Week 9: Chapter 6

Section 6.1-

1. Define e-commerce and distinguish it from e-business.

ECommerce is the buying and selling of goods and services over public and private computer networks.

A related term is that of e-business, a broader definition, not just buying and selling but also servicing customers, collaborating with business partners and conducting electro nic transactions within an organisation.

2. Distinguish among B2C, B2B, C2C and B2E electronic commerce.

B2C: Electronic commerce in which the sellers are organisations and the buyers are individuals; also known as e-tailing.
B2B: Electronic commerce in which both the seller and the buyers are business organisations.
C2C: Electronic commerce in which both the buyer and the seller are individuals (not businesses).
B2E: An organisation using electronic commerce internally to provide information and services to its employees.

3. List some benefits and limitations of e-commerce.

Benefits to businesses

• National and international markets are more accessible
• Lower costs of processing, distributing, and retrieving information
• Benefits to customers
• Access to products and services at any time

Benefits to Society

Can deliver information, services and products to people in cities, rural areas and developing countries.


Technological Limitations

• Lack of universally accepted payment and security standards
• Insufficient telecommunications bandwidth in some areas
• Not everyone has access/access varies
• Lots of IT solutions – which to choose?

Non-technological Limitations

• Perception that EC is unsecure/not reliable
• Unresolved legal issues, eg. tax related
• Harder to market to consumers?
  

Section 6.2 -

1. List the major issues relating to e-tailing.

Electronic retailing (e-tailing) is the direct sale of products and services through electronic storefronts or electronic malls, usually designed around an electronic catalogue format and/or auctions. The issue include that EC offers a wider variety of products and services, including the most unique items, often at lower prices. Furthermore, within seconds, shoppers can access very detailed supplementary information on products. In addition, they can easily locate and compare competitors’ products and process. Finally, buyers can find hundreds of thousands of sellers.

2. What are spamming, permission marketing and viral marketing?

Spamming: Indiscriminate distribution of e-mail without the receiver’s permission.

Permission marketing: Method of marketing that asks consumers to give their permission to voluntarily accept online advertising and e-mail.

Viral marketing: Online word of mouth marketing.


Section 6.4 –

1. List the various electronic payment mechanisms.

Electronic payments can be made by e-checks, e-credit-cards, purchasing cards, e-cash, stored-value money cards, smart cards, person-to-person payments via services like Pay-Pal, electronic bill presentment and payment, and e-wallets/.

2. What are micropayments?

Micropayments are electronic payments for small-purchase amounts, generally less than $10.


Section 6.5-

1. List some ethical issues in EC.

Ethical issues to consider are threats to buyers, including the protection of buyers’ identities. Tracking with the use of Cookies can raise privacy concerns.

2. List the major legal issues of EC.

Some legal issues involved include the value of domain names, taxation of online business, fraud and copyright.