Ch 10 Questions Flashcards
What is e-commerce?
The process of buying and selling goods and services electronically involving transactions using the Internet, such as orders, shipment instructions, or payments
What is information asymmetry?
Relative bargaining power of two parties in a transaction is determined by one party that has more information essential to the transaction than the other party
Less common because of the Internet and reviews
What is disintermediation?
The removal of organizations or business process layers responsible for certain intermediary steps in a value chain
All the middlemen in transaction in sales - can purchase directly from manufacturers
Need for Internet lessens
What are menu costs?
Merchants’ costs of changing prices
E-commerce lowers the menu costs
Easy to see who changes what
What is behavioral targeting?
Tracking the click-streams (history of clicking behavior) of individuals across multiple websites for the purpose of understanding their interests and intentions, and exposing them to advertisements which are uniquely suited to their interests
No random ads, cookies, someone is targeting you specifically for something you are interested in
Who would you go to, to build a product, post your website, and advertise?
Go to Alibaba
Sell through Amazon
Website through Square Space, GoDaddy, etc.
Advertise through Facebook, Google, LinkedIn, etc.
What is business-to-business (B2B) electronic commerce?
Electronic sales of goods and services among businesses
Ex. Elemica’s website for buying and selling chemicals and energy
***Most common
What is business-to-consumer (B2C) electronic commerce?
Electronic retailing of products and services directly to individual consumers
Ex. iTunes, Amazon, Walmart, Barnes and Noble
What is consumer-to-consumer (C2C) electronic commerce?
Consumers selling goods and services electronically to other customers
Ex. eBay
What is dynamic pricing?
The price of a product varies depending on the demand characteristics of the customer or the supply situation of the seller
How did e-commerce start?
First e-commerce transaction – started installing Netscape browsers on all computers, network cards into computers, etc.
Netscape was what everyone was using
Netscape sold part of their webpage for a price – that was the FIRST e-commerce transaction
How does society adopt any kind of technology?
Any adoption of a technology - Falls along the same kind of path
Time vs Quantity (dollars spent or number of units sold)
All technologies start of with a slow adoption
What happens is once the technology comes approved and more people start using it – then everyone starts to adopt it
Then it gets to a point and level off
Do you need an understanding of technology to open your own business?
Not anymore
Now it is all about the business user
It has been commoditized and is available for a low price – web hosting, ordering goods, domain names, etc.
What is the most important task once you open a store?
Selling – being able to sell the product or service
Focus on operations – do NOT do anything unless selling products
Use technology to give you an advantage
Very difficult to make a business successful unless focusing on sales
