1. Electronic Commerce 043002 Chapter 6: Online Auctions, Virtual Communities, and Web Portals Dr. Mingli Song Dr. Mingli Song- School of Computer Science, Communication University of China, Beijing; email songmingli607@126.com;

2. 2 Learning Objectives In this chapter, you will learn about: Origins and key characteristics of the seven major auction types Strategies for Web auction sites and auction- related businesses Virtual communities and Web portals

3. 3 Key Terms ascending-price auction 出价逐升式拍卖 auction consignment service 拍卖委托服务 auctioneer 拍卖员 bid 出价 bidder 出价人 consumer-to-business 消费者企业间电子商务 descending-price auction 出价逐降式拍卖 double auction 双重拍卖 Dutch auction 荷兰式拍卖 English auction 英式拍卖

4. 4 Key Terms escrow service 代管契约服务 first-price sealed bid auction 密封递价最高价拍卖 group purchasing site 集体采购网站 intelligent software agent (software robot or bot) 智能 软件代理 liquidation broker 清算经济公司 lock-in effect 锁定效应 minimum bid 出价的起价 minimum bid increment 出价的最小增价 monetizing 货币化 online community 在线社区

5. 5 Key Terms open auction (open-outcry auction) 开放式拍卖（开放 出价拍卖） open-outcry double auction 开放出价双重拍卖 private valuation 预估价 proxy bid 委托出价 reserve price (reserve) 保留出价（保留价） reverse auction (seller-bid auction) 逆向拍卖（卖方出 价拍卖） reverse bid 逆向出价 sealed-bid auction 密封递价拍卖 second-price sealed-bid auction 密封递价次高价拍卖

6. 6 Key Terms shill bidder 雇佣出价人 snipe 狙击 sniping software 狙击软件 third-party assurance provider 第三方担保者 Vickrey auction 维氏拍卖 virtual community 虚拟社区 virtual learning community 虚拟学习社区 Web community 网上社区 winner’s curse 胜者的苦恼 Wireless Application Protocol (WAP) 无线应用协议 Yankee auction 美式拍卖

7. 7 Origins ( 起源 ) of Auctions In an auction (Sotheby, Christie) In an auctionSothebyChristie Seller offers an item for sale, but does not establish price Bidders ( 出价人 ) Potential buyers Bids ( 出价 ) Prices bidders are willing to pay for an item Shill bidders ( 雇佣出价人 ) Can artificially inflate ( 使膨胀 ) the price of an item

8. 8 English Auctions ( 英式拍卖 ) Bidders publicly announce their successive higher bids until no higher bid is forthcoming (ascending-price auction, 出价逐升式拍卖 ) Open auction (open-outcry auction, 开放式出 价的拍卖 ) Bids are publicly announced Minimum bid ( 起价 ) The price at which an auction begins Reserve price ( 保留价格 ) Minimum acceptable price

9. 9 English Auctions Cont’d Yankee auctions ( 美式拍卖 ) English auctions that offer multiple units of an item for sale and allow bidders to specify the quantity they want to buy Disadvantages Winning bidders tend not to bid their full private valuations ( 预估价 ) Bidders risk becoming caught up in the excitement of competitive bidding

10. 10 Dutch Auctions ( 荷式拍卖 ) Also called descending-price auctions ( 出价逐降式 拍卖 ) Form of open auction in which bidding starts at a high price and drops until bidder accepts price Often better for the seller Good for moving large numbers of commodity items quickly

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12. 12 Other Types of Auctions Sealed-bid auctions ( 密封递价拍卖 ) Bidders submit their bids independently First-price sealed-bid auction ( 密封递价最高价拍卖 ) Highest bidder wins and is awarded the item Second-price sealed-bid auction ( 密封递价次高价拍 卖 ) Highest bidder is awarded the item at the price bid by the second-highest bidder, also known as Vickrey auction Open-outcry double auctions ( 开放出价双重拍卖 ) Buy and sell offers ( 要约 ) are shouted by traders standing in a small area on the exchange floor

13. 13 Other Types of Auctions Cont’d Sealed-bid double auctions ( 密封递价双重拍卖 ) In double auctions, buyers and sellers each submit combined price-quantity bids to an auctioneer Reverse (Seller-bid, 卖家出价 ) auctions ( 逆向拍卖 ) Multiple sellers submit price bids to an auctioneer who represents a single buyer Bids are for a given amount of a specific item that the buyer wants to purchase

14. 14 Online Auctions and Related Businesses Three categories of auction Web sites General consumer ( 普通消费品 ) auctions Specialty consumer ( 特殊消费品 ) auctions Business-to-business ( 企业间 ) auctions Largest number of transactions Occurs on general consumer auction sites

15. 15 General Consumer Auctions Most common format used on eBay Computerized version of the English auction eBay English auction Allows seller to set a reserve price Bidders are listed Bid amounts are not disclosed until after auction Allows sellers to specify that an auction be made private

16. 16 Specialty Consumer Auctions Specialized Web auction sites Meet the need of special interest market segments Specialty consumer auction sites Golf Club Exchange, Cigarbid.com, and Winebid Gain an advantage by identifying a strong market segment with readily identifiable products that are desired by people with relatively high levels of disposable income

