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Lesson 2Conducting business using the Internet
Objective Define types of Internet business models.

Conducting Business using the Internet

E-commerce is changing the nature of business by altering how companies transact with consumers and other businesses. As online commerce evolves, new types of e-commerce sites emerge to facilitate transactions in the business-to-business, business-to-consumer, and consumer-to-consumer environments. Various functional designs, or models, of Internet businesses have grown out of these new environments, from the simple to the complex. These types of models form the building blocks of e-commerce sites. The SlideShow below will show you the most common types of Internet business models.

  1. Marketing brochure model is simply a corporate marketing brochure with little or no customer interaction.
  2. Community model relies heavily on user loyalty and input to generate content.
  3. The ancillary transaction channel model allows users to conduct common transactions online, such as making airline reservations and ticketing.
  4. The ancillary sales channel model draws sales using its online product catalog. The business uses the Web as a secondary sales source to its brick-and-mortar store
  5. The customer relationship management model allows all customer support activities to occur through the web.
  6. The auction model serves as an intermediary between busines-to-business and customer-to-customer transactions
  7. The metamediary model offers a virtual mall of related goods and services that bring together buyers and sellers.

Internet Business Model Types
  1. What effect is the Internet having on brick-and-mortar companies?
  2. Has it increased or decreased the number of employees?
  3. How has the Internet affected business functions and job responsibilities?
In the next lesson, you will learn about the characteristics of business-to-business sites.

Conducting Internet Business - Exercise

Click the Exercise link below to practice identifying types of Internet business models.
Conducting Internet Business - Exercise