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C o M M e R C E: Chapter 12: Consumer Trade Transactions
C o M M e R C E: Chapter 12: Consumer Trade Transactions
c
o
m
m
e
r
electronic
commerce
c strategy
technologies
e
and
applications
m
lies the simple, seductive offering - what you want,
when you want it. You want to buy an obscure
r
electronic
commerce
c strategy
technologies
e
and
applications
m
The server holding the e-Commerce application;
Links from the Internet application to back office
m systems.
e Internet
r
electronic Browser
commerce Internet Application
Client Server
c strategy
technologies
e
and
applications Back Office
Systems
E-Commerce ©David Whiteley/McGraw-Hill, 2000 3
The e-Shop
e
c An example of a simple e-Shop, set up by Charlie
Bucket (and with apologies to Roald Dahl).
o
m WonkA Onl ine
m
Order
Fudgemallow Delight
r
electronic
commerce
c
Name Credit Card
strategy
technologies A ddress No.
e
and Expiry
applications
o
An e-Shop – providing online purchasing
(as provided by Wonka Online)
Additional features may include:
m Customer Registration
Dynamic Web Pages
e Additional Information
Community
r
electronic Multiple Payment Options
commerce
Encryption
e
and Online Help
applications
Shopping Mall
o Search Pre-Sale
m Order
m Payment
Execution /
Settlement
e Deliver
r
electronic
commerce
After Sales After Sales
c strategy
technologies
e
and
applications
c Search options:
m
Using a search engine
r
electronic
commerce Using the url – a known url or a bookmark.
c strategy
technologies
e
and
applications
c Order:
Helping the customer to find things:
o • Departments/categories
• A site search engine
m
m
Displaying the goods:
• Picture
e • Description
• VR Images
r
electronic
commerce • Sound
c strategy
technologies Selecting the goods:
e
and
applications • Electronic shopping basket.
c Payment:
o Credit Card
m
or
e-Cash
m Debit Card
Offline payment
e
r
electronic
commerce
Security of payment (see Chapter 15).
c strategy
technologies
e
and
applications
c Delivery:
For conventional shopping, the delivery function
m Delivery issues:
• Cost
m • Security
r
electronic
commerce Delivery methods:
• Post (through postbox)
c strategy
technologies • Doorstep (may require customer to be
present)
e
and
applications
• Online.
E-Commerce ©David Whiteley/McGraw-Hill, 2000 10
e Internet Shopping and the Trade Cycle
c After-Sales:
m
don’t fit/won’t work can be taken back.
c strategy
technologies
e
and
applications
e
Free Minitel terminals
Over six million subscribers (1993)
r
electronic
commerce
Used by 14 million people
• Online Telephone Directory
c strategy
technologies
• Banking Services
• Travel (Information and Reservations)
e
and
applications
• Catalogue Sales.
E-Commerce ©David Whiteley/McGraw-Hill, 2000 12
e Other e-Commerce Technologies (2)
m Projected developments:
e
Interactive TV
(cable TV/Internet combinations)
r
electronic (satellite TV/telephone combinations)
commerce
c strategy
technologies
Mobile e-Commerce
(mobile phone/laptop combinations)
e
and
applications
(mobile phone e-Commerce)
E-Commerce ©David Whiteley/McGraw-Hill, 2000 13
e-Commerce Sales
e
c Dramatic / rapid expansion but still a small
proportion of overall retail sales.
o
m
KPMG (1999) gives direct sales as 5% of retail
sales in the UK and 4% in the US; 16% of US home
e
and
applications (US, not UK, definitions of billion and trillion)
o Home Shopping
m
e
The Latest Thing at Bargain Prices
r
electronic
commerce Home Delivery
c strategy
technologies Online Sales Support
e
and
applications
m Delivery
m
e
Inspecting Goods
r
electronic
commerce Social Interaction
c strategy
technologies Return of Goods
e
and
applications
m Reduced costs
e
Privacy and Security
Delivery
r
electronic
commerce Price transparency
c strategy
technologies … and for most e-Shops
e
and
applications – an inability to make a profit
c BARKER pENS
o
m
Site Index Earnest Barker started making
fountain pens in the English Lake
District over a hundred years ago in
♦The Barker 1894.
m
Story Today you can buy your Barker
Pen via the Internet. Business
methods change but be assured that
♦Boxed Pen Sets the care and craftsmanship that goes
♦The Elite Range into making a Barker Pen is still the
r
electronic ♦Payment Policy contract or a letter to a loved one,
commerce ♦The Barker when only paper, ink and a Barker
Guarantee Pen will do.
c
Geoffrey Barker
strategy
technologies
e
and
applications Read and discuss the case study.
o
look like. Use your favourite search engine to find two
or three online bookshops. Use the search facility but
also check out any adverts or menu items that click
m through to an online bookstore. Look up this book and
any other course books and compare prices, delivery
m times and shipping charges. After you have looked up
the book, jot down three reasons why you might buy
r
electronic
commerce If you did buy this book from an online bookshop then
well done; you can still write down three reasons for
c strategy
technologies
and three against using an online bookstore.
e
and
applications