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Impact of information technology on business
Impact of information technology on business
Impact of information technology on business
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Recommended: Impact of information technology on business
4.724: E-Business
Individual Assignment
Prepared for:
Daniel Vidal
Prepared by:
Nisha Angadi ID: 20130070
Table of Content
Page
Introduction 3
Cybermediaries for Cars 3
Similarities between the cybermediaries 4
Differences between the cybermediaries 5
Benefits provided to the consumers 6
Revenue model 8
Conclusion 9
Reference List 9
Introduction
Nature of doing business, over a period of time has changed with the development in the information technology. It was believed that the reduced cost of transactions done electronically will lead to decrease or disappearance of the traditional intermediaries which will reflect a change in the electronic value chain. The effect of electronic business will restructure the traditional market – Disintermediation where the traditional intermediaries will lose its existence; Re-Intermediation where they will be forced to set apart and will re-develop in the electronic business; and Cybermediation where entirely new markets will be formed for the intermediaries.
For this assignment I have chosen two cybermediaries for fragrances (perfumes). I have discussed the similarities and differences between these cybermediaries. I have also discussed the benefits of cybermediaries to the consumers and revenue model for one of the two cybermediaries. The two cybermediaries are:
1. www.perfumefairy.co.uk
2. http://firesales.co.nz
Part A
Cybermediaries are the intermediaries between the Buyer and the Seller; however they do not possess any products or services. They facilitate the customer to purchase goods and services online.
Both the cybermediaries chosen by me offer a wide range of per...
... middle of paper ...
...e product he is connected to e-bay site who may have to pay a referral fee.
• Subscription – The seller is responsible to pay these charges. It is usually a fixed fee for a limited period. As in case of Perfumefairy where a customer has to sign up before subscribing for a newsletter.
• Product or Service Sales – This revenue model is alternatively called ‘direct to customer’ model. Customer comes in direct contact through the cybermediary, if the buyer buys the product which is termed as product sale, the cybermediary can get commission as agreed with the seller. In case of Perfumefairy there is an option where the consumer is directly taken to the company site where he has the facility to purchase a product online.
• Transaction Fee – It refers to the fee which is based on each transaction. Generally, it is apt for the information based or knowledge based products.
Price - Price of the product is set for the customer to purchase the product. It also determines profit.
That means all costs related to the service provided to the customer will be charged on that service and no transfer of the cost of the service to any other stage because services are provided according to the costumers' orders.
Priceline.com enables sellers to generate extra revenue without disrupting their existing distribution channels or retail pricing structures. In this sense it uses the Internet's communication and information abilities to turn customary retailing upside down; alternatively it opens up to the individual consumer a form of transaction which has previously only been open to corporate entities.
Online Auction e.g. eBay. In common with new online retail brands, before the emergence of Internet technologies, this concept was not possible. Essentially eBay is a Consumer-to-Consumer (C2C) business. For more information on how online auctions work, see the lesson on eMarketing and price.
Cost Relative to Total Purchases in the Industry – If a company thinks that they are being overcharged, they may switch to another supplier.
2. Web Portal Listing Fee and Convenience Fee (Sellers charged listing fee for selling on FlipKart and Customers charged Convenience Fee for faster
It is very important component of the marketing mix. It is the input or money invested for a product or amount paid by the customer to enjoy the service of the product. It depends on various factors such as cost of production, segment targeted, ability of the market to pay, supply – demand and many other direct and indirect factors. The price of
The absence of clothing has become omnipresent in today’s advertising. Some ads focus on the removal of clothing, while others focus on no clothing at all. This idea is ever-present in fragrance advertising, as it forces the viewer to focus on the product over the appearance of one’s clothing. The absence of clothing creates a very specific mood for the ad: sex. The ad is able to portray a meaning that is not even included in the ad just by removing pieces of clothing. Fragrance advertising, such as Gucci Guilty, uses sex as a tool to sell a product without knowing anything about it.
Cash- Mr. Price encourages customers to pay with cash an and contribute to cash flow
Business today is inextricably intertwined with technology, from the smallest home office, to a multinational corporation with multiple monolithic legacy application. It is impossible to be in business today without confronting the issues of technology. The way we do business today is different than 30 years ago. Technology has evolved around the areas of telecommunication, travel, stock market, shipping even around our daily lives. E-commerce a system by which people can buy, sell and deal without even seeing the person on the other side has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking. The Internet, a boon to all business, is playing a part of a catalyst; it links millions of customers to its suppliers and vice versa due to this, manufactures are able to cut the role of middlemen and are able to deal with the customers, giving them the ability for direct input from the customers about their choices and views of their product. The busi...
One of the fundamental factors that has affected the process of economic globalization is the improvements in the technology of transportation and communications. This has reduced the costs of transporting goods, services, and factors of production and of communicating economically useful knowledge and technology. There is no doubt that advances in information and communications technology are the most important technological advances of the past quarter century (Mussa, 2000). By far, the most important and business altering advancement is the internet. There is evidence everywhere that the internet has greatly affected international trade. The internet has opened up the world, and brought it right into everyone's home and business. In addition, technology and the internet have greatly reduced the costs of doing business. Even the smallest operation can now go global via the internet at almost no cost. However, there are still some problems that face these e-commerce activities. These problems are shot-term challenges and can be met. The key issues center around two areas:
Price resulted to be the main point for customer to judge what is offered in the market (Monroe, 2003; Oliver, 1997). Price is also a main factor in transaction relationship where it is one of the medium used by marketers to counter the market, either in attracting or in retaining customer or as a element in competing ...
E-business and e-commerce are terms that are sometimes used interchangeably, and sometimes they are used to differentiate one vendor’s product from another. In both cases, the e stands for "electronic networks" and describes the application of electronic network technology - including Internet and electronic data interchange (EDI) - to improve and change business processes (Bartels, 2000)
The Internet's popularity has dramatically escalated over the past few years and has become an integral part of daily life. It has wide spread uses ranging from obtaining information, downloading files, business advertisement to Internet commerce, which plays a major part in Internet practice. Our social structure is pressuring society to connect to the Internet, with schools world wide becoming more Web based and universities now have lectures, which can be solely viewed over the Internet. Within the next few years the potential and capabilities of the Internet are endless. With that in mind the following assignment will examine a continuously flourishing component of the Internet, Internet shopping. Although Internet shopping is on the increase, it will never surpass conventional shopping, as the ?experience of shopping? is lost, it is open to fraud and the ?try before you buy? concept does not occur. From this information, it could be stated, ?The promise of Internet shopping is drowning in a flood of deceit, customer dissatisfaction, fraud and misappropriation. The Internet is best known for being a information superhighway, not a superhighway to the shopping mall.?
Electronic Commerce as popularly as E-commerce has become a big deal in our growing economy due to the increase use of online systems. E-commerce now of the fastest growing business in the world. The technology has change the way of business. Business that have physical location have now made it an effort to focus their online business. It is the new sort of business platform where you can make use of different technologies like electronic data interchange or transfer document electronically. Online business is an effective of sales.