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Question		Answer
network effects start learning		the value a user derives from a network relates to the number of users in the network; the value of network is proportional to n2 users: Metcalfe's Law -> two network users can make 1 connection, 5 can make 10, number of possible connections n(n-1)/2
e-commerce start learning		use of the Internet and Web to transact; began in 1995 and grew exponentially; moved from desktops to smartphones; three major segments: retail goods, travel and services, online content
e-commerce in different contexts start learning		social, mobile, local
two types of network externalities start learning		positive - an additional network user increases value to all other users; negative - an addiotnal network user decreases value to all other users
plaftorm ecosystems start learning		platforms actively encourage third-party providers to integrate products and services with their software, creating ecosystems -> exchange of value, platforms increases the value it offers to users
one-sided market start learning		large share of value is derived from a single class of users; messaging services, telephone networks
two-sided market start learning		value is derived from two categories of network users, more complex as firms must consider interaction between the two sides; payment services, video game consoles, airBnb, Uber
same-sided network effects start learning		increasing value to a class of users resulting from an increase in the number of users from that class; example: the added value fro. your friends joining WhatsApp
cross-side network effects start learning		increasing value to a class of users resulting from an increase in the number of users from another class; example: greater choice on AirBNB, a vendor offering a certain payment option, video game players and developers
positive feedback loop start learning		an increase in A leads to an increase in B which leads to an increase in A
collaborative consumption or sharing economy start learning		use of under-utilised assets; car sharing, tools sharing
servitization start learning		business model in which companies move from selling products to selling integrated products and services with the aim of: better meeting customers' needs, improving business results and competitive position
Drivers for newer/better services start learning		economic (harder to compete with prices, lower wages and increased productivity); market (focus on core competencies, customers looking fro flexibility and risk sharing); sustainability
e-commerce start learning		the use of the internet and the web to enact business
unique features of e-commerce start learning		ubiquity, global reach, universal standards, richness, interactivity, information density, personalisation, social technology
ubiquity start learning		available everywhere anytime; it reduces transaction costs for the customer
universal standards start learning		all computers can link with each other and have no problem in collaborating -> lowers the market entry costs
richness start learning		complexity and content of a message
information density start learning		quality and amount of information available
social technology start learning		networking
key concepts of e-commerce start learning		reduced information asymmetry; lowered menu costs; reduced or increased switching costs; products selling don't require a middleman
types of e-commerce start learning		Business-to-consumer (B2C); Business-to-Business (B2B); Consumer-to-consumer (C2C)
B2C start learning		a business unit selling its products to individual shoppers
B2B start learning		a business unit selling its products to other businesses
C2C start learning		consumer directly selling to other customer; eBay
New Business Models start learning		Portals; E-tailers; Content providers; Transaction brokers; Market creator; Service provider; Community provider
Portals start learning		provide initial point of entry to the web along with specialised content and other services; usually a homepage
E-tailers start learning		online retail stores
Content providers start learning		distribution of information content over the internet
Transaction brokers start learning		process transactions
service provider start learning		Saas
community provider start learning		social network, social media
E-Commerce Revenue Models start learning		Advertising, Sales, Subscription, Free/Freemium, Transaction fee, Affiliate
Advertising Revenue Model start learning		website generates revenue through showing ads
Sales revenue model start learning		revenue comes from selling products
Free/freemium revenue model start learning		initially free, but charges customers for advanced features
transaction fee revenue model start learning		company receives a fee for perfuming a transaction for the customer
affiliate revenue model start learning		a person or a business gets paid as a result of them referring a customer to other websites
New Ways of Marketing start learning		Behavioural Targeting; Social E-Commerce, The Wisdom of Crowds
Behavioural targeting start learning		identifying and collecting information on the clicking behaviour of individuals -> may lead to an invasion of privacy
social e-commerce start learning		according to social graphs, you are statistically six social clicks away from every person on earth -> viral marketing
The Wisdom of Crowds start learning		gather a lot of customers and ask them about the problem you are encountering
Business-to-Business Transactions start learning		Electronic Data Interchange (EDI); New Ways of B2B Buying and Selling

Module 8

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