Chapter 10 E-Commerce: Digital Markets and Digital Goods

1) E-commerce is ubiquitous, meaning that is it available just about everywhere, at all times.

2) Marketspace is a marketplace extended beyond traditional boundaries and removed from a temporal and geographic location.

3) The first wave of e-commerce transformed the business world of books, music, and air travel.

4) In the second wave of e-commerce, nine new industries are facing a similar transformation scenario: advertising, telephones, movies, television, jewellery, real estate, hotels, bill payments, and software.

5) From a consumer point of view, ubiquity reduces transaction costs–the costs of participating in a market.

6) The universal technical standards of the Internet and e-commerce greatly increase market entry costs–the cost merchants must pay simply to bring their goods to market.

7) Information richness refers to the complexity and cost of a message.

8) The Internet and the Web vastly decrease information density–the total amount and quality of information available to all market participants, consumers, and merchants alike.

9) Cost transparency refers to the ability of consumers to discover the actual costs merchants pay for products.

10) Price transparency refers to the ability of consumers to discover the actual costs merchants pay for products.

11) Price discrimination is selling the same goods, or nearly the same goods, to different targeted groups at similar prices.

12) E-commerce technologies permit personalization.

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