MODULE 1 – INTRODUCTION TO E-COMMERCE 1

MODULE 1 – INTRODUCTION TO E-COMMERCE

INTRODUCTION

Today, we are in the middle of another transition. Social networks such as

Facebook, Twitter, Youtube, Pinterest and Instagram, which enable users to
distribute their own content such as videos, music, photos, personal information,
commentary and blogs have rocketed to prominence. At the same time, mobile
devices and apps have replaced the traditional desktop platform and web
browser as the common method for consumers to access the Internet. The
mobile platform infrastructure has also given birth to another e-commerce
innovation.

In this module, we first define e-commerce and then discuss the difference
between e-commerce and e-business. Introduce the major technological building
blocks underlying e-commerce: the Internet, Web and mobile platform, unique
features of e-commerce technology and major types of e-commerce.

LEARNING OUTCOMES
After reading this module, the learner should be able to:
1. Discuss the basic concepts on e-business and e-commerce;
2. Trace the evolution of e-commerce;
3. Describe the unique features of e-commerce technology and their
business significance;
4. Give example of the major types of e-commerce.

TIME

The time allotted for this module is six (6) hours.

LEARNER DESCRIPTION

The participants in this module are BSBA third year students.

ELECTIVE 1 – E-COMMERCE AND INTERNET MARKETING

 MODULE 1 – INTRODUCTION TO E-COMMERCE 2

MODULE CONTENTS

LESSON 1.1. E-business and E-commerce

The rapid growth and change that has occurred in the first two decades of e-
commerce represents just the beginning of e-commerce revolution. Technology
continues to evolve at exponential rates. This underlying give rise to presents
entrepreneurs with new opportunities to create new business models. Recent
statistics have estimated the internet population in the Philippines to be the
fastest growing in the world. It is determined to have enjoyed a growth rate of
530% over the last 5 years. The E-Commerce industry is also set to grow at an
annual growth rate of 101.4% between 2016 and 2020. The Philippines is home
to a sizeable youth population and is well placed to see continued online retail
activity in the coming years (“Philippines e-commerce to reach Php200bn by
2020”, 2019).

Source: [Link]

Definition of E-Business
Analytics
1. E-business refers to the digital enabling of transactions and processes
within a firm involving information systems under the control of the firm
(Laudon & Traver, 2018).

ELECTIVE 1 – E-COMMERCE AND INTERNET MARKETING

 MODULE 1 – INTRODUCTION TO E-COMMERCE 3

2. E-business refers to a broader definition of e-commerce, not just the

buying and selling of goods and services, but conducting all kinds of
business online such as servicing customers, collaborating with
business partners, delivering e-learning, and conducting electronic
transactions within an organization (Turban, E., King, D. Lee, J.
K.,Liang, T.P. & Turban, D., 2015).

3. E-business refers to the use of the Web, Internet, intranets, extranets

or some combination thereof to conduct business. E-business is similar
to e-commerce, but it goes beyond the simple buying and selling of
products and services online. E-business includes a much wider range
of businesses processes, such as supply chain management,
electronic order processing and customer relationship management.
([Link])

Definition of E-commerce

1. E-commerce involves the use of Internet, the web and mobile apps
and browsers running on mobile devices to transact business (Laudon
& Traver, 2018).

2. E-commerce refers to using the Internet and intranets to purchase,

sell, transport, or trade data, goods, or services (Turban et al., 2015).

3. E-commerce is a business model that lets firms and individuals buy

and sell things over the internet ([Link])

Activity 1.1.

 Watch the video lecture “Introduction to E-commerce”

 Watch the video “E-commerce vs. E-Business”. Available from

[Link]

Study Questions

After learning about the different definitions of E-business and E-

commerce, can you now differentiate E-business and E-commerce.

ELECTIVE 1 – E-COMMERCE AND INTERNET MARKETING

 MODULE 1 – INTRODUCTION TO E-COMMERCE 4

LESSON 1.2. Evolution of E-commerce

It is difficult to pinpoint just when e-commerce began. There were several

precursors to e-commerce. However, none of these precursor systems had the
functionality of the Internet. When we think of e-commerce today, it is linked to
the Internet. Although e-commerce is not very old, it already has a history which
can be usefully divided into three periods: 1995-2000, the period of inventions;
2001-2006, the period of consolidation, and 2007-present, a period of reinvention
with social, mobile and local expansion.

Source: E-commerce 2017, Laudon & Traver

Activity 1.2.

 Read an article on “How E-commerce began: History and Evolution” by

Spiral click. Available from [Link]
evolution-of-ecommerce

ELECTIVE 1 – E-COMMERCE AND INTERNET MARKETING

 MODULE 1 – INTRODUCTION TO E-COMMERCE 5

Study Questions

Trace the evolution of e-commerce by writing the features (application or

tool used) in the e-commerce as employed in the following timeline:

1960 - 1990
1990 - 1994
1995 - 2000
2001 – 2010
2011 - present

LESSON 1.3. Features of E-commerce Technology

Figure 2 illustrates eight unique features of e-commerce technology that

both challenge traditional business thinking. These unique dimensions of e-
commerce technologies suggest many new possibilities for marketing and
selling. A powerful set of interactive,
personalized and rich messages are
available for delivery to target audiences.

