E-commerce
What are some of the challenges of policing the Internet? Who has the final say when it comes to content?
- Countries worry about the control of the internet will be monopolized - they are governed by several organizations that monitor its operations - All governments have control over the content/messages on the internet. The challenge is maintaining consistency in the policing according to the governments of different states
Name and describe five services currently available through the Web.
- E-mail - Instant messaging - Search engine - online forums - streaming of media
What advances and features does HTML5 offer?
- It is the fifth version of HTML - used to make devices more efficient with the modern technology and media - replacement of plugins: it will display video on the web - canvas element: provides an application programming interface to draw rectangular and block level objects
Why is it difficult to categorize e-commerce business models?
- Many companies often have multiple business models - No way to classify them as a certain model - E-commerce models are normally categorized into sectors (B2B, C2C etc)
Who are the major players in an industry value chain and how are they impacted by e-commerce technology?
- Suppliers - Manufacturers - Transporters - Distributers - Retailers - Customers E-commerce has impacted these players by reducing the cost of information
Besides advertising and product sampling, what are some other market strategies a company might pursue?
- Trade Shows - Loyalty Programs - Premiums - Conferences - News Letters - Sponsorships at different events (ie. sports) - Seminars - Entertainment (ie. gala)
What is cloud computing, and how has it impacted the Internet?
- cloud computing in one of the fasting growing forms of computing allowing individuals or companies to obtain their computing power through software applications on the internet Reasons for growth include: - No need to have your own hardware or software - reduces IT staff expenses; available online for a fraction of the costs
How is the TCP/IP protocol related to information transfer on the Internet?
- it is the common language of the internet - it is the core communications protocol for the internet - sets standards & rules for data transfers on the internet and also takes care of formatting, ordering, compressing, and checking error messages - it is responsible for the delivery of the packets
Why are mobile apps the next big thing?
- mobile transactions are increasing - people are browsing for products and services on mobile - it is being adopted by people of different demographics
What is a reverse auction? What company is an example of this type of business?
- sellers and buyers are reversed - the buyer puts a request for a product and the sellers bid the prices they are willing to be paid
Why are smartphones a disruptive technology?
- they are the fastest growing mobile devices because they combine the functionality of a cellphone and a computer into one - they are growing among all demographics
Describe the major steps involved in an online credit card transaction.
-Consumer makes the purchase -SSL/TLS provides secure connection through internet to merchant server -Merchant software contacts clearing house -Clearinghouse verifies account and balance with issuing bank -Issuing bank credits merchants account -Monthly statement issued with debit for purchase
Name and describe three methods used to treat customers individually. Why are they significant to e-commerce?
1) Customization- ability to change the product to better fit the needs of the customer 2) Placement of Cookies- a small text file is placed on the user's client computer that can contain info about the customer; their history can be accessed from a data base 3) Personalize Web Content- you can do this when you know the personal background of the visitor These methods are significant to e-commerce because in order to be successful you need to know how to treat each customer on an individual basis and emulate a traditional face-to-face marketplace.
What are five generic business strategies for achieving a profitable business?
1) Differentiation 2) Cost competition 3) Scope- companies compete in all markets world wide to create higher profits 4) Focus or market niche 5) CRM & intimacy
Name the basic functionalities a web server should provide.
1) Processing HTTP Requests 2) Security Services 3) Search Engine 4) E-mail 5) Site Management Tools 6) Data Capture 7) File Transfer Protocol
Describe the five primary revenue models used by e-commerce firms.
1) Sales 2) Subscription 3) Transaction 4) Affiliate 5) Advertising
Give an example of security breaches as they relate to each of the six dimensions of e-commerce security. For instance, what would be a privacy incident?
1. Integrity: ability to ensure that information being displaced on a website or being transmitted/received over the internet has not been altered in any way by unauthorized party. 2. Non-repudiation: ability to ensure that e-commerce participants do not deny their online actions. 3. Authenticity: ability to identify the identity of a person or entity you are transacting with on the internet. 4. Confidentiality: ability to ensure that messages and data are available only to authorized viewers. 5. Privacy: ability to control the use of personal information a customer provides to an e-commerce merchant. 6. Availability: ability to ensure that an e-commerce site continues to function as intended.
