M10

Question 1

Use of the Internet and web to transact business that began in 1995 and grew
exponentially; still stable even in a recession

• Companies that survived the dot-com bubble now thrive
• The new e-commerce: social, mobile, local
• Move from desktop to smartphone

Answer 1

e-commerce

Question 2

why is e-commerce different?

Answer 2

1. ubiquity
2. global reach
3. universal standards
4. richness
5. interactivity
6. info density
7. personalization/customization
8. social technology

Question 3

• Marketspace is virtual
• Transaction costs reduced

Answer 3

ubiquity

Question 4

Transactions cross cultural and national boundaries

Answer 4

global reach

Question 5

One set of technology standards: Internet standards

Answer 5

universal standards

Question 6

Supports video, audio, and text messages

Answer 6

Richness

Question 7

• Greater price and cost transparency
• Enables price discrimination

Answer 7

information density

Question 8

Technology permits modification of messages, goods

Answer 8

personalization/customization

Question 9

Promotes user content generation and social networking

Answer 9

social technology

Question 10

• Goods that can be delivered over a digital network
• Cost of producing first unit is almost entire cost of product
• Costs of delivery over the Internet very low
• Marketing costs remain the same; pricing highly variable
• Industries with digital goods are undergoing revolutionary changes

Answer 10

digital goods

Question 11

3 major types of e-commerce

Answer 11

• Business-to-consumer (B2C)
• Business-to-business (B2B)
• Consumer-to-consumer (C2C

Question 12

Fastest growing media for branding and marketing

Answer 12

social media