Test Bank For Electronic Commerce 12th Edition By Gary
Schneider 9781305867819 Chapter 1- 12 Complete Guide .
What is commerce? - ANSWER: A negotiated exchange of valuable objects or services between at
least two parties and includes all activities that each of the parties undertakes the complete the
transaction.
What is a "bricks and mortar" operation? - ANSWER: Is the traditional way of conducting business
without necessarily making use of electronic means
But then a step above, when businesses have both the physical stores as well as online presence? -
ANSWER: Bricks and clicks
What is the third type of electronic business that is conducted exclusively online? - ANSWER: Pure
play, when the business's only way of interacting with customers is online
What is an example of pure play? - ANSWER: A good example of a pure play e- commerce player in
South Africa is Takealot.com. Many retailers such as Woolworth and Pick 'n Pay, most fast food
restaurants can be regarded as bricks and clicks.
What allowed for E-Business to be born? - ANSWER: Advent of the internet
What is E-Commerce? - ANSWER: Newest and most innovative type of commerce. It involves online
commercial trading between businesses and consumers. Because the internet never closes,
eCommerce can occur at any time. Many businesses have seen their profits greatly increase by
opening eCommerce sites, and some, such as Amazon.com, rely entirely on online sales.
What is Electronic Business? - ANSWER: Electronic Business (E-Business) refers to the use of IT in any
aspect of business. It includes buying and selling (commerce) but also other supporting processes
such as the management of production, inventory, risk, finance, HR etc. It is therefore a superset
category that included e-commerce.
What two perspectives can commerce be viewed from? - ANSWER: The buyer's viewpoint
The seller's viewpoint
What are business processes? - ANSWER: Business processes are really the activities involved in
conducting commerce.
What are examples of business processes - ANSWER: Transferring funds
Placing orders
Sending invoices
Shipping goods to customers etc.
From the buyers perspective what does commerce involve? - ANSWER: Identify a specific need
Search for products or services that will satisfy
the specific need
Select a vendor
Negotiate a purchase transaction including
Delivery logistics, inspection, testing, and acceptance
Make payment
From the sellers perspective, what does commerce involve? - ANSWER: Conduct market research to
identify needs
, Create a product or service to meet those needs
Advertise and promote the product or service
Negotiate a sales transaction including delivery
logistics, inspection, testing, and acceptance
Ship goods and invoice the customer
Receive and process customer payments
Provide after sales support and maintenance
What are the 9 basic types of online transactions related to e-Commerce? - ANSWER: Business-to-
Business (B2B)
Business-to-Consumer (B2C)
Business-to-Government (B2G)
Consumer-to-Consumer (C2C)
Consumer-to-Business (C2B)
Consumer-to-Government (C2G)
Government-to-Government (G2G)
Government-to-Consumer (G2C)
Government-to-Business (G2B)
What do each of these categories represent? - ANSWER: A different purchasing dynamic.
What is channel compression also known as? - ANSWER: Disintermediation
What is channel expansion also known as? - ANSWER: Intermediation
What can e-commerce do in general? - ANSWER: Can either compress or expand the number of
intermediaries between the consumer and the product seller.
What causes channel expansion? - ANSWER: There are a number of layers involved of other
businesses in the supply chain.
What is an example of channel expansion? - ANSWER: If you wanted to buy a good today, say a an HP
laptop, you do not necessarily buy it directly from the seller (HP). You buy if from an intermediary of
some sort, say Incredible Connections. Incredible Connections probably bought it from another
wholesale company which buys laptops from HP.
What are the benefits and disadvantages of channel expansion? - ANSWER: Good for intermediaries
but adds an additional cost to the consumer
What is the most common practice and give an example? - ANSWER: Recently one of the most
common practice is that of companies such as Apple selling their products directly online which
eliminates intermediaries.
What is the most popular type of online transaction? - ANSWER: Business-to-consumer (B2C) e-
business
What are the 5 different business models of B2C? - ANSWER: Online retailing (most common)
Infomediary
Content Providers
Online Community
Infrastructure Provider Model
What is online retailing? - ANSWER: It's the simple/basic offering of products or services online.
