Electronic Electronic Commerce Commerce 2012, 7e 7e (Turban)
Chapter 4 B2B E-Commerce
4.1 True/False 1) B2B e-commerce refers to transactions between businesses that are conducted electronically over the public nternet only. !nswer" F!#$% &iff" 1 'a(e ef" 14* 2) The availability of a secure broadband nternet platform is one of the +ey drivers of B2B %,. !nswer" T% &iff" 1 'a(e ef" 14* ) B2B %, mar+etplaces that involve one seller sellin( to many buyers is called an echan(e. ech an(e. !nswer" F!#$% &iff" 1 'a(e ef" 14* 4) n one-to-many and many-to-one mar+etplaces0 if all sellin( is done by one company0 it is a buy-side mar+et. !nswer" F!#$% &iff" 2 'a(e ef" 14* ) n company-centric mar+etplaces0 the individual company has very little control over who participates in sellin( or buyin( transactions. !nswer" F!#$% &iff" 2 'a(e ef" 14* ) %-mar+etplace echan(es are usually owned and run by a third party or by a consortium. !nswer" T% &iff" 2 'a(e ef" 14* *) 3ar+et forecasters estimate that by 212 the (lobal B2B mar+et0 both online and offline0 o ffline0 could reach 51 trillion. !nswer" F!#$% &iff" 2 'a(e ef" 146 6) Businesses deal with other businesses for purposes beyond 7ust sellin( or buyin(. 8ne eample is that of collaborative commerce0 which includes communication0 desi(n0 plannin(0 and information sharin( amon( business partners. !nswer" T% &iff" 2 'a(e ef" 146 9) ntermediaries in B2B commerce that bro+er transactions between bu yers and sellers are third parties that are either virtual or bric+-and-mortar. bric+-and-mortar. !nswer" T% &iff" 2 'a(e ef" 149 1 ,opyri(ht : 212 'earson %ducation0 nc. publishin( as 'rentice ;all
1) $pot buyin( refers to the purchasin( of (oods and services accordin( to a schedule0 usually at prevailin( mar+et prices that are determined by supply and demand. !nswer" F!#$% &iff" 2 'a(e ef" 149 11) $toc+ echan(es and commodity echan(es ontal mar+etplaces are mar+ets that concentrate on a service0 material0 or a product that is used in all types of industries. !nswer" T% &iff" 2 'a(e ef" 1 1) 3averic+ buyin( refers to the plannin(0 or(ani>in(0 and coordinatin( of all the activities pertainin( to the purchasin( of the (oods and services necessary to accomplish the mission of an enterprise. !nswer" F!#$% &iff" 2 'a(e ef" 12 1*) everse auctions are one method of electronic procurement that is very popular with public or(ani>ations where tenderin( is usually mandatory. !nswer" T% &iff" 'a(e ef" 1* 16) !((re(atin( the catalo(s of all approved suppliers and combinin( them into a sin(le electronic catalo( is an effective solution for internal procurement because it minimi>es maveric+ buyin(. !nswer" T% &iff" 'a(e ef" 19 2 ,opyri(ht : 212 'earson %ducation0 nc. publishin( as 'rentice ;all
19) ,alte0 a multinational oil company0 reduced the number of its suppliers from over 0 to 6 by implementin( a central catalo( for internal purchasin(0 lowerin( the per unit prices. !nswer" T% &iff" 'a(e ef" 19 2) %chan(es can be vertical or hori>ontal. !nswer" T% &iff" 1 'a(e ef" 1*2 21) By law0 echan(es cannot be owned by a consortium. !nswer" F!#$% &iff" 'a(e ef" 1*4 22) !nonymity is a +ey in(redient of dynamic pricin(. !nswer" T% &iff" 2 'a(e ef" 1* 2) ! vertical portal is an echan(e formed and operated by a (roup of ma7or companies in an industry to provide industry-wide transaction services. !nswer" F!#$% &iff" 'a(e ef" 1* 24) &ynamic pricin( is the rapid movement of prices over time and possibly across customers0 as a result of supply and demand matchin(. !nswer" T% &iff" 1 'a(e ef" 1* 2) #oss of customer service ?uality is a potential ris+ for buyers in B2B echan(es. !nswer" T% &iff" 2 'a(e ef" 1* 2) 'otential (ains for sellers in B2B echan(es include less maveric+ buyin(. !nswer" F!#$% &iff" 'a(e ef" 1* 2*) ,orporate portals are ma7or (ateways throu(h which employees0 business partners0 and the public can enter a corporate website. !nswer" T% &iff" 2 'a(e ef" 1** 26) %ecutive and supervisor portals are used for trainin(0 dissemination of company news0 information0 and discussion (roups. !nswer" F!#$% &iff" 'a(e ef" 1*9
