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Part 1:IntroductionChapter 1 Introduction to Electronic Commerce2

Electronic Commerce:The Second Wave4

Electronic Commerce and Electronic Business5

Categories of Electronic Commerce5

The Development and Growth of Electronic Commerce7

The Dot-Com Boom,Bust,and Rebirth9

The Second Wave of Electronic Commerce11

Business Models,Revenue Models,and Business Processes14

Focus on Specific Business Processes14

Role of Merchandising15

Product/Process Suitability to Electronic Commerce15

Advantages of Electronic Commerce17

Disadvantages of Electronic Commerce18

Economic Forces and Electronic Commerce20

Transaction Costs21

Markets and Hierarchies23

Using Electronic Commerce to Reduce Transaction Costs24

Network Economic Structures25

Network Effects26

Using Electronic Commerce to Create Network Effects26

Identifying Electronic Commerce Opportunities27

Strategic Business Unit Value Chains27

Industry Value Chains29

SWOT Analysis:Evaluating Business Unit Opportunities31

International Nature of Electronic Commerce32

Trust Issues on the Web33

Language Issues34

Cultural Issues35

Culture and Government37

Infrastructure Issues39

Summary42

Key Terms42

Review Questions43

Exercises43

Cases44

For Further Study and Research48

Chapter 2 Technology Infrastructure:The Internet and the World Wide Web53

The Internet and the World Wide Web55

Origins of the Internet55

New Uses for the Internet56

Commercial Use of the Internet57

Growth of the Internet57

Emergence of the World Wide Web59

Packet-Switched Networks61

Routing Packets62

Internet Protocols63

TCP/IP64

IP Addressing64

Domain Names66

Web Page Request and Delivery Protocols68

Electronic Mail Protocols68

Unsolicited Commercial E-Mail(UCE,Spam)69

Markup Languages and the Web70

Standard Generalized Markup Language71

Hypertext Markup Language72

Extensible Markup Language(XML)78

HTML and XML Editors85

Intranets and Extranets85

Intranets85

Extranets86

Public and Private Networks86

Virtual Private Network(VPN)87

Internet Connection Options88

Connectivity Overview88

Voice-Grade Telephone Connections89

Broadband Connections89

Leased-Line Connections91

Wireless Connections91

Internet2 and the Semantic Web95

Summary97

Key Terms98

Review Questions100

Exercises100

Cases101

For Further Study and Research104

Part 2:Business Strategies for Electronic CommerceChapter 3 Selling on the Web:Revenue Models and Building a Web Presence110

