CHAPTER 1:

INTRODUCTION TO E-COMMERCE

LECTURE: 02
COURSE COACH: MASNOON
SALEHIN COURSE: E-BUSINESS
LECTURER, DEPARTMENT OF COURSE CODE: MGT 403
MANAGEMENT, FBS, UNIVERSITY OF
DHAKA
WHAT IS E-COMMERCE?

◼ Use of Internet, Web and mobile apps and browsers running on mobile devices to
transact business

◼ More formally digitally enabled commercial transactions between and among

organizations and individuals

◼ E-Commerce involves much more than electronically mediated financial transactions

◼ Non financial transactions such as customer requests for further information would
also be considered to be part of E-commerce
WHAT IS E-COMMERCE? (CONTD.)

◼ Kalakota & Whinston (1997) refer to a range of different perspectives for E-Commerce

o A Communication Perspective- the delivery of information, products or services or payment

by electronic means

o A Business Perspective- the application of technology towards the automation of business

transactions & workflows

o A Service Perspective- enabling cost cutting at the same time as increasing the speed and
quality of service delivery

o An Online Perspective- the buying and selling of products and information online
WHAT IS E-BUSINESS?

◼ Digital enabling of transactions and processes within a firm, involving information

systems under firm’s control

◼ Does not include commercial transactions involving an exchange of value across

organizational boundaries

◼ Example- BS
TECHNOLOGICAL BUILDING BLOCKS UNDERLYING E-COMMERCE

BS
UNIQUE FEATURES OF E-COMMERCE TECHNOLOGY

UBIQUITY GLOBAL REACH UNIVERSAL RICHNESS

STANDARDS

• Available everywhere, at • Commercial transactions
all times to cross cultural, regional
and national boundaries
• From Marketplace to
Marketspace • Reach- the total number
of users or customers an
• Example- e-commerce business can
obtain
• Standards that are shared
by all nations around the
world
• Example-
• The complexity &
content of a message
• Trade-off between
Richness and Reach
• Example-

• Example-
UNIQUE FEATURES OF E-COMMERCE TECHNOLOGY (CONTD.)
INTERACTIVITY INFORMATION PERSONALIZTION & SOCIAL
DENSITY CUSTOMIZATION TECHNOLOGY- USER
GENERATED CONTENT
& SOCIAL NETWORK

• Two-way communication • Total amount of quality • The targeting of • Allow users to create and
between merchant & information available to marketing messages to share content with a
consumers all market participants. specific individuals by worldwide community
adjusting the messages to
• Example • Price & cost person’s name, interests • Example-
transparency, price & past purchases
discrimination
• Changing the delivered
• Example- product or service based
on user’s preference or
prior behavior
• Example-
TYPES OF E-COMMERCE

May be classified by market relationship or technology

◼ Business-to-Consumer (B2C)

◼ Business-to-Business (B2B)

◼ Consumer-to-Consumer (C2C)

◼ Social e-commerce

◼ Mobile e-commerce (M-commerce)

◼ Local e-commerce