Chapter 7: E-Business and E-Commerce Flashcards
Define e-commerce
and distinguish it from e-business.
Electronic commerce (e-commerce): is the process of buying, selling, transferring, or exchanging products, services, or information through computer networks, including the Internet
Electronic business (e-business): is a somewhat broader concept than E-Commerce. E-business refers to servicing customers, collaborating with business partners, and performing electronic transactions within an organization.
Differentiate among B2C, B2B, C2C, and B2E
Business-to-consumer electronic commerce (B2C): In B2C, the sellers are organizations, and the buyers are individuals
Business-to- business electronic commerce (B2B): In B2B transactions, both the sellers and the buyers are business organizations
Consumer-to-consumer electronic commerce (C2C): In C2C, an individual sells products or services to other individuals
- Ex. Depop, , Kijiji
Business-to-employee (B2E): In B2E, an organization uses EC internally to provide information and services to its employees.
- Ex. companies allow employees to manage their benefits and to take training classes electronically
Define e-government.
E-government: E-government is the use of Internet technology in general and e-commerce in particular to deliver information and public services to citizens and to business partners and suppliers
- Ex. G2C electronic commerce is requesting a birth certificate online, or registering online for sports activities run by your municipality.
Discuss forward and reverse auctions.
Forward auctions: Traditional style. sellers solicit bids from many potential buyers.
- Usually, sellers place items at sites for auction, and buyers bid continuously for them. Highest bidder wins items.
Reverse auctions: one buyer, usually an organization, wants to purchase a product or a service. The buyer posts a request for a quotation (RFQ) on its website or on a third-party site.
The RFQ provides detailed information on the desired purchase. Interested suppliers study the RFQ and then submit bids electronically. Everything else being equal, the lowest-price bidder wins the auction
Discuss the various online payment mechanisms.
three ways
Electronic Cheques
Electronic cheques (e-cheques), which are used primarily in B2B, are similar to regular paper cheques
Electronic Cards
There are a variety of electronic cards, and they are used for different purposes. Types: electronic credit cards, purchasing cards, stored-value money cards, and smart cards.
Digital, Online Payments
A payment gateway is an application that authorizes payments for e-businesses, online retailers, bricks-and- clicks businesses, or traditional brick-and- mortar businesses
- Ex. PayPal
Identify some benefits and limitations of e-commerce.
(+) Enhances accessibility to national and global markets by reducing information processing costs.
(+) Enables convenient delivery of information, services, and products to diverse locations.
(-) Faces challenges due to the absence of universally accepted security standards.
(-) Limited telecommunications bandwidth and high costs hinder widespread web access
What is the difference between Brick-and- mortar organizations, Clicks-and-mortar organizations, and Virtual organizations
Brick-and-mortar organizations: Purely physical organizations
Clicks-and-mortar organizations: conduct some e-commerce activities, yet their primary business is carried out in the physical world
Virtual organizations: Companies engaged only in EC (electronic commerce)
Describe electronic storefronts and malls.
Electronic retailing (e-tailing): is the direct sale of products and services through electronic storefronts or electronic malls, usually designed around an electronic catalogue format and auctions
Discuss online advertising, its methods, and its benefits.
- online ads can be updated any time at minimal cost and therefore can be kept current. These ads can also reach very large numbers of potential buyers
- They’re cheaper
- online ads can be interactive and targeted to specific interest groups or individuals.
Identify the major issues related to e-tailing.
three issues
Channel Conflict
Clicks-and- mortar companies may face a conflict with their regular distributors when they sell directly to customers online. Can alienate the distributors.
Order Fulfillment
It is very difficult to accomplish fulfillment activities both effectively and efficiently in B2C,
because a company has to ship small packages to many customers and do it quickly.
- For this reason, companies involved in B2C activities can experience difficulties in their supply chains
Personalized Pricing
If the price is higher for a product at a certain retailer, then customers can easily use the Internet to compare prices and features among a huge number of retailers to purchase that product from another retailer, a process known as showrooming
What are spamming and viral marketing?
Spamming is the indiscriminate distribution of electronic ads without the permission of the recipient
Viral marketing: Recipients of your marketing notices send information about your product to their friends
Briefly differentiate between the sell-side marketplace and the buy-side marketplace.
Sell-side marketplace: model, organizations sell their products or services to other organizations electronically from their own private e-marketplace website or from a third-party website.
Buy-side marketplace: is a model in which organizations attempt to procure needed products or services from other organizations electronically
- ex. Procurement is the overarching function that describes the activities and processes to acquire goods and services.
Briefly differentiate among vertical exchanges, horizontal exchanges, and functional exchanges.
Electronic marketplaces “public exchanges”: are independently owned by a third party, and they connect many sellers with many buyers.
Vertical exchanges connect buyers and sellers in a given industry.
- ex. Marriott owns a e-marketplace for hotels
Horizontal exchanges connect buyers and sellers across many industries.
- Ex. Alibaba
Functional exchanges needed services such as temporary help or extra office space are traded on an “as-needed” basis.
- Ex. LiquidSpace allows you to find temporary office space by the hour or month.
List and explain some ethical issues in e-business
Two basic issues: privacy and job loss
- By making it easier to store and transfer personal information, e-business presents some threats to privacy. It is necessary to protect the buyers’ identities. Businesses frequently use encryption to provide this protection.
- Another major privacy issue is tracking. For example, individuals’ activities on the Internet can be tracked by cookies
- the use of EC may eliminate the need for some of a company’s employees, as well as brokers and agents
Discuss the major legal issues associated with e-Commerce .
Fraud on the Internet
- Ex. stock promoters falsely spread positive rumors about the prospects of the companies they touted in order to boost the share price.
Domain Names
- Ex. Delta Air Lines. Delta originally could not obtain the Internet domain name delta.com because Delta Faucet had already purchased it.
Cybersquatting refers to the practice of registering or using domain names for the purpose of profiting from the goodwill or the trademark that belongs to someone else.
- Perhaps the more common of these practices is “domain tasting.” Domain tasting lets registrars profit from the complex money trail of pay-per- click advertising
Taxes and Other Fees
As a general rule in Canada, it is the responsibility of the e-commerce retailer to collect the federal and provincial taxes that correspond to the address of the buyer
Copyright
many people mistakenly believe that once they purchase a piece of software, they have the right to share it with others.
- In fact, what they have bought is the right to use the software, not the right to distribute it
