E-Commerce 2018: Business, Technology, Society [Fourteenth edition] 013483951X, 9780134839516, 9781292251707, 1292251700

Table of contents :
Cover......Page 1
Title Page......Page 5
Copyright Page......Page 6
Preface......Page 7
Acknowledgments......Page 22
Brief Contents......Page 25
Contents......Page 27
Part 1: Introduction to E-commerce......Page 47
Learning Objectives......Page 48
Everything On Demand: The “Uberization” of E-commerce......Page 49
1.1. The First Thirty Seconds: Why You Should Study E-commerce......Page 53
What Is E-commerce?......Page 54
Technological Building Blocks Underlying E-commerce: the Internet, Web, and Mobile Platform......Page 55
Major Trends in E-commerce......Page 58
Insight on Technology: Will Apps Make the Web Irrelevant?......Page 59
1.3. Unique Features of E-commerce Technology......Page 62
Universal Standards......Page 64
Interactivity......Page 65
Personalization and Customization......Page 66
Social Technology: User-Generated Content and Social Networks......Page 67
Business-to-Consumer (B2C) E-commerce......Page 68
Business-to-Business (B2B) E-commerce......Page 69
Mobile E-commerce (M-commerce)......Page 70
Social E-commerce......Page 71
Local E-commerce......Page 72
1.5. E-commerce: A Brief History......Page 73
E-commerce 1995–2000: Invention......Page 74
E-commerce 2007–Present: Reinvention......Page 77
Assessing E-commerce: Successes, Surprises, and Failures......Page 78
Insight on Business: Startup Boot Camp......Page 79
Technology: Infrastructure......Page 83
Society: Taming the Juggernaut......Page 85
Insight on Society: Facebook and the Age of Privacy......Page 86
Behavioral Approaches......Page 88
Qualifications/Skills......Page 89
Possible First Interview Questions......Page 90
1.9. Case Study: Pinterest: A Picture Is Worth a Thousand Words......Page 92
Key Concepts......Page 96
Questions......Page 97
Projects......Page 98
References......Page 99
Learning Objectives......Page 100
Tweet Tweet: Will Twitter Ever Find a Business Model That Works?......Page 101
Value Proposition......Page 104
Revenue Model......Page 106
Market Opportunity......Page 107
Insight on Society: Foursquare: Check Your Privacy at the Door......Page 108
Competitive Environment......Page 110
Competitive Advantage......Page 111
Market Strategy......Page 112
Management Team......Page 113
Raising Capital......Page 114
Categorizing E-commerce Business Models: Some Difficulties......Page 116
Insight on Business: Crowdfunding Takes Off......Page 117
E-tailer......Page 119
Community Provider......Page 122
Content Provider......Page 123
Insight on Technology: Will the Connected Car Become the Next Hot Entertainment Vehicle?......Page 124
Transaction Broker......Page 126
Market Creator......Page 127
Service Provider......Page 128
E-distributor......Page 129
E-procurement......Page 130
Industry Consortia......Page 131
2.4. How E-commerce Changes Business: Strategy, Structure, and Process......Page 132
Industry Structure......Page 133
Industry Value Chains......Page 136
Firm Value Chains......Page 137
Firm Value Webs......Page 138
Business Strategy......Page 139
E-commerce Technology and Business Model Disruption......Page 141
Position: Assistant Manager of E-business......Page 144
Possible First Interview Questions......Page 145
2.6. Case Study: Dollar Shave Club: From Viral Video to $1 Billion in Just Five Years......Page 148
Key Concepts......Page 151
Projects......Page 153
References......Page 154
Part 2: Technology Infrastructure for E-commerce......Page 155
Learning Objectives......Page 156
Voice-Controlled Intelligent Digital Assistants: Will They Revolutionize E-commerce?......Page 157
3.1. The Internet: Technology Background......Page 160
The Evolution of the Internet: 1961—The Present......Page 162
Packet Switching......Page 166
IP Addresses......Page 168
Domain Names, DNS, and URLs......Page 170
Client/Server Computing......Page 171
The Internet “Cloud Computing” Model: Hardware and Software as a Service......Page 173
Other Internet Protocols and Utility Programs......Page 178
The Internet Backbone......Page 180
Tier 3 Internet Service Providers......Page 183
