Chapter 10 MIS
What are the two most important management challenges in building a successful e-commerce presence?
Developing a clear understanding of your business objectives and knowing how to choose the right technology to achieve those objectives Building a successful e-commerce presence requires a keen understanding of business, technology, and social issues, as well as a systematic approach. Today, an e-commerce presence is not just a corporate Web site, but may also include a social network site, a Twitter company feed, and smartphone apps. Developing and coordinating all these different customer venues can be difficult.
Which of the following statements about the "wisdom of crowds" and crowdsourcing is true?
It reduces transaction costs for a customer.
Which of the following refers to the ability of firms to profitably market goods to very small online audiences, largely because of the lower costs of reaching very small market segments (people who fall into the long tail ends of a Bell curve)?
Long tail marketing
What is an effect of the universal technical standards of the Internet and e-commerce on customers?
Reducing search costs
__________ is the first phase in a timeline to start up a new e-commerce presence.
Planning
__________ refers to the ease with which consumers can find out the variety of prices in a market.
Price transparency
Which e-commerce business model offers services online?
Service provider
2nd degree price discrimination
bulk buying discounts
__________ are independently owned third-party Net marketplaces that connect thousands of suppliers and buyers for spot purchasing.
exchanges
Richness
how much content is available how much info is contained in the communication stream to me. (text aren't a rich medium because you can't decipher emotional components) Audio is more rich than text video allow you to see the person now. challenge is to find a way to create sustainable advantage
Which of the following best defines an electronic data interchange (EDI)?
An electronic data interchange (EDI) enables the computer-to-computer exchange between two organizations of standard transactions such as invoices, bills of lading, shipments schedules, and purchase orders.
Which of the following statements about e-commerce and business-to-business transactions is true?
B2B e-commerce creates efficiencies by enabling companies to locate suppliers, solicit bids, place orders, and track shipments in transit electronically.
What does information richness refer to?
Complexity and content of a message Traditional markets, national sales forces, and small retail stores have great richness: They are able to provide personal, face-to-face service using aural and visual cues when making a sale. The richness of traditional markets makes them powerful selling or commercial environments.
Which of the following best describes behavioral targeting?
Behavioral targeting refers to the tracking of the clickstreams (the history of clicking behavior) of individuals across multiple Web sites for the purpose of understanding their interests and intentions, and exposing them to advertisements that are uniquely suited to their interests.
Which of the following statements about the "wisdom of crowds" and crowdsourcing is true?
Crowdsourcing utilitizing the "wisdom of crowds" helps companies learn from customers in order to improve product offerings and increase customer value.
What type of service can tell you the price of a house you are looking at, or about special exhibits at a museum you are passing?
geoinformation A geoinformation service can provide a special kind of browser for smartphones equipped with a built-in GPS and compass that can identify your precise location and where the phone is pointed.
global reach
get for digital goods=zero trans cost great benefit accept when it comes to physical goods.
Social Technology
learn more about people through groups. figure out how many groups include you as a number.
prefect price discrimination
perfect 1st degree. each unit is a different price. different wants and needs. Customization cost could be different e comm allows you to find info to work with social media companies to send messages to you.
information asymmetry
reduced
3rd degree price dicrimination
senior nights, student discounts, ladies nights
interactivity
two way communication channels read an article with comments reviews on yelp why do companies fail to interact with customers? too complex, not right type of medium. lack of resources to solve problems solution: changing processes to respond to customers. should be an entire company job.
universal standards
well established tech. Had to evolve adopted compression standards critically important to evolve markets market entry cost reduction could help reduce search cost (dependent on info that you know)
What are the three major electronic commerce categories?
B2B, B2C, C2C Business-to-business (B2B) electronic commerce involves sales of goods and services among businesses; business-to-consumer (B2C) electronic commerce involves retailing products and services to individual shoppers; and consumer-to-consumer (C2C) electronic commerce involves consumers selling directly to consumers.
What revenue model offers basic services or content for free, while charging a premium for advanced or special features?
Free/freemium revenue model The idea is to attract very large audiences with free services, and then to convert some of this audience to pay a subscription for premium services. One problem with this model is converting people from being "free loaders" into paying customers. "Free" can be a powerful model for losing money. Next Question
What is the fastest growing form of e-commerce with some areas expanding at a rate of 50 percent or more per year, and which is estimated to grow to $300 billion in 2020?
M-commerce In 2017, m-commerce constituted about 37 percent of all e-commerce, with about $170 billion in annual revenues generated by retail goods and services.
Which item below would be considered direct goods?
Sheet steel used for auto body construction Direct goods are goods used in a production process.
What is information density?
The total amount and quality of information available to all market participants, consumers, and merchants alike E-commerce technologies reduce information collection, storage, processing, and communication costs while greatly increasing the currency, accuracy, and timeliness of information. Information density in e-commerce markets make prices and costs more transparent.
Which of the following best defines m-commerce?
The use of handheld wireless devices for purchasing goods and services from any location
What are prediction markets?
They are established peer-to-peer betting markets where participants make bets on specific outcomes.
Which of the following statements is true of a geoinformation service?
Waze is an example of a geoinformation service.
Which list below contains the correct four kinds of e-commerce presence?
Websites, e-mail, social media, and offline media For instance, in the case of Web site presence, there are three different platforms: traditional desktop, tablets, and smartphones, each with different capabilities. And for each type of e-commerce presence there are related activities you will need to consider. OK
A phenomenon called the wisdom of crowds could also be referred to as ________.
crowdsourcing Beyond merely soliciting advice, firms can be actively helped in solving some business problems using what is called crowdsourcing. In marketing, the wisdom of crowds' concept suggests that firms should consult with thousands of their customers first as a way of establishing a relationship with them, and second, to better understand how their products and services are used and appreciated (or rejected).
price discrimination
cupons, 100% legal
Goods that can be delivered over a digital network are called __________.
digital goods
Ron Coase
economist that made computing possible, transaction cost in firm. transaction cost reduce to zero market participation cost reduced more competition
About 80 percent of online B2B e-commerce is still based on proprietary systems for ____________.
electronic data interchange (EDI) Electronic data interchange enables the computer-to-computer exchange between two organizations of standard transactions such as invoices, bills of lading, shipment schedules, or purchase orders.
Which of the following can tell you where your friends are meeting?
Geosocial service
Which of the following statements about e-commerce and business-to-business transactions is true?
If even just a portion of inter-firm trade were automated, and parts of the entire procurement process assisted by the Internet, literally trillions of dollars might be released for more productive uses.
Which of the following best describes the affiliate revenue model?
In the affiliate revenue model, Web sites send visitors to other Web sites in return for a referral fee or percentage of the revenue from any resulting sales.
Which of the following best describes the free/freemium revenue model?
In the free/freemium revenue model, firms offer basic services or content for free, while charging a premium for advanced or special features.
E commerce became about in
1995 customers had to become more comfortable buying on the internet
What is a social graph?
A mapping of all significant online social relationships The social graph is synonymous with the idea of a "social network" used to describe offline relationships. You can map your own social graph (network) by drawing lines from yourself to the 10 closest people you know.
The ubiquitous
nature of the Internet reduces the customer's mental effort while making purchases. The ubiquitous nature of the Internet reduces the direct-marketing costs. The ubiquitous nature of the Internet does not reduce the sales revenue. "its everywhere"
personalization and customization
technologies permit mass mods marketing messages, products and services. ads shown to you by LG ad preferences are embedded in tv
Information Density
the total amount and quality of info available to all market participants help with buying decisions
price transparency increases
through information density allowing you to see if items are really worth the money much be aware of value of your products.
