apuntes para examen final e commerce

8/15/2019 Apuntes Para Examen Final E Commerce

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Apuntes para examen final E - Commerce

Topic 8. Building an E-Commerce Site

This topic discusses the general process of building an e-commerce site. It

describes a methodology for approaching the problem. It also considers the

major issues in building an e-commerce site and identies some of the tools

available that can help organizations achieve an eective web presence.

The case “Tommy ilger !eplatforms" describes some of the factors involved

and #uestions that must be as$ed to determine the hardware and software that

will be needed to build an eective %eb presence. The case describes the

factors that drive new or established companies to re-build their %eb sitesperiodically. &ome #uestions that you can analyze while reading the case are'

What reasons were behind Hilfger’s choice o ATG or its Web site

solution?

Why did Hilfger decide it needed to replatorm in 20?

How can apply some o the site!building options or operators o

smaller Web sites?

(s we discussed in topic ) *+usiness models for e-commerce, before you can

start thin$ing about your companys web page design it is important to have a

business model. /hapter 0 of 1audons boo$ starts by as$ing some #uestions

and posing some challenges that you must complete that will drive the

development and implementation of your online presence'

The si2 main pieces of the e-commerce site puzzle are' the organizational

capabilities and human resources you will need to build and manage the site

the hardware the software the telecommunications infrastructure you will

need to meet the demands of your customers and the site design you will

need to implement your business objectives.

!egardless of whether you decide to build the site yourself use specialized

software to help you develop the pages or hire somebody else to build the

system *outsource, you need to $now e2actly what it is you need the system to

do. The systems development life cycle *&31/, is a methodology for


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understanding the business objectives of any system so that an appropriate

solution can be designed.

4uch of what you can do on a web page is a function of the hardware softwareand communications platform used. The more sophisticated the hardware and

software the more ways you can sell goods. In choosing the best platform to

use for your %eb site the three main factors to consider are'

The anticipated number of simultaneous users who will li$ely visit your site.

The customer user prole with their e2pected re#uests and behavior while at

the site.

The nature of the content on your site.

The more visitors you have the greater the demand will be on your system. If

the users will be viewing dynamic pages and large multimedia les far more

capacity will be re#uired.

5ou can use tools to develop your own webpage li$e web application server

software which are programs that provide specic business functionality

re#uired of a web site such as catalog display mail server ad server etc. 6-

commerce merchant server software provides the basic functionality needed

for online sales including online catalog order ta$ing via an online shopping

cart and online credit card processing. 5ou can also opt for a merchant serversoftware pac$age or e-commerce suite and house your system in a providers

computer *such as 5ahoo 4erchant &olutions,.

7ther considerations while designing your webpage are factors considered

important for its success such as' functionality information ease of use

redundant navigation ease of purchase simple graphics and legible te2t.

&ome functions that annoy customers are things li$e re#uiring users to view a

video or register before they can navigate the site having lin$s that dont wor$

or content out of date.

+uilding a website is just part of a companys web presence. 8iven the

potential of mobile devices for business you must understand some issues

surrounding developing a mobile %eb site and building mobile applications.

&ome of the issues to consider are that hardware is dierent connectivity is

slower displays are smaller and the touch screen interfaces are dierent that

those of normal 9/s.


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The $ey point to ta$e away from this topic is that building an e-commerce

presence is a comple2 underta$ing similar to building an entirely new

information system. 4ajor physical and human resources are re#uired and

many rms nd it cost-eective to outsource a part or all of the eort to

specialized rms. 7n the other hand building an e-commerce presence hasnever been easier or cheaper.

6ight criteria:functionalities

• Functionality: The site must have pages that load quickly, perform correctly, and send the user tothe requested information about the product offerings.

• Informational: The site must have links that the customer can find easily in order to obtaininformation about the company and the products it offers.

• Ease of use: The site must have a simple foolproof navigation scheme.

• Redundant navigation: The site must have alternative paths to reach the same content.

• Ease of purchase: There should be no more than one or two clicks required for the purchasingprocedure.

