Info 360 Chapter 10, Management Info CH. 9, MIS9, Management Info CH. 9

The effect of information density

Greater price transparency Greater cost transparency Enables merchants to engage in price discrimination

The business value of an effective supply chain management system includes all of the following except

Increased inventory levels

ubiquity

Internet/Web technology available everywhere: work, home, and so on, anytime

The effect of global reach

Commerce enabled across cultural and national boundaries seamlessly and without modification & marketspace includes, potentially, billions of consumers and millions of businesses worldwide

The effect of Interactivity

Consumers engaged in dialog that dynamically adjusts experience to the individual. Consumer becomes co-participant in process of delivering goods to market.

The effect of universal standards

Disparate computer systems easily communicate with one another; Lower market entry costs & Lower consumers' search costs

Enterprise systems are strictly internally oriented; other types of enterprise applications must be used for communicating with customers and suppliers.

False

In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products.

False

Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.

False

Customer relationship management systems typically provide software and online tools for sales, customer service, and

Marketing

The effect of ubiquity

Marketplace removed from temporal, geographic locations to become "marketspace" & enhanced customer convenience and reduced shopping costs

prediction markets

Peer-to-peer betting markets where participants make bets on specific outcomes (elections, sales figures, designs for new products)

e-commerce business models

Portal E-tailer Content provider Transaction broker Market creator Service provider Community provider

the effect of richness

Possible to deliver rich messages with text, audio, and video simultaneously to large numbers of people & video, audio, and text marketing messages can be integrated into single marketing message and consumer experience

Digital Market effects

Reduces information asymmetry; flexible and reduced search costs and transaction costs, delayed gratification, reduced menu costs, increased dynamic pricing, increased price discrimination, increased market segmentation, switching costs, stronger (social) network effects, more disintermediation

A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a

Supply Chain...

global reach

The technology reaches across national boundaries, around Earth

Interactivity

The technology works through interaction with the user

Firms can use social networking sites to improve their efficiency in customer service.

True

In the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes.

True

PRM provides a firm and its distributors trade information and distributes leads about customers.

True

Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs.

True...

The bullwhip effect is the distortion of information about the demand for a product as it passes from one entity to the next across the supply chain.

True...

A company's suppliers, supplier's suppliers, and the processes for managing relationships with them is the

Upsteam portion of the supply chain

original e-commerce marketing

Web sites; Display ads; Measures "eyeballs" and impressions of display ads

transaction fee revenue model

a company receives a fee for enabling or executing a transaction

social graph

a mapping of all significant online relationships; synonymous with the idea of a "social network" used to describe offline relationships

marketspace

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

podcasting

a method of publishing audio or video broadcasts via the Internet, allowing subscribers to download audio or video files onto their personal computers or portable music players

streaming

a publishing method for music and video files that flows a continuos stream of content to a user's device without being stored locally on the device

advertising revenue model

a web site generates revenue by attracting a large audience of visitors who can then be exposed to advertisements; most widely used revenue model

subscription revenue model

a web site offering content or services charges a subscription fee for access to some or all of its offerings on an ongoing basis

indirect goods

all other goods not directly involved in the production process, such as office supplies or products for maintenance and repair

private industrial network (PIN)

allows business partners to use a secure web site to share business information; business partners can only access information that pertains to them; private exchange

Analyzing customer buying patterns is an example of

analytical CRM

Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications.

analytical CRM

electronic data interchange (EDI)

around 80% of B2B activity is via this system; allows computer systems between businesses/firms to handle invoices, shipment, scheduling, and purchase orders; transactions are automatically transmitted from one information system to another through a network

market creator

builds a digital environment where buyers and sellers can meet, search for products, display products, and establish prices for those products; can serve consumers or business to business e-commerce, generating revenue from transaction fees; ex. ebay.com

types of e-commerce

business to customer, business to business, customer to customer

geoinformation service

can tell you the price of a house you are looking at or about special exhibits at a museum you are passing

social commerce

commerce based on idea of digital social graph; the purchases of one person influence others' purchases; features that drive its growth include social sign-on, collaborative shopping, network notification, & social search

business to business e-commerce

commercial transactions between firms

disintermediation

companies create this to remove some of the middle layers of the supply chain in the hope of decreasing expenses so products and services can be offered at a lower price

sales revenue model

companies derive revenue by selling goods, information, or services to customers

consumer to consumer e-commerce

consumers selling directly to consumers

market entry costs

costs merchants must pay to bring goods to market

network notification

creating an environment where consumers can share their approval or disapproval of products, services, or content, or share their geo-location with friends; the Like button is an example

collaborative shopping

creating an environment where consumers can share their shopping experiences with one another by viewing products, chatting, or texting; friends can chat online about brands, products, and services

m-commerce (mobile commerce)

customers use devices such as cell phones to purchase goods and services at any time from any place; represents 10% of all e-commerce; fastest growing form of e-commerce

e-commerce revenue models

describes how the firm will earn revenue, generate profits, and produce a superior return on investment; models include advertising, sales, subscription, free/freemuim, transaction fee, & affiliate

universal standards

e-commerce technologies all have one set of technical standards: the Internet

search costs

effort required to find suitable products

business to consumer e-commerce

electronic commerce involves retailing products and services to individual shoppers

social networks

fastest growing area of e-commerce revenues

social media

fastest growing media for branding and marketing

free/freemium revenue model

firms offer basic services or content for free while charging a premium for advanced or special features; the idea is to attract a very large audience with free services, and then convert some of this audience to pay a subscription for premium services

portals

gateways to the Web, sites that users set as their home page; provides a destination site where users start their Web searching and linger to read news, find entertainment, meet other people, and be exposed to advertising which provides the revenues to support the portal; generate revenue by attracting large audiences, charging for ad placement, collecting referral fees, and charging for premium services; ex. Yahoo, Bing, Google

digital goods

goods that can be delivered over a digital network; mainly consists of intellectual property; Cost of producing first unit almost entire cost of product, marginal cost of producing 2nd unit is about zero; Costs of delivery over the Internet very low; Marketing costs remain the same with pricing highly variable; Industries with these are undergoing revolutionary changes (publishers, record labels, etc.)

