chapter 1

Question 1

Why should you study E-commerce

Answer 1

Rapid growth and change

Business fortunes are made - and lost - in periods of extraordinary change

It is important to study E-commerce in order to be able to perceive and understand the opportunities and risks that lie ahead

Question 2

E-commerce

Answer 2

The use of the internet and web, mobile apps and browsers running on mobile devices, to transact business. More formally, digitally enabled commercial transactions between and among organizations and individuals

Question 3

E-business

Answer 3

The digital enabling of transactions and processes within a firm, involving information systems under the control of the firm

Question 4

Mobile platform

Answer 4

Provides the ability to access the internet from a variety of mobile devices such as smartphones and tablets

Question 5

Major trends in E-commerce

Answer 5

Business
Technology
Society

Question 6

Information asymmetry

Answer 6

Any disparity in relevant market information among parties in a transaction

Question 7

Marketplace

Answer 7

Marketplace extended beyond traditional boundaries and removed from a temporal and geographic location

Question 8

Reach

Answer 8

Total number of users or customers an E-commerce business can obtain

Question 9

Universal standards

Answer 9

Standards that are shared by all nations around the world

Question 10

Richness

Answer 10

The complexity and content of a message

Question 11

Interactivity

Answer 11

Technology that allows for two-way communication between merchant and consumer

Question 12

Information density

Answer 12

The total amount and quality of information available to all market participants

Question 13

Personalization

Answer 13

The targeting of marketing messages to specific individuals by adjusting the message to a persons name, interest and past purchases

Question 14

Customization

Answer 14

Changing the delivered product or service based on a users preferences or prior behavior

Question 15

One-to-many broadcast model

Answer 15

Content is created in a central location by experts and audiences are concentrated in huge aggregates to consume a standardized product

Question 16

E-commerce technology dimensions

Answer 16

Ubiquity
Global reach
Universal standards
Richness
Interactivity
Information density
Personalization/customization
Social technology

Question 17

Ubiquity

Answer 17

(that e-commerce) is available just about everywhere at all times

Question 18

Business to consumer E-commerce (B2B)

Answer 18

online businesses selling to individual consumers

Question 19

Business to business (B2B= E-commerce

Answer 19

In which businesses focus on selling to other businesses, is the largest form of e-commerce

Question 20

Consumer to consumer (C2C) e-commerce

Answer 20

Provides a way for consumers to sell to each other with the help of an online market maker

E.g. Ebay kleinanzeigen

Question 21

Mobile E-commerce (M-commerce)

Answer 21

use of mobile devices to enable online transactions. M-commerce involves the use of cellular and wireless networks to connect smartphones and tablet computers to the internet. Once connected, mobile consumers can purchase products and services, make travel reservations etc.

Question 22

Social E-commerce

Answer 22

E-commerce that is enabled by social networks and online social relationships

Question 23

Local E-commerce

Answer 23

Is a form of E-commerce that is focused on engaging the consumer based on his or her current geographic location

Question 24

Disintermediation

Answer 24

Displacement of market middlemen who traditionally are intermediaries between producers and consumers by a new direct relationship between producers and consumers

Question 25

Friction free commerce

Answer 25

A vision of commerce in which information is equally distributed, transaction costs are low, prices can be dynamically adjusted to reflect actual demand, intermediaries decline, and unfair competitive advantages are eliminated

Question 26

First mover

Answer 26

A firm that is first to market in a particular area and that moves quickly to gather market share

Question 27

Network effects

Answer 27

Occurs when users receive value from the fact that everyone else uses the same tool or product

Question 28

Web 2.0

Answer 28

A set of applications and technologies that enable user-generated content