What are some of the unique features of e-commerce technology?
1. Ubiquity 2. Global Reach 3. Universal Standards 4. Richness 5. Interactivity 6. Information Density (amount of info available & quality to market participants) 7. Personalization/Customization 8. Social Technology
What are five of the major differences between the early years of e-commerce and today's e-commerce?
1. early= technology driven today= social, mobile and locally driven 2. Revenue growth compared to social network connections 3. Ungoverned compared to extensive government surveillance 4.Low-complexity retail products compared to retail, services, content, subscriptions, etc. 5. Perfect markets compared to market imperfections and competition in select markets and the economists vision of the friction-free commerce has not been fulfilled as desired in the early years.
What are three benefits of universal standards?
1. lowers market entry costs (the cost merchants have to pay just in order to bring the goodies to the market) 2. reduces search costs for consumers (the effort to find a suitable product) 3. price discovery becomes faster- through the creation of a single, one-world marketspace, you can see all the diff prices & products descriptions inexpensively displayed
What are some of the specific ways that a company can obtain a competitive advantage?
A company can obtain competitive advantage by differentiating their product/service from other competitors in the same market they can also have: - good distribution channel - high operating efficiency - lower prices while still offering a valuable product - having superior CRM
What are some of the major advantages and disadvantages of being a first mover?
A first mover are the firms that were first to market in a particular area and who moved quickly to gather market share. Advantages: build brand name recognition early, create new distribution channel, create custom design and features available only on their website, could result in a "winner take all" situation Disadvantages: new competitors can learn what is successful and not successful based on previous entries.
What's a marketspace?
A marketSPACE takes the marketplace up a couple notches & and its removed from a temporal and geographical location.Ubiquity is the term that transforms the place into a space.
What is a network effect, and why is it valuable?
A network effect occurs where users receive value from the fact that everyone uses the same tool or product. They increase in value as more people adopt it.
What are the advantages and disadvantages of mobile first design?
Advantages: - focuses on creating the best possible experience; rather than creating a full feature design for the web - forces designers to focus on what is important; creates a clean and efficient mobile design that functions better than a design with a traditional platform that has to be stripped down Disadvantages: HCDI Hardware- mobile hardware is smaller; more resource constraints Connectivity- constrained by slower connection speeds than desktop sites Displays- smaller and require simplification Interface- touch screen creates new interaction routines that are different from mouse and keyboard
How do venture capitalists differ from angel investors?
Angel investors: - Are normally wealthy individuals who invest in a venture and want to have a stake in the company - Their investments are often smaller than venture capitalists - They will assume more risk Venture Capitalists: - Normally a group of people investing - They assume lesser risk - Normally invest after there aren't angel investors
Is a computer with anti-virus software protected from viruses? Why or why not?
Antivirus software helps protect your computer against malware and cybercriminals. While they can stop common forms of virus and malware, new viruses are constantly made so they may not be able to defend them all.
Give examples of B2C, B2B, C2C, and social, mobile, and local e-commerce besides those listed in the chapter materials.
B2C- Me buying off amazon B2B-Amazon buying whole foods C2C- Selling items on letgo
How are the main types of EBPP systems both alike and different from each other?
Both are online payment systems supported by EBPP infrastructure providers. One is direct in-house and the other consolidator model is through a third party such as a financial institution or focused portal
Compare and contrast firewalls and proxy servers and their security functions.
Both proxy servers and firewalls filter communication to the network but done so in different ways. Firewalls can block access from untrustworthy sources. Proxy servers do the same; however, with a firewall, the user is known. Proxy servers relay the users request, therefore, the identity is seen as the proxy server not the end user.
What is a business model? How does it differ from a business plan?
Business model: is a set of planned activities designed to create product in a market place Business plan: describes a firm's business model
How do biometric devices help improve security? What particular type of security breach do they reduce?
By recognizing each individual's specific biometric print, security is improved to reduce the threat of false authentication
What role does CSS play in the creation of web pages?
CSS is the language for describing the presentation of Web pages, including colors, layout, and fonts.
What technological innovation made client/server computing possible?
