E-Commerce Chapter 1

Electronic Commerce

Chapter 1 Questions

1. I think the first factor of people wanting to continue doing business in traditional ways is the simple fact that some people don't like to change. This is how they have done business for so many years and its worked for them so they don't see the need to change it. Another factor would be that some people would rather have the face-to-face interaction with their customers. And lastly I think the internet and new technology just scares some people. They don't feel as secure running business electronically.

2. Roommate matching services would probably be better done by using traditional commerce because with a service like that it might be better to communicate with people face to face. The person in charge of matching people up to room together would be able to get a better feel of personalities and have a better idea who they may room well together with and who they would not get along with. If this was done by e-commerce it would be more difficult to get a accurate judgment of personalities.

3. One of the major differences is in the first wave when the internet first launched and went viral it was mostly used for business use in the United States and most all pages were written in English. The second wave on the other hand was known for it going international and allowing people to do business in many different countries in many different languages.

4. Transaction costs are the total costs that a buyer and seller incur as they gather information and negotiate a purchase-and-sale transaction. They are important because for the sellers sake the cost of information search and acquisition can often be quite high and so transaction costs help protect the seller.

5. The biggest example of how e-commerce could help change a business's structure from a hierarchy to a network is the simple fact that the ease of access to researching different information. It is literally at their fingertips.

6. If a...