6.1 Quiz: Introduction (EN&NL) Flashcards
Which company provides a nice illustration of the concept of reintermediation?
PayPal
Facebook
E-bay
DHL
DHL
reintroduction of intermediaries to improve efficiency, add value, or address new challenges.
Internet offers new distribution channel
- potential channel conflicts
Internet has led to unbundling of information from traditional value chain channels
- disintermediation: cutting out the “middleman”
- reintermediation: new types of middlemen; eg. delivery services UPS, DHL and FedEx.
Which statements is NOT CORRECT?
B2B relationships are often shorter-term than B2C which creates lower stickiness between the B2B partners involved.
B2B usually is a more complex process than B2C that may involve extensive negotiation over prices, product specifications, etc..
B2B is usually setup amongst a network of partners creating a so called collaborative commerce environment.
B2B typically requires IT system integration between the buyer and seller based on specialized technologies.
B2B relationships are often shorter-term than B2C which creates lower stickiness between the B2B partners involved.
E-business is a broad term that not only refers to B2C e-commerce, but also has an important B2B component that is much more focused on the use of internet technology to optimize business processes between partners in a value chain.
True
False
True
Goods delivered to private individuals via e-commerce are often returned. We generally refer to the transport activities involved in this with the term “reverse logistics”.
True
False
True
When we compare e-commerce with traditional retail channels, you notice that the richness is declining. Because customers are not physically present, it is difficult or impossible to provide a personalized service and there is much less information exchange.
True
False
False
Three key features of e-commerce are *ubiquity, richness and reach
Ubiquity
available everywhere, at all times
*Reach
total number of users/customers e-commerce business can obtain
through universal standards (3G/4G/5G, HTML 5, HTTP, etc.)
lower entry and search costs
*Richness
complexity and content of message
Interactivity; 2-way communication between merchant and consumer
Information density; total amount and quality of information available to all market participants; strongly reduced information asymmetry: price + cost transparency
Mass personalization and customization; possibility for (almost) unlimited price discrimination
-> facilitates mass personalization and customization
Reverse logistics is a term used to indicate that 3PL companies allow customers to track the delivery of goods.
True
False
False
Reverse logistics refers to the process of moving goods from their final destination back to the manufacturer or a designated location for the purpose of returns, repairs, recycling, or disposal. It is essentially the reverse flow of products in a supply chain.
Tracking the delivery of goods, on the other hand, is typically associated with the forward logistics process, where goods move from the manufacturer to the end consumer. The tracking of deliveries allows customers to monitor the progress of their orders during transportation.
*3thd party logistics
A shopping bot will usually combine multiple products and services in a package in order to obtain better conditions (e.g. price).
True
False
False
Een shopping bot gaat normaliter geen producten of diensten combineren. Dat doet een aggregator.
When you analyze the strategic impact of the Internet on the basis of Porter’s five forces model, one typically finds that many industries are experiencing an increase in the threat from substitutes. This is due to the fact that technology in itself leads to more potential substitute products or services.
True
False
True
A supermarket is an example of a brick-and-mortar company.
True
False
False
Bricks-and-mortar (or “old-economy”)
traditional companies based in physical world only eg. locaal supermarket, barber
Pure-play (or virtual) organizations
companies are engaged only in electronic commerce, eg. Netflix, Facebook and Google
Clicks-and-mortar organizations
some e-commerce activities, yet primary business in physical world, eg. Walmart
=A brick-and-mortar company refers to a traditional business that has a physical presence, such as a physical store, office, or facility.
A typical dot-com company would rely on network effects to increase market share by spending a lot of money. Oftentimes, they focused on so-called mind-share, for instance by offering products almost for free in the hope of charging higher prices later.
True
False
True
Disintermediation means that companies position themselves as new intermediaries in existing value chains. Typical examples are 3PL companies and shopping bots.
True
False
False
disintermediation: cutting out the “middleman”
A channel conflict arises when a company has several different sales channels that are not aligned with each other.
True
False
True
According to Gartner, digital business entails the creation of new business designs by
clearly differentiating the digital and physical world.
blurring the digital and physical world.
blurring the digital and physical world.
Which statement is NOT CORRECT?
In E-logistics, typically small parcels with products are sent to many homes using third-party logistics suppliers such as DHL, FedEx, etc.
In traditional forms of business, large amounts of products or materials were sent to a few destinations, such as supermarkets or physical retailers.
Facilities for reverse logistics are needed in case a damaged or the wrong product is delivered which needs to be sent back.
In click & collect buying a customer configures his or her market basket online and then has it sent to his/her home address.
In click & collect buying a customer configures his or her market basket online and then has it sent to his/her home address; instead of having the items sent to their home address, they choose to pick up the items in person at a specified location
The strategy of a company like Dell can be seen as a typical example of a successful disintermediation strategy. It has adopted a totally new value chain model via internet technology to deliver cheaper to end customers.
True
False
True
The Internet
decreases switching costs in case you want to change for example your payment transaction processor from PayPal to Stripe or any other company.
increases switching costs in case you want to change for example your payment transaction processor from PayPal to Stripe or any other company.
decreases switching costs in case you want to change for example your payment transaction processor from PayPal to Stripe or any other company.
The strategy of a company like Dell can be seen as a typical example of a successful reintermediation strategy. It has adopted a totally new value chain model via internet technology to deliver cheaper to end customers.
True
False
False; no bcs intermediare function is not shifted but removed withing dell
An aggregator will combine multiple products and/or services in one package so as to be able to offer better conditions (e.g. price).
True
False
True
E-commerce includes e-business.
True
False
False
E-commerce: process of buying and selling goods and services electronically
E-business: e-commerce + use of Internet and other digital technologies for performing business processes and coordinating with suppliers and partners
Web shops provide a new sales channel that is typically cheaper than working through traditional distribution channels. This creates tensions between the different sales channels, which is what we refer to as a channel conflict.
True
False
True
When you analyze the strategic impact of the Internet using Porter’s five forces model, one typically finds that the market power of customers is declining because of the lack of transparency.
True
False
False
he Internet typically enhances the transparency of information, giving customers more power in terms of knowledge, choices, and negotiation
An important characteristic of e-commerce and e-business in general is the so-called reach: products and services can be purchased almost 24/7, from countless platforms and devices.
True
False
False
this is ubiquity
For digital products or services,
very limited economies of scale can be realised.
nearly unlimited economies of scale can be realised.
nearly unlimited economies of scale can be realised.
Which statement is NOT CORRECT?
A company makes maximum profit when it sets its production output to the level where the marginal cost meets the marginal revenue or market price.
In traditional (non E-business) industries, the marginal cost, such as the cost of producing an extra product or assembling an extra car, increases as the production capacity becomes stretched.
For digital products or services, most of the costs are variable costs and incurred late in the process.
For digital products or services, we almost have near-zero marginal cost.
For digital products or services, most of the costs are variable costs and incurred late in the process;
in the digital realm, the emphasis is often on upfront investment and fixed costs associated with creating the product or service.
