Chapter 12

1.      Explain the differences among total inter-firm trade, B2B commerce, and B2B
e-commerce
     Total inter-firm trade is the total flow of value among firms.  B2B commerce is all types of computer-enabled inter-firm trade.  B2B e-commerce is that portion of B2B commerce that is enabled by the Internet.

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2.      What are the key attributes of electronic storefronts? What early technology are they descended from?
      The key attributes of electronic storefronts are just online catalogs of products made available to the public marketplace by a single supplier ex Amazon.  This is descended from automated order entry systems.

3.      List at least five potential benefits of B2B e-commerce.
      Five potential benefits of B2B e-commerce are lower administrative costs, lower search costs for buyers, increase production flexibility by ensuring delivery of parts "just in time", increase opportunities for collaborating with suppliers and distributors, and create a greater price transparency.

4.      Define the term supply chain and explain what SCM systems attempt to do. What does supply chain simplification entail?Explain the difference between a horizontal market and a vertical market.
      The term supply chain are firms that purchase goods, their suppliers, and their suppliers' suppliers.  Includes not only the firms themselves, but also the relationships among them, and the processes that connect them.  Supply chain simplification entails involving the decision of who to buy from and what to pay, purchase orders are then issued.  A horizontal market is a market in which meets a given need of a wide variety of industries, rather than a specific one.  A vertical market is a group of similar businesses and customers that engage in trade based on specific and specialized needs.

5.      How do the value chain management services provided by e-procurement companies benefit buyers? What services do they provide to suppliers?
      The value chain management services benefit buyers because the suppl chain is linked through a series of transactions and firms purchase goods from a set of suppliers, and they in turn purchase their inputs from a set of suppliers.

6.      What are the three dimensions that characterize an e-procurement market based on its business functionality? Name two other market characteristics of an e-procurement Net marketplace.
      The three dimensions that characterize an e-procurement market based on its business functionality are the decision of who to buy from and what to pay.  Purchase orders are then issued.  Two other market characteristics of an e-procurement Net marketplace are the Internet being an important contribution simply as a powerful communications medium.

7.      Identify and briefly explain the anti-competitive possibilities inherent in Net marketplaces.

8.      List three of the objectives of a private industrial network.
      The anti-competitive possibilities inherent in Net marketplaces are they establish the prices of the goods they offer in four primary ways...They earn revenue by transaction fees, subscription fees, service fees, software licensing fees, advertising and marketing, and sales of data and information.  They are biased against suppliers because they can force suppliers to reveal their prices and terms to other suppliers in the marketplace.  Three of the objectives of a private industrial network are to share product design and development, marketing, and inventory.

9.      What is CPFR, and what benefits could it achieve for the members of a private industrial network?
       CPFR is an industry model intended to facilitate suppliers and buyer interaction by synchronizing supply and demand.  Private industrial networks are owned by the buyers and are buyer-side solutions with buyer biases...this could help improve the cost position and flexibility of large industrial firms.

10.  What are the barriers to the complete implementation of private industrial networks?
      The barriers to the complete implementation of private industrial networks are because not every business is online right now.  Since this business focuses on permit buyer firms and their principal suppliers to share product design and development, marketing, inventory, and production scheduling they have to be able to do this for many businesses.

Chapter 11

  Why did most communities in the early days of e-commerce fail? What factors enable some online social networks to prosper today?
      Most communities in the early days of e-commerce failed because the early online communities involved a relatively small number of Web aficionados, and users with intense interests in technology, politics, literature, and ideas.  The factors that enable some online social networks to prosper today are a group of people, shared social interaction, common ties among members, and people who share an area for some period of time.

2.      How does a social network differ from a portal? How are the two similar?
      A social network differs from a portal because a portal is a group of web pages that act as a starting point for using the Web or Web based services.  A social network consists of interaction between a group of people.

3.      What is personalization, or personal value pricing, and how can it be used at the beginning of a product’s life cycle to increase revenues?
     Personalization pricing adjusts prices based on the merchant's estimate of how much the customer truly values the product.  It can be used at the beginning of a product's life cycle to increase revenues because if a lot of people are buying the product, then they can up the price; however, if it is not selling very well, they will put it on sale.

4.      List and briefly explain three of the benefits of auction markets.
      The three benefits of auction markets are consumer-to-consumer auctions, in which the auction house is simply an intermediary market maker, providing a forum where consumers can discover prices and trade.  Business-to-consumer auctions where a business owns or controls assets and uses dynamic pricing to establish the price.  Business-to-business auctions is the third type.  Three benefits of auctions Liquidity, price discovery, and market efficiency.

