In reverse auctions, there is one buyer, usually an organization that wants to buy a product ora service. Suppliers are invited to submit bids. Online bidding is much faster thanconventional bidding, and it usually attracts many more bidders. The reverse auction is themost common auction model for large purchases. Everything else being equal, the lowest-price bidder wins the auction. Governments and large corporations frequently mandate thisapproach, which may provide considerable savings.12.
Define electronic bartering.An electronic form of barter is where organizations and people exchange services and goodsvia an electronic bulletin board or website without the use of money. This is the logicalextension of one of the oldest forms of trade.13.
Describe electronic storefronts and malls.Electronic storefronts are the entry point into one of the hundreds of thousands of specialized(selling only one or a very few related items) or general (selling many items) stores on theInternet. An electronic mall, also known as a cybermall, is an electronic site that is a sharedentry point for a number of commercial businesses or electronic storefronts. Somecybermalls allow for shopping carts to be wielded across the commercial businesses with asingle checkout point and often supply tools for the creation of the individual storefronts.
What are some general features (critical success factors) that make the delivery of onlineservices (e.g., cyber-banking, securities trading, job hunting, travel services) successful forboth sellers and buyers?Selling books, toys, computers, and most other products on the Internet may reduce vendors
selling costs by 20 to 40 percent. Delivery of services, such as buying an airline ticket orbuying stocks or insurance online, can be done 100 percent electronically, with considerablecost reduction potential. Therefore, online delivery of services is growing very rapidly, withmillions of new customers being added annually.15.
Describe how customer service is provided online and list its four phases.Customer service can be provided online in several ways. A few examples include FAQs andonline submission of technical questions/concerns.Customer service should be approached as a business life cycle process, with the followingfour phases:
Phase 1: Requirements.
Assist the customer to determine needs by providing photographs of a product, video presentations, textual descriptions, articles or reviews, sound bites on a CD,and downloadable demonstration files. Also use intelligent agents to make requirementssuggestions.
Phase 2: Acquisition.
Help the customer to acquire a product or service (online order entry,negotiations, closing of sale, and delivery).