E-COMMERCE

Lecturer: Msc. Phan Tran Duc Lien

4 Mobile Commerce
Learning objectives:
1. Explain the concept of mobile commerce;
2. Describe the wireless technology that supports mobile commerce;
3. Explain the major types of wireless telecommunications networks;
4. Discuss mobile commerce applications in various areas; and
5. Discuss security and ethical issues in mobile commerce.
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Mobile commerce (m-commerce)
An extension of e-commerce, involves any business
activities conducted over a wireless telecommunications
network.
M – Commerce Applications
1. Mobile Financial Applications
▸ Allow users to conduct financial transactions via mobile devices anytime and
anywhere, replacing the ATM, credit card and bank.
▸ Common applications: mobile banking and mobile payment.
▸ Banking institutions are offering customers mobile access to financial and accounting
information in addition to Internet banking.
▸ Ex: access account balances, transfer funds and pay bills.
M – Commerce Applications
2. Mobile Shopping, Advertising and Convert Provision
▸ Online vendors allow customers to shop from mobile devices.
▹ Ex: The Coffee House, Hindlands, Pizaa Hut, Mc Donals, eBay, Amazon…

▸ Mobile advertising: is growing fast as a marketing tool.

▹ Receptive towards personalized and innovative messages.

▸ Mobile portal: a customer access and interaction channel, optimized for mobility
which aggregates and provides content and services.
M – Commerce Applications
2. Mobile Shopping, Advertising and Convert Provision
▸ Example Mobile portal: allows passengers the following privileges:
▹ Book and pay for flights with credit cards;
▹ Share the itinerary on social media;
▹ Check-in with one click access;
▹ Choose a preferred seat;
▹ Get a mobile boarding pass;
▹ Check real-time flight status and latest arrival/departure times;
▹ View upcoming and previous trips;
▹ Instant access to Enrich loyalty card details;
▹ Check for lost baggage status;
▹ Find contacts of MAS offices and the way to get there with Google maps;
▹ Enjoy exclusive mobile deals.
M – Commerce Applications
3. Mobile Entertainment
▸ Music and Video
▹ Users may download music and videos to mobile devices.
▹ Ex: Apple iTunes, Microsoft Zune, Spotify Music, YouTube Music, Google Play Music, Tidal, SoundCloud, Amazon
MP3.

▸ Mobile Games
▹ One of the largest mobile applications.
▹ In 2019, 33% of all app downloads, 2.4 billion people playing mobile games.
▸ Mobile Sports
▹ Keep up date information about the performance of favorite athletes or teams, sports scores, statistics and
current news.
▹ Allows customers to create own profile, buy online tickets, integrate with the social media, interact with the
athletes, teams and access live streaming of sports channels.
▹ Ex: ESPN, THUUZ Sports, theScore.
M – Commerce Applications
4. Location-based M-commerce
▸ Location-based m-commerce (l-commerce): use GPS-enabled devices or similar
technologies to locate a customer and deliver products and services based on the
customer’s location.
▸ Benefits merchants and customers:
▹ Safety (identification of exact location during emergency);
▹ Convenience (ability to locate nearby desired destination for products and services);
▹ Productivity (time optimization within close proximity).
M – Commerce Applications
4. Location-based M-commerce
▸ Five key factors :
▹ Location: Determine a position of a person or object (car).
▹ Navigation: Plot a route from one location to another.
▹ Tracking: Monitor the movement of a person or object.
▹ Mapping: Create maps of specific geographical location.
▹ Timing: Specify the precise time at an exact location.
M – Commerce Applications
4. Location-based M-commerce
▸ Technologies :
▹ Global Positioning System (GPS): a system based on worldwide satellite-based tracking system that enables
users to determine the exact position of an object anywhere on earth.
▹ Geographical Information System (GIS): a computer system capable of integrating, storing, editing, analyzing,
sharing and displaying geographically referenced (spatial) information. Can integrate GPS data into digitized
map displays.
Mobile Enterprises
▸ Sales Force Mobilization and Automation
▹ Mobile devices such as laptops and personal digital assistant (PDA):
 Demonstrate new products, check inventory and maintain good relationship with the customers;
 New product launches, product information, pricing updates, order status, inventory level and delivery
schedule.
 Orders recorded in real time, benefits for business operation, delivery scheduling and reduce data entry
errors.

▹ Job Dispatch:
 Mobile devices can assist in assigning jobs to mobile employees (involved in delivery and dispatch services
such as transportation, utilities, field services, healthcare and security) and provide them with detailed
information about their task.
 Ex: ShoppeFood, Grab Food…
Security and Ethical Issues in M-commerce
▸ Malicious attacks:
▹ Data leakage;
▹ Unsecured Wi-Fi;
▹ Network spoofing;
▹ Phishing attack,
▹ Spyware;
▹ Broken cryptography;
▹ Improper session handling.

▸ Security threats.
▹ Lost and stolen device: the data stored and device settings.
Security and Ethical Issues in M-commerce
▸ Security measures for m-commerce:
▹ SIM-based authentication for mobile phone;
▹ Wireless tether to prevent the theft of mobile devices; and
▹ Built-in Wi-Fi security system known as wired equivalent privacy (WEP). Security threats.

▸ Technological barriers :
▹ The small size of mobile devices: limited usability in terms of data- input screen, storage capacity and access
speed;
▹ Mobile service operators: unable to provide the transmission bandwidth and stability of services as
promised;
▹ Operators even turn offline soon after it was launched: affected the users who have signed up for services.
Security and Ethical Issues in M-commerce
Mobile Entertainment
▸ Entertainment products and/or services that are available on wirelessly networked
portable personal devices.
▸ Includes: games, images, ring tones, music, movie clips, gambling, personality tests
and radio or MP3 players.
▸ Mobile communications: person- to-person calls, text messages, voicemails, m-
commerce applications
▸ The most popular mobile entertainment apps :
▹ YouTube;
▹ Netflix;
▹ HBO Now;
▹ Spotify.
THANK YOU!

Any questions?