Answer to Question 1
A marketspace is where sellers and buyers can electronically exchange goods and services for money. The major components and players include customers, sellers, products and services, infrastructure, front end, back end, and intermediaries.
Answer to Question 2
Changes resulting from electronic marketplaces include greater information richness of the transactional and relational environment, lower information search costs for buyers, diminished information asymmetry between sellers and buyers, less time between purchase and possession of physical products purchased in the e-marketplace, greater temporal proximity between time of purchase and time of possession of digital products purchased in the e-marketplace, the ability of buyers and sellers to be in different locations, and the ability for EC to leverage capabilities with increased effectiveness and lower transaction and distribution costs.
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