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e-Commerce89. e-Commerce

Clyde W. Holsapple, Sharath Sasidharan

Electronic commerce (e-Commerce) is fast becom-ing a way of life in the 21st century. As moreand more consumers and organizations resort toelectronic means for conducting purchases andfacilitating business transactions, it has becomevital for academic researchers as well as practi-tioners to understand its workings, and be ableto analyze problems and rectify weaknesses. Thisis complicated by the fact that the e-Commercemarket is global and constantly evolving, withnew and innovative business models and prod-ucts being introduced at a rapid pace. We presentan overview of the status of e-Commerce, withparticular emphasis on academic research. Specif-ically, we review the historical background ofe-Commerce, discuss theoretical frameworks, andexamine e-Commerce models. We also discussemerging trends as well as pressing issues facingthe e-Commerce marketplace.

89.1 Background ......................................... 1578

89.2 Theory ................................................. 158089.2.1 Definitions of e-Commerce ........... 158089.2.2 Frameworks for e-Commerce ........ 158189.2.3 e-Commerce Success Parameters ... 1583

89.3 e-Commerce Models and Applications .... 158589.3.1 B2C e-Commerce ......................... 158589.3.2 B2B e-Commerce......................... 158889.3.3 C2C e-Commerce ......................... 1590

89.4 Emerging Trends in e-Commerce ........... 159189.4.1 Mobile Commerce ........................ 159189.4.2 Telemedicine: e-Health ............... 159289.4.3 Fee-Based Information Delivery .... 1592

89.5 Challenges and Emerging Issuesin e-Commerce..................................... 159289.5.1 Trust and e-Commerce................. 159289.5.2 Legal Issues in e-Commerce ......... 159389.5.3 Outlook ...................................... 1593

References .................................................. 1594

Electronic commerce (e-Commerce) is fast dominat-ing every aspect of our day-to-day existence. Whetherpurchasing retail products ranging from books to au-tomobiles, or services ranging from information tobanking, consumers are increasingly turning to the In-ternet and the World Wide Web (WWW). Businessesare increasingly conducting transactions within theirvalue chains and across their supply chains throughelectronic means. There is constant experimentationwith newer and more innovative business models, re-sulting in an ever-evolving e-Commerce marketplace.This chapter provides a comprehensive picture of thee-Commerce landscape, with an emphasis on academicresearch findings.

With this in mind, we first discuss the evolution ofe-Commerce. This is followed by a discussion of the-oretical aspects of e-Commerce research: definitions,frameworks, and success parameters. We then discussthree broad e-Commerce models: business-to-consumer(B2C), business-to-business (B2B), and consumer-to-consumer (C2C). Special emphasis is given to threepopular B2C activities: online shopping, online bank-ing, and electronic learning. We then discuss threeemerging e-Commerce applications: mobile commerce,telemedicine (or e-Health), and fee-based informationdelivery. Finally, we conclude with a discussion on twoopen issues facing e-Commerce: user trust and legalconsiderations.

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89.1 Background

Prior to the 1960s, information systems (IS) wereprimarily used for scientific research and militarypurposes, and very rarely for commerce. The early busi-ness applications of computers ranged from the LyonsElectronic Office (LEO) system, automating clerical ac-counting tasks, to the Bank of America’s electronicrecording machine accounting (ERMA), involving theautomation of check handling. The 1960s and 1970ssaw business establishments becoming heavy users ofcomputers for accounting and production activities, butlargely confined to applications within the organization.It was with the development of the electronic data in-terchange (EDI) in the 1970s that organizations startedcommunicating with one another electronically. Thehigh cost of development and maintenance of privatenetworks, lack of standardization, and the fact that notall organizations had EDI systems hindered its earlygrowth. The development of the Accredited StandardsCommittee (ASC) X12 standards in the 1980s provideda boost to the popularity of EDI. Even today, EDI fa-cilitates a majority of B2B e-Commerce transactions

Fig. 89.1 Google website

through value-added networks (VAN) and over the In-ternet [89.1, 2].

Paralleling the development of EDI was the growthof the Internet, which later (along with the WorldWide Web) became the driving force behind B2Ce-Commerce. The Internet had its origins in thelate 1960s as the advanced research projects agencynet (ARPANET), designed exclusively for research,education, and use by government organizations. Sub-sequently, in 1983, the ARPANET was split into theMilnet and the Internet, the former used for militarypurposes and the latter for research and education.Around this time, the communication of computers overthe Internet was standardized using the transmissioncontrol protocol/Internet protocol (TCP/IP), and in thefollowing year the domain name system (DNS) wasintroduced [89.3].

In 1989, Tim Berners-Lee of the European Lab-oratory for Particle Physics (CERN) started devel-oping the World Wide Web (WWW). Commer-cial access to the Internet began with The World

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(http://www.world.std.com) becoming the first providerof dial-up Internet access. Development of the Mosaicbrowser by Marc Andreessen, and its evolution into theNetscape browser with secure sockets layer (SSL) tech-nology provided easy and secure access to the WWWfor the general populace [89.3, 4].

In 1993, close to 30 million people were using theInternet in North America, with 43.2 million US house-holds owning a computer. The subsequent years saw thelaunches of what were to become two of the greatestsuccess stories in e-Commerce: Amazon and eBay, andthe sale of airline tickets by Southwest Airlines throughthe WWW, marking the beginning of a new era in thetravel and tourism industry. This was quickly followedby online travel sites sponsored by different airlines, andthe emergence of online travel agents such as Expediaand Travelocity [89.2].

At this point, the primary limiting factor to thespread of e-Commerce was the speed, quality, and relia-bility of Internet access; however this issue was partiallyresolved with the introduction of the digital subscriberline (DSL). Worldwide, the number of Internet users

Year(s) Event

1951 Lyons Electronic Office (LEO) system

1959 Electronic recording machine accounting (ERMA) system

1969 Advanced research projects agency net (ARPANET)

1970s Electronic data interchange (EDI)

1971 Internet-based email

1982 ASC X12 standards for EDIs

1983 ARPANET was split into the Milnet and the Internet

1983 Transmission control protocol/Internet protocol (TCP/IP)

1984 Domain name system (DNS)

1989 World Wide Web

1989 The World (http://www.world.std.com)

1993 Mosaic browser

1994 Netscape browser

1994 Manufacturing assembly pilot (MAP) project

1995 Amazon and eBay

1996 Trading process network (TPN) post

1990s Digital subscriber line (DSL)

1999 Google

2000 Bursting of the dot-com bubble

2004 B2B market size estimated at over US$ 1800 billion

2006 B2C market size estimated at over US$ 200 billion

Table 89.1 Important e-Commercemilestones

had catapulted to 150 million, with more than half fromthe USA. In 1999, two of what were to become iconicnames in cyberspace were launched: the search engineGoogle and the social networking website MySpace.The Google search engine provided a very efficient andeffective search tool to browse the increasingly clutteredWWW, thereby indirectly promoting B2C e-Commerceactivities (Fig. 89.1) [89.3, 4]. MySpace facilitated so-cial networking through user-created personal profiles,blogs, groups, photos, and events.

