E-commerce 2013, 9e (Laudon/Traver) Chapter 1 The Revolution Is Just Beginning 1) The growth of mobile e-commerce almost doubled from

2011 to 2012. 2) Approximately 80% of adults i the ! ited "tates use a social etwor# o a daily basis. $) A compa y%s o li e i &e tory co trol process is a example of e-busi ess' as opposed to ecommerce. () !bi)uity i creases cog iti&e e ergy outlays. *) The fact that e-commerce is co ducted o the basis of u i&ersal sta dards decreases mar#et e try costs for mercha ts. +) ,rice tra spare cy refers to the ability of mercha ts to segme t the mar#et i to groups willi g to pay differe t prices. -) .ost tra spare cy refers to the ability of co sumers to disco&er the actual costs mercha ts pay for products. 8) .ustomi/atio i &ol&es cha gi g a deli&ered product or ser&ice based upo a co sumer%s prefere ces or past purchasi g beha&ior. 0) 1eb 2.0 describes a set of applicatio s a d tech ologies that e courage a d rely o user- a d co sumer-ge erated i teracti&ity a d co te t. 10) "ocial e-commerce is the largest type of e-commerce. 11) 2-commerce as we # ow it today would ot exist without the 3 ter et. 12) The growth of 42. e-commerce is limited by the fact that co sumers eed to possess a more sophisticated s#ill set tha co sumers who shop offli e. 1$) 3 2011' a ew 3 ter et i &estme t bubble focused primarily o social etwor#s emerged. 1() As eco omists had e &isio ed' prices of products sold o the 1eb are co siste tly lower tha elsewhere' a d the o li e mar#etplace is characteri/ed by decreasi g price dispersio . 1*) The future of e-commerce will i clude a i crease i regulatory acti&ity both i the ! ited "tates a d worldwide. 1+) 1hich of the followi g stateme ts about 3 ter et use i the ! ited "tates i 2012 is not true5 A) "ocial e-commerce ge erated more re&e ue tha local e-commerce. 4) Approximately 1*0 millio users made at least o e purchase o li e. .) Almost *0% of adult 3 ter et users &isited a o li e social etwor# daily. 6) 7rowth rates for 42. e-commerce were higher i the ! ited "tates tha i 2urope.
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1-) 3 2012' roughly 88888888 millio people i the ! ited "tates accessed the 3 ter et &ia mobile de&ices. A) $0 4) +* .) 80 6) 120 18) 1hich of the followi g is not a ma9or busi ess tre d i e-commerce i 2012-201$5 A) :etail e-commerce co ti ues double-digit growth. 4) "mall busi esses a d e trepre eurs are hampered by the risi g cost of mar#et e try caused by i creased prese ce of i dustry gia ts. .) ;aceboo# grows to more tha 1 billio users. 6) "ocial a d mobile ad&ertisi g begi s to challe ge search e gi e mar#eti g. 10) All of the followi g are ma9or tech ology tre ds i e-commerce i 2012-201$ except< A) .loud computi g e ables the creatio of =big data.= 4) Apps create a ew platform for o li e mar#eti g a d commerce. .) The mobile computi g platform begi s to ri&al the ,. platform. 6) :eal-time ad&ertisi g becomes a reality with gai s i computi g power a d speeds. 20) 2-commerce ca be defi ed as< A) the use of the 3 ter et a d the 1eb to tra sact busi ess. 4) the use of a y 3 ter et tech ologies i a firm%s daily acti&ities. .) the digital e ableme t of tra sactio s a d processes withi a orga i/atio . 6) a y digitally e abled tra sactio s amo g i di&iduals a d orga i/atio s. 21) 1hich of the followi g is not a u i)ue feature of e-commerce tech ology5 A) i teracti&ity 4) social tech ology .) global broadcasti g 6) rich ess 22) The i tegratio of &ideo' audio' a d text mar#eti g messages i to a si gle mar#eti g message a d co sumi g experie ce is a example of< A) rich ess. 4) ubi)uity. .) i formatio de sity. 6) perso ali/atio . 2$) 1hich of the followi g )ualities is least li#ely to decrease a co sumer%s search costs5 A) ubi)uity 4) global reach .) i formatio de sity 6) rich ess 2() 1hich of the followi g is the best defi itio of tra sactio cost5 A) the cost of cha gi g prices
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4) the cost of participati g i a mar#et .) the cost of fi di g suitable products 6) the cost mercha ts pay to bri g their goods to mar#et 2*) 3 2012' the world%s o li e populatio was roughly< A) 2$0 millio . 4) 2.$ billio . .) 2$ billio . 6) 2$0 billio . 2+) 1hich of the followi g is not o e of the curre t ma9or social tre ds i e-commerce i 2012201$5 A) "pam decli es as a sig ifica t problem. 4) .o tro&ersy o&er co te t regulatio a d co trols co ti ues. .) 2-boo#s gai wide accepta ce. 6) 3 ter et security co ti ues to decli e. 2-) >etwor# exter alities are related to which of the followi g features of e-commerce tech ology5 A) rich ess 4) i teracti&ity .) u i&ersal sta dards 6) i formatio de sity 28) 2-commerce tech ologies ha&e cha ged the traditio al tradeoff betwee the rich ess a d reach of a mar#eti g message. ,rior to the de&elopme t of the 1eb< A) mar#eti g messages had little rich ess. 4) the smaller the audie ce reached' the less rich the message. .) the larger the audie ce reached' the less rich the message. 6) rich ess e)ualed reach. 20) 1hich of the followi g is not a example of a social etwor#5 A) 1i#ipedia 4) Twitter .) ,i terest 6) ;aceboo# $0) All of the followi g are ma9or busi ess tre ds i e-commerce i 2012-201$ except for< A) the growth of a ew app-based o li e eco omy. 4) the expa sio of the locali/atio of e-commerce. .) the emerge ce of a ew social e-commerce platform. 6) the eclipse of search e gi e mar#eti g by the mobile ad&ertisi g platform. $1) 1hich type of e-commerce is disti guished by the type of tech ology used i the tra sactio rather tha by the ature of the mar#et relatio ship5 A) .o sumer-to-co sumer ?.2.) 4) "ocial e-commerce
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.) @obile e-commerce 6) 4usi ess-to-busi ess ?424) $2) 1hich of the followi g allows you to rate' categori/e' a d share the co te t you fi d o li e5 A) 1ord,ress 4) "tumble!po .) 1i#ipedia 6) 3 stagram $$) 1hich of the followi g describes the basic 1eb policy of large firms duri g the period of i &e tio 5 A) i tegrate social etwor#i g a d mobile platform with 1eb site mar#eti g 4) use 1eb to co ect with suppliers .) i clude additio al cha els to mar#et products 6) mai tai a basic' static 1eb site $() The si/e of the global .2. mar#et i 2012 was arou d< A) A800 millio . 4) A8 billio . .) A80 billio . 6) A800 billio . $*) 3 teracti&ity i the co text of e-commerce ca be described as< A) the ability to physically touch a d ma ipulate a product. 4) the complexity a d co te t of a message. .) the ability of co sumers to create a d distribute co te t. 6) the e abli g of two-way commu icatio betwee co sumer a d mercha t. $+) 1hich of the followi g stateme ts about the 1eb is not true5 A) 3t is the tech ology upo which the 3 ter et is based. 4) 3t was de&eloped i the early 1000s. .) 3t pro&ides access to pages writte i BT@C. 6) 3t pro&ides access to 1eb pages that i corporate graphics' sou d' a d multimedia. $-) 3 2012' there were a estimated 88888888 3 ter et hosts. A) 8 millio 4) 88 millio .) 888 millio 6) 8.88 billio $8) All of the followi g ca be co sidered a precursor to e-commerce except< A) 6>". 4) 4axter Bealthcare%s remote order e try system. .) the ;re ch @i itel. 6) 2lectro ic 6ata 3 tercha ge. $0) 3 the 42. are a' 88888888 was the first truly large-scale digitally e abled tra sactio
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system. A) Telex 4) the 4axter Bealthcare system .) the ;re ch @i itel 6) 263 (0) 2-commerce ca be said to ha&e begu i < A) 108$. 4) 108*. .) 100*. 6) 2001. (1) 4usi ess-to-co sumer ?42.) e-commerce< A) has grow at double-digit rates i 2011 a d 2012. 4) is growi g at a slower rate tha the traditio al retail mar#et. .) is a ma9or part ?o&er $0 perce t) of the o&erall retail mar#et. 6) growth is slowi g as it co fro ts its ow fu dame tal limitatio s. (2) 3 the =bow-tie= a alogy of the structure of the 1eb' =te drils= are< A) pages that li # to the ce ter' but which are ot li #ed to from the ce ter. 4) pages that either li # to or are li #ed from the ce ter. .) pages that do ot li # to the ce ter' but are li #ed to from the ce ter. 6) pages that li # to o e a other without passi g through the ce ter. ($) 1hich of the followi g is not a limitatio o the growth of 42. e-commerce5 A) the sophisticated s#ill set re)uired to use the 3 ter et a d e-commerce systems 4) the persiste t global i e)uality limiti g access to telepho e ser&ice' ,.s' a d cell pho es .) saturatio a d ceili g effects 6) the retre chme t a d co solidatio of e-commerce i to the ha ds of large established firms (() 4y what year is the ! ited "tates 3 ter et household pe etratio rate li#ely to reach the curre t le&el of cable tele&isio pe etratio 5 A) 201* 4) 2018 .) 2022 6) 3t has already reached the le&el of cable tele&isio pe etratio . (*) Arou d what perce tage of 3 ter et users i the ! ited "tates access the 3 ter et through mobile de&ices5 A) $0 4) *0 .) -0 6) 00 (+) 1hich of the followi g is not a characteristic of a perfect competiti&e mar#et5 A) ,rice' cost' a d )uality i formatio are e)ually distributed. 4) A early i fi ite set of suppliers compete agai st o e a other.
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.) .ustomers ha&e access to all rele&a t i formatio worldwide. 6) 3t is highly regulated. (-) All of the followi g were &isio s of e-commerce expressed duri g the early years of ecommerce except< A) a early perfect competiti&e mar#et. 4) frictio -free commerce. .) disi termediatio . 6) fast follower ad&a tage. (8) ! fair competiti&e ad&a tages occur whe < A) o e competitor has a ad&a tage others ca ot purchase. 4) mar#et middleme are displaced. .) i formatio is e)ually distributed a d tra sactio costs are low. 6) firms are able to gather mo opoly profits. (0) The early years of e-commerce were dri&e by all of the followi g factors except< A) a emphasis o exploiti g traditio al distributio cha els. 4) a huge i fusio of &e ture capital fu ds. .) a emphasis o )uic#ly achie&i g a &ery high mar#et &isibility. 6) &isio s of profiti g from ew tech ology. *0) The early years of e-commerce are co sidered< A) the most promisi g time i history for the successful impleme tatio of first mo&er ad&a tages. 4) a eco omist%s dream come true' where for a brief time co sumers had access to all rele&a t mar#et i formatio a d tra sactio costs plummeted. .) a stu i g tech ological success as the 3 ter et a d the 1eb i creased from a few thousa d to billio s of e-commerce tra sactio s per year. 6) a dramatic busi ess success as 8*% of dot-coms formed si ce 100* became flourishi g busi esses. *1) 1hich of the followi g best describes the early years of e-commerce5 A) They were a tech ological success but a mixed busi ess success. 4) They were a tech ological success but a busi ess failure. .) They were a tech ological failure but a busi ess success. 6) They were a mixed tech ological a d busi ess success. *2) Approximately what perce tage of dot-com compa ies formed si ce 100* sur&i&ed as i depe de t compa ies i 20125 A) 10 4) 20 .) $0 6) (0 *$) 1hich of the followi g is a characteristic of the rei &e tio phase of e-commerce5 A) massi&e proliferatio of dot-com start-ups
