(Solution Manual) Electronic Commerce

Schneider, 12

Business

Solution Manual

12th Edition

• $15.00 $50.00

---

Description

Solution Manual for Electronic Commerce, The downloadable file consists of 345 pages, and the total size of the file is 4.36 MB. Purchase now only for highly discounted price.

Author(s): Schneider

---

---

Study Note Preview

Electronic Commerce, 12th Edition Solutions 1-1 Electronic Commerce , 12th Edition Chapter 1 Solutions Review Questions 1.What are the two main categories of electronic commerce? Answer: The two main categories or electronic commerce are: • Consumer shopping on the Web, often called business-to-consumer (or B2C) • Transactions conducted between businesses on the Web, often called business-to-business (or B2B) 2.List several activities that might be considered business processes. Answer: Answers may vary. Transferring funds, placing orders, sending invoices, and shipping goods to customers are all examples of business processes . 3.List several activities that might be considered a part of business -to- government electronic commerce. Answer: Answers may vary. Paying taxes, filing required reports and selling goods to a government agency through a state’s Web site are all examples of business -to- government electronic commerce activities. 4.Name the technology that businesses have used since the 1960s to exchange transaction information electronically. Answer: Since the 1960s, businesses have used electronic data interchange to exchange transaction information electronically . Electronic data interchange (EDI) occurs when one business transmits computer -readable data in a stand ard format to another business. 5.What is a value-added network? Answer: A value-added network (VAN) is an independent firm that offers connection and transaction-forwarding services to buyers and sellers engaged in EDI. Before the Internet came into existence as we know it today, VANs provided the connections between most trading partners and were responsible for ensuring the security of the data transmitted. (Solution Manual all Chapter)Electronic Commerce , 12th Edition Solutions 1-2 6. What drove the burst of enthusiasm that led to a rapid growth of investment in online busine ss during the first wave of electronic commerce? Answer : In the first wave of electronic commerce, many companies and investors believed that being the first Web site to offer a particular type of product or service would give them an opportunity to be su ccessful. This strategy is called the first - mover advantage. 7. What are some of the drawbacks to a strategy that attempts to capitalize on the first -mover advantage? Answer: First movers must invest large amounts of money in new technologies and make guesses about what customers will want when those technologies are functioning. The combination of high uncertainty and the need for large investments makes being a first mover very risky. As many business strategists have noted, “It is the second mouse th at gets the cheese.” 8. What specific Internet technologies led to a growth in electronic commerce in developing countries during the third wave of electronic commerce? Answer: The increases in global online business, especially in less developed countries, are due in part to the growing numbers of people using inexpensive devices such as mobile phones and tablet devices to access the Internet. 9. In what specific ways can businesses use online social interactions? Answer : Businesses can use online social in teractions to advertise, promote, or suggest specific products or services. 10. What is crowdsourcing? Answer: Gathering multiple small investors together for specific business funding activities is called crowdsourcing . 11. How can online businesses use data analytics to increase sales? Answer : Companies that store large amounts of data about their customers’ behavior on their Web sites can combine that information with their existing data about customers’ past purchases to predict the kinds of products, services, or special offers in which each customer might be interested. 12. Briefly explain the difference between a business model and a revenue model. Answer : A business model is a set of processes that combine to achieve a company’s primary goal, which is typically to yield a profit. A revenue model is a specific collection of business processes used to identify customers, ma rket to those Electronic Commerce , 12th Edition Solutions 1-3 customers, and generate sales to those customers. 13. What is a shipping profile? Answer : A product’s shipping profile is the collection of attributes, including weight and size, that affect how easily a product can be packaged and delivered. 14. Briefly explain why many industry observers believe that describing the history of electronic commerce as a series of “booms and busts” is incorrect. Answer : Looking back from today’s perspective, we can see that as the general economy has expanded and co ntracted, electronic commerce has consistently expanded more in the good times and contracted less in the bad times than other economic sectors. 15. Why is most business activity conducted today in hierarchical organizations rather than in markets? Answer : The late Nobel laureate Ronald Coase wrote an essay in 1937 in which he questioned why individuals who engaged in commerce often created firms to organize their activities. He was particularly interested in the hierarchical structure of these busin ess organizations. Coase concluded that transaction costs were the main motivation for moving economic activity from markets to hierarchically structured firms. 16. What is a network economic structure? Answer : A network economic structure is a business structure wherein firms coordinate their strategies, resources, and skill sets by forming a long -term, stable relationship based on a shared purpose. 17. List four primary activities that might be conducted in a particular business value chain. Answ er: Answers can include any four of the following: design, produce, promote, market, deliver, and support . 18. Briefly explain why an online business can find it difficult to establish trust with its customers. Answer : Online businesses face a difficult challenge because a kind of anonymity exists for companies trying to establish a Web presence. Because Web site visitors will not become customers unless they trust the company behind the site, a plan for establishing credibility is essential. Se llers on the Web cannot assume that visitors will know that the site is operated by a trustworthy business. Electronic Commerce , 12th Edition Solutions 1-4 Customers’ inherent lack of trust in “strangers” on the Web is logical and to be expected; after all, people have been doing business with their ne ighbors —not strangers —for thousands of years. Businesses on the Web must find ways to overcome the well-founded tradition of distrusting strangers . 