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  • 1. Câu hỏi Which of the following best describes the early years of e-commerce? Đáp án a. They were a technological success but a mixed business success E-commerce can be said to have begun in: c. 1995. The integration of video, audio, and text marketing messages into a single marketing message and consuming experience is an example of: Which type of e-commerce is distinguished by the type of technology used in the transaction rather than by the nature of the market relationship? Net marketplaces include all of the following except: a. richness. c. Mobile commerce (M-commerce) d. private industrial networks. Câu hỏi Which of the following cannot be used to retrieve objects from a database? Which of the following types of servers monitors and controls access to a main Web server and implements firewall protection? Most of the time required to maintain an e-commerce site is spent on: Which system functionality must your Web site have in order to be able to personalize or customize a product for a client? Which of the following is not a true statement: (a) Dynamic page generation and business logic (such as a shopping cart) are I/O intensive operations. (b) System performance tends to degrade as more and more simultaneous uses request service. (c) Viewing dynamic pages requires far more capacity than viewing static Web pages. (d) The more large multimedia files a Web site has, the greater the load on the system. Đáp án HTML proxy server general administration and making changes and enhancements to the system. customer on-site tracking (a)
  • 2. Which of the following is not one of the current major social trends in ecommerce in 2011-2012? b. Spam declines as a significant problem. All of the following can be considered a precursor to e-commerce except: a. m-commerce. Approximately what percentage of dot-com companies formed since 1995 survived as independent companies in 2009? All of the following are major business trends in ecommerce in 2011-12 except: Which of the following statements is not true? b. Information systems researchers take a purely technical approach to ecommerce. All of the following are major business trends in ecommerce in 2011-2012 except for: A system design has two main components: E-commerce can be defined as: a. the use of the Internet and the Web to transact business. The early years of e-commerce were driven by all of the following factors except: a. an emphasis on exploiting traditional distribution channels. The size of the global C2C market in 2011 is around: Which of the following is a characteristic of the consolidation phase of e-commerce? By what year is the U.S. Internet household penetration rate likely to c. $80 billion. d. strengthening of intermediaries a. 2015 In order from beginning to end, the major steps in the SDLC, are: An e-commerce Web site that processes orders requires, at minimum, a ________ system architecture. Which of the following is not a main factor in determining overall demand for an ecommerce site? Google Analytics is an example of which of the following? All of the following are simple steps for optimizing 10 mobile retail ecommerce explodes to over $5 billion search engine marketing is eclipsed by the mobile advertising platform. a logical design and a physical design. systems analysis/planning; systems design; building the system; testing; and implementation. two-tier static file sizes site management tool KHÔNG chọn avoiding
  • 3. reach the current level of cable television penetration? Which of the following is the topselling online retail category? In 2011, roughly ________ million in the United States access the Internet via mobile devices. Web page content that can reduce response times except: c. mass merchant/department stores c. 91 In the "bow-tie" analogy of the structure of the Web, "tendrils" are: b. pages that neither link to nor are linked from the center. Which of the following qualities is least likely to decrease a consumer's search costs? d. richness Which of the following helps you understand the marketing effectiveness of your e-commerce site? Which of the following allows you to easily create and publish a blog or Web site? Which of the following is not a characteristic of a perfect competitive market? In the B2C arena, ________ was the first truly large-scale digitally enabled transaction system. Above all, e-commerce is a(an) ________ -driven phenomenon. a. technology Which of the following is not an example of a social network? d. Wikipedia One of the predictions for the future of e-commerce is that: A firm's ________ describes how a firm will produce a superior return on invested capital. E-commerce technologies have changed the traditional tradeoff between the richness and reach of a marketing message. Prior to the development of the Web: c. the larger the audience reached, the less rich the message. The basic value proposition of community providers is: unnecessary links to other pages on the site, reducing unnecessary HTML comments, using more efficient graphics site tracking and reporting system WordPress the growth of regulatory activity both nationally and internationally the French Minitel overall revenues from e-commerce will grow at an annualized rate of about 10 percent a year through 2015 focus a. they offer a fast, convenient one-stop site where users can focus on their most important
  • 4. concerns and interests. Retail chains accounted for around ________ percent of online retail firm revenues in 2010. Which of the following statements about Internet use in the United States is not true? Unfair competitive advantages occur when: Which of the following is not a unique feature of e-commerce technology? c. 37 c. In 2011, on an average day, over 300 million people go online. a. one competitor has an advantage others cannot purchase. Which of the following is not a characteristic of a perfect competitive market? c. global broadcasting a. overall revenues from e-commerce will grow at an annualized rate of about 10 percent a year through 2015. d. the growth of regulatory activity both nationally and internationally Which of the following is the best definition of transaction cost? b. the cost of participating in a market One of the predictions for the future of e-commerce is that Which of the following is not a major technology trend in e-commerce in 2011-2012? Network externalities are related to which of the following features of e- c. Computing and networking component prices increase dramatically. c. universal standards Grainger.com is an example of which of the following business models? the major technologies used with wireless local area networks are Around what percentage of Internet users in the United States access the Internet through mobile devices? In 2011, the world's online population was roughly: Business-to-consumer (B2~ e-commerce is: Which of the following statements about a free pricing strategy is false? The richness made possible by e-commerce technologies does which of the following? Which of the following age groups has the highest c. e-distributor wifi and bluetooth 39 200 million. slowing as it confronts its own fundamental limitations. The free pricing strategy was born in the early days of the Web It allows video, audio, and text to be integrated into a single marketing message and consuming experience. 18-29
  • 5. commerce technology? percentage of Internet access? All of the following are current major society-related trends in e-commerce, except for: b. Internet security improves with the increase use of cloudbased privacy measures The early years of e-commerce were driven by all of the following except: d. an emphasis on exploiting traditional distribution channels Which type of e-commerce is distinguished by the type of technology used in the transaction rather than by the nature of the market relationship? Which of the following is not a limitation on the growth of B2C ecommerce? a. Peer-to-Peer (P2P) c. the retrenchment and consolidation of ecommerce into the hands of large established firms Which of the following statements is not true? b. Overall transaction costs have dropped dramatically Which of the following is not a major technology trend in e-commerce? A perfect market is one in which: a. computing and networking component prices increase dramatically a. there are no competitive advantages or asymmetries because Which of the following age groups had the lowest percentage of Internet access in 2011? A Web beacon is: Which of the following types of online market segmentation and targeting involves using c?onsumers' explicitly expressed interest to segment and target? A person's profession or occupation is part of their: Small ticket item sales outnumbered large ticket item sales during the early days of e-commerce for all of the following reasons except: A ________ is a repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to know the customer. In 2011, what was the approximate Internet penetration rate for households that had 30-49 d. a tiny graphics file embedded in an e-mail or Web page. c. search b. direct reference group. margins were low. CRM system d. 95 percent
  • 6. all firms have equal access to all the factors to production In general, the key to becoming a successful content provider is to : Which element of the business model examines who else occupies the firm's intended marketspace? c. competitive environment Which of the following is not a variation of the e-tailer business model? d. market creator On of the competitive advantages of a B2B service provider is that it can spread the cost of an expensive software system over many users, achieving efficiencies referred to as: b. scale economies An example of a company using the content provider model is Rhapsody.com The key technologies for mcommerce are: d. Cell phone-based 3G/4G, WiFi, and Bluetooth Which of the following is not an example of the bricks-and-clicks etailing business model? d. Drugstore.com household income of over $75,000? Choose one answer. Toyota's use of the Internet to target Hispanic customers is an example of targeting a specific: Choose one answer. All of the following are online communications that are used to support the evaluation of alternatives stage of the consumer decision process except: All of the following statements are true except: Which of the following features of e-commerce technology allows finegrained, highly detailed information on consumers' real-time behavior to be gathered and analyzed? Which of the following is not a feature that is driving social e-commerce growth? Choose one answer. All of the following are preconditions for development of a "wise" crowd except: On a typical day, approximately ________ percent of adult users in the United States logs on to the Internet. Choose one answer. . subculture. d. targeted banner ads. b. relative dispersion of prices for online goods has decreased. b. information density d. intelligent agents . participants have similar backgrounds. c. 77
  • 7. Which of the following are Amazon's primary value propositions? A firm's _________ describes how a firm will produce a superior return on invested capital. c. selection and convenience The backbone of the Internet is formed by: The process of slicing digital messages into parcels, sending them along different communication paths as they become available, and reassembling them at the destination point is called: b. Network Service Providers (NSPs Which of the following is a highspeed, medium-range broadband wireless metropolitan area network? The addresses used by browsers to identify the location of content on the Web are called: The Network Interface Layer of TCP/IP is responsible for which of the following? a. revenue model a. packet switching b. WiMax a. uniform resource locators c. placing packets on and receiving them from the network medium c. FTP Local area networks that operate a single organization that leases access to the Web directly from regional and national carriers are a. campus area networks The size of a leaderboard is: Which of the following is an example of the affiliate revenue model? Which of the following features of e-commerce technology allows finegrained, highly detailed information on consumers' real-time behavior to be gathered and analyzed? a. 728 Which of the following statements about the Internet's impact on marketing is not true? Which of the following features of e-commerce technology has reduced the cost of delivering marketing messages and receiving feedback from users? b. The Internet has decreased the impact of brands. Which of the following data cannot be gleaned from a Web site's transaction log? Which of the following is the fastest-growing form of ecommerce? Which of the following is not a Web 2.0 marketing technique? The marketing technique known as ________ involves merchants offering products or services for a very low d. MyPoints . information density d. universal standards b. the e-mail address of a visitor who is using a dial-up modem b. mobile commerce a. flash marketing . flash marketing
  • 8. called Which of the following is not one of the basic technological foundations of the Internet? The larger the bandwidth available to a Web site a. SMTP protocol c. the more visitors can simultaneously access the site All of the following might be part of a Web site's middle-tier layer except: a. legacy corporate applications Which of the following is not a type of application server? price for a short period of time. Which of the following types of online market segmentation and targeting involves using age, ethnicity, religion, etc.? All of the following are fixed price strategies except: Choose one answer. Walmart used which of the following market entry strategies? Choose one answer. Which of the following is not a true statement about brands? Choose one answer. What are the two most important management challenges in building a successful e-commerce site? a. FTP server b. developing a clear understanding of business objectives and knowing how to choose the right technology to achieve those objectives All of the following are basic functionality provided by e-commerce merchant server software except a. marketing software Which of the following is one of the three primary societal issues related to e-commerce individual privacy Which of the following demographic groups had the greatest increase in Internet access between 2002 and 2011? Choose one answer. According to Interbrand's 2010 World's Most Valuable Brands survey, the most valuable brand in the world is: Choose one answer. The Nike iD program is an example of which of the following marketing techniques? 818 million Which of the following examples illustrates the "Long Tail" phenomenon? In 2011, there were an estimated ________ Internet hosts. b. demographic c. collaborative filtering brand extender Brands introduce market inefficiencies for consumers . Hispanic (Englishspeaking) d. Coca-Cola. a. customer coproduction c. Over 50 percent of Netflix's 100,000 titles are rented at least once a
  • 9. Around what percentage of Internet users in the United States access the Internet through mobile devices All of the following are major business trends in e-commerce in 2011-12 except: Which of the following is the top online retailer ranked by online sales All of the following were visions of ecommerce expressed during the early years of e-commerce except: Which of the following is not one of the advantages of online advertising? Which of the following forms of online advertising is growing the fastest? Research studies have shown that viewers scan search engine results pages: CTR is a measure of the: All of the following are true statements about the choice of a domain name except: not a Which of the following statements is not true about the broadband audience? Which of the following is not an example of a commodity? Choose one answer. Amazon In discussing a product's feature set, the term actual product refers to: not c persistence of information asymmetries Online costs versus benefits are well established and understood. video in an "F" shaped pattern with greater attention to the left side of the page. percentage of times an ad is clicked. now that a number of new top-level domain names have been introduced, having a dot-com domain is no Which of the following statements about a free pricing strategy is false? The idea that people classify themselves into "affinity groups" is central to which of the following data Creating multiple variations of information goods and selling these to different market segments at different prices is called: All of the following are attributes of personalized marketing except: Which of the following activities is the one engaged in by the highest percentage of online users? ________ is an industrystandard database query and manipulation language. day by someone . It is less intensely involved with the Internet. . soap a. the set of characteristics designed to deliver the product's core benefits. c. It is difficult to convert free customers into paying customers. c. collaborative filtering customization . use of mass media a. using e-mail a. SQL.
  • 10. longer considered preferable, especially in the United States. Which of the following measures the average length of stay at a Web site? stickiness Conversion rate is a measure of the: percentage of visitors who become customers The most expensive form of online advertising on a per thousand viewer basis is a(n): exclusive sponsorship arrangement Which of the following measures the ratio of items purchased to product views? browse-to-buy ratio Recency refers to the time elapsed since the last action taken by a customer. Frequency of Web site use is a function of four independent variables: Web site organization, perceived ease of use, perceived usefulness of the Web site, and: Typical video and rich media advertisements have a typical clickthrough rate of: content quality. .5% - 2.65%. A (an) ________ profile describes an individual's set of needs, drives, motivations, perceptions and learned behaviors. Choose one answer. Which of the following statements about a free pricing strategy is false? Which of the following types of online market segmentation and targeting involves tracking the actions users take on a Web site? For a Web site that has 5 million visitors a month, and where on average, a visitor makes 10 page requests per visit, there will be ________ entries in the transaction log each month. The set of plans for differentiating a product and communicating the differences effectively to the marketplace is called: All of the following statements about cookies are true except: Netflix entered the market with a(an) ________ strategy. c. psychological . The free pricing strategy was born in the early days of the Web. behavioral 50 million a. brand strategy. b. the data typically stored in cookies includes a unique ID, email address, path, and security setting. c. first mover
  • 11. Hits are a measure of the: Purchasing an online ad on a CPA basis means that the advertiser: Amazon's "one-click" purchase capability is an example of using ________ to enhance sales. A typical response rate for an e-mail campaign would be ________ percent. number of http requests. pays only for those users who perform a specific action, such as registering, purchasing, etc. Web site functionality 5 CAN-SPAM imposes fines of ________ for each unsolicited pornographic e-mail. Which of the following is not a major Web design feature that impacts online purchasing? The two different types of online catalogs are: Legitimate e-mail addresses based on a high-quality commercial opt-in email list might cost ________ per thousand. Axe's posting of video ads online that were subsequently forwarded and shared by millions of Internet users is an example of: Creating multiple variations of information goods and selling these to different market segments at different prices is called: 10 redundant navigation full-page spreads and grid display. $5 to $10 viral marketing. "Shoppers" constitute approximately ________ percent of the online Internet audience. Which of the following is the top concern of Internet users about purchasing online? The incremental cost of building the next unit of a good is called the: Which of the following is not part of an augmented product's feature set? Choose one answer. On average, which of the following activities was most frequently engaged in by Internet users in 2011? Which of the following features of e-commerce technology has reduced the cost of delivering marketing messages and receiving feedback from users? Which of the following is an example of an indirect reference group? Small ticket item sales outnumbered large ticket item sales during the early days of e-commerce for all of the following reasons except: d. versioning. c. 88 a. inability to see and touch before buying . marginal cost packaging . checking the weather universal standards . social class c. margins were low.
  • 12. If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would: A Crayola arts and crafts column on a parenting Web site is an example of what form of advertising? sponsorship Which of the following advertising messages is a branding communication? Barnesandnoble.com: The Best Place to Buy Textbooks. All of the following are true statements about superstitials except: All of the following statements about interstitials are true except: interstitials typically last 30 seconds. Purchasing an online ad on a CPC basis means that the advertiser: All of the following statements about CAN-SPAM are true except: Which of the following is an example of "pull" advertising? Impressions are a measure of the: A typical banner ad might cost ________ per 1,000 impressions. Typical click-through rates for an online display ad are: Acquisition rate is a measure of the View-through rate measures the ________ response rate to an ad. they play immediately once loaded. interstitials typically last 30 seconds. pays a prenegotiated fee for each click an ad receives. CAN-SPAM prohibits unsolicited e-mail (spam). search engine ads number of times an ad is served. 5 .06% - .35%. percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages. 30-day Interactivity in the content of e-commerce can be described as: Analysts predict that B2B ecommerce in the United States will grow by 2015 to approximately: In general, the key to becoming a successful content provider is to: An example of a company using the content provider model is: ________ and ________ are typically the most easily identifiable aspects of a company's business model. b. implement a strategy of commoditization. d. the enabling of two-way communication between consumer and merchant. d. $4.4 trillion. own the content being provided. Rhapsody.com. Value proposition; revenue model
  • 13. Which of the following measures the ratio of actual orders to checkouts started? Which of the following types of display ads is 160 Which of the following forms of online advertising typically has the highest click-through rate? The number of display ad impressions a typical user is exposed to within a given day is estimated to be about: The size of a leaderboard is Which of the following online advertising formats attracted the least amount of spending in 2010? The amount spent on online advertising in 2011 was approximately: Promoted Trends is an example of which of the following types of online advertising? Which of the following is not one of the current trends in Internet advertising Which of the following is not a practice that degrades the results and usefulness of search engines? The percentage of all e-mail that is spam was approximately ________ percent in 2011. The typical dwell rate for rich media and video ads is: Which of the following is not true about search engine advertising? Which of the following generates the checkout conversion rate wide skyscraper search engine keyword purchase 1000 728 rich media $31.3 billion . social network advertising Spending on search engine advertising is overtaken by video ads social search 75 7%-8% Search engine advertising is the fastest growing type of online advertising. Facebook
  • 14. most social advertising revenues in 2011? Of the following online advertising formats, which had the highest spending in 2011? According to the Fogg et al. 2003 study, which of the following is the most important factor in the credibility of a Web site? Which of the following is not one of the advantages of online advertising?
 Which of the following forms of online advertising is growing the fastest?
 Research studies have shown that viewers scan search engine results pages: CTR is a measure of the:
 All of the following are true statements about the choice of a domain name except: 
 Which of the following measures the average length of stay at a Web site?
 Conversion rate is a measure of the: 

 The most expensive form of online search design look Online costs versus benefits are well established and understood.
 video
 in an "F" shaped pattern with greater attention to the left side of the page.
 
 CTR is a measure of the:
percentage of times an ad is clicked.
 now that a number of new top-level domain names have been introduced, having a dot-com domain is no longer considered preferable, especially in the United States.
 stickiness
 
percentage of visitors who become customers.
 
exclusive
  • 15. advertising on a per thousand viewer basis is a(n): Which of the following measures the ratio of items purchased to product views?
 Recency refers to the: Frequency of Web site use is a function of four independent variables: Typical video and rich media advertisements have a typical clickthrough rate of: 
. Hits are a measure of the: Purchasing an online ad on a CPA basis means that the advertiser: 
 Amazon's "one-click" purchase capability is an example of using ________ to enhance sales. 
 A typical response rate for an e-mail campaign would be ________ percent. CAN-SPAM imposes fines of ________ for each unsolicited pornographic e-mail. Which of the following is not a major Web design feature that impacts online purchasing? 
 The two different types of online catalogs are:
 Legitimate e-mail addresses based sponsorship arrangement.
 browse-to-buy ratio time elapsed since the last action taken by a customer.
 Web site organization, perceived ease of use, perceived usefulness of the Web site, and content quality. .5% - 2.65%.
 number of http requests.
 pays only for those users who perform a specific action, such as registering, purchasing, etc.
 Web site functionality
 5 
$10
 redundant navigation
 full-page spreads and grid display.
 
$5 to $10

  • 16. on a high-quality commercial opt-in email list might cost ________ per thousand. Axe's posting of video ads online that were subsequently forwarded and shared by millions of Internet users is an example of: A Crayola arts and crafts column on a parenting Web site is an example of what form of advertising? All of the following statements about the online insurance industry are true except: The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line? Which of the following is not a major trend in the online recruitment services industry? In 2011, approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store? The average annual amount spent online by users in 2011 was approximately: All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: Which of the following statements is not true? viral marketing.
 sponsorship
 a. the Internet has dramatically changed the insurance industry's value chain. a. term life insurance a. disintermediation c. 70 percent c. $1300. a. moving to a supplypush model. b. Online travel services is one of the few sectors in which extensive disintermediation has occurred.
  • 17. The top 15 retailers account for about ________ percent of all online retail. All of the following statements about the online real estate services market are true except: Personal consumption of retail goods and services accounts for approximately ________ of the U.S. GDP. All of the following were parts of the vision during the early days of ecommerce except the belief that: In 2011, online retail sales revenues were approximately: Which of the following is not a major trend in online retail for 2011-2012? All of the following are advantages of online retail except: All of the following were factors that precipitated the growth of MOTO except: Craigslist is a player in which of the following online services market? Approximately ________ percent of the U.S. labor force is involved in providing services. The MOTO sector is the most similar to the_____sector. Which of the following companies is not primarily a catalog merchant? 
 A Crayola arts and crafts column on a parenting Web site is an example of what form of advertising? Which of the following advertising messages is a branding communication? c. 45 d. the Internet and ecommerce have created significant disintermediation in the real estate d. $11 trillion d. the cost of acquiring customers would be much lower. $188 billion. c. Retail intermediaries continue to weaken in all areas. d. faster delivery of goods. b. the growth of the cellular phone industry. a. real estate services and career services d. 80 Online retail sales Walmart 
sponsorship
 
Barnesandnoble.com: The Best Place to Buy Textbooks.

  • 18. All of the following are true statements about superstitials except:
 All of the following are trends in the financial service industry except: All of the following statements are true except: What is another name for pro forma earnings? Which of the following is not one of the central challenges facing the online retail industry? All of the following are challenges faced by bricks-and-clicks firms except:
 Virtual merchants face potentially large costs for all of the following except: Current liabilities are debts of the firm that will be due within:
 All of the following products are considered durable goods except: Which of the following is not one of the methods used by traditional retailers to develop multi-channel integration? 
 Which of the following segments of the U.S. retail market is highly concentrated, with large firms dominating sales? Which of the following has experienced the most significant online growth? they play immediately once loaded.
 pure online banks are displacing established multi-channel firms.
 the MOTO sector is also called the general merchandise sector.
 
earnings before income taxes, depreciation, and amortization (EBITDA)
 
lack of physical store presence
 building a brand name.
 
building and maintaining physical stores.
 one year.
 clothing.
 online supply-push
 
general merchandise
 offline general merchandisers

  • 19. For which online services segment is more revenue booked online than offline? Which of the following would not be considered a current asset?
 For a quick check of a firm's shortterm financial health, examine its: 
 In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized Web site.
 Within the U.S. retail goods and services market, personal consumption of ________ accounts for the largest share.
 All of the following statements about Amazon.com are true except: The lower the cost of sales compared to ________, the higher the gross profit. Which of the following segments of the U.S. retail industry is the smallest? Gross margin is defined as gross profit: All of the following statements about interstitials are true except: Purchasing an online ad on a CPC basis means that the advertiser: All of the following statements about CAN-SPAM are true except:
 Which of the following is an example 
travel services long-term investments
 working capital.
 account aggregation
 services
 
Amazon has achieved success by focusing on its primary mission: selling books at highly competitive prices.
 revenue
 
online retail
 divided by net sales revenues.
 
interstitials typically last 30 seconds.
 
pays a prenegotiated fee for each click an ad receives.
 CAN-SPAM prohibits unsolicited e-mail (spam).
 search engine ads

  • 20. of "pull" advertising? 
 Impressions are a measure of the: A typical banner ad might cost ________ per 1,000 impressions. Which ethical principle tells you that it is wise to assume perfect information markets? Typical click-through rates for an online display ad are: Acquisition rate is a measure of the:
 View-through rate measures the ________ response rate to an ad.
 Which of the following measures the ratio of actual orders to checkouts started?
 Which ethical principle states that when confronted with an ethical dilemma, an individual should take the action that produces the least harm, or the least potential cost? Which ethical principle emphasizes putting oneself into the place of others and thinking of oneself as the object of the decision? Which of the following basic ethical concepts plays an important role in defining privacy?
 Which ethical principle states that, when confronted with an ethical dilemma, individuals should take the action that achieves the greater value for all of society? Which ethical principle states that if number of times an ad is served.
 
$5
 
the New York Times test
 
.06% - .35%.
 percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.
 30-day
 checkout conversion rate
 
Risk Aversion
 
the Golden Rule
 due process
 
the Collective Utilitarian principle
 the Slippery Slope

  • 21. an action cannot be taken repeatedly, then it is not right to take at all? 
 Which of the following e-commerce technology dimensions creates greater opportunities for cyberbullying? In Western culture, the basic principles shared by ethical schools of thought are: Which ethical principle asks you to assume that virtually all tangible and intangible objects are owned by someone else unless there is a specific declaration otherwise? What is the first step in analyzing an ethical dilemma?
 Which of the following e-commerce technology dimensions has the potential to reduce cultural diversity in products? Which ethical principle asks you to consider the impact of your decision if the principles underlying your decision became an organizing principle of the entire society? What is the largest sector of the online travel services market in terms of revenue? All of the following are challenges for catalog merchants except: All of the following are strategic factors that pertain specifically to a firm and its related businesses except: Which of the following sectors of the U.S. retail industry is the largest? The term demand-pull refers to: 
 
social technology
 
responsibility, liability, and accountability.
 
No Free Lunch
 Identify and describe the facts.
 
global reach
 the Social Contract rule 
airline reservations
 
building sophisticated order entry and fulfillment systems.
 
power of customers.
 
consumer durables
 waiting for orders to be received before
  • 22. Operating margin is defined as:
 Which of the following is not an example of a transaction broker? Which of the following is not categorized as an operating expense? 
 All of the following services require extensive personalization except: Which of the following statements about financial portals is not true? 
 Which of the following is not a key industry strategic factor? 
 Which of the following segments of the U.S. retail industry is the smallest? Gross margin is defined as gross profit: The lower the cost of sales compared to ________, the higher the gross profit. 
 Within the U.S. retail goods and services market, personal consumption of ________ accounts for the largest share. In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized Web site. For a quick check of a firm's shortterm financial health, examine its: 
 Which of the following would not be considered a current asset? For which online services segment is more revenue booked online than building a product.
 operating income or loss divided by net sales revenues.
 
an accountant
 the cost of products being sold
 
financial services.
 Their strategy is similar to that of large banking institutions.
 synergies
 
online retail
 
divided by net sales revenues.
 revenue
 
services
 
account aggregation
 working capital.
 
long-term investments
 travel services

  • 23. offline?
 Which of the following has experienced the most significant online growth? Which of the following segments of the U.S. retail market is highly concentrated, with large firms dominating sales? Which of the following is not one of the methods used by traditional retailers to develop multi-channel integration? 
 All of the following products are considered durable goods except: Current liabilities are debts of the firm that will be due within:
 Virtual merchants face potentially large costs for all of the following except: All of the following are challenges faced by bricks-and-clicks firms except: Which of the following is not one of the central challenges facing the online retail industry? What is another name for pro forma earnings? All of the following statements are true except: 
 All of the following are trends in the financial service industry except: Which of the following companies is not primarily a catalog merchant? offline general merchandisers
 
general merchandise
 online supply-push
 
clothing.
 one year.
 
building and maintaining physical stores.
 
building a brand name.
 
lack of physical store presence
 
earnings before income taxes, depreciation, and amortization (EBITDA)
 the MOTO sector is also called the general merchandise sector.

 pure online banks are displacing established multi-channel firms.
 
Walmart

  • 24. Which of the following generates the largest share of media revenues? Apple's iTunes Music Store primarily uses which of the following revenue models? Which of the following generates the largest share of media revenues? Which of the following would be considered an indirect competitor of American Airlines? The key technologies for mcommerce are: All of the following are key elements of a business model except The business model of e-distributors is quite similar to that of: All of the following can be considered a direct or indirect competitor of Amazon.com except: One of the competitive advantages of a B2B service provider is that it can spread the cost of an expensive software system over many users, achieving efficiencies referred to as: Which of the following is an example of the affiliate revenue model A firm's ________ describes how a firm will produce a superior return on invested capital. Which of the following features of ecommerce technology changes industry structure by lowering barriers to entry but greatly expands the market at the same time? Which element of the business model addresses the question of why a customer should buy from the firm? Stickiness is an important attribute for which revenue model television 
pay-per-view/pay-per download
 television Zipcar cell phone-based 3G/4G, Wi-Fi, and Bluetooth information technology strategy. e-tailers Starbucks. scale economies. MyPoints revenue model global reach value proposition advertising revenue model
  • 25. Over the past few years: What is the primary revenue model for an e-distributor? Which of the following factors is not a significant influence on a company's competitive environment? The overall retail market in the United States in 2011 was estimated at about: The existence of a large number of competitors in any one market segment may indicate: Which of the following features of ecommerce technology changes industry structure by weakening powerful sales channels, shifting bargaining power to consumers? All of the following are examples of Business-to-Business (B2~ business model except of the following is not a true statement about the online brokerage market? A ________ business model provides a way for consumers to sell to each other with the help of an online business. Which of the following is an example of the subscription revenue model? If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would Assume you are analyzing the market opportunity of a distance learning company, Learnmore.com, b. the number of exchanges diminished sharply. sales the availability of supportive organizational structures $3.6 trillion the market is saturated information density e-tailers Traditional brokerages have been unable to mount an effective challenge to the pure online brokerages C2C enable individual customization of the product by consumers $5 billion
  • 26. that creates education courses delivered over the Internet for the Fortune 1000 corporate market. Assume that the overall size of the distance learning market is $25 billion. The overall market can be broken down into three major market segments: Corporate, College, and Elementary/High School, each of which accounts for a third of the market. Within the Corporate market, there are two market niches: Fortune 1000, which accounts for 60% of the market, and all others, which together account for 40% of the market. What is Learnmore.com's realistic market opportunity, approximately? hich of the following is not a primary activity in a firm value chain? _______ and ________ are typically the most easily identifiable aspects of a company's business model. Which of the following is an example of an e-procurement business model? Your startup firm has developed Web-based note-taking software that allows participants to create and share virtual notes attached to existing Web pages. You anticipate marketing your online application to Web development and design companies. Which of the following revenue models is the most appropriate for your new company? A strategy designed to compete within a narrow market or product segment is called a ________ strategy Grainger.com is an example of which finance/accounting Value proposition; revenue model Ariba.com scription focus e-distributor
  • 27. of the following business models Which of the following is not considered a portal? Horizontal or general portals primarily generate revenue in all of the following ways except All of the following statements about Groupon are true except A business document that specifically details how you plan on selling your product and find new customers is called a Exostar is an example of a(an) The basic value proposition of community providers is A ________ coordinates a firm's suppliers, distributors, and delivery firms with its own production needs using an Internet-based supply chain management system. Monster.com is an example of a: Which of the following is not a community provider In 2011, there were an estimated ________ wireless hot spots worldwide Which of the following is the most common revenue model used by online content publishers? Which of the following is an example of technological convergence?
 All of the following are aspects of content convergence except: DRM refers to a combination of WSJ.com sales of goods it is unclear if Groupon's business model is sustainable market strategy. industry consortium. they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests value web transaction broker. Priceline 500000 mixed
 iPhone
 
language.
 technical and legal
  • 28. ________ for protecting digital content.
 Which of the following three forms of media account for over 80 percent of the hours spent consuming media? Which of the following is not an advantage of e-books, compared with traditional published works? 
 Which of the following occurs first in the process of media convergence? 
 Which of the following is not a major inhibiting factor in the growth of online content?
 Which of the following attracts the highest per capita spending? 
 Which of the following is not a major contributing factor to net value? 
 Which of the following is not a factor in the current transformation of the entertainment industry? Which of the following is not one of the factors required to charge for online content? 
 All of the following typically favor the elimination of DRM except: All of the following are e-book formats except:
 Which of the following are the top three producers of media revenues? ________ is the creator of the most common format for e-books.
 ________ is an industry standard for transmitting information about books, using XML tags. 
 An example of entertainment that offers high user control and high user means
 
television, radio, and the Internet
 portability
 media migration
 streaming quality of video
 trade books
 offering variety of subscription models
 
The growth in broadband has made possible wired and wireless delivery of high-quality video.
 multiple delivery methods
 
content owners.
 PPT
 television, book, and home video
 Adobe
 ONIX
 
auction sites.

  • 29. focus would be: Which of the following is not one of the four technology-based difficulties that slowed technology convergence of books with the Internet? 
 In comparison to hours spent at work, the average American adult spends ________ consuming various media.
 Which of the following is not one of the typical portal revenue sources? Which of the following types of dynamic pricing adjusts prices based on the merchant's estimate of how much the customer truly values the product?
 A(n) ________ is created by an organization for the purpose of pursuing organizational goals.
 Threatening negative feedback in return for a benefit is an example of:
 Which of the following is not one of the top factors a business should consider when planning an Internet auction? 
 In ________ pricing, customers change their offers to buy based on both their perceptions of the seller's desire to sell and their own need for the product.
 The profit a seller makes at auction is a function of all of the following except: Which of the following allows the consumer to enter a maximum price and the auction software automatically bids up the goods to that maximum price in small increments? bandwidth
 twice as much time
 
referral fees
 personalization
 sponsored community
 feedback extortion.
 location of auction
 dynamic
 
bid increments.
 
proxy bidding

  • 30. All of the following are benefits of auctions except: 
 Which of the following is a common problem in sealed bid markets? 
 Which of the following is a community of members who self-identify with a demographic or geographic category? 
 The top general-purpose portal sites together attract approximately ________ percent of the Internet audience.
 All of the following types of auctions have a seller bias except: 
 Which of the following is not a risk or cost of Internet auctions?
 The world's leading portal/search engine site, in terms of unique visitors, is:
 When there are few sellers but many buyers, a market will typically be:
 Which of the following involves emailing another seller's bidders and offering the same product for less? Which of the following is not a true statement? All of the following are situations in which markets fail to produce socially desirable outcomes except: All of the following types of auctions have a buyer bias except: Which of the following statements illustrates the network effects that portals are subject to? ________ pricing adjusts prices decreased price transparency.
 bid rigging
 affinity community
 60-80
 double auction.
 price transparency
 Google.
 seller-biased.
 
bid siphoning
 Auctions eliminate inter-market price differences.
 
network effects.
 
English auction. 
 The value of the portal to advertisers and consumers increases geometrically as reach increases.
 Trigger

  • 31. based on the location of the consumer. ________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids. A Web site designed to give parents of autistic children a common discussion area would be classified as a(n): Portals compete with one another on: Which of the following statements about social networks is true?
 Each corporate purchase order for support products costs, on average, at least ________ in administrative overhead. An ________ primarily serves businesses that primarily buy direct goods on a contract purchasing basis. Which of the following was the first step in the development of B2B commerce? Which of the following was not a development in the second stage of EDI's evolution?
 A single supplier making an online catalog of products available to the public marketplace is called a(n):
 Automated order entry systems are ________ solutions. Which of the following primarily serve horizontal markets? The last step in the procurement process is: Which of the following is not an objective of a private industrial Herd behavior
 
interest-based social network.
 
reach and unique visitors.
 Twitter is an example of a social network.
 
