MIS 304 Exam 2 Study Guide 2022/2023(Business and Finance) with complete solution

What are the 7 main types of e-commerce? - ANSWER - B2C - B2B - C2C - C2B - G2C - G2B - G2G What does business 2 consumer e-commerce? - ANSWER describes B2C electronic commerce strategies What is the definition ...

What are the 7 main types of e-commerce? - ANSWER - B2C - B2B - C2C - C2B - G2C - G2B - G2G What does business 2 consumer e-commerce? - ANSWER describes B2C electronic commerce strategies What is the definition of e-finance? - ANSWER the use of information systems to provide financial services and markets What does e-finance consist of? define the 2. - ANSWER - e-banking: paying bills online using electronic bill pay - online brokerage: people can turn to multiple sites to get the latest info about stock prices Another aspect of e-finance is referred to as ____? - ANSWER fintech: refers to technologies that support in the financial sector Brick & Mortar vs. Click & Mortar vs. Click - ANSWER - brick & mortar: physical location (ex: grocery store) - click & mortar: physical AND virtual location (ex: apple, walmart) - click: virtual location (ex: amazon, netflix) What are the 6 capabilities and benefits of e-commerce? - ANSWER 1. disintermediation 2. long-tail 3. mass customization 4. group buying 5. new revenue models 6. social commerce What is disintermediation? - ANSWER cutting out the "middleman" and reaching customers morse directly and efficiently What is long-tail? - ANSWER refer to pic What is mass customization? - ANSWER firms can tailor their product and services to meet a customer's particular needs; generates additional value for customers and profit for producers What is group buying? - ANSWER if many people agree to purchase the product or service, they get significant discounts (ex: groupon) What are new revenue models? - ANSWER companies can earn revenues not only through traditional sales, but also through subscription, licensing, or transaction fees 4 types of revenue models? - ANSWER 1. companies and individuals can earn money through web advertising or affiliate marketing 2. Priceline.com lets consumers name their own price for travel-related services 3. reverse pricing 4. "name your own price" What is social commerce? - ANSWER utilizing social network to build lasting relationships and advertise products What are 6 types of e-commerce revenue models? - ANSWER 1. traditional sales 2. subscription 3. licensing 4. transaction fees 5. advertising 6. affiliate marketing What are the 3 benefits of e-tailing? Explain. - ANSWER - product benefits: with no store size and shelf space restrictions, companies can sell a far wider variety of goods - place benefits: internet storefronts are available on almost every computer connected to the internet - price benefits: online retailers are efficient, with high volumes and low overhead allow for very competitive pricing What are the 3 drawbacks of e-tailing? Explain. - ANSWER - trust: this is especially a concern for new online businesses without a proven track record - direct product experience: e-tailing does not provide sensory information - product delivery returns: expect for direct downloads, e-tailing requires additional delivery time for products; returns may also be a hassle, compared to just going to the store 4 ways to attract and retain customers online? - ANSWER - unique - visit-stay-return - advertise - learn from data What are 3 online consumer's hierarchy of needs? - ANSWER 1. structural firmness 2. functional convenience 3. representation delight What are the 4 aspects of structural firmness? - ANSWER no bad links, understandable error messages, privacy/security, speed What are the 7 aspects of functional convenience? - ANSWER easy to use, simple navigation, use feedback, help features, one-click ordering, flexible payment, order tracking What are the 5 aspects of representational delight? - ANSWER aesthetically pleasing, professional look and feel, color/font/images, consistent layout, no clutter What are the 6 parts of internet marketing? - ANSWER 1. search marketing 2. display ads 3. email marketing 4. social media marketing 5. mobile marketing 6. payment performance assessment What is search marketing? - ANSWER includes paid search, placing ads on search websites based on search terms, and SEO, optimizing a website and its relative search engine ranking What does SEO stand for and what does it do? what do techniques include? - ANSWER - search engine optimization - attempts to improve a pages ranking in search engines like google - techniques include having other pages link to the page, keeping content updated, and