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1. Introduction to Electronic Commerce. Defining Electronic Commerce. Brief History of Electronic Commerce. Forces Fueling Electronic Commerce. Electronic Forces. Marketing and Customer Interaction Forces. Technology and Digital Convergence. Implications of Various Forces. Electronic Commerce Industry Framework. The Information Superhighway. Multimedia Content and Network Publishing. Messaging and Information Distribution. Common Business Services Infrastructure. Other Key Support Layers. Putting the Framework into Action: Microsoft Corporation. Types of Electronic Commerce. Inter-organizational Electronic Commerce. Intra-organizational Electronic Commerce. Consumer-to-Business Electronic Commerce. Intermediaries and Electronic Commerce. Key Questions for Management. Competitive Pressure. External Threat. Incorporating Changes. Designing New Organizational Structures. Managerial Options and Priorities. Summary. 2. The Internet and the Access Provider Industry. Internet Service Providers. Key Market Drivers for the Internet. Who Is Making Money on the Internet. Clarifying Internet Terminology. Companies Providing Internet Access. Internet Topology. Differentiating Market Segments: Commercial versus Consumer. Internet versus Online Services. Open versus Closed Architecture. Controlled Content versus Uncontrolled Content. Metered Pricing versus Flat Pricing. Innovation versus Control. Predicting the Future of the IAP Market. Convergence Leading to Competition. Service and Capacity Management. Customer Service, Loyalty, and Retention. Marketing. Customer Education. Changing Technology behind Internet Access. Changing Technology behind the Access Provider. Summary. 3. World Wide Web--Applications. Brief History of the Web. What Exactly Is the Web? Why Is the Web Such a Hit? The Web and Ease of Use. The Web and Ease of Publishing. The Web as a New Distribution Channel. The Web and Network-Centric Computing. The Web and New Intra-Business Applications. The Web and Electronic Commerce. The Web and Intra-Business Commerce. Other Intranet Applications. Intranet Advantages and Disadvantages. Management of Intranets. Understanding the Intranet Architecture. Summary. 4. World Wide Web--Concepts and Technology. Key Concepts behind the Web. Overview of the Web's Technical Architecture. Interactive Web Applications. Interactive Applications. Interactivity and Information Integration. Web Extensions for Interactive Applications. Web and Database Integration. Web Database Products. HTML Forms and CGI Programs. Web Software Developmental Tools. Need for Better Programming Languages. New Programming Language: Java. Technically Speaking: What Exactly Is Java? Role of Java in Electronic Commerce. How Does Java Work? Business Reasons for Using Java. Multimedia Web Extensions. Virtual Reality Modeling Language (VRML). RealAudio. Internet and Web-based Telephony. Directories and Search Engines. Lycos. Summary. 5. Firewalls and Transaction Security. Firewalls and Network Security. Types of Firewalls. Firewall Security Policies. Emerging Firewall Management Issues. Transaction Security. Types of Online Transactions. Requirements for Transaction Security. Encryption and Transaction Security. Secret-Key Encryption. Public-Key Encryption. Implementation and Management Issues. World Wide Web and Security. Netscape's Secure Sockets Layer. Security and Online Web-based Banking. Summary. 6. Electronic Payment Systems. Overview of the Electronic Payment Technology. The Online Shopping Experience. Limitations of Traditional Payment Instruments. Electronic or Digital Cash. Properties of Electronic Cash. Digital Cash in Action. Electronic Checks. Benefits of Electronic Checks. Electronic Checks in Action. NetCheck: A Prototype Electronic Check System. Electronic Check Project. Online Credit Card-Based Systems. Types of Credit Card Payments. Secure Electronic Transactions (SET). Other Emerging Financial Instruments. Debit Cards at the Point of Sale (POS). Debit Cards and Electronic Benefits Transfer. Smart Cards. Consumer, Legal, and Business Issues. Summary. 