimization is another arena where Big Data proves invaluable. By
analyzing and predicting traffic patterns and delivery times, logistics operations are honed
to ensure timely deliveries. For instance, by leveraging Big Data, a logistics manager can
plan routes that avoid traffic congestions, thereby reducing fuel costs and ensuring timely
deliveries to customers.
+ Marketing and Advertising
By sifting through customer data, e-commerce platforms can craft advertising campaigns
that resonate with specific customer segments. For instance, analyzing shopping behavior
data might reveal a group of customers with a penchant for outdoor gear, enabling the
creation of tailored advertising campaigns promoting hiking boots or camping equipment
to this segment.
Furthermore, Big Data extends its utility to the realm of performance analytics.
Post-campaign analysis powered by Big Data can unveil the effectiveness of marketing
strategies, highlighting areas of success and aspects needing refinement. For example, if a
particular social media campaign drives a surge in website traffic and sales, it can be a cue
to allocate more resources to similar future campaigns.
- How does Big Data benefit E-commerce companies? Big Data aids in analyzing customer
behavior for personalized experiences, optimizing inventory through demand forecasting, and
adjusting prices dynamically based on market conditions.
- What are the challenges faced when integrating Big Data in E-commerce? Key challenges
include ensuring data privacy and security, managing high volumes of data, and requiring
specialized skills to analyze and interpret data effectively.
- How can E-commerce platforms ensure data privacy while leveraging Big Data?
E-commerce platforms can ensure data privacy by complying with data protection laws,
implementing strong encryption methods, and being transparent with customers on data usage
policies
3.5. AI
- Definitions and characteristics: Artificial intelligence (AI) has several definitions; however, many
experts agree that AI is concerned with two basic ideas: (1) the study of human thought
processes (to understand what intelligence is) and (2) the representation and duplication of those
thought processes in machines (e.g., computers, robots). One well-publicized definition of AI is
36
“behavior by a machine that, if performed by a human being, would be called intelligent.” A
well-known application of artificial intelligence is the chess program hosted at a supercomputer.
- Adoption of AI in e-commerce:
+ Intelligent Agents An intelligent agent (IA) is an autonomous, relatively small, computer
program that observes and acts upon a changing environment and directs its activities
toward achieving specific goals, related to the above changes, by running specific tasks,
autonomously. Intelligent agents may have the ability to learn by using and expanding the
knowledge embedded in them. Intelligent agents are powerful tools for overcoming the
most critical burden of the Internet— information overload—and making e-commerce a
more viable organizational tool. Interest in using intelligent agents for e-commerce started
in the academic world soon after the birth of EC, in the mid-1990s. However, it is only since
2014, when the capabilities of IA increased remarkably, that we started to see many
applications, which will be presented in section “Recent AI Applications in E-Commerce”.
Initially, intelligent agents were used mainly to support routine activities such as searching
for products, getting recommendations, determining products’ pricing, planning
marketing, conducting negotiations, improving computer security, managing auctions,
facilitating payments, and improving inventory management. However, these applications
were very simple, using a lower level of intelligence. Their major benefit was increasing
speed, reducing cost, reducing errors, and improving customer service.
Example: Virus Detection Program: A simple example of an intelligent software agent is a
virus detection program. It resides in your computer, scans all incoming data, and removes
found viruses automatically while learning new virus types and detection methods.
Intelligent agents are also applied in personal digital assistants, e-mail servers, news
filtering and distribution, appointment handling, and automated information gathering.
+ Machine Learning AI systems do not have the same learning capabilities that humans
have; rather, they have simplistic (but improving) learning capabilities (modeled after
human learning methods) called machine learning. The machine learning scientists try to
teach computers to identify patterns and make connections by showing it a large volume
of examples and related data. Machine learning allows computer systems to monitor and
sense their environmental activities and adjust their behavior to match changes in the
environment. Technically speaking, machine learning is a scientific discipline that is
concerned with the design and development of algorithms that allow computers to learn,
based on data coming from sensors, databases, or other sources. Machine learning
algorithms are used today by many companies. Well-known examples are product
recommendation services.
+ Robotics Systems Sensory systems, such as scene recognition systems, and
signal-processing systems, when combined with AI, define a broad category of complex
systems generally called robots. There are several definitions of robots and they are
changing over time. A classical definition is that a robot is an electromechanical device
that can be programmed to perform manual and/or mental tasks. Robotics Institute of
America formally defines a robot as “a programmable multifunctional manipulator
designed to move materials, parts, tools, or specialized devices through variable
programmed motions for the performance of a variety of tasks.” This definition ignores the
many mental tasks done by today’s robots. An “intelligent” robot or a bot has some kind of
37
sensory apparatus, such as a camera, that collects information about the robot’s
surroundings and its operations. The collected data are interpreted by the “brain” of the
robot, allowing it to respond to the changes in the environment. Robots can be fully
autonomous, programmed to do tasks completely on their own, or they can be remotely
controlled by a human. Some robots resemble humans and are known as androids. Most
industrial robots are not. The autonomous robots are equipped with an AI intelligent
agent. The more advanced smart robots are not only autonomous, but they can learn from
their environment, building on their capabilities. Robots today can learn complex tasks by
watching what humans do. This leads to better human–robot collaboration.
+ Natural Language Processing (NLP) technology gives computer users the ability to
communicate with a computer in their native language. This technology allows for a
conversational type of interface, in contrast to using a programming language that
consists of computer jargon, syntax, and commands. It includes two subfields:
● Natural language understanding that investigates methods of enabling computers
to comprehend instructions or queries provided in ordinary English or other
languages
● Natural language generation that strives to have computers produce ordinary
spoken language so that people can understand the computers more easily.
NLP is related to voice-generated data, as well as text and other data.
+ Speech (Voice) Understanding: A speech (voice) understanding is the recognition and
understanding of spoken languages by a computer. Applications of this technology have
become more and more popular. For instance, many companies have adopted this
technology in their call centers. Related to NLP is machine translation of languages, which
is done both of written text (e.g., Web content) and of voice conversation (e.g., by Skype).
+ Language Translation Machine uses computer programs to translate words and
sentences from one language to another. For example, you can use Babel Fish translation,
available at babelfish.com, to try more than 25 different combinations of language
translation. Similarly, you can also use Google’s free Translate to translate dozens of
different languages (translate.google.com). Finally, users can post their status in Facebook
in any language. Then translation can be made.
+ Another AI technology related to NLP and robots is chatbots. Chatbots is a computerized
service that enables conversations between human and computers, usually over the
Internet. The conversations are frequently done by short questions and answers. More
intelligent chatbots are equipped with natural language processors, so the computer can
understand unstructured dialog. The computer side can look like a person or an avatar.
The service is also available at messaging services such as Facebook’s Messenger and on
Twitter.
● Chatbots in E-Commerce: The most common use of chatbots (bots in short) in EC
is in customer service. Example: Nordstrom Uses Chatbots “If you wanted to buy
shoes from Nordstrom online, you would go to their website, look around until you
find the shoes you wanted, and then you would purchase them. If Nordstrom makes
a bot, which I am sure they will, you would simply be able to message Nordstrom on
Facebook. It would ask you what you are looking for and you would simply tell it.
Instead of browsing a website, you will have a conversation with the Nordstrom bot,
mirroring the type of experience you would get when you go into the retail store.”
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- The AI Contribution to E-Commerce - Hypertext:
As described earlier, AI enhanced EC since its inception. However, it is only now that we see a + Text formatted with embedded links (links connect documents to one another, and to
wave of powerful applications. Here is what the major technology companies do with AI: other objects such as sound, video, or animation files.
+ Apple. According to Fingas (2016), AI and augmented reality are core technologies in + Uses HTTP and URLs to locate resources on the web.
Apple’s future. Apple is continuously improving Siri (its personal assistant robot. Apple has - Markup Languages
several other AI initiatives, including making the iPhone “smarter” . + A way to annotate text to provide additional information about the structure of the
+ Google. Google is involved in several AI initiatives. One major effort is Google Brain, a document. They consist of tags or codes embedded in the text that define how the text
secretive project that includes machine learning. We already mentioned the company’s should be displayed or structured.
DeepMind in section “Introduction to Intelligent E-Commerce”. Google believes that AI will + Common Markup Languages: HTML (Hypertext Markup Language, a GML that is relatively
be able to solve the world’s biggest problems. O’Brien (2016a), a scientist at Google Brain, easy to use in web page designers with a fixed set of markup “tags” that are used to format
stresses that it “will take some smart humans to get it there.” a web page), XML (eXtensible Markup Language, a markup language specification
+ Facebook. Facebook’s CEO is a great believer in AI. He is developing a personal assistant developed by the W3C that is designed to describe data and information)...
robot for his own use. Facebook is working on several other projects related to advertising - Web servers:
and customer service. Facebook says that its new AI can understand text with near-human + Software that enables a computer to deliver web pages written in HTML to client
accuracy. computers on a network that request this service by sending an HTTP request.
+ IBM. IBM pioneered the concept of smart commerce in 2013/2014. At that time, they + Types of specialized servers on the Web : database servers (access specific information
concentrated on big data and analytics. A major part was the use of data mining within a database), ad server (deliver targeted banner ads), mail server (provide email
technologies (an AI product) for discovering hidden correlations. This enables a better messages), video server (serve video clips)
predictive analysis, which is used in EC strategy and decision-making. Deep Blue was the - Web clients: Any computing device attached to the Internet that is capable of making HTTP
powerful computer that defeated the world’s chess champion in the 1990s. IBM is also requests and displaying HTML pages, most commonly a Windows PC
known for its Watson, the supercomputer that won the Jeopardy game, and for its - Web Browsers: Software program whose primary purpose is to display web pages.
contribution to medical research. Watson is also used to psychoanalyze people from their -> For example: Internet Explorer, Firefox, Chrome, Safari…
tweets to help marketers.
+ Amazon.com. This company pioneered the use of AI in the 1990s. The most well known are 2. EC Website analysis (Web development circle)
their book recommendation engines. Today, the company is experimenting or using AI in 2.1. Systems Analysis/Planning
many activities of its e-tailing. Well known is the use of smart robots in the warehouse. The - In the systems analysis/planning step of the SDLC, you try to answer the question: “What do we
company is also using predictive analysis and machine learning to assess demand for its want this e-commerce site to do for our business?” The key point is to let the business decisions
products. AI is also used for inventory management drive the technology, not the reverse. This will ensure that your technology platform is aligned
- What About ChatGPT and E-commerce? with your business.
ChatGPT is a language model that is designed to simulate human-like conversations and - One way to start is to identify the specific business objectives for your site, and then develop a
generate responses based on the input it receives. While it can be used for various purposes, list of system functionalities and information requirements.
including e-commerce, it is not a standalone AI tool that is specifically designed for e-commerce - System analysis: Business objectives, system functionalities, and information requirements for a
applications. typical EC site (use as examples)
In e-commerce, chatbots are typically used to provide customer support, answer product-related
questions, and guide customers through the purchasing process. While ChatGPT can simulate Business Objectives System Functionality Information Requirements
conversations and generate responses, it is not optimized for these specific use cases and may
Display goods Digital catalog Dynamic text and graphics catalog
not be as effective as a dedicated e-commerce chatbot solution.
That being said, ChatGPT can still be useful in e-commerce for generating product descriptions, Provide product Product description, stocking numbers, inventory
customer reviews, and other content. Additionally, it can be integrated into other AI tools and information (content) Product database levels
e-commerce platforms to enhance their capabilities and provide a more personalized experience Site log for every customer visit; data mining
for customers. Personalize/ Customer on-site capability to identify common customer paths and
customize product tracking appropriate responses
CHAPTER 3. E-COMMERCE WEBSITE
Engage customers in On-site blog; user Software with blogging and community forum
1. Website technologies conversations forums functionality
- Website is a group of World Wide Web pages usually containing hyperlinks to each other.
39 40
 Shopping cart/ Secure credit card clearing; multiple payment continual checking, testing, and repair. Systems maintenance is vital, but sometimes not
Execute a transaction payment system options budgeted for.
3. EC website attributes
Accumulate Name, address, phone, and email for all customers;
3.1. Two ways interaction
customer information Customer database online customer registration
- Allows for two-way communication between merchant and consumer and enables the
Provide after-sale merchant to engage a consumer in ways similar to a face-to-face experience but on a much
customer support Sales database Customer ID, product, date, payment more massive, global scale.
Coordinate 3.2. Measurement
marketing/ Ads, email, banner, Site behavior log of prospects and customers linked - The process of evaluating and quantifying various characteristics or features of an EC website
advertising campaign manager to email and banner ad campaigns (Web analytics, e.g. Google Analytics)
3.3. Instantaneous
Understand
- Available just about everywhere, at all times, making it possible to shop from your desktop, at
marketing Site tracking and Number of unique visitors, page visited, products
home, at work, or even from your car.
effectiveness reporting system purchased, identified by marketing campaigns
3.4. Global
Provide production Inventory Product and inventory levels, supplier ID and contact, - Permits commercial transactions to cross cultural and national boundaries far more
and supplier links management system order quantity data by product conveniently and cost-effectively than is true in traditional commerce.
3.5. Personalization
2.2. Systems Design - The increase in information density allies merchants to target their marketing messages to
- Once you have identified the business objectives and system functionalities, and have specific individuals and results in a level of personalization and customization unthinkable with
developed a list of precise information requirements, you can begin to consider just how all this previously existing commerce technologies.
functionality will be delivered. You must come up with a system design specification—a
description of the main components in the system and their relationship to one another. 4. EC Website design
- The system design itself can be broken down into 2 components: - Important factors in EC Website design:
+ Logical design: describes the flow of information at your EC site, the processing functions Factor Description
that must be performed, the databases that will be used, the security and emergency
Pages that work, load quickly, and point the customer toward your product
backup procedures that will be instituted, and the controls that will be used in the system.
Functionality offerings.
+ Physical design: translates the logical design into physical components.
2.3. Building the System Links that customers can easily find to discover more about you and your
- Now that you have a clear idea of both the logical and physical designs for your site, you can Informational products.
begin considering how to actually build the site or outsource. Ease of use Simple fool-proof navigation.
2.4. Testing the System
Redundant
- Once the system has been built and programmed, you will have to engage in a testing process.
navigation Alternative navigation to the same content.
Depending on the size of the system, this could be fairly difficult and lengthy. Testing is required
whether the system is outsourced or built in-house. A complex EC site can have thousands of Ease of purchase 1 or 2 clicks to purchase.
pathways through the site, each of which must be documented and then tested. Multi-browser
- Form of testing: functionality Site works with the most popular browsers.
+ Unit testing
Avoids distractions, obnoxious graphics and sounds that the user cannot
+ System testing
Simple graphics control.
+ Acceptance testing
+ A/B testing Legible text Avoids backgrounds that distort text or make it illegible.
+ Multivariate testing - EC website features that annoy customers:
2.5. Implementation and Maintenance + Requiring user to view ad or intro page before going to website content
While the beginning of the process is over, the operational life of a system is just beginning. + Pop-up and pop-under ads and windows
Systems break down for a variety of reasons—most of them unpredictable. Therefore, they need + Too many clicks to get to the content
+ Links that don’t work