Who Governs the Internet?......Page 187
Insight on Society: Government Regulation and Surveillance of the Internet......Page 189
Limitations of the Current Internet......Page 192
The First Mile and the Last Mile......Page 193
Telephone-based versus Computer Network-based Wireless Internet Access......Page 194
Other Innovative Internet Access Technologies: Drones, Balloons, and White Space......Page 198
Declining Costs......Page 199
The Internet of Things......Page 200
Insight on Business: The Apple Watch: Bringing the Internet of Things to Your Wrist......Page 202
3.4. The Web......Page 204
Hypertext......Page 205
HyperText Markup Language (HTML)......Page 207
eXtensible Markup Language (XML)......Page 208
Insight on Technology: The Rise of HTML5......Page 209
Web Servers and Clients......Page 212
Web Browsers......Page 213
Messaging Applications......Page 214
Internet Telephony......Page 215
Search Engines......Page 216
Downloadable and Streaming Media......Page 219
Online Social Networks......Page 220
Wikis......Page 221
Intelligent Digital Assistants......Page 222
3.6. Mobile Apps: The Next Big Thing Is Here......Page 223
App Marketplaces......Page 224
Position: E-commerce Specialist......Page 225
Possible First Interview Questions......Page 226
3.8. Case Study: Akamai Technologies: Attempting to Keep Supply Ahead of Demand......Page 228
Key Concepts......Page 231
Projects......Page 233
References......Page 234
Learning Objectives......Page 236
The Wall Street Journal: Redesigning for Today’s Platforms......Page 237
Where’s the Money: Business and Revenue Model......Page 240
What Is the Ballpark? Characterize the Marketplace......Page 241
Where’s the Content Coming From?......Page 242
Know Yourself: Conduct a SWOT Analysis......Page 243
Develop an E-commerce Presence Map......Page 244
How Much Will This Cost?......Page 245
4.2. Building an E-commerce Presence: A Systematic Approach......Page 246
Planning: The Systems Development Life Cycle......Page 248
Systems Analysis/Planning: Identify Business Objectives, System Functionality, and Information Requirements......Page 249
Build Your Own versus Outsourcing......Page 250
Host Your Own versus Outsourcing......Page 254
Insight on Business: Weebly Makes Creating Websites Easy......Page 255
Testing the System......Page 257
Factors in Optimizing Website Performance......Page 258
4.3. Choosing Software......Page 259
Web Server Software......Page 260
Site Management Tools......Page 262
Dynamic Page Generation Tools......Page 263
Application Servers......Page 264
Online Catalog......Page 265
Merchant Server Software Packages (E-commerce Software Platforms)......Page 266
Choosing an E-commerce Software Platform......Page 267
4.4. Choosing Hardware......Page 268
Right-sizing Your Hardware Platform: The Demand Side......Page 269
Right-sizing Your Hardware Platform: The Supply Side......Page 270
Website Design: Basic Business Considerations......Page 273
Tools for Search Engine Optimization......Page 274
Common Gateway Interface (CGI)......Page 275
Java, Java Server Pages (JSP), and JavaScript......Page 276
ActiveX and VBScript......Page 277
Other Design Elements......Page 278
Personalization Tools......Page 279
4.6. Developing a Mobile Website and Building Mobile Applications......Page 280
Insight on Society: Designing for Accessibility......Page 281
Planning and Building a Mobile Presence......Page 283
Mobile Presence: Design Considerations......Page 284
Mobile Presence: Performance and Cost Considerations......Page 286
Position: UX Designer......Page 287
Insight on Technology: Carnival Cruise Ships Go Mobile......Page 288
Preparing for the Interview......Page 290
Possible First Interview Questions......Page 291
4.8. Case Study: Dick’s Sporting Goods: Taking Control of Its E-commerce Operations......Page 293
Key Concepts......Page 296
Questions......Page 298
References......Page 299
Learning Objectives......Page 300
Cyberwar: MAD 2.0......Page 301
5.1. The E-commerce Security Environment......Page 304
The Scope of the Problem......Page 305
The Underground Economy Marketplace: The Value of Information......Page 306