The expansion of the Internet was also associatedwith the burgeoning B2B e-Commerce marketplace.New methods of conducting commercial transactionsbetween buyers and suppliers along the entire lengthof the supply chain were developed. For example, in1994, to improve material flow within their supplychains, the big three automakers, Chrysler, Ford, andGM, and 12 of their suppliers participated in the man-ufacturing assembly pilot (MAP) project. The MAPparticipants were electronically connected, and infor-mation took less than 2 weeks to reach the bottom of thesupply chain, instead of the earlier 4–6 weeks. Another

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case is that of General Electric (GE), which introducedits first online procurement system in 1996, an ex-tranet called the trading process network (TPN) post.GE could now communicate with its internal customersover the extranet and with its worldwide suppliers overthe Internet, facilitating same-day evaluation and awardof bids [89.2].

The rapid development of the Internet in the late1990s led to millions of dollars being invested inInternet-based online companies, leading to record-

breaking stock value appreciation – the so-calledInternet bubble. The year 2000 saw the bursting of thebubble, investment dropped, stock indexes plunged, andmany online companies became defunct. The situationhas since stabilized, and in 2006, B2C e-Commercesales are estimated at over US$ 200 billion, an increaseof 20% versus 2005. This, however, is dwarfed by theB2B market whose size amounted to US$ 1821 billionin 2004 [89.5, 6]. The important milestones in the evo-lution of e-Commerce are presented in Table 89.1.

89.2 Theory

Aside from its dynamic and still-unfolding history, e-Commerce has raised a host of questions related to itsdeployment, impacts, and possibilities [89.7]. To builda foundation for addressing these questions, researchershave investigated e-Commerce from a variety of stand-points, yielding a growing understanding of the natureand issues of this phenomenon that has emerged as suchan important socioeconomic force. Here, we examinetheoretical aspects of the e-Commerce research foun-dation from three perspectives: definitions, frameworks,and success parameters.

89.2.1 Definitions of e-Commerce

What is e-Commerce? What are its boundaries? Whatconstitutes e-Commerce and what does not? As orga-nizations devise new business models and innovativeInternet-based applications, defining the boundaries ofe-Commerce with any degree of precision has provento be a challenge for researchers and practitionersalike.

For example, e-Commerce has been defined by re-searchers as [89.8]:

. . . the sharing of business information, maintainingof business relationships, and conducting of busi-ness transactions by means of telecommunicationsnetworks,

and as [89.9]:

. . . the use of the internet to facilitate, execute, andprocess business transactions.

Likewise, practitioners too have offered multipledefinitions [89.10]:

. . . the buying and selling of goods and services onthe internet, especially the WWW,

and as [89.11]:

. . . the process of managing online financial trans-actions by individuals and companies.

A review of these sample definitions makes it clearthat there are multiple views or perspectives as to whatconstitutes e-Commerce. To provide an all-inclusivecharacterization of e-Commerce, Holsapple and Singhconducted an extensive study of the e-Commerce lit-erature, and introduced a five-cluster taxonomy ofe-Commerce definitions [89.12]. A common theme un-derlies definitions within each cluster. The five clustersare: the trading view, the information exchange view,the activity view, the effects view, and the value-chainview:

• The trading view is characterized by market-basedactivities such as buying and selling facilitated byelectronic means. This is the most commonly heldview of e-Commerce. Holsapple and Singh providethe following example as representative of the trad-ing view [89.13]:

. . . e-Commerce is associated with the buying andselling of information, products, and services viacomputer networks today and in the future via anyone of the myriad of networks that make up theinformation superhighway.

• The information exchange view recognizes the flowof information that can precede, accompany, or fol-low a transaction. A definition in this cluster mayor may not mention the buying or selling aspects of

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a transaction. The following is an example [89.14,p. 136]:

Electronic commerce has been used to describea wide variety of business related transactions, butis at its core the data used for conducting day-to-daybusiness operations with suppliers and customers.

• The activity view recognizes nontrading aspectsof e-Commerce such as marketing and productionactivities, decision support, research, maintainingbusiness relationships, and other ancillary activi-ties [89.12, 15]. For example [89.16, p. 31]:

Electronic commerce is a generic term that en-compasses numerous information technologies andservices to improve business practices ranging fromcustomer service to inter-corporation coordination.

Together, the informational and activity views are em-phasized in what is known as collaborative commerce(c-Commerce): the use of computer/communicationtechnologies to help participants exchange informationin the course of some collaborative activity, which maywell enable the collaborative generation of new knowl-edge. c-Commerce has emerged as a major and growingfacet of e-Commerce with a host of research issues in itsown right [89.17].

• The effects view focuses on the goals or reasons forusing e-Commerce, such as reduced costs, smootherinformation flows, remote collaboration, better co-ordination between buyers and suppliers, bettercustomer management, and improved service qual-ity. The following is an example [89.13, p. 1]:

Broadly defined, electronic commerce is a mod-ern business methodology that addresses the needsof organizations, merchants, and consumers to cutcosts while improving the quality of goods and ser-vices and increasing the speed of service delivery.

• The value-chain view acknowledges the use ofe-Commerce in creating value in one or more ofthe primary and/or secondary value chain activi-ties of the organization. The value chain need notbe intra-organizational, but can extend to interor-ganizational value chains of which the organizationforms a part [89.12, 15]. The following is an exam-ple [89.18, p. 5]:

Electronic commerce denotes the seamless applica-tion of information and communication technology

from its point of origin to its endpoint alongthe entire value chain of business processes con-ducted electronically and designed to enable theaccomplishment of a business goal. These processesmay be partial or complete and may encom-pass business-to-business as well as business-to-consumer and consumer-to-business transactions.