41 42
 + Confusing navigation; no search function - Cookies:
+ Requirement to register and log in before viewing content or ordering + Small text files deposited by the website on the user's computer to store information about
+ Slow loading pages the user, accessed when the user next visits the website.
+ Content that is out of date… + Can help personalize website experience
5. Other software support for EC website + However, it can pose privacy threat
5.1. The Foundations 5.2. Other EC sites tools
- Email: - Tools for Search Engine Optimization:
+ The most used application of the Internet + Meta Tags, titles, page content
+ Uses series of protocols for transferring messages with text and attachments (images, + Identify market niches
sound, video clips, etc.,) + Offer expertise
+ Can be an effective marketing tool + Get linked up
+ However, spam is a worsening problem + Buy ads
- Instant messaging: Displays text entered almost instantaneously. Recipients can then respond + Local EC
immediately to the sender the same way, making the communication more like a live - Tools for Interactivity and Active Content:
conversation than is possible through email + Common Gateway Interface (CGI):
For example, Meebo, Digsby allow users to communicate across platforms. + Active Server Pages (ASP) and ASP.NET
- Search engines: + Java, Java Server Pages (JSP), and JavaScript
+ Identify web pages that match queries based on one or more techniques (keyword + ActiveX and VBScript
indexes, page ranking) + ColdFusion
+ Also serve as: shopping tools; advertising vehicles (search engine marketing); a tool within + PHP, Ruby on Rails (RoR), and Django
EC sites. + Widget
+ Outside of email, search engines is the most commonly used Internet activity - Personalization Tools: For example, when a user returns to a site, you can read the cookie to
For example, how Google works: find a customer ID, look the ID up in a database of names, and greet the customer (“Hello Mary!
Glad to have you return!”).
- Web site optimization:
+ Page Generation: Server response time, Device-based accelerators, Efficient resource
allocation, Resource utilization thresholds, Monitoring site performance
+ Page Delivery: Content delivery networks, Edge caching, Bandwidth
+ Page Content: Optimize HTML, Optimize images, Site architecture, Efficient page style
5.3. Web 2.0 Features and Services
- Blogs: Personal Web page that typically contains a series of chronological entries by its author,
and links to related Web pages
- Really Simple Syndication (RSS): Program that allows users to have digital content
automatically sent to their computers over the Internet.
- Podcasting: Audio presentation stored as an audio file and available for download from Web
- Intelligent agents (bots): Software programs that gather and/or filter information on a specific - Wikis: Allow users to easily add and edit content on Web page
topic and then provide a list of results (search bot, shopping bot, news bot…) - New Music and video services: Videocasts, digital video on demand
- Online forums and chat: - Internet telephony (VOIP): Uses Voice Over Internet Protocol (VOIP) and Internet’s
+ Online forums: Web application that enables Internet users to communicate with each packet-switched network to transmit voice and other forms of audio communication over the
other, although not in real time. Members visit online forums to check for new posts. Internet
+ Online chat: Typically, multiple users log into chat rooms. - Internet Television (IPTV)
- Streaming media: - Telepresence and video conferencing
+ Enables music, video, and other large files to be sent to users in chunks so that when - Online software and Web services: Web apps, widgets, gadgets, digital software libraries,
received and played, files come through uninterrupted. distributed storage
+ Allows users to begin playing media fuels before the file is fully downloaded. - M-commerce applications

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 Adaptability to Slow Rapid
CHAPTER 5. RETAILING IN E-COMMERCE (B2B, B2C…) (Câu hỏi thảo luận thực tế)
market trends
1. Definition of electronic retailing
Retailing conducted over the Internet is called electronic retailing (e-tailing), and sellers who
3. Online purchasing process
conduct retail business online are called e-tailers. For example, Amazon.com sells to both
individuals and to organizations. Walmart (walmart.com) sells to both individuals and businesses
(via Sam’s club). Dell sells its computer to both consumers and businesses from Dell.com.

2. Characteristics of online sale

Factor Retailer E-tailers

Increase of Expansion of locations, stores Going out of their regular area and even
sales volume and space globally to find customers

More visitors Expand marketing efforts to Expand marketing communications to

but less turn “window shoppers” into turn viewers to shoppers
revenue active shopper

Use of Automation store Ordering, payments and fulfillment

technology technologies such as POS, system, comparisons and customer
self-check, and information testimonials, instant delivery of digital
kiosks products

Customer Face-to-face, stable contacts. Anonymous contacts, less stability. More

relations and More tolerance of disputes responsive to complaints due to
handling of due to face-to-face contacts potential negative publicity via social 4. Consumer touch point
complaints media platforms (Eg: Facebook, Twitter..) - A customer touchpoint is any time a consumer interacts with your brand, whether that's
through an employee, a website, an advertisement, or an app. And the experiences consumers
Competition Local competition. Fewer More competitors. Intense due to have with those touchpoints can shape how they view your company.
competitors comparisons and price reductions.
Global competition

Customer base Local area customers. Lack of Wide-area customers. Anonymity most
anonymity. High increase of of the time. Easy to switch brands (less
customer loyalty loyalty).

Supply chain High cost. Interruptions Lower cost. More efficient

cost

Customization Expensive and slow. Not very Fast, more efficient. Popular
and popular
personalizatio
n

Price changing Expensive and slow, not done Inexpensive, can be done anytime
often

45 46
5. Online consumer purchasing decision-making and behavior 6.3. Banking and Finance
(P362 behavior) - Bank branches: These branches provide a variety of banking services, such as checking and
savings accounts, loans, and investment products.
- Automated teller machines (ATMs): These machines allow customers to withdraw cash, make
deposits, and transfer funds.
- Insurance agencies: These agencies sell insurance products, such as life insurance, health
insurance, and auto insurance.
- Tax preparation services: These services help individuals and businesses prepare their taxes.
6.4. Real estate
- Real estate brokerages: These brokerages help buyers and sellers of real estate find properties,
negotiate contracts, and complete transactions.
- Real estate agents: These agents work for real estate brokerages and represent buyers or sellers
in real estate transactions.
- Property management companies: These companies manage rental properties for landlords,
such as finding tenants, collecting rent, and maintaining the property.
- Real estate investment firms: These firms invest in real estate, such as buying, developing, and
managing properties.

7. Software application in EC Retailing

7.1. OMNI Channel

6. Application of retailing in some business sectors

6.1. Health service
- Retail pharmacies: These pharmacies sell over-the-counter medications, health and beauty
products, and other healthcare items.
- Optical shops: These shops sell eyeglasses, contact lenses, and other vision care products.
- Hearing aid centers: These centers sell hearing aids and other hearing care products.
- Medical equipment suppliers: These suppliers sell medical equipment and supplies to
healthcare providers and consumers.
- Health food stores: These stores sell natural and organic foods, supplements, and other health
products. Omnichannel is an approach to sales, marketing and customer support that seeks to provide
6.2. Tourism customers with a seamless and unified brand experience, regardless of which channel they use.
- Travel agencies: These agencies sell travel packages, tours, and other travel services. The organization's distribution, promotion and communication channels are well-integrated in
- Tourist information centers: These centers provide information about attractions, events, and the back end, so regardless of whether the customer is shopping online from a desktop or
services in a particular tourist destination. mobile device, by telephone or in a brick-and-mortar store, their experience will be seamless and
- Souvenir shops: These shops sell souvenirs, gifts, and other merchandise to tourists. consistent.
- Duty-free shops: These shops sell products that are exempt from taxes and duties, such as Omni-channel, on the other hand, allows the customer to use many different channels that are
alcohol, tobacco, and perfume. well coordinated. Here, the customer decides what channel to use. They revolve around the
- Hotels and resorts: These establishments provide lodging, meals, and other services to tourists. customer and they can, therefore, choose their preference.
47 48

