Podcast
Questions and Answers
Which factor is primarily responsible for customer acquisition costs in electronic commerce?
Which factor is primarily responsible for customer acquisition costs in electronic commerce?
- Marketing spend (correct)
- Employee salaries
- Technical platform maintenance
- Customer return rates
What is the main component of variable costs in electronic commerce?
What is the main component of variable costs in electronic commerce?
- Facility rent
- Shipping and returns (correct)
- Employee wages
- Technical platform costs
In terms of revenue generation, which of the following behaviors is linked to increased purchase revenue?
In terms of revenue generation, which of the following behaviors is linked to increased purchase revenue?
- Higher customer turnover
- Decreased basket size
- Cross and upselling (correct)
- Infrequent purchases
Which of the following is NOT considered a fixed cost in an electronic commerce model?
Which of the following is NOT considered a fixed cost in an electronic commerce model?
What revenue model can provide recurring income in electronic commerce?
What revenue model can provide recurring income in electronic commerce?
What is a key role of customer data in electronic commerce models?
What is a key role of customer data in electronic commerce models?
What does the value capturing model in electronic commerce primarily involve?
What does the value capturing model in electronic commerce primarily involve?
Which of the following models represents online sales 1.0?
Which of the following models represents online sales 1.0?
What is a characteristic of online sales 2.0?
What is a characteristic of online sales 2.0?
Which of the following is an example of an online sales 3.0 model?
Which of the following is an example of an online sales 3.0 model?
What best describes the flow of goods or services in an electronic commerce model?
What best describes the flow of goods or services in an electronic commerce model?
Which component makes up the value creation model in electronic commerce?
Which component makes up the value creation model in electronic commerce?
What does 'clicks & mortar' refer to in electronic commerce models?
What does 'clicks & mortar' refer to in electronic commerce models?
What is the primary focus of content(-driven) models?
What is the primary focus of content(-driven) models?
Which of the following types of media are included in content(-driven) models?
Which of the following types of media are included in content(-driven) models?
In content(-driven) models, who typically pays for content access?
In content(-driven) models, who typically pays for content access?
What is one of the main principles underlying content(-driven) models?
What is one of the main principles underlying content(-driven) models?
Which stakeholders are involved in content(-driven) models?
Which stakeholders are involved in content(-driven) models?
What is NOT a characteristic of content(-driven) business models?
What is NOT a characteristic of content(-driven) business models?
What is an example of a media type in content(-driven) models?
What is an example of a media type in content(-driven) models?
Which of the following best describes the monetization method in content(-driven) models?
Which of the following best describes the monetization method in content(-driven) models?
What term is used to describe users who are both producers and consumers in digital business models?
What term is used to describe users who are both producers and consumers in digital business models?
Which aspect is NOT part of the value capturing model in user-generated content?
Which aspect is NOT part of the value capturing model in user-generated content?
What characterizes digital media companies compared to offline and hybrid media companies?
What characterizes digital media companies compared to offline and hybrid media companies?
Which of the following is an example of offline media companies?
Which of the following is an example of offline media companies?
In which model do media companies often diversify their offerings with additional digital platforms?
In which model do media companies often diversify their offerings with additional digital platforms?
What is a primary characteristic of traditional media companies?
What is a primary characteristic of traditional media companies?
What kind of resources do digital pure play media companies primarily rely on?
What kind of resources do digital pure play media companies primarily rely on?
What best describes the primary flow in value creation models related to digital media companies?
What best describes the primary flow in value creation models related to digital media companies?
What factor primarily influences scalability in content-driven business models?
What factor primarily influences scalability in content-driven business models?
What primarily determines the risk of imitability in digital content business models?
What primarily determines the risk of imitability in digital content business models?
Which of the following aspects has NOT fundamentally changed consumer media usage?
Which of the following aspects has NOT fundamentally changed consumer media usage?
How are service models characterized from an external perspective?
How are service models characterized from an external perspective?
Which of the following represents a potential challenge in scaling digital content businesses?
Which of the following represents a potential challenge in scaling digital content businesses?
What is a significant implication of the digital transformation for established offline publishers?
What is a significant implication of the digital transformation for established offline publishers?
What is typically required for monetization in digital service models?
What is typically required for monetization in digital service models?
Which of the following statements about content production and distribution is true?
Which of the following statements about content production and distribution is true?
What does the term 'bricks and mortar' refer to?
What does the term 'bricks and mortar' refer to?
What best describes the term 'click and mortar'?
What best describes the term 'click and mortar'?
Which of the following statements about Customer Acquisition Costs (CACs) is correct?
Which of the following statements about Customer Acquisition Costs (CACs) is correct?
Which of the following are drivers of electronic commerce?
Which of the following are drivers of electronic commerce?
What factor largely determines cost?
What factor largely determines cost?
What does the term "free lunch" mentality refer to?
What does the term "free lunch" mentality refer to?
Study Notes
Electronic Commerce Models Overview
- Electronic commerce has evolved over three decades, leading to various models and approaches in the digital marketplace.
- The model consists of four main components: flow of goods/services, flow of money, value capturing model, and value creation model.
- Customer data is vital for marketing, sales, and service processes, aiding in improving customer acquisition and retention.
Maturity Stages of Online Sales
- Online Sales 1.0: Features e-tailing and booking sites (e.g. Zappos, Expedia).
- Online Sales 2.0: Introduces shopping clubs and subscription models (e.g. Veepee, HelloFresh).
- Online Sales 3.0: Implements omnichannel management, integrating online and offline experiences (e.g. Tesco, Carrefour).
Drivers of Electronic Commerce
- Revenue Drivers: New customer acquisition through various channels (both online and offline), existing customer engagement, and enhancing purchase behavior.
- Cost Drivers: Primarily stem from variable costs, including customer acquisition, activation, fulfillment, and working capital management.
Scalability of E-commerce Models
- E-commerce business models are highly scalable due to their digital nature, enabling rapid expansion with existing digital infrastructure.
Content-Driven Models
- Content-driven models deliver digital media, including text, images, audio, and video, monetized either through user payments or advertising revenue.
- User-generated content serves both as producers and consumers, fostering a "prosumer" environment.
- Media companies show trends of convergence between offline and digital platforms, affecting growth dynamics.
Service Models Characteristics
- Service models focus on user interaction, delivering personalized digital services.
- Examples include language education platforms and virtual fitness clubs.
- Monetization occurs through direct user payments and advertisement placement.
Implications of Digital Transformation
- Consumer expectations have shifted, leading to a crisis for traditional media companies and necessitating digital transformation.
- The line between content production and distribution is blurring, impacting business models and value creation strategies in the digital space.
Summary of Key Points
- E-commerce models are complex, with growing sophistication and integration of online and offline channels.
- Content and service-driven business models are expanding, driven by changing user habits and technological advances.
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Description
Explore the key components of an electronic commerce model. This quiz covers the flow of goods and services, as well as the flow of money within the model. Understand the value creation and capturing mechanisms that drive e-commerce.
