- E-commerce involves exchanges among customers, business partners and vendors. E-business is composed of these same elements, but also includes operations that are handled within the business itself.
- The transition from brick-and-mortar businesses to click-and-mortar businesses is happening in all sectors of the economy.
- The banking industry uses Electronic Funds Transfer (EFT) to transfer money between accounts.
- Electronic Data Interchange (EDI) standardizes business forms, such as purchase orders and invoices, so that companies can share information electronically with customers, vendors and business partners.
- The storefront model combines transaction processing, security, online payment and information storage to enable merchants to sell their products online.
- Shopping-cart technology allows customers to accumulate items they wish to buy. A widely recognized example of an e-business that uses shopping-cart technology is Amazon.com.
- Auction sites allow users to pinpoint the lowest prices on available items.
- The reverse-auction model allows the buyer to set a price that sellers compete to match or even beat. A reserve price is the lowest price that the seller will accept.
- Portal sites give visitors the chance to find what they are looking for in one place. Search engines are horizontal portals, or portals that aggregate information on a broad range of topics. Vertical portals are more specific, offering information pertaining to a single area of interest.
- The name-your-price business model allows customers to state the price they are willing to pay for products and services.
- Intelligent agents are programs that search and arrange large amounts of data and report answers based on that data.
- The comparison-pricing model allows customers to poll a variety of merchants and find a desired product or service at the lowest price.
- The demand-sensitive-pricing business model follows the idea that the more people who buy a product in a single purchase, the lower the cost per person becomes.
- A popular method of conducting e-business is bartering, or offering one item in exchange for another.
- Some businesses establish an online presence by using a turnkey solution (a prepackaged e-business). Other options include e-business templates that outline the basic structure, but allow the design to be determined by the owner.
- Components of a marketing campaign include branding, e-mail, marketing research, advertising, promotions and public relations.
- A brand is a name, logo or symbol that helps identify a company's products or services.
- Spamming is mass e-mailing to people who have not expressed interest in receiving such e-mails. Spamming can give a company a poor reputation.
- While generating Web-site traffic is important to the success of an e-business, keeping user profiles, recording visits and analyzing promotional and advertising results are also helpful in measuring a marketing campaign's effectiveness.
- The target market is the group of people toward whom it is most profitable to aim a marketing campaign. Tracking devices, such as ID cards and cookies, are used to monitor consumer behavior.
- A search engine is a program that scans Web sites and lists relevant sites on the basis of keywords or other search-engine ranking criteria. Some search engines rank sites by sending out a program called a spider to inspect the site.
- An affiliate program is a form of partnership in which a merchant pays affiliates (other companies or individuals) for specified actions taken by visitors who click-through from an affiliate site to a merchant site.
- Promotions can attract visitors to a site and can influence purchasing.
- Public relations (PR) keeps customers and employees current on the latest information about products, services and internal and external issues, such as company promotions and consumer reactions.
- Customer relationship management (CRM) focuses on providing and maintaining quality service for customers.
- Digital cash is one example of digital currency. It is stored electronically and can be used to make online electronic payments.
- E-wallets keep track of billing and shipping information so that it can be entered with one click at participating merchants' sites.
- Smart cards are able to store more information than ordinary credit cards. Smart cards can require the user to have a password, giving the smart card a security advantage over credit cards.
- There are four fundamental requirements of a successful and secure transaction: privacy, integrity, authentication and nonrepudiation.
- Public-key cryptography uses two inversely related keys: a public key and a private key. The most commonly used public-key algorithm is RSA.
- The Secure Sockets Layer (SSL) protocol is commonly used to secure communication on the Internet and the Web. SSL uses public-key technology and digital certificates to authenticate the server in a transaction and to protect private information as it passes from one party to another over the Internet.
- Defamation is the act of injuring another's reputation, honor or good name through false written or oral communication. Defamation has of two forms, slander and libel. Slander is spoken defamation, whereas libelous statements are written or spoken in a context in which they have longevity and pervasiveness that exceed slander.
- The Miller Test identifies the criteria used to distinguish between obscenity and pornography.
- Copyright is the protection given to the author of an original work.
- Wireless technology has developed into one of today's hottest topics.
- The wireless medium affects business management and operations, employee productivity, consumer purchasing behavior, marketing strategies and personal communications.
- M-business is defined as e-business enabled by wireless communications.
- Businesses and individuals can determine wireless users' locations within yards by using location-based services.
- The E911 Act is designed to standardize and enhance 911 service across mobile devices. Phase 1 of the E911 Act requires all wireless cellular carriers to provide Automatic Number Information (ANI), or the phone numbers of cell phones calling in 911 emergencies. The carriers must also provide the locations of the cell sites receiving the 911 calls (a cell site identifies a particular tower's area of coverage).
- Phase 2 of the E911 Act mandates that all mobile-phone carriers provide Automatic Location Identification (ALI) of a caller within 125 meters, 67% of the time.
- Triangulation determines a user's location by analyzing the angles from (at least) two fixed points a known distance apart.
- A geocode is the latitude and longitude of the user's location.
- A pull strategy assumes that people will request that specific information be sent to their wireless devices in real time. A push strategy is enacted when marketing messages requested by the recipient are not delivered to wireless devices in real time.
- Permission-based marketing helps guard customer privacy. It also increases campaign response rates and productivity, because the target market is better defined.
- Limited technology and a variety of protocols cause marketing content to be displayed differently on various receiving devices.
- The carrier determines the type and amount of wireless advertising that reach its subscribers.
- To reach wireless customers, advertisers must either develop an in-house solution or use a wireless ad-serving network to deliver ads.
- A publisher or publisher network is a site or group of sites that carry wireless content and wireless advertisements.
- Wireless advertisements can be delivered by using Short Message Service (SMS), a service that transmits text messages of 160 alphanumeric characters or less.
- Sales-force automation assists companies in the sales process, including the maintenance and discovery of leads and the management of contacts and other sales-force activities.
- The variety of wireless devices, the lack of m-payment interoperability and the immaturity of the m-payment industry have created inconsistent user experiences in relation to m-payment applications.
- Interoperability is the ability for transactions to be performed using any software or device.
- Mobile transactions are well suited for micropayments, which are payments under $10.
- Some banks are becoming Mobile Virtual Network Operators (MVNOs). MVNOs purchase bandwidth capacity from mobile carriers and resell it under their brand names, coupled with value-added services.
- M-wallets allow a user to store billing and shipping information that the user can recall with one click while shopping from a mobile device.
- The accepted protocol for collecting user information is called an opt-in policy—the user requests targeted information. An opt-out policy allows organizations to send information to consumers until they request to be taken off the mailing list.
- The Cellular Telecommunications and Internet Association (CTIA) has issued guidelines for protecting consumer privacy.
- Market penetration refers to the percentage of the population using a marketed service.
- Messaging is the ability to send brief text messages to the display of another cell phone.
- Extensible Markup Language (XML) allows users to create customized tags unique to specific applications. The ability to customize tags will allow business data to be used worldwide.
- The Open Software Description Format (OSD) is an XML specification that enables the distribution of software over the Internet.
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