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BIM > Module 8 > Flashcards

Module 8 Flashcards

1
Q

3 Major segments of E-commerce

A
  1. Retail goods
  2. Travel and other services
  3. Online content
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2
Q

What is e-commerce?

A

E-commerce is the use of the internet, web, apps to transact business.

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3
Q

What is social marketing about in e-commerce?

A

Social marketing is based on firms engaging in social conversations. Firms participating in everything social

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4
Q

Keywords in e-commerce channels

A
  1. Mobile -From PCs to mobile phones
  2. Local - Local merchants can gain access to customers
  3. Social - A collection of technology-based tools for communicating with shoppers
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5
Q

8 Unique features of e-commerce

A
  1. Ubiquity
  2. Global reach
  3. Universal standards
  4. Information richness
  5. Information density
  6. Personalization
  7. Social technology
  8. Interactivity
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6
Q

What is ubiquity

A

Ubiquity is the fact that the internet is available everywhere, and the marketspace extends everywhere.
Ubiquity reduces transaciton costs

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7
Q

What are univseral standards in e-commerce

A

The internet is the same everywhere and has one standard. This lowers market entry for merchants and search costs for consumers

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8
Q

What is information density

A

Information density is the total amount and quality of info available to market particpants.
It makes costs/prices more transparent. Price transparency means consuemrs can find out the variety of prices.
Information density helps firms price-discriminate

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9
Q

What is dynamic pricing

A

When price of a product varies depending on demand or supply situation

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10
Q

What is disintermediation

A

Disintermediation is the removal of organizations or intermediaries in the value chain. This makes things cheaper as there is less processes

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11
Q

Answer how digital markets affect the following:
Information asymmetry
Search costs
Menu costs
Dynamic pricing
Price discrimination
Market segmentation
network effects
disintermediation

A

Asymmetry reduced
search costs reduced
menu costs reduced
dynamic pricing low cost
price discrimiantion low cost
market segmentation low cost
network effects strong
disintermediation more possible

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12
Q

Digital goods:
marginal cost
cost of production
copying cost
distributed delivery cost
inventory cost
pricing

A

marginal cost zero
cost of production high
copy cost zero
distributed delivery cost low
invneotry cost 0
markeitng cost variable
pricing more variable

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13
Q

Types of e-commerce

A
  1. Business-to-Business (B2B) e-commerce
  2. Business-to-consumer (B2C) e-commerce
  3. Consumer-to-consumer (C2C) e-commerce. This is where consumers sell to consumers like marketplace
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14
Q

E-commerce business models

A
  1. E-tailer or online retailer
    Sells physical products
  2. Transaction broker
    Saves users money+time by processing online sales transactions. Booking.com
  3. Market creator
    Provides a digital environment where buyers and sellers can buy. eBay.
  4. Content provider
    Creates revenue by providing digital content
  5. Community provider / social network
    Provides an online meeting place
  6. Portal
    Provides initial POE. google
  7. Service provider
    Provides online services
    google drive, uber
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15
Q

E-commerce revenue models

A
  1. Advertising revenue models
    Revenue is generated by attracting a large audience to its web who can then be exposed to the ad
  2. Sales revenue model
    companies get revenue from selling
  3. subscription revenue model
    companies offer subscription fees for content
  4. free/fremium revenue model
    firms offer basic services for free in hopes consumers buy premium version
  5. transaction fee revenue model
    companies receive a fee for transaction
  6. affiliate revenue model
    affiliate websites send visitors to websites
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16
Q

Behavioral targeting

A

Tracking clickstreams of individuals on websites to understand interests and give ads that fit

17
Q

Native advertising

A

placing ads in social network feeds

18
Q

meaning of wisdom of crowds?

A

means a large number of people can make better decisions about a wide range of topics than a single experts

19
Q

social listening

A

understand what people are saying about a brand

20
Q

Private B2B nertwork

A

consists of large firms using secure websites to link its suppliers and partners

21
Q

B2B e-commerce marketplace

A

provides a single, digital marketplace for many buyers and sellers

22
Q

what is m-commerce

A

the commerce of goods via mobile devices

23
Q

What is the foundation of m-commerce

A

connecting people to local merchants in the form of geo-advertising.

24
Q

3 main mobile payment apps

A
  1. Near field communication (NFC)
    contactless payments like apple pay
  2. quick response (QR) code
    barcode where info is encoded
  3. Peer-to-peer payment
    bank transfers
25
Q

4 types of e-commerce presence

A
  1. Website/apps
  2. email
  3. social media
  4. offline media
26
Q

What makse e-commerce disruptive?

A
  1. Advancement in technology leads to lower transaction costs and search costs
  2. Leveraging communities as assets and using the social community of the product
  3. growing by power of network effects.
27
Q

what is network effect?

A

The more users, the more powerful/better the platform becomes.

28
Q

Same-side network effects?

A

The network effect happens between the users of the same class.
More people on insta is better

29
Q

Cross-side network effects?

A

Happens among two different classes of users
uber drivers and uber consumers

30
Q

What is metcalf’s law/equation

A

value of network is proportional to n^2 users
The formula for number of posible connections between network users is:
n(n-1)/2

31
Q

What are 2 types of network externalities

A

positive - additional network user increases value to all other users
negative - additional network user decreases value to all other users

32
Q

What is a one-sided market on e-commerce?

A

a large share of value is derived from single class of users.
Whatsapp for example has majority as just people who chat

33
Q

What is a two-sided market on e-commerce?

A

value is derived from 2 categories of network users.
Uber, airbnb

34
Q

What is same-side network effects?

A

increasing value to a class of users resulting from an increase in the number of users from that class

35
Q

Cross-side network effect?

A

increasing value to a class of users resulting from an increase in the number of users from another class

36
Q

positive feedback loops

A

an increase in A leads to an increase in B, which leads to an increase in A etc

37
Q

How network effects can affect industries with strong network effects

A

Industries with strong network effects lead to winner takes all dynamics. once a leader emerges, positive feedback loops strengthen its positionn

38
Q

Key concepts in e-commerce

A

information asymmetry
menu costs
dynamic pricing
switching costs
delayed gratification
disintermediation - ability to remove intermediary processes. Consumers can use this to also remove the service fee of platforms.

39
Q

Digital goods and their costs

A

Cost of producing first unit is almost entire cost of product and marginal cost is low

BIM (8 decks)

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