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E-grāmata: Electronic Commerce 2018: A Managerial and Social Networks Perspective

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This new Edition of Electronic Commerce is a complete update of the leading graduate level/advanced undergraduate level textbook on the subject.  Electronic commerce (EC) describes the manner in which transactions take place over electronic networks, mostly the Internet. It is the process of electronically buying and selling goods, services, and information. Certain EC applications, such as buying and selling stocks and airline tickets online, are reaching maturity, some even exceeding non-Internet trades. However, EC is not just about buying and selling; it also is about electronically communicating, collaborating, and discovering information. It is about e-learning, e-government, social networks, and much more. EC is having an impact on a significant portion of the world, affecting businesses, professions, trade, and of course, people.

The most important developments in EC since 2014 are the continuous phenomenal growth of social networks, especially Facebook , LinkedIn and Instagram, and the trend toward conducting EC with mobile devices.  Other major developments are the expansion of EC globally, especially in China where you can find the world's largest EC company.  Much attention is lately being given to smart commerce and the use of AI-based analytics and big data to enhance the field.  Finally, some emerging EC business models are changing industries (e.g., the shared economy models of Uber and Airbnb). The 2018 (9th) edition, brings forth the latest trends in e-commerce, including smart commerce, social commerce, social collaboration, shared economy, innovations, and mobility.

Part I Introduction to E-Commerce and E-Marketplaces
1 Overview of Electronic Commerce
3(38)
Opening Case: How Starbucks Is Changing to a Digital and Social Enterprise
4(3)
1.1 Electronic Commerce: Definitions and Concepts
7(1)
Denning Electronic Commerce
7(1)
Defining e-Business
7(1)
Major EC Concepts
7(1)
Electronic Markets and Networks
8(1)
1.2 The Electronic Commerce Field: Growth, Content, Classification, and a Brief History
8(7)
The Content and Framework of e-Commerce
8(1)
An EC Framework
9(1)
Classification of EC by the Nature of the Transactions and the Relationships Among Participants
9(3)
A Brief History of EC
12(1)
Case 1.1 EC Application Net-a-Porter: Dress for Success
13(1)
The Opportunity
13(1)
The Solution
13(1)
The Results
14(1)
1.3 Drivers and Benefits of e-Commerce
15(2)
The Drivers of e-Commerce
15(1)
The Benefits of e-Commerce
15(2)
1.4 Social Computing and Commerce
17(3)
Social Computing
17(1)
Web 2.0
17(1)
Social Media
17(1)
Social Networks and Social Networking Services
18(1)
Enterprise Social Networks
18(2)
The Major Tools of Web 2.0
20(1)
1.5 The Digital and Social Worlds: Economy, Enterprises, and Society
20(5)
The Digital Economy
20(1)
The Digital Enterprise
21(1)
The Social Business (Enterprise)
22(1)
The Digital Revolution and Society
23(1)
Some Impacts of the Digital and Social Worlds
24(1)
1.6 Electronic Commerce Business Models
25(4)
The Structure and Properties of Business Models
26(2)
Typical EC Business Models
28(1)
Classification of Business Models in e-Commerce
28(1)
1.7 The Limitations, Impacts, and the Future of e-Commerce
29(2)
The Limitations and Barriers of EC
29(1)
Why Study e-Commerce?
30(1)
The Future of EC
30(1)
1.8 Overview of This Book
31(10)
Part I Introduction to e-Commerce and e-Marketplaces
31(1)
Part II EC Applications
31(1)
Part III Emerging EC Delivery Platforms
31(1)
Part IV EC Support Services
32(1)
Part V EC Strategy and Implementation
32(1)
Online Mini Tutorials
32(1)
Managerial Issues
33(1)
Summary
33(3)
Closing Case: e-Commerce at the National Football League (NFL)
36(2)
References
38(3)
2 E-Commerce: Mechanisms, Platforms, and Tools
41(38)
Opening Case: Pinterest: A New Kid on the E-Commerce Block
42(2)
2.1 Electronic Commerce Mechanisms: An Overview
44(1)
EC Activities and Support Mechanisms
44(1)
The Online Purchasing Process
44(1)
2.2 E-Marketplaces
44(5)
Electronic Markets
45(1)
The Components and Participants in E-Marketplaces
46(1)
Disintermediation and Reintermediation
47(1)
Case 2.1 EC Application Blue Nile Inc.: Change and Adaptation in the Online Jewelry Industry
47(1)
Changing the Industry
47(1)
Adapting to the Market
47(1)
Types of E-Marketplaces
48(1)
2.3 Customer Shopping Mechanisms: Webstores, Malls, and Portals
49(2)
Webstores
49(1)
Electronic Malls
49(1)
Web (Information) Portals
49(2)
The Roles and Value of Intermediaries in E-Marketplaces
51(1)
2.4 Merchant Solutions: Electronic Catalogs, Search Engines, and Shopping Carts
51(3)
Electronic Catalogs
51(1)
EC Search Activities, Types, and Engines
52(1)
Shopping Carts
53(1)
2.5 Auctions, Bartering, and Negotiating Online
