Chapter 5: Section 5-6/E-Commerce Support Services: Advertising, Payment and Order Fulfillment

David Edwards
5.6 E-Commerce Support Services: Advertising, Payment and order Fulfillment
*All related information taken directly from Information Technology for Management, 6th Edition, by Efraim Turban, Dorothy Leidener, Ephraim McLean, and James Wetherbe; Chapter 5, section 5.6, pages 189-196.
**Related contextual links are included
Payments and Order Fulfillment
Figure 5.4: E-Commerce Support Services
E-Infrastructure (technology consultants, system developers and integrators, hosting, security, wireless, and networks)
E-Process (payments and logistics)
E-Markets (marketing and advertising)
E-Communities (different audiences and business partners)
E-Services (CRM, PRM, and directory services)
E-Content (supplied by content providers)
*All support the EC applications (buy-side, sell-side, auctions, exchanges, consulting services)

Online Advertising:
Methods: see Table 5.4
Advantages: updated anytime at minimal costs, cheaper than print, radio or TV, interactive and targeted, growing number of online viewers
Roadblock approach: Running banner ads for continuous period of time on all major commercial portals

Unsolicited Advertising:
Spam: indiscriminate distribution of electronic messages without permission of the receiver. Also known as unsolicited commercial e-mail (UCE)
Pop-up: form of spam;
Anti-Spam Bill: October 22, 2003; requires spammers to clearly identify themselves and the products they are selling.
Permission Marketing:
· Permission Marketing: Method of marketing that asks consumers to give their permission to voluntarily accept online advertising and e-mail.
· Important for market research
· Some companies build customer lists and these are paid to view online ads during normal surfing (e.g./ paidsurveysonline.com and CashSurfers.com)
Interactive and Targeted Advertising:
· Targeted Advertising: ex/Google’s AdSense and AdWords (A Closer Look: 5.2)
https://www.google.com/adsense/www/en_US/misc/adsense_v2.html?sourceid=aso&subid=na-en-ha-bk_LP2&utm_medium=ha&utm_term=google%20adsense
· Interactive Advertising: Databases allow internet marketing to gather multiple individual responses and be more effective
Electronic Payment Systems:
· Electronic Credit Cards: Credit card information is encrypted in browser, then transferred to clearinghouse to be decrypted for verification and authorization.
· Electronic Bill Payments (Three major ways to pay bills over the Internet):
1. Online banking: consumer signs up for bank’s online bill-pay service and makes all of payments form single Web site.
2. Biller direct: consumer makes payments at each biller’s Web site either with a credit card or by giving the biller enough information to complete an electronic withdrawal directly from the consumer’s bank account.
3. Bill consolidator: customer enrolls to receive an pay bills for multiple billers with a third-party bill consolidator. SEE TEXT


Security in Electronic Payments:
Security Requirements:
· Authentication
· Integrity
· Nonrepudiation: protection against unjustified denial of payments (made or received)
· Privacy
· Safety
Security Protection
o Encryption: making messages indecipherable by using a key
o E-wallets or Digital Wallets: software that stores financial information of the buyer and used in financial transactions. Can be stored at each vendor’s site for security. Requires a ‘wallet’ for each merchant. MasterCard Wallet and AOL Wallet are installed on an individual computer. Limits security and can only be used from one computer.
o Virtual Credit Cards: Shop with ID number and password instead of credit card number. Extra layer of security over encryption.
o Payment Using Fingerprints: computer template of fingerprint kept in store’s computer system. Scan of fingerprint is matched with template then charged to bank account or credit card.
Order Fulfillment: company sells direct and must physically deliver products. Includes providing customers the products ordered and all related customer service (manuals, etc.)