7. Electronic Commerce and Banking. Changing Dynamics in the Banking Industry. Changing Consumer Needs. Cost Reduction. Demographic Trends. Regulatory Reform. Technology-based Financial Services Products. Home Banking History. Why Will It Be Different This Time? Home Banking Implementation Approaches. Home Banking Using Bank's Proprietary Software. Banking via the PC Using Dial-Up Software. Banking via Online Services. Banking via the Web: Security First Network Bank. Open versus Closed Models. Management Issues in Online Banking. Differentiating Products and Services. Managing Financial Supply Chains. Pricing Issues in Online Banking. Marketing Issues: Attracting Customers. Marketing Issues: Keeping Customers. Back-Office Support for Online Banking. Integrating Telephone Call Centers with the Web. Summary. 8. Electronic Commerce and Retailing. Changing Retail Industry Dynamics. Overbuilding and Excess Capacity. Demographic Changes. Consumer Behavior. Technology Improvements in Electronic Retailing. Online Retailing Success Stories. Online Retailing: Peapod's Experience. CUC International. Wine on the Web: Virtual Vineyards. Web-based Travel Agencies. Mercantile Models from the Consumer's Perspective. Distinct Phases of a Consumer Mercantile Model. Prepurchase Preparation. Purchase Consummation. Postpurchase Interaction. Management Challenges in Online Retailing. Come Up with a Retailing Strategy. Manage Channel Conflict. Learn to Price Online Products/Services. Deliver a Satisfying Shopping Experience. Design the Layout of an Online Store. Manage Brands. Create the Right Incentives. Summary. 9. Electronic Commerce and Online Publishing. Why Online Publishing? Online Publishing Strategies. Online Publishing Approaches. Full-Text and Bibliographic Databases. Personalized and Customized News. Business Information and News Delivery. Edutainment = Education + Entertainment. Online Publishing Success Stories. PointCasting. Time Warner's Pathfinder. Disney Online. Integrating TV and Data Streams: Intercasting. Advertising and Online Publishing. An Online Publishing Missing Piece: Measurement. Digital Copyrights and Electronic Publishing. Online Copyright Protection Methods. Summary. 10. Intranets and Supply-Chain Management. Supply-Chain Management Fundamentals. Pull versus Push Supply-Chain Models. Elements of Supply-Chain Management. Integrating Functions in a Supply Chain. Managing Retail Supply Chains. The Order Management Cycle (OMC). Supply-Chain Application Software. Software for Supply-Chain Management. Recent Trends in Application Software. What Is the Business Market? Understanding the Application Software Architecture. Future of Supply-Chain Software. Intranets and Network-Centric Computing. Intranets and Application Software. Impact of the Web on Application Software. Elaborating on the Intranet Architecture. What Remains to Be Done? Summary. 11. Intranets and Customer Asset Management. Why Customer Asset Management? Challenges in Implementing Customer Asset Management. Customer Asset Management and Supply Chains. Online Sales Force Automation. What Is Sales Force Automation? Elements of Online Sales Automation. Intranets and Sales Automation. What Are the Management Issues? Online Customer Service and Support. The Web and Customer Service. The Role of Technology in Customer Service. What Are the Business Requirements? The Enabling Intranet Technology. Technology and Marketing Strategy. Marketing Decision Support Systems. Marketing Decision Support Applications. Summary. 12. Intranets and Manufacturing. Defining the Terminology. Integrated Logistics. Agile Manufacturing. Emerging Business Requirements. Customer-Driven Manufacturing. Rapid Internal Response to Demand Changes. Efficiently Managing Supply Chain Complexity. Manufacturing Information Systems. Discrete versus Process Manufacturing Market. Types of Manufacturing Information Systems. Intranet-Based Manufacturing. Customer-Driven Manufacturing. Real-Time Decision Support. Intelligent Process Management. Logistics Management. Problems with Traditional Logistics Management. Case Study: Microsoft Corp Integrated Logistics. Objective of Modern Logistics Function. Forecasting. Purchasing. Distribution Management. Electronic Data Interchange (EDI). Benefits of EDI. EDI in Action. Why Has EDI Adoption Lagged? Summary. 13. Intranets and Corporate Finance. Intranets and Finance. What Exactly Are Financial Systems? What Do Financial Systems Do? Financial Intranets. Understanding the Different Software Modules. Transaction Accounting and Electronic Commerce. Financial Analysis and Management Accounting. Inventory Accounting. Payment Management. Treasury and Cash Management. Human Resources Management Systems. HRMS Functions. Size/Structure of Financials Software Market. Product Strategy. Financial Data Warehouses. How Are Firms Using the Web for OLAP? Desirable Software Requirements. Summary. 0201880679T04062001

