04022025_E-Commerce-Class Flashcards
What is E-Commerce?
E-Commerce refers to buying and selling goods or services using the internet.
It expands market access and enhances customer interactions.
What are the core components of E-Commerce?
E-Commerce consists of:
* Online transactions
* Digital marketing
* Automated payment systems
* Customer engagement tools
It’s a blend of technology, innovation, and business strategies.
What is the difference between E-Commerce and E-Business?
E-Commerce specifically deals with transactions, while E-Business encompasses aspects, including internal processes.
E-Business focuses on using digital tools to enhance transactions and processes within a company.
What does traditional retail include?
Traditional retail includes:
* In-store purchases
* Point-of-sale transactions
* Physical customer interactions
It provides experiential shopping and personal engagement.
What role does the internet play in E-Commerce?
The internet enables connectivity and communication between consumers and businesses across the globe.
What is the World Wide Web?
The World Wide Web (WWW) is the information system that provides easy access to information on a wide range of topics.
What are mobile platforms in E-Commerce?
Mobile platforms facilitate shopping on-the-go through:
* Smartphones
* Tablets
* Ultra-lightweight laptops
True or False: E-Commerce includes transactions that occur within a firm.
False
E-Commerce involves transactions that cross firm boundaries.
What are some major advantages of being a first mover in E-Commerce?
Major advantages include:
* Ability to build a brand name early
* Establishing a large customer base before competitors enter the market
* Building switching costs into technology or services
What is Business-to-Consumer (B2C) E-Commerce?
B2C E-Commerce involves businesses selling directly to consumers, characterized by user-friendly interfaces and streamlined payment processes.
List the diverse models of E-Commerce.
E-Commerce is categorized into:
* Business-to-Consumer (B2C)
* Business-to-Business (B2B)
* Consumer-to-Consumer (C2C)
* Mobile E-Commerce (M-Commerce)
* Social E-Commerce
* Local E-Commerce
What is the revenue of B2B E-Commerce?
B2B E-Commerce revenue is 8.5 trillion USD.
What is the primary value proposition of a transaction broker in B2C models?
The primary value proposition is saving time and money.
Fill in the blank: E-Commerce often offers _______.
[lower prices, wider selection, convenience]
What are some examples of community providers in B2C E-Commerce?
Examples include:
* Facebook
* TikTok
* LinkedIn
* Twitter
* Pinterest
What are the revenue models for content providers in B2C E-Commerce?
Revenue models include:
* Advertising
* Subscription
* Sales of digital goods
What is the description of a market creator in B2C models?
Market creators create a digital environment where buyers and sellers can meet and transact.
What are the revenue models for service providers in B2C E-Commerce?
Revenue models include:
* Sales of services
* Subscription fees
* Advertising
* Sales of marketing data
What is the primary focus of B2B E-Commerce?
Transactions between businesses, often involving bulk transactions and supply chain efficiencies
B2B E-Commerce aims to reduce costs through technology.
Name a type of B2C business model and provide an example of a company.
E-Tailer, e.g., Amazon
E-Tailers primarily sell goods and services online.
What are the major types of revenue models in E-Commerce?
- Advertising revenue model
- Subscription revenue model
- Freemium strategy
- Transaction fee revenue model
- Sales revenue model
- Affiliate revenue model
Each model defines a different approach to generating income.
What does the value proposition in an E-Commerce business model address?
Why customers should buy from you and how your product solves customer issues
It enhances customer loyalty by aligning offerings with market demands.
What is the revenue model in E-Commerce?
It outlines how a business earns money, including income streams and pricing strategies
The revenue model is crucial for assessing potential profitability.
What are the three most common types of E-Commerce?
- B2C (business-to-consumer)
- B2B (business-to-business)
- C2C (consumer-to-consumer)
Each type serves different market dynamics and consumer interactions.
What is Social E-Commerce?
