E-commerce Chapter One Review Questions

9. Give examples of B2C, B2B, C2C, and social, mobile, and local e-commerce besides those listed in the chapter

B2C- Me buying off amazon B2B-Amazon buying whole foods C2C- Selling items on letgo

11. Describe the three different stages in the evolution of e-commerce.

Innovation, consolidation, and reinvention

3. What are some of the unique features of e-commerce technology?

Ubiquity, Global reach, universal standards, richness, interactivity, information density, personalization and customization, social technology

8. What is Web 2.0

Current day of technology compared to old. Web apps, WIKIS, Clouds Social Networks.

12. Define disintermediation and explain the benefits to Internet users of such a phenomenon. How does disintermediation impact friction-free commerce?

Displacement of market middlemen who traditionally are intermediaries between producers and consumers by a direct relationship between producers and consumers. 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

1. Difference between E-Commerce and E-business

If we regard e-commerce as different from e-business, then the only valid view we can adopt is that e-commerce is a narrower discipline. E-business accounts for all business processes conducted online, while e-commerce is restricted to buying and selling.

5. What are three benefits of universal standards?

Lowers cost of industry, lowering barrier to entry, enable broad scope strategies

4. What is market space

Market space is a relatively new concept in marketing which is a virtual market place. It is an electronic information exchange environment in which the constraints of physical boundaries are eliminated.

17. Why is a multidisciplinary approach necessary if one hopes to understand e-commerce?

Multidisciplinary approach is necessary if one hopes to understand e-commerce because you need to understand the technical approach, how it works, and behavioral approach, how people react to the website

14. What is a network effect, and why is it valuable?

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

7. Name three of the business consequences that can result from growth in information density.

Price transparency, cost transparency, price discrimination

15. Discuss the ways in which the early years of e-commerce can be considered both a success and a failure.

Profitable after years of losses, dotcom bust

10. 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

What are some privacy issues Facebook has created?

Things like investigations, screenings and jobs can find things about you your information is transparent

6. Compare online to traditional transactions

Traditional vs online transactions Traditional face to face service but limited to amount of people online is worldwide.

13. What are some of the major advantages and disadvantages of being a first mover?

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

16. What are five of the major differences between the early years of e-commerce and today's e-commerce?

having the first mover's advantage, there weren't any government regulations before, the markets were "perfect" before and now they are imperfect, it was more technology driven before instead of business driven, and now there are "clicks and bricks" then pure strategies.

19. 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

2. What is information asymmetry?

sometimes referred to as information failure, is present whenever one party to an economic transaction possesses greater material knowledge than the other party. This normally manifests itself when the seller of a good or service has greater knowledge than the buyer, although the opposite is possible.