This research aims to select products that will be used for promotion on e-commerce platforms. The increasing use of e-commerce has led to a high level of competition in the e-commerce field. The company strives to maintain the quality of its services to increase customer satisfaction, one of which is by providing regular promotions. The process of selecting promotional products is a routine activity carried out every week. However, the current promotional product selection process is not effective enough, and there are no criteria to use as a reference for selection. This research was conducted on two e-commerce companies actively operating in Indonesia. The research began with a literature study and expert survey to select important criteria in selecting promotional products. Weighting of important criteria is carried out using the Stepwise Weight Assessment Ratio Analysis (SWARA) method. Finally, the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method is used to rank the best products to promote. The results showed that products from Soundcore, Lenovo, and Xiaomi were the best products with preference values of 0.83, 0.65, and 0.60 respectively.

:Electronic commerce {E-commerce} is sharing business information, maintaining business relationships, and conducting business transactions by means of telecommunications networks. Traditional E-commerce, conducted with the use of information technologies centering on electronic data interchange (ED!) over proprietary value-added networks, is rapidly moving to the Internet. The Internet’s World Wide Web has become the prime driver of contemporary E-commerce. This paper presents a hierarchical framework of E-commerce, consisting of three meta-levels: infrastructure, services, and products and structures, which, in turn, consist of seven functional levels. These levels of E-commerce development, as well as of analysis, range from the wide-area telecommunications infrastructure to electronic marketplaces and electronic hierarchies enabled by E-commerce. Several nodal problems are discussed that will define future development in E-commerce, including integrating electronic payment into the buying process, building a consumer marketplace, the governance of electronic business, and the new intermediation. The paper also introduces the International Journal of Electronic Commerce, which will provide an integrated view of the new E-commerce.

In this study, we developed a set of constructs to measure e-commerce capability in Internet-enhanced organizations. The e-commerce capability metrics consist of four dimensions: information, transaction, customization, and supplier connection. These measures were empirically validated for reliability, content, and construct validity. Then we examined the nomological validity of these e-commerce metrics in terms of their relationships to firm performance, with data from 260 manufacturing companies divided into high IT-intensity and low IT-intensity sectors. Grounded in the dynamic capabilities perspective and the resource-based theory of the firm, a series of hypotheses were developed. After controlling for variations of industry effects and firm size, our empirical analysis found a significant relationship between e-commerce capability and some measures of firm performance (e.g., inventory turnover), indicating that the proposed metrics have demonstrated value for capturing e-commerce effects. However, our analysis showed that e-commerce tends to be associated with the increased cost of goods sold for traditional manufacturing companies, but there is an opposite relationship for technology companies. This result seems to highlight the role of resource complementarity for the business value of e-commerce—traditional companies need enhanced alignment between e-commerce capability and their existing IT infrastructure to reap the benefits of e-commerce.

This paper aims to predict consumer acceptance of e-commerce by proposing a set of key drivers for engaging consumers in on-line transactions. The primary constructs for capturing consumer acceptance of e-commerce are intention to transact and on-line transaction behavior. Following the theory of reasoned action (TRA) as applied to a technology-driven environment, technology acceptance model (TAM) variables (perceived usefulness and ease of use) are posited as key drivers of e-commerce acceptance. The practical utility of TAM stems from the fact that e-commerce is technology-driven. The proposed model integrates trust and perceived risk, which are incorporated given the implicit uncertainty of the e-commerce environment. The proposed integration of the hypothesized independent variables is justified by placing all the variables under the nomological TRA structure and proposing their interrelationships. The resulting research model is tested using data from two empirical studies. The first, exploratory study comprises three experiential scenarios with 103 students. The second, confirmatory study uses a sample of 155 on-line consumers. Both studies strongly support the e-commerce acceptance model by validating the proposed hypotheses. The paper discusses the implications for e-commerce theory, research, and practice, and makes several suggestions for future research.