54(4)
Definition and Characteristics
54(1)
Dynamic Pricing
54(1)
Traditional Auctions Versus E-Auctions
54(1)
Types of Auctions
55(1)
Benefits of E-Auctions
56(1)
Limitations of E-Auctions
57(1)
Online Bartering
57(1)
Online Negotiating
58(1)
2.6 Virtual Communities and Social Networks
58(6)
Characteristics of Traditional Online Communities and Their Classification
58(1)
Social Networking Service (Sites)
59(1)
Business-Oriented Public Social Networks
60(1)
Case 2.2 EC Application Craigslist: The Ultimate Online-Classified Community
61(1)
Concerns About Craigslist
61(1)
Private (or Enterprise) Social Networks
62(1)
Business Models and Services Related to Social Networking
62(1)
Mobile Social Commerce
62(1)
Mobile Social Networking
62(1)
Recent Innovative Tools and Platforms for Social Networking
63(1)
2.7 Emerging EC Platforms: Augmented Reality and Crowdsourcing
64(3)
Augmented Reality
64(1)
Crowdsourcing
65(2)
2.8 The Future: Web 3.0, Web 4.0, and Web 5.0
67(12)
The Technological Environment
69(1)
Managerial Issues
69(1)
Summary
70(4)
Closing Case: Driving Customer Engagement with Augmented Reality at Tesco
74(1)
References
75(4)
Part II E-Commerce Applications
3 Retailing in Electronic Commerce: Products and Services
79(44)
Opening Case: Amazon.com---E-Commerce Innovator
80(2)
3.1 Internet Marketing and B2C Electronic Retailing
82(3)
Overview of Electronic Retailing
82(1)
Size and Growth of the B2C Market
82(1)
Characteristics and Advantages of Successful E-Tailing
83(2)
3.2 E-Tailing Business Models
85(6)
Classification of Models by Distribution Channel
85(2)
Referring Directories
87(1)
Malls with Shared Services
87(1)
Other B2C Models and Special Retailing
87(1)
B2C Social Shopping
88(1)
Drop-Shipping
88(3)
3.3 Online Travel and Tourism (Hospitality) Services
91(3)
Characteristics of Online Travel
91(2)
Case 3.1 EC Application
93(1)
Benefits, Limitations, and Competition in Online Travel Services
93(1)
Competition in Online Travel
93(1)
Corporate Travel
94(1)
3.4 Employment and the Online Job Market
94(3)
The Internet Job Market
94(2)
Benefits and Limitations of the Electronic Job Market
96(1)
3.5 Online Real Estate, Insurance, and Stock Trading
97(2)
Real Estate Online
97(1)
Insurance Online
97(1)
Online Stock Trading and Investments
98(1)
3.6 Online Banking and Personal Finance
99(3)
E-Banking
99(1)
Online Banking Capabilities
99(1)
Pure Virtual Banks
100(1)
Case 3.2 EC Application
100(1)
Online Billing and Bill Paying
101(1)
3.7 On-Demand Delivery of Products, Digital Items, Entertainment, and Gaming
102(4)
On-Demand Delivery of Products
102(1)
Online Delivery of Digital Products, Entertainment, and Media
103(1)
Internet TV and Internet Radio
104(1)
Social Television (TV)
104(1)
Legal Aspects
105(1)
3.8 Online Purchasing Decision Aids
106(3)
Shopping Portals
106(1)
Price and Quality Comparison by Shopbot Software Agents
106(1)
Ratings, Reviews, and Recommendation Sites
106(1)
Comparison Shopping Websites
107(1)
Social Network Influence
107(1)
Trust Verification Sites
107(1)
Other Shopping Assisting Tools
108(1)
Aggregators
109(1)
3.9 The New Face of Retail Competition: Retailers Versus E-Tailers
109(3)
The Online Versus Offline Competition: An Overview
109(1)
Retailers Versus E-Tailers
110(1)
Convergence and Omnichannel
110(1)
Examples of Click-and-Brick Retailers
111(1)
What Can Traditional Retailers Do?
111(1)
3.10 Issues in E-Tailing and Lessons Learned
112(11)
Disintermediation and Reintermediation
112(1)
Channel Conflict
113(1)
Product and Service Customization and Personalization
113(1)
Lessons Learned from Failures and Lack of Success of E-Tailers
114(1)
Managerial Issues
114(1)
Summary
115(5)
Closing Case: Etsy---A Social-Oriented B2C Marketplace
120(1)
References
121(2)
4 Business-to-Business E-Commerce
123(44)
Opening Case: Alibaba.Com---The World's Largest B2B Marketplace
124(2)
4.1 Concepts, Characteristics, and Models of B2B E-Commerce
126(7)
Basic B2B Concepts and Process
126(1)
The Basic Types of B2B Transactions and Activities
127(1)
The Basic Types of B2B E-Marketplaces and Services
128(1)
Market Size and Content of B2B
128(2)
B2B Components
130(1)
Online Service Industries in B2B
131(1)
The Benefits and Limitations of B2B
132(1)
4.2 B2B Marketing: Sell-Side E-Marketplaces
133(2)
Sell-Side Models
133(1)
Sales from Catalogs: Webstores
133(1)
Comprehensive Sell-Side Systems
134(1)
Selling Via Distributors and Other Intermediaries
135(1)
4.3 Selling Via E-Auctions
135(2)
The Benefits of Auctions on the Sell Side
135(1)
Auctioning from the Company's Own Site
136(1)
Using Intermediaries in Auctions
136(1)
Examples of B2B Forward Auctions
136(1)
4.4 One-From-Many: E-Procurement at Buy-Side E-Marketplaces
137(4)
Inefficiencies in Traditional Procurement Management
137(1)
Procurement Methods
138(1)
E-Procurement Concepts
139(1)
The Benefits and Limitations of E-Procurement
139(2)