$100
 industry consortium
 
automated order entry systems
 replacement of the postal system
 B2B electronic storefront.
 seller-side
 
e-distributors and eprocurement Net marketplaces
 sending a remittance payment.
 obtaining equity participation in the
  • 32. network? Wood pulp purchased by a paper manufacturer is an example of: An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis. All of the following are methods of classifying Net marketplaces except: Exchanges have failed primarily because: Private industrial networks are direct descendants of: Which of the following is another name for a private industrial network?
 ________ is another name for transorganizational business processes. Which of the following primarily deal with direct goods?
 An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers. An e-procurement Net marketplace is sometimes referred to as a: Which of the following is not a typical barrier to the implementation of a private industrial network? Which of the following primarily deal with indirect goods? All of the following are major developments in supply chain management except: network from other major firms in the industry
 direct goods.
 e-procurement Net marketplace
 by technology used.
 suppliers have refused to join them. existing EDI networks.
 PTX
 Collaborative commerce
 exchanges and industry consortia
 e-distributor
 
many-to-many market.
 It requires the large network owners to give up some of its independence.
 
e-distributors and eprocurement Net marketplaces
 materials requirement planning.

  • 33. An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment. What is the first step in the procurement process? Which of the following primarily involve long-term sourcing? An ________ is an independently owned intermediary connecting hundreds of online suppliers offering millions of maintenance and repair products to business firms that pay fees to join the market. The majority of interfirm trade involves: An example of an indirect good in the fast-food industry is: Which of the following terms refers to the total flow of value among firms? Which of the following is the fastestgrowing form of e-commerce All of the following use an advertising revenue model except: Which of the following companies utilizes a transaction fee revenue model? All of the following are key elements of a business model except: Câu hỏi Which of the following best describes the early years of e-commerce? An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis. exchange
 search for suppliers
 e-procurement Net marketplaces and industry consortia
 e-procurement Net marketplace
 contract purchasing of direct goods.
 fax paper.
 total interfirm trade
 ko phải là c. B2C e-com merce d. Amazon . E*Trade information technology strategy. Đáp án a. They were a technological success but a mixed business success e-distributor

  • 34. Which of the following does not have a primary impact on the liquidity of a market? Most industry groups are moving toward which language for expressing EDI documents and communications? Which of the following is not a pricing mechanism typically used by Net marketplaces? All of the following statements about EDI are true except: All of the following are weaknesses of EDI except: A method of inventory cost management that seeks to eliminate excess inventory is known as: Industry consortia are sometimes referred to as:
 What is the largest sector of the online travel services market in terms of revenue? All of the following are challenges for catalog merchants except: All of the following are strategic factors that pertain specifically to a firm and its related businesses except: Which of the following sectors of the U.S. retail industry is the largest? The term demand-pull refers to: Operating margin is defined as: Which of the following is not an price transparency
 
XML
 utilization pricing
 EDI systems generally serve horizontal markets.
 EDI lacks universal standards.
 
just-in-time production.
 many-to-few markets. airline reservations
 building sophisticated order entry and fulfillment systems.
 power of customers.
 consumer durables
 waiting for orders to be received before building a product.
 
operating income or loss divided by net sales revenues.
 an accountant

  • 35. example of a transaction broker? Which of the following is not categorized as an operating expense? All of the following services require extensive personalization except: Which of the following statements about financial portals is not true? Which of the following is not a key industry strategic factor? Which of the following segments of the U.S. retail industry is the smallest? Gross margin is defined as gross profit: Your solar-panel manufacturing firm has developed a unique and patented process for creating highefficiency solar panels at a fraction of current costs. This will enable your firm to adopt a strategy of: In general, the key to becoming a successful content provider is to: Your solar-panel manufacturing firm has developed a unique and patented process for creating highefficiency solar panels at a fraction of current costs. This will enable your firm to adopt a strategy of: In general, the key to becoming a successful content provider is to: All of the following were visions of ecommerce expressed during the early years of e-commerce except: Which of the following statements is not true? the cost of products being sold
 financial services.
 Their strategy is similar to that of large banking institutions.
 synergies
 