Client server computing
Why is targeting a market niche generally smarter for a community provider than targeting a large market segment?
Community environments create websites where people can meet, and share different experiences. Market opportunity is divided into smaller market niches and allows it to be easier to compete in a smaller scale, and capture more people - Meet consumer's needs - Lower costs
Compare the costs for system development and system maintenance. Which is more expensive, and why?
Complete cost of the system development is almost parallel to the annual cost of the system maintenance. Systems need continual checking, testing and repair. Maintenance is vital for a system, but it is not always budgeted for. Teams must keep up with maintenance to ensure that there won't be any breakdowns or disturbances to business operations which could incur huge loss.
What is information asymmetry?
Deals with the study of decisions where one party has more information than the other so they potentially could get ripped off so that the seller makes more ka-ching $$$aka u sell a shit car to a stupid person and convince them that its the best car in the world.
Define disintermediation and explain the benefits to Internet users of such a phenomenon. How does disin-termediation impact friction-free commerce?
Disintermediation is when the middle man between the consumer and seller disappears. It would benefit internet users because it decreases the cost of goods and services. Free-friction Commerce is when info is equally distributed, transaction costs are low, prices can be dynamically adjusted to reflect the actual demand, intermediaries decline (aka disintermediation) and unfair competitive advantages are eliminated.
What is e-commerce? How does it differ from e-business? Where does it intersect with e-business?
E-commerce, or electronic commerce, is defined as digitally enabled commercial transactions between and among organizations and individuals. E-business includes E-commerce but also covers internal processes such as production, inventory management, product development, etc. Basically, E-business refers to running a business online in hopes to expand their company by doing marketing online or having an e-commerce website that sells their inventory online also.
Explain some of the modern-day flaws associated with encryption. Why is encryption not as secure today as it was earlier in the century?
Encryption is used so much more commonly than in previous years. There are now common algorithms and weaknesses that are becoming all too easy to find to malicious users.
What are some of the privacy issues that Facebook has created?
Facebook decided that it would publish users' basic personal information on the public Internet, and announced that whatever content users had contributed belonged to Facebook, and that its ownership of that information never terminated.
What are the eight most important factors impacting website design, and how do they affect a site's operation?
Functionality- pages work and load quick Informational- links customers can easily find and direct them to learn more about u and your products Ease of Use- Simple navigation Redundant navigation- alternative navigation that leads to same contentEase of Purchase- one or two click purchase Multi-Browser Functionality- Site works with the most popular browsers Simple Graphics- avoid distracting, graphics or sounds that the user cannot control Legible Text- avoid background that distort text or make it illegible
In what ways does a hybrid mobile app combine the functionality of a mobile web app and a native app?
Hybrid app runs inside a native container on the mobile device and has access to the device's API's which allows it to take advantage of many of the devices features that are normally not accessible by a mobile web app
What is an IPb6 address and why are they necessary?
IPv6 is the latest version of the Internet Protocol, which identifies devices across the internet so they can be located.
What function do IXPs serve?
IXPs: Internet Exchange points that support internet service providers to exchange data at a point - They transfer data between different internet service companies even when connections are poor at exchange points.
How would you protect your firm against a Denial of Service attack?
Increase the redundancy of the network and set up firewalls
Name the major points of vulnerability in a typical online transaction.
Internet Communication Servers Clients
Describe the three different stages in the evolution of e-commerce.
Invention (1995-2000): explosive growth and extraordinary innovation; very euphoric time in American history, key e-commerce concepts were created, ended bc of stock market crash Consolidation (2001-2006): a more business driven approach instead of technological approach, large traditional firms learned how to use the web to strengthen their marketing approaches, e-commerce changed from not just retail products but to more complex things like travel and financial services. Reinvention (2007- Present): began with the introduction of the I-Phone in 2007, e-commerce has been rapidly transformed by the Web 2.0, this period is a sociological, business and technology phenomenon, "social, mobile and local" time period.
What is crowdfunding and how does it help e-commerce companies raise capital?
Is a group of people who come together to pitch a little bit of money into an idea or company
Why is Bitcoin so controversial?
It has no purchase history, origin, and can be used without any complete information, with complete anonymity.
