Chapter 7

Question 1

E-commerce

Answer 1

process of buying, selling, transferring, or exchanging products, services or information through computer networks, including the Internet.

Question 2

E-business

Answer 2

in addition to the buying and selling of goods and services, e-business refers tp servicing customers, collaborating with business partners, and performing electronic transactions within an organization.

Question 3

brick-and-mortar organization

Answer 3

purely physical

Question 4

virtual (pure-play) organization

Answer 4

all digital

Question 5

clicks-and-mortar organization

Answer 5

conduct some e-commerce activities, yet their primary business is carried out in the physical world

Question 6

business-to-consumer (B2C)

Answer 6

the sellers are organizations, and the buyers are individuals

Question 7

business-to-business (B2B)

Answer 7

both sellers and buyers are business organizations

Question 8

customer-to-customer

Answer 8

an individual sells products or services to other individuals (eBay)

Question 9

business-to-employee (B2E)

Answer 9

an organization uses EC internally to provide information and services to its employees

Question 10

mobile commerce

Answer 10

e-commerce that is conducted entirely in a wireless environment

Question 11

social commerce

Answer 11

delivery of electronic commerce activities and transactions through social computing

Question 12

conversational commerce

Answer 12

electronic commerce using messaging and chat apps to offer a daily choice, often personalized, of a meal, product, service

Question 13

Define e-government

Answer 13

use of Internet technology in general and e-commerce in particular to deliver information and public services to citizens (G2C) and to business partners and suppliers (G2B).

E-government is also an efficient way of conducting business transactions with citizens and businesses and within the governments themselves.

Question 14

What are auctions?

Answer 14

competitive buying and selling process in which prices are determined dynamically by competitive bidding

Question 15

Discuss forward and reverse auctions.

Answer 15

Forward auctions: sellers solicit bids from many potential buyers (eBay) –> the highest wins

Reverse auctions: one buyer, usually an organization, wants to purchase a product or service. They post a request for a quotation (RFQ), and the company that offers the product they want at the lowest price wins

Question 16

what are electronic payment mechanisms

Answer 16

enable buyers to pay for goods and services electronically, rather than writing a cheque or using cash

Question 17

electronic cheques

Answer 17

similar to regular paper cheques. Properly signed and endorsed e-cheques are exchanged between financial institutions through electronic clearinghouses.

Question 18

electronic cards

Answer 18

allow customers to charge online payments to their credit (or debit) card account
- purchase cards
- store-value money cards

Question 19

digital, online payments

Answer 19

payment gateway is an application that authorizes payments for e-businesses, online retailers, bricks-and-clicks businesses, or traditional brick-and-mortar businesses

Question 20

benefits of e-commerce for organizations

Answer 20

makes national and international markets more accessible

lowers the costs of processing, distributing and retrieving information

Question 21

benefits of e-commerce for customers

Answer 21

Able to access a vast number of products and services, around the clock

Question 22

benefits of e-commerce for society

Answer 22

Ability to easily and conveniently deliver information, services, and products to people in cities, rural areas, and developing countries

Question 23

what are limitations of e-commerce

Answer 23

Lack of universally accepted security standards

For less-developed countries, telecommunications bandwidth is often insufficient, and accessing the web is expensive

Perception that EC is nonsecure