DQ chapter 4
1. Discuss the different types of e-commerce.
E-commerce can be characterized by noting what entities are involved. Business-to-business (B2B)
concerns businesses working together to allow one to receive what it needs as inputs from another.
Business to consumer (B2B) is the retail activity. Here companies use electronic means to deliver goods
and services to consumers. Consumer-to –consumer (C2C) occurs when consumers can sell directly to
each other, such as on the auction site, eBay. Peer-to-peer (P2P) links users, allowing them to share
information. Finally, m-commerce involves providing e-commerce access using wireless technology.
2. Explain the different revenue models used in e-commerce.
Operators of e-commerce web sites can support their activities using one or more of several revenue
models. A site that attracts users and then displays advertisements from other businesses is using the
advertising revenue model. A site that charges a fixed periodic fee for access to its content is using a
subscription revenue model. Some sites charge a fee for a completed transaction, such as a stock trade.
This is the transaction fee model. Companies that earn directly from what customers buy use the sales
revenue model. Finally, a site may earn its revenue by referring visitors to other sites. This is the affiliate
model.
3. Give two examples from the Internet for each of the different revenue models used in e-commerce.
Revenue Model Examples
Advertising Yahoo.com, Mail.com
Subscription The Wall Street Journal on-line, Investors Business Daily online
Transaction fee Ameritrade, Datek
Sales Amazon.com, Lands’end
Affiliate Best20sites.com, Expatriate online
4. Describe the evolution of business-to-business (B2B e-commerce.
B2B can be said to have started in the 1970’s with automated order entry systems that used telephone
connections. In the late 1970s electronic data interchange (EDI) provided standards for the computer-to-
computer exchange of information such as invoices and purchase orders.
5. For the next item you buy, determine its supply chain.
I recently bought some soft drinks in cans. The cans are produced by obtaining the raw materials from
mines, followed by a processing in a plant. The cans are then filled with the liquid at the bottling
companies. They are then placed in a warehouse. From there, they are shipped to the retailers who then
sell to you and me.
6. How do supply chains for service organizations differ from supply chains for manufacturing
organizations?
Service supply chains typically do not include external suppliers. In addition, the tier one supplier is a
company that produces the final packaged product. Manufacturing supply chains typically include a
greater variety of links in the chain in terms of the types of companies. Manufacturers have external
suppliers in the different tiers, as well as processing operations.
7. How can companies satisfy increasing customer expectations?
1. Discuss the different types of e-commerce.
E-commerce can be characterized by noting what entities are involved. Business-to-business (B2B)
concerns businesses working together to allow one to receive what it needs as inputs from another.
Business to consumer (B2B) is the retail activity. Here companies use electronic means to deliver goods
and services to consumers. Consumer-to –consumer (C2C) occurs when consumers can sell directly to
each other, such as on the auction site, eBay. Peer-to-peer (P2P) links users, allowing them to share
information. Finally, m-commerce involves providing e-commerce access using wireless technology.
2. Explain the different revenue models used in e-commerce.
Operators of e-commerce web sites can support their activities using one or more of several revenue
models. A site that attracts users and then displays advertisements from other businesses is using the
advertising revenue model. A site that charges a fixed periodic fee for access to its content is using a
subscription revenue model. Some sites charge a fee for a completed transaction, such as a stock trade.
This is the transaction fee model. Companies that earn directly from what customers buy use the sales
revenue model. Finally, a site may earn its revenue by referring visitors to other sites. This is the affiliate
model.
3. Give two examples from the Internet for each of the different revenue models used in e-commerce.
Revenue Model Examples
Advertising Yahoo.com, Mail.com
Subscription The Wall Street Journal on-line, Investors Business Daily online
Transaction fee Ameritrade, Datek
Sales Amazon.com, Lands’end
Affiliate Best20sites.com, Expatriate online
4. Describe the evolution of business-to-business (B2B e-commerce.
B2B can be said to have started in the 1970’s with automated order entry systems that used telephone
connections. In the late 1970s electronic data interchange (EDI) provided standards for the computer-to-
computer exchange of information such as invoices and purchase orders.
5. For the next item you buy, determine its supply chain.
I recently bought some soft drinks in cans. The cans are produced by obtaining the raw materials from
mines, followed by a processing in a plant. The cans are then filled with the liquid at the bottling
companies. They are then placed in a warehouse. From there, they are shipped to the retailers who then
sell to you and me.
6. How do supply chains for service organizations differ from supply chains for manufacturing
organizations?
Service supply chains typically do not include external suppliers. In addition, the tier one supplier is a
company that produces the final packaged product. Manufacturing supply chains typically include a
greater variety of links in the chain in terms of the types of companies. Manufacturers have external
suppliers in the different tiers, as well as processing operations.
7. How can companies satisfy increasing customer expectations?
