5 Written questions
5 Matching questions
- Manual Inventory Controls
- Direct Distribution Channels
- a The process of counting and collecting information on current inventory manually. This is done on a periodic basis, unlike Continuous Inventory Control. Therefore, it is not well-suited to online selling as the current inventory status is not regularly updated.
- b The process of adding of a level of the distribution system. In e-Commerce this refers to the new type of intermediation being pursued by Web entrepreneurs who are exploiting markets that could not have existed before the Internet. Web sites that assist people in comparison shopping are an example of re-intermediation in e-Commerce. E-Check service providers are another example as they facilitate the online payment for goods and services.
- c The amount of output for each hour of work. Productivity has a direct effect on the profitability of a business. Increased productivity results in a stronger economy because it deters inflation of prices and wages. Economists attribute the strong growth of productivity in the US to the speed of technological advances such as the Internet. (Oelkers, E-Commerce, p. 13.)
- d digital communication (as between users) in which there is no timing requirement for transmission of messages; time is not a constraint for the person sending or the person receiving the message.
- e A company produces goods or services and then delivers those goods and services to the consumer without using an intermediary. This is a primary benefit to online shopping as consumers prefer immediate delivery.
5 Multiple choice questions
- a schedule of duties (taxes) imposed by a government on imported goods or in some countries exported goods
- A term that refers to immediate processing of an online purchase.
- The process of losing distribution channels when they are no longer needed. The growth of e-commerce has effected the need for retail intermediaries or "middlemen" that exist between the producer and the consumer. One example would be the effect that Online Ticket Purchases has had on Travel Agencies. Consumers are learning that the ability to buy directly from the producer saves money as the cost markup that occurs with the "middleman" has been eliminated.
- The ability to have face-to-face interaction with business counterparts, clients, customers, etc, at remote locations via the internet and computer video capture devices. As the speed of internet connections become faster, the use of video-conferencing is expected to have a major influence on the way we do business. It allows for international "virtual meetings" to occur without the inconvenience of time and travel.
- This refers to the movement of products or services from the producer to the consumer.
5 True/False questions
Internet Infrastructure → an organization or business which conducts electronic commerce with nations around the globe; any business that has a storefront on the Web and has the mechanisms in place to sell and ship to countries other than its own.
Electronic Wallets → A payment that is transmitted electronically either over the telephone line, or between Web sites on the Internet. Four types of electronic payments are:
Electronic Payments → A file on a seller's web site that contains buyer information such as buyer name, credit card information, and shipping requirements/preferences.
Exchange rate → the ratio at which the principal unit of two currencies may be traded; international businesses offer this information as a customer service.
Continuous Inventory Control → The process of managing product inventory where the information is updated instantaneously each time there is an increase or decrease to the stock-in-hand. This is the type of inventory management that is necessary to e-Commerce businesses as it enables the seller to provide customers with product availability information that is current.