Ecommerce questions and answer - UEF

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Chapter 1
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QA

What is e-commerce? How does it differ from e-business? Where does it
intersect with e-business?
E-commerce is the use of the Internet and the World Wide Web to transact

business. E-business refers primarily to the digital enabling of transactions and
processes within a firm. These two intersect when they both are using the internet to
conduct business.
2

What are some of the unique features of e-commerce technology?
A few unique features of e-commerce technology are ubiquity which means the

internet technology is available everywhere, global reach which means the technology
reaches across national boundaries around the Earth, universal standards which means
there is one set of technology standards, richness which is video, audio and text
messages are possible, and interactivity which means the technology works through
interaction with the user.
3

What is Web 2.0? Give examples of Web 2.0 sites and explain why you
included them in your list
Web 2.0 is many of the unique features of e-commerce and the Internet combined

together in a set of applications and social media technologies. A few examples of
Web 2.0 would be facebook, myspace, google, etc. All of these allow users to create,
edit, and share content.
4

Give examples of B2C, B2B, C2C, and P2P Web sites besides those listed in
the chapter materials.
An example of B2C would be chegg.com; they sell products to consumers.

Example of B2B would be a wholesaler selling raw materials to another company to
produce they’re final product to sell. An example of C2C would be like gowilkes.com.
An example of P2P would be like youtube.com.


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What factors will help define the future of e-commerce over the next five
years?
Factors that will help define the future of e-commerce over the next five years are

online sales growing, technology such as new phones or new Xbox 360. The overall
revenues by the number of online shoppers, which includes the real costs of doing
business on the web rising. Also, the number of successful pure online companies will
remain smaller than integrated online/offline stores.

Chapter 2
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QA

What are the eight key components of an effective business model?
Eight key components of an effective business model are value proposition,

revenue model, market opportunity, competitive environment, competitive advantage,
market strategy, organizational development and management team.
2

Describe the five primary revenue models used by e-commerce firms.
The five primary revenue models used by e-commerce firms are advertising

revenue model which is when a company provides a forum for advertisements and
receives fees from advertisers. Subscription revenue model which is when a company
offers its users content or services and charges a subscription fee for access to some or
all of its offerings. Transaction fee revenue model is when a company receives a fee
for enabling or executing a transaction. Sales revenue model is when a company
derives revenue by selling goods, information, or services and affiliate revenue model
which is when a company steers business to an affiliate and receives a referral fee or
percentage of the revenue from any resulting sales.
3

Why is targeting a market niche generally smarter for a community
provider than targeting a large market segment?
It is smarter to target a market niche rather than targeting a large market segment

because there are many market niche’s within a large market segment and it is a lot
easier to get into the company by dominating the market niche before you try to take
over the whole market segment.

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Besides the examples given in the chapter, what are some other examples of
vertical and horizontal portals in existence today?
Some examples of vertical portals would be theartsportal.com or

themusicportal.com. An example of an horizontal portal would be Net vibes or
MSNBC.
5

What are the major differences between virtual storefronts such as
Drugstore.com and bricks-and-clicks operations such as Walmart.com?
What are the advantages and disadvantages of each?
Storefronts are an online version of the retail store, where customers can shop at

any hour of the day or night without leaving their home or office. Bricks-and-clocks
operations are online distribution channels for a company that also has physical stores
so you have your choice of either physically going to the store or shopping online.
Advantages of bricks-and-clicks are if you see an item and you like it but you wanted
to see it in person before you bought it you could go to the store and see it first. Or the
other way if you see a product in the store that you really like and you decide that you
wanted it after your home you could just get online and order it instead of having to
go back to the store. The disadvantages could be they might get your order wrong
ordering offline.