Why is it less risky to steal online? Explain some of the ways criminals deceive consumers and merchants.
It is less risky to steal online because no physical stealing is taking place. Some ways criminals take advantage are through spoofing, phishing, and other viruses.
Discuss why EBPP systems are becoming increasingly popular.
It saves consumers time from having to write and mail checks. It also saves consumers and businesses on postage costs and businesses on processing cost. Companies can also better and more efficiently enhance their marketing efforts with online billing systems.
How does spoofing threaten a website's operations?
It threatens a website by sending customers to knock off websites that will steal your information when you order, and in return make your customers not trust you as much.
What are Java and JavaScript? What role do they play in website design?
Java- is a programming language that allows programmers to create interactivity and active content on the client computer, thereby saving considerable load on the server JavaScript- a programming language invented by netscape that is used to control objects on an HTML page and handle interactions with the browser They play a role in website design by making the client have a more interactive experience, and are used as an object control tool to enhance different websites that clients use.
Discuss the differences between a simple logical and a simple physical website design.
Logical design: includes a data flow diagram that describes the flow of information at your e-commerce website. Physical design: translates the logical design into physical components.
What is the difference between a market opportunity and a marketspace?
Market Opportunity is a business possibility they can take to capitalize on increasing demand of that product Market Place is a virtual place where buyers and sellers meet
What platform do the majority of Internet users in the United States use to access the Internet?
Mobile devices
What is the difference between a mobile web app and a native app?
Mobile web app:- app that is built to run on the mobile web browser built into a smart phone or tablet Native App:- app that is designed specifically to operate using the mobile device's hardware and operating system
What is NFC and how does it work?
Near Field Communication (NFC) is used to share information between devices by using a set wireless technology present within a short-range of 50mm or 2 inches.
What is PHP and how is it used in web development?
PHP is an open source, general purpose scripting language that is most commonly used in server-side web apps to create dynamic web page content
What are the three basic building blocks of the Internet?
Packet Switching TCP/IP Communications Protocol Client/Server Computing
Identify and discuss the five steps in developing an e-commerce security plan.
Perform a risk assessment Develop a security policy Develop an implementation plan Create a security organization Perform a security audit
Besides the examples given in the chapter, what are some other examples of vertical and horizontal portals in existence today?
Portal - offers powerful search tools as well as a package of content such as emails, instant messaging, video streaming etc all in one place Vertical Portal - are focussed on content to attract more users and get to the point Horizontal Portal - serves as an entry point to several firms in the same industry or to the same type of suppliers. examples of portals - iGoogle - Reddif - AOL
Name three of the business consequences that can result from growth in information density.
Price transparency, cost transparency, price discrimination
What are some of the policies e-commerce businesses must develop before launching a site, and why must they be developed?
Privacy Policy:- A set of public statements declaring to customers how you treat their personal information that you gather on the website Accessibility Rules:- A set of design objects that ensure disabled users can effectively access your site They must be developed to ensure to customers that their information is protected and they will have the ability to access their websites.
What is Project Loon?
Project Loon was developed with the aim of providing economic internet access across the world. It comprises a network of balloons that would float above in the stratosphere higher than the airplanes and the weather.
Why was the development of the browser so significant for the growth of the Web?
Provided access for anyone who used a computer. This made it possible for people to share information to each other. Then commercial browsers were launched that were more user friendly. It has become so significant because of the demand of e-commerce since the web has commercialized
What are the differences between a public, a private, and a hybrid cloud?
Public cloud is cloud computing that's delivered via the internet and shared across organizations. Private cloud is cloud computing that is dedicated solely to your organization. Hybrid cloud is any environment that uses both public and private clouds.
Briefly explain how public key cryptography works.
Public key cryptography uses a pair of keys to encrypt and decrypt data to protect it against unauthorized access or use.This key is used to encrypt the message, and to send it to the recipient. When the message arrives, the recipient decrypts it using a private key, to which no one else has access.
How does responsive web design differ from adaptive web design?
RWD- automatically adjust the layout of a website depending on the screen resolution of the device AWD-server hosting the website detects attributes of the device making then request, and using predefined templates based on device screen size along with CSS and javascript loads a version of the site that is optimized for that device
What are the basic capabilities of a web server?
