习题答案
Case Study Questions
1. Why doesPinterest view Google as its primary competitor?
Pinterest now describes itself as avisual bookmarking tool for discovering and saving creative ideas (andpotential purchases) with less emphasis on sharing with friends. Search hasbecome the core part of its mission, and as such, Google, which is dominant insearch, is now a primary competitor.
2. Whydoes Pinterest focus on the smartphone platform when it develops new featuresand products?
Pinterestfocuses on the smartphone platform when it develops new features and products because,in 2016, the vast majority (80%) of Pinterest’s traffic originates from mobiledevices.
3. Why is copyright infringement a potential issuefor Pinterest?
Copyright infringement is a potentialissue for Pinterest because the basis of Pinterest’s business model involvesusers potentially violating others’ copyrights by posting images withoutpermission and/or attribution. Although Pinterest’s Terms of Service puts theonus on its users to avoid doing so, the site knowingly facilitates suchactions by, for example, providing a Pin It tool embedded in the user’s browsertoolbar. Much content on the site reportedly violates its Terms of Service.Pinterest has provided an opt-out code to enable other sites to bar its contentfrom being shared on Pinterest, but some question why they should have to takeaction when Pinterest is creating the problem. Another thing Pinterest has doneto try to ameliorate the problem is to automatically add citations(attribution) to content coming from certain specified sources, such as Flickr,YouTube, Vimeo, Etsy, Kickstarter, and SlideShare, among others. In 2013, itentered into an agreement with Getty Images in which it agreed to provideattribution for Getty content and pay Getty a fee. Pinterest says it complieswith the Digital Millennium Copyright Act, which requires sites to removeimages that violate copyright, but this too requires the copyright holder to beproactive and take action to demand the images be removed. Christopher Boffoli,a well-known photographer, filed a federal lawsuit against Pinterest in late2014 alleging that Pinterest users used his photographs without his permission,and that Pinterest failed to take adequate measures to remove them. InSeptember 2015, Boffoli agreed to dismiss the case, presumably as part of aconfidential settlement with Pinterest, leaving the legal issues raisedunresolved.
End-of-Chapter Questions
1. What is e-commerce? Howdoes it differ from e-business? Where does it intersect with e-business?
E-commerce, inthe popular sense, can be defined as: The use of the Internet and the Web toconduct business transactions. A more technical definition would be:
E-commerceinvolves digitally enabled commercial transactions between and amongorganizations and individuals. E-commerce differs from e-business in that no commercial transaction (an exchange ofvalue across organizational or individual boundaries) takes place in e-busi-ness.E-business is the digital enablement of transactions and processes within a firm and therefore does notinclude any exchange in value. E-commerce and e-business intersect at thebusiness firm boundary at the point where internal business systems link upwith suppliers. For instance, e-business turns into e-commerce when an exchangeof value occurs across firm boundaries.
2. What is informationasymmetry?
Information asymmetry refers to anydisparity in relevant market information among the parties involved in atransaction. It generally applies to information about price, cost, and hiddenfees.
3. What are some of theunique features of e-commerce technology?
The uniquefeatures of e-commerce technology include:
· Ubiquity: It is available justabout everywhere and at all times.
· Global reach: The potentialmarket size is roughly equal to the size of the online population of the world.
· Universal standards: Thetechnical standards of the Internet and therefore of conducting e-commerce areshared by all of the nations in the world.
· Richness: Information that iscomplex and content-rich can be delivered without sacrificing reach.
· Interactivity: E-commercetechnologies allow two-way communication between the merchant and the consumer.
· Information density: The totalamount and quality of information available to all market participants isvastly increased and is cheaper to deliver.
· Personalization/Customization:E-commerce technologies enable merchants to target their marketing messages toa person’s name, interests, and past purchases. They allow a merchant to changethe product or service to suit the purchasing behavior and preferences of aconsumer.
· Social technology: User contentgeneration and social network technologies
4. What is a marketspace?
A marketspace is a marketplace thatis extended beyond traditional boundaries because it is removed from therestrictions of geography and time. The ubiquity of e-commerce technologiesliberates the market from these limitations.
5. What are three benefitsof universal standards?
· Reduced search costs forconsumers
· Becomes simpler, faster, withmore accurate price discovery
· Lower market entry costs formerchants
6. Compare online andtraditional transactions in terms of richness.
Traditionaltransactions can provide more richness in terms of face-to-face serviceincluding visual and aural cues. However, traditional transactions are limitedin terms of how many people can be reached at a single time. Onlinetransactions, which can be global in reach, can provide content that is bothcomplex and rich, overcoming the traditional trade-off between reach andrichness.
7. Name three of the businessconsequences that can result from growth in information density.
Growth in information density can result in:
· Greater price transparency:Consumers can easily find out the variety of prices in a market.
· Greater cost transparency:Consumers can discover the actual costs merchants pay for products.
· Greater opportunities formarketers to practice price discrimination: Because marketers are able togather much more information about their customers, they can segment the marketinto groups based on willingness to pay different prices for the same or nearlythe same goods.