E-Commerce: Price and Cost Transparency

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Questions and Answers

What is one of the advantages of B2B e-markets?

Automating transaction processes (correct)

Adding complexity to the supply chain

Increasing intermediaries in transactions

Reducing transparency in pricing

How does B2B e-markets impact pricing transparency?

Increases intermediaries in pricing

Decreases transparency by hiding transactions

Does not affect pricing transparency

Increases transparency by revealing market prices (correct)

What role do intermediaries play in B2B e-markets?

Increasing transaction processing time

Enhancing direct interaction between suppliers and buyers

Eliminating direct transactions between suppliers and buyers (correct)

Reducing efficiency in procurement processes

How does B2B impact the processing cost of transactions?

Reduces the costs by automating transaction processes Signup and view all the answers

Which aspect of B2B e-markets contributes to maintaining the moment of the supply chain and procurement processes?

Automating corporate processes Signup and view all the answers

What does CPM stand for in the context of display advertising?

Clicks Per Mille Signup and view all the answers

Which type of advertising model relies on charging advertisers based on the number of times their ads are clicked?

CPC advertising Signup and view all the answers

What is the purpose of Digital Rights Management (DRM) in the context of digital content?

To protect the distribution of digital content Signup and view all the answers

In Pay Per View access to a document, what does payment occur for?

Single access to the document Signup and view all the answers

What is the primary source of revenue for a site owner charging advertisers a rate card price according to the number of ads shown to site visitors?

CPM display advertising Signup and view all the answers

Which type of advertising model charges for single access to a document, video, or music clip that can be downloaded?

Pay Per View access Signup and view all the answers

What does price transparency refer to in E-Commerce markets?

Ease of consumers discovering a variety of prices Signup and view all the answers

How do online merchants benefit from information gathered about consumers?

They can personalize marketing messages and customize products based on preferences Signup and view all the answers

What is a key advantage of E-Commerce technology mentioned in the text?

Enables merchants to segment the market and engage in price discrimination Signup and view all the answers

How is personalization achieved in E-Commerce marketing?

Based on individual characteristics of consumers Signup and view all the answers

How do interactive technologies impact consumer interactions in E-Commerce?

They allow for a great deal of information gathering about consumers at the moment of purchase Signup and view all the answers

What role does cost transparency play in E-Commerce markets?

It helps consumers discover the actual costs merchants are paying for products Signup and view all the answers

Study Notes

Revenue can be generated through Pay Per View access to documents, videos, or music clips where users pay for single access, with or without password protection or Digital Rights Management.
Digital Rights Management (DRM) involves using various technologies to protect the distribution of digital content like software, music, movies, or other data.
Revenue can also come from CPM display advertising on sites, where site owners charge advertisers based on the number of ads shown to site visitors at a certain rate (e.g., 50 GBP CPM).
CPC advertising on sites, known as Cost Per Click, charges advertisers based on the number of clicks their ads receive, typically in the form of text ads delivered across a network of third-party sites like Google AdSense.
Business-to-Business (B2B) e-commerce offers advantages like reduced processing costs through transaction automation, direct interaction between buyers and sellers, increased pricing transparency, efficient supply chain management, quick product delivery, global trade opportunities, and the ability to personalize and customize marketing messages based on consumer characteristics and behavior.

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Description

Learn about the concepts of price and cost transparency in E-Commerce markets, and how they impact consumers and merchants. Discover how online merchants can use transparency to better understand consumers and segment the market effectively.