Introduction to E-commerce

Section 1
Instructor Name: Dr. Heba Prepared By : Manar
Elqasaby Gamal
 True or false
1. E-commerce as we know it today
would not exist without the Internet.
2. A company's online inventory control
process is an example of e-business,
as opposed to e-commerce.
3. Ubiquity increases cognitive energy
outlays.
 True or false
4. The fact that e-commerce is conducted
based on universal standards decreases
market entry costs for merchants.
5. Customization involves changing a
delivered product or service based upon
a consumer’s preferences or past
purchasing behavior .
 True or false
6. The total number of users or customers
an e-commerce business can obtain is a
measure of its personalization.
7. The targeting of marketing messages to
specific individuals by adjusting the
message to a person's name, interests,
and past purchases is called
personalization.
 True or false
8. Internet/Web technology is available just
about everywhere and anytime. This is
known as ubiquity.
9. In e-commerce, a transaction must
include the direct production of revenue.
 Answers
1. True
2. True
3. False
4. True
5. True
6. False
7. True
8. True
9. True
 Multiple choice questions
1. Which of the following is not a unique
feature of e-commerce technology?
A) interactivity.
B) social technology.
C) global broadcasting.
D) richness.
Answer : c
 Multiple choice questions
2. The integration of video, audio, and text
marketing messages into a single marketing
message and consuming experience is an
example of:
A) richness.
B) ubiquity.
C) information density.
D) personalization.
Answer : A
 Multiple choice questions
3. Interactivity in the context of e-commerce can
be described as:
A) the ability to physically touch and manipulate
a product.
B) the complexity and content of a message.
C) the ability of consumers to create and
distribute content.
D) the enabling of two-way communication
between consumer and merchant.
Answer : D
 Multiple choice questions
4. E-commerce can be said to have begun
in:
A) 1983.
B) 1985.
C) 1995.
D) 2001.
Answer : C
 Multiple choice questions
5. ________ refers to the complexity and
content of a message.
A) ubiquity.
B) personalization.
C) richness.
D) customization.
Answer : C
 Multiple choice questions
6. The targeting of marketing messages to
specific individuals by adjusting the message
to a person's name, interests, and past
purchases is called ________.
A) Customization.
B) Personalization.
C) Social technology.
D) Information asymmetry.
Answer : B
 Multiple choice questions
7. Internet/Web technology is available just
about everywhere and anytime. This is
known as________.
A) Ubiquity.
B) richness.
C) customization.
D) None of the above.

Answer : A
 Multiple choice questions
8. ________ refers to the complexity and
content of a message.
A) ubiquity.
B) personalization.
C) richness.
D) customization.
Answer : C
 Multiple choice questions
9. E-commerce can be defined as:
A) the use of the Internet and the Web to
transact business.
B) the use of any Internet technologies in
a firm's daily activities.
C) the digital enablement of transactions
and processes within an organization.
Answer : A
 Multiple choice questions
10. Interactivity in the context of e-commerce
can be described as:
A) the ability to physically touch and manipulate
a product.
B) the complexity and content of a message.
C) the ability of consumers to create and
distribute content.
D) the enabling of two-way communication
between consumer and merchant.
Answer : D
 Multiple choice questions
11. E-Business refers To ________
A) the use of the Internet and the Web to
transact business.
B) the use of any Internet technologies in a
firm's daily activities.
C) enabled transactions within a firm,
involving information systems under the
control of the firm.
Answer : C
 Multiple choice questions
12. the total number of users or customers
an E-commerce can obtain. This is known as
________.
A) Interactivity.
B) The global Reach.
C) Universal Standards.
D) None of the above.

Answer : B
 Multiple choice questions
13. standards that are shared by all nations
around the world Refers to ________.
A) Interactivity.
B) The global Reach.
C) Universal Standards.
D) None of the above.

Answer : C
Thank you
 Introduction to E-commerce
Section 2
Prepared By : Manar Gamal
Instructor Name: Dr. Heba Alshimaa Bstawy
Elqasaby
 Summary
E-commerce :
is the use of Internet, the web and apps to transact business.
E-business :
refers primarily to digitally enabled transactions within a firm, involving
information systems under the control of the firm.
Ubiquity:
Internet/Web technology is available just about everywhere and anytime.
(the fact of appearing everywhere or of being very common.
Personalization:
The targeting of marketing messages to specific individuals by adjusting
the message to a person's name, interests, and past purchases.
Customization:
involves changing a delivered product or service based upon a consumer's
preferences or past purchasing behavior.
 Summary
Richness:
refers to the complexity and content of a message.
A marketspace:
extends the marketplace beyond traditional boundaries.
Information asymmetry:
refers to any disparity in relevant market information among parties in a
transaction.
The global Reach :
the total number of users or customers an E-commerce can obtain
Universal Standards :
standards that are shared by all nations around the world
Interactivity :
technology that allows for two-way communication between merchant and
consumer
 Summary
Information density :
the total amount and quality of information available to all market participants .
Web 2.0 :
a set of applications and technologies that encourage and rely on user and allow
them to create, edit, and distribute content; share preferences, bookmarks and
online personas; participate in virtual lives; and build online communities- and
consumer-generated interactivity and content.
YouTube :
can be considered an example of a Web 2.0 site because its content is generated
by users rather than created by the site owners.
The Internet :
Worldwide network of computer networks built on common standards. And
Created in late 1960s.
 Summary
The Web :
Most popular Internet service , developed in early 1990s and provides access to
Web pages .
Disintermediation:
displacement of market middlemen who tradition ally are intermediators
between producers and consumers by new direct relationship between producers
and consumers
A first mover :
is a firm that is first to market in a particular area and that moves quickly to
gather market share.
A friction-free :
in commerce means, information is equally distributed, transaction costs are low,
prices can be dynamically adjusted to reflect actual demand, intermediaries
decline, and unfair competitive advantages are eliminated.
 Summary
Network effect :
occurs when everyone in a group receives value because all participants use the
same tool or product.
 True or false
1. The growth of mobile e-commerce
almost doubled from 2011 to 2012 .
2. Price transparency refers to the ability of
merchants to segment the market into
groups willing to pay different prices .
3. Cost transparency refers to the ability of
consumers to discover the actual costs
merchants pay for products.
 True or false
4. Web 2.0 describes a set of applications
and technologies that encourage and rely
on user- and consumer-generated
interactivity and content.
5. Social e-commerce is the largest type of
e-commerce.
 True or false
6. In 2011, a new Internet investment
bubble focused primarily on social
networks emerged.
 True or false
7. As economists had envisioned, prices of
products sold on the Web are consistently
lower than elsewhere, and the online
marketplace is characterized by decreasing
price dispersion.
8. The future of e-commerce will include an
increase in regulatory activity both in the
United States and worldwide .
 True or false
9. Local e-commerce which is e-commerce
that is focused on engaging the customer
based on his or her geographical location.
10. The most popular service that runs on
the Internet infrastructure is the World
Wide Web .
 Answers
1. True
2. False
3. True
4. True
5. False
6. True
7. False
8. True
9. True
10. True
 Multiple choice questions
1. Which of the following is the best
definition of transaction cost?
A. the cost of changing prices
B. the cost of participating in a market
C. the cost of finding suitable products
D. the cost merchants pay to bring their
goods to market

Answer : B
 Multiple choice questions
2. Which of the following is not an
example of a social network?
A. Wikipedia
B. Twitter
C. Pinterest
D. Facebook
Answer : A
 Multiple choice questions
3. Which type of e-commerce is
distinguished by the type of technology used
in the transaction rather than by the nature
of the market relationship?
A) Consumer-to-consumer (C2C)
B) Social e-commerce
C) Mobile e-commerce
D) Business-to-business (B2B)
Answer : C
 Multiple choice questions
4. Which of the following statements about the
Web is not true?
A) It is the technology upon which the Internet is
based.
B) It was developed in the early 1990s.
C) It provides access to pages written in HTML.
D) It provides access to Web pages that
incorporate graphics, sound, and multimedia.
Answer : A
 Multiple choice questions
5. Which of the following is not a characteristic
of a perfect competitive market?
A) Price, cost, and quality information are
equally distributed.
B) A nearly infinite set of suppliers compete
against one another.
C) Customers have access to all relevant
information worldwide.
D) It is highly regulated.
Answer : D
 Multiple choice questions
6. All of the following were visions of e-
commerce expressed during the early
years of e-commerce except:
A) a nearly perfect competitive market.
B) friction-free commerce.
C) disintermediation.
D) fast follower advantage.
Answer : D
 Multiple choice questions
7. Unfair competitive advantages occur
when:
A) one competitor has an advantage others
cannot purchase.
B) market middlemen are displaced.
C) information is equally distributed and
transaction costs are low.
D) firms can gather monopoly profits.
Answer : A
 Multiple choice questions
8. Which of the following best describes the
early years of e-commerce?
A) They were a technological success but a mixed
business success.
B) They were a technological success but a
business failure.
C) They were a technological failure but a
business success.
D) They were a mixed technological and business
success.

