E-commerce

A sales associate has been hired to write blog posts that will be regularly published on a blog about new beauty products. The blog posts are designed to include the SEO terms that relate to the company’s newest skin care product, using the keywords that will also be used in their advertising campaigns. What part of the e-commerce timeline would this be a part of?

• implementation

• mobile platform planning and implementation

• social media planning

• web development

Answer explanation

The sales associate will be performing tasks related to search engine optimization (SEO) which occurs during the implementation phase of the e-commerce timeline.

Buying and selling of goods and services that are executed through wireless mobile devices (including smartphones and tablets) are known as C-commerce transactions.

• True

• False

Answer explanation

M-commerce, or mobile commerce, describes transactions executed through wireless mobile devices.

In e-commerce, the term “information density” refers to both the total amount of information available to all individuals in a market (including customers and stakeholders) and the quality of this information.

• True

• False

Answer explanation

The total amount of information as well as the quality of information available to all individuals in a market (including customers and stakeholders) is referred to as information density.

A cost-benefit analysis is a useful tool used to analyze the costs associated with implementing a project or set of activities and the benefits that can be achieved as a result of the implementation. Which of the following would be considered costs when conducting a cost-benefit analysis? More than one answer may be selected.

• Time commitment costs

• Capital outlay

• Anticipated retail product markup

• Brand exposure

Answer explanation

Capital outlay and time commitment costs are both considered costs when conducting a cost-benefit analysis. Brand exposure is considered a benefit; product markup is not considered when doing a cost-benefit analysis.

What are the names of some forms of e-commerce that involve the consumer providing a product or service? More than one answer may be correct.

• consumer-to-administration

• consumer-to-institution

• consumer-to-consumer

• consumer-to-business

Answer explanation

Online marketplaces, such as eBay and Craigslist, where one consumer sell to another consumer allow for consumer-to-consumer (C2C) transactions. Bidding or auction sites such as Fiverr, Freelancer, and Shutterstock, enable consumers to provide services to businesses, which are called consumer-to-business (C2B) transactions. Consumer-to-administration transactions include consumer interaction with government or other authoritative bodies to pay taxes, secure building permits, or pay tuition, for instance.

Which of the following are considered sales and marketing customer acquisition costs (CAC)? More than one answer may be selected.

• hiring a sales assistant to reply to incoming inquiries related to a social media ad campaign at a rate of $20 per hour

• the cost of renting a meeting room for a three-day marketing retreat

• the cost of materials used to create the demo for a new product that will be part of the fall line

• spending $5,000 on a Facebook ad campaign

Answer explanation

Customer and acquisition costs include all sales and marketing costs associated with engaging a potential customer and encouraging them to make a purchase of a product. Spending money on a Facebook campaign, the salaries of sales and marketing personnel, and overhead costs related to sales and marketing are all advertising and promotional expenses.

From the following list, select all the statements that correctly characterize or define e-commerce ubiquity.

• The term refers to the degree an organization has gained access to consumers, thus increasing the likelihood of product or service adoption.

• It gives customers the ability to purchase products and services regardless of time or location.

• It increases transaction costs (the costs of partaking in a specific market) for both retailers and consumers.

• It is the ability of an organization to create a strong presence among consumers in many places, with minimal time constraints, to sell the products and services they offer.

Answer explanation

Amazon.com exemplifies the concept of e-commerce ubiquity, in both the degree to which the company has gained access to its consumers and the advantages it offers them.

Michelle runs a shop on Etsy. One month, she spends $2,800 to promote her shop on Etsy and other social media sites. In that month, she gains 50 new customers. Customers purchased products that cost $100 and were marked up by 100%. What is the actual amount of profit earned per customer, taking into account materials and promotional costs?

• $6.00

• $56.00

• -$56.00

• -$6.00

Answer explanation

In this scenario, the customer acquisition cost is equal to $2,800/50, or $56 per new customer. A 100 percent markup on a product that cost $100 means Michelle generates $50 per sale. Since her CAC is $56, she actually earned -$6.00 per sale in this scenario.

Describe user-generated content (UGC). More than one answer may be correct.

• UGC includes posts to websites, blogs, and social media sites.

• UGC is online content that has been created and posted by unpaid contributors such as customers or fans of a product or service.

• UGC is not widely regarded as a reliable source of information about products or services.

• UGC is facilitated through the use of a variety of e-commerce technologies that allow users to interact with a variety of individuals via posts in the form of images, videos, and text.

Answer explanation

User-generated content is created and posted by unpaid contributors. UGC includes a variety of content types and resources. Organizations should carefully monitor social media sites to see what customers and the public are saying about their products or services. Many e-commerce platforms provide technology for users to create and post content about products or services.

Which statement accurately describes the global reach of e-commerce? More than one answer may be correct.

• E-commerce allows organizations to reach consumers across the globe.

• E-commerce technology creates a global marketplace across cultural and national boundaries far more effectively than traditional commerce options.

• Before e-commerce, many organizations found it easy to operate at locations across the globe.

• Using e-commerce, organizations can reach the largest number of potential and existing customers, thus increasing their global influence.

Answer explanation

E-commerce has the ability to reach anyone with an internet connection and a digital device. E-commerce allows organizations to reach the maximum number of customers at an extremely low cost. This money is collected and a portion of it is paid to access the internet.