Chapter 10: E-Commerce: Digital Markets, Digital Goods Flashcards
1
Q
E-Commerce involves
A
digitally enabled commercial transactions between and among organizations and individuals
2
Q
Unique technology features of e-commerce
A
- ubiquity (meaning common) (everywhere, everyone)
- global reach
- universal standards
- richness (supports video, audio, and text messages)
- interactivity
- information density
- personalization/customization
- social technology
3
Q
E-Commerce is becoming increasingly
A
social, mobile, and local
4
Q
Digital markets are/have
A
- more transparent than traditional markets
- reduced information asymmetry
- lower search cost, transaction costs, and menu costs
- the ability to change prices dynamically based on market conditions
- foster market segmentation
- stronger network effects
5
Q
Disintermediation (takes place)
A
- removal of organizations or business process layers responsible for certain steps in the value chain
- benefits the consumer
6
Q
Digital Goods
A
(e.g. music, software, video, etc.)
- can be delivered over a digital network
- once a digital product has been produced, the cost of delivery is extremely low
7
Q
Major types of E-Commerce
A
- B2C (f.e. barnesandnobles)
- B2B (f.e. ChemConnect)
- C2C (f.e. Ebay)
8
Q
principal e-commerce revenue models are
A
- advertising
- sales
- subscription
- free/fremium (free services for basic services but charging for ‘premium’)
- transaction fee
- affiliate (websites are paid as ‘affiliates’ for sending their visitors to other sites in return of a referral fee)
9
Q
Long-tail marketing
A
- ability to reach a large audience inexpensively
- strategy of targeting a large number of niche markets with a product or service (example rec. on amazon)
10
Q
Behavioral targeting
A
- tracking online behaviour of individuals on thousands of websites and within apps
- thus privacy concerns
- programming ad buying
- native advertising
11
Q
Native advertising
A
- placing ads within social network/ newsfeed or traditional editorial content , such as newspaper article
12
Q
Wisdom of crowds
A
- large number of people can make better decisions about topics and products than a single person
13
Q
Crowdsourcing
A
- leverage external resources, e.g. for innovation (customer-designed products) and funding (crowdfunding)
- the practice of turning to a body of people to obtain needed knowledge, goods or services
14
Q
Electronic data interchange (EDI)
A
- computer-to-computer exchange of standard transactions (e.g. invoices, purchase orders, etc.)
15
Q
Net marketplaces (e-hubs)
A
- provide a single, digital marketplace for many buyers and sellers
- can be B2C (amazon)
- can be B2B (thomasnet.com)
- can be C2C (eBay)
