E-Commerce Trends and Issues
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Questions and Answers

What is one reason for the rapid expansion of electronic commerce technology?

  • Reduction in global customer reach
  • Decline in mobile device usage
  • Increased spending on traditional advertising
  • Development of networks and protocols (correct)
  • Electronic commerce is restricted to specific geographic locations.

    False (B)

    What term describes the ability of Internet technology to provide shopping anytime and anywhere?

    Ubiquity

    Electronic commerce allows for ______________ messages to be tailored to individual consumers.

    <p>personalized</p> Signup and view all the answers

    Match the following characteristics of electronic commerce with their descriptions:

    <p>Ubiquity = Shopping convenience anytime, anywhere Global Reach = Enables commerce across national boundaries Information Density = Improved information quality and reduced costs Personalization = Custom messages based on individual preferences</p> Signup and view all the answers

    Which of the following is NOT a benefit of electronic commerce for merchants?

    <p>Higher capital outlay (B)</p> Signup and view all the answers

    The term 'Marketspace' refers to a location where traditional shopping occurs.

    <p>False (B)</p> Signup and view all the answers

    What is one key feature of interactivity in electronic commerce?

    <p>Engagement in a dialog between the consumer and the seller</p> Signup and view all the answers

    What is one of the primary advantages of ecommerce for consumers?

    <p>Ability to shop 24/7 from various locations (C)</p> Signup and view all the answers

    Ecommerce eliminates all disadvantages associated with traditional retail shopping.

    <p>False (B)</p> Signup and view all the answers

    Name two disadvantages of ecommerce.

    <p>Cost and justification, Security and privacy issues</p> Signup and view all the answers

    One of the major types of ecommerce is __________, which focuses on transactions between businesses and individual consumers.

    <p>Business-to-Consumer (B2C)</p> Signup and view all the answers

    Match the ecommerce disadvantages with their explanations:

    <p>Cost and justification = High developing costs and potential mistakes Security and privacy = Challenges in gaining customer trust Lack of trust = Skepticism towards faceless transactions Limiting factors = Inability to physically interact with products</p> Signup and view all the answers

    Which of the following is NOT a benefit of ecommerce?

    <p>Increased time for transactions (A)</p> Signup and view all the answers

    Ecommerce can lead to improved customer service.

    <p>True (A)</p> Signup and view all the answers

    What is a reason customers may resist switching to ecommerce?

    <p>Lack of trust in faceless transactions</p> Signup and view all the answers

    Which of the following is a benefit of B2C to businesses?

    <p>Lower distribution costs (D)</p> Signup and view all the answers

    B2B typically involves purchasing processes that include complex negotiations and high monetary values.

    <p>True (A)</p> Signup and view all the answers

    What is an example of a service within B2B electronic commerce?

    <p>financial services</p> Signup and view all the answers

    C2C e-commerce often involves consumers selling products directly to _____ .

    <p>consumers</p> Signup and view all the answers

    What is a primary benefit of C2C e-commerce?

    <p>Increased liquidity of products (C)</p> Signup and view all the answers

    Match the type of e-commerce with its description:

    <p>B2B = Business transactions between companies C2C = Consumers selling to consumers P2P = File sharing among users Mobile Commerce = E-commerce using wireless devices</p> Signup and view all the answers

    Peer-to-Peer (P2P) e-commerce relies on centralized servers to link users.

    <p>False (B)</p> Signup and view all the answers

    Name one key technology used in Mobile Commerce.

    <p>Wi-Fi</p> Signup and view all the answers

    Who conceived the term 'hypertext'?

    <p>Ted Nelson (C)</p> Signup and view all the answers

    HTTP stands for Hypertext Transfer Protocol.

    <p>True (A)</p> Signup and view all the answers

    What does URL stand for?

    <p>Uniform Resource Locator</p> Signup and view all the answers

    The web page is stored as an HTML ______.

    <p>document</p> Signup and view all the answers

    Which of the following is an example of a URL?

    <p><a href="http://www.google.com">http://www.google.com</a> (C)</p> Signup and view all the answers

    Match the following components with their descriptions:

    <p>Web server = Stores and serves web pages Web client = Software used to browse the web HTTP = Protocol for transferring hypertext HTML = Language for structuring web documents</p> Signup and view all the answers

    A hyperlink is a type of URL.

    <p>False (B)</p> Signup and view all the answers

    What is the primary function of a web browser?

    <p>To surf the web</p> Signup and view all the answers

    What is the main purpose of instant messaging?

    <p>To communicate privately with selected users. (A)</p> Signup and view all the answers

    Voice over IP requires a low-speed Internet connection to function effectively.

    <p>False (B)</p> Signup and view all the answers

    Name one type of website that provides newsworthy material on current events.

    <p>News websites</p> Signup and view all the answers

    ______ are websites that offer various services such as email, shopping, and news.

    <p>Portals</p> Signup and view all the answers

    Which type of website is primarily focused on selling and promoting products and services?

    <p>Business/Marketing websites (B)</p> Signup and view all the answers

    Educational websites only provide formal courses.