Given the interconnectedness of five views, Holsap-ple and Singh advance an integrated definition ofe-Commerce [89.12, p. 161]:

Electronic commerce is an approach to achievingbusiness goals in which technology for informationexchange enables or facilitates execution of activi-ties in and across value chains as well as supportingdecision making that underlies those activities.

Although the integrated definition encompasses thetaxonomy’s five views of e-Commerce, it does not ad-dress the concept of information exchange to accountfor the whole gamut of knowledge management (KM)issues. Thus, Holsapple and Singh further extend thisdefinition as follows [89.12, p. 164]:

EC is an approach to achieving business goals inwhich technology is used to manage knowledge forpurposes of enabling or facilitating the execution ofactivities in and across value chains as well as themaking of decisions that underlie those activities.

This is the most comprehensive definition of e-Com-merce existing in the literature. A researcher, practi-tioner, or student can adopt any of the taxonomy’sfive views or the integrated comprehensive definition,but is well advised to be cognizant of the alternativeviews if the comprehensive definition is not adopted.Having considered e-Commerce definitions, we nowsummarize several frameworks proposed for appreciat-ing e-Commerce elements and issues.

89.2.2 Frameworks for e-Commerce

The generic framework of electronic commerce, in-troduced by Kalakota and Whinston, identifies threemajor types of components: applications, infrastructurebuilding blocks, and support pillars [89.13, 19]. To-gether, these form a basis for organizing one’s thoughtsabout e-Commerce and for ensuring that important el-ements of e-Commerce are not overlooked. The firstcomponent, electronic commerce applications, includessystems for supply chain management, procurement,online marketing, remote banking, home shopping, and

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so forth. Underlying the applications, the second com-ponent is comprised of four layers of infrastructurebuilding blocks. From lowest to highest, these lay-ers are: the information superhighway infrastructure(the means for connecting, including the Internet), thenetwork publishing infrastructure (the means for cre-ation/storage of information and multimedia content,including servers), messaging and information distribu-tion infrastructure (the means for moving content acrossconnections and to/from storage, including email, EDI,file transfer, etc.), and common business services in-frastructure (means for ensuring safety, reliability, andconvenience of users, including mechanisms for au-thentication, security, privacy, paying, locating, and soforth). The generic framework identifies two supportpillars for electronic commerce: public policy and legalissues (including regulation, taxation, cost, and policingconcerns) and technical issues (including standards andprotocols).

Alternatively, e-Commerce can be viewed as beingcomprised of three hierarchical metalevels: technol-ogy infrastructure, services, and products and structures(Fig. 89.2) [89.8, 20]. The bottom metalevel is the tech-nology infrastructure and deals with wired and wirelesscommunication networks, public and private communi-cation utilities such as the Internet and organizationalintranets/extranets, and multimedia management capa-bilities that deliver the functionality of the WWW.This metalevel corresponds to the lower layer of thegeneric framework’s infrastructure building blocks. The

Top metalevel: Actual products and services

• Electronic auctions, brokerages, dealerships• Online consumer services• Buyer-supplier linkages• Intranet/extranet-based B2B collaboration• Interorganizational systems

Bottom metalevel: Technology infrastructure

• Wired and wireless communication networks• Public and private communication utilities• Multimedia management capabilities

Middle metalevel: Communication services

• EDI, e-Mail, electronic funds transfer• Electronic catalogs/directories• Financial services• Digital authentication/copyright services

Fig. 89.2 Metalevel framework (after [89.8, 20])

middle metalevel is that of services, comprised of ser-vices facilitating secure communication and enablerssuch as electronic catalogs and directories, intelligentagents, electronic money and financial services, smartcard systems, digital authentication services, and copy-right services [89.20]. This metalevel corresponds to thehigher layers of the generic framework’s infrastructurebuilding blocks. The top metalevel consists of the actualproducts and services as well as their delivery mecha-nisms. These include, among others, online consumerservices for shopping, banking, and auctioning; buyer–supplier linkages and Intranet/extranet-based B2B col-laboration; and other interorganizational systems thatfacilitate the entire spectrum of supply chain activities.This metalevel corresponds to the generic framework’sapplications component.

Extending the hierarchical framework, Zwass pro-poses a 5C activity framework that enables theidentification of specific WWW-based e-Commerceinnovational opportunities [89.21]. The 5C activityframework recognizes five WWW based e-Commerceactivity domains: commerce, collaboration, communi-cation, connection, and computation. The commercedomain includes the marketplace and supply chain link-ages. For the former, innovational opportunities arepossible in searching for partners and subsequent ne-gotiation of terms and conditions, new business models,product customization, delivery of products or services,and subsequent customer management services. For thelatter, opportunities include redesign and reconfigura-tion of the supply chain, electronic reintermediation,and adoption of best-of-breed processes.

In the collaboration activity domain, the WWWcan facilitate building and sustaining relationship net-works such as long-term alliances between buyersand suppliers, and with customers. Innovations in thecommunication activity include the development of vir-tual customer communities that can serve to enhanceknowledge of customer needs and requirements, ob-tain feedback of existing products and services, andform a source of new product ideas. In the connectiondomain, the anytime–anywhere connectivity providedby the WWW facilitates a wide variety of mobilecommerce innovations for monitoring and tracking ofpersonnel, objects, and systems. Movement of organi-zational information systems to the WWW can facilitateintra- and interorganizational system integration. Thecomputation activity domain views the Internet andthe WWW as a single enormous computing resource,connecting together innumerable computers, software,data, and people – facilitating grid computing.

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Table 89.2 Riggins’ electronic commerce value grid (after [89.22, p. 301])

Five dimensions Value creationof commerce Efficiency Effectiveness Strategic

Time Accelerate user tasks Eliminate information float Establish 24 × 7 customer service

Distance Improve scale to look large Present single-gateway access Achieve global presence

Relationships Alter role of intermediaries Engage in intermediaries Create dependency to lock-in user

micromarketing to look small

Interaction Make use of extensive user User controls detail Users interact via online

feedback of information accessed community

Product Automate tasks using Provide online decision Bundle information, products,

software agents support tools and services

To help managers identify online opportunities andtypes of applications that may yield value to users, Rig-gins describes a framework in which firms compete ina space defined by five dimensions of commerce: time,distance, relationships to customers, interaction modes,and product/service offered [89.22]. These are juxta-posed with three criteria for technology investment:greater efficiency, increased effectiveness, and strategicbenefits. The result is the electronic commerce valuegrid, highlighting 15 areas for a firm to consider in striv-ing to add value to its customers through web-basedelectronic storefronts (Table 89.2).

