Electronic commerce (e-commerce)
- commerce, but it is commerce accelerated and enhanced by IT
Build powerful relationships with customers
Build powerful relationships with suppliers
Build powerful relationships with partners

path-to-profitability (P2P)
a formal business plan that outlines key business issues such as...
Customer targets
Marketing strategies
Operations strategies
Projected income statement and balance sheet targets`

Business to Government (B2G) e-commerce
- when a business sells products and services to a government entity.

Consumer to Government (C2G) e-commerce
- when an individual sells products and services to a government entity

Government to Business (G2B) e-commerce
- when a government entity sells products and services to businesses

Government to Consumer (G2C) e-commerce -
e-commerce activities performed between a government and its citizens
Paying taxes, registering vehicles, etc

Government to Government (G2G) e-commerce -
e-commerce activities within a nation's government (can also refer to e-commerce activities between 2 or more nations' governments)

Business to Business (B2B) e-commerce -
when a business sells products and services to customers who are primarily other businesses

Business to Consumer (B2C) e-commerce
- when a business sells products and services to customers who are primarily individuals

Consumer to Business (C2B) e-commerce
- when an individual sells products and services to a business

Consumer to Consumer (C2C) e-commerce
- when an individual sells products and services to another individual.

Mass customization
- the ability of an organization to give its customers the opportunity to tailor its products or services

Maintenance, repair, and operations (MRO) materials (indirect materials)
- materials necessary for running a company but do not relate to the company's primary business activities

Demand aggregation
- combining purchase requests from multiple buyers which justifies a larger discount

Direct materials
- materials that are used in production in a manufacturing company or are placed on the shelf for sale in retail environments

Reverse auction
- process in which a buyer posts its interests in buying items and sellers compete by submitting successively lower bids
The lowest bidder wins

Electronic marketplace (e-marketplace)
- interactive business providing a central market where multiple buyers and sellers can engage in e-commerce
Horizontal e-marketplaces
Vertical e-marketplaces

Horizontal e-marketplace
- connects buyers and sellers across many industries

Vertical e-marketplace
- connects buyers and sellers in a given industry

Marketing mix
- set of marketing tools your organization will use to pursue its marketing objectives in reaching and attracting potential customers

Online ads (banner ads)
- small advertisements that appear on other sites

Pop-up ad
- small Web page advertisement that appears on your screen outside the current Web site

Pop-under ad
- pop-up ad you do not see until you close your current browser window

Viral marketing
- encourages users of a product or service supplied by a B2C business to encourage friends to join in as well

Affiliate program
- arrangement between two e-commerce sites that directs viewers from one site to another

- count of the number of people who visit one site and use an ad to get to another

Conversion rate
- percentage of potential customers who actually buy something

Financial cybermediary
- Internet-based company that makes it easy for one person to pay another person or organization over the Internet
PayPal (www.paypal.com) is the most well-known

Electronic check
- mechanism for sending money from your checking or savings account to another person or organization

Electronic Bill Presentment and Payment (EBPP)
- system that sends bills over the Internet and provides an easy-to-use mechanism (perhaps a button) to pay for them if the amount looks correct

Smart card
- plastic card (the size of a credit card) that contains an embedded chip on which digital information can be stored and updated

Digital wallet
- software and information
Software provides transaction security
Information includes delivery information and other forms of necessary information

Electronic data interchange (EDI)
- direct computer-to-computer transfer of transaction information in standard business documents, such as invoices and purchase orders, in a standard format

value-added networks (VANs)
- B2B service that offers information-sharing services among organizations

Financial EDI
- an electronic process used primarily within B2B for the payment of purchases

- scrambles the contents of a file so that you can't read it without having the right decryption key

public key encryption (PKE)
- uses two keys: a public key for everyone and private key for only the recipient of the encrypted information

Secure Sockets Layer (SSL)
Creates a secure connection between a Web client and server
Encrypts the information
Sends the information over the Internet
Denoted by lock icon on browser or https:// (notice the "s")

Secure Electronic Transaction (SET)
- transmission method that ensures transactions are legitimate as well as secure
Helps verify use of a credit card, for example, by sending the transaction to the credit issuer as well as the seller/supplier

Long Tail
first offered by Chris Anderson; explains e-commerce profitability in terms of a sales curve

- when businesses provide enabling technologies that allow people - instead of designated employees - to create, modify, and oversee the development of a product or service.

Virtual good
- nonphysical object
Toys, weapons, clothes, and accessories you buy in online communities like Farmville and World of Warcraft

Mobile computing
- your ability to use technology to wirelessly connect to and use centrally located information and software

Mobile commerce
- electronic commerce transactions conducted over a wireless device such as a smartphone, laptop, or tablet PC.