Answers to Pause/Break Section Review Questions
Section 2.1 Review Questions
What is the difference between a physical marketplace and an e-marketplace (marketspace)?
A marketspace is an electronic marketplace. While traditional marketplaces are constrained by their physical locations, marketspaces use technology to eliminate this constraint (by being online).
List the components of a marketspace.
A marketspace consists of the following components: customers, sellers, goods, infrastructure, a front end, a back end, intermediaries/business partners and support services.
Define a digital product and provide five examples.
Digital products are goods that can be transformed to digital formats and delivered over the Internet. Examples of digital products would include e-books, software, graphics, video clips and electronic documentation.
Section 2.2 Review Questions
Describe electronic storefronts and e-malls.
An electronic storefront is a single company's Web site where products and services are sold. An electronic mall is an online shopping center where many stores are located.
List the various types of stores and e-malls.
There are several different types of stores and malls including: general stores/malls, specialized stores/malls, regional or global stores and pure online stores or click-and-mortar stores.
Differentiate between private and public e-marketplaces.
Private marketspaces are generally owned by a single firm, whereas public marketspaces are generally owned and managed by independent third parties. Public marketspaces are also known as exchanges.
What are information portals? List the major types.
Information portals are single, personalized online points of access to business information inside an organization. They include: commercial, corporate, publishing, personal, mobile, and voice portals.
Describe agent-based e-marketplaces.
Agents are software applications that can help research and suggest purchases based on user characteristics.
Section 2.3 Review Questions
Describe the transaction process between a seller and its customers and suppliers.
The process begins with preshopping activities and concludes with post shopping activities. In between the user enters an e-shop, navigates and searches, investigates products and makes purchases.
List the roles of intermediaries in e-markets.
Intermediaries can perform the following functions: reduce search costs, increase or create privacy, provide more complete information, reduce contract risk, and reduce pricing inefficiencies.
An online e-distributor is an intermediary that connects suppliers with buyers by aggregating multiple suppliers' product catalogs in a single location.
What are disintermediation and reintermediation?
Disintermediation is the elimination of intermediaries between sellers and buyers. Reintermediation is the establishment of new intermediary roles for traditional intermediaries that were disintermediated.
Describe the purchasing process.
The purchasing process can be based on fixed, dynamic or auction pricing and involves the interaction between the site, the shoppers search and information gathering and the final checkout.
Section 2.4 Review Questions
List the dimensions by which electronic catalogs can be classified.
Electronic catalogs can be classified by the dynamics of the information presented, the degree of customization and their integration with business processes.
List the benefits of electronic catalogs.
Online catalogs have several advantages as seen in Exhibit 2.7. Some of these advantages include: the ease of updating product information, improved search and comparison capabilities, ease of customization, and several other benefits.
Explain how customized catalogs are created and used.
Customized catalogs take information from existing...
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