4.5 Reverse Auctions at Buy - Side E-Marketplaces (E-Tendering)
141(3)
The Major Benefits of Reverse Auctions
141(1)
Conducting Reverse Auctions
142(1)
Case 4.1 EC Application Amazon Enters the B2B Market
142(2)
4.6 Other E-Procurement Methods
144(2)
Desktop Purchasing
144(1)
Group Purchasing
144(1)
Buying from Other Sources
145(1)
Acquisition Via Electronic Bartering
145(1)
Selecting an Appropriate E-Procurement Solution
146(1)
4.7 B2B Exchanges (E-Marketplaces): Definitions and Concepts
146(4)
Global Exchanges
146(1)
Functions of and Services Provided by Exchanges
146(2)
Ownership of B2B Exchanges
148(1)
Dynamic Pricing in B2B Exchanges
149(1)
Advantages, Limitations, and the Revenue Model of Exchanges
149(1)
4.8 B2B in Web 2.0 and Social Networking
150(5)
E-Communities in B2B
150(1)
The Opportunities of Social Commerce in B2B
151(1)
The Use of Web 2.0 Tools in B2B
151(1)
Virtual Trade Shows and Trade Fairs
152(1)
Social Networking in B2B
152(1)
Examples of Other Activities of B2B Social Networks
153(1)
The Future of B2B Social Networking
153(1)
Convergence of B2B, B2C, and Social Networking
153(1)
Case 4.2 EC Application: E-Procurement in Healthcare
153(2)
4.9 Collaborative Commerce
155(12)
Essentials of Collaborative Commerce
155(1)
The Elements and Processes of C-Commerce
155(1)
Collaboration Hubs
155(1)
Improving Collaborative Commerce
155(1)
Representative Examples of Collaborative Commerce
156(2)
Social Collaboration
158(1)
Barriers to C-Commerce
158(1)
Managerial Issues
158(2)
Summary
160(4)
Closing Case: Maybelline Uses Collaborative Commerce to Manage Distribution
164(1)
References
165(2)
5 Innovative EC Systems: From E-Government to E-Learning, E-Health, Sharing Economy, and P2P Commerce
167(38)
Opening Case: E-Government in Estonia
167(2)
5.1 Digital Government: An Overview
169(8)
Definition and Scope
169(1)
Government-to-Citizens
170(2)
Government-to-Business
172(1)
Government-to-Government
173(1)
Government-to-Employees and Internal Efficiency and Effectiveness
173(1)
Implementing E-Government
174(1)
The Transformation to E-Government
174(1)
E-Govemment 2.0 and Social Media and Networking
174(1)
M-Government
175(1)
Cutting-Edge Technologies in e-Government
176(1)
5.2 E-Learning, E-Training, and E-Books
177(9)
The Basics of E-Learning: Definitions and Concepts
177(1)
Benefits and Drawbacks of E-Learning
178(2)
Distance Learning and Online Universities
180(1)
Online Corporate Training
181(1)
Social Networks and E-Learning
182(1)
Some Recent Technology Support of E-Learning
182(1)
Visual Interactive Simulation
182(1)
E-Learning Management Systems
183(1)
Electronic Books (E-Books)
184(2)
5.3 E-Health
186(2)
Definition
186(1)
Electronic Medical Record Systems (EMR)
187(1)
Doctors' System
187(1)
Patient Services
187(1)
Social Media and Commerce
187(1)
Medical Devices and Patient Surveillance
187(1)
Medical Research
188(1)
Administrative Purposes
188(1)
5.4 Digital Disruption and Sharing Economy Models: Ride and Accommodation Sharing
188(2)
Digital Disruption: An Introduction
188(1)
Sharing Economy
189(1)
Ride (Transportation) Sharing
189(1)
Accommodation Sharing
190(1)
5.5 Person-to-Person Electronic Commerce Models
190(15)
E-Commerce: P2P Applications
191(1)
Case 5.1 EC Application The Lending Club Corp
191(2)
Case 5.2 EC Application Airbnb: An E-Commerce Disruption in the Hospitality Industry
193(2)
Managerial Issues
195(1)
Summary
195(4)
Closing Case: Henry Ford Health System Provides Superior Patient Experience Using It and E-Commerce
199(1)
References
200(5)
Part III Emerging EC Platforms
6 Mobile Commerce and the Internet of Things
205(44)
Opening Case: Hertz Goes Mobile All the Way
206(1)
6.1 Mobile Commerce: Concepts, Landscape, Attributes, Drivers, Applications, and Benefits
207(6)
Basic Concepts, Magnitude, and the Landscape
208(1)
The Attributes of M-Commerce
209(1)
An Overview of the Applications of M-Commerce
210(1)
The Benefits of M-Commerce
211(1)
Mobile Commerce Trends
212(1)
6.2 The Enabling Infrastructure: Components and Services of Mobile Computing
213(4)
Overview of Mobile Computing
213(1)
Mobile Devices
213(1)
Mobile Computing Software and Services
214(1)
Voice-Support Services
215(1)
Mobile Apps
216(1)
Putting It All Together
216(1)
6.3 Mobile Banking and Financial Applications
217(2)
Mobile Banking
217(1)
Internet-Only Banks
218(1)
Using Cutting Edge Technologies in Mobile Banking
218(1)
Other Mobile Finance Applications
218(1)
6.4 Mobile Enterprise Solutions: From Supporting the Workforce to Improving Internal Operations
219(2)
Defining Mobile Enterprise (Enterprise Mobility)
219(1)
The Framework and Content of Mobile Enterprise Applications
220(1)
Mobile Workers
220(1)
Other Enterprise Mobile Applications
220(1)
Trends for 2015 And Beyond
221(1)
6.5 Mobile Entertainment, Gaming, Consumer Services, and Mobile Marketing
221(6)
Overview of Mobile Entertainment
221(1)
Mobile Streaming Music and Video Providers
