Topics: Marketing, Strategic management, Business Pages: 2 (361 words) Published: March 24, 2014
Review Questions
RQ1.  Describe three factors that would cause a company to continue doing business in traditional ways and avoid electronic commerce. Traditional commerce can be a better way to sell items that relay on personal selling skills. Many businesses are using a combination of personal contact enhanced by an online presence to sell items such as high-fashion clothing, antiques, or food

Small purchases over the net would actually increase the cost of doing business due to the fact that the company would have to charge more to re-coup the expense of transferring money. Consumers would rather avoid the time and excess costs. The nature of a product is basically its brandname reputation in the market. The problem this aspect causes for internet business is the fact that consumers can't physically check the quality of the product online, whereas in traditional business the product is right in front of you and it can be held and checked berfore purchasing. Shipping profile is difficult for internet business because when you're shipping something heavy/large, you have to pay extra money. So, for businesses that only sell large products, they will be paying extra costs all the time.

RQ2.  Figure 1-5 lists roommate-matching services as a type of business that is well suited to a combination of electronic and traditional commerce. In one paragraph, describe the elements of this service that would be best handled using traditional commerce and explain why. RQ3.  Choose one major difference between the first wave and the second wave of electronic commerce. Write a paragraph that describes this difference to a person who is not familiar with either business or Internet technologies. RQ4.  What are transaction costs and why are they important? Are the total of all cost that a buyer and seller incur as they gather information and negotiate a purchase and sale-transaction.

RQ5.  Provide one example of how electronic commerce could help change an...
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