MIST Chapter 9 Exam Questions with Complete Solutions

Ecommerce - Answer-Buying and selling of goods and services over public and private computer networks. This definition restricts it to buying and selling transactions. Checking the weather at is not ecommerce, but buying a weather service subscription that is paid for and delivered over the Internet is. Has a number of implications: Technology perspective ,Management and governments perspective. Technology perspective: Defines the need for additional infrastructure. Management and governments perspective: Coordination for smooth business operations, Security must be enabled. Ecommerce Categories - Answer-Merchant companies: that take title to the goods they sell, buy goods and resell them, sell services that they provide. Nonmerchant companies: arrange for the purchase and sale of goods without ever owning or taking title to those goods, sell services provided by others. Ecommerce Merchant Companies - Answer-Business-to-Consumer (B2C), Business-to-Business (B2B), Business-to-Government (B2G) Business-to-Consumer (B2C) - Answer-Sales between a supplier and a retail customer (the consumer) Business-to-Business (B2B) - Answer-Sales between companies Business-to-Government (B2G) - Answer-Sales between companies and governmental organizations Nonmerchant Ecommerce - Answer-E-commerce auctions, Clearinghouses, Electronic exchanges E-commerce Auctions - Answer-match buyers and sellers by using an ecommerce version of a standard auction Clearinghouses - Answer-provide goods and services at a stated price and arrange for the delivery of the goods, but they never take title Electronic Exchanges - Answer-match buyers and sellers; the business process is similar to that of a stock exchange Benefits of Ecommerce - Answer-Disintermediation-Manufacturer to Consumer Challenges of Ecommerce - Answer-Price conflict, Logistics expense, Customer service expense, Showrooming, Taxation