    <p>False (B)</p> Signup and view all the answers

    Match the following types of websites with their primary focus:

    <p>Informational website = Factual information Business/Marketing website = Product promotion Educational website = Learning resources Entertainment website = Interactive content</p> Signup and view all the answers

    What is one requirement for using Voice over IP effectively?

    <p>A microphone or telephone</p> Signup and view all the answers

    What is the primary purpose of advocacy websites?

    <p>To describe a cause or opinion (B)</p> Signup and view all the answers

    Blog is short for 'web log'.

    <p>True (A)</p> Signup and view all the answers

    What is the function of a search engine?

    <p>To find websites and pages based on user queries.</p> Signup and view all the answers

    Google uses an algorithm called ______ to rank web pages.

    <p>PageRank</p> Signup and view all the answers

    Match the following website types to their descriptions:

    <p>Advocacy website = Describes a cause or opinion Blog = Regularly updated journal format Personal website = Private individual’s site Search engine = Finds webpages and information</p> Signup and view all the answers

    Which of the following is NOT a type of file that Google can search?

    <p>Audio files (C)</p> Signup and view all the answers

    Google receives several hundred million queries each day.

    <p>True (A)</p> Signup and view all the answers

    What can you enter into a search text box?

    <p>A topic, subject, or keyword.</p> Signup and view all the answers

    Flashcards

    Ubiquity in e-commerce

    The availability of internet/web technology everywhere, anytime, using any device.

    Global Reach of e-commerce

    E-commerce transcends national borders, connecting businesses and consumers worldwide.

    Universal Standards in e-commerce

    E-commerce uses the same internet standards and technologies globally.

    Richness in e-commerce

    E-commerce offers combines video, audio, and text communication, providing a richer experience.

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    Interactivity in e-commerce

    E-commerce allows users and businesses to interact and engage in a dialogue during the consumer experience.

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    Information Density in e-commerce

    E-commerce drastically reduces information costs, making it readily available and improving its quality.

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    Personalization in e-commerce

    E-commerce allows customized products, services, and marketing messages based on individual characteristics.

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    E-commerce Marketplace Expansion

    E-commerce allows businesses to reach global customers with lower startup costs.

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    Hypertext

    A system for storing and linking documents, allowing readers to move between related information.

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    URL

    A unique address that identifies a web page or other resource.

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    Hyperlink

    An underlined word or phrase that allows access to a different document.

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    HTML

    The language used to create web pages, defining how a document should be displayed.

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    HTTP

    The protocol for communication between web browsers and servers.

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    Web Server

    A computer that stores and delivers web pages.

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    Web Browser

    Software used to access and view web pages.

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    Internet Service

    Web is one among many services provided by the broader internet framework.

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    Ecommerce Cost Savings

    Ecommerce reduces costs by digitizing information processes like procurement and order fulfillment.

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    Ecommerce Speed

    Ecommerce shortens the time from investment to receiving goods or services.

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    Ecommerce Consumer Benefits

    Customers get 24/7 access, more choices, lower prices, and instant product information.

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    Ecommerce Development Cost

    Building an ecommerce platform in-house can be expensive and mistakes can cause delays.

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    Ecommerce Security Concerns

    Online security and privacy are important, but customers often perceive them to be greater than they actually are.

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    Ecommerce Customer Trust Issue

    Customers may be hesitant to switch to online shopping due to concerns about the seller and the process.

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    B2C Ecommerce

    Business-to-Consumer ecommerce involves direct sales to individual consumers.

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    Ecommerce Limiting Factor

    Customers sometimes prefer the tactile experience of physical goods, which online shopping cannot fully replicate.

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    B2C Benefits to Businesses

    Lower distribution costs, new business opportunities, accurate consumer data, added value services, better customer support, and lower operating costs.

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    B2C Benefits to Consumers

    Convenience, information, comparison shopping, lower prices (sometimes), and personal service.

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    B2B Purchasing

    Business-to-business (B2B) ecommerce focuses on sales to other businesses, involves departments, formal processes, significant monetary value, and complex negotiations.

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    B2B Advantages

    Lower purchasing, sales, and marketing costs, reduced inventory, efficient logistics, shorter cycle times, better customer support.

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    C2C Benefits

    Increased liquidity of goods, services, or information; lower search costs for consumers.

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    Mobile Commerce

    Ecommerce that leverages wireless devices like cell phones for transactions.

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    Instant Messaging (IM)

    A communication method allowing users to chat with specific individuals, unlike chat rooms, which focus on a particular topic. IM conversations can cover any subject.

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    Internet Telephony (VoIP)

    Making phone calls over the internet using computers, mobile devices or phones.

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    Web Portal

    A website offering a variety of services, like search engines, news, shopping, email, and more, in one place.

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    News Website

    Online source of current events, articles, and information.

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    Informational Website

    Provides factual information such as government data (tax codes), schedules (public transportation), or research findings.

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    Business/Marketing Website

    A website for promoting and selling products/services.

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    Educational Website

    Websites offering courses, training, or learning resources.