The increased popularity of social networking sites, such as Linkedln, Facebook, and Twitter, has opened opportunities for new business models for electronic commerce, often referred to as social commerce. Social commerce involves using Web 2.0 social media technologies and infrastructure to support online interactions and user contributions to assist in the acquisition of products and services. Social media technologies not only provide a new platform for entrepreneurs to innovate but also raise a variety of new issues for e-commerce researchers that require the development of new theories. This could become one of the most challenging research arenas in the coming decade. The purpose of this introduction is to present a framework that integrates several elements in social commerce research and to summarize the papers included in this special issue. The framework includes six key elements for classifying social commerce research: research theme, social media, commercial activities, underlying theories, outcomes, and research methods. The proposed framework is valuable in defining the scope and identifying potential research issues in social commerce. We also explain how the papers included in this special issue fit into the proposed research framework.

IT) and the ICT Association of Malawi (ICTAM). His areas of interest are the application of internet technologies, electronic commerce, and mobile commerce and other payment methodologies in government, public and private institutions. E-commerce is enjoying wide recognition in many countries but its adoption in developing countries is still a challenge. In such countries, m-commerce is being preferred especially due to the relative low costs associated with the deployment of the technology behind such applications. In Malawi, drivers of m-commerce such as banks and mobile network providers are gearing to implement m-commerce applications including m-banking, m-shopping, mobile information services, m-marketing and m-health. However, the range of applications is being limited by a number of technical, business and policy challenges. In this paper, solutions to the identified challenges are proposed by drawing from literature and experiences from other countries. It is envisaged that the proposed solutions will provide an organized technical and managerial approach to understanding and addressing the implementation challenges within the emerging domain of m-commerce.

Social commerce is emerging as an important platform in e-commerce, primarily due to the increased popularity of social networking sites such as Facebook, Linkedln, and Twitter. To understand the user's social sharing and social shopping intention in social networking Web sites, we conducted an empirical study on a popular microblog to investigate how social factors such as social support and relationship quality affect the user's intention of future participation in social commerce. The results indicate that both factors play a critical role. Social support and Web site quality positively influence the user's intention to use social commerce and to continue using a social networking site. These effects are found to be mediated by the quality of the relationship between the user and the social networking Web site. Our findings not only help researchers interpret why social commerce has become popular, but also assist practitioners in developing better social commerce strategy.

This paper examines human motivations underlying individual acceptance of business-to-consumer (B2C) electronic commerce services. Such acceptance is the key to the survival of firms in this intensely competitive industry. A modified theory of planned behavior (TPB) is used to hypothesize a model of e-commerce service acceptance, which is then tested using a field survey of 172 e-brokerage users. We found TPB was useful in explaining e-commerce service acceptance, however, acceptance motivations were significantly different from that of typical IS products. Based on a broader conceptualization of TPB's subjective norm to include both external (mass-media) and interpersonal influences, we report that subjective norm is an important predictor of e-commerce acceptance, behavioral control has minimal impact on e-commerce acceptance, and external influence is a significant determinant of subjective norm. Implications of these findings in light of e-commerce research and practice are discussed.

Recommender systems are changing from novelties used by a few E-commerce sites, to serious business tools that are re-shaping the world of E-commerce. Many of the largest commerce Web sites are already using recommender systems to help their customers find products to purchase. A recommender system learns from a customer and recommends products that she will find most valuable from among the available products. In this paper we present an explanation of how recommender systems help Ecommerce sites increase sales, and analyze six sites that use recommender systems including several sites that use more than one recommender system. Based on the examples, we create a taxonomy of recommender systems, including the interfaces they present to customers, the technologies used to create the recommendations, and the inputs they need from customers. We conclude with ideas for new applications of recommender systems to E-commerce.