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4) widespread adoptio of broadba d etwor#s .) rapid growth of search e gi e ad&ertisi g 6) widespread adoptio of co sumer mobile de&ices *() 1hich of the followi g is a characteristic of the co solidatio phase of e-commerce5 A) predomi a ce of pure o li e strategies 4) emphasis o re&e ue growth &ersus profits .) first mo&er ad&a tages 6) shift to a busi ess-dri&e approach **) 1hich of the followi g is not true regardi g e-commerce today5 A) 2co omists% &isio s of a frictio -free mar#et ha&e ot bee reali/ed. 4) .o sumers are less price-se siti&e tha expected. .) There remai s co siderable persiste t price dispersio . 6) The mar#et middleme disappeared. *+) 1hich of the followi g stateme ts is not true5 A) 3 formatio asymmetries are co ti ually bei g i troduced by mercha ts a d mar#eters. 4) 3 termediaries ha&e ot disappeared. .) D&erall tra sactio costs ha&e dropped dramatically. 6) 4ra ds remai &ery importa t i e-commerce. *-) 1hich of the followi g types of mercha ts has the highest share of retail o li e sales5 A) &irtual ?1eb o ly) 4) catalogEcall ce ter .) retail chai 6) co sumer bra d ma ufacturer *8) :etail chai s accou t for arou d 88888888 perce t of o li e retail firm re&e ues. A) 1* 4) $* .) -* 6) 0* *0) D e of the predictio s for the future of e-commerce is that< A) o&erall re&e ues from e-commerce will grow at a a uali/ed rate of about 10 perce t a year through 201+. 4) the first mo&ers from the early years of e-commerce will retai or i crease their mar#et share as they co ti ue to exploit eco omies of scale a d switchi g costs. .) prices will lower e ough to e courage more co sumers to e gage i o li e shoppi g. 6) the umber of o li e shoppers will co ti ue to grow at double-digit rates. +0) 1hich of the followi g is the top-selli g o li e retail category5 A) apparelEaccessories 4) computersEelectro ics .) mass mercha tEdepartme t stores
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6) office supplies +1) 1hich of the followi g is the top o li e retailer ra #ed by o li e sales5 A) Apple 4) Ama/o .) "taples 6) 1almart +2) Abo&e all' e-commerce is a 88888888 phe ome o . A) tech ology-dri&e 8 4) fi a ce-dri&e .) sociological 6) go&er me t-dri&e +$) 1hich busi ess applicatio is associated with the tech ological de&elopme t of local area etwor#s a d clie tEser&er computi g5 A) tra sactio automatio ?e.g.' payroll) 4) des#top automatio ?e.g.' word processi g) .) i dustrial system automatio ?e.g.' supply chai ma ageme t) 6) wor#group automatio ?e.g.' docume t shari g) +() 1hich of the followi g is o e of the three primary societal issues related to e-commerce5 A) liability 4) a o ymity .) e)uity 6) i di&idual pri&acy +*) 1hich of the followi g stateme ts is not true5 A) >o o e academic perspecti&e domi ates research about e-commerce. 4) 3 formatio systems researchers ta#e a purely tech ical approach to e-commerce. .) There are two primary approaches to e-commerce< beha&ioral a d tech ical. 6) @a ageme t scie tists are i terested i e-commerce as a opportu ity to study how busi ess firms ca exploit the 3 ter et to achie&e more efficie t busi ess operatio s. ++) The costs i curred by mercha ts i ha&i g to cha ge product prices ?such as the costs of ree teri g prices i to computer systems) are referred to as 88888888 costs. A swer< me u 6iff< $ ,age :ef< 1( AA."4< :eflecti&e Thi #i g +-) 88888888 refers to a y disparity i rele&a t mar#et i formatio amo g parties i a tra sactio . A swer< 3 formatio asymmetry 6iff< 2 ,age :ef< 1( AA."4< :eflecti&e Thi #i g +8) A? ) 88888888 exte ds the mar#etplace beyo d traditio al bou daries.