Choi et al. provide an integrated microeconomicframework for understanding electronic commerceand maximizing its benefits [89.23]. This frame-work characterizes e-Commerce as involving a globalelectronic marketplace of digital products subject tovarious pricing strategies. These products includeonline goods/services, software, digital content, ad-vertisements, announcements, product/vendor informa-tion, digitized processes, payment/tracking information,smart products, communications, and so forth. Six ma-jor themes are stressed in this framework: productquality and the role of market intermediaries; digi-tal copyright issues; product advertising; consumers’product-information searching activities; product eval-uation/choice and pricing approaches; and digital fi-nancial services including payment processes. Each ofthese themes is subject to many design and implementa-tion variations that demand attention from practitionersand deserve continuing investigation by researchers.

In a related vein, Schlueter and Shaw presenta framework for analyzing structures and dynamics ofdigital goods/services markets and industries [89.24].This framework identifies six value-adding stages for

firms involved in e-Commerce: content direction, con-tent packaging, market making, transport, delivery ser-vice, and interface and systems. Via alliances, mergers,or acquisitions, firms collaborate to align their capabil-ities and assets in ways that cover the six value-addingstages. This collaboration can involve diverse firms suchas those in the financial service, information distribu-tion, entertainment, creative content, communications,advertising, and computing industries. From another an-gle, Lindemann and Schmidt offer a market-orientedframework to model specific e-Commerce platformsfor coordinating exchange activities among participantsin digital markets [89.25]. Yet another e-Commerceframework integrates four earlier e-Commerce frame-works with the traditional marketing model (involvingconcepts of product, price, promotion, and distribution)as a foundation for devising e-Commerce marketingstrategies [89.26].

The e-Commerce literature also contains a consid-erable number of fairly specialized frameworks. Oneof these, for example, advocates a three-level architec-ture for studying how intelligent agents can be appliedto support electronic trading activities in the sense ofmaking electronic markets more effective [89.27].

89.2.3 e-Commerce Success Parameters

What is meant by e-Commerce success? How can itbe measured? Researchers have used multiple yard-sticks for measuring e-Commerce success dependingon the research context. For B2C transactions, widelyused success parameters involve website usage factorssuch as acceptance, adoption, actual usage, intentionto use, and intention to return [89.28–31], as well aspurchase-related factors such as actual purchase, inten-

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Table 89.3 B2C e-Commerce success parameters

Factors influencing success Success measures

Website design factors:

• Navigation, convenience, usability• Reliability, responsiveness• Accessibility, flexibility, relevance• Security/privacy• Quality of support services• Virtual-reality technologies for high-experiential products• Social presence through rich descriptions and graphics• Value-added mechanisms• Recommendations from prior customers

Individual factors:

• Demographics• Prior experience, computer self-efficacy• Technological background• Subjective norms• Innovativeness, adaptability, awareness• Ease of use, usefulness, enjoyment• User trust

Website usage factors:

• Acceptance• Adoption• Actual usage• Intention to use• Intention to return

Purchase-related factors:

• Actual purchase• Intention to purchase• Willingness to pay

Customer-related factors:

• Satisfaction• Loyalty• Learning

tion to purchase, and willingness to pay [89.32–34].Customer-related factors such as satisfaction [89.35],loyalty [89.36], and learning [89.37] have also been em-ployed. Finally, customer perceptions of the usefulnessof a website [89.38] and of the quality of a web-site [89.39] have been used to measure e-Commercesuccess. We summarize the e-Commerce success pa-rameters in Table 89.3.

In order to bring clarity to e-Commerce researchand to provide a framework for measuring e-Commercesuccess, DeLone and McLean suggest extending theirinformation systems success model [89.9, 40, 41] to thecontext of e-Commerce research. The latter contendsthere are multiple dimensions of information systems(IS) implementation success including system usage(e.g., frequency, motivation, regularity, objectives of us-age), system quality (e.g., reliability, response time,ease of use, usefulness, error rate), user satisfaction(e.g., overall satisfaction, decision-making satisfaction,user complaints), information quality (e.g., accuracy,precision, timeliness, completeness), service quality(e.g., assurance, empathy, responsiveness), and netbenefits (e.g., productivity, decision accuracy, profit).Adapting these success dimensions to the e-Commerce

domain, with suitable modifications, yields their frame-work for measuring e-Commerce success.

System usage in an e-Commerce context translatesinto the number of website visits, navigation within thesite, and transaction execution. As noted above, mostof these have already been widely used by researchers.For the system quality dimension, factors such as re-liability, accessibility, response time, ease of use, andusefulness are extended directly to the context of a web-site, and these have been used in studies reported inthe e-Commerce literature. The user satisfaction dimen-sion can be applied to measure satisfaction at differentstages of customer interaction, ranging from informa-tion gathering to post-purchase services. In the case ofthe information quality dimension, an important fac-tor is privacy and security, apart from personalizationof content, and the completeness and relevance of theinformation. Service quality can be measured as theoverall customer experience, and this is an importantmeasure given the fact that switching costs are lowin an e-Commerce environment. Net benefits in an e-Commerce environment can be measured in terms ofsavings in time and money, enhanced productivity, andimproved decision-making [89.9].

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89.3 e-Commerce Models and Applications

The US Department of Commerce views B2B e-Com-merce as dealing with manufacturing and wholesaleactivity, and B2C e-Commerce as dealing with retailingand the service industry [89.6]. Based on this catego-rization, the total volume of e-Commerce transactionsin 2004 amounted to US$ 1951 billion, representinga 14.4% increase over the previous year, and compris-ing roughly 10% of the total value of US shipment,sales, and revenue. The lion’s share of the e-Commercemarket in dollar terms is in the B2B segment, amount-ing to 93% or US$ 1821 billion. However, given itsintrusion into virtually every single aspect of our dailylife, B2C e-Commerce remains perhaps the most vis-ible and easily recognizable face of e-Commerce. Wefirst discuss the B2C e-Commerce market, followedby the B2B e-Commerce market. We then discussthe small but rapidly emerging C2C e-Commercemarket.

