Chapter 1 Foundations of Electronic Commerce 1
The Case of Intel Corp. 1
1.1 Intel Corp.and Happy Puppy 1
CHAPTER 1 Foundations of Electronic Commerce 1
The Case of Happy Puppy 2
1.2 Definitions and Content of the Field 3
Application Case 1.1 Egghead Becomes a Virtual Software Company Definitions 4
The EC Field 6
Electronic Markets 7
Interorganizational Information Systems 8
Interorganizational Information Systems and Electronic Markets 8
Application Case 1.2 Wal-Mart Uses IOSs 9
Classification of the EC Field by the Nature of the Transactions 10
The Electronic Marketing Process 11
Application Case 1.3 HBO Uses the Intranet to Boost Sales Efforts 11
Interdisciplinary Nature of EC 13
A Brief History of EC 13
The Future of EC 14
1.3 Benefits and Limitations 14
The Benefits of EC 14
The Limitations of EC 16
1.4 The Driving Forces of Electronic Commerce 17
The New World of Business 17
Business Pressures 19
Organizational Responses 19
Business Process Reengineering 21
Application Case 1.4 FedEx s Web Shopping/Shipping Service 22
Application Case 1.5 The Internet and the Intranet Shorten Time to Market of New Drugs 24
1.5 Impact of EC:Everything Will Be Changed 24
Improving Direct Marketing 25
Other Marketing-Related Impacts 26
Transforming Organizations 28
Redefining Organizations 28
Impacts on Manufacturing 29
Impacts on Finance and Accounting 29
Human Resource Management,Training,and Education 30
1.6 Putting It All Together 30
1.7 Managerial Issues 32
Summary 33
Questions for Review 34
Questions for Discussion 34
Internet Exercises 34
Keywords 34
Real World Case:An Electronic Fish Market Reengineers the Fishing Industry 36
References 37
CHAPTER 2 Retailing in Electronic Commerce 39
2.1 Amazon s Competitive Structure 39
Chapter 2 Retailing in Electronic Commerce 39
2.2 Overview of Electronic Marketing Structure 40
2.3 Forecast of the B2C Electronic Markets 41
2.4 Business Models of Electronic Marketing 44
Direct Marketing versus Indirect Marketing 44
Full Cybermarketing versus Partial Cybermarketing 44
Electronic Distributor versus Electronic Broker 45
Electronic Store versus Electronic Shopping Mall 45
Generalized E-Malls/Stores versus Specialized E-Malls/Stores 45
Proactive versus Reactive Strategic Posture Toward Cybermarketing 45
Global versus Regional Marketing 46
Sales versus Customer Service 46
2.5 Direct Marketing 46
Proactive and Full Direct Marketing:The Dell Computer Case 46
Reactive and Partial Direct Marketing:Ford Case 48
2.6 Online Customer Service 49
Application Case 2.1 Automobile Sales Online 50
2.7 Electronic Intermediaries 50
Generalized E-Brokers 51
Specialized Electronic Distributors 52
2.8 Reactive Electronic Department Stores 53
The JCPenney Case 53
Electronic Department Stores Worldwide 54
2.9 Regional Shopping Service 54
Preliminary Requirement Determination 54
2.10 Procedure for Internet Shopping:The Consumer s Perspective 55
Search for Avdilable Items 55
APPlication Case 2.2 BestBookBuys.com Finds the Best Price 56
Compare the Candidate Items with Multiple Perspectives 56
Place An Order 56
Pay for the Goods 57
Receive the Delivered Items and Inspect Their Quality 58
Contact the Vendor to Get After-Service and Support or Return the Goods if Disappointed 58
2.11 Aiding Comparison Shopping 58
Search of Hypertext Files by Agents 58
Search in a Web-Based Database:Human and Software Agents Sharing Information 59
Comparable Item Retrieval and Tabular Comparison 59
Comparison of Multiple Items from Multiple Malls 61
Comparison as a Multiple-Criteria Decision Making 62
Disintermediation and Reintermediation 63
2.12 The Impact of EC on Traditional Retailing Systems 63
Impact on Manufacturer s Distribution Strategy 64
2.13 Managerial Issues 65
Summary 65
Keywords 66
Questions for Review 66
Questions for Discusion 66
Internet Exercises 67
Team Exercises 68
Real World Case:Lowest Price on Earth:Buy.com 69
