Chapter 10 Define the term E-Commerce. E-Commerce has grown rapidly. Explain the

Question

Chapter 10

Define the term E-Commerce.

E-Commerce has grown rapidly. Explain these two terms that apply to E-Commerce: ubiquity and global reach.

Define the term digital goods. Identify one item that you have purchased or obtained digitally over the last year.

Name and describe the three categories or types of electronic commerce.

Explain what is meant by the term “wisdom of crowds.” How does this relate to marketing?

Explain how the “social graph” or social relationships affect marketing and e-Commerce.

Explanation / Answer

E-commerce is buying and selling of goods and services thorugh online medium.All the business transaction in e-commerce is done electronically i.e. paperless and no physical contact.

Ubiquity in e-commerce means one can do the transaction at any time and in any place and it is opened to 24*7, global reach means it has accesibility to more people and do not curtail to any specific geographical boundary.

Digital good is any good which is stored in digital form and transfered to the buyer electronically.It is not delivered in physical form but in digital mode through e-mail or downloading from the website of the company.I have purchased an e-book through this medium.

Three categories of e-commerce are

a- B2B- It is business to business e-commerce when use of the product is not for the end customer but any business purchase it.e.g.transactions between companies

b- B2C- Business to consumer e-commerce is when retail buyer purchase the product from the company.Here the end consumer purchase the goods.e.g. purchase of cloth, shoes etc by the consumer

c- C2C-Consumer-to-Consumer e-commerce is when consumer transact with a consumer through a third party like auctioning,e-bay etc.

Wisdom of crowds means how many peoples are smarter than few and how they shape the business, economics, society due to their smartness.In marketing these groups of people use the superior version of goods and services provided by the company.These smarters people can be ask by any company in providing input in their products and through this these people can also purchase the product because they will think that they have given some inputs.

Through medium of social relationship like facebook, instagram a person can let his/her friend circle that he/she has purchase a goods and it will promote the product with out any investment of the company.

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