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A swer< mar#etspace 6iff< 1 ,age :ef< 1+ AA."4< :eflecti&e Thi #i g +0) The total umber of users or customers a e-commerce busi ess ca obtai is a measure of its 88888888. A swer< reach 6iff< 2 ,age :ef< 1+ AA."4< :eflecti&e Thi #i g -0) 88888888 refers to the complexity a d co te t of a message. A swer< :ich ess 6iff< 2 ,age :ef< 1AA."4< :eflecti&e Thi #i g -1) The targeti g of mar#eti g messages to specific i di&iduals by ad9usti g the message to a perso %s ame' i terests' a d past purchases is called 88888888. A swer< perso ali/atio 6iff< 2 ,age :ef< 18 AA."4< :eflecti&e Thi #i g -2) The most popular ser&ice that ru s o the 3 ter et i frastructure is the 88888888. A swer< 1orld 1ide 1eb' 1eb 6iff< 2 ,age :ef< 2( AA."4< :eflecti&e Thi #i g -$) 3 ter etE1eb tech ology is a&ailable 9ust about e&erywhere a d a ytime. This is # ow as 88888888. A swer< ubi)uity 6iff< 2 ,age :ef< 1+ AA."4< :eflecti&e Thi #i g

-() 88888888 refers to the displaceme t of mar#et middleme . A swer< 6isi termediatio 6iff< 2 ,age :ef< $2 AA."4< :eflecti&e Thi #i g -*) 3 88888888 commerce' i formatio is e)ually distributed' tra sactio costs are low' prices ca be dy amically ad9usted to reflect actual dema d' i termediaries decli e' a d u fair competiti&e ad&a tages are elimi ated. A swer< frictio -free 6iff< $ ,age :ef< $$ AA."4< :eflecti&e Thi #i g -+) A? ) 88888888 occurs whe e&eryo e i a group recei&es &alue because all participa ts use the same tool or product. A swer< etwor# effect 6iff< 2 ,age :ef< $$ AA."4< :eflecti&e Thi #i g --) A firm that is first to mar#et i a particular area a d that mo&es )uic#ly to gather mar#et share is referred to as a? ) 88888888. A swer< first mo&er 6iff< 2 ,age :ef< $$ AA."4< :eflecti&e Thi #i g -8) The first e&olutio ary phase of e-commerce' from 100* to 2000' characteri/ed as tech ology-dri&e a d u go&er ed' was a period of 88888888. A swer< i o&atio ' i &e tio 6iff< $ ,age :ef< $1 AA."4< :eflecti&e Thi #i g -0) A eco omist is most li#ely to be i terested i a? ) 88888888' rather tha tech ical' approach to studyi g e-commerce. A swer< beha&ioral 6iff< 2 ,age :ef< *0 AA."4< :eflecti&e Thi #i g 80) Ta gible wor#s of the mi d such as music' boo#s' a d &ideos are called 88888888. A swer< i tellectual property 6iff< 2 ,age :ef< (+ AA."4< :eflecti&e Thi #i g

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81) 6efi e the terms e-business a d e-commerce a d explai the differe ce. 1hat is the #ey factor i determi i g if a tra sactio is =commerce=5 A swer< 2-busi ess refers primarily to digitally e abled tra sactio s withi a firm' i &ol&i g i formatio systems u der the co trol of the firm. 2-busi ess does ot i clude commercial tra sactio s i which a excha ge of &alue across orga i/atio al bou daries ta#es place. 2commerce' o the other ha d' is a re&e ue-ge erati g operatio . The #ey factor i determi i g if a tra sactio is commerce therefore is =excha ge of &alue.= 3 order to be e-commerce' a tra sactio must i clude the direct productio of re&e ue. 6iff< 1 ,age :ef< 1$ AA."4< A alytic "#ills 82) 3de tify the eight u i)ue features of e-commerce tech ology a d explai how these features set e-commerce apart from more traditio al ways of co ducti g commercial tra sactio s. A swer< The eight u i)ue features of e-commerce tech ology are ubi)uity' global reach' u i&ersal sta dards' rich ess' i teracti&ity' i formatio de sity' perso ali/atio Ecustomi/atio ' a d social tech ology. The fact that e-commerce is a&ailable early e&erywhere' at a y time' ?ubi)uity) exte ds the mar#etplace beyo d traditio al bou daries a d remo&es it from a temporal a d geographic locatio . A mar#etspace is created i which shoppi g ca ta#e place a ywhere' e ha ci g co sumer co &e ie ce a d reduci g shoppi g costs' whereas i traditio al commerce the mar#etplace is a physical place you must &isit i order to tra sact. The global reach of ecommerce mea s that commerce is e abled across atio al a d cultural bou daries as e&er before' with pote tially billio s of co sumers a d millio s of busi esses worldwide i cluded i the mar#etspace. Traditio al commerce' by co trast' is local or regio al i &ol&i g local mercha ts or atio al mercha ts with local outlets. ! i&ersal sta dards ?o e set of tech ical media sta dards) also allow for the seamless e ableme t of global commerce. 