17. 17 Consumer Reverse Auctions and Group Purchasing Sites Reverse bid ( 逆向出价 ) Buyer can accept lowest offer or the offer that best matches buyer’s criteria Priceline.com Completes many of its transactions from an inventory Operates more as a liquidation broker ( 清算经济 公司 )

18. 18 Consumer Reverse Auctions and Group Purchasing Sites Cont’d Group purchasing ( 集体采购 ) site Group purchasing ( 集体采购 ) site Seller posts an item with a price As individual buyers enter bids, site can negotiate better price with the item’s provider Posted price ultimately decreases as number of bids increases

19. 19 Business-to-Business Auctions Liquidation brokers ( 清算经济公司 ) Firms that find buyers for unusable inventory items Online auctions Logical extension of inventory liquidation activities to a new and more efficient channel, the Internet

20. 20 Business-to-Business Auctions Cont’d Ingram Micro Major distributor of computers and related equipment to value-added resellers Often finds itself with outdated items turned over to liquidation brokers Now auctions those items to its established customers through its internally operated auction site Auction prices received average about 60 percent of the items’ costs

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22. 22 Business-to-Business Reverse Auctions U.S. Navy and the federal government’s General Services Administration ( 美国海军和联邦服务管理 局 ) Experimenting with reverse auctions Need for trust and long-term strategic relationships with suppliers Makes reverse auctions less attractive in some industries Use of reverse auctions Replaces trusting relationships with a bidding activity that pits ( 使竞争 ) suppliers against each other

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24. 24 Auction-Related Services Auction escrow services ( 代管契约服务 ) An independent party that Holds buyer’s payment until buyer receives purchased item and is satisfied with it Auction directory and information services Offer guidance for new auction participants Offer helpful hints and tips for more experienced buyers and sellers along with directories of online auction sites

25. 25 Auction-Related Services Cont’d Auction software For sellers Software offer services that can help with or automate tasks such as image hosting For buyers Sniping software ( 狙击软件 ) observes auction progress and places a bid high enough to win the auction

26. 26 Auction-Related Services Cont’d Auction consignment ( 委托 ) services Create online auction for an item Handle the transaction Remit balance of proceeds ( 收益 )

27. 27 Virtual Communities and Web Portals Cellular-satellite communications technology ( 蜂窝 / 卫星通信技术 ) Can be packaged with Notebook computers Personal digital assistants (PDAs) Mobile phones Wireless Application Protocol (WAP) Allows Web pages formatted in HTML to be displayed on devices with small screens

28. 28 Web Page Displayed on a PDA

29. 29 Electronic Marketplaces Marketplaces Can serve people who want to buy and sell a wide range of products and services AvantGo Provide PDAs with downloads of Web site contents, news, restaurant reviews, and maps

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31. 31 Intelligent Software Agents ( 智 能软件代理 ) Programs that search the Web and find items for sale that meet a buyer’s specifications Some software agents Focused on a particular category of product Track ratings of buyer and seller reputations Find the lowest price for an item Simon One of the best shopping agents currently available

32. 32 Virtual Communities ( 虚拟社区 ) Gathering place for people and businesses that does not have physical existence Exist on the Internet in various forms Usenet newsgroups Chat rooms Web sites Offer people a way to connect with each other and discuss common issues and interests

33. 33 Virtual Communities Cont’d Virtual learning community ( 虚拟学习社区 ) One form of virtual community (Blackboard and WebCT)Blackboard WebCT Can help companies, their customers, and their suppliers plan, collaborate, and transact business Google Answers Gives people a place to ask questions then answered by an expert for a fee

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36. 36 Early Web Communities The WELL ( “whole earth ‘lectronic link”, 全球 电子互联 ) One of the first Web communities Predates the Web Tripod Founded in 1995 in Massachusetts Offered its participants free Web page space, chat rooms, news and weather updates, and health information pages

37. 37 Web Community Consolidation ( 合并 ) Virtual communities for consumers Can succeed as money-making propositions ( 主 张 ) if They offer something sufficiently valuable to justify a charge for membership Most virtual communities Have been unable to support themselves and have either closed or been sold

38. 38 Web Portal Revenue Models Strategies that build on combination of virtual communities and other activities Advertising supported web portals One rough measure of stickiness How long each user spends at the site Nielsen//NetRatings Determines site popularity by measuring the number of unique visitors

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40. 40 Web Portal Revenue Models Cont’d Web portals High visitor counts can yield high advertising rates Companies that run Web portals Believe in the power of portals Add sticky features such as chat rooms, e-mail, and calendar functions

41. 41 Mixed Revenue Portals Time Warner’s AOL unit One of the most successful Web portals Charged a fee to users and has always run advertising on its site Yahoo! Now charges for the Internet phone service originally offered at no cost

42. 42 Internal Web Portals Run on intranets Can save significant amounts of money by Replacing the printing and distribution of paper memos, newsletters, and other correspondence Can become a good way of creating virtual community among employees Many companies are adding wireless connectivity to extend the reach of portal to employees

43. 43 Summary Companies are now using Web to Operate auction sites, create virtual communities, and serve as Web portals Consumer online auction business Dominated by eBay B2B auctions Give companies a new and efficient way to dispose of excess inventory B2B reverse auctions Provide an effective procurement tool

44. 44 Summary New companies have formed that Capitalize on Web’s ability to bring together geographically dispersed people and organizations Organizations are using mobile commerce to Sell goods and services to users of handheld devices Companies are using internal Web portals to Communicate with employees

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