ARPIT Course in Financial Markets and

Emerging Business Models

Module 3.6 Dr. Asha E. Thomas

Assistant Professor

St. Paul’s College, Kalamassery, Kerala

asha@stpauls.ac.in

MOBILE COMMERCE AND SOCIAL COMMERCE

Discussed so far….

Introduction to E-Commerce as a new business model

Architecture of E-Commerce

Electronic payment schemes in E-Commerce

Major Challenges faced by E-Commerce Industry

In this module….

Other Emerging business models

o M-Commerce

o Social Commerce

Mobile Commerce (M-Commerce)

Subset of E-Commerce

The term was coined by Mr. Kevin Duffy in 1997

It is the E-Commerce transactions done using a mobile

device

This model uses Wireless technology (WAP) to

conduct sales, provide services and make payments

Significance of M-Commerce

Larger number of mobile terminals than PC user base.

Incremental growth in mobile penetration

Higher user intimacy with mobile terminals

Accessible anytime and anywhere

M-

Commerce

M- Banking

M-Commerce Framework

Content

Management

Technology Infrastructure

Application Development

Business Service

Infrastructure

Content management involves creation, distribution

and management of diverse range of media rich digital

contents.

The security and authenticity of the contents must be

guaranteed.

There must be access control mechanism.

Technology infrastructure deals with the distribution

of digital contents and transaction details over wireless

communication networks to customer locations.

The technology infrastructure includes Wireless

Communication Technology, Wireless Application

Protocol (WAP) and the Mobile Security Technology.

Technology infrastructure should support digital

content distribution, mobile application development

and distribution.

Mobile Applications

Information Applications

Communication Applications

Entertainment Applications

Commerce Applications

M-Banking

M- Ticketing

M-Computing

Mobile Banking is the process of performing banking

transactions through a mobile device.

The transaction request from the customer first goes to

the mobile service provider and then routed to the

bank.

Depending on the type of transaction, mobile banking

can be categorized as:

o SMS banking

o Wireless Application Protocol (WAP) based banking

SMS banking is usually used for non-financial

transactions

In SMS banking, a SMS code is send to the banker from the

mobile device of the customer.

Bank receives the SMS through a mobile device, the required

transaction will be performed and the information is send

back through another SMS.

In WAP based mobile banking, the customers are provided

with a Mobile Personal Identification Number (PIN) by the

bank.

Customer logs on to the WAP website, using WAP enabled

mobile device.

Customer will enter the PIN to gain access to various

financial and non-financial transactions of the bank.

Mobile Ticketing allows the users to purchase tickets

for air/rail/bus travel or for sports and other

entertainment events from any location at any time

using any mobile device.

Mobile Computing allows the users to do normal

computing operations such as internet surfing,

document preparation, sending or receiving mails or

even downloading audio video files using mobile

devices.

Social Commerce

Business model combining

Social Media and E-Commerce.

Term was first introduced by

Yahoo in the year 2005.

Group interactions are called as community

communications.

Community communications are the foundation of

Social Commerce business.

Attributes of Social Commerce

Social Media

Technology

Community Interaction

Commerce Activity

Community interactions can be broadly categorized as:

a. Interest-oriented community

b. Relationship-oriented community

Interest-oriented community is dispersed with members

participating due to their shared interest in some topics.

Relationship-oriented community groups are the

extension of real life relationships on online platforms.

Committees or opinion leaders can influence consumer

sentiment towards enhancing purchase intention.

Categories of Social Commerce platforms

1. E-Commerce-oriented Social Commerce

2. Interest-oriented Social Commerce

3. Social-network oriented Social Commerce

4. Group buying-oriented Social Commerce

E-Commerce oriented Social Commerce is social

commerce based on e-commerce platforms.

Interest-oriented Social Commerce platforms involve

third party communities that aggregate users centered

on a common interest or theme.

Categories of Social Commerce platforms

(Contd.)

The interactions through the social network platforms

are the theme of Social network-oriented Social

Commerce.

Group buying websites like Groupon, Eversave help

people to organize different group activities and this

became the business opportunity under group buying-

oriented Social Commerce.

The retailers operate by offering one group coupon

product daily in each market place.

Categories of Social Commerce platforms

(Contd.)

Every successful deal will have a minimum number of

buyers that must be reached for the deal to be closed.

Sellers may also have a cut off to constrain the number

of coupons sold.

The signed-up group members play an active role in

this model to create business.