5.      What are the four major costs to consumers of participating in an auction?
      The four major costs to consumers of participating in an auction are delayed consumption costs, monitoring costs, equipment costs, trust risks, and fulfillment costs.

6.      What is an auction aggregator and how does it work?
      An auction aggregator is when you use computer programs to search thousands of Web auction sites, and aggregate information on products, bids, auction duration, and big increments.

7.      What three characteristics define a portal site today?
      Three characteristics that define a portal site today are web sites that contain in-depth information and they seek to be a sticky destination.

8.      List and briefly explain the main revenue sources for the portal business model.
     The main revenue sources for the portal business model are Reach, the percentage of the Web audience that visits the site in a month and unique visitors the number of uniquely identified individuals who visit in a month.

Chapter 10

1.      What are the three dimensions where the term convergence has been applied? What does each of these areas of convergence entail?
        The three dimensions where the term convergence has been applied are Technology, content and industry.  Each of these area of convergence entail technological convergence is the development of hybrid devices that can combine the functionality of two or more existing media platforms into a single device.  Content convergence is convergence in the design, production and distribution of the content.  Industry convergence is a merger of media enterprises into into synergistic combination's that create and cross-market content on different platforms.

2.      Why has media industry convergence not occurred as rapidly as predicted? What are the five basic revenue models for online content and what is their major challenge? What will have to be done in order to overcome this obstacle to profitability?
       Media industry convergence has not occurred as rapidly as predicted because they don't want it to confuse the customers; so therefore they make it a much slower process.  The five basic revenue models for online content are marketing, advertising, pay-per-view, subscription, and mixed.  Prosecuting lawbreakers and enhancing security of online products will have to be done in order to overcome this obstacle to profitability.

3.      What four things must content provider firms do in order to generate meaningful revenues?
       Focused market, specialized content, sole-source monopoly, and high perceived net value will have to be done in order to generate meaningful revenues.

4.       

How has the Internet impacted the content that newspapers can offer?
       The Internet has impacted the content that newspapers can offer by anything can be read on the Internet for free, so why would someone pay for a newspaper.  People can even print the information off the Internet and then it would be just the same as a newspaper.

5.      What are the advantages and disadvantages of e-book content?
      An advantage of e-book content is it is easy to get to and can be easily organized on the computer; however, most people had rather have an actual book especially older people because that's what they grew up with.

6.      How has the Internet changed the packaging, distribution, marketing, and sale of traditional music tracks?
      The Internet has changed the packaging, distribution, marketing, and sale of traditional music tracks by anyone can look up any song/album online and can even burn it to a cd; however, most of the time they are marketing more of a single song that can include even the music video.

7.      What are the factors that make nontraditional distinctly Web entertainment sites so popular with users?
      The factors that make nontraditional distinctly Web entertainment sites so popular with users are customization, personalization, and easy access to anything.

Chapter 9

1.      Why were so many entrepreneurs drawn to start businesses in the online retail sector initially?

       So many entrepreneurs are drawn to start businesses in the online retail sector initially because it was one of the largest market opportunities in the U.S. economy.  Most believed it was easy to enter the retail market; however they were mistaken.

2.      What frequently makes the difference between profitable and unprofitable online businesses today?
       Profitable online businesses involves having a central location in order to attract a larger number of shoppers, charging high enough prices to cover the costs of goods as well as marketing, and developing high efficient inventory and fulfillment systems so that the company can offer goods at lower costs than competitors and still make profit.

3.      Which segment of the offline retail business is most like online retailing? Why?
       The service sector is the segment of the offline retail business that is most like online retailing.

4.      Name the largest segment of U.S. retail sales. Explain why businesses in this segment have achieved and continue to dominate online retailing.
      The largest segment of U.S. retail sales is the service sector.  Businesses in this segment have achieved and continue to dominate online retailing because services employ about 108 million people.

5.      Name two assumptions e-commerce analysts made early on about consumers and their buying behavior that turned out to be false.
      Two assumptions e-commerce analysts made early on about consumers and their buying behavior that turned out to be false were industry consolidation and the movement toward integrated financial services.

6.      Why were customer acquisition costs assumed early on to be lower on the Web? What was supposed to reduce those costs?
      Customer acquisition costs were assumed early on to be lower on the Web because people thought it would be harder than what it actually is to develop a business online.  

