Transcript Document

E-environment
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Identify the different elements of an organization
macro-environment that impact on an
organizations e-business and
e-marketing strategy
Assess the impact of legal, privacy and ethical
constraints or opportunities on a company
Assess the role of macro-economic factors such as
governmental e-business policies, economics,
taxation and legal constraints.
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What are the constraints placed on developing
and implementing an e-business strategy by the
e-environment?
How can trust and privacy be assured for the
customer while seeking to achieve marketing
objectives of customer acquisition and retention?
Assessment of the business relevance of
technological innovation.
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List all the social, legal and ethical issues that the
manager of a sell-side e-commerce web site needs
to consider to avoid damaging relationships with
users of his or her site or which may leave the
company facing prosecution.
You can base your answer on issues which may
concern you, your friends or family when you
access a web site.
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Social-influence consumer perception of Internet
use for e-commerce
Legal & Ethical-determine what can be promoted
and sold online
Economic-affect spending patterns
Political-Determine the adoption and the future
of Internet
Technological-offer new opportunities
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E-Commerce Manager has to monitor the
changes of the Macro-environment (also called
environment scan)
Among the 5 factor type, Legal factor is one of
the most important.
P.195, Table 4.2 Lists the Key legal issues that
have direct impact on e-commerce
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Cost of Access
Value proposition
Ease of use
Security and trust
Fear of the unknown
Skills
Usage location
 Access device
 Connection speed
 ISP
 Experience level
 Usage type-work, social, entertainment, etc.
 Usage level-hours or minutes / month
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Variation in broadband subscribers per 100 inhabitants, by technology,
December 2007
Figure 4.2
Source: OECD (www.oecd.org/sti/ict/broadband)
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Finding products and services online is a popular
web activity
Online research occurs at every phase of
purchase, even for offline purchases
Figure 4.3
Percentage by category who bought offline after researching online
Source: BrandNewWorld: AOL UK / Anne Molen (Cranfield School of Management) /Henley Centre, 2004
Community
Survey
Entertainment
Download
Product trial
Search
Information
Interaction
Make purchases
Exploration
Games
News
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The role of social media and friends in
influencing sales was highlighted by this research
http://eiaa.net/ftp/casestudiesppt/EIAA_Onlin
e_Shoppers_Report.pdf
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Price comparison web sites (61%)
Web sites of well-known brands (59%)
Newspapers/magazines (58%)
Customer web site reviews (58%)
Expert web site reviews (57%)
Retailer web sites (57%)
Sales people in shops (50%)
Content provided by ISPs (38%).
Figure 4.4
Development of experience in Internet usage
Figure 4.5
Variation in purchase rates of online products and services in Europe
Source: European Interactive Advertising Association (www.eiaa.net), Mediascope Eupore 2008
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Why localize a website? Is it important?
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What to be considered for localization?
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Singh and Pereira (2005) provide an evaluation
framework for the level of localization:
Standardized web sites (not localized). A single site serves
all customer segments (domestic and international) Many
sites, especially small business sites fall into this category
 Semi-localized web sites. A single site serves all customers;
however, there will be contact information about foreign
subsidiaries available for international customers. Many
sites fall into this category http://scotiabank.com/
 Localized web sites. Country-specific web sites with
language translation for international customers, wherever
relevant. 3M (www.3m.com) has adapted the web sites for
many countries to local language versions.
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Highly localized web sites. Country-specific web sites
with language translation; they also include other
localization efforts in terms of time, date, postcode,
currency formats, etc. Dell (www.dell.com) provides highly
localized web sites
• Culturally customized web sites.Web sites reflecting
complete ‘immersion’ in the culture of target customer
segments; as such, targeting a particular country may
mean providing multiple web sites for that country
depending on the dominant cultures present.
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What are ethical standards?
Why is it so important for e-commerce?
What’s privacy?
Why privacy a big deal for e-commerce?
Identity fraud in Canadahttp://www.safecanada.ca/identitytheft_e.asp
Online businesses and e-marketer typical need
these data
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Contact info
Profile info—segmentation
Access platform
Behavioural info on a single site
Behavioural Info on multiple sites
Anything else?