• Multi-browser functionality: The site should work with the popular browsers.

• Simple graphics: The site should not use distracting graphics and/or sounds that the user cannot

control.

• Legible text: The site should avoid the use of backgrounds that distort text or make it difficult toread.


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;ive major &teps in The &1/3 of an ecommerce system'

Topic 9. E-Commerce Security and Payment

Two of the most important issues that have to be resolved when creating an e-

commerce presence is the method of payment that can be accepted for

customers transactions and the security policies that must be in place to

neutralize the threats that can aect operations or intercept information of

Internet transactions.

The case “/yberwar' 4(3 ).


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"ecurity

&ecurity is a comple2 issue when using the Internet. There are many points

where the information can be tapped modied or copied' at the senderscomputer on the communication channels or at the receiving end. %hen a

message is sent over the internet it passes through many computers in a

process $nown as pac$et switching *see topic =,. >sers want to ma$e sure that

the messages and information they are receiving is complete private and

comes from the person it says it does. There are si2 characteristics of the

information that are re#uired for good site operation'

#ntegrity

This is the ability to ensure that information being displayed on a %eb site orbeing transmitted:received over the Internet has not been altered in any way

by an unauthorized party. 7ne type of integrity security breach would be an

unauthorized person intercepting and redirecting a ban$ wire transfer into a

dierent account.

$onrepudiation

The ability to ensure that e-commerce participants do not deny their online

actions. (n e2ample of a repudiation incident would be a customer ordering

merchandise online and later denying that he or she had done so. The credit

card issuer will usually side with the customer because the merchant has no

legally valid proof that the customer ordered the merchandise.

Authenticity

(uthenticity is the ability to identify the identity of a person or entity you are

transacting with on the Internet. 7ne instance of an authenticity security

breach is “spoong" in which someone uses a fa$e e-mail address or poses as

someone else. This can also involve redirecting a %eb lin$ to a dierent

address.

%onfdentiality

The ability to ensure that messages and data are available only to authorized

viewers. 7ne type of condentiality security breach is “sni?ng" in which aprogram is used to steal proprietary information on a networ$ including e-mail

messages company les or condential reports.

&ri'acy

The ability to control the use of information a customer provides about him or

herself to an e-commerce merchant. (n e2ample of a privacy security breach is

a hac$er brea$ing into an e-commerce site and gaining access to credit card or


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other customer information. This violates the condentiality of the data and

also the privacy of the people who supplied the data.

A'ailability

This is the ability to ensure that an e-commerce site continues to function as

intended. 7ne availability security breach is a 3o& *3enial of &ervice, attac$ inwhich hac$ers @ood a %eb site with useless tra?c that causes it to shut down

ma$ing it impossible for users to access the site.

The e!commerce en'ironment holds threats or both consumers and

merchants( )igures *(2 and *(+ o your te,tboo- show the points o

'ulnerability in the transaction process or typical e!commerce

transactions( "ome possible threats include.

malicious code

potentially unwanted programs *9>9s,

phishing and identity theft

hac$ing

cybervandalism and data breaches

3o&:d3os attac$s

and spoong:pharming

&ome *but not all, types of security threats can be ameliorated through

technological means. &ome tools used to protect Internet data include a series

of encryption techni#ues such as public $ey encryptionA they address issues of

integrity authenticity and condentiality of messages. owever there are

limitations to technical security measures and they often presume a secure

organizational environment before they can wor$. If you lose the password

there is no point in encoding the data. The biggest threats are at the ends of

the communication lines where human elements are included. 6ncryption of

any $ind is susceptible to disloyal or disgruntled employees and poor client side

security *such as $eeping your passwords on an insecure 9/ directory,.

6ncryption also slows processors and the entire transaction processA the better

the security the worse the performance.

6ven the best technical security is insu?cient to protect e-commerce sites.

&olid organizational policies and procedures are also re#uired and laws are

needed to deter future crime by punishing e-commerce criminal behavior.


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;ive step process for developing an e-commerce security plan.

9ayment systems


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9ayment by credit card is the most common form of e-commerce payment.