online retail
 divided by net sales revenues.
 cost competition. ko phải b cost competition. ko phải b c. persistence of information asymmetries. b. Information systems researchers take a purely technical approach to e-
  • 36. commerce. ________ is a programming language invented by Netscape used to control the objects on an HTML page and handle interactions with the browser. All of the following are steps one can take to right-size a Web site's hardware platform and meet demands for service except: The term stateless refers to the fact that: Which of the following is not one of the basic business objectives for an e-commerce site? Which of the following basic system functionalities is used to display goods on a Web site? Which of the following is used to process certificates and private/public key information? All of the following are methods of improving the processing architecture of a Web site except: A template that allows you to build an online store, such as that offered by Yahoo Merchant Solutions, is most appropriate for a: Which of the following typically includes a data flow diagram to describe the flow of information for a Web site? All of the following are basic information requirements for a product database except: All of the following might be part of a Web site's backend layer except: JavaScript replacing static pages with dynamically generated pages. the server does not have to maintain an ongoing dedicated interaction with the client computer optimize system architecture digital catalog SSL adding Web servers small business with a relatively small variety of products. logical design customer ID numbers. an application server
  • 37. The leading Web server software is: Which of the following types of sites typically tends to have high to very high page views (hits)? The number of hits per second that a Web site can handle depends on: ________ are the types of information systems capabilities needed to meet business objectives. In general, the costs of ________ account for at least 50 percent of a Web site development budget. The larger the bandwidth available to a Web site: Which of the following is the least expensive path to creating a mobile Internet presence? Web servers are most efficient at: ________ involves testing a site program's modules one at a time. Which of the following details the actual hardware components to be used in a system? An e-commerce site that cost $25,000 to develop is likely to require a yearly maintenance budget of approximately: The primary way a Web site is able to personalize the content presented to a visitor is through the use of: is a set of standards for communicating between a browser and a program running on a server that allows for interaction between the user and server. Apache. publishing/subscription the bandwidth between the Web site's server and the Internet. System functionalities hardware, software, and telecommunications the more visitors can simultaneously access the site. resizing an existing Web site for mobile use serving static Web pages Unit testing physical design 25000 cookies. CGI
  • 38. Which of the following languages did Microsoft invent to compete with Java? Which of the following would not be an appropriate choice for an ecommerce suite for a medium-sized business? Dynamic page generation makes all of the following possible except: The _______ for a system are the information elements that the system must produce in order to achieve its business objectives Java Server Pages is most similar to the following: All of the following are important factors in successful e-commerce Web site design except: Research has shown that doubling dynamic page content on a Web site from 25% to 50%: The most common visitor activity at a typical e-commerce site is to: A _________ is a software program that provides the specific business functionality required of a Web site. __________ is the process of comparing a Web site with that of its competitors in terms of response speed, quality of layout and design. All of the following are basic functionality provided by Web servers except: A program such as WebTrends is an example of a: Which of the following is a type of application server: Which of the following is used to provide production and supplier links for an e-commerce Web site? VBScript Blue Martini Customer Interaction System multi-browser functionality information requirements CGI and ASP flashy graphics reduces throughput by up to1/3rd browse Web application server Benchmarking shopping cart site management tool all of the above inventory management system
  • 39. All of the following can be used to coordinate a Web sites marketing/advertising campaign except: Which of the following is a key factor to consider in choosing an ecommerce suite? Boo.com failed because: A standard known as _________ makes it possible to access data from any application regardless of what database is used. All of the following are basic functionality provided by e-commerce merchant server software except: __________ increases processing supply by improving a site’s hardware but maintaining the physical footprint and the number of servers. Which of the following is not one of the main factors in Web site optimization? ________ verifies that the business objectives of the system as originally conceived are in fact working. Which of the following is not an open source software tool? All of the following are important factors in Web site optimization except: Which of the following types of sites typically needs a high percent of secure pages? Which of the following would you use to identify orphan files? Advantages of dynamic page generation include all of the following groupware server all of the above all of the above ODBC KHÔNG chọn những đáp án sau: a product catalog, a shopping cart, credit card processing Vertical scaling page stickiness Acceptance testing WebSphere ensuring your market is global rather than local. trading site management tools client-side execution of programming.
  • 40. except: All of the following can enhance page delivery speed except: Which of the following technologies could you use to place the content of your Web site in a database so that you can then dynamically generate requests for pages? All of the following are forms of collaboration among businesses except: All of the following are elements of a collaborative commerce system except Which of the following was the first step in the development of B2B commerce? An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis. Industry consortia are sometimes referred to as: VWGroupSupply.com is an example of an: a(an) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems. Each corporate purchase order for support products costs, on average, at least ________ in administrative overhead. A single supplier making an online catalog of products available to the public marketplace is called a(an): The last step in the procurement process is: Which of the following is not a typical increasing the dynamic content on the pages. WCMS RFQs. RFID tags. . automated order entry systems exchange . many-to-few markets . exchange SCM . $100 electronic data interchange sending a remittance payment. It requires the large
  • 41. barrier to the implementation of a private industrial network? EDI transactions total about ________ percent of all B2B ecommerce in 2011. An ________ primarily serves businesses that primarily buy direct goods on a contract purchasing basis. Wood pulp purchased by a paper manufacturer is an example of: Which of the following is not a major trend in B2B e-commerce in 20112012? Which of the following primarily involve long-term sourcing? Which of the following is not a pricing mechanism typically used by Net marketplaces? A method of inventory cost management that seeks to eliminate excess inventory is known as: Which of the following primarily serve horizontal markets? An ________ primarily serves businesses that primarily buy direct goods on a contract purchasing basis Automated order entry systems are ________ solutions Most industry groups are moving toward which language for expressing EDI documents and communications? A single supplier making an online catalog of products available to the public marketplace is called a(an): network owners to give up some of its independence . 25 . industry consortium direct goods. rapid growth of independent Net marketplace exchanges e-procurement Net marketplaces and industry consortia . utilization pricing . just-in-time production. . e-distributors and eprocurement Net marketplaces industry consortium seller-side XML . B2B electronic storefront
  • 42. All of the following are weaknesses of EDI except: An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis. An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment Analysts predict that B2B ecommerce in the United States will grow by 2015 to approximately All of the following are methods of classifying Net marketplaces except An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis Which of the following does not have a primary impact on the liquidity of a market? The majority of interfirm trade involves ________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location Which of the following was not a development in the second stage of EDI's evolution? In 2011, the total amount of B2B trade in the United States was approximately Which of the following primarily deal with direct goods? A single supplier making an online catalog of products available to the public marketplace is called a(an) . EDI lacks universal standards . e-procurement Net marketplace exchange . $4.4 trillion . by technology used. . e-distributor price transparency contract purchasing of direct goods Tight coupling replacement of the postal system . $16 trillion . exchanges and industry consortia B2B electronic storefront
  • 43. Which of the following terms refers to the total flow of value among firms? Exchanges have failed primarily because An example of an indirect good in the fast-food industry is: Which of the following is not an objective of a private industrial network? Which of the following is another name for a private industrial network? Private industrial networks are direct descendants of: All of the following are potential benefits of B2B e-commerce except: EDI began as a(an) ________ system What is the first step in the procurement process? An e-procurement Net marketplace is sometimes referred to as a: ________ is another name for transorganizational business processes Which of the following is the fastest growing form of online B2B ecommerce? An ________ is an independently owned intermediary connecting hundreds of online suppliers offering millions of maintenance and repair products to business firms that pay fees to join the market Which of the following is the fastest growing form of online B2B ecommerce? An ________ is an independently owned intermediary connecting . total interfirm trade . suppliers have refused to join them. fax paper obtaining equity participation in the network from other major firms in the industry PTX . existing EDI networks lower price transparency document automation search for suppliers many-to-many market. . Collaborative commerce private industrial networks e-procurement Net marketplace private industrial networks e-procurement Net marketplace
  • 44. hundreds of online suppliers offering millions of maintenance and repair products to business firms that pay fees to join the market Which of the following protocols is used to send mail to a server? The first Web browser to make it possible to view documents on the Web with colored background, images, and animations was: An Internet-enabled medial player would run in which layer of Internet architecture? The ________ helps define the overall structure of the Internet. When talking about the physical elements of the Internet, the term redundancy refers to: Which of the following is the core communications protocol for the Internet? Which of the following is not a limitation of Internet I? The natural language convention used to represent IP addresses is called the: A(an) ________ allows users to have digital content automatically sent to their computers over the Internet. Which of the following statements about fiber-optic cable is not true? The protocol that enables the transmission of voice and other forms of audio communication over the Internet is called: a. SMTP b. Mosaic. a. Network Technology Substrate layer a. IAB d. multiple duplicate devices and paths in a network built so that data can be rerouted if a breakdown occurs. c. TCP/IP d. the difficulty in expanding capacity by adding servers and clients c. domain name system. d. RSS aggregator a. It consists of twelve or sixteen strands of glass. a. VoIP.
  • 45. The addresses used by browsers to identify the location of content on the Web are called: Which of the following is not one of the basic technological foundations of the Internet? During which phase of the development of the Internet was Ethernet invented? Which of the following is a shortrange, low-power, wireless network technology useful for remotely controlling industrial, medical, and home automation devices? In the United States, there are two main types of 3G networks, CDMA and: Which of the following is currently the most popular Web browser? The layer of Internet architecture that ties the applications to the communications network and includes such services as security and authentication is called the: During which period of time did the Institutionalization phase of Internet development take place? An IPv4 address is expressed as a: The ________ is a consortium of corporations, government agencies, and nonprofit organizations that The Internet Layer of TCP/IP is responsible for which of the following? Which of the following is a Web application that enables Internet users to communicate with each b. uniform resource locators. b. Tracert c. Innovation phase d. ZigBee a. GSM. a. Internet Explorer b. Middleware Services layer. c. 1975 - 1995 d. 32-bit number that appears as a series of four separate numbers separated by periods The Internet Society (ISOC) b. addressing, packaging, and routing messages b. online forum
  • 46. other, although not in real time? The process of slicing digital messages into parcels, sending them along different communication paths as they become available, and reassembling them at the destination point is called: The layer of Internet architecture that ties the applications to the communications network and includes such services as security and authentication is called the: The backbone of the Internet is formed by: You could expect to find all of the following services in a Web server software package except: The set of technologies that enables efficient delivery of data to many locations on a network is called: Which of the following is not true about the mobile platform? Which of the following is not an advantage of client/server computing over centralized mainframe computing? ________ is a utility that you run from the DOS prompt in the Windows operating system in order to check the connection between your client and the server. Which of the following occurred during the Commercialization phase of Internet development? The Network Interface Layer of TCP/IP is responsible for which of the following? c. packet switching b. Middleware Services layer. b. Network Service Providers (NSPs). d. RSS aggregator. a. IP multicasting. a. Most smartphones use Intel chips. b. Each client added to the network increases the network's overall capacity and transmission speeds. Ping d. NSF privatized the operation of the Internet's backbone. a. placing packets on and receiving them from the network medium
  • 47. ________ is one of the original Internet services and is used to transfer files from a server computer to a client computer and vice versa. ________ is a model of computing in which firms and individuals obtain computing power and software applications over the Internet, rather than purchasing and installing it on their own computers. TCP/IP operates in which layer of Internet architecture? All of the following are true about iPhone apps except: In the address http://www.company.com/clients.html, which of the following is the top-level domain? Local area networks that operate within a single organization that leases access to the Web directly from regional and national carriers are called: Where does FTP run within TCP/IP? The concept behind document formatting had its roots in which of the following? The Transport Layer of TCP/IP is responsible for which of the following? The natural language convention used to represent IP addresses is b. FTP d. Cloud computing c. Transport Services and Representation Standards layer b. they are typically written in the Java programming language. a. .com c. campus area networks. a. in the Application Layer d. GML c. providing communication with the application by acknowledging and sequencing the packets to and from the application c. domain name system.
  • 48. called the: The "hubs" where the backbone owners connect with one another are called: Where does SSL operate within TCP/IP? The layer of Internet architecture that ties the applications to the communications network and includes such services as security and authentication is called the: Which layer of Internet architecture is composed of the telecommunications networks and protocols? Which of the following is not one of the basic technological foundations of the Internet? The ________ is a consortium of corporations, government agencies, and nonprofit organizations that monitors Internet policies and practices. Which of the following types of smartphones has the most apps available? A(an) ________ is a Web application that allows users to easily add and edit content on a Web page. Which of the following is a highspeed, medium-range, broadband wireless metropolitan area network? All of the following were visions of ecommerce expressed during the early years of e-commerce except: Which of the following statements is not true? a. Internet Exchange Points (IXPs). b. between the Transport Layer and the Application Layer b. Middleware Services layer. a. Network Technology Substrate layer b. Tracert d. Internet Society (ISOC) a. iPhone a. wiki b. WiMax c. persistence of information asymmetries. b. Information systems researchers take a purely technical approach to ecommerce.
  • 49. All of the following are major business trends in e-commerce in 2011-12 except: Net marketplaces include all of the following except: Which of the following is one of the three primary societal issues related to e-commerce? b. online population growth in the United States continues to skyrocket. d. private industrial networks. d. individual privacy
  • 50. E-commerce 2013, 9e (Laudon/Traver) Chapter 1 The Revolution Is Just Beginning 1) The growth of mobile e-commerce almost doubled from 2011 to 2012. Answer: TRUE Diff: 2 Page Ref: 8 AACSB: Reflective Thinking 2) Approximately 80% of adults in the United States use a social network on a daily basis. Answer: FALSE Diff: 2 Page Ref: 8 AACSB: Reflective Thinking 3) A company's online inventory control process is an example of e-business, as opposed to e-commerce. Answer: TRUE Diff: 2 Page Ref: 13 AACSB: Analytic Skills 4) Ubiquity increases cognitive energy outlays. Answer: FALSE Diff: 2 Page Ref: 16 AACSB: Analytic Skills 5) The fact that e-commerce is conducted on the basis of universal standards decreases market entry costs for merchants. Answer: TRUE Diff: 3 Page Ref: 17 AACSB: Reflective Thinking 6) Price transparency refers to the ability of merchants to segment the market into groups willing to pay different prices. Answer: FALSE Diff: 2 Page Ref: 18 AACSB: Reflective Thinking
  • 51. 7) Cost transparency refers to the ability of consumers to discover the actual costs merchants pay for products. Answer: TRUE Diff: 2 Page Ref: 18 AACSB: Reflective Thinking 8) Customization involves changing a delivered product or service based upon a consumer's preferences or past purchasing behavior. Answer: TRUE Diff: 2 Page Ref: 19 AACSB: Reflective Thinking 9) Web 2.0 describes a set of applications and technologies that encourage and rely on user- and consumer-generated interactivity and content. Answer: TRUE Diff: 1 Page Ref: 19 AACSB: Use of IT 10) Social e-commerce is the largest type of e-commerce. Answer: FALSE Diff: 1 Page Ref: 8 AACSB: Reflective Thinking 11) E-commerce as we know it today would not exist without the Internet. Answer: TRUE Diff: 1 Page Ref: 27 AACSB: Reflective Thinking 12) The growth of B2C e-commerce is limited by the fact that consumers need to possess a more sophisticated skill set than consumers who shop offline. Answer: TRUE Diff: 2 Page Ref: 29 AACSB: Reflective Thinking 13) In 2011, a new Internet investment bubble focused primarily on social networks emerged. Answer: TRUE
  • 52. Diff: 2 Page Ref: 37 AACSB: Reflective Thinking 14) As economists had envisioned, prices of products sold on the Web are consistently lower than elsewhere, and the online marketplace is characterized by decreasing price dispersion. Answer: FALSE Diff: 3 Page Ref: 36-38 AACSB: Reflective Thinking 15) The future of e-commerce will include an increase in regulatory activity both in the United States and worldwide. Answer: TRUE Diff: 1 Page Ref: 43 AACSB: Reflective Thinking 16) Which of the following statements about Internet use in the United States in 2012 is not true? A) Social e-commerce generated more revenue than local e-commerce. B) Approximately 150 million users made at least one purchase online. C) Almost 50% of adult Internet users visited an online social network daily. D) Growth rates for B2C e-commerce were higher in the United States than in Europe. Answer: D Diff: 3 Page Ref: 8 AACSB: Reflective Thinking 17) In 2012, roughly ________ million people in the United States accessed the Internet via mobile devices. A) 30 B) 65 C) 80 D) 120 Answer: D Diff: 3 Page Ref: 8 AACSB: Reflective Thinking 18) Which of the following is not a major business trend in e-commerce in 2012-2013? A) Retail e-commerce continues double-digit growth.
  • 53. B) Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants. C) Facebook grows to more than 1 billion users. D) Social and mobile advertising begins to challenge search engine marketing. Answer: B Diff: 2 Page Ref: 10 AACSB: Use of IT 19) All of the following are major technology trends in e-commerce in 2012-2013 except: A) Cloud computing enables the creation of "big data." B) Apps create a new platform for online marketing and commerce. C) The mobile computing platform begins to rival the PC platform. D) Real-time advertising becomes a reality with gains in computing power and speeds. Answer: A Diff: 2 Page Ref: 10-11 AACSB: Reflective Thinking 20) E-commerce can be defined as: A) the use of the Internet and the Web to transact business. B) the use of any Internet technologies in a firm's daily activities. C) the digital enablement of transactions and processes within an organization. D) any digitally enabled transactions among individuals and organizations. Answer: A Diff: 1 Page Ref: 12 AACSB: Reflective Thinking 21) Which of the following is not a unique feature of e-commerce technology? A) interactivity B) social technology C) global broadcasting D) richness Answer: C Diff: 2 Page Ref: 15
  • 54. AACSB: Use of IT 22) The integration of video, audio, and text marketing messages into a single marketing message and consuming experience is an example of: A) richness. B) ubiquity. C) information density. D) personalization. Answer: A Diff: 2 Page Ref: 15 AACSB: Reflective Thinking 23) Which of the following qualities is least likely to decrease a consumer's search costs? A) ubiquity B) global reach C) information density D) richness Answer: D Diff: 3 Page Ref: 14-19 AACSB: Analytic Skills 24) Which of the following is the best definition of transaction cost? A) the cost of changing prices B) the cost of participating in a market C) the cost of finding suitable products D) the cost merchants pay to bring their goods to market Answer: B Diff: 2 Page Ref: 16 AACSB: Reflective Thinking 25) In 2012, the world's online population was roughly: A) 230 million. B) 2.3 billion. C) 23 billion.
  • 55. D) 230 billion. Answer: B Diff: 2 Page Ref: 8 AACSB: Reflective Thinking 26) Which of the following is not one of the current major social trends in e-commerce in 2012-2013? A) Spam declines as a significant problem. B) Controversy over content regulation and controls continues. C) E-books gain wide acceptance. D) Internet security continues to decline. Answer: A Diff: 2 Page Ref: 11 AACSB: Reflective Thinking 27) Network externalities are related to which of the following features of e-commerce technology? A) richness B) interactivity C) universal standards D) information density Answer: C Diff: 3 Page Ref: 17 AACSB: Reflective Thinking 28) E-commerce technologies have changed the traditional tradeoff between the richness and reach of a marketing message. Prior to the development of the Web: A) marketing messages had little richness. B) the smaller the audience reached, the less rich the message. C) the larger the audience reached, the less rich the message. D) richness equaled reach. Answer: C Diff: 2 Page Ref: 17 AACSB: Use of IT 29) Which of the following is not an example of a social network?
  • 56. A) Wikipedia B) Twitter C) Pinterest D) Facebook Answer: A Diff: 1 Page Ref: 7, 19-20 AACSB: Reflective Thinking 30) All of the following are major business trends in e-commerce in 2012-2013 except for: A) the growth of a new app-based online economy. B) the expansion of the localization of e-commerce. C) the emergence of a new social e-commerce platform. D) the eclipse of search engine marketing by the mobile advertising platform. Answer: D Diff: 2 Page Ref: 10 AACSB: Reflective Thinking 31) Which type of e-commerce is distinguished by the type of technology used in the transaction rather than by the nature of the market relationship? A) Consumer-to-consumer (C2C) B) Social e-commerce C) Mobile e-commerce D) Business-to-business (B2B) Answer: C Diff: 2 Page Ref: 21, 23 AACSB: Use of IT 32) Which of the following allows you to rate, categorize, and share the content you find online? A) WordPress B) StumbleUpon C) Wikipedia D) Instagram Answer: B Diff: 1 Page Ref: 20
  • 57. AACSB: Reflective Thinking 33) Which of the following describes the basic Web policy of large firms during the period of invention? A) integrate social networking and mobile platform with Web site marketing B) use Web to connect with suppliers C) include additional channels to market products D) maintain a basic, static Web site Answer: D Diff: 2 Page Ref: 32 AACSB: Analytic Skills 34) The size of the global C2C market in 2012 was around: A) $800 million. B) $8 billion. C) $80 billion. D) $800 billion. Answer: C Diff: 2 Page Ref: 22 AACSB: Reflective Thinking 35) Interactivity in the context of e-commerce can be described as: A) the ability to physically touch and manipulate a product. B) the complexity and content of a message. C) the ability of consumers to create and distribute content. D) the enabling of two-way communication between consumer and merchant. Answer: D Diff: 2 Page Ref: 17 AACSB: Reflective Thinking 36) Which of the following statements about the Web is not true? A) It is the technology upon which the Internet is based. B) It was developed in the early 1990s. C) It provides access to pages written in HTML.
  • 58. D) It provides access to Web pages that incorporate graphics, sound, and multimedia. Answer: A Diff: 2 Page Ref: 24 AACSB: Reflective Thinking
  • 59. 37) In 2012, there were an estimated ________ Internet hosts. A) 8 million B) 88 million C) 888 million D) 8.88 billion Answer: C Diff: 2 Page Ref: 23 AACSB: Reflective Thinking 38) All of the following can be considered a precursor to e-commerce except: A) DNS. B) Baxter Healthcare's remote order entry system. C) the French Minitel. D) Electronic Data Interchange. Answer: A Diff: 2 Page Ref: 24, 27 AACSB: Reflective Thinking 39) In the B2C arena, ________ was the first truly large-scale digitally enabled transaction system. A) Telex B) the Baxter Healthcare system C) the French Minitel D) EDI Answer: C Diff: 2 Page Ref: 27 AACSB: Reflective Thinking 40) E-commerce can be said to have begun in: A) 1983. B) 1985. C) 1995. D) 2001. Answer: C
  • 60. Diff: 2 Page Ref: 27 AACSB: Reflective Thinking 41) Business-to-consumer (B2C) e-commerce: A) has grown at double-digit rates in 2011 and 2012. B) is growing at a slower rate than the traditional retail market. C) is a major part (over 30 percent) of the overall retail market. D) growth is slowing as it confronts its own fundamental limitations. Answer: A Diff: 2 Page Ref: 27 AACSB: Reflective Thinking
  • 61. 42) In the "bow-tie" analogy of the structure of the Web, "tendrils" are: A) pages that link to the center, but which are not linked to from the center. B) pages that neither link to nor are linked from the center. C) pages that do not link to the center, but are linked to from the center. D) pages that link to one another without passing through the center. Answer: B Diff: 3 Page Ref: 25 AACSB: Analytic Skills 43) Which of the following is not a limitation on the growth of B2C e-commerce? A) the sophisticated skill set required to use the Internet and e-commerce systems B) the persistent global inequality limiting access to telephone service, PCs, and cell phones C) saturation and ceiling effects D) the retrenchment and consolidation of e-commerce into the hands of large established firms Answer: D Diff: 2 Page Ref: 29 AACSB: Analytic Skills 44) By what year is the United States Internet household penetration rate likely to reach the current level of cable television penetration? A) 2015 B) 2018 C) 2022 D) It has already reached the level of cable television penetration. Answer: A Diff: 2 Page Ref: 30 AACSB: Reflective Thinking 45) Around what percentage of Internet users in the United States access the Internet through mobile devices? A) 30 B) 50 C) 70 D) 90
  • 62. Answer: B Diff: 3 Page Ref: 30 AACSB: Use of IT 46) Which of the following is not a characteristic of a perfect competitive market? A) Price, cost, and quality information are equally distributed. B) A nearly infinite set of suppliers compete against one another. C) Customers have access to all relevant information worldwide. D) It is highly regulated. Answer: D Diff: 3 Page Ref: 32 AACSB: Analytic Skills 47) All of the following were visions of e-commerce expressed during the early years of e-commerce except: A) a nearly perfect competitive market. B) friction-free commerce. C) disintermediation. D) fast follower advantage. Answer: D Diff: 3 Page Ref: 32-33 AACSB: Analytic Skills 48) Unfair competitive advantages occur when: A) one competitor has an advantage others cannot purchase. B) market middlemen are displaced. C) information is equally distributed and transaction costs are low. D) firms are able to gather monopoly profits. Answer: A Diff: 2 Page Ref: 33 AACSB: Reflective Thinking 49) The early years of e-commerce were driven by all of the following factors except: A) an emphasis on exploiting traditional distribution channels. B) a huge infusion of venture capital funds.
  • 63. C) an emphasis on quickly achieving a very high market visibility. D) visions of profiting from new technology. Answer: A Diff: 3 Page Ref: 34 AACSB: Analytic Skills 50) The early years of e-commerce are considered: A) the most promising time in history for the successful implementation of first mover advantages. B) an economist's dream come true, where for a brief time consumers had access to all relevant market information and transaction costs plummeted. C) a stunning technological success as the Internet and the Web increased from a few thousand to billions of e-commerce transactions per year. D) a dramatic business success as 85% of dot-coms formed since 1995 became flourishing businesses. Answer: C Diff: 2 Page Ref: 34 AACSB: Reflective Thinking
  • 64. 51) Which of the following best describes the early years of e-commerce? A) They were a technological success but a mixed business success. B) They were a technological success but a business failure. C) They were a technological failure but a business success. D) They were a mixed technological and business success. Answer: A Diff: 2 Page Ref: 34 AACSB: Reflective Thinking 52) Approximately what percentage of dot-com companies formed since 1995 survived as independent companies in 2012? A) 10 B) 20 C) 30 D) 40 Answer: A Diff: 2 Page Ref: 34 AACSB: Reflective Thinking 53) Which of the following is a characteristic of the reinvention phase of e-commerce? A) massive proliferation of dot-com start-ups B) widespread adoption of broadband networks C) rapid growth of search engine advertising D) widespread adoption of consumer mobile devices Answer: D Diff: 3 Page Ref: 31-35 AACSB: Analytic Skills 54) Which of the following is a characteristic of the consolidation phase of e-commerce? A) predominance of pure online strategies B) emphasis on revenue growth versus profits C) first mover advantages D) shift to a business-driven approach Answer: D Diff: 3 Page Ref: 35
  • 65. AACSB: Reflective Thinking 55) Which of the following is not true regarding e-commerce today? A) Economists' visions of a friction-free market have not been realized. B) Consumers are less price-sensitive than expected. C) There remains considerable persistent price dispersion. D) The market middlemen disappeared. Answer: D Diff: 2 Page Ref: 36-39 AACSB: Reflective Thinking
  • 66. 56) Which of the following statements is not true? A) Information asymmetries are continually being introduced by merchants and marketers. B) Intermediaries have not disappeared. C) Overall transaction costs have dropped dramatically. D) Brands remain very important in e-commerce. Answer: C Diff: 2 Page Ref: 36-40 AACSB: Reflective Thinking 57) Which of the following types of merchants has the highest share of retail online sales? A) virtual (Web only) B) catalog/call center C) retail chain D) consumer brand manufacturer Answer: A Diff: 2 Page Ref: 39 AACSB: Reflective Thinking 58) Retail chains account for around ________ percent of online retail firm revenues. A) 15 B) 35 C) 75 D) 95 Answer: B Diff: 2 Page Ref: 39 AACSB: Reflective Thinking 59) One of the predictions for the future of e-commerce is that: A) overall revenues from e-commerce will grow at an annualized rate of about 10 percent a year through 2016. B) the first movers from the early years of e-commerce will retain or increase their market share as they continue to exploit economies of scale and switching costs. C) prices will lower enough to encourage more consumers to engage in online shopping. D) the number of online shoppers will continue to grow at double-digit rates. Answer: A
  • 67. Diff: 2 Page Ref: 40 AACSB: Reflective Thinking 60) Which of the following is the top-selling online retail category? A) apparel/accessories B) computers/electronics C) mass merchant/department stores D) office supplies Answer: C Diff: 2 Page Ref: 41 AACSB: Reflective Thinking 61) Which of the following is the top online retailer ranked by online sales? A) Apple B) Amazon C) Staples D) Walmart Answer: B Diff: 2 Page Ref: 42 AACSB: Reflective Thinking 62) Above all, e-commerce is a ________ phenomenon. A) technology-driven67 Copyright © 2013 Pearson Education, Inc. B) finance-driven C) sociological D) government-driven Answer: A Diff: 2 Page Ref: 44 AACSB: Use of IT 63) Which business application is associated with the technological development of local area networks and client/server computing?
  • 68. A) transaction automation (e.g., payroll) B) desktop automation (e.g., word processing) C) industrial system automation (e.g., supply chain management) D) workgroup automation (e.g., document sharing) Answer: D Diff: 3 Page Ref: 45 AACSB: Use of IT 64) Which of the following is one of the three primary societal issues related to e-commerce? A) liability B) anonymity C) equity D) individual privacy Answer: D Diff: 2 Page Ref: 46 AACSB: Reflective Thinking 65) Which of the following statements is not true? A) No one academic perspective dominates research about e-commerce. B) Information systems researchers take a purely technical approach to e-commerce. C) There are two primary approaches to e-commerce: behavioral and technical. D) Management scientists are interested in e-commerce as an opportunity to study how business firms can exploit the Internet to achieve more efficient business operations. Answer: B Diff: 2 Page Ref: 50 AACSB: Reflective Thinking 66) The costs incurred by merchants in having to change product prices (such as the costs of reentering prices into computer systems) are referred to as ________ costs. Answer: menu Diff: 3 Page Ref: 14 AACSB: Reflective Thinking
  • 69. 67) ________ refers to any disparity in relevant market information among parties in a transaction. Answer: Information asymmetry Diff: 2 Page Ref: 14 AACSB: Reflective Thinking 68) A(n) ________ extends the marketplace beyond traditional boundaries. Answer: marketspace Diff: 1 Page Ref: 16 AACSB: Reflective Thinking 69) The total number of users or customers an e-commerce business can obtain is a measure of its ________. Answer: reach Diff: 2 Page Ref: 16 AACSB: Reflective Thinking 70) ________ refers to the complexity and content of a message. Answer: Richness Diff: 2 Page Ref: 17 AACSB: Reflective Thinking 71) The targeting of marketing messages to specific individuals by adjusting the message to a person's name, interests, and past purchases is called ________. Answer: personalization Diff: 2 Page Ref: 18 AACSB: Reflective Thinking 72) The most popular service that runs on the Internet infrastructure is the ________. Answer: World Wide Web, Web Diff: 2 Page Ref: 24 AACSB: Reflective Thinking 73) Internet/Web technology is available just about everywhere and anytime. This is known as ________. Answer: ubiquity Diff: 2 Page Ref: 16
  • 70. 74) ________ refers to the displacement of market middlemen. Answer: Disintermediation Diff: 2 Page Ref: 32 AACSB: Reflective Thinking 75) In ________ commerce, information is equally distributed, transaction costs are low, prices can be dynamically adjusted to reflect actual demand, intermediaries decline, and unfair competitive advantages are eliminated. Answer: friction-free Diff: 3 Page Ref: 33 AACSB: Reflective Thinking 76) A(n) ________ occurs when everyone in a group receives value because all participants use the same tool or product. Answer: network effect Diff: 2 Page Ref: 33 AACSB: Reflective Thinking 77) A firm that is first to market in a particular area and that moves quickly to gather market share is referred to as a(n) ________. Answer: first mover Diff: 2 Page Ref: 33 AACSB: Reflective Thinking 78) The first evolutionary phase of e-commerce, from 1995 to 2000, characterized as technology-driven and ungoverned, was a period of ________. Answer: innovation, invention Diff: 3 Page Ref: 31 AACSB: Reflective Thinking 79) An economist is most likely to be interested in a(n) ________, rather than technical, approach to studying e-commerce. Answer: behavioral Diff: 2 Page Ref: 50 AACSB: Reflective Thinking 80) Tangible works of the mind such as music, books, and videos are called ________. Answer: intellectual property
  • 71. 81) Define the terms e-business and e-commerce and explain the difference. What is the key factor in determining if a transaction is "commerce"? Answer: E-business refers primarily to digitally enabled transactions within a firm, involving information systems under the control of the firm. E-business does not include commercial transactions in which an exchange of value across organizational boundaries takes place. E-commerce, on the other hand, is a revenue-generating operation. The key factor in determining if a transaction is commerce therefore is "exchange of value." In order to be e-commerce, a transaction must include the direct production of revenue. Diff: 1 Page Ref: 13 AACSB: Analytic Skills 82) Identify the eight unique features of e-commerce technology and explain how these features set e-commerce apart from more traditional ways of conducting commercial transactions. Answer: The eight unique features of e-commerce technology are ubiquity, global reach, universal standards, richness, interactivity, information density, personalization/customization, and social technology. The fact that e-commerce is available nearly everywhere, at any time, (ubiquity) extends the marketplace beyond traditional boundaries and removes it from a temporal and geographic location. A marketspace is created in which shopping can take place anywhere, enhancing consumer convenience and reducing shopping costs, whereas in traditional commerce the marketplace is a physical place you must visit in order to transact. The global reach of ecommerce means that commerce is enabled across national and cultural boundaries as never before, with potentially billions of consumers and millions of businesses worldwide included in the marketspace. Traditional commerce, by contrast, is local or regional involving local merchants or national merchants with local outlets. Universal standards (one set of technical media standards) also allow for the seamless enablement of global commerce. In contrast, most traditional commerce technologies differ from one nat ion to the next. In traditional markets, national sales forces and small retail stores can provide a complex and content-rich message. However, there is generally a trade-off between the richness of the message and the number of consumers who can be reached with the marketing message. In e-commerce the trade-off is no longer necessary. An information rich environment is extended globally. Unlike any other commercial technology of the twentieth century, except perhaps the telephone, e-commerce technologies are interactive, allowing for two-way communication between the seller and the consumer. E-commerce technologies reduce information collection, storage, processing, and communication costs thereby greatly increasing the prevalence, accuracy, and timeliness of information. This information density (information that is more plentiful, cheaper, and of higher quality) sets e-commerce apart from all other traditional methods of conducting transactions. E-commerce technologies also permit the personalization and customization of marketing messages on a level that was impossible with previous commerce technologies. Marketing messages can be targeted to specific individuals based on their interests and past purchasing behavior, and the product or service can be altered to suit a customer's preferences and prior behavior. Social technology allows users to easily generate and share content and permits a many-to-many model of mass communications that is different from previous technologies. This supports the creation of new business models and products that support social network services. Diff: 2 Page Ref: 14-19
  • 72. 83) Has e-commerce changed the marketing of goods? If so, how? Answer: E-commerce has greatly changed the marketing of goods. Before e-commerce was developed, the marketing and sale of goods was a mass-marketing and sales force-driven process. Marketers viewed consumers as passive targets of advertising campaigns. E-commerce has brought many new possibilities for marketing. The Internet and Web can deliver, to an audience of millions, rich marketing messages with text, video, and audio in a way not possible with traditional commerce technologies such as radio, television, or magazines. Merchants can target their marketing messages to specific individuals by adjusting the message to a person's name, interests, and past purchases. In addition, much information about the consumer can be gathered from the Web site the consumer visits. With the increase in information density, a great deal of information about the consumer's past purchases and behavior can be stored and used by online merchants. The result is a level of personalization and customization unthinkable with existing commerce technologies. Diff: 2 Page Ref: 14-19 AACSB: Analytic Skills 84) Identify a Web 2.0 application or site, describing the qualities that make it a Web 2.0 application or site. Does the site you selected have any business value? What is it? Answer: Student answers will vary. An example is: YouTube can be considered an example of a Web 2.0 site because its content is generated by users rather than created by the site owners. Other qualities that make this a Web 2.0 site include the interactivity among users that is allowed, such as comments and video replies, sharing play lists, e-mailing links to videos, and more. YouTube has tremendous business value because it has so many visitors—it is one of the most popular destination sites on the Internet with over 158 million unique visitors in April 2012. Diff: 2 Page Ref: 19 AACSB: Analytic Skills 85) List and briefly explain the main types of e-commerce. Answer: The main types of e-commerce are Business-to-Consumer (B2C), in which online businesses attempt to reach individual consumers; Business-to-Business (B2B), in which businesses focus on selling to other businesses; Consumer to Consumer (C2C), which provides a market in which consumers can sell goods to each other; mobile e-commerce (m-commerce), which refers to the use of wireless digital devices to enable Web transactions, social e-commerce, which is commerce enabled by social networks and online social relationships; and local e-commerce, which is e-commerce that is focused on engaging the customer based on his or her geographical location. Diff: 2 Page Ref: 21-23 AACSB: Analytic Skills
  • 73. 86) Describe the visions and forces during the early days of e-commerce in terms of what the various interest groups hoped for: the computer science and information technology people; the economists; and the entrepreneurs, venture capitalists and marketers. Explain whether what each group envisioned came to fruition and why or why not. Answer: The computer scientists and information technologists' vision was of a universal communications and computing environment that everyone could access with inexpensive computers. Their interest was in creating a vast worldwide information collection from libraries, universities, governments, and scientific institutions that was ungoverned by any nation and free to all. They believed that the Internet, and by extension, the e-commerce that operated within the infrastructure, should be self-governed and selfregulated. The economists envisioned a near-perfect competitive market where price, cost, and quality information are equally distributed. The marketspace would include a nearly infinite number of suppliers with equal access to hundreds of millions of customers, but where those consumers in turn would have access to all relevant market information—a hypercompetitive market. Market middlemen would disappear, resulting in lowered costs to consumers. This intensely competitive, disintermediated environment with lowered transaction costs would eliminate product brands as well as the possibility of monopoly profits based on brands, geography, or special access factors. Unfair competitive advantages and the ability to reap returns on capital that far extended a fair market rate of return would be eliminated. Their vision was called friction-free commerce. The entrepreneurs, venture capitalists, and marketers in turn saw e-commerce as an opportunity to earn great returns on invested capital. They saw the e-commerce marketspace and technologies as a powerful method of increasing their ability to even more precisely segment the market into groups with different price sensitivities. They believed that huge profits could be garnered by firms that quickly achieved high market visibility and that these successful first movers would become the new intermediaries of ecommerce, displacing the traditional retail merchants and content suppliers. The computer scientists' vision of an ungoverned Internet has not come to fruition as governments have increasingly sought to regulate and control the technology to ensure that positive social benefits result. The economists' vision has also for the most part not materialized for a variety of reasons. Consumers have proven to be less price sensitive than expected and the importance of brand names to consumers' perceptions of quality and service has been extended rather than decreased or eliminated. Entrepreneurs have discovered new methods for differentiating products and services. New information asymmetries are continually being introduced by marketers. Disintermediation has also not occurred as new middlemen emerged. The visions of the entrepreneurs, venture capitalists, and marketers have also largely not come to fruition as the first movers from the early years of e-commerce only rarely succeeded. The fast follower large traditional firms with the resources needed to develop mature markets are displacing most of the venture capitalist backed entrepreneurs. Diff: 2 Page Ref: 32-40
  • 74. Chap 1 E-Commerce Trends 2012-2013 -mobile platform solidifies -mobile e-commerce explodes -continued growth of social networks -expansion of social and local e-commerce -explosive growth in "Big Data" -e-books gain wide acceptance E-commerce definition involves digitally enabled commercial transaxns b/w and among orgs and indivs digitally enabled transaxns include all transaxns mediated by digital tech commercial transaxns involve the exchange of value across org or indiv boundaries in return for p/s e-commerce vs e-business EB: digital enabling of transaxns and processes WITHIN a firm, involving IS under firm's control (internet) EB: does NOT include commercial transaxns with an exchange of value across org boundaries why study e-commerce? diff + more powerful than any previous tech
  • 75. traditional commerce 1. consumer = passive target 2. sales force driven 3. fixed prices 4. info asymmetry 8 unique features of e-commerce 1. ubiquity (available everywhere, always) 2. global reach 3. universal standards 4. info richness (media ads) 5. interactivity 6. info density (tech reduces info costs and raises quality) 7. personalization/customization 8. social technology (user content gen + SN) Web 2.0 user-centered apps + SM tech user-gen content + cx highly interactive large audiences *Twitter, YouTube, FB, Instagram, etc. Types of EC B2C B2B C2B Social EC
