Chp 1 Review _ practice quiz

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					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
                                                                    Web site.
      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
                       commerce.

      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
                                                         situations.
 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
                                                         outlets.
 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
                                                         business.



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
     business.
     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 _____.
    Answer: merchandising

5. _____ are the total of all costs that a buyer and seller incur as they gather information and negotiate a
     purchase-sale transaction.
     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
     information intensive.
     Answer: True
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

				
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