The idea of omni-channel retail is that the customer is at the centre and can choose which
channels and media they want to use. This applies in B2C as well as in B2B.
Examples for Omni Channel:
A big name in the retail industry, with more than 150 years of age, Macy's is one of the companies
that represents the success of Omni-channel. The company uses digital Omnichannel systems to
optimize goods distribution services while cleverly taking advantage of huge sales locations.
Distribution centers apply the "buy online, pick up in store" program. This program contributes to
attracting more customers to the company's stores. Its sales increased 48% in 2012 and profit
margins increased 257.2% in 2014. This successful digital transformation also increased the
company's brand value by 383% between spring 2013 to spring 2014, according to Interbrand
magazine's Top Retailers rankings.
The advantages of omni-channel
It takes a lot of time and effort to set up an omni-channel experience, but is it worth it? Here are
some advantages of the omni-channel strategy.
Customer satisfaction is higher
If the right channels are used for the right target group, consumers can use the channel they
prefer. In addition, the fact that you have a physical and and an online presence gives your
company a “face” and creates consumer confidence.
This fluid experience gives customers a deeper, more satisfied connection with the brand, which
should boost customer loyalty. By now, you should know that keeping existing customers is
always easier and cheaper (and therefore, more efficient!) than attracting new customers.
Time-saving
Customers can go to the physical store with their products that they purchased online and return
them there. In many cases, this saves time for the customer. If it's convenient or urgent, they at
least have the option to exchange items in person and they won't have to wait for the new
product to arrive. This flexibility will add to customer satisfaction and can also help boost sales as
foot traffic to your physical shop increases as well.
Conversion Rate
Because the product information is displayed throughout multiple channels, consumers are
more inclined to actually buy the product. Shoppers get a certain feeling of trust when they
know any channel can be used to buy a product and know they are getting the same deal
wherever they choose to go.
The disadvantages of Omni Channel:
Mobile phone threat
Mobile phones are still often seen as a threat to shop owners. A lot of work is done on
showrooming, which means that the customer will look at the product in the physical shop and
then search for it online to maybe find it at a lower price. This can be detrimental to your physical
shop. Try to reverse this mobile phone trend so it becomes a positive medium for you. You can,
for example, add QR codes to your shelves and shop windows. This way, these shoppers are sent
directly to your website and don’t end up "somewhere else" while standing in the middle of your
shop.
49
Changes to your company's organizational structure
- Implementing an omni-channel strategy means that you will have to make some changes
within your organizational structure.
- Most companies have a traditional marketing department and a separate online
marketing department. Similarly, your mobile support may come from the development
department rather than the customer support team.
- Working this way within your company is difficult if you want to implement an
omni-channel retail strategy.
7.2. CRM and CDP
a, Definition
- CRM (Customer Relationship Management): is a technology for managing all company’s
relationships and interactions with current customers and potential customers. It also will help
companies stay connected to customers, streamline processes, and improve profitability by
tracking and following a customer’s interaction journey with your business.
CDP (Customer Data Platform): is technology that allows businesses to pull in customer data
from any channel, system, or data stream to build a unified customer profile, allowing companies
to offer hyper-personalized experiences for customers.
b, Features and functions
* CRM:
- Features:
- Functions:
+ Acquiring & Storing Information: collects and stores information about target customers
from the market → understand their customers behavior, providing better satisfaction
+ Customer Management: divides & groups all customers into different groups → Customers
will be treated differently according to their groups
+ Management Of Marketing Policies: designing marketing strategies as per the needs of
different customers → attract more & more customers
+ Increase Sale: CRM focuses on Cross-selling & Up-selling techniques
50
 + Proper Communication Network: providing fast & best customer support → Customers can + Identity resolution: attribute multiple data points to the same individual customer profile,
easily contact the agents & get their issues resolved, Agents are required to keep a record track and store data coming from anonymous users through cookies and are able to
of each & every interaction with customers identify these users and provide more context regarding the pre-purchase stages of their
+ Cost Controlling: All data is stored digitally on a database centrally. → reduces the customer journey
manpower requirement for business → overall brings down the cost & increase the profit + Customer data analysis & activation:
margin ● The analytical capabilities of CDP allow for several types of analysis: in-depth analysis
+ Improve Quality: better understanding the needs of customers → customers happy & of individual customers, real-time audience segmentation, journey analytics
properly satisfied, product is meeting the minimum quality standard level ● Customer data activation: sending high-quality customer data to the right
* CDP: marketing channels
- Features: c, Application model (Hướng dẫn sử dụng)
- CRM Using process
+ Step 1: Generate brand awareness
The first step to acquiring new customers is
awareness, which refers to how familiar prospects
and customers are with your brand → collect these
clues from the very first point of contact.
The marketing team begins this task by
researching your target audience’s demographics,
purchasing behavior, interests, and preferences →
create “The customer persona” → deliver a
personalized customer experience.

+ Step 2: Acquire leads:

The sales or marketing team
(or both) engages with your
target audience via available
communication channels (live
chat, sign-up form,...) -> pull
important information ->
easier to personalize prospect
outreach

+ Step 3: Convert Leads Into

Customers
- Functions:
+ Customer data unification: collect data and input from any source that generates or stores
customer data
+ Creating a single customer view: all data points are grouped in individual profiles and help
companies to identify a user on their website as the same person; knowing all touchpoints
of the customer journey → re-engage them after some time of inactivity

51 52
If leads seem interested but haven’t made a purchase -> can leverage engagement data stored in
your CRM to provide personalized offers that will help build trust and nurture them toward
purchase.
You can also apply lead scoring to focus your efforts on the right leads and identify winning
opportunities.
+ Step 4: Nurture Leads

+ A CDP connects to a wide range of technology platforms, data sources and channels by
using built-in connectors, SDKs, webhooks, and APIs. They ingest and integrate data from
multiple disparate sources, including profile data and real-time interaction data (behavioral
Your customer relationship management process continues to increase retention by providing
data, transactional data), campaign data, product data, customer support data, mobile,
personalized experiences that meet and exceed customer expectations -> Ex: email marketing
POS, marketing, device, and internet-of-things (IoT) data.
+ A customer data platform ingests and integrates those data sets to create a single unified
+ Step 5: Provide Quality Customer Support
customer profile. This integration process is called identity resolution or data unification.
Leverage your CRM’s help desk and service system to understand your customer’s user
Customer identity resolution includes sophisticated algorithms to stitch identifiers from
experience after they make a purchase. Getting honest feedback from them is important to
multiple systems, as well as automate graph creation and continuously unifying data into
understand the changes you need to make to improve their experience.
a profile as customers engage in real-time. During the unification process, data is
+ Step 6: Drive Upsells & Cross-sells
validated, cleaned, and de-duped to create a single customer view. Profiles are then
Once you’ve built and established your customer database, the goal is to introduce repeat buyers
enriched with first, second, and third-party data sources to fill in missing attributes and
to your other products or services -> use upselling and cross-selling strategies
update other attributes with more recent information.
+ CDPs can also analyze and segment customer profiles using rules or machine learning,
- CDP Using process
perform predictive scoring, and journey orchestration capabilities. Some more advanced
CDPs provide machine learning (ML) and artificial intelligence (AI) for predictive analytics
and audience segmentation. With customer journey orchestration capabilities, marketers
can analyze customer interactions throughout the entire customer journey to deliver the
right message, at the right time, on the right channels.

53 54
d, Differentiate CRM and CDP. What is the best solution for businesses?
potential customers, hence, it helps multiple touchpoints and marketing
CRM CDP the business to stay in touch with channels to gain a single, unified view
current customers to build brand of customers’ journey.
Data Types - A CRM collects first-party data from - A CDP collects first, second, and loyalty and encourage them to
customers’ interactions with different third-party data from various online repurchase again in the future.
departments of the company. CRMs and offline sources. It then unifies this
are capable of providing only a data into individual profiles to create a Users - While CRMs can help many different Non-customer-facing roles, like
snapshot of a specific part of a single customer view of each departments, it’s customer-facing marketing, often use CDPs. That’s
customer profile or journey. customer. roles - like sales and customer service because CDPs give you a complete
- CRMs can only store data to existing - CDP can collect from known reps - that most often use CRM overview of your customers’
customers or leads. They don’t collect customers as well as anonymous software. behaviors, including how they use
anonymous user data as they cannot users. - A CRM platform is most effective for your website and which marketing
identify and link them with existing - CDPs can track: Which pages users sales teams because it tracks all the channels they interact with. Moreover,
data. visit on the website? Which marketing data the reps need to successfully CDP integration enables marketers to
- CRMs can collect data like: channels do they interact with? As close more deals. perform omnichannel personalized
Demographic data, Customer well as other personal data, - It houses all the contact details of marketing.
purchasing history, Customer engagement data, behavioral data your leads, so your sales team can
preferences, etc. and attitudinal data of customers. easily communicate with prospects at
each stage of the sales funnel to
For example, using the CDP system, Samsung can notice that one of the encourage them to convert into
customers first found their product through a search on Google. Let’s say they customers.
search: “What is the newest Samsung smartphone?”. Then they visited your
website to see the product. And after that, they went on Youtube to watch => Solution:
reviews of the product before making a purchase. All of this data will be - CRM is more suited for B2B (fewer needs of PR/Marketing)
automatically collected by the CDP system. And if Samsung only used the + Main focus: Little multi-channel interaction among businesses
CRM system, the company could only know the customer’s behaviors when + Data scale: B2B businesses would require a smaller amount of data.
they were on its official landing page. - CDP is more suited for B2C to consolidate a vast amount of data into clear customers’ profile
+ Main focus: Customers come from everywhere and interact all over the place
Data - Data volume: CDPs are built to collect, process, and stream data at scale. + Data scale: Large B2C brands (like Samsung, Unilever, for example) that serve millions of
Collection That includes tracking engagement activity for millions of users. That’s a big users would be a perfect fit with CDP.
step up from a CRM, which is built to handle a smaller number of data. Ultimately, the best solution will depend on the business’s needs and budget. CDPs offer more
- Collecting data speed: Speed is a big factor here, too: CDPs are built to robust functionality and integration, but they can be more expensive. CRMs are more affordable
stream data at rates as fast as tens or hundreds of thousands of hits per and easier to use, but they may not have all the features the business needs. Most importantly,
second, while solving for things like identity resolution and privacy in real time. identify what best fits the business through the pros and cons of both systems
CRMs aren’t built for that. They use more infrequent batching because the use
cases they’re designed for didn’t require real-time data. CHAPTER 6. ONLINE B2B TRANSACTION (Câu hỏi thảo luận thực tế)
- Integration: CDP can easily integrate with other data platforms or marketing 1. Definition and online B2B Models
tools while CRM has limited capabilities in integrating with multiple systems Business-to-business e-commerce (B2B EC), also known as eB2B (electronic B2B), or just B2B,
and channels refers to a transactions between business conducted electronically over the Internet, extranets,
intranets, or private networks. Such transactions may take place between a business and ít
Purposes The purpose of a CRM is to help a On the other hand, the purpose of supply chain partners, as well as between a business and a government and with any other
business improve interactions and CDP is to help a business better business. In this context, a business refers to any organization, private, public, profit, or nonprofit.
relationships with their customers. understand their customers’ In B2B, companies aim to computerize trading transactions and communication and
This tool can track all company’s behaviors. This system can track and collaboration process in order to increase efficiency and effectiveness. B2B EC is very different
relationships with current and manage customer data across and more com``6an B2B. It is much more difficult to sell to a company than to individuals.

55 56
 + Company-centric (EC)
2. Evolution of B2B Commerce + The company has control over all transaction and supporting information systems
- Automated order-entry systems 1970’s: Seller-side solution using tele modems to send digital + Private
orders to companies + As a solution, large buyers can open their own marketplaces called buy-side
- Electronic data interchange (EDI) e-marketplaces , and invite sellers to browse and offer to fulfill demand.
+ Buyer-side solution aimed at reducing buyer cost
+ Hub-and-spoke system with buyers in the center
+ Serve vertical markets that provide products/services for a specific industry such as auto
industry
- B2B electronic storefronts are online catalogs of products available to the public by a single
supplier
- Net marketplaces bring many suppliers and buyers together into a single internet-based
environment to do business
- Private industrial networks enable buyer firms and their suppliers to share product design,
development, marketing, inventory, product scheduling and communication

3.2. Sellers’ side (sell side): One seller to many buyers

In the B2C model, a manufacturer or a retailer electronically sells directly to consumers from a
storefront (or webstore). In a B2B sell-side e-marketplace, a business sells products and services
to business customers electronically, frequently over an extranet. The seller can be a raw material
producer selling to manufacturers or a manufacturer selling to an intermediary such as a
wholesaler, a retailer, or an individual business. Intel (intel.com), Exxon (exxon.com), Cisco
Systems, Inc. (cisco.com), and Dell (dell.com) are examples of such sellers. Alternatively, the seller
can be a distributor selling to retailers or businesses (e.g., W.W. Grainger, Inc. (grainger.com). In
either case, sell-side e-marketplaces involve one seller and many potential buyers. In this model,
both individual consumers and business buyers might use either the same private sell-side
marketplace (e.g., dell.com) or a public marketplace.

