Chapter 5 - Electronic Commerce and Enterprise Systems

What is electronic cash?

Electronic cash is any amount of money that is computerized, stored, and used as cash for e-commerce transactions.

Electronic commerce definition (conducting business...)

Electronic commerce is simply conducting business activities electronically over computer networks.

What is a key-decision for new e-commerce companies?

A key-decision for new e-commerce companies involves whether they want to host their own web-site or allow a third party support/Web service provider to do it for them.

An Address Verification System compares...

An address verification system compares the address on file with the address provided by the cardholder. An address verification system is a check built into the payment authorization request.

An average of what percent of all online shopping carts are normally abandoned?

An average of 74% of all online shopping carts are normally abandoned.

What is an electronic exchange?

An electronic exchange is an electronic forum where manufacturers, suppliers, and competitions buy and sell goods, trade market information, and run back-office applications.

Response time (ideal)

An ideal response time for Web site should be under one second.

Success rate

An ideal success rate for a Web site should be 99% or above.

Authentication technologies are used by many organizations to do what?

Authentication technologies are often used by organizations to confirm the identities of a user who is attempting to access the information or assets.

Motivation for sale

B2B - businesses are motivated to purchase or sell because of business decisions or needs B2C - individual consumer's need or feeling C2C - individual consumer's need or emotion (feeling).

Complexity of buying process

B2B - extremely complex; much room for negotiation on quantity, quality, cost, etc. B2C - relatively simple - limited negotiations on price or delivery options B2C - relatively simple - limited negotiations on delivery options - negotiation mainly focus on price.

Number of decision makers involved

B2B - multiple people (a dozers or more) involved with decisions making B2C and C2C - one or two people

Length of sales process

B2B - says to months B2C - days to weeks C2C - hours to days

Differences among B2B, B2C, and C2C e-commerce: Typical value of sale

B2B - thousands to millions of dollars B2C - tens or hundreds of dollars C2C - tens of dollars

Uniformity of offer

B2B - typically a uniform product offering B2C - personalized product offering C2C - single product offering, one of a kind

B2B e-commerce stands for?

B2B e-commerce stands for Business-to-Business electronic commerce.

Why must companies and individuals involved in C2C be careful?

Companies and individuals involved in C2C must be careful that they do not violate any county, state, and country legal jurisdictions.

Consortium-operated exchanges are run by...

Consortium-operated exchanges are run by a group of traditionally competing organizations/companies with common needs (procurement needs).

What is C2C e-commerce?

Consumer-to-Consumer electronic commerce is a subset of electronic commerce that involves electronic transactions between consumers; these types of transactions are facilitated by a third party.

A Transaction Processing system provides valuable information to: Management information Systems Decision support systems Operating management systems True or False?

False; A Transaction Processing System provides valuable input to: Management Information Systems Decision support systems Knowledge management systems.

What are five core tasks that must be support by e-commerce software?

Five core tasks that must be supported by e-commerce software are: Catalog management Product configuration Shopping cart facilities E-commerce transaction processing Web traffic data analysis

Popular C2C e-commerce websites (5)

Five popular Consumer-to-Consumer electronic commerce websites can be: eBay eBid Bidz.com Taobao Craigslist

ICANN stands for?

ICANN stands for the Internet Corporation for Assigned Names and Numbers.

In 2015, over blank billion dollars in consumer incentives were distributed in North America.

In 2015, over 515 billion dollars in consumer incentives were distributed in North America.

How is the data or the business transactions processes in OLTP? What does this mean?

In Online Transaction Processing, the data, or each transaction, is processed immediately - this means that the organization's records, at any time, matches the current status or situation (regarding business transactions).

In order processing systems, processing flow begins with the receipt of the customer order. What happens then?

In order processing systems, the processing flow begins with receipt of the customer order, and after, the finished product inventory is checked to see if sufficient inventory is on hand to fill the order (readily available).

In order to gain goods and services during periods of economic downturn, what have consumers and businesses resorted to?

