Laudon E Commerce 2013 9e

 E-commerce 2013, 2013, 9e (Laudon/Tr  (Laudon/ Traver) aver)

Chapter 1 The Revolution Is Just Beginning

1) The growth of mobile e-commerce almost doubled from 2011 2 011 to 2012. Answer: TRUE iff: 2 !age Ref: " AA#$%: Reflecti&e Thin'ing 2) A((roimatel* "0+ of adults in the United $tates use a social networ' on a dail* basis. Answer: ,A$E iff: 2 !age Ref: " AA#$%: Reflecti&e Thin'ing ) A com(an*/s online in&entor* control (rocess is an eam(le of e-business as o((osed to ecommerce. Answer: TRUE iff: 2 !age Ref: 1 AA#$%: Anal*tic $'ills ) Ubiuit* increases cogniti&e energ* outla*s. Answer: ,A$E iff: 2 !age Ref: 13

4) The fact that e-commerce is conducted on the basis of uni&ersal standards decreases mar'et entr* costs for merchants. Answer: TRUE iff:  !age Ref: 15 AA#$%: Reflecti&e Thin'ing 3) !rice trans(arenc* refers to the abilit* of merchants to segment the mar'et into grou(s willing to (a* different (rices. Answer: ,A$E iff: 2 !age Ref: 1" AA#$%: Reflecti&e Thin'ing 5) #ost trans(arenc* refers to the abilit* of consumers to disco&er the actual costs merchants (a* for (roducts. Answer: TRUE iff: 2 !age Ref: 1" AA#$%: Reflecti&e Thin'ing ") #ustomi6ation in&ol&es changing a deli&ered (roduct ( roduct or ser&ice based u(on a consumer/s  (references or (ast (urchasing beha&ior. Answer: TRUE iff: 2 !age Ref: 17 AA#$%: Reflecti&e Thin'ing 1

7) 8eb 2.0 describes a set of a((lications and technologies that encourage and rel* on user- and consumer-generated interacti&it* and content. Answer: TRUE iff: 1 !age Ref: 17 AA#$%: Use of 9T 10) $ocial e-commerce is the largest t*(e of e-commerce. Answer: ,A$E iff: 1 !age Ref: " AA#$%: Reflecti&e Thin'ing 11) E-commerce as we 'now it toda* would not eist without the 9nternet. Answer: TRUE iff: 1 !age Ref: 25 AA#$%: Reflecti&e Thin'ing 12) The growth of %2# e-commerce is limited b* the fact that consumers need to (ossess a more so(histicated s'ill set than consumers who sho( offline. Answer: TRUE iff: 2 !age Ref: 27 AA#$%: Reflecti&e Thin'ing 1) 9n 2011 a new 9nternet in&estment bubble focused (rimaril* on social networ's emerged. Answer: TRUE iff: 2 !age Ref: 5 AA#$%: Reflecti&e Thin'ing 1) As economists had en&isioned (rices of (roducts sold on the 8eb are consistentl* lower than elsewhere and the online mar'et(lace is characteri6ed b* decreasing (rice dis(ersion. Answer: ,A$E iff:  !age Ref: 3-" AA#$%: Reflecti&e Thin'ing 14) The future of e-commerce will include an increase in regulator* acti&it* both in the United $tates and worldwide. Answer: TRUE iff: 1 !age Ref:  AA#$%: Reflecti&e Thin'ing 13) 8hich of the following statements about 9nternet use in the United $tates in 2012 is not  true A) $ocial e-commerce generated more re&enue than local e-commerce. %) A((roimatel* 140 million users made at least one (urchase online. #) Almost 40+ of adult 9nternet users &isited an online social networ' dail*. ) ;rowth rates for %2# e-commerce were higher in the United $tates than in Euro(e. Answer:  iff:  !age Ref: " AA#$%: Reflecti&e Thin'ing 2

