E-commerce unique features Chapter 1

what are three benefits of universal standards?

1. there is one main internet standard (the web) 2. are the same across all nations 3. greatly lower market-entry costs 4. price discovery is simpler, faster, and more accurate

what are some of the major advantages and disadvantages of being a first mover

Advantage = could result in a "winner take all" situation Build brand name Create new distribution channel Create custom design and features available only on their site Disadvantage = new competitors can learn what is successful and not successful based on previous entries

Give example of B2B, B2C, C2C, and social, mobile, and local e-commerce besides those listed in the chapter materials

B2B - GE promotes itself as a leader in innovation trying to self itself to other businesses B2C - Amazon is the leader in online sales reaches out to customers with simple apps, innovative ideas, and personalized messages C2C - Craigslist allows to people to post their used items for sale for others to pickup

Describe the three different stages in the evolution of e-commerce

Invention - the web (HTML standard) becomes a huge hit. Driven largely be visions of profiting from new technology. Firms aimed to be the "first mover" Consolidation - shifted to business driven, rather than technology driven Brand extension and strengthening became more important than creating new ones Marketing was targeted to user queries Reinvention - re revolutionized by a social media boom Widespread adoption of mobile devices Much more powerful tools for personal marketing Few of the firms have been able to monetize their large audience

Discuss the ways in which the early years of e-commerce can be considered both a success and a failure

Success = period of explosive growth and extraordinary innovation. Fueled in by over $125 billion in venture capital Failure = not enough bandwidth for anything complex. Market was limited to static simple pages with minimal information

what are five of the major differences between the early years of e-commerce and today's e-commerce

Technology driven compared to social, local, and mobile driven Revenue growth compared to social network connections Ungoverned compared to extensive government surveillance Perfect markets compared to market imperfections and competition in select markets Low-complexity retail products compared to retail, services, content, subscriptions, etc.

How are the internet and the web similar to or different from other technologies that have changed commerce in the past.

The internet is much more revolutionary compared to other types such as radio, television, etc. It is growing at a much more rapid rate. It has a much higher interactivity and reach at a much lower entry cost.

what is web 2.0? give examples and explain

Web 2.0 attracts huge audiences, including social media, sharing sites. Web 2.0 supports a high level of interactivity compared to traditional media ex. Instagram - has a huge fan base, that could possibly be used to promote products

what is a market space?

a marketplace extended beyond traditional boundaries and removed from a temporal and geographic location

personalizatoin/customization

allows custom messages based on a users activities or prefereneces

ubiquity

available to just about anyone, anywhere at any time

richness

complexity and content of a message

what is e-commerce?

digitally enabled transactions through individuals as well as organizations

define disintermediation and explain the benefits to internet users of such a phenomenon. How does it impact friction free commerce

disinter-mediation = distributors and wholesalers who are "middlemen", each demanding a payment by raising costs while adding little value would dissapear. Benefits = manufactures would create direction relationship with consumers. This vision is "friction-free commerce"

interactivity

enabled two-way communication

what is information asymmetry?

great difference or concealment of relevant market information among parties

global reach

permits transactions to cross borders (ex. national)

universal standards

shared by all nations around the world

information density

total amount and quality of information available to all market participants

compare online and traditional transactions in terms of richness

traditional transactions have great richness, because they are able to provide face-to-face personal information and visual cues. online is much richer than radio, television, etc., but loses richness in trade for "reach"