89.3.1 B2C e-Commerce

The B2C e-Commerce market has continued to growwith recent estimates being as high as US$ 210 billionfor 2006, an increase of 20% over the previous year, andprojected to reach US$ 330 billion in 2010 with an esti-mated 55 million online shopping households in the US.In dollar terms, the largest B2C e-Commerce productline is travel, with approximately 35% of the market atUS$ 70 billion. This is followed by computer hardwareand software at US$ 17 billion, automotive equipment atUS$ 16 billion, and apparel at US$ 14 billion [89.5]. Wenow examine some of the more important segments ofthe B2C e-Commerce marketplace: online retail shop-ping, online banking, and electronic learning.

Online Retail ShoppingThis is perhaps the most visible face of e-Commerce– the online selling of a wide range of retail goodsand products such as clothing, clothing accessories,electronic devices, electrical appliances, computer hard-ware and software, books and magazines, food andbeverages, health and personal care items, sportinggoods, music and videos, and office equipment andsupplies. Apart from retail goods, the major servicessold online include those related to computer systems,publishing, securities and commodity contract interme-diation/brokerage, and travel arrangement/reservation.In recent years, retail e-Commerce sales registered anannual growth of 25% compared with 4% for total re-

tail sales; however, it still is only a small fraction oftotal retail sales, at around 2% in 2004 [89.6]. Interest-ingly, two of the product lines projected to experiencethe highest market growth are cosmetics and pet sup-plies [89.5].

Based on Internet traffic rankings, the most popu-lar online shopping site is Amazon (Fig. 89.3) havinga global reach of around 1.8% of measured Internetusers [89.42]. With annual revenues of US$ 10.7 bil-lion in 2006, this Fortune 500 company lists thousandsof new and used items at its website, spanning the en-tire retail product spectrum. Apart from the wide arrayof products, Amazon incorporates a number of person-alization features such as one-click buying, customerand editorial product reviews, gift registries and cer-tificates, wish lists, and restaurant and movie listings.Other major online shopping sites include those of Tar-get, Wal-Mart, Best Buy, New Egg, and Tiger Direct.

What are the factors that influence the adoption ofonline shopping by consumers? Research has indicatedthat the design of the website in terms of navigation,convenience, usability, reliability, responsiveness, se-curity and privacy, as well as the quality of supportservices such as order fulfillment, help desks, and returnpolicies affect user adoption [89.33, 35]. The websiteshould be attractive and have a social presence throughrich descriptions and graphics, particularly in the caseof products having amusement value [89.43]. The useof virtual-reality technologies serves to minimize theproblems associated with the user being unable to touchand feel the product. This is particularly true in the caseof high-experiential products where customers need tolearn more about the product and experiment with it be-fore making the purchase [89.37]. Also, a badly styled,incomplete, and erroneous website results in a negativeimpression regarding the quality of an online store, andthe resulting lack of trust drives customers away fromthe store [89.39, 44].

Online stores that provide value-added mechanismssuch as search engines serve to enhance shopping enjoy-ment, particularly for customers who are not looking topurchase a specific product [89.28]. Positive recommen-dations from prior customers via a consumer-reputationfacility serve to reduce decision-making time and en-able customers to make better decisions [89.38]. Aboveall, the most important factor that could make or breakadoption of an online shopping site is customer percep-tion of trust in the online shopping merchant [89.35,39, 45]. As this aspect is relevant in all segments of

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Fig. 89.3 Amazon website

e-Commerce, we deal with it separately in a subsequentsection.

Online BankingOnline banking is one of the fastest growing In-ternet activities with about 43% of Internet users(63 million adults) banking online on a regular ba-sis [89.46]. It has been estimated that the averagetotal assets of an Internet-only bank is US$ 3.5 billioncompared with US$ 1 billion for all banks [89.47]. Cur-rently, online banking portals provide an array of ser-vices to customers including typical banking activitiessuch as transferring funds, advancing loans, orderingchecks, and downloading information about check-ing/savings, interest/dividends, loan payoffs/balances,and share/checking balances. Based on Internet trafficrankings, the most popular US banking site is that of theChase Bank (Fig. 89.4), having a global reach of around0.02% of measured Internet users [89.42]. Other majorplayers include Bank of America, Citibank, US Bank,and Wachovia Bank.

What are the important factors that influence cus-tomer adoption of online banking? These fall into

two broad categories: individual characteristics anduser perceptions of the online banking website. Inthe former category, factors include demographics re-lated to income, age, and gender, prior computerexperience, computer self-efficacy, technological back-ground, subjective norms, innovativeness, adaptability,and awareness of online banking benefits [89.29, 48,49]. In the latter category, factors include usefulness,enjoyment, usability, convenience, accessibility, andrelevance of the website [89.29, 50].

Although the size and growth of online banking hasbeen impressive, it has not outpaced the growth of theInternet or other e-Commerce activities due to the trustgap [89.46]. Despite the technical advancements thathave led to the safe and secure transmission of sen-sitive information, a sizable portion of Internet usersstill have reservations regarding the security and con-fidentiality of online banking transactions, and hencedo not trust online banking sites [89.30, 45]. The trustbarriers could be overcome by incorporating privacyand data protection technology into banking websitedesign, proper authentication of users, informing usersregarding secure online banking practices, and provid-

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Fig. 89.4 Chase Bank website

ing redressal mechanisms [89.29,30]. Indeed, trust is anissue that is of concern not only for online banking, butfor e-Commerce as a whole, and is dealt with in a sub-sequent section. See Chap. 91 for additional content onautomation in financial services.

Electronic LearningElectronic learning, or e-Learning, is one of the fastestgrowing segments in the B2C e-Commerce domain. Itprimarily consists of the delivery of educational con-tent to individuals or groups of learners via the Internetand WWW, as well as through organizational intranetsand extranets [89.51]. Perhaps the most pervasive formof e-Learning is distance education, wherein univer-sities provide online course content and teaching tostudents on a global basis. In addition, business orga-nizations use electronic learning for employee training,certification, and upgrading skills, so much so that thecorporate e-Learning market is estimated to be nearlyUS$ 10.6 billion in 2007 [89.52]. Currently, the ma-jor players include WebCT and Blackboard (Fig. 89.5),Desire2Learn, Dokeos, Skill Soft, Epic, and LearningSteps.

What factors influence the success of e-Learning?The e-Learning success model posits that the over-all success of an e-Learning initiative depends onattaining success at every one of three stages of e-Learning system development: design, delivery, andoutcome [89.53]. An empirical study supports themodel and finds that action research methodology canbe instrumental in promoting the development of suc-cessful e-Learning systems by iterating through cyclesof diagnosing, action planning, action taking, evaluat-ing, and reflecting.

