Business Chapter 7

Front 1

Define e-business and discuss how it can help achieve business success.

Back 1

E-business involves targeting customers by collecting and analyzing business information, conducting customer transactions, and maintaining online relationships with customers, suppliers, and other interested parties by means of the Internet. It consists of e-tailing, business-to-business transactions, electronic data interchanges, business-to-business exchange of data, and the use of Web-enabled communication tools such as e-mail. E-business increases a company's global reach, increases personalization, is interactive, offers right-time and integrated marketing, and can reduce costs.

Front 2

Define e-business.

Back 2

E-business refers to conducting business via the Internet.

Front 3

List some benefits of e-business.

Back 3

Benefits of e-business include global reach, personalization, interactivity, right-time and integrated marketing, and cost savings for both buyers and sellers.

Front 4

Distinguish between a corporate Web site and a marketing Web site.

Back 4

Virtually all businesses have Web sites. Generally, these sites can be classified as either corporate Web sites or marketing Web sites. Corporate Web sites are designed to increase the firm's visibility, promote their offerings, and provide information to interested parties. Marketing Web sites are also designed to communicate information and build customer relationships, but the main purpose of marketing Web sites is to increase purchases by site visitors.

Front 5

Briefly identify the differences between a corporate Web site and a marketing Web site.

Back 5

A corporate web site is designed to increase a firm's visibility, promote its offerings, and provide information for interested parties. A marketing web site generally includes the same information found on a corporate Web site but is also designed to increase sales to site visitors.

Front 6

Is the Specialized web site a corporate web site or a marketing web site?

Back 6

Specialized.com is a marketing Web site. It includes an online store where visitors can purchase Specialized products.

Front 7

List the major forms of business-to-business (B2B) e-business

Back 7

Electronic data interchange was an early use of technology to conduct business transactions. E-business is the process of selling goods and services through Internet-based exchanges of data. It includes product information; ordering, invoicing, and payment processes; and customer service. In a B2B context, e-business uses Internet technology to conduct transactions between two organizations via extranets, private exchanges, electronic exchanges, and e-procurement.

Front 8

What is B2B e-business? How large is it relative to B2C e-business?

Back 8

B2B e-business is the use of the Internet for business transactions between organizations. By some estimates, around 80 percent of all e-business activity consists of B2B e-business.

Front 9

What is an EDI?

Back 9

An EDI is a computer-to-computer exchange of invoices, purchase orders, price quotations, and other sales information between buyers and sellers.

Front 10

What is an extranet?

Back 10

An extranet is a secure network accessible though a firm's Web site by authorized users.

Front 11

What is a private network?

Back 11

A private network is a secure Web site at which a company and its suppliers share all types of data from product design to the delivery of orders.

Front 12

Briefly explain how e-procurement works.

Back 12

E-procurement consists of Web-based systems that enable all types of organizations to improve the efficiency of their procurement processes.

Front 13

Explain business-to-consumer (B2C) e-business and identify the products most often sold online.

Back 13

After a rocky start, business-to-consumer (B2C) e-business is maturing. B2C uses the INternet to connect companies directly with consumers. E-tailing and electronic storefronts are the major forms of online sales to consumers. Online shoppers are young, highly educated, affluent, and urban. However, in the coming years, online consumers will begin to look more like offline shoppers, and the kinds of products sold online will change as well. Benefits of B2C e-business include lower prices, increased convenience, and personalization. Payment methods include electronic cash, electronic wallets, and online transfers of cash.

Front 14

What are some of the benefits of B2C e-business?

Back 14

Benefits of B2C e-business include lower prices, increased convenience, and personalization.

Front 15

Outline the differences between shopping websites and informational sites. Is the Cross Web site a shopping or informational B2C website?

Back 15

An informational site provides product information, technical support, and links to local retailers. A shopping Web site allows customers to buy a firm's products. The Cross Web site is a shopping site.

Front 16

Discuss the characteristics of the tpical online buyer, how those characteristics are changing, and the potential impact on the types of products sold online.

Back 16

While the typical online buyer is still relatively urban, young, and affluent, growing evidence shows that online shoppers are beginnning to look more like off-line shoppers. As these trends continue, the types of products sold online will likely change. For instance, as online shoppers get older, online sales of pharmaceuticals will likely increase. As the nimber of female online shoppers has increased, so too have online sales of shoes, clothing, and kitchen products.

Front 17

List some ways online merchants try to ensure secure payment systems.

Back 17

Online shopping sites use encryption-the process of encoding data for security purposes. Major firms involved in all aspects of e-business use Secure Sockets Layer (SSL) technology, an industry wide standard for secure Internet payment transactions. Electronic wallets are secure data files at Web sites that contain customer information so customers don't have to retype personal information each time they make a purchase.

Front 18

Describe some of the challenges associated with e-business.

Back 18

The growth of e-business has been hampered by consumer security and privacy concerns, fraud, and system overload. In addition, poor web design and service, unreliability of delivery and returns, and lack of retail expertise has limited e-business success. The Internet can also generate conflict among buyers and sellers.

Front 19

List the major challenges to e-business.

Back 19

Challenges to e-business include protecting consumer privacy, fraud, unreliable and hard-to-use Web sites, problems with deliveries and returns, and potential channel conflicts.

Front 20

Most cases of Internet-related fraud come from what category of online activity?

Back 20

The largest number of cases of Internet-related fraud come from online auctions.

Front 21

What is a channel conflict?

Back 21

A channel conflict is a dispute between a producer, wholesaler, and/or retailer.

Front 22

Discuss how organizations use the communication functions of the Internet to advance their objectives.