Revenue Models111

Web Catalog Revenue Models112

Digital Content Revenue Models119

Advertising-Supported Revenue Models121

Advertising-Subscription Mixed Revenue Models125

Fee-for-Transaction Revenue Models126

Online Video135

Fee-for-Service Revenue Models136

Revenue Models in Transition137

Subscription to Advertising-Supported Model138

Advertising-Supported to Advertising-Subscription Mixed Model138

Advertising-Supported to Fee-for-Services Model138

Advertising-Supported to Subscription Model139

Multiple Transitions139

Revenue Strategy Issues141

Channel Conflict and Cannibalization141

Strategic Alliances and Channel Distribntion Management143

Mobile Commerce144

Creating an Effective Web Presence145

Identifying Web Presence Goals145

Achieving Web Presence Goals146

Web Site Usability151

How the Web Is Different151

Meeting the Needs of Web Site Visitors152

Trust and Loyalty155

Rating Electronic Commerce Web Sites155

Usability Testing156

Customer-Centric Web Site Design156

Connecting with Customers157

The Nature of Communication on the Web157

Summary161

Key Terms161

Review Questions162

Exercises162

Cases163

For Further Study and Research167

Chapter 4 Marketing on the Web171

Web Marketing Strategies173

Product-Based Marketing Strategies174

Customer-Based Marketing Strategies176

Communicating with Different Market Segments178

Trust,Complexity,and Media Choice178

Market Segmentation180

Market Segmentation on the Web182

Offering Customers a Choice on the Web183

Beyond Market Segmentation:Customer Behavior and Relationship Intensity183

Segmentation Using Customer Behavior184

Customer Relationship Intensity and Life-Cycle Segmentation186

Acquisition,Conversion,and Retention of Customers189

Customer Acquisition,Conversion,and Retention:The Funnel Model190

Advertising on the Web191

Banner Ads192

Text Ads194

Other Web Ad Formats195

Site Sponsorships196

Online Advertising Cost and Effectiveness197

Effectiveness of Online Advertising198

E-Mail Marketing199

Permission Marketing199

Combining Content and Advertising200

Outsourcing E-Mail Processing201

Technology-Enabled Customer Relationship Management201

CRM as a Source of Value in the Marketspace202

Creating and Maintaining Brands on the Web204

Elements of Branding205

Emotional Branding vs.Rational Branding206

Brand Leveraging Strategies206

Brand Consolidation Strategies206

Costs of Branding207

Affiliate Marketing Strategies207

Viral Marketing Strategies209

Search Engine Positioning and Domain Names209

Search Engines and Web Directories209

Paid Search Engine Inclusion and Placement210

Web Site Naming Issues214

Summary217

Key Terms217

Review Questions219

Exercises219

Cases220

For Further Study and Research224

Chapter 5 Business-to-Business Online Strategies227

Purchasing,Logistics,and Support Activities229

Purchasing Activities230

Direct vs.Indirect Materials Purchasing232

Logistics Activities234

Support Activities235

E-Government236

Network Model of Economic Organization238

Electronic Data Interchange239

Early Business Information Interchange Efforts239

Emergence of Broader EDI Standards240

How EDI Works242

Value-Added Networks246

EDI Payments249

EDI on the Internet249

Open Architecture of the Internet249

Supply Chain Management Using Internet Technologies251

Value Creation in the Supply Chain251

Increasing Supply Chain Efficieneies253

Using Materials-Tracking Technologies with EDI and Electronic Commerce254

Creating an Ultimate Consumer Orientation in the Supply Chain256

Building and Maintaining Trust in the Supply Chain257

Electronic Marketplaces and Portals258

Independent Industry Marketplaces258

Private Stores and Customer Portals260

Private Company Marketplaces260

Industry Consortia-Sponsored Marketplaces261

Summary263

Key Terms263

Review Questions264

Exercises264

Cases265

For Further Study and Research268

Chapter 6 Online Auctions,Virtual Communities,and Web Portals273

Auction Overview274

Origins of Auctions275

English Auctions275

Dutch Auctions276

First-Price Sealed-Bid Auctions277

Second-Price Sealed-Bid Auctions277

Open-Outcry Double Auctions277

Sealed-Bid Double Auctions277

Reverse(Seller Bid)Auctions278

Online Auctions and Related Businesses279

General Consumer Auctions280

Specialty Consumer Auctions284

Consumer Reverse Auctions and Group Purchasing Sites285

Business-to-Business Auctions287

Business-to-Business Reverse Auctions289

Auction-Related Services291

Virtual Communities:Web Portals and Social Networks295

Mobile Communications Technology296

Mobile Business297

Intelligent Software Agents297

Virtual Communities298

Early Web Communities298

Web Community Consolidation299

The Second Wave of Electronic Commerce:Social Networking299

Revenue Models for Social Networking Sites302

Summary308

Key Terms308

Review Questions309

Exercises310

Cases311

For Further Study and Research313

Part 3:Technologies for Electronic CommerceChapter 7 Electronic Commerce Software318

Web Hosting Alternatives319

Basic Functions of Electronic Commerce Software322

Catalog Display323

Shopping Cart325

Transaction Processing329

Advanced Functions of Electronic Commerce Software330

Middleware330

Enterprise Application Integration and Databases331

Web Services333

Integration with ERP Systems336

Electronic Commerce Software for Small and Midsize Companies337

Basic Commerce Service Providers337

Mall-Style Commerce Service Providers339

Estimated Operating Expenses for a Small Web Business340

Electronic Commerce Software for Midsize to Large Businesses342

Web Site Development Tools342

Electronic Commerce Software for Large Businesses344

Enterprise-Class Electronic Commerce Software344

Customer Relationship Management Software347

Supply Chain Management Software349

Content Management Software349

Knowledge Management Software350

Summary351

Key Terms351

Review Questions352

Exercises353

Cases354

For Further Study and Research357

Chapter 8 Electronic Commerce Security359

Online Security Issues Overview361

Managing Risk362

Elements of Computer Security363

Security Policy and Integrated Security363

Security for Client Computers365

Cookies365

Web Bugs367

Active Content367

Java Applets369

JavaScript369

ActiveX Controls370

Graphics and Plug-Ins370

Viruses,Worms,and Antivirus Software371

Digital Certificates376

Steganography378

Physical Security for Clients379

Communication Channel Security379

Secrecy Threats380

Integrity Threats382

Necessity Threats383

Threats to the Physical Security of Internet Communications Channels383

Threats to Wireless Networks384

Encryption Solutions384

Ensuring Transaction Integrity with IIash Functions392

Ensuring Transaction Integrity with Digital Signatures392

Guaranteeing Transaction Delivery394

Security for Server Computers394

Web Server Threats394

Database Threats395

Other Programming Threats396

Threats to the Physical Security of Web Servers396

Access Control and Authentication399

Firewalls400

Organizations That Promote Computer Security402

CERT402

Other Organizations402

Computer Forensics and Ethical Hacking403

Summary404

Key Terms405

Review Questions406

Exercises407

Cases408

For Further Study and Research411

Chapter 9 Payment Systems For Electronic Commerce415

Online Payment Basics417

Payment Cards　　419

Advantages and Disadvantages of Payment Cards420

Payment Acceptance and Processing421

Electronic Cash424

Micropayments and Small Payments423

Privacy and Security of Electronic Cash426

Holding Electronic Cash:Online and Offline Cash426

Advantages and Disadvantages of Electronic Cash427

How Electronic Cash Works428

Providing Security for Electronic Cash428

Electronic Cash Systems430

Electronic Wallets433

Microsoft Windows Live ID434

Yahoo!Wallet435

Stored-Value Cards435

Magnetic Strip Cards435

Smart Cards436

Internet Technologies and the Banking Industry438

Check Processing438

Phishing Attacks440

Organized Crime,Identity Theft,and Phishing Attacks443

Phishing Attack Countermeasures445

Summary446

Key Terms446

Review Questions447

Exercises447

Cases448

For Further Study and Research451

Part 4:IntegrationChapter 10 Planning for Electronic Commerce456

Planning Electronic Commerce Initiatives457

Identifying Objectives458

Linking Objectives to Business Strategies458

Measuring Benefits459

Managing Costs460

Comparing Benefits to Costs466

Return on Investment(ROI)466

Strategies for Developing Electronic Commerce Web Sites467

Internal Development vs.Outsourcing468

Selecting a Hosting Service472

New Methods for Implementing Partial Outsourcing473

Managing Electronic Commerce Implementations474

Project Management474

Project Portfolio Management476

Staffing for Electronic Commerce476

Postimplementation Audits479

Summary480

Key Terms480

Review Questions481

Exercises481

Cases482

For Further Study and Research485