E-Commerce Chapter 1

One significant component of _____ can be the investment a seller makes in equipment or in the hiring of skilled employees to supply the product or service to the buyer.

Transaction Costs

_____ are the total of all costs that a buyer and a seller incur as they gather information and negotiate a purchase-and-sale transaction.

Transaction Costs

A DVD is an excellent example of an item with a high value-to-weight ratio.

True

A commodity item is a product or service that is hard to distinguish from the same product or service provided by other sellers.

True

A freight forwarder is a company that arranges shipping and insurance for international transactions

True

A problem that EDI pioneers faced was the high cost of implementation.

True

A product that has a strong brand reputation is easier to sell over the Web than an unbranded item.

True

A transaction is an exchange of value, such as a purchase, a sale, or the conversion of raw materials into a finished product.

True

Businesses and individuals can use electronic commerce to reduce transaction costs by improving the flow of information and increasing the coordination of actions.

True

In some cases, business processes use traditional commerce activities very effectively, and technology cannot improve them.

True

A(n) _____ is a specific collection of business processes used to identify customers, market to those customers, and generate sales to those customers.

Revenue Model

A product's _____ is the collection of attributes that affect how easily that product can be packaged and delivered.

Shipping Profile

______ are mobile phones that include a Web browser, a full keyboard, and an identifiable operating system that allows users to run various software packages.

Smartphones

A barrier to the predictability of costs and revenues of electronic commerce projects is _____.

The Rapid Changes in Underlying Technology

The term _____ refers to the theft of intellectual property from the Web.

Digital Piracy

Economists use a formal definition of market that includes two conditions: first, the potential sellers of a good come into contact with potential buyers, and second, that a medium of exchange is available.

True

Electronic commerce provides buyers with an easy way to customize the level of detail in the information they obtain about a prospective purchase.

True

Electronic payment can be easier to audit and monitor than payment made by check.

True

Business-to-business (B2B) electronic commerce is sometimes called _____.

E-Procurement

Consumer shopping on the Web is often called _____.

B2C

_______ occurs when one business transmits computer-readable data in a standard format to another business.

Electronic Data Interchange (EDI)

The _______ refers to a strategy adopted by many companies and investors who believed that by being the first Web site to offer a particular type of product or service, they would be given opportunities to be successful.

First-Mover Advantage

Economist generally refer to large _____ as firms, or companies.

Hierarchical Businesses

_____ is a primary activity undertaken by an organization's strategic business unit.

Identifying Customers

Multiple firms that sell similar products to similar customers make up a(n) _____.

Industry

In SWOT analysis, the question "Are industry trends moving upward?" involves identifying the _____ of an organization.

Opportunities

The term ______ refers to a translation that considers multiple elements of an environment, such as business and cultural practices, in addition to dialect variations in the language.

Localization

Software translation is also referred to as ______ translation.

Machine

The combination of store design, layout, and product display knowledge to create store environments that help convince customers to buy is called _____.

Merchandising

In a(n)_____, companies coordinate their strategies, resources, and skill sets by forming long-term, stable relationships with other companies and individuals based on shared purposes.

Network Economic Structure

As more people participate in a network, the value of the network to each participant increases. This increase in value is called a _____.

Network Effect

The only difference a buyer perceives when shopping for a commodity item is its ______.

Price

Electronic funds transfers are also called _____.

Wire Transfers

The term ______ is used in business to describe very large stores of information such as that collected by online sellers about their customers.

Big Data

A(n) ______ is a secure location where incoming international shipments can be held until customs requirements are satisfied or until payment arrangements are completed.

Bonded Warehouse

A(n) _____ unit is an autonomous part of a company that is large enough to manage itself but small enough to respond quickly to changes in its business environment.

Business

A(n) ______ is a task performed by a worker in the course of doing his or her job.

Business Activity

A(n) _____ is a set of processes that combine to achieve a company's primary goal, which is typically to yield a profit.

Business Model

The group of logical, related, and sequential activities and transactions in which businesses engage are often collectively referred to as _____.

Business Processes

An infrastructure issue that a company faces when it conducts international commerce includes _____.

Communication Costs

______ is a category of electronic commerce that includes individuals who buy and sell items among themselves.

Consumer-to-Consumer

The combination of language and customs is often called ______.

Culture

A(n) ______ is a company that arranges the payment of tariffs and compliance with customs laws for international shipments.

Customs Broker

The highly sophisticated tools for investigating patterns and knowledge contained in big data are called ______.

Data Analytic

The law of ______ says that most activities yield less values as the amount of consumption increases.

Diminishing

A product's shipping profile is a collection of details about the shipper.

False

All the activities associated with a transaction result in measurable and recordable transactions.

False

Business-to-business electronic commerce occurs when a person sells an item through a Web auction site to another person.

False

Buyers and sellers in commodity markets experience significant transaction costs.

False

Electronic commerce reduces the speed and accuracy with which businesses can exchange information.

False

Irrespective of the transferability of merchandising skills to the Web, products are difficult to sell on the Web.

False

Most economists agree that markets are weak and ineffective mechanisms for allocating scarce resources.

False

The legal environment in which electronic commerce is conducted is full of clear and concise laws.

False

Value-added networks are leased telephone lines that establish direct network connections to all trading partners of an organization

False

The ______ refer to the activities that each strategic business unit undertakes to design, product, promote, market, deliver, and support the products or services it sells.

Primary Activities

The practice of an existing firm replacing one or more of its supplier markets with its own hierarchical structure for creating the supplied product is called _____.

Vertical Integration

_____ is the use of interpersonal connections online to promote or sell goods and services

Social Commerce

SWOT is the acronym for _____.

Strength, Weaknesses, Opportunities, and Threats

Departments devoted to negotiating purchases transactions with supplies are called _____.

Supply Management

Human resource management and purchasing activities, which are part of a value chain model, are known as ______.

Supporting Activities

In ______ or telework, an employee logs in to the company network through the Internet instead of traveling to an office.

Telecommuting

A(n) ______ is a gathering of people who share a common interest, and this gathering takes place on the Internet

Virtual Community

Strategic partnerships occurring between or among companies operating on the Internet are called _____.

Virtual Companies

_____ refers to technologies that include software that allows users of Web sites to participate in the creation, edition, and distribution of content on a Web site owned and operated by a third party.

Web 2.0

Businesses that engage in electronic data interchange with each other are called _____.

Trading Partners

_____ can be a better way to sell items that rely on personal selling skills.

Traditional Commerce

IBM defines electronic business as "the transformation of key business processes through the use of Internet technologies."

True

The U.S. government is one of the largest electronic data interchange (EDI) trading partners in the world.

True

The increase in broadband connections in homes is a key element in the B2C component of the second wave.

True

Transferring funds, placing orders, sending invoices, and shipping goods to customers are all types of activities or transactions.

True

Using the value chain reinforces the idea that electronic commerce should be a business solution, not a technology implemented for its own sake.

True

A _____ is a way of organizing the activities that each strategic business unit undertakes to design, produce, promote, market, deliver, and support the products or services it sells.

Value Chain

According to Porter, _____ describes the larger stream of activities into which a particular business unit's value chain is embedded.

Value System

A(n) _____ is an independent firm that offers connection and transaction-forwarding services to buyers and sellers engaged in electronic data interchange.

Value-Added Network

Banks use _____, which are electronic transmissions of account exchange information over private communications' networks.

Wire Transfers