Chapter 3
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QA

Why isn’t the Internet overloaded? Will it ever be at capacity?
The internet isn’t overloaded because more and more servers are being added and

the Internet architecture is built in layers so that each layer can change without
disturbing development in other layers. The internet will never be at capacity if more
layers continue to be produced.
2

Compare and contrast intranets, extranets, and the Internet as a whole.
Intranet is a TCP network that is located within a single organization for purposes

of communications and information processing. An extranet is formed when firms
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intranet would be Microsoft and it is far less expensive to run on an Intranet. An
extranet would be like General Motors which allows parts suppliers to gain access to
GM’s network.
3

What are some of the challenges of policing the Internet? Who has the final
say when it comes to content?
There is not one single governing organization that controls activity on the

Internet, instead there are several organizations that influence the system and monitor
its operations.
4

Why was the development of the browser so significant for the growth of
the Web?
It allowed people to share files, information, graphics, sound, video, and other

objects across all computer platforms in the world, regardless of operating system.
5

Name and describe five services currently available through the Web.
E-mail which allows messages containing text, picture, images, or sound to be

transferred from one Internet user to another. Instant messaging which allows
messages to be instantly sent between two users allowing for a two-way conversation.
Search engines which identify Web pages that match a query submitted by a user.
Blogs which are personal Web pages that typically contain a series of chronological
entries by the author and links to related Web pages. Wikis which are Web
applications that allow a user to easily add and edit content on a web page (ex.
Wikipedia).
6

What are at least three new services that will be available through the next
generation of the Internet?
RSS-an XML format that allows users to have digital content automatically sent to

their computers over the Internet. M-commerce applications which permit mobile
consumers to make payments easily from their cell phones. Online software and
services, such as web apps, widgets, gadgets, and distribution of software applications

and distributed storage offered by ASP’s.


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Chapter 4
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QA

Name the six main pieces of the e-commerce site puzzle.
The six main pieces of the e-commerce site puzzle are human resources, site

design, organizational capabilities, hardware architecture, software, and
telecommunications.
2

Define the systems development life cycle and discuss the various steps
involved in creating an e-commerce site.
The systems development life cycle are system analysis/planning, systems design

which is a description of the main components in a system and their relationship to
one another, building the system which is outsourcing, testing which contain unit
testing, system testing, and acceptance testing and implementation is the last step in
the cycle which is putting it to work.
3

What are the three main factors to consider when choosing the best
platform for your Web site?

The three main factors to consider when choosing the best platform for your Web

site are Page deliver, page generation and page content.
4

Why is Web server bandwidth an important issue for e-commerce sites?
Web server bandwidth is an issue for e-commerce sites because you have to make

sure that you have enough room for all of your customers to hit your site at the same
time.
5

Compare and contrast the various scaling methods. Explain why scalability
is a key business issue for Web sites.
Horizontal scaling is when you are employing multiple computers to share the

workload. Vertical scaling is increasing the processing power of individual
components. Scalability is a key business issue because it refers to the ability of a site
to increase in size as demand warrants.


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What are the eight most important factors impacting Web site design, and
how do they affect a site’s operation?
Eight most important factors impacting Web site design is functionality (pages that

work, load quickly, and point the customer toward your product offerings),

informational (links that customers can easily find to discover more about you and
your products), ease of use (simple fool-proof navigation), redundant navigation
(alternative navigation to the same content), ease of purchase (one or two clicks to
purchase), multi-browser functionality (site works with the most popular browsers),
simple graphics (avoids distracting, obnoxious graphics and sounds that the user
cannot control), and legible text (avoid backgrounds that distort text or make it
illegible)
7

Name and describe three tools used to treat customers individually. Why
are they significant to e-commerce?
Three tools used to treat customers individually are personalization which is the

ability to treat people based on their personal qualities and prior history with your site,
customization which is the ability to change the product to better fit the needs of the
customer and speaking directly to the customer on a one-to-one basis.
8

What are some of the policies e-commerce businesses must develop before
launching a site and why?
A few policies e-commerce businesses must develop before launching a site are a

privacy policy which is a set of public statements declaring to your customers how
you treat their personal information that you gather on the site and accessibility rules
which are a set of design objectives that ensure disabled users can effectively access
your site.