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29) 3obile portals are accessible via mobile devices. !nswer" T% &iff" 1 'a(e ef" 1*9 ) !libaba.com re?uires buyers to pay for sourcin(. !nswer" F!#$% &iff" 'a(e ef" 161 1) ,reatin( brand awareness is an advanta(e of B2B social networ+in(. !nswer" T% &iff" 2 'a(e ef" 162-16 2) $ocial networ+s are used etensively in the B2B mar+etplace. !nswer" F!#$% &iff" 'a(e ef" 16 ) @oo(leAs 8pen$ocial is a pro(rammin( standard that lets developers create applications that can run on a wide ran(e of social networ+in( platforms0 which may increase B2B social networ+in(. !nswer" T% &iff" 2 'a(e ef" 16 4) The mar+etin( and advertisin( processes used for B2B and B2, are remar+ably similar. !nswer" F!#$% &iff" 2 'a(e ef" 16 ) !ffiliate pro(rams0 infomediaries0 and online data and tet minin( services are three popular B2B mar+etin( and advertisin( methods. !nswer" T% &iff" 1 'a(e ef" 16*
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4.2 3ultiple ,hoice 1) ey business drivers for B2B include each of the followin( except !) the availability of a secure broadband nternet platform. B) the ability to reduce delays. ,) the willin(ness of companies to incur hi(her costs to improve collaboration. &) the need for collaborations between suppliers and buyers. !nswer" , &iff" 1 'a(e ef" 14* !!,$B" se of information technolo(y 2) %-commerce that focuses on a sin(le companyAs buyin( needs or sellin( needs best defines !) computer echan(e. B) business-to-business e-commerce. ,) private mar+etplace. &) company-centric %,. !nswer" & &iff" 2 'a(e ef" 14* ) 3any-to-many e-mar+etplaces0 usually owned and run by a third party or a consortium0 in which many buyers and many sellers meet electronically to trade with each other best d escribes !) echan(es. B) public mar+et. ,) company-centric %,. &) spot purchases. !nswer" ! &iff" 1 'a(e ef" 14* 4) B2B transactions that involve communication0 desi(n0 plannin(0 information sharin(0 and activities beyond financial transactions amon( business partners defines !) echan(es. B) collaborative commerce. ,) tradin( communities. &) public mar+etplaces. !nswer" B &iff" 'a(e ef" 146 !!,$B" se of information technolo(y ) !n online third party that bro+ers a transaction online between a buyer and a seller best describes !) strate(ic source. B) hori>ontal mar+etplace. ,) vertical mar+etplace. &) online intermediary. !nswer" & &iff" 2 'a(e ef" 149 !!,$B" se of information technolo(y ,opyri(ht : 212 'earson %ducation0 nc. publishin( as 'rentice ;all
) Types of B2B transactions include !) strate(ic sourcin(. B) randomi>ed buyin(. ,) intermediation. &) reverse purchasin(. !nswer" ! &iff" 2 'a(e ef" 149 *) The purchase of (oods and services as they are needed0 usually at prevailin( mar+et prices0 best defines !) direct materials. B) consolidation. ,) spot buyin(. &) strate(ic sourcin(. !nswer" , &iff" 2 'a(e ef" 149 !!,$B" se of information technolo(y 6) 'urchases of (oods and services based on lon(-term contracts best defines !) direct materials. B) consolidation. ,) spot buyin(. &) strate(ic sourcin(. !nswer" & &iff" 2 'a(e ef" 149 !!,$B" se of information technolo(y 9) Chich of the followin( can be supported more effectively and efficiently throu(h direct buyer-seller ne(otiationsD !) strate(ic sourcin( B) spot buyin( ,) B2, e-commerce &) 38 !nswer" ! &iff" 2 'a(e ef" 1 !!,$B" se of information technolo(y 1) 3aterials used in the production of a product best defines !) indirect materials. B) direct materials. ,) 38 materials. &) production materials. !nswer" B &iff" 2 'a(e ef" 1