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    Entertainment Website

    Websites focused on interactive content, including music, videos, games, and web episodes.

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    Advocacy Website

    A website dedicated to promoting a specific cause, opinion, or idea, aiming to convince the reader of its validity. These websites often represent the views of a particular group or association.

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    Personal Website

    A website created by an individual, showcasing their interests, images, music, videos, and personal experiences. Often used for job hunting or sharing life updates.

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    Search Engine

    A program that helps users find specific information on the web by searching through websites and web pages. They allow you to locate information on various topics or specific web pages without knowing the exact web address.

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    What is a search text box used for?

    A search text box is where you enter keywords or phrases to define the information you are looking for. It's the starting point for any search query.

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    Google's PageRank

    Google's algorithm that ranks web pages based on their importance and relevance to a given search query. It considers the number and quality of links pointing to a website.

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    What are some file types Google can search?

    Google's search capabilities extend beyond standard websites. It can search various file types, including PDF, Word documents, Excel spreadsheets, Flash SWF, and plain text.

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    What are the purposes of weblogs (blogs)?

    Blogs are regularly updated journals that reflect the interests, opinions, and personalities of the author and sometimes the site visitors. They present ideas and thoughts informally, often from a single individual's perspective.

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    What are some examples of web sites that integrate with other networks for polls?

    Some complex websites partner with other networks to allow users to vote in polls regarding television shows or other popular topics.

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    Study Notes

    • E-commerce (EC) is a new model for selling and merchandising.
    • Buyers participate in all stages of a purchase electronically, not in person or by phone.
    • The process includes enabling customers to access product info, select items, purchase them securely, and settle purchases financially.
    • Kalakota and Whinston (1997) define EC from various perspectives:
      • Communications: Delivery of info, products, services, or payments through phone lines, computer networks, or other electronic means.
      • Business: Applying technology to automate business transactions and workflows.
      • Service: A tool to reduce service costs while improving quality and speed of delivery.
      • Online: The capability to buy and sell products and info over the internet.
    • E-commerce applications started in the early 1970s with electronic fund transfers (EFT).
    • EDI expanded financial transactions to other areas and involved more companies, moving beyond financial institutions.
    • Internet commercialization and growth led to the term "electronic commerce."
    • Network, protocol, software, and specification development, as well as increasing competition.
    • Ubiquity: Internet/web technology is always available via devices (work, home, etc).
    • Global Reach: Technology surpasses national borders.
    • Universal Standards: Standardized technology across the globe.
    • Richness: Video, audio, and text messages integrated into single marketing messages.
    • Interactivity: Dynamically adjusting user experience.
    • Information Density: Reduced info costs, increased quality, accuracy, and timeliness.

    Major Types of E-Commerce

    • Business-to-Consumer (B2C): Businesses sell directly to consumers. Typical example of online shopper on Amazon.com.
      • Benefits to businesses: Lower distribution costs, new business opportunities, more accurate customer data, better customer support, and lower operating costs.
      • Benefits to consumers: Convenience, information, ability to compare prices/offers, and personal service.
    • Business-to-Business (B2B): Businesses sell to other businesses.
      • Focus on purchasing.
      • Advantages: Lower purchasing, selling, and marketing costs; reduced inventory; logistics efficiency; lower cycle times; and improved customer support.
    • Consumer-to-Consumer (C2C): Consumers sell directly to other consumers.
      • Benefits: Increased liquidity, reduced search costs.
    • Peer-to-Peer (P2P): Users share files with no central server.

    Web Technology

    • Internet: Network of computers and cables, facilitating communication.
    • Web: System of interconnected web pages, allowing a user to view content, such as email, videoconferences, and instant messages.

    Web Sites

    • Portals: A collection of various internet services such as search engines, news, sports, weather, and communication.
    • News: Up-to-date stories and articles on current events, life, money, sports.
    • Informational: Factual info on topics that range from government taxes to public transportation schedules.
    • Business/Marketing: Factual info about businesses and promotion of products and services.
    • Educational: Online courses, materials, or information for various purposes.
    • Entertainment: Interactive content like music, videos, games, or ongoing web episodes.
    • Advocacy: Describe a cause, opinion, or idea to convince viewers of the idea's validity.
    • Blogs: Similar to journals, containing thoughts, ideas, and perspectives.
    • Search Engine: Program that locates web pages relevant to user queries.

    Web Services

    • Email: Original internet service for sending/receiving messages.
    • File Transfer Protocol (FTP): Allows users to upload and download files.
    • Newsgroups/Message Boards: Place for topical discussions.
    • Mailing Lists: Organized email distribution lists.
    • Chat Rooms: Real-time communication spaces.
    • Instant Messaging (IM): Direct communication with specific users.
    • Internet Telephony: Use of Internet to make phone calls.

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    Description

    Explore the key trends and issues in e-commerce, a modern model for buying and selling goods online. Discover how technology transforms communication, business processes, and customer service from past to present. This quiz covers the perspectives of e-commerce as defined by Kalakota and Whinston.

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