PART I. Multiple choice. Choose the BEST answer to each question.

1. C

2. E

3. B

4. A

5. D

PART II. Define the following terms.

1. SET: an acronym for Secure Electronic Transaction. It is a protocol developed jointly by MasterCard and Visa with the goal of providing a secure payment environment for the transmission of credit card data.

2. Webnomics: the study of production, distribution, and consumption of goods, services, and ideas over the World Wide Web.

3. Web server: a software program that performs HTTP services, access control, file transfers, searching, data analysis, site management, application construction, dynamic content management, and site development.

4. M-commerce: stands for mobile commerce. It is considered the future of e-commerce when business activities are conducted using electronic data transmission via the Internet and World Wide Web in a wireless environment.

PART III. Written question.  

1. What are the differences between e-commerce and traditional commerce?

– Discuss the differences from each of the following perspective:

1. technology
2. competitive edge
3. accessibility
4. customer interface
5. customer interaction
6. customization
7. product promotion
8. product characteristics

2. Explain why an understanding of the differences in (1) would be useful in building a successful web site.

– Define what is a successful web site.

– Associate your answer in (1) with each of the following factors:

a. virtual market characteristics, e.g., customer interface & interaction

b. visitor characteristics, e.g., customization

c. customer loyalty, e.g., product promotion, product characteristics

d. usability, e.g., technology, competitive edge, accessibility

– Illustrate how values can be created through a realization of the relationship above.