Answer : A
 Multiple choice questions
9. Which of the following is a characteristic
of the consolidation phase of e-commerce?
A) predominance of pure online strategies
B) emphasis on revenue growth versus
profits
C) first mover advantages
D) shift to a business-driven approach

Answer : D
 Multiple choice questions
10. Which of the following is Example of
example of B2C ?
A) Apple
B) Amazon
C) Staples
D) Walmart
Answer : B
 Multiple choice questions
11. In ________ commerce, information is
equally distributed, transaction costs are low,
prices can be dynamically adjusted to reflect
actual demand, intermediaries decline, and
unfair competitive advantages are
eliminated.
A) business-to-business e-commerce
B) business-to-consumer e-commerce
C) Mobile e-commerce
D) Friction free commerce
Answer : D
 Multiple choice questions
12. A(n) ________ occurs when everyone
in a group receives value because all
participants use the same tool or product.
A) Network effect
B) Teamwork

Answer : A
 Multiple choice questions
13. A firm that is first to market in a
particular area and that moves quickly to
gather market share is referred to as a(n)
________.
A) Fast follower
B) Network effect
C) Teamwork
D) First mover
Answer : D
 Multiple choice questions
14. The first evolutionary phase of e-
commerce, from 1995 to 2000, characterized
as technology-driven and ungoverned, was a
period of ________.
A) Invention
B) consolidation
C) reinvention
D) Creation
Answer : A
 Multiple choice questions
15. An economist is most likely to be
interested in a(n) ________, rather than
technical, approach to studying e-commerce.
A) technical
B) Behavioral
C) Social
D) emotional

Answer : B
 Multiple choice questions
16. Tangible works of the mind such as
music, books, and videos are called
________.
A) intellectual property
B) copyright
C) patent
D) goodwill

Answer : A
 Multiple choice questions
17. Which of the following statements is not
true?
A) Information asymmetries are continually
being introduced by merchants and marketers.
B) Intermediaries have not disappeared.
C) Overall transaction costs have dropped
dramatically.
D) Brands remain very important in e-commerce
Answer : C
 Multiple choice questions
18. Above all, e-commerce is a ________
phenomenon.
A) technology-driven1
B) finance-driven
C) sociological
D) government-driven
Answer : A
 Multiple choice questions
19. A(n) ________ extends the marketplace
beyond traditional boundaries.
A) technology-driven
B) sociological
C) marketspace
D) government-driven

Answer : C
 Multiple choice questions
20. Which of the following is Example of
example of Consumer-to-consumer (C2C) ?
A) Apple
B) Amazon
C) Target
D) eBay

Answer : D
 Multiple choice questions
21. Which of the following is Example of
example of B2B ?
A) Apple
B) Alibaba
C) Target
D) eBay
Answer : B
 Multiple choice questions
22. Which of the following is Example mobile
commerce ?
A. Special employee offers.
B. Online insurance policy management .
C. online loan services.
D. Mobile ticketing

Answer : D
Essay questions
What is the difference between personalization
and customization?
Personalization: The targeting of marketing
messages to specific individuals by adjusting the
message to a person's name, interests, and past
purchases.

