Electronic Commerce Vocabulary

Flashcards covering key vocabulary and concepts from Chapter 1: Introduction to Electronic Commerce, including e-commerce definitions, categories, history, economic forces, and international considerations

Electronic Commerce

Shopping on the Web, businesses trading with other businesses, and internal company processes using Internet technologies.

Electronic Business (e-business)

A broader term than electronic commerce, including all business activities using Internet technologies.

Dot-com (pure dot-com)

Businesses operating only online.

Business-to-consumer (B2C)

Consumer shopping on the Web.

Business-to-business (B2B)

Transactions conducted between Web businesses; e-procurement.

Business Processes

Use of Internet technologies within a business.

Business Activity

A task performed by a worker doing his or her job; may or may not be related to a transaction.

Transaction

An exchange of value such as purchase.

Business processes

Groups of logical, related, sequential activities and transactions.

Consumer-to-consumer (C2C)

Individuals buying and selling among themselves (e.g., via Web auction sites).

Business-to-government (B2G)

Business transactions with government agencies (e.g., paying taxes, filing reports).

Electronic Funds Transfers (EFTs)

Electronic transfer of funds and account information over a private network.

Electronic Data Interchange (EDI)

Standardized computer data transmission between businesses.

Trading Partners

Businesses engaging in EDI with each other.

Value-added network (VAN)

Independent firm for EDI connections and transaction forwarding.

Revenue Model

Business processes for customer identification, marketing, and sales; classifies revenue activities.

Commodity Items

Standardized, well-known products only differentiated by price.

Virtual Community

Gathering of people sharing a common interest.

Economics

Study of how people allocate scarce resources.

Markets

Potential sellers come into contact with buyers; medium of exchange available.

Transaction Costs

Costs incurred by buyer and seller during information gathering and transaction negotiation.

Strategic Business Unit

Part of a company large enough to manage itself but small enough to respond quickly to changes.

Strategic Alliances (Strategic Partnerships)

Coordinate strategies, resources, skill sets by forming long-term relationships based on shared purposes.

Network Effect

As more people or organizations participate in a network, the value to each participant increases.

Firm

Multiple business units owned by a common set of shareholders.

Industry

Multiple firms selling similar products to similar customers.

Value Chain

Organizing strategic business unit activities to design, produce, promote, market, deliver, and support products or services.

SWOT Analysis

Evaluating Strengths, Weaknesses, Opportunities, and Threats to identify business unit opportunities.

Localization

Translation that considers multiple elements of the local environment, including language dialects and cultural nuances.

Freight Forwarder

Arranges international transactions’ shipping and insurance.

Customs Broker

Arranges tariff payment and compliance with international shipping laws.

Bonded Warehouse

Secure location that holds international shipments until customs requirements or payments are satisfied.