7.      Explain the distinction between disintermediation and hypermediation as it relates to online retailing.
      Disintermediation is the displacement of market middlemen who traditionally are intermediaries between producers and consumers by a new direct relationship between manufacturers and content originators with their customers.  Hypermediation is when it is much higher than intended.

8.      Compare and contrast virtual merchants and bricks-and-clicks firms. What other type of online retailer is most like the virtual merchant?
      Virtual merchants are a single-channel Web firm that generates almost all of their revenue from online sales.  Bricks-and-clicks are companies that have a network of physical stores as their primary retail channel, but also have introduced online offerings.  

9.      What is the difference between a supply-push and a demand-pull sales model? Why do most manufacturer-direct firms have difficulty switching to one of these?
      A supply-push sales model is when products are made prior to orders received based on estimated demand.  A demand-pull sales model is when products are not built until an order is received.

10.  What are five strategic issues specifically related to a firm’s capabilities? How are they different from industry-related strategic issues?
      The five strategic issues specifically related to a firm's capabilities are consolidation, diversification, localization, job search engines/aggregators and social networking.  

11.  What are some of the difficulties in providing services in an online environment? What factors differentiate the services sector from the retail sector, for example?
      Some of the difficulties in providing services in an online environment is if your selling a product, your not able to physically see the product.  Also, there can be the thought that some customers have of their identity being stolen so they choose to not shop online.  The retail sector is more or less products while the services sector is a service you are offering.

12.  Compare and contrast the two major types of online service industries. What two major features differentiate services from other industries?
       The two major types of online service industries are financial services and travel services.  

Chapter 8

1.     

1.      What basic assumptions does the study of ethics make about individuals?

      

       Some basic assumptions that the study of ethics makes about individuals are that individuals are free moral agents who are in a position to make choices.  

2.      What are the three basic principles of ethics? How does due process factor in?

       The three basic principles of ethics are responsibility, accountability, and liability.  Due processes is a feature of law-governed societies and refers to a process in which laws are known and understood and there is an ability to appeal to higher authorities to ensure that the laws have been applied correctly.

3.      Explain Google’s position that YouTube does not violate the intellectual property rights of copyright owners.

        Google's position that YouTube does not violate the intellectual property rights of copyright owners is because YouTube is not finding the videos and posting them their self; others post their videos to the YouTube site.

4.      Define universalism, slippery slope, the New York Times test, and the social contract rule as they apply to ethics.

       Universalism if an action is not right for all situations, then it is not right for any specific situation.  Slippery Slope is if an action cannot be taken repeatedly, then it is not right to take at all.  The New York Times test is do you want your name to be in the New York times the next day?  What would be the reaction from your friends and family and would they be proud of you?  The Social Contract Rule is would you like to live in a society where the principle you are supporting would become an organizing principle of the entire society?

5.      Name some of the personal information collected by Web sites about their visitors.

       Some of the personal information that is collected by Web sites is your name, address, phone number, e-mail address, social security number, age, gender, occupation, bank accounts, credit card numbers, etc.

6.      How does information collected through online forms differ from site transaction logs? Which potentially provides a more complete consumer profile?

      Information collected through online forms differs form site transaction logs by site transaction logs can be used to collect and analyze detailed information on page content viewed by users.  I think information collected through online forms provides a more complete consumer profile because they can get your age, gender, phone number, address, etc.

7.      Name three ways online advertising networks have improved on, or added to, traditional offline marketing techniques.

       Three ways online advertising networks have improved on, or added to, traditional offline marketing techniques are they have the ability to precisely track not just consumer purchases, but all browsing behavior on the Web at thousands of the most popular member sites, including browsing book lists, filling out preference forms, and viewing content pages.  They can dynamically adjust what the shopper sees on screen including prices.  They can also build and continually refresh high-resolution data images or behavioral profiles of consumers.

8.      Explain how Web profiling is supposed to benefit both consumers and businesses.

       Web profiling is the creation of digital images that characterize online individual and group behavior.

9.      How could the Internet potentially change protection given to intellectual property? 

       The Internet could potentially change protection given to intellectual property by once intellectual works become digital, it becomes difficult to control access, use, distribution, and copying.

10.  What capabilities make it more difficult to enforce intellectual property law?

      Some capabilities that make it more difficult to enforce intellectual property law are the internet technically allowing millions of people to make perfect digital copies of various works.

11.  What are some of the tactics illegal businesses, such as betting parlors and casinos, 

successfully use to operate outside the law on the Internet?