Ubiquity. A physical place you visit in order

to transact. For example, television and radio
typically motivate the consumer to go
someplace to make a purchase. It is
available just about everywhere at all times.

Global Reach. E-commerce allows business

transactions on the cross cultural, regional
and national boundaries that can be more
convenient and more effective as compared Figure 2 Eight unique features of
E-commerce technology
with traditional commerce.

Universal Standards. One unusual feature of e-commerce technology is that the

technical standards of Internet, shared by all nations around the world. Standard
can greatly affect the market entry cost and considering the cost of the goods on
the market.

Information Richness. This refers to the complexity and content of message

(Laudon & Traver, 2018). The richness of traditional markets makes them a
powerful selling or commercial environment. Advertising and branding are
important part of e-commerce.

ELECTIVE 1 – E-COMMERCE AND INTERNET MARKETING

 MODULE 1 – INTRODUCTION TO E-COMMERCE 6

Interactivity. E-commerce technologies allow for interactivity, meaning they

allow for two-way communication between merchant and consumer and among
consumers.

Information density. The density of information in the Internet has greatly

improved, as long as the total amount and quality of information to all market
participants, consumers, and merchants were available. The electronic
commerce technology reduces information collection, storage and
communication costs. At the same time, accuracy and timeliness of the
information technology greatly increase.

Personalization and Customization. E-commerce technology permit

personalization, merchants can target their marketing messages to specific
individuals. Technology also permits customization. Merchants can change the
delivered products or service based on user preferences or behavior.

Social Technology. E-commerce technologies have evolved to be much more

social by allowing users to create and share content with a worldwide community.
When you want to sell a product, you can put the information about your product
on a social media site.

Activity 1.3.

 Watch the video lecture “Introduction to E-commerce”

LESSON 1.4. Types of E-commerce

There are a number of different types of e-commerce and many different

ways to characterize them.

Business-to-Consumer (B2C) E-commerce

The most commonly type of e-commerce in which online businesses attempt to
reach individual consumers. B2C e-commerce includes purchases of retail
goods, travel and other types of services and online content.

Business-to-Business (B2B) E-commerce

The largest form of e-commerce in which businesses focus on selling to other
businesses.

Consumer-to-Consumer (C2C) E-commerce

Consumer-to-Consumer (C2C) type e-commerce encompasses all electronic
transactions of goods or services conducted between consumers. These provide

ELECTIVE 1 – E-COMMERCE AND INTERNET MARKETING

 MODULE 1 – INTRODUCTION TO E-COMMERCE 7

a way for consumers to sell to each other with the help of an online market maker
also called platform provider.

Mobile E-commerce (M-commerce)

Mobile e-commerce refers to the use of mobile devices to enable online
transactions. Mobile consumers can purchase products and services, make
travel reservations, use expanding variety of financial services and access online
content.

Social E-commerce
This type of e-commerce enable by social networks and online social
relationships.

Local E-commerce
A form of e-commerce that is focused on engaging the consumer based on his or
her current geographic location. Local merchants use a variety of online
marketing techniques to drive consumers to their stores.

Activity 1.4.

 Watch the video “Major types of E-commerce” Available from

[Link]

Study Questions

As an assignment, search the web for five (5) companies in the

Philippines. List them down. What types of e-commerce business model(s) do
they used? Create a presentation using Powtoon describing each company (take
a screenshot of each). Explain why it fits into categories of e-commerce to which
you have assigned.

Rubric for Grading

Requirements Points
Presentation was informative 10
Appropriate image were used to support text 5
Movie is between 45 minutes to 1:00 minutes long 5
Creativity and originality 15
Last slide is the Works Cited Page. All pictures are cited 15
properly. At least 5 pictures from the Internet must be
used. Music must be cited as well.
Total 50

ELECTIVE 1 – E-COMMERCE AND INTERNET MARKETING

 MODULE 1 – INTRODUCTION TO E-COMMERCE 8

MODULE REFERENCES

Laudon, K. C & Traver, C. G. (2018), E-commerce 2017: Business, Technology

and Society

Turban, E., King, D. Lee, J. K.,Liang, T.P. & Turban, D. (2015). Electronic
commerce: A Managerial and Social Network Perspective

“E-commerce vs. E-Business”. Available from

[Link]

[Link]

[Link]

“How E-commerce began: History and Evolution” by Spiral click. Available from
[Link]

“Major types of E-commerce” Available from

[Link]

ELECTIVE 1 – E-COMMERCE AND INTERNET MARKETING