chapter 7

7.5e The Federal Financial Institutions Examination Council has developed a set of guidelines called ...

"Authentication in an Internet Banking Environment," which recommend two-factor authorization

7.2e Within _____ days after the Target data breach was announced, the first lawsuit was filed. The California class action lawsuit claims that Target was negligent in its failure to implement and maintain reasonable security procedures and practices. A second lawsuit claims that Target broke Minnesota law by not alerting customers quickly enough after learning of the security issue. A third lawsuit was filed in California alleging both negligence and invasion of privacy

2

7.3a Wholesale e-commerce spending now represents more than ____ percent of all wholesale sales revenue, according to a 2015 survey

40

7.5e Transport Layer Security (TLS)

A communications protocol or system of rules that ensures privacy between communicating applications and their users on the Internet.

7.4c storefront broker

A company that acts as an intermediary between your Web site and online merchants who have the products and retail expertise.

7.5e p-card (procurement card or purchasing card)

A credit card used to streamline the traditional purchase order and invoice payment processes.

7.1b Business-to-consumer (B2C) e-commerce

A form of e-commerce in which customers deal directly with an organization and avoid intermediaries.

7.1a Business-to-business (B2B) e-commerce

A subset of e-commerce in which all the participants are organizations.

7.1c Consumer-to-consumer (C2C) e-commerce

A subset of e-commerce that involves electronic transactions between consumers using a third party to facilitate the process

7.5e certificate authority (CA)

A trusted third-party organization or company that issues digital certificates.

7.3d ___________ are keenly interested in this data to measure the effectiveness of their advertising spending, and many organizations are willing to pay extra to purchase the data from a mobile ad network or a third party.

Advertisers

7.2d _______ _______ _________ have been received from each supplier, the employee examines them and indicates by clicking the request-for-quotation form which items to order from a given supplier.

After price quotations

7.3g _______ of the major banks and many of the smaller banks in the United States enable their customers to pay bills online, and most support bill payment via mobile devices. Banks are eager to gain more customers who pay bills online because such customers tend to stay with the bank longer, have higher cash balances, and use more of the bank's products and services. To encourage the use of this service, many banks have eliminated all fees associated with online bill payment.

All

7.4c meta tag

An HTML code, not visible on the displayed Web page, that contains keywords representing your site's content, which search engines use to build indexes pointing to your Web site.

7.5e Electronic cash

An amount of money that is computerized, stored, and used as cash for e-commerce transactions.

7.5e digital certificate

An attachment to an email message or data embedded in a Web site that verifies the identity of a sender or Web site.

7.3b electronic exchange

An electronic forum where manufacturers, suppliers, and competitors buy and sell goods, trade market information, and run back-office operations.

7.3c __________ of this data is complicated because of the Web's interactivity and because each visitor voluntarily provides or refuses to provide personal data such as name, address, email address, telephone number, and demographic data.

Analysis

7.5b The two most widely used Web server software packages are ...

Apache HTTP Server and Microsoft Internet Information Services.

7.1a Although the business-to-consumer market grabs more of the news headlines, the ________ market is considerably larger and is growing more rapidly. B2B sales within the United States were estimated to be over $780 billion in 2015, twice the size of B2C commerce.

B2B

7.1a Moving more customers online is key to _____ commerce success, so in addition to investing in new technologies, ____ companies are focusing on new ways of engaging their customer across multiple channels—both online and offline.

B2B

7.2d _______ e-commerce systems need to support negotiation between a buyer and the selected seller over the final price, delivery date, delivery costs, and any extra charges.

B2B

7.3c In the past, market segmentation has been difficult for ________ marketers because firmographic data (addresses, financials, number of employees, and industry classification code) was difficult to obtain

B2B

7.1b By using ____ e-commerce to sell directly to consumers, producers or providers of consumer products can eliminate the middlemen, or intermediaries, between them and the consumer.

B2C

7.1b Many ____ merchants have also added social commerce or social shopping tools to their own sites.

B2C

7.2e A company must overcome many challenges to convert its business processes from the traditional form to e-commerce processes, especially for _______ e-commerce

B2C

7.1a _______-________ ___________-_________ activities include identifying and comparing competitive suppliers and products, negotiating and establishing prices and terms, ordering and tracking shipments, and steering organizational buyers to preferred suppliers and products.

Buy-side e-commerce

7.5e The ____ is responsible for guaranteeing that the people or organizations granted these unique certificates are in fact who they claim to be. Digital certificates thus create a trust chain throughout the transaction, verifying both purchaser and supplier identities.