What Is Good E-commerce Security?......Page 308
Dimensions of E-commerce Security......Page 309
Ease of Use......Page 310
Public Safety and the Criminal Uses of the Internet......Page 311
5.2. Security Threats in the E-commerce Environment......Page 312
Malicious Code......Page 313
Phishing......Page 318
Hacking, Cybervandalism, and Hacktivism......Page 320
Credit Card Fraud/Theft......Page 321
Insight on Society: Equifax: Really Big Data Hacked......Page 322
Spoofing, Pharming, and Spam (Junk) Websites......Page 325
Sniffing and Man-in-the-Middle Attacks......Page 326
Denial of Service (DoS) and Distributed Denial of Service (DDoS) Attacks......Page 327
Poorly Designed Software......Page 328
Mobile Platform Security Issues......Page 330
Cloud Security Issues......Page 331
Insight on Technology: Think Your Smartphone Is Secure?......Page 332
Internet of Things Security Issues......Page 334
5.3. Technology Solutions......Page 335
Encryption......Page 336
Symmetric Key Cryptography......Page 337
Public Key Cryptography......Page 338
Public Key Cryptography Using Digital Signatures and Hash Digests......Page 339
Digital Envelopes......Page 340
Digital Certificates and Public Key Infrastructure (PKI)......Page 342
Limitations of PKI......Page 344
Secure Sockets Layer (SSL) and Transport Layer Security (TLS)......Page 345
Protecting Networks......Page 347
Proxy Servers......Page 348
Intrusion Detection and Prevention Systems......Page 349
Anti-Virus Software......Page 350
A Security Plan: Management Policies......Page 351
The Role of Laws and Public Policy......Page 353
Private and Private-Public Cooperation Efforts......Page 354
Government Policies and Controls on Encryption......Page 356
5.5. E-commerce Payment Systems......Page 357
Online Credit Card Transactions......Page 358
PCI-DSS Compliance......Page 360
Alternative Online Payment Systems......Page 361
Mobile Payment Systems: Your Smartphone Wallet......Page 362
Regulation of Mobile Wallets and Rechargeable Cards......Page 364
5.6. Electronic Billing Presentment and Payment......Page 365
Insight on Business: Bitcoin......Page 366
EBPP Business Models......Page 368
5.7. Careers in E-commerce......Page 369
The Position: Cybersecurity Threat Management Team Trainee......Page 370
Possible First Interview Questions......Page 371
5.8. Case Study: The Mobile Payment Marketplace: Goat Rodeo......Page 373
Key Concepts......Page 380
Questions......Page 382
References......Page 383
Part 3: Business Concepts and Social Issues......Page 387
Learning Objectives......Page 388
Video Ads: Shoot, Click, Buy......Page 389
Internet Traffic Patterns: The Online Consumer Profile......Page 392
Intensity and Scope of Usage......Page 393
Demographics and Access......Page 394
Community Effects: Social Contagion in Social Networks......Page 395
The Online Purchasing Decision......Page 396
Shoppers: Browsers and Buyers......Page 400
Intentional Acts: How Shoppers Find Vendors Online......Page 401
6.2. Digital Commerce Marketing and Advertising Strategies and Tools......Page 402
Strategic Issues and Questions......Page 403
Traditional Online Marketing and Advertising Tools......Page 405
Search Engine Marketing and Advertising......Page 408
Display Ad Marketing......Page 411
E-mail Marketing......Page 419
Viral Marketing......Page 422
Social, Mobile, and Local Marketing and Advertising......Page 423
Multi-channel Marketing: Integrating Online and Offline Marketing......Page 424
Other Online Marketing Strategies......Page 425
Insight on Business: Are the Very Rich Different from You and Me?......Page 426
Customer Retention Strategies......Page 428
Pricing Strategies......Page 432
6.3. Internet Marketing Technologies......Page 438
Insight on Technology: The Long Tail: Big Hits and Big Misses......Page 439
The Revolution in Internet Marketing Technologies......Page 441
Web Transaction Logs......Page 442
Supplementing the Logs: Cookies and Other Tracking Files......Page 443
Databases......Page 445
Insight on Society: Every Move You Take, Every Click You Make, We’ll Be Tracking You......Page 446
Data Warehouses and Data Mining......Page 448
Hadoop and the Challenge of Big Data......Page 449
