Key Insights on E-Commerce Trends and Definitions

Digital transactions spending by 2026

$1.7 trillion

Online Sales Growth Prediction

As online sales become a larger percentage of all sales, online sales growth will likely eventually decline.

Synonym for e-commerce

Digital commerce.

Definition of e-commerce

Digitally enabled commercial transactions between and among organizations and individuals.

E-commerce and e-business systems

E-commerce and e-business systems blur together at the business firm boundary, where internal business systems link up with suppliers or customers.

Ubiquity

E-commerce is available just about everywhere and anytime.

Understanding e-commerce statement

E-commerce is unlike other previous technologically driven commercial developments in that social, cultural, and political issues related to e-commerce preceded the development of commercial applications of the technology.

Challenges posed by e-commerce

E-commerce poses special challenges to methods used in the past to protect intellectual property rights.

E-commerce Communication Model

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

Emergence of mobile, social, and local e-commerce

FALSE

Statement regarding e-commerce today

Intermediaries have disappeared.

Personalization

Involves targeting marketing messages to specific individuals by adjusting the message based upon a consumer's preferences or past purchasing behavior.

Element of friction-free commerce

It enables extraordinary returns on invested capital.

Projected B2B E-commerce Revenue

It is estimated that by 2026, B2B e-commerce will reach almost $10 trillion in revenues.

Characteristic of a nearly perfect competitive market

It is highly regulated.

Impact of e-commerce on commerce

It is likely that e-commerce will eventually impact nearly all commerce.

M-commerce Revenue Generation

M-commerce is the type of e-commerce that generates the most revenue.

Basic Web Policy During Invention Period

Maintain a basic, static website depicting the firm's brand.

Market dominance concern in 2022-2023

Netflix has not been the subject of concern about its increasing market dominance.

Statement about transaction costs

Overall transaction costs have dropped dramatically.

False Statement about Price Transparency

Price transparency refers to the ease with which consumers can find out what merchants pay for products.

Richness

Refers to the complexity and content of a message.

Network externalities in e-commerce technology

Related to the concept of network externalities.

Reach

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

Social e-commerce vs mobile e-commerce revenue in 2021

Social e-commerce generated more revenue than mobile e-commerce.

E-commerce technology social feature

Social technology allows users to participate in the creation of online content.

Reinvention period of e-commerce phenomenon

TRUE

Growth patterns of the Internet

The Internet has shown growth patterns that are similar to other electronic technologies of the past.

World's online population in 2022

The world's online population was estimated to be more than 4.5 billion.

Description of early years of e-commerce

They were a technological success but a mixed business success.

Mobile apps vs mobile browsers

Users still spend more time using mobile browsers than they do using mobile apps.

On-demand Service Company Example

Which of the following is not an example of an on-demand service company? Facebook.

Example of an on-demand personal services business during Reinvention period

Y Combinator

Displacement of market middlemen

disintermediation

Example of an e-commerce first mover that failed

eToys

Characteristic of the Consolidation phase of e-commerce

high-complexity retail products and services

Characteristic of e-commerce during the Invention period

low-complexity retail products

Visions of e-commerce expressed during early years

strategic follower strength.

Above all, e-commerce is a

technology driven phenomenon.

Characteristic of the Reinvention phase of e-commerce

the rapid growth of Web 2.0

Practice of researching a product online before purchasing at a physical store

webrooming

Social E-commerce Platforms

All of the following are platforms for social e-commerce except: Y Combinator.

Example of e-business

Amazon's inventory control system.

Information Asymmetry

Any disparity in relevant market information among parties in a transaction.

Price dispersion in e-commerce

FALSE

Leading Platform for Social E-commerce

Facebook.

Technology trend in e-commerce in 2022-2023

Growth of the Internet of Things slows down.

B2C E-commerce Growth

Has grown at double-digit rates since 2010.

Mobile device Internet access in 2022

In 2022, about 20% of Internet users in the United States accessed the Internet solely using a mobile device.

B2B E-commerce Value

In 2022, business-to-business exchanges of all kinds, online and offline, were estimated to be around $8.5 trillion.

Unique feature of e-commerce technology

Information asymmetry.

Retail vs B2B e-commerce revenues trend in 2022-2023

Retail e-commerce revenues exceed B2B e-commerce revenues for the first time.

E-commerce technology richness feature

Richness enables merchants to market and sell 'complex' goods and services to consumers via marketing messages that can integrate video, audio, and text.

Internet creation date

The Internet was created in the early 1990s.

Web technology statement

The Web is the technology upon which the Internet is based.

Menu Costs

The costs incurred by merchants to change product prices.

Definition of transaction costs

The costs of participating in a market.

Consolidation phase of e-commerce statement

The development of the mobile platform fueled a surge in e-commerce revenues.

Internet usage in the United States

Today, in the United States, more than 300 million people of all ages use the Internet at least once a month.

False Statement about Ubiquity

Ubiquity increases the cognitive energy required to transact in a marketspace.

False Statement about Universal Standards

Universal standards make price discovery more costly, slower, and less accurate.

Factors driving early years of e-commerce

an emphasis on exploiting traditional distribution channels.

Unfair competitive advantages occur when

one competitor has an advantage that others cannot purchase.

Example of Web 2.0

online social networks

Important societal issue related to e-commerce

preservation of privacy

C2C E-commerce Platforms

All of the following were among the original platforms for C2C e-commerce except: Amazon.

Mobile platform usage in 2022

Almost 250 million individuals in the United States used tablet computer apps in 2022.

Year e-commerce began

1995

Marketplace

A physical place you visit in order to transact.