Customization: involves changing a delivered

product or service based upon a consumer's
preferences or past purchasing behavior.
Essay questions
What is the difference between e-business and
e-commerce?
E-commerce: Digitally enabled commercial transactions
between and among organizations and individuals. It’s
considered revenue generating operation. Also there must be
exchange of value in order to engage in E- commerce
transactions.
E-business: Digital enabling of transactions and processes
within a firm, involving information systems under firm’s
control.
Does not include commercial transactions involving an
exchange of value across organizational boundaries.
Essay questions
What are types of E- commerce?
1. Business-to-Consumer (B2C): in which online businesses attempt to
reach individual consumers
2. Business-to-Business (B2B): in which businesses focus on selling to
other businesses
3. Consumer-to-Consumer (C2C): which provides a market in which
consumers can sell goods to each other
4. Social e-commerce: which is commerce enabled by social networks and
online social relationships
5. Mobile e-commerce (M-commerce): which refers to the use of wireless
digital devices to enable Web transactions
6. Local e-commerce: which is e-commerce that is focused on engaging the
customer based on his or her geographical location.
Essay questions
Mention the evolutionary phases of E- commerce.
1. 1995–2000: Invention: The first evolutionary phase of e-
commerce, from 1995 to 2000, characterized as technology-
driven and ungoverned
Key concepts developed
Dot-coms; heavy venture capital investment
2. 2001–2006: Consolidation
Emphasis on business-driven approach
3. 2006–Present: Reinvention
Extension of technologies
New models based on user-generated content, social networks,
services
Thank you
 Introduction to E-commerce
Section
Prepared By : Manar Gamal
Instructor Name: Dr. Heba
Alshimaa Bstawy
Elqasaby
 Summary
Business model :
Set of planned activities designed to result in a profit in a marketplace .
Business plan :
Describes a firm’s business model
E-commerce business model :
Uses/leverages unique qualities of Internet and Web
Asymmetries :
Exist whenever one participant in a market has more resources than other participants.
First-mover advantage :
A competitive market advantage for a firm that results from being the first into a
marketspace with a serviceable product or service.
Complementary resources :
Resources and assets not directly involved in the production of the product but required
for success such as marketing, management, financial assets and reputation.
 Summary
Unfair competitive advantage :
Occurs when one firm develops an advantages based on a factor that other firm
can not purchase.
Leverage :
The use by a company of its competitive advantage to achieve more advantage in
surrounding markets.
Perfect markets :
A market in which there are no competitive advantages or asymmetries because
all firms have equal access to all factors of production.
Web aggregators :
is a company that collects information from a wide variety of sources and then
adds value to that information .
Portal :
Offer users powerful web search tools as well as integrated package of content
 Summary
E-distributor :
A company that supplies products and services directly to individual business.
E-procurement :
creates and sells access to digital electronic market.
Creates digital markets where participants transact for indirect goods
Exchanges :
An Independent digital electronic marketplace where suppliers and commercial
purchasers can conduct transactions.
Industry Value Chains :
Set of activities performed by suppliers, manufacturers, transporters, distributors,
and retailers that transform raw inputs into final products and services .
Firm Value Chains :
Activities that a firm engages in to create final products from raw inputs .
 Summary
Firm Value Webs :
Uses Internet technology to coordinate the value chains of business partners .
Business Strategy :
A set of Plans for achieving superior long-term returns on the capital invested in a
business firm.
Profit :
The difference between a price a firm is apple to charge for its products and the
costs of producing and distributing goods.
Differentiation Strategy :
refers to all the ways producers can make their
Products unique and different to distinguish them from those of competitors.
Commoditization :
a situation where there are no difference among
products and services, and the only basis of choosing products is price.
 Summary
Cost strategy :
a business has discovered some unique business process or
resources that other firms can not obtain in the marketplace( cost advantage
over competitors).
Scope Strategy :
a strategy to compete in all markets around the globe rather
than in local regionals and national markets.
Focus Strategy :
a strategy to compete within a narrow market segment
or a product segment( specialization strategy)
 True or false
1. A business model is a set of planned activities designed to
result in a profit in marketplace.
2. A value proposition defines how a company's product or
service fulfills the needs of a customer.
3. The terms revenue model and financial model can be
used interchangeably .
4. In order to be considered successful, a firm must produce
returns greater than alternative investments.
5. Most first movers have the complementary resources
needed to sustain their advantage.
6. An asymmetry exists whenever one participant in a
market has more resources than other participants.
 True or false
7. Barriers to entry into the e-tail marketplace are high .
8. Differentiation refers to situations in which there is little
difference between products and the only basis of
choosing a product is price.
9. Scale economies are efficiencies that result from
flattening the hierarchy of an organization.
10. Real markets are perfect markets
 True or false
11. The Internet's universal standards decrease the cost of
industry and firm operations.
12. Interactivity that enables product customization alters
industry structure by reducing the threat of substitutes.
13. Interfirm rivalry is one area of the business environment
where e-commerce technologies have had an impact on
most industries.
 Answers
1. True 11. True
2. True 12. True
3. True 13. True
4. True
5. False
6. True
7. False
8. False
9. False
10. False
 Multiple choice questions
1. All of the following are key elements of a business model
except:
A) competitive environment.
B) organizational development.
C) information technology strategy.
D) market strategy.
2. ________ and ________ are typically the most easily
identifiable aspects of a company's business model.
A) Market strategy; market opportunity
B) Value proposition; revenue model
C) Value proposition; competitive environment
D) Revenue model; market strategy
 Multiple choice questions
3. Which element of the business model addresses the
question of why a customer should buy from the firm?
A) revenue model
B) competitive advantage
C) market strategy
D) value proposition
4. Which element of the business model examines who else
occupies the firm's intended marketspace?
A) value proposition
B) competitive environment
C) competitive advantage
D) market strategy
 Multiple choice questions
5. Which of the following are Amazon's primary value
propositions?
A) personalization and customization
B) selection and convenience
C) reduction of price discovery cost
D) management of product delivery
6. Your solar-panel manufacturing firm has developed a unique
and patented process for creating high-efficiency solar panels at a
fraction of current costs. This will enable your firm to adopt a
strategy of:
A) cost competition.
B) scope.
C) scale.
D) focus.
 Multiple choice questions
7. Which of the following is an example of the subscription
revenue model?
A) Ancestry.com
B) eBay
C) Amazon
D) Twitter
8. Stickiness is an important attribute for which revenue
model?
A) advertising revenue model
B) subscription revenue model
C) transaction fee revenue model
D) sales revenue model
 Multiple choice questions
9. Which of the following companies utilizes a transaction fee
revenue model?
A) WSJ.com
B) E-Trade
C) Twitter
D) Sears.com
10. Which of the following is an example of the affiliate
revenue model?
A) Yahoo
B) eBay
C) Gap.com
D) MyPoints
 Multiple choice questions
11. Which of the following factors is not a significant influence
on a company's competitive environment?
A) how many competitors are active
B) what the market share of each competitor is
C) the availability of supportive organizational structures
D) how competitors price their products
12. Which of the following would be considered an indirect
competitor of American Airlines?
A) JetBlue
B) Zipcar
C) Orbitz
D) British Airways
 Multiple choice questions
13. The existence of a large number of competitors in any one
market segment may indicate:
A) an untapped market niche.
B) the market is saturated.
C) no one firm has differentiated itself within that market.
D) a market that has already been tried without success.
14. All of the following can be considered a direct or indirect
competitor of Amazon.com except:
A) eBay.
B) Apple's iTunes Store.
C) Barnesandnoble.com.
D) Starbucks.
 Multiple choice questions
15. A perfect market is one in which:
A) there are no competitive advantages or asymmetries because
all firms have equal access to all the factors to production.
B) one firm develops an advantage based on a factor of
production that other firms cannot purchase.
C) one participant in the market has more resources than the
others.
D) competition is at a minimum, as each niche market within an
industry is served by the company with the greatest competitive
advantage.
 Multiple choice questions
16. The business model of e-distributors is quite similar to that
of:
A) e-tailers.
B) transaction brokers.
C) exchanges.
D) service providers.
17. All of the following use an advertising revenue model
except:
A) Facebook.
B) Yahoo.
C) Google.
D) Amazon.
 Multiple choice questions
18. Which of the following is not considered a portal?
A) Yahoo
B) MSN
C) WSJ.com
D) AOL
19. Horizontal or general portals primarily generate revenue in
all of the following ways except:
A) charging advertisers for ad placement.
B) collecting transaction fees.
C) sales of goods.
D) charging subscription fees.
 Multiple choice questions
20. A business document that specifically details how you plan
on selling your product and find new customers is called a:
A) sales analysis.
B) business plan.
C) competitive strategy.
D) market strategy.
21. Which of the following is not a community provider?
A) LinkedIn
B) Facebook
C) Priceline
D) Pinterest
 Multiple choice questions
22. Which of the following is not a variation of the e-tailer
business model?
A) bricks-and-clicks
B) virtual merchant
C) market creator
D) manufacturer-direct
23. An example of a company using the content provider model
is :
A) Priceline.
B) Rhapsody.com.
C) Dell.
D) eBay.
 Multiple choice questions
24. In general, the key to becoming a successful content
provider is to:
A) own the content being provided.
B) own the technology by which content is created, presented,
and distributed.
C) provide online content for free.
D) provide other services as well as online content.
25. Expedia is an example of a :
A) community provider.
B) transaction broker.
C) market creator.
D) service provider
 Multiple choice questions
26. All of the following may lead to a competitive advantage
except:
A) less expensive suppliers.
B) better employees.
C) fewer products.
D) superior products.
27. All of the following are examples of Business-to-Business
(B2B) business models except :
A) e-distributors.
B) e-procurement.
C) private industrial networks.
D) e-tailers.
 Multiple choice questions
28. The basic value proposition of community providers is:
A) they offer a fast, convenient one-stop site where users can
focus on their most important concerns and interests.
B) they offer consumers valuable, convenient, time-saving, and
low cost alternatives to traditional service providers.
C) they create a digital electronic environment for buyers and
sellers to meet, agree on a price and transact.
D) they increase customers' productivity by helping them get
things done faster and more cheaply.
 Multiple choice questions
29. What is the primary revenue model for an e-distributor?
A) sales
B) transaction fee
C) advertising
D) subscription
30. Grainger.com is an example of which of the following
business models?
A) B2B service provider
B) exchange
C) e-distributor
D) industry consortia
 Multiple choice questions
31. ________ create and sell access to digital electronic markets.
A) E-distributors
B) Portals
C) E-procurement firms
D) Market creators
Answer: C
32. One of the competitive advantages of a B2B service provider is
that it can spread the cost of an expensive software system over
many users, achieving efficiencies referred to as:
A) application efficiencies.
B) network efficiencies.
C) scale economies.
D) network externalities
 Multiple choice questions
33. Exostar is an example of a(n):
A) private industrial network.
B) exchange.
C) industry consortium.
D) e-distributor.
34. Which of the following is an unfair competitive
advantage?
A) brand name
B) access to global markets
C) lower product prices
D) superior technology
 Multiple choice questions
35. The element of a business model that is responsible for
making the model work is:
A) the management team.
B) the organizational structure.
C) the firm's key competitive advantage.
D) the market strategy.
36. eBay uses all of the following business models except:
A) B2C market creator.
B) C2C market creator.
C) content provider.
D) e-commerce infrastructure provider.
 Multiple choice questions
37. Which of the following is not a primary activity in a firm value
chain?
A) inbound logistics
B) finance/accounting
C) operations
D) sales and marketing
38. A ________ coordinates a firm's suppliers, distributors, and
delivery firms with its own production needs using an Internet-
based supply chain management system ?
A) value chain
B) value system
C) value web
D) business strategy
 Multiple choice questions
39. A strategy designed to compete within a narrow market or
product segment is called a ________ strategy.
A) scope
B) differentiation
C) cost
D) focus
40. The financial services, travel services, and job placement
services industries use the ________ business model.
A) e-tailers.
B) transaction brokers.
C) exchanges.
D) service provider.
 Answers
1. C 14. D 26. C
2. B 15. A 27. D
3. D 28. A
16. A
4. B 29. A
17. D 30. C
5. B 18. C 31. C
6. A 19. C 32. C
7. A 33. C
20. D
8. A 34. A
21. C
9. B 35. A
22. C
10. D 36. C
23. B 37. B
11. C
12. B 24. A 38. C
13. B 25. B 39. D
40. B
Essay questions
Please mention the B2C business model components.
E-tailer ( online retail store) Online version of traditional retailer
Community provider (social network) Provide online environment
(social network) where people with similar interests can transact,
share content, and communicate
Content provider: Digital content on the Web
Portal: Offer users powerful web search tools as well as integrated
package of content and services all in one place ( Yahoo).
Transaction broker: Process online transactions for consumers
Market creator: Create digital environment where buyers and sellers
can meet and transact ( Display product, search for products and
establish a price for products)
Service provider: Online services, Value proposition, Revenue
models.
Essay questions
List down the B2B business model components.
• Net marketplaces
E-distributor: A company that supplies products and
services directly to individual business.
E-procurement: creates and sells access to digital
electronic market.
Exchange: An Independent digital electronic marketplace
where suppliers and commercial purchasers can conduct
transactions.
Industry consortium: Industry-owned vertical digital
marketplace that serve specific industries, open to select
suppliers ( such as automobiles and aerospace).
Essay questions
Private industrial network:
Digital network
Used to coordinate the flow of communication among
firms engaged in business together.
Typically evolve out of company’s internal enterprise
system
Essay questions
What is the difference between Industry Value Chains and
firm Value Chains?
Industry Value Chains
Set of activities performed by suppliers, manufacturers,
transporters, distributors, and retailers that transform raw
inputs into final products and services.
Firm Value Chains
Activities that a firm engages in to create final products
from raw inputs.
Essay questions
What are the different types of strategies?
• Differentiation : refers to all the ways producers can make their
Products unique and different to distinguish them from those of competitors.
• Cost: a business has discovered some unique business process or
resources that other firms can not obtain in the marketplace( cost advantage
– over competitors).
• Scope: a strategy to compete in all markets around the globe rather
than in local regionals and national markets.
• Focus: a strategy to compete within a narrow market segment
– or a product segment( specialization strategy)
Essay questions
• Differentiate between business model
and revenue model.
Business model: Set of planned activities
designed to result in a profit in a
marketplace
Revenue model: How will the firm earn
revenue, generate profits, and produce a
superior return on invested capital.
Thank you
 Introduction to E-commerce
Section 4
Instructor Name: Dr. Heba Prepared By : Manar
Elqasaby Gamal
 Summary
The Systems Development Life Cycle (SDLC)
Methodology for understanding business objectives of a system and designing an
appropriate solution
Five major steps:
1. System Analysis/Planning
Business objectives: List of capabilities you want your site to have
System functionalities: List of information system capabilities
needed to achieve business objectives
Information requirements: Information elements that system must
produce in order to achieve business objectives.
2. Systems Design: Hardware and Software Platforms
 System design specification: Description of main components of a system and their
relationship to one another .
 Two components of system design:
Logical design :- Data flow diagrams, processing functions, databases.
Physical design:- Specifies actual physical, software components, models, etc.
 Summary
3. Build/Host Your Own vs. Outsourcing
 Outsourcing: Hiring vendors to provide services involved in building site
 Hosting: Hosting company responsible for ensuring site is accessible 24 hours a day, for
monthly fee
 Co-location: Firm purchases or leases Web server (with control over its operation), but server
is located at vendor’s facility
 System architecture Arrangement of software, machinery, and tasks in an information
system needed to achieve a specific functionality
• Two-tier:-Web server and database server
• Multi-tier :-
Web application servers
Backend, legacy databases
4. Testing
5. Implementation
 Summary

