MIS Chapter 10 – Not editable

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advertising revenue model
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website generating revenue by attracting a large audience
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affilitate revenue model
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an e-commerce revenue model in which web sites are paid as \”affiliates\” for sending their cisitors to other sites in return for a referral fee
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behavioral targeting
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tracking the click-streams (history of click behavior) of individuals across multiple web sites for the prupose of understanding their interests and intentions, and exposing theing to adverstisements which are uniquely suited to their interests
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business-to-business (B2B)
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electronic commerce involving retailing products and services to individual shoppers
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business-to-consumer (B2C)
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electronic commerce involving sales of goods and services among businesses
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community providers
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a web site busienss model that reates a digital online necironment where people withsimilar interests can transact (buy and sell goods); share interests, photots, videos; communicate with like-minded people; receive interest-related information; and even play out fantasies by adopting online personalities called avatars
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consumer-to-consumer (C2C)
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electronic commerce where consumers sell goods and services electronically to other customers
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cost transparency
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the ability for consumers to discover the actural costs merchants pay for products
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crowdsourcing
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using large internet audiences for advice, market feedback, new ideas, and solutions to business problems. Related to the ‘wisdom fo the crowds’ theory
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customization
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in e-commerce, chaning a delivered prodcut orserce based on a user’s preferences or prior behavior
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digital goods
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goods that can be delivered over a digital network
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direct goods
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used in the productionprocess, such as sheet steel for auto body production
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disintermediation
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the removal of organizations or business process layers responsible for certrain intermediary steps in a value chain
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dynamic pricing
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pricing of items based on treal-time interaction between buyers and sellers that determine what an item is worth at any particular moment
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electronic data interchagne (EDI)
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the direct computer-to-computer exchange between two organizations of standard business transactions, such as orders, shipments instructions, or payments
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e-tailer
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online retail stores from the gian Amazon to tiny local stores that have web sites where retail goods are sold
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exchanges
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third party net markteplave that is primarily transaction oriented and that connects many buyers and suppliers for spot purchasing
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free/freemium revenue model
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an e-commerce revenue model in which a firm offers casic services or content for free, while charging a premium for advanced or high value features
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geoadvertising services
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delivering ads for the users based on their GPS location
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geoinformation services
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information on lcoal places and things based on the GPS location of the user
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geosovcial services
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social networking based on the gps location of users
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indrect goods
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all other goods not directly involved in the production process, such as office supplies or products for maintenance and repair
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information asymmetry
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situation where the relative bargaining power of two parties in a transaction is determined by one party in the transaction possessing moreinformation essential to the transaction that the other party
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information density
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the total amount and quality of information available to all amrkeet partificpant , consumers, and merchants
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intellectural property
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intangible property created by individuals or coprorations that is subject to protections under trade secret, copyright, and patent law
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location-based services
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GPS map sercies available on smartphoens
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long tail marketing
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refers to the ability of firms to profitably market goods to very small online audiences, larfely because of the lower costs of reaching very small market segments
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market creator
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an e-commerce busines model in which firms provide a digital online environment where buyers and sellers can meet, search for producrs, and engage in transactions
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market entry costs
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the costs merchants msut pay to bring their goods to market
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marketspace
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a marketplace extended beyong traditional boudaries and removed from a temporal and geographic locations
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menu costs
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merchants’ costs of chanig prices
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micropayment systems
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provide content providers with a cost-effective method for processing high volume of very small monetary transactions (anywhere form 25 cents to $5.00 per transaction)
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mobile commerce (m-commerce)
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the use of wireless devices, such as cell phones or handheld digital information appliances, to conduct both B2C and B2B e-commerce transactions over the internet
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net marketplaces
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a single digital marketplace based on internet technology linking many buyers to many sellers
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personlization
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ability of merchants to target marketing messages to specific individuals by adjusting the message for a person’s name, interests, and past purchases
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podcasting
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publishing audio broadcasts via the internet so that subscribing users can download audio files onther their personal computers or portable music players
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prediction market
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an analysis of the portfolio of potential applications within a firm to determine the risks and benefits, and to select among alternatives for information systems peer-to-peer betting markets on specific outcomes
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price discrimination
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selling the same goods, or nearly the same goods, to different targeted groups at different prices
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price transparency
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the ease with which consumers can find out the variety of prices in a market
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private exchange
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another term for private industrial networks
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private industrial networks
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web-enabled networks linking systems of multiple firms in an industry for the coordination of trans-organizational business processes permits sharing of: – Product design and development – Marketing – Production scheduling and inventory management – Unstructured communication (graphics and e-mail)
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revenue model
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a description of how a firm will earn revenue, generate profits, and produce a return on investment
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richness
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measurement of the depth and detail of information that a buiness can supply to the customer as well as information the business collects about the customer
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sharing economy
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a market creator building a digital platform where supply meets demand example: Uber (spare auto capacity finds users who needs transportation)
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sales revenue model
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selling goods, information, or services to customers as the main sources of revenue for a company
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seach costs
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the time and money spent locating a suitable product and determining the best price for that product
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social graph
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map of all significant online social relationships, comparable to a social network descigin offline relationships
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social shopping
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use of web sites featuring user-created web pages to share knowledge about items of interest to other shoppers
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streaming
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a publishing method for music and video files that flows a continuous stream of content to a user’s device without being stored locally on the device
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subscription revenue model
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web site charging a subscription fee to access to some of all of its contetnt or services on an ongoing basis
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transaction costs
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costs incurred when a firm buys on the marketplace what it cannot make itself
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transaction fee revenue model
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an online e-commerce revenue model where the firm receive a fee for enabling or executing transactions
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wisdom of crowds
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the belief that large numbers of people can make better decisions about a wide range of topics or products than a single person or even a small committee of experts first proposed in a book by James Surowiecki
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– Enable businesses to promote brand awareness and refer back to retail sites for purchasing – \”Promoted pins\”: Paid advertising with fees charged if user clicks through to firm’s Web site – buy buttons *** All demonstrate use of social networking technologies in generating new business models
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How to derive profits from large and desirable user base?
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e-commerce
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use of internet and web to conduct business transactions
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– Ubiquity – Global reach – Universal standards – Richness – Interactivity – Information density – Personalization/customization – Social technology
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unique features of e-commcer, digital markets, and digital goods (8 of them)
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– Reduces information asymmetry – Offers greater flexibility and efficiency (b/c of reduced search costs and transaction costs, lower menu costs, greater price discrimination, dynamic pricing) – May reduce or increase switching costs – May delay gratification: effects dependent on product – Increased market segmentation – Stronger network effects – More disintermediation
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effect of internet on the marketplace
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portal revenue
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revenue from advertising
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content provider revenue
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revenue from access fees, advertising
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service provider revenue
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revenue from subscription, advertising

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