222(1)
Entertainment in Cars
222(1)
Mobile Games
222(1)
Mobile Gambling
223(1)
Mobility and Sports
223(1)
Service Industry Consumer Applications
224(1)
Mobile Marketing: Shopping and Advertising
225(1)
Mobile Shopping
225(1)
Mobile Advertising
226(1)
6.6 Location-Based Commerce
227(5)
Basic Concepts in L-Commerce
227(1)
L-Commerce Infrastructure
227(5)
Barriers to Location-Based M-Commerce
232(1)
The Viability of LBC
232(1)
6.7 Ubiquitous (Pervasive) Computing
232(3)
Overview of Ubiquitous Computing
232(1)
From Theory to Practice
233(1)
Implementation Issues in Ubiquitous Computing
234(1)
6.8 Wearable Computing and Smart Gadgets: Watches, Fitness Trackers, and Smart Glasses
235(2)
Wearable Computing Applications and Devices
235(1)
Enterprise Wearables
235(1)
Smartwatches
236(1)
Fitness (Activity) Trackers
236(1)
Digital (Smart) Glasses
236(1)
6.9 Implementation Issues in Mobile Commerce: From Security and Privacy to Barriers to M-Commerce
237(12)
M-Commerce Security and Privacy Issues
238(1)
Technological Barriers to M-Commerce
238(1)
Failures in Mobile Computing and M-Commerce
238(1)
Ethical, Legal, Privacy, and Health Issues in M-Commerce
239(1)
Enterprise Mobility Management
239(1)
Managerial Issues
240(1)
Summary
241(3)
Closing Case: Can Uber Continue to Grow in an Evolving Market?
244(2)
References
246(3)
7 Intelligent (Smart) E-Commerce
249(36)
Opening Case: INRIX Solves Transportation Problems
249(2)
7.1 Introduction to Intelligent E-Commerce
251(2)
An Overview of Intelligent E-Commerce
251(2)
7.2 The Essentials of Artificial Intelligence
253(5)
Artificial Intelligence (AI): Definitions and Characteristics
253(1)
The Content of the AI Field
253(3)
Chatbots
256(2)
7.3 Recent AI Applications in E-Commerce
258(2)
The AI Contribution to E-Commerce
258(1)
AI in E-Commerce: Some Illustrative Examples
258(2)
7.4 Knowledge (Expert) Systems
260(5)
An Overview of Knowledge Management
260(1)
Knowledge Management Types and Activities
260(1)
Knowledge Sharing
261(1)
How Is Knowledge Management Related to E-Commerce?
261(1)
KM and Social Networks
262(1)
Expert Systems
262(1)
Knowledge-Based System
263(1)
Case 7.1 EC Application Allstate Is Using Knowledge Systems
264(1)
7.5 Intelligent Personal Assistants and Robot Advisers
265(5)
Amazon's Alexa
265(2)
Apple's Siri
267(1)
Other Personal Assistants
267(1)
Personal Robots
268(1)
Application Case 7.2: EC Application: Autonomous' Personal Robot
268(2)
7.6 The Internet of Things and E-Commerce
270(3)
The Essentials of IoT
270(1)
The Structure of IoT Applications
270(1)
The Major Benefits of IoT
271(1)
The Drivers of IoT
271(1)
How the IoT Works
271(1)
Some Issues in Implementing the IoT
272(1)
7.7 Selective Demonstrations of IoT in Action
273(12)
A Sampler of Existing Applications
273(1)
Smart Homes and Appliances
274(1)
Smart Cities
275(1)
Smart Cars (Self-Driven)
276(1)
Managerial Issues
276(1)
Summary
277(3)
Closing Case: CNH Industrial Uses the Internet of Things to Excel
280(1)
References
281(4)
8 Social Commerce: Foundations, Social Marketing, and Advertising
285(40)
Opening Case: Social Media Wants Your Marketing Dollars
285(2)
8.1 Social Commerce: Definitions and Evolution
287(1)
Definitions
287(1)
The Evolution of Social Commerce
287(1)
8.2 The Content of the Social Commerce Field
288(2)
The Landscape and Major Components of the Field
288(1)
Social Media Marketing
289(1)
Enterprise 2.0
289(1)
The Future
290(1)
8.3 The Benefits and Limitations of Social Commerce
290(4)
Benefits to Customers
291(1)
Benefits to Retailers
291(1)
Benefits to Other Types of Enterprises
292(1)
The Social Business: An IBM Approach
292(1)
New or Improved Business Models
293(1)
Concerns and Limitations of Conducting Social Commerce
293(1)
8.4 Social Shopping: Concepts, Benefits, and Models
294(11)
Definitions and Drivers of Social Shopping
294(2)
Traditional E-Commerce Sites with Social Media Additions
296(1)
The Major Types and Models of Social Shopping
296(2)
Case 8.1 EC Application Polyvore A Trendsetter in Social Shopping
298(1)
Other Innovative Models
299(1)
Social Shopping Aids: From Recommendations to Reviews, Ratings, and Marketplaces
300(2)
Other Shopping Aids and Services
302(1)
Social Marketplaces and Direct Sales
303(1)
Shopping for Virtual Goods in a Virtual Economy
304(1)
Real-Time Online Shopping
305(1)
Social Shopping in the Near Future
305(1)
8.5 Social Advertising: From Viral Advertising to Microblogging and Other Promotions
305(5)
Social ads and Social Apps
306(1)
Viral (Word-of-Mouth) Marketing and Social Networking
306(1)
Using YouTube and Other Social Presentation Sites for Advertising
307(1)
Using Twitter as an Advertising and Marketing Tool
307(1)
Using Facebook for Advertising
308(1)
Using LinkedIn
308(1)
Other Innovative Ways to Advertise in Social Media
308(2)
8.6 Social Customer Service and CRM
310(15)
How Does Social Networking Empower Customers?