Personalization :- Ability to treat people based on personal qualities and prior history with site
Customization :- Ability to change the product to better fit the needs of the customer
Cookies:- Primary method to achieve personalization.
Privacy policy :- Set of public statements declaring how site will treat customers’ personal
information that is gathered by site.
Accessibility rules :- Set of design objectives that ensure disabled users can affectively access
site.
 True or false
1. The systems development life cycle methodology is useful when
creating an e-commerce Web site.
2. Using prebuilt templates is typically one of the most cost-effective
choices when building a Web site.
3. The annual maintenance cost for a Web site is likely to be as high as
its development cost.
4. In a two-tier architecture, a Web server is linked to one middle-tier
layer that typically includes a series of application servers, as well as
to another back-end layer.
5. Benchmarking is the process of comparing a Web site with
that of its competitors in terms of response speed, quality of
layout, and design.
6. A SWOT analysis describes only strengths, weaknesses,
opportunities
 True or false
7. Hosting: Firm purchases or leases Web server (with control
over its operation), but server is located at vendor’s
facility.
8. Privacy policy is Set of design objectives that ensure
disabled users can affectively access site.
9. Customization is Ability to treat people based on personal
qualities and prior history with site.
10. Cookies is Primary method to achieve personalization.
11. Outsourcing is Hiring vendors to provide services involved
in building site.
 True or false
12. Hosting: Hosting company responsible for ensuring site is
accessible 24 hours a day, for monthly fee.

13. An e-commerce Web site that processes orders requires,

at minimum, a single-tier system architecture.