CA

7.1d _________ can use G2C applications to submit their state and federal tax returns online, renew auto licenses, purchase postage, and apply for student loans.

Citizens

7.2e ________ must be prepared to make a substantial investment to safeguard their customers' privacy or run the risk of losing customers and generating potential class action lawsuits should the data be compromised. It is not uncommon for customers to initiate a class action lawsuit for millions of dollars in damages for emotional distress and loss of privacy. In addition to potential damages, companies must frequently pay for customer credit monitoring and identity theft insurance to ensure that their customers' data is secure.

Companies

7.2b ___________ often place high value on different criteria, depending on the type of mobile site. In the OC&C survey, eBay and Amazon ranked highly due to their convenience, effective search tools, and transaction speed. The mobile site for natural cosmetics company Lush was rated highly because it created a strong emotional connection with consumers.

Consumers

7.3g ___________ who have enrolled in mobile banking and downloaded the mobile application to their cell phones can check credit card balances before making major purchases to avoid credit rejections. They can also transfer funds from savings to checking accounts to avoid an overdraft.

Consumers

7.2c ________ to an e-commerce or m-commerce system enables organizations to reach new customers, reduce the cost of doing business, speed the flow of goods and information, increase the accuracy of order processing and order fulfillment, and improve the level of customer service.

Conversion

7.2e Here are some tips to help online shoppers avoid problems: Only buy from a well-known Web site you trust—one that advertises on national media, is recommended by a friend, or receives strong ratings in the media. Look for a seal of approval from organizations such as the Better Business Bureau Online or TRUSTe. See Figure 7.4.

Courtesy Better Business Bureau and TRUSTe Review the Web site's privacy policy to be sure that you are comfortable with its conditions before you provide personal information. Determine what the Web site policy is for return of products purchased. Be wary if you must enter any personal information other than what's required to complete the purchase (name, credit card number, address, and telephone number). Do not, under any conditions, ever provide information such as your Social Security number, bank account numbers, or your mother's maiden name. When you open the Web page where you enter credit card information or other personal data, make sure that the Web address begins with "https," and check to see if a locked padlock icon appears in the Address bar or status bar, as shown in Figure 7.5. Figure 7.5Web Site Security Web site that uses "https" in the address and a secure site lock icon. Microsoft product screenshots used with permission from Microsoft Corporation Consider using virtual credit cards, which expire after one use, when doing business. Before downloading music, change your browser's advanced settings to disable access to all computer areas that contain personal information.

7.2e E-commerce and m-commerce offer enormous opportunities by allowing manufacturers to buy supplies at a low cost worldwide. They also offer enterprises the chance to sell to a global market right from the start. Moreover, they offer great promise for developing countries, helping them to enter the prosperous global marketplace, which can help to reduce the gap between rich and poor countries. People and companies can get products and services from around the world, instead of around the corner or across town. These opportunities, however, come with numerous obstacles and issues associated with all global systems:

Cultural challenges. Great care must be taken to ensure that a Web site is appealing, easy to use, and inoffensive to potential customers around the world. Language challenges. Language differences can make it difficult to understand the information and directions posted on a Web site. Time and distance challenges. Significant time differences make it difficult for some people to be able to speak to customer services representatives or to get technical support during regular waking hours. Infrastructure challenges. The Web site must support access by customers using a wide variety of hardware and software devices. Currency challenges. The Web site must be able to state prices and accept payment in a variety of currencies. State, regional, and national law challenges. The Web site must operate in conformance to a wide variety of laws that cover a variety of issues, including the protection of trademarks and patents, the sale of copyrighted material, the collection and safeguarding of personal or financial data, the payment of sales taxes and fees, and much more.

7.2e Online marketers must create specific trust-building strategies for their Web sites by analyzing their customers, products, and services. A perception of trustworthiness can be created by implementing one or more of the following strategies:

Demonstrate a strong desire to build an ongoing relationship with customers by giving first-time price incentives, offering loyalty programs, or eliciting and sharing customer feedback. Demonstrate that the company has been in business for a long time. Make it clear that considerable investment has been made in the Web site. Provide brand endorsements from well-known experts or well-respected individuals. Demonstrate participation in appropriate regulatory programs or industry associations. Display Web site accreditation by the Better Business Bureau Online or TRUSTe programs.