3 co trast' most traditio al commerce tech ologies differ from o e atio to the ext. 3 traditio al mar#ets' atio al sales forces a d small retail stores ca pro&ide a complex a d co te t-rich message. Bowe&er' there is ge erally a trade-off betwee the rich ess of the message a d the umber of co sumers who ca be reached with the mar#eti g message. 3 e-commerce the trade-off is o lo ger ecessary. A i formatio rich e &iro me t is exte ded globally. ! li#e a y other commercial tech ology of the twe tieth ce tury' except perhaps the telepho e' e-commerce tech ologies are i teracti&e' allowi g for two-way commu icatio betwee the seller a d the co sumer. 2-commerce tech ologies reduce i formatio collectio ' storage' processi g' a d commu icatio costs thereby greatly i creasi g the pre&ale ce' accuracy' a d timeli ess of i formatio . This i formatio de sity ?i formatio that is more ple tiful' cheaper' a d of higher )uality) sets e-commerce apart from all other traditio al methods of co ducti g tra sactio s. 2commerce tech ologies also permit the perso ali/atio a d customi/atio of mar#eti g messages o a le&el that was impossible with pre&ious commerce tech ologies. @ar#eti g messages ca be targeted to specific i di&iduals based o their i terests a d past purchasi g beha&ior' a d the product or ser&ice ca be altered to suit a customer%s prefere ces a d prior beha&ior. "ocial tech ology allows users to easily ge erate a d share co te t a d permits a ma y-to-ma y model of mass commu icatio s that is differe t from pre&ious tech ologies. This supports the creatio of ew busi ess models a d products that support social etwor# ser&ices. 6iff< 2 ,age :ef< 1(-10 AA."4< A alytic "#ills

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8$) Bas e-commerce cha ged the mar#eti g of goods5 3f so' how5 A swer< 2-commerce has greatly cha ged the mar#eti g of goods. 4efore e-commerce was de&eloped' the mar#eti g a d sale of goods was a mass-mar#eti g a d sales force-dri&e process. @ar#eters &iewed co sumers as passi&e targets of ad&ertisi g campaig s. 2-commerce has brought ma y ew possibilities for mar#eti g. The 3 ter et a d 1eb ca deli&er' to a audie ce of millio s' rich mar#eti g messages with text' &ideo' a d audio i a way ot possible with traditio al commerce tech ologies such as radio' tele&isio ' or maga/i es. @ercha ts ca target their mar#eti g messages to specific i di&iduals by ad9usti g the message to a perso %s ame' i terests' a d past purchases. 3 additio ' much i formatio about the co sumer ca be gathered from the 1eb site the co sumer &isits. 1ith the i crease i i formatio de sity' a great deal of i formatio about the co sumer%s past purchases a d beha&ior ca be stored a d used by o li e mercha ts. The result is a le&el of perso ali/atio a d customi/atio u thi #able with existi g commerce tech ologies. 6iff< 2 ,age :ef< 1(-10 AA."4< A alytic "#ills 8() 3de tify a 1eb 2.0 applicatio or site' describi g the )ualities that ma#e it a 1eb 2.0 applicatio or site. 6oes the site you selected ha&e a y busi ess &alue5 1hat is it5 A swer< "tude t a swers will &ary. A example is< FouTube ca be co sidered a example of a 1eb 2.0 site because its co te t is ge erated by users rather tha created by the site ow ers. Dther )ualities that ma#e this a 1eb 2.0 site i clude the i teracti&ity amo g users that is allowed' such as comme ts a d &ideo replies' shari g play lists' e-maili g li #s to &ideos' a d more. FouTube has treme dous busi ess &alue because it has so ma y &isitorsGit is o e of the most popular desti atio sites o the 3 ter et with o&er 1*8 millio u i)ue &isitors i April 2012. 6iff< 2 ,age :ef< 10 AA."4< A alytic "#ills 8*) Cist a d briefly explai the mai types of e-commerce. A swer< The mai types of e-commerce are 4usi ess-to-.o sumer ?42.)' i which o li e busi esses attempt to reach i di&idual co sumersH 4usi ess-to-4usi ess ?424)' i which busi esses focus o selli g to other busi essesH .o sumer to .o sumer ?.2.)' which pro&ides a mar#et i which co sumers ca sell goods to each otherH mobile e-commerce ?m-commerce)' which refers to the use of wireless digital de&ices to e able 1eb tra sactio s' social ecommerce' which is commerce e abled by social etwor#s a d o li e social relatio shipsH a d local e-commerce' which is e-commerce that is focused o e gagi g the customer based o his or her geographical locatio . 6iff< 2 ,age :ef< 21-2$ AA."4< A alytic "#ills

