Formal definition of e-commerce - Correct Answer the use of the internet, the web and mobile apps and browsers running on mobile devices to transact business. More formally, digitally enabled commercial transactions between and among organizations and individuals
Definition of e-business - Cor...
MISY 5350 - Exam 1 Exam
Questions With Solutions
Formal definition of e-commerce - Correct Answer the use of the internet, the web and
mobile apps and browsers running on mobile devices to transact business. More
formally, digitally enabled commercial transactions between and among organizations
and individuals
Definition of e-business - Correct Answer the digital enabling of transactions and
processes within a firm, involving information systems under the control of the firm
Example of e-business - Correct Answer a company's online inventory control
mechanism
Digital commerce - Correct Answer same as e-commerce
Information asymmetry - Correct Answer any disparity in relevant market information
among parties in a transaction
Unique features of e-commerce technology - Correct Answer 1. Ubiquity
2. Global reach
3. Universal standards
4. Information richness
5. Interactivity
6. Information density
7. Personalization/customization
8. Social technology
Ubiquity - Correct Answer -available just about everywhere, at all times
-reduces transactions costs (the costs of participating in a market)
-lowers the cognitive energy (the mental effort required to complete a task), to transact
in a marketspace (a marketplace (physical place you visit in order to transact) extended
beyond traditional boundaries and removed from a temporal and geographic location)
-E-commerce technology is available everywhere, anytime
Global Reach - Correct Answer -The total number of users or customers an e-
commerce business can obtain
-The technology reaches across national boundaries, around the earth
Universal Standards - Correct Answer -standards that are shared by all nations around
the world
- the unit technical standards of e-commerce greatly lower market entry costs (cost
merchants pay just to bring their goods to market)
-for consumers, reduced search costs ( the error required to find suitable products)
,-business and individual users experience network externalities (benefits that arise
because everyone uses the same technology)
-There is one set of technology standards
Richness - Correct Answer -the complexity and content of a message
-Video, audio and text messages are possible
Interactivity - Correct Answer -technology that allows for two-way communication
between merchant and consumer
-the technology works through interaction with the user
Information Density - Correct Answer -the total amount and quality of information
available to all market participants
-price transparency (ease with which consumers can find out the variety of prices in a
market)
-cost transparency (ability of consumers to discover the actual costs merchants pay for
products)
-price discrimination (selling the same goods, or nearly the same goods, to different
targeted groups at different prices
-The technology reduces information costs and raises quality
Personalization/Customization - Correct Answer -personalization (the targeting of
marketing messages to specific individuals by adjusting the message to a person's
name, interests, and past purchases
-customization (changing the delivered product or service based on a user's
preferences or prior behavior
-allow firms to precisely identify market segments and adjust their messages
accordingly
-The technology allows personalized messages to be delivered to individuals as well as
groups
Social Technology - Correct Answer -e-commerce technologies have evolved to be
more social by allowing users to crat a share content with worldwide community, by
being able to create new social networks and strengthen existing ones.
-User-generated content and social networks
Business-to-Consumer (B2C) e-commerce - Correct Answer online businesses selling
to individual consumers, includes purchases of retail goods, travel, financial, real estate,
and other types of services and online content.
Consumer-to-Consumer (C2C) e-commerce - Correct Answer consumers selling to
other consumers, with the help of an online market maker (also called a platform
provider)
Mobile e-commerce (m-commerce) - Correct Answer -use of mobile devices to enable
online transactions
, -conversational commerce (variation of m-commerce, use of chatbots on mobile
messaging apps as a vehicle for companies to engage with consumers)
Social e-commerce - Correct Answer -e-commerce enabled by social networks and
online social relationships
-often intertwined with m-commerce as social networks are being accessed via mobile
devices
Types of e-commerce - Correct Answer B2C - Amazon
B2B - Go2Paper
C2C - eBay, Etsy and Craiglist
M-commerce - Mobile devices
Social e-commerce - Facebook
Local e-commerce - Groupon
Disintermediation - Correct Answer displacement of market middlemen who
traditionally are intermediaries between producers and consumers by a new direct
relationship between producers and consumers
Friction free commerce - Correct Answer 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
first mover - Correct Answer -a firm that is first to market in a particular area and that
moves quickly to gather market share
-examples
Web 2.0 - Correct Answer a set of applications and technologies that enable user-
generated content
Webrooming - Correct Answer Consumers use the Web as a powerful source of
information about products they often actually purchase through other channels, such
as at a traditional bricks-and-mortar store; "ROBO" (research online, buy offline), or
O2O (online-to-offline)
What is e-commerce? - Correct Answer E-commerce involves digitally enabled
commercial transactions between and among organizations and individuals
How does it differ from e-business? - Correct Answer E-business refers primarily to the
digital enabling of transactions and processes within a firm, involving information
systems under the control of the firm. For the most part, unlike e-commerce, e-business
does not involve commercial transactions across organizational boundaries where value
is exchanged.
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