Understanding B2C E-Business
This article covers key activities and functions conducted in the context of B2C e-Business.It explains various kinds of e-communities,how organizations reach their busi-ness and consumer value through Web initiatives,and famous B2C business model dynamics—pure play,and brick-and-mortar.
Main activities in B2C e-Business
Important aspects of B2C initiatives include promotion,ordering,product/service delivery,after-sales support.All activities are conducted in a seamless manner with the help of today's Web technologies.They will be explained one by one.
Promotion
According to reports,advertising expenditures via Internet are expected to rise from$3.3 billion in 1999 to$33 billion by 2004.Web promotion includes banners,buttons,pop-up ads,rich-media banners,etc.There are various advantages of using corporate Web sites as a promotional medium where successful initiatives provide premium content,market research,online contests,coupons,etc.and have thus successfully established their consumer loyalty.①Promotion via B2C has followed key benefits:
1.Customization The Web experience can be tailored to users'interests and needs.Customized ads,and product offers are made,and often,incentives are awarded to buyers for providing personal information covering purchasing habits and other lifestyle attributes.
2.Interactivity Users are provided with automated feedback which is not just a quick response,but also a highly involving characteristic of the Web platform.
3.Participation Web is a great participatory tool facilitating online communities such as Internet discussion groups and societies for experts and ordinary users.
Ordering
Almost all Internet sites can be classified into three categories:(1)content-oriented sites—university sites,online newspapers and magazines;(2)commerce-oriented sites,also called storefronts;(3)community-oriented sites,e.g.ivillage.com.②
Product delivery
Internet is a great medium to procure digital and intellectual products such as software,news,music,etc.These properties are ideally suited for delivery over the Internet,thus saving time and expense compared to the alternative of shipping the product through physical means.③
After-sales support
The Internet allows delivery of after-sales service to customers through the use of e-mail,search engines and bulletin boards.Companies are developing knowledge-based systems so that they can find the answers to essential questions in a prompt and realtime manner.
Establishing an e-Community
Many companies host virtual(Web-based)communities to assist their customers.Some allow members to set up their own Web pages and provide information publishing tools.There are broadly three types of online communities:
1.Communities for intimacy These provide a platform for developing one-to-one relationship using member-generated documents and messages.④Examples include e-mail,chatting,virtual greeting cards,etc.
2.Communities for interests This provides a many-to-many interaction in nature where users are driven by their shared interests.It covers moderated discussion groups with member-supplied contents along with threaded discussion and forums.
3.Communities for transactions Driven by information and transaction,such communities are one-to-many and host-driven in nature.Here host-supplied documents are available supported with multimedia facility to conduct commercial transactions.
Creating business value in B2C e-Business
In order to achieve the ultimate shareholder value,businesses need to target intermediate goals described as business values.These are:
1.To reach operational excellence low cost,quick response,streamlined processes.
2.To attain customer intimacy life-long customer loyalty.
3.To achieve product and service leadership innovation and R&D⑤.
Organizations achieve business value through the Web site channel in multiple stages.In order to attract customers,companies deliver premium content on the Web,to provide valuable information to customers for free and to promote company products and services,such as research articles,annual reports,product catalogs and so on.These are followed by specialized activities aimed at establishing communication linkages between company and its current and prospective customers over e-mail,phone,fax and so on.⑥The next stage is commerce or transaction where customers interface with automated ordering system of the company.Famous examples are companies such as Dell and Cisco that reach such business values at a cost that is fraction to that of a humanbased system.The last stage is using Web-enabled business processes technologies to improve or transform key internal business processes(related with customer service and supply-chain).This is how Web-based computer systems help deliver core business values:customer satisfaction,supply chain efficiencies and developing innovative products and services.
Creating consumer value in B2C e-Business
Consumers shop on the Web because they get the following values.
1.Lower cost In general,products such as books,CDs and other intellectual material are cheaper on the Web than brick and mortar alternatives.
2.Greater choice A variety of Web sites are available with vast product/service offerings.
3.Convenience Users can easily review product details,compare process,place order and pay online.
