MISY 5350 - Exam 1 | questions and answers with complete solution

MISY 5350 - Exam 1 | questions and answers with complete solution Formal definition of e-commerce - the use of the internet, the web and mobile apps and browsers running on mobile devices to transact business. More formally, digitally enabled commercial transactions between and among organizations and individuals Definition of e-business - the digital enabling of transactions and processes within a firm, involving information systems under the control of the firm Example of e-business - a company's online inventory control mechanism Digital commerce - same as e-commerce Information asymmetry - any disparity in relevant market information among parties in a transaction Unique features of e-commerce technology - 1. Ubiquity 2. Global reach 3. Universal standards 4. Information richness 5. Interactivity 6. Information density 7. Personalization/customization 8. Social technology Ubiquity - -available just about everywhere, at all times -reduces transactions costs (the costs of participating in a market) -lowers the cognitive energy (the mental effort required to complete a task), to transact in a marketspace (a marketplace (physical place you visit in order to transact) extended beyond traditional boundaries and removed from a temporal and geographic location) -E-commerce technology is available everywhere, anytime Global Reach - -The total number of users or customers an e-commerce business can obtain -The technology reaches across national boundaries, around the earth Universal Standards - -standards that are shared by all nations around the world - the unit technical standards of e-commerce greatly lower market entry costs (cost merchants pay just to bring their goods to market) -for consumers, reduced search costs ( the error required to find suitable products)