19. In what ways does localization differ from language translation? Answer : The translation services and software manufacturers that work with electronic commerce sites do not generally use the term “translation” to describe what they do. They prefer the term localization, which means a translation that considers multiple elements of the local environment, su ch as business and cultural practices, in addition to local dialect variations in the language. The cultural element is very important because it can affect —and sometimes completely change —the user’s interpretation of text. 20. Briefly describe the functions performed by a freight forwarder in international electronic commerce. Answer : A freight forwarder is a company that arranges shipping and insurance for international transactions. Exercises 1. In two or three paragraphs, distinguish between the terms “business activity,” “business process,” and “transaction.” Answer : A business activity is a task performed by a worker in the course of doing his or her job while a transaction is an exchange of value, such as a purchase, a sale, or the conversion of raw materials into a finished product . The group of logical, related, and sequential activities and transactions in which businesses engage are often collectively referred to as business processes . 2. Some writers have called the emergence of electronic commerce to be a “revolution.” Others have described it as a series of waves. In about 100 words, briefly discuss the merits of each point of view. Answer: Answers will vary. Students could mention that using the term “revolution” directly compares this emergence of electronic commerce to other historic changes in economic organization, such as the Industrial Revolution. On the other hand, referring to this emergence as a series of waves implies that these major changes do not occur as a single event but rather a series of development s over an extended period of time. 3. In about 100 words, outline the changes in Internet technology that drove Electronic Commerce , 12th Edition Solutions 1-5 much of the expanded consumption of digital content during the second wave of electronic commerce. Answer: Answers will vary but could include: ▪ Increase in broadba nd connections ▪ Subsidization of citizens’ Internet access in some countries ▪ E-mail used as integral part of marketing and customer contact strategies ▪ Emergence of digital product distribution businesses to legally distribute music, video, and other digital products ▪ Emergence of Web 2.0 4. The use of online advertising in the second wave of electronic commerce was significantly different than in the first wave. In a paragraph or two, briefly describe this change. Answer: After a pronounced dip in online advertising activity and revenues near the end of the first wave, companies began the second wave with a renewed interest in making the Internet work as an effective advertising medium. Some categories of online advertising, such as employment servi ces (job -wanted ads) have grown rapidly and have replaced traditional advertising outlets. Companies such as Google have devised ways of delivering specific ads to Internet users who are most likely to be interested in the products or services offered by t hose ads. 5. In the first wave of electronic commerce, many businesses tried to capitalize on a first -mover advantage. In the second wave, businesses were more likely to employ a smart -follower strategy. In about 100 words, compare the first - mover advantage to the smart -follower strategy. Answer: Responses will vary but may be similar to the following: With first -mover advantage many companies and investors believed that being the first Web site to offer a particular type of product or service would give th em an opportunity to be successful. As business researchers studied companies who had tried to gain a first - mover advantage, they learned that being first did not always lead to success . First movers must invest large amounts of money in new technologies a nd make guesses about what customers will want when those technologies are functioning. The combination of high uncertainty and the need for large investments makes being a first mover very risky. An approach in which a business observes first -mover failur es and enters a business later, when large investments are no longer required and business processes have been tested, is called a smart -follower strategy. 6. Many customers who use mobile devices prefer to make purchases using a mobile app instead of their devices’ Web browsers. It is less clear that these customers search for and select specific products using only the merchant’s dedicated mobile app. In about 200 words, outline the advantages and disadvantages of using a specific merchant’s mobile app to s elect and purchase products. Electronic Commerce , 12th Edition Solutions 1-6 Answer: Advantages might include: ▪ Faster to find and purchase product ▪ Ease of use ▪ One-touch access ▪ Easy to comparison shop while in a brick -and-mortar ▪ Receive instant retailer and/or product notifications Disadvantages might include: ▪ Limited in terms of product offerings from just one retailer ▪ Smaller screen sizes can make it difficult to view products or look through multiple products quickly ▪ Smaller devices may make it more difficult to enter account /consumer information ▪ Security concerns regarding entering sensitive payment information 7. Many companies are combining their online business activities with an existing physical presence. In about 100 words, explain which elements they are combining and what problems they are solving by doing so. Answer: A combination of electronic and traditional commerce strategies works best when the business process includes both commodity and personal inspect ion elements. Especially considering used products electronic commerce provides a good way for buyers to research and obtain information about available products , features, reliability, prices, and retailers , and also helps buyers find specific products that meet their exact requirements. The range of conditions of used products, think cars, makes the traditional commerce component of personal inspection a key part of the transaction negotiation. Another appro ach to combining online and traditional selling strategies has been developed to alleviate the burden and high cost of shipping items that h ave terrible shipping profiles. Many retailers offer a buy online, pick -up in store feature . 8. Briefly define the te rm “transaction cost” and, in about 100 words, outline several specific ways in which electronic commerce can reduce transaction costs. Answer: Transaction costs are the total of all costs that a buyer and seller incur as they gather information and negot iate a purchase -and-sale transaction. Responses on specific ways electronic commerce reduces costs will vary but could include: ▪ No brick and mortar store required ▪ Fewer storage requirements ▪ Elimination of processing errors Electronic Commerce , 12th Edition Solutions 1-7 9. In a paragraph or two, explain how the Internet creates or enhances the network effect. Answer: Responses will vary but may include discussions on how the Internet allows the technologies (and thus the people behind them) such as e -mail and social media have a global reach . 