IFMG Ch 7

Purchasing cards are similar to credit cards that are used in __________ commerce.

B2B

____ accounts for the majority of e-commerce transactions.

B2B

In this type of e-commerce, buyers and sellers are individuals.

C2C

___ is a type of EC where sellers and buyers are individuals.

C2C

eBay is an example of which type of e-commerce?

C2C

____ and ____ are the two major challenges for the sellers in e-commerce.

Channel conflict, order fulfillment

Organizations typically face issues related to e-tailing including

Companies face issues in both of these areas

__________ is when value-added services are removed from the business process.

Disintermediation

Which type of electronic payment is typically favored in B2B

Electronic checks

B2B EC is more complex than B2C EC.

False

eBay uses a reverse auction.

False

When organizations come to a company's Web site for procurement, such business is classified as a(n):

Sell-side marketplace.

What is a downside of a clicks-and-mortar business?

There is the added complexity of two different selling environments.

Electronic commerce can be problematic in developing countries due to a lack of bandwidth and expense in accessing the Web.

True

Electronic commerce gives customers access to a wider array of products and services than brick-and-mortar stores.

True

In the sell-side marketplace, organizations sell their products or services to other organizations electronically from their private e-marketplace and/or from third-party Web site.

True

In an e-credit card transaction, the clearinghouse plays the following role:

Validates and verifies the seller's payment information

Businesses and organizations set up Web sites to: Entry field with correct answer Sell goods and services. Induce people to visit a physical location. Reduce operational and transaction costs. Enhance their reputation.

all of the above

Electronic business includes which of the following? buying and selling servicing customers collaborating with business partners conducting electronic transactions within an organization

all of the above

A competitive process in which either a seller solicits consecutive bids from buyers or a buyer solicits bids from sellers, and prices are determined dynamically by competitive bidding.

auction

Electronic billboards, which typically contain a short text or graphical message to promote a product or a vendor.

banner

A(n) __________ organization's customer reach is limited by geography.

brick-and-mortar

Organizations in which the product, the process, and the delivery agent are all physical.

brick-and-mortar organizations

The method by which a company generates revenue to sustain itself.

business model

Electronic commerce in which both the sellers and the buyers are business organizations.

business-to-business (B2B) electronic commerce

Electronic commerce in which the sellers are organizations and the buyers are individuals; also known as e-tailing.

business-to-consumer electronic commerce (B2C)

An organization using electronic commerce internally to provide information and services to its employees.

business-to-employee electronic commerce (B2E)

In the _____ marketplace model, the reverse auction is typically used.

buy-side

B2B model in which organizations buy needed products or services from other organizations electronically, often through a reverse auction.

buy-side market place

When organizations request for bids for contracts on their own Web site for procurement, such business is classified as a(n):

buy-side marketplace

The alienation of existing distributors when a company decides to sell to customers directly online.

channel conflict

Organizations that do business in both the physical and digital dimensions.

clicks-and-mortar organizations

Electronic commerce in which both the buyer and the seller are individuals (not businesses).

consumer-to-consumer electronic commerce (C2C)

Various banking activities conducted electronically from home, a business, or on the road instead of at a physical bank location; also known as electronic banking.

cyberbanking

Registering domain names in the hope of selling them later at a higher price.

cybersquatting

Elimination of intermediaries in electronic commerce.

disintermediation

The use of electronic commerce to deliver information and public services to citizens, business partners, and suppliers of government entities, and those working in the public sector.

e-government

Purchasing by using electronic support.

e-procurement

A broader definition of electronic commerce, including buying and selling of goods and services, and servicing customers, collaborating with business partners, conducting e-learning, and conducting electronic transactions within an organization.

electronic business (E-Busniess)

The process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the Internet.

electronic commerce (EC or e-commerce)

A collection of individual shops under one Internet address; also known as a cybermall or an e-mall.

electronic mall

A virtual market space on the Web where many buyers and many sellers conduct electronic business activities.

electronic marketplace

Computer-based systems that allow customers to pay for goods and services electronically, rather than writing a check or using cash.

electronic payment mechanisms

The direct sale of products and services through storefronts or electronic malls, usually designed around an electronic catalog format and/or auctions.

