1. Computers Are Your Future Tenth Edition Spotlight 2: E-Commerce Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall1

2. 2 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

3. Spotlight 2: E-Commerce Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall3

4. Business-to-Business E-Commerce Commerce: The expectation of earning a profit through the sale of goods or services Electronic commerce (e-commerce): A subcategory of commerce Business carried out through the use of networks or the Internet Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall4

5. Business-to-Business E-Commerce Business-to- business (B2B) e- commerce involves the use of the Internet by one business to supply the material, services, and/or supplies needed by another business. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5

6. Business-to-Business E-Commerce Examples of industries and companies that engage in B2B e-commerce are: Health care Aerospace and defense Real estate Automotive Computer and software Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall6

7. Consumer-to-Consumer E-Commerce Consumer-to- consumer (C2C) e-commerce is the exchange or trade of goods, services, or information between individual consumers. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall7

8. Consumer-to Consumer E-Commerce Intermediaries like eBay are usually used in consumer-to-consumer e- commerce. Although reputable C2C Web sites do their best to protect both buyers and sellers, users must protect themselves from potential consumer fraud. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall8

9. Business-to-Consumer E-Commerce Business-to-consumer (B2C) e- commerce Consumers may purchase goods, services, and information from businesses through the use of the Internet. B2C e-commerce provides the same services as a regular store without the physical location and store-hour limitations. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall9

10. Business-to-Consumer E-Commerce Price and product comparison Web sites assist consumers in their online shopping. Sites available to create such comparisons include PriceGrabber and Shopzilla. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall10

11. Business-to-Consumer E-Commerce Online grocery stores Another B2C e-commerce shopping service Online grocery companies include Peapod and Netgrocer Are either pure play (with no physical stores to visit) or partnerships that also have physical stores Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall11

12. Business-to-Consumer E-Commerce Although the Web world has only been in existence since 1995, a large amount of e-commerce is performed through the dot-com arena. One dot-com success is Amazon.com. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall12

13. Business-to-Consumer E-Commerce Negatives associated with the use of B2C e-commerce include: Not speaking to an actual person during the purchase process The inability to touch, feel, or physically see the item being purchased Not being able to take items home the day of purchase Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall13

14. Business-to-Consumer E-Commerce For B2C e-commerce to succeed, online businesses must provide first-rate customer service. Another name for vendors who sell both online and through traditional physical stores is click-and-brick. Consumers commonly do research online prior to making a purchase. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall14

15. Business-to-Consumer E-Commerce Advertising is used by many Web sites to generate additional income. Large firms often exchange financial assistance to smaller B2C e-commerce firms for advertising on their Web sites. One of the most attractive features of B2C e-commerce is that the start-up capital investment required is very low. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall15

16. Business-to-Consumer E-Commerce To start an online business, a retailer must have a Web site. Many Web hosting services offer tools to assist in the development of a Web storefront. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall16

17. Business-to-Consumer E-Commerce Other forms of B2C e-commerce include: Online travel reservation firms such as Travelocity, CheapTickets, and Expedia Online banking services, which include online bill paying Online stock trading firms such as E*TRADE and Ameritrade Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall17

18. Business-to-Consumer E-Commerce Additional nonretail online services available to users include: Dating services Credit report services Health and medical advice News Real estate listings Insurance services Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall18

19. Business-to-Consumer E-Commerce With the many benefits of e-commerce come risks, which include: Identity theft Exposure of personal information Loss of funds Being deceived by swindlers Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall19

20. Business-to-Consumer E-Commerce When using e-commerce, users should protect themselves by: Creating unique user names and passwords Refraining from using e-commerce sites until researching them Checking online feedback from previous users of Web sites prior to using the sites Posting credit information only on secure sites Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall20