Chapter 8: E-Commerce

Question 1

E-business

Answer 1

All of the activities a company performs for selling and buying products and services using computers and communication technologies

Question 2

E-commerce

Answer 2

Buying and selling goods and services over the Internet

Question 3

Value chain

Answer 3

Series of activities designed to meet business needs by adding value or cost in each phase of the e-commerce process

Question 4

Click-and-brick e-commerce

Answer 4

Mixes traditional commerce and e-commerce
- It capitalizes on the advantages of online interaction with customers
yet retains the benefits of having a physical store location

Question 5

Merchant model

Answer 5

Transfers the old retail model to the e-commerce world by using the medium of the Internet

Question 6

Brokerage model

Answer 6

Brings sellers and buyers together on the Web and collects commissions on transactions between these parties

Question 7

Advertising model

Answer 7

• Extension of traditional advertising media such as radio and TV
• Directories such as Yahoo! provide content (similar to radio and TV) to users for free.
• By creating more traffic with this free content, they can charge companies for placing banner ads or leasing spots on their sites

Question 8

Mixed model

Answer 8

Generating revenue from more than one source

Question 9

Infomediary model

Answer 9

Sites collect information on consumers and businesses and then sell this information to other companies for marketing purpose

Question 10

Subscription model

Answer 10

E-commerce sites sell digital products or services to customers

Question 11

Seller-Side Marketplace

Answer 11

Sellers who cater to specialized markets come together to create a common marketplace for buyers

Question 12

E-procurement

Answer 12

Enables employees in an organization to order and receive supplies and services directly from suppliers

Question 13

Buyer-Side Marketplace

Answer 13

Buyer, or a group of buyers, opens an electronic marketplace and invites sellers to bid

Question 14

Third-Party Exchange Marketplace

Answer 14

Marketplace generates revenue from the fees charged for matching buyers and sellers

Question 15

Vertical market

Answer 15

Concentrates on a specific industry or market

Question 16

Horizontal market

Answer 16

Concentrates on a specific function or business process and automates this function or process for different industries

Question 17

Trading Partner Agreements

Answer 17

Automatic negotiating processes and enforce contracts between participating businesses

Question 18

Mobile Commerce (m-commerce)

Answer 18

Using handheld devices to conduct business transactions

Question 19

Voice-Based E-Commerce

Answer 19

Relies on voice recognition and text-to-speech technologies

Question 20

Search Engine Optimization (SEO)

Answer 20

Method for improving the volume or quality of traffic to a Web site

Question 21

Social commerce

Answer 21

Subset of e-commerce that is influenced by social networks and other online media

Question 22

Hyper-Social Organizations

Answer 22

Companies that leverage social media to better connect with customers and increase sales through the social process

Question 23

Major categories of e-commerce

Answer 23

1) Business-to-consumer (B2C)
2) Business-to-business (B2B)
3) Consumer-to-consumer (C2C)
4) Consumer-to-business (C2B)
5) Organizational (Intrabusiness): Involves e-commerce activities that take place inside an organization via the organization’s intranet, exchange of goods, services, or information among employees