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Features of e-commerce. (memorize these). 7 features of e-commerce . Ubiquity Global Reach Universal Standards Richness Interactivity Information Density Personalization/Customization. Why study these feature?.

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Features of e commerce

Features of e-commerce

(memorize these)


7 features of e commerce
7 features of e-commerce

  • Ubiquity

  • Global Reach

  • Universal Standards

  • Richness

  • Interactivity

  • Information Density

  • Personalization/Customization


Why study these feature
Why study these feature?

  • To some extend, these features are unique to e-commerce and explain why this technology has change the world so much more than other technologies

  • Do these technologies have any of 7 features?

    • Phone, electricity, cars, planes

  • Yes, but not all 7.


Ubiquity
Ubiquity

  • Available everywhere

  • Built into other devices

  • Hidden, but still there

  • Why is ubiquity good?


Ubiquity1
Ubiquity

  • Ubiquity lowers transaction costs for the consumer/buyer.

  • How so?

  • Think about buying gifts last Christmas

  • Think about the fact that gas costs $2.40/gallon


Related concept
Related Concept

  • Cognitive Energy – mental effort needed to complete a task.

  • Ubiquity reduces cognitive energy.

    • Humans tend to seek options that require the minimum cognitive energy.

    • Consider the mental effort needed to buy your book online vs. hunting for it at various book stores.


Global reach
Global Reach

  • e-commerce technologies enable a business to easily reach across geographic boundaries.

  • Its really easy to understand how this feature can benefit business and consumers.


Global reach1
Global Reach

  • While e-commerce can reach across geographic boundaries, can it reach across demographic boundaries.

  • Demographics

    • age

    • income

    • race

    • gender

    • religion

  • There is one demographic boundary that technology can reach. Luckily, business doesn’t have an interest in reaching this group.


Universal standards
Universal Standards

  • e-commerce is made possible through hardware (Internet) and software/content (World Wide Web)

  • The Internet – In its infancy, the architects developed standards that are now globally recognized (TCP/IP)

  • The World Wide Web – Standards are becoming #1 priority (XML, HTML, etc.)


Universal standards1
Universal Standards

  • Universal standards can greatly influence market entry costs.

  • How so?

  • Consider the cost of bring goods to a market

  • Consider the cost of setting up a virtual, web-based store, vs. a real brick-mortar store?


Universal standards2
Universal Standards

  • Standards make it much easier to build business from existing technologies.

  • This reduces entry costs

  • You can setup an e-commerce website for about $10/month in technology overhead costs.

  • By reducing entry costs, there is a lot more competition.


Related concept1
Related Concept

  • Price discovery - can the consumer/buyer find prices easily, with minimal cognitive energy.

  • Since e-commerce is built on standard technology (XML, HTML), its really to integrate, aggregate, and summarize information.

    Standardization  Low Entry Cost  More completion.

    Standardization  Info. integration More price discovery opportunities.

    More competition + price discovery opportunity = lower consumer prices


Richness
Richness

  • Advertising and branding are an important part of commerce.

  • e-commerce can deliver video, audio, animation, etc. much better than other technologies (billboards, signs, etc.)

    • However, its about as rich as television technology.

  • Comparison: Airplanes enable global reach, but how about Richness?


Interactivity
Interactivity

  • Consumer/user can interact with the content.

    • Here is where Web technology kick’s TV’s ass!

  • TV is a passive activity

    • Engaging consumer/user is a powerful feature.


Information density
Information Density

  • The e-commerce technology

    • reduces information costs

    • raises the quality of information

  • How does the technology reduce costs?

  • How does it raise quality.

  • Consider the old way to share information, i.e., paper, mail, voice communication, etc.


Personalization customization
Personalization/Customization

  • It seems like a contradiction that e-commerce has more opportunities for personalization then, umm, going to a store and buying an item face-to-face with a cleck.

  • How can e-commerce permit or enhance personalization and customization.


Customization example
Customization Example

  • 1992: Dr. B buys Compaq computer at CompUSA.

  • 2007: Dr. B buys a Mac Pro computer at www.apple.com

  • Which product is more customized?


Personalization example
Personalization Example

  • Dr. B’s 3-year old son is watching Sponge Bob and sees an advertisement for Polly Pocket. BTW, he hates Polly Pocket or anything pink for that matter.

  • Dr. B’s 3-year old son is play the Bob the Builder Game on noggin.com and suddenly a pop-up ad for the Talking Bob the Builder appears.


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