3. Types of transaction
3.1. Buyers’ side (buy-side): One buyer from many sellers
- Some basic characteristics:
+ Many-to-one
+ One company does all the buying

57 58
3.3. Exchange market (marketplaces or exchanges): Many sellers to many buyers

3.4. Supply chain improvements and 3.5. Collaborative commerce

5. B2B Infrastructure and software

5.1. EDI (Electronic Data Interchange)
- Electronic Data Interchange (EDI) is the computer-to-computer exchange of business
documents in a standard electronic format between business partners. By moving from a
paper-based exchange of business documents to one that is electronic, businesses enjoy major
benefits such as reduced cost, increased processing speed, reduced errors and improved
relationships with business partners.
- Broadly defined communications protocol for exchanging documents among computers
+ Stage 1: 1970s–1980s—Document automation
+ Stage 2: Early 1990s—Document elimination
4. B2B Decision-making behavior + Stage 3: Mid-1990s—Continuous replenishment/access model
- Today: EDI provides for exchange of critical business information between computer
applications supporting wide variety of business processes
- The evolution of EDI as a B2B Medium:

59 60

5.2. SCM (Supply Chain Management Systems)
- Supply chain management (SCM) is management of the flow of goods, data, and finances
related to a product or service, from the procurement of raw materials to the delivery of the
product at its final destination.
- Continuously link activities of buying, making, and moving products from suppliers to buyers.
SAP and Oracle Mobile apps for smartphones, tablets.
- Integrates demand side of business equation by including order entry system in the process
- With SCM system and continuous replenishment, inventory is eliminated and production
begins only when order is received
- Hewlett Packard’s SCM system: Elapsed time from order entry to shipping PC is 48 hours. HP’’s
supply chain continues to strengthen the company’s market leading position in printing and
61
personal systems, helping it to better deliver for customers on a day-to-day basis.
5.3. ERP
- Enterprise resource planning (ERP) refers to a type of software that organizations use to
manage day-to-day business activities such as accounting, procurement, project management,
risk management and compliance, and supply chain operations.
- The business value of ERP
+ Improved business insight from real-time information generated by reports
+ Lower operational costs through streamlined business processes and best practices
+ Enhanced collaboration from users sharing data in contracts, requisitions, and purchase
orders
+ Improved efficiency through a common user experience across many business functions
and well-defined business processes
+ Consistent infrastructure from the back office to the front office, with all business activities
having the same look and feel
+ Higher user-adoption rates from a common user experience and design
+ Reduced risk through improved data integrity and financial controls
+ Lower management and operational costs through uniform and integrated systems
62
5.4. Others
- Blockchain:
- Barcode:
+ A blockchain is a database in which bits of information (or blocks) are linked together (in a
+ A barcode is a square or rectangular image consisting of a series of parallel black lines and
chain). Since the database is shared and managed by more than one party, irregularities
white spaces of varying widths that can be read by a scanner. Barcodes are applied to
are easily spotted, making it a highly trustworthy system.
products as a means of quick identification. They are used in retail stores as part of the
+ By leveraging blockchain, e-commerce businesses enhance security, transparency, and
purchase process, in warehouses to track inventory, and on invoices to assist in accounting,
efficiency. Yet, it's crucial to consider the challenges associated with its implementation.
among many other uses.
They include technical and scalability issues, as well as regulatory considerations. To
+ There are two general types of barcodes:
navigate complexities, we will provide best practices for implementing blockchain in
○ 1-dimensional (1D): are a series of lines used to store text information, such as
e-commerce.
product type, size, and color. They appear in the top part of universal product codes
- Big data:
(UPCs) used on product packaging, to help track packages through the U.S. Postal
+ Big data is a form of e-commerce that uses Big Data and Analytics to improve customer
Service, as well as in ISBN numbers on the back of books.
engagement, personalize the shopping experience, and increase sales. Big data engages
○ 2-dimensional (2D): are more complex and can include more information than just
customers in two main ways: by providing personalized recommendations and increased
text, such as the price, quantity, and even an image. For that reason, linear barcode
visibility into product information.
scanners can’t read them, though smartphones and other image scanners will.
+ Some advantages of Big Data in e-commerce:
- RFDI:
○ Personalization
+ Radio-frequency identification (RFID) technology is a way for retailers to identify items
○ Improve SEO
using radio waves. It transmits data from a RFID tag to a reader, giving you accurate,
○ Manage Customer Relationships
real-time tracking data of your inventory.
○ Improve Customer Service
+ RFID is a wireless technology with two main parts: tags and readers. The reader is a device
- GIS:
that has one or more antennas that send and receive electromagnetic signals back from
+ A geographic information system (GIS) is a system that creates, manages, analyzes, and
RFID tags. These tags, which store a serial number or unique identifier, use radio waves to
maps all types of data. GIS connects data to a map, integrating location data (where things
send their data to nearby readers. They contain RFID chips, also known as integrated
are) with all types of descriptive information (what things are like there). This provides a
circuits (IC), which communicate data to the reader.
foundation for mapping and analysis that is used in science and almost every industry. GIS
helps users understand patterns, relationships, and geographic context. The benefits
include improved communication and efficiency as well as better management and
decision making.
+ The advantage of using GIS has been the ability to visualize spatial relationships, such as
identifying the distribution of customers, viewing purchasing behavior, and understanding
63 64
 the demographic characteristics of local communities. These applications were based on
desktop software systems, but that is changing. The Web has truly transformed the
delivery of information forever. It has changed the way we purchase goods, and our
expectations of customer service. It has also changed business-to-business and
business-to-customer marketing by bringing the relationship between each into much
closer association. By capitalizing on the ability to deliver spatially enabled applications by
way of the Internet, mapping technology is maturing throughout a vast number &
industry sectors. Few examples of such spatial applications are customer relationship
management (CRM), enterprise resource planning (ERP), data mining and Webbased
address locator tools.
- DMS (Distributed Management System)
+ Distributor Management Systems (DMS) are now a fundamental component in any
consumer goods company’s route-to-market. They help manage the supply chain
between Manufacturers and a myriad of Distributors by aligning retail activities, trade
promotions, inventory, invoicing, claims, competitive insights and much more.
+ A modern DMS streamlines all distribution workflows and activities, improves supply chain
efficiency, eliminates stock outs and overstocking and allows companies to access real
time data from distributors. The right solution can bolster sales and distribution activities
even in a fragmented marketplace, but let’s examine exactly why it is that they’re so CHAPTER 7. E-GOVERNMENT
important. 1. Overview - Book 1 Page 169
6. Collaborative commerce - Definition: E-government refers to the use of information technology and communication
6.1. Definition (ITC) in general, and e-commerce in particular, to improve the delivery of government services
Collaborative commerce is an e-commerce technology that can be used to improve collaboration and activities in the public sector, such as providing citizens with more convenient access to
within and among organizations, frequently in supply chain relationships. information and services and providing effective delivery of government services to citizens and
6.2. Essentials of Collaborative commerce businesses as well as improving the performance of government employees.
Collaborative commerce (c-commerce) refers to electronic support for business collaboration. It E-government offers an opportunity to improve the efficiency and effectiveness of the internal
enables companies to collaboratively plan, design, develop, manage, and research products, operation of a government.
services, and innovative business processes, including EC applications. An example would be a 2. Different models (G2G, G2E, G2B, G2C) - Book 1 Page 170
manufacturer who is collaborating electronically with an engineering company that designs a
product or a part for the manufacturer. C-commerce implies communication, information
sharing, and collaborative planning done online by using tools such as groupware, blogs, wikis,
and specially designed EC collaboration tools. Sometimes as a digital partnership, c-commerce
can drive significant business success. Many collaboration efforts are done along the supply chain
where the major benefits are cost reduction, increased revenue, fewer delays, faster movement of
goods, fewer rush orders, fewer stockouts, and better inventory management. C-commerce is
strongly related to e-collabo-ration, which is collaboration using digital technologies among
people for accomplishing a common task.
6.3. The Elements and Processes of C-Commerce
The elements of the processes of the c-commerce vary according to situations.

65 66
 • Intelink. Intelink (intelink.gov) is an intranet that contains classified information that is shared
by the numerous US intel-ligence agencies. It is a US government computer system that is
provided only for authorized US government use
2.4 Government-to-Employees (G2E)
- Government-to-employees (G2E) applications refer to e-commerce activities between the
government and its employees.
- Such activities may be especially useful in enabling efficient e-training of new employees,
e-learning for upgrading skills, and communication and collaboration activities. Other typical
services are e-payroll, e-human resource management, and e-recruiting
2.5 Internal Efficiency and Effectiveness (IEE)
- Automation, including e-commerce, provides an opportunity to significantly improve operations
3. Framework
4. Government regulations on E-gov
5. Digital Government - Book 2 Page 175
M-Government (Mobile government) is the implementation of e-government applications
using wireless platforms and mobile devices, especially smartphones. It is done mostly in G2C
● Technologies in e-Government
- Artificial Intelligence (AI) Applications
- Virtual Advisors
- Chatbots
- Virtual Reality and Augmented Reality

CHAPTER 8. ONLINE PAYMENT AND SECURITY

2.1 Government-to-Citizens
- The government-to-citizens (G2C) category includes all the interactions between a
government and its citizens that take place electronically.
- The basic idea is to enable citizens to interact electronically with the government from
anywhere and at any time: ask questions of government agencies and receive answers, pay
taxes, receive payments and documents, and schedule services, such as employment interviews
and medical appointments.
-> For example, in many US states, residents can renew driver’s licenses, pay for traffic tickets, and
make appointments for vehicle emission inspections and driving tests—all online.
-> Two popular examples of G2C: (Book p171)
- Electronic voting
- Hackable Elections
- Electronic Benefits Transfer
2.2 Government-to-Business
- G2B refers to activities where the government sells products to businesses or provides
businesses with services and vice versa. Two key G2B activities are e-procurement and the
auctioning of government surpluses.
2.3 Government-to-Government
- The government-to-government (G2G) category consists of EC activities between different units
of government, including those within one governmental body.
- G2G examples from the United States:
1. Drivers of online payment
- Convenience: Online payments offer a convenient and easy way to make purchases without
the need to carry cash or cards. Consumers can make payments from anywhere with an internet
connection, and the process is often faster than traditional payment methods.
- Security: Online payment systems are becoming increasingly secure, with many providers
using encryption and other security measures to protect consumer data. This has helped to
alleviate concerns about the safety of online payments, encouraging more consumers to adopt
this payment method.
- Growth of e-commerce: The rise of e-commerce has created a need for convenient and secure
online payment methods. Online payments have become essential for e-commerce businesses,
and the growth of e-commerce has in turn fueled the adoption of online payments.
- Mobile penetration: The widespread adoption of smartphones and tablets has made it easier
than ever for consumers to make online payments. Mobile payment apps are becoming
increasingly popular, allowing consumers to make payments with their smartphones or tablets.
- Innovation: The payments industry is constantly innovating with new technologies and
payment methods. This innovation is helping to make online payments even more convenient,
secure, and accessible.
- Demographic trends: Younger generations are more likely to adopt new technologies and are
more comfortable making online payments. This trend is expected to continue in the coming
years, as younger generations make up a larger share of the population.