10. Write a paragraph in which you distinguish between a business value chain and an industry value chain. Answer: A business value chain is a way of organizing the activities that each strategic business unit undertakes to design, produce, promote, market, del iver, and support the products or services it sells. An industry value chain describe s the larger stream of activities into which a particular business unit’s value chain is embedded. To visualize this , start with the inputs to your strategic business unit and work backward to identify your suppliers’ suppliers, then the suppliers of those suppliers, and so on. Then start with your customers and work forward to identify your customers’ customers, then the customers of those customers, and so on. 11. Political and cultural issues can limit the ability of companies to do business in other countries. In about 100 words, provide examples of how specific government rules and cultural norms can interfere with the conduct of electronic commerce across intern ational borders. Answer: Responses will vary but may include: ▪ Translation and localization issues ▪ Different cultural interpretations of simple design elements, such a shopping cart ▪ Government control of Internet access in certain countries Cases C1. Silvercar 1. Silvercar excludes customers without access to a smartphone or tablet as well as customers who prefer one -on-one service and would rather speak to a person at a rental counter or even over the phone . By choosing not to serve these customers, Silvercar is saving a significant amount on the costs associated with rental counter space, customer transportation to the rental facility , and customer service personnel. 2. Answers will vary . A response may include the threat of lost market share. Silvercar attracts customers who prefer convenience . To reduce this threat, you could suggest the development of a mobile app , a curbside service option and an all -inclusive rental rate for those customers who would prefer that . Electronic Commerce , 12th Edition Solutions 1-8 3. Answers may vary. The Silvercar employee delivering the car may be the only personal interaction the customer has with the company so it is extremely important that this person be helpful. The customer may have questions regarding specifics of the rental agreement or the functional ity of the car. This employee should possess enough knowledge to assist the customer in a friendly, courteous and respectful way. C2: Hal’s Woodworking 1. Responses will vary. Several possible elements are specified below: STRENGTHS -Established stron g reputation in their geographic area -Community connections/ gathering place -Focused dedication to customer service -Pre-existing collection of workshops and seminars -Web -ready, robust inventory control system WEAKNESSES -Less bulk buying power than la rger chains -No national brand reputation -Significant costs to establish Web site with uncertain chance of recouping expenses -No longer stocks lumber OPPORTUNITIES -Exploit regional expertise and knowledge (gardening, regulations, building benefits) -Power tool expertise (classes, demos, booklets, DVDs) -Partner with Web sites of other local and national businesses, organizations THREATS -Competition from national hardware chains -Competition from manufacturers 2. Responses will vary. Several possible elements are specified below: STRENGTHS -Established strong reputation with existing high -end customers -Focused dedication to customer service -Web -ready, robust inventory control system WEAKNESSES -Less bulk buying power than larger chains -No national brand reputation -Significant costs to establish Web site with uncertain chance of recouping expenses OPPORTUNITIES -Power tool expertise ( offer e -books and online videos ) Electronic Commerce , 12th Edition Solutions 1-9 -Offer specialty tools not readily available elsewhere -Partner with W eb sites of local and national woodworking organizations THREATS -Competition from national hardware chains -Competition from manufacturers 3. Assumptions made by students will vary, but may include the following: ▪ Assume Hal’s Woodworking plans to expand its specialty products and servic es to a national customer base ▪ Assume Hal’s Woodworking will invest in the software to connect its in ventory system to the Internet ▪ Assume Hal will not try to compete with national chains on items that the chains may offer at significantly lower prices Specific site content and features that may be included could include: a. Feature unique products or manufacturers that the national chains do not. These could include regional businesses and manufacturers who cater to the woodworking/cabinet making markets b. Live access to inventory system (to determine if desired items are in -stock or needs to be special ordered ) c. Online training (mix of free and for sale): Hal already has a large body of product and skill traini ng materials that coul d be added to the Web site. Print outs and sample videos could be offered for free, while related full-length videos and e-books could be offered for sale for download . Store experts could offer live chats on specific topics or offer t ips and support on a bulletin board s ystem. d. Make a direct online translation of the store’s pre -existing bulletin board of equipment sales and job listings. This could easily be ex panded to a national audience. 4. Answers will vary . Additional c osts could b e associated with building, hosting, and maintaining Web site , as well as providing customer service to the national audience . Benefits could include the development of strong brand recognition, and increased sales and customer base . Electronic Commerce , 12th Edition Solutions 2-1 Electronic Commerce , 12th Edition Chapter 2 Solutions Review Questions 1.What is an internet (small “i”)? Answer : An internet (small “i”) is a group of computer networks that have been interconnected. In fact, “internet” is short for “interconnected network.” 2.Why did the U.S. Department of Defense undertake the research project that would become the Internet? Answer : In the early 1960s, the U.S. Department of Defense became concerned about the possible effects of nuclear attack on its computing facilities so they began examining ways to connect these computers to each other and also to connect them to weapons installations distributed all over the world. The goal of this research was to design a worldwide ne twork that could remain operational, even if parts of the network were destroyed by enemy military action or sabotage. The researchers determined that the best path to accomplishing their goals was to create networks that did not require a central computer to control network operations. 