MIS: Exam 3 - Ch 10

Question 1

Term: The web is available anywhere/anytime

Answer 1

Ubiquity

Question 2

Term: commerce across cultural and national boundaries

Answer 2

Global Reach

Question 3

Term: technology standards enabled connectivity

Answer 3

Universal Standards

Question 4

Term: audio, video and text enhance marketing messages

Answer 4

Richness

Question 5

Term: two-way interaction, engaging consumers in dialog

Answer 5

Interactivity

Question 6

Term: increased amount and quality of information, greater price/cost transparency, enables price discrimination

Answer 6

Information Density

Question 7

Term: modification of messages and goods

Answer 7

Personalization/Customization

Question 8

Term: promotes user content creation and distribution

Answer 8

Social Technology

Question 9

E-Commerce’s Unique Features

Answer 9

Ubiquity, Global Reach, Universal Standards, Richness, Interactivity, Information Density, Personalization/Customization, and Social Technology

Question 10

Digital Markets Reduce: one party in a transaction having more information related to the transaction. (transparency, ex. Cars)

Answer 10

Information Asymmetry

Question 11

Digital Markets Reduce: merchants costs of changing prices.

Answer 11

Menu Costs

Question 12

Digital Markets Enable: price of a product varies depending on demand characteristics of the customer or supply situation of seller.

Answer 12

Dynamic Pricing

Question 13

Digital Markets Reduce: The cost of participating in a market

Answer 13

Transaction Costs

Question 14

Digital Markets Reduce: The effort required to find suitable products

Answer 14

Search Costs

Question 15

Digital Markets Enable: Selling the same goods, or nearly the same goods, to different target groups at different prices.

Answer 15

Price Discrimination

Question 16

Digital Markets Enable: Removal of layers responsible for intermediary steps in a value chain

Answer 16

Disintermediation

Question 17

Term: are delivered electronically, cost of producing first unit is almost the entire cost of product. Marginal costs is virtually zero.

Answer 17

Digital goods

Question 18

Types of E-Commerce

Answer 18

Business-to-consumer (B2C), Business-to-business (B2B), Consumer-to-consumer (C2C), Mobile e-commerce (m-commerce)

Question 19

E-Commerce Business Models: Sells physical products directly to consumers or to individual businesses

Answer 19

E-tailer

Question 20

E-Commerce Business Models: Saves users money and time by processing online sales transactions and generating a fee each time a transaction occurs.

Answer 20

Transaction Broker

Question 21

E-Commerce Business Models: Provides digital environment where buyers and sellers can meet, search for products, display products, and establish prices for them. Can serve consumers or B2B e-commerce, generating revenue from transaction fees.

Answer 21

Market Creator

Question 22

E-Commerce Business Models: Creates revenue by providing digital content, such as news, music, photos, or video, over the Web. Customer may pay to access the content or revenue may be generated by selling advertising space.

Answer 22

Content Provider

Question 23

E-Commerce Business Models: Provides an online meeting place where people with similar interests can communicate and find useful information.

Answer 23

Community Provider

Question 24

E-Commerce Business Models: Provides initial point of entry to the Web along with specialized content and other services.

Answer 24

Portal

Question 25

E-Commerce Business Models: Provides Web 2.0 applications such as photo sharing, video sharing, and user-generated content as services. Provides other services such as online data storage and backup.

Answer 25

Service Provider

Question 26

6 E-Commerce Revenue Models:

Answer 26

Advertising, Sales, Subscription, Free/Freemium, Transaction Fee, Affiliate

Question 27

E-Commerce Revenue Models: Attract a large audience and advertise to them. Most widely used model in e-commerce, aids in providing “free” content to users. (98% of Google’s revenue)

Answer 27

Advertising

Question 28

E-Commerce Revenue Models: Amazon.com, Micropayments systems

Answer 28

Sales

Question 29

E-Commerce Revenue Models: Netflix, Hulu, Xbox, Match.com, Ancestry.com

Answer 29

Subscription

Question 30

E-Commerce Revenue Models: Google, Pandora, Dropbox, Apple iCloud

Answer 30

Free/Freemium

Question 31

E-Commerce Revenue Models: eBay, eTrade, Amazon Seller

Answer 31

Transaction Fee

Question 32

E-Commerce Revenue Models: Referrals, Community Site, Bloggers, etc.

Answer 32

Affiliate

Question 33

Most popular Web 2.0 service

Answer 33

social networking

Question 34

Term: Use of websites featuring user-created web pages to share knowledge about items of interest to other shoppers. (Swap Shopping ideas with friends)

Answer 34

Social Shopping

Question 35

Using large internet audiences for advice, market feedback, new ideas and solutions to business problems. (related to “wisdom of crowds” theory)

Answer 35

Crowd Sourcing

Question 36

The belief that large numbers of people can make better decisions about a wide range of topics or products than a single person or even a small committee of experts. (sum of the whole system is greater than the sum of its parts)

Answer 36

Wisdom of Crowds

Question 37

E-Commerce Marketing: Ability to market goods and services to very small online audiences, due to reduced costs of reaching those small market segments. (tails of a bell curve)

Answer 37

Long tail marketing

Question 38

E-Commerce Marketing: Tracking online behavior (click-streams) of individuals on thousands of sites to better understand their interests and intentions

Answer 38

Behavioral targeting

Question 39

search engine marketing, display ads, rich media, and e-mail are all

Answer 39

Advertising formats

Question 40

Business-to-business e-commerce: Computer-to-computer exchange of standard transactions

Answer 40

Electronic data interchange (EDI)

Question 41

Business-to-business e-commerce: Large firm using extranet to link to its suppliers, distributors and other key business partners. Owned by buyer and Permits sharing of: Product design and development, Marketing, Production scheduling and inventory management, Unstructured communication (graphics and e-mail)

Answer 41

Private industry networks (private exchanges)

Question 42

Business-to-business e-commerce: Single market for many buyers and sellers Industry-owned or owned by independent intermediary Generate revenue from transaction fees, other services Use prices established through negotiation, auction, RFQs, or fixed prices May focus on direct or indirect goods May be vertical or horizontal marketplaces

Answer 42

Net marketplaces (e-hubs)

Question 43

Business-to-business e-commerce: Independently owned third-party Net marketplaces. Connect thousands of suppliers and buyers for spot purchasing. Typically provide vertical markets for direct goods for single industry (food, electronics)

Answer 43

Exchanges (third-party owned)