Ebusiness Chapter 3: Disruptive Technology

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Questions and Answers

What is mass customization?

Offering products in bulk at lower prices

Creating standard products for a wide audience

Providing a one-size-fits-all solution to consumers

Adapting products or services to meet individual customer specifications (correct)

Which term describes the situation when a company directly sells its products instead of going through intermediaries?

Disintermediation (correct)

Intermediation

Reintermediation

Cybermediation

What does interactivity measure in advertising effectiveness?

The cost efficiency of advertising campaigns

Visitor interactions with the advertisement, like views and repeat visits (correct)

The demographic data of visitors to the ads

The overall sales generated through advertisements

What does clickstream data track?

The navigation patterns of consumers through a website Signup and view all the answers

What is personalization in a business context?

Knowing customer preferences to tailor specific offers Signup and view all the answers

What is the primary function of an affiliate program in the context of online marketing?

Generating commissions or royalties for businesses Signup and view all the answers

Which type of online advertisement appears as a small window on the screen without interrupting the user's current activity?

Pop-up ad Signup and view all the answers

What does a heat map represent?

Data values represented with colors in a two-dimensional format Signup and view all the answers

Which of the following best describes the concept of 'The Long Tail'?

A shift in focus to low-demand items that collectively generate significant sales Signup and view all the answers

What defines disruptive technology?

It creates a new way of doing things that initially does not satisfy existing customers. Signup and view all the answers

How does clickstream analytics contribute to website performance evaluation?

It collects data about user interactions in a sequence Signup and view all the answers

What is the role of a web browser?

To allow users to access the World Wide Web. Signup and view all the answers

What is an intermediary in the context of buying and selling?

A person or entity facilitating transactions between buyers and sellers Signup and view all the answers

What do website traffic analytics primarily assess?

The efficiency of the site for users at the server level Signup and view all the answers

What is the focus of website ebusiness analytics?

Evaluating the effectiveness of the website as a market channel Signup and view all the answers

Which of the following describes eBusiness?

All activities related to internal and external business operations. Signup and view all the answers

What best defines an ebusiness model?

A plan for creating and delivering online value Signup and view all the answers

What is the primary purpose of the Hypertext Transport Protocol (HTTP)?

To request and display web pages. Signup and view all the answers

What is Web 1.0 known for?

A phase between 1991 and 2003 focused mainly on static web content. Signup and view all the answers

Which marketing technique encourages users to share a marketing message or content?

Viral marketing Signup and view all the answers

Which aspect is essential for an effective banner ad?

It must run across a web page to display advertisements Signup and view all the answers

What are the main impacts of the Internet on information?

It simplifies the process of gathering and maintaining data. Signup and view all the answers

What does sustaining technology aim to achieve?

To produce an improved product that customers are eager to buy. Signup and view all the answers

Which of the following statements best describes the Innovator’s Dilemma?

It discusses how established companies can exploit disruptive technologies without harming existing relationships. Signup and view all the answers

Which of the following is NOT a common ebusiness form?

Transaction facilitators Signup and view all the answers

What is the main purpose of search engine optimization?

To enhance the attractiveness of URLs to search engines Signup and view all the answers

Which revenue model allows businesses to earn income based on the number of clicks on an advertisement?

Pay-per-click Signup and view all the answers

Which of the following describes click fraud?

Inflating traffic statistics for online ads artificially Signup and view all the answers

What do hitbots simulate in the context of online advertising?

High traffic clicks with no profit potential Signup and view all the answers

Which of the following revenue models is associated with recurring payments for continued access to a service or content?

Subscription fees Signup and view all the answers

An affiliate program primarily benefits a business by:

Generating commissions through referrals Signup and view all the answers

Which of the following strategies is NOT considered a means of generating revenue in e-business?

Customer satisfaction surveys Signup and view all the answers

Which of the following is NOT considered a tool for connecting and communicating in eBusiness?

Virtual reality gaming Signup and view all the answers

What are the three characteristics that define Web 2.0?

Collaboration, Sharing, Free Signup and view all the answers

What is a key feature of the Direct-to-Consumer (DTC) eBusiness model?

Companies handle marketing and shipping independently Signup and view all the answers

Which of the following describes an open system in content sharing?

Publicly known standards allowing third-party products Signup and view all the answers

User-contributed content is characterized by which of the following?