3.What were Bitnet and Janet? Answer : Bitnet was an independent academic research network developed in the 1980s. Janet is the United Kingdom’s academic research network . 4.On the Internet, what is the function of a network access point? Answer : Network access points provide the primary connection points for access to the Internet backbone in the United States. 5.Briefly describe one example of how the Internet of Things might be used to reduce costs or increase effic iency in a business. Answer : Answers will vary but could include examples such as: ▪Coca -Cola added Internet -connected voice recognition devices to its inventory control, shipping, and service support systems, saving millions and improving order accuracy ▪Many utility companies, such as BC Hydro, an electric utility in British Columbia, C anada, uses Internet -connected smart electric meters and remoteElectronic Commerce , 12th Edition Solutions 2-2 monitoring devices to manage and measure the flow of electricity ▪ Argentine bank Banco de Cordoba used the Internet to connect 2600 video cameras, a new network, and digital signs located in 2 43 branch locations to its central control and security system ▪ SK Solutions, a provider of construction safety services in Dubai, uses Internet -connected sensors that continually monitor the weight, position, movement, and inertia of machinery and equipme nt along with ambient wind speed and temperature to give its customers increased worker safety, faster project co mpletions, and reduced downtime ▪ The Rio Tinto coal mining operation in Western Australia uses Internet - connected control systems to operate a f leet of 54 autonomous trucks, an autonomous railway system, and drilling operations, removing safety hazards to the surrounding community and reducing risky work conditions for employees. 6. What is a border router? Answer : A border router is a computer located at an organization ’s point of connection to the Internet that decide s the best path on which to forward each packet of information as it travels on the Internet to its destination. Synonymous with gateway computer and gateway router. 7. What are the key elements of a private network? Answer : A private network is a leased -line connection between two companies that physically connects their computers and/or networks to one another. The key elements include the leased -line and the computers. 8. What is a protocol? Answer : A protocol is a collection of rules for formatting, ordering, and error - checking data sent across a network. 9. Briefly describe what the TCP/IP protocol does for the Internet. Answer : The TCP/IP protocol provide s the basis for the operation of the Internet. The TCP controls the disassembly of a message or a file into packets before it is transmitted over the Internet, and it controls the reassembly of those packets into their original formats when they reach their dest inations. The IP specifies the addressing details for each packet, labeling each with the packet’s origination and destination addresses. 10. Why was it necessary for the Internet to adopt IPv6? Answer : In the early days of the Internet, the 4 billion addresses provided by the IPv4 rules certainly seemed to be more addresses than an experimental research network Electronic Commerce , 12th Edition Solutions 2-3 would ever need. However, the worldwide growth in the number of mobile devices and the Internet of Things has consumed existing IPv4 addresses much faster than anyone had predicted and the last available IPv4 addresses were allocated in the summer of 2015. Thus, the necessity for IPv6. The number of available addresses in IPv6 is 34 followed by 37 zeros —billions of times larger than the address s pace of IPv4. 11. Briefly describe the function of Web browser software. Answer : Web browser s oftware is software that lets users read HTML documents and move from one HTML document to another using hyperlinks. Web browser software sends requests for Web page files to other computer s, which are called Web servers . The Web server software receives requests from many different Web clients and responds by sending files back to those Web client computers. Each Web client computer’s Web browser software then renders those files into a Web page. Examples of popular Web browser software include Google Chrome, Microsoft Internet Explorer, and Mozilla Firefox. 12. What is a Uniform Resource Locator? Answer: The combination of the protocol name and the domain name is called a Uniform Resource Locator (URL). It contains the protocol used to access the page and the page’s location. Used in place of dotted quad notations. 13. In what ways does an HTML document differ from a word -processing document? Answer : An HTML document differs from a word -processing document in that it does not specify how a particular text element will appear. For example, you might use word processing software to create a document heading by setting the heading text font to Ari al, its font size to 14 points, and its position to centered. The document displays these exact settings whenever you open the document in that word processor. In contrast, an HTML document simply includes a heading tag with the heading text. Many differen t browser programs can read an HTML document. Each program recognizes the heading tag and displays the text in whatever manner each program normally displays headings. 14. Briefly explain how the deep Web contains hidden information. Answer : The deep Web is information that is stored in databases and is accessible to users through Web interfaces. The deep Web can be difficult or impossible to search because its information is not stored on the Web, but in databases that provide results only when a user requests specific information through the Web site that maintains the database. Available data that is never requested remains hidden. 15. Describe, in general, the function of HTML tags. Electronic Commerce , 12th Edition Solutions 2-4 Answer : The tags in an HTML document are interpreted by the Web browse r and used by it to format the display of the text enclosed by the tags. In HTML, the tags are enclosed in angle brackets (<>). 16. Describe, in general, the function of XML tags. Answer : Unlike HTML, XML is not a markup language with defined tags. It is a framework within which individuals, companies, and other organizations can create their own sets of tags. Therefore, XML tags do not specify how text appears on a Web page. T he tags convey the meaning (the semantics) of the information included within them. 17. What is bandwidth and why do people often think of it as a measure of connection speed? Answer : Bandwidth is t he amount of data that can be transmitted in a fixed amount of time. The higher the bandwidth, the more data can be transmitted in each second and the faster Web pages appear on your screen ; this is probably why it is thought of as a measure of connection speed . Each connection option offers different bandwidths, and each ISP offers varying bandwidths for each connection option. 