310(1)
Social CRM
310(1)
How to Serve the Social Customers
311(1)
The Benefits of Social CRM
312(1)
Case 8.2 EC Application iRobot Uses Social Media for Multichannel CRM
313(1)
The Evolution of Social CRM
314(1)
Multidimensional Presentation SCRM
314(1)
Examples of Implementation of Social Customer Service and CRM
314(3)
Reputation Management System
317(1)
Managerial Issues
317(1)
Summary
318(3)
Closing Case: How Sony Uses Social Media for Improving CRM
321(1)
References
322(3)
9 Social Enterprise and Other Social Commerce Topics
325(36)
Opening Case: Maximizing the Impact of Social Media with a Minimum of Effort in Mortgage Lending
326(1)
9.1 Social Business and Social Enterprise
327(4)
Definitions: Social Business and Social Enterprise
327(1)
Business Networks
328(1)
The Benefits and Limitations of Enterprise Social Networking
329(1)
How Web 2.0 Tools Are Used by Enterprises
330(1)
9.2 Business-Oriented Public Social Networking
331(1)
Entrepreneur Networks
332(1)
9.3 Enterprise Social Networks
332(5)
Taxonomy of Social Enterprise Applications
333(1)
How Enterprise Social Networking Helps Employees and Organizations
334(1)
Support Services for Enterprise Social Networks
334(1)
How Companies Interface with Social Networking
335(1)
Patterns and Speed of Adoption
336(1)
9.4 Social Network-Based Job Markets
337(2)
Social Recruiting
337(1)
Virtual Job Fairs and Recruiting Events
338(1)
Social Network Privacy and Job Search
338(1)
9.5 Social Entertainment
339(2)
Entertainment and Social Networks
339(1)
Multimedia Presentation and Sharing Sites
340(1)
9.6 Social Games and Gamification
341(3)
Games on Social Networks
341(1)
The Business Aspects of Social Games
342(1)
Case 9.1 EC Application Pokemon GO
342(1)
Educational Social Games
343(1)
Gamification
343(1)
9.7 Crowdsourcing and Crowdfunding
344(4)
Crowdsourcing as a Distributed Problem-Solving Enabler
344(1)
The Process of Crowdsourcing
345(1)
Successfully Deployed Crowdsourcing Systems: Some Representative Examples
345(1)
Case 9.2 EC Application Kickstarter
346(1)
Tools for Crowdsourcing
347(1)
9.8 Social Collaboration (Collaboration 2.0)
348(13)
Essentials of Social Collaboration
348(3)
The Future of Social Commerce
351(1)
Managerial Issues
352(1)
Summary
352(3)
Closing Case: LinkedIn---The Premier Public Business-Oriented Social Network
355(2)
References
357(4)
Part IV EC Support Services
10 Marketing and Advertising in E-Commerce
361(42)
Opening Case: IKEA Uses Mobile and Augmented Reality
361(1)
10.1 Online Consumer Behavior
362(3)
A Model of Online Consumer Behavior
363(1)
The Major Influential Factors
364(1)
Enhancing Customer Loyalty
365(1)
10.2 Personalization and Behavioral Marketing
365(5)
Personalization in E-Commerce
366(1)
Case 10.1 EC Application Using AI at The North Face
367(1)
Behavioral Marketing and Collaborative Filtering
368(1)
Case 10.2 EC Application Netflix Uses Technical and Social Systems so You Can Find Something to Watch
369(1)
10.3 Market Research for E-Commerce
370(5)
Objectives and Concepts of Online Market Research
370(1)
Representative Market Research Approaches
371(3)
Limitations of Online Market Research and How to Overcome Them
374(1)
Biometric and Smartphone Marketing Helps Market Research
374(1)
10.4 Why Web Advertising
375(2)
Overview of Web Advertising
375(1)
Basic Internet Advertising Terminology
376(1)
Why Internet Advertising?
376(1)
10.5 Online Advertising Methods
377(10)
Major Categories of Ads
377(1)
Banners
378(1)
Pop-Up and Similar-Type Ads
378(2)
Search Engine Advertisement and Optimization
380(1)
Google: The Online Advertising King
381(4)
Augmented Reality in Advertising
385(1)
Advertising in Chat Rooms and Forums
385(1)
Case 10.3 EC Application Supporting Marketing Campaigns with Software Systems
386(1)
10.6 Mobile Marketing and Advertising
387(4)
Mobile Marketing and Mobile Commerce
387(2)
Mobile Marketing Implementation Guidelines
389(1)
Tools to Support Mobile Advertisement
389(1)
Mobile Ad Trends
390(1)
Marketing Through Apps
390(1)
10.7 Advertising Strategies and Promotions
391(12)
Permission Advertising
391(1)
Other Advertising Strategies
391(1)
Localization in Advertising
392(1)
Developing an Online Advertising Plan
393(1)
Managerial Issues
394(1)
Summary
395(4)
Closing Case: Rolex Uses New Media Marketing
399(1)
References
400(3)
11 E-Commerce Security and Fraud Issues and Protections
403(54)
Opening Case: Kansas Heart Hospital Becomes a Victim to Ransom
404(1)
11.1 The Information Security Problem
405(5)
What Is EC Security?