These transactions carry ris$s for merchants in particular and moreover credit

cards are not e#ually distributed. 4illions of users particularly in 4e2ico do

not have a credit card ma$ing it di?cult for them to shop on the %eb. 7ther

online payment methods on the %eb include online stored value payment

systems such as 9ay9al (mazon 9ayments 8oogle /hec$out +ill 4e 1atermobile payment systems digital cash and virtual currencies. 6lectronic +illing

9resentment and 9ayment *6+99, systems are essentially a replacement for the

physical chec$ system in the >nited &tates which remains the dominant form

of payment.

This topic rst summarizes the security threats and solutions that managers of

e-commerce sites need to be aware of and then reviews the dierent payment

systems available on the %eb. The $ey point to ta$e away with respect to

security is that security is a comple2 multi-layered phenomenon that involves

a diverse set of ris$s and a balanced approach. It re#uires three main

elements' special technology organizational rules and procedures and lawsand industry standards

%ith respect to payment systems you could see that the $ey point is that the

%eb has not created completely new methods of payment although it has

changed how methods of payment are implemented. %eb consumers in the

>nited &tates predominantly use credit cards for purchases and eorts to

wean consumers away from their credit cards have generally failed. The


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primary e2ception to this is 9ay9al which still relies on the stored value

provided by credit cards or chec$ing accounts.

8losario 4odulo )


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Topic 10. Ethical, Social and Political Iue

This topic addresses ethical social and political issues. This is important

because e-commerce and Internet technologies have raised serious social

issues. &uccessful business people ta$e these issues very seriously because

good ethics means good business in the long term. 7n the other hand the

costs of doing the wrong thing can be enormous' The conse#uences of

potential litigation are potentially negative for the business. The topic also

ta$es a systematic loo$ at relevant ethical principles ethical analysis and

selected contemporary ethical issues raised by e-commerce.

The case “Internet ;ree &peech' %ho 3ecidesB" discusses the dierent aspects

of free speech on the Internet. There are many con@icting values involved.&ome #uestions for your analysis are'

Is the Internet a form of “public speech"B

ow can the dierent national perspectives on free speech be managed in a

global environment li$e the InternetB

8iven that the Internet is supported by governments and private companies

should these institutional and corporate needs supersede the free speech

rights of individuals on the InternetB

The discussion focuses on three levels' individual *ethical dilemmas, society

*social choices, and policy *laws and regulation,.

6thics is the study of principles that individual or organizations can use to

determine what is right and what is wrong. The three basic principles of ethics

are responsibility accountability and liability. (s free moral agents individuals

organizations and societies are responsible for the actions they ta$e and

should be held accountable to others for the conse#uences of those actions.

1iability is a characteristic of political systems in which a body of law is in place

so that accountability can be enforced. It allows individuals to recover damages

for the actions of other individuals systems or organizations that cause them

damage. 3ue process is a feature of law-governed societies and refers to a

process in which laws are $nown and understood and there is an ability to

appeal to higher authorities to ensure that the laws have been applied

correctly.

(n ethical dilemma is a situation in which there are at least two diametrically

opposed actions each of which supports a desirable outcome. (nalyzing an

ethical dilemma re#uires ve steps'


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C. Identify and clearly the describe the facts.). 3ene the con@ict or dilemma and identify the higher order values.D. Identify the sta$eholders.0. Identify the options that you can reasonably ta$e.E. Identify the possible conse#uences of your options.

There are eight candidate ethical principles that can guide you when

ma-ing ethical decisions. golden rule/ uni'ersalism/ slippery slope/

utilitarian principle/ ris- a'ersion/ no ree lunch/ the $ew or- Times

test/ and the social contract rule(

Fe2t to privacy the most controversial issue related to e-commerce is

Intellectual 9roperty !ights *the protection of the tangible and intangible

products of the human mind,. The three main ways society has chosen to

protect intellectual property are copyright patent and trademar$.