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8+) 6escribe the &isio s a d forces duri g the early days of e-commerce i terms of what the &arious i terest groups hoped for< the computer scie ce a d i formatio tech ology peopleH the eco omistsH a d the e trepre eurs' &e ture capitalists a d mar#eters. 2xplai whether what each group e &isio ed came to fruitio a d why or why ot. A swer< The computer scie tists a d i formatio tech ologists% &isio was of a u i&ersal commu icatio s a d computi g e &iro me t that e&eryo e could access with i expe si&e computers. Their i terest was i creati g a &ast worldwide i formatio collectio from libraries' u i&ersities' go&er me ts' a d scie tific i stitutio s that was u go&er ed by a y atio a d free to all. They belie&ed that the 3 ter et' a d by exte sio ' the e-commerce that operated withi the i frastructure' should be self-go&er ed a d self-regulated. The eco omists e &isio ed a ear-perfect competiti&e mar#et where price' cost' a d )uality i formatio are e)ually distributed. The mar#etspace would i clude a early i fi ite umber of suppliers with e)ual access to hu dreds of millio s of customers' but where those co sumers i tur would ha&e access to all rele&a t mar#et i formatio Ga hypercompetiti&e mar#et. @ar#et middleme would disappear' resulti g i lowered costs to co sumers. This i te sely competiti&e' disi termediated e &iro me t with lowered tra sactio costs would elimi ate product bra ds as well as the possibility of mo opoly profits based o bra ds' geography' or special access factors. ! fair competiti&e ad&a tages a d the ability to reap retur s o capital that far exte ded a fair mar#et rate of retur would be elimi ated. Their &isio was called frictio -free commerce. The e trepre eurs' &e ture capitalists' a d mar#eters i tur saw e-commerce as a opportu ity to ear great retur s o i &ested capital. They saw the e-commerce mar#etspace a d tech ologies as a powerful method of i creasi g their ability to e&e more precisely segme t the mar#et i to groups with differe t price se siti&ities. They belie&ed that huge profits could be gar ered by firms that )uic#ly achie&ed high mar#et &isibility a d that these successful first mo&ers would become the ew i termediaries of e-commerce' displaci g the traditio al retail mercha ts a d co te t suppliers. The computer scie tists% &isio of a u go&er ed 3 ter et has ot come to fruitio as go&er me ts ha&e i creasi gly sought to regulate a d co trol the tech ology to e sure that positi&e social be efits result. The eco omists% &isio has also for the most part ot materiali/ed for a &ariety of reaso s. .o sumers ha&e pro&e to be less price se siti&e tha expected a d the importa ce of bra d ames to co sumers% perceptio s of )uality a d ser&ice has bee exte ded rather tha decreased or elimi ated. 2 trepre eurs ha&e disco&ered ew methods for differe tiati g products a d ser&ices. >ew i formatio asymmetries are co ti ually bei g i troduced by mar#eters. 6isi termediatio has also ot occurred as ew middleme emerged. The &isio s of the e trepre eurs' &e ture capitalists' a d mar#eters ha&e also largely ot come to fruitio as the first mo&ers from the early years of e-commerce o ly rarely succeeded. The fast follower large traditio al firms with the resources eeded to de&elop mature mar#ets are displaci g most of the &e ture capitalist bac#ed e trepre eurs. 6iff< 2 ,age :ef< $2-(0 AA."4< A alytic "#ills

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