15) 9n 2012 roughl* <<<<<<<< million (eo(le in the United $tates accessed the 9nternet &ia mobile de&ices. A) 0 %) 34 #) "0 ) 120 Answer:  iff:  !age Ref: " AA#$%: Reflecti&e Thin'ing 1") 8hich of the following is not  a ma=or business trend in e-commerce in 2012-201 A) Retail e-commerce continues double-digit growth. %) $mall businesses and entre(reneurs are ham(ered b* the rising cost of mar'et entr* caused b* increased (resence of industr* giants. #) ,aceboo' grows to more than 1 billion users. ) $ocial and mobile ad&ertising begins to challenge search engine mar'eting. Answer: % iff: 2 !age Ref: 10 AA#$%: Use of 9T 17) All of the following are ma=or technolog* trends in e-commerce in 2012-201 except : A) #loud com(uting enables the creation of >big data.> %) A((s create a new (latform for online mar'eting and commerce. #) The mobile com(uting (latform begins to ri&al the !# (latform. ) Real-time ad&ertising becomes a realit* with gains in com(uting ( ower and s(eeds. Answer: A iff: 2 !age Ref: 10-11 AA#$%: Reflecti&e Thin'ing 20) E-commerce can be defined as: A) the use of the 9nternet and the 8eb to transact business. %) the use of an* 9nternet technologies in a firm/s dail* acti&ities. #) the digital enablement of transactions and (rocesses within an organi6ation. ) an* digitall* enabled transactions among indi&iduals and organi6ations. Answer: A iff: 1 !age Ref: 12 AA#$%: Reflecti&e Thin'ing 21) 8hich of the following is not  a uniue feature of e-commerce technolog* A) interacti&it* %) social technolog* #) global broadcasting ) richness Answer: # iff: 2 !age Ref: 14 AA#$%: Use of 9T 

22) The integration of &ideo audio and tet mar'eting messages into a single mar'eting message and consuming e(erience is an eam(le of: A) richness. %) ubiuit*. #) information densit*. ) (ersonali6ation. Answer: A iff: 2 !age Ref: 14 AA#$%: Reflecti&e Thin'ing 2) 8hich of the following ualities is least  li'el* to decrease a consumer/s search costs A) ubiuit* %) global reach #) information densit* ) richness Answer:  iff:  !age Ref: 1-17 AA#$%: Anal*tic $'ills 2) 8hich of the following is the best definition of transaction cost A) the cost of changing (rices %) the cost of (artici(ating in a mar'et #) the cost of finding suitable (roducts ) the cost merchants (a* to bring their goods to mar'et Answer: % iff: 2 !age Ref: 13 AA#$%: Reflecti&e Thin'ing 24) 9n 2012 the world/s online (o(ulation was roughl*: A) 20 million. %) 2. billion. #) 2 billion. ) 20 billion. Answer: % iff: 2 !age Ref: " AA#$%: Reflecti&e Thin'ing 23) 8hich of the following is not  one of the current ma=or social trends in e-commerce in 2012201 A) $(am declines as a significant (roblem. %) #ontro&ers* o&er content regulation and controls continues. #) E-boo's gain wide acce(tance. ) 9nternet securit* continues to decline. Answer: A iff: 2 !age Ref: 11 AA#$%: Reflecti&e Thin'ing 

25) ?etwor' eternalities are related to which of the following features of e-commerce technolog* A) richness %) interacti&it* #) uni&ersal standards ) information densit* Answer: # iff:  !age Ref: 15 AA#$%: Reflecti&e Thin'ing 2") E-commerce technologies ha&e changed the traditional tradeoff between the richness and reach of a mar'eting message. !rior to the de&elo(ment of the 8eb: A) mar'eting messages had little richness. %) the smaller the audience reached the less rich the message. #) the larger the audience reached the less rich the message. ) richness eualed reach. Answer: # iff: 2 !age Ref: 15 AA#$%: Use of 9T 27) 8hich of the following is not  an eam(le of a social networ' A) 8i'i(edia %) Twitter  #) !interest ) ,aceboo'  Answer: A iff: 1 !age Ref: 5 17-20 AA#$%: Reflecti&e Thin'ing 0) All of the following are ma=or business trends in e-commerce in 2012-201 except  for: A) the growth of a new a((-based online econom*. %) the e(ansion of the locali6ation of e-commerce. #) the emergence of a new social e-commerce (latform. ) the ecli(se of search engine mar'eting b* the mobile ad&ertising (latform. Answer:  iff: 2 !age Ref: 10 AA#$%: Reflecti&e Thin'ing 1) 8hich t*(e of e-commerce is distinguished b* the t*(e of technolog* used in the transaction rather than b* the nature of the mar'et relationshi( A) #onsumer-to-consumer @#2#) %) $ocial e-commerce #) obile e-commerce ) %usiness-to-business @%2%) Answer: # iff: 2 !age Ref: 21 2 AA#$%: Use of 9T 4

