Chp 1 Review & practice quiz
Complete the categories of Electronic Commerce below:
Category Description Example
Business-to- Businesses sell products or services to Walmart.com sells merchandise to
consumer (B2C) individual consumers. consumers through its Web site.
Business-to- Businesses sell products or services to Grainger.com sells industrial supplies to
business (B2B) other businesses. large and small businesses through its
Business Businesses and other organizations Dell Computer uses secure Internet
processes that maintain and use information to identify connections to share current sales and
support buying and evaluate customers, suppliers, and sales forecast information with suppliers.
and selling employees. Increasingly, businesses share The suppliers can use this information to
activities this information in carefully managed plan their own production and deliver
ways with their customers, suppliers, component parts to Dell in the right
employees, and business partners. quantities at the right time.
Consumer-to- Participants in an online marketplace can Consumers and businesses trade with
consumer (C2C) buy and sell goods to each other. Because each other in the eBay.com online
one party is selling, and thus acting as a marketplace.
business, this book treats C2C
transactions as part of B2C electronic
Business-to- Businesses sell goods or services to CAL-Buy portal for businesses that want
government governments and government agencies. to sell online to the State of California.
(B2G) This book treats B2G transactions as part
of B2C electronic commerce.
Give characteristics of the First and Second Waves of E-Commerce:
First Wave Second Wave
Internet technologies were slow and inexpensive. The increase in broadband connections in homes is
Most consumers connected to the Internet using a key element. Although these connections are more
dial-up modems. expensive, they are up to 20 times faster and can
alter the way people use the Web.
Internet technologies were integrated into B2B Radio-frequency ID devices and smart cards are
transactions and internal business processes by being combined with biometric technologies such as
using bar codes and scanners to track parts, fingerprint readers and retina scanners to control
assemblies, inventories, and production status. more items and people in a wider variety of
The use of electronic mail (or e-mail) was as a tool Sellers are using e-mail as an integral part of their
for relatively unstructured communication. marketing and customer contact strategies.
Online advertising was the main revenue source of Some categories of online advertising, such as
many failed dot-com businesses. employment services (job wanted ads) are growing
rapidly and are replacing traditional advertising
Sale of digital products was fraught with Promise of legal distribution of music, video, and
difficulties. other digital products on the Web.
Dominated by large businesses, both existing and Will include a larger proportion of smaller
new businesses that had obtained large amounts of businesses. Enabling those businesses to use
capital early on. electronic commerce will also be a substantial
Quick Quiz Chp 1
1. The group of logical, related, and sequential activities and transactions in which businesses engage are
often collectively referred to as _____.
Answer: business processes
2. _____ occurs when one business transmits computer-readable data in a standard format to another
Answer: Electronic data interchange (EDI)
3. Businesses that engage in EDI with each other are called _____.
Answer: trading partners
4. The combination of store design, layout, and product display knowledge is called _____.
5. _____ are the total of all costs that a buyer and seller incur as they gather information and negotiate a
Answer: Transaction costs
6. Economists have found that most activities yield less value as the amount of consumption increases. This
characteristic of economic activity is called the _____.
Answer: law of diminishing returns
7. True or false: Network organizations are particularly well suited to technology industries that are
8. The practice of an existing firm replacing one or more of its supplier markets with its own hierarchical
structure for creating the supplied product is called _____.
Answer: vertical integration