References 70
CHAPTER 3 Internet Consumers and Market Research 72
3.1 Building Customer Relationships 72
Chapter 3 Internet Consumers and Market Research 72
3.2 The Consumer Behavior Model 73
Consumer Behavior 74
Direct Sales,Intermediaries,and Customer Relations 75
3.3 Personal Characteristics and the Demographics of Internet Surfers 75
Environmental Variables 76
Personal Characteristics and Individual Differences 76
Application Case 3.1 Purchasing and Baby Boomers 78
Consumers Buying Patterns 80
3.4 Consumer Purchasing Decision Making 81
The Purchasing Decision-Making Model 81
The Customer Decision Model in Web Purchasing 83
A Model of Internet Consumer Satisfaction 83
3.5 One-to-One and Relationship Marketing 84
One-to-One Marketing:An Overview 84
Issues in EC-Based One-To-One Marketing 85
3.6 Delivering Customer Service in Cyberspace 87
Types of Customer Service Functions and Tools 88
Product Life Cycle and Customer Service 88
Some Tools of Customer Service 90
Application Case 3.2 American Airlines Builds the Largest Personalized Site on the Internet 91
Examples of Superb Customer Service 92
Application Case 3.3 Canadian Tire Provides Superb Customer Service via an Integrated Call Center 93
3.7 Market Research for EC 93
Application Case 3.4 Representative Examples of Superb Customer Service 94
Market Segmentation 95
Oniline Market Research 96
Online Market Research Methods 97
Application Case 3.5 Marketing Research on the Internet 98
Data Mining 100
Application Case 3.6 British Telecom Uses Data Mining 101
3.8 Intelligent Agents for Consumers 102
Intelligent Agents for Products and Vendor Finding 103
Intelligent Agent for Information Search and Filtering 103
Negotiation Agents 104
Application Case 3.7 ZineZone Helps in Information Search 104
Negotiation Agents 105
Intelligent Agents for Customer Service 106
Learning Agents 106
3.9 Organizational Buyer Behavior 107
A Behavioral Model of an Organization Buyer 107
Management Issues 108
Summary 109
Keywords 110
Questions for Review 110
Questions for Discussion 111
Internet Exercises 111
Team Exercises 112
Real World Case:Kansas City Power and Light Company 113
References 114
Appendix 3A Example of an Online Market Research Tool for Segmentation 116
CHAPTER 4 Advertisement in Electronic Commerce 117
4.1 CD-Max Uses E-Mail Lists to Advertise 117
Chapter 4 Advertisement in Electronic Commerce 117
4.2 Web Advertisement 118
On Overview 118
Internet Advertising Terminology 119
Why Internet Advertisement 120
The Internet versus Traditional Methods 121
Internet is the Fastest Growing Medium in History 122
Objectives and Growth of Internet Advertisement 122
Targeted(One-to-One)Advertisement 123
Types of Internet Advertisement 123
4.3 Advertisement Methods 123
Banners 123
Application Case 4.1 Procter Gamble Co s(P G)Interactive Marketing 123
Application Case 4.2 Targeted Advertisement:The Double Click Approach 124
Splash Screen 126
Spot Leasing 126
URL(Universal Resource Locators) 126
E-Mail 126
Chat Romms 127
Other Forms 128
4.4 Advertisement Strategies 128
Considerations in the Internet-Based Ad Design 128
Active Push Strategy 129
Passive Full Strategy 129
Associated Ad Display Strategy 130
Ads as a Commodity 130
Implementing the Strategies 132
Customizing Ads 132
Interactive Ad Strategies 132
Comparison Ads as a Medium of Advertisement 132
Attracting Visitors to a Site 134
Online Events,Promotions,and Attractions 135
Application Case 4.3 How to Entice Web Surfers to Read Internet Ads 136
Bargains,Special Sales,and Financial Incentives 136
4.5 Push Technology and Intelligent Agents 137
Push Technology 137
Push on the Intranet 138
The Future of Push Technology 138
Intelligent Agents 139
Application Case 4.4 Fujitsu Uses Agents for Targeted Advertising in Japan 139
4.6 Economics and Effcetiveness of Advertisement 140
Exposure Models That are Based on CpMs 140
Click-Through 140
Interactivity 140
Achual Purchase 141
Other Methods 141
4.7 Online Catalogs 142
Evolution of Online Catalogs 142
Comparison of Online Catalogs With Paper Catalogs 142
Advertising in Online Catalogs Versus Electronic Malls 143
Application Case 4.5 AMP s Online Catalogs Cut the Cost to One-Sixth 144
Customized Catalogs 144
4.8 Special Advertisement Topics 145
How Much to Advertise? 145
Application Case 4.6 Electronic Catalogs at Boise Cascade:B2B 146
Auditing and Analyzing Web Traffic 147
Internet Standards 147
Application Case4.7 Sample of an Audit Report 148
Localization 148
The Major Web Ad Players 149
4.9 Managerial Issues 150
Summary 150
Keywords 151
Questions for Review 152
Questions for Discussion 152
Internet Exercises 152
Team Assignments 153
Exercises 154
Real World Case:Chevron s World of Car Characters 155
References 156
CHAPTER 5 Electronic Commerce for Service Industries 157
5.1 Ordering Journals Electronically 157
Chapter 5 Electronic Commerce for Service Industries 157
5.2 Broker-Based Services 158
Service Industries versus Manufacturing and Product Retailing 159
5.3 Travel and Tourism Services 159
Benefits and Limitations 160
Services Provided 160
Corporate Travel 161
Application Case 5.1 Carlson Travel and American Express Automate Corporate Travel 161
The Impact of EC on the Travel Industry 162
Application Case 5.2 Zeus Tours and Yacht Cruises Inc.Uses EC 163
The Future 163
5.4 Employment Placement and the Job Market 164
Driving Forces of the Electronic Job market 164
The Internet Job Market 165
The Advantage of the Electronic Job Market 165
Application Case 5.3 Web Site Matches Workers with Jobs in the Philippines 166
The Limitations of the Electronic Job Markets 166
Examples of Services on the Net 166
Example of Career Services on the Net 167
Intelligent Agents 167
5.5 Real Estate:From Virtual Realtors to Virtual Reality 168
Application Case 5.4 Finding Super Deals 169
Real Estate Applications 169
Application Case 5.5 How One Deal More than Paid for the Web Site of Colliers Arnold 170
5.6 Trading Stocks Online 170
Online Stock Trading 170
Investment Information 171
Initial Public Offerings(IPOs)and the Internet 173
Related Markets 173
Individual Investors and Day Trading 173
5.7 Cyberbanking and Personal Finance 173
Application Case 5.6 Cyberbanking at Wells Fargo 174
Implementation Issuses in Banking and Online Trading 175
Application Case 5.7 Security at Bank of America Online 176
Billing Online 178
5.8 Auctions:From Theory to Practice 179
Types of Auctions 179
Electronic Auctions 179
Benefits and Limiitations 181
Impacts 181
Business-to-Business Auctions 181
5.9 Online Publishing,Knowledge Dissemination,and Other Services 183
Online Publishing 183
Knowledge Dissemination 184
Application Case 5.8 Interactive MBA at City University of Hong Kong 185
Other Services Online 186
5.10 the Impact on Intermediaries and Their Changing Roles 187
5.11 Managerial Issues 189
Summary 189
Keywords 191
Questions for Review 191
Questions for Discussion 191
Internet Exercises 192
Team Exercises 193
Real World Case:Cushman and Wakefield Uses an Intranet to Communicate Effectively 194
Real world Case:Web Takes Banking to Sea 195
References 195
CHAPTER 6 Business-to-Business Electronic Commerce 197
6.1 Procurement Revolution at General Electric 197
Chapter 6 Business-to-Business Electronic Commerce 197
TPN at GE Lighting Division 198
Benefits of TPN 198
Side Benefits to Suppliers 198
Open as a Public Bidding Site 199
6.2 Characteristics of B2B EC 199
Supply Chain 199
Entities of B2B EC 201
6.3 Models of B2B EC 203
Supplier-Oriented Marketplace 204
Buyer-Oriented Marketplace 205
Intermediary-Oriented Marketplace 206
Virtual Corporation:Networking Between Business Partners 207
Networking Between Headquarters and Subsidiaries 207
Application Case 6.1 Marriott International s Extranet Links Global Franchisees 208
Online Services to Business 208
6.4 Procurement Management Using the Buyer s Internal Marketplace 209
Buyer s Internal Marketplace 209
Issues in Procurement Management 210
Inefficiency in Procurement Management 210
Godls of Procurement Reengineering 210
The Major Solution:B2B EC 210
Application Case 6.2 MasterCard s Procurement Card Case 211
Customer s Internal Marketplace Cases 211
6.5 Supplier-Oriented Marketplace:Cisco Connection Online Case 211
Cisco Connection Online 211
6.6 Buyer-Oriented Marketplace:GE s TPN Case Revisited 213
Electronic Bidding Process 213
Benefits to Buyers 213
Benefits to Sellers 214
Lessons 214
6.7 Intermediary-Oriented Marketplace:Boeing s PART Case 214
Goal of Boeing s PART Page 214
Spare Parts Business Using Traditional EDI 215
Debut PART Page on the Internet 215
Benefits of PART Page 215
Portable Access to Technical Drawings/Support 215
Benefits to Boeing s Customers 216
6.8 Just-In-Time Delivery:FedEx InterNetShop Case 216
Why JIT Delivery for B2B EC 216
FedEx:A Delivery Company 216
FedEx on the Internet for Customer s Tracking Request 217
Proprietary Network for Progress Entry:COSMOS 217
Valued-Added Service to Ensure the Customer s Delivery Commitment 217
Supporting Customer s Tailored Tracking System 217
Benefits to FedEx 217
Application Case 6.3 Outsourcing On-Time Delivery:National Semiconductor Experience 218
6.9 Other B2B Models,Auctions,and Services 218
Business-to-Business Auctions 218
Managed Interactive Bidding 219
Facilitating Auctions and Bartering 219
Application Case 6.4 How Freemarket Operates:A New B2B Model 220
Business-to-Business Services 221
6.10 From Traditional to Internet-Based EDI 222
Traditional EDI 222
Internet-Based EDI 224
6.11 Integration with Back-End Information Systems 225
Enterprice Resource Planning System 226
6.12 The Role of Software Agents for B2B EC 227
Agent s Role in the Seller-Oriented Marketplace 227
Agent s Role in the Buyer-Oriented Marketplace 228
6.13 Elcetronic Marketing in B2B 228
Relationship Marketing 229
Direct Marketing to Reach Functional Buyers 229
Internet Marketing Strategies 230
How to Build Your E-Mail Lists and Marketing Database 230
Electronic/Interactive Media 230
Audience Strategy and Mailing Lists 230
6.14 Solutions of B2B EC 231
6.15 Managerial Issues 233
Summary 234
Keywords 235
Questions for Review 235
Questions for Discussion 236
Questions for Cases 236
Team Exercises 237
Internet Exercises 237
Real World Case:Fruit of the Loom s Distributors 238
References 238
CHAPTER 7 Intranet and Extranet 240
7.1 Automotive Network Exchange-The Largest Extranet 240
Chapter 7 Intranet and Extranet 240
Benefits of ANX 240
Virtually Private Network for ANX 241
7.2 Architecture of the Internet,Intranet,and Extranet 241
The Internet 241
The Intranet:An Intra Business Delivery System 242
The Extranet 242
Roads Ahead 243
7.3 Intranet Software 243
7.4 Applications of Intranets 244
Generic Functions of Intranet 244
Intranet Application Areas 244
Industry-Specific Intranet Solutions 245
7.5 Intranet Application Case Studies 246
Intranet Case Studies with ROI Analysis 246
Short Intranets Application Cases 246
Share Knowledge Among Corporate Employees:Coopers and Lybrand 247
7.6 Considerations in Intranet Deployment 248
7.7 The Extranets 248
Basic Concept of Extranets 248
Application Case 7.1 Toshiba s Extranet Keeps Dealers on Time 249
Planning Extranets:Coordination and Security 250
Potential of the Extranet Market 250
7.8 The Structure of Extranets 251
Elements of Extranet 251
7.9 Extranet Products and Services 251
Categories of Extranet Products and Services 251
Extranet Tools and Services Providers 252
7.10 Applications of Extranets 252
Benefits of Extranets 252
Industry Specific Extranet Solutions 253
7.11 Business Models of Extranet Applications 253
Connect Business Customers to Sell Parts:AMP 253
Connect Dealer s Kiosk:General Motors 254
Connect with Suppliers for Purchases:VHA,Inc. 254
Tracking Shipping Status:CSX Technology 255
Reduce Design Cycle Time by Connecting Suppliers:Adaptec,Inc. 255
Reduce Product Development Time by Connecting Suppliers: Caterpillar,Inc. 256
Link the Worldwide Chains Employees:Kinko s,Inc. 256
Link Business Partners:Countrywide Home Loan 256
Embedded Extranet:FedEx s Extranet Embedded in Cisco 257
Connect with Service Institutions:IntraLoan 257
7.12 Managerial Issues 258
Summary 259
Keywords 259
Questions for Review 260
Questions for Discussion 260
Internet Exercises 260
Team Exercises 261
Real World Case:Cadence Design Systems--ROI of Intranet 1.766 Percent 262
References 263
Appendix 7.1 Industry-Specific Intranet Solutions 265
Appendix 7.2 Industry-Spceific Extranet Solutions 269
Chapter 8 Electronic Payment Systems 274
CHAPTER 8 Electronic Payment Systems 274
8.1 Is SET a Failure? 274
8.2 Electronic Payments and Protocols 275
Secure Electronic Transaction Protocol for Credit Card Payment 275
Application Case 8.1 Merchants Offer Multiple Payment Options 277
Electronic Fund Transfer and Debit Card on the Internet 277
Stored-Value Cards and E-Cash 277
Electronic Check Systems 278
8.3 Security Schemes in Electronic Payment Systems 278
Security Schemes 278
Application Case 8.2 10 Tips for Selecting a CA 282
Secure Socket Layer Protocol 282
8.4 Electronic Credit Card System on the Internet 284
The Players 284
The Process of Using Credit Cards 284
Secure Electronic Transaction Protocol 285
Electronic Wallet 286
Storage of Certificates 286
Secure Socket Layer Protocol for Electronic Payment 287
8.5 Electronic Fund Transfer and Debit Cards on the Internet 287
Electronic Fund Transfer 287
Debit Card 288
Application Case 8.3 Bank Online and Security Tips 289
Financial EDI 290
8.6 Stored-Value Cards and E-Cash 291
Smart Cards 291
Application Case 8.4 Mondex Makes Shopping Easy 291
Representation of E-Cash Systems 292
Closed versus Open E-Cash System 293
Contact versus Contactless IC Cards 293
Integrating Internet and Non-Internet Payment Systems 293
Application Case 8.5 Smart Tollway:Highway 91 294
Ceiling of Stored Values and Multiple Currencies 295
8.7 Electronic Check Systems 295
8.8 Unified Payment Systems 296
Integrating Payment Methods 296
How Many Cards Are Appropriate? 297
8.10 Managerial Issues 298
8.9 Prospect of Electronic Payment Systems 298
Summary 299
Keywords 299
Questions for Review 299
Questions for Discussion 300
Internet Exercises 300
Team Exercises 301
Real World Case:Transportation Cards in the Big Cities 302
References 303
Chapter 9 EC Strategy and Implementation 305
9.1 IBM s E-Business s Strategy 305
CHAPTER 9 EC Strategy and Implementation 305
9.2 Strategic Planning for EC 306
Industry and Competitive Analysis 308
Strategy Formulation 309
Critical Success Factors for EC 310
A Value Analysis Approach 310
Application Case 9.1 Value Analysis Questions 311
Return on Investment and Risk Analysis 312
Application Case 9.2 Lockheed Martin Uses Ec to Compete 313
Application Case 9.3 Marriott s Analysis Emphasizes Shareholders Values 314
Electronic Commerce Scenarios 314
Strategic Planning Framework:Competitive versus Cooperative Strategies 314
9.3 Electronic Commerce Strategy in Action 317
What Questions a Strategic Plan Should Answer 317
The Steps to Successful EC Programs 318
9.4 Competitive Intelligence on the Internet 321
Using the Internet to Conduct Competitive Intelligence 321
Application Case 9.4 Competitive Intelligence on the Internet 321
Using Push Technology for Competitive Intelligence 322
9.5 Implementation:Plans and Execution 322
A Pilot Project 323
Electronic Commerce Leadership 323
Application Case 9.5 Examples of Market Leaders 324
Uncovering Specific Ec Opportunities and Applications 324
Creating a Web Team and Assigning Functional Skills to Subprojects 325
Evaluating Outsourcing 326
Application Case 9.6 Strategic Directions at Schubb Crop. 326
Application Case 9.7 AT T s Cyberspace Solution Helps Businesses Conduct Commerce on the Internet 328
Web Content Design 328
Security and Control in EC 329
9.6 Project and Strategy Assessment 329
Need for Assessment 329
Measuring Results 330
Collecting Information 330
Finalization 331
9.7 Managerial Issues 332
Summary 332
Keywords 333
Questions for Review 333
Questions for Discussion 333
Internet Exercises 334
Team Exercises 334
Real World Case 9.1:Wizards of the Coast.Inc. 336
Real World Case 9.2:SkyMall s EC Strategy 337
References 339
Chapter 10 Public Policy:From Legal Issues to Privacy 340
CHAPTER 10 Public Policy:From Legal Issues to Privacy 340
10.1 EC-Related Legal Incidents 340
Contractual Issues in EC 340
Copyright Infringement on the Web 341
10.2 Legal,Ethical,and Other Public Policy Issues 341
Legal and Ethical Issues:An Overview 342
Ethical Issues 342
10.3 Protecting Privacy 343
Privacy Issues 345
How is Private Information Collected? 345
Privacy Protection 347
Protecting Your Privacy 348
Application Case 10.1 Case of Microsoft and Geo Cities Privacy Policies 349
Federal Trade Commission(FTC)Audit 350
Movement of Advocate Groups and Industry 351
Electronic Privacy Information Center(EPIC) 351
Privacy Policy Basics-A Sample 352
10.4 Protecting Intellectual Property 352
Copyrights 353
Application Case 10.2 Copyright Protection versus Free Speech on the Internet 354
Domain Names 355
10.5 Free Speech,Internet Indecency,and Censorship 356
The Free Speech Versus Censorship Issue 356
Protecting Children 357
Controlling Spamming 360
10.6 Taxation and Encryption Policies 361
Taxation Policies 361
Encryption Policy 362
10.7 Other Legal Issues:Contracts,Gambling,and More 364
Application Case 10.3 Linking to Your Web Site 365
Electronic Contracts 365
Gambling 366
10.8 Consumer and Seller Protection in EC 367
Fraud on the Internet 367
Application 10.4 How David Lee Was Cheated by an International Investment Group 368
Buyer Protection 369
Third-Party Services 370
Application Case 10.5 Internet Shopping Rights 370
Authentication and Biometric Controls 371
Sellers Protection 372
10.9 Managerial Issues 373
Summary 374
Keywords 375
Questions for Review 375
Questions for Discussion 376
Exercises and Debates 377
Internet Exercises 378
Team Assignments 379
References 379
CHAPTER 11 Infrastructure for EC 381
11.1 It Takes More than Technology 381
Virtual Vineyards:Where Content is the Key 381
Chapter 11 Infrastructure for EC 381
United Parcel Service(UPS)Servicing the Masses 383
11.2 A Network of Networks 385
11.3 Internet Protocols 386
TCP/IP 386
Domain Names 388
Internet Client/Server Applications 388
New World Network:Internet2 and Next Generation Internet(NGI) 389
11.4 Web-Based Client/Server 390
Hyper Text Transport Protocol 390
Web Browsers 391
Application Case 11.1 Left Your Browser Behind? Soon a Kiosk May be Coming to the Rescue 392
Web Servers 393
Commercial Web Servers 393
Web Server Usage Survey 394
11.5 Internet Security 395
Cornerstones of Security 395
Encryption 396
Digital Signatures:Authenticity and Nondenial 398
Digital Certificates and Certificate Authorities(CAs) 399
Secure Electronic Transactions 400
Firewalls:Access Control 400
Secure Socket Layer 400
Application Case 11.2 E-Commerce Sites Top Hacker Hit List 402
Virtual Private Networks 403
11.6 Selling on the Web 404
Functional Requirements 404
Electronic Commerce Solutions:Outsourcing versus Insourcing 405
Electronic Catalogs and Merchant Servers 407
Electronic Commerce Suites 408
11.7 Chatting on the Web 410
11.8 Multimedia Delivery 412
Webcasting 412
Bandwidth Requirements for Streaming Audio and Video 414
Internet Telephones 414
Application Case 11.3 V-Commerce:The Next Frontier? 416
11.9 Analyzing Web Visits 417
11.10 Managerial Issues 417
Summary 418
Keywords 419
Questions for Review 420
Questions for Discussion 420
Internet Exercises 421
Team Exercises 422
Real World Case:Internet Bookseller Realizes 440 Percent Internet Sales Growth 423
References 423
Chapter 12 Economics,Global,and Other Issues in EC 425
CHAPTER 12 Economics,Global,and Other Issues in EC 425
12.1 Electronic Distribution of Music by N2K 425
12.2 Marketplace versus Marketspace 426
12.3 The Components of Digital Economics 428
12.4 Competition in Marketspace 429
Application Case 12.1 Amazon.com versus Barnes Noble 430
Application Case 12.2 Strong Competition in Selling Books,Music And Videos 432
12.5 Some Issues in Digital Economy and Success Factors 433
The Need for a Critical Mass of Buyers and Sellers 433
Quality Uncertainty and Quality Assurance 434
Pricing on the Internet 435
Contributors to Electronic Market Success 436
12.6 Impacts on Industry Structure,Intermediaries,and Others 437
The Roles and Value of Brokers in E-Markets 438
Potential Winners and Losers in EC 440
12.7 Virtual Communities 442
The Internet Communities 442
12.8 Global Electronic Commerce 445
Barriers to Global EC 445
The U.S.Policy Regarding Global EC 447
Application Case 12.3 Small Businesses and Global Trade 448
12.9 Electronic Commerce in Small Companies 449
Supporting Small Businesses 450
Application Case 12.4 Korean Government Helps Online Business 451
12.10 Research in EC 452
Behavioral Topics 452
Suggested Technical Topics 452
Suggested Managerial Research Types 452
Internet Usage 454
Opportunities for Buying 454
Purchasing Incentives 454
Increased Security and Trust 454
12.11 The Future of EC 454
Efficient Information Handling 454
Innovative Organizations 454
Virtual Communities 455
Payment Systems 455
Business-to-Business 455
Technology Trends 455
Summary 456
Keywords 457
Questions for Review 457
Questions for Discussion 458
Internet Exercises 458
Team Assignment 459
Real World Case 1:Chemdex Brings Efficiencies to Chemical Market 460
Real World Case 2:New Entrants to the Dutch Flower Market 461
References 462
APPENDIX A Creating Web Pages 463
A.1 HyperText Markup Language(HTML) 463
Simple Example 463
Appendix A Creating Web Pages 463
Linking One Page to Another with Anchor Tags 466
Overview of HTML Tags 466
Adding Images to a Page 467
Displaying Data and Controlling Page Layout with Tables 469
Controlling Navigation with Frames 471
Sending Information to the Web:Universal Resource Locators versus Forms 472
A.2 HTML Editors 473
A.3 Cascading Style Sheets and Dynamic HTML 474
A.4 Virtual Reality Modeling Language(VRML) 475
A.5 The Coming of XML and XSL 477
References 482
Appendix B Web Programming:Adding Desktop Interactivity and Dynamic Data Access 483
APPENDIX B Web Programming:Adding Desktop Interactivity and Dynamic Data Access 483
B.1 Desktop Interactivity and Processing 483
Java 484
JavaScript and the Document Object Model(DOM) 486
A Word About Active X and VBS cript 489
B.2 Delivering Dynamic Content 489
Common Gateway Interface Programming 489
Database Gateways 491
Alternative APIs 491
Server-Side Scripting 492
Maintaining State:Cookies,Hidden Fields,and Other Tricks 492
References 494
APPENDIX C Software Agents 495
C.1 Why Software Agents for EC,Especially Now? 495
Information Overload 495
Appendix C Software Agents 495
Delegate,Do Not Navigate 496
Value of Software Agents in a Networked World 496
C.2 Brief History of Intelligent Agents 497
C.3 Definitions 497
Reactivity 498
Temporal Continuity 498
Goal Drives 498
C.5 Simple Software Agents:How Do They Work? 498
Autonomy 498
C.4 Characteristics of Software Agents:The Essentials 498
Automating a Single Set of Tasks within a Single Application 498
C.6 Learning Agents 499
Value of Learning Agents 501
Learning Agents:An Example 501
C.7 Keeping Up with and Watching Out for the Future 501
References 503
Glossary 505
Glossary 505
Index 513
Index 513