MI Chapter 1 & Chapter 2 Quiz

• Enterprise systems are also called enterprise resource planning (ERP) systems.
• Enterprise systems collect data for use in external business activities.
• The bullwhip effect occurs when information about product demand gets distorted as it passes through the supply chain.
• Safety stock is a buffer for a lack of flexibility in the supply chain.
• Push-based models are also called demand-driven models.
• Analytical CRM focuses on customer-facing applications like sales force automation.
• Digital goods have low marginal costs after initial production.
• Disintermediation lowers final product costs by removing intermediary layers.
• Ubiquity in e-commerce means that Internet technology is available anytime, anywhere.
• Global reach in e-commerce enables seamless cross-cultural and national commerce.
• Universal standards in e-commerce lower market entry costs but increase consumer search costs.
• Richness in e-commerce refers to the ability to support video, audio, and text content.
• Interactivity in e-commerce makes the customer a co-participant in the process of delivering goods to the market.
• Information density in e-commerce reduces the amount of information available to market participants.
• Personalization in e-commerce allows businesses to modify messages and digital goods for individual preferences.
• Social technology in e-commerce promotes user-generated content and social networking.
• Digital markets reduce information asymmetry, search costs, transaction costs, and menu costs.
• The cost of delivering digital goods over the Internet is very high.
• Business-to-consumer (B2C) e-commerce involves transactions between businesses.
• Net marketplaces (e-hubs) generate revenue from transaction fees.

Enterprise Systems

• Enterprise systems are also known as Enterprise Resource Planning (ERP) systems.
• They gather data from various divisions to support internal business operations.
• These systems utilize a central database, facilitating data sharing across the organization.

Supply Chain Management

• The bullwhip effect is when product demand information becomes distorted as it moves through the supply chain.
• Safety stock serves as a buffer to compensate for inflexibility in the supply chain.
• Push-based models rely on demand forecasts.
• Pull-based models are driven by customer orders.

Customer Relationship Management (CRM)

• Operational CRM is centered on managing customer-facing applications like sales force automation.
• Analytical CRM is focused on examining customer data produced by operational CRM systems.
• The primary objective of CRM systems is to foster customer intimacy.

E-commerce Key Concepts

• Ubiquity refers to the accessibility of Internet technology anytime, anywhere.
• Global Reach facilitates smooth cross-cultural and national commerce.
• Universal Standards reduce market entry costs while potentially raising consumer search costs.
• Richness involves the ability to incorporate video, audio, and text content.
• Interactivity transforms customers into active participants in the delivery of goods to the market.
• Information Density enhances information availability, leading to price transparency and discrimination.
• Personalization enables businesses to tailor messages and goods to individual preferences.
• Social Technology encourages user-generated content and social networking.

Digital Markets

• Digital markets decrease information asymmetry, search costs, transaction costs, and menu costs.
• Digital goods commonly have low marginal costs following the initial production phase.

E-commerce Models and Revenue

• B2C e-commerce involves transactions between businesses and individual consumers.
• Common e-commerce business models include portals, e-tailers, and content providers.
• E-commerce revenue models include advertising, sales, and subscription services.

B2B E-commerce and EDI

• Electronic Data Interchange (EDI) is the computer-to-computer exchange of standard business transactions.
• Net marketplaces (e-hubs) are centralized markets for numerous buyers and sellers, earning income through transaction fees.

Supply Chain Strategies

• The just-in-time strategy ensures components arrive precisely when needed.
• Sequential supply chains involve information flowing in a step-by-step manner.
• Concurrent supply chains allow information to flow in multiple directions simultaneously.

Additional Key Terms

• Disintermediation involves removing intermediary layers, cutting down final product costs.
• Information asymmetry is the difference in information available to buyers and sellers.
• Search costs are the expenses customers face while searching for suitable products.
• Transaction costs are the expenses tied to completing a transaction.

Explore the bullwhip effect in supply chains, disintermediation, and e-commerce characteristics like ubiquity and global reach. Understand net marketplace revenue sources and information density in e-commerce.