In order to gain goods and services during periods of economic downturn, certain consumers and businesses turn to bartering.

What is used strategically in order to target certain consumers with personalized advertisements (in order to incentivize them to return to the website)?

In order to incentivize consumers to return to the website, personalized advertisements are read and received by customers - this is known as Retargeting.

What are all of the participants in this type of electronic commerce?

In this type of commerce, all of the participants themselves are organizations.

Independent exchanges are open to...

Independent exchanges are open to any set of buyers and sellers in a market (you must pay a fee however).

OLTP stands for what?

OLTP stands for Online Transaction Processing.

What does SMEs stand for?

SMEs stands for Small and Medium-size Enterprises.

eXelate is a subsidiary of ?

eXelate is a subsidiary of Nielson.

What does eXelate provide to customers?

eXelate provides customers with the opportunity of accessing a database with more than 250 million business records.

What is a CA?

A certificate authority is a third party organization that sends the digital certificates to individuals or organizations.

What is this called: a check of additional digits typically printed in the back of a card.

A check of additional digits typically printed in the back of a card is known as Card Verification Number.

What is a digital certificate? (For online payment systems).

A digital certificate is an attachment to an e-mail message or data that is embedded onto a Web site - used to verify the identity of a particular user or the company itself.

About how many adult Internet users do not engage in electronic commerce (by buying online) because of privacy concerns?

About one-third of all adult internet users will not buy online due to privacy concerns.

What type of growth is B2C e-commerce facing and why? Steady or Slow or Fast?

B2C e-commerce is facing steady growth for three reasons: Cheaper goods and services via the Web. Online users can personalize their products. Social networks promote products and reach new customers.

B2C e-commerce stands for?

B2C e-commerce stands for Business-to-Consumer electronic commerce.

Batch Processing Systems - how are business transactions processed? What is the essential characteristic?

Batch Processing Systems accumulate business transactions over time, and then prepares for the processing of that data as a single unit or batch. The essential characteristics of Batch Processing Systems is the delay time that exists between the gathering of business transactions, and the preparing and actually processing the units or batches of business transactions. - there is a delay to update the organization's records.

B2C e-commerce allows for customers to...

Business-to-Consumer electronic commerce allows customers to deal directly with the business - this eliminates the use of intermediaries.

What does C2C e-commerce stand for?

C2C e-commerce stands for Consumer-to-Consumer electronic commerce.

What does CA stand for?

CA stands for Certificate Authority.

True or False. Coupon use is expected to increase due to mobile couponing (coupons now being available online - on a virtual device of some sort).

Definitely true. Coupon use is definitely expected to in trade due to mobile couponing (coupons being available on mobile devices).

B2B e-commerce is a useful tool for connecting businesses and suppliers through a virtual supply chain - this helps to reduce costs and resupply time. True or False?

Definitely true; B2B e-commerce is a useful tool for connecting businesses and suppliers through a virtual supply chain - this helps to reduce resupply times and costs.

E-Government is the use of information and communications technology to do three things. What are these three things?

E-Government is the use of information and communications technology to do three things: 1. Simplify the sharing of information 2. Speed formerly paper-based processes 3. Improve the relationship between the citizens and the government.

What does E-Government stand for?

E-Government stands for Electronic Government.

How much of the 515 billion dollars in consumer incentives were redeemed?

Less than one percent in the 515 billion dollars in consumer incentives were redeemed.

M-commerce stands for...

M-commerce stands for mobile commerce.

What have many online banks begun to do?

Many online banks have begun to allow their consumers/customers to engage in online banking activities through their mobile phones.

Many organizations find that blank enables them to provide faster, more efficient service.

Many organizations actually find that Online Transaction Processing (OLTP) enables them to provide faster, more efficient service.

Many software packages, in regards to transaction processing systems, provide...

Many software packages, in regards to transaction processing systems, provide integrated transaction processing system solutions to small and medium-size enterprises (SMEs)

Market segmentation definition

Market segmentation is all about about the identification of specific markets to then target the with advertisements.

