Chapter 1
L Describe three factors that would cause a company to continue doing business in traditional ways and avoid electronic commerce.
Traditional commerce is a better way to sell the items or services when personal selling skills are a factor, as in commercial real estate sales; or when the condition of the products is difficult to determine without making a personal inspection, as in the purchases of high-fashion clothing, antiques, or perishable food products?
2.What are transaction costs and why are they important?
Transaction costs are the total of all costs that a buyer and seller incur as they gather information and negotiate a purchase-sale t「ansaction.
6.How might a manager use SWOT analysis to identify new applications for electronic
commerce in their strategic business units?
In SWOT analysis you list st「engths and weaknesses of the business unit and then idenlify opportunities presented by the markets of the business unit and threats posed by the competitors of the business unit? This is accomplished by analyzing all the business operations into value adding activities and supporting activities.
7.In about 200 words, explain the difference between language translation and language
localization*
Language translation is the process of restating some text written in one Ianguage in a different language. In other words, to translate is examine some original text, written in what is called the source language, and to write a corresponding text in different language, called the target language, with the goal of preserving the tone and meaning of the original text.
Language localization is a translation that considers multiple elements of the local environment, such as business and cultural practices, in addition to local dialect variations in the language. The cultural element is very important since it can affect—and sometimes completely change—the user's interpretation of text.
8.In a paragraph^ describe the advantages of a flat-rate telecommunications access system
for countries that want to encourage electronic commerce.
In a flat-rate access system, the consumer or business pays one monthly fee for unlimited telephone line usage?Although many factors contributed to the rapid rise of U.S. electronic commerce, many industry analysts agree that flat-rate access has been one of the most important factors? As more European telecommunications providers have begun to offer flat-rate access, electronic commerce in those countries has increased dramatically.
1.You have decided to buy a new laser printer for your home office. List specific activities
that you must undertake as you gather information about printer capabilities and features.
Use the CompUSA, https://www.doczj.com/doc/cc7641594.html,, Office Depot, OfficeMax, and Staples Web sites to gather information. Write a short summary of the process you undertook so that others who plan to undertake a similar task can use your information.
Answers will vary, but should include the following:
?Identify a search engine
?Visit Websites for information on features, attributes and benefits
?Interrogate Websites for additional information
?Place an order
?Inquire about shipping/payment terms
2.Choose one of the Web sites listed in the previous question and identify three ways in
which the company has reduced its transaction costs by using a Web site to provide
information about printers. List these three transaction cost reduction elements and write a paragraph in which you discuss one transaction cost reduction opportunity that you believe the company missed.
Answers will vary, but may include the following:
?Description of the item
?Employees no longer have to search for prices
?Delivery optio ns
Staples could include informational links such as: laser printer buying guide or laser printer mainte nan ce.
Chapter 2
1.What were the main forces that led to the com mere i al i zat i on of the Internet?
Summarize your answer in about 100 words.
The In ternet was born out of the need for the U.S. government, specifically the Defense Department, to communicate with its weapons installation distributions all over the world. This idea, in the hands of researchers and scientists evolved even further allowing those researchers the capability to communicate with their colleagues at other universities. As personal computers became more popular and affordable, companies increasingly wanted to construct their own networks. This all led to the dramatic increase in business activity, but the commercialization of the Internet was really spurred by the emergence of the World Wide Web ? The software that allowed computers to communicate while on the Inter net is still the largest category of traffic today?
2.Describe in two paragraphs the origins of HTML. Explain how markup tags work
in HTML, and describe the role of at least one person involved with HTMUs
development.
SGML is a software language for describing electronic documents and how they should be formatted as well as displayed. This language is the precursor of HTML, which is used by all documents on the Web? Robert Calliau and Tim Berners-Lee independently invented HTML at the CERN research center in Switzerland. HTML's document type definition is easier for users to learn and use for describing formatting and displaying electronic documents by Meta tag codes ?
3? In about 200 words, compare the POP e-mail protocol to the IMAP e-mail protocoL Describe situations in which you would prefer to use one protocol or the other and explain the reasons for your preference.