14. static file sizes is the main factor in determining overall

demand for an e-commerce site.
15. The information elements that the system must produce to
achieve its business objectives are called : information
requirements.
 True or false
16. System architecture refers to the arrangement of software, machinery, and tasks
in an information system needed to achieve a specific functionality .
17. A SWOT analysis describes strengths, weaknesses, opportunities, and threats.
18. An online shopping cart allows shoppers to set aside desired purchases in
preparation for checkout, review what they have selected, and edit their
selections as necessary.
19. System testing involves testing the site as a whole, in the same way a typical
user would when using the site.
20. Using prebuilt templates is typically one of the most cost-effective choices
when building a Web site.
21. Systems Design Is the first step in The Systems Development Life Cycle.
22. Systems Design Is the Second step in The Systems Development Life
Cycle.
 Answers
13.FALSE
1. True
2. True 14. FALSE (number of
3. True items in inventory, user
4. False profiles, type of content)
5. True
6. False 15. TRUE
7. False Co-location 16. TRUE
8. FALSE Accessibility rules 17. TRUE
9. FALSE Personalization 18. TRUE
10. TRUE 19. TRUE
11. TRUE 20. TRUE
12. TRUE 21. FALSE System
Analysis/Planning
22. TRUE
 Multiple choice questions
1. What are the two most important management challenges in
building a successful e-commerce presence?
A) developing a clear understanding of business objectives and
knowing how to choose the right technology to achieve those
objectives
B) having an accurate understanding of your business
environment and an achievable business plan
C) building a team with the right skill sets and closely managing
the development process
D) identifying the key components of your business plan and
selecting the right software, hardware, and infrastructure for
your site
 Multiple choice questions
2. In order from beginning to end, the major steps in the SDLC,
are:
A) systems analysis/planning; systems design; building the
system; testing; and implementation.
B) systems design; testing; building the system; and
implementation.
C) systems analysis/planning; systems design; building the
system; implementation; and testing.
D) systems analysis/planning; implementation; building the
system; and testing.
Multiple choice questions
3. ________ are the types of information systems
capabilities needed to meet business objectives.
A) Information requirements
B) System functionalities
C) System design specifications
D) Physical design specifications
 Multiple choice questions
4.Which of the following basic system functionalities is used to
display goods on a Web site?
A) product database
B) digital catalog
C) shopping cart system
D) customer database system
 Multiple choice questions
5. A system design has two main components:
A) a logical design and a physical design.
B) a behavioral design and a technological design.
C) business objectives and technology requirements.
D) front-end systems and back-end systems.
 Multiple choice questions
6. All of the following are basic information requirements for a
product database except:
A) product descriptions.
B) stock numbers.
C) customer ID numbers.
D) inventory levels.
 Multiple choice questions
7. Which of the following typically includes a data flow diagram
to describe the flow of information for a Web site?
A) physical design
B) logical design
C) testing plan
D) co-location plan
 Multiple choice questions
8. Which of the following details the actual hardware
components to be used in a system?
A) architecture plan
B) system functionalities plan
C) logical design
D) physical design
 Multiple choice questions
9.An e-commerce site that cost $25,000 to develop is likely to
require a yearly maintenance budget of approximately:
A) $5,000.
B) $10,000.
C) $25,000.
D) $50,000.
 Multiple choice questions
10. An e-commerce Web site that processes orders requires, at
minimum, a ________ system architecture.
A) single-tier
B) two-tier
C) three-tier
D) multi-tier
 Multiple choice questions
11. Which of the following is not a main factor in
determining overall demand for an e-commerce site?
A) static file sizes
B) number of items in inventory
C) user profiles
D) type of content
 Answers
1. A
2. A
3. B
4. B
5. A
6. C
7. B
8. D
9. C
10. B
11. A
Essay questions
Mention the Systems Development Life
Cycle steps.
• Five major steps:
1. Systems analysis/planning
2. Systems design
3. Building the system
4. Testing
5. Implementation
Essay questions
• Compare between logic design and
physical design.
Logical design: data flow diagrams, processing
functions, databases
Physical design: specifies actual physical,
software components, models, etc.
Essay questions
• What is the difference between
outsourcing and hosting?
Outsourcing: Hiring vendors to provide
services involved in building site
Hosting: Hosting company responsible for
ensuring site is accessible 24/7, for
monthly fee
Thank you
 Introduction to E-commerce
Section 5
Instructor Name: Dr. Heba Prepared By : Manar
Elqasaby Gamal
 Summary
key dimensions of e-commerce security?
• Integrity: The ability to ensure that information being displayed on a web site or
transmitted or received over the internet has not been altered in any way by an
unauthorized party.
• Nonrepudiation: The ability to ensure that e-commerce participants do not deny (I.E,
repudiate) their online actions.
• Authenticity: the ability to identify the identity of a person or entity with whom you
are dealing on the internet.
• Confidentiality: The ability to ensure that messages and data are available only to
those who are authorized to view them.
• Privacy: The ability to control the user of information about oneself.
• Availability: The ability to ensure that an e-commerce site continues to functions as
intended.
 Summary
- Secure Sockets Layer (SSL) and Transport Layer Security (TLS)
Establishes a secure, negotiated client-server session in which URL of requested
document, along with contents, is encrypted
- Virtual Private Network (VPN):
Allows remote users to securely access internal network via the Internet
 Summary
Types of Payment Systems.
1. Cash : Most common form of payment
2. Checking transfer: Second most common payment form in United States
3. Credit card: Credit card associations
4. Stored value: Funds deposited into account, from which funds are paid out or
withdrawn as needed
5. Accumulating balance : Accounts that accumulate expenditures and to which
consumers make period payments
 True or false
1. Typically, the more security measures added to a Web
site, the slower and more difficult it becomes to use.
2. The use of a digital signature helps to ensure integrity,
authenticity, and nonrepudiation.
3. The easiest and least expensive way to prevent threats to
system integrity is to install anti-virus software.
4. Credit cards are the dominant form of online payment
throughout the world.
5. In order to accept payments by credit card, online
merchants typically must have a merchant account
established with a bank or financial institution.
 Answers
1. True
2. True
3. True
4. False
5. True
 Multiple choice questions
1. The six key dimensions to e-commerce security are
nonrepudiation, authenticity, availability, integrity, privacy, and:
A) confidentiality.
B) usability.
C) functionality.
D) viability.
2. _______ refers to the ability to identify the person or entity
with whom you are dealing on the Internet.
A) Nonrepudiation
B) Authenticity
C) Availability
D) Integrity
 Multiple choice questions
3. ___ refers to the ability to ensure that an e-commerce site continues to
function as intended.
A) Nonrepudiation
B) Authenticity
C) Availability
D) Integrity
4. Which of the following is an example of an integrity violation of e-
commerce security?
A) A Web site is not actually operated by the entity the customer believes it
to be.
B) A merchant uses customer information in a manner not intended by the
customer.
C) A customer denies that he or she is the person who placed the order.
D) An unauthorized person intercepts an online communication and
changes its contents.
 Multiple choice questions
5. ________ refers to the ability to ensure that an e-commerce
site continues to function as intended.
A) Nonrepudiation
B) Authenticity
C) Availability
D) Integrity
6. An example of a privacy violation of e-commerce security is:
A) your e-mail being read by a hacker.
B) your online purchasing history being sold to other merchants
without your consent.
C) your computer being used as part of a botnet.
D) your e-mail being altered by a hacker.
 Multiple choice questions
7. ________ refers to the ability to ensure that messages and
data are only available to those authorized to view them.
A) Confidentiality
B) Integrity
C) Privacy
D) Availability
8. Which of the following is not a key point of vulnerability
when dealing with e-commerce?
A) the client computer
B) the server
C) the communications pipeline
D) the credit card companies
 Multiple choice questions
9. What is the most frequent cause of stolen credit cards and
card information today?
A) lost cards
B) the hacking and looting of corporate servers storing credit
card information
C) sniffing programs
D) phishing attacks
10. All of the following are examples of malicious code except:
A) viruses.
B) bots.
C) worms.
D) sniffers.
 Multiple choice questions
11. Which of the following dimensions of e-commerce security
is not provided for by encryption?
A) confidentiality
B) availability
C) message integrity
D) Nonrepudiation
12. A ________ is hardware or software that acts as a filter to
prevent unwanted packets from entering a network.
A) firewall
B) virtual private network
C) proxy server
D) PPTP
 Multiple choice questions
13. What is the first step in developing an e-commerce security
plan?
A) Create a security organization.
B) Develop a security policy.
C) Perform a risk assessment.
D) Perform a security audit.
14. What is the last step in developing an e-commerce security
plan?
A) Perform a security audit.
B) Develop an implementation plan.
C) Create a security organization.
D) Develop a security policy.
 Multiple choice questions
15. Which of the following is not an example of an access
control?
A) firewalls
B) proxy servers
C) digital signatures
D) login passwords
16. All of the following are examples of stored value payment
systems except:
A) smart cards.
B) credit cards.
C) gift certificates.
D) prepaid cards.
 Multiple choice questions
17. ________ refers to the ability to ensure that information
being displayed on a Web site, or transmitted or received over
the Internet, has not been altered in any way by an
unauthorized party.
A) Confidentiality
B) Integrity
C) Privacy
D) Availability
 Answers
1. A 14. A
2. B 15. C
3. C 16. B
4. D
17. B
5. C
6. B
7. A
8. D
9. B
10. D
11. B
12. A
13. C
Essay questions
Q1: Mention the three key points of vulnerability in e-
commerce environment.
1. Client.
2. Server.
3. Communications pipeline (Internet communications
channels).
Essay questions
Q2: Explain the six key dimensions of e-commerce security?
1. Integrity: The ability to ensure that information being displayed on a web
site or transmitted or received over the internet has not been altered in any
way by an unauthorized party.
2. Nonrepudiation: The ability to ensure that e-commerce participants do not
deny (I.E, repudiate) their online actions.
3. Authenticity: the ability to identify the identity of a person or entity with
whom you are dealing on the internet.
4. Confidentiality: The ability to ensure that messages and data are available
only to those who are authorized to view them.
5. Privacy: The ability to control the user of information about oneself.
6. Availability: The ability to ensure that an e-commerce site continues to
functions as intended.
Essay questions
Q3: What are the types of Payment Systems?
1. Cash : Most common form of payment
2. Checking transfer: Second most common payment form in
United States
3. Credit card: Credit card associations
4. Stored value: Funds deposited into account, from which
funds are paid out or withdrawn as needed
5. Accumulating balance : Accounts that accumulate
expenditures and to which consumers make period payments
Thank you
 Introduction to E-commerce
Section 6
Instructor Name: Dr. Heba Prepared By :
Elqasaby Alshimaa Bstawy
True or false
1. E-commerce as we know it today would not exist
without the Internet.
2. A company's online inventory control process is an
example of e-business, as opposed to e-commerce.
3. Ubiquity increases cognitive energy outlays.
4. The fact that e-commerce is conducted based on
universal standards decreases market entry costs for
merchants.
5. Customization involves changing a delivered product
or service based upon a consumer’s preferences or
past purchasing behavior .
True or false
6. The total number of users or customers an e-
commerce business can obtain is a measure of its
personalization.
7. The targeting of marketing messages to specific
individuals by adjusting the message to a person's
name, interests, and past purchases is called
personalization.
8. Internet/Web technology is available just about
everywhere and anytime. This is known as ubiquity.
9. In e-commerce, a transaction must include the direct
production of revenue
 Answers
1. True
2. True
3. False
4. True
5. True
6. False
7. True
8. True
9. True
True or false
1. The growth of mobile e-commerce almost doubled
from 2011 to 2012 .
2. Price transparency refers to the ability of merchants
to segment the market into groups willing to pay
different prices .
3. Cost transparency refers to the ability of consumers
to discover the actual costs merchants pay for
products.
4. Web 2.0 describes a set of applications and
technologies that encourage and rely on user- and
consumer-generated interactivity and content.
5. Social e-commerce is the largest type of e-commerce.
True or false
6. In 2011, a new Internet investment bubble
focused primarily on social networks emerged.
7. As economists had envisioned, prices of
products sold on the Web are consistently lower
than elsewhere, and the online marketplace is
characterized by decreasing price dispersion.
8. The future of e-commerce will include an
increase in regulatory activity both in the
United States and worldwide .
 Answers
1. True
2. False
3. True
4. True
5. False
6. True
7. False
8. True
True or false
1. A business model is a set of planned activities
designed to result in a profit in marketplace.
2. A value proposition defines how a company's product
or service fulfills the needs of a customer.
3. The terms revenue model and financial model can be
used interchangeably .
4. In order to be considered successful, a firm must
produce returns greater than alternative investments.
5. Most first movers have the complementary resources
needed to sustain their advantage.
6. An asymmetry exists whenever one participant in a
market has more resources than other participants.
 Answers
1. True
2. True
3. True
4. True
5. False
6. True
 True or false
1. The systems development life cycle methodology is useful when
creating an e-commerce Web site.
2. Using prebuilt templates is typically one of the most cost-effective
choices when building a Web site.
3. The annual maintenance cost for a Web site is likely to be as high as
its development cost.
4. In a two-tier architecture, a Web server is linked to one middle-tier
layer that typically includes a series of application servers, as well as
to another back-end layer.
5. Benchmarking is the process of comparing a Web site with
that of its competitors in terms of response speed, quality of
layout, and design.
6. A SWOT analysis describes only strengths, weaknesses,
opportunities
 Answers
1. True
2. True
3. True
4. False
5. True
6. False
 True or false
1. Typically, the more security measures added to a Web
site, the slower and more difficult it becomes to use.
2. The use of a digital signature helps to ensure integrity,
authenticity, and nonrepudiation.
3. The easiest and least expensive way to prevent threats to
system integrity is to install anti-virus software.
4. Credit cards are the dominant form of online payment
throughout the world.
5. In order to accept payments by credit card, online
merchants typically must have a merchant account
established with a bank or financial institution.
 Answers
1. True
2. True
3. True
4. False
5. True
 Multiple choice questions
1. Which of the following is not a unique
feature of e-commerce technology?
A) interactivity.
B) social technology.
C) global broadcasting.
D) richness.
Answer : c
 Multiple choice questions
2. The integration of video, audio, and text
marketing messages into a single marketing
message and consuming experience is an
example of:
A) richness.
B) ubiquity.
C) information density.
D) personalization.
Answer : A
 Multiple choice questions
3. Interactivity in the context of e-commerce can
be described as:
A) the ability to physically touch and manipulate
a product.
B) the complexity and content of a message.
C) the ability of consumers to create and
distribute content.
D) the enabling of two-way communication
between consumer and merchant.
Answer : D
 Multiple choice questions
4. E-commerce can be said to have begun
in:
A) 1983.
B) 1985.
C) 1995.
D) 2001.
Answer : C
 Multiple choice questions
1. Which of the following is the best
definition of transaction cost?
A. the cost of changing prices
B. the cost of participating in a market
C. the cost of finding suitable products
D. the cost merchants pay to bring their
goods to market

