Questions and Answers
What is the primary distinction between e-business and e-commerce?
Which of the following is considered an advantage of e-commerce?
What is a significant disadvantage of e-commerce?
In the context of e-commerce, which model describes selling directly to consumers?
Signup and view all the answers
Which technology is discussed in relation to enhancing e-commerce?
Signup and view all the answers
What is social commerce primarily associated with?
Signup and view all the answers
What is a major trend shaping the future of e-commerce?
Signup and view all the answers
Why must corporate strategy align with e-commerce strategy?
Signup and view all the answers
What is a primary risk associated with sharply changing demand in online businesses?
Signup and view all the answers
Which type of e-commerce involves a consumer selling their services to a business?
Signup and view all the answers
What defines a pure-play business?
Signup and view all the answers
What is the fastest growing segment in e-commerce according to the provided information?
Signup and view all the answers
What strategic challenge involves the failure to adapt and innovate to stay competitive?
Signup and view all the answers
Which type of e-commerce is characterized by transactions involving the government?
Signup and view all the answers
Which of the following is NOT a type of e-commerce as defined?
Signup and view all the answers
What describes the inefficiency risk in online businesses?
Signup and view all the answers
What is the largest form of e-commerce, predominantly involving business transactions?
Signup and view all the answers
What is the primary purpose of e-business?
Signup and view all the answers
Which option represents a Consumer to Consumer (C2C) platform?
Signup and view all the answers
Which component is NOT part of e-business?
Signup and view all the answers
How did e-commerce change during the COVID-19 pandemic in Canada?
Signup and view all the answers
Which statement correctly differentiates e-business from e-commerce?
Signup and view all the answers
What was the first item ever sold online?
Signup and view all the answers
What was a common adaptation businesses made during the pandemic in response to e-commerce demands?
Signup and view all the answers
Which stakeholder is NOT typically included in e-business interactions?
Signup and view all the answers
Which of the following activities is considered e-commerce?
Signup and view all the answers
What was the impact of the COVID-19 pandemic on total retail sales versus e-commerce sales in Canada?
Signup and view all the answers
What does e-business include when referring to stakeholder interactions?
Signup and view all the answers
What is a significant reason for the growth of m-commerce?
Signup and view all the answers
Which of the following describes a benefit of mobile devices compared to computers?
Signup and view all the answers
What barrier to e-commerce does mobile payment address?
Signup and view all the answers
How does m-commerce enhance customer satisfaction?
Signup and view all the answers
What characterizes the retail model of e-commerce?
Signup and view all the answers
Which of the following is an example of peer-to-peer (P2P) e-commerce?
Signup and view all the answers
What enables easy access to rich content on mobile devices?
Signup and view all the answers
What is a significant reason customers may avoid online shopping?
Signup and view all the answers
What is the primary use of crowdfunding in e-commerce?
Signup and view all the answers
What aspect of m-commerce makes it more accessible than traditional e-commerce?
Signup and view all the answers
How can businesses most effectively build customer trust online?
Signup and view all the answers
Which factor is essential for a product to be considered information-intense?
Signup and view all the answers
Which of the following is NOT a characteristic of m-commerce?
Signup and view all the answers
What is the potential economic impact of fake reviews on global online spending?
Signup and view all the answers
What problem may arise from inadequate product descriptions on an online platform?
Signup and view all the answers
Why might businesses be at risk if they do not maintain an online presence?
Signup and view all the answers
What technological issue can affect customers' online shopping experience?
Signup and view all the answers
What should retailers focus on to ensure product expectations are met?
Signup and view all the answers
Which of the following best describes trust in the online business environment?
Signup and view all the answers
Which approach is NOT effective in removing fake reviews?
Signup and view all the answers
What is a primary function of a mobile wallet?
Signup and view all the answers
How does blockchain primarily operate?
Signup and view all the answers
What is a potential drawback of using mobile wallets?
Signup and view all the answers
Which entity traditionally governs financial transactions?
