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Chapter 2
Retailing in
Electronic Commerce
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Learning Objectives
❚Define the factors that determine the
business models of electronic marketing
❚Identify the critical success factors of direct
marketing
❚Design the desirable relationship in a direct
marketing setting
❚Analyze the critical success factors of
electronic intermediaries
❚Identify the typical products that sold well in
the electronic market
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❚Observe the reactive strategy of traditional
department stores
❚Discuss whether electronic commerce should
always target global markets
❚Describe the consumer’s shopping
procedures on the Internet
❚Discuss the types of aiding-comparison-
shopping devices
❚Describe the impact of EC on
disintermediation and re-intermediation in
retailing
Learning Objectives (cont.)
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Overview of Electronic Marketing Structure
❚Business-oriented Electronic Marketing (B2B)
❙Needs more precise record keeping, trackability,
accountability, and formal contracts, usually with
high volume of transactions and large amount
payments
❚Consumer-oriented Electronic Marketing (B2C)
❙Mostly online; on the Internet
❙Growing offline too, mainly by using smart cards,
although it is still experimental
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Advantages of Electronic Marketing
❙Direct marketing
❙Customization
❙Online customer service
❙Electronic shopping malls:
❘Intermediaries (e.g. Internet Mall)
❘Stores (e.g. Amazon, J.C.Penney Online)
❙Electronic intermediaries
❙Global marketing
❚Customers can order from cyberstores 24
hours a day, 7 days a week from any place in
the world