Page 106 - Introduction to Electronic Commerce and Social Commerce

3.8 Online Purchasing Decision Aids 85

content using the Internet as a medium of communication.” Legal Aspects
The communication can be done via texting in social net-
works, smartphones, tablets, etc. Social TV combines Online gambling is booming despite the fact that it is illegal in
broadcast television programs and user-generated content almost all U.S. states. In 2013, Delaware and Nevada were the
with rich social media. first U.S. states to allow some online gambling, followed by
New Jersey (in October 2013, Delaware became the first state
Characteristics of Social TV to allow a “full suite” of Internet gambling). In February 2014,
both Delaware and Nevada signed a deal to allow interstate
Social TV has several unique characteristics: online gambling. Delaware reported $1.8 million in state rev-
enue in 2015. Note that Federal Law limits online gambling to
players while they are physically within a given state. (This
• The possibility of discovering new video content can be verified by using geolocation software.) Therefore, if
and sharing this discovery with friends. one state allows online gambling, you can play only when you
• Most social TV activities are done in real time by are in that state. Online gambling is legal in other countries
watching content and commenting on it to others, (e.g., Australia). By 2015, at least seven U.S. states had pend-
even if the viewers are in different locations. ing legislation that would legalize online gambling.
• Social TV allows people to connect in a unique Source: Based on Zernike (2013), Fox News (2014), and
way, with other people who share the same Pempus (2016).
interests.

SECTION 3.7 REVIEW QUESTIONS

Social TV is attracting an ample number of viewers. (The
number of traditional television viewers is declining due to 1. Describe on-demand delivery services.
Internet viewing.) 2. Describe digital goods and their delivery process(es).
3. What are the benefits and limitations of digital delivery of
Adult Entertainment software, music, and so forth?
4. What are the major forms of online entertainment?
Online adult entertainment is probably the most profitable 5. Describe Internet TV, social TV, and Internet radio.
B2C model (usually with no or little advertisement; viewers 6. Describe Internet gambling and its challenges.
pay subscription fees) and it accounts for a large percentage
of Internet use. Adult content sites are popular because they
provide a large and vivid selection, low fees (even free), and 3.8 ONLINE PURCHASING
anonymity for those who watch. This popularity may cause DECISION AIDS
a problem for some companies. According to reports by
market research firms that monitor the industry, such as Many sites and tools are available to help consumers with
Forrester Research, IDC, Datamonitor, Mediabistro Inc., online purchasing decisions. Some sites offer price compari-
and Nielsen, viewers are willing to pay substantial fees to sons as their primary tool (e.g., pricerunner.co.uk and
view adult sites. shopzilla.com); others evaluate services, trust, quality, and
other factors. Shopping portals, shopping robots (“shop-
Internet Gaming bots”), business ratings sites, trust verification sites, friends’
advice in social networks, and other shopping aids are also
Internet gaming comprises all forms of gaming such as available. The major types are discussed next.
arcade gaming, lotteries, casino gaming, and promotional
incentives. Between 2008 and 2016, online gambling reve-
nue continued to increase despite the bad economy. The Shopping Portals
global online gambling industry grew 8% during 2013 to
reach $35.5 billion. According to Statistica.com (2016), the Shopping portals are gateways to webstores and e-malls.
online gaming market will reach almost $56.1 billion in Specifically, they host many online stores simultaneously.
2018. The ease of access and use of broadband services Like any other portal, they can be comprehensive or niche-
throughout the world in recent years has been vital to the oriented. Comprehensive, or general-purpose, portals have
expansion of online gaming. links to many different sellers, and present and evaluate a