Lesson content
Learning objectives
To provide students with insight into e-commerce and related issues, and to equip them with a framework for interpreting this kind of distribution formula.
Lesson content
- E-commerce: definition and models.
- Potential advantages of digital channels for consumers as well as companies.
- Consumer-level barriers to development of e-commerce: technological barriers, psycho-cultural barriers, economic barriers, legal barriers.
- E-commerce life cycle for companies: introduction, development, full-scale integrated use.
- Effects of e-commerce on company-customer relationship: loyalty as competitive advantage.
- Use of digital channels as sales channels and their interrelation with other channels used by company.
- Role of new intermediaries in management of electronic channels.
- Effects of new technologies on consumer shopping experience.
- Seven Cs model.
E-commerce and its various forms.
A definition
“process of selling goods, services and information at a distance where both parties interact electronically for either part or all of the transaction, using computers, web-tvs or other devices to establish a connection between people who are physically distant” (Ottimo, 2000).
Business to Business (B2B)
Online transactions between two or more companies.
Business to Comsumer (B2C)
Online transactions between companies and consumers.
Consumer to Consumer (C2C)
Transactions between one consumer and another using sites specially created and run by businesses.
Advantages of e-commerce
Advantages for customer
- Distance and geographical boundaries no longer a problem;.
- Time restrictions are non-existent.
- Reduction in asymmetry of information.
- Word of mouth information available online.
- Interaction with producer.
Advantages for business
- Extends geographic market area.
- Can implement one-to-one and e-CRM marketing policies.
- Can see customer decisions in real time.
- Sales system can be integrated into overall computer system.
E-commerce in Italy
Barriers to development of e-commerce
Web, Marketing and web presence
Focal point
Customer loyalty linked to impossibility of “face to face” contact.
Opportunities
- Sales process improvement (customer targeting).
- Shopping experience improvement (customization).
- User experience improvement (support).
Obstacles
- Fear of being cannibalized by traditional sales’ channel.
- Need to attract customer attention and gain their trust.
- Site only used for “window-shopping”.
Web presence rates
Basic features of commercial service
Pellegrini, 1998
E-commerce potential
Web and stages of buying process
The seven Cs model
Le lezioni del Corso
1. Retail services and distribution formulae
3. Development of different types of retail and wholesale businesses
6. Management control in the retail industry
7. The management of marketing operations
8. Purchasing and logistics management
9. Category management in large retail companies
11. Technological innovation in retail management
12. Retail distribution policy
13. Management of Vertical relationships in Distribution Channels