Chapter 5

QA

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Why is it less risky to steal online? Explain some of the ways criminals
deceive consumers and merchants.
Dlt is less risky to steal online because the Internet makes it possible to rob people

remotely and almost anonymously. A few of the ways criminals deceive consumers
2

Give an example of security breaches as they relate to each of the six
dimensions of e-commerce security. For instance, what would be a privacy
incident?
Integrity (ability to ensure that information being displayed on a Web site or

transmitted or received over the Internet has not been altered in any way by an
unauthorized party), Non repudiation (the ability to ensure that e-commerce
participants do not deny their online actions), and Authenticity (the ability to identify
the identity of a person or entity with whom you are dealing on the Internet).
3

How would you protect your firm against a Denial of Service attack?
I would protect my firm against a Denial of Service attack by assigning a duty to

part of my company to watch for these attacks to start coming in and block them
immediately.
4

How does spoofing threaten a Web site’s operations?
Spoofing threatens a Web site's operations by for ex if hackers redirect customers

to a fake Web site they can then collect and process orders, effectively stealing
business from the true site.
5

What are some of the steps a company can take to curtail cybercriminal
activity from within a business?
Some steps a company can take to curtail cybercriminal activity from within a

business by using firewalls or a proxy server so that they will be caught before they're
able to destroy everything.


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Identify and discuss the five steps in developing an e-commerce security
plan.
Five steps in developing an e-commerce security plan is perform a risk assessment

(an assessment of the risks and points of vulnerability), develop a security policy (a
set of statements prioritizing the information risks, identifying acceptable risk targets,
and identifying the mechanisms for achieving these targets), develop an
implementation plan (the action steps you will take to achieve the security plan goals),
create a security organization (educates and trains users, keeps management aware of
security threats and breakdowns, and maintains the tools chosen to implement

security), and perform a security audit (which involves the routine review of access
logs).
7

What are tiger teams, who uses them, and what are some of the tactics they
use in their work?
Tiger teams are groups of hackers that are used by corporate security departments

to test their own security measures. White hats are the good hackers who help
organizations locate and fix security flaws. Black hats are hackers who act with the
intention of causing harm, Grey hats are hackers who believe they are perusing some
greater good by breaking in and revealing system flaws.
8

How do the interests of the four major payment systems stakeholders
impact each other?
The interests of the four major payment systems stakeholders impact each other

because the stakeholders may have different preferences with respect to the different
dimensions. The main stakeholders in payment systems are consumers, merchants,
financial intermediaries, and government regulators.

Chapter 6

QA


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Other than search engines, what are some of the most popular uses of the
Internet?
Some of the most popular uses of the Internet other than search engines are

researching products and services, catching up on news, hobby-related info, seeking
health information, and reviewing financial information.
2

Would you say that the Internet fosters or impedes social activity? Explain
your position.
I think that the Internet helps social activity because it allows people to stay

connected easier. With Facebook and e-mail, you can get in touch with about anyone
that you wanted to and stay up to date with them.
3

Why would the amount of experience someone has using the Internet likely
increase future Internet usage?
The amount of experience someone has using the Internet will increase future

Internet usage because the more they know about it now, the easier it will be for them
to build on top of that in the future. The internet is always going to change and if you
aren't aware of how to use it now, then as time goes on it will be a harder process for
you to learn how to use it.
4

Research has shown that many consumers use the Internet to investigate
purchases before actually buying, which is often done in a physical
storefront. What implication does this have for online merchants? What can

they do to entice more online buying, rather than pure research?Name four
improvements Web merchants could make to encourage more browsers to
become buyers.
This means that customers are going to research many different websites before

actually buying a product. They could compare them to other competitors to see how
their information is laid out, what the price is, how easy it is to order, the reliability of
the website, etc. Four improvements Web merchants could make to encourage more
browsers to become buyers are use net for health, use net for news, months on
internet, and how much product information they have to share.


