Dr. R.A.N.M ARTS AND SCIENCE COLLEGE�Affiliated to Bharathiar University , �Accredited with “ B+” NAAC

Dr. S. Sudha M.Com(CA)., M.Phil., Ph.D.,�Head & Assistant Professor,� Department of Commerce (CA)

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Course Name : Principles of Marketing

�Welcome You All

CONSUMER ORIENTED E-COMMERCE

Introduction:

Fundamental issues must be addressed before consumer oriented e-commerce can become widespread, they are:

• Establishment of standard business processes for buying, selling products and services in electronic markets.
• Development of widespread and easy-to-use implementations of protocols for order- taking, online payment and service delivery.
• Development of transport and privacy methods.

To make consumer oriented e-commerce more effective, we need a better understanding of the components of the business process from the initial search and discovery of the products/ services via online catalogs to the management of the order-to-delivery cycle.

Consumer oriented Applications:

Different applications that explain the operational rule of evolution in different areas:

• Personal Finance and Home Banking Management
1. Basic Services
2. Intermediate Services
3. Advanced services
• Home Shopping
• Television-Based Shopping
• Catalog-Based Shopping
• Home Entertainment
• Size of the Home Entertainment Market
• Impact of the Home Entertainment on Traditional Industries
• Micro transactions of Information

• Personal Finance and Home Banking Management:

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• The newest technologies are direct deposit of payroll, on-line bill payment and telephone transfers

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• The technology for paying bills, whether by computer or telephone, is infinitely more sophisticated than anything on the market a few years ago

In previous days, the technology choices for accessing services were limited. The range of options has expanded to include PC’s, interactive

• Basic services

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• These are related to personal finance
• The evolution of ATM machines from live tellers and now to home banking
• The ATM network has with banks and their associations being the routers and the ATM machines being the heterogeneous computers on the network.
• This interoperable network of ATMs has created an interface between customer and bank that changed the competitive dynamics of the industry. See in next figure
• Increased ATM usage and decrease in teller transactions

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• Intermediate Services

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• The problem with home banking in 1980 is, it is expensive service that requires a PC, a modem and special software. These problems are solved rather quickly.
• For the sophisticated customer, home banking offers the facility of paying bills, transferring funds, opening new accounts from home etc.
• As the equipment becomes less expensive and as bank offers broader services, home banking develop into a comprehensive package that could even include as insurance entertainment
• Consider the computerized on-line bill-payment system

It never forgets to record a payment and keeps track of user account number, name, amount and the date

• Advanced Services

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• The goal of advanced series is to offer their on-line customers a complete portfolio of life, home, and auto insurance along with mutual funds, pension plans, home financing, and other financial products.

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• Home Shopping:

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• It is already in wide use.
• This enable a customer to do online shopping
• Television-Based Shopping:
• It is launched in 1977 by the Home Shopping Network (HSN).
• It provides a variety of goods ranging from collectibles, clothing, small electronics, house wares, jewelry, and computers.
• It works as, the customer uses her remote control at shop different channels with touch of button. At this time, cable shopping channels are not truly interactive

• Catalog-Based Shopping

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• In this the customer identifies the various catalogs that fit certain parameters such as safety, price, and quality.
• The on-line catalog business consists of brochures , CD-ROM catalogs, and on-line interactive catalogs.

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