Chp12 economics, global and other issues in ec

Chapter 12

Functions of market◦ Matching buyer and sellers

◦ Facilitating of transactions

◦ Institutional infrastructure

Information and entertainment products

Processes and services

Symbols, tokens and concepts

The major components and players of a market space◦ Digital products: different cost curve, (table

12.2)◦ The consumer : millions of people world wide◦ The seller: unlimited number of pages in store

front◦ The infrastructure companies◦ Intermediation◦ Support services◦ Content creators

Lower buyers search costs Speedy comparison Differentiation Lower costs

Cost curves Bundling products and services Quality assurance Online vs. offline prices

Search costs Lack of privacy Incomplete information

Potential winners and loser in EC (page 473)

Legal issues Financial issues Language

New entrants

SupplierSupplierss

Industry Industry competitorcompetitor

ssbuyerbuyer

ss

Substitute Substitute ProductsProducts

Virtual Communities

Global Electronic commerce

Electronic commerce in small companies

Research in EC

The future of EC