2. Online payment technologies (slide chap 8)

67 68
2.1. Online credit card transactions
- How an Online Credit Transaction Work (slide chap 8)
- Credit Card E-commerce Enablers
+ Internet payment service providers (sometimes referred to as payment gateways)
can provide both a merchant account and the software tools needed to process
credit card purchases online.
+ For instance, Authorize.net is an Internet payment service provider. The company
helps a merchant secure an account with one of its merchant account provider
partners and then provides payment processing software for installation on the
merchant’s server. The software collects the transaction information from the
merchant’s site and then routes it via the Authorize.net “payment gateway” to the
appropriate bank, ensuring that customers are authorized to make their purchases.
The funds for the transaction are then transferred to the merchant’s merchant
account. CyberSource is another well-known Internet payment service provider.
- PCI-DSS Compliance (Payment Card Industry-Data Security Standard)
+ is a data security stan-dard instituted by the five major credit card companies (Visa,
MasterCard, American Express, Discover, and JCB).
+ PCI-DSS has various levels, related to the number of credit and/or debit cards
processed by the merchant each year.
- Level 1, the strictest level, applies to very large mer-chants that process more
than 6 million transactions a year, while
- Level 2 applies to those who process between 1 million and 6 million
- Level 3 applies to organizations that process between 20,000 and 1 million
transactions
- Level 4 applies to smaller merchants that process less than 20,000
transactions
+ PCI-DSS has six major control objectives.
- build and maintain a secure network
- protect cardholder data
- maintain a vulnerability management program
- implement strong access control measures
- regularly test and monitor networks
- maintain an informa-tion security policy
- Limitations of Online Credit Card Payment Systems: The most important limitations
involve security, merchant risk, administrative and transaction costs, and social equity
+ The existing system offers poor security
+ The administrative costs of setting up an online credit card system and becoming
authorized to accept credit cards are high
+ Credit cards are not very democratic, even though they seem ubiquitous
2.2. Alternative online payment systems (sách 1 trang 478)
● Online stored value payment system: permits consumers to make instant, online
payments to merchants and other individuals based on value stored in an online account
Ex: Paypal
● PayPal
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○ How Work: You establish a PayPal account by specifying a credit, debit, or checking
account you wish to have charged or paid when conducting online transac-tions.
When you make a payment using PayPal, you e-mail the payment to the
merchant’s PayPal account. PayPal transfers the amount from your credit or
checking account to the merchant’s bank account.
○ No personal credit information has to be shared among the users, and the service
can be used by individuals to pay one another even in small amounts
○ Hạn chế: its relatively high cost. (For example, when using a credit card as the
source of funds, to send or request money, the cost ranges from 2.9% to 5.99% of the
amount (depending on the type of transaction) plus a small fixed fee (typically
$0.30) per transaction. PayPal is discussed in further depth in the case study at the
end of the chapter)
● Other alternatives:
○ Amazon Payments: Consumers can purchase goods and services at non-Amazon
websites using the payment methods stored in their Amazon accounts, without
having to reenter their payment information at the merchant’s site. Amazon
provides the payment processing. Visa Checkout (formerly V.me) and MasterCard’s
MasterPass substitute a user name and password for an actual payment card
number during online checkout.
○ Google Wallet
○ Bill Me Later: Bill Me Later describes itself as an open-ended credit account. Users
select the Bill Me Later option at checkout and are asked to provide their birth date
and the last four digits of their social security number. They are then billed for the
purchase by Bill Me Later within 10 to 14 days
○ WUPay, Dwolla, Stripe
■ WUPay: WU Pay customers who select the WU Pay option at firms such as
Sears, Kmart, and other retailers do not have to provide any credit card
information. Instead they are e-mailed a bill, which they can pay via their
bank’s online bill payment service, or in person at any Western Union
location.
■ Dwolla: is a payment service that transfers money from a customer’s bank
account to firms they want to pay without using the major credit card
processing systems.
■ Stripe: Stripe is another company that is attempting to provide an alternative
to the traditional online credit card system. It provides simple software code
that enables companies to bypass much of the administrative costs involved
in setting up an online credit card system, and instead lets companies begin
accepting credit card payments almost immediately without the need to
obtain a merchant account or use a gateway provider.
2.3. Mobile payment systems: your smartphone wallet
● The use of mobile devices as payment mechanisms is already well established in Europe
and Asia and is now growing in the United States, where the infrastructure to support
mobile payment is beginning to be put in place.
● Near field communication (NFC): is a set of short-range wireless technologies used to
share information among devices within about 2 inches of each other (50 mm). A
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 connection requires one powered device (the initiator, such as a smartphone), and one
target device, such as a merchant NFC reader, that can respond to requests from the
initiator.
● Include: Apple Pay, PayPal, Square, Google Wallet
2.4. Social/mobile peer-to-peer payment systems
Services such as Venmo, Square Cash, Snapcash, Google Wallet, and the new Facebook
Messenger Payment service all enable users to send another person money through a mobile
application or website, funded by a bank debit card.
2.5. DIGITAL CASH AND VIRTUAL CURRENCIES
● Digital cash: an alternative payment system in which unique, authenticated tokens
represent cash value
Ex: Bitcoin. Bitcoins are encrypted numbers (sometimes referred to as cryptocurrency)
that are generated by a complex algorithm using a peer-to-peer network in a process
referred to as “mining” that requires extensive computing power. Like real currency,
Bitcoins have a fluctuating value tied to open-market trading. Like cash, Bitcoins are
anonymous—they are exchanged via a 34-character alphanumeric address that the user
has, and do not require any other identify-ing information.
● Virtual currency: typically circulates within an internal virtual world community or is
issued by a specific corporate entity, and used to purchase virtual good
Ex: such as Linden Dollars, created by Linden Lab for use in its virtual world, Second Life
2.6. ELECTRONIC BILLING PRESENTMENT AND PAYMENT (EBPP)
● Electronic billing presentment and payment (EBPP) systems are systems that enable the
online delivery and payment of monthly bills.
● EBPP Business Models: online banking, biller-direct, mobile, and consolidator.
○ Online Banking: the most widely used today. Consumers establish an online
payment service with their banks and use it to pay bills as they come due or
auto-matically make payments for, say, rent. The payments are made directly to the
seller’s bank account.
○ Biller-direct: consumers are sent bills by e-mail notification, and go to the
merchant’s website to make payments using their banking credentials
○ Moblie: allows consumers to make payments using mobile apps, once again relying
on their bank credentials as the source of funds. Consumers are notified of a bill by
text message and authorize the payment. An extension of this is the social-mobile
model, where social networks like Facebook integrate payment into their
messaging services. This is the fastest growing form of EBPP.
○ Consoilidator: a third party, such as a financial institution or a focused portal such as
Intuit’s Paytrust, Fiserv’s MyCheckFree, Mint Bills, and others, aggregates all bills for
consumers and permits one-stop bill payment.
3. Online payment risks
- Fraud: Fraudsters can use stolen or fake payment information to make unauthorized purchases.
This can result in financial losses for both businesses and individuals.
- Data breaches: Hackers can break into the systems of businesses and payment processors to
steal sensitive customer data, such as credit card numbers and Social Security numbers. This
data can then be used to commit identity theft or other forms of fraud.
71
- Malicious software: Malware, such as phishing scams and viruses, can be used to trick people
into revealing their personal information or downloading malware that can steal their payment
information.
- Chargebacks: Chargebacks occur when a customer disputes a transaction with their bank. This
can be due to fraud, unauthorized use of their card, or dissatisfaction with the goods or services
they purchased. Chargebacks can be costly for businesses, as they may have to refund the
customer and pay additional fees.
- Card data security.
4. Overview of online payment in VN
Vietnam's online payment landscape is experiencing rapid growth, driven by a number of factors
including increasing smartphone penetration, growing e-commerce adoption, and government
initiatives to promote cashless payments.
Cash on delivery (COD) remains the most popular online payment method in Vietnam,
accounting for over 70% of all e-commerce transactions. However, the use of e-wallets and other
digital payment methods is growing rapidly. MoMo, ZaloPay, and ShopeePay are the most
popular e-wallets in Vietnam.
Bank transfers are also a popular online payment method, accounting for around 20% of all
e-commerce transactions. However, bank transfers can be slow and inconvenient, and many
consumers are turning to e-wallets for their convenience and security.
Credit and debit cards are less popular for online payments in Vietnam, accounting for around
10% of all e-commerce transactions. This is due to a number of factors, including low card
penetration and concerns about security. However, the use of credit and debit cards is expected
to grow in the coming years as more people become comfortable using them online.
The Vietnamese government is also taking steps to promote cashless payments. In 2020, the
government launched a national e-payment strategy with the goal of increasing the use of
digital payments to 80% by 2025. The government is also working to improve the regulatory
environment for e-payments and to encourage the adoption of digital payment solutions by
businesses.
The growth of online payments in Vietnam is being driven by a number of factors, including:
Increasing smartphone penetration: Vietnam has one of the highest smartphone penetration
rates in Southeast Asia, with over 70% of the population owning a smartphone. This is making it
easier for people to access and use online payment services.
Growing e-commerce adoption: E-commerce is growing rapidly in Vietnam, with the market
expected to reach US$30 billion by 2025. This is driving the demand for convenient and secure
online payment methods.
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Government initiatives to promote cashless payments: The Vietnamese government is
committed to promoting cashless payments and is taking steps to make it easier for people to
use digital payment solutions.

The future of online payments in Vietnam is bright. The market is expected to continue to grow
rapidly in the coming years, driven by the factors mentioned above. This will create opportunities
for new players to enter the market and for existing players to expand their offerings.

Here are some of the key trends that are expected to shape the future of online payments in
Vietnam:

The rise of mobile payments: Mobile payments are expected to become increasingly popular in
Vietnam, as more people use their smartphones to make online and offline purchases.

The growth of e-commerce: E-commerce is expected to continue to grow rapidly in Vietnam,

which will further drive the demand for online payment solutions.

The development of new payment technologies: New payment technologies, such as biometrics
and tokenization, are expected to be adopted in Vietnam in the coming years.

The Vietnamese online payment landscape is dynamic and evolving rapidly. Businesses that
want to succeed in this market need to be aware of the latest trends and technologies and be
prepared to adapt their offerings accordingly.

