Module 09: E-Commerce and Mobile Commerce Technology

Module 09: Discussion
Impact of Ecommerce and Mobile Commerce
Choose an e-commerce or mobile commerce platform for a business with which you are
familiar.
1. Discuss the impact of e-commerce technology on the business that operates the
platform you chose. Consider the following questions:
a. What strategies has the business used to leverage e-commerce technology to its
advantage?
b. How has the platform affected the business’s revenue, customer base, or market
share?
c. What risks or challenges has the business faced as a result of using e-commerce
technology?
2. Discuss how mobile technology creates commerce opportunities for businesses.
Consider the following questions:
a. What are some examples of businesses that have successfully leveraged mobile
technology to create new commerce opportunities?
b. How does mobile technology enable businesses to reach new customers or offer
new products or services?
c. What are some challenges or risks associated with using mobile technology for
commerce?
General Directions
1. Cite the textbooks and cite 2 other sources (peer reviewed articles)
2. Make sure your is not over 500 words.
3. Make sure you respond to the2 questions above (use APA headings)
4. APA 7 style
5. Use complete paragraphs
6. NO bullet points of terms
7. AI tool format which will not be given full points. my instructor is very familiar with
AI tools and know the formats and language they use.
8. Read chapter 8 in textbook and read PPT
Text book name and reference: Pollard, C., Turban, E., & Wood, G. (2018). Information
technology for management: Ondemand strategies for performance, growth, and sustainability
(11th ed.). John Wiley & Sons, Inc. ISBN: 978-1118890790; eBook ASIN: B07F7R7L6K
IT for Management: On-Demand Strategies for
Performance, Growth, and Sustainability
Twelfth Edition
Turban, Pollard, Wood
Chapter 8
Omnichannel Retailing, E-commerce, and
Mobile Commerce Technology
Learning Objectives (1 of 5)
Omnichannel
Retailing
Mobile
Payment and
Financial
Services
Mobile
Commerce
In-Store
Retail
Technology
E-commerce—
Online
Retailing
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Introduction (1 of 2)
• Traditional brick-and-mortar stores face increasingly
intense competition.
• Consumers, armed with mobile devices, have more
information than ever before about products, prices, and
alternative places to shop.
• Showrooming: consumers visit a store to look at
merchandise, seek information and advice from
salespeople, maybe even try on clothes, and then leave the
store to make their purchases from an online retailer that
offers lower prices.
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Introduction (2 of 2)
• Online retailers also face significant challenges:
• Maintaining an e-commerce website requires an
ongoing investment in new technologies designed to
enhance the online shopping experience
• increase operational and logistical efficiency
• maintain high levels of customer satisfaction
• Companies with mobile commerce also face challenges:
• Artificial intelligence
• virtual reality
• recommendation systems
• new types of payment systems
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Keeping Up with Consumer Demands and
Behavior (1 of 2)
Convenience
• Retail shoppers hold price, product selection, and
convenience to be the most important factors in their
buying decisions
• Consumers do price comparisons and product
selections using the Web and mobile technology
• Convenience, the differentiating factor, means:
• being able to find just the right product without
spending a long time searching
• being able to pick up or return a product with little or
no hassle.
• being able to checkout or purchase products easily
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Keeping
Up with
Consumer
Demands
and
Behavior
(2 of 2)
•Marketing Strategy
• New tactics such as same day
delivery, buy online pick-up in
store, and curbside delivery are
all examples of ways that
retailers are trying to optimize
convenience for their
customers. Different business
models:
• Subscription-based retailing
• Fulfillment as a service (FaaS)
• online marketplaces,
• Web and cloud services
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Digital Connections
• Advances in Web technologies: APIs, symantec search
technology, digital voice assistants (DVAs), and
recommendation systems
• Advances in mobile technologies: Growth of 5G
networks
• Social commerce: Social networking services become
platforms for retailing goods and services
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Consumers
Still Love to
Shop in
Stores
• Advantages for traditional
retailers:
• Empowered employees
• Critical “node” in the supply
chain
• Optimize shopping history
data
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Supply Chain Is
More Important
Than Ever
Logistical infrastructure refers to the
organization of a complex system of
facilities, equipment, transportation, and
other requirements necessary for the
delivery of goods and services from the
point of origin to the point of sale to the end
user.