Shopping via social media platforms where user-generated content influences purchases
Examples include shoppable ads on Facebook and Instagram.
What is the definition of Mobile E-Commerce (M-Commerce)?
Shopping on mobile devices such as smartphones and tablets
M-Commerce is reshaping consumer habits for on-the-go purchasing.
What does local E-Commerce focus on?
Selling products and services within a specific geographic area
Companies like Uber and Airbnb are examples of local E-Commerce.
What is the competitive environment in an E-Commerce business model?
The analysis of direct and indirect competitors, market saturation, and industry dynamics
This understanding helps in strategizing market entry.
What does competitive advantage refer to in E-Commerce?
Unique attributes that set a business apart, such as technology or service quality
Competitive advantage can include first-mover advantage or complementary resources.
Fill in the blank: A business model is a set of planned activities designed to result in a _______.
profit in the marketplace
A business plan outlines the details of this model.
What is the role of the management team in an E-Commerce business?
To navigate challenges and drive organizational success
A strong team enhances credibility with investors and provides market-specific knowledge.
What is the significance of market strategy in an E-Commerce business model?
It details how a company intends to promote its products or services to attract customers
Effective market strategy is essential for business success.
What is an example of a B2B E-Commerce model?
E-Distributors, e.g., Amazon Business
E-Distributors focus on selling goods to businesses.
What do e-procurement companies do in the context of B2B E-Commerce?
Create digital markets for participants to transact for indirect goods
These companies often provide supply-chain management and fulfillment services.
What is the impact of the COVID-19 pandemic on E-Commerce?
Significant growth and changes in consumer behavior, with increased online shopping for essentials and non-essentials
The pandemic accelerated the adoption of digital technologies in E-Commerce.
What is the market strategy used by firms?
The firm will use to promote its products and services
What is organizational development in a firm?
Development that will enable it to carry out its business plan
What are the capabilities of the management team?
To guide the firm in its endeavors
What are the five primary revenue models used by e-commerce firms?
- Advertising revenue model
- Subscription revenue model
- Transaction fee revenue model
- Sales revenue model
- Affiliate revenue model
True or False: E-commerce can enable new crimes.
True
What are the four major categories of issues in e-commerce?
- Information rights
- Property rights
- Governance
- Public safety and welfare
What laws must e-commerce businesses comply with to protect consumer data?
Data privacy laws like GDPR and CCPA
Define Personally Identifiable Information (PII).
Any data that can be used to identify, locate, or contact an individual
Fill in the blank: Anonymous information is data that does not identify a person by _______.
name
What types of personal information are commonly collected?
- Name
- Address
- Phone
- Social security number
- Bank and credit card accounts
- Gender
- Age
- Occupation
- Location
- Location history
- Photograph
- Education
- Likes
- Preference data
- Transaction data
- Clickstream data
- Device used for access
- Browser type
What is profiling in e-commerce?
Creation of data images that characterize online individual and group behavior
What does cross-device tracking involve?
Tracking user behavior across multiple devices
What is the General Data Protection Regulation (GDPR)?
Regulation that protects a variety of PII and strengthens citizens’ rights to their own personal data
List some solutions for privacy protection in e-commerce.
- Apple Intelligent Tracking Protection
- Google Privacy Sandbox
- Apple App Tracking Transparency
- Differential privacy software
- Privacy default browsers
- Message encryption
- Spyware and ad blockers
- Secure email and anonymous remailers
- Cookie blockers and managers
- Public key encryption
What is the main goal of intellectual property law?
Balance two competing interests - public and private
What are the main types of intellectual property protection?
- Copyright
- Patent
- Trademark law
- Trade secrets law
True or False: The environment has turned against Big Tech firms for unfettered collection of personal data.
True
What concerns are raised about antitrust in e-commerce?
Some firms have become too powerful and restrict competition
What is the criticism against Big Tech firms?
They are buying out smaller innovative firms and engaging in restraint of trade
