Business 340 – Information Systems in Business
Exam 3 Study Guide
Chapter 9: E-Commerce:
Digital Markets, Digital Goods-
Digital goods are goods that can be delivered over a digital network. Music
tracks, video, software, news paper, magazine, etc.
Digital markets are
said to be more transparent than traditional markets.
They are very flexible
and efficient, with reduced search and transaction costs, lower menu
costs, and the ability to change prices dynamically based on market
They bypass intermediaries, such as retail outlets.
Unique features of e-commerce (list and define each)-
The use of the
Internet and the Web to transact business.
About digitally enabled
commercial transactions between and among organizations.
1) Ubiquity- available everywhere: work, home, or mobile devices
Reduces transaction costs and time spent making purchase.
*Martketspace- extended beyond traditional boundaries and removed
from a temporal and geographic location.
2) Global Reach- Reaches across national boundaries
3) Universal Standards- On set of tech standards- INTERNET
lower market entry costs- the cost that marketers have to
pay to make goods available and reduces the SEARCH COST for
4) Richness- Video, audio, and txt messages-
5) Interactivity- The tech. works through interaction with the user-
makes consumer a co-participant in the process of delivering goods to
6) Personalization/Customization- allows personalized messages to be
delivered to other individuals or groups. Customization- changing the
delivered product or service based on a users prior behavior.
7) Information Density- The technology reduces information costs and
Currency, accuracy, and timeliness improve greatly.
Information is cheap and more accurate.
*Price Transparency- refers to the ease with which consumers can find
out the variety of pries in a market.
*Cost Transparency- the ability to discover the actual costs merchants pay
*Price discrimination- selling the same goods, to different targeted groups
at different prices.
E-Commerce models (B2C, C2C, B2B): (definition, largest, etc.)-
1) B2C- retailing products and services to individual shoppers.
Example: BarnesandNoble.com- sells books, etc. to consumers.
2) B2B- involves sales of goods and services among businesses.
Milacrons Web site for selling machinery, tools, supplies, and service to
companies engages in plastic processing is an example
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