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Questions and Answers
E-commerce revenues are growing at an estimated 10 percent annually in 2010.
False
The Internet is available only at work.
False
E-commerce has a global reach across national boundaries.
True
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.
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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.
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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.
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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.
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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.
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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.
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Search engine marketing is not a format of online advertising.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
