Chap 2 Flashcards
What is the environment in which a business functions?
The overall context or ‘outside world’ in which the business functions, involving global economics and industry developments.
What are some examples of how the Internet can benefit the environment?
- Paperless transactions
- Online newspapers and magazines
- Paperless billing
- Online advertising
- Online phone books
- Email communication
- eBooks
- Electronic documents
What major issue do companies face in the digital environment?
The constant need for adaptation to changes and acceleration of technology and services.
List the factors affecting Technology Adoption according to Rogers (2013).
- Flexibility
- Observability
- Relative Advantage
- Trialability
- Compatibility
How are ethics and laws related in a business context?
Ethical standards are personal or business practices generally considered acceptable by society, while laws are formal regulations that govern behavior.
Define privacy in the context of internet marketing.
A moral right of individuals to avoid intrusion into their personal affairs.
What is identity theft?
The misappropriation of the identity of another person, without their knowledge or consent.
What are some political factors that can affect businesses?
- Political stability
- Political changes (democratic vs. non-democratic)
- Extreme Nationalism/Ethnocentrism
- Political ideology
- Foreign trade policy
- Taxation policy
What is the macro environment?
Also known as ‘the remote environment’, it affects all organizations in the marketplace.
What are some social barriers to internet adoption?
- No perceived benefit
- Lack of trust
- Security problems
- Lack of skills
- Cost
What is the micro environment in a business context?
Also known as ‘the operating environment’, it includes specific forces generated by stakeholders like customers, suppliers, and competitors.
How do suppliers affect a business?
They directly affect the value and quality of products or services delivered to the end customer.
What are online intermediaries?
Merchant sites owned by manufacturers or retailers that provide information and products.
Define competitive advantage.
Achieved by a firm when it can produce a superior product or lower price than most competitors.
List the four types of competitive advantages.
- Asymmetry
- First-mover advantage
- Complementary resources
- Unfair competitive advantage
What is a market strategy?
The plan a firm puts together that details how to enter a new market and attract new users.
What is an e-business model?
A set of planned activities designed to result in profit in a marketplace, aiming to leverage the unique qualities of the internet.
What is a Value Proposition (VP) in a business model?
Defines how a company’s product fulfills the needs of customers and why they will choose to do business with that firm.
What is the Subscription Revenue Model?
A model where a website charges a subscription fee for access to content or services.
What is the Transaction Fee Revenue Model?
A model where a company receives a fee for enabling or executing a transaction.
What does the Advertising Revenue Model entail?
A model where a website offers content and receives fees from advertisers.
What is the competitive environment?
Refers to other companies operating in the same market space selling similar products.
Fill in the blank: The implementation of marketing activities for an online marketer differs from that of an _______.
offline one