Signup and view all the answers
What is one of the benefits of using Bitcoin?
Signup and view all the answers
What does a smart contract enable in the context of business transactions?
Signup and view all the answers
What is a common concern regarding the adoption of blockchain technology?
Signup and view all the answers
Which of the following is NOT an example of a mobile wallet?
Signup and view all the answers
In what way does Bitcoin differ from traditional currency?
Signup and view all the answers
What does blockchain technology aim to remove from transactions?
Signup and view all the answers
What is a significant concern when choosing third-party hosting for a website?
Signup and view all the answers
Which service does hiring a full-service web developer provide?
Signup and view all the answers
What is the primary goal of Search Engine Optimization (SEO)?
Signup and view all the answers
What payment method is considered the most popular for online transactions?
Signup and view all the answers
Which of the following is true about e-transfers in Canada?
Signup and view all the answers
What does Search Engine Marketing (SEM) involve?
Signup and view all the answers
What is required to register for PayPal?
Signup and view all the answers
Which factor contributes to the ultimate cost of building a website?
Signup and view all the answers
Why is it important for merchants to offer multiple payment methods?
Signup and view all the answers
What strategy is NOT part of SEO?
Signup and view all the answers
What is a key advantage of using Bitcoin for transactions compared to traditional payment methods?
Signup and view all the answers
What is a disadvantage of using Bitcoin compared to traditional banking systems?
Signup and view all the answers
How are transaction fees structured in the Bitcoin network?
Signup and view all the answers
What is the primary focus of the NALA firm in Tanzania?
Signup and view all the answers
Which statement is true about Bitcoin transactions compared to PayPal?
Signup and view all the answers
What percentage of Tanzania’s population reportedly does not have a bank account?
Signup and view all the answers
What makes receiving Bitcoin transactions unique in terms of fees?
Signup and view all the answers
What is a significant advantage of having an online presence for a business?
Signup and view all the answers
How does the speed of Bitcoin transaction confirmations compare to other payment methods?
Signup and view all the answers
How does e-commerce improve efficiency in business operations?
Signup and view all the answers
What is a significant social factor affecting online purchasing behavior?
Signup and view all the answers
Which of the following is NOT an advantage of e-commerce?
Signup and view all the answers
What is the term used to describe the elimination of intermediaries in e-commerce?
Signup and view all the answers
What is a potential risk associated with using Bitcoin as a payment method?
Signup and view all the answers
How does customer feedback contribute to online businesses?
Signup and view all the answers
What aspect of e-commerce allows businesses to operate without added labor costs?
Signup and view all the answers
Which of the following best describes a disadvantage of e-commerce?
Signup and view all the answers
What allows online businesses to track customer habits effectively?
Signup and view all the answers
Which of these options is a characteristic of e-commerce that enhances customer service?
Signup and view all the answers
What is one way e-commerce can lead to cost reduction for businesses?
Signup and view all the answers
What does the term New Retail refer to?
Signup and view all the answers
What primary challenge do firms face with social media?
Signup and view all the answers
What can be a key benefit of using social media data for marketers?
Signup and view all the answers
Which of the following best describes e-business?
Signup and view all the answers
What is a significant feature of e-commerce platforms?
Signup and view all the answers
Which type of e-commerce involves transactions between consumers?
Signup and view all the answers
What emerging trend represents a seamless shopping experience regardless of the medium?
Signup and view all the answers
In what way has social media changed consumer behavior?
Signup and view all the answers
How can firms effectively manage consumer perceptions on social media?
Signup and view all the answers
What is the role of data in modern e-commerce strategies?
Signup and view all the answers
What is a significant benefit of social commerce compared to traditional e-commerce?
Signup and view all the answers
How does social media impact search engine ranking for businesses?
Signup and view all the answers
Which aspect of social media engagement is essential for building customer loyalty?
Signup and view all the answers
What is a primary benefit of using a Mobile Wallet for transactions?
Signup and view all the answers
What is an analytical advantage of using social media for commerce?