2) 8hich of the following allows *ou to rate categori6e and share the content *ou find online A) 8ord!ress %) $tumbleU(on #) 8i'i(edia ) 9nstagram Answer: % iff: 1 !age Ref: 20 AA#$%: Reflecti&e Thin'ing ) 8hich of the following describes the basic 8eb (olic* of large firms during the (eriod of in&ention A) integrate social networ'ing and mobile (latform with 8eb site mar'eting %) use 8eb to connect with su((liers #) include additional channels to mar'et (roducts ) maintain a basic static 8eb site Answer:  iff: 2 !age Ref: 2 AA#$%: Anal*tic $'ills ) The si6e of the global #2# mar'et in 2012 was around: A) B"00 million. %) B" billion. #) B"0 billion. ) B"00 billion. Answer: # iff: 2 !age Ref: 22 AA#$%: Reflecti&e Thin'ing 4) 9nteracti&it* in the contet of e-commerce can be described as: A) the abilit* to (h*sicall* touch and mani(ulate a (roduct. %) the com(leit* and content of a message. #) the abilit* of consumers to create and distribute content. ) the enabling of two-wa* communication between consumer and merchant. Answer:  iff: 2 !age Ref: 15 AA#$%: Reflecti&e Thin'ing 3) 8hich of the following statements about the 8eb is not  true A) 9t is the technolog* u(on which the 9nternet is based. %) 9t was de&elo(ed in the earl* 1770s. #) 9t (ro&ides access to (ages written in CT. ) 9t (ro&ides access to 8eb (ages that incor(orate gra(hics sound and multimedia. Answer: A iff: 2 !age Ref: 2 AA#$%: Reflecti&e Thin'ing

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5) 9n 2012 there were an estimated <<<<<<<< 9nternet hosts. A) " million %) "" million #) """ million ) "."" billion Answer: # iff: 2 !age Ref: 2 AA#$%: Reflecti&e Thin'ing ") All of the following can be considered a (recursor to e-commerce except : A) ?$. %) %ater Cealthcare/s remote order entr* s*stem. #) the ,rench initel. ) Electronic ata 9nterchange. Answer: A iff: 2 !age Ref: 2 25 AA#$%: Reflecti&e Thin'ing 7) 9n the %2# arena <<<<<<<< was the first trul* large-scale digitall* enabled transaction s*stem. A) Tele %) the %ater Cealthcare s*stem #) the ,rench initel ) E9 Answer: # iff: 2 !age Ref: 25 AA#$%: Reflecti&e Thin'ing 0) E-commerce can be said to ha&e begun in: A) 17". %) 17"4. #) 1774. ) 2001. Answer: # iff: 2 !age Ref: 25 AA#$%: Reflecti&e Thin'ing 1) %usiness-to-consumer @%2#) e-commerce: A) has grown at double-digit rates in 2011 and 2012. %) is growing at a slower rate than the traditional retail mar'et. #) is a ma=or (art @o&er 0 (ercent) of the o&erall retail mar'et. ) growth is slowing as it confronts its own fundamental limitations. Answer: A iff: 2 !age Ref: 25 AA#$%: Reflecti&e Thin'ing

