CHAPTER 10: E-BUSINESS Flashcards
What is the difference between e-business and e-commerce?
E-business: Involves all electronic interactions within an organization and with stakeholders, including CRM, SCM, ERP, and BI.
E-commerce: Focuses specifically on the marketing, selling, and buying of goods and services online.
What are the key components of e-business?
Business Intelligence (BI).
Customer Relationship Management (CRM).
Supply Chain Management (SCM).
Enterprise Resource Planning (ERP).
Collaboration tools.
E-commerce.
Online activities between businesses.
Electronic transfer within the firm.
What are the advantages of e-business?
Increased profitability and market share.
Improved customer service.
Faster delivery of products.
Enhanced organizational performance through electronic transactions.
How did the COVID-19 pandemic affect e-commerce in Canada?
Overall retail sales declined by 18%, but e-commerce sales nearly doubled (99.3%).
Non-essential items saw the greatest growth in e-commerce.
Businesses increased their web presence to support online sales.
What are some historical milestones of e-commerce?
The first online sale occurred on August 11, 1994, when a CD was sold through NetMarket.
Since then, e-commerce has evolved to enable freelancers, small businesses, and corporations to sell at scale.
Why must corporate strategy align with e-commerce strategy?
To take full advantage of electronic technologies and ensure successful integration of online and offline business models.
How does e-business improve organizational performance?
Facilitates better communication with stakeholders.
Enhances decision-making with business intelligence tools.
Streamlines supply chain and customer management processes.
What are the main advantages of e-commerce?
Expanded Markets: Businesses can serve customers globally, limited only by shipping methods and costs.
Increased Availability: Online operations allow 24/7 transactions, removing traditional time constraints.
Reduced Costs: Online businesses save on infrastructure costs, stock maintenance, and intermediary expenses.
Improved Efficiency: Digital processes reduce errors, speed up operations, and provide data tracking.
Improved Customer Service: Online chatbots, reviews, and automated processes enhance customer experience.
How does e-commerce reduce costs for businesses?
By eliminating physical infrastructure costs (e.g., rent, utilities), intermediaries (disintermediation), and enabling global hiring for lower wages.
How does e-commerce improve efficiency?
By digitizing processes like order placement and payment, reducing errors, and speeding up customer transactions.
What challenges do businesses face with customer trust in e-commerce?
Building trust without physical cues like body language or environment.
Ensuring high-quality, error-free websites.
Providing accurate product descriptions and reliable customer support.
What are the key disadvantages of e-commerce?
Technical & Accessibility Issues: Bandwidth and infrastructure limitations hinder user interaction.
Security & Privacy Issues: Publicized breaches discourage online shopping.
Establishing Customer Trust & Satisfaction: Trust is harder to build without physical interaction.
What are the effects of fake reviews on e-commerce?
Fake reviews, often generated by bots, undermine trust and inflate global online spending by $152 billion.
Removing fake reviews improves authenticity and customer confidence.
How can businesses prevent fake reviews and build trust?
Use security systems to filter out fake reviews.
Provide accurate product descriptions, high-quality images, and realistic shipping dates.
Notify customers of order progress via email or phone.
What are the two key factors to consider when developing an online strategy?
How many existing or potential customers are likely to do business online?
If a significant portion of customers are online, a strong online presence is essential.
What is the information intensity of the product?
Products requiring detailed information to describe them are more suited for online platforms.
What does the “Internet Presence Grid” classify?
X-axis (Number of customers with web access): High or Low
Y-axis (Information content of products): High or Low
Examples:
High customers + High information content = Consumer electronics
High customers + Low information content = Office supplies
Low customers + High information content = Industrial products
Low customers + Low information content = Food and beverages
What are the three critical strategic challenges in online strategies?
Demand Risk:
- Risk of changing demand or market collapse.
- The web can diversify by taking products to new markets.
Innovation Risk:
- Stagnation or failure to remain competitive by not adopting new ideas.
- The internet facilitates idea exchange with customers.
Inefficiency Risk:
- Failure to match competitors’ costs.
- The internet helps reduce costs through better information distribution.
What are the two main types of internet businesses?
Pure-play: Businesses with an online presence only (e.g., Amazon).
Brick-and-click: Businesses with both physical and online presence (e.g., Indigo).
What is Business-to-Business (B2B) e-commerce?
When a business sells goods or services to another business (e.g., software-as-a-service or office supplies).
It is the largest form of e-commerce.
What is Business-to-Consumer (B2C) e-commerce?
When a business sells goods or services to an individual consumer (e.g., buying shoes from an online retailer like Nike).
What is Consumer-to-Consumer (C2C) e-commerce?
When a consumer sells goods or services to another consumer (e.g., eBay or Kijiji).
What is Consumer-to-Business (C2B) e-commerce?
When a consumer sells their goods or services to a business (e.g., an influencer offering exposure to their audience for a fee).
What are Business-to-Government (B2G) and Consumer-to-Government (C2G) e-commerce?
B2G: Businesses provide goods/services to the government (e.g., procurement, filing taxes).
C2G: Consumers interact with government through e-commerce (e.g., paying taxes or license fees).
What is M-commerce?
Mobile commerce involves purchasing goods or services through wireless technology like smartphones. It accounts for 73% of e-commerce sales.
What are the factors driving growth in M-commerce?
Increasing global mobile users.
Rapid adoption of e-commerce.
Improved technology.
Lowering data costs.
Instant gratification for users.
List the benefits of M-commerce.
Access: Easier and more affordable access through mobile.
Convenience: Always connected and portable.
Costs: Mobile devices are cheaper than computers.
Ease of use: User-friendly interfaces.
Mobile payment: Secure payment options via mobile wallets.
Rich content: Enables multimedia product showcases.
What is Peer-to-Peer (P2P) e-commerce? Provide examples.
P2P involves individuals transacting with each other on a platform.
Examples: Etsy, Uber, Airbnb, TaskRabbit.
What is an e-commerce business model?
An e-commerce business model defines how a business generates revenue online through various transactional relationships between businesses and consumers.
