Typical EC Business Models (2)

4. Viral marketing. According to the viral marketing model , people use e-mail and social networks to spread word-of-mouth advertising. It is basically Web-based word-of-mouth advertising, and is popular in social networks.

5. Group purchasing. Group purchasing is a well-known offline method, both in B2C and B2B. It is based on the concept of quantity discounts (“cheaper by the dozen”). The Internet model allows individuals to get together, so they can gain the large-quantity advantage. This model was not popular in B2C until 2010 when Groupon introduced a modified model in which people are grouped around special deals. Note that a company may use several EC models as demonstrated in Starbucks opening case, the NFL closing case, and Dell case

Source:

Efraim Turban, David King, Jae Kyu Lee, Ting-Peng Liang, Deborrah C. Turban (2015), Electronic Commerce A Managerial and Social Networks Perspective