In terms of copyright the main distinction to visualize is the dierence between

an idea and its e2pression'

There is a debate whether society would be better o without intellectual

property law. Intellectual property laws restrict the @ow of ideas music and

other forms of e2pression. 7n the other hand these same laws incentivize

people to create new e2pression.

8overnance addresses who will control e-commerce what elements will be

controlled and how the controls will be implemented. 3uring the early years of

e-commerce it was common to see the Internet as powerful and di?cult for

any government to control. Fow we $now that the Internet can be controlled

just as in other forms of media. Gudges in 6urope and political leaders in /hina

have demonstrated how to control %eb content and behavior. 7ne of the more

interesting governance issues in the >nited &tates is ta2ation of online

purchases. &tates and localities are pushing hard for a slice of the e-commerce

business pie.

9erhaps the greatest challenge in this chapter is to thin$ systematically in

terms of ethical principles laws and acceptable behavior rather than simply

e2press your personal point of view. ;or e2ample some people may rationalize

their downloading of copyrighted material as something they feel good about

because'

They may also rationalize their behavior on the grounds that the people they

steal from *variously the record companies the artists and the promoters, are


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much higher percentages of online usage than others *for e2ample while about

LMK of high income households have Internet access only JMK of medium

level ranges households have direct access,. 9eople are accessing the Internet

via broadband but there are still a number of people accessing Internet via

dial-up and a new mobile audience is emerging.

7nce companies understand who is online they need to focus on how they

behave online. Hotler and (rmstrong present a “general model of consumer

behavior" indicating that buying decision is in@uenced by in-store behavior and

some intervening variables which are in@uenced by independent demographic

variables. %hen the consumer is using the Internet the in-store behavior is

related with what he:she does on the companys web page and the intervening

variables can be modied by tools such as social networ$s and Internet

communications. The online purchasing decision is strongly in@uenced by

shopping convenience easier to compare prices free shipping trusted seller

and price.

The ve stages in the buyer decision process and the online and oine

mar$eting activities used to in@uence them are'

&ome $ey points to ma$e in this section are'


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• 7nline shopping includes both purchasers and browsers.

• 7nline shopping strongly in@uences oine purchases.

• 7nline shopping is largely intentional.

The 3igital /ommerce 4ar$eting 9latform section reviews some basic conceptsin mar$eting and applies them to the online world. +rands allow rms to

dierentiate themselves in the mar$etplace charge premium prices for their

products and thus achieve superior long-term returns on invested capital. It is

important to note here that during e-commerces early years many predicted

the end of brands in a more or less “perfect" digital mar$etplace *the %eb,. In

fact brands have been the $ey ingredient for survival on the %eb and have

helped rms avoid the pitfalls of relentless price competition.

%ith the advent of new technology we have learned that the objectives

of business have remained the same to ma$e a prot. 4ar$eting online has the

same objectives as mar$eting oine e2cept that the tools and the rules of the

game are dierent. It is important to recognize the prole and behavior of an

online customer and learn how to ta$e advantage of the capabilities available

with the Internet. (s you could see this topic focuses on understanding the

customer and some basic concepts in mar$eting that apply to the online world.

Topic 1#. !ar"eting Strategie and Tool

6-commerce has now been around long enough that there are tools that can be

considered “traditional" such as search engine mar$eting display ad

mar$eting *including the use of advertising networ$s ad e2changes and real

time bidding, e-mail and permission mar$eting a?liate mar$eting lead

generation mar$eting and sponsorship mar$eting. Fewer forms of digital

commerce mar$eting including social mar$eting twitter mar$eting blog

mar$eting viral mar$eting mobile mar$eting and local mar$eting which are

also reviewed.

The case “Insight on +usiness case 4obile 4ar$eting' 1and !over &ee$s

6ngagement on the &mall &creen"illustrates some of the ways mobile

mar$eting is dierent from “traditional" online mar$eting. The #uestions for

discussion of this case include'


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The totality of conversations a rm has with its customers through a variety of

media and mar$eting channels is called customer engagement. There are four

generic mar$et entry strategies' rst mover fast follower alliances and brand

e2tenders. The Internet can be used to e2tend the customers e2perience.

