Chapter 11 – Social Media
Information Systems
Sections Q1-Q4
Skip Section Q5



Define e-commerce and important types of
e-commerce.
Know the benefits of e-commerce and how
e-commerce is different from traditional
business transactions.
Understand the implications of the Long
Tail Theory.

Merchant
◦ Business-to-Consumer (B2C)
◦ Business-to-Business (B2B)
◦ Business-to-Government (B2G)

Nonmerchant
◦ Consumer-to-Consumer (C2C)
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Interactive Marketing
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Storefront
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Web Store

Portal

global reach

24/7 service
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disintermediation
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mass customization
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value-added services
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Knowing status of transaction
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Finding the product

Buying a product examined only virtually

Trusting a seller known only virtually

Contact between buyer and seller between
transactions
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Simulate in-store experience
◦ Second Life
◦ Fashionista
http://www.youtube.com/watch?v=ZnBcqV9POkY&feature=p
layer_embedded#
Adidas
American Apparel

Virtual Communities

Blogs

Social Networking Sites (UGC)
◦
◦
◦
◦
Facebook
Twitter
Flickr
YouTube

Update regularly

Let customers contribute

Avoid direct advertising

Standards for common business documents
000327Chicago Office Supply 1411 E.
Michigan
Chicago IL606061978
Michigan Ave.
Chicago
IL6061212132009
Your
Truck0054126Laser printer toner
cartridge46.500085433Rewritable CDs – box of
1012.500104733Copier paper – box19.50
<PO>000327<VName>Chicago Office Supply
<Vaddress>1411 E. Michigan
<Vcity>Chicago
<Vstate>IL<Vzip>60606<ShipAddress>1978
Michigan Ave.
<ShipCity>Chicago
<ShipState>IL<ShipZip>60612<PODate>1213200
9<ShipDate>
<Via>Your
Truck<Qty>005<ProductNo>4126<Desc>Laser
printer toner
cartridge<Price>46.50<Qty>0085<ProductNo>54
33<Desc>Rewritable CDs – box of
10<Price>12.50<Qty>010<ProductNo>4733<Des
c>Copier paper – box<Price>19.50
<PO>000327
<VName>Chicago Office Supply <Vaddress>1411 E. Michigan
<Vcity>Chicago <Vstate>IL<Vzip>60606
<ShipAddress>1978 Michigan Ave.
<ShipCity>Chicago
<ShipState>IL<ShipZip>60612
<PODate>12132009
<ShipDate>
<Via>Your Truck
<Qty>005<ProductNo>4126
<Desc>Laser printer toner cartridge
<Price>46.50
<Qty>0085<ProductNo>5433
<Desc>Rewritable CDs – box of 10
<Price>12.50
<Qty>010<ProductNo>4733
<Desc>Copier paper – box
<Price>19.50
Seller
Buyer
1. Purchase Order
2. Item & Invoice
3. Payment
Authorization
6. Deposit
Notification
5. Payment
Notification
4. Payment
Seller's Bank
Buyer's Bank
Chris Anderson, Wired’s Editor in Chief
Total $ Sales of each item

Inventory Items



Amazon - "We sold more books today that
didn't sell at all yesterday, than we sold today
of all the books that did sell yesterday.“
Netflix – “In aggregate, unpopular movies are
rented more than popular movies.”
iTunes – “A miss is just another sale with the
same margins as a hit.”



Internet allows businesses to tap into the
Long Tail market.
Lowering search costs could create a longer
tail by increasing sales of hard to find
products
The Internet allows both lower prices and
increased product variety.

Larger market overall

Improved customer service

Greater cultural diversity