  • 76. Mobile EC (M-commerce) Local EC internet global computer networks built on common stds made in late 1960s services: web, e-mail, file tx measure growth: look at # of hosts with domain names the web most popular service on the internet made in early 1990s gives access to web pages (HTML) includes text, graphics, animation, music, vidoes content grown exponentially Precursors of EC Baxter Healthcare Electronic Data Interchange French Minitel (1980s videotext sys) NONE with fxnality of internet Baxter Healthcare throughout the 1980s and 1990s the company expanded to deliver a wider variety of products and services (including vaccines, a greater variety of blood products) through acquisitions of various companies. Electronic Data Interchange ...
  • 77. French Minitel ... beginning of EC 1995 first sales of banner ads t/f: EC is fastest growing form of EC in US? TRUE But only 2.8% of mkt share name technologies that have greatly changed commerce (4) internet web cars radio limits on B2C growth 1. expensive tech 2. sophisticated skills set 3. persistent cultural attraxn of phys mkts and tradl shopping experiences 4. persistent global inequality limiting access to phones + comps 5. saturation + ceiling effects (growth in the Internet pop slows as it approaches the size of the total pop) EC phases
  • 78. 95-00: Innovation (explosive growth) 01-06: Consolidation (business-driven emphasis, char by reassessment of EC co's and value) 06-Now: Reinvention (consumer gen content, SN, virtual lives) vision for EC: computer scientists -internet shouldn't be controlled by gov and remain free for all vision for EC: economists -nearly perfect competitive mkt (friction-free commerce) -char by low transaxn + search + menu costs, price transparency, dynamic pricing, disintermed, elim of unfair competitive advantages vision for EC: entrepreneurs -opp for high ROI bc of: 1. worldwide access to consumers 2. new, universal, cheap, powerful mkting techniques + cx 3. ability to segment mkt 4. 1st mover advantages (built in switching costs) 5. network effects failures of EC 1. friction free commerce -consumers less price sensitive than expected -considerable price dispersion remains 2. perfect competition -transaxn costs still high -info assyms persist
  • 79. 3. disintermed -intermeds haven't disappeared 4. 1st mover advantage -fast followers overtake first movers 3 organizing themes 1. tech: dev't + mastery of digital computing + cx tech 2. business: new techs present bus with new ways of org prodxn and transacting business 3. society: IP, individual privacy, public policy predictions of EC 1. prices will cover real cost of doing business and pay high ROR 2. margins and profits will rise to levels more typical of retailers (fortune 500 cos will play dominant role) 3. # of soccessful pure online stores will remain smaller than integrated online/offline stores 4. regulatory activity worldwide will grow 5. success = can it be digitized? 6. creativity! 7. trusted 3rd parties will become important 8. 3 credit bureaus in U.S. equifax experian transunion
  • 80. Chap 2 business model Set of planned activities designed to result in a profit in a marketplace business plan describes a firm's business model EC business model Uses/leverages unique qualities of Internet and Web value proposition Defines how a co's p/s fulfills customers needs why your firm? what do you have to offer unique examples of successful value proposition -Personalization/customization -Reduction of product search, price discovery costs -Facilitation of transactions by managing product delivery revenue model aka financial model describes how the firm will earn revenue, generate profits, and produce a superior return on invested capital major types of rev model define
  • 81. oAdvertising revenue model oSubscription revenue model oTransaction fee revenue model oSales revenue model oAffiliate revenue model advertising revenue model Web site that offers content, services and/or products also provides a forum for advertisements and receives fees from advert isers ex: yahoo subscription rev model §Web site that offers users content or services charges a subscription fee for access to some or all of its offerings like premium or pro or plus apps and websites transaxn fee rev model §Company that receives a fee for enabling or executing a transaction like ebay getting part of the cost or etrade.com sales rev model §Company derives revenue by selling goods, information, or services to customers ex: gap.com, amazon.com, etc affiliate RM
  • 82. Sites that steer business to an "affiliate" receive a referral fee or percentage of the revenue from any resulting sales mypoints.com epoints.com mkt opp Refers to a company's intended marketspace and the overall potential financial opportunities available to the firm in that marketspace mkt space §the area of actual or potential commercial value in which a company intends to operate realistic mkt opp is defined by revenue potential in each of market niches in which company hopes to compete competitive enviro Refers to the other companies selling similar products and operating in the same marketspace what is it influenced by -# of active competitors -Each competitor's mkt share, profitability, pricing direct and indirect competitors direct competitors
  • 83. co's that sell p/s that are very similar and into the same mkt seg priceline amd travelocity indirect competitors companies that may be in different industries but that still compete indirectly because their products can substitute for one another espn and cnn (competitors because they compete for consumer's time online not because they sell identical prods) competitive advantage is your prod superior/cheaper? how do firms achieve competitive advantage? when they can get differential access to factors of prodxn denied to competitors perfect mkt no competitive advantages or asymmetries bc all firms have access to all the factors of prodxn (including info + knowledge) equally asymmetry when one participant in a market has more resources than others types of competitive advantage 1. first mover advantage 2. unfair competitive advantage first mover advantage
  • 84. results from a firm being first in mktlace unfair competitive advantage when one firm develops an advantage based on a factor that other firms cannot purchase ex: brand name leverage when a company uses its competitive advantage to achieve more advantage in surronding mkts mkt strategy a plan that details how a co intends to enter a new mkt and atttract customers How are you gonna promote your p/s to target audience? TARGET AUDIENCE IS IMPORTANT *AOL: gives free CDs to get ppl hooked FreshDirect - lessens intermediaries (lower price) organizational development what types of org structures w/i firm are necessary to carry out the bus plan? *how will co be organized how will goals be accomplished? work divided into fxnal depts hiring mgrs: general -> specialty strong mgt team
  • 85. -makes bus model work -gives credibility to outside investors -has mkt-specific knowledge -has experience in implementing bus plans difficulties in EC bus model categorization 1. no one correct way 2. categorize based on EC sector (B2B, B2C, C2C, etc.) 3. type of EC tech can also affect classification of bus model (m-comm) 4. some co's use multiple bus models *ebay B2C Business Models (BMs): Portal offers powerful search tools + integrated package of content and services (Yahoo!) typically uses or combines subscription/ads revenue/transaxn fee model today seen as "destination" site (not gateway) may be general/horizontal OR specialized/vertical B2C BMs: E-tailer online version of tradl retailer LOW BARRIERS TO ENTRY Types of E-Tailers 1. virtual merchants 2. bricks-and-clicks (clicks & mortar)
  • 86. 3. catalog merchants 4. manufacturer-direct B2C BMs: Content Provider Distrib digital content: info + entertainment, over the Web typical rev models for content provider + variations + examples 1. subscription 2. pay for download 3. advertising -syndication (assoc of co's for definite purpose) -web aggregators *CNN.com WSJ.com key to becoming a successful content provider OWNING the content B2C BMs: Transaxn Broker Processes online transaxns for consumers primary value proposition of transaxn broker saving time + $$$ largest industries using this model
  • 87. 1. financial services 2. travel services 3. job placement services *Ex: E-trade, Expedia B2C BMs: Market Creator uses internet tech to create mkts that bring buyers and sellers together *Priceline.com (reverse auction) Ebay.com *Typically use a transaxn fee rev model B2C BMs: service provider offers services online *Google: Maps, Docs, etc service provider's value proposition valuable, convenient, time-saving, low-cost alternatives to trad'l service providers service provider's rev models 1. subscription fees 2. one-time pmt B2C BMs: community provider creates online enviro (Social network) where ppl with similar interests can transact and communicate
  • 88. community provider typical rev model HYBRID! -including advertising fees, sx fees, sales revs, transaxn fees, affiliate fees *MySpace, Facebook, iVillage PART B --- What are the B2B Business Models? 1. Net marketplaces -e-distributor -e-procurement -exchange -industry consortium 2. private industrial network B2B BMs: e-distributor co that supplies p/s DIRECTLY to indiv businesses -owned by one co seeking to serve many customers E-distributor Revenue Models sales of goods Ex: Office Depot, Staples, GE Electric Aircraft Engines
  • 89. B2B BMs: E-Procurement create and sell access to digital electronic markets B2B service provider is ONE TYPE (offer purchasing firms sophisticated set of sourcing and supply chain mgt tools) - app service providers = subset of service providers E-Procurement Rev Model service fees supply chain mgt fulfillment services *ex: Ariba (created software that helps large firms, creates custom online catalogs) *Siemens B2B BMs: Exchanges (B2B Hubs) electronic digital mkt place where suppliers and commercial purchasers can conduct transaxns usu owned by indep firms whose business is making a mkt Exchanges RM transaxn commission fees create powerful competition b/w suppliers tend to force suppliers into powerful price competition (# of exchanges has dropped dramatically) LOW BARRIER TO ENTRY! Forces suppliers into powerful price competition
  • 90. B2B BMs: Industry Consortia industry-owned vertical digital mktplace (eg auto, chemical, floral, logging) open to select suppliers MORE SUCCESSFUL THAN EXCHANGES! why is industry consortia more successful than exchanges? 1. supply smaller # of co's with p/s relevant to industry 2. sponsored by powerful industry players 3. strengthen tradl purchasing beh (rather than seek to transform it) anyone who wants to join can (unlike exchanges) *Ex: Exostar: Online trading exchange for aerospace and defense industry Best B2B = Alibaba.com B2B BMs: Private Industrial Networks -digital network -used to coordinate cx among firms engaged in bus together -typically evolve out of co's internal enterprise system *Ex: Walmart's network for suppliers E-Commerce Enablers: The Gold Rush Model EC infrastructure co's have profited the most, providing: 1. hardware, software, networking, security 2. EC software & pmt systems 3. CRM software
  • 91. 4. DBs 5. hosting services, etc. AMAZON!!!!!!! industry structure refers to nature of players in an industry and their relative bargaining power EC changes the industry structure by changing: 1. the basis of competition among rivals 2. barriers to entry 3. threat of new substitute prods 4. strength of suppliers 5. bargaining power of buyers industry value chains set of activities performed in an industry by suppliers, manufacturers, transporters, distributors, and retailers that transform raw inputs -> final p/s how does internet affect industry value chains? reduces cost of information and other transaxnal costs for manufacs, distribs, customers Leads to greater operational efficiencies, lower prices, adding value to customers firm value chains set of activities that a firm engages in to create final prods from raw inputs EACH STEP ADDS VALUE
  • 92. what is the internet effect on firm value chains? 1. increases operational efficiency 2. enables product differentiation 3. enables precise coordination of steps in chain EC & Firm Value Chains Primary Activities Inbound Logistics Operations Outbound Logistics Sales & Marketing After Sales Service EC & Firm Value Chains Secondary Activities Admin HR Information Systems Procurement Finance/Accting Firm Value Webs Networked bus ecosys How do Firm Value Webs use internet to coordinate value chains of bus partners w/i an industry or w/i a group of firms coordinates a firm's suppliers with its own prodxn needs using an internet-based supply chain mgt sys bus strategy
  • 93. set of plans for achieving superior long-term returns on the capital invested in a bus firm (ie a plan for making a profit in a competitive environment) What are the 4 Generic Strategies? 1. Differentiation 2. Cost 3. Scope 4. Focus Chap 4 business models Portal, e-tailer, content provider, transaction broker, market creator, service provider, community provider revenue models Advertising, subscriptions, transaction fees, sales, and affiliate revenue. how do you determine the target audience? 1. Demographics Age, gender, income, location 2. Behavior patterns (lifestyle) 3. Consumption patterns (purchasing habits) 4. Digital usage patterns 5. Content creation patterns (blogs, FB) 6. Buyer personas
  • 94. How do you characterize the marketplace? Via: 1. demographics 2. size, growth, changes 3. structure: competitors, suppliers, substitutes 4. where the content is coming from (static vs dynamic) How can you imagine your e-commerce presence? 1. Know yourself - SWOT Analysis 2. Develop an EC presence map 3. Develop a timeline: milestones How much does EC cost? simple web site: up to $5K small web start-up: $25-50K large corporate site: $100K - millions Type of presence: website e-mail social media offline media web sites: platform traditional mobile tablet
  • 95. web sites: activity search display affiliates sponsorships e-mail: platform internal lists purchased lists e-mail: activity newsletters updates sales social media: platform FB Twitter Blogs social media: activity conversation engagement sharing advice offline media: platform
  • 96. print TV & radio offline media: activity education exposure branding most important mgt challenges in building a successful e-commerce site are: 1. developing a clear understanding of bus objectives Req you to: build a plan for developing your firm's site 2. knowing how to choose the right technology to achieve those objectives Req you to: understand some of the basic elements of EC infrastructure areas where you need to make decisions in building a site 1. HR & org capabilities - creating a team that has the skill set to build and manage a successful site 2. hardware 3. software 4. telecomm 5. site design systems development life cycle methodology for understanding bus objectives of a sys and designing an approp soln 5 steps of SDLC 1. Systems analysis/planning 2. systems design 3. Building the system
  • 97. 4. Testing 5. Implementation web site systems development life cycle 1. Systems Analysis/Planning 2. Systems Design 3. Building the System 4. Testing 5. Implementation System Delivery Web site systems development best practices 1. Continuous availability 99%+ 2. Design for scalability 3. Build in mgt for end-to-end delivery 4. Plan for growth 5. Design pages for high-speed performance 6. Understand and optimize workload on system What are the 3 components of system analysis? 1. business objectives 2. system functionality 3. information requirements business objectives list of capabilities you want your site to have system fxnalities List of IS capabilities needed to achieve business objectives
  • 98. information requirements Info elements that system must produce to achieve bus objectives What are the 9 basic business objectives? 1. Display goods 2. Provide product info (content) 3. Personalize/customize product 4. Engage customers in conversations 5. Execute a transaxn 6. Accumulate customer info 7. Provide after-sale customer support 8. Coordinate marketing/advertising 9. Understand marketing effectiveness 10. Provide prodxn + supplier links system design specification Description of main components of a system and their relationship to one another 2 components of sys design logical and physical logical and physical design are all on paper!!! true. logical design
  • 99. Data flow diagrams processing fxns databases physical design 1. translates logical --> physical components 2. Specifies actual physical, software components, models, etc. outsourcing Hiring vendors to provide services involved in building site Build own vs outsourcing Build your own requires team with diverse skill set; choice of software tools; both risks and possible benefits Host own vs outsourcing: hosting Hosting company responsible for ensuring site is accessible 24/7, for monthly fee host own vs outsourcing: co-location Firm purchases or leases Web server (with total control over its operation), but server is located at vendor's facility 3 Types of testing unit testing system testing acceptance testing unit testing
  • 100. involves testing the site's program modules one at a time system testing involves testing the site as a whole, in a way the typical user will use the site acceptance testing verifies that the business objectives of the system as originally conceived are in fact working benchmarking Comparing site to competitors in terms of response speed, quality of layout, and design Costs of maintenance parallel to development costs t/f: maintenance is ongoing true factors in web site optimization: 1. page generation 2. page delivery 3. page content Purpose of website is to deliver content to customers and to complete transaxns. The faster + more reliably this is met, the more effective the web site page generation
  • 101. server response time device based accelerators efficient resource allocation resource utilization thresholds monitoring site performance page delivery content delivery networks edge catching bandwidth page content optimize html & images site architecture efficient page style system architecture Arrangement of software, machinery, and tasks in an information system needed to achieve a specific functionality 2-Tier architecture Web server and database server multi-tier architecture Web application servers Backend, legacy databases all EC sites require basic web server software to answer HTTP requests from customers
  • 102. TRUE Apache leading web server software (54% of mkt) Works only with UNIX, LINUX OSs Microsoft's Internet Info Server (IIS) 2nd major web server software (25% of mkt) Windows based Basic Fxnality Provided by Web Servers 1. Processesing of HTTP requests 2. Security services (secure sockets layer) 3. File transfer protocol 4. Search engine 5. Data capture 6. E-mail 7. Site mgt tools Basic site mgt tools included in all web servers verify that links on pages are still valid identify orphan files 3rd party software and services for advanced site mgt monitor customer purchases, mkting campaign effectiveness ex: WebTrends Analytics 10, Google Analytics
  • 103. Dynamic page generation Contents of Web page stored as objects in db, rather than being hard-coded in HTML. When the user requests a Web page, the contents for that page are then fetched from the db Common dynamic page gen tools: CGI = Common Gateway Interface ASP = Active Server Pages JSP = Java Server Pages advantages of dynamic page gen tools 1. lowers menu costs (costs incurred by merchants for changing prod dx + prices) 2. permits easy online mkt segmentation (ability to sell same product to diff mkts) 3. enables cost-free price discrimination (ability to sell the same product to diff customers @ diff prices) 4. enables web content sys (WCMS) web app servers provide... specific business fxnality req for a website application servers are... kind of middleware software that provides the glue connecting trad'l corporate systems to the customer as well as all the fxnality needed to conduct EC 2 types of app servers 1. isolated business apps (from web servers + DBs) 2. single-fxn apps (which are increasingly being replaced by integrated software tools that combine all fxnality needed for EC site)
  • 104. Fxns of app servers Do I Need to know this??? EC merchant server software provides... provides basic fxnality for online sales: -online catalog -shopping cart -credit card processing merchant server software packages (EC suites) offer integrated environment with most of functionality needed EC merchant services ex: Yahoo's Small Business Merchant Solns Open source web building tools ex: Apache web server, MySQL, PHP, PERL key factors in selecting a package: -Fxnality -Support for diff business models -Bus process modeling tools -Visual site mgt + reporting -Performance + scalability -Connectivity to existing bus systems -Compliance with standards
  • 105. -Global + multicultural capability -Local sales tax + shipping rules Hardware platform (for EC site) refers to all underlying computer equipment that system uses to achieve EC fxnality Objective of choosing the hardware for an EC site: have enough platform capacity to meet peak demand but not so much that you waste money Important to understand the different factors that affect 1, 2, 3 of a site 1. speed 2. capacity 3. scalability the most important factor affecting the speed of your site is... the demand that customers put on the site Factors involved in overall demand: 1. # of simultaneous users in peak periods 2. nature of customer requests (user profile) 3. type of content (dynamic vs static web pages) 4. req'd security 5. # of items in inventory 6. # of page requests 7. speed of legacy apps scalability
  • 106. refers to ability of site to increase in size as demand warrants ways to scale hardware: 1. vertically - increase processing power of indiv components 2. horizontally - employ multiple computers to share workload 3. improve processing architecture of site basic business considerations for web site design need design guidelines and software tools that can cost-effectively achieve req'd bus fxnality *enabling customers to find what they need, make purchase + leave ___% users say they would not revisit a web site that they found annoying to use 75 widgets small pre-built chunk of code that executes automatically in an HTML web page Mashups Pull fxnality/data from one program and include it in another CGI (Common Gateway Interface) standards for cx b/w browser + program running on a server that allows for interaxn b/w user + server ASP (Active server pages) Used to build dynamic pages with Microsoft's IIS
  • 107. Java Used to create interactivity and active content on client computer JSP (Java Server Pages) Similar to CGI and ASP; allows developers to use HTML, JSP scripts, and Java to dynamically generate web pages Javascript used to control objects on a web page and handle interaxns with browser activeX invented by microsoft to compete with Java VBScript invented by microsoft to compete with Javascript ColdFUsion integrated server-side environment for developing interactive web apps personalization ability to treat ppl based on their personal qualities and prior history with your site customization ability to change the product to better fit then eeds of the customer
  • 108. cookies small text file placed on the user's client computer that can contain any kind of info about the customer (customer ID, purchases at the site) *PRIMARY METHOD FOR ACHIEVING PERSONALIZATION + CUSTOMIZATION) privacy policy set of public statements declaring how site will treat customers' personal info that is gathered by the site accessibility rules set of design objectives that ensure disabled users can affectively access site 3 types of m-commerce software 1. mobile web site (responsive web design) 2. Mobile web app 3. native app planning + building mobile presence uses... systems analysis/design to identify unique and specific bus objectives Most unique features that must be taken into account when designing a mobile web presence 1. Hardware *smaller, more resource constraints in data storage +processing power 2. Connectivity *constrained by slower connection speeds 3. Displays *smaller + req simplicification (some are not good in sunlight either)
  • 109. 4. Interface *touch screen technology introduces new interaxn routines diff from tradl mouse and keyboard (not good data entry tool but can be a good navigational tool) design considerations platform constraints: smartphone/tablet performance + cost 1. mobile web site (least expensive) 2. mobile app (can use browser API) 3. native app (most expensive, requires more programming) Chap 6 number of U.S. households that had Internet access in 2012 §Around 75% (89 million) §Growth rate -- slowed §Intensity and scope of use -- increasing Some demographic groups have much higher percentages of online usage than others Demographics to examine include gender, age, ethnicity, community type, income; education 3 types of internet audiences
  • 110. 1. broadband 2. dial-up 3. new mobile purchasing beh is affected by neighborhood Living near others purchasing from online grocery will increase likelihood of also purchasing by 50% lifestyle and sociological impacts 1. Use of Internet by children, teens 2. Use of Internet as substitute for other social activities media choices 1. Trad'l media competes with Internet for attention 2. TV viewing has increased with Internet usage study of consumer beh Social science that attempts to predict/explain what consumers purchase and where, when, how much and why they buy. consumer beh models §Predict wide range of consumer decisions §Based on background demographic factors and other intervening, more immediate variables what demographic factor has the largest impact? cultural Subculture (ethnicity, age, lifestyle, geography)
  • 111. what are the 4 social reference groups? direct indirect opinion leaders (viral influencers) lifestyle groups direct social ref group one's family, profession or occupation, religion, neighborhood, and schools indirect social ref group one's life-cycle stage, social class, and lifestyle group opinion leaders (viral influencers) influence the beh of others through their personality, skills, or other factors lifestyle groups an integrated pattern of activities, interests and opinions psychological profiles set of needs, drives, motivations, perceptions and learned behaviors psychographic research §Combines demographic and psychological data §Divides market into groups based on social class, lifestyle, and/or personality chars
  • 112. Five stages in the consumer decision process 1. Awareness of need 2. Search for more information 3. Evaluation of alternatives 4. Actual purchase decision 5. Post-purchase contact with firm T/F: Decision process similar for online and offline behavior true general online beh model §Consumer skills §Product characteristics §Attitudes toward online purchasing §Perceptions about control over Web environment §Web site features clickstream beh Transaction log for consumer from search engine to purchase clickstream factors include: §Number of days since last visit §Speed of clickstream behavior §Number of products viewed during last visit §Number of pages viewed §Supplying personal information §Number of days since last purchase §Number of past purchases
  • 113. clickstream mkting Developed dynamically as customers use Internet Shoppers: 87% of Internet users 73% buyers 13% browsers who buy offline One-third offline retail purchases influenced by online activities --- Online traffic also influenced by offline brands and shopping --- E-commerce and traditional commerce are coupled: part of a continuum of consuming behavior --- Two groups roughly divide online sales big ticket items small ticket items big ticket items §$500 plus §Travel, computer hardware, consumer electronics §Consumers now more confident in purchasing costlier items
  • 114. small ticket items §On average, $100 or less §Apparel, books, office supplies, software, etc. §Sold by first movers §Physically small §High margin items §Broad selection of products available how shoppers find vendors online:. §Search engines (59%) §Marketplaces (Amazon, eBay) (28%) §Direct to retail sites (10%) §Other methods (3%) §Online shoppers are highly intentional, looking for specific products, companies, services why consumers dont buy online 1. cant touch and see the product 2. concerns about personal info 3. delivery costs too high 4. concerns that returns will be a hassle 5. prefer to research online then buy in store 6. no need to buy prods online 7. camt speak to a sales associate Two most important factors shaping decision to purchase online trust and utility utility
  • 115. §Consumers looking for better prices, convenience, speed trust §Consumers also need to trust merchants before they are willing to purchase §Asymmetry of information can lead to opportunistic behavior by sellers §Sellers can develop trust by building strong reputations for honesty, fairness, delivery
  • 116. Question 4 Marks: 1 All of the following are major technology trends in e-commerce in 2012-2013 except: Choose one answer. a. Cloud computing enables the creation of "big data." b. Apps create a new platform for online marketing and commerce. c. The mobile computing platform begins to rival the PC platform. d. Real-time advertising becomes a reality with gains in computing power and speeds. Correct Marks for this submission: 0/1. Question 7 Marks: 1 In 2012, there were an estimated ________ Internet hosts. Choose one answer. a. 8 million b. 88 million c. 888 million d. 8.88 billion Correct Marks for this submission: 1/1. Question 8 Marks: 1 Social e-commerce is the largest type of e-commerce. Answer: True False Correct Marks for this submission: 1/1. Question 9 Marks: 1
  • 117. All of the following are major business trends in e-commerce in 2012-2013 except for: Choose one answer. a. the growth of a new app-based online economy. b. the expansion of the localization of e-commerce. c. the emergence of a new social e-commerce platform. d. the eclipse of search engine marketing by the mobile advertising platform. Correct Marks for this submission: 0/1. Question 10 Marks: 1 Which of the following is not a major business trend in e-commerce in 2012-2013? Choose one answer. a. Retail e-commerce continues double-digit growth. b. Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants. c. Facebook grows to more than 1 billion users. d. Social and mobile advertising begins to challenge search engine marketing. Correct Marks for this submission: 0/1. Question 11 Marks: 1 All of the following can be considered a precursor to e-commerce except: Choose one answer. a. DNS. b. Baxter Healthcare's remote order entry system. c. the French Minitel. d. Electronic Data Interchange.
  • 118. Correct Marks for this submission: 1/1. Question 13 Marks: 1 The early years of e-commerce were driven by all of the following factors except: Choose one answer. a. an emphasis on exploiting traditional distribution channels. b. a huge infusion of venture capital funds. c. an emphasis on quickly achieving a very high market visibility. d. visions of profiting from new technology. Correct Marks for this submission: 1/1. Question 14 Marks: 1 Which of the following is not a characteristic of a perfect competitive market? Choose one answer. a. Price, cost, and quality information are equally distributed. b. A nearly infinite set of suppliers compete against one another. c. Customers have access to all relevant information worldwide. d. It is highly regulated. Correct Question 17 Marks: 1 Which of the following statements is not true? Choose one answer. a. No one academic perspective dominates research about e-commerce. b. Information systems researchers take a purely technical approach to e-commerce.
  • 119. c. There are two primary approaches to e-commerce- behavioral and technical. d. Management scientists are interested in e-commerce as an opportunity to study how business firms can exploit the Internet to achieve more efficient business operations. Correct Marks for this submission: 1/1. Question 18 Marks: 1 Which of the following is the best definition of transaction cost? Choose one answer. a. the cost of changing prices b. the cost of participating in a market c. the cost of finding suitable products d. the cost merchants pay to bring their goods to market Correct Marks for this submission: 1/1. Question 19 Marks: 1 Which of the following best describes the early years of e-commerce? Choose one answer. a. They were a technological success but a mixed business success. b. They were a technological success but a business failure. c. They were a technological failure but a business success. d. They were a mixed technological and business success. Correct Marks for this submission: 1/1. Question 1 Marks: 1 In 2012, there were an estimated ________ Internet hosts.
  • 120. Choose one answer. a. 8 million b. 88 million c. 888 million d. 8.88 billion Correct Marks for this submission: 1/1. Question 2 Marks: 1 Social e-commerce is the largest type of e-commerce. Answer: True False Correct Marks for this submission: 1/1. Question 4 Marks: 1 Tangible works of the mind such as music, books, and videos are called ________. Answer: Intellectual property Correct Marks for this submission: 1/1. Question 5 Marks: 1 As economists had envisioned, prices of products sold on the Web are consistently lower than elsewhere, and the online marketplace is characterized by decreasing price dispersion. Answer: True False Correct Marks for this submission: 1/1. Question 6
  • 121. Marks: 1 E-commerce technologies have changed the traditional tradeoff between the richness and reach of a marketing message. Prior to the development of the Web: Choose one answer. a. marketing messages had little richness. b. the smaller the audience reached, the less rich the message. c. the larger the audience reached, the less rich the message. d. richness equaled reach. Correct Marks for this submission: 1/1. Question 7 Marks: 1 In 2012, roughly ________ million people in the United States accessed the Internet via mobile devices. Choose one answer. a. 30 b. 65 c. 80 d. 120 Correct Marks for this submission: 0/1. Question 9 Marks: 1 Which of the following is one of the three primary societal issues related to e-commerce? Choose one answer. a. liability b. anonymity c. equity
  • 122. d. individual privacy Correct Marks for this submission: 1/1. Question 10 Marks: 1 List and briefly explain the main types of e-commerce. Answer: Ecommerce can be broken into four main categories: B2B, B2C, C2B, and C2C. B2B (Business-to-Business) Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable. B2C (Business-to-Consumer) Businesses selling to the general public typically through catalogs utilizing shopping cart software. By dollar volume, B2B takes the prize, however B2C is really what the average Joe has in mind with regards to ecommerce as a whole. Having a hard time finding a book? Need to purchase a custom, high-end computer system? How about a first class, allinclusive trip to a tropical island? With the advent ecommerce, all three things can be purchased literally in minutes without human interaction. Oh how far we've come! C2B (Consumer-to-Business) A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions. C2C (Consumer-to-Consumer) There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995. Question 11 Marks: 1
  • 123. All of the following can be considered a precursor to e-commerce except: Choose one answer. a. DNS. b. Baxter Healthcare's remote order entry system. c. the French Minitel. d. Electronic Data Interchange. Correct Marks for this submission: 1/1. Question 13 Marks: 1 Unfair competitive advantages occur when: Choose one answer. a. one competitor has an advantage others cannot purchase. b. market middlemen are displaced. c. information is equally distributed and transaction costs are low. d. firms are able to gather monopoly profits. Correct Marks for this submission: 1/1. Question 14 Marks: 1 Which of the following is the top-selling online retail category? Choose one answer. a. apparel/accessories b. computers/electronics c. mass merchant/department stores d. office supplies Correct
  • 124. Marks for this submission: 1/1. Question 16 Marks: 1 Which of the following statements about the Web is not true? Choose one answer. a. It is the technology upon which the Internet is based. b. It was developed in the early 1990s. c. It provides access to pages written in HTML. d. It provides access to Web pages that incorporate graphics, sound, and multimedia. Correct Marks for this submission: 1/1. Question 17 Marks: 1 All of the following were visions of e-commerce expressed during the early years of e-commerce except: Choose one answer. a. a nearly perfect competitive market. b. friction-free commerce. c. disintermediation. d. fast follower advantage. Correct Marks for this submission: 0/1. Question 1 Marks: 1 ________ refers to the displacement of market middlemen. Answer: Disintermediation Correct Marks for this submission: 1/1. Question 3
  • 125. Marks: 1 Which of the following statements is not true? Choose one answer. a. Information asymmetries are continually being introduced by merchants and marketers. b. Intermediaries have not disappeared. c. Overall transaction costs have dropped dramatically. d. Brands remain very important in e-commerce. Correct Marks for this submission: 1/1. Question 4 Marks: 1 Unfair competitive advantages occur when: Choose one answer. a. one competitor has an advantage others cannot purchase. b. market middlemen are displaced. c. information is equally distributed and transaction costs are low. d. firms are able to gather monopoly profits. Correct Marks for this submission: 1/1. Question 5 Marks: 1 The growth of mobile e-commerce almost doubled from 2011 to 2012. Answer: True False Correct Marks for this submission: 1/1. Question 8 Marks: 1 The total number of users or customers an e-commerce business can obtain is a measure of its ________.
  • 126. Answer: reach Correct Marks for this submission: 1/1. Question 11 Marks: 1 Retail chains account for around ________ percent of online retail firm revenues. Choose one answer. a. 15 b. 35 c. 75 d. 95 Correct Marks for this submission: 1/1. Question 12 Marks: 1 Which of the following qualities is least likely to decrease a consumer's search costs? Choose one answer. a. ubiquity b. global reach c. information density d. richness Correct Marks: 1 In the B2C arena, ________ was the first truly large-scale digitally enabled transaction system. Choose one answer. a. Telex b. the Baxter Healthcare system
  • 127. c. the French Minitel d. EDI Correct Marks for this submission: 1/1. Question 16 Marks: 1 In the "bow-tie" analogy of the structure of the Web, "tendrils" are: Choose one answer. a. pages that link to the center, but which are not linked to from the center. b. pages that neither link to nor are linked from the center. c. pages that do not link to the center, but are linked to from the center. d. pages that link to one another without passing through the center. Correct Marks for this submission: 1/1. Question 17 Marks: 1 In 2012, there were an estimated ________ Internet hosts. Choose one answer. a. 8 million b. 88 million c. 888 million d. 8.88 billion Correct Marks for this submission: 1/1. Question 18 Marks: 1 Which of the following is not an example of a social network? Choose one answer.
  • 128. a. Wikipedia b. Twitter c. Pinterest d. Facebook Correct Marks for this submission: 0/1. Question 20 Marks: 1 E-commerce can be said to have begun in: Choose one answer. a. 1983. b. 1985. c. 1995. d. 2001. Correct Marks for this submission: 1/1.
  • 129. CHAP 2 Question 1 Marks: 1 All of the following are key elements of a business model except: Choose one answer. a. competitive environment. b. organizational development. c. information technology strategy. d. market strategy. Correct Marks for this submission: 1/1. Question 3 Marks: 1 Which of the following is not a community provider? Choose one answer. a. LinkedIn b. Facebook c. Priceline d. Pinterest Correct Marks for this submission: 1/1. Question 4 Marks: 1 The element of a business model that is responsible for making the model work is: Choose one answer. a. the management team. b. the organizational structure.
  • 130. c. the firm's key competitive advantage. d. the market strategy. Correct Marks for this submission: 1/1. Question 5 Marks: 1 A strategy designed to compete within a narrow market or product segment is called a ________ strategy. Choose one answer. a. scope b. differentiation c. cost d. focus Correct Marks for this submission: 1/1. Question 6 Marks: 1 ________ and ________ are typically the most easily identifiable aspects of a company's business model. Choose one answer. a. Market strategy; market opportunity b. Value proposition; revenue model c. Value proposition; competitive environment d. Revenue model; market strategy Correct Marks for this submission: 1/1. Question 7 Marks: 1 Which element of the business model examines who else occupies the firm's intended marketspace? Choose one answer.
  • 131. a. value proposition b. competitive environment c. competitive advantage d. market strategy Correct Marks for this submission: 1/1. Question 8 Marks: 1 All of the following may lead to a competitive advantage except: Choose one answer. a. less expensive suppliers. b. better employees. c. fewer products. d. superior products. Correct Marks for this submission: 1/1. Question 9 Marks: 1 What is the primary revenue model for an e-distributor? Choose one answer. a. sales b. transaction fee c. advertising d. subscription Correct Marks for this submission: 1/1. Question 10
  • 132. Marks: 1 A business document that specifically details how you plan on selling your product and find new customers is called a: Choose one answer. a. sales analysis. b. business plan. c. competitive strategy. d. market strategy. Correct Marks for this submission: 1/1. Question 11 Marks: 1 A ________ is the set of activities performed in an industry or in a firm that transforms raw inputs into final products and services. Answer: business model Correct Marks for this submission: 0/1. Question 12 Marks: 1 Which of the following are Amazon's primary value propositions? Choose one answer. a. personalization and customization b. selection and convenience c. reduction of price discovery cost d. management of product delivery Correct Marks for this submission: 1/1. Question 13 Marks: 1 ________ is a social network based on 140-character messages.
  • 133. Answer: Tw itter Correct Marks for this submission: 1/1. Question 15 Marks: 1 The business model of e-distributors is quite similar to that of: Choose one answer. a. e-tailers. b. transaction brokers. c. exchanges. d. service providers. Correct Marks for this submission: 1/1. Question 16 Marks: 1 The Internet's universal standards decrease the cost of industry and firm operations. Answer: True False Correct Marks for this submission: 1/1.
  • 134. Question 1 Marks: 1 The terms revenue model and financial model can be used interchangeably. Answer: True False Correct Marks for this submission: 0/1. Question 2 Marks: 1 The element of a business model that is responsible for making the model work is: Choose one answer. a. the management team. b. the organizational structure. c. the firm's key competitive advantage. d. the market strategy. Correct Marks for this submission: 1/1. Question 4 Marks: 1 Which of the following is not considered a portal? Choose one answer. a. Yahoo b. MSN c. WSJ.com d. AOL Correct Marks for this submission: 1/1. Question 5 Marks: 1
  • 135. A value proposition defines how a company's product or service fulfills the needs of a customer. Answer: True False Correct Marks for this submission: 1/1. Question 7 Marks: 1 Stickiness is an important attribute for which revenue model? Choose one answer. a. advertising revenue model b. subscription revenue model c. transaction fee revenue model d. sales revenue model Correct Marks for this submission: 1/1. Question 8 Marks: 1 The Internet's universal standards decrease the cost of industry and firm operations. Answer: True False Correct Marks for this submission: 1/1. Question 10 Marks: 1 All of the following are key elements of a business model except: Choose one answer. a. competitive environment. b. organizational development. c. information technology strategy.
  • 136. d. market strategy. Correct Marks for this submission: 1/1. Question 11 Marks: 1 An industry ________ is an effort to understand and describe the nature of competition in an industry, the nature of substitute products, the barriers to entry, and the relative strength of consumers and suppliers. Answer: structural analysis Correct Marks for this submission: 1/1. Question 12 Marks: 1 A(an) ________ is a set of planned activities designed to result in a profit in marketplace. Answer: business model Correct Marks for this submission: 1/1. Question 13 Marks: 1 Your startup firm has developed Web-based note-taking software that allows participants to create and share virtual notes attached to existing Web pages. You anticipate marketing your online application to Web development and design companies. Which of the following revenue models is the most appropriate for your new company? Choose one answer. a. advertising b. transaction fee c. affiliate d. subscription Correct Marks for this submission: 1/1.
  • 137. Question 14 Marks: 1 An example of a company using the content provider model is: Choose one answer. a. Priceline. b. Rhapsody.com. c. Dell. d. eBay. Correct Marks for this submission: 1/1. Question 15 Marks: 1 A firm's ________ refers to the other companies operating in the same marketspace selling similar products. Answer: competitive environment Correct Marks for this submission: 1/1. Question 16 Marks: 1 All firms need an organization to efficiently implement their business plans and strategies. Answer: True False Correct Marks for this submission: 1/1. Question 18 Marks: 1 Which of the following are Amazon's primary value propositions? Choose one answer. a. personalization and customization
  • 138. b. selection and convenience c. reduction of price discovery cost d. management of product delivery Correct Marks for this submission: 1/1. Question 19 Marks: 1 Social technologies change industry structure by shifting programming and editorial decisions to consumers. Answer: True False Correct Marks for this submission: 1/1. Question 20 Marks: 1 Visitors to specialized niche vortals tend to spend less money than the average visitor to a horizontal portal. Answer: True False Correct Marks for this submission: 1/1.
  • 139. Question 1 Marks: 1 A firm's ________ refers to the other companies operating in the same marketspace selling similar products. Answer: competitive environment Correct Marks for this submission: 1/1. Question 2 Marks: 1 Which element of the business model examines who else occupies the firm's intended marketspace? Choose one answer. a. value proposition b. competitive environment c. competitive advantage d. market strategy Correct Marks for this submission: 1/1. Question 3 Marks: 1 Exostar is an example of a : Choose one answer. a. private industrial network. b. exchange. c. industry consortium. d. e-distributor. Correct Marks for this submission: 1/1. Question 4 Marks: 1
  • 140. Your startup firm has developed Web-based note-taking software that allows participants to create and share virtual notes attached to existing Web pages. You anticipate marketing your online application to Web development and design companies. Which of the following revenue models is the most appropriate for your new company? Choose one answer. a. advertising b. transaction fee c. affiliate d. subscription Correct Marks for this submission: 1/1. Question 5 Marks: 1 ________ and ________ are typically the most easily identifiable aspects of a company's business model. Choose one answer. a. Market strategy; market opportunity b. Value proposition; revenue model c. Value proposition; competitive environment d. Revenue model; market strategy Correct Marks for this submission: 1/1. Question 6 Marks: 1 Interactivity that enables product customization alters industry structure by reducing the threat of substitutes. Answer: True False Correct Marks for this submission: 1/1. Question 8 Marks: 1
  • 141. The terms revenue model and financial model can be used interchangeably. Answer: True False Correct Marks for this submission: 1/1. Question 9 Marks: 1 Interfirm rivalry is one area of the business environment where e-commerce technologies have had an impact on most industries. Answer: True False Correct Marks for this submission: 1/1. Question 11 Marks: 1 Which element of the business model addresses the question of why a customer should buy from the firm? Choose one answer. a. revenue model b. competitive advantage c. market strategy d. value proposition Correct Marks for this submission: 1/1. Question 12 Marks: 1 All of the following may lead to a competitive advantage except: Choose one answer. a. less expensive suppliers. b. better employees. c. fewer products.
  • 142. d. superior products. Correct Marks for this submission: 1/1. Question 13 Marks: 1 In general, the key to becoming a successful content provider is to: Choose one answer. a. own the content being provided. b. own the technology by which content is created, presented, and distributed. c. provide online content for free. d. provide other services as well as online content. Correct Marks for this submission: 1/1. Question 15 Marks: 1 Which of the following is not an example of the bricks-and-clicks e-tailing business model? Choose one answer. a. Walmart.com b. JCPenney.com c. Dell.com d. Staples.com Correct Marks for this submission: 1/1. Question 16 Marks: 1 Your solar-panel manufacturing firm has developed a unique and patented process for creating high-efficiency solar panels at a fraction of current costs. This will enable your firm to adopt a strategy of: Choose one answer.
  • 143. a. cost competition. b. scope. c. scale. d. focus. Correct Marks for this submission: 1/1. Question 17 Marks: 1 A(an) ________ is a set of planned activities designed to result in a profit in marketplace. Answer: business model Correct Marks for this submission: 1/1. Question 18 Marks: 1 A business document that specifically details how you plan on selling your product and find new customers is called a: Choose one answer. a. sales analysis. b. business plan. c. competitive strategy. d. market strategy. Correct Marks for this submission: 1/1. Question 19 Marks: 1 Scale economies are efficiencies that result from flattening the hierarchy of an organization. Answer: True False
