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Question

Difficulty: MediumE-Commerce and E-Business Models

An electronics manufacturing firm operates a web platform where registered wholesale distributors place bulk orders for microchips and industrial components directly from the factory. Which e-commerce business model is demonstrated by this transaction?

  1. Business-to-Business (B2B)Answer
  2. B
    Business-to-Consumer (B2C)
  3. C
    Consumer-to-Business (C2B)
  4. D
    Consumer-to-Consumer (C2C)

Answer

Business-to-Business (B2B)
The correct answer is Business-to-Business (B2B) because both the manufacturing enterprise selling the items and the wholesale distributors making the purchases are business entities. Online commerce occurring between commercial organizations falls under the B2B framework.

Step-by-Step Solution

1
Identify the seller entity
The seller is a manufacturing firm (a commercial enterprise)
Establishing the nature of the selling organization provides the primary component of the e-commerce model.
2
Identify the purchasing entity
The buyers are registered wholesale distributors (business entities buying in bulk for distribution)
Establishing the nature of the buying party completes the transaction relationship classification.
3
Determine the applicable e-commerce model
Because commercial entities conduct business with other commercial entities online, the system is Business-to-Business (B2B)
B2B e-commerce covers automated or electronic commercial transactions taking place between companies.

Key Concept

Business-to-Business (B2B) E-Commerce Model
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Topics

E-Commerce and E-Business Models

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