B2C E-Commerce, C2C E-Commerce, and E-Recruiting

Learning Objectives

After completing this chapter, you will be able to:

• •

  Define B2C e-commerce;

• •

  Define pure play and brick-and-click retailers;

• •

  Describe the major advantages and challenges of pure play and brick-and-click retailers;

• •

  Describe B2C e-commerce in the digital content industry;

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  Describe B2C e-commerce in the financial industry;

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  Explain the determinants of prices on the Internet;

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  Understand the differences between B2C and C2C e-commerce;

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  Identify fraud and solutions in online auction;

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  Discuss C2C information sharing;

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  Identify various sources of online consumer information;

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  Discuss the uses and benefits of choiceboards;

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  Identify various types of e-recruiting sources;

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  Discuss challenges in implementing e-recruiting technologies;

Ing Direct: Online Banking

Since launching in the U.S. in 2000, ING DIRECT USA has become the largest direct bank in the United States. ING DIRECT was originally a part of Netherlands-based ING (NYSE: ING), one of the largest financial services companies in the world, with employees operating in 50 countries. Capital One bought ING DIRECT USA for $9 billion in a cash and stock deal on June 16, 2011. ING DIRECT USA is highly profitable, largely due to its scalable and highly efficient operating model.

Headquartered in Wilmington, Delaware, ING DIRECT is not like other banks. They do business online, over the phone and by mail. ING DIRECT deliberately seeks self-service customers for products that have very little variable cost per transaction. Without the overhead and high operational costs of other banks, they could pass their cost savings onto customers. A 2007 feature in TIME explaining the attraction of ING Direct: ING DIRECT pays 4.5% on a savings account, while the average account gives 0.46%, according to Bankrate.com Then there is the fast-food aesthetic: simple, inexpensive service.

ING Direct offers exactly one type of savings account and one type of checking account. There are no fees and no minimum balances. Over 7 million Americans have entrusted their savings with ING DIRECT. With no physical bank branches, but rather call centers, internet cafés and web access to ensure consistency of service, ING DIRECT offers its customers 24/7 Internet and telephone banking. Operating solely in an electronic environment, ING DIRECT offers a rapid and easy way for processing customer transactions and information. As of August 2011, ING DIRECT is the largest U.S. online bank with $81.6 billion of deposits.

After reading this chapter, you will be able to answer the following:

• 1.

  How did e-commerce affect the financial industry?

• 2.

  What are the advantages and disadvantages of pure-play retailers?

• 3.

  How did e-commerce contribute to the rapid proliferation of digital products and services?