Electronic Commerce: The Second Wave, Fifth Edition

by Schneider, Gary P.

• ISBN13: 9780619213312
• ISBN10: 0619213310
• Edition: 5th
• Format: Paperback
• Copyright: 2004-04-19
• Publisher: Course Technology

Summary

Electronic Commerce: The Second Wave describes how the landscape of online commerce is changing and evolving. With balanced coverage of both the technological and the strategic aspects of successful e-commerce, readers are able to tackle the real-world business cases included in each chapter. Reflecting changes in the economy and how businesses are responding, this text emphasizes revenue and transaction cost reduction models as an alternative to the older ideas of business models. The author has included the latest technological developments, including increased coverage of wireless technology (m-commerce), so readers are aware of all the latest developments.

Table of Contents

Preface	xviii
Introduction
Introduction to Electronic Commerce	2	(47)
Electronic Commerce: The Second Wave	4	(8)
Electronic Commerce and Electronic Business	4	(1)
Categories of Electronic Commerce	5	(3)
The Development and Growth of Electronic Commerce	8	(2)
The Second Wave of Electronic Commerce	10	(2)
Business Models, Revenue Models, and Business Processes	12	(6)
Focus on Specific Business Processes	12	(3)
Advantages of Electronic Commerce	15	(1)
Disadvantages of Electronic Commerce	16	(2)
Economic Forces and Electronic Commerce	18	(5)
Transaction Costs	18	(1)
Markets and Hierarchies	19	(2)
The Role of Electronic Commerce	21	(1)
Network Economic Structures	21	(2)
Network Effects	23	(1)
Value Chains in Electronic Commerce	23	(4)
Strategic Business Unit Value Chains	24	(1)
Industry Value Chains	25	(2)
SWOT Analysis: Evaluating Business Unit Opportunities	27	(2)
The Role of Electronic Commerce	29	(1)
International Nature of Electronic Commerce	29	(12)
Trust Issues on the Web	29	(2)
Language Issues	31	(1)
Culture Issues	32	(6)
Infrastructure Issues	38	(3)
Summary	41	(1)
Key Terms	41	(1)
Review Questions	42	(1)
Exercises	42	(1)
Case	43	(1)
For Further Study and Research	44	(5)
Technology Infrastructure: The Internet and the World Wide Web	49	(49)
The Internet and the World Wide Web	50	(7)
Origins of the Internet	51	(1)
New Uses for the Internet	52	(1)
Commercial Use of the Internet	52	(1)
Growth of the Internet	53	(1)
Emergence of the World Wide Web	54	(3)
Packet-Switched Networks	57	(2)
Routing Packets	58	(1)
Internet Protocols	59	(6)
TCP/IP	60	(1)
IP Addressing	60	(2)
Domain Names	62	(1)
Web Page Request and Delivery Protocols	63	(1)
Electronic Mail Protocols	63	(2)
Markup Languages and the Web	65	(14)
Standard Generalized Markup Language	66	(1)
Hypertext Markup Language (HTML)	66	(6)
Extensible Markup Language (XML)	72	(5)
HTML and XML Editors	77	(2)
Intranets and Extranets	79	(2)
Intranets	79	(1)
Extranets	79	(1)
Public and Private Networks	80	(1)
Virtual Private Network (VPN)	80	(1)
Internet Connection Options	81	(7)
Connectivity Overview	81	(1)
Voice-Grade Telephone Connections	82	(1)
Broadband Connections	82	(2)
Leased-Line Connections	84	(1)
Wireless Connections	84	(4)
Internet2 and the Semantic Web	88	(1)
Summary	89	(1)
Key Terms	89	(2)
Review Questions	91	(1)
Exercises	91	(1)
Cases	92	(2)
For Further Study and Research	94	(4)
Business Strategies for Electronic Commerce
Selling on the Web: Revenue Models and Building a Web Presence	98	(55)
Revenue Models	99	(25)
Web Catalog Revenue Models	99	(9)
Digital Content Revenue Models	108	(2)
Advertising-Supported Revenue Models	110	(4)
Advertising-Subscription Mixed Revenue Models	114	(1)
Fee-for-Transaction Revenue Models	115	(7)
Fee-for-Service Revenue Models	122	(2)
Revenue Models in Transition	124	(4)
Subscription to Advertising-Supported Model	125	(1)
Advertising-Supported to Advertising-Subscription Mixed Model	125	(1)