5. Potential risks in EC (Sách 2 từ trang 267) + slide chap 9

Có thể là tham khảo giáo trình trang 411-412
Three key points of vulnerability in e-commerce environment:
- Client
- Server
- Communications pipeline (Internet communications channels)

- Malicious code (trang 416) (malware) – a threat at both client and server level
Malware is a software program that, when spread, is designed to infect, alter, damage, delete, or
replace data or an information system without the owner’s knowledge or consent. Malware is
comprehensive term that describes any malicious pro-gram or software (e.g., a virus is a “subset”
of malware). Malware attacks are the most frequent security breaches. Computer systems
infected by malware take orders from the criminals and do things such as send spam or steal the
user’s stored passwords.
+ Exploits and exploit kits: Exploit kits are collections of exploits bundled together and
rented or sold as a commercial product, often with slick user interfaces and in-depth
analytics functionality. Use of an exploit kit typically does not require much technical skill,
enabling novices to become cybercriminals.
Exploit kits typically target software that is widely deployed, such as Microsoft Windows,
Internet Explorer, Adobe Flash and Reader, and Oracle Java. In 2015 and the first half of
73 74
 2016, the Angler exploit kit, which uses Flash, Java, Microsoft Internet Explorer, and
Microsoft Silverlight vulnerabilities, and which was primarily used to spread ransomware,
was the most prevalent exploit kit.
+ Drive-by downloads: A drive-by download is malware that comes with a downloaded file
that a user intentionally or unintentionally requests. Drive-by is now one of the most
common methods of infecting computers.
Ex: websites as disparate as the New York Times, MSN, Yahoo, and AOL have experi-enced
instances where ads placed on their sites either had malicious code embedded or directed
clickers to malicious sites.
+ Viruses: A virus is a computer program that has the ability to replicate or make copies of
itself, and spread to other files. In addition to the ability to replicate, most computer viruses
deliver a “payload.” The payload may be relatively benign, such as the display of a message
or image, or it may be highly destructive—destroying files, reformatting the computer’s
hard drive, or causing programs to run improperly
+ Worms: Viruses are often combined with a worm. Instead of just spreading from file to file,
a worm is designed to spread from computer to computer. A worm does not necessarily
need to be activated by a user or program in order for it to replicate itself.
● The Slammer worm is one of the most notorious. Slammer targeted a known
vulnerability in Microsoft’s SQL Server database software and infected more
than 90% of vulnerable computers world-wide within 10 minutes of its release
on the Internet; crashed Bank of America cash machines, especially in the
southwestern part of the United States; affected cash registers at
supermarkets such as the Publix chain in Atlanta, where staff could not
dispense cash to frustrated buyers; and took down most Internet connections
in South Korea, causing a dip in the stock market there.
● The Conficker worm, which first appeared in 2008, is the most significant
worm since Slammer, and reportedly infected 11 million computers worldwide
(Microsoft, 2015). Originally designed to establish a global botnet, a massive
industry effort has defeated this effort, but in 2017, Conficker was resurrected
by hackers to aid in infecting computers with WannaCry ransomware,
described below (SCmagazine.com, 2017). It is the most widely detected
malware on the Internet.
+ Ransomware: is a type of malware (often a worm) that locks your computer or files to stop
you from accessing them. Ransomware will often display a notice that says an author-ity
such as the FBI, Department of Justice, or IRS has detected illegal activity on your
com-puter and demands that you pay a fine in order to unlock the computer and avoid
prosecution.
- CryptoLocker.
- CryptoDefense
- Cryptowall.
+ Trojan horses: appears to be benign, but then does something other than expected. The
Trojan horse is not itself a virus because it does not replicate, but is often a way for viruses
or other malicious code such as bots or rootkits (a program whose aim is to subvert control
of the computer’s operating system) to be introduced into a computer system.
75
Ex: One example is Zeus, which steals information by keystroke logging and has infected
over 10 million computers since it first became known in 2007. Other examples in Check
Point’s top 20 malware list for 2016 include Tinba, a Trojan first seen in the wild in 2012 that
sells user credentials via a web injection attack as users attempt to log into their bank
website, and Ramnit, which is designed to steal banking, FTP passwords, session cookies,
and personal data (Checkpoint Research Team, 2017)
+ Backdoor: is a feature of viruses, worms, and Trojans that allows an attacker to remotely
access a compromised computer. Downadup is an example of a worm with a backdoor,
while Virut, a virus that infects various file types, also includes a backdoor that can be used
to download and install additional threats.
+ Bots, botnets:
- Bots (short for robots): are a type of malicious code that can be covertly installed
on your computer when attached to the Internet. Once installed, the bot responds
to external commands sent by the attacker; your computer becomes a “zombie”
and is able to be controlled by an external third party (the “bot-herder”)
- Botnets: are collections of cap-tured computers used for malicious activities such as
sending spam, participating in a DDoS attack, stealing information from computers,
and storing network traffic for later analysis. The number of botnets operating
worldwide is not known but is estimated to be well into the thousands, controlling
millions of computers.
- Bots and bot networks are an important threat to the Internet and e-commerce
because they can be used to launch very large-scale attacks using many different
techniques.
+ Potentially unwanted programs (PUPs): program that installs itself on a computer,
typically without the user’s informed consent
- Browser parasites: (also sometimes referred to as a browser-setting hijacker) is a
program that can monitor and change the settings of a user’s browser.
For instance, changing the browser’s home page, or sending information about the
sites visited to a remote computer. Browser parasites are often a component of
adware
EX: In 2015, Lenovo faced a barrage of criticism when it became known that it had
been shipping its Windows laptops with Superfish adware preinstalled. Superfish
injected its own shopping results into the com-puter’s browser when the user
searched on Google, Amazon, or other websites. In the process, Superfish created a
security risk by enabling others on a Wi-Fi network to silently hijack the browser and
collect anything typed into it.
- Adware: is typically used to call for pop-up ads to display when the user visits
certain sites. It is increasingly being used as a tool by cybercriminals.
- Spyware: a program used to obtain information such as a user’s keystrokes, e-mail,
instant messages, and so on
+ Phishing: is any deceptive, online attempt by a third party to obtain confidential
information for financial gain. Phishing attacks typically do not involve malicious code but
instead rely on straightforward misrepresentation and fraud, so-called “social
engi-neering” techniques.
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 - Social engineering (trang 421): Social engineering relies on human curiosity, greed,
and gullibility in order to trick people into taking an action that will result in the
downloading of malware.
Ex: Kevin Mitnick, until his capture and imprisonment in 1999, was one of America’s
most wanted computer criminals. Mitnick used simple deceptive techniques to
obtain passwords, social security, and police records, all without the use of any
sophisticated technology (Mitnick, 2011).
- E-mail scams (trang 421): The scam begins with an e-mail: a rich former oil minister
of Nigeria is seeking a bank account to stash millions of dollars for a short period of
time, and requests your bank account number where the money can be deposited.
In return, you will receive a million dollars. This type of e-mail scam is popularly
known as a “Nigerian letter” scam.
- Spear phishing (trang 422-423)
- Identity fraud/theft: Any business activity that uses deceitful practices or devices to
deprive another of property or other rights.
+ Hacking (trang 413)
- Hackers vs. crackers: crackers. A hacker describes someone who gains unauthorized
access to a computer system. A cracker (also known as a black hat hacker) is a
malicious hacker with extensive computer experience who may be more damaging.
- Types of hackers: White, black, grey hats
+ white hats: “good” hackers who help organizations locate and fix security
flaws
+ black hats: hackers who act with the intention of causing harm
+ grey hats: hackers who believe they are pursuing some greater good by
breaking in and revealing system flaws
- Hacktivism: adds a political twist. Hacktivists typically attack governments,
organi-zations, and even individuals for political purposes, employing the tactics of
cybervandal-ism, distributed denial of service attacks, data thefts, and doxing
(gathering and exposing personal information of public figures, typically from
emails, social network posts, and other documents).
- Cybervandalism (trang 407): cyberwarfare or cyberwar refers to any action by a
nation, state, or international organization to penetrate another nation’s computer
networks for the purpose of causing damage or disruption. However, broader
definitions claim that cyberwarfare also includes acts of “cyberhooliganism,”
cybervandalism, or cyberterrorism.
+ Disrupting, defacing, destroying Web site. For example, in 2015, hackers attacked the
German Parliament’s computer network (Troinovski 2015).
According to Khanal (2016), the United States and Russia are on the brink of an open cyberwar.
+ Credit card fraud/theft: In the past, the most common cause of credit card fraud was a
lost or stolen card that was used by someone else, followed by employee theft of customer
numbers and stolen identities (criminals applying for credit cards using false identities).
Today, the most fre-quent cause of stolen cards and card information is the systematic
hacking and looting of a corporate server where the information on millions of credit card
purchases is stored. For instance, in 2010, Albert Gonzalez was sentenced to 20 years in
prison for organizing one of the largest thefts of credit card numbers in American history.
77
Along with several Russian co-conspirators, Gonzalez broke into the central computer
systems of TJX, BJ’s, Barnes & Noble, and other companies, stealing over 160 million card
numbers and costing these firms over $200 million in losses (Fox and Botelho, 2013)
+ SPOOFING, PHARMING, AND SPAM (JUNK) WEBSITES:
- Spoofing: involves attempting to hide a true identity by using someone else’s e-mail
or IP address
Ex: a spoofed e-mail will have a forged sender e-mail address designed to mislead
the receiver about who sent the e-mail.
- Pharming: automatically redirecting a web link to an address different from the
intended one, with the site masquerading as the intended destination. Links that
are designed to lead to one site can be reset to send users to a totally unrelated
site—one that benefits the hacker
- Spam (Junk): also referred to as “link farms”; promise to offer products or services,
but in fact are just collections of advertisements.
Ex: you may search for “[name of town] weather,” and then click on a link that
promises your local weather, but then discover that all the site does is display ads for
weather-related products or other websites.
+ Denial of service (DoS) attack and Distributed denial of service (DDoS) attack
- DoS: flooding a website with useless traffic to inundate and overwhelm the network
- DDoS: using numerous computers to attack the target network from numerous
launch points
+ Sniffing and man-in-the-middle attacks:
- Sniffer: is a type of eavesdropping program that monitors information traveling over
a network.
- man-in-the-middle attacks: attack in which the attacker is able to intercept
communications between two parties who believe they are directly
communi-cating with one another, when in fact the attacker is controlling the
communications
+ Insider attacks: Some of the largest disruptions to service, destruc-tion to sites, and
diversion of customer credit data and personal information have come from
insiders—once trusted employees. Employees have access to privileged information, and,
in the presence of sloppy internal security procedures, they are often able to roam
throughout an organization’s systems without leaving a trace.
+ Poorly designed software
+ Social network security issues
+ Mobile platform security issues
+ Cloud security issues
+ Internet of things security issues
6. Legal aspects of EC security (Sách 2, Từ trang 305)
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7. E-contract
Này t tìm thấy e-signature thoi
8. EC security solutions (slide chap 9)
- Protecting Internet communications
+ Cryptography
+ Encryption
- Securing channels of communication
+ SSL, TLS, VPNs, Wi-Fi
- Protecting networks
+ Firewalls, proxy servers, IDS, IPS
- Protecting servers and clients
+ OS security, anti-virus
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CHAPTER 10. DIGITAL MARKETING
1. Overview (Slide Chap 10 - page 3,4)
- Internet marketing is the use of the Internet, mobile devices, social media, search engines,
and other channels to reach consumers.
- Why do we need an internet marketing strategy?
● It provides a consistent direction for online marketing activities
● It means analysis of the external environment, internal resources and capabilities will take
place
● Following it will help the company achieve competitive advantage
● The company can achieve its hierarchy of objectives
● Gives a focus to choice of target markets, positioning and the use of the marketing mix
● It helps us to understand which strategies and tactics should not be pursued
● Tells us how resources will be deployed and how the organization will be structured to
achieve the strategy.
2. Online marketing research and segmentation
2.1. Online marketing research and techniques (Book 1 - 371)
- To conduct online marketing, it is necessary to know what the customer wants or needs. Such
information can be collected by:
+ Soliciting information from customers online (e.g., via interviews, questionnaires, use of
focus groups, or blogging)
+ Observing what customers are doing on the Web by using transaction logs and cookies
+ Using data, text, and Web mining or collaborative filtering techniques to analyze the
available data
- Data Collection and Analysis: Specific methods for collecting online data include e-mail
communication with individual customers, questionnaires placed on websites, monitoring
conversations in social networks, and tracking customers’ movements on the Web.
- Online Surveys: An online survey is a major method for collecting EC data, and it is considered
the most cost-effective mode of survey research. It has several other advantages, including lower
overall preparation and administration costs, better control of the process of filling out the
questionnaire (which may lead to fewer response errors, and easier follow-up), and more flexibility
in the questionnaire design. In addition, the cycle time can be much shorter. However, online
surveys also have some limitations, including the lack of anonymity, data errors due to
nonresponses, reporting biases, and poor data privacy.
- Web-Based Surveys: A special type of online survey is done by placing questions on selected
websites and inviting potential consumers to reply.
-> For example, General Mills used a Web-based survey to help understand how consumers use
Chex cereal. Web surveys may be passive (a fill-in questionnaire) or interactive (respondents
download the questionnaires, add comments, ask questions, and discuss issues). The surveys
may include both approaches.
- Online Focus Groups: Several research firms create panels of qualified Web visitors to
participate in online focus groups.
-> For example, see NPD Group, Inc. This panel consists of 2 million consumers recruited online
and verified by telephone to provide information for NPD’s consumer tracking services. The use of
preselected focus group participants helps to overcome some of the research limitations (e.g.,
80
small sample size and partial responses) that sometimes limit the effectiveness of Web-based
surveys.
- Hearing Directly from Customers: Instead of using focus groups, a company may ask
customers directly what they think about a product or service. Companies can use chat rooms,
social network discussion groups, blogs, wikis, podcasts, and electronic consumer forums to
interact with consumers.
-> For example, toymaker LEGO used a market research company to establish a direct survey on
an electronic bulletin board where millions of visitors read each other’s comments and share
opinions about LEGO toys. The researchers analyzed the responses daily and submitted the
information to LEGO.
+ Netflix is using this approach extensively by encourag- ing customers to report their likes
and dislikes. Software tools can facilitate obtaining input directly from customers.
-> For example, see millwardbrowndigital.com, a leading provider of media analytics and
marketing solutions.
- Data Collection in Social Networks and Other Web 2.0 Environments: Collecting data in
social networks and Web 2.0 environments provides new and exciting opportunities. Here are
some methods: Polling, Blogging, Chatting, Tweeting, Live chat, Chatterbots, Collective wisdom
(intelligence), Find expertise, Folksonomy, Data in videos, photos, and other rich media,
Discussion forums.
-> Example: Xiaomi’s Data Collection from Social Media in China. Xiaomi, Inc. (mi.com/en) is a
Chinese company that designs and sells smartphones and consumer electronics. It sold 18.7
million smartphones in 2013, only three years after its launch. A key to its success story is the
effective use of social media as a marketing research tool. Xiaomi engages fans on social media
sites. For example, the company organized a flash sale in 2014, using social media to notify their
fans about their upcoming sale. According to the company’s global director of marketing, social
media is very important to Xiaomi, as it is the most direct and effective way to interact with its
fans. The company analyzed user contributions on the Xiaomi website to design a user interface
called MIUI. Xiaomi’s success story shows the importance of market research on social media. By
November 2014, the Millet Forum (bbs.xiaomi.cn) had more than 221 million posts from its 30
million members.
- Observing Customers’ Movements Online: To avoid some of the problems of online surveys,
especially the reporting bias that occurs when people give false or biased information, some
marketers choose to learn about customers by observing their behavior rather than by asking
them questions. Keeping track of consumer’s online behavior can be done by using transaction
logs (log files) or cookie files. This allows activity-based filtering to be done.
+ Transaction Logs: (for Web applications) is a user file that records the user’s activities on a
company’s website from the computer log. A transaction log can be further analyzed with
log file analysis tools (e.g., from Oracle) to get a good idea about online visitors’ activities,
such as how often they visit the site.
+ Cookies and Web Bugs: can be used to supplement transaction log methods. Cookies
allow a website to store data on the user’s personal device. When the customer returns to
a site visited previously, the website can find what the customer did in the past from the
cookie. The customer can be greeted by their name, or a targeted ad can be sent to them.
Cookies are frequently combined with Web bugs that are tiny (usually invisible) objects
concealed in a Web page or in e-mail messages. Web bugs transmit information about the
81
user and his or her movements to a monitoring site (e.g., to find out if the user has viewed
certain content on the Web page). Many believe that cookies and Web bugs are an
invasion of a user’s privacy.
+ Spyware: is software that enters your computer like a virus does, without your knowledge.
It then enables an outsider to gather information about your browsing habits. Originally
designed to allow freeware authors to make money on their products, spyware
applications are typically bundled together with freeware that is downloaded onto users’
computers. Many users do not realize that they are downloading spyware with the
freeware. The best defense against spyware is to install antivirus software, which should
detect and remove any viruses or other harmful intrusions.
+ Web Analytics and Mining: Web analytics deal with the monitoring, collecting,
measuring and evaluating, and reporting tasks related to Internet data and activities (e.g.,
see Kahn 2015 and Batrinca and Treleaven 2014). Web analytics help us understand and
optimize Web usage. Such analysis is done, for example, by retailers for market research.
-> For example, see IBM Coremetrics. A company can also use Web analytics software to
improve its website’s look and operation. Web analytics can provide quick feedback from
customers to help marketers decide which products to promote.
+ Clickstream Analysis: Clickstream data are data that describe which websites users visit,
in what order, and the time spent on each. This is done by tracking the succession of
“clicks” each visitor makes. Clickstream analysis is a widely used component of overall web-
site and e-commerce system analysis. It provides a detailed set of information about user
activities online, specifically how they respond to a website or e-commerce store. By
evaluating this data, site owners can get a better picture of their users’ aggregate interest
and activity patterns. These patterns can help influence a variety of areas including website
design, e-com- merce system design, and product/recommended product placement.
-> For example, Analytics 10 from Webtrends, Inc. features several advanced tools for
analyzing clickstream data. Finally, clickstreamr.com configures Google Analytics
standards and can be used for such analysis.
+ Web Mining: refers to the use of data mining techniques for both Web content and usage
in Web documents in order to dis- cover patterns and hidden relationships. Web mining
has the potential to change the way we access and use the information available on the
Web.
2.2. Market segmentation (Slide chap 5 - page 13, sau consumer touch point)
- Online customer segmentation:
● Types of customers:
➢ Impulsive customers: make purchases very quickly
➢ Customers are patient: buy products after comparison
➢ Customer analysis: research very carefully and thoroughly before deciding intend to
purchase a product or service
● Types of customers (divided by motivation and spending behavior):
➢ Customers save time: willing to accept high prices, or spend additional fees to save
time when purchasing
➢ Customers do not like to buy products in the traditional way
➢ Customers prefer high technology
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 ➢ Customers only use the Internet to find product and operational information
traditional shopping
➢ Shoppers: like to compare prices & find goods to buy and sell there's a bargain
➢ Customers are loyal to the brand
➢ Customers shop online, pay online, communicate, play games, watch news...
- Market Segments:
Demographic Geographic Behavioral Psychographic