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2) 9n the >bow-tie> analog* of the structure of the 8eb >tendrils> are: A) (ages that lin' to the center but which are not lin'ed to from the center. %) (ages that neither lin' to nor are lin'ed from the center. #) (ages that do not lin' to the center but are lin'ed to from the center. ) (ages that lin' to one another without (assing through the center. Answer: % iff:  !age Ref: 24 AA#$%: Anal*tic $'ills ) 8hich of the following is not a limitation on the growth of %2# e-commerce A) the so(histicated s'ill set reuired to use the 9nternet and e-commerce s*stems %) the (ersistent global ineualit* limiting access to tele(hone ser&ice !#s and cell (hones #) saturation and ceiling effects ) the retrenchment and consolidation of e-commerce into the hands of large established firms Answer:  iff: 2 !age Ref: 27 AA#$%: Anal*tic $'ills ) %* what *ear is the United $tates 9nternet household (enetration rate li'el* to reach the current le&el of cable tele&ision (enetration A) 2014 %) 201" #) 2022 ) 9t has alread* reached the le&el of cable tele&ision (enetration. Answer: A iff: 2 !age Ref: 0 AA#$%: Reflecti&e Thin'ing 4) Around what (ercentage of 9nternet users in the United $tates access the 9nternet through mobile de&ices A) 0 %) 40 #) 50 ) 70 Answer: % iff:  !age Ref: 0 AA#$%: Use of 9T 3) 8hich of the following is not  a characteristic of a (erfect com(etiti&e mar'et A) !rice cost and ualit* information are euall* distributed. %) A nearl* infinite set of su((liers com(ete against one another. #) #ustomers ha&e access to all rele&ant information worldwide. ) 9t is highl* regulated. Answer:  iff:  !age Ref: 2 AA#$%: Anal*tic $'ills "

5) All of the following were &isions of e-commerce e(ressed during the earl* *ears of ecommerce except : A) a nearl* (erfect com(etiti&e mar'et. %) friction-free commerce. #) disintermediation. ) fast follower ad&antage. Answer:  iff:  !age Ref: 2- AA#$%: Anal*tic $'ills ") Unfair com(etiti&e ad&antages occur when: A) one com(etitor has an ad&antage others cannot (urchase. %) mar'et middlemen are dis(laced. #) information is euall* distributed and transaction costs are low. ) firms are able to gather mono(ol* (rofits. Answer: A iff: 2 !age Ref:  AA#$%: Reflecti&e Thin'ing 7) The earl* *ears of e-commerce were dri&en b* all of the following factors except : A) an em(hasis on e(loiting traditional distribution channels. %) a huge infusion of &enture ca(ital funds. #) an em(hasis on uic'l* achie&ing a &er* high mar'et &isibilit*. ) &isions of (rofiting from new technolog*. Answer: A iff:  !age Ref:  AA#$%: Anal*tic $'ills 40) The earl* *ears of e-commerce are considered: A) the most (romising time in histor* for the successful im(lementation of first mo&er ad&antages. %) an economist/s dream come true where for a brief time consumers had access to all rele&ant mar'et information and transaction costs (lummeted. #) a stunning technological success as the 9nternet and the 8eb increased from a few thousand to  billions of e-commerce transactions (er *ear. ) a dramatic business success as "4+ of dot-coms formed since 1774 became flourishing  businesses. Answer: # iff: 2 !age Ref:  AA#$%: Reflecti&e Thin'ing

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41) 8hich of the following best describes the earl* *ears of e-commerce A) The* were a technological success but a mied business success. %) The* were a technological success but a business failure. #) The* were a technological failure but a business success. ) The* were a mied technological and business success. Answer: A iff: 2 !age Ref:  AA#$%: Reflecti&e Thin'ing 42) A((roimatel* what (ercentage of dot-com com(anies formed since 1774 sur&i&ed as inde(endent com(anies in 2012 A) 10 %) 20 #) 0 ) 0 Answer: A iff: 2 !age Ref:  AA#$%: Reflecti&e Thin'ing 4) 8hich of the following is a characteristic of the rein&ention (h ase of e-commerce A) massi&e (roliferation of dot-com start-u(s %) wides(read ado(tion of broadband networ's #) ra(id growth of search engine ad&ertising ) wides(read ado(tion of consumer mobile de&ices Answer:  iff:  !age Ref: 1-4 AA#$%: Anal*tic $'ills 4) 8hich of the following is a characteristic of the consolidation (hase of e-commerce A) (redominance of (ure online strategies %) em(hasis on re&enue growth &ersus (rofits #) first mo&er ad&antages ) shift to a business-dri&en a((roach Answer:  iff:  !age Ref: 4 AA#$%: Reflecti&e Thin'ing 44) 8hich of the following is not  true regarding e-commerce toda* A) Economists/ &isions of a friction-free mar'et ha&e not been reali6ed. %) #onsumers are less (rice-sensiti&e than e(ected. #) There remains considerable (ersistent (rice dis(ersion. ) The mar'et middlemen disa((eared. Answer:  iff: 2 !age Ref: 3-7 AA#$%: Reflecti&e Thin'ing

