Retailing in Electronic Commerce

RetailinginElectronicCommerce:ProductsandServicesCopyright©2010PearsonEducation,Inc.PublishingasPrenticeHall1.Describeelectronicretailing(e-tailing)anditscharacteristics.2.Defineanddescribetheprimarye-tailingbusinessmodels.3.Describehowonlinetravelandtourismservicesoperateandtheirimpactontheindustry.4.Discusstheonlineemploymentmarket,includingitsparticipants,benefits,andlimitations.5.Describeonlinerealestateservices.6.Discussonlinestock-tradingservices.3-1Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall7.Discusscyberbankingandonlinepersonalfinance.8.Describeon-demanddeliveryofgroceriesandsimilarproducts/services.9.Describethedeliveryofdigitalproductsandonlineentertainment.10.Discussvariousonlineconsumeraids,includingcomparison-shoppingaids.11.DescribedisintermediationandotherB2Cstrategicissues.3-2Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall•OVERVIEWOFELECTRONICRETAILING–electronicretailing(e-tailing)Retailingconductedonline,overtheInternet–e-tailersRetailerswhosellovertheInternet•SIZEANDGROWTHOFTHEB2CMARKET•WHATSELLSWELLONTHEINTERNET•CHARACTERISTICSANDADVANTAGESOFSUCCESSFULE-TAILING3-3Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall•Travel•Computerhardwareandsoftware•Consumerelectronics•Officesupplies•Sportandfitnessgoods•Booksandmusic•Toysandhobbies•Healthandbeauty•Entertainment•Apparelandclothing•Jewelry•Cars•Services•Foodanddrugs•Petsupplies•OthersWHATSELLSWELLONTHEINTERNET4Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall•CLASSIFICATIONBYDISTRIBUTIONCHANNEL1.Directmarketingbymail-orderretailersthatgoonline2.Directmarketingbymanufacturers3.Pure-playe-tailers4.Click-and-mortarretailers5.Internet(online)malls3-5Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall3-6Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall•DirectMarketingbyMail-OrderCompanies–directmarketingBroadly,marketingthattakesplacewithoutintermediariesbetweenmanufacturersandbuyers;inthecontextofthisbook,marketingdoneonlinebetweenanysellerandbuyer•DirectSalesbyManufacturers3-7Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall•Pure-PlayE-Tailers–virtual(pure-play)e-tailersFirmsthatselldirectlytoconsumersovertheInternetwithoutmaintainingaphysicalsaleschannel3-8Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall•click-and-mortarretailersBrick-and-mortarretailersthatofferatransactionalWebsitefromwhichtoconductbusiness•brick-and-mortarretailersRetailerswhodobusinessinthenon-Internet,physicalworldintraditionalbrick-and-mortarstores•multichannelbusinessmodelAbusinessmodelwhereacompanysellsinmultiplemarketingchannelssimultaneously(e.g.,bothphysicalandonlinestores)3-9Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall•OTHERB2CMODELSANDSPECIALRETAILING–Transactionbrokers–Informationportals–Communityportalandsocialnetworks–Contentcreatorsordisseminators–Viralmarketing–Marketmakers–Make(build)-to-order–B2B2C–Serviceproviders•B2CINSOCIALNETWORKS3-10Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall•Onlinetravelbookingsandassociatedtravelservicesareoneofthemostsuccessfule-commerceimplementations•SPECIALSERVICESONLINE–Wirelessservices–Directmarketing–Alliancesandconsortia–Travel-OrientedSocialNetworks3-11Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall•BENEFITSANDLIMITATIONSOFONLINETRAVELSERVICES–Benefits•Theamountoffreeinformationistremendous•Informationisaccessibleatanytimefromanyplace•Substantialdiscounts–Limitations•ManypeopledonotusetheInternet•Theamountoftimeandthedifficultyofusingvirtualtravelagenciescanbesignificant•Complextripsorthosethatrequirestopoversmightnotbeavailableonline3-12Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall•IMPACTOFECONTHETRAVELINDUSTRY–DirectimpactsbecausecustomersincreasinglyusingtheInternettomakebookings–Indirectimpactsbecauseairlinesandhotelchainsencouragingcustomerstobookdirectorthroughonlinewholesalers,bypassingtravelagents–Investingincontent(information,traveladvice,andthelike)isarequirementforsuccessinthiscompetitivemarket3-13Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall•CORPORATETRAVEL–Manylargecorporationsreceiveadditionalservicesfromlargetravelagencies–Toreducecorporatetravelcosts,companiescanmakearrangementsthatenableemployeestoplanandbooktheirowntrips–Travelauthorizationsoftwarethatchecksavailabilityoffundsandcompliancewithcorporateguidelinesisusuallyprovidedbytravelcompanies3-14Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall15Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall•THEINTERNETJOBMARKET–ThefollowingpartiesusetheInternetjobmarket:•Jobseekers•Employersseekingemployees•Classifiedads•Jobagencies•Governmentagenciesandinstitutions–AConsortiumofLargeEmployersandCollegeCareerAdvisors–OnlineJobMarketsonSocialNetworking–GlobalOnlinePortals3-16Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall3-17Copyright©2010PearsonEducation,Inc.PublishingasPrenticeHall•BENEFITSANDLIMITATIONSOFTHEELECTRONICJOBMARKET•Probablythebiggestlimitationoftheonlinejobmarketist