405(2)
Security Risks in Mobile Devices
407(1)
Cyberwars and Cyberespionage Across Borders
407(1)
The Drivers of EC Security Problems
408(2)
The Darknet and the Underground Economy
410(1)
11.2 Basic E-Commerce Security Issues and Landscape
410(6)
Basic Security Terminology
411(1)
The EC Security Battleground
411(1)
The Threats, Attacks, and Attackers
411(2)
The Targets of the Attacks in Vulnerable Areas
413(1)
EC Security Requirements
414(1)
The Defense: Defenders, Strategy, and Methods
415(1)
11.3 Technical Malware Attack Methods: From Viruses to Denial of Service
416(4)
Technical and Nontechnical Attacks: An Overview
416(1)
The Major Technical Attack Methods
416(1)
Malware (Malicious Software): Viruses, Worms, and Trojan Horses
416(3)
Mirai (Malware)
419(1)
11.4 Nontechnical Methods: From Phishing to Spam and Fraud
420(9)
Social Engineering and Fraud
421(1)
Social Phishing
421(2)
Fraud and Scams on the Internet
423(1)
Top 10 Attacks and Remedies
424(1)
Identity Theft and Identify Fraud
425(1)
Cyber Bank Robberies
425(1)
Ransomware
425(2)
Spam Attacks
427(1)
Spyware
427(1)
Social Networking Makes Social Engineering Easy
427(1)
Data Breach (Leak)
428(1)
11.5 The Information Assurance Model and Defense Strategy
429(2)
Confidentiality, Integrity, and Availability
429(1)
Authentication, Authorization, and Nonrepudiation
429(1)
E-Commerce Security Strategy
430(1)
The Defense Side EC Systems
430(1)
11.6 Defending Information Systems and E-Commerce
431(7)
The Defense I Access Control, Encryption, and PKI
431(3)
The Defense II Securing E-Commerce Networks
434(1)
The Defense III General Controls, Spam, Pop-Ups, and Social Engineering Controls
435(3)
11.7 Consumer and Seller Protection from Online Fraud
438(4)
Consumer (Buyer) Protection
438(2)
Seller (Merchant) Protection
440(1)
Protecting Marketplaces and Social Networking Services
441(1)
Protecting Both Buyers and Sellers: Using Electronic Signatures and Other Security Features
441(1)
11.8 Implementing Enterprise wide E-Commerce Security
442(15)
The Drivers of EC Security Management
442(1)
Senior Management Commitment and Support
442(1)
EC Security Policies and Training
443(1)
EC Risk Analysis and Ethical Issues
444(1)
Why Is It Difficult to Stop Internet Crime?
444(1)
Protecting Mobile Devices and Mobile Apps
445(1)
Managerial Issues
446(1)
Summary
446(5)
Closing Case: How Dyn Was Attacked by DDOS?
451(1)
References
452(5)
12 Electronic Commerce Payment Systems
457(44)
Opening Case: Cross-Border EC---Costco Partners with China's Tmall
457(4)
12.1 Changing Retail Landscape
461(5)
Omni-Channel Retail
461(1)
Cash Versus Non-cash Transactions
461(2)
Move to Mobile
463(1)
Implications for EC Payments
464(1)
Critical Mass
465(1)
12.2 Using Payment Cards Online
466(3)
Credit Card Reading
466(1)
Processing Cards Online
466(2)
Fraudulent Card Transactions
468(1)
12.3 Smart Cards
469(4)
Types of Smart Cards: Contact and Contactless
470(1)
Stored-Value Cards
470(1)
Applications of Smart Cards
471(2)
12.4 EC Micropayments
473(3)
Micropayment Models
473(1)
Micropayment Options and Costs
474(1)
Case 12.1 EC Application: Innovative Credit Card Micropayments for the Korean Metropolitan Unified Fare System
474(2)
12.5 PayPal and Other Third-Party Payment Gateways
476(2)
PayPal
476(1)
Other Third-Party Gateways
477(1)
12.6 Mobile Payments
478(5)
Types of Mobile Payments
478(1)
Mobile Consumer Payments: Wallets, Clouds, and Loops
479(3)
Case 12.2 EC Application Using the Square Magstripe Reader
482(1)
12.7 Digital and Virtual Currencies
483(18)
Types of Currencies: Physical and Digital
483(1)
Bitcoin and Other Cryptocurrencies
484(5)
Managerial Issues
489(1)
Summary
490(5)
Closing Case
495(2)
References
497(4)
13 Order Fulfillment Along the Supply Chain in e-Commerce
501(36)
Opening Case: How Amazon.Com Fulfills Orders
502(2)
13.1 Order Fulfillment and Logistics: An Overview
504(3)
Basic Concepts of Order Fulfillment and Logistics
504(1)
The EC Order Fulfillment Process and Elements
505(1)
Operation Models
506(1)
Order Fulfillment and the Supply Chain
506(1)
13.2 Order Fulfillment in Make-to-Order (MTO) and Mass Customization
507(5)
Mass Customization, Make-to-Order, and Assemble-to-Order
507(1)
Case 13.1 EC Application Dell's World-Class Supply Chain and Order Fulfillment System
508(2)
Make-to-Order and Assemble-to-Order
510(1)
Case 13.2 EC Application Feetz Inc. Is Using 3D for Mass Customization in e-Commerce
511(1)
13.3 Warehousing, Robots, and Warehouse Management Systems
512(2)
Using Robots (Bots) in Warehouses
513(1)
Warehouse Management System (WMS)
514(1)
13.4 Delivery to Customers: From Robots to Drones
514(3)
Speeding Up Deliveries: From Same Day to a Few Hours
514(3)
13.5 Problems in Order Fulfillment along Supply Chains
517(1)
13.6 Solutions for Order Fulfillment Problems Along the Supply Chain
518(2)
Improvements in the Order-Taking Activity
519(1)