direct goods

goods used in a production process

geosocial service

helps coordinate social activities; using an app to determine who is doing what in the area; can tell you where your friends are meeting

clickstream

history of clicking behavior

location-based services

includes geosocial, geoadvertising, and geoinformation services

exchanges

independently owned third-party net marketplaces that connect thousands of suppliers and buyers for spot purchasing

Components or parts of finished products are referred to as

intermediate products

menu costs

merchant's cost of changing products

customization

merchants changing the delivered product or service based on a user's preferences or prior behavior

personalization

merchants targeting their marketing messages to specific individuals by adjusting the message to a person's clickstream behavior, name, interests, and past purchases

e-hubs

net marketplaces; for general, industry-oriented business; typically owned or coordinated by an industry where buyers and sellers can conduct industry business; provide a single, digital marketplace based on Internet technology for many different buyers and sellers; industry owned and operated as intermediaries between buyers and sellers; generate revenue from purchase and sale transactions and other service provided to clients; sell direct or indirect goods

the effect of social technology

new internet social and business models enable user content creation and distribution, and support social networks; provides a unique many-to-many model of mass communications

e-tailer

online retail stores that come in all sizes; sells physical products directly to consumers or to individual businesses; ex. Amazon

the effect of personalization/customization

personalization of marketing messages and customization of products and services are based on individual characteristics

geoadvertising service

provide advertising as well as vendor information about products and services; using a mobile device to determine where you can find a good or service near your location

micropayment systems

provide content providers with cost effective method for processing high volumes of very small monetary transactions; largest system is iTunes Store

service provider

provides Web 2.0 applications such as photo sharing, video sharing, and user-generated content as services; provides other services such as online data storage and backup; ex. Google Apps, Dropbox

community provider

provides an online meeting place where people with similar interests can communicate and find useful information; ex. Facebook, Google+

social search

recommendations; enabling an environment where consumers can ask their friends for advice on purchases of products, services, an content; it helps you evaluate the quality of things by listening to evaluations of your friends or their friends

richness

refers to the complexity and content of the message; supports video, audio, and text messages

price transparency

refers to the ease with which consumers can find out the variety of prices in a market

Operational CRM applications include tools for

salesforce automation

transaction broker

saves users money and time by processing online sales transactions and generating a fee each time a transaction occurs; ex. ETrade.com or Expedia.com

internet advertising formats

search engine marketing, display ads, rich media, and e-mail

price discrimination

selling the same goods, or nearly the same goods to different targeted groups at different prices

content provider

social networks; creates revenue by providing digital content, such as news, music, photos, or video, over the Web; the customer may pay to access the content, or revenue may be generated by selling advertising space; ex. Itunes

new e-commerce

social, mobile, local ecommerce

affiliate revenue model

some web sites generate revenue by sending visitors to other web sites and then getting a lead generation fee or a percentage of any resulting sales

social shopping

swap shopping ideas with friends on a site like Pinterest

cost transparency

the ability of consumers to get information about the actual cost merchants pay for products

long-tail marketing

the ability to acquire and target potential customers at a very economical price in comparison to traditional media

transaction costs

the costs of participating in a market

dynamic pricing

the price of a products varies depending on the demand characteristics of the customer or the supply situation of the seller

wisdom of crowds

the process of taking into account the collective opinion of a group of individuals rather than a single expert; suggests that firms should consult with thousands of their customers as a way of establishing a relationship with them and to better understand how their products and services are used and appreciated (or rejected)

social technology

the technology supports content generation and social networking

Information density

the total amount and quality of information available to market participants, consumers and merchants alike; Technology reduces informaiton costs and raises quality

behavioral targeting

tracking the clickstreams of individuals on thousands of Web sites for the purpose of understanding their interests and intention, and exposing them to advertisements that are uniquely suited to their behavior

e-commerce

use of the Internet and Web to transact business; digitally enabled transactions; began in 1995 and grew exponentially, still stable even in a recession; companies that survived the dot-com bubble burst now thrive; revolution is still early in its early stages

viral marketing

uses existing social networks like Facebook and other online communities as word-of-mouth marketing to spread information

crowdsourcing

using large numbers of consumers to market and develop products; firms can be helped in solving some business problems doing this

social sign-on

web sites allow users to sign into other sites through their social network pages on Facebook or another site; allows web sites to receive valuable social profile information from Facebook and use it in their own marketing efforts

information asymmetry

when on party in a transaction has more information about the transaction than the other party; the Internet reduces this because it makes more information available creating a more level playing field between buyers and sellers

intellectual property

works of the mind; protected from misappropriation by copyright, patent, and trade secret laws