Chapter 10: E-Commerce: Digital Markets, Digital Goods Flashcards Preview

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Flashcards in Chapter 10: E-Commerce: Digital Markets, Digital Goods Deck (59)
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1
Q

Advertising Revenue Model

A

Web site generating revenue by attracting a large audience.

2
Q

Affiliate Revenue Model

A

An e-commerce revenue model in which Web sites are paid as “affiliates” for sending their visitors to other sites in return for a referral fee.

3
Q

Behavioral Targeting

A

Tracking the click-streams (history of clicking behavior) of individuals across multiple Web sites for the purpose of understanding their interests and intentions, and exposing them to advertisements which are uniquely suited to their interests.

4
Q

Business-To-Business (B2B)

A

Electronic sales of goods and services among businesses.

5
Q

Business-To-Consumer (B2C)

A

Electronic retailing of products and services directly to individual consumers.

6
Q

Co-Location

A

A kind of Web site hosting in which firm purchase or rent a physical server computer at a hosting company’s location in order to operate a Web site.

7
Q

Community Providers

A

A Web site business model that creates a digital online environment where people with similar interests can transact (buy and sell goods); share interests, photos, videos; communicate with like-minded people; receive interest-related information; and even play out fantasies by adopting online personalities called avatars.

8
Q

Consumer-To-Consumer (C2C)

A

Electronic commerce; consumers selling goods and services electronically to other consumers.

9
Q

Cost Transparency

A

The ability of consumers to discover the actual costs merchants pay products.

10
Q

Crowdsourcing

A

Using large Internet audiences for advice, market feedback, new ideas and solutions to business problems. Related to the ‘wisdom of crowds’ theory.

11
Q

Customization

A

The modification of a software package to meet an organization’s unique requirements without destroying the package software’s integrity.

12
Q

Digital Goods

A

Goods that can be delivered over a digital network.

13
Q

Direct Goods

A

Goods used in a production process, such as sheet steel for auto body production.

14
Q

Disintermedation

A

The removal of organizations or business process layers responsible for certain intermediary steps in a value chain.

15
Q

Dynamic Pricing

A

Pricing of items based on real-time interactions between buyers and sellers that determine what an item is worth at any particular moment.

16
Q

Electronic Data Interchange (EDI)

A

The direct computer-to-computer exchange between two organizations of standard business transactions, such as orders, shipment instructions, or payments.

17
Q

E-Tailer

A

Online retail stores from the giant Amazon to tiny local stores that have Web sites where retail goods are sold.

18
Q

Exchanges

A

Third-party Net marketplace that is primarily transaction oriented and that connects many buyers and suppliers for spot purchasing.

19
Q

Free/Freemium Revenue Model

A

Am e-commerce revenue model in which a firm offers basic services or content for free, while charging a premium for advanced or high value features.

20
Q

Geoadvertising

A

Delivering ads to users based on their GPS location.

21
Q

Geoinformation Services

A

Information on local places and things based on the GPS position of the user.

22
Q

Geosocial Services

A

Social networking based on the GPS location of users.

23
Q

Indirect Goods

A

All other goods not directly involved in the production process, such as office suppliers or products for maintenance and repair.

24
Q

Information Asymmetry

A

Situation where the relative bargaining power of two parties in a transaction is determined by one party in the transaction possessing more information essential to the transaction than the other party.

25
Q

Informational Density

A

The total amount and quality of information available to all market participants, consumers, and merchants.

26
Q

Intellectual Property

A

Intangible property created by individuals or corporations that is subject to protections under trade secret, copyright, and patent law.

27
Q

Location-Based Services

A

GPS map services available on smartphones.

28
Q

Long Tail Marketing

A

Refers to the ability of firms to profitably market goods to very small online audiences, largely because of the lower costs of reaching very small market segments (people who fall into the long tail ends of a Bell curve).

29
Q

Market Creator

A

An e-commerce business model in which firms provide a digital online environment where buyers and sellers can meet, search for products, and engage in transactions.

30
Q

Market Entry Costs

A

The cost merchants must pay to bring their goods to market.

31
Q

Marketspace

A

A marketplace extended beyond traditional boundaries and removed from from a temporal and geographic location.

32
Q

Menu Costs

A

Merchants’ costs of changing prices.

33
Q

Micropayment Systems

A

Payment for a very small sum of money, often less than $10.

34
Q

Mobile Commerce (M-Commerce)

A

The use of wireless devices, such as cell phones or handheld digital information appliances, to conduct both business-to-consumer and business-to-business e-commerce transactions over the Internet.

35
Q

Net Marketplaces

A

A single digital marketplace based on Internet technology linking many buyers to many sellers.

