IS194 Exam 3 Topics

Chapter 9 (Sections 9.4 through 9.7) Online Services

Service vs. retail vs. content industries
Evolution of the US economy to todays service-based economy
Service industry categories
Financial service industries banking/mortgage, brokerage, insurance, real estate
Other service industries travel services, career services, legal services, etc.
Service industry comparison example companies, revenue models, unique challenges, trends, and
common strategies
Identify and describe common service industry growth strategies

Network Effect
Compare physical goods costs with online service costs
Define the network effect
Identify introduction, growth, and maturity phase strategies for online auction companies
Other industries impacted by the network effect

Chapter 11
Current online auction industry
Auction benefits and costs
Auction reservation prices
Auction formats, their process, and matching product types
Other forms of dynamic auction-related pricing
Factors businesses consider when choosing auctions to sell items
Types of auction frauds
Other auction and bartering sites
Current e-commerce portal industry
Portal categories and example sites
Portal value and revenue sources
Evolution of online social networks
Social network categories and example sites
Future social networking trends

Chapter 12
What is a supply chain?
SCM goals and flows
SCM problems and the evolution of solutions
B2B e-commerce evolution, growth and benefits
The procurement process
Legacy systems and SCM trends
Net marketplaces four types and their characteristics
Private industrial networks (PINs) characteristics and benefits
Supply chains in the automobile, electronics, and fashion clothing industries
Supply chain demand management policies, objectives, and information sharing strategies
IS194 Exam 3 Review Questions

Chapter 9 Online Services

1. How are service, retail, and content industries different? Give an example company that would be
included in each industry.
2. What is the difference between a hands-on service and a transaction broker service? Which type of
service has been most impacted by e-commerce?
3. What are some unique challenges that online banks face when compared with traditional banks?
What was NetBank? Why did online banks horizontally integrate starting in the late 1990s?
4. What are some of the unique challenges that online real estate firms face? What part of the house
buying process has been most impacted by e-commerce?
5. What are some of the unique challenges that online career service firms face? What are some
reasons why companies and job seekers may prefer to use a niche online career service site?
6. What is the most common revenue model used by online service companies? What are some of the
common benefits and challenges for online service firms?

Network Effect
7. Describe the network effect. Give three examples of industries where company strategy is impacted
by the network effect. What is an example industry that is not impacted by the network effect?
8. Describe two strategies that introductory phase online auction companies could use to grow their
business and compete against larger online auction companies. What is one strategy that may not
be useful for introductory phase firms?

Chapter 11
9. What are reservation prices? How does this affect the bidding behavior in an English auction?
10. What is trigger pricing, utilization pricing, and personalization pricing? Give one example where one
of these could be used to dynamically price a product in the future.
11. Give three examples of online portals. How may a portal increase its value to its users? What
factors influence a companys decision to advertise on a particular portal?
12. What is an online community? How have they evolved during the e-commerce era? What are two
reasons why online community participation may decline in the future?

Chapter 12
13. What is a supply chain network? What are its two conflicting management goals? Pick one industry
and describe how these goals may impact their supply chain management strategy.
14. Describe two of the earliest solutions used to manage supply chains. Why are they not used today?
15. What is the procurement process? What parts of the process has been most affected by e-
commerce technology?
16. What are the four types of Net marketplaces? Which of the types has been least successful? Why?
17. What is the difference between a PIN and a Net marketplace? Why is the use of PINs growing for
coordination of B2B e-commerce trade?
18. What is collaborative commerce and how is it different from SCM? What are its expected benefits?
19. Describe the supply chain network structure, demand management policy, SCM objective, and
information sharing strategy for a company in the automobile industry (GM, Ford, etc.)
20. Describe the supply chain network structure, demand management policy, SCM objective, and
information sharing strategy for a company in the fashion clothing industry (Macys, Sport
Obermeyer, etc.)