Legal, Ethical and Regulatory Issues in E-Business

Topics: Marketing, Privacy, Law Pages: 6 (1980 words) Published: August 24, 2010

Legal, Ethical and Regulatory Issues in E-Business
Jim Long
University of Phoenix
EBUS 400
Dr. Brian Shaw
January 07, 2008

Legal, Ethical and Regulatory Issues in E-Business
When starting any type of business, there are several issues that a new businessperson must pay attention to if he or she hopes to make their new business a successful one. This is even truer if the business being started happens to be an e-business. The businessperson must decide how to market this new business venture paying close attention to any aspects that are different to a “brick and mortar” venture. The new businessperson must also careful review any issues that might arise whether they are legal, regulatory or ethical in this new e-business venture. In this paper, we will look at the above issues and how they can be handled in the e-business world. We will first look at marketing and show that there are many similarities between marketing an e-business and a “brick and mortar” storefront. We will also look at some legal, ethical and regulatory issues that will arise when operating in the e-business world and discuss the challenges that they can provide any business owner. Brick and Mortar Marketing vs. E-Business Marketing

While “brick and mortar” and e-business based business can be vastly different, on closer inspection one will see that both types of businesses can use the same marketing concepts and be successful. Before one can discuss these two differing types of businesses effectively, one should know exactly what is meant by these two terms. A brick and mortar business is a business “that that deals with its customers face to face in an office or store that the business owns or rents” (Investopedia, n.d., para. 1). An e-business is a business that includes “not only the use of the Internet but also related technology for communication and information processing” (Supply Chain Management Review, 2006, para. 2). So how can these two businesses that have such different methods of customer interaction share methods of marketing? To start with, the basics for both types of businesses are the same and the “4 Ps” of marketing, product, price, promotion, and place (Schneider, 2004, p. 155) apply in full to both types of businesses. No matter what the business, it needs to define what it is selling, designate a price for that product or service, decide how the consumers will hear of the product and decide where the product can and will be purchased. With the exception of place, both types of businesses share the other three “Ps” of the marketing mix equally. Another marketing similarity that both businesses share is the need to identify their market segment or segments. Market segmentation is the process businesses use to “identify specific portions of their markets and target them with specific advertising messages” (Schneider, 2004, p. 161). Whether a person’s business is on the corner or on the World Wide Web, that person needs to identify their target market to ensure their product reaches the customer it was intended for. Once the segment has been determined, the businessperson must determine how they are going to influence that person to purchase the product whether it is online or in a store. There are many ways this can be done and both types of businesses can use the same things to influence their segment’s behavior. E-business operators are “just as likely to try to influence consumers’ shopping behaviour, through atmospherics and service, as brick and mortar stores” (Ya & Perks, 2005, p. 438). The more this is studied the more we come to realize that even though the methods of delivery of the product or service might differ, both e-businesses and brick and mortar businesses use many of the same marketing techniques to find their target customers and to let those target customers know that the business...

References: Investopedia (n.d.). Brick and Mortar. Retrieved January 6, 2007, from
O 'Rourke, M. (2007, December). I Fought the Law and the Law Won. Risk Management, 54, p. 10. Retrieved January 6, 2008, from EBSCOHost
Ragothaman, S., Davies, T., & Dykstra, D. (2000). Legal aspects of electronic commerce and their implications for the accounting profession.. Human Systems Management, 19, p. 245. Retrieved January 6, 2007, from EBSCOHost
Schneider, G. (2004). Electronic Commerce: The Second Wave. : Course Technology.
Seely, J. (2002, January 11). The importance of privacy in the e-business economy. Fort Worth Business Press, 15, p. 20. Retrieved January 6, 2008, from EBSCOHost
Supply Chain Management Review (2006, Jan/Feb). E Business Evangelist. Supply Chain Management Review, 10, p. 48-53. Retrieved January 6, 2008, from EBSCOHost
Ya, H., & Perks, H. (2005, Dec). Effects of consumer perceptions of brand experience on the web: Brand familiarity, satisfaction and brand trust... Journal of Consumer Behaviour, 4, p. 438-452. Retrieved January 6, 2008, from EBSCOHost
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