Information technology and the Internet have had a dramatic effect on business operations. Companies are making large investments in e-commerce applications but are hard pressed to evaluate the success of their e-commerce systems. The DeLone & McLean Information Systems Success Model can be adapted to the measurement challenges of the new e-commerce world. The six dimensions of the updated model are a parsimonious framework for organizing the e-commerce success metrics identified in the literature. Two case examples demonstrate how the model can be used to guide the identification and specification of e-commerce success metrics.

Evidence suggests that consumers often hesitate to transact with Web-based vendors because of uncertainty about vendor behavior or the perceived risk of having personal information stolen by hackers. Trust plays a central role in helping consumers overcome perceptions of risk and insecurity. Trust makes consumers comfortable sharing personal information, making purchases, and acting on Web vendor advice—behaviors essential to widespread adoption of e-commerce. Therefore, trust is critical to both researchers and practitioners. Prior research on e-commerce trust has used diverse, incomplete, and inconsistent definitions of trust, making it difficult to compare results across studies. This paper contributes by proposing and validating measures for a multidisciplinary, multidimensional model of trust in e-commerce. The model includes four high-level constructs—disposition to trust, institution-based trust, trusting beliefs, and trusting intentions—which are further delineated into 16 measurable, literature-grounded subconstructs. The psychometric properties of the measures are demonstrated through use of a hypothetical, legal advice Web site. The results show that trust is indeed a multidimensional concept. Proposed relationships among the trust constructs are tested (for internal nomological validity), as are relationships between the trust constructs and three other e-commerce constructs (for external nomological validity), as Web experience, personal innovativeness, and Web site quality. Suggestions for future research as well as implications for practice are discussed.

This paper extends Ajzen’s (1991) theory of planned behavior (TPB) to explain and predict the process of e-commerce adoption by consumers. The process is captured through two online consumer behaviors: (1) getting information and (2) purchasing a product from a Web vendor. First, we simultaneously model the association between these two contingent online behaviors and their respective intentions by appealing to consumer behavior theories and the theory of implementation intentions, respectively. Second, following TPB, we derive for each behavior its intention, attitude, subjective norm, and perceived behavioral control (PBC). Third, we elicit and test a comprehensive set of salient beliefs for each behavior. A longitudinal study with online consumers supports the proposed e-commerce adoption model, validating the predictive power of TPB and the proposed conceptualization of PBC as a higher-order factor formed by self-efficacy and controllability. Our findings stress the importance of trust and technology adoption variables (perceived usefulness and ease of use) as salient beliefs for predicting ecommerce adoption, justifying the integration of trust and technology adoption variables within the TPB framework. In addition, technological characteristics (download delay, Website navigability, and information protection), consumer skills, time and monetary resources, and product characteristics (product diagnosticity and product value) add to the explanatory and predictive power of our model. Implications for Information Systems, e-commerce, TPB, and the study of trust are discussed.

The number of Internet users has increased dramatically,but many are reluctant to provide sensitive personal information to Web sites because they do not trust e-commerce security.This paper investigates the impact of customer perceptions of security control on e-commerce acceptance. Trust is examined as the mediating factor of the relationship, using Internet banking as the research domain because bank customers are generally concerned about processing sensitive information like financial information. A Web survey of Internet banking users collected 502 cases. Statistical analyses, using structural equation modeling, indicated that perceptions of nonrepudiation, privacy protection, and data integrity have a significant impact on trust in e-commerce. Trust also has a significant impact on e-commerce acceptance. Implications and further research directions are presented.