Advertising-Supported to Fee-for-Services Model	125	(1)
Advertising-Supported to Subscription Model	125	(1)
Multiple Transitions	126	(2)
Revenue Strategy Issues	128	(4)
Channel Conflict and Cannibalization	128	(1)
Strategic Alliances and Channel Distribution Management	129	(2)
Mobile Commerce	131	(1)
Creating an Effective Web Presence	132	(5)
Identifying Web Presence Goals	132	(1)
Achieving Web Presence Goals	132	(5)
Web Site Usability	137	(6)
How the Web Is Different	137	(1)
Meeting the Needs of Web Site Visitors	138	(2)
Trust and Loyalty	140	(1)
Rating Electronic Commerce Web Sites	141	(1)
Usability Testing	141	(1)
Customer-Centric Web Site Design	142	(1)
Connecting with Customers	143	(3)
The Nature of Communication on the Web	143	(3)
Summary	146	(1)
Key Terms	146	(1)
Review Questions	147	(1)
Exercises	147	(1)
Case	148	(1)
For Further Study and Research	149	(4)
Marketing on the Web	153	(51)
Web Marketing Strategies	155	(5)
Product-Based Marketing Strategies	156	(2)
Customer-Based Marketing Strategies	158	(2)
Communicating with Different Market Segments	160	(6)
Trust and Media Choice	160	(1)
Market Segmentation	161	(2)
Market Segmentation on the Web	163	(2)
Offering Customers a Choice on the Web	165	(1)
Beyond Market Segmentation: Customer Behavior and Relationship Intensity	166	(9)
Segmentation Using Customer Behavior	166	(3)
Customer Relationship Intensity and Life-Cycle Segmentation	169	(3)
Acquisition, Conversion, and Retention of Customers	172	(1)
Customer Acquisition, Conversion, and Retention: The Funnel Model	173	(2)
Advertising on the Web	175	(7)
Banner Ads	175	(4)
Other Web Ad Formats	179	(2)
Site Sponsorships	181	(1)
Effectiveness of Online Advertising	181	(1)
E-Mail Marketing	182	(1)
Permission Marketing	182	(1)
Combining Content and Advertising	183	(1)
Outsourcing E-Mail Processing	183	(1)
Technology-Enabled Customer Relationship Management	183	(2)
CRM as a Source of Value in the Marketspace	184	(1)
Creating and Maintaining Brands on the Web	185	(6)
Elements of Branding	185	(1)
Emotional Branding vs. Rational Branding	186	(1)
Brand Leveraging Strategies	187	(1)
Brand Consolidation Strategies	187	(1)
Costs of Branding	188	(1)
Affiliate Marketing Strategies	188	(3)
Viral Marketing Strategies	191	(1)
Search Engine Positioning and Domain Names	191	(6)
Search Engines and Web Directories	191	(2)
Paid Search Engine Inclusion and Placement	193	(1)
Web Site Naming Issues	194	(3)
Summary	197	(1)
Key Terms	197	(1)
Review Questions	198	(1)
Exercises	199	(1)
Case	200	(1)
For Further Study and Research	201	(3)
Business-to-Business Strategies: From Electronic Data Interchange to Electronic Commerce	204	(41)
Purchasing, Logistics, and Support Activities	206	(10)
Purchasing Activities	206	(2)
Direct vs. Indirect Materials Purchasing	208	(2)
Logistics Activities	210	(2)
Support Activities	212	(1)
E-Government	213	(2)
Network Model of Economic Organization	215	(1)
Electronic Data Interchange	216	(10)
Early Business Information Interchange Efforts	217	(1)
Emergence of Broader EDI Standards	217	(2)
How EDI Works	219	(4)
Value-Added Networks	223	(3)
EDI on the Internet	226	(2)
Open Architecture of the Internet	226	(1)
Financial EDI	227	(1)
Supply Chain Management	228	(4)
Value Croation in the Supply Chain	228	(1)
Internet Technologies and the Supply Chain	229	(3)
Building and Maintaining Trust in the Supply Chain	232	(1)
Electronic Marketplaces and Portals	233	(5)
Independent Industry Marketplaces	233	(3)
Private Stores and Customer Portals	236	(1)
Private Company Marketplaces	236	(1)
Industry Consortia-Sponsored Marketplaces	237	(1)
Summary	238	(1)
Key Terms	238	(1)
Review Questions	239	(1)
Exercises	239	(1)
Case	240	(1)
For Further Study and Research	241	(4)
Online Auctions, Virtual Communities, and Web Portals	245	(38)
Auction Overview	246	(5)
Origins of Auctions	247	(1)
English Auctions	247	(1)
