E-Commerce

A. What kind of e-Commerce are used?

Samsung Corporation is a Business to Business (B2B) e-Commerce. “The Business to Business occurs when a business sells products and services to customers who are primarily other businesses.” Samsung has a relationship with several corporations such as Best Buy, Target, and Radio Shack etc. Samsung is actually looking to expand their e-commerce sector to raise the profile of the Samsung products. Samsung doesn’t have a variety of individual stores to visit therefore; their products are spread throughout other stores. For an example Target purchases products such as TVs, Printers, DVD Players, and Cell Phones directly from Samsung to sell in the Target stores.

B. What types of internet business models are used?

Our corporation uses a mass customization business model. The Samsung website gives customers the advantage to pick and choose from a variety of models that are provided by this company. The most commonly known business that works with mass customization is www.dell.com. This company lets customers customize their computer the way that they want it. However, Samsung gives you a variety of products to choose from there is no doubt that you would not be able to find something that best fits you.

C. What type of marketing mix does it adopt?

Samsung marketing mix consists of search engines, online ads, and affiliate programs. Most consumers use search engines when looking for certain products. When you search for a TV or camera, Samsung pays to be displayed in the top 3 company results from their search. Samsung also uses affiliate programs such as Amazon. When you visit Samsung.com and search for a product, they offer a service that will tell you where you can purchase the product whether online or in store. Amazon is one of the online vendors listed. Samsung works as an affiliate program. An affiliate program is an arrangement made between two e-commerce sites that will direct viewers from one site to another. On the Samsung website it allows you to view their products and then it sends you to another website where the product is near you. This cuts out customers visiting and calling multiple stores in hope to find the correct product the customer is looking for.

D. What payments systems are used?

Since you cannot buy products directly off of the Samsung website, the payment system depends on how you purchase the product. If the customer decides to purchase the item online than a Smart Card can be used. A smart card is referred to as a Credit or Debit card or Electronic checks where available funds are removed directly from checking or savings accounts. Some online retailers also accept Financial Cybermediary. A great example of Financial Cybermediary is PayPal. Using PayPal an account is created by a customer and the account is used to purchase the products that the customer is looking to purchase by taking funds directly out of their checking or savings account. Samsung does not expect payments on their website, instead it directs you to an online vendor, or gives you the location of a store nearest you to pick up the item.