Back 22

Communication remains the most popular function of the Internet. Companies have long used e-mail to communicate with customers, suppliers, and other partners. Online communities are groups of people who share common interests. Companies use online communities such as forums and electronic bulletin boards to communicate with and obtain feedback from customers and other partners. Blogs are online journals that have gained popularity in recent years. Companies have just begun to explore the potential of blogs, web-based promotions include advertising on other web sites, search marketing, and online coupons.

Front 23

What are online communities?

Back 23

Online communities can take several forms and include Internet discussion groups and electronic bulletin boards. Users log in and participate by sending comments and questions, or receiveing information from other forum members.

Front 24

Explain how online communities can help companies market their products and improve customer service.

Back 24

Companies use online communities to ask questions and exchange information with customers.

Front 25

What is a blog?

Back 25

A blog, short for web log, is a web page that serves as a publicly accessible journal for an individual or organization.

Front 26

What is a wiki?

Back 26

A wiki is a web page that anyone can edit.

Front 27

What is a podcast?

Back 27

A podcast is a video blog.

Front 28

Explain the difference between a banner ad, a pop-up ad, and search marketing.

Back 28

Banner ads are small messages placed in high-visibility areas of frequently visited web sites. A pop-up ad is a separate window that pops up containing an advertising message. Search marketing is an arrangement by which a firm pays a search engine-such as google-a fee to make sure that the firm's listing appears toward the top of the search results.

Front 29

List the steps involved in developing successful web sites and identify methods for measuring web site effectivenetss.

Back 29

Businesses establish web sites to expand their customer bases, increase buyer awareness of their products, improve consumer communications, and provide better service. Before designing a web site, a company's decision makers must first determing what they want to achieve with the site. Other important decisions include who should create, host, and manage the site; how to promote it; and how much funding to allocate. Successful web sites contain informative, up-to-date, and visually appealing content. Sites should also download quickly and be easy to use. Finally, management must develop ways to measure how well a site accomplishes its objectives.

Front 30

What are the first 3 questions a company should ask itself when planning a web site?

Back 30

The first question deals with the purpose of the web site. The second deals with whether the firm should develop the site itself or outsource it to a specialized firm. The third question is determining the name of the site.

Front 31

How does the type of web site affect measures of effectiveness?

Back 31

For a shopping site, profitability is an important measure of effectiveness, though profitability can be difficult to measure given the presence of so caled web to store shoppers. For company web sites, online success is measured by increased brand awareness, and loyalty, which presumably translates into greater profitability through offline transactions.

Front 32

Explain the difference between click-through and conversion rates.

Back 32

The click-through rate is the percentage of viewers who, when presented with a banner ad, click on it. The conversion rate is the percentage of web site visitors who actually make purchases.

Front 33

Explain the global scope of e-business.

Back 33

Technology allows companies to compete in the global market and workplace. Even the smallest firms can sell products and find new vendors in international markets. Through its own web site, a company can immediately reach customers all over the world. Improved communications among employees in different locations create new ways to collaborate on projects.

Front 34

How do language differences affect global e-business?

Back 34

Most web pages, including e-business sites, are still in English, which inhibits the growth of e-business in other countries. Also, online retailers need to be sensitive to cultural differences.

Front 35

How does e0business heighten global competition?

Back 35

In the virtual global marketplace, companies can search online catalogs to find the lowest-priced goods and services. The Internet is also a valuable tool for businesses that would otherwise have difficulty finding overseas customers.

Front 36

Electronic business (e-business).

Back 36

conducting business via the internet

Front 37

corporate web site

Back 37

web site designed to increase a firm's visibility, promote its offerings, and provide information to interested parties.

Front 38

marketing web site

Back 38

web site whose main purpose is to increase purchases by visitors

Front 39

electronic storefront

Back 39

company web site that sells products to customers

Front 40

phishing

Back 40

high-tech scam that uses authentic looking e-mail or pop-up ads to get unsuspecting victims to reveal personal information.

Front 41

quick response

Back 41

the retailing equivalent of just-in-time inventory, an inventory management system commonly used in manufacturing

Front 42

extranets

Back 42

secure networks used for e-business and accessible through the firm's web site by external customers, suppliers, or other authorized users, they go beyond ordering and fulfillment processes by giving selected outsiders access to internal information they provide additional benefits such as enhanced relationships with business partners.

Front 43

private exchange

Back 43

a secure website at which a company and its suppliers share all types of data related to e-business, from product design through order delivery. A private exxhcange is more collaborative then a typical extranet.

Front 44

electronic exchange

Back 44

online marketplace that bings buyers and sellers together and caters to a specific industry's needs.

Front 45

e-procurement

Back 45

web-based systems that enable all types of organizations to improve the efficiency of their procurement processes.

Front 46

bots

Back 46

aid consumers in comparison shopping. They are search programs that check hundreds of sites, gather information, and bring it back to the sender.

Front 47

Secure Sockets Layer

Back 47

tecnnology to encrypt information and verify the identity of senders and receivers. SSL consists of a public key and a private key-software encrypts and decrypts information. The public key is used to enrypt information, and the private key is used to decipher it.

Front 48

electronic wallet`

Back 48

computer data file at an e-business site's checkout counter that contains not only electronic cash but credit card info, owner identification, and address.

Front 49

electronic signiture

Back 49

a way to enter into legal contracts such as home mortgages and insurance policies online.

Front 50

firewall

Back 50

an electronic barrier between a companys internal network and the Internet that limits access into and out of the network.

Front 51

channel conflicts

Back 51

disputes between producers, wholesalers, and retailers.

Front 52

electronic bullitein boards

Back 52

center on a specific topic or area of interest. Resemble announcements.

Front 53

web-to-store

Back 53

shoppers who favor the internet as a research tool and time saving device for retail purchases made in store