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Name the five stages in the buyer decision process, and briefly describe the
online and offline marketing activities used to influence each.
The five stages in the buyer decision process are awareness of need, search for

more information, evaluation of alternatives, the actual purchase decision, and postpurchase contact with the firm. Online-awareness of need is targeted banner ads,
interstitial, and targeted event promotions. Search is search engines, online catalogs,
site visits, and targeted e-mails. Evaluation of alternatives is search engines, online
catalogs, site visits, product reviews and user evaluations. Purchase is online
promotions, lotteries, discounts, and targeted e-mail. Post-purchase is communities of
consumption, newsletters, customer e-mail, and online updates. Offline- awareness of
need is mass media, tv, radio and print media. Search is catalogs, print ads, mass
media, salespeple, product raters, and store visits. Evaluation of alternatives is
reference groups, opinion leaders, mass media, product raters, and store visits.
Purchase is promotions, direct mail, mass media, and print media. Post-purchase is

warranties, service calls, parts and repair, and consumer groups.
6

What are the components of the core product, actual product, and
augmented product in a feature set?
The core product is the core benefit the customer receives from the product. The

actual product is the set of characteristics designed to deliver the product's core
benefits. The augmented product is a product with additional benefits to customers
beyond the core benefits embodied in the actual product.
7

Name some of the drawbacks to the four data mining techniques used in
Internet marketing.
A few of the drawbacks to the four data mining techniques used in Internet

marketing are there may be millions of rules, many of them nonsensical, and many
others of short-term duration. The rules need extensive validation and culling. Also,
there are millions of affinity groups and other patterns in the data that are temporal or
meaningless. The difficulty is isolating the valid, powerful patterns in the data and
then acting on the observed pattern fast enough to make a sale you would otherwise
not have made.


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Which of the four market entry strategies is most lucrative?
The most lucrative market entry strategy is to extend their businesses and brands

by using a mixed bricks-and-clicks strategy in which online marketing is closely
integrated with offline physical stores.
9

Compare and contrast the four marketing strategies used in mass
marketing, direct marketing, micromarketing, and one-to-one marketing.
One-to-one marketing is segmenting the market based on a precise and timely

understanding of an individual's needs, targeting specific marketing messages to these
individuals, and then positioning the product vis-a-vis competitors to be truly unique.
Mass marketing is based on national media messages aimed at a single national
audience and with a single national price, it is appropriate for products that are
relatively simple and attractive to all consumers in a single form. Direct marketing is
based on direct mail or phone messages and aimed at segments of the market likely to
purchase and which has little variation in price, is most often used for products that
can be stratified into different categories. Micro marketing is aimed at geographical
units or specialized market segments is the first form of true database marketing.
10

What are some of the reasons that freebies, such as free Internet service and
giveaways, don’t work to generate sales on a Web site?
After someone is given a freebie, in order for it to actually work and generate sales

on a Web site the customer has to pay for premium or add-on services and hopefully
will then pay or all the free riders on the service. Also, people switch from one free
service to another at the very mention of charges, so unless everyone does it; its likely
not to work.
11

Why do companies that bundle products and services have an advantage
over those that don’t or can’t offer this option?
Companies that bundle products and services have an advantage over those that

don't by if you bundle things, customers are going to be more likely to think "hey, this
is a good buy or a good idea" because it is more than one item for a fixed product.


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Chapter 7
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QA

Explain the difference between marketing and marketing communications.
Marketing communications has a dual purpose; branding and sales. One purpose of

marketing comm. is to develop and strengthen a firm’s brands by informing
consumers about the differentiating feature of the firm’s products and services.
2

What are some reasons why online advertising constitutes only about 9
percent of the total advertising market?
Some reasons why online advertising constitutes only about 9 percent of the total

advertising market is because consumer, financial services, computers,
telecommunications and media account for 80% of all online advertising.
3

What kinds of products are most suited to being advertised online?
Products that are most suited to being advertised online are ones that are able to be

in display ads, have rich media ads, and video ads.
4

What is the difference between an interstitial ad and a superstitial ad?
An interstitial ad is a way of placing a full-page message between the current and

destination pages of a user. A superstitial ad is a rich media ad that is pre-loaded into a
browser’s cache and does not play until fully loaded and the user clicks to another
page.
5

What are some of the reasons for the decline in click-through rates on
banner ads today? How can banner ads be made more effective?
Some reasons for the decline in click-through rates on banner ads today are

because banner ads display different images in relatively quick succession, creating an
animated effect and uses Flash video.
6