Due to relatively little (or no) face-to-face interac-tions with an instructor, an electronic learning programmay not provide the same amount of instructor guid-ance as opposed to a conventional classroom teachingor employee training session. Given this, an importantfactor that can influence effective use of an electroniclearning program is self-regulation – the capability ofan individual to take charge of his/her learning path.Self-regulation requires time-management skills, self-motivation, an ability to set and meet performancegoals, and an ability to effectively organize, rehearse,and encode information [89.54–56].

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Fig. 89.5 Blackboard website

Apart from individual characteristics, technologicalfeatures of an e-Learning system, such as its qualityand reliability, availability, flexibility, convenience, andlevel of interactivity, can influence its adoption [89.57,58]. If a human instructor is part of an electronic learn-ing system, care must be taken to ensure that his/herpresence is felt frequently in the online environment,providing timely, detailed directions, and making extraefforts to reach out to and interact with users [89.57,59].Also recommended is matching the technology withthe nature of the course content, thus courses that needcreative thinking would be better served with technol-ogy having higher degrees of interactivity than coursesthat can be learned by rote [89.54]. See also Chap. 73,Automating Serious Games, and Chap. 85, Automationin Education/Learning Systems, for related content onelectronic learning.

89.3.2 B2B e-Commerce

With a value of US$ 1821 billion in 2004, the B2Be-Commerce market dwarfs the B2C segment. Itcomprises 93% of the e-Commerce market, and ap-

proximately 20% of the overall B2B market [89.6].Major areas of concentration include food, textiles,petroleum, chemicals, machinery, computers and elec-tronics, automotive, paper, and pharmaceuticals. Wenow discuss various B2B market mechanisms with thehelp of examples.

B2B transactions can be categorized based on theactual mechanisms that are required to execute thetransaction. These in turn can be categorized basedon connectivity and purpose. The former refers tothe number of players (i. e., buyers and suppliers) in-volved in a transaction, and the latter refers to theintention of the player initiating the B2B transac-tion [89.60]. The number of players involved in a B2Btransaction may be one-to-one, one-to-many, many-to-many, and any-to-any. The common example ofone-to-one is via an extranet, where a buyer interactswith a particular seller. An example of one-to-manyconnectivity would be an auction, where the sellerputs up a product for bidding, and potential buyersbid for the product until the final price is reached.A corollary of the one-to-many category would bethe many-to-one, or the reverse auction, wherein mul-

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Table 89.4 Cullen and Webster B2B e-Commerce model (after [89.60])

Category Connectivity Purpose Technology Interaction

Individual trading Open Selling WWW Direct

Collaboration Open Selling WWW Intermediary

Marketplace Open Selling/buying WWW Intermediary

Proprietary sales Restricted Selling/integrated Extranet Direct

Private exchange Restricted Integrated Extranet Intermediary

Aggregation Open Buying WWW Intermediary

Intranet/EDI Restricted Integrated Intranet/EDI Direct

Restricted bid Restricted Buying Extranet Direct

Reverse auction Open Buying WWW Direct

tiple sellers quote among themselves and the lowestquote is accepted. The many-to-many scenario in-volves multiple buyers and sellers, wherein each couldform alliances resulting in buyer and seller organiza-tions. They could interact through a neutral exchangeplatform provided by an intermediary where the re-quirements of the buyers and sellers could be matched.In the any-to-any scenario, there could be one or manysellers or buyers, an example being e-Hubs hostingelectronic marketplaces that facilitate interaction be-tween buyer(s) and seller(s) [89.60–62]. Connectivitymay also be viewed as open or restricted/closed. Opentransactions can be accessed by all players involvedwhereas restricted/closed transactions are limited tospecific players, generally those having membershipprivileges [89.60,61]. The purpose of engaging in a B2Btransaction may be for selling, buying, or integrated ex-change. The last includes multidimensional activitiessuch as exchange of commercial documentation or op-erational information.

The concept of connectivity and purpose can beextended to include aspects such as the facilitatingtechnology and the interaction type [89.60]. Examplesof facilitating technologies are the WWW, extranet,Intranet, and EDI. Interaction may be direct be-tween the buyer and the seller, or may involve anintermediary, wherein a third party mediates the trans-action. Based on connectivity, purpose, technology, andinteraction type, the Cullen and Webster model cate-gorizes e-Commerce transactions into nine operationalcategories: individual trading, collaboration, market-place, proprietary sales, private exchange, aggregation,intranet/EDI, restricted bid, and reverse auction (Ta-ble 89.4) [89.60].

Individual TradingThis type of transaction has open connectivity, involvesselling, uses the WWW, and is direct. The typical ex-ample is a single supplier selling to other businessorganizations. This model is very common in the main-tenance, repair, and operations (MRO) industry. Anexample is Grainger, which provides access to morethan 800 000 products from such categories as ad-hesives, fasteners, hardware, lighting, motors, powertransmission, and hydraulics [89.63].

CollaborationThis category is viewed as being open, involves sell-ing, uses the WWW, and involves an intermediary. Asopposed to individual trading, collaboration involvesmultiple organizations that converge onto a commonplatform run by an intermediary organization. Theseare common in the pharmaceutical, chemical, and mo-tor industries. For example, in February 2000, majorautomakers collaborated to create Covisint [89.64], toaddress escalating procurement costs and inefficien-cies within the industry. Covisint currently supportsover 30 000 organizations in the global automotive in-dustry spread across 96 countries and having over266 000 users. See Chap. 88 on Collaborative e-Work,e-Business, and e-Service for a more thorough collabo-ration discussion.

MarketplaceThe marketplace category is open, involves both sellingand buying, uses the WWW, and involves an intermedi-ary. The intermediary provides a common platform forbuyers and sellers to sell commodity and standardizedproducts. An example is ChemConnect [89.65] which

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provides a third-party commodity exchange platformfor the chemical industry [89.60].

Proprietary SalesThis category of B2B transactions tends to be restricted,involves selling and integrated exchange, uses an ex-tranet, and is direct without involving an intermediary.It mainly involves the sale of sensitive goods such asmilitary equipment, prescription medicines, firearms,and the like. To engage in a proprietary sales trans-action, the buyer or seller must posses some form ofmembership, certification, or clearance from a govern-ment agency. Cullen and Webster point to WolverineSupplies [89.66], which provides firearms to law en-forcement officers in Canada as representative of thiscategory.