Marketing Automation and Customer Relationship Management (CRM) Systems......Page 450
Online Marketing Metrics: Lexicon......Page 452
How Well Does Online Advertising Work?......Page 455
The Costs of Online Advertising......Page 458
Marketing Analytics: Software for Measuring Online Marketing Results......Page 460
The Position: Digital Marketing Assistant......Page 462
Preparing for the Interview......Page 463
Possible First Interview Questions......Page 464
6.6. Case Study: Programmatic Advertising: Real-Time Marketing......Page 465
Key Concepts......Page 469
Questions......Page 471
Projects......Page 472
References......Page 473
Learning Objectives......Page 476
Facebook: Putting Social Marketing to Work......Page 477
From the Desktop to the Smartphone and Tablet......Page 480
The Social, Mobile, Local Nexus......Page 482
7.2. Social Marketing......Page 483
The Social Marketing Process......Page 484
Facebook Marketing Tools......Page 486
Starting a Facebook Marketing Campaign......Page 490
Measuring Facebook Marketing Results......Page 492
Twitter Marketing......Page 494
Insight on Technology: Optimizing Social Marketing with Simply Measured......Page 495
Twitter Marketing Tools......Page 497
Starting a Twitter Marketing Campaign......Page 500
Pinterest Marketing......Page 501
Pinterest Marketing Tools......Page 502
Starting a Pinterest Marketing Campaign......Page 505
Measuring Pinterest Marketing Results......Page 507
Marketing on Other Social Networks: Instagram, Snapchat, and LinkedIn......Page 508
Overview: M-commerce Today......Page 510
Insight on Society: Marketing to Children of the Web in the Age of Social Networks......Page 511
How People Actually Use Mobile Devices......Page 513
In-App Experiences and In-App Ads......Page 514
How the Multi-Screen Environment Changes the Marketing Funnel......Page 515
Basic Mobile Marketing Features......Page 516
The Technology: Basic Mobile Device Features......Page 517
Mobile Marketing Tools: Ad Formats......Page 518
Starting a Mobile Marketing Campaign......Page 520
Insight on Business: Mobile Marketing Goes 3-D......Page 521
Measuring Mobile Marketing Results......Page 523
7.4. Local and Location-Based Mobile Marketing......Page 524
The Growth of Local Marketing......Page 525
The Growth of Location-Based (Local) Mobile Marketing......Page 526
Location-Based Marketing Platforms......Page 527
Location-Based Mobile Marketing: The Technologies......Page 528
Why Is Local Mobile Attractive to Marketers?......Page 529
Proximity Marketing with Beacons......Page 530
Starting a Location-Based Marketing Campaign......Page 532
Measuring Location-Based Marketing Results......Page 533
Qualifications/Skills......Page 534
Possible First Interview Questions......Page 535
7.6. Case Study: ExchangeHunterJumper.com: Building a Brand with Social Marketing......Page 537
Key Concepts......Page 542
Projects......Page 545
References......Page 546
Learning Objectives......Page 548
The Right to Be Forgotten: Europe Leads on Internet Privacy......Page 549
8.1. Understanding Ethical, Social, and Political Issues in E-commerce......Page 552
A Model for Organizing the Issues......Page 553
Basic Ethical Concepts: Responsibility, Accountability, and Liability......Page 555
Analyzing Ethical Dilemmas......Page 557
Candidate Ethical Principles......Page 558
What Is Privacy?......Page 559
Privacy in the Public Sector: Privacy Rights of Citizens......Page 560
Privacy in the Private Sector: Privacy Rights of Consumers......Page 561
Information Collected by E-commerce Companies......Page 565
Marketing: Profiling, Behavioral Targeting, and Retargeting......Page 567
Social Networks: Privacy and Self Revelation......Page 570
Consumer Privacy Regulation and Enforcement: The FTC......Page 571
Consumer Privacy Regulation: The Federal Communications Commission (FCC)......Page 575
Privacy and Terms of Use Policies......Page 576
Privacy Protection in Europe......Page 577
Industry Self-Regulation......Page 579
Technological Solutions......Page 580
Limitations on the Right to Privacy: Law Enforcement and Surveillance......Page 582
Insight on Technology: Apple: Defender of Privacy?......Page 585
