Page 244 - Business Principles and Management

C HAPTER 9 A SSESSMENT

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CHAPTER CONCEPTS

• More than a billion people worldwide have access to the Internet,
and 400 million Internet domains were registered by 2006. By 2004,
online retail sales totaled over $130 billion and business-to-business
online sales topped $1.95 trillion.

• Buying and selling merchandise is not the primary use of the Internet
for either consumers or businesses. Consumers use the Internet to
communicate and gather information. Businesses use the Internet to
communicate, gather information about prospective customers and
other businesses, and improve business operations.
• A small business must complete three major tasks to establish an
e-commerce Web site: business planning, technology development,
and site promotion.

• Online customers are loyal to businesses that have easy-to-use Web
sites, provide shopping security, and offer efficient delivery and cus-
tomer service. However, if customers have problems with an online
business, they are likely to switch to a competitor or to a bricks-and-
mortar business.
• Developing an e-commerce business requires business planning, tech-
nology development, and site promotion.

REVIEW TERMS AND CONCEPTS

Write the letter of the term that matches each definition.
1. Using the Internet to buy and sell online
2. Company that does almost all of its business activities over the
Internet
3. Business that uses both a physical location and the Internet for a. banner ad
sales b. bricks-and-click
4. Web site owner’s unique Internet name business
5. One or more dots that act as the smallest unit on a video display c. bricks-and-mortar
screen business
6. Any registered Web site d. domain name
7. Business that conducts most of its business activities at a physical e. dot-com business
location rather than through the Internet f. e-commerce
8. Private business that maintains the Web sites of individuals and g. electronic shopping
organizations on its computers for a fee carts
9. Using the Internet for telephone services h. Internet domain
10. Specialized programs that keep track of shoppers’ selections, provide i. pixel
j. social networking
an order form for them to complete, and submit the form to the com- k. Voice over Internet
pany over the Internet Protocol (VoIP)
11. Web advertising unit, like a placement ad in a newspaper l. Web-hosting service
12. Virtual community in which people share information about
themselves

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