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43) 8hich of the following statements is not  true A) 9nformation as*mmetries are continuall* being introduced b* merchants and mar'eters. %) 9ntermediaries ha&e not disa((eared. #) D&erall transaction costs ha&e dro((ed dramaticall*. ) %rands remain &er* im(ortant in e-commerce. Answer: # iff: 2 !age Ref: 3-0 AA#$%: Reflecti&e Thin'ing 45) 8hich of the following t*(es of merchants has the highest share of retail online sales A) &irtual @8eb onl*) %) catalogcall center  #) retail chain ) consumer brand manufacturer  Answer: A iff: 2 !age Ref: 7 AA#$%: Reflecti&e Thin'ing 4") Retail chains account for around <<<<<<<< (ercent of online retail firm re&enues. A) 14 %) 4 #) 54 ) 74 Answer: % iff: 2 !age Ref: 7 AA#$%: Reflecti&e Thin'ing 47) Dne of the (redictions for the future of e-commerce is that: A) o&erall re&enues from e-commerce will grow at an annuali6ed rate of about 10 (ercent a *ear through 2013. %) the first mo&ers from the earl* *ears of e-commerce will retain or increase their mar'et share as the* continue to e(loit economies of scale and switching costs. #) (rices will lower enough to encourage more consumers to engage in online sho((ing. ) the number of online sho((ers will continue to grow at double-digit rates. Answer: A iff: 2 !age Ref: 0 AA#$%: Reflecti&e Thin'ing 30) 8hich of the following is the to(-selling online retail categor* A) a((arelaccessories %) com(uterselectronics #) mass merchantde(artment stores ) office su((lies Answer: # iff: 2 !age Ref: 1 AA#$%: Reflecti&e Thin'ing

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31) 8hich of the following is the to( online retailer ran'ed b* online sales A) A((le %) Ama6on #) $ta(les ) 8almart Answer: % iff: 2 !age Ref: 2 AA#$%: Reflecti&e Thin'ing 32) Abo&e all e-commerce is a <<<<<<<< (henomenon. A) technolog*-dri&en12 #o(*right F 201 !earson Education 9nc.

%) finance-dri&en #) sociological ) go&ernment-dri&en Answer: A iff: 2 !age Ref:  AA#$%: Use of 9T 3) 8hich business a((lication is associated with the technological de&elo(ment of local area networ's and clientser&er com(uting A) transaction automation @e.g. (a*roll) %) des'to( automation @e.g. word (rocessing) #) industrial s*stem automation @e.g. su((l* chain management) ) wor'grou( automation @e.g. document sharing) Answer:  iff:  !age Ref: 4 AA#$%: Use of 9T 3) 8hich of the following is one of the three (rimar* societal issues related to e-commerce A) liabilit* %) anon*mit* #) euit* ) indi&idual (ri&ac* Answer:  iff: 2 !age Ref: 3 AA#$%: Reflecti&e Thin'ing 34) 8hich of the following statements is not  true A) ?o one academic (ers(ecti&e dominates research about e-commerce. %) 9nformation s*stems researchers ta'e a (urel* technical a((roach to e-commerce. #) There are two (rimar* a((roaches to e-commerce: beha&ioral and technical. ) anagement scientists are interested in e-commerce as an o((ortunit* to stud* how business firms can e(loit the 9nternet to achie&e more efficient business o(erations. Answer: % iff: 2 !age Ref: 40 12

