Electronic Business, Electronic Commerce, and the Emerging Digital Firm Show E-commerce refers to:
Figure 10-1
The rapid growth of e-commerce since 1995 is due to the unique features of the Internet and the Web as a commercial medium:
The Internet also shrinks information asymmetry, which occurs when one party in a transaction has more information with respect to the transactions than the other party. For instance, the Web has reduced the information asymmetries surrounding auto purchases. Digital markets are very flexible and efficient because they allow:
Figure 10-2
The Internet digital marketplace has also greatly expanded sales of digital goods, goods that can be delivered over a digital network. In comparison to traditional goods, the marginal cost of producing another unit of a digital good is about zero, delivery costs over the Internet are low, while marketing costs are about the same and pricing can be variable. E-commerce technologies have revolutionized commerce and enabled a variety of new business models. Some are pure-play models, based purely on the Internet. Others may be hybrid clicks-and-mortar models, using Web sites as an extension of a traditional business, such as LLBean.com. New business models include:
These new business models may have revenue generated from:
Which of the following is the definition of information density?Information density: Information density is the total amount and quality of information available to all market participants.
What is ubiquity in eIn general, the term “Ubiquity” means being physically present in several places simultaneously or being omnipresent. In eCommerce and customer service, Ubiquity refers to the fact that your visitors/ customers can access a service from any place, on any device, anytime.
What is universal standard in eA universal standard means the standards that are shared by all nations around the world. The universal technical standards of the e-commerce are a greatly lower market entry cost, which means the merchants must pay the costs of the goods that they bring to the market.
What is the difference between information richness and information reach?Reach has little to do with distance. An audience of one has the same reach whether the audience is in the same room or across the country. Richness has three components: amount of information being conveyed (bandwidth), degree to which the information can be cus- tomized, and interactivity.
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