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11) Two types of materials and supplies that are traded in B2B are !) di(ital and physical. B) direct and indirect. ,) hori>ontal and vertical. &) commodities and nonproduction. !nswer" B &iff" 1 'a(e ef" 1 !!,$B" se of information technolo(y 12) 3aterials used to support production are called !) indirect materials. B) operational materials. ,) direct materials. &) virtual materials. !nswer" ! &iff" 2 'a(e ef" 1 !!,$B" se of information technolo(y 1) The ma7or B2B service industries include each of the followin( except !) travel and hospitality services. B) financial services. ,) ban+in( and online financin(. &) retail. !nswer" & &iff" 2 'a(e ef" 11-12 !!,$B" se of information technolo(y 14) Chich of the followin( is not one of the ma7or benefits of B2B for both buyers and sellersD !) epedites processin( and reduces cycle time B) reduces procurement costs ,) enables customi>ed online catalo(s with different prices for different customers &) increases opportunities for collaboration !nswer" B &iff" 'a(e ef" 1 !!,$B" se of information technolo(y 1) ! business strate(y that focuses on providin( comprehensive ?uality service to business partners best defines !) customer relationship mana(ement. B) supplier relationship mana(ement. ,) partner relationship mana(ement. &) supply chain mana(ement. !nswer" , &iff" 'a(e ef" 1
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1) ! comprehensive approach to mana(in( an enterpriseAs interactions with the or(ani>ations that supply the (oods and services it uses best defines !) customer relationship mana(ement. B) supply chain mana(ement. ,) partnership relationship mana(ement. &) supplier relationship mana(ement. !nswer" & &iff" 'a(e ef" 1 1*) !ll are benefits of B2B except !) creates new sales or purchase opportunities. B) eliminates paper and reduces administrative costs. ,) increases channel conflict. &) lowers search costs and time for buyers to find products and vendors. !nswer" , &iff" 1 'a(e ef" 1 !!,$B" se of information technolo(y 16) ! Ceb-based mar+etplace in which one company sells to many business buyers from ecatalo(s or auctions0 fre?uently over an etranet0 describes !) sell-side e-commerce. B) sin(le-side e-commerce. ,) buy-side e-commerce. &) reflective e-commerce. !nswer" ! &iff" 1 'a(e ef" 14 !!,$B" se of information technolo(y 19) $everal benefits of 3icrosoftAs EEEEEEEE are that distributors can chec+ inventory0 ma+e transactions0 and loo+ up the status of their orders0 si(nificantly reducin( the number of phone calls0 e-mails0 and incorrect product shipments. !) etranet-based order-entry tool B) electronic data interchan(e ,) customi>ed catalo( &) auto-responder !nswer" ! &iff" 'a(e ef" 1 !!,$B" se of information technolo(y
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2) ;i(h-?uality bicycle manufacturer @re((As ,ycles does not sell its products online0 nor do they allow their bicycles to be sold online by others. By not sellin( online0 @re((As ,ycles avoids EEEEEEEE with its dealers and the independent bi+e shops that sell its bi+es. !) pricin( conflict B) channel conflict ,) multichannel distribution &) disintermediation !nswer" B &iff" 2 'a(e ef" 1 !!,$B" se of information technolo(y 21) Benefits of usin( a third-party hostin( company for conductin( B2B auctions instead of developin( an auction site in-house include all of the followin( except !) no hirin( costs. B) no redeployment of corporate resources. ,) time-to-mar+et of several wee+s. &) no need for additional resources such as hardware0 bandwidth0 or T personnel. !nswer" , &iff" 'a(e ef" 1 !!,$B" se of information technolo(y 22) ,ompanies use EEEEEEEE to sell their unneeded assets for ?uic+ disposal or to dispose of ecess0 obsolete0 and returned products. !) private auctions B) li?uidation ,) reverse auctions &) forward auctions !nswer" & &iff" 2 'a(e ef" 1 !!,$B" se of information technolo(y 2) ! characteristic that describes customer loyalty to a site that eventually results in hi(her revenue best defines !) retention. B) ac?uisition. ,) stic+iness. &) attachment. !nswer" , &iff" 2 'a(e ef" 1