18. List the Internet connection options that might be suitable for a small business in an urban location with five employees. Answer : A DS0 leased digital line or a fixed -point wireless connection would probably suitable in this situation. 19. What is the main funct ion of a wireless access point? Answer : The main function of a wireless access point (WAP) is to transmit network packets between Wi -Fi-equipped computers and other devices that are within its range. 20. What is roaming? Answer : Roaming is t he shifting of Wi -Fi devices from one WAP to another without requiring intervention by the user. 21. What is mesh routing? Answer : Mesh routing is a version of fixed -point wireless that directly transmits Wi - Fi packets through hundreds of short -range transceive rs that are located close to each other. 22. Briefly describe the goals of the Internet2 project . Electronic Commerce , 12th Edition Solutions 2-5 Answer : Internet2 is focused on technology development. As an experimental test bed for new networking technologies that is separate from the original Internet , Internet2 serves as a proving ground for new technologies and applications of those technologies that will eventually find their way to the Internet. 23. List some commercial applications that have emerged from the Semantic Web research project. Answer : Web browser s oftware is software that lets users read HTML documents and move from one HTML document to another using hyperlinks. Web browser software sends requests for Web page files to other computer s, which are called Web servers. The Web server software receives requests from many different Web clients and responds by sending files back to those Web client computers. Each Web client computer’s Web browser software then renders those files into a Web page. Examples of popular Web browser software include Google Chrome, Microsoft Internet Explorer, and Mozilla Firefox. Exercises 1. In a paragraph or two, evaluate the NSF’s 1989 decision to introduce limited commercial activity on the Defense Department network that would eventually become the Internet. Answer: In 1989, the NSF permitted two commercial e -mail services, MCI Mail and CompuServe, to establish limited connections to the Internet for the sole purpose of exchanging e -mail transmissions with users of the Internet. These connections allowed commercial enterprises to send e -mail directly to Internet addresses, and allowed members of the research and education communities on the Internet to send e-mail directly to MCI Mail and CompuServe addresses. The NSF justified this limited commerci al use of the Internet as a service that would primarily benefit the Internet’s noncommercial users. As the 1990s began, people from all walks of life — not just scientists or academic researchers —started thinking of these networks as the global resource tha t we now know as the Internet. 2. In about 100 words, outline the advantages and disadvantages of using circuit -switched and packet -switched networks to transmit data. Answer: Responses will vary. Students could mention that circuit -switching is simple and intuitive and usually once the connection is established performance can be guaranteed. On the downside, a break in any one of the connected circuits causes the circuit to be interrupted and data to be lost. With packet switching files and messages are br oken into packets which travel from computer to computer along the interconnected networks until they reach their destinations; a dedicated circuit is not needed. If any packets are missing, the destination computer can request that the transmission be res ent so it can reconstruct the sent file or message. The main Electronic Commerce , 12th Edition Solutions 2-6 disadvantage here is that on the receiving end the packets need to be reassembled. 3. In about 100 words, briefly describe the function of each type of router that might exist in an interconnected network. Answer : There are border routers, also known as edge routers , are located at an organization ’s point of connection to the Internet that decide the best path on which to forward each packet of information as it travels on the Intern et to its destination. Synonymous with gateway computer and gateway router. Backbone routers handle packet traffic along the Internet’s main connecting points; they can each handle more than 50 million packets per second. Other routers used might be router s that are inside the WANs and LANs or the routers that connect them to each other within the organization. 4. In a paragraph or two, describe how a VPN maintains security over data transmitted through it. Answer: A virtual private network (VPN) is a connection that uses public networks and their protocols to send data in a way that protects the data as well as a private network would, but at a lower cost. IP tunneling creates a private passageway through the public Internet that provides secure transm ission from one computer to another. The passageway is created by VPN software that encrypts the packet content and then places the encrypted packets inside another packet in a process called encapsulation. The computer that receives the packet unwraps it and decrypts the message using VPN software that is the same as, or is compatible with, the VPN software used to encrypt and encapsulate the packet at the sending end. 5. In a paragraph, briefly explain the differences between closed and open architectures ; then, in an additional two or three paragraphs, outline the reasons an open architecture was chosen for the Internet. Answer: The first packet -switched network, the ARPANET, connected only a few universities and research centers. Following its inception in 1969, this experimental network grew during the next few years and began using the Network Control Protocol (NCP). In the early days of computing, each computer manufacturer created its own protocol, so computers made by different manufacturers could n ot be connected to each other. This practice was called proprietary architecture or closed architecture. NCP was designed so it could be used by any computer manufacturer and was made available to any company that wanted it. This open architecture philosop hy that was developed for the evolving ARPANET, included the use of a common protocol for all computers connected to the Internet and four key rules for message handling : ▪ Independent networks should not require any internal changes to be connected to the n etwork. ▪ Packets that do not arrive at their destinations must be retransmitted from their source network. Electronic Commerce , 12th Edition Solutions 2-7 ▪ Router computers act as receive -and-forward devices; they do not retain information about the packets that they handle. ▪ No global control exists over the network. The open architecture approach has contributed to the success of the Internet because computers manufactured by different companies (Apple, Dell, Hewlett -Packard, and so on) can be interconnected. 