&ome traditional tools include' search engine mar$eting display ad mar$eting

e-mail and permission mar$eting a?liate mar$eting lead generation

mar$eting and sponsorship mar$eting.

Fewer Internet mar$eting tools include social mar$eting twitter mar$eting

blog mar$eting and viral mar$eting. &ometimes the techni#ues can be

classied by the technology used for e2ample' mobile mar$eting app

mar$eting and local mar$eting.

The Internet and the %eb provide mar$eters with a whole set of e2citing

mar$eting technologies. This section covers %eb logs coo$ies %eb beacons

databases data warehouses data mining “+ig 3ata" and customerrelationship management systems. 5ou will want to spend some time on each

of these technologies noting that many of them come with a social cost

namely the loss of privacy.


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Internet provides consumers with a whole new environment for interacting with

rms because online behavior is dierent from oine behavior. It provides

consumers a powerful new set of tools to either support or dismiss products

and to have these opinions propagate very rapidly. The Internet presents

mar$eters with ris$s as well as opportunities. &ome tools are old enough to be

considered classic *such as search engines, others have only appeared in the

last ve to ten years li$e social networ$ tools. It is important to understand

that the tools and technologies for online mar$eting are very dierent from

those for oine mar$eting and specialists must understand their potential and

uses.

Topic 1$. !ar"eting Communication

The worlds most dierentiated product is worthless if the message cannot be

conveyed to the potential customer and if the product cannot be delivered atmar$et price.

/ommunications is the foundation of branding as well as sales.


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The main challenge in this topic is to understand the many new types of

mar$eting communications available on the %eb describe their advantages or

disadvantages and outline their changing eectiveness and cost.

The case on video advertising “Nideo (ds' &hoot /lic$ +uy" shows interestinge2amples of how video ads are growing in fre#uency and eective rivaling the

power of television and movie placement ads. &ome #uestions to discuss about

the case include'

• %hat advantages do video ads have over traditional banner adsB

• %here do sites such as 5ouTube t in to a mar$eting strategy featuring

video adsB

• %hat are some of the challenges and ris$s of placing video ads on the

%ebB

• 3o you thin$ Internet users will ever develop “blindness" toward video

ads as wellB

4ar$eting encompasses all of the actions a rm ta$es to establish a

relationship with the consumer and encourage the sale of products. 4ar$eting

includes such things as pac$aging product placement:arrangement and

departments of a physical store or on a %eb site. 4ar$eting communications

focus strictly on methods of communicating the brand name and

communications that directly promote sales. 4ar$eting communications

encompass all methods by which consumers will receive audio visual te2t-

based or any other e2change with a company to strengthen brand name or

promote the sale of products.

7nline mar$eting communications oer immediacy and precision that are not

possible in the oine world. The most eective communications plans combine

both oine and online communications.

There is a variety of dierent types of online advertising' display ads rich

media:video ads paid search engine inclusion sponsorships a?liaterelationships e-mail mar$eting and social advertising on blogs and via social

networ$s and games. ( good way to review the latest trends in this area

includes the focus on the rapid growth in Internet advertising the prevalence of

new ad formats and search engine mar$eting and the increased use of

behavioral targeting and the social issues that this presents.


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7nline advertising constitutes only about CEK of the total advertising mar$et

because advertisers are still concerned about its cost versus its benets and

about how to accurately measure its results. The $inds of products that are

most suited to being advertised online are high-consideration information-

intensive products that consumers will typically want to research prior to

purchasing. /omputer hardware automotive and nancial services companies

are among the heaviest online advertisers for this reason. ;inancial and travel

services which have signicant online commercial potential are also well-

suited to Internet advertising. 4edia products *boo$s music and movies, are

also suited to online advertising although the advertising windows appear to be#uite short after initial introduction.

Internet provides a new set of tools that can be used for mar$eting

communications many of which were not available only a few years ago

*display ads rich media:video ads paid search engine inclusion sponsorships

a?liate relationships e-mail mar$eting and social advertising on blogs and via

social networ$s and games,. It is important to understand how they wor$ and

how those tools can be used to enhance a companys mar$eting eorts.

