What are the three dimensions that characterize an e-procurement market based on its business functionality? Name two other market characteristics of an e-procurement Net marketplace.

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The three dimensions that characterize an e-procurement market based on its business functionality are that 

(1) they are horizontal marketplaces 

(2) in which long-term contractual purchasing agreements are used 

(3) to buy indirect goods. 


Other market characteristics of e-procurement are:-

  • Net marketplaces are that they are independently owned, they are many-to-many markets, and they use fixed-price catalogs.
  • E-procurement companies serve as intermediaries connecting hundreds of online suppliers offering millions of MRO goods to business firms who pay a fee to join the market, thus it is a public marketplace. They are mediated by an independent third party that purports to represent both buyers and sellers; however, they are likely to have a bias in favor of the buyer because they include the catalogs of competing suppliers and competing e-distributors.


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