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The Omnichannel Retailing Concept
E-commerce or “electronic commerce” is the buying and selling
of goods and services on a computer network, such as the
Internet or the World Wide Web.
M-commerce or “mobile commerce” is the buying and selling of
goods and services using mobile devices (such as a smartphone)
and a telecommunications or computer network.
Omnichannel retailing is a business strategy that provides
customers with a seamless and integrated experience across
multiple retail channels such as in-store, online, mobile and other
sales and product distribution channels.
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Omnichannel Retailing: Questions
1. Describe the three factors that are most likely to influence
consumer shopping behavior.
2. List some examples of things that retailers (online or instore) do to increase convenience for their customers.
3. Why are retailers likely to view technology as both a
blessing and a curse?
4. What is subscription-based retailing? List a couple
examples of how different companies are applying this
concept.
5. Explain why omnichannel retailing provides a better
shopping experience for consumers.
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Learning Objectives (2 of 5)
Omnichannel
Retailing
Mobile
Payment and
Financial
Services
Mobile
Commerce
In-Store
Retail
Technology
E-commerce—
Online
Retailing
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Changes in Consumer Shopping Behavior
Customers frequently make use of multiple channels to make a
purchase.
Increasingly, customers utilize mobile devices while shopping in a
store.
Customers that shop in stores want to be able to check out or pay for
their purchase using some form of mobile payment.
Most shoppers are willing to allow collection of data about their
shopping and purchase behaviors.
Experiential shopping
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In-Store Tech
Improves
Convenience
and Enhances
the Shopping
Experience
• Free, In-Store Wi-Fi to Aid
Shoppers Using Mobile Devices
• Autonomous Shopping Carts
• Nike Speed Shop
• Increased Use of In-Store Digital
Displays
• Novel Payment Systems
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In-Store Retail Technology: Questions
1.
When evaluating new services and/or technologies that might attract
shoppers to a store-based retailer, what criteria should managers consider
when evaluating innovations? In other words, what areas of performance
should innovations be expected to improve in today’s competitive retail
environment?
2.
If you were a retail manager, how would you evaluate the Nike Speed Shop
service described in this section? Is this the kind of service that can scale
over time? Would it become a sustainable competitive advantage for
retailers who decided to provide the service?
3.
What are some examples of experiential retail that are likely to appeal to
younger shoppers in their late teens and early 20s?
4.
Why does it make sense to offer free in-store Wi-Fi connections given the
way that people like to shop these days?
5.
Out of the three most important factors that influence where people shop,
why is convenience probably the one that retailers should focus on the
most (instead of product and price)?
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Learning Objectives (3 of 5)
Omnichannel
Retailing
Mobile
Payment and
Financial
Services
Mobile
Commerce
In-Store
Retail
Technology
E-commerce—
Online
Retailing
Copyright ©2021 John Wiley & Sons, Inc.
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Types of Ecommerce
Markets:
Business to
Consumer
(B2C)
• Pure play e-commerce retailers
are retailers that only operate
online (the Web) and do not use
other channels such as mobile or
in-store retailing
• When a retailer operates in both
e-commerce and store-based
channels, it creates opportunities
for omnichannel retail practices
that consumers say they like
• Most of the top 10 U.S. ecommerce retailers also have
physical store-based operations
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Business to Consumer (B2C)
Some relatively new e-commerce trends occurring today:
• Mass Personalization
• Use of Artificial Intelligence Applications
• Recommendation Systems
• A/B Testing of Product, Price, and Promotional Tactics
• Consumer Use of DVAs for Search, Research, and
Ordering
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Business to Business (B2B) E-commerce
and E-procurement
• Business-to-business (B2B) Markets
The buyers, sellers, and transactions involve only
organizations
o Enterprise forms electronic relationships with distributors,
resellers, suppliers, customers, and other partners
o B2B e-commerce will reach $1.8 trillion and account for 17%
of all B2B sales in the United States by 2023
o
• Business models for B2B applications:
Sell-side marketplaces
o E-sourcing (the buy-side marketplace)
o
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Business to Business (B2B): Sell-side Marketplaces
• Two types of e-commerce in sell-sideB2B markets: direct
and marketplace.