Answer : B
 Multiple choice questions
2. Which of the following is not an
example of a social network?
A. Wikipedia
B. Twitter
C. Pinterest
D. Facebook
Answer : A
 Multiple choice questions
3. Which type of e-commerce is
distinguished by the type of technology used
in the transaction rather than by the nature
of the market relationship?
A) Consumer-to-consumer (C2C)
B) Social e-commerce
C) Mobile e-commerce
D) Business-to-business (B2B)
Answer : C
 Multiple choice questions
4. Which of the following statements about the
Web is not true?
A) It is the technology upon which the Internet is
based.
B) It was developed in the early 1990s.
C) It provides access to pages written in HTML.
D) It provides access to Web pages that
incorporate graphics, sound, and multimedia.
Answer : A
 Multiple choice questions
1. All of the following are key elements of a business model
except:
A) competitive environment.
B) organizational development.
C) information technology strategy.
D) market strategy.
2. ________ and ________ are typically the most easily
identifiable aspects of a company's business model.
A) Market strategy; market opportunity
B) Value proposition; revenue model
C) Value proposition; competitive environment
D) Revenue model; market strategy
 Multiple choice questions
3. Which element of the business model addresses the
question of why a customer should buy from the firm?
A) revenue model
B) competitive advantage
C) market strategy
D) value proposition
4. Which element of the business model examines who else
occupies the firm's intended marketspace?
A) value proposition
B) competitive environment
C) competitive advantage
D) market strategy
 Answers
1. C
2. B
3. D
4. B
 Multiple choice questions
1.Which of the following basic system functionalities is used to
display goods on a Web site?
A) product database
B) digital catalog
C) shopping cart system
D) customer database system
 Multiple choice questions
2. A system design has two main components:
A) a logical design and a physical design.
B) a behavioral design and a technological design.
C) business objectives and technology requirements.
D) front-end systems and back-end systems.
 Multiple choice questions
3. Which of the following typically includes a data flow diagram
to describe the flow of information for a Web site?
A) physical design
B) logical design
C) testing plan
D) co-location plan
 Answers
1. B
2. A
3. B
 Multiple choice questions
1. The six key dimensions to e-commerce security are
nonrepudiation, authenticity, availability, integrity, privacy, and:
A) confidentiality.
B) usability.
C) functionality.
D) viability.
2. _______ refers to the ability to identify the person or entity
with whom you are dealing on the Internet.
A) Nonrepudiation
B) Authenticity
C) Availability
D) Integrity
 Multiple choice questions
3. ___ refers to the ability to ensure that an e-commerce site continues to
function as intended.
A) Nonrepudiation
B) Authenticity
C) Availability
D) Integrity
4. Which of the following is an example of an integrity violation of e-
commerce security?
A) A Web site is not actually operated by the entity the customer believes it
to be.
B) A merchant uses customer information in a manner not intended by the
customer.
C) A customer denies that he or she is the person who placed the order.
D) An unauthorized person intercepts an online communication and
changes its contents.
 Answers
1. A
2. B
3. C
4. D
Thank you
 Introduction to E-commerce
Section 7
Instructor Name: Dr. Heba Prepared By : Manar
Elqasaby Gamal
 True or false
1. Price is the top factor in online purchase decisions.
2. Online shoppers tend to browse for available products rather
than search for specific products they have determined in
advance.
3. Research shows that the two most important factors shaping
the decision to purchase online are utility and trust.
4. In 2012, mobile marketing grew at nearly the same rate as
traditional online marketing.
5. Psychographic research combines both demographic and
psychological data and divides a market into different groups
based on social class, lifestyle, and/or personality
characteristics.
 True or false
6. Clickstream behavior refers to the transaction log that
consumers establish as they move about the Web from
site to site.
7. Price dispersion refers to the difference between the
highest and lowest prices in a market.
8. customer engagement is the process of getting customers
to pass along a company's marketing message to friends,
family, and colleagues.
9. Conversations between a firm and the consumers of its
products in various forums such as blogs, Facebook, and
Twitter feeds are referred to collectively as customer
engagement .
 True or false
10. Viral marketing is the process of getting customers to pass
along a company's marketing message to friends, family,
and colleagues.
11. Channel conflict occurs when a new venue for selling
products or services threatens to destroy existing venues.
 Answers
1. True
2. False
3. True
4. False
5. True
6. True
7. True
8. False
9. True
10. True
11. True
 Multiple choice questions
1. A(n) ________ profile describes an individual's set of needs,
drives, motivations, perceptions and learned behaviors.
A) psychographic
B) opinion
C) psychological
D) lifestyle
2. Small ticket item sales outnumbered large ticket item sales
during the early days of e-commerce for all of the following
reasons except:
A) Purchase price was low.
B) Items were physically small.
C) Margins were low.
D) Selection was broad.
 Multiple choice questions
3. Which of the following is the top concern of Internet users
about purchasing online?
A) inability to see and touch before buying
B) difficulty of returning products
C) shipping costs
D) inability to speak to sales assistant in person
4. The broadest factor in consumer behavior is:
A) culture.
B) gender.
C) education.
D) psychological background.
 Multiple choice questions
5. In modeling online consumer behavior, consumer skills refers to
the:
A) education level of the consumer.
B) communication skills of the consumer.
C) knowledge consumers have about how to conduct online
transactions.
D) product evaluation skills of the consumer.
6. All of the following are important clickstream behavior factors
except:
A) the number of days since last visit.
B) the speed of clickstream behavior.
C) the amount of personal information supplied.
D) the number of advertisements viewed.
 Multiple choice questions
7. Which of the following types of online market segmentation
and targeting involves using age, ethnicity, religion, etc.?
A) psychographic
B) demographic
C) technical
D) contextual
8. Which of the following types of online market segmentation
and targeting involves using consumers' explicitly expressed
interest to segment and target?
A) psychographic
B) technical
C) search
D) contextual
 Multiple choice questions
9. Which of the following types of online market segmentation
and targeting involves tracking the actions users take on a Web
site?
A) technical
B) behavioral
C) contextual
D) psychographic
10. All of the following are traditional online marketing tools
except:
A) affiliate marketing.
B) permission marketing.
C) social marketing.
D) sponsorship marketing.
 Multiple choice questions
11. Which of the following is not a kind of Twitter marketing
product?
A) Promoted Shopping
B) Promoted Tweets
C) Promoted Accounts
D) Promoted Trends
12. refers to the difference between the highest and lowest
prices in a market.
A) catalog
B) Library
C) Price dispersion
D) social graph
 Answers
1. C
2. C
3. A
4. A
5. C
6. D
7. B
8. C
9. B
10. C
11. A
12. C
Essay questions
Q1:what are the factors of clickstream behavior?
– Number of days since last visit
– Speed of clickstream behavior
– Number of products viewed during last visit
– Number of pages viewed
– Supplying personal information
– Number of days since last purchase
– Number of past purchases
Essay questions
• Q2:what are the most important factors of shaping
decision to purchase online ?
- Utility:
• Better prices, convenience, speed
- Trust:
• Asymmetry of information can lead to
opportunistic behavior by sellers
• Sellers can develop trust by building strong
reputations for honesty, fairness, delivery
Essay questions
• Q3:what are the difference between Data Warehouses
and Data Mining?
Data warehouse:
– Collects firm’s transactional and customer data in single
location for offline analysis by marketers and site managers
Data mining:
– Analytical techniques to find patterns in data, model behavior
of customers, develop customer profiles
Thank you
 Introduction to E-commerce
Section 7
Instructor Name: Dr. Heba Prepared By :
Elqasaby Alshimaa Bstawy
 True or false
1. Liability is a feature of political systems in which a body of
law is in place that permits individuals to recover damages
done to them by other actors, systems, or organizations.
2. The four major dimensions of e-commerce ethical, social,
and political issues are public safety and welfare; property
rights; information rights; and governance .
3. The ethical principle of Universalism states that if an action is
not right for all situations, then it is not right for any
situation.
4. Anonymous information is demographic and behavioral
information that does not include any personal identifiers.
5. Most adult social network participants do not have any
expectation of personal privacy when using a social network.
 True or false
6. Profiling involves the creation of digital images that
characterize online individual and group behavior.
7. Single words, pictures, shapes, packaging, and colors used
to identify and distinguish goods are protected under
patent law.
8. Copyright protection protects against others copying the
underlying ideas in a work.
 Answers
1. TRUE
2. TRUE
3. TRUE
4. TRUE
5. FALSE
6. TRUE
7. FALSE trademark
8. FALSE protects original forms of expression not ideas
 Multiple choice questions
1. What is the first step in analyzing an ethical dilemma?
A) Define the conflict or dilemma and identify the higher-order
values involved.
B) Identify the potential consequences of your opinions.
C) Identify the options you can reasonably take.
D) Identify and describe the facts.
2. Which ethical principle states that, when confronted with an
ethical dilemma, individuals should take the action that achieves
the greater value for all of society?
• A) the Golden Rule
• B) Universalism
• C) the Collective Utilitarian principle
• D) the Social Contract rule
 Multiple choice questions
3. Which ethical principle emphasizes putting oneself into the
place of others and thinking of oneself as the object of the
decision?
A) the Golden Rule
B) Universalism
C) the Collective Utilitarian principle
D) the Social Contract rule
• 4. ________ is collected data that can be used to identify and
locate an individual.
• A) A personal profile
• B) P3P
• C) Anonymous information
• D) PII
 Multiple choice questions
• 5. Which of the following tools can companies use to track user
statements and views on newsgroups, chat groups, and other
public forums?
• A) cookies
• B) digital wallets
• C) search engines
• D) shopping carts
• 6. Google's Gmail advertising has raised concerns about which of
the following issues?
• A) privacy
• B) copyright
• C) trademark
• D) patents
 Multiple choice questions
• 7. Which of the following protects original forms of
expression in a tangible medium?
• A) trade secret law
• B) copyright law
• C) patent law
• D) trademark law
• 8. Downloading music tracks owned by record companies
without paying for them is an example of a violation of:
• A) patent law.
• B) copyright law.
• C) trademark law.
• D) privacy law.
 Multiple choice questions
• 9. Which of the following allows someone to obtain an exclusive
monopoly on the ideas behind an invention for 20 years?
• A) copyright law
• B) trade secret law
• C) patent law
• D) trademark law
• 10. All of the following statements about patents are true
except:
• A) It is more difficult to obtain a copyright than it is to obtain a
patent.
• B) The four types of inventions protected by patent law are
machines, manmade products, compositions of matter, and
processing methods.
• C) Computer programs can be patented.
• D) In order to be patented, an invention must be nonobvious.
 Multiple choice questions
• 11. All of the following are data elements that are often
gathered by e-commerce sites except:
• A) family member identities.
• B) photograph.
• C) location.
• D) address.
 Answers
1. D
2. C
3. A
4. D
5. C
6. A
7. B
8. B
9. C
10. A
11. A
Essay questions
Q1:Describe the purpose of intellectual property law and
outline the main types of intellectual property
protection.
• Answer: The purpose of intellectual property law is to
balance two competing interests: the public and the
private. The public interest is served by the creation of
inventions, works of art, music, literature, and other
types of intellectual expression. The private interest is
served by rewarding creators of intellectual property by
a time-limited monopoly that grants exclusive use to
the creator.
Essay questions
There are three main types of intellectual property protection:
copyright, patent, and trademark law. Copyright law protects
original forms of expression such as books, periodicals, and other
forms of written expression, art, drawings, photographs, music,
movies, performances, and computer programs. Patents grant
the owner a 20-year exclusive monopoly on the ideas behind an
invention. There are four types of inventions for which patents
are granted under patent law: machines, manmade products,
compositions of matter, and processing methods. Trademark law
is used to protect trademarks—marks used to identify and
distinguish goods and indicate their source.
Essay questions
Q2:Describe the five-step process that can be used to analyze an ethical dilemma. What other guidelines are there
to help in understanding a complicated ethical or moral situation?
Answer: The five-step process is:

