#1 Introduction to E-Com

Question 1

Electronic Commerce Refers to

Answer 1

business activities conducted using electronic data transmission via the Internet and the World Wide Web

Question 2

Main Elements of E-commerce

Answer 2

Business-to-business (B2B)
Business-to-consumer (B2C)
Business-to-employee (B2E)

Question 3

Business-to-business (B2B)

Answer 3

Businesses make online transactions purchases with other businesses

Question 4

Business-to-consumer (B2C)

Answer 4

Online transactions between businesses and consumers

Question 5

Business-to-employee (B2E)

Answer 5

Information and services made available to employees online

Question 6

Value Added Network (VAN)

Answer 6

independent firm that offers connection and EDI transaction forwarding services to buyers and sellers engaged in EDI

responsible for ensuring the security of transmitted data.

fixed monthly fee plus a per-transaction charge to
subscribers

Question 7

Electronic Data Interchange (EDI)

Answer 7

one business transmits computer-readable data
in a standard format to another business

Question 8

Commodity item

Answer 8

product or service that is hard to distinguish from the same products or
services provided by other sellers, making them especially well suited to electronic commerce.

Question 9

Shipping profile

Answer 9

collection of attributes that affect how easily a product can be packaged and delivered

Question 10

Advantages of Electronic Commerce

Answer 10

• can increase sales and decrease costs
• reaches a large amount of potential customers throughout the world
• Web creates virtual communities for specific products or services
• reduce its cost in its sales support and order-
  taking processes
• increases sale opportunities for the seller
• increases purchasing opportunities for the buyer
  *

Question 11

Disadvantages of Electronic Commerce

Answer 11

• Some business processes are difficult to be implemented
• Return-on-investment (ROI) is difficult to apply
• cultural and legal obstacle

Question 12

Transaction costs

Answer 12

total of all costs that a buyer and a seller incur as they gather information and negotiate a purchase-sale transaction

Question 13

Network Effects

Answer 13

As more people or organizations participate in a network, the value of the network to each
participant increases

Question 14

Value Chains

Answer 14

organizing the activities that each strategic business unit
undertakes to design, produce, promote, market, deliver, and support the products or services it
sells

Question 15

Industry Value Chains

Answer 15

identify opportunities for cost reduction, product improvement, or channel reconfiguration