7.4a __________ forums and other social shopping tools can build a loyal community of people who are interested in and enthusiastic about the company and its products and services. Providing useful, accurate, and timely content, such as industry and economic news and stock quotes, is a sound approach to encourage people to return to your Web site time and again. Commerce involves consumers and businesses paying to purchase physical goods, information, or services that are posted or advertised online.

Discussion

7.3a _______-___________ ____________ for plant operations provides powerful comparative searching capabilities to enable managers to identify functionally equivalent items, helping them spot opportunities to combine purchases for cost savings. Comparing various suppliers, coupled with consolidating more spending with fewer suppliers, leads to decreased costs. In addition, automated workflows are typically based on industry best practices, which can streamline processes.

E-commerce software

7.5e The United States financial institutions elected to implement the chip-and-sign ______ card rather than chip-and-PIN card.

EMV

7.5e Here in the United States, credit cards with only magnetic stripes are being replaced by cards with chips that employ the _______ global standard for working with point-of-sale systems.

EMV (Europay, Mastercard, Visa)

7.1 ______ __________ is the conducting of business activities (e.g., distribution, buying, selling, marketing, and servicing of products or services) electronically over computer networks. It includes any business transaction executed electronically between companies (business-to-business), companies and consumers (business-to-consumer), consumers and other consumers (consumer-to-consumer), public sector and business (government-to-business), public sector to citizens (government-to-citizen), and public sector to public sector (government-to-government).

Electronic commerce (e-commerce)

7.2d ________ ___________ can be used to download software, music, pictures, videos, and written material through the Internet faster and for less expense than shipping the items via a package delivery service. Most products cannot be delivered over the Internet, so they are delivered in a variety of other ways: overnight carrier, regular mail service, truck, or rail. In some cases, the customer might elect to drive to the supplier and pick up the product.

Electronic distribution

7.5d _________ ___________ _________ are a key component of the e-commerce infrastructure.

Electronic payment systems

7.4c _______ __________ techniques capture user-provided information, such as information from warranties, surveys, user registrations, and contest-entry forms completed online.

Explicit personalization

7.2e "Identity theft occurs when someone steals your personal information and uses it without your permission."

Federal Trade Commission (FTC),

7.4a Content, Commerce, and Community

Figure 7.12

7.5 Key Technology Infrastructure Components

Figure 7.13

7.2d Product and Information Flow

Figure 7.3

7.3b Model of an Electronic Exchange

Figure 7.6

7.1d _______ applications support the purchase of materials and services from private industry by government procurement offices, enable firms to bid on government contracts, and help businesses identify government contracts on which they may bid.

G2B

7.1d _______ applications support transactions between government entities, such as between the federal government and state or local governments.

G2G

7.1d ________ ______ ___________ __________ is a suite of Web applications that enables government organizations to report information—such as birth and death data, arrest warrant information, and information about the amount of state aid being received—to the administration of Social Security services.

Government to Government Services Online (GSO)

7.4c _______ ________ techniques capture data from actual customer Web sessions—primarily based on which pages were viewed and which weren't.

Implicit personalization

7.4c the third step to attracting customers

Include meta tags in your site's home page. A meta tag is an HTML code, not visible on the displayed Web page, that contains keywords representing your site's content. Search engines use these keywords to build indexes pointing to your Web site. Keywords are critical to attracting customers, so they should be chosen carefully. They should clearly define the scope of the products or services you offer. Use Web site traffic data analysis software to turn the data captured in the Web log file into useful information. This data can tell you the URLs from which your site is being accessed, the search engines and keywords that find your site, and other useful information. Using this data can help you identify search engines to which you need to market your Web site, allowing you to submit your Web pages to them for inclusion in the search engine's index. Provide quality, keyword-rich content. Be careful not to use too many keywords, as search engines often ban sites that do this. Judiciously place keywords throughout your site, ensuring that the Web content is sensible and easy to read by humans as well as search engines. Add new content to the Web site on a regular basis. Again, this makes the site attractive to humans as well as search engines. Acquire links to your site from other reputable Web sites that are popular and related to your Web site. Avoid the use of low-quality links, as they can actually hurt your Web site's rating.

7.1b More than just a tool for placing orders, the _____ enables shoppers to compare prices, features, and value, and to check other customers' opinions. Consumers can, for example, easily and quickly compare information about automobiles, cruises, loans, insurance, and home prices to find better values

Internet

7.3b One approach taken by many manufacturers to raise profitability and improve customer service is to move their supply chain operations onto the __________.