Changing the Structure and Process of the Supply Chain
519(1)
Integrated Global Logistics Program
520(1)
Partnering Efforts and Outsourcing Logistics
520(1)
Supply Chain Segmentation
520(1)
13.7 RFID as a key Enabler in Supply Chain Management
520(4)
The Essentials of RFID
520(2)
Case 13.3 EC Application: FID Supports Macy's Multichannel Strategy
522(1)
RFID Applications in the Supply Chain Around the Globe
523(1)
13.8 Other Order Fulfillment Topics
524(13)
Handling Returns (Reverse Logistics)
524(1)
Order Fulfillment in B2B
525(1)
Order Fulfillment in Services
525(1)
Innovative e-Fulfillment Strategies
526(1)
Managerial Issues
526(1)
Summary
527(3)
Closing Case: Cross-Border EC (Partnering with Tmall Global)
530(3)
References
533(4)
Part V E-Commerce Strategy and Implementation
14 EC Strategy, Globalization, SMEs, and Implementation
537(36)
Opening Case: Telstra Corporation Helps Its Corporate Customers Justify EC Initiatives
537(2)
14.1 Organizational Strategy: Concepts and Overview
539(7)
Strategy and Performance Cycle
540(1)
Strategy Initiation
541(1)
Strategy Formulation
542(1)
Strategy Implementation
543(1)
Strategy Assessment
544(1)
Performance Improvement and Innovations
545(1)
14.2 Why Justify E-Commerce and Social Media Investments? How Can They Be Justified?
546(5)
Increased Pressure for Financial Justification
546(1)
Other Reasons Why EC and Social Media Justification is Needed
546(1)
EC Investment Categories and Benefits
547(1)
How Is an EC or Social Media Investment Justified?
547(1)
What Needs to Be Justified? When Should Justification Take Place?
547(1)
Using Metrics in EC and Social Media Justification
548(1)
Case 14.1 EC Application Aldi Supermarket Trying E-Commerce in the United Kingdom
549(1)
Web Analytics
550(1)
The Process of Justifying EC and IT Projects
550(1)
14.3 A Strategy for Global E-Commerce and Social Media
551(4)
Benefits and Extent of Global Operations
551(1)
Barriers to Global E-Commerce
551(3)
Breaking Down the Barriers to Global E-Commerce
554(1)
14.4 Strategy for Small- and Medium-Sized Enterprises
555(3)
Case 14.2 EC Application Website Builders
556(1)
Globalization and SMEs
556(1)
Resources to Support SME Activities in EC and Social Media
557(1)
SMEs and Social Networks
557(1)
14.5 The Implementation Landscape
558(2)
The Major Implementation Factors
558(1)
Case 14.3 EC Application E-Commerce Builders
559(1)
14.6 Development Strategies for E-Commerce and Social Media Projects
560(3)
In-House Development: Insourcing
560(1)
Insourcing with Applications or Tools
561(1)
Outsourcing Development and Implementation
561(1)
Case 14.4 EC Application Would You Build an App Online?
562(1)
Selecting a Development Option
562(1)
14.7 Opportunities for Success in E-Commerce and Social Media and Avoiding Failure
563(10)
Factors that Determine E-Commerce and Social Media Success
563(1)
E-Commerce and Social Media Successes
564(1)
Cultural Differences in EC and Social Media Successes and Failures
565(1)
Managerial Issues
566(1)
Summary
566(3)
Closing Case: Battle of the B2C Titans
569(1)
References
570(3)
15 E-Commerce: Regulatory, Ethical, and Social Environments
573(40)
Opening Case: Fake News: The Austin, Texas, Fiasco
574(1)
15.1 Ethical Challenges and Guidelines
575(2)
Ethical Principles and Guidelines
575(1)
Business Ethics
575(1)
EC Ethical and Legal Issues
576(1)
15.2 Intellectual Property Law and Copyright Infringement
577(3)
Intellectual Property in E-Commerce
577(2)
Protecting Intellectual Property on Websites
579(1)
15.3 Privacy Rights, Protection, and Free Speech
580(7)
Privacy in E-Commerce
580(1)
Social Networks Changing the Landscape of Privacy and Their Protection
580(1)
Privacy Rights and Protection
581(1)
Free Speech Online Versus Privacy Protection
582(1)
The Price of Protecting an Individual's Privacy
583(1)
Case 15.1 EC Application: School Administrators Used Webcams to Spy on Students at Home
583(1)
The Future of ePrivacy
583(1)
How Information About Individuals Is Collected and Used Online
583(2)
Privacy Protection by Information Technologies
585(1)
Privacy Issues in Web 2.0 Tools and Social Networks
585(1)
Privacy Protection by Ethical Principles
586(1)
Privacy Protection in Countries Other Than the United States
586(1)
15.4 Other EC Legal Issues
587(3)
Selected Legal and Regulatory Environment: E-Discovery and Cyberbullying
587(3)
15.5 Fake Content on the Web
590(3)
Fake News
590(1)
Other Fake Content Types and Activities on the Internet
590(1)
Internet Trolls
590(1)
Difficulties Controlling Fake Content
591(1)
Tips for Analyzing and Dealing with Various Types of Fake News
592(1)
15.6 Public Policy, Taxation, and Political Environments
593(1)
Net Neutrality
593(1)
Taxation of EC Transactions in the United States
593(1)
Internet Censorship by Countries
594(1)
15.7 Societal Issues and Green EC
594(5)
The Digital Divide
595(1)
Telecommuting
595(1)
Does EC Increase Unemployment?