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24) ! corporate-based ac?uisition site that uses reverse auctions0 ne(otiations0 (roup purchasin(0 or any other e-procurement method best defines !) des+top procurement method. B) buy-side e-mar+etplace. ,) intermediary. &) a((re(ated catalo(. !nswer" B &iff" 'a(e ef" 12 !!,$B" se of information technolo(y 2) The plannin(0 or(ani>in(0 and coordinatin( of all the activities relatin( to purchasin( (oods and services needed to accomplish the or(ani>ationAs mission best defines !) buy-side e-mar+etplace. B) supply chain mana(ement. ,) procurement mana(ement. &) customer relationship mana(ement. !nswer" , &iff" 2 'a(e ef" 12 2) nplanned purchases of items needed ?uic+ly0 often at non-prene(otiated hi(her prices0 best defines !) impulse purchases. B) free mar+et. ,) 38 purchasin(. &) maveric+ buyin(. !nswer" & &iff" 2 'a(e ef" 12 2*) 3a7or procurement methods include !) buyin( at an echan(e or industrial mall. B) buyin( at private or public auction sites in which the or(ani>ation participates as one of the buyers. ,) buyin( directly from manufacturers0 wholesalers0 or retailers from their catalo(s0 and possibly by ne(otiation. &) all of the above. !nswer" & &iff" 1 'a(e ef" 1 26) The electronic ac?uisition of (oods and services for or(ani>ations via the nternet or private networ+ best defines !) e-procurement. B) spot buyin(. ,) resource ac?uisition. &) 38 plannin(. !nswer" ! &iff" 1 'a(e ef" 1 1 ,opyri(ht : 212 'earson %ducation0 nc. publishin( as 'rentice ;all
29) sin( nternet technolo(y to buy (oods and services from a number of +nown or un+nown suppliers best defines !) e-reverse auctionin(. B) e-tenderin(. ,) e-sourcin(. &) e-informin(. !nswer" ! &iff" 2 'a(e ef" 1 ) Types of e-procurement include !) %-38. B) %-mar+et sites. ,) %-informin(. &) all of the above. !nswer" & &iff" 1 'a(e ef" 1-1 1) @atherin( and distributin( purchasin( information both from and to internal and eternal parties usin( nternet technolo(y best defines !) e-tenderin(. B) e-informin(. ,) e-sourcin(. &) e-38. !nswer" B &iff" 2 'a(e ef" 1 2) %-procurement benefits include each of the followin( except !) reducin( the number of suppliers. B) ensurin( delivery on time0 every time. ,) ease of internal and eternal inte(ration. &) improvin( information flow and mana(ement. !nswer" , &iff" 'a(e ef" 1 ) %-procurement limitations and challen(es include each of the followin( except !) the technolo(y needs to be updated fre?uently. B) the system may be too comple. ,) the cost may be too hi(h. &) the ease of (ettin( suppliers to cooperate electronically. !nswer" & &iff" 'a(e ef" 1*
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4) Chich of the followin( is the unplanned0 emer(ency-type buyin( where buyers usually pay moreD !) maveric+ buyin( B) spot buyin( ,) impulse purchasin( &) etreme purchasin( !nswer" ! &iff" 2 'a(e ef" 19 ) !dvanta(es of usin( internal catalo(s include !) decreasin( the number of suppliers. B) easy financial controls. ,) usin( search en(ines to loo+ throu(h internal catalo(s. &) all of the above. !nswer" & &iff" 1 'a(e ef" 19 ) The a((re(ated catalo(s of all approved suppliers combined into a sin(le internal electronic catalo( defines !) barterin( echan(e. B) buy-side e-mar+etplace. ,) sell-side e-mar+etplace. &) internal procurement mar+etplace. !nswer" & &iff" 'a(e ef" 19 !!,$B" se of information technolo(y *) !n eample of a successful a((re(ation of suppliersA catalo(s is that of EEEEEEEE0 which a((re(ates more than 10 items from the catalo(s of approved suppliers into an internal electronic catalo(. !) 3aster,ard nternational B) !ma>on.com ,) @oo(le &) 'riceline.com !nswer" ! &iff" 2 'a(e ef" 19 !!,$B" se of information technolo(y 6) &irect purchasin( from internal mar+etplaces without the approval of supervisors and without the intervention of a procurement department best defines !) spot buyin(. B) des+top purchasin(. ,) maveric+ buyin(. &) rene(ade purchasin(. !nswer" B &iff" 2 'a(e ef" 1*
