Answer to Question 1
Characteristics of Net marketplaces include (1 ) biaswhether the marketplace advantages sellers, buyers, or each group equally (neutral); (2 ) ownershipwho owns the marketplace, a specific firm, group of firms, or an industry group; (3 ) pricing mechanismhow are prices determined for products sold: fixed prices, bidding, RFPs; (4 ) Scope/focusdoes the marketplace serve horizontal or vertical markets; (5 ) value creationwhat benefits are offered to customers or suppliers; and (6 ) access to marketis the marketplace open to everyone or limited to invitees only.
Answer to Question 2
E-procurement Net marketplace services include providing a marketplace for long term contractual purchasing as well as some spot-sourcing of indirect goods (MRO). They provide value chain management services to both buyers and sellers. VCM services include automation of a firm's entire procurement process on the buyer side (e.g., purchase orders, sourcing, requisitions), and automation of the selling business processes on the seller side (e.g., catalog creation, order management, invoicing).
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