Question

Chapter 5 - Electronic Commerce (course- business)
Number of Questions: 17
1. E-commerce breaks down business barriers such as currency. List three other barriers that e-commerce breaks down.
2. When you create an e-commerce website you have to follow sound business fundamentals and principles to be successful. What do you call a formal business plan that outlines key business issues such as customer targets, marketing strategies, and operations strategies?
3. What is G2C e-commerce? Give an example.
4. What is the difference between convenience and specialty items in B2C e-commerce?
5. B2C e-commerce companies compete in a commoditylike environment on the basis of price and ease of ordering. What other ways do they compete?
6. In B2B e-commerce direct materials are materials that are used in production in a manufacturing company. Explain indirect materials. Give examples
7. What is demand aggregation?
8. What is a vertical e-marketplace?
9. What are banners ads?
10. A B2C e-commerce website encourages users of a product or service to encourage friends to join in as well. What do you call this kind of marketing?
11. Two B2C e-commerce companies agree to direct viewers from one site to the other. What do you call this method of marketing?
12. What does the conversion rate measure?
13. What is a financial cybermediary?
14. What do you call a plastic card the size of a credit card that contains an embedded chip on which digital information can be stored and updated?
15. In B2B e-commerce electronic data interchange (EDI) is a direct computer-to-computer transfer of what kind of transaction information?
16. What method of security creates a secure and private connection between a Web client computer and a Web server computer for sending encrypted information over the Internet?
17. What is a Secure Electronic Transaction (SET)?

Answer 1

1. Barriers that e-commerce breaks :

• Geographical limitations - available everywhere around the world
• All time availability - not closed at any time of the day
• Information symmetry - all information is publicly provided

2. A formal business plan that outlines key business issues such as customer targets, marketing strategies, and operations strategies is also termed as a Business Model Canvas. It helps to visualize and address key areas as mentioned above and is a formal blueprint to develop a business.

3.G2C e-commerce stands for Government to Citizen/Consumer. It involves commercial activities happening online, relating to the government or public authorities and a citizen.
E.g. - Paying taxes on an online government portal

4.

Convenience in B2C	Speciality in B2C
Generally, have lower prices	Higher priced items
These items are frequently needed	These items are not ordered frequently
e.g. - groceries, medicines	e.g. expensive cars, costly perfumes