AA#$%: Reflecti&e Thin'ing 33) The costs incurred b* merchants in ha&ing to change (roduct (rices @such as the costs of reentering (rices into com(uter s*stems) are referred to as <<<<<<<< co sts. Answer: menu iff:  !age Ref: 1 AA#$%: Reflecti&e Thin'ing 35) <<<<<<<< refers to an* dis(arit* in rele&ant mar'et information among (arties in a transaction. Answer: 9nformation as*mmetr* iff: 2 !age Ref: 1 AA#$%: Reflecti&e Thin'ing 3") A@n) <<<<<<<< etends the mar'et(lace be*ond traditional boundaries. Answer: mar'ets(ace iff: 1 !age Ref: 13 AA#$%: Reflecti&e Thin'ing 37) The total number of users or customers an e-commerce business can obtain is a measure of its <<<<<<<<. Answer: reach iff: 2 !age Ref: 13 AA#$%: Reflecti&e Thin'ing 50) <<<<<<<< refers to the com(leit* and content of a message. Answer: Richness iff: 2 !age Ref: 15 AA#$%: Reflecti&e Thin'ing 51) The targeting of mar'eting messages to s(ecific indi&iduals b* ad=usting the message to a  (erson/s name interests and (ast (urchases is called <<<<<<<<. Answer: (ersonali6ation iff: 2 !age Ref: 1" AA#$%: Reflecti&e Thin'ing 52) The most (o(ular ser&ice that runs on the 9nternet infrastructure is the <<<<<<<<. Answer: 8orld 8ide 8eb 8eb iff: 2 !age Ref: 2 AA#$%: Reflecti&e Thin'ing 5) 9nternet8eb technolog* is a&ailable =ust about e&er*where and an*time. This is 'nown as  <<<<<<<<. Answer: ubiuit* iff: 2 !age Ref: 13 AA#$%: Reflecti&e Thin'ing

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5) <<<<<<<< refers to the dis(lacement of mar'et middlemen. Answer: isintermediation iff: 2 !age Ref: 2 AA#$%: Reflecti&e Thin'ing 54) 9n <<<<<<<< commerce information is euall* distributed transaction costs are low (rices can be d*namicall* ad=usted to reflect actual demand intermediaries decline and unfair com(etiti&e ad&antages are eliminated. Answer: friction-free iff:  !age Ref:  AA#$%: Reflecti&e Thin'ing 53) A@n) <<<<<<<< occurs when e&er*one in a grou( recei&es &alue because all (artici(ants use the same tool or (roduct. Answer: networ' effect iff: 2 !age Ref:  AA#$%: Reflecti&e Thin'ing 55) A firm that is first to mar'et in a (articular area and that mo&es uic'l* to gather mar'et share is referred to as a@n) <<<<<<<<. Answer: first mo&er  iff: 2 !age Ref:  AA#$%: Reflecti&e Thin'ing 5") The first e&olutionar* (hase of e-commerce from 1774 to 2000 characteri6ed as technolog*dri&en and ungo&erned was a (eriod of <<<<<<<<. Answer: inno&ation in&ention iff:  !age Ref: 1 AA#$%: Reflecti&e Thin'ing 57) An economist is most li'el* to be interested in a@n) <<<<<<<< rather than technical a((roach to stud*ing e-commerce. Answer: beha&ioral iff: 2 !age Ref: 40 AA#$%: Reflecti&e Thin'ing "0) Tangible wor's of the mind such as music boo's and &ideos are called <<<<<<<<. Answer: intellectual (ro(ert* iff: 2 !age Ref: 3 AA#$%: Reflecti&e Thin'ing

