Understand why it is important to study e-commerce.

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2 Learning Objectives

After reading this chapter, your students should be able to:

• Understand why it is important to study e-commerce.• Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e- commerce, and recognize major current themes in e-commerce.• Identify and describe the unique features of e-commerce technology and discuss their business significance.• Describe the major types of e-commerce.• Understand the evolution of e-commerce from its early years to today.• Describe the major themes underlying the study of e-commerce.

Chapter Outline Opening Case: TikTok: Creators and the Creator Economy

1.1 The First Five Minutes: Why You Should Study E-commerce

1.2 Introduction to E-commerce What Is E-commerce?The Difference between E-commerce and E-business

Technological Building Blocks Underlying E-commerce: The Internet, Web, and

Mobile Platform

Insight on Technology: Will Apps Make the Web Irrelevant?

Major Trends in E-commerce

1.3 Unique Features of E-commerce Technology Ubiquity Global Reach Universal Standards Richness Interactivity Information Density Personalization and Customization

Social Technology: User-Generated Content (UCG), Creators, and Social

Networks

1.4 Types of E-commerce Business-to-Consumer (B2C) E-commerce Business-to-Business (B2B) E-commerce Consumer-to-Consumer (C2C) E-commerce Mobile E-commerce (M-commerce) Social E-commerce Local E-commerce

1.5 E-commerce: A Brief History

E-commerce 1995–2000: Invention

(E-Commerce 2023 Business, Technology, and Society, 17e Kenneth Laudon, Carolc Traver) (Solution Manual all Chapters) 1 / 4

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3

E-commerce 2001–2006: Consolidation

E-commerce 2007–Present: Reinvention

Insight on Business: Y Combinator’s Startup Boot Camp

Assessing E-commerce: Successes, Surprises, and Failures

1.6 Understanding E-commerce: Organizing Themes

Technology: Infrastructure

Business: Basic Concepts

Society: Taming the Juggernaut

Insight on Society: Facebook and the Age of Privacy

1.7 Careers in E-commerce The Company

Position: Category Specialist in the E-commerce Retail Program

Qualifications/Skills Preparing for the Interview Possible First Interview Questions

1.8 Case Study: Uber: Everything on Demand

1.9 Review Key Concepts Questions Projects References

List of Key Terms business-to-business (B2B) e-commerce, p. 22 business-to-consumer (B2C) e-commerce, p. 21 consumer-to-consumer (C2C) e-commerce, p. 24 customization, p. 19 disintermediation, p. 29 e-business, p. 8 e-commerce, p. 8 first mover, p. 29 friction-free commerce, p. 29 information asymmetry, p. 16 information density, p. 19 interactivity, p. 18 Internet, p. 9 local e-commerce, p. 25 marketplace, p. 17 marketspace, p. 17 mobile e-commerce (m-commerce), p. 24 mobile platform, p. 11 network effect, p. 29 2 / 4

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4 personalization, p. 19 reach, p. 17 richness, p. 18 social e-commerce, p. 24 ubiquity, p. 17 universal standards, p. 18 Web 2.0, p. 31 World Wide Web (the Web), p.10

List of Figures Figure 1.1 The Difference between E-commerce and E-business, p. 9 Figure 1.2 The Deep Web, p. 10 Figure 1.3 Internet Access in the United States, 2022, p. 11 Figure 1.4 Eight Unique Features of E-commerce Technology, p. 16 Figure 1.5 The Growth of B2C E-commerce in the United States, p. 22 Figure 1.6 Room to Grow, p. 23 Figure 1.7 The Growth of B2B E-commerce in the United States, p. 23 Figure 1.8 The Growth of M-commerce in the United States, p. 25 Figure 1.9 The Relative Size of Different Types of E-commerce in 2022, p. 26 Figure 1.10 Periods in the Development of E-commerce, p. 28 (Figure video in eText)

List of Tables Table 1.1 Major Trends in E-commerce 2022–2023, p. 15 Table 1.2 Business Significance of the Eight Unique Features of E-commerce Technology, p. 21 Table 1.3 Major Types of E-commerce, p. 26 Table 1.4 Evolution of E-commerce, p. 34

List of Video Cases in eText

Video Case 1.1: Shopify and the Future of E-commerce

Video Case 1.2: YouTube and the Creator Economy

Overview One of the biggest challenges that instructors face in teaching a course on e-commerce is helping students make sense of a very complex phenomenon that involves considerations of markets, firms, consumer behavior, technology, and social and legal impacts, among others. As the text’s subtitle (“business. technology. society) suggests, we believe it is useful to think about e-commerce as involving these three broad, interrelated themes, and that doing so provides students with a strong and coherent conceptual framework for understanding e-commerce. Within each chapter, there are three “Insight on” cases (Insight on Business, Insight on Technology, and Insight on Society), designed to highlight the connection between the chapter’s content and these themes. Each chapter begins with an opening case, focusing on a company or issue that students will hopefully find relevant and interesting, that introduces the topic of the chapter. Each chapter concludes with a more extensive end-of-chapter cases that ties together the themes and topics included in the chapter. Class discussion questions for each "Insight on” case and 3 / 4

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5 the opening case are included in the Teaching Suggestions: Key Points section of this Instructor’s Manual as well as in the PowerPoint files for the chapter.

E-commerce is continually evolving and has become a thriving marketplace not only for products but also for services and content, such as social networks, user-generated content (video, photos, and blogs), and, of course, entertainment such as movies, TV, video, music, and games.Today’s e-commerce is predominantly social, mobile, and increasingly, local. We weave these topics throughout the text into all chapters, because they are increasingly impacting all aspects of e-commerce. We also discuss the impact of the Covid-19 pandemic on e-commerce throughout the text.

Teaching Suggestions: Key Points

The opening case, TikTok: Creators and the Creator Economy (new for this edition) highlights user-generated content, creators, and the creator economy, with a specific focus on TikTok, which has become one of the fastest-growing and most popular social networks. As you discuss the case with your students, you can also pose the following

questions:

• Why is TikTok so popular?• Do you use TikTok? If so, in what manner—do you just view content or also post content?• Do you consider yourself a creator? Have you ever received payments for content you have created?• What are some of the negative consequences associated with being a creator?

Section 1.1 addresses an important student concern: why they should study e-commerce.E-commerce remains the fastest growing retail, service, and entertainment channel. E- commerce revenues have been growing at double-digit rates since 2010, outpacing traditional retail by a factor of two or three, and are expected to continue growing at more than 10% per year through 2026. Even with recent economic conditions that have led to a slowing of hiring in the tech sector, there continue to be thousands of job opportunities that require skills in e-commerce. As noted in the text, eventually all commerce will be “e-commerce”. You should let students know that while e-commerce has now been around for about 25 years, the e-commerce revolution is still, relatively speaking, in the beginning phase. The very early tumultuous years are over, but there are many powerful, commercial, and technological forces that will push e-commerce along in the next decades. To emphasize this, you can highlight the bullet points noted in Table 1.1. Video Case 1.1, Shopify and the Future of E-commerce, appears at the top of page 14 of the eText, in the “Major Trends in E-commerce” section. See pages 18 to 20 of this Instructor’s Manual for more information about this Video Case, as well as questions that you can use for class discussion or as a student assignment.

Much of the first chapter is aimed at getting some basic definitions straight. The e- commerce field is filled with language that some students might find confusing. In Section 1.2, we distinguish between e-commerce and e-business to set the focus clearly

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