The document discusses the topics of e-commerce and customer relationships on the internet. It provides an overview of the history and development of e-commerce beginning in the 1970s with electronic funds transfer between large corporations and financial institutions. By the 1990s, electronic data interchange was used by more types of businesses. The document also discusses different types of e-commerce models including business-to-business, business-to-consumer, peer-to-peer, and consumer-to-business. Additionally, it covers factors that affect acquiring, retaining, and the buying process of customers, as well as the implementation of e-CRM strategies in customer relationships.

1. Topic
E-Commerce and Customer
Relationships on the Internet

2.  Distributing, buying, selling and marketing
products and services over electronic systems
 E-business for commercial transactions
 Involves supply chain management, e-
marketing, online marketing, EDI
 Uses electronic technology such as:
- Internet
- Extranet/Intranet
- Protocols

3.  EC applications first developed in the early 1970s
- Electronic funds transfer (EFT)
 Limited to:
- Large corporations
- Financial institutions
- A few other daring businesses

4.  Electronic data interchange (EDI)—electronic
transfer of documents:
- Purchase orders
- Invoices
- E-payments between firms doing business
 Enlarged pool of participants to include:
- Manufacturers
- Retailers
- Service providers

5.  EC Successes
- Pure online
◦ eBay
 VeriSign
 AOL
 Checkpoint
- Click-and-mortar
 GE
 IBM
 Intel
 Schwab
 EC Failures
- E-tailors began to fail in 1999
- This does not mean that EC’s days are numbered
- Large EC companies like Amazon.com are expanding but
success or failure is not certain

6.  Transformation of economic activity into
digital media
- Exchange information, content, agreements, and
services among parties that are connected to
through the Internet.
 Enables new ways of creating, delivering and
capturing value to customers.
- Availability
- Convenience

7.  The Internet is the perfect vehicle for e-
commerce because of its open standards and
structure.
 It’s cheap and relatively easy to use it as a
medium for connecting
customers, suppliers, and employees of a firm.
 The Internet allows big businesses to act like
small ones and small businesses to act big.
 Web-based solutions must be easier to use and
more convenient than traditional methods if a
company hopes to attract and keep customers.

8.  Business to Business (B2B) refers to the full spectrum
of e-commerce that can occur between two
organizations.
This includes purchasing and procurement, supplier
management, inventory management, channel
management, sales activities, payment management
&service and support.
Examples: FreeMarkets, Dell and General Electric
 Business to Consumer (B2C) refers to exchanges
between business and consumers, activities tracked
are consumer search, frequently asked questions and
service and support.
Examples: Amazon, Yahoo and Charles Schwab & Co

9.  Peer to Peer (C2C) exchanges involve
transactions between and among consumers.
These can include third party involvement, as
in the case of the auction website Ebay.
Examples: Owners.com, Craiglist, Monster
 Consumer to Business (C2B) involves when
consumers band together to present
themselves as a buyer in group.
Example: www.planetfeedback.com

10.  E-CRM is:
 Applying…
Internet and other digital technology…
(web, e-mail, wireless, iTV, databases)
 to…
acquire and retain customers
(through a multi-channel buying process
and customer lifecycle)
 by…
improving customer knowledge, targeting,
service delivery and satisfaction

11.  Factors, affecting acquiring of customers of
e-commerce.
 Factors, affecting the retention of customers.
 Factors, affecting the process of buying of
customers.

12.  The stages of CRM consist of the following
three phases:
◦ 1) Acquisition of customers
◦ 2) Retention of customers
◦ 3) Extension of customers.

13.  Targeting is more effectively.
 Customers have become more powerful as they are
more informed.
 Customer is the leading part in the relationship
with the organization. He can “pull” information he
needs.
 Increase depth, breadth and nature of relationship.
 Lower cost.
 Personalization in the relationship with customers.

14.  Internet penetration.
 Income of household.
 Number of home PC.
 Level of computer literacy of Internet users.
 Type of Internet connection.
 Trust of customers in e-commerce (Novak, 2002)
 Website usability( Nielsen, 2000)
 Customer confidence and trust in Internet.
 Onsite resources
 Relationship services. It includes personalization
and virtual communities as means of building
relationships with customers.
 Easy navigation of the web-site (Hoffman and
Novak, 2001)
 Design of the web-site.
 Content of the web-site.