ABSTRACT: Trust is a vital relationship concept that needs clarification because researchers across disciplines have defined it in so many different ways. A typology of trust types would make it easier to compare and communicate results, and would be especially valuable if the types of trust related to one other. The typology should be interdisciplinary because many disciplines research e-commerce. This paper justifies a parsimonious interdisciplinary typology and relates trust constructs to e-commerce consumer actions, defining both conceptual-level and operational-level trust constructs. Conceptual-level constructs consist of disposition to trust (primarily from psychology), institution-based trust (from sociology), and trusting beliefs and trusting intentions (primarily from social psychology). Each construct is decomposed into measurable subconstructs, and the typology shows how trust constructs relate to already existing Internet relationship constructs. The effects of Web vendor interventions on consumer behaviors are posited to be partially mediated by consumer trusting beliefs and trusting intentions in the e-vendor. KEY WORDS AND PHRASES: Customer relationships, human issues in e-commerce, Internet consumers, trust.

WebQual is a method for assessing the quality of Web sites. The method has been developed iteratively through application in various domains, including Internet bookstores and Internet auction sites. In this paper we report on the application of a new version of WebQual to Internet bookstores: Amazon, BOL, and the Internet Bookshop. WebQual draws on previous work in three areas: Web site usability, information quality, and service interaction quality to provide a rounded framework for assessing e-commerce offerings. Although WebQual is grounded in the subjective impressions of Web site users, the data collected lends itself to quantitative analysis and the production of e-commerce metrics such as the WebQual Index. The reliability of the instrument is examined and core constructs of Web site quality identified using factor analysis. The role of WebQual in assessing an organization’s e-commerce capability is discussed.

Internet commerce has the potential to offer customers a better deal compared to purchases by conventional methods in many situations. To make this potential a reality, businesses must focus on the values of their customers. We interviewed over one-hundred individuals about all the pros and cons of using Internet commerce that they experienced or envisioned. The results were organized into twenty-five categories of objectives that were influenced by Internet purchases. These categories were separated into means objectives and fundamental objectives used to describe the bottom line consequences of concern to customers. These results are applicable to designing an Internet commerce system for a business, creating and redesigning products, and increasing value to customers. The set of fundamental objectives also provides the foundation for developing a quantitative model of customer values.

Recommender systems apply statistical and knowledge discovery techniques to the problem of making product recommendations during a live customer interaction and they are achieving widespread success in E-Commerce nowadays. In this paper, we investigate several techniques for analyzing large-scale purchase and preference data for the purpose of producing useful recommendations to customers. In particular, we apply a collection of algorithms such as traditional data mining, nearest-neighbor collaborative filtering, and dimensionality reduction on two different data sets. The first data set was derived from the web-purchasing transaction of a large E-commerce company whereas the second data set was collected from MovieLens movie recommendation site. For the experimental purpose, we divide the recommendation generation process into three sub processes - representation of input data, neighborhood formation, and recommendation generation. We devise different techniques for different sub processes and apply their combinations on our data sets to compare for recommendation quality and performance.

Although electronic commerce (EC) has created new opportunities for businesses as well as consumers, questions about consumer attitudes toward Business-to-Consumer (B2C) e-commerce vis-à-vis the conventional shopping channels continue to persist. This paper reports results of a study that measured consumer satisfaction with the EC channel through constructs prescribed by three established frameworks, namely the Technology Acceptance Model (TAM), Transaction Cost Analysis (TCA), and Service Quality (SERVQUAL). Subjects purchased similar products through conventional as well as EC channels and reported their experiences in a survey after each transaction. Using constructs from the three frameworks, a model was constructed and tested to examine the determinants of the EC channel satisfaction and preference using the survey data. Structural equation model analyses indicate that metrics tested through each model provide a statistically significant explanation of the variation in the EC consumers' satisfaction and channel preference. The study found that TAM components—perceived ease of use and usefulness—are important in forming consumer attitudes and satisfaction with the EC channel. Ease of use also was found to be a signi.cant determinant of satisfaction in TCA. The study found empirical support for the assurance dimension of SERVQUAL as determinant in EC channel satisfaction. Further, the study also found general support for consumer satisfaction as a determinant of channel preference.