Benefits of E-Commerce

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Questions and Answers

What is the primary benefit of increasing customer loyalty according to the 80/20 rule?

Reduction in product prices

Decrease in customer service costs

Increase in profit generation (correct)

Enhancement of brand visibility

Which of the following elements can differentiate customer service that customers are willing to pay extra for?

Extended warranty options

Order handling and delivery (correct)

Product variety

Social media presence

What is a key characteristic of usability testing for a website?

It focuses solely on the aesthetic design.

It eliminates the need for customer feedback.

It integrates marketing strategies with web design.

It evaluates the ease of use for visitors. (correct)

What does a customer-centric web site design focus on?

Meeting the needs of all site visitors Signup and view all the answers

In the context of web communication models, how is 'the Web' described?

Includes multiple modes of interaction Signup and view all the answers

Which of the following is a benefit of e-commerce to organizations?

Facilitates pull-type supply chain management Signup and view all the answers

How does e-commerce benefit consumers in terms of product availability?

Offers 24/7 shopping options Signup and view all the answers

Which of the following is NOT a societal benefit of e-commerce?

Increases traffic congestion Signup and view all the answers

What competitive advantage can organizations achieve through e-commerce?

Customization of products and services Signup and view all the answers

Which of the following does NOT enhance web site usability?

Excessive advertisements Signup and view all the answers

What is one way e-commerce reduces costs for organizations?

By lowering telecommunications costs Signup and view all the answers

How does e-commerce benefit less affluent people in society?

Offers products at lower prices Signup and view all the answers

What is a significant advantage of online shopping for consumers?

Ability to participate in virtual auctions Signup and view all the answers

What is a significant technical limitation of electronic commerce?

Lack of universally accepted standards Signup and view all the answers

Which aspect is critical for creating an effective online business presence?

Public image conveyed to stakeholders Signup and view all the answers

What key goal should not-for-profit organizations prioritize on their websites?

Information dissemination Signup and view all the answers

How can web presence be improved for businesses?

By making sites easier to use and more accessible Signup and view all the answers

Which of the following is a reason visitors may browse a company's website?

To learn about company products or services Signup and view all the answers

What should businesses focus on to foster visitor trust and loyalty?

Encouraging user engagement with interactive features Signup and view all the answers

What type of brand image is important for businesses when establishing their web presence?

Trusted corporate image Signup and view all the answers

Which of the following best describes the content requirement for effective web presence?

Information should be comprehensive and user-friendly Signup and view all the answers

Study Notes

Benefits of E-Commerce

E-commerce expands the marketplace to national and international markets.
It decreases the cost of creating, processing, distributing, storing and retrieving paper-based information.
E-commerce facilitates pull-type supply chain management, which allows for reduced inventories and overhead.
E-commerce allows for customization of products and services, which can provide a competitive advantage.
E-commerce can reduce the time between the outlay of capital and the receipt of products and services.
It supports business process reengineering (BPR) efforts.
E-commerce lowers telecommunications costs, as the internet is much cheaper than value added networks (VANs).
For consumers, E-commerce allows for shopping and transactions 24 hours a day.
E-commerce provides consumers with more choices and less expensive products and services, due to easy comparisons.
E-commerce allows for quick delivery of products and services, especially with digitized products.
E-commerce provides consumers with access to relevant and detailed information in seconds, rather than days or weeks.
It makes it possible to participate in virtual auctions.
E-commerce allows consumers to interact with other consumers in electronic communities and exchange ideas.
E-commerce benefits society by enabling individuals to work at home, resulting in less traffic and air pollution.
It allows some merchandise to be sold at lower prices, benefiting low-income individuals.
E-commerce enables people in Third World countries and rural areas to access products and services that would otherwise be unavailable.

Technical Limitations of E-Commerce

There is a lack of universally accepted standards for quality, security, and reliability.
The telecommunications bandwidth is insufficient.
Software development tools are still evolving.
There are difficulties integrating the internet and e-commerce software.
Special web servers in addition to the network servers are needed, which increases costs.
Internet accessibility is often expensive and/or inconvenient.

Creating an Effective Business Presence Online

A company's online presence conveys its public image to stakeholders such as customers, suppliers, employees, stockholders, and the general public.
An effective web presence is critical for all Web-operating firms, even the smallest and newest firms.
It is important for a business to establish the right web presence goals based on its industry and size.
A business should strive for a trusted corporate image and a consistent brand image.
Web sites for not-for-profit organizations have the primary goal of information dissemination.
Successful not-for-profit websites integrate information dissemination with fundraising and provide a two-way contact channel.

Web Site Usability

Most businesses fail to provide visitors with sufficient interactive contact opportunities.
Companies can improve their online presence by making their sites accessible to more people and easier to use.
Websites need to encourage visitor trust and foster feelings of loyalty toward the organization.
Web site success depends on how the information offered addresses the needs of visitors.

Customer-Centric Web Site Design

Web site design should focus on meeting all site visitors' needs.
This will make visitors' web experiences more efficient, effective, and memorable.
Special considerations are required for mobile devices.

Trust and Loyalty

An increase in customer loyalty can yield a significant increase in profit.
Service can be a powerful differentiating factor that customers are willing to pay extra for.
Repeated satisfactory service builds customer loyalty.
Customer service weaknesses include a lack of integration between call centers and websites, and general disappointment in responsiveness.

Usability Testing

Usability testing involves evaluating a website to ensure it is easy to use by visitors.
Usability testing helps avoid web site frustration, such as difficulty and confusion.
Companies should focus on simple site usability, contact information, and call center staffing.
Focus groups can provide information about customer needs.

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Description

Explore the numerous advantages of e-commerce in this quiz. From expanding marketplace reach to reducing costs and enhancing customer experiences, e-commerce plays a vital role in modern business. Test your knowledge about how it transforms supply chain management, customization, and consumer choices.