What is an example of online retailing in South Africa? - ANSWER: Takealot
Schneider 9781305867819 Chapter 1- 12 Complete Guide .
What is commerce? - ANSWER: A negotiated exchange of valuable objects or services between at
least two parties and includes all activities that each of the parties undertakes the complete the
transaction.
What is a "bricks and mortar" operation? - ANSWER: Is the traditional way of conducting business
without necessarily making use of electronic means
But then a step above, when businesses have both the physical stores as well as online presence? -
ANSWER: Bricks and clicks
What is the third type of electronic business that is conducted exclusively online? - ANSWER: Pure
play, when the business's only way of interacting with customers is online
What is an example of pure play? - ANSWER: A good example of a pure play e- commerce player in
South Africa is Takealot.com. Many retailers such as Woolworth and Pick 'n Pay, most fast food
restaurants can be regarded as bricks and clicks.
What allowed for E-Business to be born? - ANSWER: Advent of the internet
What is E-Commerce? - ANSWER: Newest and most innovative type of commerce. It involves online
commercial trading between businesses and consumers. Because the internet never closes,
eCommerce can occur at any time. Many businesses have seen their profits greatly increase by
opening eCommerce sites, and some, such as Amazon.com, rely entirely on online sales.
What is Electronic Business? - ANSWER: Electronic Business (E-Business) refers to the use of IT in any
aspect of business. It includes buying and selling (commerce) but also other supporting processes
such as the management of production, inventory, risk, finance, HR etc. It is therefore a superset
category that included e-commerce.
What two perspectives can commerce be viewed from? - ANSWER: The buyer's viewpoint
The seller's viewpoint
What are business processes? - ANSWER: Business processes are really the activities involved in
conducting commerce.
What are examples of business processes - ANSWER: Transferring funds
Placing orders
Sending invoices
Shipping goods to customers etc.
From the buyers perspective what does commerce involve? - ANSWER: Identify a specific need
Search for products or services that will satisfy
the specific need
Select a vendor
Negotiate a purchase transaction including
Delivery logistics, inspection, testing, and acceptance
Make payment
From the sellers perspective, what does commerce involve? - ANSWER: Conduct market research to
identify needs
, Create a product or service to meet those needs
Advertise and promote the product or service
Negotiate a sales transaction including delivery
logistics, inspection, testing, and acceptance
Ship goods and invoice the customer
Receive and process customer payments
Provide after sales support and maintenance
What are the 9 basic types of online transactions related to e-Commerce? - ANSWER: Business-to-
Business (B2B)
Business-to-Consumer (B2C)
Business-to-Government (B2G)
Consumer-to-Consumer (C2C)
Consumer-to-Business (C2B)
Consumer-to-Government (C2G)
Government-to-Government (G2G)
Government-to-Consumer (G2C)
Government-to-Business (G2B)
What do each of these categories represent? - ANSWER: A different purchasing dynamic.
What is channel compression also known as? - ANSWER: Disintermediation
What is channel expansion also known as? - ANSWER: Intermediation
What can e-commerce do in general? - ANSWER: Can either compress or expand the number of
intermediaries between the consumer and the product seller.
What causes channel expansion? - ANSWER: There are a number of layers involved of other
businesses in the supply chain.
What is an example of channel expansion? - ANSWER: If you wanted to buy a good today, say a an HP
laptop, you do not necessarily buy it directly from the seller (HP). You buy if from an intermediary of
some sort, say Incredible Connections. Incredible Connections probably bought it from another
wholesale company which buys laptops from HP.
What are the benefits and disadvantages of channel expansion? - ANSWER: Good for intermediaries
but adds an additional cost to the consumer
What is the most common practice and give an example? - ANSWER: Recently one of the most
common practice is that of companies such as Apple selling their products directly online which
eliminates intermediaries.
What is the most popular type of online transaction? - ANSWER: Business-to-consumer (B2C) e-
business
What are the 5 different business models of B2C? - ANSWER: Online retailing (most common)
Infomediary
Content Providers
Online Community
Infrastructure Provider Model
What is online retailing? - ANSWER: It's the simple/basic offering of products or services online.
What is an example of online retailing in South Africa? - ANSWER: Takealot
