Podcast
Questions and Answers
E-commerce revenues are growing at an estimated 10 percent annually in 2010.
E-commerce revenues are growing at an estimated 10 percent annually in 2010.
False
The Internet is available only at work.
The Internet is available only at work.
False
E-commerce has a global reach across national boundaries.
E-commerce has a global reach across national boundaries.
True
There are different technology standards for the Internet in different countries.
There are different technology standards for the Internet in different countries.
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The market entry costs for merchants are higher in e-commerce.
The market entry costs for merchants are higher in e-commerce.
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The effort required to find suitable products is higher in e-commerce.
The effort required to find suitable products is higher in e-commerce.
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A private industrial network is owned by a supplier.
A private industrial network is owned by a supplier.
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E-commerce provides marketers with new ways of identifying and communicating with customers through long tail marketing and behavioral targeting.
E-commerce provides marketers with new ways of identifying and communicating with customers through long tail marketing and behavioral targeting.
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A private industrial network permits the sharing of production scheduling and inventory management.
A private industrial network permits the sharing of production scheduling and inventory management.
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Facebook's business model is not dependent on monetizing site traffic.
Facebook's business model is not dependent on monetizing site traffic.
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A private industrial network is a type of public exchange.
A private industrial network is a type of public exchange.
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E-commerce Web sites do not have tools to track a shopper's every step through an online store.
E-commerce Web sites do not have tools to track a shopper's every step through an online store.
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Web site personalization is not possible in e-commerce.
Web site personalization is not possible in e-commerce.
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A private industrial network is used for business-to-consumer e-commerce.
A private industrial network is used for business-to-consumer e-commerce.
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A private industrial network links a firm to its customers.
A private industrial network links a firm to its customers.
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Search engine marketing is not a format of online advertising.
Search engine marketing is not a format of online advertising.
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E-commerce is limited to digital markets and digital goods.
E-commerce is limited to digital markets and digital goods.
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Advertising networks have the ability to track individual consumers across the Internet.
Advertising networks have the ability to track individual consumers across the Internet.
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Electronic data interchange (EDI) is primarily used for business-to-consumer (B2C) e-commerce.
Electronic data interchange (EDI) is primarily used for business-to-consumer (B2C) e-commerce.
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Major industries have developed EDI standards that define the structure and information fields of electronic documents.
Major industries have developed EDI standards that define the structure and information fields of electronic documents.
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Companies are moving away from using the Internet for linking to other firms and instead using private networks.
Companies are moving away from using the Internet for linking to other firms and instead using private networks.
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EDI is used for procurement, enabling businesses to locate low-cost suppliers, search online catalogs, negotiate with suppliers, and place orders.
EDI is used for procurement, enabling businesses to locate low-cost suppliers, search online catalogs, negotiate with suppliers, and place orders.
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Suppliers cannot use EDI to automatically send data about shipments to purchasing firms.
Suppliers cannot use EDI to automatically send data about shipments to purchasing firms.
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The main goal when building an e-commerce web site is to focus primarily on the technology.
The main goal when building an e-commerce web site is to focus primarily on the technology.
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Building an e-commerce web site only requires a single skill set.
Building an e-commerce web site only requires a single skill set.
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Business objectives drive the technology in building an e-commerce web site.
Business objectives drive the technology in building an e-commerce web site.
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Web site budgets only include the cost of content creation.
Web site budgets only include the cost of content creation.
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There is only one way to build and host a web site.
There is only one way to build and host a web site.
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Building an e-commerce web site requires a significant upfront investment.
Building an e-commerce web site requires a significant upfront investment.
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Study Notes
E-commerce and the Internet
- E-commerce has 8 unique features:
- Ubiquity: available everywhere, anytime
- Global reach: crosses national boundaries
- Universal standards: one set of technology standards
- Interactivity: two-way communication between businesses and customers
- Information density: large amounts of information can be displayed
- Personalization: tailored to individual users
- Richness: ability to provide rich multimedia content
- Security: secure transactions and exchange of information
E-commerce Marketing
- Internet provides new ways of identifying and communicating with customers
- Long tail marketing: ability to reach a large audience inexpensively
- Behavioral targeting: tracking online behavior of individuals on thousands of websites
- Advertising formats: search engine marketing, display ads, rich media, and email
Web Site Visitor Tracking
- E-commerce websites can track a shopper's every step through an online store
- Close examination of customer behavior can help increase sales
- Personalization: creating unique web pages for individual users, improving customer experience and creating additional value
Business-to-Business E-commerce
- Private industrial networks (private exchanges): large firms link to suppliers, distributors, and other key business partners
- Owned by the buyer, permits sharing of product design, marketing, production scheduling, and inventory management
- Electronic data interchange (EDI): computer-to-computer exchange of standard transactions such as invoices and purchase orders
Building an E-commerce Web Site
- Assembling a team with skills in technology, site design, social and information policies, and hardware, software, and telecommunications infrastructure
- Customer demands drive the site's technology and design
- Business decisions drive the technology, not the reverse
- Alternatives in building the web site: completely in-house, mixed responsibility, or completely outsourced
- Co-location and web site budgets: several thousand to millions per year, with 50% of the budget going to system maintenance and content creation
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Description
This quiz covers the basics of e-commerce, its unique features, and how the internet has changed the marketplace. Learn about the benefits of e-commerce, including ubiquity and convenience, and how it has transformed the way we shop.