  • 144. Correct Marks for this submission: 1/1.
  • 145. CHAP 4 Question 1 Marks: 1 All of the following are important factors in Web site optimization except: Choose one answer. a. selecting keywords and page titles. b. identifying market niches for your services or products. c. buying search engine ads. d. adhering to accessibility guidelines. Correct Marks for this submission: 1/1. Question 3 Marks: 1 Upgrading a server from a single processor to multiple processors is an example of scaling a site horizontally. Answer: True False Correct Marks for this submission: 1/1. Question 4 Marks: 1 Which of the following is not an example of one of the four kinds of e-commerce presence? Choose one answer. a. e-mail list b. customer management system c. Twitter feed d. print ad that refers to a Web site Correct Marks for this submission: 1/1.
  • 146. Question 5 Marks: 1 In a two-tier architecture, a Web server is linked to one middle-tier layer that typically includes a series of application servers, as well as to another back-end layer. Answer: True False Correct Marks for this submission: 0/1. Question 6 Marks: 1 All of the following are basic information requirements for a product database except: Choose one answer. a. product descriptions. b. stock numbers. c. customer ID numbers. d. inventory levels. Correct Marks for this submission: 1/1. Question 7 Marks: 1 What are the two most important management challenges in building a successful e-commerce presence? Choose one answer. a. developing a clear understanding of business objectives and knowing how to choose the right technology to achieve those objectives b. having an accurate understanding of your business environment and an achievable business plan c. building a team with the right skill sets and closely managing the development process d. identifying the key components of your business plan and selecting the right software, hardware, and infrastructure for your site Correct
  • 147. Marks for this submission: 1/1. Question 8 Marks: 1 ________ is a programming language invented by Netscape used to control the objects on an HTML page and handle interactions with the browser. Choose one answer. a. VBScript b. ActiveX c. ColdFusion d. JavaScript Correct Marks for this submission: 1/1. Question 9 Marks: 1 All of the following are methods of improving the processing architecture of a Web site except: Choose one answer. a. separating static content from dynamic content. b. optimizing ASP code. c. optimizing the database schema. d. adding Web servers. Correct Marks for this submission: 1/1. Question 10 Marks: 1 Which of the following would you use to identify orphan files? Choose one answer. a. HTTP b. FTP
  • 148. c. data capture tools d. site management tools Correct Marks for this submission: 1/1. Question 11 Marks: 1 Which of the following is not a main factor in determining overall demand for an e-commerce site? Choose one answer. a. static file sizes b. number of items in inventory c. user profiles d. type of content Correct Marks for this submission: 1/1. Question 12 Marks: 1 All of the following are steps one can take to right-size a Web site's hardware platform and meet demands for service except: Choose one answer. a. scaling hardware vertically. b. scaling hardware horizontally. c. replacing static pages with dynamically generated pages. d. improving processing architecture. Correct Marks for this submission: 1/1. Question 13 Marks: 1 The systems development life cycle methodology is useful when creating an e-commerce Web site. Answer:
  • 149. True False Correct Marks for this submission: 1/1. Question 14 Marks: 1 An e-commerce Web site that processes orders requires, at minimum, a ________ system architecture. Choose one answer. a. single-tier b. two-tier c. three-tier d. multi-tier Correct Marks for this submission: 1/1. Question 15 Marks: 1 Which of the following is used to process certificates and private/public key information? Choose one answer. a. HTTP b. SSL c. FTP d. data capture tools Correct Marks for this submission: 1/1. Question 16 Marks: 1 All of the following are basic functionality provided by Web servers except: Choose one answer. a. site management tools.
  • 150. b. data capture tools. c. security services. d. a shopping cart. Correct Marks for this submission: 1/1. Question 17 Marks: 1 ________ verifies that the business objectives of the system as originally conceived are in fact working. Choose one answer. a. System testing b. Acceptance testing c. Unit testing d. Implementation testing Correct Marks for this submission: 1/1. Question 18 Marks: 1 An online ________ allows shoppers to set aside desired purchases in preparation for checkout, review what they have selected, and edit their selections as necessary. Answer: shopping cart Correct Marks for this submission: 1/1. Question 20 Marks: 1 Which of the following types of servers monitors and controls access to a main Web server and implements firewall protection? Choose one answer. a. proxy server
  • 151. b. list server c. groupware server d. mail server Correct Marks for this submission: 1/1. Question 2 Marks: 1 ________ is a programming language invented by Netscape used to control the objects on an HTML page and handle interactions with the browser. Choose one answer. a. VBScript b. ActiveX c. ColdFusion d. JavaScript Correct Marks for this submission: 1/1. Question 3 Marks: 1 Which of the following types of servers monitors and controls access to a main Web server and implements firewall protection? Choose one answer. a. proxy server b. list server c. groupware server d. mail server Correct Marks for this submission: 1/1. Question 4
  • 152. Marks: 1 Which of the following typically includes a data flow diagram to describe the flow of information for a Web site? Choose one answer. a. physical design b. logical design c. testing plan d. co-location plan Correct Marks for this submission: 1/1. Question 5 Marks: 1 A ________ is a small, prebuilt chunk of code that executes automatically in your HTML Web page to perform a specific task such as providing weather information. Answer: w idget Correct Marks for this submission: 1/1. Question 7 Marks: 1 In order from beginning to end, the major steps in the SDLC, are: Choose one answer. a. systems analysis/planning; systems design; building the system; testing; and implementation. b. systems design; testing; building the system; and implementation. c. systems analysis/planning; systems design; building the system; implementation; and testing. d. systems analysis/planning; implementation; building the system; and testing. Correct Marks for this submission: 1/1. Question 8 Marks: 1
  • 153. The term stateless refers to the fact that: Choose one answer. a. no one government entity controls the Internet. b. the server does not have to maintain an ongoing dedicated interaction with the client computer. c. system performance degrades as more simultaneous users require service. d. Web servers may maintain multiple instances of server software to handle requests. Correct Marks for this submission: 1/1. Question 9 Marks: 1 ________ refers to the arrangement of software, machinery, and tasks in an information system needed to achieve a specific functionality. Answer: System architecture Correct Marks for this submission: 1/1. Question 10 Marks: 1 All of the following are Web site design features that annoy customers except: Choose one answer. a. slow-loading pages. b. pop-under ads. c. splash pages. d. redundant navigation. Correct Marks for this submission: 1/1. Question 11 Marks: 1 Which of the following helps you understand the marketing effectiveness of your e-commerce site?
  • 154. Choose one answer. a. shopping cart b. product database c. site tracking and reporting system d. inventory management system Correct Marks for this submission: 1/1. Question 12 Marks: 1 Storing HTML pages in RAM rather than on a server's hard drive is an inexpensive way to fine-tune the processing architecture of a Web site. Answer: True False Correct Marks for this submission: 1/1. Question 13 Marks: 1 The primary way a Web site is able to personalize the content presented to a visitor is through the use of: Choose one answer. a. privacy policies. b. cookies. c. accessibility rules. d. site management tools. Correct Marks for this submission: 1/1. Question 14 Marks: 1 Dynamic page generation makes market segmentation easier. Answer:
  • 155. True False Correct Marks for this submission: 1/1. Question 15 Marks: 1 Upgrading a server from a single processor to multiple processors is an example of scaling a site horizontally. Answer: True False Correct Marks for this submission: 1/1. Question 16 Marks: 1 The cost of hardware, software, and telecommunications services needed to build a Web site have ________ over the last decade. Choose one answer. a. increased dramatically b. increased moderately c. decreased dramatically d. decreased slightly Correct Marks for this submission: 1/1. Question 18 Marks: 1 Which of the following basic system functionalities is used to display goods on a Web site? Choose one answer. a. product database b. digital catalog c. shopping cart system d. customer database system
  • 156. Correct Marks for this submission: 1/1. Question 19 Marks: 1 All of the following are basic information requirements for a product database except: Choose one answer. a. product descriptions. b. stock numbers. c. customer ID numbers. d. inventory levels. Correct Marks for this submission: 1/1. Question 20 Marks: 1 All of the following are basic functionality provided by e-commerce merchant server software except: Choose one answer. a. a product catalog. b. marketing software. c. a shopping cart. d. credit card processing. Correct Marks for this submission: 0/1.
  • 157. An online ________ allows shoppers to set aside desired purchases in preparation for checkout, review what they have selected, and edit their selections as necessary. Answer: shopping cart Correct Marks for this submission: 1/1. Question 2 Marks: 1 All of the following are basic information requirements for a product database except: Choose one answer. a. inventory levels. b. product descriptions. c. customer ID numbers. d. stock numbers. Correct Marks for this submission: 1/1. Question 3 Marks: 1 ________ is a language that Microsoft invented to compete with JavaScript. Answer: VBScript Correct Marks for this submission: 0/1. Question 4 Marks: 1 ________ are the types of information systems capabilities needed to meet business objectives. Choose one answer. a. System functionalities b. System design specifications
  • 158. c. Information requirements d. Physical design specifications Correct Marks for this submission: 1/1. Question 5 Marks: 1 All of the following are simple steps for optimizing Web page content that can reduce response times except: Choose one answer. a. segmenting computer servers to perform dedicated functions. b. reducing unnecessary HTML comments. c. using more efficient graphics. d. avoiding unnecessary links to other pages on the site. Correct Marks for this submission: 1/1. Question 6 Marks: 1 Which of the following helps you understand the marketing effectiveness of your e-commerce site? Choose one answer. a. shopping cart b. product database c. inventory management system d. site tracking and reporting system Correct Marks for this submission: 1/1. Question 7 Marks: 1 Which of the following is not one of the main factors in Web site optimization? Choose one answer.
  • 159. a. page content b. page generation c. page delivery d. page stickiness Correct Marks for this submission: 1/1. Marks for this submission: 0/1. Question 9 Marks: 1 The annual maintenance cost for a Web site is likely to be as high as its development cost. Answer: True False Correct Marks for this submission: 1/1. Question 11 Marks: 1 ________ is a programming language invented by Netscape used to control the objects on an HTML page and handle interactions with the browser. Choose one answer. a. ActiveX b. ColdFusion c. VBScript d. JavaScript Correct Marks for this submission: 1/1. Question 12 Marks: 1 Most of the time required to maintain an e-commerce site is spent on: Choose one answer.
  • 160. a. responding to emergency situations. b. debugging code. c. changes in reports, data files, and links to backend databases. d. general administration and making changes and enhancements to the system. Correct Marks for this submission: 1/1. Question 13 Marks: 1 A "native" app is one designed to specifically operate using a mobile device's hardware and operating system. Answer: True False Correct Marks for this submission: 1/1. Question 14 Marks: 1 Which of the following typically includes a data flow diagram to describe the flow of information for a Web site? Choose one answer. a. testing plan b. co-location plan c. logical design d. physical design Correct Marks for this submission: 1/1. Question 15 Marks: 1 ________ verifies that the business objectives of the system as originally conceived are in fact working. Choose one answer. a. System testing
  • 161. b. Implementation testing c. Unit testing d. Acceptance testing Correct
  • 162. Question 1 Marks: 1 Mobile Web apps are typically built using HTML5 and Java. Answer: True False Correct Marks for this submission: 1/1. Question 2 Marks: 1 Which system functionality must your Web site have in order to be able to personalize or customize a product for a client? Choose one answer. a. an ad server b. a site tracking and reporting system c. an inventory management system d. customer on-site tracking Correct Marks for this submission: 1/1. Question 3 Marks: 1 Which of the following cannot be used to retrieve objects from a database? Choose one answer. a. CGI b. ASP c. JSP d. HTML Correct Marks for this submission: 1/1. Question 4 Marks: 1
  • 163. Hiring an external vendor to provide services that you cannot perform with in-house personnel is known as ________. Answer: outsourcing Correct Marks for this submission: 0/1. Question 5 Marks: 1 A SWOT analysis describes strengths, weaknesses, opportunities, and ________. Answer: threats Correct Marks for this submission: 1/1. Question 6 Marks: 1 The practice of owning (or leasing) and managing your own Web servers but housing them in a vendor's physical facility is known as ________. Answer: co-location Correct Marks for this submission: 0/1. Question 7 Marks: 1 What are the two most important management challenges in building a successful e-commerce presence? Choose one answer. a. developing a clear understanding of business objectives and knowing how to choose the right technology to achieve those objectives b. having an accurate understanding of your business environment and an achievable business plan c. building a team with the right skill sets and closely managing the development process d. identifying the key components of your business plan and selecting the right software, hardware, and infrastructure for your site Correct
  • 164. Marks for this submission: 1/1. Question 9 Marks: 1 Which of the following is an example of dynamic content? Choose one answer. a. product photographs b. product descriptions c. home page graphic d. blog posts Correct Marks for this submission: 0/1. Question 10 Marks: 1 A Web ________ is a software program that provides the specific business functionality required of a Web site. Answer: application server Correct Marks for this submission: 1/1. Question 12 Marks: 1 Dynamic page generation makes market segmentation easier. Answer: True False Correct Marks for this submission: 1/1. Question 14 Marks: 1 Which of the following helps you understand the marketing effectiveness of your e-commerce site? Choose one answer. a. shopping cart
  • 165. b. product database c. site tracking and reporting system d. inventory management system Correct Marks for this submission: 1/1. Question 15 Marks: 1 Which of the following is the final stage suggested for a six-phase plan to develop an e-commerce presence? Choose one answer. a. mobile plan b. maintenance c. testing plan d. Twitter plan Correct Marks for this submission: 1/1. Question 17 Marks: 1 Accessibility rules help to ensure that low-bandwidth users can access your Web site. Answer: True False Correct Marks for this submission: 0/1. Question 18 Marks: 1 A system design has two main components: Choose one answer. a. a logical design and a physical design. b. a behavioral design and a technological design.
  • 166. c. business objectives and technology requirements. d. front-end systems and back-end systems. Correct Marks for this submission: 1/1. Question 19 Marks: 1 All of the following are basic functionality provided by Web servers except: Choose one answer. a. site management tools. b. data capture tools. c. security services. d. a shopping cart. Correct Marks for this submission: 1/1. Question 20 Marks: 1 All of the following are simple steps for optimizing Web page content that can reduce response times except: Choose one answer. a. reducing unnecessary HTML comments. b. segmenting computer servers to perform dedicated functions. c. using more efficient graphics. d. avoiding unnecessary links to other pages on the site. Correct Marks for this submission: 1/1.
  • 167. Chapter06 Question 1 Marks: 1 Which of the following is not a feature that is driving social e-commerce growth? Choose one answer. a. social sign-on b. network notification c. collaborative shopping d. personal intelligent agents Question 4 Marks: 1 Which of the following features of e-commerce technology has reduced the cost of delivering marketing messages and receiving feedback from users? Choose one answer. a. ubiquity b. richness c. interactivity d. universal standards Question 5 Marks: 1 Approximately ________ in annual offline retail sales is influenced by online browsing. Choose one answer. a. $1.2 trillion b. $102 billion c. $120 million
  • 168. d. $12 million Question 6 Marks: 1 Which of the following activities is the one engaged in by the highest percentage of online users? Choose one answer. a. using e-mail b. using a social networking site c. researching products and services d. reading news Question 7 Marks: 1 Versioning involves selling the same product at different prices. Answer: True False Question 8 Marks: 1 The marketing technique known as ________ involves merchants offering products or services for a very low price for a short period of time. Choose one answer. a. search engine marketing b. flash marketing c. yield management d. bait-and-switch Question 9 Marks: 1 The broadest factor in consumer behavior is: Choose one answer.
  • 169. a. culture. b. gender. c. education. d. psychological background. Question 10 Marks: 1 E-commerce is a major conduit and generator of offline commerce. Answer: True False Question 11 Marks: 1 The Nike iD program is an example of which of the following marketing techniques? Choose one answer. a. customer co-production b. transactive content c. price discrimination d. permission marketing Question 12 Marks: 1 Which of the following age groups has the highest percentage of Internet access? Choose one answer. a. 18-29 b. 30-49 c. 50-64 d. 65+ Question 13
  • 170. Marks: 1 Which of the following is not a social marketing technique? Choose one answer. a. Pinterest marketing b. app marketing c. game marketing d. video marketing Question 14 Marks: 1 The marginal cost of the production of information goods distributed over the Internet is zero or near zero. Answer: True False Question 15 Marks: 1 A consumer's decision to purchase from a particular store because of the wide variety and number of products available is called the ________ effect. Answer: library Question 16 Marks: 1 ________ refers to the process of using the power of an existing brand to acquire new customers for a new product or service. Answer: Brand leveraging Question 18 Marks: 1 Netflix entered the market with a Choose one answer. a. brand extender b. fast follower ________ strategy.
  • 171. c. first mover d. alliance Question 19 Marks: 1 Which of the following statements about the Internet's impact on marketing is not true? Choose one answer. a. The Internet has broadened the scope of marketing communications. b. The Internet has decreased the impact of brands. c. The Internet has increased the richness of marketing communications. d. The Internet has expanded the information intensity of the marketplace. Question 20 Marks: 1 Which of the following types of online market segmentation and targeting involves using consumers' explicitly expressed interest to segment and target? Choose one answer. a. psychographic b. technical c. search d. contextual
  • 172. Question Netflix has used what tactics to build its brand: What activities is the one engaged in by the most online users? On a typical day, approximately ________ percent of adult users in the United States logs on to the Internet. Which age groups has the highest percentage of Internet access in 2011? Which of the following age groups had the lowest percentage of Internet access in 2011? In 2011, what was the Internet penetration rate for households that had household income of over $75,000? What about the broadband audience is compared to the dial up audience? A person's profession or occupation is part of their: What are examples of an indirect reference group? A(n) ________ profile describes an individual's set of needs, drives, motivations, perceptions and learned behaviors. What is the top reason that consumers shop on the Web rather than through other channels? According to a study by the Wharton Forum on Electronic Commerce, what is the most important factor in predicting online buying behavior? "Shoppers" constitute approximately ________ percent of the online Internet audience. Small ticket item sales outnumbered large ticket item sales during the early days of e-commerce for what reasons: What is the top concern of Internet users about purchasing online? Answer eliminating late fees, adding customer value through the library effect, offering a recommender system Using e-mail. 77% 18 – 29 65+ 96% It is clearly different, It is more educated and wealthier, It is more middle-aged direct reference group. social class, life-cycle stage, lifestyle group psychological 24 hr shopping convience Looking for product information online 88% purchase price was low, items were physically small, selection was broad, margins were high ―trust factor‖ and/or want to see and touch before buying
  • 173. What are examples of a commodity? oil, corn, gold In discussing a product's feature set, the term actual product refers to: What are parts of an augmented product's feature set? According to Interbrand's 2012 World's Most Valuable Brands survey, the most valuable brand in the world is: What types of online market segmentation and targeting involves using age, ethnicity, religion, etc.? What types of online market segmentation and targeting involves using consumers' explicitly expressed interest to segment and target? What types of online market segmentation and targeting involves tracking the actions users take on a Web site? the set of characteristics designed to deliver the product's core benefits. installation, warranty, after-sale support, Credit, Delivery Terms What are some facts about brands? Coca-Cola ($77.8B) with Apple a close 2nd ($76.6B) demographic search behavioral Brands lower customer acquisition costs and increase customer retention, Brands create micro-monopolies, Brands reduce consumer risk and uncertainty in a crowded marketplace. The set of plans for differentiating a product and communicating the brand strategy differences effectively to the marketplace is called: price dispersion is less for commodities than for differentiated In regards to Price Dispersion there can be large differences in price products, online prices have been increasing relative to offline sensitivity for the same products depending on the seller and: prices broadened the scope of marketing communications, increased What are the Internet's impact on marketing: the richness of marketing communications, expanded the information density of the marketplace What features of e-commerce technology has reduced the cost of delivering marketing messages and receiving feedback from users? What features of e-commerce technology allows fine-grained, highly detailed information on consumers' real-time behavior to be gathered and analyzed? universal standards information density
  • 174. The richness made possible by e-commerce technologies does what: It allows video, audio, and text to be integrated into a single marketing message and consuming experience. For a Web site that has 1 million visitors a month, and where on average, a visitor makes 15 page requests per visit, there will be ________ entries in the transaction log each month. 15 million The data typically stored in cookies includes a unique ID, e-mail address and path, and security setting other facts are Which of the following examples illustrates the "Long Tail" phenomenon? ________ is an industry-standard database query and manipulation language. The idea that people classify themselves into "affinity groups" is central to which of the following data mining techniques? A ________ is a repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to know the customer. REI used what market entry strategies? ________ is/are a key component of permission marketing. What are attributes of personalized marketing: The Nike iD program is an example of which of the following marketing techniques? LivePerson is an example of a(n): The incremental cost of building the next unit of a good is called the: What sre some facts about a free pricing strategy: can be used with Web bugs to create cross-site profiles of users and, cookies make shopping carts possible by allowing a site to keep track of a user's actions. 50% of Netflix's 100,000 titles are rented at least once a day by someone. Structured query language (SQL) collaborative filtering Customer Relationship Management (CRM) system brand extender E-mail targeting of individuals, suitable for highly complex products, unique price customer co-production real-time customer service chat system marginal cost Free products and services can help build market awareness, It is difficult to convert free customers into paying customers, Free
  • 175. What are some fixed price strategies: What are some Dynamic Pricing strategies: Creating multiple variations of information goods and selling these to different market segments at different prices is called ________. products and services can knock out potential and actual competitors. bundling, versioning, & free pricing auctions, yield management, flash marketing versioning E-commerce 2013, 9e (Laudon/Traver) Chapter 2 E-commerce Business Models and Concepts 1) A value proposition defines how a company's product or service fulfills the needs of a customer. Answer: TRUE Diff: 1 Page Ref: 66 AACSB: Reflective Thinking 2) The terms revenue model and financial model can be used interchangeably. Answer: TRUE Diff: 2 Page Ref: 66 AACSB: Reflective Thinking 3) In order to be considered successful, a firm must produce returns greater than alternative investments. Answer: TRUE Diff: 1 Page Ref: 67 AACSB: Reflective Thinking 4) An asymmetry exists whenever one participant in a market has more resources than other participants. Answer: TRUE Diff: 2 Page Ref: 72 AACSB: Analytic Skills 5) Most first movers have the complementary resources needed to sustain their advantage. Answer: FALSE
  • 176. Diff: 2 Page Ref: 73 AACSB: Reflective Thinking 6) All firms need an organization to efficiently implement their business plans and strategies. Answer: TRUE Diff: 1 Page Ref: 74 AACSB: Reflective Thinking 7) Visitors to specialized niche vortals tend to spend less money than the average visitor to a horizontal portal. Answer: FALSE Diff: 3 Page Ref: 85 AACSB: Reflective Thinking 8) Barriers to entry into the e-tail marketplace are high. Answer: FALSE Diff: 2 Page Ref: 78 AACSB: Reflective Thinking 9) Differentiation refers to situations in which there is little difference between products and the only basis of choosing a product is price. Answer: FALSE Diff: 1 Page Ref: 99 AACSB: Reflective Thinking 10) Scale economies are efficiencies that result from flattening the hierarchy of an organization. Answer: FALSE Diff: 2 Page Ref: 89 AACSB: Reflective Thinking 11) Real markets are perfect markets. Answer: FALSE Diff: 1 Page Ref: 73 AACSB: Reflective Thinking
  • 177. 12) The Internet's universal standards decrease the cost of industry and firm operations. Answer: TRUE Diff: 3 Page Ref: 96-97 AACSB: Analytic Skills 13) Interactivity that enables product customization alters industry structure by reducing the threat of substitutes. Answer: TRUE Diff: 3 Page Ref: 93 AACSB: Analytic Skills 14) Interfirm rivalry is one area of the business environment where e-commerce technologies have had an impact on most industries. Answer: TRUE Diff: 3 Page Ref: 95 AACSB: Reflective Thinking 15) Social technologies change industry structure by shifting programming and editorial decisions to consumers. Answer: TRUE Diff: 1 Page Ref: 93 AACSB: Reflective Thinking 16) ________ and ________ are typically the most easily identifiable aspects of a company's business model. A) Market strategy; market opportunity B) Value proposition; revenue model C) Value proposition; competitive environment D) Revenue model; market strategy Answer: B Diff: 2 Page Ref: 65 AACSB: Analytic Skills 17) All of the following are key elements of a business model except: A) competitive environment. B) organizational development. C) information technology strategy.
  • 178. D) market strategy. Answer: C Diff: 2 Page Ref: 66 AACSB: Analytic Skills 18) Which element of the business model addresses the question of why a customer should buy from the firm? A) revenue model B) competitive advantage C) market strategy D) value proposition Answer: D Diff: 2 Page Ref: 66 AACSB: Reflective Thinking 19) Which element of the business model examines who else occupies the firm's intended marketspace? A) value proposition B) competitive environment C) competitive advantage D) market strategy Answer: B Diff: 2 Page Ref: 72 AACSB: Reflective Thinking 20) Which of the following are Amazon's primary value propositions? A) personalization and customization B) selection and convenience C) reduction of price discovery cost D) management of product delivery Answer: B Diff: 2 Page Ref: 72 AACSB: Analytic Skills 21) Your solar-panel manufacturing firm has developed a unique and patented process for creating high-efficiency solar panels at a fraction of current costs. This will enable your firm to adopt a strategy of:
  • 179. A) cost competition. B) scope. C) scale. D) focus. Answer: A Diff: 2 Page Ref: 100 AACSB: Analytic Skills 22) A firm's ________ describes how a firm will produce a superior return on invested capital. A) value proposition B) revenue model C) market strategy D) competitive advantage Answer: B Diff: 2 Page Ref: 66 AACSB: Reflective Thinking 23) Which of the following is an example of the subscription revenue model? A) Ancestry.com B) eBay C) Amazon D) Twitter Answer: A Diff: 2 Page Ref: 67 AACSB: Analytic Skills 24) Stickiness is an important attribute for which revenue model? A) advertising revenue model B) subscription revenue model C) transaction fee revenue model D) sales revenue model Answer: A Diff: 2 Page Ref: 67 AACSB: Reflective Thinking
  • 180. 25) Which of the following companies utilizes a transaction fee revenue model? A) WSJ.com B) E*Trade C) Twitter D) Sears.com Answer: B Diff: 2 Page Ref: 67 AACSB: Analytic Skills 26) Which of the following is an example of the affiliate revenue model? A) Yahoo B) eBay C) Gap.com D) MyPoints Answer: D Diff: 2 Page Ref: 67 AACSB: Analytic Skills 27) Assume you are analyzing the market opportunity of a distance learning company, Learnmore.com, that creates education courses delivered over the Internet for the Fortune 1000 corporate market. Assume that the overall size of the distance learning market is $25 billion. The overall market can be broken down into three major market segments: Corporate, College, and Elementary/High School, each of which accounts for a third of the market. Within the Corporate market, there are two market niches: Fortune 1000, which accounts for 60% of the market, and all others, which together account for 40% of the market. What is Learnmore.com's realist ic market opportunity, approximately? A) $5 billion B) $6.6 billion C) $165 billion D) $25 billion Answer: A Diff: 3 Page Ref: 68 AACSB: Analytic Skills 28) Which of the following factors is not a significant influence on a company's competitive environment?
  • 181. A) how many competitors are active B) what the market share of each competitor is C) the availability of supportive organizational structures D) how competitors price their products Answer: C Diff: 2 Page Ref: 72 AACSB: Reflective Thinking 29) Which of the following would be considered an indirect competitor of American Airlines? A) JetBlue B) Zipcar C) Orbitz D) British Airways Answer: B Diff: 2 Page Ref: 72 AACSB: Analytic Skills 30) The existence of a large number of competitors in any one market segment may indicate: A) an untapped market niche. B) the market is saturated. C) no one firm has differentiated itself within that market. D) a market that has already been tried without success. Answer: B Diff: 3 Page Ref: 72 AACSB: Analytic Skills 31) All of the following can be considered a direct or indirect competitor of Amazon.com except: A) eBay. B) Apple's iTunes Store. C) Barnesandnoble.com. D) Starbucks. Answer: D Diff: 2 Page Ref: 72
  • 182. AACSB: Analytic Skills 32) A perfect market is one in which: A) there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production. B) one firm develops an advantage based on a factor of production that other firms cannot purchase. C) one participant in the market has more resources than the others. D) competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage. Answer: A Diff: 2 Page Ref: 73 AACSB: Analytic Skills 33) The business model of e-distributors is quite similar to that of: A) e-tailers. B) transaction brokers. C) exchanges. D) service providers. Answer: A Diff: 2 Page Ref: 78, 88 AACSB: Analytic Skills 34) All of the following use an advertising revenue model except: A) Facebook. B) Yahoo. C) Google. D) Amazon. Answer: D Diff: 2 Page Ref: 79 AACSB: Analytic Skills 35) All of the following statements about Groupon are true except: A) Groupon has yet to show a profit. B) Groupon combines two major trends in e-commerce: localization and social networks. C) It is unclear if Groupon's business model is sustainable.
  • 183. D) Groupon believes it must scale up fast in a winner-take-all market. Answer: A Diff: 2 Page Ref: 76-77 AACSB: Reflective Thinking 36) Which of the following is not considered a portal? A) Yahoo B) MSN C) WSJ.com D) AOL Answer: C Diff: 1 Page Ref: 79 AACSB: Analytic Skills 37) Horizontal or general portals primarily generate revenue in all of the following ways except: A) charging advertisers for ad placement. B) collecting transaction fees. C) sales of goods. D) charging subscription fees. Answer: C Diff: 2 Page Ref: 79 AACSB: Reflective Thinking 38) A business document that specifically details how you plan on selling your product and find new customers is called a: A) sales analysis. B) business plan. C) competitive strategy. D) market strategy. Answer: D Diff: 1 Page Ref: 74 AACSB: Reflective Thinking 39) Which of the following is not a community provider? A) LinkedIn
  • 184. B) Facebook C) Priceline D) Pinterest Answer: C Diff: 1 Page Ref: 79 AACSB: Reflective Thinking 40) Which of the following is not a variation of the e-tailer business model? A) bricks-and-clicks B) virtual merchant C) market creator D) manufacturer-direct Answer: C Diff: 2 Page Ref: 78 AACSB: Reflective Thinking 41) An example of a company using the content provider model is: A) Priceline. B) Rhapsody.com. C) Dell. D) eBay. Answer: B Diff: 2 Page Ref: 79 AACSB: Reflective Thinking 42) Which of the following is not an example of the bricks-and-clicks e-tailing business model? A) Walmart.com B) JCPenney.com C) Dell.com D) Staples.com Answer: C Diff: 1 Page Ref: 79 AACSB: Reflective Thinking
  • 185. 43) The overall retail market in the United States in 2012 was estimated at about: A) $37 trillion. B) $3.7 trillion. C) $370 billion. D) $37 billion. Answer: B Diff: 2 Page Ref: 78 AACSB: Reflective Thinking 44) In general, the key to becoming a successful content provider is to: A) own the content being provided. B) own the technology by which content is created, presented, and distributed. C) provide online content for free. D) provide other services as well as online content. Answer: A Diff: 2 Page Ref: 81 AACSB: Reflective Thinking 45) Expedia is an example of a: A) community provider. B) transaction broker. C) market creator. D) service provider. Answer: B Diff: 2 Page Ref: 79 AACSB: Reflective Thinking 46) All of the following may lead to a competitive advantage except: A) less expensive suppliers. B) better employees. C) fewer products. D) superior products. Answer: C Diff: 2 Page Ref: 72
  • 186. AACSB: Reflective Thinking 47) The basic value proposition of community providers is: A) they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests. B) they offer consumers valuable, convenient, time-saving, and low cost alternatives to traditional service providers. C) they create a digital electronic environment for buyers and sellers to meet, agree on a price and transact. D) they increase customers' productivity by helping them get things done faster and more cheaply. Answer: A Diff: 2 Page Ref: 80 AACSB: Reflective Thinking 48) All of the following are examples of Business-to-Business (B2B) business models except: A) e-distributors. B) e-procurement. C) private industrial networks. D) e-tailers. Answer: D Diff: 1 Page Ref: 88-89 49) What is the primary revenue model for an e-distributor? A) sales B) transaction fee C) advertising D) subscription Answer: A Diff: 2 Page Ref: 89 AACSB: Reflective Thinking 50) Grainger.com is an example of which of the following business models? A) B2B service provider B) exchange C) e-distributor D) industry consortia Answer: C Diff: 2 Page Ref: 89
  • 187. AACSB: Analytic Skills 51) ________ create and sell access to digital electronic markets. A) E-distributors B) Portals C) E-procurement firms D) Market creators Answer: C Diff: 2 Page Ref: 88 AACSB: Reflective Thinking 52) One of the competitive advantages of a B2B service provider is that it can spread the cost of an expensive software system over many users, achieving efficiencies referred to as: A) application efficiencies. B) network efficiencies. C) scale economies. D) network externalities. Answer: C Diff: 2 Page Ref: 89 AACSB: Reflective Thinking 53) Over the past decade: A) the number of exchanges greatly increased. B) the number of exchanges diminished sharply. C) the number of exchanges stayed about the same. D) exchanges have totally disappeared. Answer: B Diff: 2 Page Ref: 90 AACSB: Reflective Thinking 54) Exostar is an example of a(n): A) private industrial network. B) exchange. C) industry consortium.
  • 188. D) e-distributor. Answer: C Diff: 1 Page Ref: 90 AACSB: Reflective Thinking 55) Which of the following is an unfair competitive advantage? A) brand name B) access to global markets C) lower product prices D) superior technology Answer: A Diff: 2 Page Ref: 73 AACSB: Analytic Skills 56) The element of a business model that is responsible for making the model work is: A) the management team. B) the organizational structure. C) the firm's key competitive advantage. D) the market strategy. Answer: A Diff: 2 Page Ref: 74 AACSB: Reflective Thinking 57) eBay uses all of the following business models except: A) B2C market creator. B) C2C market creator. C) content provider. D) e-commerce infrastructure provider. Answer: C Diff: 2 Page Ref: 75, 78 AACSB: Analytic Skills 58) Your startup firm has developed Web-based note-taking software that allows participants to create and share virtual notes attached to existing Web pages. You anticipate marketing your online application to Web development and design companies. Which of the
  • 189. following revenue models is the most appropriate for your new company? A) advertising B) transaction fee C) affiliate D) subscription Answer: D Diff: 2 Page Ref: 67 AACSB: Analytic Skills 59) Which of the following community providers is focused on financial advice, news, and opinions? A) The Well (Well.com) B) The Motley Fool (Fool.com) C) RightStart D) iVillage Answer: B Diff: 2 Page Ref: 80 AACSB: Reflective Thinking 60) Which of the following features of e-commerce technology changes industry structure by lowering barriers to entry but greatly expands the market at the same time? A) global reach B) richness C) interactivity D) personalization Answer: A Diff: 2 Page Ref: 93 AACSB: Use of IT 61) All of the following are business models employed by the music industry except: A) subscription. B) peer-to-peer streaming. C) download-and-own. D) cloud streaming.
  • 190. Answer: B Diff: 2 Page Ref: 82 AACSB: Use of IT 62) Which of the following is not a primary activity in a firm value chain? A) inbound logistics B) finance/accounting C) operations D) sales and marketing Answer: B Diff: 2 Page Ref: 97 AACSB: Reflective Thinking 63) A ________ coordinates a firm's suppliers, distributors, and delivery firms with its own production needs using an Internet-based supply chain management system. A) value chain B) value system C) value web D) business strategy Answer: C Diff: 2 Page Ref: 98 AACSB: Use of IT 64) If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would: A) enable individual customization of the product by consumers. B) implement a strategy of commoditization. C) adopt a strategy of cost competition. D) develop a scope strategy to compete within a narrower market segment. Answer: A Diff: 2 Page Ref: 100 AACSB: Use of IT 65) A strategy designed to compete within a narrow market or product segment is called a ________ strategy. A) scope
  • 191. B) differentiation C) cost D) focus Answer: D Diff: 2 Page Ref: 101 AACSB: Reflective Thinking 66) A(n) ________ is a set of planned activities designed to result in a profit in marketplace. Answer: business model Diff: 2 Page Ref: 65 AACSB: Reflective Thinking 67) In the ________ revenue model, a Web site that offers users content or services charges a fee for access to some or all of its offerings. Answer: subscription Diff: 2 Page Ref: 67 AACSB: Reflective Thinking 68) A firm's ________ refers to the other companies operating in the same marketspace selling similar products. Answer: competitive environment Diff: 2 Page Ref: 72 AACSB: Reflective Thinking 69) A(n) ________ is a company that sells products and services that are very similar and into the same market segment. Answer: direct competitor Diff: 2 Page Ref: 72 AACSB: Reflective Thinking 70) The use by a company of its competitive advantage to achieve more advantage in surrounding markets is known as ________. Answer: leverage Diff: 2 Page Ref: 73 AACSB: Reflective Thinking 71) Carbonite is a company that uses a(n) ________ business model.
  • 192. Answer: service provider Diff: 2 Page Ref: 79 AACSB: Reflective Thinking 72) The financial services, travel services, and job placement services industries use the ________ business model. Answer: transaction broker Diff: 1 Page Ref: 85 AACSB: Reflective Thinking 73) In the ________ business model, a Web-based business builds a digital environment in which buyers and sellers can meet, display products, search for products, and establish prices. Answer: market creator Diff: 2 Page Ref: 86 AACSB: Reflective Thinking 74) A(n) ________ is a company that collects information from a wide variety of sources and then adds value to that information. Answer: Web aggregator Diff: 1 Page Ref: 79 AACSB: Reflective Thinking 75) A(n) ________ marketplace supplies products and services of interest to particular industries. Answer: vertical Diff: 2 Page Ref: 90 AACSB: Reflective Thinking 76) ________ is a social network based on 140-character messages. Answer: Twitter Diff: 2 Page Ref: 61 AACSB: Reflective Thinking
  • 193. 77) An industry ________ is an effort to understand and describe the nature of competition in an industry, the nature of substitute products, the barriers to entry, and the relative strength of consumers and suppliers. Answer: structural analysis Diff: 2 Page Ref: 94 AACSB: Reflective Thinking 78) A(n) ________ is the set of activities performed in an industry or in a firm that transforms raw inputs into final products and services. Answer: value chain Diff: 2 Page Ref: 96 AACSB: Reflective Thinking 79) ________ occurs when there are no differences among products or services and the only basis for choosing is a particular product or service is price. Answer: Commoditization Diff: 2 Page Ref: 99 AACSB: Reflective Thinking 80) A(n) ________ strategy is a strategy to compete in all markets around the globe rather than merely in local, regional, or national markets. Answer: scope Diff: 2 Page Ref: 101 AACSB: Reflective Thinking 81) Define and describe the transaction broker business model and discuss the eight components of the business model for this type of B2C firm. Answer: The transaction broker business model is most commonly found in the financial services, travel services, and job placement services industries. The eight elements of a business model are value proposition, revenue model, market opportunity, competitive environment, competitive advantage, market strategy, organizational development, and management team. The primary value proposition for a transaction broker is the saving of time and money. These sites also often provide timely information and opinion. They offer the consumer the opportunity to increase their individual productivity by helping them to get things done faster and more cheaply.
  • 194. The revenue model for these firms is based upon receiving commissions or transaction fees when a successful business deal is completed. Online stock trading firms receive either a flat fee for each transaction or a fee based on a sliding scale according to the size of the transaction. Job sites charge the employers a listing fee up front, rather than when the position is filled as traditional "head hunter" firms have done. The market opportunity for transaction brokers in financial services appears to be large due to the rising interest in receiving financial planning advice and conducting stock transactions online. Demand is also increasing for job placement help that is national and even global in nature and for purchasing travel services quickly and easily online. However, there is some market resistance due to consumer's fear of loss of privacy and loss of control over their personal financial information. The competitive environment for financial services has become fierce as new entrants, including the traditional brokerage firms that have now entered the online marketspace, have flooded the market. In order to compete effectively, online traders must convince consumers that they have superior security and privacy procedures. The number of job placement sites has also multiplied, and the largest sites such as Monster.com, which have the greatest number of job listings, are the most likely to survive. Consolidat ion in all of the transaction broker markets is presently occurring, making the market opportunity and competitive environment for new firms looking to enter the marketspace bleak. The market strategies for such firms typically include expensive marketing campaigns to convince consumers to switch from their current provider or to choose their company over other more well-established competitors, also a daunting task in the present economic environment. Achieving a competitive advantage is crucial to firms trying to enter these industries. Possible strategies are to lure well-known names in the industry away from their present positions to head a new endeavor, giving the firm instant credibility in the market. Experienced, knowledgeable and well-known employees may be able to give a new firm a competitive edge. New companies may have to start out recruiting a specialized highly skilled staff, with an organizational development plan that is far more advanced than the typical startup. A strong management team will attract investors and convince investors and consumers alike that a new firm has plenty of market-specific knowledge and the experience necessary to implement the business plan. Diff: 3 Page Ref: 65-75, 85 AACSB: Analytic Skills 82) Define organizational development and describe its importance in relation to the implementation of a business plan and strategy. Answer: Organizational development is a plan that describes how the company will organize the work that needs to be accomplished
  • 195. in the business plan or strategy. Typically, work is divided into functional departments, such as production, shipping, marketing, customer support, and finance. Jobs within these functional areas are defined, and then recruitment begins for specific job titles and responsibilities. Typically, in the beginning, generalists who can perform multiple tasks are hired. As the company grows, recruiting becomes more specialized. For instance, at the outset, a business may have one marketing manager. But after two or three years of steady growth, that one marketing position may be broken down into seven separate jobs done by seven individuals. All firms—new ones in particular—need an organization to efficiently implement their business plans and strategies. Many ecommerce firms and many traditional firms that attempt an e-commerce strategy have failed because they lacked the organizational structures and supportive cultural values required to support new forms of commerce. Diff: 2 Page Ref: 74 AACSB: Analytic Skills 83) Define the term industry structure and discuss the ways the Internet and e-commerce have changed the five forces that characterize industry structure. Answer: The term industry structure refers to the general business environment in an industry. It is defined by the nature of the players in the industry and their relative bargaining power. It is characterized by five forces: the rivalry among existing competitors, the threat of substitute products, the barriers to entry into the industry, the bargaining power of the suppliers, and the bargaining power of the buyers. The competitive consequences of technological developments often change the market share positions among the players. New forms of distribution created by new market entrants can completely change the competitive forces in an industry. The Internet, the Web, and e-commerce have affected the structure of different industries in varying, yet often profound ways. In fact, the explosive emergence of the Internet as a major worldwide distribution channel for goods, services, and even for employment is powerfully changing economies, markets, and industry structures. The universal standards of the Internet have lowered the barrier to entry for many industries, bringing a flood of new entrants. Interfirm rivalry is one area where e-commerce technology has had an impact on most industries. The major consequence is that every business must become globally competitive, even if it manufactures or sells only within a local or regional market. The Internet has changed the scope of competition from local and regional to national and global, pitting firms that had previously been in separate geographic markets against one another. Consumers of all types of goods have access to global price information, putting pressure on many producers and suppliers in some industries to decrease their prices. On the other hand, it has also presented new opportunities for firms to differentiate their products or services from their competitors, driving prices and profits for those firms up.