Market segmentation normally divides the pool of customers into sub groups - these customers are separated (normally) by blank.

Market segmentation normally divides a pool of potential customers into sub groups - these customers are separated, normally, with the analyzation of their demographic characteristics.

Mobile commerce relies on the use of...

Mobile commerce (m-commerce) relies on the use of wireless devices.

What percentage did m-commerce, worldwide, account for of all retail e-commerce sales in the fourth quarter of 2015?

Mobile commerce accounted for 35 PERCENT of the total e-commerce sales that occurred In the last quarter of 2015 (the last three months of 2015).

What type of system is associated with this description? Must track the flow of data related to all cash follows that affect the organization.

Must track the flow of data related to all cash follows that affect the organization - associated with Accounting Systems.

Online banking customers can do what three things?

Online banking customers can do these three things: Check the amount of money that is within their savings, checking, and loan accounts. Transfer the money among accounts. Pay their bills.

Poor website performance drives customers to do what?

Poor website performance drives customers to move on to other e-commerce websites that have a more consistent and reliable performance.

Private exchanges are owned and operated by...

Private exchanges are owned and operated by a single company.

Purchasing systems are systems that support the blank business function.

Purchasing systems are systems that support the purchasing business function.

Since mobile phone applications have made it simple to compare prices of goods and services, what are two examples of what an individual can do to compare prices?

Since mobile phones have made price comparison more convenient and easier to accomplish, two examples of how that could be done are: You can scan the barcode on the item You can take a picture of the particular good/product.

Software packages have an initial cost of what?

Software packages have an initial cost of a few hundred to a few thousand dollars.

What are various global issues that are needed to be overcome?

Some global issues that are needed to be overcome involve: Time differences Language differences Infrastructure Currency differences Legal challenges

What are some limitations of handheld devices that complicate their use?

Some limitations of handheld devices that actually complicate their use for e-commerce are: Limited screen size Limited amount of buttons or options Less processing power and less bandwidth than laptops or desktops. Limited battery life. (Limited-life batteries).

Successful e-commerce solutions are designed to be blank. These solutions/activities can be upgraded to meet unexpected user traffic.

Successful e-commerce solutions are designed to be scalable. These solutions/activities can be upgraded in order to meet the unexpected user traffic.

What does TPS stand for?

TPS stands for Transaction Processing System.

What does TLS stand for?

TSL stands for Transport Layer Security.

What type of domain did the Internet Corporation for Assigned Names and Numbers create in order to attract mobile users to the Web?

The Internet Corporation for Assigned Names and Numbers made the .mobi domain in order to attract mobile users to the Web.

Which arm of finance adapted to the internet faster than any other one?

The arm of finance that adapted to the internet faster than any other one is: Brokerage Business.

What is a communications protocol that is used to secure important data during e-commerce?

The communications protocol that is normally used to secure important data and information during e-commerce, is known as Transport Layer Security (TLS).

Consumers lack trust in online...

The consumers typically lack trust in online sellers.

System availability

The downtime of a Web site (unexpected downtime) should be kept as close to 0 minutes as possible.

Advantages of Electronic and Mobile Commerce (there are 5 advantages).

The five advantages of Electronic and Mobile Commerce are: Reach new customers Reduce costs of doing business Speed the flow of goods and information Increase accuracy of order-processing Improve level of customer service

What five areas are e-commerce and m-commerce applications used in?

The five areas that e-commerce and m-commerce are used in are: 1. Retail and Wholesale - Manufacturing 2. Bartering - Retargeting 3. Price Comparison - Couponing 4. Investment and Finance - Banking 5. Marketing - Advertising.

What are the four payment systems used for e-commerce?