Why are some affiliate relationships called “tenancy” deals? How do they
differ from pure affiliate relationships?
Some affiliate relationships are called tenancy deals because they allow a firm to

become a long-term “tenant” on another site. They differ from pure affiliate

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relationships because an affiliate relationship is only a permit to be a tenant, and a
tenancy deal is long term.
7

There is some controversy surrounding paid placements on search engines.
What are some of the issues surrounding paid placement search engines?
Why might consumers object to this practice?
The Achilles’ heel of search engine marketing is “click fraud”. Just as spam has

greatly reduced the utility of e-mail marketing, so has click fraud raised the costs and
reduced the attractiveness of search engine marketing to merchants. Some of the
issues surrounding paid placement search engines are that anyone including
competitors can click on search engine ads, driving up a merchant’s costs, without
ever purchasing anything. Consumers may object to this practice because you can
increase your revenue by having friends and relatives click on the ads Google or
Microsoft place on your site without even purchasing anything.
8

What are some of the advantages of direct e-mail marketing?
Some advantages of direct e-mail marketing are by sending e-mail to an opt-in

audience, advertisers were targeting interested consumers. Response rates to
legitimate, opt-in e-mail campaigns average just over 6%, depending on the targeting
and freshness of the list.
9

What is the difference between hits and page views? Why are these not the

best measurements of Web traffic? Which is the preferred metric for traffic
counts?
Hits are number of http requests received by a firm’s server and page views are the

number of pages requested by visitors. These are not the best measurements of Web
traffic because a hit does not equal a page. A single page may account for several hits
if the page contains multiple images or graphics. A single Web site visitor can
generate hundreds of hits.
10

Define CTR, CPM, CPC, and CPA.
CTR is click-through rate which is the percentage of people exposed to an online

advertisement who actually click on the banner. CPM is cost per thousand which is


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advertiser prays for impressions in 1,000-unit lots. CPC cost per click which is when
an advertiser pays prenegotiated fee for each click an ad receives. CPA cost per action
is when advertisers pays only for those users who perform a specific action.
11

What are the key attributes of a good domain name?
Key attributes of a good domain name are it should be short, memorable, not easily

confused with others, and difficult to misspell.
12

What are some of the steps a firm can take to optimize its search engine
rankings?
Some of the steps a firm can take to optimize its search engine rankings are is

register it with as many search engines as possible, so that a user looking for similar
Web sites has a change of coming across the firm’s site. Ensure that keywords used in
the Web site description match keywords likely to be used as search terms by
prospective customers. Place keywords in a Web site’s metatag and page title. Link
the Web site to as many other Web sites as possible, both in-coming links and outgoing links.
13

List and describe some Web site design features that impact online
purchasing.
Some Web site design features that impact online purchasing are one click

purchase capability, product list navigation and choice features that save consumers
time

Chapter 8
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QA

What basic assumptions does the study of ethics make about individuals?
Some basic assumptions that the study of ethics makes about individuals are that

individuals are free moral agents who are in a position to make choices.
2

What are the three basic principles of ethics? How does due process factor

in?
The three basic principles of ethics are responsibility, accountability, and liability.

Due processes is a feature of law-governed societies and refers to a process in which


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laws are known and understood and there is an ability to appeal to higher authorities
to ensure that the laws have been applied correctly.
3

Explain Google’s position that YouTube does not violate the intellectual
property rights of copyright owners.
Google's position that YouTube does not violate the intellectual property rights of

copyright owners is because YouTube is not finding the videos and posting them their
self; others post their videos to the YouTube site.
4

Define universalism, slippery slope, the New York Times test, and the social
contract rule as they apply to ethics.
Universalism if an action is not right for all situations, then it is not right for any

specific situation. Slippery Slope is if an action cannot be taken repeatedly, then it is
not right to take at all. The New York Times test is do you want your name to be in
the New York times the next day? What would be the reaction from your friends and
family and would they be proud of you? The Social Contract Rule is would you like
to live in a society where the principle you are supporting would become an

organizing principle of the entire society?
5

Name some of the personal information collected by Web sites about their
visitors.
Some of the personal information that is collected by Web sites is your name,

address, phone number, e-mail address, social security number, age, gender,
occupation, bank accounts, credit card numbers, etc.
6

How does information collected through online forms differ from site
transaction logs? Which potentially provides a more complete consumer
profile?
Information collected through online forms differs form site transaction logs by

site transaction logs can be used to collect and analyze detailed information on page
content viewed by users. I think information collected through online forms provides a
more complete consumer profile because they can get your age, gender, phone
number, address, etc.


