Customer behaviour Essay

What is electronic Commerce?Commerce The exchange of commodities, acquire and selling, of products and work requiring transportation, from location to location is cognise as occupation. E-Commerce From a communications perspective, e-commerce is the manner of speaking of info, products/services or retri thations via telephone lines, Fax, computer networks or any an another(prenominal)(a)(prenominal) means.What is Electronic Commerce?From an online perspective, e-commerce provides the capability of buying and selling products and information on the internet and other online services. It refers to a wide range of online business activities for products and services. whatsoever form of business relations in which the parties interact electronically sooner than by somatic exchanges or direct physical contact.Difference among E-Commerce & E- dividing lineElectronic commerce or e-CommerceE-commerce covers online processes that touch clients, suppliers and external partners, in cluding sales, marketing, order taking, delivery, customer service, purchasing of raw materials and supplies for production. More sophisticated system such as flight and hotel reservation system.e-Commerce breaks into two componentsOnline Shopping the scope of information and activities that provides the customer with the information they need to conduct business with you and make an informed buying decision. Online purchasing the technology infrastructure for the exchange of data and the purchase of a product over the Internet. Online purchasing is a metaphor utilise in business-to-business e-Commerce for providing customers with an online method of placing an order, submitting a purchase order, or requesting a quotation.E-Business is a super-set of E-Commerce.E-business includes e-commerce unless also covers internal processes such as production, inventory management, product development, riskiness management, finance, and human resources. E-business includes electronic mech anism to distribute information not right away related to buying and selling of goods. ExamplesProduct specifications, customer testimonials, and product reviews. Purchasing activities on your site, e.g., order forms, shopping carts, and credit card processing. Customers cant interact directly with the firm. (territory barrier)History of ECThe term e-commerce was originally conceived to soak up the process of conducting business minutes electronically using technology from the Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT).These technologies, which low appe ared in the late 1970s, abideed for the exchange of information and the execution of electronic proceedings amidst businesses, typically in the form of electronic purchase orders and invoices. EDI and EFT were the enabling technologies that pose the groundwork for what we now know as e-commerce. The Boston Computer Exchange, a marketplace for used computer equipment started in 1982, was one of the f irst known examples of e-commerce. Throughout the 1980s, the proliferation of credit cards, ATM machines and telephone banking was the next step in the evolution of electronic commerce. The birth of companies such as eBay and Amazon (launched in 1994) really began to lead the way in e-commerce. Both eBay and Amazon were among the first to collapse prominent e-commerce brands. The most prominent e-commerce categories today are computers, books, exponent supplies, music, and a variety of electronics. Dell.com,1997Types of EcommerceB2B( Business to Business E-commerce) or Inter-Organizational E-commerce B2C(Business to Consumer E-commerce)C2B( Consumer to Business E-commerce)C2C( Consumer to Consumer E-commerce) or Ecommerce Involving Intermediaries Intra-organizational E-commercem-commerce(Mobile E-commerce)Business to Government E-CommerceB2B (Business-to-Business) or inter-organizational Ecommerce Companies doing business with each other such as manufacturers selling to distributo rs and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable. B2B is used to improve business human relationship among orgz. (invoices, cheques, purchase orders, financial reports) are in electronic for. For Example logistical companiesBenefitsSupplier management (reduce no. of suppliers, processing coast, and cycle time) Inventory Management (list of items/product, eliminate out of stock items) Distribution Management (list of ships cargo, purchase orders etc) Channel Management (reduce labour, time saving)Payment Management (electronic succumbment reduce clerical errors, humiliate work fee and coast)B2C Business to ConsumerIn B2C seller is a business organization buyer is consumer. In this bailiwick costumer directly interacts with company, i.e. books and cds buy online and internet used as a mass medium for transaction. Newspapers reading and weather forecasting are used as a B2C E-commerce. This type of e-commerce improve the flo w of information between firm and customers. Examples are ebay.com, and amazon.com.C2B Consumer to BusinessA consumer posts his project with a set budget online and within hours companies review the