Adeyl Khan, Faculty, BBA, NSU Chapter 7 Safety, Convenience, Fraud, Marketing.

Adeyl Khan, Faculty, BBA, NSU

E-Business: Doing Business Online

Chapter 7Safety, Convenience,

Fraud, Marketing


What is E-Business?Electronic business (e-business) -

Conducting business via the Internet. E-tailing, or virtual storefronts on Web sites. Online business-to-business transactions. Electronic data interchange (EDI), the

business-to-business exchange of data using compatible software.

E-mail, instant messaging, and other Web-enabled communication tools and their use as media for reaching prospective and existing customers.

The gathering and use of demographic, product, and other information through Web contacts.


Capabilities and Benefits of E-Business• Global Reach. Goods and services can be sold to

customers worldwide.• Personalization. Companies can customize products

and reduce inventory.• Interactivity. Customers and suppliers can negotiate

prices online.• Right-time and integrated marketing. Online

retailers provide products when and where customers want them and promotions can be directed to individual customers.

• Cost savings. E-business can reduce costs.

Growing Population

Widespread Internet


North South University

Agora Direct

Boston Symphony Orchestra

Some E-Business Successes


Web sites are frequently used for marketing to attract visitors/customers.

Business Web SitesIncrease a firm’s visibility, promote its

offerings, and provide information to interested parties.

Build customer goodwill and assist retailers and other resellers in their marketing efforts.

Disseminate financial information to investors.

Enable prospective employees to apply online for jobs.

Provide e-mail communication.


Business-to-Business (B2B)Business-to-business e-

business (B2B) Electronic business transactions between businesses using the Internet.

By some estimates, account for 90% of all e-commerce activities.

Can reduce cost of B2B transactions by almost 25 percent.

Compare with B2C


Electronic data interchange (EDI) computer-to-computer exchange of invoices,

purchase orders, price quotations and other sales information.

Quick Response, cost, Web services (Open Arch.)

Extranets Accessible through firm’s website- offer an

efficient way for business to collaborate with vendors, partners and customers

VPNPrivate Exchanges (c-business)

the next generation of extranets where all types of data related to e-business is shared- more collaborative.


Online Shopping and B2CBusiness-to-consumer (B2C) E-tailing accounts for 4% of

all U.S. sales. Growing at a rate of 18%.Services like banking and

brokerage are key aspects of e-tailing

Many retailers have electronic storefronts.

Growth of broadband is aiding e-tailing.

Shopping Cart


Who are online buyers and sellers?

Typical user is young, highly educated, urban or suburban, and affluent.

Demographics are shifting; there is decreasing difference in Internet purchasing habits among groups.


Benefits of B2CLower Prices

Many products cost less online. Internet allows customers to easily compare prices from multiple sellers.

Saves time & time constrainsConvenience

Can order products from around the world anytime, day or night.

Can register customer information to streamline transactions.

Personalization Emphasis on personalized, one-on-one marketing to

increase repeat purchases.


Developing Safe Online Payment SystemsThrough encryption, data is encoded for

security purposes.Many companies use Secure Sockets Layer

(SSL) technology to encrypt information and verify senders and receivers.

An electronic wallet contains credit card and identification information. Customers can avoid retyping purchase information.


E-Business Challenges (privacy) Privacy is among the top concerns of Internet users.

E-business sites often require passwords and use electronic signatures, an electronic form of identity verification.

Companies can track customers’ shopping and viewing habits through cookies.

Customers usually prefer that companies do not share their personal information. Merchants have responded by joining privacy organizations.

Privacy protections may soon become legally required. Employees also have concerns that employers are

monitoring their Internet behavior. Companies worry about data theft.


E-Business Challenges (Internet Fraud)• Internet Crime Complaint Center logs

more than 200,000 complaints annually.

• 50% of the complaints referred to law enforcement agencies deal with online auctions.

• Phishing is a growing form of Internet fraud that uses e-mail or pop-up messages to get unsuspecting victims to disclose personal information.

• Vishing, or voice phishing, involves phone calls to credit card customers to obtain personal and banking information.

• Payment fraud is growing.

http://www.ic3.gov/


E-Business Challenges (poor website design)50% of shopping carts are abandoned

before any purchase is made. Lack of Information Inability to find the information they need Feeling overwhelmed by too much

informationCompanies that have brick-and-mortar

experience often have better success satisfying customers than Internet-only retailers.

Online sales can compete with business partners such as retailers and distributors causing disputes called channel conflict.


Midterm -127th June- Class Time

Covers Ch 2, 4, 5, 720% MCQ

40% SQ40% LQ

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Using the Web’s Communication Function• Web has four main functions: e-business,

entertainment, information, and communication.

• Communication is Web’s most popular function.

• Firms use e-mail to communicate with customers, suppliers, and other partners.

• Online Communities: Internet forums, newsgroups, electronic bulletin boards, and Web communities that appeal to people who share common interests.

• Spam is junk e-mail.


Web Communication BlogsBlog - short for Web log, an online journal

written by a blogger. Comments/questions section

May incorporate wikis, a Web page that anyone can edit.

Some incorporate podcasts video & audio recordings. Feedburner services more than 200,000 podcasts.

Corporate blogs can help build brand trust. Example: Apple’s iLounge builds the iPod brand and

gives Apple ideas for product improvement.Employee blogs may present ethical issues.

http://www.ilounge.com/


Web CommunicationWeb Based PromotionBanner Ads – messages placed on

frequently visited websitesPop-up Ads – ads that appear in separate

windowsPre-roll Video Ads – advertisements that

roll as soon as a page is loadedSearch marketing – companies pay for top

visibility in search resultsSome companies, such as

ValPak Marketing Systems, offer virtual, searchable coupons.

http://www.valpak.com/


Global Environment of E-BusinessFuture growth of many companies is linked

to a global strategy that incorporates e-business.

U.S. leads world in Internet users but ranks only 5th in Internet penetration.

E-Bay may dominate most markets, but Chinese company Alibaba.com has 83% of the auction business in China.

Three of four Web pages are written in English.

E-business can heighten competition in the global marketplace...

http://www.alibaba.com/


World Internet Statistics


It is easier to create a bad website than a good one. Organizations must think about:

Planning and PreparationContent and ConnectionsCosts and Maintenance

Developing a Successful Website


• Click-through rate - percentage of people presented with a Web banner ad who click on it.

• Conversion rate - percentage of visitors to a website who make a purchase.

Managing a Website

Adeyl Khan, Faculty, BBA, NSU23


Define e-business and discuss how it can help achieve business success.

Distinguish between a corporate and a marketing Web site.

List the major forms of B2B e-business.

Explain B2C e-business and identify the products most often sold online.

Describe some of the challenges associated with e-business.

Discuss how organizations use Internet communications to advance their objectives.

Discuss Web sites and identify methods for measuring Web site effectiveness.

Explain the global scope of e-business.

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Learning Goals

Adeyl Khan, Faculty, BBA, NSU Chapter 7 Safety, Convenience, Fraud, Marketing.

Documents

nsu business

business b2b business

electronic business

online business

b2c business

ebusiness successes

business web sites

adeyl khan