Chapter 1 - Intro to Electronic Commerce - ECRQ
Briefly describe the functions performed by a freight forwarder in international electronic commerce.
A company that arranges shipping and insurance for international transactions
What is crowdsourcing?
A group of websites used to gather multiple small investors together for specific business funding activities
What specific internet technologies led to a growth in electric commerce in developing countries during the third wave of electronic commerce?
A massive growth in the number of mobile phone users, with first time access to online business transactions
In what specific ways can businesses use online social interactions?
Advertisement, promotion, and suggestion
Briefly explain why an online business can find it difficult to establish trust with its customers
Because conducting transactions online provides a kind of anonymity, customers have an inherent lack of trust in strangers
What drove the burst of enthusiasm that led to a rapid growth of investment in online business during the first wave of electronic commerce?
Between 1997 and 2000, over 12,000 internet-related businesses were started with more than 100 billion of investors' money. Others didn't want to miss out on what might be the investment of a lifetime.
Briefly explain the difference between a business model and a revenue model?
Business model, processes combined to achieved the company's primary goal. Revenue model, processes utilized to identify customers, market to them, and generate sales
List several activities that may be considered a part of business-to-government electronic commerce
Business transactions with government agencies, like paying taxes, filing forms
What are the two main categories of electronic commerce?
Business-to-consumer (B2C) & Business-to-business (B2B)
What is a network economic structure?
Companies coordinate their strategies, resources, and skill sets by forming long-term stable relationships with other companies and individuals based on shared purchases
List 4 primary activities that might be conducted in a particular business value chain?
Design, produce, promote, & market
Name the technology that businesses have used since the 1960s to exchange transaction information electronically
EFTs (electronic funds transfers), aka wire transfers
How can online businesses use data analytics to increase sales?
Information can be used to improve their operations and customer interactions leading to increased sales
What are some drawbacks to a strategy that attempts to capitalize on the first-mover advantage?
Investors may be overly excited to get in on the next big thing, no matter the cost or idea.
In what ways does localization differ from language translation?
It is translation that takes into account the local environment, such as business and cultural practices, as well as dialect variations
List several activities that may be considered business processes
Tasks performed by an employee doing their job, transactions, a collection of related, structured tasks that produce a specific service or product, Purchase, sale, or conversion of raw materials into finished product
What is a shipping profile?
The collection of attributes that determine how easily a product can be packaged and delivered
Briefly explain why many industry observers believe that describing the history of electronic commerce as a series of "booms and busts" is incorrect?
This is because what seemed to be a collapse in retrospect was actually just a minor slowdown in growth.
Why is most business activity conducted today in hierarchical organizations rather than in markets?
Transaction costs
What is a value added network?
aka VAN, an independent firm that offers connection and transaction-forwarding services to buyers and sellers engaged in EDI
