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Melissa Hinton

CINS 3050

Ch. 4 Review Questions

1. What is EC, and how has it evolved? EC refers to e-commerce, which is the online exchange of goods, services, and money. We can now buy goods off of the internet, we can file taxes on the internet, and governments can work with businesses, an individual, as well as other government entities.

2. How have the Web and other technologies given rise to a global platform? The emergence of the Internet and Web has fueled a revolution in the manner in which products and services are marketed and sold. Their far-reaching effects have led to the creation of an electronic marketplace where a virtually limitless array of new services, features, and functionality can be offered. As a result, a presence on the Web has become a strategic necessity for most companies.

3. Compare and contrast two EC business strategies. a. Brick and mortar businesses have physical locations only. They are traditional stores

with no e-commerce, and they have limited geographical reach. A grocery store could be an example.

b. Click and mortar businesses have both a physical location and do e-commerce. An example of this is Barnes and Noble or Wal-mart.

4. Explain the differences between the Internet, an intranet, and an extranet. What is the common bond among all three? They all use it as a form of exchanging information.

a. Internet is a large worldwide collection of networks that use a common protocol to communicate with each other. Public and not restricted.

b. Intranet is used to facilitate secured transmission of proprietary information within companies. Private and restricted to authorized employees.

c. Extranet is a private part of the internet, blocks ordinary users and enables two or more firms to use the Internet for EDI purposes. Private and restricted to authorized business partners.

5. List and explain three benefits of using extranets. a. Information Timeliness and accuracy

i. Cost effective, global medium for distributing proprietary informationii. Central management of documents

b. Technology Integrationi. Cross-platform—Web protocols mitigate differences in platforms, operating

systems, and so onc. Low Cost—High Value

i. Low training needs; most employees know how to use the webii. Automate business transactions

iii. Reduce processing costsiv. Achieve shortened cycle timesv. Reduce errors

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6. What are the three stages of B2C EC?a. E-Information

i. Dissemination of promotional and marketing materialii. Global customers can access timely information 24/7/365

iii. Reduce cost and time needed to disseminate printed materialsiv. No transactional capabilities

b. E-Intergrationi. Customers can access dynamic customize information (bank statements)

ii. No transactional capabilitiesc. E-Transaction

i. Customers get real-time access to information about products and servicesii. Customers can make purchases and payments and conduct banking or

investment transactions.7. Describe the differences between SEO, search marketing, and sponsored search.

a. SEO is an attempt to move up in the organic search engine results. Helps to rank websites.

b. Search marketing happens when people enter a product name into search engines, they will then follow the link to the products.

c. Sponsored searches is a form of internet marketing rewrites content to achieve higher ranks resulting in more pay-per-clicks

8. List and describe six elements of or rules for a good Website.a. Rule 1—The Web site should offer something unique.b. Rule 2—The Web site must be aesthetically pleasing.c. Rule 3—The Web site must be easy to use and fast.d. Rule 4—The Web site must motivate people to visit, to stay, and to return.e. Rule 5—You must advertise your presence on the Web.f. Rule 6—You should learn from your Web site.

9. List and describe three emerging trends in C2C EC.a. Bartering-Exchange for goods or services without using money.b. Auctions-sale where goods go to the highest bidder.c. Tendering-Offer money for goods

10. Explain the different forms of online auctions.a. Forward auction

i. Sellers post goods or services for saleii. Buyers bid on these items

iii. Highest bid wins.b. Reverse auction

i. Buyers post a request for quoteii. Seller proposes a bid

iii. Lowest seller bid winsiv. This is frequently in B2B e-commerce

11. Describe m-commerce and explain how it is different from regular EC. M-Commerce refers to electronic transactions using wireless mobile devices such as smart phones. E-Commerce is simply the exchange of goods, services or money online (in general).

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12. What are the primary forms of e-government? Provide examples for each.a. Government to citizens-interactions between the government and its constituents. ex:

IRS—e-filingb. Government to business-relationships between businesses and the government. ex: e-

procurement, online applications for export licenses.c. Government to government-interactions between countries; interactions between

different levels of government. ex: regulations.gov, export.gov13. How does taxation pose a threat to EC? Governments express the need to tax electronic sales

to make up for lost revenue in traditional sales methods. Because of the Internet Tax Freedom Act these taxes can be obtained from the seller if the sale is made in the state where their warehouses or businesses are.