chapter 9 study set

question

Name and describe four business trends shaping e-commerce today.
answer

1. Social Networking – this contributes to a massive online audience that is attractive to marketers. 2. Online Advertising – grows twice as fast as TV and print advertising 3. Online Newspapers and Traditional Media – have adopted to interactive models and some have made their service subscription-based. 4. Online Entertainment Business Models – They offer television, movies, music, sports, and eBooks in cooperation with the major copyright owners.
question

Name and describe three technology trends shaping e-commerce today.
answer

Social commerce – is the use of social networks (Facebook, Etsy, Ebay) in the context of e-commerce transactions. Mobile commerce – the use of wireless devices to conduct both business to consumer and business to business e-commerce transactions over the Internet. Local Commerce – Using GPS-enabled devices to provide location-specific services to consumers.
question

List the eight unique features of e-commerce.
answer

Ubiquity, Global Reach, Universal Standards, Richness, Interactivity, Information Density, Personalization/Customization , Social Technology
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Ubiquity feature
answer

The Internet is available anywhere via mobile devices
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Global reach feature
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It reaches across national boundaries around the earth.
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Universal standards feature
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It has one set of Internet Standards.
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Richness feature
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Video, audio, and text messages are possible.
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Interactivity feature
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It works through interaction with the user.
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Information density feature
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It reduces information costs and raises quality.
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Personalization/Customization feature
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It allows personalized messages to be delivered to individuals and groups.
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Social Technology feature
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User can generate content and engage in social networking.
question

Name 7 principal e-commerce business models.
answer

1.E-tailor, 2.Transaction Broker, 3.Market Creator, 4.Content Provider, 5.Community Provider, 6.Portal, 7.Service provider
question

Description and example of e-tailor
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Sells physical products directly to consumers, Amazon
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Description and example of transaction broker
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Processes and charges for online sales transactions, expedia
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Description and example of market creator
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Provides digital and interactive marketplace, eBay
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Description and example of content provider
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Provides digital content, can be paid by consumer or advertiser, Itunes
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Description and example of Community provider
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Provides online meeting place for communication and information, Facebook
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Description and example of portal
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Provides initial point of entry to the Web, yahoo
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Description and example of service provider
answer

Provides Web 2.0 apps, storage, and backups, Google apps
question

six e-commerce models
answer

1 – Advertising Revenue Model, 2 -Sales Revenue Model, 3 -Subscription Revenue Model, 4 – Free/Fremium Revenue Model, 5 – Transaction Fee Revenue Model, 6 – Affiliate Revenue Model
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Advertising Revenue Model
answer

Revenue is generated by attracting a large audience of visitors who are exposed to advertisements.
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sales revenue model
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Revenue is generated by selling goods, information, or services.
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subscription revenue model
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Subscription fees are charged for access to some or all content.
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Free/freemium revenue model
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Free basic content is offered, but premium content is charged.
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Transaction fee revenue model
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A fee is charged for enabling or executing a transaction.
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Affiliate revenue model
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Website visitors are sent to other websites in return for a fee or percentage of sales revenue.
question

two ways social networking and “the wisdom of crowds” help companies improve their marketing
answer

Crowdsourcing and prediction markets
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What is crowdsourcing?
answer

using large Internet audiences to learn how to improve product offerings and increase customer value.
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What happens in prediction markets?
answer

participants make bets on how a product or service will succeed.
question

Define the social graph
answer

is a map of all significant online social relationships, comparable to a social network describing offline relationships.
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How is social graph used in e-commerce marketing.
answer

the products and services you buy will influence the decisions of your friends, and vice versa
question

Explain how Internet technology supports business-to-business electronic commerce.
answer

enables companies to locate suppliers, solicit bids, place orders, and track shipments in transit electronically.
question

four m-commerce services and applications
answer

Location-Based services, Banking and Financial services, Mobile Advertising and Retailing, Games and Entertainment
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location-based services
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Uses GPS technology to identify your precise location
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banking and financial services
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Allows customers to manage their financial accounts on a mobile device
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Mobile Advertising and Retailing
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Identifying cell-phone users for location-based advertisements
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Games and Entertainment
answer

Offering downloadable and streaming digital content
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3 barriers to m-commerce.
answer

less Safety and security, lack of connectivity, and small screen size
question

Building a successful e-commerce requires what two things?
answer

clear understanding of business objectives and the right technology to achieve those objectives.
question

List four business objectives of a typical e-commerce Web site.
answer

1. Display Goods 2. Provide Content (product information) 3. Personalize/Customize Product 4. Execute a transaction payment
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List four system functionalities of a typical e-commerce Web site.
answer

1. Digital catalog 2. Product Database 3. Customer on-site tracking 4. Shopping Cart/payment system
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List and describe four information requirements of a typical e-commerce Web site.
answer

1. Dynamic text and graphics catalog 2. Product description, stocking numbers, and inventory levels 3. A site log for every customer visit 4. Secure credit card clearing and multiple payment options
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What are the information requirements for a system
answer

the information elements that the system must produce in order to achieve the business objectives.
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What are business objectives for a website?
answer

are simply capabilities that you would want your site to have.
question

System capabilites are what?
answer

types of information systems capabilities you will need to achieve your business objectives.

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