     Some of the tactics illegal businesses use to operate outside the law on the Internet are  using checks and money orders as payments and the postal system as logistics partner, also with gambling they were using credit cards and other online payment systems for Internet betting.  

Chapter 7

1.

Chapter 7

1.      Explain the difference between marketing and marketing communications.

Marketing communications has a dual purpose; branding and sales.  One purpose of marketing comm. is to develop and strengthen a firm’s brands by informing consumers about the differentiating feature of the firm’s products and services. 

2.      What are some reasons why online advertising constitutes only about 9 percent of the total advertising market?

Some reasons why online advertising constitutes only about 9 percent of the total advertising market is because consumer, financial services, computers, telecommunications and media account for 80% of all online advertising.

3.      What kinds of products are most suited to being advertised online?

Products that are most suited to being advertised online are ones that are able to be in display ads, have rich media ads, and video ads. 

4.      What is the difference between an interstitial ad and a superstitial ad?

An interstitial ad is a way of placing a full-page message between the current and destination pages of a user.  A superstitial ad is a rich media ad that is pre-loaded into a browser’s cache and does not play until fully loaded and the user clicks to another page.

5.      What are some of the reasons for the decline in click-through rates on banner ads today? How can banner ads be made more effective?

Some reasons for the decline in click-through rates on banner ads today are because banner ads display different images in relatively quick succession, creating an animated effect and uses Flash video.

6.      Why are some affiliate relationships called “tenancy” deals? How do they differ from pure affiliate relationships?

Some affiliate relationships are called tenancy deals because they allow a firm to become a long-term “tenant” on another site.  They differ from pure affiliate relationships because an affiliate relationship is only a permit to be a tenant, and a tenancy deal is long term.

7.      There is some controversy surrounding paid placements on search engines. What are some of the issues surrounding paid placement search engines? Why might consumers object to this practice?

The Achilles’ heel of search engine marketing is “click fraud”.  Just as spam has greatly reduced the utility of e-mail marketing, so has click fraud raised the costs and reduced the attractiveness of search engine marketing to merchants.  Some of the issues surrounding paid placement search engines are that anyone including competitors can click on search engine ads, driving up a merchant’s costs, without ever purchasing anything.  Consumers may object to this practice because you can increase your revenue by having friends and relatives click on the ads Google or Microsoft place on your site without even purchasing anything.

8.      What are some of the advantages of direct e-mail marketing?

Some advantages of direct e-mail marketing are by sending e-mail to an opt-in audience, advertisers were targeting interested consumers.  Response rates to legitimate, opt-in e-mail campaigns average just over 6%, depending on the targeting and freshness of the list. 

9.      What is the difference between hits and page views? Why are these not the best measurements of Web traffic? Which is the preferred metric for traffic counts?

Hits are number of http requests received by a firm’s server and page views are the number of pages requested by visitors.  These are not the best measurements of Web traffic because a hit does not equal a page.  A single page may account for several hits if the page contains multiple images or graphics.  A single Web site visitor can generate hundreds of hits.

10.  Define CTR, CPM, CPC, and CPA.

CTR is click-through rate which is the percentage of people exposed to an online advertisement who actually click on the banner.  CPM is cost per thousand which is advertiser prays for impressions in 1,000-unit lots.  CPC cost per click which is when an advertiser pays prenegotiated fee for each click an ad receives.  CPA cost per action is when advertisers pays only for those users who perform a specific action.

11.  What are the key attributes of a good domain name?

Key attributes of a good domain name are it should be short, memorable, not easily confused with others, and difficult to misspell. 

12.  What are some of the steps a firm can take to optimize its search engine rankings?

Some of the steps a firm can take to optimize its search engine rankings are is register it with as many search engines as possible, so that a user looking for similar Web sites has a change of coming across the firm’s site.  Ensure that keywords used in the Web site description match keywords likely to be used as search terms by prospective customers.  Place keywords in a Web site’s metatag and page title.  Link the Web site to as many other Web sites as possible, both in-coming links and out-going links. 

13.  List and describe some Web site design features that impact online purchasing.

Some Web site design features that impact online purchasing are one click purchase capability, product list navigation and choice features that save consumers time.

Chapter 6

1.      Other than search engines, what are some of the most popular uses of the Internet?

 Some of the most popular uses of the Internet other than search engines are researching products and services, catching up on news, hobby-related info, seeking health information, and reviewing financial information.

