Preface

Part 1: Introduction

Chapter 1?Introduction to Electronic Commerce3

The Evolution of Electronic Commerce4

Electronic Commerce and Electronic Business5

Categories of Electronic Commerce5

Business Processes6

Relative Size of Electronic Commerce Elements7

The Development and Growth of Electronic Commerce9

Early Electronic Commerce9

The First Wave of Electronic Commerce, 1995–200310

The Second Wave of Electronic Commerce, 2004–200911

The Third Wave of Electronic Commerce, 2010–Present13

The “Boom and Bust” Myth17

Business Models, Revenue Models, and Business Processes17

Focus on Specific Business Processes19

Role of Merchandising19

Product/Process Suitability to Electronic Commerce19

Electronic Commerce: Opportunities, Cautions, and Concerns21

Opportunities for Electronic Commerce21

Electronic Commerce: Current Barriers23

Economic Forces and Electronic Commerce25

Transaction Costs27

Markets and Hierarchies27

Using Electronic Commerce to Reduce Transaction Costs30

Network Economic Structures31

Network Effects32

Identifying Electronic Commerce Opportunities33

Strategic Business Unit Value Chains33

Industry Value Chains35

SWOT Analysis: Evaluating Business Unit Opportunities37

International Nature of Electronic Commerce39

Trust Issues on the Web39

Language Issues40

Cultural Issues41

Infrastructure Issues42

Summary45

Key Terms45

Review Questions46

Exercises47

Cases48

For Further Study and Research51

Chapter 2?Technology Infrastructure: The Internet and the World Wide Web55

The Internet and the World Wide Web57

Origins of the Internet57

New Uses for the Internet58

Commercial Use of the Internet59

Growth of the Internet59

The Internet of Things60

Packet-Switched Networks61

Routing Packets62

Public and Private Networks63

Virtual Private Networks (VPNs)64

Intranets and Extranets64

Internet Protocols65

TCP/IP66

IP Addressing66

Electronic Mail Protocols68

Web Page Request and Delivery Protocols69

Emergence of the World Wide Web70

The Development of Hypertext70

Graphical Interfaces for Hypertext71

The World Wide Web71

The Deep Web72

Domain Names73

Markup Languages and the Web74

Hypertext Markup Language75

Extensible Markup Language (XML)81

Internet Connection Options87

Connectivity Overview87

Voice-Grade Telephone Connections87

Broadband Services88

Leased-Line Connections88

Wireless Connections88

Internet2 and the Semantic Web93

Summary96

Key Terms96

Review Questions98

Exercises99

Cases100

For Further Study and Research101

Part 2: Business Strategies for Electronic Commerce

Chapter 3?Selling on the Web107

Revenue Models for Online Business109

Web Catalog Revenue Models109

Fee-for-Content Revenue Models114

Advertising as a Revenue Model Element118

Fee-for-Transaction Revenue Models124

Fee-for-Service Revenue Models129

Free for Many, Fee for a Few130

Changing Strategies: Revenue Models in Transition131

Subscription to Advertising-Supported Model132

Advertising-Supported to Advertising-Subscription Mixed Model132

Advertising-Supported to Subscription Model132

Multiple Changes to Revenue Models133

Revenue Strategy Issues for Online Businesses135

Channel Conflict and Cannibalization135

Strategic Alliances136

Luxury Goods Strategies136

Overstock Sales Strategies137

Creating an Effective Business Presence Online137

Identifying Web Presence Goals137

Web Site Usability139

How the Web Is Different140

Meeting the Needs of Web Site Visitors140

Trust and Loyalty142

Usability Testing144

Customer-Centric Web Site Design145

Using the Web to Connect with Customers146

The Nature of Communication on the Web146

Summary150

Key Terms150

Review Questions151

Exercises152

Cases153

For Further Study and Research156

Chapter 4?Marketing on the Web159

Web Marketing Strategies160

The Four Ps of Marketing161

Product-Based Marketing Strategies161

Customer-Based Marketing Strategies162

Communicating with Different Market Segments163

Trust, Complexity, and Media Choice163

Market Segmentation166

Market Segmentation on the Web167

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