Interaction between Electronic Business and Its Clients and Customers - Literature review Example

ASSESMENT ON ELECTRONIC BUSINESS By (Student‘s Name) Course Title Instructor’s Name Institution Literature Review on Electronic Business Introduction Recently, internet has grown and expanded to all parts of the world. The growth, which has highly been recorded in the developed economies, has resulted into a shift in the ways of trading from the traditional physical trading to a virtual form of trading that is commonly known as electronic commerce, electronic business or electronic trade. This paper is a literature review of what electronic business entails in terms of business module, products and services offered, its current development and chances of further development in future, and lastly the interaction between the electronic business and its clients and customers as perceived by different researchers. Electronic Business Module A business model is a logical structural design for information, product and service flows in addition to a description of the concerned business performers, their roles, and sources of income. The electronic business models vary extensively depending on specific companies. This is due to variation in electronics services offered by different companies. According to Baghdadi (2004) the electronic market-reference model stands for vertical and horizontal dimensions. The horizontal dimension consists of three market transaction phases which are settlement, information and agreement. While the vertical dimension contains four views which are classified into two chief blocks; the top two views centre on aspects of the organization while the lower two centre on technological aspects (Baghdadi, 2004). In their research work, Tsalgatidou and Pitoura (2001) urge that mobile electronic business transactions model engage several players, merchants, banks, typical customers and mobile network operation. The researchers also indicate that the participant workflow specifications are joined together with a single or a number of procedure specifications. Therefore the mobile electronic business transaction model of abstract specification is a graph with a workflow specification nodes and it contain an arch, branded with procedure specifications, stipulating that protocol specifications is an etiquette, which is well-matched with first and second arch and might transmit a message between the two arch in a number of executions (Tsalgatidou and Pitoura, 2001). Electronics Business Products or Services In electronic business, service is defined as any performance or act that a single party can give to another that is importantly insubstantial and does not yield into any form of ownership. It can also be defined as an online utility that is offered for hire to customers, when perceived in terms of marketing, electronic service is defined as bits of value that assist individual in meeting needs and solving their problems. To some extent, electronic business can provide software functionality from one machine to another, which is offered independent of human view or interaction. Electronic business production can or cannot be attached to physical products. Contrary to the product, the services posse unique characteristics such as intangibility, simultaneity, heterogeneity and perish ability (Doukidis et al., 2008). Electronics business is an extensive business that deals with variety of services depending on the company preference. According to Cho and Park (2002) electronic business operates as three types of varying channels, which are communication, transaction and distribution channels. These channels work collectively to offer electronic business services which are classified as professional, supporting, interactive, and mass services. Cho and Parks also urge that this classification is based on online services proportionality and online interaction need. In their study, Doukidis et al. (2008) state that electronic business entails carrying out business transactions through electronic means. Previously, electronic business was limited to World Wide Web and internet development, while today wireless communication and mobile technologies play an escalating role. In their research, Piccinelli et al (2001) urge that it is certain that electronic trade and electronic business have attracted a great deal of attention from solution providers, system integrators, software vendors, also eventually research and business community, by offering their business partners and customers the capability to computerize their interaction with department of procurement or sales of a company. Additionally, they described the three types of services offered by electronic marketplaces, which are divided into three classes that include vertical marketplaces that centre on understanding trade practices, and computerisation of the inter-company relations business processes aspects. Horizontal marketplaces that span across computerized functional processes and industries, such as IT services, advertising, human resource services , project management, operational procurement, repair and maintenance. Lastly, enabling technologies that offer a platform at which horizontal and vertical market places are built (Piccinelli et al., 2001). Electronic business has witness explosive growth in the recent past. This growth has introduced a new mobile electronic technology and exploded electronic services application further, raising their penetration in the population. Mobile telephony rapid growth has offered a foundation mobile-trade, which is business transaction activities carried out through a mobile device for instance a cell phone. The mobile-business offers a new ground for a number of applications and services, exploiting the mobility and locality characteristics (Doukidis et al., 2008). Electronic Business Development Electronic business serves a key role in the economy of the world. It is estimated that by 2003, Europe and US electronic trade value will hit US$ 3 trillion. According to Phan (2003) it is predicted that as the electronic marketplaces turns to be more profitable, new applicants are attracted and confusion is created in the market. Phan also observes that the past few years’ electronic trade value rapid expansion convinced several people that a fresh economy has surfaced. Bill gate and Microsoft chairman, fears that there is a frightening rival who is either unborn or unknown and who is expected to apply improved business models to win over Microsoft Company. The two urge that the fresh business models, which put together internetwork technology in their entire enterprise value chain operations, are the most successful (Phan, 2001). Doukidis et al. (2008) observe that there has been explosion in electronic services development in the recent years. This explosion is initiating abundant prospects for applications of