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"1) efine the terms e-business  and e-commerce  and e(lain the difference. 8hat is the 'e* factor in determining if a transaction is >commerce> Answer: E-business refers (rimaril* to digitall* enabled transactions within a firm in&ol&ing information s*stems under the control of the firm. E-business does not include commercial transactions in which an echange of &alue across organi6ational boundaries ta'es (lace. Ecommerce on the other hand is a re&enue-generating o(eration. The 'e* factor in determining if  a transaction is commerce therefore is >echange of &alue.> 9n order to be e-commerce a transaction must include the direct (roduction of re&enue. iff: 1 !age Ref: 1 AA#$%: Anal*tic $'ills "2) 9dentif* the eight uniue features of e-commerce technolog* and e(lain how these features set e-commerce a(art from more traditional wa*s of conducting commercial transactions. Answer: The eight uniue features of e-commerce technolog* are ubiuit* global reach uni&ersal standards richness interacti&it* information densit* (ersonali6ationcustomi6ation and social technolog*. The fact that e-commerce is a&ailable nearl* e&er*where at an* time @ubiuit*) etends the mar'et(lace be*ond traditional boundaries and remo&es it from a tem(oral and geogra(hic location. A mar'ets(ace is created in which sho((ing can ta'e (lace an*where enhancing consumer con&enience and reducing sho((ing costs whereas in traditional commerce the mar'et(lace is a (h*sical (lace *ou must &isit in order to transact. The global reach of ecommerce means that commerce is enabled across national and cultural boundaries as ne&er  before with (otentiall* billions of consumers and millions of businesses worldwide included in the mar'ets(ace. Traditional commerce b* contrast is local or regional in&ol&ing local merchants or national merchants with local outlets. Uni&ersal standards @one set of technical media standards) also allow for the seamless enablement of global commerce. 9n contrast most traditional commerce technologies differ from one nation to the net. 9n traditional mar'ets national sales forces and small retail stores can (ro&ide a com(le and content-rich message. Cowe&er there is generall* a trade-off between the richness of the message and the number of consumers who can be reached with the mar'eting message. 9n e-commerce the trade-off is no longer necessar*. An information rich en&ironment is etended globall*. Unli'e an* other commercial technolog* of the twentieth centur* ece(t (erha(s the tele(hone e-commerce technologies are interacti&e allowing for two-wa* communication between the seller and the consumer. E-commerce technologies reduce information collection storage (rocessing and communication costs thereb* greatl* increasing the (re&alence accurac* and timeliness of information. This information densit* @information that is more (lentiful chea(er and of higher ualit*) sets e-commerce a(art from all other traditional methods of conducting transactions. Ecommerce technologies also (ermit the (ersonali6ation and customi6ation of mar'eting messages on a le&el that was im(ossible with (re&ious commerce technologies. ar'eting messages can be targeted to s(ecific indi&iduals based on their interests and (ast (urchasing beha&ior and the  (roduct or ser&ice can be altered to suit a customer/s (references and (rior beha&ior. $ocial technolog* allows users to easil* generate and share content and (ermits a man*-to-man* model of mass communications that is different from (re&ious technologies. This su((orts the creation of new business models and (roducts that su((ort social networ' ser&ices. iff: 2 !age Ref: 1-17 AA#$%: Anal*tic $'ills

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") Cas e-commerce changed the mar'eting of goods 9f so how Answer: E-commerce has greatl* changed the mar'eting of goods. %efore e-commerce was de&elo(ed the mar'eting and sale of goods was a mass-mar'eting and sales force-dri&en  (rocess. ar'eters &iewed consumers as (assi&e targets of ad&ertising cam(aigns. E-commerce has brought man* new (ossibilities for mar'eting. The 9nternet and 8eb can deli&er to an audience of millions rich mar'eting messages with tet &ideo an d audio in a wa* not (ossible with traditional commerce technologies such as radio tele&ision or maga6ines. erchants can target their mar'eting messages to s(ecific indi&iduals b* ad=usting the message to a (erson/s name interests and (ast (urchases. 9n addition much information about the consumer can be gathered from the 8eb site the consumer &isits. 8ith the increase in information densit* a great deal of information about the consumer/s (ast (urchases and beha&ior can be stored and used b* online merchants. The result is a le&el of (ersonali6ation and customi6ation unthin'able with eisting commerce technologies. iff: 2 !age Ref: 1-17 AA#$%: Anal*tic $'ills ") 9dentif* a 8eb 2.0 a((lication or site describing the ualities that ma'e it a 8eb 2.0 a((lication or site. oes the site *ou selected ha&e an* business &alue 8hat is it Answer: $tudent answers will &ar*. An eam(le is: GouTube can be considered an eam(le of a 8eb 2.0 site because its content is generated b* users rather than created b* the site owners. Dther ualities that ma'e this a 8eb 2.0 site include the interacti&it* among users that is allowed such as comments and &ideo re(lies sharing (la* lists e-mailing lin's to &ideos and more. GouTube has tremendous business &alue because it has so man* &isitorsHit is one of the most (o(ular destination sites on the 9nternet with o&er 14" million uniue &isitors in A(ril 2012. iff: 2 !age Ref: 17 AA#$%: Anal*tic $'ills "4) ist and briefl* e(lain the main t*(es of e-commerce. Answer: The main t*(es of e-commerce are %usiness-to-#onsumer @%2#) in which online  businesses attem(t to reach indi&idual consumersI %usiness-to-%usiness @%2%) in which  businesses focus on selling to other businessesI #onsumer to #onsumer @#2#) which (ro&ides a mar'et in which consumers can sell goods to each otherI mobile e-commerce @m-commerce) which refers to the use of wireless digital de&ices to enable 8eb transactions social e-commerce which is commerce enabled b* social networ's and online social relationshi(sI and local ecommerce which is e-commerce that is focused on engaging the customer based on his or her geogra(hical location. iff: 2 !age Ref: 21-2 AA#$%: Anal*tic $'ills