6. In about 100 words, explain why the IMAP e -mail protocol is better than the POP e -mail protocol. Answer: IMAP performs the same basic functions as POP, but includes additional features. For example, IMAP can instruct the e -mail server to send only selected e - mail messages to the client instead of all messages. IMAP also allows the user to view only the header and the e -mail sender’s name before deciding to download the entire message, which avoids the POP requirement that users download e -mail messages to their computers befo re they can search, read, forward, delete, or reply to those messages. IMAP lets users create and manipulate e -mail folders and individual messages while the messages are still on the e -mail server; the user doesn’t need to download e -mail before working with it. This also allows users to access e-mail from any computer, which is important to people who access their e -mail from different computers at different times. 7. In a paragraph or two, explain why the Web is often described as having a client/server architecture. Answer: The Web is software that runs on computers that are connected to each other through the Internet. Web client computers run software called Web client software or Web browser software. Web browser software sends requests for Web page files to other computers, which are called Web servers. A Web server computer runs software called Web server software. Web server software receives requests from many different Web clients and responds by sending files back to those Web clie nt computers. Each Web client computer’s Web client software renders those files into a Web page. This combination of client computers running Web client software and server computers running Web server software is an example of a client/ server architectu re. 8. In a paragraph or two, explain how Vannevar Bush’s idea of a Memex machine presaged the Web. Answer: In 1945, Vannevar Bush, who was director of the U.S. Office of Scientific Research and Development, wrote an article in The Atlantic Monthly about wa ys that scientists could apply the skills they learned during World War II to peacetime Electronic Commerce , 12th Edition Solutions 2-8 activities. Bush speculated that engineers would eventually build a machine that he called the Memex, a memory extension device that would store all of a person’s books , records, letters, and research results on microfilm. Bush’s Memex would include mechanical aids such as microfilm readers and indexes that would help users quickly and flexibly consult their collected knowledge. 9. In about 100 words, explain how top -level Web domain names are proposed and approved. Answer: Since 1998, ICANN has had the responsibility of managing domain names and coordinating them with the IP address registrars. ICANN is also responsible for setting standards for the router computers that make up the Internet. Since taking over these responsibilities, ICANN has added a number of new TLDs. Some of these TLDs are generic top-level domains (gTLDs), which are available to specified categories of users. ICANN is itself responsible for the maintenance of gTLDs. Other new domains are sponsored top -level domains (sTLDs), which are TLDs for which an organization other than ICANN is responsible. The sponsor of a specific sTLD must be a recognized institution that has expertise regardi ng and is familiar with the community that uses the sTLD. For example, the .aero sTLD is sponsored by SITA, an air transport industry association. Individual countries are permitted to maintain their own TLDs, which their residents can use alone or in comb ination with other TLDs. Although ICANN has always chosen new gTLDs after much deliberation and careful consideration, many people have been highly critical of the selections . In 2011, ICANN decided to stop managing the addition of new gTLDs so tightly. Since 2012, individuals and businesses have been able to petition for just about any TLD they would like to have. 10. In two or three paragraphs, explain the hyperlinked structure of the Web and why it is important. Answer: In 1989, Tim Berners -Lee was tryin g to improve the laboratory research document handling procedures for his employer, CERN. CERN had been connected to the Internet for two years, but its scientists wanted to find better ways to circulate their scientific papers and data among the high -energy physics research community throughout the world. Berners -Lee proposed and developed the code for a hypertext server program and made it available on the Internet . He called his system of hyperlinked HTML documents the World Wide Web. The Web caught on quickly in the scientific research community, but few people outside that community had software that could read the HTML documents. In 1993, a team of students led by Marc Andreessen at the University of Illinois wrote Mosaic, the first GUI program that could read HTML and use HTML hyperlinks to navigate from page to page on computers anywhere on the Internet. Mosaic was the first Web browser that became widely available for personal computers, and some Web surfers still use it today. Electronic Commerce , 12th Edition Solutions 2-9 Programmer s quickly realized that a system of pages connected by hypertext links would provide many new Internet users with an easy way to access information on the Internet. Businesses recognized the profit -making potential offered by a worldwide network of easy -to-use computers. In 1994, Andreessen and other members of the Mosaic team joined with James Clark of Silicon Graphics to found Netscape Communications . Its first product, the Netscape Navigator Web browser program based on Mosaic, was an instant success. Ne tscape became one of the fastest -growing software companies ever. Microsoft created its Internet Explorer Web browser and entered the market soon after Netscape’s success became apparent. Internet Explorer and Mozilla Firefox, a descendant of Netscape Navi gator, are still widely used along with Web browsers such as Google’s Chrome and Apple’s Safari. The number of Web sites has grown even more rapidly than the Internet itself. The number of Web sites is currently estimated at more than 800 million, and ind ividual Web pages likely number more than a trillion (each Web site might include hundreds or even thousands of individual Web pages). Figure 2 -3 shows the overall rapid growth rate of the Web. Noteworthy is the increase from 2010 to 2011, a year in which the number of Web sites doubled. This growth was driven in part by the large number of new Web sites opening in developing countries, primarily in Asia and Eastern Europe. 