PART 1

Question 1

COMMERCE
3 MEANINGS

Answer 1

exchange of goods or services among two more more parties

Began when prehistoric humans started exchanging goods and services for mutual benefit (bartering)

Subset of business that focuses on the distribution of goods

Question 2

Selling a single item is a _____ All transactions are collectively called _______

Answer 2

transaction
commerce

Question 3

COMMERCE VS. BUSINESS VS. TRADE

Answer 3

Business- any endeavor undertaken for the purpose of making a profit

Commerce
refers specifically to the exchange of products and services between two or more parties

Trade
final transaction in which a seller provides a finish product and consumer pays for it

Question 4

E-COMMERCE
3 MEANINGS

Answer 4

Commonly known as electronic marketing

Consist of buying and selling goods and services over an electronic systems such as the internet and other computer networks

Is the purchasing, selling and exchanging goods and services over computer networks (internet) through which transaction or terms of sale are performed electronically

Question 5

PROCESS OF E-COMMERCE

Answer 5

1. A consumer uses web browser to connect to the homepage of merchant’s website on the internet
2. The consumer browses the catalog of products featured on the site and selects items to purchase. The selected items are placed in the electronic equivalent of a shopping cart
3. When the consumer is ready to complete the purchase of selected items, she provides a bill-to and ship-to address for purchase and delivery
4. When the credit card number is validated and the order is completed at the Commerce Server site, the merchant’s site displays a receipt confirming the customer’s purchase
5. The Commerce Server site then forwards the order to a Processing Network for payment processing and fulfillment

Question 6

PROCESS OF E-COMMERCE
(ILLUSTRATION)

Answer 6

1. Order placed by user
2. Shopping Cart
3. Credit card is charged
4. Order is completed
5. Email is sent to Customer and merchant
6. Sent to Warehouse for fulfillment
7. Shipping carrier picks up shipment
8. Shipment sent to customer

Question 7

ADVANTAGES OF E-COMMERCE (7)

Answer 7

Faster buying/selling procedure, as well as easy to finds products

Buying selling 24/7

More reach to customers, there is no theoretical geographic limitations

Low operational cost and better quality of services

No need of physical company set-ups

Easy to start and manage a business

Customers can easily select products from different providers without moving around physically

Question 8

DISADVANTAGES OF E-COMMERCE

Answer 8

Unable to examine products personally

Not everyone is connected to the internet

There is a possibility of credit card number theft

Mechanical failures can cause unpredictable effects on the total processes