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Name three ways online advertising networks have improved on, or added
to, traditional offline marketing techniques.
Three ways online advertising networks have improved on, or added to, traditional

offline marketing techniques are they have the ability to precisely track not just
consumer purchases, but all browsing behavior on the Web at thousands of the most
popular member sites, including browsing book lists, filling out preference forms, and
viewing content pages. They can dynamically adjust what the shopper sees on screen
including prices. They can also build and continually refresh high-resolution data
images or behavioral profiles of consumers.
8

Explain how Web profiling is supposed to benefit both consumers and
businesses.
Web profiling is the creation of digital images that characterize online individual

and group behavior.
9

How could the Internet potentially change protection given to intellectual
property?
The Internet could potentially change protection given to intellectual property by

once intellectual works become digital, it becomes difficult to control access, use,
distribution, and copying.
10

What capabilities make it more difficult to enforce intellectual property
law?
Some capabilities that make it more difficult to enforce intellectual property law

are the internet technically allowing millions of people to make perfect digital copies
of various works.
11

What are some of the tactics illegal businesses, such as betting parlors and
casinos, successfully use to operate outside the law on the Internet?
Some of the tactics illegal businesses use to operate outside the law on the Internet

are using checks and money orders as payments and the postal system as logistics
partner, also with gambling they were using credit cards and other online payment
systems for Internet betting.


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Chapter 9
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QA

Why were so many entrepreneurs drawn to start businesses in the online
retail sector initially?
So many entrepreneurs are drawn to start businesses in the online retail sector

initially because it was one of the largest market opportunities in the U.S. economy.
Most believed it was easy to enter the retail market; however they were mistaken.
2

What frequently makes the difference between profitable and unprofitable
online businesses today?
Profitable online businesses involves having a central location in order to attract a

larger number of shoppers, charging high enough prices to cover the costs of goods as
well as marketing, and developing high efficient inventory and fulfillment systems so
that the company can offer goods at lower costs than competitors and still make profit.
3

Which segment of the offline retail business is most like online retailing?
Why?
The service sector is the segment of the offline retail business that is most like

online retailing.
4

Name the largest segment of U.S. retail sales. Explain why businesses in this
segment have achieved and continue to dominate online retailing.
The largest segment of U.S. retail sales is the service sector. Businesses in this

segment have achieved and continue to dominate online retailing because services
employ about 108 million people.
5

Name two assumptions e-commerce analysts made early on about
consumers and their buying behavior that turned out to be false.
Two assumptions e-commerce analysts made early on about consumers and their

buying behavior that turned out to be false were industry consolidation and the
movement toward integrated financial services.


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Why were customer acquisition costs assumed early on to be lower on the
Web? What was supposed to reduce those costs?
Customer acquisition costs were assumed early on to be lower on the Web because

people thought it would be harder than what it actually is to develop a business online.
7

Explain the distinction between disintermediation and hypermediation as it
relates to online retailing.
Disintermediation is the displacement of market middlemen who traditionally are

intermediaries between producers and consumers by a new direct relationship between
manufacturers and content originators with their customers. Hypermediation is when
it is much higher than intended.
8

Compare and contrast virtual merchants and bricks-and-clicks firms. What
other type of online retailer is most like the virtual merchant?
Virtual merchants are a single-channel Web firm that generates almost all of their

revenue from online sales. Bricks-and-clicks are companies that have a network of
physical stores as their primary retail channel, but also have introduced online
offerings.
9

What is the difference between a supply-push and a demand-pull sales
model? Why do most manufacturer-direct firms have difficulty switching to
one of these?