electronic retailing (e-tailing)

The Web site of a single company, with its own Internet address, at which orders can be placed.

electronic strefront

(see public exchanges)

exchanges

Forward auctions are the major method used in buy-side marketplaces.

false

eBay employs the ___ auction mechanism.

forward

Auctions that sellers use as a selling channel to many potential buyers; the highest bidder wins the items.

forward auctions

In _____, needed services such as temporary help or extra space are traded on an as-needed basis.

functional exchanges

An electronic storefront can NOT take the form of a(n)

group of stores

The aggregation of purchasing orders from many buyers so that a volume discount can be obtained.

group purchasing

What type of exchange do companies use to purchase maintenance, operations and repair materials?

horizontal

When e-commerce is done in a wireless environment, this is called:

mobile commerce

Electronic commerce conducted in a wireless environment.

mobile commerce m-commerce

A process in which a company integrates its online and offline channels.

multichanneling

Manufacturers or retailers sell directly to customers in which of the following business models?

online direct makreting

Method of marketing that asks consumers to give their permission to voluntarily accept online advertising and e-mail.

permission marketing

A form of electronic cash that enables the transfer of funds between two individuals, or between an individual and a business, without the use of a credit card.

person-to-person payments

An advertisement that is automatically launched by some trigger and appears underneath the active window.

pop-under ad

A(n) _____ is automatically launched by some trigger and appears in front of the active window.

pop-up ad

An advertisement that is automatically launched by some trigger and appears in front of the active window.

pop-up ad

Electronic marketplaces in which there are many sellers and many buyers, and entry is open to all; frequently owned and operated by a third party.

public exchanges (or exchanges)

What is NOT a form of electronic cash?

purchasing cards

Downloading a book on an Amazon Kindle is an example of:

pure e-commerce

When you buy a book from Amazon for your Kindle, you are conducting:

pure-play EC

Auctions in which one buyer, usually an organization, seeks to buy a product or a service, and suppliers submit bids; the lowest bidder wins.

reverse auctions

The __________ marketplace is similar to the B2C model in that the buyer comes to the seller's site, views catalogs and places an order.

sell-side

B2B model in which organizations sell to other organizations from their own private e-marketplace and/or from a third-party site.

sell-sidemarketplace

When shoppers visit a brick-and-mortar store, examine a product in person, and use digital technology to buy from an online rival, often at a lower price, this is called:

showrooming

Cards that contains a microprocessor (chip) that enables the card to store a considerable amount of information (including stored funds) and to conduct processing.

smart card

Cards that contain a chip containing a large amount of information are:

smart cards

Which of the following electronic payments is ideal for micropayments?

smart cards

__________ differ from stored-value money cards in that they store information rather than money.

smart cards

Indiscriminate distribution of e-mail without the receiver's permission.

spamming

A form of electronic cash on which a fixed amount of prepaid money is stored; the amount is reduced each time the card is used.

stored-value money cards

The fee for a monetary transaction between a buyer and a seller using PayPal is paid for by:

the payer

What is a major issue regarding the protection of online buyers' identities?

tracking cookies

An electronic marketplace is a central, virtual market space on the Web where many buyers and many sellers conduct e-commerce and e-business activities.

true

Claiming an Internet domain for five days at no cost and filling that site with ads is called domain tasting.

true

Registering or using domain names for the purpose of profiting from the goodwill or the trademark that belongs to someone else is called cybersquatting.

true

The buy-side marketplace is concerned with procurement.

true

___ exchanges connect buyers and sellers in one industry.

vertical

__________ exchanges connect buyers and sellers in one industry but not across different industries.

vertical

Which type of electronic exchange connect buyers with sellers within a specific industry?

vertical excahnges

The main idea behind __________ marketing is that shoppers send information about products and services to their friends

viral

Online word-of-mouth marketing.

viral marketing

Organizations in which the product, the process, and the delivery agent are all digital.

virtual (or pure play) organizations

Banking institutions dedicated solely to Internet transactions.

virtual banks

Cards that can be used only once, with a different, random card number every time you shop online are:

virtual credit cards

What is a value-added feature that would be found on a luxury shopping website but not a discount website?

virtual design consulting