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9) Cith a barterin( echan(e0 a company submits its surplus to the echan(e and receives !) points of credit0 which the company can then use to buy items that it needs. B) an e?uivalent amount of products or services. ,) interest payments until it buys somethin( from the echan(e. &) cash minus a small commission for services. !nswer" ! &iff" 2 'a(e ef" 1*1 !!,$B" se of information technolo(y 4) B2B portals that focus on a sin(le industry or industry se(ment best describes !) local portals. B) information portals. ,) vortals. &) collaborative portals. !nswer" , &iff" 'a(e ef" 1* 41) 'ortals that store data and enable users to navi(ate and ?uery these data are !) collaborative portals. B) information portals. ,) mobile portals. &) 38 portals. !nswer" B &iff" 2 'a(e ef" 1*9 42) The main uses of social networ+s include !) reducin( the number of suppliers. B) encoura(in( maveric+ purchases. ,) learnin( useful business intelli(ence. &) drivin( traffic to online Ceb properties. !nswer" , &iff" 2 'a(e ef" 164 4) Chich of the followin( companies uses viral videos to promote renewals of ,are 'ac+ $ervice a(reementsD !) eed Business nformation B) ,isco $ystems ,) !r+eti @roup &) ;ewlett-'ac+ard !nswer" & &iff" 2 'a(e ef" 164
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44) 3ar+etin( by manufacturers and wholesalers alon( the sell-side of the supply chain best defines !) B2, mar+etin(. B) B2B mar+etin(. ,) 32C mar+etin(. &) 32B purchasin(. !nswer" B &iff" 2 'a(e ef" 16 4) &enver Boards0 a B2B manufacturer of snowboard e?uipment0 can reach and tar(et new retail customers in order to (row its online business by !) hirin( an affiliation service to drive traffic to its Ceb site. B) reviewin( '8$ data. ,) minin( data. &) advertisin( in traditional media. !nswer" ! &iff" 'a(e ef" 16* 4. %ssay 1) #ist and briefly describe the four basic types of B2B transactions and activities. !nswer" The four basic types of B2B transactions and activities are sell-side0 buy-side0 echan(es0 and supply chain improvements and collaborative commerce. Chile sell-side refers to one seller to many buyers0 buy-side refers to one buyer from many sellers. %chan(es involve many sellers to many buyers. $upply chain improvements and collaborative commerce refers to activities0 other than buyin( or sellin(0 amon( business partners0 such as supply chain improvements0 communication0 collaboration0 and information sharin( for 7oint desi(n and plannin(. &iff" 1 'a(e ef" 14*-146 2) #ist five ma7or benefits of B2B for buyers or sellers or both. !nswer" 3a7or benefits of B2B for buyers0 sellers0 or both include <1) creatin( new sales or purchase opportunities <2) eliminatin( paper and reducin( administrative costs <) epeditin( processin( and reducin( cycle time <4) lowerin( search costs and time for buyers to find products and vendors <) increasin( productivity of employees dealin( with buyin( and/or sellin( <) reducin( errors and improvin( ?uality of services <*) ma+in( product confi(uration easier <6) reducin( mar+etin( and sales costs for sellers <9) reducin( inventory levels and costs <1) enablin( customi>ed online catalo(s with different prices for different customers <11) increasin( production fleibility0 permittin( 7ust-in-time delivery <12) reducin( procurement costs for buyers <1) facilitatin( customi>ation via confi(uration <14) providin( for efficient customer service and <1) increasin( opportunities for collaboration. &iff" 2 'a(e ef" 1
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) dentify five of the seven types of e-procurement. !nswer" %-sourcin(0 e-tenderin(0 e-reverse auctionin(0 e-informin(0 web-based %'0 e-mar+et sites0 and e-38 are seven types of e-procurement. &iff" 2 'a(e ef" 1-1 4) Chat are the three ma7or functions of echan(esD !nswer" The three ma7or functions of echan(es are matchin( buyers and sellers0 facilitatin( transactions0 and maintainin( echan(e policies and infrastructure. &iff" 1 'a(e ef" 1* ) #ist five (eneric types of portals. !nswer" The five (eneric types of portals are portals for suppliers and other partners0 customer portals0 employee portals0 eecutive and supervisor portals0 and mobile portals. &iff" 1 'a(e ef" 1*6-1*9
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