• Direct e-commerce model: the buyer organization is
expected to come to a single seller’s site to view catalogs
and place an order.
• Marketplace e-commerce: the products of multiple
companies are offered for purchase by one marketplace
operator.
• Creates greater competition for sellers (a buyer advantage)
• Similar to B2C model, but the ‘C‘ is an organization.
•
Amazon Business; Alibaba wholesaling Chinese products; Dell
Computer auctions through eBay; Overstock.com for obsolete of
excess assets
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Business to Business (B2B): E-sourcing
• Different procurement methods that make use of an
electronic venue for identifying, evaluating, selecting,
negotiating, and collaborating with suppliers.
• Primary methods include: Online auctions, Request for
Quotes (RFQ) processing, and private exchanges.
• Secondary activities include: trading partner
collaboration, contract negotiation, and supplier
selection.
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Business to Business (B2B): E-procurement
• Corporate procurement (corporate purchasing):
transactional elements of buying products and services
for operational and functional needs.
• Direct procurement: buying materials to produce
finished goods.
• Indirect procurement: buying materials for daily
operations.
• E-procurement: reengineered procurement using ebusiness technologies and strategies.
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Business to Business (B2B): E-procurement
Goals
• Control Costs & Simplify Processes
(streamlining)
o Streamline within an organization’s value chain.
o Align the organization’s procurement process with
those of other trading partners, which belong to the
organization’s virtual supply chain.
o Analyze spending patterns in an effort to improve
spending decisions and outcomes.
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Other Ecommerc
e Markets
• Direct-to-consumer (D2C)
marketplace: composed of
businesses that ship their
products directly to consumers
without using wholesalers,
distributors, or other
middlemen. Ex: Dollar Shave
Club and Warby Parker (glasses
and prescription eyeglasses).
• Peer-to-peer (P2P) marketplace:
exchanges that occur between
two individuals. Ex: eBay and
Craigslist
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Challenges to E-commerce (1 of 3)
Resolving channel conflict:
• It is a conflict between an online selling channel and
physical selling channels.
• Channel conflict has forced some companies to limit
their B2C efforts or not to sell direct online.
• An alternative approach is to try to collaborate in some
way with the existing distributors whose services may
be restructured.
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Challenges to E-commerce (2 of 3)
Resolving conflicts within click-and-mortar organizations:
• When an established company sells online directly to
customers, it creates conflict with its own offline
operations.
• Conflicts may arise in areas such as pricing of products and
services, allocation of resources, and logistics services
provided by the offline activities to the online activities
(e.g., handling of returns of items bought online).
• To minimize this type of conflict, companies may separate
the online division from the traditional division.
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Challenges to E-commerce (3 of 3)
• Managing order fulfillment and logistics
• Determining viability and risk of online retailers
• Identifying appropriate revenue (business) models
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E-commerce Business and Strategic Planning
Online business and planning recommendations:
1. Build the marketing plan around the customer, rather
than on products.
2. Monitor progress toward the one-year vision for the
business in order to identify when adjustments are
needed, and then be agile enough to respond.
3. Identify all key assumptions in the marketing plan. When
there is evidence that those assumptions are wrong,
identify the new assumptions and adjust the plan.
4. Make data-driven, fact-based decisions and plans.
Copyright ©2021 John Wiley & Sons, Inc.
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E-commerce—Online Retailing: Questions
1. Explain the differences between the various types of ecommerce marketplaces.
2. Why does channel conflict sometimes occur when companies
sell their products through both traditional and online
channels?
3. Explain the challenges faced by e-commerce companies that
use personalization strategies to customize the advertisements
and product recommendations that customers see when
shopping online. How do some companies try to increase
transparency regarding how they use consumer data?
4. Describe some of the new technologies being used by ecommerce retailers to improve service, convenience, and user
experience.
5. List three online marketing planning recommendations.
Copyright ©2021 John Wiley & Sons, Inc.