Dutch Auctions	248	(1)
First-Price Sealed-Bid Auctions	249	(1)
Second-Price Sealed-Bid Auctions	249	(1)
Open-Outery Double Auctions	250	(1)
Sealed-Bid Double Auctions	250	(1)
Reverse (Seller-Bid) Auctions	250	(1)
Online Auctions and Related Businesses	251	(16)
General Consumer Auctions	252	(4)
Specialty Consumer Auctions	256	(2)
Consumer Reverse Auctions and Group Purchasing Sites	258	(1)
Business-to-Business Auctions	259	(3)
Business-to-Business Reverse Auctions	262	(2)
Auction-Related Services	264	(3)
Virtual Communities and Web Portals	267	(10)
Mobile Communications Technology	267	(1)
Electronic Marketplaces	268	(1)
Intelligent Software Agents	269	(1)
Virtual Communities	270	(2)
Early Web Communities	272	(1)
Web Community Consolidation	273	(1)
Web Portal Revenue Models	273	(4)
Summary	277	(1)
Key Terms	277	(1)
Review Questions	278	(1)
Exercises	278	(1)
Case	279	(1)
For Further Study and Research	280	(3)
The Environment of Electronic Commerce: Legal, Ethical, and Tax Issues	283	(41)
The Legal Environment of Electronic Commerce	284	(13)
Borders and Jurisdiction	285	(3)
Jurisdiction on the Internet	288	(1)
Subject-Matter Jurisdiction	288	(4)
Contracting and Contract Enforcement in Electronic Commerce	292	(5)
Use and Protection of Intellectual Property in Online Business	297	(8)
Web Site Content Issues	297	(3)
Domain Names and Cybersquatting	300	(1)
Name Changing and Name Stealing	301	(1)
Protecting Intellectual Property Online	301	(1)
Defamation	302	(1)
Deceptive Trade Practices	303	(1)
Advertising Regulation	303	(2)
Online Crime, Terrorism, and Warfare	305	(1)
Online Crime	305	(1)
Online Warfare and Terrorism	306	(1)
Ethical Issues	306	(6)
Ethics and Web Business Policies	306	(1)
Privacy Rights and Obligations	307	(3)
Communications with Children	310	(2)
Taxation and Electronic Commerce	312	(4)
Nexus	312	(1)
U.S. Income Taxes	312	(2)
U.S. State Sales Taxes	314	(1)
European Union Value Added Taxes	315	(1)
Summary	316	(1)
Key Terms	316	(1)
Review Questions	317	(1)
Exercises	317	(1)
Case	318	(1)
For Further Study and Research	319	(5)
Technologies for Electronic Commerce
Web Server Hardware and Software	324	(33)
Web Server Basics	325	(7)
Types of Web Sites	326	(1)
Web Clients and Web Servers	327	(1)
Dynamic Content	328	(1)
Various Meanings of ``Server''	329	(1)
Web Client/Server Communication	330	(1)
Two-Tier Client/Server Architecture	330	(1)
Three-Tier and N-Tier Client/Server Architectures	331	(1)
Software for Web Servers	332	(4)
Operating Systems for Web Servers	332	(1)
Web Server Software	333	(3)
Finding Web Server Software Information	336	(1)
Web Site and Internet Utility Programs	336	(10)
Finger and Ping Utilities	336	(1)
Tracert and Other Route-Tracing Programs	337	(1)
Electronic Mail	338	(1)
Unsolicited Commercial E-Mail (UCE, Spam)	338	(2)
Solutions to the Spam Problem	340	(2)
Telnet and FTP Utilities	342	(1)
Indexing and Searching Utility Programs	343	(1)
Data Analysis Software	343	(1)
Link-Checking Utilities	344	(1)
Remote Server Administration	345	(1)
Web Server Hardware	346	(6)
Server Computers	346	(1)
Web Server Performance Evaluation	347	(1)
Web Server Hardware Architectures	348	(4)
Summary	352	(1)
Key Terms	352	(1)
Review Questions	353	(1)
Exercises	353	(1)
Case	354	(1)
For Further Study and Research	355	(2)
Electronic Commerce Software	357	(38)
Web Hosting Alternatives	358	(2)
Basic Functions of Electronic Commerce Software	360	(7)
Catalog Display	361	(1)
Shopping Cart	362	(4)
Transaction Processing	366	(1)
Advanced Functions of Electronic Commerce Software	367	(7)
Middleware	367	(1)
Application Integration and Databases	368	(2)
Web Services	370	(3)
Integration with ERP Systems	373	(1)
Electronic Commerce Software for Small and Midsize Companies	374	(7)
Basic Commerce Service Providers	374	(2)
Mall-Style Commerce Service Providers	376	(4)