Internet

7.3f The _________ has revolutionized the world of investment and finance. Perhaps the changes have been so significant because this industry had so many built-in inefficiencies and so much opportunity for improvement.

Internet

7.3g ___-__________ (M for mobile, Pesa for money in Swahili) with some 20 million users worldwide is considered by many to be the most developed mobile payment system in the world. The service is operated by Safaricom and Vodacom, the largest mobile network operators in Kenya and Tanzania. M-Pesa enables users with a national ID card or passport to deposit, withdraw, and transfer money easily with a mobile device. Its services have expanded from a basic mobile money transfer scheme to include loans and savings products, bill pay, and salary disbursements. In 2013, more than 40 percent of Kenya's GDP flowed through M-Pesa.,

M-Pesa

7.2 ________ _________ relies on the use of mobile devices, such as tablets and smartphones, to place orders and conduct business. Smartphone manufacturers such as Apple, Huawei, Lenovo, LG, Samsung, and Xiaomi are working with communications carriers such as AT&T, Sprint/Nextel, T-Mobile, and Verizon to develop wireless devices, related technology, and services to support m-commerce

Mobile commerce (m-commerce)

7.4b When building a Web site, you should first decide which tasks the site must accomplish. Most people agree that an effective Web site is one that creates an attractive presence and that meets the needs of its visitors, which might include the following:

Obtaining general information about the organization Obtaining financial information for making an investment decision in the organization Learning the organization's position on social issues Learning about the products or services that the organization sells Buying the products or services that the company offers Checking the status of an order Getting advice or help on effective use of the products Registering a complaint about the organization's products Registering a complaint concerning the organization's position on social issues Providing a product testimonial or an idea for product improvement or a new product Obtaining information about warranties or service and repair policies for products Obtaining contact information for a person or department in the organization

7.3b Companies can join one of three types of exchanges based on who operates the exchange.

Private exchanges are owned and operated by a single company. The owner uses the exchange to trade exclusively with established business partners. Walmart's Retail Link is such an exchange. Consortium-operated exchanges are run by a group of traditionally competing companies with common procurement needs. For example, Covisint was developed as an exchange to serve the needs of the big three auto makers. Independent exchanges are open to any set of buyers and sellers within a given market. They provide services and a common technology platform to their members and are open, usually for a fee, to any company that wants to use them. For example, Tinypass is a flexible e-commerce platform that enables content publishers to choose from a variety of payment models to sell access to their media. Publishers can offer limited previews to readers before they subscribe, ask for payment to view each video or article, or allow the audience to pay what they believe the content is worth. Content is defined by the publisher and can be any sort of digital media: an article, a movie, a song, a blog post, a PDF, access to a forum, or access to an entire Web site. Tinypass exchange members can use the platform to crowdfund projects from within their own Web sites, rather than working through third party sites, such as GoFundMe or KickStarter.,

7.3e "________" is a technique used by advertisers to recapture these shoppers by using targeted and personalized ads to direct shoppers back to a retailer's site. For example, a visitor who viewed the men's clothing portion of a retailer's Web site and then abandoned the Web site would be targeted with banner ads showing various men's clothing items from that retailer. The banner ads might even display the exact items the visitor viewed, such as men's casual slacks. The retargeting could be further enhanced to include comments and recommendations from other consumers who purchased the same items. Retargeting ensures that potential consumers see relevant, targeted ads for products they've already expressed interest in.

Retargeting

7.1a ______-_______ ________-________ activities include enabling the purchase of products online, providing information for customers to evaluate the organization's goods and services, encouraging sales and generating leads from potential customers, providing a portal of information of interest to the customer, and enabling interactions among a community of consumers.

Sell-side e-commerce

7.5e The _____ _______ is a credit card-sized device with an embedded microchip to provide electronic memory and processing capability. ______ ______ can be used for a variety of purposes, including storing a user's financial facts, health insurance data, credit card numbers, and network identification codes and passwords. They can also store monetary values for spending.

Smart cards

7.5e security measures to protect the producer and the customer

Some of the measures include installing and maintaining a firewall configuration to control access to computers and data, never using software or hardware vendor-supplier defaults for system passwords, and requiring merchants to protect stored data, encrypt transmission of cardholder information across public networks, use and regularly update antivirus software, and restrict access to sensitive data on a need-to-know basis.

7.5 ___________ implementation of e-business requires significant changes to existing business processes and substantial investment in IS technology. These technology components must be chosen carefully and be integrated to support a large volume of transactions with customers, suppliers, and other business partners worldwide. In surveys, online consumers frequently note that poor Web site performance (e.g., slow response time, inadequate customer support, and lost orders) drives them to abandon some e-commerce sites in favor of those with better, more reliable performance. This section provides a brief overview of the key technology infrastructure components. See Figure 7.13.

