CHAPTER 4- BUSINESS-TO-BUSINESS E-COMMERCE EXAM

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CHAPTER 4- BUSINESS-TO-BUSINESS E-COMMERCE EXAM

QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -85 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: The Future of B2B Social Networking

Answer:

Marketing users are developing social media and search tools. Products such as Google's OpenSocial may increase interest in social networking.Businesses must embrace social networking in order to better understand their customers and business partners.

Question 2: Buying from Other Sources

Answer:

When buying small quantities, purchasers often buy from an e-distributor. Another option for e-procurement is to buy at a B2B exchange using one of several available methods. In all of these options, one may automate some actions in the process, such as the generation of a purchasing order

Question 3: Large companies, such as GE, spend many millions of dollars on MROs every year.These companies aggregate the orders from their subsidiaries and various departments (sometimes there are hundreds of them) for quantity discounts. They can cut administrative costs by 20%.

Answer:

External Aggregation for Group Purchasing

Question 4: The Benefits of E-Procurement

Answer:

?Increasing the productivity of purchasing agents ?Lowering purchase per item prices through activities such as product standardization, reverse auctions, ?Improving information flow and its control ?Reducing the frequency and cost of maverick buying Question 5: ONE-FROM-MANY: E-PROCUREMENT AT BUY-SIDE E-MARKETPLACES

Answer:

The term procurement refers to the purchase of goods and services by organizations. Procurement is usually done by purchasing agents, also known as corporate buyers. large buyers can open their own marketplaces called buy-side e-marketplaces and invite sellers to browse and offer to fulfill demand.

Question 6: ?Inefficiencies in Traditional Procurement Management

Answer:

-Procurement management* -Maverick buying* Question 7: The typical process that results in dynamic pricing in most exchanges includes the

following steps:

Answer:

• A company posts a bid to buy a product or an offer to sell one.

• An auction (forward or reverse) is activated.

• Buyers and sellers can see the consecutive bids and offers but usually do not see who is making

them. Anonymity often is a key ingredient of dynamic pricing (e.g., in stock markets).

• Buyers and sellers interact with bids and offers in real time.

• Sometimes buyers join together to obtain a volume discount price (group purchasing).
• A deal is struck when there is an exact match between a buyer and a seller on price, volume, delivery

date, and other variables, such as location or quality.

• The deal is finalized, and payment and delivery are arranged.

Question 8: Self Service Portals

Answer:

Portals are used for several purposes, one of which is to enable business partners to conduct self-service,

Question 9: ?Global Excanges

Answer:

Most large exchanges, such as Alibaba and Amazon Business, operate in many countries. Such activities require special arrangement such as dealing with country regulations, money transfers, language translation, and more.

Question 10: Dynamic pricing

Answer:

refers to the rapid movement of prices over time and possibly across customers. Stock exchanges are a prime example of dynamic pricing

Question 11: The Benefits of Auctions on the Sell Side

Answer:

-Revenue generation (expand online and overall sales) -Cost savings -Increased "stickiness"(potential buyers stay there longer.) -Member acquisition and retention

Question 12: Collaboration Hubs

Answer:

is the central point of interaction and of a company's supply chain. A single e-hub can host multiple collaboration spaces in which trading partners transact, collaborate, communicate, and share information.

Question 13: orders from several buyers

are aggregated so that better prices due to larger quantities purchased can be negotiated.

Answer:

Internal Aggregation of Purchasing Orders

Question 14: Ownership of B2B Exchanges

Answer:

Exchanges, portals, and directories are usually owned by a third-party operator. Both sellers and buyers prefer such an arrangement. Alternatively, exchanges may be owned by a few very large sellers or buyers. This kind of arrangement is referred to as a consortium.

Question 15: Functions of and Services Provided by Exchanges

Answer:

Exchanges have the following four major sets of functions: (1) matching and connecting buyers and sellers, (2) facilitating transactions, (3) developing and maintaining exchange policies and infrastructure, and (4) providing services to buyers and sellers.

Question 16: reverse auction

Answer:

• is a process in which many sellers (suppliers)

compete to fulfill orders requested by one buyer.

• is a tendering system

where suppliers are invited to bid on the fulfillment of an order and the lowest bid wins.

Question 17: vertical or horizontal.

Answer:

B2B marketplaces can be classified as............. or ..............

Question 18: Selling via Distributors and Other Intermediaries

Answer:

Manufacturers can sell directly to other businesses, and they do so if the customers are large buyers.However, manufacturers frequently use intermediaries to distribute their products to a large number of smaller buyers. The intermediaries buy products from many other manufacturers and aggregate those products into one catalog from which they sell to