Session 7

Question 1

E-Commerce Business Models

Answer 1

e-tailer
content provider
transaction broker
market creator
community provider
portal 
service provider

Question 2

e-tailer

Answer 2

an online retail store for goods (amazon, newegg.com)

Question 3

Content Provider

Answer 3

provides digital content (WSJ.com, ESPN.com)

Question 4

Transaction Broker

Answer 4

facilitates online transaction (etrade.com, expedia.com)

Question 5

market creator

Answer 5

provides a trading platform for individuals and firms (ebay, craigslist)

Question 6

community provider

Answer 6

provides an online community to focused groups (facebook, instagram)

Question 7

portal

Answer 7

provides initial point of entry to web, specialized content, services (yahoo, MSN)

Question 8

service provider

Answer 8

provides online services, including search services (flickr, paypal)

Question 9

pricing in digital market

Answer 9

prices online < conventional store
price fluctuation online > conventional store
price dispersion online> conventional store

Question 10

online prices should be lower

Answer 10

advantages of regular shopping:
customer reaction/attitude (affective from physical touch, sounds, smell. Cognitive from price, feature, comparison & information)

Transaction costs: visible vs. invisible (visible- explicit, invisible- implicit)

delayed gratification (high vs. low)