Signup and view all the answers
Why is authentic engagement considered a significant benefit of social commerce?
Signup and view all the answers
Which characteristic best describes New Retail as defined by Jack Ma?
Signup and view all the answers
Which of the following options best describes social commerce?
Signup and view all the answers
What is a concern associated with the use of Bitcoin as a form of payment?
Signup and view all the answers
Which technology operates as an open, distributed record of transactions?
Signup and view all the answers
What trend was noted regarding the growth of social media users in early 2017?
Signup and view all the answers
How do businesses benefit from customer reviews in social commerce?
Signup and view all the answers
What defines a Brick-and-Click business model?
Signup and view all the answers
What impact does Social Commerce have on shopping behavior?
Signup and view all the answers
Why do organizations increase their social media marketing budgets?
Signup and view all the answers
How does Electronic Business (E-Business) improve organizational performance?
Signup and view all the answers
Which of the following is NOT a common benefit associated with social media marketing?
Signup and view all the answers
What is a primary feature of Pure-Play businesses?
Signup and view all the answers
What distinguishes E-Commerce Business Models from traditional business models?
Signup and view all the answers
What is a common concern regarding Fake Reviews in e-commerce?
Signup and view all the answers
What is described as the automatic recurring purchase of a product or service until canceled by the subscriber?
Signup and view all the answers
Which of the following correctly defines Transaction Brokers?
Signup and view all the answers
What is included in the B2C e-commerce cycle when a customer decides to finalize their order?
Signup and view all the answers
Which type of product requires inventory to be managed and involves physical shipping?
Signup and view all the answers
What is a significant characteristic of an e-commerce platform?
Signup and view all the answers
Which of the following describes a self-hosted e-commerce platform?
Signup and view all the answers
What happens when a customer decides to return a product in some e-commerce companies?
Signup and view all the answers
Which of the following is NOT a characteristic of digital products?
Signup and view all the answers
Which feature is essential for an online store's accessibility?
Signup and view all the answers
In the context of e-commerce, how are services defined?
Signup and view all the answers
Study Notes
Chapter Overview
- E-business encompasses all electronic transactions and interactions with stakeholders to improve organizational performance, while e-commerce focuses specifically on buying and selling goods online.
- Successful completion of the chapter covers definitions, advantages, disadvantages, strategies, types, models, technologies, and current trends in e-commerce.
Definitions
- E-business includes activities like customer relationship management (CRM), supply chain management (SCM), and enterprise resource planning (ERP).
- E-commerce is the online buying and selling of goods and services, first exemplified by the sale of a CD on August 11, 1994.
- E-commerce has significantly evolved, enabling widespread selling and marketing practices among various businesses, from freelancers to large corporations.
E-Commerce in Canada
- E-commerce sales in Canada nearly doubled during the COVID-19 pandemic, increasing by 99.3% despite an overall retail sales decline of 18%.
- Non-essential items saw the greatest gains as businesses adapted to online selling models.
E-Commerce Advantages
- Expanded Markets: Businesses can reach customers beyond local areas, potentially on a global scale.
- Increased Availability: Online stores operate 24/7, accommodating customer needs at any hour.
- Reduced Costs: Shift to online sales saves on physical overhead expenses; businesses can also eliminate intermediaries.
- Improved Efficiency: Online processes streamline transactions, improving operation speed and accuracy.
- Enhanced Customer Service: Real-time interactions via chatbots and automated return processes elevate customer satisfaction.
E-Commerce Disadvantages
- Technical Issues: Bandwidth limitations may hinder some consumers' online experiences.
- Security & Privacy Concerns: High-profile security breaches lead to customer hesitance about online shopping.
- Building Trust: Establishing online trust is more challenging than in physical retail; businesses need to present high-quality, transparent experiences.
- Fake Reviews: Fake reviews are estimated to make up 4% of all online reviews, influencing consumer trust and spending.
Online Strategy Considerations
- Assess customer internet usage and product information intensity to determine the necessity of an online presence.
