E-Commerce Fundamentals Quiz and Flashcards

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Questions and Answers

What is the primary medium used for Electronic Commerce (EC)?

Fax machines

Telephone systems

Computer networks

Telecommunications networks (correct)

What is an example of E-Commerce?

An individual purchasing a book on the Internet (correct)

Purchasing a book from a physical store

A government employee attending a physical meeting

A business calling a toll-free number to order a product

What is the main difference between E-Business and E-Commerce?

E-Business is a subset of E-Commerce

E-Business is limited to online transactions

E-Commerce is a subset of E-Business (correct)

E-Commerce only involves buying and selling products

What is a characteristic of Click-and-Mortar organizations?

Conducting some e-commerce activities Signup and view all the answers

What is a unique feature of E-Commerce that allows businesses to reach a global audience?

Global Reach Signup and view all the answers

What is the term for organizations that conduct their business activities solely online?

Virtual (pure-play) Signup and view all the answers

What is an example of an E-Commerce activity that involves a company's intranet?

A manufacturing plant ordering electronic components from another plant Signup and view all the answers

What is the primary goal of E-Business?

To optimize a company's business activities using digital technology Signup and view all the answers

What is one of the effects of the ubiquity of internet/web technology in e-commerce?

Reduced shopping costs and enhanced customer convenience Signup and view all the answers

What is a result of the global reach of e-commerce?

A market space that includes billions of consumers and millions of businesses worldwide Signup and view all the answers

What is an effect of universal standards in e-commerce?

Lower market entry costs and lower consumers' search costs Signup and view all the answers

What is an advantage of the richness feature of e-commerce?

Supports video, audio, and text content and messages Signup and view all the answers

What is a characteristic of interactivity in e-commerce?

Consumers are engaged in dialog that dynamically adjusts their experience Signup and view all the answers

What is a result of increased information density in e-commerce?

Consumers have greater price transparency Signup and view all the answers

What is a result of personalization/customization in e-commerce?

Products and services can be customized to individual preferences Signup and view all the answers

What is a characteristic of social technology in e-commerce?

The technology promotes user content generation Signup and view all the answers

Study Notes

Electronic Commerce (EC)

EC refers to business transactions taking place via telecommunications networks, especially the Internet
It involves buying, selling, and exchanging products, services, and information via computer networks, including the Internet

Examples of E-Commerce

An individual purchasing a book on the Internet
A government employee reserving a hotel room over the Internet
A business ordering a computer using the seller's interactive telephone system
A business buying office supplies online or through an electronic auction
A retailer ordering merchandise using an EDI network or a supplier's extranet
A manufacturing plant ordering electronic components from another plant within the company using the company's intranet
An individual withdrawing funds from an automatic teller machine (ATM)

E-Business

E-business refers to the optimization of a company's business activities using digital technology
It includes supplier relations, customer service, and intra-business tasks
E-business is often used interchangeably with EC

Growth of E-Commerce

No specific notes on this topic

EC Concepts

Brick-and-Mortar (old economy) organizations: perform primary business offline
Click-and-Mortar (click-and-brick) organizations: conduct some e-commerce activities
Virtual (pure-play) organizations: conduct business activities solely online

Unique Features of E-Commerce

Ubiquity

Internet/Web technology available anywhere, anytime, 24/7, 365 days a year
Effect: marketplace becomes a "Market Space", enhancing customer convenience and reducing shopping costs

Global Reach

Transactions are across cultures and national boundaries
Effect: market space includes potentially billions of consumers and millions of businesses worldwide

Universal Standards

One set of technology standards: Internet standards
Effect: lower market entry costs and lower consumers' search costs

Richness

Supports video, audio, and text content and messages
Effect: possible to deliver rich messages with text, audio, and video simultaneously to large numbers of people

Interactivity

Technology works through interaction with the user
Effect: consumers engaged in dialog that dynamically adjusts experience, making them co-participants in the process of delivering goods to market

Information Density

Increases in information density: total amount and quality of information available to all market participants
Effect: consumers have greater price transparency, enabling merchants to engage in price discrimination

Personalization/Customization

Technology permits modification of information, goods, and services
Effect: products and services can be customized to individual preferences

Technology promotes user content generation
No specific effect mentioned

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Description

Learn about electronic commerce, its definition, and examples of online transactions, including buying, selling, and exchanging products and services over the internet.

E-Commerce Fundamentals