8.3. Intellectual Property Rights......Page 588
Copyright: the Problem of Perfect Copies and Encryption......Page 589
Fair Use Doctrine......Page 590
The Digital Millennium Copyright Act of 1998......Page 592
Patents: Business Methods and Processes......Page 596
E-commerce Patents......Page 597
Trademarks: Online Infringement and Dilution......Page 599
Trademarks and the Internet......Page 600
Cyberpiracy......Page 602
Metatagging......Page 603
Linking......Page 604
Trade Secrets......Page 605
Can the Internet Be Controlled?......Page 606
Taxation......Page 608
Net Neutrality......Page 609
Insight on Business: Internet Sales Tax Battle......Page 610
8.5. Public Safety and Welfare......Page 612
Protecting Children......Page 613
Cigarettes, Gambling, and Drugs: Is the Web Really Borderless?......Page 615
Insight on Society: The Internet Drug Bazaar......Page 616
The Company......Page 619
Qualifications/Skills......Page 620
Possible First Interview Questions......Page 621
8.7. Case Study: The Pirate Bay: Searching for a Safe Haven......Page 623
Key Concepts......Page 627
Questions......Page 629
Projects......Page 630
References......Page 631
Learning Objectives......Page 636
Blue Nile Sparkles for Your Cleopatra......Page 637
9.1. The Online Retail Sector......Page 640
The Retail Industry......Page 641
Online Retailing......Page 642
E-commerce Retail: The Vision......Page 643
The Online Retail Sector Today......Page 644
9.2. Analyzing the Viability of Online Firms......Page 649
Financial Analysis......Page 650
Virtual Merchants......Page 652
Business Model......Page 654
Strategic Analysis—Business Strategy......Page 656
Strategic Analysis—Competition......Page 659
Strategic Analysis—Social and Legal Challenges......Page 660
Omni-Channel Merchants: Bricks-and-Clicks......Page 661
Catalog Merchants......Page 663
Manufacturer-Direct......Page 664
Common Themes in Online Retailing......Page 665
9.4. The Service Sector: Offline and Online......Page 667
Insight on Technology: Big Data and Predictive Marketing......Page 668
9.5. Online Financial Services......Page 670
Online Banking and Brokerage......Page 671
Financial Portals and Account Aggregators......Page 672
Online Mortgage and Lending Services......Page 673
Online Insurance Services......Page 674
Online Real Estate Services......Page 675
Why Are Online Travel Services So Popular?......Page 676
The Online Travel Market......Page 677
Online Travel Industry Dynamics......Page 678
9.7. Online Career Services......Page 679
Insight on Society: Phony Reviews......Page 680
It’s Just Information: The Ideal Web Business?......Page 682
Online Recruitment Industry Trends......Page 684
9.8. On-Demand Service Companies......Page 685
Insight on Business: Food on Demand: Instacart and Grubhub......Page 686
Position: Associate, E-commerce Initiatives......Page 689
Preparing for the Interview......Page 690
Possible First Interview Questions......Page 691
9.10. Case Study: OpenTable: Your Reservation Is Waiting......Page 692
Key Concepts......Page 696
Questions......Page 698
References......Page 699
Learning Objectives......Page 702
Cord Cutters and Cord Shavers: The Emerging Internet Broadcasting System (IBS)......Page 703
Content Audience and Market: Where Are the Eyeballs and the Money?......Page 705
Media Utilization: A Converging Digital Stream......Page 707
Insight on Society: Are Millennials Really All That Different?......Page 708
Media Revenues......Page 711
Online Content Consumption......Page 712
Free or Fee: Attitudes About Paying for Content and the Tolerance for Advertising......Page 713
Digital Rights Management (DRM) and Walled Gardens......Page 714
Content Convergence......Page 715
Industry Structure Convergence......Page 716
Online Newspapers......Page 718
From Print-centric to Digital First: The Evolution of Newspaper Online Business Models, 1995–2017......Page 720
Online Newspaper Industry: Strengths and Challenges......Page 723
Magazines Rebound on the Tablet Platform......Page 729
Insight on Business: Vox: Native Digital News......Page 730
E-books and Online Book Publishing......Page 732
