0. E-Marketplaces: Structures and Mechanisms
Chapter 2
E-Marketplaces:
Structures and Mechanisms

1. Transactions, Intermediation, and Processes in EC
SELLERS, BUYERS, AND TRANSACTIONS
THE ROLES AND VALUE OF INTERMEDIARIES IN E-MARKETPLACES
Brokers
Infomediaries
e-distributor
An e-commerce intermediary that connects manufacturers with business buyers (customers) by aggregating the catalogs of many manufacturers in one place—the intermediary’s Web site.
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

2. Transactions, Intermediation, and Processes in EC
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

3. Transactions, Intermediation, and Processes in EC
disintermediation
Elimination of intermediaries between sellers and buyers.
reintermediation
Establishment of new intermediary roles for traditional intermediaries that have been disintermediated.
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

4. Participants, Transactions, Intermediation, and Processes in EC
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

5. Electronic Catalogs and Other Market Mechanisms
The presentation of product information in an electronic form; the backbone of most e-selling sites.
Electronic catalogs can be classified on three dimensions:
The dynamics of the information presentation
The degree of customization
Integration with business processes
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

6. Electronic Catalogs and Other Market Mechanisms
Online Catalogs Versus Paper Catalogs
Customized Catalogs
Implementing E-Catalogs
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

7. Electronic Catalogs and Other Market Mechanisms
search engine
A computer program that can access databases of Internet resources, search for specific information or keywords, and report the results.
electronic shopping cart
An order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop.
Product Configuration
ONLINE CLASSIFIED ADS
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

8. Auctions as EC Market Mechanisms
A competitive process in which a seller solicits consecutive bids from buyers (forward auctions) or a buyer solicits bids from sellers (backward auctions). Prices are determined dynamically by the bids.
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

9. Auctions as EC Market Mechanisms
TRADITIONAL AUCTIONS VERSUS E-AUCTIONS
Limitations of Traditional Offline Auctions
electronic auction (e-auction)
Auctions conducted online.
DYNAMIC PRICING AND TYPES OF AUCTIONS
dynamic pricing
Prices that change based on supply and demand relationships at any given time.
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

10. Auctions as EC Market Mechanisms
One Seller, Many Potential Buyers
forward auction
An auction in which a seller entertains bids from buyers. Bidders increase price sequentially.
One Buyer, Many Potential Sellers
reverse auction (bidding or tendering system)
Auction in which the buyer places an item for bid (tender) on a request for quote (RFQ) system, potential suppliers bid on the job, with the price reducing sequentially, and the lowest bid wins; primarily a B2B or G2B mechanism.
“name-your-own-price” model
Auction model in which a would-be buyer specifies the price (and other terms) he or she is willing to pay to any willing and able seller. It is a C2B model that was pioneered by Priceline.com.
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

11. Auctions as EC Market Mechanisms
Many Sellers, Many Buyers
double auction
Auctions in which multiple buyers and their bidding prices are matched with multiple sellers and their asking prices, considering the quantities on both sides.
vertical auction
Auction that takes place between sellers and buyers in one industry or for one commodity.
auction vortal
Another name for vertical auction portal.
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

12. Auctions as EC Market Mechanisms
BENEFITS, LIMITATIONS, AND IMPACTS OF E-AUCTIONS
Benefits of E-Auctions
Limitations of E-Auctions
Minimal security
Possibility of fraud
Limited participation
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

13. Bartering and Negotiating Online
ONLINE BARTERING
bartering
The exchange of goods or services.
e-bartering (electronic bartering)
Bartering conducted online, usually in a bartering exchange.
bartering exchange
A marketplace in which an intermediary arranges barter transactions.
Consumer-to-Consumer Barter Exchanges
ONLINE NEGOTIATING
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

14. E-commerce in he wireless environment: M-commerce and L-commerce
I-mode: a successful mobile portal
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

15. Cometition in the digital economy and its impact on industries
Ecosystem
Competitive factors
Exhibit 2.8
porter's competitive forces model: How the internet influences industry structure
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

16. Impacts of EC on business processes and organizations
Exhibit
The Analysis-of-impacts framework
The changing face of marketing
How customization is done online:the case of nike shoes
changes in the supply chain
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Managerial Issues
What about intermediaries?
Should we auction?
Should we barter?
Should we sponsor blogs and wikis?
Can we blog for business?
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Summary
E-marketplaces and their components.
The role of intermediaries.
The major types of e-marketplaces.
Electronic catalogs, search engines, and shopping carts.
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

19. Retailing in Electronic Commerce: Products and Services
Chapter 3
Retailing in Electronic Commerce:
Products and Services

20. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Learning Objectives
Describe electronic retailing (e-tailing) and its characteristics.
Define and describe the primary e-tailing business models.
Describe how online travel and tourism services operate and their impact on the industry.
Discuss the online employment market, including its participants, benefits, and limitations.
Describe online real estate services.
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

21. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Learning Objectives
Discuss online stock-trading services.
Discuss cyberbanking and online personal finance.
Describe on-demand delivery of groceries and similar products/services.
Describe the delivery of digital products and online entertainment.
Discuss various e-tail consumer aids, including comparison-shopping aids.
Describe disintermediation and other B2C strategic issues.
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

22. Internet Marketing and Electronic Retailing
OVERVIEW OF ELECTRONIC RETAILING
electronic retailing (e-tailing)
Retailing conducted online, over the Internet.
e-tailers
Retailers who sell over the Internet.
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

23. Internet Marketing and Electronic Retailing
SIZE AND GROWTH OF THE B2C MARKET
WHAT SELLS WELL ON THE INTERNET
CHARACTERISTICS OF SUCCESSFUL E-TAILING
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

24. E-Tailing Business Models
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

25. E-Tailing Business Models
CLASSIFICATION BY DISTRIBUTION CHANNEL
Direct marketing by mail-order retailers that go online
Direct marketing by manufacturers
Pure-play e-tailers
Click-and-mortar retailers
Internet (online) malls
Chapter 2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall