Cover image for Electronic commerce
Title:
Electronic commerce
Personal Author:
Edition:
7th annual ed.
Publication Information:
Australia : Course Technology, 2007
ISBN:
9781418837037

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Library
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Item Category 1
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30000010105483 HF5548.32 S36 2007 Open Access Book Book
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30000010133909 HF5548.32 S36 2007 Open Access Book Book
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Summary

Summary

Electronic Commerce, Seventh Edition covers emerging online technologies and trends and their influence on the electronic commerce marketplace. This edition highlights important security issues, such as spam and phishing, their role in organized crime and terrorism, identity theft, and online payment fraud. The pedagogical value of this new edition is enhanced through a fresh 4-color interior, and new and updated material that balances the technological with the strategic aspects of successful e-commerce.


Author Notes

Gary Schneider is an Associate Professor of Accounting and Information Systems at the University of San Diego School of Business


Table of Contents

Prefacep. xvii
Part 1 Introduction
Chapter 1 Introduction to Electronic Commercep. 2
Electronic Commerce: The Second Wavep. 4
Electronic Commerce and Electronic Businessp. 5
Categories of Electronic Commercep. 5
The Development and Growth of Electronic Commercep. 8
The Dot-Com Boom, Bust, and Rebirthp. 9
The Second Wave of Electronic Commercep. 11
Business Models, Revenue Models, and Business Processesp. 14
Focus on Specific Business Processesp. 14
Role of Merchandisingp. 15
Product/Process Suitability to Electronic Commercep. 15
Advantages of Electronic Commercep. 17
Disadvantages of Electronic Commercep. 18
Economic Forces and Electronic Commercep. 20
Transaction Costsp. 21
Markets and Hierarchiesp. 22
Using Electronic Commerce to Reduce Transaction Costsp. 24
Network Economic Structuresp. 24
Network Effectsp. 25
Using Electronic Commerce to Create Network Effectsp. 26
Identifying Electronic Commerce Opportunitiesp. 26
Strategic Business Unit Value Chainsp. 26
Industry Value Chainsp. 28
SWOT Analysis: Evaluating Business Unit Opportunitiesp. 30
International Nature of Electronic Commercep. 31
Trust Issues on the Webp. 32
Language Issuesp. 33
Culture Issuesp. 34
Culture and Governmentp. 36
Infrastructure Issuesp. 38
Summaryp. 41
Key Termsp. 41
Review Questionsp. 42
Exercisesp. 42
Casesp. 43
For Further Study and Researchp. 47
Chapter 2 Technology Infrastructure: The Internet and the World Wide Webp. 51
The Internet and the World Wide Webp. 53
Origins of the Internetp. 54
New Uses for the Internetp. 54
Commercial Use of the Internetp. 55
Growth of the Internetp. 56
Emergence of the World Wide Webp. 57
Packet-Switched Networksp. 60
Routing Packetsp. 60
Internet Protocolsp. 62
TCP/IPp. 62
IP Addressingp. 63
Domain Namesp. 64
Web Page Request and Delivery Protocolsp. 66
Electronic Mail Protocolsp. 66
Unsolicited Commercial E-Mail (UCE, Spam)p. 67
Markup Languages and the Webp. 68
Standard Generalized Markup Languagep. 69
Hypertext Markup Languagep. 70
Extensible Markup Language (XML)p. 76
HTML and XML Editorsp. 81
Intranets and Extranetsp. 82
Intranetsp. 82
Extranetsp. 83
Public and Private Networksp. 83
Virtual Private Network (VPN)p. 84
Internet Connection Optionsp. 85
Connectivity Overviewp. 85
Voice-Grade Telephone Connectionsp. 86
Broadband Connectionsp. 86
Leased-Line Connectionsp. 88
Wireless Connectionsp. 88
Internet2 and the Semantic Webp. 92
Summaryp. 94
Key Termsp. 95
Review Questionsp. 97
Exercisesp. 97
Casesp. 98
For Further Study and Researchp. 101
Part 2 Business Strategies for Electronic Commerce
Chapter 3 Selling on the Web: Revenue Models and Building a Web Presencep. 106