Successful

7.5e ______ enables a client (like a Web browser) to initiate a temporary, private conversation with a server (like a shopping site on the Web or an online bank)

TLS

7.1c Differences among B2B, B2C, and C2C

Table 7.3

7.2b Highly Rated M-Commerce Retail Web Sites

Table 7.4

7.3d Characteristics of Three Types of Mobile Advertising Networks

Table 7.5

7.5a Key Performance Measures for Some Popular Retail Web Sites

Table 7.7

7.5e Comparison of Payment Systems

Table 7.8

7.2 _______ ____________ ____________ _______ _______________ __________ ______ ____________created a .mobi domain in 2005 to help attract mobile users to the Web. Afilias administers this domain and helps to ensure that the .mobi destinations work quickly, efficiently, and effectively with all mobile devices.

The Internet Corporation for Assigned Names and Numbers (ICANN)

7.4c With all those potential competitors, a company must take strong measures to ensure that the customers it wants to attract can find its Web site. What are the first two steps?

The first step is to obtain and register a domain name, The next step to attracting customers is to make your site search-engine friendly by improving its rankings.

7.3c market segmentation

The identification of specific markets to target them with tailored advertising messages.

7.4c Personalization

The process of tailoring Web pages to specifically target individual consumers.

7.2e Identity theft

The theft of personal information, which is then used without the owner's permission, often to commit fraud or other crimes.

7.1d E-government

The use of information and communications technology to simplify the sharing of information, speed formerly paper-based processes, and improve the relationship between citizens and government.

7.3 E-commerce and m-commerce are being used in innovative and exciting ways. such as:

This section examines a few of the many B2B, B2C, C2C, and m-commerce applications in retail and wholesale, manufacturing, marketing, advertising, bartering, retargeting, price comparison, couponing, investment and finance, and banking. As with any new technology, m-commerce will succeed only if it provides users with real benefits. Companies involved in e-commerce and m-commerce must think through their strategies carefully and ensure that they provide services that truly meet customers' needs.

7.3c The nature of the _______ enables firms to gather more information about customer behavior and preferences as customers and potential customers gather their own information and make their purchase decisions

Web

7.5a A ______ _________ hardware platform complete with the appropriate software is a key ingredient to e-commerce infrastructure

Web server

7.5b In addition to the _______ _______ ________ _________, each e-commerce Web site must have Web server software to perform fundamental services, including security and identification, retrieval and sending of Web pages, Web site tracking, Web site development, and Web page development.

Web server operating system

7.4c _____ _______ operators must also continually be alert to new trends and developments in the area of e-commerce and be prepared to take advantage of new opportunities.

Web site

7.4c _____ _______ operators must constantly monitor the traffic to their sites and the response times experienced by visitors.

Web site

7.4c Companies large and small can establish _____ ______

Web sites

7.2a _______, m-commerce accounted for 35 percent of all retail e-commerce sales in the fourth quarter of 2015. In the United States, the share of e-commerce transactions completed on a mobile device grew 15 percent from the prior year, representing 30 percent of all e-commerce transactions

Worldwide

7.4b After a company determines which objectives its site should __________, it can move on planning and developing the site, keeping in mind that the priorities and objectives of customers may change over time. As the number of e-commerce shoppers increases and they become more comfortable—and more selective—making online purchases, a company might need to redefine the basic business model of its site to capture new business opportunities

accomplish

7.2d In ________ to the information required to complete an order, comprehensive customer information is also captured from each order and stored in the supplier's customer database. This information can include the customer name, address, telephone numbers, contact person, credit history, and other details. For example, if a customer later contacts the supplier to complain that not all items were received, that some arrived damaged, or even that the product provides unclear instructions, any customer service representative will be able to retrieve the order information from the database. Many companies also provide extensive after-sale information on their Web sites, such as how to maintain a piece of equipment, how to effectively use a product, and how to receive repairs under warranty.

addition

7.3g Online __________ customers can check balances of their savings, checking, and loan accounts; transfer money among accounts; and pay bills. These customers enjoy the convenience of not writing checks by hand, of tracking their current balances, and of reducing expenditures on envelopes and stamps. In addition, online banking customers have the satisfaction of knowing that paying bills online is good for the environment because it reduces the amount of paper used, thus saving trees and reducing greenhouse gases.

