MIS Chapter 7: E-Business and E-Commerce

Electronic Business (E-Business)

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 Mall

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

Auction

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.

Stored-Value Money Cards

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.

Person-to-Person Payments

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.

Multichanneling

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

Electronic Marketplace

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

Business-to-Employee Electronic Commerce (B2E)

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

Reverse Auctions

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

Forward Auctions

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

Buy-Side Marketplace

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

Sell-Side Marketplace

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

Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Electronic banking (cyberbanking) - involves conducting various banking activities from home, at a place of business, or on the road instead of at a physical bank location Online securities trading - involves buying and selling securities over the web Online job matching - advertise available positions, accept resumes, and take applications on the Internet Online travel services - purchase airline tickets, reserve hotel rooms, and rent cars Online advertising - makes the advertising process media-rich, dynamic, and interactive

Mobile Commerce (M-Commerce)

Electronic commerce conducted in a wireless environment.

Consumer-to-Consumer Electronic Commerce (C2C)

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

Business-to-Business Electronic Commerce (B2B)

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

Business-to-Consumer Electronic Commerce (B2C)

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

Exchanges (Public Exchanges)

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.

Disintermediation

Elimination of intermediaries in electronic commerce.

Due to privacy issues, it is illegal for e-commerce Web sites to use cookies to record their customer's past behaviors and discover their identity. True/False

False

The sales tax laws that apply to brick-and-mortar stores also apply to all e-commerce stores. True/False

False

Trademark owners in the U.S. are not allowed to sue for damages in cases of cybersquatting. True/False

False

Spamming

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

Permission Marketing

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

Viral Marketing

Online word-of-mouth marketing.

Virtual (or Pure Play) Organizations

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

Brick-and-Mortar Organizations

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

Clicks-and-Mortar Organizations

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

E-Procurement

Purchasing by using electronic support.

Cybersquatting

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

Describe the three business models for business-to-business electronic commerce.

Sell-side marketplace - organizations attempt to sell their products or services to other organizations electronically from their own private e-marketplace website or from a third-party website Buy-side marketplace - model in which organizations attempt to buy needed products or services from other organizations electronically E-marketplaces (public exchanges) - in which there are many sellers and many buyers and are open to all business organizations as they are frequently owned and operated by a third party

Group Purchasing

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

Channel Conflict

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

Electronic Retailing (E-Tailing)

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

Business Model

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

Electronic Commerce (EC or E-Commerce)

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

E-Government

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.

Electronic Storefront

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

Discuss the ethical and legal issues related to electronic commerce.

Threats to privacy, know who buyers are, tracking an individual's activities on the Internet by cookies.

Cyberbanking

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.

Types of public exchanges

Vertical exchanges - connect buyers and sellers in a given industry Horizontal exchanges - connect buyers and sellers across many industries Functional exchanges - needed services such as temporary help or extra office space are traded on an as-needed basis

Organizations typically face issues related to e-tailing including: a. Companies face issues in both of these areas b. Companies do not face issues in either of these areas c. Channel conflict d. Order fulfillment

a. Companies face issues in both of these areas

eBay is an example of which type of e-commerce? a. Consumer-to-consumer b. Government-to-citizen c. Business-to-consumer d. Business-to-business e. Consumer-to-business

a. Consumer-to-consumer

A ____________ is automatically launched by some trigger and appears in front of the active window. a. Pop-up ad b. Random banner c. Keyword banner d. Pop-under ad e. Text box

a. Pop-up ad

In the __________ marketplace model, the reverse auction is typically used. a. Sell-side b. Buy-side c. Group purchasing d. Desktop purchasing e. Electronic exchange

b. Buy-side

____________ and ____________ are the two major challenges for the sellers in e-commerce. a. Channel conflict; advertising b. Channel conflict; order fulfillment c. Advertising; large orders d. Order fulfillment; large orders

b. Channel conflict; order fulfillment

In ____________, needed services such as temporary help or extra space are traded on an as-needed basis. a. Buy-side marketplaces b. Functional exchanges c. Sell-side marketplaces d. Horizontal exchanges e. Vertical exchanges

b. Functional exchanges

Businesses and organizations set up Web sites to: a. Enhance their reputation b. Reduce operational transaction costs c. All of these d. Induce people to visit a physical location e. Sell goods and services

c. All of these

Manufacturers or retailers sell directly to customers in which of the following business models? a. Name-your-own-price b. Affiliate marketing c. Online direct marketing d. Find-the-best-price e. Electronic tendering system

c. Online direct marketing

When organizations come to a company's Web site for procurement, such business is classified as a(n): a. Electronic exchange b. Buy-side marketplace c. Sell-side marketplace d. None of these

c. Sell-side marketplace

______ accounts for the majority of e-commerce transactions. a. C2C b. B2C c. G2C d. B2B e. B2E

d. B2B

When e-commerce is done in a wireless environment, this is called: a. Consumer commerce b. Pervasive commerce c. Wireless commerce d. Mobile commerce e. Location commerce

d. Mobile commerce

Describe the eight common types of electronic commerce.

Business-to-Consumer (B2C) - the sellers are organizations and the buyers are individuals Business-to-Business (B2B) - the sellers and the buyers are businesses Consumer-to-Consumer (C2C) - an individual sells products or services to other individuals Business-to-Employee (B2E) - an organizations uses electronic commerce internally to provide information and services to its employees eGov - use of Internet technology in general and e-commerce in particular to deliver information and public services to citizens and business partners and suppliers Mobile commerce - e-commerce that is conducted entirely in a wireless environment Social commerce - delivery of electronic commerce activities and transactions through social computing Conversational commerce - electronic commerce using messaging and chat apps to offer a daily choice, often personalized, of a meal, product, or service

Smart Cards

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

Electronic Payment Mechanisms

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