  • 196. The overall positive or negative effect of e-commerce technologies on firm profitability depends on the industry involved. In some industries, particularly those involved with information distribution such as newspapers, magazines, software distributors, music and publishing companies, e-commerce has completely changed the ways of doing business. New online challengers have intensified competition and increased the availability of substitute products. In general, the bargaining power of consumers has grown relative to the providers, driving prices down and challenging the overall profitability of these industries. In other industries, particularly manufacturing, e-commerce has not greatly changed relationships with consumers but relationships with suppliers have been impacted by the aggregation of markets such those created by B2B hubs. Increasingly, manufacturing firms in entire industries have banded together to aggregate purchases, create industrial digital exchanges or marketplaces, and outsource industrial processes in order to obtain better prices from suppliers. Diff: 3 Page Ref: 93-96 84) Briefly explain three B2B Net marketplace business models besides the exchange business model. Answer: Three other B2B Net marketplace business models are e-distributor, e-procurement, and industry consortium. E-distributors supply products and services directly to individual businesses. The e-distributor operates much like its B2C counterparts, placing its catalog online and giving purchasing agents access to its product lines in a searchable format. An e-distributor is simply one company seeking to serve many customers. For an e-distributor critical mass involves having enough products and services to attract a large enough customer base. B2B e-procurement firms create and sell access to digital electronic marketplaces. One type of B2B e-procurement firm is a B2B service provider, which sells business services to other firms. Some common B2B business services are accounting, financial services, human resources management, and printing. Industry consortia are typically industry-owned vertical marketplaces that serve a specific industry. Industry consortia are usually funded by industry members, who pay for the creation of the site and contribute the initial operating capital. Then they typically charge firms that participate in the consortia transaction and subscription fees. Diff: 2 Page Ref: 88-90 AACSB: Reflective Thinking
  • 197. 85) Discuss the implications of each of the unique features of e-commerce technology for the overall business environment. Answer: The ubiquity of e-commerce creates new marketing channels and expands the size of the overall market. It also creates new efficiencies in industry operations and lowers the costs to firms of sales operations. By reducing the cost of information, the Internet provides each of the key players in the value chain for an industry with new opportunities to maximize their positions by lowering costs and/or raising prices. Manufacturers can develop direct relationships with their customers through their own Web sites and bypass the costs of distributors and retailers. Distributors can develop highly efficient inventory management systems to reduce their costs, and retailers can develop efficient customer relations management systems to strengthen their service to customers. Customers can use the Web to search for the best quality, prices and delivery methods thus reducing their transaction costs and the prices they pay for goods. The global reach of e-commerce lowers barriers to entry and expands the market at the same time. This lowers the costs of both industry and firm operations through production and sales efficiencies. When the operational efficiency of an entire industry increases, it helps the industry to compete with alternative industries and lowers prices and adds value to consumers. The universal standards of e-commerce lower barriers to entry while at the same time intensifying competition within an industry. Universal standards also reduce the costs for communications and computing enabling firms to engage in broad-scope strategies. Communications efficiencies can also enable firms to outsource some primary and secondary activities to specialized, more efficient providers without affecting the consumer. The Internet can also be used to precisely coordinate the steps in the value chain for a firm, thus reducing overall costs. The richness of e-commerce reduces the strength of powerful distribution channels. It also allows firms to reduce their reliance on traditional sales forces and can enhance post-sales support services. The interactivity of e-commerce reduces the threat of substitutes through the enhanced use of customization. It also reduces industry and firm costs by enabling differentiation strategies. In their totality, the differentiation features of a product constitute the customer value proposition for a firm. The ability of the Web to personalize the shopping experience and to customize a product to the particular demands of each consumer are the most significant ways in which the interactivity of the Web can be used to differentiate products. The use of Internet technology to personalize and customize a customer's experience or product reduces threats of substitutions, raises barriers to entry, reduces value chain costs by lessening reliance on sales forces, and enables personalized marketing strategies. The information density on the Web weakens powerful sales channels thus shifting bargaining power to the consumer, while also
  • 198. lowering the costs of obtaining, processing, and distributing information about suppliers and consumers. The use of social technologies shifts programming and editorial decisions to consumers; creates substitute entertainment products; and energizes a large group of new suppliers. E-commerce firms can also leverage the ubiquitous nature, the global reach, the interactivity, and the information density of the Web to differentiate products and services. Firms can make it possible for consumers to purchase a product from home, work, or on the road, anywhere in the world. They can create Web-based experiences with unique interactive content and store and process product information, warranties, and helpful hints to differentiate their product and their firm from the competition. Diff: 3 Page Ref: 92-93 AACSB: Analytic Skills 86) Define value chain and explain the difference between a firm value chain, an industry value chain, and a value web. Answer: A value chain is the set of activities performed that transforms raw inputs into final products and services. A firm value chain is the set of activities a firm engages in to create final products from raw inputs. The key steps and support activities in a firm's value chain are inbound logistics, operations, outbound logistics, sales and marketing, and after sales service. With an industry value chain, the chain broadens to include six generic players: suppliers, manufacturers, transporters, distributors, retailers, and customers. A value web coordinates a firm's suppliers with its own production needs using an Internet-based supply chain management system. It is a networked transbusiness system that coordinates the value chains of several firms. Diff: 2 Page Ref: 96-99 AACSB: Analytic Skills Chapter 2 E-Marketplaces: Mechanisms, Tools, and Impacts of E-Commerce 2.1 True/False 1) EC enablers include electronic markets, e-stores, and e-catalogs. Answer: TRUE 2) Storefronts, malls, and portals are EC mechanisms that support the entertainment EC activity. Answer: FALSE 3) The emergence of electronic marketplaces has resulted in lower information search costs for buyers and lower transaction and distribution costs for sellers. Answer: TRUE
  • 199. 4) Although both marketplaces and marketspaces can sell physical products, the marketspace can also sell digital products. Answer: TRUE 5) An intermediary is a third party that operates between sellers and buyers. Answer: TRUE 6) Travelers using airline Web sites to book their flights directly without the use of travel agents is resulting in the reintermediation of travel agents. Answer: FALSE 7) Electronic storefronts, Internet malls, and exchanges are major B2B e-marketplaces. Answer: FALSE 8) Brokers and infomediaries are two types of online intermediaries. Answer: TRUE 9) Search engines not only "search and match," but also have capabilities that can be used to perform routine tasks that require intelligence. Answer: FALSE 10) An electronic shopping cart is an order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop. Answer: TRUE 11) Shopping carts for B2B are fairly simple, but a shopping cart for B2C may be more complex. Answer: FALSE 12) An auction is a market mechanism that uses a competitive process by which a seller solicits consecutive bids from buyers or a buyer solicits bids from sellers. Answer: TRUE 13) Auctions are based on dynamic pricing. Answer: TRUE 14) Reverse auctions are bidding or tendering systems in which the buyer places an item for bid on a request for quote system; then potential suppliers bid on the job, with the price reducing sequentially, and the lowest bid wins. Answer: TRUE 15) In the one buyer, many potential sellers dynamic pricing configuration, the sellers use a forward auction. Answer: FALSE
  • 200. 2.2 Multiple Choice 2 1) Electronic markets are the EC mechanism supporting the A) communicate, collaborate and learn EC activities. B) presence and delivery, find information, compare, and analyze EC activities. C) improve performance EC activities. D) entertainment EC activities. Answer: B 2) Each of the following is a main function of traditional and electronic markets except A) matching buyers and sellers. B) facilitating the exchange of information, goods, services, and payments associated with market transactions. C) financing the transformation of raw materials into finished products. D) providing an institutional infrastructure, such as a legal and regulatory framework that enables the efficient functioning of the market. Answer: C 3) Digital products have different cost curves than those of regular products because in digitization A) most costs are variable, and fixed costs are low. B) most costs are fixed, and variable costs are very low. C) most costs are fixed, but variable costs are high. D) all costs are variable. Answer: B
  • 201. 4) The portion of an e-seller's business through which customers interact, including the seller's portal, electronic catalogs, shopping cart, and payment gateway is the A) front end of the business. B) back end of the business. C) infrastructure for the business. D) intermediary in the business. Answer: A 5) The elimination of various types of agents that mediate between buyers and sellers, such as travel and insurance agents, is referred to as A) automation. B) disintermediation. C) remediation. D) e-distribution. Answer: B 6) Online markets that are owned and operated by a single company and that are either sell-side or buy-side are known as A) private e-marketplaces. B) commercial portals. C) e-malls. D) B2B marketplaces. Answer: A 7) Public e-marketspaces are A) usually B2B markets. B) often owned by a third party or consortium. C) usually regulated by the government. D) all of the above. Answer: D
  • 202. 8) Functionalities provided by EC merchant server software include A) electronic catalogs. B) search engines. C) shopping carts. D) all of the above. Answer: D 9) The presentation of product information in an electronic form and also serving as the backbone of most e-selling sites describes A) e-distributor. B) Kindle. C) e-magazine. D) electronic catalog. Answer: D 10) Search tools that search the contents of a user's or organization's computer files, rather than searching the Internet are A) desktop search tools. B) enterprise search tools. C) search engine tools. D) host search tools. Answer: A 11) A market mechanism that uses a competitive process in which a seller solicits consecutive bids from buyers or a buyer solicits bids from sellers best defines A) electronic shopping. B) request for proposal. C) auction. D) request for quotation. Answer: C
  • 203. 12) The most common and traditional form of auctions in which one seller entertains bids from many buyers best describes A) forward auctions. B) reverse auctions. C) bidding auction systems. D) tendering systems. Answer: A 13) The dynamic pricing configuration where the resulting price is determined by each party's bargaining power, supply and demand in the item's market, and possibly business environment factors best describes A) one buyer, one seller. B) one seller, many potential buyers. C) one buyer, many potential sellers. D) many sellers, many buyers. Answer: A 14) All of the following are benefits of e-auctions to buyers except: A) can liquidate large quantities quickly. B) convenience of bidding anywhere and any time. C) opportunity to bargain. D) opportunities to find unique items. Answer: A 15) Which of the following statements about bartering is false? A) It is the oldest method of trade. B) It is primarily done between individuals and private parties. C) The problem with bartering is that it is difficult to find trading partners. D) Intermediaries can be helpful, but they are expensive and very slow. Answer: B 2.3 Fill in the Blank
  • 204. 1) ________ refers to an online market, usually B2B, in which buyers and sellers exchange goods or services. Answer: E-marketplace 2) A marketplace in which sellers and buyers exchange goods and services for money (or other goods and services), but do so electronically defines ________. Answer: marketspace 3) ________ refers to the portion of an e-seller's business processes through which customers interact, including the seller's portal, electronic catalogs, a shopping cart, a search engine, and a payment gateway. Answer: Front end 4) A private e-marketplace in which one company sells either standard and/or customized products to qualified companies defines ________. Answer: buy-side e-marketplace 5) An ________ is an online shopping center where many online stores are located. Answer: e-mall 6) ________ are electronic intermediaries that provide and/or control information flow in cyberspace, often aggregating information and selling it to others. Answer: Infomediaries 7) A ________ is an auction in which a seller entertains bids from buyers, and bidders increase the price sequentially. Answer: forward auction 8) The ________ is an auction in which the buyer places an item for bid on a request for quote system, potential suppliers bid on the job, with the price reducing sequentially, and the lowest bid wins. Answer: reverse auction 9) The ________ is an auction model in which a would-be buyer specifies the price he or she is willing to pay to any willing and able seller. Answer: name-your-own-price model 10) ________ is a marketplace in which an intermediary arranges barter transactions. Answer: Bartering exchange
  • 205. 2.4 Essay 1) List the six major EC trading activity categories. Answer: The six major EC trading activity categories are: (1) presence and discovery, find information, compare, analyze; (2) trading buy, sell, exchange; (3) communicate, collaborate, learn; (4) entertainment; (5) improve performance; and (6) other activities, recruit, customer service. 2) Discuss intermediation, disintermediation, and reintermediation. Answer: Intermediation occurs when a third party operates between buyers and sellers. Intermediaries provide information about demand, supply, prices, and requirements or they offer value-added services. E-marketplaces, infomediaries and portals provide information for free or low cost, resulting in the disintermediation or elimination of the intermediary. Reintermediation occurs when the disintermediated entity takes on new intermediary roles.
  • 206. Chap 4 Câu hỏi Đáp án Câu hỏi Đáp án With ________, the contents of a Web page are stored as objects in a database, rather than being hard-coded in HTML. Dynamic page generation One of the most important challenges in developing an ecommerce presence is understanding that the technology must drive the business. False Prior to the development of ecommerce, Web sites primarily delivered static content True ________ involves testing the site as a whole, in the same way a typical user would when using the site. System testing A ________ is a set of public statements to customers declaring how you will treat any personal information that you gather from them on your Web site. Privacy policy Which of the following is not an activity typically associated with a social media ecommerce presence? Search, conversation, sharing, advice Apache HTTP Web server software is based on Microsoft's Windows operating system. False The Web server software used does not significantly impact how a Web site's Web pages look on users' computers. True (no answer) (k chọn search,advice)
  • 207. ________ increases the processing power of hardware components but maintains the physical footprint and the number of servers. Vertical scaling In a two-tier architecture, a Web server is linked to one middle-tier layer that typically includes a series of application servers, as well as to another back-end layer. False Which of the following is not an example of one of the four kinds of ecommerce presence? customer management system Hiring an external vendor to provide services that you cannot perform with in-house personnel is known as ________ Outsourcing Using prebuilt templates is typically one of the most costeffective choices when building a Web site. True ________ refers to the difference between the highest and lowest prices in a market. Price dispersion ________ occurs when a new venue for selling products or services threatens to destroy existing venues Channel conflict Which of the following is not one of the main elements of a comprehensive multi-channel local marketing Online banking is more popular with men than with women. False
  • 208. marketing plan? In modeling online consumer behavior, consumer skills refers to the: Knowledge that consumer have about how to conduct online transaction. ________ involves testing the site as a whole, in the same way a typical user would when using the site. System testing Using prebuilt templates is typically one of the most costeffective choices when building a Web site. TRUE ________ is a language that Microsoft invented to compete with JavaScript. VBScript ________ involves testing the site as a whole, in the same way a typical user would when using the site System testing A list server is an application server used to provide a database for product descriptions and prices. False A ________ is a small, prebuilt chunk of code that executes automatically in your HTML Web page to perform a specific task such as widget ________ is the process of comparing a Web site with that of its competitors in terms of response speed, quality of layout, and Benchmarking
  • 209. design. providing weather information. Hiring an external vendor to provide services that you cannot perform with in-house personnel is known as ________. outsourcing Accessibility rules help to ensure that low-bandwidth users can access your Web site. False The systems development life cycle methodology is useful when creating an e-commerce Web site True Using prebuilt templates is typically one of the most costeffective choices when building a Web site True With ________, the contents of a Web page are stored as objects in a database, rather than being hard-coded in HTML. dynamic page generation The information elements that the system must produce to achieve its business objectives are called ________. information requirements Mobile Web apps are typically built using HTML5 and Java. True A ________ is a set of public statements to customers declaring how you will treat privacy policy
  • 210. any personal information that you gather from them on your Web site Storing HTML pages in RAM rather than on a server's hard drive is an inexpensive way to fine-tune the processing architecture of a Web site. True Which of the following is an example of a CMS? b. WordPress Dynamic page generation makes market segmentation easier True Which of the following is an example of dynamic content d. blog posts In a two-tier architecture, a Web server is linked to one middle-tier layer that typically includes a series of application servers, as well as to another back-end layer. False The practice of owning (or leasing) and managing your own Web servers but housing them in a vendor's physical facility is known as ________. co-location Prior to the development of e- True Apache HTTP Web server software is False
  • 211. commerce, Web sites primarily delivered static content. based on Microsoft's Windows operating system One of the most important challenges in developing an ecommerce presence is understanding that the technology must drive the business. False
  • 212. 1 Marks: 1 The practice of owning (or leasing) and managing your own Web servers but housing them in a vendor's physical facility is known as ________. Answer: co-location Correct Marks for this submission: 1/1. Question2 Marks: 1 Apache HTTP Web server software is based on Microsoft's Windows operating system. Answer: True False Correct Question5 Marks: 1 Which of the following is not an example of one of the four kinds of e-commerce presence? Choose one answer. a. e-mail list
  • 213. b. customer management system c. Twitter feed d. print ad that refers to a Web site Correct Marks for this submission: 1/1. Question6 Marks: 1 Which of the following typically includes a data flow diagram to describe the flow of information for a Web site? Choose one answer. a. physical design b. logical design c. testing plan d. co-location plan Correct Marks for this submission: 1/1. Question7
  • 214. Marks: 1 ________ is the process of comparing a Web site with that of its competitors in terms of response speed, quality of layout, and design. Answer: Benchmarking Correct Marks for this submission: 1/1. Question8 Marks: 1 An online ________ allows shoppers to set aside desired purchases in preparation for checkout, review what they have selected, and edit their selections as necessary. Answer: shopping cart Correct Question10 Marks: 1 Mobile Web apps are typically built using HTML5 and Java. Answer: True False Correct Marks for this submission: 1/1.
  • 215. Question11 Marks: 1 In a two-tier architecture, a Web server is linked to one middle-tier layer that typically includes a series of application servers, as well as to another back-end layer. Answer: True False Correct Marks for this submission: 1/1. Question12 Marks: 1 Dynamic page generation makes market segmentation easier. Answer: True False Correct Marks for this submission: 1/1. Question13 Marks: 1 A Web ________ is a software program that provides the specific business functionality required of a Web site. Answer: Application Server
  • 216. Correct Marks for this submission: 1/1. Question15 Marks: 1 Which of the following basic system functionalities is used to display goods on a Web site? Choose one answer. a. product database b. digital catalog c. shopping cart system d. customer database system Correct Question17 Marks: 1 In order from beginning to end, the major steps in the SDLC, are: Choose one answer. a. systems analysis/planning; systems design; building the system; testing; and implementation.
  • 217. b. systems design; testing; building the system; and implementation. c. systems analysis/planning; systems design; building the system; implementation; and testing. d. systems analysis/planning; implementation; building the system; and testing. Correct Marks for this submission: 1/1. Question18 Marks: 1 Advantages of dynamic page generation include all of the following except: Choose one answer. a. lowered menu costs. b. market segmentation. c. nearly cost-free price discrimination. d. client-side execution of programming. Correct Marks for this submission: 1/1. Question20
  • 218. Marks: 1 Which of the following types of sites typically tends to have high to very high page views (hits)? Choose one answer. a. Web services b. customer self-service c. trading d. publishing/subscription Correct Marks for this submission: 1 The leading Web server software is: Choose one answer. a. Apache. b. Microsoft Internet Information Server. c. Linux. d. Google Enterprise Server. Correct
  • 219. Marks for this submission: 1/1. Question5 Marks: 1 ________ verifies that the business objectives of the system as originally conceived are in fact working. Choose one answer. a. System testing b. Acceptance testing c. Unit testing d. Implementation testing Correct Marks for this submission: 1/1. Question6 Marks: 1 Marks for this submission: 1/1. Question10 Marks: 1 All of the following are Web site design features that annoy customers except:
  • 220. Choose one answer. a. slow-loading pages. b. pop-under ads. c. splash pages. d. redundant navigation. Correct Question14 Marks: 1 Which of the following types of sites typically needs a high percent of secure pages? Choose one answer. a. Web services b. customer self-service c. trading d. publishing/subscription Correct Marks for this submission: 1/1.
  • 221. ________ is a programming language invented by Netscape used to control the objects on an HTML page and handle interactions with the browser. Choose one answer. a. VBScript b. ActiveX c. ColdFusion d. JavaScript Correct Marks for this submission: 1/1. Question19 Marks: 1 An e-commerce site that cost $25,000 to develop is likely to require a yearly maintenance budget of approximately: Choose one answer. a. $5,000. b. $10,000. c. $25,000.
  • 222. d. $50,000. Correct Marks for this submission: 1/1. Marks for this submission: 1/1. 1 Marks: 1 Which of the following basic system functionalities is used to display goods on a Web site? Choose one answer. a. product database b. digital catalog c. shopping cart system d. customer database system Correct Marks for this submission: 1/1. 3 Marks: 1 The term stateless refers to the fact that:
  • 223. Choose one answer. a. no one government entity controls the Internet. b. the server does not have to maintain an ongoing dedicated interaction with the client computer. c. system performance degrades as more simultaneous users require service. d. Web servers may maintain multiple instances of server software to handle requests. Correct Question5 Marks: 1 An e-commerce Web site that processes orders requires, at minimum, a ________ system architecture. Choose one answer. a. single-tier b. two-tier c. three-tier d. multi-tier Correct
  • 224. Marks for this submission: 1/1. Question6 Question8 Marks: 1 The systems development life cycle methodology is useful when creating an e-commerce Web site. Answer: True False Correct Marks for this submission: 1/1. Question9 Marks: 1 All of the following are important factors in Web site optimization except: Choose one answer. a. selecting keywords and page titles. b. identifying market niches for your services or products. c. buying search engine ads. d. adhering to accessibility guidelines.
  • 225. Correct 12 Marks: 1 ________ increases the processing power of hardware components but maintains the physical footprint and the number of servers. Answer: Vertical scaling Correct Question15 Marks: 1 Storing HTML pages in RAM rather than on a server's hard drive is an inexpensive way to fine-tune the processing architecture of a Web site. Answer: True False Correct Marks for this submission: 1/1. Question18 Marks: 1 A system design has two main components: Choose one answer. a. a logical design and a physical design.
  • 226. b. a behavioral design and a technological design. c. business objectives and technology requirements. d. front-end systems and back-end systems. Correct Marks for this submission: 1/1. Question20 Marks: 1 ________ are the types of information systems capabilities needed to meet business objectives. Choose one answer. a. Information requirements b. System functionalities c. System design specifications d. Physical design specifications Correct
  • 227. Marks: 1 In general, the costs of ________ account for at least 50 percent of a Web site development budget. Choose one answer. a. content design and development and system maintenance b. content design and development and hardware c. hardware, software, and telecommunications d. hardware and system development Correct Marks for this submission: 1/1. CHAPTER 4 Which of the following is not a main factor in determining overall demand for an e-commerce site? Choose one answer. a. static file sizes b. number of items in inventory c. user profiles
  • 228. d. type of content Correct Marks for this submission: 1/1. Question3 Marks: 1 All of the following are methods of improving the processing architecture of a Web site except: Choose one answer. a. separating static content from dynamic content. b. optimizing ASP code. c. optimizing the database schema. d. adding Web servers. Correct Marks for this submission: 1/1. Question4 Marks: 1 A _widget_______ is a small, prebuilt chunk of code that executes automatically in your HTML Web page to perform a specific task such as providing weather information. Answer: w idget correct Marks for this submission: 1/1. Question5 Marks: 1 The cost of hardware, software, and telecommunications services needed to build a Web site have ________ over the last decade.
  • 229. Choose one answer. a. increased dramatically b. increased moderately c. decreased dramatically d. decreased slightly Correct Marks for this submission: 1/1. Question7 Marks: 1 Which of the following is an example of dynamic content? Choose one answer. a. product photographs b. product descriptions c. home page graphic d. blog posts Correct Marks for this submission: 1/1. Question8 Marks: 1 The annual maintenance cost for a Web site is likely to be as high as its development cost. Answer: True False
  • 230. Correct Marks for this submission: 1/1. Question9 Marks: 1 Which of the following is the final stage suggested for a six-phase plan to develop an e-commerce presence? Choose one answer. a. mobile plan b. maintenance c. testing plan d. Twitter plan Correct Marks for this submission: 1/1. Question10 Marks: 1 ________ refers to the arrangement of software, machinery, and tasks in an information system needed to achieve a specific functionality. Answer: System architecture Correct Marks for this submission: 1/1. Question11 Marks: 1 Which of the following is not one of the basic business objectives for an e-commerce site? Choose one answer.
  • 231. a. display goods b. execute a transaction c. provide production and supplier links d. optimize system architecture Correct Marks for this submission: 1/1. Question12 Marks: 1 Which of the following is not one of the main factors in Web site optimization? Choose one answer. a. page content b. page generation c. page delivery d. page stickiness Correct Marks for this submission: 1/1. Question13 Marks: 1 One of the most important challenges in developing an e-commerce presence is understanding that the technology must drive the business. Answer: True correct False
  • 232. Marks for this submission: 0/1. Question14 Marks: 1 With ________, the contents of a Web page are stored as objects in a database, rather than being hard-coded in HTML. Answer: dynamic page generation Correct Marks for this submission: 1/1. Question16 Marks: 1 A SWOT analysis describes strengths, weaknesses, opportunities, and ________. Answer: threats Correct Marks for this submission: 1/1. Question17 Marks: 1 Which of the following is used to process certificates and private/public key information? Choose one answer. a. HTTP b. SSL c. FTP d. data capture tools Correct
  • 233. Marks for this submission: 1/1. Question18 Marks: 1 ________ involves testing a site program's modules one at a time. Choose one answer. a. System testing b. Acceptance testing c. Unit testing d. Implementation testing Correct Marks for this submission: 1/1. Question19 Marks: 1 Which of the following cannot be used to retrieve objects from a database? Choose one answer. a. CGI b. ASP c. JSP d. HTML Correct Marks for this submission: 1/1. Question20
  • 234. Marks: 1 A __ Privacy policy ______ is a set of public statements to customers declaring how you will treat any personal information that you gather from them on your Web site. Answer: Privacy policy correct Marks for this submission: 1/1. Accessibility rules help to ensure that low-bandwidth users can access your Web site. Answer: True False Correct Marks for this submission: 1/1. Question2 Marks: 1 A "native" app is one designed to specifically operate using a mobile device's hardware and operating system. Answer: True False Correct Marks for this submission: 1/1. Question3 Marks: 1 All of the following can enhance page delivery speed except: Choose one answer. a. using edge caching services. b. using specialized content delivery networks.
  • 235. c. increasing local bandwidth. d. increasing the dynamic content on the pages. Correct Marks for this submission: 1/1. Question5 Marks: 1 All of the following are basic functionality provided by Web servers except: Choose one answer. a. site management tools. b. data capture tools. c. security services. d. a shopping cart. Correct Marks for this submission: 1/1. Question6 Marks: 1 Which of the following technologies could you use to place the content of your Web site in a database so that you can then dynamically generate requests for pages? Choose one answer. a. Apache web server b. proxy server c. shopping cart
  • 236. d. CMS Correct Marks for this submission: 1/1. Question7 Marks: 1 All of the following are basic information requirements for a product database except: Choose one answer. a. product descriptions. b. stock numbers. c. customer ID numbers. d. inventory levels. Correct Marks for this submission: 1/1. Question8 Marks: 1 The information elements that the system must produce to achieve its business objectives are called ________. Answer: information requirements correct Marks for this submission: 1/1. Question9 Marks: 1 All of the following are simple steps for optimizing Web page content that can reduce response times except: Choose one answer.
  • 237. a. reducing unnecessary HTML comments. b. segmenting computer servers to perform dedicated functions. c. using more efficient graphics. d. avoiding unnecessary links to other pages on the site. Correct Marks for this submission: 1/1. Question11 Marks: 1 All of the following might be part of a Web site's backend layer except: Choose one answer. a. a pre-existing corporate database. b. a human resources system. c. a production MRP system. d. an application server. Correct Marks for this submission: 1/1. Question12 Marks: 1 Which of the following is not an open source software tool? Choose one answer. a. WebSphere
  • 238. b. Apache c. MySQL d. PHP Correct Marks for this submission: 1/1. Question13 Marks: 1 What are the two most important management challenges in building a successful e-commerce presence? Choose one answer. a. developing a clear understanding of business objectives and knowing how to choose the right technology to achieve those objectives b. having an accurate understanding of your business environment and an achievable business plan c. building a team with the right skill sets and closely managing the development process d. identifying the key components of your business plan and selecting the right software, hardware, and infrastructure for your site Correct Marks for this submission: 1/1. Question14 Marks: 1 A list server is an application server used to provide a database for product descriptions and prices. Answer: True False correct Marks for this submission: 1/1.
  • 239. Question15 Marks: 1 Using prebuilt templates is typically one of the most cost-effective choices when building a Web site. Answer: True False Correct Marks for this submission: 1/1. Question17 Marks: 1 Which of the following is the final stage suggested for a six-phase plan to develop an e-commerce presence? Choose one answer. a. mobile plan b. maintenance c. testing plan d. Twitter plan Correct Marks for this submission: 1/1. Question18 Marks: 1 ________ involves testing the site as a whole, in the same way a typical user would when using the site. Answer: System testing Correct Marks for this submission: 1/1.
  • 240. Question19 Marks: 1 ________ increases the processing power of hardware components but maintains the physical footprint and the number of servers. Answer: Vertical scaling Correct Marks for this submission: 1/1. Question20 Marks: 1 Which system functionality must your Web site have in order to be able to personalize or customize a product for a client? Choose one answer. a. an ad server b. a site tracking and reporting system c. an inventory management system d. customer on-site tracking Correct Marks for this submission: 1/1. One of the most important challenges in developing an e-commerce presence is understanding that the technology must drive the business. Answer: True False correct Marks for this submission: 1/1. Question2 Marks: 1
  • 241. Which of the following types of servers monitors and controls access to a main Web server and implements firewall protection? Choose one answer. a. proxy server b. list server c. groupware server d. mail server Correct Marks for this submission: 1/1. Question3 Marks: 1 Which of the following technologies could you use to place the content of your Web site in a database so that you can then dynamically generate requests for pages? Choose one answer. a. Apache web server b. proxy server c. shopping cart d. CMS Correct Marks for this submission: 1/1. Question4 Marks: 1 Which of the following is used to process certificates and private/public key information?
  • 242. Choose one answer. a. HTTP b. SSL c. FTP d. data capture tools Correct Marks for this submission: 1/1. Question5 Marks: 1 Which of the following is not an activity typically associated with a social media e-commerce presence? Choose one answer. A a. search b. conversation c. sharing d. advice correct Marks for this submission: 0/1. Question6 Marks: 1 Which of the following would you use to identify orphan files? Choose one answer.
  • 243. a. HTTP b. FTP c. data capture tools d. site management tools Correct Marks for this submission: 1/1. Question7 Marks: 1 A list server is an application server used to provide a database for product descriptions and prices. Answer: True False correct Marks for this submission: 1/1. Question8 Marks: 1 All of the following are basic functionality provided by e-commerce merchant server software except: Choose one answer. a. a product catalog. b. marketing software. c. a shopping cart. d. credit card processing. correct
  • 244. Marks for this submission: 1/1. Question9 Marks: 1 ________ is the process of comparing a Web site with that of its competitors in terms of response speed, quality of layout, and design. Answer: Benchmarking Correct Marks for this submission: 1/1. Question10 Marks: 1 All of the following are basic information requirements for a product database except: Choose one answer. a. product descriptions. b. stock numbers. c. customer ID numbers. d. inventory levels. Correct Marks for this submission: 1/1. Question11 Marks: 1 The cost of hardware, software, and telecommunications services needed to build a Web site have ________ over the last decade. Choose one answer. a. increased dramatically
  • 245. b. increased moderately c. decreased dramatically d. decreased slightly Correct Marks for this submission: 1/1. Question12 Marks: 1 ________ is a language that Microsoft invented to compete with JavaScript. Answer: VBScript correct Marks for this submission: 1/1. Question13 Marks: 1 All of the following can enhance page delivery speed except: Choose one answer. a. using edge caching services. b. using specialized content delivery networks. c. increasing local bandwidth. d. increasing the dynamic content on the pages. Correct Marks for this submission: 1/1. Question14
  • 246. Marks: 1 Which of the following helps you understand the marketing effectiveness of your e-commerce site? Choose one answer. a. shopping cart b. product database c. site tracking and reporting system d. inventory management system Correct Marks for this submission: 1/1. Question16 Marks: 1 Which of the following typically includes a data flow diagram to describe the flow of information for a Web site? Choose one answer. a. physical design b. logical design c. testing plan d. co-location plan Correct Marks for this submission: 1/1. Question17 Marks: 1 Which of the following details the actual hardware components to be used in a system?
  • 247. Choose one answer. a. architecture plan b. system functionalities plan c. logical design d. physical design Correct Marks for this submission: 1/1. Question18 Marks: 1 All of the following are steps one can take to right-size a Web site's hardware platform and meet demands for service except: Choose one answer. a. scaling hardware vertically. b. scaling hardware horizontally. c. replacing static pages with dynamically generated pages. d. improving processing architecture. Correct Marks for this submission: 1/1. Question19 Marks: 1 All of the following are methods of improving the processing architecture of a Web site except: Choose one answer.
  • 248. a. separating static content from dynamic content. b. optimizing ASP code. c. optimizing the database schema. d. adding Web servers. Correct Marks for this submission: 1/1. Question20 Marks: 1 A SWOT analysis describes strengths, weaknesses, opportunities, and ________. Answer: threats Correct Marks for this submission: 1/1. Chap 6 Câu hỏi Đáp án Câu hỏi Đáp án ________ refers to the difference between the highest and lowest prices in a market. Price dispersion ________ occurs when a new venue for selling products or services threatens to destroy Channel conflict
  • 249. existing venues Which of the following is not one of the main elements of a comprehensive multichannel marketing plan? local marketing Online banking is more popular with men than with women. True In modeling online consumer behavior, consumer skills refers to the: knowledge consumers have about how to conduct online transactions. Bundling is the process of selling two or more products together for a price that is less than the sum of the two product's individual prices. True All of the following are traditional online marketing tools except: social marketing Displaying online ads for high-end kitchen utensils to consumers who have purchased gourmet cookbooks is an example of ________ targeting contextual In the United States today, single, white, young college-educated males with high income dominate the Internet in terms of percentage of Internet false ________ is the process of getting customers to pass along a company's marketing message to friends, family, Viral marketing
  • 250. usage. and colleagues. ________ behavior refers to the transaction log that consumers establish as they move about the Web from site to site. Clickstream In 2012, mobile marketing grew at nearly the same rate as traditional online marketing. False The broadest factor in consumer behavior is: culture Online shoppers tend to browse for available products rather than search for specific products they have determined in advance False Conversations between a firm and the consumers of its products in various forums such as blogs, Facebook, and Twitter feeds are referred to collectively as ________. customer engagement On a typical day, approximately ________ percent of adult users in the United States logs on to the Internet. 82 Households with incomes of below $75,000 are obtaining Internet access at faster rates than households with incomes above that level. True In ________, one Web site agrees to pay another Web site a commission for new business opportunities it affiliate marketing
  • 251. refers to the site. To answer a question such as "At what time of day does our company sell the most products?" you would use ________ data mining. query-driven The four generic market entry strategies are first mover, fast follower, slow follower, and pure play False The ________ is a mapping of all significant online social relationships social graph Specialized marketing firms called ________ sell ad opportunities from a range of participating sites that receive payment for displaying ads. advertising networks Transaction logs are built into Web server software. True In 2012, what was the approximate Internet penetration rate for individuals that have attained less than a highschool 60
  • 252. education? Psychographic ________ research combines both demographic and psychological data and divides a market into different groups based on social class, lifestyle, and/or personality characteristics. A ________ group is a type of reference group that has an integrated pattern of activities, interests, and opinions lifestyle Which of the following age groups had the lowest percentage of Internet access in 2012? 65+ Studies of the effects of social "connectedness" on Internet purchases indicate that the more "connected" an individual: the more that individual shares purchasing decisions with friends. Cookies, when combined with Web beacons, can be used to create cross-site profiles. True All of the following are fixed price strategies except: Free pricing The dial-up audience is ________ the broadband less intensely involved with the E-commerce is a major conduit and True
  • 253. audience. Internet than generator of offline commerce ________ refers to the process of using the power of an existing brand to acquire new customers for a new product or service. Brand leveraging Price is the top factor in online purchase decisions True Which of the following is not a kind of Twitter marketing product? Promoted Shopping Evidence suggests that real-time customer chat increases sales True Which of the following is not a social marketing technique? app marketing Ecom.2013.Laudon.Chapter06 - Attempt 1 Question1 Marks: 1 To answer a question such as "At what time of day does our company sell the most products?" you would use ________ data mining. Answer: query-driven Question2 Marks: 1 Which of the following activities is the one engaged in by the highest percentage of online users? Choose one answer.
  • 254. a. using e-mail b. using a social networking site c. researching products and services d. reading news Question3 Marks: 1 The dial-up audience is ________ the broadband audience. Choose one answer. a. virtually indistinguishable from b. more educated than c. less intensely involved with the Internet than d. wealthier than Question4 Marks: 1 ________ refers to the process of using the power of an existing brand to acquire new customers for a new product or service. Answer: brand leveraging Question5 Marks: 1 The four generic market entry strategies are first mover, fast follower, slow follower, and pure play. Answer: True False
  • 255. Question6 Marks: 1 Specialized marketing firms called ________ sell ad opportunities from a range of participating sites that receive payment for displaying ads. Answer: Question7 Marks: 1 Which of the following is the top concern of Internet users about purchasing online? Choose one answer. a. inability to see and touch before buying b. difficulty of returning products c. shipping costs d. inability to speak to sales assistant in person Question9 Marks: 1 ________ research combines both demographic and psychological data and divides a market into different groups based on social class, lifestyle, and/or personality characteristics. Answer: psychographic Question10 Marks: 1 The ________ asserts that, with complete price transparency in a perfect information marketplace, one world price for every product will emerge. Answer: law of one price
  • 256. Question11 Marks: 1 In modeling online consumer behavior, consumer skills refers to the: Choose one answer. a. education level of the consumer. b. communication skills of the consumer. c. knowledge consumers have about how to conduct online transactions. d. product evaluation skills of the consumer. Question12 Marks: 1 All of the following statements about cookies are true except: Choose one answer. a. Cookies can be used with Web bugs to create cross-site profiles of users. b. The data typically stored in cookies includes a unique ID and e-mail address. c. Cookies make shopping carts possible by allowing a site to keep track of a user's actions. d. The more cookies are deleted, the less accurate ad server metrics become. Question13 Marks: 1 ________ behavior refers to the transaction log that consumers establish as they move about the Web from site to site. Answer: clickstream behavior
  • 257. Question14 Marks: 1 The incremental cost of building the next unit of a good is called the: Choose one answer. a. demand curve. b. variable cost. c. marginal cost. d. fixed cost. Question15 Marks: 1 A ________ profile describes an individual's set of needs, drives, motivations, perceptions and learned behaviors. Choose one answer. a. psychographic b. opinion c. psychological d. lifestyle Question16 Marks: 1 For a Web site that has 5 million visitors a month, and where on average, a visitor makes 10 page requests per visit, there will be ________ entries in the transaction log each month. Choose one answer.