Amazon and Apple: The New Digital Media Ecosystems......Page 734
E-book Business Models......Page 735
Interactive Books: Converging Technologies......Page 736
10.3. The Online Entertainment Industry......Page 737
Online Entertainment Market Size and Growth......Page 739
Television......Page 740
Feature-Length Movies......Page 743
Insight on Technology: Hollywood and the Internet: Let’s Cut a Deal......Page 747
Music......Page 750
Games......Page 753
The Company......Page 757
Preparing for the Interview......Page 758
Possible First Interview Questions......Page 759
10.5. Case Study: Netflix: How Does This Movie End?......Page 761
Key Concepts......Page 765
Questions......Page 767
References......Page 768
Learning Objectives......Page 770
Social Network Fever: Spreads to the Professions......Page 771
11.1. Social Networks and Online Communities......Page 773
What Is an Online Social Network?......Page 774
The Growth of Social Networks and Online Communities......Page 775
Turning Social Networks into Businesses......Page 778
Types of Social Networks and Their Business Models......Page 780
Insight on Society: The Dark Side of Social Networks......Page 781
Social Network Technologies and Features......Page 783
Insight on Technology: Trapped Inside the Facebook Bubble?......Page 786
11.2. Online Auctions......Page 789
Benefits and Costs of Auctions......Page 790
Risks and Costs of Auctions......Page 791
Auctions as an E-commerce Business Model......Page 792
Types and Examples of Auctions......Page 793
When to Use Auctions (and for What) in Business......Page 794
Consumer Trust in Auctions......Page 796
When Auction Markets Fail: Fraud and Abuse in Auctions......Page 797
The Growth and Evolution of Portals......Page 798
Types of Portals: General-Purpose and Vertical Market......Page 800
Insight on Business: Verizon Doubles Down on Portals......Page 801
Portal Business Models......Page 803
The Company......Page 804
Preparing for the Interview......Page 805
Possible First Interview Questions......Page 806
11.5. Case Study: eBay Evolves......Page 808
Key Concepts......Page 811
Projects......Page 813
References......Page 814
Learning Objectives......Page 816
Amazon Takes on B2B: With Amazon Business......Page 817
12.1. An Overview of B2B E-commerce......Page 821
The Evolution of B2B E-commerce......Page 823
The Growth of B2B E-commerce......Page 825
Potential Benefits and Challenges of B2B E-commerce......Page 826
12.2. The Procurement Process and Supply Chains......Page 827
Insight on Society: Where’s My iPad? Supply Chain Risk and Vulnerability......Page 828
Types of Procurement......Page 830
Multi-Tier Supply Chains......Page 831
Visibility and Other Concepts in Supply Chain Management......Page 832
12.3. Trends in Supply Chain Management and Collaborative Commerce......Page 833
Supply Chain Black Swans: Adaptive Supply Chains......Page 834
Accountable Supply Chains: Labor Standards......Page 836
Sustainable Supply Chains: Lean, Mean, and Green......Page 837
Electronic Data Interchange (EDI)......Page 838
Mobile B2B......Page 840
B2B in the Cloud......Page 841
Supply Chain Management Systems......Page 842
Insight on Technology: Your Shoes Are in the Cloud......Page 843
Collaborative Commerce......Page 846
Collaboration 2.0: Cloud, Web, Social, and Mobile......Page 847
B2B Marketing......Page 848
12.4. Net Marketplaces: The Selling Side of B2B......Page 849
Types of Net Marketplaces......Page 850
E-distributors......Page 851
E-procurement......Page 853
Exchanges......Page 854
Industry Consortia......Page 857
12.5. Private Industrial Networks......Page 859
Objectives of Private Industrial Networks......Page 860
Private Industrial Networks and Collaborative Commerce......Page 861
Insight on Business: Walmart’s Private Industrial Network Supports Omni-channel Growth......Page 862
12.6. Careers in E-commerce......Page 865
How to Prepare for the Interview......Page 866
Possible First Interview Questions......Page 867
12.7. Case Study: Elemica: Cooperation, Collaboration, and Community......Page 869
Key Concepts......Page 874
Projects......Page 877
References......Page 878
Index......Page 881
Back Cover......Page 917