2.      Would you say that the Internet fosters or impedes social activity? Explain your position.

I think that the Internet helps social activity because it allows people to stay connected easier.  With Facebook and e-mail, you can get in touch with about anyone that you wanted to and stay up to date with them.

 

3.      Why would the amount of experience someone has using the Internet likely increase future Internet usage?

The amount of experience someone has using the Internet will increase future Internet usage because the more they know about it now, the easier it will be for them to build on top of that in the future.  The internet is always going to change and if you aren't aware of how to use it now, then as time goes on it will be a harder process for you to learn how to use it.

 

4.      Research has shown that many consumers use the Internet to investigate purchases before actually buying, which is often done in a physical storefront. What implication does this have for online merchants? What can they do to entice more online buying, rather than pure research?Name four improvements Web merchants could make to encourage more browsers to become buyers.

This means that customers are going to research many different websites before actually buying a product.  They could compare them to other competitors to see how their information is laid out, what the price is, how easy it is to order, the reliability of the website, etc.  Four improvements Web merchants could make to encourage more browsers to become buyers are use net for health, use net for news, months on internet, and how much product information they have to share.

 

5.      Name the five stages in the buyer decision process, and briefly describe the online and offline marketing activities used to influence each.

The five stages in the buyer decision process are awareness of need, search for more information, evaluation of alternatives, the actual purchase decision, and post-purchase contact with the firm. Online-awareness of need is targeted banner ads, interstitial, and targeted event promotions.  Search is search engines, online catalogs, site visits, and targeted e-mails.  Evaluation of alternatives is search engines, online catalogs, site visits, product reviews and user evaluations.  Purchase is online promotions, lotteries, discounts, and targeted e-mail.  Post-purchase is communities of consumption, newsletters, customer e-mail, and online updates.  Offline- awareness of need is mass media, tv, radio and print media.  Search is catalogs, print ads, mass media, salespeple, product raters, and store visits.  Evaluation of alternatives is reference groups, opinion leaders, mass media, product raters, and store visits.  Purchase is promotions, direct mail, mass media, and print media.  Post-purchase is warranties, service calls, parts and repair, and consumer groups.
 

6.      What are the components of the core product, actual product, and augmented product in a feature set?

      The core product is the core benefit the customer receives from the product.  The actual product is the set of characteristics designed to deliver the product's core benefits.  The augmented product is a product with additional benefits to customers beyond the core benefits embodied in the actual product.
 

7.      Name some of the drawbacks to the four data mining techniques used in Internet marketing.

     A few of the drawbacks to the four data mining techniques used in Internet marketing are there may be millions of rules, many of them nonsensical, and many others of short-term duration.  The rules need extensive validation and culling.  Also, there are millions of affinity groups and other patterns in the data that are temporal or meaningless.  The difficulty is isolating the valid, powerful patterns in the data and then acting on the observed pattern fast enough to make a sale you would otherwise not have made.
 

8.      Which of the four market entry strategies is most lucrative?

      The most lucrative market entry strategy is to extend their businesses and brands by using a mixed bricks-and-clicks strategy in which online marketing is closely integrated with offline physical stores.

9.      Compare and contrast the four marketing strategies used in mass marketing, direct marketing, micromarketing, and one-to-one marketing.

     One-to-one marketing is segmenting the market based on a precise and timely understanding of an individual's needs, targeting specific marketing messages to these individuals, and then positioning the product vis-a-vis competitors to be truly unique.  Mass marketing is based on national media messages aimed at a single national audience and with a single national price, it is appropriate for products that are relatively simple and attractive to all consumers in a single form.  Direct marketing is based on direct mail or phone messages and aimed at segments of the market likely to purchase and which has little variation in price, is most often used for products that can be stratified into different categories.  Micro marketing is aimed at geographical units or specialized market segments is the first form of true database marketing.
 

810.  What are some of the reasons that freebies, such as free Internet service and giveaways, don’t work to generate sales on a Web site?

       After someone is given a freebie, in order for it to actually work and generate sales on a Web site the customer has to pay for premium or add-on services and hopefully will then pay or all the free riders on the service.  Also, people switch from one free service to another at the very mention of charges, so unless everyone does it; its likely not to work.
 

11.  Why do companies that bundle products and services have an advantage over those that don’t or can’t offer this option?

     Companies that bundle products and services have an advantage over those that don't by if you bundle things, customers are going to be more likely to think "hey, this is a good buy or a good idea" because it is more than one item for a fixed product.