Table 4.6
Types of information collected online and related technologies
Table 4.6
Types of information collected online and related technologies (Continued)
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Ethical issues concerned with personal
information ownership have been usefully
summarized into four areas:
Privacy – what information is held about the
individual?
Accuracy – is it correct?
Property – who owns it and how can ownership
be transferred?
Accessibility – who is allowed to access this
information, and under which conditions?
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Fletcher (2001) provides an alternative
perspective, raising these issues of concern for
both the individual and the marketer:
Transparency – who is collecting what
information?
Security – how is information protected once
collected by a company?
Liability – who is responsible if data is abused?
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Fairly and lawfully processed
processed for limited purposes
adequate, relevant and not excessive
accurate
not kept longer than necessary
processed in accordance with the data subject's
rights
secure
not transferred to countries without adequate
protection
Table 4.2
Significant laws which control digital marketing
Table 4.2
Significant laws which control digital marketing (Continued)
• In Canada, Personal Information Protection
and Electronic Documents Act (PIPEDA)
establishes principles for collection, use, and
disclosure of personal information.
http://laws.justice.gc.ca/en/showdoc/cs/P-8.6///en?page=1
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Provinces have parallel legislation
Standard information collected about web site visitors from the
DaveChaffey.com site
Figure 4.7
Source: Feedjit
Information flows that need to be understood for compliance with data
protection legislation
Figure 4.8
• Market e-commerce business
o Domain name and brand/trademark
protection
o Using competitor name in meta-tag and payper-click advertising
o Accessibility law
• Forming Electronic Contracts
• Country of origin principle
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Distance selling law
Making and accepting payment
Others—ref. pp. 226-227
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Do you think e-commerce have positive effect
on environment?
Read the Box 4.6 on page 228
Figure 4.10
HSBC virtual forest
Source: www.hsbc.co.uk
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What do you know about the e-commerce taxes?
Tax Jurisdiction
 In general, taxes are collected in the jurisdiction
where consumption take place
 This applies to EU and Canada
 The US federal government doesn’t collect taxes
for online purchases
 States may have different legislations
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The e-commerce potential would be determined by the
economic health and competitive environment of the
country.
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How can governments improve the health of
their e-economies ?
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Political action enacted through government agencies
to console the adoption of the internet can include:
Promoting the benefits of adopting the internet for
consumers and business to improve a country’s
economic prosperity;
Enacting legislation to protect privacy or control
taxation, as described in previous sections;
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Providing organization with guidelines and assistance
for compliance with legislation
Setting up international bodies to coordinate the
internet such as ICANN (the internet corporation for
Assigned names and numbers, www.icann.com) and
other independent organizations controlling internet
technology.
Internet governance:
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Internet governance describes the control put
in place to manage the growth of the internet
and its usage. Governance is traditionally
undertaken by government, but the global
nature of the internet makes it less practical for
a government to control cyberspace.
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E-Government
E-government is distinct from internet
governance.
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E-Government (short for electronic government, also
known as e-gov, digital government, online
government, or connected government) is digital
interactions between a government and citizens
The-Government delivery models can be briefly
summed up as:
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G2C (Government to Citizens)
G2B (Government to Businesses)
G2E (Government to Employees)
G2G (Government to Governments)
C2G (Citizens to Governments)
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Rate of change
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Which new technologies should we adopt?
 Monitoring for new techniques
 Evaluation – are we early adopters?
 Re-skilling and training
Figure 4.12
Diffusion–adoption curve
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Technology networking—monitoring, scouting,
and sharing
Crowd-sourcing—facilitate access to ideas from
customers, partners, inventors, etc. e.g.,
innocentive.com
Technology hunting—structured review of start-up
companies for new tech capability
Technology mining—search the published
documentations. E.g., googlealert
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What are the SLEPT factors?
How could they affect e-commerce?
What’s a strategy to adopt in coping with the
SLEPT factors?