Test Answers on MIS Chapter 5 – Flashcards
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Electronic Commerce
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electronic commerce is commerce accelerated and enhanced by IT. It enables customers, consumers, and companies to form powerful new relationships that would not be possible without the enabling technologies
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Path to Profitability
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a path to profitability is a formal business plan that outlines key business issues such as customer targets, marketing strategies, operations strategies,and projected targets for income statement and balance sheets
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What are the 9 major e-commerce business models?
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The 9 major e-commerce business models are: 1. Business to Business 2. Business to Consumer 3. Business to Government e-commerce 4. Consumer to Government e-commerce 5. Consumer to Consumer 6. Consumer to Business 7. Government to Business e-commerce 8. Government to Consumer e-commerce 9. Government to Government
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Business to Business E-Commerce
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occurs when a business sells products and services to customers who are primarily other businesses
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Business to Consumer E-Commerce
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occurs when a business sells products and services to customers who are primarily individuals
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Consumer to Business E-Commerce
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occurs when an individual sells products and services to a business
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Consumer to Consumer E-Commerce
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occurs when an individual sells products and services to another individual
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To gain a competitive advantage and be successful in any business you must do what 3 things?
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To gain a competitive advantage and be successful in any business you must: 1. Clearly define the nature of your products and services 2. Know who your target customers are 3. Understand how your customers perceive the use of your products and services in their business actvities
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To create sound business strategies you have to what?
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To create sound business strategies you have to understand the value that your customers place on your products and services
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B2C: Convenience v Specialty
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you can differentiate between convenience and specialty merchandise on the basis of price and customers frequency of purchase
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B2C: Commoditylike and Digital
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the best merchandise to sell is either commoditylike, digital, or a combination of the two
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B2C: Mass Customization
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the ability of an organization to give customers the opportunity to tailor its product or service to the customer's specifications
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B2B: MRO v Direct
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maintenance, repair,and operations materials are materials that are necessary for running a modern corporation, but do not relate to the company's primary business activities. Direct materials are used in production in a manufacturing company or are placed on the shelf for sale in a retail environment.
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B2B: Horizontal v Vertical
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A horizontal e-marketplace is an electronic marketplace that connects buyers and sellers across many industries, primarily for MRO materials commerce. A vertical e-marketplace is an electronic marketplace that connects buyers and sellers in a given industry
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Marketing Mix
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the set of marketing tools that your organization will use to pursue its marketing objectives in reaching and attracting potential customers
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Viral Marketing
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viral marketing encourages users of a product or service supplied by a B2C e-commerce business to encourage friends to join as well
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Affiliate Program
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an affiliate program is an arrangement made between two e-commerce sites that directs viewers from one site to another
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Click-through
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a click-through is a count of the number of people who visit one site, click on an ad, and are taken to the site of the advetiser
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Conversion Rule
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the percentage of potential customers who visit your site who actually buy something
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Financial Cybermediary
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an internet based company that makes it easy for one person to pay another person or organization over the internet... an example of a financial cybermediary would be paypal
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Smartcard
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a smartcard is a plastic card the size of a credit card that contains an embedded chip on which digital information can be stored and updated
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Electronic Data Interchange
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in the B2B model, another business wants to order products and services from your organization via electronic data interchange. Electronic data interchange is the direct computer to computer transfer of transaction information contained in standard business documents, such as invoices.
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Financial Electronic Data Interchange
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the electronic process used primarily within the B2B e-commercefor the payment for purchases
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Encryption
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encryption scrambles the contents of a file so that you can't read it without having the right decryption key. Public key encryption's include multiple keys.
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Secure Socket Layers
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a secure socket layer creates a secure and private connection, encrypts the information and then sends the information over the internet
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What are the 4 trends that will one day radically transform all industries?
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the 4 trends that will one day radically transform all industries are: 1. Long Tail Economics 2. Crowdsourcing 3. Virtual Goods 4. Mobile Commerce
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The Long Tail
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the long tail is a term first offered by Chris Anderson and it refers to the tail of a sales curve
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E-Commerce businesses that can reach the audience in the ____ ____ can do so without the typical brick and mortar retail costs and expenses.
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Long Tail. E-Commerce businesses that can reach the audience in the LONG TAIL can do so without the typical brick and mortar retail costs and expenses.
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Crowdsourcing
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when businesses provide enabling technologies that allow people instead of employees, to create, modify, and oversee the development of a product or service.
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Is crowdsourcing only limited to the internet?
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No. Crowdsourcing is not only limited to the internet
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Virtual Goods
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a virtual good is a nonphysical object such as the music in an iTunes account
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Mobile Computing
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mobile computing is a broad general term describing your ability to use technology to wirelessly connect to and use centrally located information and/or application software. Mobile computing is all about wireless connectivity
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Mobile Commerce
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mobile commerce describes electronic commerce conducted over a wireless device such as a laptop, smartphone, or tablet