Private ExchangeThis category is restricted, involves integrated ex-change, uses an extranet, and involves an intermediary.The typical example here is the case where a buyer orga-nization has long-term supply-chain relationships withsupplier organizations. Cullen and Webster cite the ex-ample of Elemica [89.67], which provides a platformfor a range of integrated supply-chain activities in thechemical industry.

AggregationThe aggregation category is open, involves buying, usesthe WWW, and involves an intermediary. Here, smallerbuyer organizations group together to negotiate witha seller organization so as to obtain economies of scalethat they would not otherwise have obtained. Power-spring [89.68], a third-party intermediary in the powerindustry that provides a platform for gas suppliers tobid competitively for aggregated power demand, is rep-resentative of this category [89.60].

Intranet/EDIThis category is restricted, involves exchange of tradinginformation, uses intranet/EDI, and is direct. Transac-tions are typically one-to-one between the buyer andseller, and are typically conducted by large organiza-tions having a number of repeat orders.

Restricted BidAs the name indicates, the restricted bid category is re-stricted, involves buying, uses the extranet, and is direct.Only a limited number of selected suppliers are allowedto bid for a product required by the buyer, resultingmainly in time savings. The National Health Services

in the UK uses this approach in procuring some of itssupplies [89.60].

Reverse AuctionThe reverse auction is open, involves buying, uses theWWW, and is direct. For example, XSAg [89.69] pro-vides a reverse auction in the agricultural chemicalindustry. The buyer lists the product requirements in-cluding the asking price and quantity on the XSAgwebsite, and potential sellers bid for the business.Suppliers that meet the asking price and other buyer re-quirements win the contract immediately upon bidding.The federal government also uses reverse auctions,through dozens of federal organizations such as theGeneral Services Administration, the Department ofHomeland Security, the Department of State, and theDepartment of Defense [89.70].

89.3.3 C2C e-Commerce

The consumer-to-consumer (C2C) e-Commerce mar-ket is dominated by online customer auctions, whereinauction providers act as intermediaries providing a com-mon platform for buyers and sellers to engage in theselling and purchase of retail goods. With US$ 15 bil-lion in sales in 2004 [89.71], the size of the C2Conline auction market is minuscule compared with theB2C and B2B markets; however it has spawned oneof the greatest success stories of e-Commerce: eBay(Fig. 89.6). Apart from eBay, the other major player inthis area is Ubid [89.72].

Auctions may be seller auctions or buyer auctions;in the former the seller initiates the transaction bylisting an item for sale, and in the latter the buyerinitiates the transaction by posting purchase require-ments [89.73]. Buyer auctions are more prevalent in theB2B market, whereas the seller auction dominates theC2C e-Commerce market. There are different auctionformats. In the most common type of auction (called anEnglish auction), buyers bid among themselves, and thewinning bid goes to the highest bidder. A variation tothis is the Dutch auction, where the seller starts off withan asking price, which is lowered until some participantis willing to accept the price [89.74]. This is commonlyused for selling multiple items. Variations to straight-forward auctioning could include a Buy it Now option,wherein the seller specifies a price at which a buyercould purchase the item and truncate the auction. Apartfrom facilitating auctions, such sites also allow cus-tomers to sell their items at a fixed price as well as toadvertise them. There might also be provisions for spe-

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Fig. 89.6 eBay website

cialized individual sellers to exhibit and accept bids fortheir range of products at their own storefronts [89.75].

What are the factors that influence sellers and buy-ers to take part in online auctions? The low cost ofentry and negligible transaction costs compared withother retail channels make online auctions very attrac-tive. More importantly, there is immediate access toa sizable customer base [89.76, 77]. On the part of thebuyer, factors such as ease of use and convenience of

using online auctions, as well as potential savings, at-tract users to online auctions. Apart from these, oneother interesting finding was that customers indulgein online auctions for hedonic benefits, such as thefun, entertainment, and emotional value derived frombidding processes [89.78]. The popularity, reputation,responsiveness, and integrity of online auction sites areimportant to buyers while choosing between online auc-tion platforms [89.31].

89.4 Emerging Trends in e-Commerce

Against this background of B2C, B2B, and C2Ce-Commerce markets, we now consider some emerg-ing e-Commerce applications: mobile commerce,telemedicine, and fee-based information delivery.

89.4.1 Mobile Commerce

One of the rising trends in the e-Commerce realm isthat of mobile commerce (m-Commerce) wherein e-Commerce activities that were hitherto conducted usingfixed-wire Internet are being facilitated by wireless In-ternet access using devices such as mobile phones,

laptop computers, and other portable electronic devices.The driving forces behind m-Commerce include theexplosive growth of the mobile phone population andthe development of more powerful, sophisticated, andsecure wireless technologies. The number of globalcellular subscribers is projected to reach 4 billion in2008 [89.79] and there are 262.7 million wirelessusers in the US, accounting for a penetration rateof 84% [89.80]. Although mobile shopping remainsthe major m-Commerce activity, other spheres includebanking, information delivery, marketing, and airlineticketing. In particular, mobile banking is witnessing

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tremendous growth and the number of mobile bankingcustomers in the US is expected to exceed 40 million by2012 [89.81].

Organizations tend to use m-Commerce in con-junction with their traditional fixed-wire Internet-basedoutlets so as to provide increased flexibility and con-venience for customers, and to cater to a younger andmore technology-savvy customer base [89.82]. Majorairlines such as American, Delta, and United providereservation services through mobile devices apart fromflight and weather-related information [89.83]. The suc-cess of m-Commerce depends on a variety of factors:an organization’s ability to integrate existing systemsinto a mobile environment, development and use of de-vices that are easy to use and similar to already existingdevices, value addition over and above that providedby traditional e-Commerce, and providing customerswith relevant, inexpensive, and context- and location-sensitive service [89.83].

89.4.2 Telemedicine: e-Health

The American Telemedicine Association defines tele-medicine as the use of medical information exchangedfrom one site to another via electronic communica-tions. Currently, about 2000 medical institutions aroundthe USA are connected through the Internet and otherhigh-speed transmission lines. Of the approximately200 telemedicine networks in the USA, more than halfprovide regular clinical services to patients, the oth-ers being used for research and education. Apart fromthe Internet, there are private networks linking hospi-tals, video systems for real-time patient consultation,and WWW-based patient service. Over 50 differentmedical specialties, including major ones such as car-diology, dermatology, ophthalmology, and pathologyactively use telemedicine in the diagnosis and treatmentof diseases [89.84].