!emember that the most eective communications plans combine both oine

and online communications.


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Topic 1%. !etric and Tool

7ne of the concerns about online mar$eting is to understand whether it really

wor$s and how to ade#uately measure its costs and benets. The case “Its C<

9.4. 3o 5ou Hnow %ho Is on 5our %eb &iteB" provides an introduction to themetrics used in the industry to measure the eectiveness of advertising online.

1ets answer some discussion #uestions for this case'

• %hat are some of the services oered by (dobes &ite/atalystB

• %hy would you as a webmaster be interested in these servicesB

• %hy is site analysis and customer trac$ing so important to online

mar$etingB

• ow did F+/ >niversal use &ite/atalyst to its benetB

4ost research has demonstrated that display ads are eective for producing

both brand recognition and immediate sales and that this eect is positive

even when consumers do not clic$. &ome people may nd it surprising that

many untargeted impressions may only lead to a tiny level of purchases. This

can be improved dramatically by targeting the advertisement or using e-mail or

pay for inclusion communications. Indeed e-mail response rates are

considerably higher than direct mail banner ads or even traditional media ads.

In general online advertising is more cost-eective than traditional advertising

via oine media such as television radio and newspapers.

>sing the %eb &ite as a 4ar$eting Tool underscores the fact that the %eb site

itself is a major mar$eting communications tool. (lthough this is not a %eb site

design course business managers should at least familiarize themselves with

eective %eb design.

&ome %eb site design features that impact online purchasing are'


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Internet provides a new set of tools that can be used for mar$eting

communications many of which were not available only a few years ago. 7ne

of the concerns about online mar$eting is to understand whether it really

wor$s and how to ade#uately measure its costs and benets. The chapter

provides a list of measurements that can be used to assess the eectiveness of

on-line communications. It is important to understand how online

communications wor$ and how those tools can be used to enhance a

companys mar$eting eorts.


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Topic 1&. The 'uture o( Technology

The early )


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1ets discuss about some other visions based on technology'

Technology ;ocus

It does not ta$e a visionary to $now that technology will become cheaper morepowerful and more @e2ible. It will be possible to store and nd huge amounts

of information using powerful search engines which means that even the

storage model will not be as critical. It is not hard to see either that the

Internet or whatever technology replaces it will have an impact on civilization

perhaps as signicant as the automobile had on )


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+usiness Technologies ;ocus

In the early )


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Gust li$e companies governments will also oer customized products and

services. They will be able to ta$e advantage of technology to oer services

anytime anywhere and in any format thereby fullling their mission of serving

the people. 6lectronic democracy will promote increased citizen involvement

and better accountability as well as improved use of resources.

The !is$s of this Nision

(s in any story loo$ing into the future is not without certain dangers. %e can

classify them as follows' the security ris- *just as tangible assets are

protected today company $nowledge and access to hardware and systems will

have to be protected,A the 'ulnerability to critical ailure *whereby a glitch

could bring down a whole system something li$e the OGurassic 9ar$O lm

syndrome in which a computer malfunction sets the par$Ps dinosaurs free

endangering its visitors, and loss o pri'acy *high information availability willma$e it very tempting to have a O+ig +rotherO overseeing every step people

ta$e,.


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In loo$ing at how things are dierent we have failed to see that things in

reality remain the same. Technology may change problems may be dierent

but people their needs and fulllments remain unaltered. The scale of human

necessities consisting of food shelter and socialization will continue to apply

to individuals. 7verall the outloo$ is optimistic. There will be better products

better information and better #uality of life. The challenges are considerable

but surmountable. ;orecasting what the world of tomorrow will be li$e re#uires

understanding the world of today as well as the steps we have ta$en to get to

where we are. It is up to us to ma$e sure the world ta$es the shape that we

want through hard wor$ and an ongoing analysis of the changes that occur and

their eects on society.


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apuntes para examen final e commerce

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