A POP message can tell the e-mail computer to send mail to the user's computer and to delete it from the e-mail computer; to send mail to the useFs computer and do not delete it; or simply to ask whether new mail has arrived. IMAP protocol performs the same basic functions as POP, but includes additional features that can instruct the e-mail server to send only selected messages to the die nt instead
of all messages. It also allows the user to view only the headers and the e-mail sender's name before deciding to download the entire message. One would choose IMAP 讦they have a need for a more robust system that allows them to access their email from different computers at different times.
1? Bridgewater Engineering Company (BECO)，a privately held machine shop, makes industrial-quality^ heavy-duty machinery for assembly lines in other factories. It sells its presses, grinders, and milling equipment using a few inside salespeople and telephones.
This traditional approach worked well during the company^ start-up years, but BECO is getting a lot of competition from abroad. Because you worked for the company during the summers of your college years, BECO^s president, Tom Dalton, knows you and realizes that you are Web savvy. He wants to form close relationships with the steel companies and small parts manufacturers that are BECO's suppliers so that he can tap into their ordering systems and request supplies when he needs them. Tom wants you to investigate how he can use the Internet to set up such electronic relationships. Use the Web and the links in the Online Companion to locate information about extranets and VPNs. Write a report that briefly describes how companies use extranets to link their systems with those of their suppliers, then write an evaluation of at least two companies (using information you have gathered in your Web searches) that could help develop an extranet that would work for Tom. Close the report with an overview of how BECO could use VPN technologies in this type of extranet. The three parts of your report should total about 700 words.
Responses can vary significantly in this exercise. Any recommendation for systems development should include the infrastructure required to support a supply-chain management extranet, as well as the costs and the anticipated benefits? The infrastructure for a private network requires a
TCP/IP network, Web authoring software, and a firewall server. The benefits include lower com mun ication costs, and more timely and accessible in formation, as well as convenient use?
2. Frieda Bannister is the IT manager for the State of lowa^s Department of Transportation
(DOT). She is interested in finding ways to reduce the costs of operating the DOT，s
vehicle repair facilities. These facilities purchase replacement parts and repair supplies for all of the staters cars, trucks, construction machinery^ and road maintenance equipment Frieda has read about XML and thinks that it might help the DOT send orders to its many suppliers throughout the country more efficiently. Use the Online Companion links, the Web, and your library to conduct research on the use of XML in state, local, and federal government operations. Provide Frieda with a report of about 1000 words that includes sections that discuss what XML is and explain why XML shows promise for the ordering application Frieda envisions. Your report should also identify other DOT business
processes or activities that might benefit from using XML. The report should also include a summary of the main disadvantages of using XML today for integrating business
transactions. End the report with a brief summary of how the W3C Semantic Web project results might help the DOT operate more efficiently in the future.
Responses should include the following points:
■XML uses markup tags to describe the meaning or semantics of the text.
■XML records are embedded in HTML documents.
■With XML, tags can be created that identify all the record details for the ordering application that Frieda envisions.
■The extensibility of XML is also its weakness. Sharing data across organizations means that the organizations must use the same tag names? For example, Frieda's organization might create a tag called ,,PurchaseOrderNumber,\ and one of her suppliers might call the same item
H0rderNum H.
■The W3C Semantic Web will allow XML tags to be read by software agents, which will result
in better, less-timely searching on the Web for information. This would allow the DOT to
research pricing, availability, etc. of parts from suppliers?
Chapter 3
L Write a paragraph in which you describe the conditions under which a Web site can hope to become profitable if it relies exclusively on advertising revenue^ In a second paragraph, provide an example of a company not mentioned in the chapter that is using the
advertising-supported model and that is likely to be successful in the long run. Explain why you think it will succeed.
A Web site that relies exclusively on advertising revenues must contend with two major problems.
First, no consensus has emerged on how to measure and charge for site views and the second problem is that very few Web sites have sufficient numbers of visitors to interest kirge advertisers?To be successful using the advertising-supported revenue model exclusively, a Web site must be large search engine, because they generate sufficient traffic to be profitable. Another alternative is to become a site that targets niche markets, for example employment-advertising sites.
2.Describe two possible service-for-fee offerings that might become available to
users of Internet-enabled wireless devices (such as PDAs or mobile phones) in the near future. Write one paragraph for each service in which you outline the profit potential and risk of losses for each.
Two possible fee-for-service offerings that might become available are medical and legal services. The profit potential for these services would be higher than the traditional brick and mortar services offered. There are limitations placed on these services because of licensure issues and dispensing legal and medical advice over the Internet is still a major hurdle. As technology and the Internet mature, it will be possible to offer these services offer the Internet.
