Selecting an ebusiness Model for B2C

There are as many business models in the B2C classification as there are novel and diverse ways of delivering products to the customer. ebusiness has given rise to many new and potentially revolutionary models on which a business can be based, so much so that some business models are now being patented.

• Applying the Models to B2B and B2C
  Although we cannot discuss every flavor of B2C business model in existence, we can classify them into a few categories. These categories include:
  1. The Information Intermediary (Infomediary) model
  2. The Affiliate model
  3. The Merchant model
  4. The Web Community model
  5. The Utility model

The following series of images below describes each of these models.

While business-to-business commerce refers to business transactions between companies, business-to-consumer models are those that sell products or services directly to personal-use customers. B2C or business-to-consumer companies connect, communicate and conduct business transactions with consumers most often by means of the Internet. B2C is larger than just online retailing and includes

1. online banking,
2. travel services,
3. online auctions, and
4. health and real estate sites.

• Example of Information Intermediary Model: In connection with use of their service, some sites using the Information Intermediary Model collect website usage data and traffic pattern data with respect to activity both within and across websites. We will discuss eMarketing and privacy in a later lesson. A site that offers a Web-based consumer-to-consumer shopping information resource might include the following features:
  
  1. Registered users can read and post information about products for sale on any Web site, including price comparisons, product reviews, and recommendations and tips for purchasing. ·
  2. Consumers can review information about purchasing and owning a car and choose from a list of accredited dealer networks, and dealers can reach online car buyers efficiently.
  Business-to-consumer electronic commerce (B2C) is a form of electronic commerce in which products or services are sold from a firm or company to a consumer.
  The search for an extra revenue source resulted in developers to think about building relationship with businesses and the emergence of two sided intermediary business model instead of the traditional one sided business models like B2B and B2C models prevailing in the industry. Most of the incumbent players like DistributedNetworks started diverting their attention by focusing on the B2B side of the business for creating a third revenue stream. Lately, companies started getting the pay off from this model by retaining their dominance in the value network by not leaving the interaction with customers. The experiment by DistributedNetworks with a local business dashboard is a sign of this. The business model of Gofpatterns, mobile application which rewards and offers mobile users simply for walking into stores and OOPortals. Media Solution's mobile advertising platform are examples of increasing business interactions in the consumer market. There is an increasing focus on Business to Business interaction in the market using intermediary model and this report intends to provide an insight on this.

These storefront sites are the place to find and discover almost anything you want to buy online.
Products sold at these online shopping sites may include free electronic greeting cards, online auctions, and millions of books, CDs, videos, DVDs, toys and games, and electronics.

• Merchant Model
  The merchant model is a business model that consists in selling goods or services over the internet. This type of e-business is the most popular amongst wholesalers and retailers, and its sales are usually made through auctions or based on list prices. It is often the case that online merchants offer products at a discounted price, this is attributable to the way they operate because of the following reasons:
  
  1. Merchandise is purchased from manufacturers in large amounts
  2. Operations are usually done from inexpensive warehouses located in peripheral areas
  3. Drop shipping is frequently used as supply chain management technique, which means that the retailer does not keep goods in stock; instead it instructs the manufacturer or wholesaler to ship the purchased merchandise directly to the customer.

Consider an online music store selling audio CDs and DVDs to end users or customers through orders on Internet. The following example implements the concept of b2c business model. Amazon.com is the leading online retailer of products that inform, educate, entertain and inspire. The Amazon group also has online stores in the United States, Germany, France, Japan and Canada.

Advertising as a tool of communication and marketing tool is subject to many theories and explanatory and normative models. Its contents and performed functions are not yet defined in general recognized theory. Present article focuses on the analysis of advertising in terms of its specific persuasive effort and communication process. Advertising seen as a process is based on the general scheme of the marketing communication process, with a number of specific features related to its content. The persuasive effort is related to creation of favorable attitudes or reinforcing existing attitudes. This process of persuasion is closely linked to the concept of attitude. Most theories of advertising have explored the connection between persuasion and attitude, identifying possible responses that the receiver can give to advertising information. Following lines develop these two important aspects associated with advertising theory, even if they are not the only issues that are debated in the literature.

• Examples of B2C Models
  The following links contain examples of B2C models.
  1. Affiliate model
  2. Web Community Model
• Example of the Utility Model
  Sites that align themselves with this model offer services on a pay-per-use basis. Examples of sites using this model are listed below:
  
  1. A site that lets you dynamically control the distribution, access, and audit trail of content using the three most popular forms of business communications: email, Web sites, and document distribution.
  2. A site that sells surveys that provide in-depth analysis of more than 50 industries; these reports are usually sold in yearly subscriptions.
  
  To understand the nature of the utility model, it is useful to place it in the context of business models in general. A business model is a method of doing business. All business models specify what a company does to create value, how it is situated among upstream and downstream partners in the value chain, and the type of arrangement it has with its customers to generate revenue. In any given industry, the methods of doing business may vary, but there are limits imposed by technological factors, by the competitive dynamic among companies and between companies and their channel partners, and by customer expectations and preferences.

[1] Utility: Sites that sell content or services on a metered, or per-use, basis. This is an evolving business model that might be used in the new approaches to software distribution. Horizontal market: Suppliers and products that focus on broad categories crossing multiple industries such as software, office supplies, and utility markets.