Chapter 9

Question 1

What is E-commerce?

Answer 1

Buying and selling of goods and services over public & private computer networks.

Question 2

What are the 2 Categories of E-Commerce?

Answer 2

1. Merchant Companies.
2. Non-Merchant Companies.

Question 3

Explain Merchant companies in relation to E-commerce.

Answer 3

Merchant companies:

1. Take the title to the goods they sell.
2. Buy goods and resell them.
3. Sell Services that they provide.

Question 4

Explain Non-Merchant Companies in relation to E-commerce.

Answer 4

Non-Merchant Companies:

• Arrange for purchase and sale of goods and sevices without ever owning or taking titike of those goods.
• Sell services provided by others.

Question 5

What are the 3 Types of Capital?

Answer 5

1. Physical Capital.
2. Human Capital.
3. Social Capital.

Question 6

What is Physical Capital?

Answer 6

The investment of resources for future profit.

Question 7

What is Human Capital?

Answer 7

The investment in human knowledge & skills for future profit.

Question 8

What is Social Capital?

Answer 8

Investment in social relations with the expectation of returns for future profit.

Question 9

Explain Web 2.0.

Answer 9

• Applications & platforms on the web.
• Google, Amazon, eBay.
• Focused on services and dynamics of the marketplace.

Question 10

Explain Software as a Service (SAAS).

Answer 10

• Web 2.0 companies do not sell software liscenses because the software is not their product.
• Web 2.0 relies on advertising or other revenue that results as users employ the SAAS.

Question 11

How do sites increase their revenue?

Answer 11

• The value of the site increases with the users & more use.
• More User Generated Content (UGC)

Question 12

What is Crowdsourcing?

Answer 12

Users provide customer support to other customers.