Ecommerce Chapter 1

Front 1

Bonded Warehouse

Back 1

A secure location where incoming international shipments can be held until customs requirements are satisfied or until payment arrangements are completed.

Front 2

Business Model

Back 2

A set of processes that combine to yield a profit

Front 3

Business Unit

Back 3

A unit within a company that is organized around a specified combination of product, distribution channel, and customer type. Synonymous with strategic business unit.

Front 4

Business-to-business (B2B)

Back 4

Transactions conducted between businesses on the Web

Front 5

Business-to-consumer (B2C)

Back 5

Transactions conducted between shoppers and businesses on the web

Front 6

Business-to-government (B2G)

Back 6

Business transactions conducted with government agencies, such as paying taxes and filing required reports

Front 7

Commodity Item

Back 7

A product or service that has become so standardized and well-known that buyers cannot detect a difference in the offerings of various sellers; buyers usually base their purchase decision for such products and services solely on price

Front 8

Consumer-to-consumer (C2C)

Back 8

A category of eCommerce that includes individuals who buy and sell items among themselves

Front 9

Customs Broker

Back 9

A company that arranges the payment of tariffs and compliance with customs laws for international shipments

Front 10

Dot-com

Back 10

A company that operates only online

Front 11

E-procurement

Back 11

The use of Internet technologies in a company’s purchasing and supply management functions

Front 12

Electronic business (e-business)

Back 12

Another term for electronic commerce; sometimes used as a broader term for electronic commerce that includes all business processes, as distinguished from a narrow definition of electronic commerce that includes sales and purchase transactions only

Front 13

Electronic commerce (e-commerce)

Back 13

Business activities conducted using electronic data transmission over the Internet and the World Wide Web

Front 14

Electronic Data exchange (EDI)

Back 14

Exchange between businesses of computer-readable data in a standard format

Front 15

Electronic Funds Transfer (EFT)

Back 15

Electronic transfer of account exchange information over secure private communications networks

Front 16

First-mover advantage

Back 16

The benefit a company can gain by introducing a product or service before its competitors

Front 17

Freight forwarder

Back 17

A company that arranges shipping and insurance for international transactions

Front 18

Hierarchical business organization

Back 18

Firms that includes a number of levels with cumulative responsibility. These organizations are typically headed by a top-level president or officer. A number of vice presidents report to the president. A larger numbers of middle managers report to the vice presidents.

Front 19

Industry Value Chain

Back 19

The larger stream of activities in which a particular business unit’s value chain is embedded

Front 20

Law of Diminishing Returns

Back 20

The characteristic of most activities to yield less value as the amount of consumption increases

Front 21

Localization

Back 21

A type of language translation that considers multiple elements of the local environment, such as business and cultural practices, in addition to local dialect variations in the language

Front 22

Machine Translation

Back 22

Language translation that is done by software; such translation can reach speeds of 400,000 words per hour

Front 23

Market

Back 23

A real or virtual space in which potential buyers and sellers come into contact with each other and agree on a medium of exchange (such as currency or barter)

Front 24

Merchandising

Back 24

The combination of store design, layout, and product display intended to create an environment that encourages customers to buy.

Front 25

Mobile Commerce (m-commerce)

Back 25

Resources accessed using devices that have wireless connections, such as stock quotes, directions, weather forecasts, and airline flight schedules.

Front 26

Network economic structure

Back 26

A business structure wherein firms coordinate their strategies, resources, and skill sets by forming a long-term, stable relationship based on a shared purpose

Front 27

Network effect

Back 27

An increase in the value of a network to its participants, which occurs as more people or organizations participate in the network

Front 28

Primary activities

Back 28

Activities that are required to do business: design, production, promotion, marketing, delivery, and support of products or services

Front 29

Procurement

Back 29

The business activity that includes all purchasing activities plus the monitoring of all elements of purchase transactions

Front 30

Pure Dot-com

Back 30

A company that operate only online; also called dot-com

Front 31

Revenue Model

Back 31

The combination of strategies and techniques that a company uses to generate cash flow into the business from customers

Front 32

Shipping profile

Back 32

The collection of attributes, including weight and size, that affect how easily a product can be packaged and delivered

Front 33

Smart phone

Back 33

A mobile phone that includes a functional Web browser and a full keyboard

Front 34

Social commerce

Back 34

The use of interpersonal connections online to promote or sell goods and services

Front 35

Strategic alliance

Back 35

The coordination of strategies, resources, and skill sets by companies into long-term, stable relationships with other companies and individuals based on shared purposes.

Front 36

Strategic Business Unit (SBU)

Back 36

A unit within a company that is organized around a specific combination of product, distribution channel, and customer type

Front 37

Strategic partners

Back 37

The entities taking part in a strategic alliance

Front 38

Supply management

Back 38

Synonymous with procurement, which is the business activity that includes all purchasing activities plus the monitoring of all elements of purchase transactions

Front 39

Supporting activities

Back 39

Secondary activities that back up primary business activities. These include human resource management, purchasing, and technology development.

Front 40

SWOT Analysis

Back 40

Evaluation of the strengths and weaknesses of a business unit, and identification of the opportunities presented by the markets of the business unit and threats posed by competitors of the business unit.

Front 41

Telecommuting

Back 41

An employment arrangement in which the employee logs in to the company computer from an off-site location through the Internet instead of traveling to an office.

Front 42

Trading partners

Back 42

Businesses that engage in EDI with one another

Front 43

Transaction costs

Back 43

The total of all costs incurred by a buyer and seller as they gather information and negotiate a transaction

Front 44

Value-added network (VAN)

Back 44

An independent company that provides connection and EDI transaction forwarding services to businesses engaged in EDI

Front 45

Value Chain

Back 45

A way of organizing the activities that each strategic business unit undertakes to design, produce, promote, market, deliver, and support the products or services it sells

Front 46

Value System

Back 46

Synonymous with industry value chain

Front 47

Vertical integration

Back 47

The practice of an existing firm replacing one of its suppliers with its own strategic business unit that creates the supplied product

Front 48

Virtual community

Back 48

An electronic gathering place for people with common interests

Front 49

Virtual Company

Back 49

A strategic alliance occurring among companies that operate on the Internet

Front 50

Web 2.0

Back 50

Technologies that include software that allow users of Web sites to participate in the creation, editing, and distribution of content on a website owned and operated by a third party.