uncluding key words What are display ads? - ANSWER simple banner ads, but now often contextualizing to what the person is viewing What is email marketing? - ANSWER extremely low cost, less than a penny per email, and hence very popular; effectiveness also easy to track What is social media marketing? - ANSWER increasingly used for interactive communication and relationship building with customers What is mobile marketing? - ANSWER if ads can be tailored to a user's location, then highly targeted marketing opportunities open up What is payment; performance assistant? - ANSWER impression, pay-per-click/click-through, and conversion models (but beware of click fraud) What are the 3 types of mobile e-commerce? - ANSWER - location based M-commerce - information on the go - product and conduct sales What is location-based M-commerce? - ANSWER services can be offered tailored to a person's needs to based on their current location What is information on the go? - ANSWER customers can get further information about a produce wherever they are, including in the store, but this can lead to "showrooming" What is product and content sales? - ANSWER consumers use mobile apps to make purchases while on the go GPS stands for? what are the 4 aspects? - ANSWER - global positioning system - location, mapping, navigation, tracking C2C consists of what 2 things? - ANSWER - e-auctions - individual sellers can sell/barter items at online auctions, consumers place bids - ex: eBay.com - revenue model based on small transaction feeds, highly profitable Online classified as: - ANSWER - just advertising, no online transactions - freecycling - ex: craigslist 5 opportunities of C2C? - ANSWER 1. consumers can buy/sell broader markets, potentially all over the world 2. eliminates overheads of licensing and middlemen that increases the final price of products and services 3. online markets are always available for consumers, 24/7/365 4. increases the # of buyers and sellers who can find each other 5. market demand is an efficient mechanism for setting prices in the electronic environment 3 threats of C2C? - ANSWER 1. no quality control 2. higher possibility of fraud 3. harder to use traditional payment methods (checks, cash) C2B e-commerce consists of? - ANSWER - relatively new phenomenon, consumers can sell small pieces of work (ex: photos) or services to businesses - it might be argues that anyone who made a living doing this is actually in business for themselves, so may be B2B 3 financial and legal issues when securing payments? - ANSWER 1. credit & debit cards 2. consumers transfer significant personal information to the seller 3. risk of identity theft Credit & debit cards? - ANSWER CC are a simple mechanism, consumers transfer significant personal info to the seller, risk of identity theft Managing risks? - ANSWER businesses are financially liable for fraudulent transaction, businesses have to look for fraud indicators and sometimes reject risky transactions Payment services? - ANSWER ex: PayPal, Google Checkout What are cryptocurrencies (in the image shown)? - ANSWER the image shows how bitcoins are exchanged with transactions stored on a public ledger in the form of a blockchain 7 ways to protect yourself when shopping online? - ANSWER 1. use a secure browser 2. check the sites privacy policy 3. read and understand the refund and shipping policies 4. keep our personal info private 5. give payment info only to businesses you know and trust 6. keep record of your online transaction and check your email 7. review your monthly credit card and bank statements What are 3 legal issues in e-commerce? - ANSWER taxation, digital right management (DRM), net neutrality What is taxation? Act that goes along with it? - ANSWER sales tax, internet freedom act: internet sales are treated like mail-order sales What is DRM? - ANSWER - preventing unauthorized duplication - restrict which devices can play media - limit number of times media can be played What is net neutrality? - ANSWER should the internet be open? or should internet access come first to the highest bidder? What are the 2 needs to communication? - ANSWER - synchronous: coordinated, at the same time (ex: chatting online or making a telephone call) - asynchronous: not coordinated in time (ex: sending emails and texting) 3 aspects of virtual teams? - ANSWER 1. groupware 2. e-meeting 3. video conferencing What is groupware? What 2 dimensions does it use? - ANSWER - a class of software that enables people to work together more effectively - became a widely used way for collaboration within teams or organizations, supports various modes of group interaction