Handbook of Information Security, Volume 1, Key Concepts, Infrastructure, Standards, and Protocols

Electronic Commerce¹

Charles Steinfield, Michigan State University

Introduction

Chapter Overview and Themes

Defining E-Commerce

A Brief History of E-Commerce

Internet Business Models

Marketing Strategies Found in E-Commerce

Consumers in E-Commerce

Information Security and Online Payment in E-Commerce

Encryption Methods in E-Commerce

E-Commerce Payment Methods

Emerging Technologies

Barriers to E-Commerce Development

The Economic and Competitive Impacts of E-Commerce

Competitive Advantage and E-Business

E-Commerce and Transaction Costs

Market Structure and Buyer-Seller Relations

Intermediation and E-Commerce

Pricing and E-Commerce

Conclusions

Glossary

Cross References

References

INTRODUCTION

The term electronic commerce came into widespread usage after the first graphical Web browser, Mosaic, was developed in 1993 and freely distributed around the world. Drawn by the browser's ease of use, millions of home consumers, businesses, and educators connected to the Internet, creating the conditions for Internet-based commerce. Indeed, Nielsen//Netratings estimates that there were over 200 million Americans, and more than 450 million people worldwide, who had access to the Internet from home in August 2004 (this number rises if we also include those who access the Internet from work or other public settings; see http://www.nielsen-netratings.com for the latest monthly estimates). Businesses, often backed by venture capital from investors enamored with the new opportunities created by Internet-based ...