banking

7.3e During the recent economic downturn, many people and businesses turned to ________ as a means of gaining goods and services.

bartering

7.3d Generally, there are three types of mobile ad networks—__________—though no clear lines separate them. The characteristics of these mobile advertising networks are summarized in Table 7.5.

blind, premium blind, and premium networks

7.1b Early B2C pioneers competed with the traditional "______-_______-_______" retailers in an industry, selling their products directly to consumers

brick-and-mortar

7.3f The ____________ business adapted to the Internet faster than any other arm of finance. See Figure 7.10. The allure of online trading that enables investors to do quick, thorough research and then buy shares in any company in a few seconds and at a fraction of the cost of a full-commission firm has brought many investors to the Web. Fidelity offers mobile trading apps for tablets, smartphones, and even Apple Watch. The apps allow investors a secure platform to monitor their portfolios, view real-time stock quotes, track preferred stocks, and execute trades.

brokerage

7.5c After you have located or built a host server, including the hardware, operating system, and Web server software, you can begin to investigate and install e-commerce software to support five core tasks:

catalog management to create and update the product catalog, product configuration to help customers select the necessary components and options, shopping cart facilities to track the items selected for purchase (see Figure 7.14), e-commerce transaction processing, and Web traffic data analysis to provide details to adjust the operations of the Web site.

7.5e In addition to TLS handling the encryption part of a secure e-commerce transaction, a digital ________ is assigned to the Web site to provide positive server identification so shoppers can be assured of with whom that are dealing.

certificate

7.4a Although companies can select from a number of approaches, the most successful e-commerce models include three basic components:

community, content, and commerce, as shown in Figure 7.12.

7.3b Many companies that already use the Internet for their private exchanges have no desire to share their expertise with ___________.

competitors

7.4 With all the _________ to e-commerce already discussed in this chapter, it's clear that an effective Web site must be one that is easy to use and accomplishes the goals of the company yet is safe, secure, and affordable to set up and maintain

constraints

7.2e The following are three key challenges to e-commerce:

dealing with consumer privacy concerns, overcoming consumers' lack of trust, and overcoming global issues.

7.2c The company's ______-______________ capabilities, automated workflow, and large-scale production centers allow business customers to quickly customize and place their orders—cutting the project completion time from weeks to days for many clients

e-commerce

7.2c The establishment of an ____-____________Web site enables a firm to reach new customers in new markets. Indeed, this is one of the primary reasons organizations give for establishing a Web site.

e-commerce

7.2d A successful ___-____________ system must address the many stages that consumers experience in the sales life cycle.

e-commerce

7.2d At the heart of any __-__________ system is the user's ability to search for and identify items for sale; select those items and negotiate prices, terms of payment, and delivery date; send an order to the vendor to purchase the items; pay for the product or service; obtain product delivery; and receive after-sales support. Figure 7.2 shows how e-commerce can support each of these stages. Product delivery can involve tangible goods delivered in a traditional form (e.g., clothing delivered via a shipping company) or goods and services delivered electronically (e.g., software downloaded over the Internet).

e-commerce

7.5e Current ____-________ __________ relies on user identification and encryption to safeguard business transactions. Actual payments are made in a variety of ways, including electronic cash, electronic wallets, and smart, credit, charge, and debit cards. Web sites that accept multiple payment types convert more visitors to purchasing customers than merchants who offer only a single payment method.

e-commerce technology

7.1d Government-to-citizen (G2C), government-to-business (G2B), and government-to-government (G2G) are all forms of ____-_____________, each with different applications.

e-government

7.4c The storefront broker is similar to a distributor in standard retail operations, but in this case, no product moves—only _______ data flows back and forth.

electronic

7.2c By ___________ or reducing time-consuming and labor-intensive steps throughout the order and delivery process, more sales can be completed in the same period and with increased accuracy. With increased speed and accuracy of customer order information, companies can reduce the need for inventory—from raw materials to safety stocks and finished goods—at all the intermediate manufacturing, storage, and transportation points.

eliminating

7.2d An ________ ordering parts for a storeroom at a manufacturing plant would follow the steps shown in Figure 7.2. Assume the storeroom stocks a wide range of office supplies, spare parts, and maintenance supplies.

employee

7.2c By _______ buyers to enter their own product specifications and order information directly, human data-entry error on the part of the supplier is eliminated. And order accuracy is important—no matter what the product is.