Telemedicine facilitates the digital transmission ofpatient images (or teleradiology), wherein x-rays, com-puted tomography scans, magnetic resonance images,and digital images of pathology specimens can be sentworldwide for diagnosis and consultation [89.84, 85].Videoconferencing equipment at physician and patientsites facilitates real-time consultation, especially be-tween urban and rural locations. Using appropriateperipheral devices, it is possible for the physician to ex-amine internal organs and reach an accurate diagnosisand treatment plan, resulting in time and monetary sav-ings. Recent advances in this field include telesurgery,where a surgeon in one location can control a robot inanother location via communication networks [89.85].

89.4.3 Fee-Based Information Delivery

Fee-based information delivery services provide infor-mation to consumers for a payment. The informationmay be broad as in the case of New York Times provid-ing news analysis through New York Times Select, ormay be narrowly focused as in the case of Wall StreetJournal providing financial news, or eHarmony provid-ing potential partner information. Such services usedto be free, with their major revenue source being ad-vertising; however as this model became unsustainable,information service providers have shifted to a fee-based model. Most information delivery sites have freecontent and fee-based premium content.

What is it that motivates customers to pay for ma-terial that could perhaps be obtained through otherchannels? Research indicates that it is the perceivedbenefits in terms of money, time, decision-making, andlearning that attract users to fee-based information de-livery. Also, customers tend to choose services that theyperceive to be of high quality, are convenient, and pro-vides added value over information delivery throughalternative channels [89.32, 34].

89.5 Challenges and Emerging Issues in e-Commerce

The electronic commerce movement is still in its earlystages. The big outlines are apparent, but there are manyopportunities and challenges. Its future development de-pends on treatment of numerous issues. Examples ofthese include trust and legal issues.

89.5.1 Trust and e-Commerce

An important factor that influences B2C e-Commerceadoption is the user’s perception of whether the onlinemerchant or website can be trusted [89.45]. Recent sur-

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veys have indicated that less than one-half of Internetusers actually trust e-Commerce websites, with primaryconcerns involving the integrity and trustworthiness ofonline merchants, and the related issue of the safety andsecurity of online transactions [89.86, 87]. The result-ing trust gap is one of the primary reasons that couldimpede the growth of B2C e-Commerce [89.46].

What is meant by trust in B2C e-Commerce? Trusthas been conceptualized primarily across two dimen-sions: faith in humanity and vulnerability [89.45]. Thefaith in humanity conceptualization encompasses theimplicit faith that human beings have in the integrity,benevolence, and goodwill existing in the world aroundthem, and the belief that it extends to the e-Commerceworld. Thus, a user believes that he/she can rely ona promise made by the online merchant and, in caseof problems, it would act toward the user with hon-esty and benevolence [89.30, 88, 89]. The vulnerabilityconceptualization pertains to the readiness of users tobe vulnerable to the actions of the online merchant,wherein the user is fully aware that he/she might haveonly limited or no influence over the actions of the on-line merchant [89.45, 90, 91].

In order to enhance user trust in a website, mul-tiple techniques have been examined by researchers.Some of these are incorporated into website design,including website design factors such as the use ofthird-party assurance seals and certificates, hypertextlinks from reputed websites and associations, and theusability, usefulness, ease of use, and security controlof the interface [89.89, 90]. Using reliable and securetechnology and foregoing misleading language, images,and complex terminology serve to enhance user trustin a website [89.91, 92]. Another approach is educat-ing the user by publicizing privacy policies, listing datasecurity precautions incorporated into the website, andlaying out procedures regarding compensation, disputeresolution, and mediation [89.30, 93]. Also, displayingpositive user feedback from online user communitiesand providing fair and balanced information regard-ing similar offerings from competing merchants canserve to enhance user trust [89.94]. The perceived sizeand reputation of the online merchant and user famil-iarity and propensity to trust can also influence useradoption [89.88]. Other researchers have pointed outthe need for governmental laws and regulation andobtaining informed consent before using private userinformation [89.92, 95].

89.5.2 Legal Issues in e-Commerce

The e-Commerce market is global and constantly evolv-ing with new and innovative business models andproducts. As such, it is difficult to structure and en-force a uniform legal framework for conducting onlinebusiness transactions. Thus, care must be taken by bothbusinesses and consumers to ensure that either sideis knowledgeable about the purchase, payment pro-cessing, and delivery mechanisms – as well as issuesrelating to privacy and confidentiality. The best prac-tice would be to adapt the conventions followed intraditional brick-and-mortar sales to the online environ-ment [89.96].

It is recommended that the online business promi-nently display the sale terms using simple and clearlanguage. When a consumer purchases a product online,it is implicitly assumed that he or she has agreed to thecontract; however, it is a good practice to have the cus-tomer explicitly accept or reject the contract terms. Theterms of the contract should be consistent with productwarranty and liability information. In addition, purchaseeligibility criteria related to consumer age, geographicregion, and product type must be displayed on the web-site and enforced. These aspects might relate to localand state laws, in which case the website content mighthave be localized [89.96].

Policies relating to privacy and the use of per-sonal data, fraud, misrepresentation, and nonpaymentshould be prominently displayed on the website. En-cryption tools must ensure the security of transactionsand comply with governmental regulations. Care mustbe taken to ensure that there are no intellectual propertyviolations for products that are displayed for sale. Al-though not legally mandated for nonfederal websites, itis a good practice to ensure that the website meets orexceeds accessibility criteria [89.97].

89.5.3 Outlook

We have discussed the evolution e-Commerce, re-viewed its definitions, frameworks, and success pa-rameters, and examined in detail the three popularareas of e-Commerce. Given its growing importanceto consumers and businesses, as well as national andworld economies, it is gratifying to note that thereis a growing body of academic research address-ing unresolved issues of e-Commerce. However, it

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must be pointed out that the overwhelming majorityof research is being conducted in B2C e-Commerce,particularly in the online retail shopping segment.Considering the fact that the B2B e-Commerce mar-ket far exceeds the B2C market both in size andturnover, we suggest that researchers take a closerlook at issues relevant to B2B transactions. To en-sure that e-Commerce research remains relevant topractice, it is important that researchers examine the

new and innovative trends in e-Commerce, such ase-Health, m-Commerce (e.g., mobile banking), andc-Commerce. Further research needs to be done ontrust- and privacy-related issues as well as on es-tablishing a solid legal framework for conductinge-Commerce transactions. Beyond transactions, there isalso need for advances in the development and appli-cation of e-Commerce systems that support decision-making [89.98].

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