36
Q

Personalization

A

Ability of merchants to target marketing messages to specific individuals by adjusting the message for a person’s name, interests, and past purchases.

37
Q

Podcasting

A

Publishing audio broadcasts via the Internet so that subscribing users can download audio files onto their personal computers or portable music players.

38
Q

Prediction Market

A

An analysis of the portfolio of potential applications within a firm to determine the risks and benefits, and to select among alternatives for information systems.

39
Q

Price Discrimination

A

Selling the same goods, or nearly the same goods, to different targeted groups at different prices.

40
Q

Price Transparency

A

The ease with which consumers can find out the variety of prices in a market.

41
Q

Private Exchange

A

Another term for a private industrial network.

42
Q

Private Industrial Networks

A

Web-enabled networks linking systems of multiple firms in an industry for the coordination of trans-organizational business processes.

43
Q

Revenue Model

A

A description of how a firm will earn revenue, generate profits, and produce a return on investment.

44
Q

Richness

A

Measurement of the depth and detail of information that a business can supply to the customer as well as information the business collects about the customer.

45
Q

Sales Revenue Model

A

Selling goods, information, or services to customers as the main source of revenue for a company.

46
Q

Search Costs

A

The time and money spent locating a suitable product and determining the best price for that product.

47
Q

Social Graph

A

Map of all significant online social relationships, comparable to a social networking describing offline relationships.

48
Q

Social Shopping

A

Use of Web sites featuring user-created Web pages to share knowledge about items of interest to other shoppers.

49
Q

Streaming

A

A publishing method for music and video files that flows a continuous stream of content to a user’s device without being stored locally on the device.

50
Q

Subscription Revenue Model

A

Web site charging a subscription fee for access to some or all of its content or services on an ongoing basis.

51
Q

Transaction Costs

A

Costs incurred when a firm buys on the marketplace what it cannot make itself.

52
Q

Transaction Fee Revenue Model

A

An online e-commerce revenue model where the firm receives a fee for enabling or executing transaction.

53
Q

Wisdom of Crowds

A

The belief that large numbers of people can make better decisions about a wide range of topics or products than a single person or even a small committee of experts (first proposed in a book by James Surowiecki).

54
Q

What are the unique features of e-commerce, digital markets, and digital goods?

A

E-commerce involves digitally enabled commercial transactions between and among organizations and individuals. Unique features of e-commerce technology include ubiquity, global reach, universal technology standards, richness, interactivity, information density, capabilities for personalization and customization, and social technology.
Digital markets are said to be more “transparent” than traditional markets, with reduced information asymmetry, search costs, transaction costs, and menu costs, along with the ability to change prices dynamically based on market conditions. Digital goods, such as music, video, software, and books, can be delivered over a digital network. Once a digital product has been produced, the cost of delivering that product digitally is extremely low.

55
Q

What are the principal e-commerce business and revenue models?

A

E-commerce business models are e-tailers, transaction brokers, market creators, content providers, community providers, service providers, and portals. The principal e-commerce revenue models are advertising, sales, subscription, free/freemium, transaction fee, and affiliate.

56
Q

How has e-commerce transformed marketing?

A

The Internet provides marketers with new ways of identifying and communicating with millions of potential customers at costs far lower than traditional media. Crowdsourcing utilizing the “wisdom of crowds” helps companies learn from customers in order to improve product offerings and increase customer value. Behavioral targeting techniques increase the effectiveness of banner, rich media, and video ads. Social commerce uses social networks and social network sites to improve targeting of products and services.

57
Q

How has e-commerce affected business-to-business transactions?

A

B2B e-commerce generates efficiencies by enabling companies to locate suppliers, solicit bids, place orders, and track shipments in transit electronically. Net marketplaces provide a single, digital marketplace for many buyers and sellers. Private industrial networks link a firm with its suppliers and other strategic business partners to develop highly efficient and responsive supply chains.

58
Q

What is the role of m-commerce in business, and what are the most important m-commerce applications?

A

M-commerce is especially well-suited for location-based applications, such as finding local hotels and restaurants, monitoring local traffic and weather, and providing personalized location-based marketing. Mobile phones and handhelds are being used for mobile bill payment, banking, securities trading, transportation schedule updates, and downloads of digital content, such as music, games, and video clips. M-commerce requires wireless portals and special digital payment systems that can handle micropayments. The GPS capabilities of smartphones make possible geoadvertising, geosocial, and geoinformation services.

59
Q

What issues must be addressed when building an e-commerce presence?

A

Building a successful e-commerce site requires a clear understanding of the business objectives to be achieved by the site and selection of the right technology to achieve those objectives. E-commerce sites can be built and hosted in-house or partially or fully outsourced to external service providers.