enabling

7.3b Several strategic and competitive issues are associated with the use of __________

exchanges

7.4a The ______ major challenge is for the company to decide on the effective e-commerce model it wants to use and formulate an effective e-commerce strategy.

first

7.2c When organizations and their customers are connected via e-commerce, the _______ of information is accelerated because electronic connections and communications are already established. As a result, information can flow from buyer to seller easily, directly, and rapidly.

flow

7.1b growth in B2C commerce reasons

goods and services are cheaper when purchased online, including stocks, books, newspapers, airline tickets, and hotel rooms. online B2C shoppers have the ability to design a personalized product the effective use of social media networks by many companies looking to reach consumers, promote their products, and generate online sales

7.5e Before the client and server start communicating, they perform an automated process called a "________" where they exchange information about who they are, and which secret codes and algorithms they'll use to encode their messages to each other. Then for the duration of the conversation, all the data that passes between the client and server is encrypted so that even if somebody does listen in, they won't be able to determine what's being communicated. TLS is the successor to the Secure Sockets Layer (SSL).

handshake

7.2d From the supplier's ______ page, the employee can access a product catalog and browse until he or she finds the items that meet the storeroom's specifications

home

7.2d From the supplier's ______ page, the employee can access a product catalog and browse until he or she finds the items that meet the storeroom's specifications. The employee fills out a request-for-quotation form by entering the item codes and quantities needed. When the employee completes the quotation form, the supplier's Web application calculates the total charge of the order with the most current prices and shows the additional cost for various forms of delivery—overnight, within two working days, or the next week. The employee might elect to visit other suppliers' Web home pages and repeat this process to search for additional items or obtain competing prices for the same items.

home

7.5a A key decision facing a new e-commerce company is whether to ...

host its own Web site or to let someone else do it.

7.4c Businesses use two types of personalization techniques to capture data and build customer profiles. Data can also be gathered through access to other data sources such as the Bureau of Motor Vehicles, Bureau of Vital Statistics, and marketing affiliates (firms that share marketing data).

implicit personalization explicit personalization

7.4c AMR Research, a Boston-based independent research analysis firm, reports that Internet shoppers expect service to be better than or equal to their ____-_______ ____________

in-store experience.

7.3e An ___________ number of companies provide mobile phone apps that enable shoppers to compare prices and products online

increasing

7.3h An _________ number of Web sites offer personalized shopping consultations for shoppers interested in upscale, contemporary clothing—dresses, sportswear, denim clothing, handbags, jewelry, shoes, and luxury gifts. Key to the success of companies such as MyTheresa and Net-a-Porter is a philosophy of high customer service and strong, personal client relationships. Net-a-Porter offers same-day delivery in Hong Kong, New York, and London, and a team of personal shoppers stock the virtual carts of women around the globe who are looking for high fashion and luxury items

increasing

7.1c Companies and ___________ engaging in e-commerce must be careful that their sales do not violate the rules of various county, state, or country legal jurisdictions.

individuals

7.2c Increased and more detailed _________ about delivery dates and current status can increase customer loyalty. In addition, the ability to consistently meet customers' desired delivery dates with high-quality goods and services eliminates any incentive for customers to seek other sources of supply.

information

7.2a The market for ____-____________ in North America is maturing much later than in other countries for several reasons. In North America, responsibility for network infrastructure is fragmented among many providers and consumer payments are usually made by credit card. In most Western European countries, consumers are much more willing to use m-commerce. Japanese consumers are generally enthusiastic about new technology and therefore have been much more likely to use mobile technologies to make purchases.

m-commerce

7.3d Because ___-_________ devices usually have a single user, they are ideal for accessing personal information and receiving targeted messages for a particular consumer. Through m-commerce, companies can reach individual consumers to establish one-to-one marketing relationships and communicate whenever it is convenient—in short, anytime and anywhere. See Figure 7.8.

m-commerce

7.5d For _____-___________ to work effectively, the interface between the mobile device and its user must improve to the point that it is nearly as easy to purchase an item on a wireless device as it is to purchase it on a PC.

m-commerce

7.2d Many ________ and ___________ have outsourced the physical logistics of delivering merchandise to other companies that take care of the storing, packing, shipping, and tracking of products. To provide this service, DHL, Federal Express, United Parcel Service, and other delivery firms have developed software tools and interfaces that directly link customer ordering, manufacturing, and inventory systems with their own systems of highly automated warehouses, call centers, and worldwide shipping networks. The goal is to make the transfer of all information and inventory, from the manufacturer to the delivery firm to the consumer, fast and simple.

manufacturers and retailers For example, when a customer orders a printer on the Hewlett-Packard (HP) Web site, that order actually goes to FedEx, which stocks all the products that HP sells online at a dedicated e-distribution facility in Memphis, Tennessee, a major FedEx shipping hub. FedEx ships the order, which triggers an email notification to the customer that the printer is on its way and an inventory notice is sent to HP that the FedEx warehouse now has one less printer in stock. See Figure 7.3.