- Companies must adapt to digital trends, considering demand fluctuations, innovation, and operational efficiency.
Types of E-Commerce
- Business to Business (B2B): Sales of goods/services between businesses, such as software or office supplies.
- Business to Consumer (B2C): Direct sales to individual consumers, exemplified by retailers like Nike.
- Consumer to Consumer (C2C): Transactions among consumers, prominently featured on platforms like eBay.
- Consumer to Business (C2B): Consumers sell services/products to businesses, such as influencers or freelance services.
- Business to Government (B2G): E-commerce transactions involving government services.
- Consumer to Government (C2G): Individuals interacting with government services online.
- Mobile Commerce (M-Commerce): Transactions via mobile devices are rapidly growing, accounting for 73% of e-commerce sales.
Growth and Benefits of M-Commerce
- Countered by increasing mobile users, enhanced technology, and demand for convenience.
- Access: Mobile internet access is more affordable than traditional desktop methods.
- Convenience: Mobile phones promote constant connectivity and ease of shopping.
- Low Costs: Mobile devices serve multiple purposes, eliminating the need for additional computers.
- Ease of Use: Mobile apps streamline purchases with minimal technical barriers, along with secure mobile payment options.### Mobile Payments and Rich Content
- Mobile Preference: Easy and secure payment options enhance mobile usage among consumers.
- Processing Power: Advances enable rich content access via mobile browsers and applications, enhancing product demonstration.
- Rich Media: Brands can showcase product features, testimonials, and actual usage effectively through rich content.
Peer-to-Peer (P2P) E-Commerce
- Definition: P2P e-commerce connects individuals for transactions on online platforms.
- Examples: Platforms include Etsy, Uber, Airbnb, and TaskRabbit.
E-Commerce Business Models
- Retail: Direct sales from business to customer, with no intermediaries.
- Wholesale: Bulk sales often directed to retailers who sell to consumers.
- Dropshipping: Third parties manufacture and ship products to customers.
- Crowdfunding: Pre-sale funding from consumers to launch products, exemplified by Kickstarter.
- Subscription: Ongoing purchases of products/services until cancellation, common in media streaming.
- Transaction Brokers: Facilitate transactions while earning a portion of revenue, such as Airbnb and EventBrite.
Objects Exchanged in E-Commerce
- Physical Products: Tangible goods requiring inventory and shipping.
- Digital Products: Downloadable items like courses and templates.
- Services: Skills exchanged for payment, encompassing a variety of service sectors.
B2C E-Commerce Cycle
- Process Overview: Customers browse products, choose items, and navigate to checkout to finalize orders.
- Order Fulfillment: Businesses prepare and ship orders, with customers often prompted for reviews.
- Customer Support: Options for order issues via customer service; online return processes enhance convenience.
E-Commerce Technology
- E-Commerce Platforms: More than just sales tools; they manage inventory, marketing, and analytics. Examples include Shopify, Wix, and BigCommerce.
- Hosting Solutions: Necessary for public access; platforms may offer built-in hosting or require self-hosting.
Hosting Types
- Hosted Platforms: Focus on business functionality without technical management issues.
- Self-Hosted: Involves managing server space and requires more internal resources, often through open-source options.
Search Engine Optimization (SEO)
- Importance: Techniques to enhance visibility in organic search results, boosting website traffic.
- SEM: Encompasses SEO and paid advertising for increased visibility.
Payment Methods in E-Commerce
- Security & Trust: Essential to minimize customer concerns about online transactions.
- Credit Cards: Predominant payment method for online purchases.
- Electronic Payment: Encompasses various methods like debit and credit cards, e-transfers, and mobile wallets.
E-Transfers
- Functionality: Allows bank-to-bank money transfers in Canada through services like Interac with added security features.
- Adoption: Growing trend with a large percentage of the population registered for e-transfers.
Email-Based Methods
- PayPal: A popular email payment method linking users to their bank or credit cards.
Mobile Wallets
- Definition: Applications that store payment information for contactless transactions, used for in-person and online shopping.