1. Identify and describe the facts. Find out who did what to whom, and where, when, and how. It helps to get the opposing
parties involved in an ethical dilemma to agree on the facts.

2. Define the conflict or dilemma and identify the higher-order values involved. Ethical, social, and political issues always
reference higher values. Otherwise, there would be no debate. The parties to a dispute all claim to be pursuing higher values
(e.g., freedom, privacy, protection of property, and the free enterprise system).

3. Identify the stakeholders. Every ethical, social, and political issue has stakeholders: players in the game who have an
interest in the outcome, who have invested in the situation, and usually who have vocal opinions. Find out the identity of
these groups and what they want. This will be useful later when designing a solution.

4. Identify the options that you can reasonably take. You may find that none of the options satisfies all the interests involved,
but that some options do a better job than others. Sometimes, arriving at a "good" or ethical solution may not always be a
balancing of consequences to stakeholders.

5. Identify the potential consequences of your options. Some options may be ethically correct, but disastrous from other
points of view. Other options may work in this one instance, but not in other similar instances. Always ask yourself, "What if I
choose this option consistently over time?"
Thank you
 Introduction to E-commerce
Section 9
Instructor Name: Dr. Heba Prepared By :
Elqasaby Eman Fayez
 True or false
1) The average of users still spends more time watching television than using the Internet.

2) The impact of the Internet on media appears to be decreasing the total demand for media.

3) Internet users consume more media of all types than non-Internet users.

4) Cannibalization is a major challenge facing book publishers.

5) The situation in which sales of new digital products enhances sales of traditional products is
called complementarity.

6) Multimedia increases cannibalization impact for some visual, and aural media.

7) With advent of high-quality content, fee models become more successful.

8) Each segment of media industry structure dominated by many key players with large
crossover.
 True or false
9) Industry convergence describes convergence in the design, production, and distribution of content.

10) Net Value refers to that portion of perceived customer value that can be attributed to the fact that content is
available on the Internet.

11) As result for growth of online newspapers , Aggregators are recognizing need for high-quality content to
distribute and use for advertisements.

12) Readership is the only significant asset of newspapers.

13) In the agency model for e-books, prices are set by the publisher/manufacture.

14) User-generated content substitutes for and complements traditional commercial entertainment .

15) Wholesale business model defines Distributor as agent must charge publisher’s retail price.

16) In cannibalization, sales of new digital products replace sales of traditional products.
 Answers
1. TRUE 15. FALSE
2. FALSE 16. TRUE
3. TRUE
4. TRUE
5. TRUE
6. FALSE
7. TRUE
8. FALSE
9. FALSE
10. TRUE
11. TRUE
12. FALSE
13. TRUE
14. TRUE
 Multiple choice questions
1. Which of the following is not a current trend in online content?

A) Sales of music in digital form produce more revenue than sales of physical
units.
B) Readership of newspapers in print form continues to exceed online
readership.
C) Consumers increasingly accept the notion of paying for premium content.
D) Console game sales stagnate in comparison to online gaming.

2. Which of the following type of online content does the highest percentage
of Internet users purchase or view online?
A) newspapers
B) radio
C) games
D) music
 Multiple choice questions
3. Which of the following generates the largest share of media revenues?
A) video games
B) television
C) newspapers
D) radio

4. Which of the following occurs first in the process of media convergence?

A) media integration
B) media migration
C) media transformation
D) media maturity
 Multiple choice questions
5. Which of the following was the most troubled segment of the
publishing industry in 2012?
A) books
B) magazines
C) newspapers
D) periodicals

6. DRM refers to a combination of ________ for protecting digital

content.
A) hardware and software methods
B) technical and legal means
C) user and publisher agreements
D) local and remote policies
 Multiple choice questions
7. All of the following are reasons why the movie industry is likely
to be less disrupted by the Internet than the music industry
except:
A) Movies are more difficult to move around the Web without detection.
B) Movies typically have far larger file sizes than music tracks.
C) The movie industry is a concentrated oligopoly.
D) There are fewer firms competing for distribution rights.

8. Which of the following is the largest producer of revenues in the

entertainment industry?
A) radio
B) television
C) films
D) video games
 Multiple choice questions
9. Which of the following forms of online entertainment is expected to
generate the most revenue in 2015?

A) online video
B) online games
C) online music downloads
D) Internet radio

10. In 2012, which of the following forms of online entertainment produced the
least amount of revenue?

A) online music downloads

B) online video
C) online TV
D) Internet radio
 Multiple choice questions
11. in 2012, which of the following comprised the largest segment of the
online gaming audience?