7.3d Mobile ad ________ distribute mobile ads to publishers such as mobile Web sites, application developers, and mobile operators. Mobile ad impressions are generally bought at a cost per thousand (CPM), cost per click (CPC), or cost per action (CPA), in which the advertiser pays only if the customer clicks through and then buys the product or service.

networks

7.2a The ______ of mobile Web sites worldwide is growing rapidly because of advances in wireless broadband technologies, the development of new and useful applications, and the availability of less costly but more powerful smartphones. Experts point out that the relative clumsiness of mobile browsers and security concerns still must be overcome to speed the growth of m-commerce.

number

7.5e Many _______ _________ use credit and charge cards for most of their Internet purchases. A credit card, such as Visa or MasterCard, has a preset spending limit based on the user's credit history, and each month the user can pay all or part of the amount owed. Interest is charged on the unpaid amount. A charge card, such as American Express, carries no preset spending limit, and the entire amount charged to the card is due at the end of the billing period. You can't carry a balance from month to month with a charge card like you can with a credit card. Charge cards require customers to pay in full every month or face a fee. Debit cards look like credit cards, but they operate like cash or a personal check. The debit card is linked directly to your savings or checking account. Each time you use the card, money is automatically taken from your checking or savings account to cover the purchase. Credit, charge, and debit cards currently store limited information about you on a magnetic stripe. This information is read each time the card is swiped to make a purchase. All credit card customers are protected by law from paying more than $50 for fraudulent transactions.

online shoppers

7.1a Many __________ use both buy-side e-commerce to purchase goods and services from their suppliers and sell-side e-commerce to sell products to their customers

organizations

7.1b Facebook, Instagram, Pinterest, and Twitter are just a few social networking sites that are continuing to add "___ _______" features designed to help e-commerce companies generate sales by reaching a targeted audience. Pinterest is gradually rolling out "Buyable Pins," starting with large retailers like Macy's and Nordstrom, allowing more of the social network's 100 million active users to purchase products online without ever leaving the site.

paid social

7.1 Business activities that are strong candidates for conversion to e-commerce are ones that are ...

paper based, time consuming, and inconvenient for customers.

7.1b As a result of a 1992 Supreme Court ruling that says online retailers don't have to collect sales taxes in states where they lack a ________ presence, millions of online shoppers do not pay state or local tax on their online purchases

physical

7.5e To send money, you enter the _________ email address and the amount you want to send.

recipient's

7.2b A number of __________ have established special Web sites for mobile devices users. Table 7.4 provides a list of some of the top-ranked mobile Web sites according to a recent survey of more than 400,000 people by OC&C Strategy Consultants.

retailers

7.5d Security is also a major concern, particularly in two areas:

the security of the transmission itself and the trust that the transaction is being made with the intended party

7.5a The amount of storage capacity and computing power required of the Web server depends primarily on two things:

the software that must run on the server and the volume of e-commerce transactions that must be processed. The most successful e-commerce solutions are designed to be highly scalable so that they can be upgraded to meet unexpected user traffic.

7.2e Lack of _______ in online sellers is one of the most frequently cited reasons that some consumers give to explain why they are unwilling to purchase online.

trust

7.2e While _____-_______ of U.S. Internet users have purchased an item online and most Internet users say online shopping saves them time, about one-third of all adult Internet users will not buy anything online primarily because they have privacy concerns or lack trust in online merchants. In addition to having an effective e-commerce model and strategy, companies must carefully address consumer privacy concerns and overcome consumers' lack of trust.

two-thirds

7.3a A key sector of ___________ __-________ is spending on manufacturing, repair, and operations (MRO) goods and services—from simple office supplies to mission-critical equipment, such as the motors, pumps, compressors, and instruments that keep manufacturing facilities running smoothly. MRO purchases often approach 40 percent of a manufacturing company's total revenues, but the purchasing systems within many companies are haphazard, without automated controls. Companies face significant internal costs resulting from outdated and cumbersome MRO management processes.

wholesale e-commerce