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PONDICHERRY UNIVERSITY

(A Central University)

DIRECTORATE OF DISTANCE EDUCATION

DDE WHERE INNOVATION IS A WAY OF LIFE

E- Commerce

(Paper Code:BCOM2005)

Bachelor of Commerce - B.Com

II Year

1

B.Com ² 2nd Year Paper Code: BCOM 2005

PAPER X - E ± COMMERCE

UNIT -I

UNIT ±II

UNIT ±III

UNIT ± IV

UNIT ±V

UNIT ±VI

UNIT ±VII

UNIT ±VIII

TEXT BOOK:

Joseph P. T.

REFERENCE:

Jaiswal S.

Mohammad Mahmoudi Maymand

Murthy C.S.V.

2

UNIT ± I

E-Commerce

LEARNING OJECTIVES

CONTENTS

1.1 Introduction

3

1.2 E-Commerce: Meaning

4

1.2.1 Examples of E-Commerce

5

1.3 E-Commerce Definitions

1. International Journal of Electronic Commerce

2. 3. 4. 5. 6. 7. 6

1.4 E-Commerce ± Features

1.4.1 Ubiquity:

1.4.2 Global reach:

1.4.3 Universal standards:

1.4.4 Richness:

7

1.4.5 Interactivity:

1.4.6 Personalization:

1.4.7 Information density:

1.4.8 Social technology:

1.4.9 User-Generated Content:

8 Differences between Traditional Commerce and E-Commerce

Point of

Difference

E-commerce Traditional Commerce

9

1.5 Functions of E-Commerce

a) Search Engine Optimization (SEO) 10 b) Selecting New Products c) Merchandising New Productions d) Customer Service 11 e) Monitoring your KPIs / Analytics

1.6 Scope of E-Commerce

a) Cash on delivery (COD) 12 b) Delivering experiences c) Growing the base d) Growing opportunities e) Online Travel Segment f) E-Tailing 13 g) Online Financial Services h) Classifieds i) Other online Services

1.7 Benefits and limitations of E-Commerce

1.7.1 Benefits of E-Commerce

14 15

1.7.2 Limitations of E-Commerce

16 17

1.8 The Internet and India

1.8.1 Educational Research Network (ERNET)

1.8.2 Gateway Internet Access Service (GIAS)

18

1.8.3 Timeline Chart

and 19 20 21

1.9 E-commerce opportunities and challenges for industries

1.9.1 Opportunities:

a) Global Trade: b) Virtual Businesses: 22
c) Lower search costs: d) Round the clock: e) Greater Economic Efficiency

1.9.2 Challenges:

a) Indian customers return much of the merchandise they purchase online. 23
b) Cash on delivery is the preferred payment mode. c) Payment gateways have a high failure rate. d) Internet penetration is low. e) Feature phones still rule the roost. f) Postal addresses are not standardized. g) Logistics is a problem in thousands of Indian towns. 24
h) Overfunded competitors are driving up cost of customer acquisition.

1.10 Future Scope and Growth

a) Macro-economic factors i) Personal Disposable Income will continue to rise ii) Number of active Internet users in India is poised to rise iii) Demand for debit and credit cards will see a rise 25
b) Segment Specific factors

1.11 Summary

1.12 Key Terms

1. E-Commerce:

2. E-Business:

3. Internet

Educational Research Network (ERNET):

26

Gateway Internet Access Service (GIAS):

E-tailing

1.13 Self Evaluation Questions

27

UNIT ± II

Business Models for E-commerce

LEARNING OBJECTIVES

After studying this unit, you will be able to:

CONTENTS

2.1 Introduction

28

2.2 Meaning and Definition of Portal

Definition:

Portalgateway

general portals niche portals web portal portal space 29

2.3 Birth or Portal

old media

2.4 Classification

horizontalvertical. horizontal portal vertical portal

2.4.3 Personal Portal:

30

2.4.4 Business Portal:

2.4.5 Government Web Portal:

31

2.4.6 Cultural portal:

2.4.7 Corporate web portals:

2.4.8 Stock portal:

2.4.9 Search portals:

32

2.4.10 Tender portals:

2.4.11 Domain-specific portals:

2.5 Meaning and Features of Business model

2.5.1 Meaning of Business Model

B 33

2.5.2 Features of Business model

i. E-Business Concept e-business concept ii. Value Proposition value proposition 34
iii. Sources of Revenue revenue model 9 9 9

Dot-Com

iv. Activities, Resources and Capabilities mission intellectual property 35
a. Activities b. Resources c. Capacity capacity idle capacity 36