A supply-push sales model is when products are made prior to orders received

based on estimated demand. A demand-pull sales model is when products are not built
until an order is received.
10

What are five strategic issues specifically related to a firm’s capabilities?
How are they different from industry-related strategic issues?
The five strategic issues specifically related to a firm's capabilities are

consolidation, diversification, localization, job search engines/aggregators and social
networking.


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What are some of the difficulties in providing services in an online
environment? What factors differentiate the services sector from the retail
sector, for example?
Some of the difficulties in providing services in an online environment is if your

selling a product, your not able to physically see the product. Also, there can be the
thought that some customers have of their identity being stolen so they choose to not
shop online. The retail sector is more or less products while the services sector is a
service you are offering.
12

Compare and contrast the two major types of online service industries.

What two major features differentiate services from other industries?
The two major types of online service industries are financial services and travel

services.

Chapter 10
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QA

What are the three dimensions where the term convergence has been
applied? What does each of these areas of convergence entail?
The three dimensions where the term convergence has been applied are

Technology, content and industry. Each of these area of convergence entail
technological convergence is the development of hybrid devices that can combine the
functionality of two or more existing media platforms into a single device. Content
convergence is convergence in the design, production and distribution of the content.
Industry convergence is a merger of media enterprises into into synergistic
combination's that create and cross-market content on different platforms.
2

Why has media industry convergence not occurred as rapidly as predicted?
What are the five basic revenue models for online content and what is their
major challenge? What will have to be done in order to overcome this
obstacle to profitability?
Media industry convergence has not occurred as rapidly as predicted because they

don't want it to confuse the customers; so therefore they make it a much slower

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process. The five basic revenue models for online content are marketing, advertising,
pay-per-view, subscription, and mixed. Prosecuting lawbreakers and enhancing
security of online products will have to be done in order to overcome this obstacle to
profitability.
3

What four things must content provider firms do in order to generate
meaningful revenues?
Focused market, specialized content, sole-source monopoly, and high perceived

net value will have to be done in order to generate meaningful revenues.
4

How has the Internet impacted the content that newspapers can offer?
The Internet has impacted the content that newspapers can offer by anything can

be read on the Internet for free, so why would someone pay for a newspaper. People
can even print the information off the Internet and then it would be just the same as a
newspaper.
5

What are the advantages and disadvantages of e-book content?
An advantage of e-book content is it is easy to get to and can be easily organized

on the computer; however, most people had rather have an actual book especially
older people because that's what they grew up with.

6

How has the Internet changed the packaging, distribution, marketing, and
sale of traditional music tracks?
The Internet has changed the packaging, distribution, marketing, and sale of

traditional music tracks by anyone can look up any song/album online and can even
burn it to a cd; however, most of the time they are marketing more of a single song
that can include even the music video.
7

What are the factors that make nontraditional distinctly Web
entertainment sites so popular with users?
The factors that make nontraditional distinctly Web entertainment sites so popular

with users are customization, personalization, and easy access to anything.

Chapter 11

QA


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Why did most communities in the early days of e-commerce fail? What
factors enable some online social networks to prosper today?
Most communities in the early days of e-commerce failed because the early online

communities involved a relatively small number of Web aficionados, and users with
intense interests in technology, politics, literature, and ideas. The factors that enable
some online social networks to prosper today are a group of people, shared social
interaction, common ties among members, and people who share an area for some
period of time.
2

How does a social network differ from a portal? How are the two similar?
A social network differs from a portal because a portal is a group of web pages that

act as a starting point for using the Web or Web based services. A social network
consists of interaction between a group of people.
3

What is personalization, or personal value pricing, and how can it be used
at the beginning of a product’s life cycle to increase revenues?
Personalization pricing adjusts prices based on the merchant's estimate of how

much the customer truly values the product. It can be used at the beginning of a
product's life cycle to increase revenues because if a lot of people are buying the
product, then they can up the price; however, if it is not selling very well, they will put
it on sale.
4

List and briefly explain three of the benefits of auction markets.
The three benefits of auction markets are consumer-to-consumer auctions, in

which the auction house is simply an intermediary market maker, providing a forum
where consumers can discover prices and trade. Business-to-consumer auctions where
a business owns or controls assets and uses dynamic pricing to establish the price.