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Learning Objectives (4 of 5)
Omnichannel
Retailing
Mobile
Payment and
Financial
Services
Mobile
Commerce
In-Store
Retail
Technology
E-commerce—
Online
Retailing
Copyright ©2021 John Wiley & Sons, Inc.
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Mobile Commerce
• Mobile Commerce, or M-Commerce:
o
The buying or selling of goods and services using a wireless,
handheld device such as a cell phone or tablet (slate)
computer.
• Mobile E-Commerce
o
The use of a wireless handheld devices to order and/or pay
for goods and services from online vendors.
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Mobile Commerce: Retailing & Marketing
• Mobile Retailing
o
The use of mobile technology to promote, enhance, and add
to value to the in-store shopping experience.
• Mobile Marketing
o
A variety of activities used by organizations to engage,
communicate, and interact over Wi-Fi and
telecommunications networks with consumers using wireless,
handheld devices.
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Mobile Advertising
• Some advertisements are analogous to television
advertisements. For instance, many “free” mobile apps
are supported by in-app advertisements.
• Frequently, mobile app developers will offer two
versions of an app:
• One will be free, but feature advertisements during use,
and the other will require payment for the app that can
then be used without displaying ads.
• Another type of advertisement is unique to mobile
devices. Location-based advertisements can be pushed
out to a user’s home screen or text message app when
certain criteria are met.
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Mobile Apps
Many retail businesses can benefit by encouraging customers
to download brand specific mobile apps.
Successful apps typically provide features that provide
enhanced convenience and service to customers using the
app.
Many companies that have developed and distributed apps
have found that they can increase brand value to customers,
enhance brand loyalty, and boost company sales and profits.
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Information:
Competitive
Advantage
in Mobile
Commerce
•In-Store Tracking
• Tracking how a customer moves
through a store, noting what
displays the customer looks at, or
what departments the customer
spends the most time in can be
extremely helpful for
understanding individual
consumer preferences as well as
creating optimal store layout.
• Systems for tracking customers
based on signals emitted from
smartphones and other mobile
devices are being deployed.
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QR Codes in Mobile Marketing
• Quick Response (QR) Codes
o
Customers scan the QR code
containing a link to an Internet
webpage.
o
Easier alternative to typing a URL
address into a mobile browser.
o
Some experts believe, however, that
QR code technology will never be as
popular in the United States as it is in
Asia.
o
Many smartphone users simply do
not know what to do with a QR code.
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Mobile Entertainment
• Many mobile apps have been created for music, movies, videos,
games, adult entertainment, sports, and gambling apps.
• Apps exist to check game scores; track news about specific athletes,
teams, or sports; take part in fantasy team contests such as fantasy
football; and participate in sports-oriented social networking services.
• Apps are available to record workout times, schedule training
exercises, record heart rates and a variety of other information related
to athletic training.
• The iTunes Store, Google, and Amazon continue to be leading
distributors of digital music, movies, TV shows, e-books, and podcasts.
• While still relatively small, the mobile gambling industry is expected to
grow substantially over the next few years. Some predict that this type
of mobile commerce could generate as much as $20 billion soon.
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Hotel Services and Travel Go Wireless
• Smartphones and other mobile devices have become essential travel
aids.
• Most major airlines, hotel chains, and Internet travel agencies have
developed mobile apps to help travelers manage their arrangements.
• Airlines frequently give passengers the option of receiving up-to-date
information about their flights through an app or via short message
service (SMS) text messaging.
• Google Maps is perhaps one of the most popular apps used by travelers
• Other interesting mobile travel tools include apps that translate voice or
text when traveling abroad, apps for finding nearby Wi-Fi hotspots, and
apps created by several popular travel guides.
• Most large hotel chains, independent hotels, and inns offer guests inroom, wireless high-speed Internet connections, although this is not
always a free service.
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Mobile Social Networking
• Facebook and other popular social media sites have
added mobile access in recent years to stay
competitive.
• Snapchat is completely app-based.
• All the most popular social networking sites offer apps
that allow users to access their accounts from a
smartphone or other mobile device, making social
media a primary driver of growth in the mobile app
industry.
