Chapter 5: E-Commerce Strategies – Flashcards
Unlock all answers in this set
Unlock answersquestion
E-Commerce
answer
accelerated and enhanced by IT, enabling new and powerful relationships to form.
question
E-Commerce vs. Brick and mortar
answer
E-Commerce breaks down business barriers like time, geography, language, currency + culture
question
Path To Profitability (P2P)
answer
formal business plan outlining issues like customer targets, marketing strategies, operations strategies and projected targets for income statement and balance sheet items
question
What was the major error that most dot-com businesses made?
answer
They never developed a clear P2P
question
Nine E-Commerce Business Models
answer
B2B, B2C, B2G, C2B, C2G, C2C, G2G, G2B, G2C
question
B2B
answer
behind the scenes interacitons to support interacting with its customers
question
B2B E-Marketplaces
answer
businesses buy from and sell products to each other, share information (information partnerships), and perform other activities to offer tremendous efficiency
question
Difference between B2C and B2B
answer
B2C: consumers interact with many businesses to purchase the same types of products and services from many different businesses, while B2B engages in long term partnerships.
question
C2B
answer
inversion of the traditional supply and demand model. with affiliate programs this C2B is expected to grow as businesses realize that individuals are more than just consumers of products and services (ex: blogging)
question
C2C
answer
usually takes place through an intermediary organization, which is usually a hybrid since they facilitate the gathering of people with common interests and something to share. Many of these derive their revenue by selling advertising space.
question
Ad-supported C2C E-Commerce
answer
derive revenue as an intermediary organization by selling advertising space like an affiliate program
question
3 E-Commerce Critical Success Factors
answer
1-Understand your business and customers 2-Find and ESTABLISH RELATIONSHIPS with customers 3-MOVE MONEY easily and securely
question
Define these 3 things to be successful
answer
products + services, your target customers (B2B, B2C), your customers perceived value from your products + services
question
Convenience versus specialty
answer
Different based on price and consumers' frequency of purchase
question
Convenience
answer
lower price, higher frequency
question
Specialty
answer
higher price, lower frequency
question
Commoditylike
answer
same product no matter where you purchase it, price and ease of order is important. this market is easy for businesses to enter and buying power is high
question
Digital purchases
answer
No shipping or inventory costs, highly customizable
question
mass customization
answer
provides customers with the ability to tailor the product/service. it's a key advantage regardless of other customer value perceptions because you're dealing with many customers with unique tastes and needs.
question
Indirect materials
answer
maintenance, repair and operation materials. These are unrelated to a business' primary business activities
question
MRO materials
answer
necessary to run a company, not related to the company's primary business activities
question
Direct materials
answer
Relate to a company's primary business activities, so it is important that they receive exactly what they need as far as quality, quantity and timing of delivery of these direct materials.
question
Electronic marketplace
answer
an interactive business providing a central market space where multiple buyers and suppliers can engage in business activities
question
horizontal e-marketplace
answer
connects buyers and sellers across many industries (primarily for MRO materials commerce)
question
demand aggregation
answer
combining purchase requests from multiple buyers which justifies a larger discount
question
vertical e-marketplace
answer
connects buyers + sellers in a given industry
question
Components of a B2C market
answer
varying demograhics/lifestyles, convenience vs. specialty, commoditylike and digital work best, mass customization is sometimes necessary
question
Components of a B2B market
answer
MRO vers direct materials, demand aggregation is present, e-marketplaces are vital
question
affiliate program
answer
arrangement between tow e-commerce sites that directs viewers from one site to another
question
conversion rate
answer
percentage of potential customers who visit your site and actually buy something
question
B2B Marketing
answer
Much more personal, this isn't really done with ads designed for mass distribution
question
Financial cybermediary
answer
internet based company that makes it easy for one person to pay another person/organization online
question
electronic check
answer
online banking allows you to send money from your checking account to another person/organization
question
EBPP
answer
electronic bill presentment and payment system that sends bills over the internet and provides easy to use mechanisms to pay for htem
question
smart card
answer
plastic card with an embedded chip where digitial information can be stored and updated. the chip contains information about how much money you have.the swiping device deducts the purchase amount from the amount you have stored on the chip.
question
digital wallet
answer
software and information. software provides secruity for the transaction, information includes payment and delivery information.
question
client side digital wallet
answer
created and stored on your computer to be used at different e-commerce websites
question
server-side digital wallet
answer
AKA thin wallet, is created by an organization about you and maintains this on their server to verify your CC transactions.
question
two payment systems for B2B
answer
financial EDI and large aggregated amounts
question
EDI
answer
electronic data interchange is the direct computer to computer transfer of transaction information in standard business documents (invoices, purchase orders)
question
VAN
answer
value added network, a B2B service offering information haring intermediary services between orgs
question
Financial EDI
answer
Financial Electronic Data Interchange is the electronic process used primarily in B2B for payment for purchases
question
Encryption
answer
scrambles contents of a file so that you need the right decryption key to read it
question
PKE
answer
(Public Key Encryption) has a public key and a private key, for the recipient. The public key is given to the customers and customers use the public key to encrypt their information and send it along the internet. When it arrives to the destination, the org would use the private key to unscramble the encrypted information.
question
SSL
answer
(Secure Sockets Layer) creates a secure connection between a web client and server, encrypts the information and then send the information over the internet.
question
SSL used widely by
answer
B2C e-commerce
question
Identify the SSL
answer
web address "https" and/or the presence of a lock icon
question
SET
answer
(Secure Electronic Transaction) ensures that transactions are legitimate and secure. It takes SSL a step further by verifying a customer's identity by securely transmitting CC information to the business that issued the CC for verification.
question
Long Tail Concept
answer
Profitability refers to the tail of a sales curve, which these e-commerce businesses capitalize on because they can reach this audience without the brick and mortar costs + expenses. They can carry niche products.
question
Crowdsourcing
answer
businesses provide enabling technologies that allow people to create, modify and oversee the development of a product/service.
question
Mobile computing
answer
using wireless connectivity to use centrally located information