3.In two paragraphs, explain why a customer-centric Web site design is so
important, yet is so difficult to accomplish*
An important part of a successful electronic business operation is a Web site that meets the needs of potential customers. It is a significant challenge however, to design an effective website that introduces the company to different audiences
(shareholders, the financial community, suppliers, potential alliance partners,
potential customers, current customers and so on) with very different interests.
4.Many real estate agents today have Web sites that list the properties they have for sale.
These agents also advertise the properties in classified newspaper ads and sometimes in television ads. Write three paragraphs in which you briefly describe the things that real estate agents can best accomplish through (1) their Web sites, (2) mass media advertising, and (3) personal contact
Responses may be similar to the following:
Web sites: Olfer mortgage loan seekers online credit review and decisions within minutes?Mass
media advertising: Offer property listings.
Personal contact: Provide more detailed information about the property and about obtaining
mortgtiges,
L Evaluate the usability of two Web sites that sell large-screen televisions. A list of links to companies that sell this product is included in the Online Companion for this exercise, but you may use other sites if you wish. In your evaluation^ compare the sites on how easy it is to learn about the product and purchase the products Your report should include a
section of about 200 words in which you describe the criteria you used in your evaluation,
a section of about 300 words that summarizes your findings, and a section of about 100
words in which you present your conclusion.
Criteria that can be used to evaluate the Web sites in elude:
?Clarity of product information
?Prices relative to other online merchants
?Overall look and design
?Charges stated clearly before order submission
?Variety of shipping options
?Shipping charges
Chapter 4
L In about 600 words, explain the differences between customer acquisition and retention and outline two marketing strategies that would help a company accomplish each of these two objectives. Be sure to present facts and logical arguments that support the use of each
strategy for each objective.
Customer retention is about making sure existing customers keep buying from you. On the Net, customer retention also means making sure your site visitors keep returning. Customer acquisition implies attracting new visitors to your Web site.
2. Select a retail store with which you are familiar that has a Web site on which it sells
products or services similar to those it sells in its physical retail stores. Explore the Web site and examine it carefully for features that indicate the level of service it provides. Using your experience in the physical store and your review of the Web site, write a 200-word evaluation of the company，s touchpoint consistency.
Responses will vary but a review should consider the following:
The goal of providing the same quality of service is known as touchpoint consistency? The five levels are: awareness (customers who recognize the name of the company or its products),
exploration (potential customers learning more about a company's products and services),
familiarity (customers who have completed several transactions and are aware of company policies), commitment (customers with preferences for the product; these customers are loyal and are willing to tell other potential customers), and separation (customers that are leaving, or separating, from the company for any reason).
3.Many people have strong negative reactions to pop-up9 pop-behind^ interstitial^ and rich
media ads. Write a 200-word letter to the editor of an Internet industry magazine in which you explain, from the advertiser^ viewpoint, why these ads can be effective advertising media.
Responses will vary, but the students might discuss how pop-behind ads remain visible after the
browser has closed and keeps that information fresh in the user，s mind. In addition, a good point to bring up is that unlike pop-up ads, they do not cover the browser window?
1.Visit the RedEnvelope Web site to examine how that company implements occasion
segmentation. Write a report of no more than 200 words in which you describe two clear examples of occasion segmentation on the site.
Answers will vary, but Red Envelope has a section that displays various holidays, such as spring, Easter, and birthdays. Students should discuss the details of these different occasions.
2.Marti Baron operates a small Web business, The Cannonball, that sells parts, repair kits,
books, and accessories to hobbyists who restore antique model train& Many model train hobbyists and collectors have created Web sites on which they share photos and other information about model trains. Marti is interested in creating an affiliate marketing
program that would allow those hobbyists to place links on their sites to The Cannonball and be rewarded with commissions on sales that result from visitors following those links.
Examine the services offered by Be Free, Commission Junction, LinkShare, and any other affiliate program brokers you can find on the Web. Recommend at least one affiliate
program broker that would be a good fit for Martins business. In about 500 words, explain your recommendation. Be sure to consider the characteristics of Marti's business in your analysis*
The students should search different program brokers and try to find one that already deals in hobbies and collectibles. Be Free would be a good fit, since it caters to smaller businesses and is scalable as well?