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Mobile Commerce: Questions
1.
Describe some of the ways that people are using mobile devices to
shop for products and services.
2.
What are some ways in which traditional brick-and-mortar retailers
can use mobile technology to enhance a customer’s in-store
shopping experience?
3.
List four to five types of mobile entertainment apps that are widely
available to consumers today.
4.
List some ways that travelers and travel-related businesses are using
mobile technology.
5.
How are companies using QR codes to promote products and
services to mobile consumers? Why are QR codes not as popular in
the United States as they are in Asia and other parts of the world?
6.
Explain why the mobile gaming market represents such a lucrative
market opportunity for advertisers.
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Learning Objectives (5 of 5)
Omnichannel
Retailing
Mobile
Payment and
Financial
Services
Mobile
Commerce
In-Store
Retail
Technology
E-commerce—
Online
Retailing
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Mobile Payment Systems (1 of 2)
• Charge to Phone Bill with SMS Confirmation
o
It requires users to set up an account with a payment company
such as Boku (https://www.boku.com). The amount of the charge is
then added to the payer’s phone bill, and the telecom carrier remits
this amount to the payee.
• Near-field communication (NFC)
o
At checkout, the mobile user simply passes or taps their phone next
to a merchant terminal and payment is transferred.
• Mobile wallet systems
To make a payment, the shopper uses a password or fingerprint to
open the payment app and then selects the credit card account
they wish to pay with.
o The mobile wallet app uses an NFC connection to transfer payment
information to the retailer as described above.
o
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Mobile Payment Systems (2 of 2)
• QR code systems
o
Several companies are developing mobile payment systems that
generate a QR code on the user’s phone, which is, in turn, scanned
by the retailer to complete the transaction.
• Mobile Phone Card Reader
o
Phone attached device allows credit card swipe (Square.com,
Paypal.com)
• SMS and secure payment screens
Payment is initiated when the retailer sends a text message to the
purchaser’s phone (purchasers can also initiate payment by sending
a text to the retailer’s short code).
o Once the order has been placed, the retailer sends a text message
containing a link to a secure payment page created by the payment
processing company.
o
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Mobile Banking and Financial Services
• Mobile banking is generally defined as using a
handheld device to perform banking transactions and
other related activities
• Uses combination of mobile media channels
o
(SMS, mobile Web browsers, customized apps)
• The services offered include bill payments and money
transfers, depositing checks, account administration,
balance inquiries, accessing account statements
• Mobile banking is a natural extension of online, or
Web-based banking services.
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Short
Codes
• Banks and financial service
organizations have two basic
options for providing mobile
services:
• Smartphone users can download
dedicated apps to conduct banking
transactions.
• The other option is to provide
service through SMS text message
technology.
• A short code works like a
telephone number, except that it
is only five or six characters long
and easier to remember.
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Mobile Banking Security Risks
Cloning Duplicating the electronic serial number (ESM) of one phone and using it in
second phone, the clone. This allows the perpetrator to have calls and other transactions
billed to the original phone.
Phishing Using a fraudulent communication, such as an e-mail, to trick the receiver into
divulging critical information such as account numbers, passwords, or other identifying
information.
Smishing Similar to phishing, but the fraudulent communication comes in the form of an
SMS message.
Vishing Again, similar to phishing, but the fraudulent communication comes in the form
of a voice or voicemail message encouraging the victim to divulge secure information.
Lost or stolen phone Lost or stolen cell phones can be used to conduct financial
transactions without the owner’s permission.
Copyright ©2018 John Wiley & Sons, Inc.
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Mobile Payment and Financial Services:
Questions
1.
What are the two basic technologies used for mobile banking and
financial services?
2.
Why have e-wallets not been widely adopted and what will makers of ewallets need to do to make this payment method more attractive to
consumers?
3.
What are the most common types of mobile banking activities consumers
perform?
4.
What are the most common security risks associated with mobile
banking?
5.
Research some of the mobile payment systems currently available to
merchants and consumers so that you understand how each system
differs from others.
6.
What is a micropayment and why is it beneficial to consumers and
businesses that mobile payment systems can process these types of
transactions?
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Copyright
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