  • 258. a. 50 b. 500,000 c. 5 million d. 50 million Question17 Marks: 1 "Shoppers" constitute approximately ________ percent of the online Internet audience. Choose one answer. a. 38 b. 68 c. 88 d. 98 Question18 Marks: 1 Price is the top factor in online purchase decisions. Answer: True False Question19 Marks: 1 ________ is an industry-standard database query and manipulation language. Choose one answer.
  • 259. a. SQL b. PHP c. DBMS d. JSP Question20 Marks: 1 Small ticket item sales outnumbered large ticket item sales during the early days of e-commerce for all of the following reasons except: Choose one answer. a. Purchase price was low. b. Items were physically small. c. Margins were low. d. Selection was broad. Ecom.2013.Laudon.Chapter06 - Attempt 2 Question1 Marks: 1 "Shoppers" constitute approximately ________ percent of the online Internet audience. Choose one answer. a. 38 b. 68
  • 260. c. 88 d. 98 Question2 Marks: 1 In modeling online consumer behavior, consumer skills refers to the: Choose one answer. a. education level of the consumer. b. communication skills of the consumer. c. knowledge consumers have about how to conduct online transactions. d. product evaluation skills of the consumer. Question3 Marks: 1 Conversations between a firm and the consumers of its products in various forums such as blogs, Facebook, and Twitter feeds are referred to collectively as ________. Answer: customer engagement Question4 Marks: 1 Which of the following is an example of an indirect reference group? Choose one answer. a. social class b. family
  • 261. c. religion d. profession Question5 Marks: 1 Online shoppers tend to browse for available products rather than search for specific products they have determined in advance. Answer: True False Question6 Marks: 1 Versioning involves selling the same product at different prices. Answer: True False Question7 Marks: 1 The incremental cost of building the next unit of a good is called the: Choose one answer. a. demand curve. b. variable cost. c. marginal cost. d. fixed cost. Question8 Marks: 1 Research shows that the two most important factors shaping the decision to purchase online are utility and trust.
  • 262. Answer: True False Question9 Marks: 1 Which of the following is not a kind of Twitter marketing product? Choose one answer. a. Promoted Shopping b. Promoted Tweets c. Promoted Accounts d. Promoted Trends Question10 Marks: 1 Which of the following demographic groups had the greatest increase in Internet access between 2002 and 2012? Choose one answer. a. Black, non-Hispanic b. Asians c. White, non-Hispanic d. Hispanic Question11 Marks: 1 All of the following are important clickstream behavior factors except: Choose one answer.
  • 263. a. the number of days since last visit. b. the speed of clickstream behavior. c. the amount of personal information supplied. d. the number of advertisements viewed. Question12 Marks: 1 Approximately ________ in annual offline retail sales is influenced by online browsing. Choose one answer. a. $1.2 trillion b. $102 billion c. $120 million d. $12 million Question13 Marks: 1 Bundling is the process of selling two or more products together for a price that is less than the sum of the two product's individual prices. Answer: True False Question14 Marks: 1 Displaying online ads for high-end kitchen utensils to consumers who have purchased gourmet cookbooks is an example of ________ targeting. Answer: advertising netw orks
  • 264. Question15 Marks: 1 Discuss the revolution in Internet marketing technologies. What are the three main broad impacts the Internet has had on marketing? Answer: Question17 Marks: 1 A consumer's decision to purchase from a particular store because of the wide variety and number of products available is called the ________ effect. Answer: library Question18 Marks: 1 Permission marketing: Choose one answer.
  • 265. a. is a component of e-mail marketing. b. is required now by federal law via "opt-in" regulations. c. allows Web site users to "turn off" display ads. d. is a method of pre-approved marketing to juveniles. Question19 Marks: 1 Netflix entered the market with a ________ strategy. Choose one answer. a. brand extender b. fast follower c. first mover d. alliance Question20 Marks: 1 All of the following statements are true except: Choose one answer. a. Online merchants can avoid direct price comparison by introducing information asymmetries into the marketplace. b. Relative dispersion of prices for online goods has decreased. c. Price dispersion is less for commodities than for differentiated products. d. Depending on the seller, there can be large differences in price sensitivity for the
  • 266. same products. Question6 Marks: 1 The incremental cost of building the next unit of a good is called the: Choose one answer. a. demand curve. b. variable cost. c. marginal cost. d. fixed cost. Question7 Marks: 1 Which of the following features of e-commerce technology has reduced the cost of delivering marketing messages and receiving feedback from users? Choose one answer. a. ubiquity b. richness c. interactivity d. universal standards Question8 Marks: 1 Which of the following is not a kind of Twitter marketing product?
  • 267. Choose one answer. a. Promoted Shopping b. Promoted Tweets c. Promoted Accounts d. Promoted Trends Question9 Marks: 1 All of the following are online communications that are used to support the evaluation of alternatives stage of the consumer decision process except: Choose one answer. a. search engines. b. online catalogs. c. social networks. d. targeted banner ads. Question10 Marks: 1 "Shoppers" constitute approximately ________ percent of the online Internet audience. Choose one answer. a. 38 b. 68
  • 268. c. 88 d. 98 Question11 Marks: 1 Which of the following statements about a free pricing strategy is false? Choose one answer. a. Free products and services can knock out potential and actual competitors. b. The free pricing strategy was born in the early days of the Web. c. It is difficult to convert free customers into paying customers. d. Free products and services can help build market awareness. Question12 Marks: 1 Research shows that the two most important factors shaping the decision to purchase online are utility and trust. Answer: True False Question13 Marks: 1 ________ research combines both demographic and psychological data and divides a market into different groups based on social class, lifestyle, and/or personality characteristics. Answer: psychographic research Question14 Marks: 1 All of the following are traditional online marketing tools except:
  • 269. Choose one answer. a. affiliate marketing. b. permission marketing. c. social marketing. d. sponsorship marketing. Question15 Marks: 1 Permission marketing: Choose one answer. a. is a component of e-mail marketing. b. is required now by federal law via "opt-in" regulations. c. allows Web site users to "turn off" display ads. d. is a method of pre-approved marketing to juveniles. Question17 Marks: 1 Which of the following types of online market segmentation and targeting involves using consumers' explicitly expressed interest to segment and target? Choose one answer. a. psychographic b. technical
  • 270. c. search d. contextual Question18 Marks: 1 Transaction logs are built into Web server software. Answer: True False Question19 Marks: 1 ________ occurs when a new venue for selling products or services threatens to destroy existing venues. Answer: channel conflict Question20 Marks: 1 Small ticket item sales outnumbered large ticket item sales during the early days of e-commerce for all of the following reasons except: Choose one answer. a. Purchase price was low. b. Items were physically small. c. Margins were low. d. Selection was broad. 1 Marks: 1 Walmart used which of the following market entry strategies?
  • 271. Choose one answer. a. first mover b. strategic alliance c. fast follower d. brand extender Question2 Marks: 1 Which of the following examples illustrates the "Long Tail" phenomenon? Choose one answer. a. Rhapsody music streaming service reported that its no play rate had increased to over 20 percent. b. The number of blockbuster "winner take all" video titles is declining. c. Over 50 percent of Netflix's 100,000 titles are rented at least once a day by someone. d. The average blog has a readership of slightly more than 1. Question3 Marks: 1 In ________, one Web site agrees to pay another Web site a commission for new business opportunities it refers to the site. Answer: affiliate marketing Question4 Marks: 1 A Web beacon is:
  • 272. Choose one answer. a. a cookie that carries a virus. b. an executable cookie. c. an automated applet for performing Web searches. d. a tiny graphics file embedded in an e-mail or Web page. Question5 Marks: 1 Online shoppers tend to browse for available products rather than search for specific products they have determined in advance. Answer: True False Question7 Marks: 1 On average, which of the following activities was most frequently engaged in by Internet users in 2012? Choose one answer. a. checking the weather b. banking online c. buying a product d. rating a product Question8 Marks: 1 Which of the following statements about the Internet's impact on marketing is not true? Choose one answer.
  • 273. a. The Internet has broadened the scope of marketing communications. b. The Internet has decreased the impact of brands. c. The Internet has increased the richness of marketing communications. d. The Internet has expanded the information intensity of the marketplace. Question9 Marks: 1 In modeling online consumer behavior, consumer skills refers to the: Choose one answer. a. education level of the consumer. b. communication skills of the consumer. c. knowledge consumers have about how to conduct online transactions. d. product evaluation skills of the consumer. Question10 Marks: 1 Which of the following features of e-commerce technology allows fine-grained, highly detailed information on consumers' real-time behavior to be gathered and analyzed? Choose one answer. a. personalization/customization b. information density c. social technology
  • 274. d. interactivity Question11 Marks: 1 Transaction logs are built into Web server software. Answer: True False Question12 Marks: 1 Netflix entered the market with a ________ strategy. Choose one answer. a. brand extender b. fast follower c. first mover d. alliance Question13 Marks: 1 Displaying online ads for high-end kitchen utensils to consumers who have purchased gourmet cookbooks is an example of ________ targeting. Answer: Question14 Marks: 1 On a typical day, approximately ________ percent of adult users in the United States logs on to the Internet. Choose one answer.
  • 275. a. 52 b. 62 c. 72 d. 82 Question15 Marks: 1 Which of the following demographic groups had the greatest increase in Internet access between 2002 and 2012? Choose one answer. a. Black, non-Hispanic b. Asians c. White, non-Hispanic d. Hispanic Question16 Choose one answer. a. ubiquity b. richness c. interactivity d. universal standards Question19 Marks: 1
  • 276. Which of the following types of online market segmentation and targeting involves using consumers' explicitly expressed interest to segment and target? Choose one answer. a. psychographic b. technical c. search d. contextual Question20 Marks: 1 All of the following are important clickstream behavior factors except: Choose one answer. a. the number of days since last visit. b. the speed of clickstream behavior. c. the amount of personal information supplied. d. the number of advertisements viewed. 1 Marks: 1 The broadest factor in consumer behavior is: Choose one answer. a. culture.
  • 277. b. gender. c. education. d. psychological background. Question3 Marks: 1 In the United States today, single, white, young college-educated males with high income dominate the Internet in terms of percentage of Internet usage. Answer: True False Question4 Marks: 1 Which of the following age groups has the highest percentage of Internet access? Choose one answer. a. 18-29 b. 30-49 c. 50-64 d. 65+ Question6 Marks: 1 A consumer's decision to purchase from a particular store because of the wide variety and number of products available is called the ________ effect. Answer: library
  • 278. Question7 Marks: 1 All of the following are online communications that are used to support the evaluation of alternatives stage of the consumer decision process except: Choose one answer. a. search engines. b. online catalogs. c. social networks. d. targeted banner ads. Question8 Marks: 1 Permission marketing: Choose one answer. a. is a component of e-mail marketing. b. is required now by federal law via "opt-in" regulations. c. allows Web site users to "turn off" display ads. d. is a method of pre-approved marketing to juveniles. Question9 Marks: 1 Households with incomes of below $75,000 are obtaining Internet access at faster rates than households with incomes above that level. Answer: True False
  • 279. Question10 Marks: 1 In modeling online consumer behavior, consumer skills refers to the: Choose one answer. a. education level of the consumer. b. communication skills of the consumer. c. knowledge consumers have about how to conduct online transactions. d. product evaluation skills of the consumer. Question11 Marks: 1 Which of the following statements about a free pricing strategy is false? Choose one answer. a. Free products and services can knock out potential and actual competitors. b. The free pricing strategy was born in the early days of the Web. c. It is difficult to convert free customers into paying customers. d. Free products and services can help build market awareness. Question12 Marks: 1 All of the following statements about cookies are true except: Choose one answer. a. Cookies can be used with Web bugs to create cross-site profiles of users.
  • 280. b. The data typically stored in cookies includes a unique ID and e-mail address. c. Cookies make shopping carts possible by allowing a site to keep track of a user's actions. d. The more cookies are deleted, the less accurate ad server metrics become. Question13 Marks: 1 Evidence suggests that real-time customer chat increases sales. Answer: True False Question14 Marks: 1 Which of the following features of e-commerce technology has reduced the cost of delivering marketing messages and receiving feedback from users? Choose one answer. a. ubiquity b. richness c. interactivity d. universal standards Question15 Marks: 1 Which of the following features of e-commerce technology allows fine-grained, highly detailed information on consumers' real-time behavior to be gathered and analyzed? Choose one answer.
  • 281. a. personalization/customization b. information density c. social technology d. interactivity Question16 Marks: 1 Which of the following types of online market segmentation and targeting involves using consumers' explicitly expressed interest to segment and target? Choose one answer. a. psychographic b. technical c. search d. contextual Question17 Marks: 1 All of the following statements are true except: Choose one answer. a. Online merchants can avoid direct price comparison by introducing information asymmetries into the marketplace. b. Relative dispersion of prices for online goods has decreased. c. Price dispersion is less for commodities than for differentiated products.
  • 282. d. Depending on the seller, there can be large differences in price sensitivity for the same products. Question18 Marks: 1 The Nike iD program is an example of which of the following marketing techniques? Choose one answer. a. customer co-production b. transactive content c. price discrimination d. permission marketing Question19 Marks: 1 Which of the following is not a feature that is driving social e-commerce growth? Choose one answer. a. social sign-on b. network notification c. collaborative shopping d. personal intelligent agents Question20 Marks: 1 Which of the following statements about the Internet's impact on marketing is not true? Choose one answer.
  • 283. a. The Internet has broadened the scope of marketing communications. b. The Internet has decreased the impact of brands. c. The Internet has increased the richness of marketing communications. d. The Internet has expanded the information intensity of the marketplace. Mai Question1 Marks: 1 In modeling online consumer behavior, consumer skills refers to the: Choose one answer. a. education level of the consumer. b. communication skills of the consumer. c. knowledge consumers have about how to conduct online transactions. d. product evaluation skills of the consumer. Question2 Marks: 1 Transaction logs are built into Web server software. Answer:
  • 284. True False Question3 Marks: 1 Which of the following age groups had the lowest percentage of Internet access in 2012? Choose one answer. a. 18-29 b. 30-49 c. 50-64 d. 65+ Question4 Marks: 1 Which of the following statements about the Internet's impact on marketing is not true? Choose one answer. a. The Internet has broadened the scope of marketing communications. b. The Internet has decreased the impact of brands. c. The Internet has increased the richness of marketing communications.
  • 285. d. The Internet has expanded the information intensity of the marketplace. Question5 Marks: 1 Price is the top factor in online purchase decisions. Answer: True False Question6 Marks: 1 The richness made possible by e-commerce technologies does which of the following? Choose one answer. a. It reduces the cost of delivering marketing messages and receiving feedback from users. b. It allows consumers to become co-producers of the goods and services being sold. c. It allows video, audio, and text to be integrated into a single marketing message and consuming experience. d. It enables worldwide customer service and marketing communications. Question8 Marks: 1 Which of the following is an example of an indirect reference group? Choose one answer.
  • 286. a. social class b. family c. religion d. profession Question9 Marks: 1 Permission marketing: Choose one answer. a. is a component of e-mail marketing. b. is required now by federal law via "opt-in" regulations. c. allows Web site users to "turn off" display ads. d. is a method of pre-approved marketing to juveniles. Question11 Marks: 1 All of the following are attributes of personalized marketing except: Choose one answer.
  • 287. a. suitable for highly complex products. b. unique price. c. targeting of individuals. d. use of mass media. Question12 Marks: 1 Define and describe the functionality of customer relationship management (CRM) systems. Answer: A customer relationship management (CRM) system is a repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to “know the customer”. CRMs can be used to sell additional products and services, develop new products, increase product utilization, reduce marketing cost, identify and retain profitable customers, optimize service delivery costs, retain high lifetime value customers, enable personal communications, improve customer loyalty, and increase product profitability. Question13 Marks: 1 Cookies, when combined with Web beacons, can be used to create cross-site profiles. Answer: True False Question14 Marks: 1 ________ is the process of getting customers to pass along a company's marketing message to friends, family, and colleagues.
  • 288. Answer: viral marketing Question15 Marks: 1 In 2012, what was the approximate Internet penetration rate for individuals that have attained less than a high-school education? Choose one answer. a. 45 percent b. 60 percent c. 75 percent d. 90 percent Question16 Marks: 1 The marketing technique known as ________ involves merchants offering products or services for a very low price for a short period of time. Choose one answer. a. search engine marketing b. flash marketing c. yield management
  • 289. d. bait-and-switch Question18 Marks: 1 Which of the following is the top concern of Internet users about purchasing online? Choose one answer. a. inability to see and touch before buying b. difficulty of returning products c. shipping costs d. inability to speak to sales assistant in person Question19 Marks: 1 All of the following are online communications that are used to support the evaluation of alternatives stage of the consumer decision process except: Choose one answer. a. search engines. b. online catalogs. c. social networks.
  • 290. d. targeted banner ads. Question20 Marks: 1 Versioning involves selling the same product at different prices. Answer: False
  • 291. Question1 Marks: 1 Approximately ________ in annual offline retail sales is influenced by online browsing. Choose one answer. a. $1.2 trillion b. $102 billion c. $120 million d. $12 million Question2 Marks: 1 Which of the following demographic groups had the greatest increase in Internet access between 2002 and 2012? Choose one answer. a. Black, non-Hispanic b. Asians c. White, non-Hispanic d. Hispanic Question4
  • 292. Marks: 1 Households with incomes of below $75,000 are obtaining Internet access at faster rates than households with incomes above that level. Answer: True False Question5 Marks: 1 In 2012, mobile marketing grew at nearly the same rate as traditional online marketing. Answer: True False Question6 Marks: 1 A Web beacon is: Choose one answer. a. a cookie that carries a virus. b. an executable cookie. c. an automated applet for performing Web searches. d. a tiny graphics file embedded in an e-mail or Web page. Question7 Marks: 1
  • 293. All of the following statements are true except: Choose one answer. a. Online merchants can avoid direct price comparison by introducing information asymmetries into the marketplace. b. Relative dispersion of prices for online goods has decreased. c. Price dispersion is less for commodities than for differentiated products. d. Depending on the seller, there can be large differences in price sensitivity for the same products. Question9 Marks: 1 On a typical day, approximately ________ percent of adult users in the United States logs on to the Internet. Choose one answer. a. 52 b. 62 c. 72 d. 82
  • 294. Question10 Marks: 1 All of the following are important clickstream behavior factors except: Choose one answer. a. the number of days since last visit. b. the speed of clickstream behavior. c. the amount of personal information supplied. d. the number of advertisements viewed. Question11 Marks: 1 In ________, one Web site agrees to pay another Web site a commission for new business opportunities it refers to the site. Answer: affiliate marketing Question12 Marks: 1 Research shows that the two most important factors shaping the decision to purchase online are utility and trust. Answer: True Question13 False
  • 295. Marks: 1 Evidence suggests that real-time customer chat increases sales. Answer: True False Question14 Marks: 1 A consumer's decision to purchase from a particular store because of the wide variety and number of products available is called the ________ effect. Answer: library Question15 Marks: 1 A person's profession or occupation is part of their: Choose one answer. a. indirect reference group. b. direct reference group. c. lifestyle group. d. subculture. Question16 Marks: 1
  • 296. The ________ asserts that, with complete price transparency in a perfect information marketplace, one world price for every product will emerge. Answer: Law of One Price Question18 Marks: 1 Which of the following types of online market segmentation and targeting involves tracking the actions users take on a Web site? Choose one answer. a. technical b. behavioral c. contextual d. psychographic Question4 Marks: 1 Online banking is more popular with men than with women. Answer: True Question5 False
  • 297. Marks: 1 For a Web site that has 5 million visitors a month, and where on average, a visitor makes 10 page requests per visit, there will be ________ entries in the transaction log each month. Choose one answer. a. 50 b. 500,000 c. 5 million d. 50 million Question6 Marks: 1 "Shoppers" constitute approximately ________ percent of the online Internet audience. Choose one answer. a. 38 b. 68 c. 88 d. 98 Question7 Marks: 1
  • 298. The broadest factor in consumer behavior is: Choose one answer. a. culture. b. gender. c. education. d. psychological background. Question8 Marks: 1 All of the following are fixed price strategies except: Choose one answer. a. bundling. b. versioning. c. free pricing. d. yield management. Question9 Marks: 1 Creating multiple variations of information goods and selling these to different market segments at different prices is called:
  • 299. Choose one answer. a. bundling. b. customization. c. dynamic pricing. d. versioning. Question11 Marks: 1 A ________ group is a type of reference group that has an integrated pattern of activities, interests, and opinions. Answer: lifestyle Question13 Marks: 1 The four generic market entry strategies are first mover, fast follower, slow follower, and pure play. Answer: True False
  • 300. Question14 Marks: 1 Walmart used which of the following market entry strategies? Choose one answer. a. first mover b. strategic alliance c. fast follower d. brand extender Question15 Marks: 1 E-commerce is a major conduit and generator of offline commerce. Answer: True False Question16 Marks: 1 The Nike iD program is an example of which of the following marketing techniques? Choose one answer. a. customer co-production
  • 301. b. transactive content c. price discrimination d. permission marketing Question17 Marks: 1 In the United States today, single, white, young college-educated males with high income dominate the Internet in terms of percentage of Internet usage. Answer: True False Question18 Marks: 1 All of the following statements about cookies are true except: Choose one answer. a. Cookies can be used with Web bugs to create cross-site profiles of users. b. The data typically stored in cookies includes a unique ID and e-mail address. c. Cookies make shopping carts possible by allowing a site to keep track of a user's actions. d. The more cookies are deleted, the less accurate ad server metrics become.
  • 302. 1 Marks: 1 Price is the top factor in online purchase decisions. Answer: True False Question2 Marks: 1 Which of the following features of e-commerce technology allows fine-grained, highly detailed information on consumers' real-time behavior to be gathered and analyzed? Choose one answer. a. personalization/customization b. information density c. social technology d. interactivity Question3 Marks: 1 ________ is the process of getting customers to pass along a company's marketing message to friends, family, and colleagues. Answer: Viral marketing Question4 Marks: 1 The richness made possible by e-commerce technologies does which of the following? Choose one answer.
  • 303. a. It reduces the cost of delivering marketing messages and receiving feedback from users. b. It allows consumers to become co-producers of the goods and services being sold. c. It allows video, audio, and text to be integrated into a single marketing message and consuming experience. d. It enables worldwide customer service and marketing communications. Question5 Marks: 1 The Nike iD program is an example of which of the following marketing techniques? Choose one answer. a. customer co-production b. transactive content c. price discrimination d. permission marketing Question6 Marks: 1 The ________ asserts that, with complete price transparency in a perfect information marketplace, one world price for every product will emerge. Answer: Law of One Price Question7 Marks: 1 Which of the following is not a social marketing technique? Choose one answer.
  • 304. a. Pinterest marketing b. app marketing c. game marketing d. video marketing Question8 Marks: 1 Conversations between a firm and the consumers of its products in various forums such as blogs, Facebook, and Twitter feeds are referred to collectively as ________. Answer: customer engagement Question9 Marks: 1 Research shows that the two most important factors shaping the decision to purchase online are utility and trust. Answer: True False Question10 Marks: 1 ________ occurs when a new venue for selling products or services threatens to destroy existing venues. Answer: Channel conflict Question12 Marks: 1 The ________ is a mapping of all significant online social relationships. Answer:
  • 305. social graph Question13 Marks: 1 A consumer's decision to purchase from a particular store because of the wide variety and number of products available is called the ________ effect. Answer: liabrary Question14 Marks: 1 Which of the following is an example of an indirect reference group? Choose one answer. a. social class b. family c. religion d. profession Question15 Marks: 1 All of the following are important clickstream behavior factors except: Choose one answer. a. the number of days since last visit. b. the speed of clickstream behavior. c. the amount of personal information supplied.
  • 306. d. the number of advertisements viewed. Question16 Marks: 1 For a Web site that has 5 million visitors a month, and where on average, a visitor makes 10 page requests per visit, there will be ________ entries in the transaction log each month. Choose one answer. a. 50 b. 500,000 c. 5 million d. 50 million Question17 Marks: 1 All of the following are fixed price strategies except: Choose one answer. a. bundling. b. versioning. c. free pricing. d. yield management. Question18 Marks: 1 Which of the following types of online market segmentation and targeting involves tracking the actions users take on a Web site? Choose one answer.
  • 307. a. technical b. behavioral c. contextual d. psychographic Question20 Marks: 1 On average, which of the following activities was most frequently engaged in by Internet users in 2012? Choose one answer. a. checking the weather b. banking online c. buying a product d. rating a product 2 1 Marks: 1 All of the following are traditional online marketing tools except: Choose one answer. a. affiliate marketing. b. permission marketing.
  • 308. c. social marketing. d. sponsorship marketing. Question2 Marks: 1 Evidence suggests that real-time customer chat increases sales. Answer: True False Question3 Marks: 1 Conversations between a firm and the consumers of its products in various forums such as blogs, Facebook, and Twitter feeds are referred to collectively as ________. Answer: customer engagement Question4 Marks: 1 Which of the following age groups has the highest percentage of Internet access? Choose one answer. a. 18-29 b. 30-49 c. 50-64 d. 65+ Question5 Marks: 1 On average, which of the following activities was most frequently engaged in by Internet users in 2012?
  • 309. Choose one answer. a. checking the weather b. banking online c. buying a product d. rating a product Question6 Marks: 1 The marketing technique known as ________ involves merchants offering products or services for a very low price for a short period of time. Choose one answer. a. search engine marketing b. flash marketing c. yield management d. bait-and-switch Question7 Marks: 1 A consumer's decision to purchase from a particular store because of the wide variety and number of products available is called the ________ effect. Answer: liabrary Question9 Marks: 1 A person's profession or occupation is part of their:
  • 310. Choose one answer. a. indirect reference group. b. direct reference group. c. lifestyle group. d. subculture. Question10 Marks: 1 Creating multiple variations of information goods and selling these to different market segments at different prices is called: Choose one answer. a. bundling. b. customization. c. dynamic pricing. d. versioning. Question11 Marks: 1 Online shoppers tend to browse for available products rather than search for specific products they have determined in advance. Answer: True False Question12 Marks: 1 Specialized marketing firms called ________ sell ad opportunities from a range of participating sites that receive payment for displaying ads. Answer:
  • 311. Advertising Netw orks Question13 Marks: 1 Versioning involves selling the same product at different prices. Answer: True False Question14 Marks: 1 The broadest factor in consumer behavior is: Choose one answer. a. culture. b. gender. c. education. d. psychological background. Question15 Marks: 1 Which of the following is the top concern of Internet users about purchasing online? Choose one answer. a. inability to see and touch before buying b. difficulty of returning products c. shipping costs
  • 312. d. inability to speak to sales assistant in person Question16 Marks: 1 Which of the following is not a social marketing technique? Choose one answer. a. Pinterest marketing b. app marketing c. game marketing d. video marketing Question17 Marks: 1 Which of the following is an example of an indirect reference group? Choose one answer. a. social class b. family c. religion d. profession Question18 Marks: 1 On a typical day, approximately ________ percent of adult users in the United States logs on to the Internet. Choose one answer.
  • 313. a. 52 b. 62 c. 72 d. 82 Question19 Marks: 1 In modeling online consumer behavior, consumer skills refers to the: Choose one answer. a. education level of the consumer. b. communication skills of the consumer. c. knowledge consumers have about how to conduct online transactions. d. product evaluation skills of the consumer. Question20 Marks: 1 Price is the top factor in online purchase decisions. Answer: True False
  • 314. Chap 9 1.0 In the United States, banks, insurance firms, and brokerage firms are prohibited from having significant financial interests in one another False 1. What is the largest sector of the online travel services market in terms of revenue? airline reservations 2. All of the following are challenges for catalog merchants except: building sophisticated order entry and fulfillment systems. 3. All of the following are strategic factors that pertain specifically to a firm and its related businesses except : power of customers. 4. Which of the following sectors of the U.S. retail industry is the largest? consumer durables 5. The term demand-pull refers to: waiting for orders to be received before building a product. 6. Operating margin is defined as: operating income or loss divided by net sales revenues. 7. Which of the following is not an example of a transaction broker?
  • 315. an accountant 8. Which of the following is not categorized as an operating expense? the cost of products being sold 9. All of the following services require extensive personalization except: financial services. 10. Which of the following statements about financial portals is not true? Their strategy is similar to that of large banking institutions. 11. Which of the following is not a key industry strategic factor? synergies 12. Which of the following segments of the U.S. retail industry is the smallest? online retail 13. Gross margin is defined as gross profit: divided by net sales revenues. 14. The lower the cost of sales compared to ________, the higher the gross profit. revenue
  • 316. 15. Consumers are not primarily price-driven when shopping on the Internet. True 16. All of the following statements about Amazon.com are true except: Amazon has achieved success by focusing on its primary mission: selling books at highly competitive prices. 17. Within the U.S. retail goods and services market, personal consumption of ________ accounts for the largest share. services 18. In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized Web site. account aggregation 19. For a quick check of a firm's short-term financial health, examine its: working capital. 20. In the United States, the service sector accounts for about 75 percent of all economic activity. True 21. Almost 80 million households now use online banking. False
  • 317. 22. Which of the following would not be considered a current asset? long-term investments 23. For which online services segment is more revenue booked online than offline? travel services 24. Which of the following has experienced the most significant online growth? offline general merchandisers 25. Which of the following segments of the U.S. retail market is highly concentrated, with large firms dominating sales? general merchandise 26. Mobile commerce currently accounts for more retail goods sold than social commerce. True 27. Which of the following is not one of the methods used by traditional retailers to develop multi-channel integration? online supply-push 28. All of the following products are considered durable goods except: clothing.
  • 318. 29. Current liabilities are debts of the firm that will be due within: one year. 30. Virtual merchants face potentially large costs for all of the following except: building and maintaining physical stores. 31. All of the following are challenges faced by bricks-and-clicks firms except: building a brand name. 32. Which of the following is not one of the central challenges facing the online retail industry? lack of physical store presence 33. What is another name for pro forma earnings? earnings before income taxes, depreciation, and amortization (EBITDA) 34. Contrary to predictions of analysts made during the early days of e-commerce, the Internet has led to both disintermediation and hypermediation on a widespread basis. False 35. All of the following statements are true except: the MOTO sector is also called the general merchandise sector. 36. Groupon is an example of local commerce.
  • 319. True 37. All of the following are trends in the financial service industry except: pure online banks are displacing established multi-channel firms. 38. Which of the following companies is not primarily a catalog merchant? Walmart 39. Craigslist is a player in which of the following online services market? Real estate services and career services 40. All of the following were parts of the vision during the early days of e-commerce except the belief New, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business that: 41. All of the following are strategic factors that pertain specifically to a firm and its related businesses except: power of customers. 42. All of the following were factors that precipitated the growth of MOTO except: the growth of the cellular phone industry. 43. All of the following statements about the online real estate services market are true except: The Internet and e-commerce have created significant disintermediation in the real estate marketplace. 44. Which of the following segments of the U.S. retail market is highly concentrated, with large firms dominating sales? general merchandise 45. Which of the following segments of the U.S. retail industry is the smallest?
  • 320. Online retail 46. All of the following services require extensive personalization except: Financial services. 47. All of the following are challenges for catalog merchants except: Building sophisticated order entry and fulfillment systems. 48. The top 15 retailers account for about ________ percent of all online retail. 45 49. Personal consumption of retail goods and services accounts for approximately ________ of the U.S. GDP. $11 trillion 50. Which of the following statements is not true? Online travel services is one of the few sectors in which extensive disintermediation has occurred. 51. All of the following are advantages of online retail except: Faster delivery of goods. 52. The average annual amount spent online by users in 2011 was approximately: $1300. 53. Which of the following is not an example of a transaction broker? An accountant 54. Approximately ________ percent of the U.S. labor force is involved in providing services.
  • 321. 80 55. Which of the following is not a major trend in online retail for 2011-2012? Retail intermediaries continue to weaken in all areas. 56. All of the following statements about the online insurance industry are true except: the Internet has dramatically changed the insurance industry's value chain. 57. Which of the following is not a major trend in the online recruitment services industry? disintermediation 58. All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: high cost structures. 59. In 2011, online retail sales revenues were approximately: $18.8 billion. 60. _______ refers to the ability of firms to survive as profitable business firms during the specified period. Economic viability 61. ________ are sites that provide consumers with comparison shopping services, independent financial advice, and financial planning. Financial portals 62. If a firm's ________ is only marginally positive, or negative, the firm will likely have trouble meeting its short-term obligations. working capital 63. ____ goods are consumed quickly and have shorter life spans.
  • 322. Nondurable goods 64. Consumers are primarily price-driven when shopping on the Internet. False 65. The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line? term life insurance 66. The United States Department of Labor defines ________ occupations as "concerned with performing tasks" in and around households, business firms, and institutions. I don’t know the answer  67. In a ________ model, products are made prior to orders received based on estimated demand. supply-push 68. The four major sectors in the travel market are airline tickets, hotel reservations, cruises/tours, and ________. Car rentals 69. Online retailing is one of the largest segments of the retail industry . False 70. The retail industry is the largest investor in information technology . False 71. ____ measures the percentage of sales revenue a firm is able to retain after all expenses are deducted from gross revenues. Net margin
  • 323. 72. Which of the following best explains why the service sector is a natural avenue for e-commerce? Much of the value in services is based on the collection, storage, and exchange of information. 73. Online career sites are being threatened by both job search engines and aggregators. True 74. Which of the job recruitment sites is a job site aggregator? SimplyHired 75. In 2012, the number of online buyers was around 150 million. True 76. In the United States, banks, insurance firms, and brokerage firms are prohibited from having significant financial interests in one another. False 77. Online retailing provides an example of the powerful role that intermediaries continue to play in retail trade. True 78. In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized Web site. account aggregation 79. Also called bricks-and-clicks merchants, ________ companies have a network of physical stores as their primary retail channel but also have introduced online offerings. multi-channel 80. Thus far, the most successful and innovative pure-play online retailer is ________. Amazon.com
  • 324. 81. Which of the following is not a major trend in online retail for 2012-2013? Online retailing is the fastest growing retail channel. 82. ________ provide integrated airline, hotel, conference center, and auto rental services at a single Web site. Corporate online booking solutions (COBS) 83. In a ________ strategy, traditional merchants combine their offline retail and online retail stores and services to provide a seamless customer experience. Multi-Channel Integration 84. A(an) ________ is a single channel Web firm that generates almost all its revenues from online sales. Virtual merchants 85. The MOTO sector of the retail industry is most similar to the ________ sector. online retail sales 86. Within the United States retail goods and services market, personal consumption of ________ accounts for the largest share. Services 87. Which of the following sectors of the United States retail industry is the largest? Consumer durables 88. The top 25 retailers account for about ________ percent of all online retail. 60 1 Marks: 1 The term demand-pull refers to:
  • 325. Choose one answer. a. making products prior to orders being received based on estimated demand. b. waiting for orders to be received before building a product. c. channel conflict. d. multi-channel manufacturers who sell directly online to consumers. Correct Marks for this submission: 1/1. Question2 Marks: 1 Craigslist is a player in which of the following online services market? Choose one answer. a. real estate services and career services b. insurance services and brokerage services c. travel services d. online accounting services Correct
  • 326. Marks for this submission: 1/1. Question3 Marks: 1 All of the following were parts of the vision during the early days of e-commerce except the belief that: Choose one answer. a. new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business. b. Web consumers were rational and cost-driven. c. entry costs to the online retail market would be much less than those needed to establish a physical storefront. d. the cost of acquiring customers would be much lower. Question4 Marks: 1 All of the following are strategic factors that pertain specifically to a firm and its related businesses except: Choose one answer. a. core competencies. b. synergies.
  • 327. c. technology. d. power of customers. Correct Marks for this submission: 1/1. Question5 Marks: 1 All of the following were factors that precipitated the growth of MOTO except: Choose one answer. a. the national toll-free call system. b. the growth of the cellular phone industry. c. falling long distance telecommunications prices. d. the growth of the credit card industry. Correct Marks for this submission: 1/1. Question6 Marks: 1 All of the following statements about the online real estate services market are true except:
  • 328. Choose one answer. a. the major impact of Internet real estate sites is in influencing offline decisions. b. real estate differs from other types of online financial services because it is impossible to complete a property transaction online. c. the primary service offered by real estate sites is a listing of houses available. d. the Internet and e-commerce have created significant disintermediation in the real estate marketplace. Correct Marks for this submission: 1/1. Question7 Marks: 1 Which of the following segments of the U.S. retail market is highly concentrated, with large firms dominating sales? Choose one answer. a. food and beverage b. online retail c. MOTO d. general merchandise
  • 329. Correct Marks for this submission: 1/1. Question8 Marks: 1 Which of the following segments of the U.S. retail industry is the smallest? Choose one answer. a. consumer durables b. gasoline and fuel c. specialty stores d. online retail Correct Marks for this submission: 1/1. Question10 Marks: 1 All of the following are challenges for catalog merchants except: Choose one answer. a. high costs of printing and mailing.
  • 330. b. building a creditable Web site. c. the need to bring staff in or manage new technology. d. building sophisticated order entry and fulfillment systems. Correct Marks for this submission: 1/1. 1 Marks: 1 Which of the following statements about financial portals is not true? Choose one answer. a. They do not offer financial services. b. They add to the online price competition in the finance industry. c. Their strategy is similar to that of large banking institutions. d. They make their money from advertising, referral fees, and subscription fees. Correct Marks for this submission: 1/1.
  • 331. Question2 Marks: 1 The top 15 retailers account for about ________ percent of all online retail. Choose one answer. a. 85 b. 66 c. 45 d. 25 Correct Marks for this submission: 1/1. Marks for this submission: 1/1. Question4 Marks: 1 Virtual merchants face potentially large costs for all of the following except: Choose one answer. a. building and maintaining a Web site.
  • 332. b. building and maintaining physical stores. c. building an order fulfillment infrastructure. d. developing a brand name. Correct Marks for this submission: 1/1. Question6 Marks: 1 Which of the following statements is not true? Choose one answer. a. Price competition among online travel services is difficult as comparison shopping for better prices is easy. b. Online travel services is one of the few sectors in which extensive disintermediation has occurred. c. The ability of travel products and services to be commoditized is a significant factor in the explosive growth of the online travel services industry. d. The online travel services industry has gone through a period of consolidation. Correct Marks for this submission: 1/1.
  • 333. Question7 Marks: 1 The lower the cost of sales compared to ________, the higher the gross profit. Choose one answer. a. assets b. revenue c. gross margin d. operating expenses Correct Marks for this submission: 1/1. Question8 Marks: 1 All of the following are advantages of online retail except: Choose one answer. a. lower supply chain costs. b. lower cost of distribution.
  • 334. c. ability to change prices. d. faster delivery of goods. Correct Marks for this submission: 1/1. Question10 Marks: 1 Which of the following is not an example of a transaction broker? Choose one answer. a. a stockbroker b. a real estate agent c. an accountant d. an employment agency Correct Marks for this submission: 1/1. Marks: 1
  • 335. All of the following statements about Amazon.com are true except: Choose one answer. a. Amazon has achieved success by focusing on its primary mission: selling books at highly competitive prices. b. Amazon compensates for its low price strategy by focusing on operating expenses and eliminating marketing in offline media. c. eBay can be considered a competitor of Amazon's. d. the Kindle is the best selling product in Amazon's history. Correct Marks for this submission: 1/1. Marks: 1 Which of the following would not be considered a current asset? Choose one answer. a. long-term investments b. cash c. accounts receivable
  • 336. d. marketable securities Correct Marks for this submission: 1/1. 10 Marks: 1 Gross margin is defined as gross profit: Choose one answer. a. minus total operating expenses. b. divided by net sales revenues. c. divided by cost of sales. d. minus net income. Correct Marks for this submission: 1/1. Marks: 1 Which of the following is not a key industry strategic factor? Choose one answer.
  • 337. a. synergies b. barriers to entry c. power of suppliers d. existence of substitute products Correct Marks for this submission: 1/1. Marks: 1 All of the following statements about the online insurance industry are true except: Choose one answer. a. the Internet has dramatically changed the insurance industry's value chain. b. Web sites of almost all the major firms provide the ability to obtain an online quote. c. Internet usage has lead to a decline in term life insurance prices industrywide. d. the industry has been very successful in attracting visitors searching for information. Correct