2.6 E-Business Models

2.6.1 Business - to - Business (B2B)

37

Models in B2B:

Supplier Centric Model

38

Buyer centric Model

Intermediary ± centric model

Advantages of B2B

1. Instant purchases

2. Increased revenue

39

4. Closer business relationships

The Disadvantages of a B2B

1. Limited Market

2. Long Purchase Decision Time

3. Inverted Power Structure

40

4. Sales Process

2.6.2 Business - to - Consumer (B2C)

41

Diagrammatic representation of B2C Model

Advantages of E-Commerce for B2C Businesses

From the consumer side, benefits include:

42

From the business side, benefits include:

Disadvantage of E-Commerce for B2C Businesses

Disadvantages for the consumer

43

2.6.3 Consumer - to - Consumer (C2C)

44

Advantages of C2C E-Commerce

Disadvantages of C2C E-Commerce

45

2.6.4 Consumer - to - Business (C2B)

C2BCustomer to Business

General features of C2B

± Direct action.

± Collaborative consumption.

± Detailed segmentation.

± Interaction.

± Reciprocity.

± Bi-directionality.

46

Advantages and Disadvantages of C2B

C2B Advantages

47

2.6.5 Brokerage Model

Brokerage models include:

Marketplace Exchange

Business Trading Community

48

Buy/Sell Fulfilment

Demand Collection System

Auction Broker

Transaction Broker

Bounty Broker

Distributor

Search Agent

Virtual Mall

2.6.6 Value chain Model

49

2.6.7 Advertising Model

Other E-Business Models

2.6.8 Business-to-Government (B-to-G):

50

E-procurement services

A virtual workplace

Rental of on-line applications and databases

2.6.9 Business-to-Peer Networks (B-to-P):

2.6.10 Consumer-to-Government (C-to-G):

2.6.11 Consumer-to-Peer Networks (C-to-P):

2.6.12 Government-to-Business (G-to-B):

www.dti. 51

2.6.13 Government-to-Consumer (G-to-C):

2.6.14 Government-to-Government (G-to-G):

2.6.15 Peer±to-Peer Network (P-to-P):

2.6.16 Peer Network-to-Consumer (P-to-C):

2.6.17 Peer Network-to-Business (P-to-B)

M-commerce

52

2.7 Summary

2.8 Key Terms

Portal

Portal space

Business model

E-Business model

B2B B2C C2C 53
C2B

P-to-C:

Mobile commerce

A virtual workplace:

Virtual Mall

2.9 Self Assessment Questions

54

UNIT ± III

E-Marketing

Learning Objectives

Contents

3.1 Introduction

55

3.2 E-Marketing Definition

3.3 Objectives of E-Marketing

1. Sell

2. Serve

3. Speak

56

4. Save

5. Sizzle

Specific

Measureable

Action-orientedRealistic

Time Bound

3.4 Importance of E-Marketing

Specific benefits of E-Marketing include:

Global reach

Lower cost

Measurable results

Round the Clock

Personalization

57

One-to-one marketing

Better conversion rate

Instant information

Savings

Scope for expansion

Feedback ±

3. 5 Disadvantages of E-Marketing

1. Complex websites

2. Purchase without inspection

3Payment method

4. Lack of confidence

58

5. Cash on Delivery (CoD)

3.6 The e-Marketing Mix

3.6.1 Product

The core product

The actual product

The augmented product

Online options for the core product

59

Online options for the augmented product

60

3.6.2 Price

Price

Product,

(PlacePromote 61
62

3.6.3 Place

Place of purchase

Seller-controlled sites

Navigation

63

Localisation:

New channel structures:

3.6.4 Promotion

64

The Extended Marketing Mix

3.6.5 People

65

3.6.6 Process

3.6.7 Physical evidence

3.7Traditional Marketing Vs. E-Marketing

3.7.1 Traditional marketing

66

Examples of traditional Marketing:

3.7.2 E-Marketing

Examples of Internet Marketing

3.7.3 Comparison of Traditional Marketing Vs. E-Markeitng

Product promotion

Direct saving

Customer Service

Brand Image

Advertising

67

Customization:

Order making process

Intermediaries

Customer Value

3.8 Impact of E-Commerce on Market

The following discussion would highlight various impacts of E-Commerce on market 68

E-Banking

69

Telebanking:

Internet Banking:

ATM:

Debit Card:

Credit Card:

70

E-Ticketing

E-Advertising

E-Trading

71
Computerization of Mail Transmission and Processing

E-Post

3.9 MARKETING ISSUES ON E-MARKETING

Opportunities and threats

72
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