Security services, File Transfer Protocol, Search Engine, and Data Capture
What are some of the steps a company can take to curtail cybercriminal activity from within a business?
Some steps a company can take to curtail cybercriminal activity from within a business by using firewalls or a proxy server so that they will be caught before they're able to destroy everything.
Why is adware or spyware considered to be a security threat?
Spyware and adware can track and transmit information about the user and even change the users configuration settings
Define the systems development life cycle and discuss the various steps involved in creating an e-commerce site.
Systems development life cycle: a methodology for understanding business objectives of a stem and designing appropriate technology solution 5 steps: 1) Identify specific business objectives for the site, and develop a list of system functionalities and information requirements 2) Develop a system design specification 3) Build the site; either by in house personnel or outsourcing 4) Test the system (unit testing, system testing, split A/B testing, acceptance testing etc) 5) Implement and maintain the site
Why is a multidisciplinary approach necessary if one hopes to understand e-commerce?
Technical Approaches and behavioral approaches
How are e-commerce technologies similar to or different from other technologies that have changed commerce in the past?
The Internet and the Web are similar to other technologies that have changed commerce in the past in that each new technological innovation spawns explosive growth characterized by thousands of start-up companies. Many of these fail in a period of retrenchment and consolidation that follows establishment
Briefly discuss the disadvantages of credit cards as the standard for online payments. How does requiring a credit card for payment discriminate against some consumers?
The limitations involve security, merchant risk, administrative and transaction costs, and social equity. Millions of young adults do not have credit cards, along with almost 100 million other adult Americans who cannot afford cards, so requiring a credit card for payment is discriminate against some consumers.
Why is system testing important? Name the types of testing and their relation to each other.
These testing processes help ensure that there are no defects for the website, and ensures that the website is implemented in the most effective way possible. Types of testing: Unit Testing- tests the websites modules one at a timeSystem Testing- tests the website as a whole, in a way a user would use the site Acceptance Testing- verifies that the business objectives of the system as originally conceived are working A/B Testing (Split Testing)- involves using two different versions of a web page or or website to different users to see which one performs better Multivariate Testing- is a more sophisticated way of testing. involves identifying specific elements on a web page and creating versions for each element then creating a unique combo of each element and version to test.
Would you say that Amazon and eBay are direct or indirect competitors? (You may have to visit the websites or apps to answer.)
They are direct competitors - because they are selling similar products or services - They serve the same group of consumers - They sell similar products and services - They both offer new and used products - They are both solely based online - Both offer free shipping and other discounts
Explain why an e-commerce site might not want to report being the target of cybercriminals.
They don't want their customers to think they're unsafe and untrustworthy.
Besides news and articles, what other forms of information or content do content providers offer?
They offer: - Website content - SEO content - Social media marketing - Provide media such as pictures and videos
What role does a Tier 1 ISP play in Internet infrastructure?
Tier 1 ISPs have "peering" arrangements with other Tier 1 ISPs to allow Internet traffic to flow through each other's cables and equipment without charge.
Compare online and traditional transactions in terms of richness.
Traditional transactions are considered to be more rich because of the face-to-face interaction..however they're limited to how many people can be reached at a certain time. Online transactions have the potential to be rich through the use of an online chat with a sales person because that can come fairly close to a customer's experience in like a small retail shop or something. They also sell to a much bigger audience.
What are the eight key components of an effective business model?
Value Proposition Revenue Model Market Opportunity Competitive Advantage Market Strategy Competitive Environment Organizational Development Management team
Compare and contrast the various scaling methods. Explain why scalability is a key business issue for websites.
Vertical: increasing the processing power of individual components Horizontal: employing multiple computers to share the workload among servers Scalability is a key issue for businesses because if it is disregarded, it may slow down access and become an inconvenience for customers. If it is slow, or inconvenient for customers it may create loss for the company.
What are the major differences between virtual storefronts, such as Bluefly, and bricks-and-clicks operations, such as Walmart? What are the advantages and disadvantages of each?