Revenue Modelsp. 107
Web Catalog Revenue Modelsp. 108
Digital Content Revenue Modelsp. 115
Advertising-Supported Revenue Modelsp. 117
Advertising-Subscription Mixed Revenue Modelsp. 121
Fee-for-Transaction Revenue Modelsp. 122
Fee-for-Service Revenue Modelsp. 130
Revenue Models in Transitionp. 132
Subscription to Advertising-Supported Modelp. 133
Advertising-Supported to Advertising-Subscription Mixed Modelp. 133
Advertising-Supported to Fee-for-Services Modelp. 133
Advertising-Supported to Subscription Modelp. 134
Multiple Transitionsp. 134
Revenue Strategy Issuesp. 136
Channel Conflict and Cannibalizationp. 137
Strategic Alliances and Channel Distribution Managementp. 138
Mobile Commercep. 139
Creating an Effective Web Presencep. 140
Identifying Web Presence Goalsp. 140
Achieving Web Presence Goalsp. 141
Web Site Usabilityp. 146
How the Web Is Differentp. 146
Meeting the Needs of Web Site Visitorsp. 147
Trust and Loyaltyp. 149
Rating Electronic Commerce Web Sitesp. 150
Usability Testingp. 150
Customer-Centric Web Site Designp. 151
Connecting with Customersp. 151
The Nature of Communication on the Webp. 152
Summaryp. 155
Key Termsp. 155
Review Questionsp. 156
Exercisesp. 157
Casesp. 157
For Further Study and Researchp. 161
Chapter 4 Marketing on the Webp. 165
Web Marketing Strategiesp. 167
Product-Based Marketing Strategiesp. 168
Customer-Based Marketing Strategiesp. 170
Communicating with Different Market Segmentsp. 171
Trust and Media Choicep. 172
Market Segmentationp. 173
Market Segmentation on the Webp. 175
Offering Customers a Choice on the Webp. 176
Beyond Market Segmentation: Customer Behavior and Relationship Intensityp. 176
Segmentation Using Customer Behaviorp. 176
Customer Relationship Intensity and Life-Cycle Segmentationp. 179
Acquisition, Conversion, and Retention of Customersp. 181
Customer Acquisition, Conversion, and Retention: The Funnel Modelp. 183
Advertising on the Webp. 184
Banner Adsp. 185
Other Web Ad Formatsp. 189
Site Sponsorshipsp. 190
Effectiveness of Online Advertisingp. 190
E-Mail Marketingp. 191
Permission Marketingp. 191
Combining Content and Advertisingp. 192
Outsourcing E-Mail Processingp. 192
Technology-Enabled Customer Relationship Managementp. 193
CRM as a Source of Value in the Marketspacep. 193
Creating and Maintaining Brands on the Webp. 195
Elements of Brandingp. 195
Emotional Branding vs. Rational Brandingp. 196
Brand Leveraging Strategiesp. 197
Brand Consolidation Strategiesp. 197
Costs of Brandingp. 197
Affiliate Marketing Strategiesp. 198
Viral Marketing Strategiesp. 199
Search Engine Positioning and Domain Namesp. 201
Search Engines and Web Directoriesp. 201
Paid Search Engine Inclusion and Placementp. 202
Web Site Naming Issuesp. 204
Summaryp. 207
Key Termsp. 207
Review Questionsp. 209
Exercisesp. 209
Casesp. 210
For Further Study and Researchp. 213
Chapter 5 Business-to-Business Strategies: From Electronic Data Interchange to Electronic Commercep. 217
Purchasing, Logistics, and Support Activitiesp. 219
Purchasing Activitiesp. 220
Direct vs. Indirect Materials Purchasingp. 222
Logistics Activitiesp. 223
Support Activitiesp. 225
E-Governmentp. 226
Network Model of Economic Organizationp. 228
Electronic Data Interchangep. 229
Early Business Information Interchange Effortsp. 230
Emergence of Broader EDI Standardsp. 231
How EDI Worksp. 232
Value-Added Networksp. 237
EDI on the Internetp. 239
Open Architecture of the Internetp. 240
Financial EDIp. 241
Supply Chain Management Using Internet Technologiesp. 242
Value Creation in the Supply Chainp. 242
Increasing Supply Chain Efficienciesp. 244
Using Materials-Tracking Technologies with EDI and Electronic Commercep. 245
Creating an Ultimate Consumer Orientation in the Supply Chainp. 247
Building and Maintaining Trust in the Supply Chainp. 247
Electronic Marketplaces and Portalsp. 248
Independent Industry Marketplacesp. 248
Private Stores and Customer Portalsp. 251
