DCO11130 Tutorial 2 (ANSWER) (Chapter 2 E-Marketplace !

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'ear#i#( O)*ecti+e
,po# co$pletio# o- thi chapter" .ou /ill )e a)le to! 1. Define e-marketplaces and list their components. 2. List the major types of e-marketplaces and describe their features. 3. Describe the various types of EC intermediaries and their roles. . Describe electronic catalo!s" shoppin! carts" and search en!ines. #. Describe the various types of auctions and list their characteristics. $. Discuss the benefits" limitations" and impacts of auctions. %. Describe barterin! and ne!otiatin! online. &. Define m-commerce and e'plain its role as a market mechanism. (. Discuss li)uidity" )uality" and success factors in e-marketplaces. 1*. Describe the economic impact of EC. 11. Discuss competition in the di!ital economy. 12. Describe the impact of e-marketplaces on or!ani+ations.

Co#te#t
,o- .lue /ile 0nc. 0s Chan!in! the 1e-elry 0ndustry 2.1 E-2arketplaces 2.2 3ypes of E-2arketplaces4 5rom 6torefronts to 7ortals 2.3 0ntermediation in E-Commerce 2. Electronic Catalo!s and 8ther 2arket 2echanisms 2.# 9uctions as EC 2arket 2echanisms 2.$ .arterin! and /e!otiatin! 8nline 2.% E-Commerce in the :ireless Environment4 2-Commerce 2.& Competition in the Di!ital Economy 2.( 0mpacts of EC on .usiness 7rocesses and 8r!ani+ations 2.1* E-;eality 2ana!erial 0ssues ;eal-:orld Case4 :al-2art Leads ;50D 9doption 9ppendi' 29 .uild-to-8rder 7roduction

A# /er to 0au e12reak Sectio# Re+ie/ 3ue tio# Sectio# 241 Re+ie/ 3ue tio# 1. What is the difference between a physical marketplace and an e-marketplace (marketspace)?

9 marketspace is an electronic marketplace. :hile traditional marketplaces are constrained by their physical locations" marketspaces use technolo!y to eliminate this constraint <by bein! online=. 2. List the components of a marketspace.

9 marketspace consists of the follo-in! components4 customers" sellers" !oods" infrastructure" a front end" a back end" intermediaries>business partners and support services. 3. Define a di ital prod!ct and pro"ide fi"e e#amples.

Di!ital products are !oods that can be transformed to di!ital formats and delivered over the 0nternet. E'amples of di!ital products -ould include e-books" soft-are" !raphics" video clips and electronic documentation. Sectio# 242 Re+ie/ 3ue tio# 1. Describe electronic storefronts and e-malls.

9n electronic storefront is a sin!le company?s :eb site -here products and services are sold. 9n electronic mall is an online shoppin! center -here many stores are located. 2. List the "ario!s types of stores and e-malls.

3here are several different types of stores and malls includin!4 !eneral stores>malls" speciali+ed stores>malls" re!ional or !lobal stores and pure online stores or clickand-mortar stores. 3. Differentiate between pri"ate and p!blic e-marketplaces.

7rivate marketspaces are !enerally o-ned by a sin!le firm" -hereas public marketspaces are !enerally o-ned and mana!ed by independent third parties. 7ublic marketspaces are also kno-n as e'chan!es. $. What are information portals? List the si# types.

0nformation portals are sin!le" personali+ed online points of access to business information inside an or!ani+ation. 3hey include4 commercial" corporate" publishin!" personal" mobile and voice portals. Sectio# 243 Re+ie/ 3ue tio# 1. List the roles of intermediaries in e-markets.

0ntermediaries can perform the follo-in! functions4 reduce search costs" increase or create privacy" provide more complete information" reduce contract risk" and reduce pricin! inefficiencies. 2. Describe e-distrib!tors.

9n online e-distributor is an intermediary that connects suppliers -ith buyers by a!!re!atin! multiple suppliers? product catalo!s in a sin!le location. 3. What are disintermediation and reintermediation?

Disintermediation is the elimination of intermediaries bet-een sellers and buyers. ;eintermediation is the establishment of ne- intermediary roles for traditional intermediaries that -ere disintermediated. Sectio# 245 Re+ie/ 3ue tio# 1. List the dimensions by which electronic catalo s can be classified.

Electronic catalo!s can be classified by the dynamics of the information presented" the de!ree of customi+ation and their inte!ration -ith business processes. 2. List the benefits of electronic catalo s.

8nline catalo!s have several advanta!es as seen in E'hibit 2.%. 6ome of these advanta!es include4 the ease of updatin! product information" improved search and comparison capabilities" ease of customi+ation" and several other benefits. 3. %#plain how c!stomi&ed catalo s are created and !sed.

Customi+ed catalo!s take information from e'istin! print catalo!s and product information and di!iti+e it. 3his di!iti+ed information is then stored in a database. 8nce the information is in a database it is very easy to select products and !roups of products to display to a potential customer. 3hese products and !roups of products are selected and presented to the customer throu!h a custom printed catalo! or throu!h a personali+ed :eb site. Sectio# 246 Re+ie/ 3ue tio# 2. Describe the benefits of electronic a!ctions o"er traditional (off-line) a!ctions. Electronic auctions are superior to traditional auctions because they do not suffer the same limitations. 3raditional auctions are limited by the short duration of the auction itself and the physical location of the auction. Electronic auctions can occur over !reater time periods and are not limited by location since they take place in electronic marketspaces. '. List the ma(or benefits of a!ctions to b!yers) sellers) and a!ctioneers.

9uctions provide a -ide variety of benefits to buyers" sellers and auctioneers. 9uctions provide several advanta!es to buyers because they allo- them to purchase !oods from a -ide variety of sellers -ithout the constraint of time or place. 3he -ide variety of different auctions styles meets the needs of a -ide variety of different purchasers. 9uctions benefit sellers by allo-in! them to sell to a hu!e potential marketplace not constrained by time or place. 9dditionally" it allo-s them to sell !oods that may only have a very small tar!et market. 6ellers are also able to sell their !oods at the prevailin! !lobal market price. 9uctioneers benefit from auctions because it provides a business model that allo-s their firms to stay in business. 3hey are able to benefit from usa!e by both buyers and sellers. *. List the ma(or impacts of a!ctions on markets.

9uctions can have an impact by actin! as a coordinatin! mechanism" actin! as a social mechanism to determine a price" actin! as a visible distribution mechanism and actin! as a portion of the EC system.