11. HTML and XML are both markup languages, but they have very different objectives. In about 100 words, describe the objectives of each and provide at least one example of when using XML would be preferable to using HTML. Answer: HTML was derived from the more generic meta language SGML. HTML defines the structure and content of Web pages using markup symbols called tags. Over time, HTML has evolved to include a large number of tags that accommodate graphics, CSS, and other page elemen ts. XML is also derived from SGML, but differs from HTML in two important respects. First, XML is not a markup language with defined tags. It is a framework within which individuals, companies, and other organizations can create their own sets of tags. Second, XML tags do not specify how text appears on a Web page; the tags convey the meaning of the information included within them. A company that sells products on the Web might have Web pages that contain descriptions and photos of the products it sells. The Web pages are marked up with HTML tags, but the product information elements themselves, such as prices, identification numbers, and quantities on hand, are marked up with XML tags. 12. In about 100 words, describe two or three situations (business or personal) in which you might find a personal area network to be useful. Answer: Answers will vary. Some examples might include: Electronic Commerce , 12th Edition Solutions 2-10 ▪ Print to a local Bluetooth -enabled printer without logging into the network ▪ Play video files that are stored on a laptop on the nearby television Cases C1. Internet Access in Hyderabad 1. Responses will vary. The most obvious implicatio n of low Internet access is t he creation of a digital divide . That is, the citizens of Hyderabad will not have access to information, goods, and services that are accessible through this technology and will therefore not be able to compete effectively in the world economy . 2. Trends in the growth of Internet -capable phones are as follows: ▪ Smartphone penetration in India is expected to grow to 520 million by 2020, making India one of the largest smart phone economies in the world. ▪ Broadband penetration will increase from 14% today to 40% by 2020. ▪ The next wave of growth in India’s internet penetration is expected t o come from tier II and tier III cities, where wireless mobile internet shall play a pivotal role thus enabling the growth of vernacular and regional content. Source: http://www.ey.com/Publication/vwLUAssets/ey -future -of-digital -january -2016/$FILE/ey - future -of-digital -january -2016.pdf 3. Responses will vary. T he government of Hyderabad c ould consider developing : ▪ Broadband connections o High speed DSL ▪ Wireless connections o Personal area networks o Wireless Ethernet (Wi -Fi) o Mobile telephone networks C2. Quick Fix Repair Systems 1. Answers will vary. Remote access solutions worth considering include: ▪ Virtual private network (VPN) ▪ Cloud based remote access service 2. Student response s will vary . Two options for connecting a smartphone include the use of remote desktop apps and cloud storage. 3. Responses will vary. The Nest Learning Thermostat is a sensor -driven, Wi -Fi enabled, self -learning programmable thermostat. The tools re quired to repair this Electronic Commerce , 12th Edition Solutions 2-11 device include a universal driver adapter, inspection scope, anti -static mat, frictionless ratchet, and an iFixit lock pick se t. Electronic Commerce , 12th Edition Solutions 3-1 Electronic Commerce , 12th Edition Chapter 3 Solutions Review Questions 1.In the introduction to this chapter you learned about the development of the Google Photos service. Briefly describe two things the development team did that influenced the design of the service. Answer: Google’s technology includes a collection of software tools that can analyze image data and detect meaning in the elements of images. By using these software tools to analyze collections of meanings about each photo, Google computers can place photos into categories. By itself, the technology could do a good job of categorizing photos, especially using faces it identified as similar. But the development team also combined their technology with the information they gathered from potential customers, enabling the service to organize photos into categories automatically. 2.Why were many large discount retailers slow to sell online in the early days of electronic commerce? Answer : Most traditional discount retail ers were reluctant to implement online sales in the first wave of electronic commerce because they had huge investments in their physical stores, were making large amounts of sales in those stores, and did not really understand the world of online retailin g. 3.What is a marketing channel? Answer : Each different pathway that a busin ess uses to reach its customers is called a marketing channel. 4.Name two Web site features that an online clothing retailer might use to help customers find products in the right styles, colors, or sizes for them. Answer : Many online clothing retailers offer personal shopper and virtual model features. The personal shopper is an intelligent agent program that learns the customer’s preferences and makes suggestions. The virtu al model is a graphic image built from customer measurements and descriptions on which customers can try clothes. Electronic Commerce , 12th Edition Solutions 3-2 5. What is an academic information aggregation service? Answer : Academic information aggregation services, such as ProQuest Dialog and EBSCO Information Services, purchase the rights to academic journals, newspapers, and other publications and resell those rights in various subscription packages to schools, libraries, companies, and not -for-profit institutions. 6. How can an online music s ervice provide free music to some customers? Answer : To introduce potential customers to their subscription services, some of online music service companies offer free, advertising -supported, limited versions of their subscriptions. The logic is to give a way a large number of digital products to entice other customers to buy a small number of relatively expensive versions of the product. 7. What is the function of Digital Rights Management software? Answer : Digital Rights Management software limits the number of copies that can be made of an audio file. DRM software also provide s control over the number of copies that can be made of downloaded video, the devices on which the video can be installed, and restri ctions on how long the video remains available for watching. 8. Name one technology that has enabled the broad online distribution of video content. Answer : HTML 5 allows the delivery of movies through a standard Web browser without requiring plug-ins or external software. 9. What is meant by the “stickiness” of a Web site? Answer : The stickiness of a Web site is its ability to keep visitors at the site and attract repeat visitors. People spend more time at a sticky Web site and are thus exposed to more advertising. 10. Why is demographic information about a Web site’s visitors a factor in the pricing of advertising sold on that site? Answer : The most successful advertising on the Web is targeted at specific groups. Marketers use demographic infor mation to determine whether a given Web site is attracting a specific market segment and justify higher rate ads for that site . 