Estimated Operating Expenses for a Small Web Business	380	(1)
Electronic Commerce Software for Midsize to Large Businesses	381	(2)
Web Site Development Tools	381	(1)
Intershop Enfinity	382	(1)
IBM WebSphere Commerce Professional Edition	382	(1)
Microsoft Commerce Server 2002	383	(1)
Electronic Commerce Software for Large Businesses	383	(6)
Enterprise-Class Electronic Commerce Software	384	(2)
Customer Relationship Management Software	386	(1)
Supply Chain Management Software	386	(1)
Content Management Software	387	(1)
Knowledge Management Software	388	(1)
Summary	389	(1)
Key Terms	389	(1)
Review Questions	390	(1)
Exercises	390	(1)
Case	391	(2)
For Further Study and Research	393	(2)
Electronic Commerce Security	395	(51)
Online Security Issues Overview	397	(4)
Managing Risk	397	(2)
Computer Security Classifications	399	(1)
Security Policy and Integrated Security	399	(2)
Security for Client Computers	401	(12)
Active Content	401	(1)
Cookies and Web Bugs	402	(3)
Java Applets	405	(1)
JavaScript	405	(2)
Graphics and Plug-Ins	407	(1)
Viruses, Worms, and Antivirus Software	408	(2)
Digital Certificates	410	(2)
Steganography	412	(1)
Physical Security for Clients	412	(1)
Communication Channel Security	413	(15)
Secrecy Threats	413	(3)
Integrity Threats	416	(1)
Necessity Threats	416	(1)
Threats to the Physical Security of Internet Communications Channels	417	(1)
Threats to Wireless Networks	417	(1)
Encryption Solutions	418	(8)
Ensuring Transaction Integrity with Hash Functions	426	(1)
Ensuring Transaction Integrity with Digital Signatures	426	(2)
Guaranteeing Transaction Delivery	428	(1)
Security for Server Computers	428	(8)
Web Server Threats	428	(1)
Database Threats	429	(1)
Other Programming Threats	430	(1)
Threats to the Physical Security of Web Servers	430	(3)
Access Control and Authentication	433	(1)
Firewalls	434	(2)
Organizations that Promote Computer Security	436	(2)
CERT	436	(1)
Other Organizations	437	(1)
Computer Forensics and Ethical Hacking	437	(1)
Summary	438	(1)
Key Terms	439	(1)
Review Questions	440	(1)
Exercises	440	(1)
Cases	441	(2)
For Further Study and Research	443	(3)
Payment Systems for Electronic Commerce	446	(40)
Online Payment Basics	447	(4)
Payment Cards	451	(5)
Advantages and Disadvantages of Payment Cards	451	(1)
Payment Acceptance and Processing	452	(4)
Electronic Cash	456	(12)
Micropayments and Small Payments	457	(1)
Privacy and Security of Electronic Cash	457	(2)
Holding Electronic Cash: Online and Offline Cash	459	(1)
Advantages and Disadvantages of Electronic Cash	459	(1)
How Electronic Cash Works	460	(1)
Providing Security for Electronic Cash	461	(1)
Electronic Cash Systems	462	(6)
Electronic Wallets	468	(6)
Microsoft .NET Passport	469	(1)
Yahoo! Wallet	470	(1)
W3C Micropayment Standards Development Activity	471	(1)
The ECML Standard	472	(2)
Stored-Value Cards	474	(6)
Magnetic Strip Cards	474	(1)
Smart Cards	475	(5)
Summary	480	(1)
Key Terms	480	(1)
Review Questions	481	(1)
Exercises	481	(1)
Case	482	(1)
For Further Study and Research	483	(3)
Integration
Planning for Electronic Commerce	486	(30)
Planning Electronic Commerce Initiatives	487	(10)
Identifying Objectives	487	(1)
Linking Objectives to Business Strategies	488	(1)
Measuring Benefits	489	(1)
Managing Costs	490	(3)
Comparing Benefits to Costs	493	(1)
Return on Investment (ROI)	493	(4)
Strategies for Developing Electronic Commerce Web Sites	497	(7)
Internal Development vs. Outsourcing	498	(4)
Selecting a Hosting Service	502	(1)
New Methods for Implementing Partial Outsourcing	502	(2)
Managing Electronic Commerce Implementations	504	(6)
Project Management	504	(1)
Project Portfolio Management	505	(1)
Staffing for Electronic Commerce	506	(3)
Postimplementation Audits	509	(1)
Summary	510	(1)
Key Terms	510	(1)
Review Questions	511	(1)
Exercises	511	(1)
Case	512	(1)
For Further Study and Research	513	(3)
Glossary	516	(35)
Index	551