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Understand how broker-based services are performed online. Describe online travel tourism services and their benefits. | Chapter 5 EC in Service Industries Learning Objectives Understand how broker-based services are performed online Describe online travel tourism services and their benefits Discuss the impact of EC on the travel industry Describe the online job market, its drivers and benefits Describe the electronic real estate market Understand how stock trading is done online and its benefits Discuss cyberbanking, its drivers and capabilities Discuss implementation issues of online financial services and its future Describe electronic auctions, their benefits, implementation, and impacts Describe some innovative applications in the service industries Discuss the future of intermediaries and their role in cyberspace Learning Objectives (cont.) Opening Vignette: Ordering Journals Electronically How a large university automated the purchasing of magazines and journals, saving $365,000/year Direct Marketing: Buyer-to-seller; orders and payments Market maker charges $5/transaction Vs. about $40 . | Chapter 5 EC in Service Industries Learning Objectives Understand how broker-based services are performed online Describe online travel tourism services and their benefits Discuss the impact of EC on the travel industry Describe the online job market, its drivers and benefits Describe the electronic real estate market Understand how stock trading is done online and its benefits Discuss cyberbanking, its drivers and capabilities Discuss implementation issues of online financial services and its future Describe electronic auctions, their benefits, implementation, and impacts Describe some innovative applications in the service industries Discuss the future of intermediaries and their role in cyberspace Learning Objectives (cont.) Opening Vignette: Ordering Journals Electronically How a large university automated the purchasing of magazines and journals, saving $365,000/year Direct Marketing: Buyer-to-seller; orders and payments Market maker charges $5/transaction Vs. about $40 (conventional agents) Ordering time reduced by up to 80% Electronic Commerce in Magazine Ordering Opening Vignette: Ordering Journals Electronically (cont.) Publisher Publisher’s Bank University of California Electronic Catalogs Buyer’s Bank BANC ONE OM Transact BANC ONE Automated Clearing House (ACH) Rowe. Com’s Account Rowe.Com System EDI Order + Payment EDI, Internet Order Browsing EDI Payments Fee $5 Fee Payment Buyer Seller Intermediary Broker-Based Services Brokers work as intermediaries between buyers and sellers Agents basically make the markets Agents provide many services Most of the value-added tasks of brokers can be automated Major electronic agent-based services travel employment real estate stocks electronic auctions at-home banking insurance Service Industries Vs. Manufacturing and Product’s Retailing Broker-Based Services (cont.) Service Industries pure EC substantially reduced cost bank and brokerage houses possible digitization of the entire process travel and real