Age Location Loyalty level Personality

Gender Climate Readiness stage Values
Occupation Weather Purchase frequency Beliefs
Education Population density Purchase occasion Interests
Income Buyer status Lifestyles
Marital status Hobbies
Religion
Ethnicity

3. Online marketing strategies

3.1. Pricing Strategies (Slide Chap 10 - page 47)
No Intermediation – Re - intermediation
- Pricing:
3.3. Promoting Strategies
+ Integral part of marketing strategy
- Some Ad Terminology (Slide Chap 10 - page 49): Click-through ratio (CTR), Impression (CPM),
+ Traditionally pricing based on: Fixed cost, Variable costs, Demand curve
Conversion rate, CPC (Cost per click), CPA (Cost per action; ex of fill the registration form), CPO
- Price discrimination: Selling products to different people and groups based on willingness to
(Cost per order), Doanh thu (CPS)
pay.
- The Advertising Cycle (Book 1 - page 376): The cyclical process requires a plan to determine the
- Dynamic pricing (Book 1 - page 55):
target audience of a campaign and how to reach that audience. Analyzing a campaign after its
+ Refers to prices that are not fixed, but are allowed to fluctuate, and are determined by
completion assists a company in understanding the campaign’s success or failure. This
supply and demand. In contrast, catalog prices are fixed, as are prices in department
knowledge is then used for planning future campaigns.
stores, supermarkets, and most webstores.
+ Dynamic pricing appears in several forms. Perhaps the oldest forms are negotiation and
bargaining, which have been practiced for many generations in open-air markets. The
most popular today are the online auctions.
+ Yield management: Amazon
+ Surge pricing: Uber
+ Flash marketing: Rue La La, HauteLook, Gilt Groupe
3.2. Placing Strategies (Slide Chap 10 - page 43)