operational research required for empowering various types of mediated interaction of technology, mechanizing the repetitive decisions of operation and exploiting the outsized sources of digital data. In addition, Doukidis et al. urge that previously, electronic business was restricted on the electronic data file transfer between companies, by use of electronic data exchange technology over close devoted networks. The booming of electronic business experience has however been facilitated by World Wide Web and Internet, since they can considerably ease transaction and communication across physical boundaries, unfolding opportunities to power operations in fresh and inventive ways (Doukidis et al., 2008).Digital interactive television is another electronic platform that facilitates electronic services provision. Interactive television combines the mass and appeal audience of original TV with new interactive features for instance those that are currently accessible on the Web (Doukidis et al., 2008). Customer and Client Base Customer relationship management benefits from rising attention as a counter-measure to customers’ changing behaviour. This is because profit loss as a result of customers defect is significant and maximising in retaining customers can be extremely profitable. According to Buckinx and Poel (2005) people who restrict their selections, are mostly relationship oriented and they have the capability of transforming to be long-life customers. However, other peoples exhibit changing shopping behaviour. In addition, Buckinx and Poel urge that a relationship holds continuation potential only if the two parties are contented in the ordinary setting where there are alternatives. A decline in customer satisfaction may urge the customer to look for an alternative from the competitor thus breaking the relationship (Buckinx and Poel, 2005). According to Hernandez et al. (2010) customers behaviour in the internet market switches as they gain electronic purchase experience. The perception that initiated them to carry out the first e-purchase may contain diverse effects on their purchasing behaviour or subsequent effects since application of information technology may alter certain attitudes and perceptions. In addition, frequent repetition of customers’ behaviour makes them feel more in control and therefore forming positive interactions about procuring. Similarly, electronic purchases enable the customers to familiarise themselves with the internet as a channel for shopping, to highly value a number of shopping process aspects and to overlook certain features that were of great importance in the initial stages (Hernandez et al., 2010). Although, providers of electronic commerce cannot control the experience level of its customers, they can create sites that contain customization options and then, build customers’ confidence by guiding them through a shopping orientation. Electronic business must give information concerning electronic trade convenience, advantages and properties to potential customers. Therefore, in the initial stage that involves customer capturing, more effort should be applied in making persons feel efficient as well as feeling capable of conducting all forms of electronic transactions (Hernandez et al., 2010). In relating affairs of customer service with matter of organization, there are a number of contributions connected to various types of services. According to Lai (2006) a customer of electronic system is said to be satisfied if the customer believes that the electronic system available meets their requirements, and also offer quality services. Customers rate the reliability of electronic business with the quality of services offered. Quality is defined as discrepancy degree between normative expectations of customers for the service in addition to their service performance perception. Therefore for electronic business to maintain its customers it must maintain quality (Lai and Yang, 2006). Conclusion According to the analysis, electronic business consists of different forms of business module depending on the kind of service an electronic business enterprise is willing to offer. This is because there are varieties of electronic services that can be offered by electronic business, though the concept of their operability is the same. Therefore a provider develops a business module according to the preference of his/her business. Electronic business has experienced an explosive growth in the recent future. This growth that is believed to be due to advancement of technology is expected to continue as time goes. Most people prefer the virtual transaction that does not require travelling to the actual place where the product is found. Therefore it is expected that as its popularity grow, the number of electronic customers will increase. Also it is expected that as more customers get familiarised with the operability of the system in each service, more customers will feel comfortable trading with virtual business rather than the old ways. References Baghdadi, Y., 2004. ABBA: Architecture for deploying business-to-business electronic commerce applications. Electronic Commerce Research and Applications, 2 (3), pp. 190-212. Buckinx, W. and Poel, D.V.D., 2005. Customer base analysis: partial defection of behaviourally loyal clients in a non-contractual FMCG retail setting. European Journal of Operational Research, 164 (1), pp. 252-268. Cho, S. and Park, K., 2002. Empirical taxonomy of services and service products in electronic commerce. Electronic Commerce Research and Applications, 1(3-4), pp. 339-350. Doukidis, G.I., Pramatari, K. and Lekakos, G., 2008. OR and management of electronic services. European Journal of Operational Research, 187 (3), pp. 1296-1309. Hernandez, B., Jimenez, J. and Martin, M.J., 2010. Customer behaviour in electronic commerce: the moderating effect of e-purchasing experience. Journal of Business Research, 63 (9-10), pp. 964-971. Lai, J. 2006. Assessment of employees’ perceptions of service quality and satisfaction with e-business. International Journal of Human-Computer Studies, 64 (9), pp.926-938. Lai J. and Yang, C. 2009. Effects of employees' perceived dependability on success of enterprise applications in e-business. Industrial Marketing Management, 38 (3), pp. 263-274. Phan, D.D., 2003. E-business development for competitive advantages: a case study. Information & Management, 40 (6), pp. 581-590. Piccinelli, G., Vitantonio, G.D. and Mokrushin, L., 2001. Dynamic service aggregation in electronic marketplaces. Computer Networks, 37 (5), pp. 95-109. Teltlscher, S., 2002. Electronic commerce and development: fiscal implications of digitized goods trading. World Development, 30 (7), pp. 1137-1158. Tsalgatidou, A. and Pitoura, E., 2001.Business models and transactions in mobile electronic commerce: requirements and properties. Computer Networks, 37 (2), pp.221-236. Read More