Private Company Marketplacesp. 251
Industry Consortia-Sponsored Marketplacesp. 252
Summaryp. 254
Key Termsp. 254
Review Questionsp. 255
Exercisesp. 256
Casesp. 256
For Further Study and Researchp. 259
Chapter 6 Online Auctions, Virtual Communities, and Web Portalsp. 263
Auction Overviewp. 264
Origins of Auctionsp. 265
English Auctionsp. 265
Dutch Auctionsp. 266
First-Price Sealed-Bid Auctionsp. 267
Second-Price Sealed-Bid Auctionsp. 267
Open-Outcry Double Auctionsp. 267
Sealed-Bid Double Auctionsp. 268
Reverse (Seller-Bid) Auctionsp. 268
Online Auctions and Related Businessesp. 269
General Consumer Auctionsp. 270
Specialty Consumer Auctionsp. 276
Consumer Reverse Auctions and Group Purchasing Sitesp. 276
Business-to-Business Auctionsp. 279
Business-to-Business Reverse Auctionsp. 283
Auction-Related Servicesp. 284
Virtual Communities and Web Portalsp. 288
Mobile Communications Technologyp. 289
Mobile Businessp. 290
Intelligent Software Agentsp. 290
Virtual Communitiesp. 291
Early Web Communitiesp. 292
Web Community Consolidationp. 294
Web Communities in the Second Wave of Electronic Commercep. 294
Revenue Models for Web Portals and Virtual Communitiesp. 296
Summaryp. 300
Key Termsp. 300
Review Questionsp. 301
Exercisesp. 302
Casesp. 303
For Further Study and Researchp. 305
Chapter 7 The Environment of Electronic Commerce: Legal, Ethical, and Tax Issuesp. 309
The Legal Environment of Electronic Commercep. 311
Borders and Jurisdictionp. 311
Jurisdiction on the Internetp. 314
Conflict of Lawsp. 317
Contracting and Contract Enforcement in Electronic Commercep. 318
Use and Protection of Intellectual Property in Online Businessp. 322
Web Site Content Issuesp. 322
Domain Names, Cybersquatting, and Name Stealingp. 326
Protecting Intellectual Property Onlinep. 327
Defamationp. 328
Deceptive Trade Practicesp. 329
Advertising Regulationp. 329
Online Crime, Terrorism, and Warfarep. 331
Online Crimep. 331
Online Warfare and Terrorismp. 333
Ethical Issuesp. 333
Ethics and Web Business Policiesp. 334
Privacy Rights and Obligationsp. 334
Communications with Childrenp. 339
Taxation and Electronic Commercep. 340
Nexusp. 341
U.S. Income Taxesp. 341
U.S. State Sales Taxesp. 342
European Union Value Added Taxesp. 343
Summaryp. 344
Key Termsp. 345
Review Questionsp. 345
Exercisesp. 346
Casesp. 346
For Further Study and Researchp. 349
Part 3 Technologies for Electronic Commerce
Chapter 8 Web Server Hardware and Softwarep. 354
Web Server Basicsp. 356
Types of Web Sitesp. 356
Web Clients and Web Serversp. 357
Dynamic Contentp. 358
Various Meanings of "Server"p. 360
Web Client/Server Communicationp. 361
Two-Tier Client/Server Architecturep. 361
Three-Tier and N-Tier Client/Server Architecturesp. 362
Software for Web Serversp. 363
Operating Systems for Web Serversp. 364
Web Server Softwarep. 364
Finding Web Server Software Informationp. 367
Electronic Mail (E-Mail)p. 367
E-Mail Benefitsp. 367
E-Mail Drawbacksp. 367
Spamp. 368
Solutions to the Spam Problemp. 369
Web Site and Internet Utility Programsp. 377
Finger and Ping Utilitiesp. 378
Tracert and Other Route-Tracing Programsp. 378
Telnet and FTP Utilitiesp. 379
Indexing and Searching Utility Programsp. 380
Data Analysis Softwarep. 380
Link-Checking Utilitiesp. 380
Remote Server Administrationp. 381
Web Server Hardwarep. 381
Server Computersp. 381
Web Server Performance Evaluationp. 383
Web Server Hardware Architecturesp. 384
Summaryp. 388
Key Termsp. 388
Review Questionsp. 389
Exercisesp. 390
Casesp. 390
For Further Study and Researchp. 394
Chapter 9 Electronic Commerce Softwarep. 397
Web Hosting Alternativesp. 398
Basic Functions of Electronic Commerce Softwarep. 400
Catalog Displayp. 401
Shopping Cartp. 403
Transaction Processingp. 407
Advanced Functions of Electronic Commerce Softwarep. 407
Middlewarep. 407
Enterprise Application Integration and Databasesp. 408
Web Servicesp. 410
Integration with ERP Systemsp. 413