consumers requirements and bid on the project. The consumer reviews the bids and selects the company that will complete theproject. Elance empowers consumers around the world by providing the conflux ground and political platform for such transactions. FreelancingC2C (Consumer-to-Consumer) orE-commerce Involving IntermediariesIn this type some(prenominal) seller and buyers are consumers. there are many sites tining forgive classifieds, auctions and forums where individuals can buy and sell. PayPal where people can send and receive funds online with ease. Olx.com auction service is a great example of where person-to-person transactions take place everyday.Intra-organizational E-CThe purpose of Intra-organizational applications is to help a company substantiate the relationships tha t are critical to delivering superior customer value by paying close attention to various functions in the organization. BenefitsWorkgroup communicationsElectronic issueSales force ProductivityBusiness to Government E-CA platform for businesses to bid on government opportunities. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations. It reduces the risk of irregularities.Income Tax Department, Excise and Taxation DepartmentM-CommerceMobile commerce is the buying and selling of goods and services through wireless technology i.e., cellular telephones and personal digital assistants (PDAs). Including lively banking (when customers use their handheld devices to access their accounts and pay their bills). Bill payment and account reviews can all be conducted from the aforementioned(prenominal) handheld device. Delivery of entertainment, financial news, sports figures and trafficupdates to a single mobile device.Adv antages of e-commerce for businesses?Reduction of costs in the businessE-commerce serves as an equalizer. It enables start-up and small- and medium-sized enterprises to go by the global market. E-commerce makes mass customization possible. E-commerce applications in this area include easy-to-use ordering systems that allow customers to choose and order products according to their personal and unique specifications. E-commerce allows network production. This refers to the parcelling out of the production process to contractors who are geographically dispersed but who are connected to each other via computer networks.What forces are fuelling e-commerce?There are at least three major forces fuelling e-commerceEconomic forces. adept of the most evident benefits of e-commerce is economic efficiency resulting from the reduction in communications costs, low-cost technological infrastructure. speedier and more economic electronic transactions with suppliers. lower global information sh aring and advertising costs.Market forces. Corporations are advance to use e-commerce in marketing and promotion to capture international markets, both(prenominal) big and small. The Internet is likewise used as a medium for enhanced customer service and support. Technology forces. The development of ICT is a differentiate factor in the growth of ecommerce.What are the components of a successfule-commerce transaction loop?To maximize the benefits of e-commerce, a number of technical as salutary as enabling issues have to be considered. A typical e-commerce transaction loop involves the sideline major players and corresponding requisites 1. The Seller should have the following componentsA corporate Web site with e-commerce capabilities (e.g., a secure transaction server) A corporate intranet so that orders are processed in an high-octanemanner and IT-literate employees to manage the information flows and maintain the e-commerce system. 2. Transaction partners includeBanking ins titutions that offer transaction clearing services (e.g., processing credit card payments and electronic fund transfers) National and international freight companies to enable the movement of physical goods within, around and out of the country. Authentication authority that serves as a certain third party to ensure the integrity and security of transactions. 3. Consumers (in a business-to-consumer transaction) trope a critical mass of the population with access to the Internet and fluid income enabling widespread use of credit cards and Possess a mindset for purchasing goods over the Internet rather than by physically inspecting items. 4. Firms/Businesses that together form a critical mass of companies (especially within provide chains) with Internet access and the capability to place and take orders over the Internet. 5. Government, to establishA legal framework governing e-commerce transactions (including electronic documents, signatures, and the like) and statutory instituti ons that would enforce the legal framework (i.e., laws and regulations) and protect consumers and businesses from fraud, among others. 6. Internet, the successful use of which depends on the following A robust and reliable Internet infrastructure andA pricing structure that doesnt penalize consumers for spending time on and buying goods over the Internet (e.g., a flat monthly complaint for both ISP access and local phone calls).