596(1)
Green EC and IT
596(2)
Other Societal Issues
598(1)
15.8 The Future of E-Commerce
599(14)
Some Key Factors for the Future of E-Commerce
599(1)
New Trends That Are Shaping the Future of B2C
600(1)
The Future of B2B
600(1)
Integrating the Marketplace with the Marketspace
601(1)
M-Commerce
601(1)
Social Commerce
601(1)
Future Technological Trends that May Accelerate the Speed of E-Commerce
602(1)
Future Trends That Are Limiting the Spread of EC
602(1)
Consumer Behavior
602(1)
Conclusion
602(1)
Enjoy Some Interesting Videos About the Future of E-Commerce
603(1)
Managerial Issues
603(1)
Summary
604(4)
Closing Case: The Pirate Bay and the Future of File Sharing
608(2)
References
610(3)
Glossary 613(12)
Index 625
Efraim Turban is a visiting scholar at the Pacific Institute for Information System Management, University of Hawaii.  He earned his M.B.A. and Ph.D. at the University of California, Berkeley. Previously, he was on the staff of several universities including City University of Hong Kong, Lehigh University, Florida International University, California State University Long Beach, Eastern Illinois University, and the University of Southern California. Dr. Turban is the author of over 100 refereed papers published in leading journals such as Management Science, MIS Quarterly, and Decision Support Systems. He is also the author of 20 books including Electronic Commerce: A Managerial Perspective and Information Technology for Management. He is also a consultant to major corporations worldwide. Dr. Turban's current areas of interest are Web-based decision support systems, using intelligent agents in electronic commerce systems, and collaboration issues in global electronic commerce. Jon C. Outland, is the System Division Chair of Business for Herzing University, Menomonee Falls, Wisconsin.   He holds a Ph.D. in Business Administration as well as a Masters in Business Administration (MBA), and a Masters of Science in Information Systems with an Electronic Commerce concentration.  Dr. Outland teaches many courses in the MBA program, and specializes in concepts related to Project and Information Technology Management.  He has been teaching and developing e-commerce and other business/IT courses online for over 17 years.  Dr. Outland has more than 20 years of industry experience in high-tech companies and has been helping firms deploy e-commerce solutions since 1998.  He is a certified Project Management Professional (PMP), and is personally interested in the creation and marketing of online solutions for small to medium-sized businesses. David King (Ph.D.), has over 25 years experience leading the development of decision support, performance management and enterprise system software.  Currently, he is the Sr. VP of New Product Development at JDA Software, Inc. in Scottsdale Arizona.  He joined JDA in 2004 after serving a number of years as the Sr. VP of Product Development and CTO for Comshare Inc.  Dr. King has authored a number of articles and books and is the co-author of Electronic Commerce: A Managerial Perspective (Prentice-Hall).  He also serves on a variety of industrial advisory and university boards including the MIS Advisory board at the University of Georgia and the Technopolis Advisory Board at Arizona State University. Jae  K. Lee is the HHI Chair Professor in the College of Business, and currently serves as the head of Graduate School of Green Growth and the Director of EEWS (Energy, Environment, Water, and Sustainability Initiative) Research Center (former EEWS Initiative) at KAIST (Korea Advanced Institute of Science and Technology). He has been a Professor of Management Information Systems and Electronic Commerce at KAIST since 1985, and served as Dean of the College of Business during 2006-7. He is a Fellow of the Association of Information Systems, the global organization of IS researchers. He received a B.A. in Industrial Engineering from Seoul National University (1973), a M.S. in Industrial Engineering from the KAIST (1975) and a Ph.D. in Operations and Information Systems from the Wharton School, University of Pennsylvania (1985). He was a visiting professor of the Wharton School at the University of Pennsylvania (2000), University of Texas at Austin (1995), Carnegie-Mellon University (1989), and City University of Hong Kong (2001). He was the founding editor-in-chief of the journal, Electronic Commerce Research and Applications (Elsevier, SSCI and SCIE Accredited), and was the founding chair of the International Conference on Electronic Commerce. During 2005-6, he was appointed as Associate Dean of Faculty and Research, School of Information Systems at Singapore Management University. Ting-Peng Liang is National Chair Professor of Information Management and Director of Electronic Commerce Research Center at the National Sun Yat-sen University in Taiwan and Visiting Professor of City University of Hong Kong. He is also a Fellow of the Association for Information Systems. He received his doctoral degree from The Wharton School of the University of Pennsylvania and had taught University of Illinois, Purdue University and the Chinese University of Hong Kong. He has published more than 100 research articles, including more than 60 in academic journals. His primary research interests include electronic commerce, intelligent decision support, knowledge management, and strategic applications of information systems.Ā  His papers has appeared in journals, such as Management Science, MIS Quarterly, Communications of the ACM, Journal of MIS, Operations Research, Decision Support Systems, Information and Management, Decision Sciences, IEEE Computer, IIE Transactions, International Journal of Electronic Commerce, and many others. He also serves as the founding editor of the Pacific Asia Journal of AIS and on the editorial boards of several academic journals, such as Decision Support Systems, International Journal of Electronic Commerce, Journal of Computer Information Systems, Electronic Commerce Research and Applications, Journal of the Association for Information Systems. Deborrah C. Turban (Turban Company Inc., previously with the University of Santa Thomas in the Philippines) brings expertise in EC research and analysis.