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"3) escribe the &isions and forces during the earl* da*s of e-commerce in terms of what the &arious interest grou(s ho(ed for: the com(uter science and information technolog* (eo(leI the economistsI and the entre(reneurs &enture ca(italists and mar'eters. E(lain whether what each grou( en&isioned came to fruition and wh* or wh* not. Answer: The com(uter scientists and information technologists/ &ision was of a uni&ersal communications and com(uting en&ironment that e&er*one could access with ine(ensi&e com(uters. Their interest was in creating a &ast worldwide information collection from libraries uni&ersities go&ernments and scientific institutions that was ungo&erned b* an* nation and free to all. The* belie&ed that the 9nternet and b* etension the e-commerce that o(erated within the infrastructure should be self-go&erned and self-regulated. The economists en&isioned a near-(erfect com(etiti&e mar'et where (rice cost and ualit* information are euall* distributed. The mar'ets(ace would include a nearl* infinite number of su((liers with eual access to hundreds of millions of customers but where those consumers in turn would ha&e access to all rele&ant mar'et informationHa h*(ercom(etiti&e mar'et. ar'et middlemen would disa((ear resulting in lowered costs to consumers. This intensel* com(etiti&e disintermediated en&ironment with lowered transaction costs would eliminate (roduct brands as well as the (ossibilit* of mono(ol* (rofits based on brands geogra(h* or s(ecial access factors. Unfair com(etiti&e ad&antages and the abilit* to rea( returns on ca(ital that far etended a fair mar'et rate of return would be eliminated. Their &ision was called friction-free commerce. The entre(reneurs &enture ca(italists and mar'eters in turn saw e-commerce as an o((ortunit* to earn great returns on in&ested ca(ital. The* saw the e-commerce mar'ets(ace and technologies as a (owerful method of increasing their abilit* to e&en more (recisel* segment the mar'et into grou(s with different (rice sensiti&ities. The* belie&ed that huge (rofits could be garnered b* firms that uic'l* achie&ed high mar'et &isibilit* and that these successful first mo&ers would become the new intermediaries of e-commerce dis(lacing the traditional retail merchants and content su((liers. The com(uter scientists/ &ision of an ungo&erned 9nternet has not come to fruition as go&ernments ha&e increasingl* sought to regulate and control the technolog* to ensure that  (ositi&e social benefits result. The economists/ &ision has also for the most (art not materiali6ed for a &ariet* of reasons. #onsumers ha&e (ro&en to be less (rice sensiti&e than e(ected and the im(ortance of brand names to consumers/ (erce(tions of ualit* and ser&ice has been etended rather than decreased or eliminated. Entre(reneurs ha&e disco&ered new methods for differentiating (roducts and ser&ices. ?ew information as*mmetries are continuall* being introduced b* mar'eters. isintermediation has also not occurred as ne w middlemen emerged. The &isions of the entre(reneurs &enture ca(italists and mar'eters ha&e also largel* not come to fruition as the first mo&ers from the earl* *ears of e-commerce onl* rarel* succeeded . The fast follower large traditional firms with the resources needed to de&elo( mature mar'ets are dis(lacing most of the &enture ca(italist bac'ed entre(reneurs. iff: 2 !age Ref: 2-0 AA#$%: Anal*tic $'ills

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