- Concerns: Security of stored information; examples include Apple Pay and Google Pay.
Blockchain Technology
- Definition: A decentralized network providing transaction records without intermediaries, enhancing efficiency.
- Applications: Already utilized in supply chain tracking; seen as a transformative technology for various sectors.
Bitcoin
- Characteristics: A digital currency operating independently of central banks, enabling lower-cost transactions.
- Advantages: No currency conversion needed, lower fees, irreversible transactions, and access via digital wallets.
Tanzania Bitcoin Project
- Goal: Introduced cryptocurrency to combat counterfeit currency and high transaction fees among the unbanked population.
Social Commerce
- Influence: Social factors impact consumer behavior; online networks provide valuable insights for marketing.
- Platforms: Utilization of social networks like Facebook and Instagram to enhance customer engagement.
Benefits of Social Commerce
- Audience Growth: Over 2.7 billion social media users provide vast market reach for businesses.
- Higher Search Rankings: Increased website traffic from social media improves search engine visibility.
- Authentic Engagement: Two-way communication on social platforms encourages stronger customer connections and service channels.### Customer Loyalty and S-commerce
- S-commerce emphasizes relationship building through social platforms rather than solely focusing on sales.
- Strong relationships increase consumer trust and loyalty to brands, leading to repeat purchases.
Analytics in Social Media
- Social media platforms like Facebook, Twitter, Instagram, Pinterest, and LinkedIn provide analytics tools.
- These tools track and evaluate metrics such as traffic, clickthrough rates, followers, likes, sentiment analysis, and conversions.
- Analytics help businesses monitor ROI effectively.
Social Media Marketing Trends
- Growing global connectivity through social media leads to increased marketing budgets allocated for these platforms.
- Successful strategies align social media initiatives with broader corporate objectives to maximize impact.
- Social media content tends to be inexpensive due to a high volume of online creators.
- Brands can achieve visibility as trending topics; however, managing perceptions can be difficult due to the uncontrolled nature of social media messaging.
- Data from social media enables targeted marketing, while firms face cybersecurity and data privacy challenges.
New Retail Concept
- "New Retail," coined by Jack Ma of Alibaba, integrates offline, online, logistics, and data to enhance customer experience.
- Eliminates the boundary between offline and online commerce to provide a seamless shopping experience.
- Innovations like pop-up shops, partnerships for physical displays, and the ability to buy online and pick up in store are prominent features.
E-business and E-commerce
- E-business encompasses various components, including e-commerce, which is a specific transactional model.
- E-commerce can be categorized into seven types: B2B, B2C, C2C, B2G, C2B, m-commerce, P2P.
- Revenue generation online can occur through multiple (and often new) business models.
Technologies in E-commerce
- E-commerce utilizes various technologies, including all-in-one platforms and digital payment systems.
- Blockchain technology supports transactions through cryptocurrencies like Bitcoin.
Rise of Electronic Payments
- Electronic payments include debit, credit cards, gift cards, e-transfers, mobile wallets, and cryptocurrencies.
- Relevant due to the convenience and efficiency they provide to consumers and businesses alike.
Innovations and Future of E-commerce
- Focus on trends that blur lines between offline and online shopping experiences.
- Examples of innovations could include contactless payments, augmented reality for product displays, and advanced analytics for consumer behavior.
Key Terms Overview
- Bitcoin: Digital currency usable globally; classified as cryptocurrency.
- Blockchain: Peer-to-peer network for recording transactions.
- Brick-and-Click: Businesses with both physical and online presence.
- E-Payment: Overall category for electronic transactions.
- New Retail: Concept integrating various elements to enhance shopping experiences.
- Social Commerce: Using social networks for product promotion and interactive shopping experiences.
- Mobile M-Commerce: Shopping through wireless technology, such as smartphones.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Explore the strategic challenges businesses face when leveraging the internet for their products and services. This quiz dives into the importance of a website, especially for firms in lower-performance quadrants. Understand the critical aspects of internet presence in business strategy.