- Web Advertising (Book 1 - page 375): Advertising is the delivery of ads to Internet users in order
to influence people to buy a product or a service. Traditional advertising (also known as
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marketing communication) is an impersonal, one-way mass communication. Telemarketing and
direct mail ads attempted to overcome the deficiencies of mass advertising, but they were
expensive and their response rate was not too high.
-> For example, a direct mail campaign costs about $1 per person and has a response rate of only
1% to 3%. This makes the cost per responding person in the range of $20 (for a 5% response) to
$100 for 1% response. Such an expense can be justified only for high-ticket items (e.g., cars).
- Basic Internet Advertising Terminology (Book 1 - page 376/ Slide Chap 10 - page 52):
+ Ad views: The number of times users call up a page that has a banner on it during a
specific period; known as impressions or page views.
+ Button: A small banner that is linked to a website; may contain downloadable software.
+ Page: An HTML (Hypertext Markup Language) document that may contain text, images,
and other online elements, such as Java applets and multimedia files; may be generated
statically or dynamically.
+ Click (ad click): A count made each time a visitor clicks on an advertising banner to access
the advertiser’s website.
+ CPM (cost per mille, i.e., thousand impressions): The fee an advertiser pays for each 1,000
times a page with a banner ad is shown.
+ Hit: A request for data from a Web page or file.
● A request for data from a Web page or file
● CPC (Cost per click)
● CPA (Cost per action; ex of fill the registration form)
● CPO (Cost per order)
● Doanh thu (CPS)
+ Conversion rate: The percentage of clickers who actually make a purchase.
+ Landing page: The page a viewer is directed to after having clicked on a link. In online
marketing, this page is used to convert the person from a viewer to a buyer.
+ Click-through rate/ratio (CTR): The percentage of visitors who are exposed to a banner ad
and click on it.
+ Visit: A series of requests during one navigation of a website; a pause of a certain length of
time ends a visit.
+ Unique visit: A count of the number of visitors entering a site, regardless of how many
pages are viewed per visit.
+ Stickiness: Characteristics that influence the average length of time a visitor stays in a site.
- Advertising Online and Its Advantages (Book 1 - page 377/ Slide Chap 10 - page 55):
+ Cost: Online ads usually are cheaper than ads in traditional media.
+ Media richness: Web ads can include rich and diversified media (e.g., videos, animation). In
addition, ads can be combined with games and entertainment.
+ Easy updating: Updating can be done quickly and inexpensively.
+ Personalization. Web ads can be either one-to-one or addressed to population segments.
+ Location-based: Using wireless technology and GPS, Web advertising can be location
based.
+ Linking to shopping: It is easy to link from an online ad to a vendor’s webstore. Usually, it
can be done in one click.
- Traditional Versus Online Advertising (Book 1 - page 377):
+ Each advertising medium, including the Internet, has its advantages and limitations.
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+ The synergy between TV and online advertising can help attract more attention than
either medium on its own. It has been found that a TV campaign increases brand
awareness by 27%, whereas a combined TV and online campaign increases it by 45%. A TV
campaign increases intent to purchase by 2%, whereas a combined TV and online
campaign increases it by 12%.
+ The impact of Internet ads on newspaper viability is devastating. Many newspapers are
disappearing, merging, or losing money. One solution is to increase their digital ads, as the
New York Times is doing.
+ Internet ads are subject to limitations such as screen size, space, and policies.
- Online Advertising Methods (Book 1 - page 377/ Slide Chap 10 - page 56):
+ Major Categories of Ads: Ads can be classified into three major categories: classified,
display, and interactive.
● Classified Ads: These ads usually use text, but lately may include photos. The ads are
grouped according to classification (e.g., cars, rentals). They are the least expensive.
Classified ads can be found on special sites (e.g., see classified ads at craigslist.org
and backpage.com), as well as on online newspapers, e-markets, and portals. In
many cases, posting regular-size classified ads is free, but placing them in a larger
size, in color, or with some other noticeable features is done for a fee.
● Display Ads: These are illustrated advertisements that use graphics, logos, colors, or
special designs. These ads are usually not classified, but they can be combined.
Display ads are popular offline in billboards, yellow pages, and movies. They are
becoming very popular on the Internet as well. All major search-based advertising
companies (e.g., Google, Yahoo!, Microsoft) are leverag- ing their online positions in
search advertising into the display ad business.
● Interactive Ads: These ads use online or offline interactive media to interact with
consumers and to promote products, brands, and services. This is most commonly
performed through the Internet, often using video as a delivery medium. There are
several variations in each of these categories. The major methods are presented
next.
- Banners (Book 1 - page 378/ Slide Chap 10 - page 56): A banner is a display that is used for
advertising on a Web page (words, logos, etc. embedded in the page). A banner ad is frequently
linked to an advertiser’s Web page. When users “click” on the banner, they are transferred to the
advertiser’s site. A banner must be designed to catch a consumer’s attention. Banners often
include images and sometimes video clips and sound. Banner advertising, including pop-up
banners, is a popular advertising method on the Web.
+ Random banners: appear randomly, not as a result of some action by the user. Companies
that want to introduce their new products (e.g., a new movie or CD) or promote their brand
using random banners.
+ Static banners: stay on a Web page regularly.
+ Pop-up banners: appear in a separate window when its affiliated Web page is activated.
+ Live banners: are ads where the content can be created or modified at the time the ads
pop up instead of being prepro- grammed like banner ads. They usually are rich media.
+ Keyword banners: Banner ads that appear when a predetermined word is queried from a
search engine.
- Online Advertising Methods (Slide Chap 10 - page 57):
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+ Pop-up ad: An ad that appears in a separate window before, after, or during Internet
surfing or when reading email
+ Pop-under ad: An ad that appears underneath the current browser window, so when the
user closes the active window the ad is still on the screen
+ Email marketing: refers to the use of e-mails for sending commercial messages to users.
Email marketing may occur in different formats and for different purposes. Typical email
marketing formats are:
● Using e-mail advertising means that ads are attached to emails
● Sending e-mail messages for facilitating vendor-customer relationships (CRM types)
● Sending e-mail messages for attempting to acquire new customers
● Sending messages via microblogs or other social media platforms
+ Email advertising: Adding advertisements to e-mail messages sent to customers
● The Major Advantages and Limitations of E-Mail Advertisement
● Implementing E-Mail Advertising
+ Search advertising: A method of placing online advertisements on Web pages that show
results from search engine queries
● URL Listing
+ Advergaming: The practice of using computer games to advertise a product, an
● Keyword Advertising
organization, or a viewpoint.
● Search engine optimization (SEO): The craft of increasing site rank on search
+ Augmented reality (AR): A live direct or indirect view of a physical, real-world environment
engines; the optimizer uses the ranking algorithm of the search engine (which may
whose elements are augmented by computer-generated sensory input, such as sound or
be different for different search engines) and best search phrases, and tailors the ad
graphics.
accordingly.
+ Advertising in Chat Rooms and Forums: Chat rooms can be used for advertising. For
+ Video Advertising: Consumer-Generated Videos: Many companies are utilizing
example, Mattel Corp. sells about one-third of its Barbie dolls to collectors. These collectors
user-generated videos for their online ads and even for their TV commercials. YouTube is
use chat rooms to make comments or ask questions that are subsequently answered by
the largest advertising platform for video ads. It has billions of videos and is growing
Mattel’s staff. The Xiaomi case in this chapter runs a smartphone forum for its product
rapidly. YouTube permits selected marketers to upload videos with ads to the site. Google’s
design and advertising. Advertisers sometimes use online fantasy sports (e.g., available at
AdSense ad distribution network also offers supported video clips. Another way for
Yahoo!, ESPN, and more) to send ads to specific sports fans (e.g., fans of the National
advertisers to use viral video is by creating contests.
Football League or Major League Baseball). Online fantasy sports attract millions of visitors
+ Interactive Videos:
every month.
● Video Click-Throughs: VideoClix.tv and Clickthrough.com have developed tools that
+ Mobile marketing: is frequently defined as the use of mobile devices and wireless
allow people who watch videos to click on any person, place, banner ad, and so forth
infrastructure as a means of marketing and advertising. The marketer intends to access
in the video.
potential customers through wireless information channels.
● Live Interactive Videos: In live interactive videos, you can see certain events in real
● The Mobile Marketing Association (mmaglobal.com) provides definitions of
time and sometimes interact with those in the video. For example, GE presented the
advertising, apps, messaging, m-commerce, and CRM on all mobile devices,
company’s annual report in a banner ad during a live Webcast of its annual
including smartphones and tablets.
meeting. Viewers were able to interact with the presenters, asking questions or
● Mobile marketing includes sales, market research, customer service, and
making comments.
advertising, all supported by mobile computing. Companies can devise contests
● Viral Videos: A viral video is a video that is spread rapidly through the process of
where customers describe the quality of a new product, and the sellers can post
online information sharing. These videos become popu- lar when they are circulated
coupons and promotions. You can make ads interactive since mobile computing
via email, SMSs, blogs, discussion forums, and so forth. This way, people share videos
provides a direct link between vendors and consumers.
that receive more attention, sometimes drawing millions of viewers in a short time.
+ Mobile advertising (m-advertising): is defined by the IAB (2016) as “Advertising tailored to
Popular sites that are used for sharing viral videos include YouTube and Vimeo.
and delivered through wireless mobile devices such as smartphones (e.g. Blackberry,
iPhone, Android, etc.), feature phones (e.g. lower-end mobile phones capable of accessing
mobile content), and media tablets (e.g. iPad, Samsung Galaxy Tablet, etc.).” Mobile
advertising ranges from simple text messaging to intelligent interactive messaging on
87 88
 mobile devices. It involves several key players, such as the advertisers, mobile ad networks, banner to read it, and after he or she passes some tests to assure they read the content,
mobile apps, and mobile devices. the customer is paid for the effort. Readers can sort and choose what they read, and the
● Mobile Interactive Advertising advertisers can vary the payments to reflect the frequency and enthusiasm of the readers.
● Types of Mobile Ads Payments may be cash, credit, or product discounts. This method is used with
● Viral Mobile Marketing smartphones, too.
● Mobile Marketing and Advertising Campaigns (Fig ở Book 1 - P393)
● Representative Examples of Mobile Advertising
(Fig ở Book 1 - P388)

- Web Analytics (Slide Chap 10 - page 68):

- Advertising Strategies and Promotions (Book 1 - page 391/ Slide Chap 10 - page 65): + Software that analyzes data at each stage of the customer conversion process:
+ Spamming: Using e-mail to send unwanted ads (sometimes floods of ads) ● Awareness
+ Permission Advertising: One solution to the flood of ads that people receive via email that ● Engagement
is used by advertisers is permission advertising or per- mission marketing (or the opt-in ● Interaction
approach), in which users register with vendors and agree to accept advertisements. ● Purchase
+ Affiliate marketing: is a type of “performance-based-marketing” used mainly as a revenue ● Loyalty and post-purchase
source for the referring organization and as a marketing tool for the sellers. Earlier in this + Helps managers
chapter, we introduced Google’s AdSense. This is an example of affiliate marketing. ● Optimize ROI on Website and marketing efforts
However, the fact that the vendor’s logo is placed on many other websites is free ● Build detailed customer profiles
advertising as well. ● Measure impact of marketing campaigns
-> For example, consider Amazon.com, whose logo can be seen on more than 1 million + Google Analytics, Adobe Analytics, IBM Digital Analytics, Webtrends
affiliate sites! Moreover, CDNow (a subsidiary of Amazon.com) and Amazon.com both are
pioneers in the “get paid to view” or “listen to” commercials also used in affiliate marketing.
+ Affiliate Networks: A key to successful affiliate advertising is to have a good affiliate partner
network. An affiliate network is a network created as a marketplace where publishers
(affiliates) and merchants (affiliate programs) can collaborate. Examples of affiliate net-
works are: Rakuten LinkShare (linkshare.com) and CJ Affiliate by Conversant (cj.com).
+ Ads as a Commodity: Paying People to Watch Ads: In some cases, people are paid by
advertisers (money or discounts) to view ads (also called “ads as a commodity”). This
approach is used, for example, at Bing Rewards (get rewards for watching videos, playing
games) at CreationsRewards search- ing the Web with Bing, and others. The HitBliss app
pays you to watch commercials (but you must pay attention!). Each banner is labeled with
the amount to be paid if the consumer reads the ad. If interested, the consumer clicks the

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 Commerce and Sales
● Retail, Proximity & IOT
● Affiliate Marketing &
Management
● Sales Automation
Enablement &
Intelligence
● eCommerce Platforms
& Carts
● eCommerce
Marketing
● Channel Partner &
Local Marketing
Data Management
● Marketing Analytics ● Agile & Lean Management
Performance & Attribution ● Collaboration
● Audience/Marketing Data & ● Talent Management
Data Enhancement ● Budgeting & Finance
● Ipaas Cloud/Data Integration ● Projects & Workflow
& Tag Management ● Product Management
● Business/Customer ● Vendor Analysis &
Intelligence & Data Science Management
● DMP
● Dashboards & Data
Visualization
● Governance Compliance
And Privacy
● Mobile & Web Analytics
● Customer Data Platform

Online Purchasing Process 4.1. Martech international

3.4. Product Strategies
Chỗ này ko thấy, xin cả lò cíu giúp 4.2. Martech Vietnam ( Slide Chap 10 - page 83)
4. Chief marketing technologies - MarTech today is deployed to collect data, develop target audiences, communicate with
4.0. About Martech (Copy từ bên đề Nguyễn Thảo gửi) customers, plan and distribute content, identify and prioritize leads, track brand reputation, track
- MarTech refers to software used by marketers to optimize their marketing efforts and revenue and engagement with campaigns across every medium and channel.. including
achieve their goals. This software leverages technology to plan, execute, and measure traditional marketing channels.
various marketing campaigns and strategies. Essentially, these tools can make the work of - E-commerce platforms in Vietnam have applied MarTech technologies to Ecommerce very well,
marketers more efficient. A group of marketing technologies is known as the MarTech such as using data to personalize the search experience, recommending products that accurately
stack – we'll delve into this part later. These tools are commonly used to streamline relate to user intentions, or using chatbots to answer customer questions instead of customer
marketing processes in a multi-touch, multi-channel environment. service, saving personnel costs.
+ Using data analysis to automate accurate and scientifically organized product
Các nhóm công nghệ Martech recommendations for each specific search need.
+ Applying automatic communication technology in E-commerce.
- MarTech's impact on businesses:
Advertising and Promotion Content and Experience Social and Relationships
+ Automate and effectively optimize Marketing campaigns: Marketing in the 4.0 era has
● Display & ● Content Marketing ● ABM
shifted from Branding to Performance Marketing. MarTech technology has launched many
Programmatic ● CMS & Web Experience ● Call Analytics &
Advertising: Adobe, Management Management platforms/tools to help businesses automate and optimize Internet Marketing
Microsoft, Wordpress,.. ● DAM & MRM & PIM ● Customer Experience effectiveness: Livestream, Affiliate, CRM, chatbot
● Mobile Marketing: ● Email Marketing Service & Success + Improve and increase user experience: MarTech helps Marketers analyze, evaluate
Apple, Velti,.. ● Interactive Content ● Influencers customer behavior and gain detailed insights, to promptly provide solutions. For example,
● Native/Content ● Marketing Automation & ● CRM based on shopping behavior statistics, e-commerce platforms will choose to combine with
Advertising Campaign/Lead ● Advocacy Loyalty &
e-Wallets to make payment easier.
● PR Management Referrals
● Print ● Mobile Apps ● Community & Reviews + Reduce dependence on advertising channels: the appearance of many channels such as
● Search & Social ● Optimization ● Events, Meetings & Social Media, e-commerce platforms, websites, apps,... helps businesses proactively create
Advertising: Twitter, Personalization & Testing Webinars many touch points with customers, increasing High conversion rate in each campaign.
Facebook,... ● SEO ● Social Media Marketing &
● Video Advertising ● Video Marketing Monitoring
● Live Chat & Chatbots

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