11. What is a Web portal? Answer : A Web portal, synonymous with portal, is a Web site that serves as a customizable home base from which users do their searching, navigating, and other Web -based activity. Electronic Commerce , 12th Edition Solutions 3-3 12. What is a Web directory? Answer : A Web directory is a listing of hyperlinks to Web pages that is organized into hierarchical categories. 13. What is a paywall? Answer : A paywall is a digital control mechanism that limits the number of times a visitor may visit a site to a specific number of visits before the user must pay for continued access. 14. Name two types of Web sites that might offer online classified ads. Answer : Two types of Web sites might include employment sites and used vehicle sites. 15. What is a bill presentment service? Answer : A bill presentment service provides an electronic version of an invoice or billing statement (such as a credit card bill or a mobile phone services statement) with all of the details that would appear in the printed document. 16. What is an account aggregation service? Answer : Account aggregation service is a feature of online banks that allows a customer to obtain bank, investment, loan, and other financial account information from multiple Web sites and to display it all in one location at the bank’s Web site. 17. Briefly describ e the role an online information service could play in a used car purchase transaction. Answer : Online information service firms offer an independent source of information, reviews, and recommendations regarding auto makes and models. Some of these firms offer customers the ability to select a specific car at a price the firm determines and then finds a local dealer that has such a car and is willing to sell it for the determined price. An alternative approach is for the firm to locate dealers in the buyer’s area that are willing to sell the car specified by the buyer a small premium over the dealer’s nominal cost. After the firm introduces the buyer to the dealer, that buyer can purchase the car without negotiating with a salesperson. The firm charges participating dealers a fee for this service . 18. What is a “hook and pay” strategy and how is it used by some online game play sites? Answer : In “hook and pay” strategy , a new game player is drawn in (hooked) by free Electronic Commerce , 12th Edition Solutions 3-4 play on a game that has a limited numbe r of levels. The game then offers access to higher levels of game play, hints, or tools for playing the game better for a small fee. 19. What is a strategic alliance? Answer : A strategic alliance is t he coordination of strategies, resources, and skill sets by companies into long -term, stable relationships with other companies and individuals based on shared purposes. 20. Name one important element that a company should include in its Web presence. Answer : Companies should include a consistent brand image. 21. Name two factors that can affect a Web site’s usability. Answer : Factors that can affect a Web site’s usability may include: ▪ User motivation ▪ Site accessibility ▪ Customer trust and loyalty ▪ Site design 22. What is addressable media? Answer : Addressable media a re advertising efforts directed to a known addressee and include direct mail, telephone calls, and e -mail. Exercises 1. In about 100 words, outline the reasons a retailer might want to use more than one marketing channel. Answer : Companies find that having several marketing channels lets them reach more customers at less cost. Several examples could include offering a wider variety of products on the Web site than in the physical store, offering free shipping to the store on large or bulky items, and using mailed brochures and catalogs to direct the customer to the Web site. 2. In a paragraph or two, explain why an online retailer might mail printed catalogs to customers or potential customers. Answer : A retailer that mails print catalogs might inclu de a product’s general description and photo in the catalog, but refer customers to the retailer’s Web site for detailed specifications or more information about the product. Mailed catalogs (or newspaper advertising inserts) continue to be an effective ma rketing tool because they inform customers of products they might not otherwise know about. The catalog Electronic Commerce , 12th Edition Solutions 3-5 arrives in the mail (or the newspaper insert arrives with the newspaper) to inform them. In contrast, a Web site only delivers the marketing message if the customer visits the Web site. 3. Write a paragraph in which you explain how an online retailer might use its return policy to gain a competitive advantage. Answer: Return policies allow customers to return unused merchandise for some reason. May times the customer has to pay for return shipping or the cost of the return shipping is deducted from the refunded amount. One company that used its return policy as a competitive advantage is online shoe retailer Zappos (now owned by Amazon). Recogniz ing that shoe styles and fit can be difficult to evaluate online, Zappos distinguished itself from its competitors by offering fast delivery and free returns . 4. In about 100 words, explain how online distribution might benefit the publisher of an academic j ournal. Answer: Publishing an academic journal online eliminates the high costs of paper, printing, and delivery, and makes dissemination of research results less expensive and more timely . 5. In about 100 words, summarize the arguments for and against buying a novel as an electronic book instead of a printed paperback book. Answer : An area where electronic books excel is frequent recreational reading. They can also be more flexible print books. An example of this is the Amazon Kindle Singles product line, which publishes original works of between 5000 and 30,000 words that generally sell for one to three dollars. In the p ast, short stories were a staple of various print magazines, but many of those magazines have reduced length of stories they publish or have gone out of business. This reduced the number of outlets for budding fiction writers, many of whom develop their sk ills by writing short stories before moving on to full -length novels. Amazon Singles Kindle Editions provide an entire new online distribution channel for this type of work. Where electronic books fall short is the reference book category. It is far easier for flip through a printed book for reference than an electronic book. 6. In about 200 words, outline the changes that online distribution has prompted in the businesses of television program production and distribution. Answer : Digital video, including t elevision content, can be sold or rented online as either a file download or as a streaming video. In many cases the content can also be streamed for free. Amazon sells the right to view movies and television shows on its Web site. Netflix offers online su bscription access to television shows, movies, and original content either separately or as part of its DVD rental plan. Crackle, an online