Chap 7- E-Commerce & E-Business

What is E-commerce?

E-commerce refers to the buying, selling, transferring, and exchanging of products, services, or information online.

What is a key benefit of E-commerce?

E-commerce expands reach, reduces costs, and allows small companies to compete, indicating low barriers to entry.

What do the 2022 U.S. retail sales numbers indicate about E-commerce?

In 2022, U.S. retail sales were approximately $7.24 trillion, with E-commerce accounting for about $1.3 trillion (18 percent), showing traditional retail still dominates.

Who is the founder of Amazon?

Jeff Bezos founded Amazon in 1995.

What did Amazon originally start as?

Amazon originally started as an online bookstore.

What is Michael Aldrich known for?

Michael Aldrich is recognized as an early inventor of e-commerce through his development of VideoTex.

What does E-business encompass beyond E-commerce?

E-business includes customer service, partner collaboration, and internal operations, making it broader than just buying and selling.

What is the concept of Brick-and-Mortar?

Brick-and-Mortar refers to physical product delivery through traditional retail stores without an online presence.

What does Clicks-and-Mortar refer to?

Clicks-and-Mortar refers to businesses that operate both online and through physical retail, like Kohl’s, Target, and Walmart.

What is B2C in E-commerce?

B2C (Business to Consumer) involves organizations selling products or services directly to individual consumers.

What sector has the largest E-commerce volume?

B2B (Business to Business) is the sector with the largest E-commerce volume.

What are some examples of C2C E-commerce platforms?

Examples include eBay and Facebook Marketplace, where consumers buy and sell directly to each other.

What are some electronic payment mechanisms?

Electronic payment mechanisms include credit cards, purchasing cards, stored-value cards, smart cards, and digital wallets.

What is FinTech?

FinTech refers to using technology to disrupt and innovate financial services.

What are the main issues in E-commerce?

There are three main categories of issues in E-commerce: channel conflict, order fulfillment, and personalized pricing.

What is channel conflict in E-commerce?

Channel conflict occurs when companies experience tension with their distributors while selling through multiple channels.

What is showrooming?

Showrooming is when customers examine products in a store but purchase them online at a lower price.

What is webrooming?

Webrooming is when customers research products online but decide to purchase them in a physical store.

What are some challenges associated with order fulfillment in E-commerce?

Challenges include managing stock, packing, shipping, and handling returns.

What is personalized pricing?

Personalized pricing refers to pricing that is tailored to individual customers based on their behavior and data.

How do companies utilize Big Data in personalized pricing?

Companies use cookies, history, and clicks to estimate what prices customers might be willing to pay.

What can IP address data predict about consumers?

IP address data can predict consumer interests, timing of purchases, and price sensitivity.

Example of personalized pricing in the airline industry?

Frequent flyers may pay more than occasional travelers due to personalized pricing strategies.

What is dynamic pricing?

Dynamic pricing refers to prices that may change frequently, even minute by minute, based on market demand.

What is a reservation price?

A reservation price is the maximum amount a customer is willing to pay for a product or service.

How do customers generally react to personalized pricing?

Consumers often prefer standardized pricing and may react negatively upon learning about personalized pricing practices.

What are some ethical and legal issues in E-commerce?

Ethical and legal issues include privacy, fraud, tracking, delivery issues, C2C scams, and the impact of social media.

What are digital wallets?

Digital wallets are electronic systems that allow individuals to make payments and manage funds online or through mobile devices.

How has Apple Pay impacted E-commerce?

Apple Pay and similar mobile payment systems have modernized payment adoption in E-commerce.

What is the primary purpose of E-business?

E-business aims to enhance overall business operations through digital means, beyond just E-commerce activities.

What does the term 'value chain' refer to in E-business?

The value chain in E-business refers to the relationships and interactions between customers, vendors, and suppliers.

Why is it important to distinguish between E-commerce and E-business?

It's important to distinguish between them because E-business encompasses broader operational processes beyond transactions.

What is the significance of the year 1990 concerning E-commerce?

In 1990, the Boston Computer Exchange marked a key early development in E-commerce.

Why are E-commerce milestones important?

E-commerce milestones demonstrate the evolution and technological advancements in business models.

What is the impact of low barriers to entry in E-commerce?

Low barriers to entry allow small companies to compete effectively in the online marketplace.

What kind of companies dominate the E-commerce market?

Top E-commerce companies that dominate the market include major global players like Amazon.

What purpose does showing charts and visuals serve in E-commerce presentations?

Charts and visuals reinforce brand recognition and help convey complex data clearly.

What defines a 'Partial EC' model?

Partial EC refers to businesses that utilize both online and brick-and-mortar strategies for product sales.

What role does customer service play in E-business?

Customer service in E-business is crucial for maintaining relationships and ensuring satisfaction across digital platforms.

How does partner collaboration contribute to E-business?

Partner collaboration enhances operational efficiency and can improve service delivery within E-business.

What are the competitive consequences of multichanneling?

Multichanneling aims to integrate online and offline sales to reduce conflict between sales channels.

What ethical concerns arise from personalized pricing strategies?

Personalized pricing raises ethical concerns regarding fairness and transparency in pricing practices.