Virtual Storefronts - Have an online website, and does not have a physical storefront - Consumers can browse products, read reviews, and purchase goods/services with a click of a button Advantages: - Cost effective (no physical cost for store) - Ability to have scope, and reach a larger audience - Provides better prices for consumers Disadvantages: - some consumers don't trust online companies - customers aren't able to physically see the products as well as they would in a store - hard to create CRM or loyalty. Bricks & Clicks - Have both a physical storefront and an online website to purchase goods/services - Can purchase online or in store Advantages: - Gives consumers the both of both worlds; they can view the product online and they have the choice to order it or go see it first then purchase it - Payments can be directly made to the merchant Disadvantages: - Sometimes products are available on the website, but are no longer available in store - Difficult to open a store in every geographic area
Why is web server bandwidth an important issue for e-commerce sites?
Web server bandwidth is important for any functioning site. If the bandwidth limit is reached, then the website will not be accessible. It's important that bandwidth should be high.
Why is a website so costly to maintain? Discuss the main factors that impact cost.
Websites are always in a process of change, improvement, and correction. The long term success of the website is determined by a dedicated team of employees whose job is to monitor the website, and adapt to any changing market conditions. Main factors that impact loss: Benchmarking- site is compared with competitors in terms of response speed, quality of layout, and design. Team has to keep the site current on pricing and promotions as wellTech Resources- There is a huge cost for servers and updated versions as well as necessary infrastructure as well as responding to emergency situations (ie. links lost and the site goes down) Human Resources- You will need a dedicated team of employees with skills to manage general administrations, testing, debugging, and responding to emergency situations as well as manage data files.
What are the main factors to consider when choosing the best hardware platform for your website?
When choosing the best hardware platform you have to understand the factors that affect the speed, capacity and scalability of your website.
How have the unique features of e-commerce technology changed industry structure in the travel business?
e-commerce has opened a whole new door for the travel industry. It has allowed people to select travel types of their choice, accommodations, allows you to review and see different comments/experiences that other people had while traveling. People have the ability to book an air flight from their smartphone with a click of a button.
What are the key success factors for exchanges? How are they different from portals?
exchanges - corporate suppliers and buyers meet and close deals in a digital market place Portals bring information from diverse sources, and provides access to different websites, industries, or sectors, whereas an exchange is specific for a particular industry
What is 5G?
fifth-generation technology standard for broadband cellular networks,
What are the main factors to consider when developing an e-commerce presence?
hardware, software, design, telecommunications, HR, management
Discuss the ways in which the early years of e-commerce can be considered both a success and a failure.
in the early years of ecommerce (innovation stage) it was successful with the digital infrastructure created during the period solid enough to sustain significant growth in e-commerce during the next decade, and a mixed business success, with significant revenue growth and customer usage, but low profit margins which ultimately resulted in the stock market crash...there wasn't enough bandwidth for anything complex.
What is Web 2.0?
it's the term given to describe a second generation of the WWW- it focusing on the ability for people to collaborate and share information online. Examples - Youtube, Facebook, Twitter.
Explain how packet switching works.
method of slicing digital messages into packets, sending the packets along different paths as they become available, and then reassembling the packets once they arrive at their destination
What are those who take a behavioral approach to studying e-commerce interested in?
primarily interested in e-commerce because of its implications for firm and industry value chains, industry structure, and corporate strategy
What are Amazon's primary customer value propositions?
selection and convenience
Compare and contrast the capabilities of Wi-Fi and cellular wireless networks.
similarities: - both provide access to the internet through different devices - sharing of information, photo and text is possible - quality of the network depends on the service provider and the consistency of the hardware differences: - cellular wireless networks. are based on telephone networks to connect to the internet - speed of wifi is faster than cellular wireless networks. - less expensive to connect to wifi - wifi is limited to geographic area, whereas cellular wireless networks can connect anywhere
What are the main differences between single-tier and multi-tier site architecture?
single tier:- website software is more simple consisting of a server computer running basic web server software two-tier:- web server responds to requests for webpages, and a database server provides backend data storage multi-tier:- web server is liked to a middle-tier layer that includes application servers that perform specific tasks, and also has a backend layer of existing corporate systems containing product, customer, and pricing info. provides the fastest performance
