Page 154 - DMGT522_SERVICES MANAGEMENT

Unit 7: Delivering Services on the Web

larger companies, small businesses have now benefited from joining the bandwagon. Notes
The Internet acts a shop window for your business where your particular web site will allow
consumers to view or purchase your product(s)/service(s) online.
The Internet can also be used as a marketing tool, purely promoting your products, which will
aim to result in more sales from other distribution channels.
The Internet can help target consumers worldwide although it may be more feasible for consumers
to purchase from within the nation (due to costs of postage or feasibility of using the service).
The obvious cost of using the Internet for sales is the original set-up and consistent maintenance,
as well as the administration.

Some small businesses are purely Internet orientated selling services and products completely
via their web site i.e. at any time, they will have no personal contact with the consumers.

Example: E-commerce sites like ebay.com and amazon.com provide services online.
E-commerce mainly consists of distribution, purchase, sale, marketing and provision for
supplementary information of products or services via the Internet. E-commerce also includes
the transfer of information between enterprises. In late 70s, E-commerce started as a process of
sending and receiving electronic documents such as invoices. As the process evolved, it included
activities such as purchase of goods and services via Internet by using different types of purchase
cards, i.e. credit and debit cards. Today, E-commerce is spearheading an all new way of buying
and selling online.
E-commerce activities fall into identifiable categories and can be classified as Business-to-Business
(B2B), Business-to-Customer (B2C) and many more. This article is aimed at discussing these
categories in detail:
1. Business-to-Consumer (B2C): It is the direct trade between companies and end consumers.
This is the direct selling via the Internet. For example, selling goods direct to customer
and anyone can buy any products from the supplier’s website. In this mode is intended to
benefit the consumer and can say business-to-consumer E-commerce works as retail store
over internet.
2. Business-to-Business (B2B): Business-to-business E-commerce existed in marketing from
the very beginning. It is the trade that takes place between companies. Terms like off
shoring and outsourcing are generally associated with B2B E-commerce. For example, if I
give my company’s payroll work to another accounting firm, it would be deemed as
outsourcing. The term off shoring decides the outsourcing term further. If the work is
outsourced to a company, which is outside the geographical boundary of the country in
which the outsourcing company resides, it is termed as off shoring.
3. Consumer-to-Business (C2B): In today’s E-commerce arena, it is growing trend wherein
consumers demand specific products or services from respective businesses. For example,
I contact a tour and travel operator via their website for purchasing a holiday package.
a. Consumer-to-business E-commerce is growing at a rapid pace and the trend is set to
continue in the future.

4. Consumer-to-Consumer (C2C): Usually, this type of E-commerce works as Consumer to
Business to Consumer (C2B2C). It essentially means that a consumer would contact a
business in search for a suitable customer. Most of the auction websites (like eBay) and
matrimonial websites are working on this methodology. For Example Quikr is a classified
site on internet (on the lines of Times of India classified) that is meant to serve as a free,
city based, community classifieds website allowing people in the same city to meet,

LOVELY PROFESSIONAL UNIVERSITY 149