ISM 318 E-commerce(13th edition): Chapter 1

friction-free commerce

a vision of commerce in which information is equally distributed, transaction costs are low, prices can be dynamically adjusted to reflect actual demand, intermediaries decline, and unfair competitive advantages are eliminated.

ubiquity

available just about everywhere, at all times

B2B

business to business selling

B2C

business to consumer selling

customization

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

C2C

consumer to consumer selling

disintermediation

displacement of market middlemen who traditionally are intermediaries between producers and consumers by a new direct relationship between producers and consumers

social e-commerce

e-commerce enabled by social networks and online social relationships

All of the following are issues facing Pinterest except: spam copyright infringement scams inability to retain users

inability to retain users

e-commerce

involves digitally enabled commercial transactions between and among organizations and individuals

most important trend to note from a societal level

major issues include privacy and government surveillance, protection of intellectual property, online security, and governance of the Internet.

marketplace

physical space you visit in order to transact

social technology

provides a many-to-many model of mass communications

mobile platform

provides the ability to access the Internet from a variety of mobile devices such as smartphones, tablets, and other ultra-lightweight laptop computers

The total number of users or customers an e-commerce business can obtain is called: ubiquity information density interactivity reach

reach

Web 2.0

set of applications and technologies that enable user-generated content

universal standards

standards that are shared by all nations around the world

interactivity

technology that allows for two-way communication between merchant and consumer

Which of the following was the first large-scale digitally enabled transaction system in the B2C arena? the Baxter Healthcare system Telex EDI the French Minitel

the French Minitel

most important trend to note from a technology perspective

the mobile platform has finally arrived with a bang, driving astronomical growth in mobile advertising and making true mobile e-commerce a reality

personalization

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

information density

the total amount and quality of information available to all market participants

reach

the total number of users or customers an e-commerce business can obtain

mobile e-commerce (m-commerce)

use of mobile devices to enable online transactions

Internet

worldwide network of computer networks built on common standards.

In 2016, almost __________ of Americans who access the Internet use a mobile device at least some of the time. 73% 83% 63% 93%

93%

Which of the following statements is not true? Overall transaction costs have dropped dramatically. Information asymmetries are continually being introduced by merchants and marketers. Brands remain very important to e-commerce. Intermediaries have not disappeared.

Overall transaction costs have dropped dramatically.

Which of the following features of e-commerce technology is related to the concept of network externalities? interactivity information density richness universal standards

universal standards

Cost transparency refers to the ease with which consumers can find out the variety of prices in a market. True False

False

Retail e-commerce in the United States is not expected to continue growing at double-digit growth rates in 2016-2017. True False

False

The Internet has shown similar growth patterns as the other electronic technologies of the past. True False

False

The fact that e-commerce is conducted on the basis of universal standards increases search costs for consumers. True False

False

technology juggernauts behind e-commerce

the Internet the Web the mobile platform

richness

the complexity and content of a message

All of the following are considered a precursor to e-commerce except: the French Minitel Baxter Healthcare's PC-based remote order entry system the development of the smartphone the development of Electronic Data Interchange (EDI) standards

the development of the smartphone

e-business

the digital enabling of transactions and processes within a firm, involving information systems under the control of the firm.

All of the following are major social trends in e-commerce in 2016-2017 except for: the continuing conflict over copyright management and control concerns about the flood of temporary, low paying jobs without benefits being generated by on-demand service companies. the refusal of online retailers to accept taxation of Internet sales the growth of government surveillance of Internet communications

the refusal of online retailers to accept taxation of Internet sales

e-commerce

the use of the Internet, the Web, and mobile apps and browsers running on mobile devices to transact business.

Which of the following is not a major technology trend in e-commerce in 2016-2017? Mobile messaging services become popular with smartphone users. The mobile computing and communications platform creates an alternative platform for online transactions, marketing, advertising, and media viewing. Computing and networking component prices increase dramatically. Firms are turning to business analytics to make sense out of big data.

Computing and networking component prices increase dramatically.

Why is it important to study e-commerce?

The next five years hold out exciting opportunities--as well as risks--for new and traditional businesses to exploit digital technology for market advantage. It is important to study e-commerce in order to be able to perceive and understand these opportunities and risks that lie ahead.

B2B e-commerce is the largest type of e-commerce. True False

True

E-commerce technologies provide a unique, many-to-many model of mass communication. True False

True

Personalization involves targeting marketing messages to specific individuals by adjusting the message based upon a consumer's preferences or past purchasing behavior: True False

True

The Internet is a worldwide network of computer networks. True False

True

The Reinvention period of e-commerce is as much a sociological phenomenon as it is a technological or business phenomenon. True False

True

Ubiquity lowers the cognitive energy required to transact in a marketplace. True False

True

first mover

a firm that is first to market in a particular area and that moves quickly to gather market share

most important trend to note from a business perspective

all forms of e-commerce continue to show very strong growth

World Wide Web

an information system running on Internet infrastructure that provides access to billions of web pages

information asymmetry

any disparity in relevant market information among parties in a transaction

local e-commerce

e-commerce that is focused on engaging the consumer based on his or her current geographic location

Which of the following is an example of an e-commerce first mover that failed? eToys E*Trade Etsy eBay

eToys

marketspace

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

network effect

occurs where users receive value from the fact that everyone else uses the same tool or product