E-commerce Concepts and Challenges

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Questions and Answers

Which technology is closely associated with enabling mobile e-commerce by storing consumer content and software?

Blockchain Technology

Cloud Computing (correct)

Virtual Reality

Augmented Reality

How does big data analytics impact e-commerce?

It enhances the understanding of consumer behavior through data tracking. (correct)

It decreases the available data for market analysis.

It eliminates the need for online customer service.

It reduces the ability to track customer preferences.

What is a major concern regarding privacy and security in e-commerce?

Storage of customer data on the cloud. (correct)

The lack of mobile device compatibility.

Limited payment options for consumers.

The inability to access the Deep Web.

What defines mobile commerce (M-Commerce)?

Transactions carried out via mobile devices with internet access. Signup and view all the answers

Which of the following best describes the Global Market Potential of e-commerce?

It allows businesses to reach a global customer base easily. Signup and view all the answers

What role do social networks play in e-commerce?

They enhance search capabilities for purchasing products. Signup and view all the answers

What is typically referred to as 'big data' in the context of e-commerce?

Large volumes of online data used for tracking and analysis. Signup and view all the answers

Which factor is NOT associated with the recent advancements in e-commerce technologies?

Introducing physical retail experiences into online markets. Signup and view all the answers

What is one significant advantage of e-commerce over traditional commerce?

Cross-cultural market transactions Signup and view all the answers

How do universal standards impact market entry for e-commerce merchants?

They lower market entry costs Signup and view all the answers

What concept describes the amount and quality of information accessible to market participants?

Information density Signup and view all the answers

In what way does e-commerce enhance consumer personalization?

By adjusting messages based on consumer interests Signup and view all the answers

What is the role of interactivity in e-commerce?

To promote two-way communication between merchants and consumers Signup and view all the answers

How has e-commerce technology influenced global market potential?

It provides a potential market equal to the world’s online population Signup and view all the answers

What distinguishes the social aspect of e-commerce technologies?

Enabling the creation and sharing of content among users Signup and view all the answers

Which of the following best describes a commercial transaction in e-commerce?

An exchange of goods, services, or money among parties Signup and view all the answers

What is one major advantage of ubiquity in e-commerce?

It allows for market transactions to occur anywhere and anytime. Signup and view all the answers

What does the term 'marketspace' refer to in e-commerce?

An enhanced marketplace existing beyond traditional boundaries. Signup and view all the answers

How has privacy evolved in the context of online platforms?

It has lost its significance due to public profiles. Signup and view all the answers

What is a crucial reason to study e-commerce?

To understand the opportunities and risks in the digital market. Signup and view all the answers

Which of the following describes the global reach of e-commerce?

The potential audience for e-commerce is worldwide. Signup and view all the answers

What is a significant challenge related to online security in e-commerce?

The prevalence of data breaches and hacking incidents. Signup and view all the answers

What role does cognitive energy play in e-commerce transactions?

It is the mental effort users expend to complete transactions. Signup and view all the answers

How have governments responded to the growth of e-commerce?

They have increasingly moved to tax e-commerce sales. Signup and view all the answers

Study Notes

Internet Of Things

Billions of Internet-connected devices are contributing to an exponential growth of data.

Internet and Mobile Platforms

Internet and mobile platforms allow content creation, sharing, and social connection.
Online profiles contribute to privacy concerns.
Concerns over commercial and government privacy invasion are increasing.

Government

Successfully moved toward taxation of e-commerce sales.

Online Security

Remains a significant issue with continuous reports of security breaches, malware, hacking, and other attacks.

Reasons To Study E-commerce

Understand opportunities and risks in e-commerce.
Identify technological, business, and social forces shaping e-commerce growth.
Analyze e-commerce business ideas, identify effective models, understand technology, address security and ethical concerns, and market effectively.

Unique Features of E-Commerce Technology

Marketplace

Physical space for transactions.

Ubiquity

Accessible anytime and anywhere.
Reduces transaction costs for consumers by eliminating the need for travel.
Lowers cognitive energy needed for transactions.

Marketspace

Extension of marketplace beyond boundaries, transcending time and location.

Global Reach

E-commerce transcends cultural, regional, and national boundaries, making it convenient and cost-effective.
Estimated global online population in 2020 was 4 billion, representing the potential market size for e-commerce merchants.

Universal Standards

Shared standards by all nations.
Lower market entry costs for merchants.
Reduced search costs for consumers.
Facilitates price discovery, making it efficient and accurate.

Richness

Complexity and content of a message.

Interactivity

Two-way communication between merchant and consumer.
Enables engaging interactions similar to face-to-face experiences.

Information Density

Total amount and quality of information available to all market participants.

Personalization and Customization

Personalization: Targeting messages to individuals based on name, interests, and past purchases.
Customization: Adapting products or services based on user preferences and prior behavior.

E-commerce technologies empower users to create and share content with a global community, fostering new social networks and strengthening existing ones.

Commercial Transaction

Exchange of goods, services, or money between parties.
Responsible for delivery of physical goods and tracking of goods flow.

Online Banks

Provide traditional banking services, including settlement and 24/7 service.

Administration of Commercial Activity

Includes departments related to industry, customs, tax, and trade.

World Wide Web (The Web)

Information system running on the Internet infrastructure, providing access to billions of web pages.
Developed in the early 1990s.
The key application that made the Internet commercially popular.

Two Types Of Web

Surface/Visible Web: Web pages identified by search engines.
Deep Web: Subscription content, databases, encrypted content.

Mobile Platform

Enables internet access via smartphones and tablets.
Represented a software evolution in how people interact with the internet.

Mobile Devices

Increasingly prominent in internet access.

Mobile Commerce (M-Commerce)

Transactions done via smartphones or mobile devices.
Accessible with wireless internet connectivity.
Transactions are typically simpler and faster compared to desktop or laptop experiences.

Major Trends in E-Commerce

Business

Social Networks: Enable social e-commerce by providing advertising, search, and purchase options.

Technology

Mobile Platforms: Drive growth in mobile advertising and enable true mobile e-commerce.
Mobile Messaging Services: Provide an alternative platform emerging as a commerce channel
Cloud Computing: Integral to mobile development, supporting consumer content storage and software.
Big Data: Companies leveraging the ability to track and analyze vast amounts of online data.

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Description

Explore the key concepts and challenges of e-commerce, including the impact of the Internet of Things, online security concerns, and privacy issues. This quiz will also examine the unique features and technological advancements driving e-commerce growth. Test your understanding of the opportunities and risks in this evolving digital landscape.