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Lesson 7

e-business Models Conclusion

In the realm of e-business, the benefits can be categorized into two broad dimensions: perceived and actual benefits. These terms encapsulate a critical dichotomy and are essential in the exploration and comparison of various advertising models within the context of electronic business. Perceived benefits refer to those advantages that consumers or business owners believe they will receive from using a particular service or product, or adopting a certain e-business model. These are often projected by the advertising and marketing strategies adopted by the business. On the other hand, actual benefits refer to the tangible or real advantages that are realized upon the implementation and use of a specific e-business model or advertising strategy. These benefits often include cost reduction, increased sales, and improved customer satisfaction.
To differentiate between these two sets of benefits, we must delve into a detailed analysis of the interplay between e-business models and the respective advertising strategies they employ. The perceived benefits are generally the product of promotional activities and the kind of advertising model a business adopts. For instance, if a business adopts a Pay-Per-Click (PPC) advertising model, the perceived benefits may include immediate visibility, increased website traffic, and an immediate return on investment (ROI). However, the actual benefits might vary and could include an improved conversion rate, detailed customer insights, and more strategic targeting, which are only realized after continuous application and review.

Cost-Per-Impression (CPM)

A Cost-Per-Impression (CPM) model might suggest perceived benefits such as extensive reach and brand awareness due to the model's focus on impressions rather than direct conversions. Yet, the actual benefits might be reflected in the long-term recognition and reputation-building, the effects of which might not be immediately noticeable.
On another note, the Cost-Per-Acquisition (CPA) model promises the perceived benefit of paying only for the achieved conversion, which seems cost-effective. However, the actual benefits might come in the form of efficient spending on advertising and a clear understanding of the customer acquisition cost. Therefore, the key to distinguishing between perceived and actual benefits lies in practical experience and thorough analysis. It involves constant monitoring, data tracking, and the use of analytic tools to measure the real impact and effectiveness of the chosen advertising model.
To ensure optimal selection and execution of advertising models, businesses must take into account both perceived and actual benefits. They should maintain a balance between the two, aiming not only to attract customers with potential benefits but also to deliver on these promises, thus providing tangible benefits. Hence, it can be argued that a well-constructed e-business architecture is one that effectively differentiates between and capitalizes on both perceived and actual benefits. This differentiation serves as a cornerstone in the process of determining the most suitable advertising model, thus, driving the success of an e-business in the competitive digital landscape.
Having completed this module, you should now be able to:
  1. List and differentiate between perceived and actual benefits of eBusiness
  2. Identify the various B2B models available
  3. Identify the various B2C models
  4. Differentiate between various Brokerage models
  5. Describe the various Advertising models

The following terms may be new to you:
  1. MRO inputs:Maintenance, Repair and Operating products and services; examples include human resources and capital equipment.
  2. B2B: A primary Business model where the buyer and seller are both businesses. This would be the case for a wholesale stationer selling stock to retail outlets.
  3. B2C: A primary two-business model where the seller is a business and the buyer is a consumer or individual such as with a bookstore that sells books to the public.
  4. Hub: A business that connects multiple buyers and sellers together electronically.
  5. Vertical hub: Source manufacturing inputs such as raw materials, components or sub-assemblies for manufacturers within a specific domain; tend to be industry sector specific in their content and relationships.
  6. Catalog hub: These place industry specific catalogs online from either a buyer or seller perspective.
  7. Exchange hub: Matches buyers in an industry with a supplier, by facilitating a temporary relationship between the buyer and seller based on supply and demand.
  8. Horizontal hub: Automate a business function or procedure across domains; are also known as Functional hubs.
  9. eProcurement hub: Are similar to catalog hubs but are not industry specific; also known as MRO hubs.
  10. Yield manager hub: Source operational inputs such as advertising, human resources, logistics and utilities, and work best where the demand and prices are more volatile and the goods or services are specialized.
  11. eTailers: A retailer that uses the Internet as a medium for selling products.
  12. Vortal: Specialized portal that is based on an area of interest or service which is industry specific.
  13. Specialized portal: Also known as a Vortal, is based on an area of interest or service that is industry specific.
  14. Component: A module, object or program that performs a specific function, and is designed to easily integrate with other components.
In the next module, we will discuss how to make your business an eBusiness.

Ebusiness Conclusion - Quiz

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ebusiness Conclusion - Quiz