A) social gamers
B) mobile gamers
C) casual gamers
D) console gamers

12. Which of the following is the fastest growing online gaming audience?

A) casual gamers
B) mobile gamers
C) social gamers
D) console gamers
 Multiple choice questions
13) One of the three segments of media industry structure are

a)Online news papers

b)E-books
c)Print
d) None of the above

14) Which one of the following is The stage of media convergence where New
standard book evolves that seamlessly integrates web and text components on
new mobile devices that integrate functionality of multiple platforms ----

A) media integration
B) media migration
C) media transformation
D) media maturity
 Multiple choice questions
15) One of the factors required to charge for online content is

A. Focused market
B. Sole source monopoly
C. All of the above
D. None of the above

16) One of the Challenges of E-book Platform is

A. Finding the right business model

B. Complementarity
C. All of the above
D. None of the above
 Multiple choice questions
17) ________ convergence involves the merger of media enterprises into synergistic
combinations that can create and cross-market content on different platform

A. Industry
B. Content
C. Technological
D. None of the above

18) ________ describes the development of hybrid devices that can combine the functionality of
two or more existing media platforms into a single device.

A. Industry
B. Content
C. Technological
D. None of the above
 Multiple choice questions
19) A business model that uses advertising revenue to provide some content for free, combined
with an option to obtain additional content for a price is called a(n) ________ model.

A. Freemium
B. Wholesale
C. Retail
D. Advertising

20 ) Content convergence describes convergence in the design, production, and ________ of

content.
A. Modify , production , warehouse
B. Design ,production , warehouse
C. Design , production , distribution
D. Design , retail , distribution
 Answers
1. B 12. B
2. A 13. C
3. B 14. D
4. B 15. C
5. C 16. A
6. B 17. A
7. D 18. C
8. B 19. A
9. A 20. B
10. D
11. B
Essay questions

Q1. Describe the three basic revenue models for digital content
delivery.
There are three revenue models for delivering content on the Internet.
1. subscription (usually "all you can eat," meaning the amount of
content that you can consume is unlimited)
2. a la carte (pay only for what you use).
3. advertising : provide content for free, often with a "freemium"
option, which makes additional content available for a cost.
In many cases, all three of the models work in tandem and
cooperatively: free content can drive customers to paid content, as music
companies have discovered with services such as Pandora.
Essay questions
Q2. Is the online newspaper industry a disruptive
technology? Why or why not?
• It is the most troubled segment of publishing industry
• Failure to protect content from free distribution
• 60% have reduced staff
However:
• Online readership growing at over 10%
• Mobiles, tablets provide new avenues
• More users willing to pay for premium content
• Aggregators are recognizing need for high-quality content
to distribute and use for advertisements
Essay questions

Q3:Mention the factors required to charge for online content.

1. Focused market
2. Specialized content
3. Sole source monopoly
4. High perceived net value
Portion of perceived customer value that can be attributed to fact that
content is available on the Internet
Thank you
 Introduction to E-commerce
Section 10
Instructor Name: Dr. Heba Prepared By :
Elqasaby Alshimaa Bstawy
 True or false
1) 1) The cost of participating in B2B e-commerce systems has fallen significantly.

2) Spot purchasing involves the purchase of goods based on immediate needs in

larger marketplaces that involve many suppliers.

3) Contract purchasing involves long-term written agreements to purchase

specified products, with agreed-upon terms and quality, for an extended period of

time.

4) ) management systems are corporate-wide systems that relate to all aspects of

production.

5) Spot production is a set of production methods that focuses on the elimination

of waste throughout the customer value chain.

Answer: False Lean production

 True or false
1) 1) The cost of participating in B2B e-commerce systems has fallen significantly.
Answer: TRUE
2) Spot purchasing involves the purchase of goods based on immediate needs in larger
marketplaces that involve many suppliers.
Answer: TRUE
3) Contract purchasing involves long-term written agreements to purchase specified products,
with agreed-upon terms and quality, for an extended period of time.
Answer: TRUE
4) ) management systems are corporate-wide systems that relate to all aspects of production.
Answer: False Enterprise
5) Spot production is a set of production methods that focuses on the elimination of waste
throughout the customer value chain.
Answer: False Lean production
 True or false
6) ENTERPRISE SYSTEM systems are generally older computer systems used

to manage key business processes in a firm. Answer:

7) Collaborative commerce is defined as the use of digital technologies to permit

organizations to work together to design, develop, build, and manage products

through their life cycles.

8) Value chain management services include automation of a firm's entire

procurement process on the buyer side and automation of the selling business

processes on the seller side.

9) A(n) multi-tier supply chain includes a company's secondary and tertiary

suppliers.
 True or false
6) ENTERPRISE SYSTEM systems are generally older computer systems used to manage

key business processes in a firm. Answer: FALSE Legacy

7) Collaborative commerce is defined as the use of digital technologies to permit organizations

to work together to design, develop, build, and manage products through their life cycles.

Answer: TRUE

8) Value chain management services include automation of a firm's entire procurement process

on the buyer side and automation of the selling business processes on the seller side.

Answer: TRUE

9) A(n) multi-tier supply chain includes a company's secondary and tertiary suppliers.

Answer: TRUE
 True or false

10) Sustainable business is a call for business to take social and

ecological interests, and not just corporate profits, into account in all

their decision-making throughout the firm.

 True or false
10) Sustainable business is a call for business to take social and ecological interests, and not just corporate

profits, into account in all their decision-making throughout the firm.

Answer: TRUE
 Multiple choice questions
1. Which of the following was the first step in the development of B2B
commerce?
A) Electronic Data Interchange (EDI)
B) automated order entry systems
C) digital storefronts
D) private industrial networks

2. All of the following are potential benefits of B2B e-commerce

except:
A) lower administrative costs.
B) lower search costs.
C) lower price transparency.
D) lower transaction costs.
 Multiple choice questions
3. What is the first step in the procurement process?
A) negotiate price
B) qualify the seller and its products
C) issue a purchase order
D) search for suppliers

4. The last step in the procurement process is:

A) sending a remittance payment.
B) sending the invoice.
C) shipping the goods.
D) delivering the goods.
 Multiple choice questions
5. Which of the following is a method of inventory cost management that
seeks to eliminate excess inventory?
A) lean production
B) sustainable production
C) just-in-time production
D) supply chain simplification

6. All of the following are major developments in supply chain

management except:
A) supply chain simplification.
B) EDI.
C) accountable supply chains.
D) the elimination of legacy computer systems.
 Multiple choice questions
7. EDI began as a(n) ________ system.
A) document automation
B) document elimination
C) continuous replenishment
D) MRP

8. An ________ provides electronic catalogs that represent the

products of thousands of direct manufacturers.
A) e-distributor
B) e-procurement company
C) exchange
D) industry consortium
 Multiple choice questions
9. What is the second step in the procurement process?
A) negotiate price
B) qualify the seller and its products
C) issue a purchase order
D) search for suppliers

10. Which of the following is a method of inventory cost management

that seeks to eliminate excess inventory?
A) lean production
B) sustainable production
C) just-in-time production
D) supply chain simplification
 Answers
1. B
2. C
3. D
4. A
5. C
6. D
7. A
8. A
9. B
10. C
Essay questions

Q1. Identify and describe the major stages in the development of

B2B commerce.
Answer: B2B commerce has evolved over a 35-year period through
several technology-driven stages. The major stages in this evolution
were
1. the development of automated order entry systems
2. electronic data interchange (EDI)
3. digital storefronts
4. private industrial networks
5. and net marketplaces.
Essay questions
• Q2. What are the seven basic steps in the procurement process?
• Answer: The procurement process refers to the way business firms
purchase the goods they need in order to produce the goods they
will ultimately sell to consumers. Firms purchase goods from a set of
suppliers that in turn purchase their inputs from another set of
suppliers. These firms are linked in a series of connected
transactions. The supply chain refers to this series of transactions,
which links sets of firms that do business with each other. It includes
not only the firms themselves but also the relationships between
them and the processes that connect them. There are seven steps in
the procurement process: searching for suppliers for specific
products; qualifying the sellers and the products they sell;
negotiating prices; credit terms, escrow requirements, quality, and
scheduling delivery; issuing purchase orders; sending invoices; goods
are shipped; and the buyer sends a payment. Each step is composed
of separate substeps that must be recorded in the information
systems of the buyer, seller, and shipper.
Essay questions

Q3:Define and explain supply chain management systems.

Answer: Supply chain management systems coordinate and link the activities
of suppliers, shippers, and order entry systems to automate the order entry
process from start to finish including the purchase, production, and moving of
a product from a supplier to a purchasing firm.
Thank you