U10 - Ch.9 - Social Networking, e-commerce

Question 1

What is SMIS and what are three roles it plays?

Answer 1

Social Media Information systems include social media providers (Facebook), users and communities (with mutual interests).

Question 2

How does SMIS increase Social Capital?

Answer 2

Increasing the number of, strength and resources controlled in relationships. Benefit in four ways:

1. Information (more info)
2. Influence (influencing key decision makers)
3. Social Credentials (being linked to a good network)
4. Personal Reinforcement (professional identity)

Question 3

Describe common revenue models for SMIS.

Answer 3

Advertising, pay-per-click, FREEmium, & sales.

Question 4

Describe the two types of ecommerce categories.

Answer 4

Merchant companies (take title to goods they sell, selling stuff they actual provide) B2C, B2B, B2G.

and

Non-merchant companies: Middle man (i.e. exchanges and auctions).

Question 5

Describe disintermediation and reintermediation

Answer 5

Adding or getting rid of middle-mans. E.g. of adding them include travel sites like Expedia, while examples of getting rid of them include Alibaba which involve buying straight from supplier.

Question 6

What is price elasticity?

Answer 6

How much demand rises/falls in regard to changes in price.

Question 7

What are some challenges of ecommerce?

Answer 7

Channel conflict (selling direct to consumer AND through retailer), price conflict (selling direct will be cheaper, retailers get f*cked), logistics expense (costs of doing small orders vs big orders by manufacturers), customer service expense (manufacturers gotta provide support to customers who aren’t knowledgeable retailers), show-rooming (trying it on in store and then buying online), taxation (shipping internationally messes with taxes).