The four payment systems that are used for e-commerce are: Credit Cards Charge Cards Debit Cards Smart Cards

What are the fundamental services needed in Web server software (there are five):

The fundamental services needed in a Web server software are: Security and identification Retrieving and sending Web pages Web site tracking Web site development Web page development

What are the key technology infrastructure components that are needed for e-commerce websites to be successful (figure 5.5)

The key technology and infrastructure components (hardware and software) that are needed to make electronic commerce websites as successful as possible are: Web Server hardware (bottom) Server operating systems Server software E-commerce software High-speed connection to network Internet (network, virtual private network, etc.).

How is the market for m-commerce in North America compared to Western Europe and Japan?

The market for m-commerce in North America is maturing much later than in Western Europe and Japan (mainly because the Japanese love technological discoveries and due to how the older Americans are skeptical of buying things online).

What are the methods of buying mobile ad impressions (three methods)?

The methods of buying mobile ad impressions are: Cost per thousand (CPM) Cost per click (CPC) Cost per action (CPA).

What is the process of eliminating the use of intermediaries called?

The process of eliminating the use of intermediaries is known as disintermediation.

What three business activities are strong candidates for conversion to e-commerce?

The three business activities that are strong candidates for conversion to e-commerce are: Paper-based activities Time-consuming Activities that are in inconvenient for consumers.

What are the three different types of Electronic Exchanges?

The three different types of electronic exchanges are: Private electronic exchanges Consortium-operated electronic exchanges Independent electronic exchanges

There are three E-Commerce challenges. What are they?

The three e-commerce challenges and concerns are: 1. Dealing with Consumer Privacy Concerns 2. Overcoming Consumers' Lack of trust 3. Overcoming global issues

What are the three forms of e-Government?

The three forms of electronic Government are: G2B (Government-to-Business) G2C (Government-to-Citizen/Consumer) G2G (Government-to-Government).

What are the three main measures of success with Advertising?

The three main measures of success are: CTR (Click through rate) Number of users reached Number of actions users take.

What are the three processing systems that are included in Transaction Processing System?

The three processing systems that are included in the transaction processing system are: Order processing systems Accounting systems Purchasing systems

What are the two different types of B2B e-commerce? With definitions.

The two different types are: Buy-side e-commerce - businesses purchase goods and services from suppliers Sell-side e-commerce - suppliers produce and sell their goods to customers (other organizations).

What are the two different types of Transaction Processing Methods?

The two different types of Transaction Processing Methods are: Batch Processing System OLTP - Online Transaction Processing

The web server's required storage capacity depends on two things. What are these two things?

The web server's storage capacity depends on two things: The software that must run on the server The volume of the e-commerce transactions that must be processed.

What are three key Web site performance measures?

Three key website performance measures are: Response time Success rate Unexpected down time (system availability).

What do Transaction Processing Systems (TPSs) capture and process and why?

Transaction Processing Systems (TPSs) capture and process detailed data that is necessary to update the organization's records about fundamental business operations.

In order processing systems, the customer invoice is created and copy is included in customer shipment. True or False?

True; In order processing systems, the customer invoice is created and a copy is included in the customer shipment.

When Transactions entered into one system are processed, what happens?

When transactions entered into one system are processed, they create new transactions that are then transferred into other systems (another system).

Is B2B e-commerce a subset of e-commerce?

Yes, Business-to-Business electronic commerce is indeed a subset of electronic commerce.

Have certain Web sites been made in order to facilitate bartering? What are some examples?

Yes, certain Web Sites have indeed been made in order to facilitate bartering (mainly used during periods of economic downturn): Craigslist.org TradeAway.com Swapagift.com Swapstyle.com Swaptrees.com

For these reasons, must Web developers often have to rewrite Web applications so that the users with mobile devices can access them?

Yes, for these reasons and complications, web developers often have to rewrite web applications in order for the mobile users to have the ability to access them.

Are these software packages easy to install? Do they operate with a high total cost of ownership?

Yes, these software packages are indeed easy to install. However, they do not operate with a high total cost of ownership. Instead, they operate with a low total cost of ownership.

Are various measures being implemented to increase the security of electronic payments (with the use of credit cards)?

Yes, without a doubt; various measures are definitely being implemented in order to increase the security of payments with the use of credit cards.