Wednesday, April 14, 2010

Exercise 1 Analysis of the online communities' paradigm


Topic 1

A) What is meant by online community and how is it important for e-commerce?


Online community exists in the web whose users enable its existence by taking part in membership rituals. It is a virtual community (Kim, 2000). It is similar as social community in the present world; an online community involves developing a web of relationships among users who have something meaningful in common, for example, hobbies, professionalism, religions, etc. In a social networking website – Facebook, users can develop a group and collect other users by sharing the same thought or interests. Users are related to each other by joining these user groups. Different online communities are formed.

Online community is a structure of virtual community under that group of people connecting with each other mainly via communication media such as letters, telephone, email, UseNet instead of in person for all kinds of purposes.  For the communication media using computer networks, it is online community.

Within an online community, users can switch information of products or services. With help of these services vendors or service providers can promote their products or services without paying any extra cost. Meanwhile, they can found online communities related to their product and reach their target customers through media.

Online community gathers groups of people with common interests which facilitates      e-commerce in the following aspects:-
  • Contacts between potential customers, buyers and suppliers
  • Developing business opportunities with e-commerce

B)……Is there a common thread and a local community sense in action?
There is a common thread and a local community sense in action in online community.
Topic 2
Visit the famous online store front at http://www.amazon.com
a.             Why has it been a successful site?  How does the purchase of a book work?
Amazon.com has been a successful online shopping website just because of the few advantages:-
- user-friendly interface
- a extensive range of products
- supporting many languages
- secured transaction (Privacy)
- acceptable loading speed
- personalized shopping recommendations for users
- search functions allowing customization by users
- 1-click ordering
- allowing users to sell their old books, cd, etc.

Ordering a book from Amazon.com is quick. Once you have found the book, then add to your shopping cart and click the “checkout” button. It will ask you to log in via their secure server. When logon successfully, it will verify the billing and payment details before placing order.
b.             Are there any secure transactions not involving money?
Yes, besides payment transfer, transaction of user name and password when logon is also secured in Amazon.com.
Topic 3
What happens with new models emerging such as price comparison sites?

Emergence of new e-commerce model will change:-
- architecture of web framework systems
- people’s shopping habit
- sellers' online marketing strategies
- information security issues and control

Reference:

Kim, A.J. (2000). Community Building on the Web: Secret Strategies for Successful Online Communities. London: Addison Wesley

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