Electronic Commerce Software for Small and Midsize Companiesp. 415
Basic Commerce Service Providersp. 415
Mall-Style Commerce Service Providersp. 418
Estimated Operating Expenses for a Small Web Businessp. 420
Electronic Commerce Software for Midsize to Large Businessesp. 421
Web Site Development Toolsp. 421
Electronic Commerce Software for Large Businessesp. 423
Enterprise-Class Electronic Commerce Softwarep. 424
Customer Relationship Management Softwarep. 426
Supply Chain Management Softwarep. 428
Content Management Softwarep. 428
Knowledge Management Softwarep. 429
Summaryp. 430
Key Termsp. 430
Review Questionsp. 431
Exercisesp. 431
Casesp. 433
For Further Study and Researchp. 435
Chapter 10 Electronic Commerce Securityp. 438
Online Security Issues Overviewp. 440
Managing Riskp. 441
Computer Security Classificationsp. 442
Security Policy and Integrated Securityp. 442
Security for Client Computersp. 444
Cookiesp. 444
Web Bugsp. 447
Active Contentp. 447
Java Appletsp. 449
JavaScriptp. 449
ActiveX Controlsp. 450
Graphics and Plug-Insp. 450
Viruses, Worms, and Antivirus Softwarep. 451
Digital Certificatesp. 455
Steganographyp. 458
Physical Security for Clientsp. 458
Communication Channel Securityp. 459
Secrecy Threatsp. 459
Integrity Threatsp. 461
Necessity Threatsp. 462
Threats to the Physical Security of Internet Communications Channelsp. 463
Threats to Wireless Networksp. 463
Encryption Solutionsp. 464
Ensuring Transaction Integrity with Hash Functionsp. 471
Ensuring Transaction Integrity with Digital Signaturesp. 472
Guaranteeing Transaction Deliveryp. 473
Security for Server Computersp. 474
Web Server Threatsp. 474
Database Threatsp. 475
Other Programming Threatsp. 475
Threats to the Physical Security of Web Serversp. 476
Access Control and Authenticationp. 478
Firewallsp. 479
Organizations that Promote Computer Securityp. 481
CERTp. 482
Other Organizationsp. 482
Computer Forensics and Ethical Hackingp. 483
Summaryp. 484
Key Termsp. 485
Review Questionsp. 486
Exercisesp. 487
Casesp. 487
For Further Study and Researchp. 490
Chapter 11 Payment Systems For Electronic Commercep. 493
Online Payment Basicsp. 495
Payment Cardsp. 497
Advantages and Disadvantages of Payment Cardsp. 499
Payment Acceptance and Processingp. 499
Electronic Cashp. 503
Micropayments and Small Paymentsp. 504
Privacy and Security of Electronic Cashp. 504
Holding Electronic Cash: Online and Offline Cashp. 505
Advantages and Disadvantages of Electronic Cashp. 506
How Electronic Cash Worksp. 507
Providing Security for Electronic Cashp. 507
Electronic Cash Systemsp. 508
Electronic Walletsp. 513
Microsoft .NET Passportp. 514
Yahoo! Walletp. 514
W3C Micropayment Standards Development Activityp. 515
The ECML Standardp. 515
Stored-Value Cardsp. 517
Magnetic Strip Cardsp. 517
Smart Cardsp. 518
Internet Technologies and the Banking Industryp. 520
Check Processingp. 520
Phishing Attacksp. 521
Organized Crime, Identity Theft, and Phishing Attacksp. 523
Phishing Attack Countermeasuresp. 524
Summaryp. 526
Key Termsp. 526
Review Questionsp. 527
Exercisesp. 527
Casesp. 529
For Further Study and Researchp. 531
Part 4 Integration
Chapter 12 Planning for Electronic Commercep. 536
Planning Electronic Commerce Initiativesp. 537
Identifying Objectivesp. 538
Linking Objectives to Business Strategiesp. 538
Measuring Benefitsp. 539
Managing Costsp. 540
Comparing Benefits to Costsp. 547
Return on Investment (ROI)p. 547
Strategies for Developing Electronic Commerce Web Sitesp. 548
Internal Development vs. Outsourcingp. 549
Selecting a Hosting Servicep. 553
New Methods for Implementing Partial Outsourcingp. 554
Managing Electronic Commerce Implementationsp. 555
Project Managementp. 555
Project Portfolio Managementp. 557
Staffing for Electronic Commercep. 557
Postimplementation Auditsp. 560
Summaryp. 561
Key Termsp. 561
Review Questionsp. 562
Exercisesp. 562
Casesp. 563
For Further Study and Researchp. 566
Glossaryp. 569
Indexp. 601