4.Customization The right information tailored on users' needs,preferences and interests can be obtained.
Models in Business-to-Consumer e-Business
A business model describes the basic framework of a business.It tells what market segment is being served,the product/service that is being provided,and the strategy adapted to produce and deliver services.The business model provides the value proposition in terms of business value(to the organization)and customer value(to the users).In B2C e-Business,there are two basic groups of business models:for pure play(purely Web-based)companies,and for brick and mortar(traditional companies).
Pure play business models include:
1.Portal sites(sites that depend upon Web advertising,such as Yahoo!,Lycos)
2.Auction-based consumer-to-consumer sites(sites that bring buyers and suppliers together,facilitate transactions and earn their commissions,such as eBay)
3.E-retailers and Webmalls(Such as Amazon)
For primarily brick and mortar companies,the option is either to use their own Web channel in order to strengthen existing operations to serve customers,or let competition do the same to them.
New Words and Expressions
1.initiative(n.)a beginning or introductory step;an opening move率先,开端
2.promotion(n.)advertising;publicity宣传,推销
3.delivery(n.)the act of conveying or delivering传送,运送
4.after-sales support售后支持
5.seamless(a.)perfectly consistent没漏洞的,完全连续的
6.expenditure(n.)an expense费用
7.pop-up ads弹出式广告
8.market research市场调研
9.online contests在线竞价
10.coupon(n.)礼券,优待券
11.loyalty(n.)the state or quality of being loyal忠诚,忠实
12.tailor(v.)to make,alter,or adapt for a particular end or purpose为某一特定目的或目标而制作、修改或调整
13.incentive(n.)something,such as the fear of punishment or the expectation of reward,that induces action or motivates effort刺激,诱因;动机
14.quick response快速响应
15.storefront(n.)the side of a store or shop facing a street沿街铺面,店面
16.property(n.)something owned;a possession财产
17.intimacy(n.)the condition of being intimate亲密,亲密的状况
18.forum(n.)a medium of open discussion or voicing of ideas,such as a newspaper or a radio or television program提供公开讨论机会的宣传媒介,如报纸或广播电视的专题讨论节目等
19.streamlined(a.)effectively organized or simplified有效组织或简单化的
20.annual report年度报告
21.linkage(n.)a connection or relation;an association联系或关系
22.prospective(a.)likely to become or be预期的
23.innovative(a.)marked by or given to innovations革新的,创新的
24.intellectual(a.)of or relating to the intellect智力的
25.business model商业模式,商业模型
26.proposition(n.)a plan suggested for acceptance;a proposal提议,建议
27.strengthen(v.)to make strong or increase the strength of加强
Notes
1.There are various advantages of using corporate Web sites as a promotional medium
where successful initiatives provide premium content,market research,online contests,coupons,etc.and have thus successfully established their consumer loyalty.本句中,“using corporate Web sites as a promotional medium”是一个动名词短语,作介词“of”的宾语;“where successful initiatives provide premium content,market research,online contests,coupons,etc.and have thus successfully established their consumer loyalty”是一个定语从句,修饰和限定“a promotional medium”。
2.content-oriented内容导向的,面向内容的commerce-oriented商业导向的,面向商业的community-oriented社区导向的,面向社区的
3.These properties are ideally suited for delivery over the Internet,thus saving time and expense compared to the alternative of shipping the product through physical means.本句中,“thus saving time and expense compared to the alternative of shipping the product through physical means”是一个现在分词短语作结果状语。在该结果状语中,“compared to the alternative of shipping the product through physical means”是一个过去分词短语作比较状语,修饰和限定“saving”。
4.These provide a platform for developing one-to-one relationship using member-generated documents and messages.本句中,“using member-generated documents and messages”是一个现在分词短语作方式状语,修饰谓语“provide”。
5.R&D:Research&Development研究与发展,研发
6.These are followed by specialized activities aimed at establishing communication linkages between company and its current and prospective customers over e-mail,phone,fax and so on.本句中,“aimed at establishing communication linkages between company and its current and prospective customers over e-mail,phone,fax and so on”是一个过去分词短语作定语,修饰和限定“specialized activities”。