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Competitive advantage – any of the above factors may provide
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Chaffey, E-Business and E-Commerce, Third edition, Instructor’s Manual

Ebusiness and Ecommerce Management 4



Self assessment questions for students at the end of each chapter.

Note, that answers to in­chapter activities and other questions are only available to 

lecturers who register via the Pearson site at 


Chapter 1

Self-assessment questions

1. Distinguish between e-commerce and e-business.

This can best be explained by referring to different elements shown in 




sell-side e-commerce

buy-side e-commerce

internal use of electronic communications to support business processes.

E­business is generally understood to include all three elements. E­commerce is 

commonly used to refer to either the first one or first two of these elements, but less 

commonly the third. E­business is broader in scope than e­commerce.

2. Explain what is meant by buy­side and sell­side e­commerce


Again refer to 



. Buy­side e­commerce is using communications technology 

to support the upstream supply chain from procurement to inbound logistics. Sell­side

refers to selling and distributing products and services from an organization to its 


3. Describe the different services that can be offered to customers via a web presence


This is covered in more detail in 

Chapter 5

 where stage models are referred to (p214):

outline information services on company and products

detailed information services on products, e.g. technical infosheets

transactional e-commerce – purchases can be made online

transactional customer service – questions can be asked and answers supplied online

4. Summarize the consumer and business adoption levels in your country. What seem 

to be the main barriers to adoption

Clickz (


/stats) is a good source of country information. For business, 

the main barriers are highlighted by the DTI (2000) survey:

lack of imperative;

security risks.




Chaffey, E-Business and E-Commerce, Third edition, Instructor’s Manual

For consumers, the Which report highlights fears about security and privacy as well as

the lack of a perceived need.

5. Outline the reasons why a business may wish to adopt e­commerce

The 6Cs are a good framework here:

Cost reduction – less use of physical resources and staff.

New Capability – e.g. to sell into an overseas market.

Improved communication – internal and external.

Control – better visibility/information for managers of trading relationships.

Customer service – more detailed information, faster response can be provided 24 hours, and

7 days a week.

Competitive advantage – any of the above factors may provide this, but it is likely to be short


6. What are the main differences between business­to­business and business­to­

consumer e­commerce?

Refer also to the section in 

Chapter 2

 (p43). In terms of volume of transactions B2B 

dwarfs B2C. B2C transactions will typically be smaller and less frequent for a trading 

relationship, but this is a generalization.

7. Summarize the impact of the introduction of e­business on different aspects of an 



The McKinsey 7S model is a useful framework for looking at the different aspects of a

business that may be affected by the move to e-business.

Strategy – new strategic responses are required

Structure – new structures and responsibilities may be required

Systems – new information systems and new processes will be required

Style – less likely to change, but some organizational styles are more responsive to change

Staff – new responsibilities

Skills – new skills

Superordinate goals – higher level aims may be updated depending on the business.

8. What is the relevance of intermediary sites such as Kelkoo 

(www.kelkoo.com) to 

the B2C company?



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