Content created and updated by many users for many users Signup and view all the answers

Which aspect does NOT represent an advantage of Business 2.0?

Increased reliance on physical stores Signup and view all the answers

Which statement best describes open source software?

It allows anyone to view, modify, and distribute the source code. Signup and view all the answers

What role does a reputation system play in user-contributed content?

It helps assess the quality and trustworthiness of contributions. Signup and view all the answers

Study Notes

Ebusiness Overview

Disruptive Technology: Innovations that initially do not meet existing customer needs but eventually transform markets.
Sustaining Technology: Improvements made to existing products that customers are eager to buy.
Innovator’s Dilemma: The challenge for established companies to embrace disruptive technologies without losing current customer relationships.

Internet and World Wide Web

World Wide Web (WWW): Utilizes HTML to provide access to various types of information on the Internet, including text, graphics, audio, and video.
Web Browser: Software that enables users to navigate the WWW.
Hypertext Transport Protocol (HTTP): The protocol used to request and display web pages through URLs.

Web 1.0

Definition: The early stage of the WWW from 1991 to 2003, focused primarily on information dissemination.
Ecommerce: The buying and selling of goods and services online.
Ebusiness: Encompasses ecommerce plus all business operations conducted online.

Global Reach of the Internet

Impact: The Internet increases the richness, reach, and content quality of information available globally.

Market Expansion

Mass Customization: Strategy of personalizing products to meet specific customer demands.
Personalization: Tailoring offers based on a customer's preferences and interests.

Cost Reduction Strategies

The Long Tail: Describes the sales curve where niche products can collectively make up a significant market share.
Intermediaries: Entities that facilitate trade between buyers and sellers, involving concepts like disintermediation (direct selling), reintermediation, and cybermediation.

Effectiveness Improvements

Interactivity: Measures advertising success through visitor engagement metrics such as time spent and pages viewed.
Heat Map: Visual representation of data where values are displayed through color coding.
Clickstream Data: Tracks the navigation patterns of users on a website, revealing insights on page visits, durations, and shopping cart behavior.

Revenue Generation and Marketing

Affiliate Program: Enables businesses to earn commissions when referred customers click on links to other merchants.
Banner Ads: Graphics placed on web pages for advertising.
Pop-up Ads: Small windows that appear to display advertisements.
Viral Marketing: Strategy encouraging users to share marketing messages widely.

Ebusiness Models

Definition: Frameworks that outline how a company creates, delivers, and captures value online.
Common B2C Models: Ebusiness methodologies targeting end consumers.

Ebusiness Forms

Types:
- Content Providers: Supply information or entertainment.
- Infomediaries: Serve as intermediaries that provide data and information services.
- Marketplaces: Platforms for buyers and sellers.
- Portals: Centralized access points (e.g., Google).
- Service Providers: Offer services online.
- Transaction Brokers: Facilitate transactions between buyers and sellers.

Search Engine Dynamics

Search Engines: Software designed to locate web pages based on keyword relevance.
Search Engine Ranking: Criteria used to determine URL placement in search results.
Search Engine Optimization (SEO): Techniques to enhance website visibility and ranking.

Ebusiness Revenue Models

Types of Revenues:
- Advertising Fees
- License Fees
- Subscription Fees
- Transaction Fees
- Value-added Service Fees (e.g., pay-per-click)

Ebusiness Fraud

Affiliate Program Fraud: Generates commissions through deceptive clicks leading to no real traffic.
Click Fraud: Artificially inflating click counts on ads.
Hitbots: Automated processes that mimic user clicks without real intent.

Communication Tools

Standard Tools: Email, instant messaging, podcasting, videoconferencing, web conferencing, and content management systems facilitate online communication.

Web 2.0 Characteristics

Definition: Represents a more interactive and mature phase of the Internet, emphasizing collaboration, sharing, and cost efficiency.
Direct-to-Consumer (DTC): Business model where companies sell directly to consumers, eliminating intermediaries.

Open Sourcing and User-Generated Content

Open Systems: Nonproprietary systems that allow third-party developments.
User-Contributed Content: Content created and maintained by users for communal benefit, incorporating reputation systems and native advertising techniques.

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Description

Explore Chapter 3 of Ebusiness, focusing on the concepts of disruptive and sustaining technology. Understand how technologies, from steamboats to modern processors, transform markets and impact value creation. Test your knowledge on these crucial technological distinctions!