Business-to-business auctions is the third type. Three benefits of auctions Liquidity,
price discovery, and market efficiency.


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What are the four major costs to consumers of participating in an auction?
The four major costs to consumers of participating in an auction are delayed

consumption costs, monitoring costs, equipment costs, trust risks, and fulfillment
costs.
6

What is an auction aggregator and how does it work?
An auction aggregator is when you use computer programs to search thousands of

Web auction sites, and aggregate information on products, bids, auction duration, and
big increments.
7

What three characteristics define a portal site today?
Three characteristics that define a portal site today are web sites that contain in-

depth information and they seek to be a sticky destination.
8

List and briefly explain the main revenue sources for the portal business
model.

The main revenue sources for the portal business model are Reach, the percentage

of the Web audience that visits the site in a month and unique visitors the number of
uniquely identified individuals who visit in a month.

Chapter 12
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QA

Explain the differences among total inter-firm trade, B2B commerce, and
B2B e-commerce
Total inter-firm trade is the total flow of value among firms. B2B commerce is all

types of computer-enabled inter-firm trade. B2B e-commerce is that portion of B2B
commerce that is enabled by the Internet.
2

What are the key attributes of electronic storefronts? What early
technology are they descended from?
The key attributes of electronic storefronts are just online catalogs of products

made available to the public marketplace by a single supplier ex Amazon. This is
descended from automated order entry systems.


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List at least five potential benefits of B2B e-commerce.
Five potential benefits of B2B e-commerce are lower administrative costs, lower

search costs for buyers, increase production flexibility by ensuring delivery of parts
"just in time", increase opportunities for collaborating with suppliers and distributors,
and create a greater price transparency.
4

Define the term supply chain and explain what SCM systems attempt to do.
What does supply chain simplification entail?Explain the difference
between a horizontal market and a vertical market.
The term supply chain are firms that purchase goods, their suppliers, and their

suppliers' suppliers. Includes not only the firms themselves, but also the relationships
among them, and the processes that connect them. Supply chain simplification entails
involving the decision of who to buy from and what to pay, purchase orders are then
issued. A horizontal market is a market in which meets a given need of a wide variety
of industries, rather than a specific one. A vertical market is a group of similar
businesses and customers that engage in trade based on specific and specialized needs.
5

How do the value chain management services provided by e-procurement
companies benefit buyers? What services do they provide to suppliers?
The value chain management services benefit buyers because the suppl chain is

linked through a series of transactions and firms purchase goods from a set of
suppliers, and they in turn purchase their inputs from a set of suppliers.
6

What are the three dimensions that characterize an e-procurement market

based on its business functionality? Name two other market characteristics
of an e-procurement Net marketplace.
The three dimensions that characterize an e-procurement market based on its

business functionality are the decision of who to buy from and what to pay. Purchase
orders are then issued. Two other market characteristics of an e-procurement Net
marketplace are the Internet being an important contribution simply as a powerful
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Identify and briefly explain the anti-competitive possibilities inherent in Net
marketplaces. List three of the objectives of a private industrial network.
The anti-competitive possibilities inherent in Net marketplaces are they establish

the prices of the goods they offer in four primary ways...They earn revenue by
transaction fees, subscription fees, service fees, software licensing fees, advertising
and marketing, and sales of data and information. They are biased against suppliers
because they can force suppliers to reveal their prices and terms to other suppliers in
the marketplace. Three of the objectives of a private industrial network are to share
product design and development, marketing, and inventory.
8

What is CPFR, and what benefits could it achieve for the members of a
private industrial network?
CPFR is an industry model intended to facilitate suppliers and buyer interaction by

synchronizing supply and demand. Private industrial networks are owned by the
buyers and are buyer-side solutions with buyer biases...this could help improve the
cost position and flexibility of large industrial firms.
9

What are the barriers to the complete implementation of private industrial
networks?
The barriers to the complete implementation of private industrial networks are

because not every business is online right now. Since this business focuses on permit
buyer firms and their principal suppliers to share product design and development,
marketing, inventory, and production scheduling they have to be able to do this for
many businesses.