Define E-Commerce

Topics: Electronic commerce, Marketing, Online shopping Pages: 12 (1785 words) Published: August 21, 2010

1. Define the terms e-business

Aims to use and influence the unique qualities of Internet and Web

2. Define the terms e-commerce

E-commerce involves digitally enabled commercial transactions between and among organizations and individuals

3. What is the key factor in determining if a transaction is “commerce”?

Commercial transactions involve the exchange of value across organizational or individual boundaries in return for products or services

4. List and briefly explain the five main types of e-commerce.

Classified by nature of market relationship

• Business-to-Consumer (B2C)

• Business-to-Business (B2B)

• Consumer-to-Consumer (C2C)

Classified by type of technology used

• Peer-to-Peer (P2P)

• Mobile commerce (M-commerce)

5. What is the metric upon which the types of e-commerce are distinguished?

1. Market relationship

2. Technology

3- Why and how is a functional Web site one of the strongest online marketing communications tools?

1. Factors affecting effectiveness of a software interface:

• Utility

• Ease of use

2. Factors in credibility of Web sites:

• Design look

• Information design/structure

• Information focus

• Responsiveness

What are the other integral parts of a coordinated marketing communications strategy that will help to ensure e-commerce success?

• Web transaction logs

• Cookies and Web bugs

• Databases, data warehouses, and data mining

• Advertising networks

• Customer relationship management (CRM) systems

1. Define privacy

The moral right of individuals to be left alone, free from surveillance or interference from other individuals or organizations

2. Information privacy

Includes both the claim that certain information should not be collected at all, as well as the claim of individuals to control the use of whatever information is collected about them.

3. Informed consent

Consent given with knowledge of all the material facts needed to make a rational decision

• Two models:



Many U.S. e-commerce firms merely publish information practices as part of privacy policy without providing for any form of informed consent

4. Discuss the ways in which the practices of e-commerce companies, particularly the advertising networks, threaten people’s privacy

• Personally identifiable information (PII): Data that can be used to identify, locate, or contact an individual

• Anonymous information: Demographic and behavioral information that does not include any personal identifiers

• Almost all e-commerce companies collect PII and use cookies to track clickstream behavior

3. Explain how an online credit card transaction works, including the five parties involved and how SSL is involved. What are the limitations of online credit card payment systems?


• Security: the consumer cannot be fully authenticated (risk for merchant)

• Cost: for merchants, around 3.5% of purchase price plus transaction fee of 20 – 30 cents per transaction

• Social equity: many people do not have access to credit cards (young adults, plus almost 100 million other adult Americans who cannot afford cards or are considered poor risk)

4. What are the challenges faced by, and advantages enjoyed by, the different types of online retailers, including the virtual merchants, the clicks and mortar firms, the catalogue merchants, online malls, and manufacturer direct firms?

5. Describe the major types of Internet portals and explain the portal business model. What survival strategies are portals likely to pursue in E-commerce II?

A vertical portal (sometimes called a vortal) is a Web site that provides a gateway or portal...
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