  • 338. Marks for this submission: 1/1. Question5 Marks: 1 Current liabilities are debts of the firm that will be due within: Choose one answer. a. three months. b. six months. c. one year. d. two years. Correct Marks for this submission: 1/1. Marks: 1 Personal consumption of retail goods and services accounts for approximately ________ of the U.S. GDP. Choose one answer. a. $11 billion b. $110 billion
  • 339. c. $1.1 trillion d. $11 trillion Which of the following is not a major trend in the online recruitment services industry? Choose one answer. a. disintermediation b. localization c. social networking d. consolidation Correct Marks for this submission: 1/1. What is another name for pro forma earnings? Choose one answer. a. net margin b. operating income c. earnings before income taxes, depreciation, and amortization (EBITD
  • 340. d. generally accepted accounting principles (GAAP) earnings Correct Marks for this submission: 1/1. Question6 Marks: 1 All of the following are trends in the financial service industry except: Choose one answer. a. industry consolidation. b. integrated financial services. c. pure online banks are displacing established multi-channel firms. d. growth of online personal banking. Correct Marks for this submission: 1/1. All of the following are challenges faced by bricks-and-clicks firms except: Choose one answer. a. coordinating prices across channels.
  • 341. b. handling returns of Web purchases at retail outlets. c. building a credible Web site. d. building a brand name. Correct Marks for this submission: 1/1. Question9 Marks: 1 What is the largest sector of the online travel services market in terms of revenue? Choose one answer. a. hotel reservations b. car reservations c. cruise/tour reservations d. airline reservations Correct Marks for this submission: 1/1. Question10
  • 342. Marks: 1 In 2011, online retail sales revenues were approximately: Choose one answer. a. $1.88 billion. b. $18.8 billion. c. $188 billion. d. $1.88 trillion. Correct Question 4 Marks: 1 Which of the following would not be considered a current asset? Choose one answer. a. cash b. accounts receivable c. marketable securities d. long-term investments Correct Question 7 Marks: 1 The major impact of Internet real estate sites is in enabling online-only property transactions.
  • 343. Answer: True False Correct Marks for this submission: 0/1. Question 8 Marks: 1 All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: Choose one answer. a. moving to a supply-push model. b. channel conflict. c. developing a fast-response online order and fulfillment system. d. high cost structures. Correct Marks for this submission: 1/1. Question 9 Marks: 1 Which of the following best explains why the service sector is a natural avenue for e-commerce? Choose one answer. a. Much of the value in services is based on the collection, storage, and exchange of information. b. The service sector is less geographically reliant and more globally oriented. c. It is not; services are difficult to translate to e-commerce because they rely on face-to-face communication and barter. d. The service sector has historically been more technology-reliant. Correct Marks for this submission: 1/1. Question 10 Marks: 1 A(an) ________ provides a financial snapshot of a company's assets and liabilities (debts) on a given date. Answer:
  • 344. balance sheet Correct Marks for this submission: 1/1. Question 11 Marks: 1 The power of suppliers is a key industry strategic factor. Answer: True False Correct Marks for this submission: 1/1. Question 13 Marks: 1 All of the following statements about Amazon.com are true except: Choose one answer. a. Amazon compensates for its low price strategy by focusing on operating expenses and eliminating marketing in offline media. b. Amazon has achieved success by focusing on its primary mission- selling books at highly competitive prices. c. eBay can be considered a competitor of Amazon's. d. The Kindle is the best-selling product in Amazon's history. Correct Marks for this submission: 1/1. Question 14 Marks: 1 All of the following statements are true except: Choose one answer. a. Distribution of catalogs is one of MOTO retailers' biggest expenses. b. MOTO was the last technological revolution that preceded e-commerce. c. The MOTO sector is also called the general merchandise sector. d. Compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms.
  • 345. Correct Marks for this submission: 1/1. Question 15 Marks: 1 The online mortgage industry has transformed the process of obtaining a mortgage. Answer: True False Correct Marks for this submission: 1/1. Which of the following segments of the United States retail market is highly concentrated, with large firms dominating sales? Choose one answer. a. MOTO b. food and beverage c. general merchandise d. online retail Correct Marks for this submission: 0/1. Question 2 Marks: 1 Which of the following has experienced the most significant online growth? Choose one answer. a. catalog merchants b. manufacturer-direct firms c. virtual merchants d. offline general merchandisers Correct Marks for this submission: 1/1. Question 3
  • 346. Marks: 1 To improve shipment and delivery, Amazon has used all of the following techniques except: Choose one answer. a. sending pre-posted packages to United States Postal System centers. b. optimizing the size of shipments. c. establishing pick-up centers for pickup and delivery of commonly ordered goods. d. increasing its number of warehouses. Correct Marks for this submission: 0/1. Question 4 Marks: 1 In the United States, the service sector accounts for about 75 percent of all economic activity. Answer: True False Correct Marks for this submission: 1/1. Question 5 Marks: 1 The term demand-pull refers to: Choose one answer. a. making products prior to orders being received based on estimated demand. b. channel conflict. c. multi-channel manufacturers who sell directly online to consumers. d. waiting for orders to be received before building a product. Correct Marks for this submission: 1/1. Question 6 Marks: 1 In 2012, online retail sales revenues were approximately:
  • 347. Choose one answer. a. $22.4 billion. b. $224 billion. c. $2.24 trillion. d. $2.24 billion. Correct Marks for this submission: 1/1. Question 9 Marks: 1 Which of the following best explains why the service sector is a natural avenue for e-commerce? Choose one answer. a. The service sector is less geographically reliant and more globally oriented. b. The service sector has historically been more technology-reliant. c. It is not; services are difficult to translate to e-commerce because they rely on face-to-face communication and barter. d. Much of the value in services is based on the collection, storage, and exchange of information. Correct Marks for this submission: 1/1. Question 10 Marks: 1 The MOTO sector of the retail industry is most similar to the ________ sector. Choose one answer. a. specialty stores b. general merchandise c. product-based services d. online retail sales Correct Marks: 1
  • 348. Which of the following is not a key industry strategic factor? Choose one answer. a. synergies b. existence of substitute products c. barriers to entry d. industry value chain Correct Marks for this submission: 1/1. Question 13 Marks: 1 Online career sites are being threatened by both job search engines and aggregators. Answer: True False Correct Marks for this submission: 1/1. Question 14 Marks: 1 All of the following statements are true except: Choose one answer. a. Compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms. b. The MOTO sector is also called the general merchandise sector. c. Distribution of catalogs is one of MOTO retailers' biggest expenses. d. MOTO was the last technological revolution that preceded e-commerce. Correct Marks for this submission: 1/1. Question 15 Marks: 1 The online mortgage industry has transformed the process of obtaining a mortgage. Answer:
  • 349. True False Correct Marks for this submission: 1/1. Marks: 1 Which of the following is not a benefit of carving up a single, global B2B platform into product and region-centered systems? Choose one answer. a. greater adaptability b. lower risk c. lower cost d. lower complexity Correct Marks for this submission: 0/1. Question 7 Marks: 1 Demand chain visibility is one goal of collaborative commerce. Answer: True False Correct Marks for this submission: 1/1. Marks: 1 Office supplies are an example of: Choose one answer. a. indirect goods. b. MRO goods. c. distributed goods. d. direct goods. Correct
  • 350. - In a ________ model, products are made prior to orders received based on estimated demand. - supply-push - The United States Department of Labor defines ________ occupations as "concerned with performing tasks" in and around households, business firms, and institutions. - service Chap 12 1. An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis. e-distributor 2. ________ systems are corporate-wide systems that relate to all aspects of production. Enterprise 3. All of the following are methods of classifying Net marketplaces except: by technology used. 4. Which of the following is not a major trend in B2B e-commerce in 2012-2013? decreased growth of B2B e-commerce due to the recession 5. ________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location. Tight coupling 6. The last step in the procurement process is: sending a remittance payment 7. An ________ primarily serves businesses that primarily buy direct goods on a contract purchasing basis. industry consortium
  • 351. 8. An example of an indirect good in the fast-food industry is: fax paper 9. ________ services include automation of a firm's entire procurement process on the buyer side and automation of the selling business processes on the seller side. Value chain management 10. None of the following statements about EDI are true except: EDI is a communications standard for sharing business documents. 11. Which of the following was the first step in the development of B2B commerce? automated order entry systems 12. Which of the following primarily serve horizontal markets? e-distributors and e-procurement Net marketplaces 13. The cost of participating in B2B e-commerce systems has fallen significantly. True 14. EDI transactions total about ________ percent of all B2B e-commerce in 2011. 35 15. Exchanges tend to be biased toward the seller even though they are independently owned and presumably neutral. False 16. All of the following are true about collaborative commerce systems except: They are open, competitive marketplaces 17. ________ is another name for transorganizational business processes.
  • 352. Collaborative commerce 18. An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis. Exchange 19. ________ is a call for business to take social and ecological interests, and not just corporate profits, into account in all their decision-making throughout the firm. Sustainable business 20. Net marketplaces focus on continuous business process coordination between companies while private industrial networks are primarily transaction-based. True 21. An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers. e-distributor 22. Which of the following primarily involve long-term sourcing? e-procurement Net marketplaces and industry consortia 23. Exchanges have failed primarily because: suppliers have refused to join them 24. A ________ supply chain includes a company's secondary and tertiary suppliers. multi-tier 25. Which of the following was the first step in the development of B2B commerce? automated order entry systems 26. Demand chain visibility is one goal of collaborative commerce. True
  • 353. 27. An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers. e-distributor 28. VWGroupSupply.com is an example of ane-procurement Net marketplace 29. ________ is another name for transorganizational business processes. Collaborative commerce 30. The bias of industry consortia is toward large buyers. True 31. All of the following are weaknesses of EDI except: EDI lacks universal standards. 32. What is the first step in the procurement process? search for suppliers 33. E-distributors operate in horizontal markets. True 34. Which of the following is not a characteristic of the use of social networks in B2B e-commerce? They are always private. 35. Industry consortia are usually owned collectively by the major firms participating in the consortia, while private industrial networks usually are created by a single sponsoring company. True 36. ________ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers. Spot
  • 354. 37. The topology of EDI systems is often referred to as a ________ system, with the buyers in the center and the suppliers connected to the center via private dedicated networks. hub-and-spoke 38. ________ is defined as the use of digital technologies to permit organizations to work together to design, develop, build, and manage products through their life cycles. Collaborative commerce 39. Analysts predict that B2B e-commerce in the United States will grow by 2016 to approximately: $5.6 trillion 40. ________ is a call for business to take social and ecological interests, and not just corporate profits, into account in all their decision-making throughout the firm. sustainable business 41. Demand chain visibility is one goal of collaborative commerce. True 42. A ________ supply chain is one in which the labor conditions in low-wage, underdeveloped producer countries are visible and morally acceptable to ultimate consumers in more developed industrial societies. accountable 43. Which of the following was the first step in the development of B2B commerce? automated order entry systems 44. Which of the following does not have a primary impact on the liquidity of a market? price transparency 45. The last step in the procurement process is: sending a remittance payment
  • 355. 46. Net marketplaces focus on continuous business process coordination between companies while private industrial networks are primarily transaction-based. False 47. A ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems. SCM 48. ________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location. Tight coupling 49. The essential characteristic of ________ is that they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade. Net marketplaces 50. ________ systems are generally older computer systems used to manage key business processes in a firm. Legacy computer 51. Collaborative commerce is primarily concerned with the development of a rich communications environment. True 52. An e-procurement Net marketplace is sometimes referred to as a: many-to-many market 53. All of the following are forms of collaboration among businesses except: RFQs
  • 356. 54. The majority of interfirm trade involves: contract purchasing of direct goods 55. Which of the following is not a major trend in B2B e-commerce in 2012-2013? decreased growth of B2B e-commerce due to the recession 56. E-distributors operate in horizontal markets. True 57. Private industrial networks typically involve manufacturing and related support industries. True 58. ________ is defined as the use of digital technologies to permit organizations to work together to design, develop, build, and manage products through their life cycles. Answer: Collaborative commerce 59. Private industrial networks are the most prevalent form of Internet-based B2B commerce. True 60. EDI began as a ________ system. document automation 61. Which of the following is an example of an e-procurement Net marketplace? Ariba 62. Most industry groups are moving toward which language for expressing EDI documents and communications? XML 63. Which of the following is not an objective of a private industrial network? obtaining equity participation in the network from other major firms in the industry
  • 357. 64. Virtually all firms, both large and small, now use Electronic Data Interchange (EDI) systems. False 65. In 2012, the total amount of B2B e-commerce in the United States was approximately: $4.1 trillion 66. Exchanges have proven successful in providing additional value-added services that transform the value chain for the entire industry. False 67. Which of the following is not a typical barrier to the implementation of a private industrial network? It requires the large network owners to give up some of its independence. 68. All of the following are major developments in supply chain management except: the elimination of legacy computer systems 69. Industry consortia are sometimes referred to as: many-to-few markets 70. The topology of EDI systems is often referred to as a ________ system, with the buyers in the center and the suppliers connected to the center via private dedicated networks. Net marketplace 71. Which of the following is a method of inventory cost management that seeks to eliminate excess inventory? just-in-time production 72. Which of the following is the fastest growing form of online B2B e-commerce? private industrial networks
  • 358. 73. Enterprise systems are corporate-wide systems that relate to various aspects of production such as finance, human resources, and procurement. True 74. ________ is a set of production methods that focuses on the elimination of waste throughout the customer value chain. Lean production 75. Which of the following terms refers to the total flow of value among firms? total interfirm trade 76. The four main types of Net marketplaces are e-distributors, e-procurement networks, exchanges, and ________. Industry consortia 77. Regional supply chains provide lower short term costs, but higher, longer term risk protection. False 78. MRO goods are also known as indirect goods. True 79. A ________ market is one that provides expertise and products for a specific industry, such as automobiles. Vertical 80. ______Contract__ purchasing involves long-term written agreements to purchase specified products, with agreed-upon terms and quality, for an extended period of time. 81. Automated order entry systems are ________ solutions. seller-side
  • 359. 82. Each corporate purchase order for support products costs, on average, at least ________ in administrative overhead. $100 83. Which of the following was not a development in the second stage of EDI's evolution? replacement of the postal system 84. All of the following are methods of classifying Net marketplaces except: by technology used. 85. All of the following are elements of a collaborative commerce system except: RFID tags 86. Which of the following is not a pricing mechanism typically used by Net marketplaces? utilization pricing 87. In 2011, the total amount of B2B trade in the United States was approximately: $16 trillion 88. An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment. Exchange 89. Private industrial networks are direct descendants of: existing EDI networks 90. All of the following statements about EDI are true except:
  • 360. EDI systems generally serve horizontal markets. 91. All of the following are major developments in supply chain management except: materials requirement planning 92. All of the following are potential benefits of B2B e-commerce except: lower price transparency. 93. Which of the following was the first step in the development of B2B commerce? automated order entry systems 94. Which of the following was not a development in the second stage of EDI's evolution? replacement of the postal system 95. The term B2B commerce refers to all types of computer-enabled interfirm trade True 96. Which of the following terms refers to the total flow of value among firms? total interfirm trade 97. Private industrial networks are the largest form of B2B e-commerce. True 98. Which of the following does not have a primary impact on the liquidity of a market: price transparency 1___Spot____ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers. 2_____legacy computer ___ systems are generally older computer systems used to manage key business processes in a firm.
  • 361. 3_____Collaborative_commerce__ is defined as the use of digital technologies to permit organizations to work together to design, develop, build, and manage products through their life cycles. 4 An ___exchange____ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment. 8 Marks: 1 Demand chain visibility is one goal of collaborative commerce. Answer: True False 9 Marks: 1 Enterprise systems are corporate-wide systems that relate to various aspects of production such as finance, human resources, and procurement. Answer: True False 10 Marks: 1 All of the following are forms of collaboration among businesses except: Choose one answer. a. RFQs.
  • 362. b. CPFR. c. demand chain visibility. d. marketing coordination and product design. 11 Marks: 1 __Enterprise______ systems are corporate-wide systems that relate to all aspects of production. 12 Marks: 1 Exchanges tend to be biased toward the seller even though they are independently owned and presumably neutral. Answer: True False 13 Marks: 1 An e-procurement Net marketplace is sometimes referred to as a: Choose one answer. a. one-to-one market. b. one-to-many market.
  • 363. c. many-to-few market. d. many-to-many market. 14 Marks: 1 Exchanges have proven successful in providing additional value-added services that transform the value chain for the entire industry. Answer: True False 17 Marks: 1 E-distributors operate in horizontal markets. Answer: True False 18 Marks: 1 A _____supply chain management___ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems. 20 Marks: 1
  • 364. _Lean production_______ is a set of production methods that focuses on the elimination of waste throughout the customer value chain. Answer: 1 Marks: 1 All of the following statements about e-distributors are true except: Choose one answer. a. e-distributors make money by charging a mark-up on products they distribute. b. e-distributors usually operate "private" markets. c. e-distributors operate in horizontal markets. d. e-distributor prices are usually fixed. 2 Marks: 1 Which of the following is the fastest growing form of online B2B e-commerce? Choose one answer. a. e-distributors b. exchanges
  • 365. c. private industrial networks d. industry consortiums 4 Marks: 1 EDI began as a ________ system. Choose one answer. a. document automation b. document elimination c. continuous replenishment d. MRP 5 Marks: 1 Which of the following is not a typical barrier to the implementation of a private industrial network? Choose one answer. a. It requires participating firms to share sensitive data.
  • 366. b. It requires the large network owners to give up some of its independence. c. It requires a significant investment of time and money. d. It requires a change of mind-set and behavior of employees. 7 Marks: 1 Net marketplaces focus on continuous business process coordination between companies while private industrial networks are primarily transaction-based. Answer: True False 9 Marks: 1 _Sustainable business_______ is a call for business to take social and ecological interests, and not just corporate profits, into account in all their decision-making throughout the firm. Answer: 12 Marks: 1 ______Contract__ purchasing involves long-term written agreements to purchase specified products, with agreed-upon terms and quality, for an extended period of time.
  • 367. Answer: 13 Marks: 1 Private industrial networks typically involve manufacturing and related support industries. Answer: True False 15 Marks: 1 Most industry groups are moving toward which language for expressing EDI documents and communications? Choose one answer. a. HTML b. XML c. Java d. SQL 16 Marks: 1 ________ is another name for transorganizational business processes. Choose one answer.
  • 368. a. Supply chain management b. Collaborative commerce c. B2B e-commerce d. Value chain management 17 Marks: 1 The four main types of Net marketplaces are e-distributors, e-procurement networks, exchanges, and industry consortia________. Answer: 18 Marks: 1 The bias of industry consortia is toward large buyers. Answer: True False 19 Marks: 1 An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis. Choose one answer.
  • 369. a. e-distributor b. e-procurement Net marketplace c. exchange d. industry consortium 20 Marks: 1 ___Private undustrial networks_____ can be viewed as "extended enterprises" in the sense that they often begin as ERP systems in a single firm and are then expanded to include the firm's major suppliers. 1 Marks: 1 An ________ is an independently owned intermediary connecting hundreds of online suppliers offering millions of maintenance and repair products to business firms that pay fees to join the market. Choose one answer. a. e-distributor b. e-procurement Net marketplace c. exchange
  • 370. d. industry consortium Correct Marks for this submission: 1/1. Question2 Marks: 1 The last step in the procurement process is: Choose one answer. a. sending a remittance payment. b. sending the invoice. c. shipping the goods. d. delivering the goods. Correct Marks for this submission: 1/1. Question3 Marks: 1 Automated order entry systems are ________ solutions. Choose one answer.
  • 371. a. buyer-side b. seller-side c. hub-and-spoke d. distributed Correct Marks for this submission: 1/1. Question4 Marks: 1 Industry consortia are sometimes referred to as: Choose one answer. a. many-to-many markets. b. many-to-few markets. c. one-to-one markets. d. one-to-many markets. Correct Marks for this submission: 1/1.
  • 372. Question5 Marks: 1 Which of the following primarily involve long-term sourcing? Choose one answer. a. e-distributors and exchanges b. e-distributors and industry consortia c. e-procurement Net marketplaces and exchanges d. e-procurement Net marketplaces and industry consortia Correct Marks for this submission: 1/1. Question6 Marks: 1 Each corporate purchase order for support products costs, on average, at least ________ in administrative overhead. Choose one answer. a. $10 b. $25
  • 373. c. $75 d. $100 Correct Marks for this submission: 1/1. Question7 Marks: 1 Which of the following was not a development in the second stage of EDI's evolution? Choose one answer. a. continuous fulfillment of orders b. replacement of the postal system c. elimination of purchase orders d. use of monthly statements and precisely scheduled delivery times Correct Marks for this submission: 1/1. Question8 Marks: 1 All of the following are methods of classifying Net marketplaces except:
  • 374. Choose one answer. a. by technology used. b. by pricing mechanism used. c. by type of goods sold. d. by type of purchasing used. Correct Marks for this submission: 1/1. Question9 Marks: 1 ________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location. Choose one answer. a. CAD b. Tight coupling c. Supply-chain management d. Materials requirement planning Correct
  • 375. Marks for this submission: 1/1. Question10 Marks: 1 All of the following are elements of a collaborative commerce system except: Choose one answer. a. central data repository. b. RFID tags. c. workflow engine. d. universal viewer. Correct Marks for this submission: 1/1. 1 Marks: 1 Which of the following is not a pricing mechanism typically used by Net marketplaces? Choose one answer. a. fixed price catalogs
  • 376. b. auctions c. RFPs/RFQs d. utilization pricing Correct Marks for this submission: 1/1. Question2 Marks: 1 Which of the following terms refers to the total flow of value among firms? Choose one answer. a. total interfirm trade b. B2B commerce c. multi-tier exchange d. liquidity Correct Marks for this submission: 1/1. Question3
  • 377. Marks: 1 The last step in the procurement process is: Choose one answer. a. sending a remittance payment. b. sending the invoice. c. shipping the goods. d. delivering the goods. Correct Marks for this submission: 1/1. Question4 Marks: 1 In 2011, the total amount of B2B trade in the United States was approximately: Choose one answer. a. $16 billion. b. $160 billion. c. $1.6 trillion.
  • 378. d. $16 trillion. Correct Marks for this submission: 1/1. Question5 Marks: 1 Analysts predict that B2B e-commerce in the United States will grow by 2015 to approximately: Choose one answer. a. $4.4 billion. b. $44 billion. c. $440 billion. d. $4.4 trillion. Correct Marks for this submission: 1/1. Question6 Marks: 1 An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis. Choose one answer.
  • 379. a. e-distributor b. e-procurement Net marketplace c. exchange d. industry consortium Correct Marks for this submission: 1/1. Question7 Marks: 1 An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment. Choose one answer. a. exchange b. e-distributor c. e-procurement company d. industry consortium Correct
  • 380. Marks for this submission: 1/1. Question8 Marks: 1 Most industry groups are moving toward which language for expressing EDI documents and communications? Choose one answer. a. HTML b. XML c. Java d. SQL Correct Marks for this submission: 1/1. Question9 Marks: 1 Private industrial networks are direct descendants of: Choose one answer. a. e-procurement Net marketplaces.
  • 381. b. existing EDI networks. c. independent exchanges. d. industry consortia. Correct Marks for this submission: 1/1. Question10 Marks: 1 Which of the following primarily deal with indirect goods? Choose one answer. a. e-distributors and industry consortia b. e-distributors and e-procurement Net marketplaces c. exchanges and industry consortia d. exchanges and e-procurement Net marketplaces Correct Marks for this submission: 1/1.
  • 382. Marks: 1 All of the following statements about EDI are true except: Choose one answer. a. EDI is a communications standard for sharing business documents. b. virtually all large firms have EDI systems. c. EDI systems generally serve horizontal markets. d. EDI systems are owned by buyers. Correct Marks for this submission: 1/1. 4 Marks: 1 All of the following are major developments in supply chain management except: Choose one answer. a. supply chain simplification. b. EDI.
  • 383. c. collaborative commerce. d. materials requirement planning. Correct Marks for this submission: 1/1. 2 Marks: 1 Which of the following does not have a primary impact on the liquidity of a market? Choose one answer. a. price transparency b. number of buyers and sellers in market c. volume of transactions d. size of transactions Correct Marks for this submission: 1/1. Question3
  • 384. Marks: 1 EDI transactions total about ________ percent of all B2B e-commerce in 2011. Choose one answer. a. 10 b. 25 c. 50 d. 75 Correct Marks for this submission: 1/1. Question4 Marks: 1 All of the following are potential benefits of B2B e-commerce except: Choose one answer. a. lower administrative costs. b. lower search costs. c. lower price transparency.
  • 385. d. lower transaction costs. Correct Marks for this submission: 1/1. 10 Marks: 1 An example of an indirect good in the fast-food industry is: Choose one answer. a. food-grade paper. b. fax paper. c. beef. d. sugar. Correct Marks for this submission: 1/1. Marks: 1 The majority of interfirm trade involves: Choose one answer.
  • 386. a. spot purchasing of direct goods. b. contract purchasing of indirect goods. c. contract purchasing of direct goods. d. spot purchasing of indirect goods. Correct Marks for this submission: 1/1. Marks: 1 VWGroupSupply.com is an example of an: Choose one answer. a. e-distributor. b. e-procurement Net marketplace. c. exchange. d. industry consortium. Marks for this submission: 0/1. Marks: 1
  • 387. Exchanges have failed primarily because: Choose one answer. a. suppliers have refused to join them. b. buyers have refused to join them. c. the existing markets have had too high liquidity. d. excessive trade value per transaction. Correct Marks for this submission: 1/1. Question8 Marks: 1 Which of the following was the first step in the development of B2B commerce? Choose one answer. a. EDI b. automated order entry systems c. electronic storefronts
  • 388. d. private industrial networks Correct Marks for this submission: 1/1. 1. Each corporate purchase order for support products costs, on average, at least ________ in administrative overhead. $100 2. An ________ primarily serves businesses that primarily buy direct goods on a contract purchasing basis. industry consortium 3. Which of the following was the first step in the development of B2B commerce? automated order entry systems 4. Which of the following was not a development in the second stage of EDI's evolution? replacement of the postal system
  • 389. 5. A single supplier making an online catalog of products available to the public marketplace is called a(n): B2B electronic storefront. 6. Automated order entry systems are ________ solutions. seller-side 7. Which of the following primarily serve horizontal markets? e-distributors and e-procurement Net marketplaces 8. The last step in the procurement process is: sending a remittance payment. 9. Industry consortia are usually owned collectively by the major firms participating in the consortia, while private industrial networks usually are created by a single sponsoring company. True 10. Which of the following is not an objective of a private industrial network? obtaining equity participation in the network from other major firms in the industry
  • 390. 11. EDI B2B e-commerce is the most rapidly growing type of B2B e-commerce. False 12. An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis. exchange 13. A transorganizational business process requires at least two independent firms to perform. True 14. Exchanges have proven successful in providing additional value-added services that transform the value chain for the entire industry. False 15. E-distributors operate in horizontal markets. True 16. True MRO goods are also known as indirect goods.
  • 391. 17. Demand chain visibility is one goal of collaborative commerce. True 18. Wood pulp purchased by a paper manufacturer is an example of: direct goods. 19. An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis. e-procurement Net marketplace 20. All of the following are methods of classifying Net marketplaces except: by technology used. 21. Electronic Data Interchange (EDI) systems are seller-side solutions. False 22. Exchanges have failed primarily because: suppliers have refused to join them. 23. Private industrial networks are direct descendants of:
  • 392. existing EDI networks. 24. Private industrial networks provide few, if any, advantages for suppliers. False 25. Which of the following is another name for a private industrial network? PTX 26. ________ is another name for transorganizational business processes. Collaborative commerce 27. Which of the following primarily deal with direct goods? exchanges and industry consortia 28. Exchanges tend to be biased toward the seller even though they are independently owned and presumably neutral. False 29. False Industry consortia are typically seller-biased.
  • 393. 30. An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers. e-distributor 31. An e-procurement Net marketplace is sometimes referred to as a: many-to-many market. 32. Which of the following is not a typical barrier to the implementation of a private industrial network? It requires the large network owners to give up some of its independence. 33. Which of the following primarily deal with indirect goods? e-distributors and e-procurement Net marketplaces 34. All of the following are major developments in supply chain management except: materials requirement planning. 35. Net marketplaces focus on continuous business process coordination between companies while private industrial networks are primarily transaction-based.
  • 394. False 36. An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment. exchange 37. What is the first step in the procurement process? search for suppliers 38. Which of the following primarily involve long-term sourcing? e-procurement Net marketplaces and industry consortia 39. The term B2B commerce refers to all types of computer-enabled interfirm trade. True 40. An ________ is an independently owned intermediary connecting hundreds of online suppliers offering millions of maintenance and repair products to business firms that pay fees to join the market.
  • 395. e-procurement Net marketplace 41. The majority of interfirm trade involves: contract purchasing of direct goods. 42. An example of an indirect good in the fast-food industry is: fax paper. 43. The use of Internet-based B2B solutions promises to significantly reduce administrative costs of engaging in interfirm trade. True 44. Which of the following terms refers to the total flow of value among firms? total interfirm trade 45. Private industrial networks are the largest form of B2B e-commerce. True 46. ________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location.
  • 396. Tight coupling 47. An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis. e-distributor 48. Which of the following does not have a primary impact on the liquidity of a market? price transparency 49. Most industry groups are moving toward which language for expressing EDI documents and communications? XML 50. Which of the following is not a pricing mechanism typically used by Net marketplaces? utilization pricing 51. All of the following statements about EDI are true except: EDI systems generally serve horizontal markets.
  • 397. 52. All of the following are weaknesses of EDI except: EDI lacks universal standards. 53. A method of inventory cost management that seeks to eliminate excess inventory is known as: just-in-time production. 54. Industry consortia are sometimes referred to as: many-to-few markets. Chap 4-6 - System development life cycle (SLDC): a methodology for understanding the business objectives of any system and designing an appropriate solution Business objectives: capabilities you want your site to have System functionalities: types of information systems capabilities you will need to achieve your business objectives Information requirements: the information elements that the system must produce in order to achieve the business objectives System design specification: description of the main components in a system and their relationship to one another Logical design describes the flow of information at your e-commerce site, the processing functions that must be performed, the databases that will be used, the security and emergency backup procedures that will be instituted, and the controls that will be used in the system
  • 398. - - Physical design translate the logical design into physical components Outsourcing hiring an outside vendor to provide the services you cannot perform with in-house personnel Co-location: when a firm purchases or leases a Web server (and has total control over its operation) but locates the server in a vendor’s physical facility. The vendor maintains the facility, communications lines, and the machinery Unit testing: involves testing the site’s program modules one at a time System testing: involves testing the site as a whole, in a way the typical user will use the site Acceptance testing: verifies that the business objectives of the system as originally conceived are in fact working Benchmarking: process in which the site is compared with those of competitors in terms of response speed, quality of layout, and design System architecture: the arrangement of software, machinery, and tasks in an information system needed to achieve a specific functionality Two-tier architecture: e-commerce system architecture in which a Web server responds to requests for Web pages and a database server provides backend data Multi-tier architecture: e-commerce system architecture in which the Web server is linked to a middle-tier layer that typically includes a series of application servers that perform specific tasks as well as to a backend layer of existing corporate systems Site management tools: verify that links on pages are still valid and also indentify orphan files Dynamic page generation: the contents of a Web page are stored as objects in database, rather than being hardcorded in HTML. When the user requests a Web page, the contents for that page are then fetched from the database Web content management system (WCMS, WebCMS): used to create and manage Web content Web application server: software programs that provide specific business functionality required of a web site E-commerce merchant server software: software that provides the basic functionality needed for online sales, including an online catalog, order taking via an online shopping cart, and online credit card processing Online catalog: list of products available on a web site Shopping cart: allows shoppers to set aside desired purchases in preparation for checkout, review what they have selected, edit their selections as necessary, and then actually make the purchase by clicking a button
  • 399. - Merchant server software package( ecommerce server suite): offers an integrated environment that provides most or all of the functionality and capabilities needed to develop a sophisticated, customer-centric site Hardware platform: refers to all the underlying computing equipment that the system uses to achieve its ecommerce functionality Stateless: refers to the fact that the server does not have to maintain an ongoing, dedicated interaction with the client i/o intensive: requires input/output operations rather than heavy-duty processing power user profile: refers to the nature of customer requests and customer behavior at a site CPU-intensive: operations that require a great deal of processing power Scalability: the ability of a site to increase in size as demand warrants Vertical scaling increasing the processing power of individual components Horizontal scaling: employing multiple computers to share the workload Widget: a small, pre-built chunk of code that executes automatically in your HTML Web page; capable of performing a wide variety of tasks Common Gateway Interface( CGI) : a set of standards for communication between a browser and a program running on a server that allows for interaction between the user and the server Active Server Pages (ASP): a proprietary software development tool that enables programmers using Microsoft’s IIS package to build dynamic pages Java Server Pages: like CGI and ASP, a Web page coding standard that allows developers to dynamically generate Web pages in response to user requests JavaScript: a programming language invented by Netscape that is used to control the objects on an HTML page and handle interations with the browser ActiveX: a programming language created by Microsoft to compete with Java VBScript: a programming language invented by Microsoft to compete with JavaScript ColdFusion: an integrated server-side environment for developing interactive Web applications Privacy policy: a set of public statements declaring to your customers how you treat their personal information that you gather on the site Accessibility rules: a set of design objectives that ensure disabled users can effectively access your site
  • 400. - - Mobile web site: version of a regular desktop web site that is scaled down in content and navigation Mobile web app: application built to run on the mobile Web browser built into a smartphone or tablet computer Native app: application designed specifically to operate using the mobile device’s hardware and operating system Consumer behavior: a social science discipline that attempts to model and understand the behavior of humans in a marketplace Culture: shapes basic human values, wants, perceptions, and behaviors Subculture: subset of cultures that form around major social differences Direct reference groups: one’s family, profession or occupation, religion, neighborhood, and schools Indirect reference groups: one’s life-cycle stage, social class, and lifestyle group Opinion leaders( viral influencers) influence the behavior of others through their personality, skills or other factors Lifestyle group: an integrated pattern of activities, interests, and opinions Psychological profile: set of needs, drives, motivations, perceptions, and learned behaviors Psychographic research: divides a market into different groups based on social class, lifestyle, and/or personality characteristics Clickstream behavior: the transaction log that consumers establish as they move about the web Marketing: the strategy and actions firms take to establish a relationship with a consumer and encourage purchases of its products or services. Internet marketing: using the web- as well as traditional channels- to develop a positive, long-term relationship with customers, thereby creating a competitive advantage for the firm by allowing it charge a higher price for products or services than its competitors can charge Feature set: the bundle of capabilities and services offered by the product or service Commodity: a good or service for which there are many dealers supplying the same product, and all products in the segment are essentially identical Core product: the core benefit the customer receives from the product Actual product: the set of characteristics designed to deliver the product’s core benefits Augmented product: product with additional benefits to customers beyond the core benefits embodied in the actual product
  • 401. - Brand: a set of expectations that consumers have when consuming or thinking about consuming, a product or service from a specific company Branding: process of brand creation Closed loop marketing: when marketers are able to directly influence the design of the core product based on market research and feedback from the market Brand strategy: a set of plans for differentiating a product from its competitors, and communicating these differences effectively to the marketplace Bran equity: the estimated value of the premium customers are willing to pay for using a branded product when compared to unbranded competitors Customer acquisition cost: the overall costs of converting a prospect into a consumer Customer retention cost: costs incurred in convincing an existing customer to purchase again Law of One Price: with complete price transparency in a perfect information marketplace, there will be one world price for every product Price dispersion: the difference between the highest and lowest prices in a market Library effect: an attempt to appeal to consumers on the basis of the total number of products offered. Transaction log: records user activity at a Website Registration forms: gather personal data on name, address, phone, zip code, e-mail address, and other optional selfconfessed information on interests and tastes Shopping cart database: captures all the item selection, purchase, and payment data Database: a software application that stores records and attributes Database management system (DBMS): a software application used by organization to create, maintain, and access databases Structured query language (SQL): an industry-standard database query and manipulation language used in relational databases Relational databases: represent data as two-dimensional tables with records organized in rows and attributes in columns; data within different tables can be flexibly related as long as the tables share a common data element
  • 402. - - Data warehouse a database that collects a firm’s transactional and customer data in a single location for offline analysis Data mining a set of analytical techniques that look for patterns in the data of a database or data ware house, or seek to mode the behavior of customers Customer profile a description of the typical behavior of a customer or a group of customers at a web site Query-driven data mining: data mining based on specific queries Model-driven data mining involves the use of a model that analyzes the key variables of interest to decision makers. Rule-based data mining examines demographic and transactional data of groups and individuals at a web site and attempts to derive general rules of behavior for visitors Collaborative filtering: site visitors classify themselves into affinity groups characterized by common interests; products are then recommended based on what other people in the group have recently purchased Customer relationship management (CRM) system: a repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to ―know the customer‖ Customer touchpoint: the way in which customers interact with the firm Advertising networks: connect online marketers with publishers by displaying ads to consumers based on detailed profiles Advertising exchanges: create a market where many ad networkds sell ad space to marketers Real-time bidding process( RTB) online auctions where advertisers bid for audience slots Permission marketing marketing strategy in which companies obtain permission from consumers before sending them information or promotional messages Affiliate marketing one web site agrees to pay another web site a commission for new business opportunities it refers to the site Viral marketing the process of getting customers to pass along a company’s marketing message to friends, family, and colleagues Social graph a mapping of all significant online social relationships
  • 403. - - Social network marketing using online social networks to build and strengthen brands Brand leveraging: using the power of an existing brand to acquire new customers for a new product or service One-to-one marketing(personalization): segmenting the market based on a precise and timely understanding of an individual’s needs, targeting specific marketing messages to these individuals, and then positioning the product vis-àvis competitors to be truly unique Customization: changing the product, not just the marketing message, according to user preferences Customer co-production: in the web environment, takes customization one step further by allowing the customer to interactively create the product Real-time customer service chat systems: a company’s customer service representatives interactively exchange text-based messages with one or more customers on a real-time basis Automated response system: sends e-mails order confirmations and acknowledgments of e-mail inquiries Versioning creating multiple versions of information goods and selling essentially the same product to different market segments at different prices. Bundling: offers consumers two or more goods for a reduced price Channel refers to different methods by which goods can be distributed and sold Channel conflict occurs when a new venue for selling products or services threatens to destroy existing venues for selling goods Keywords: Chap 9 Durable goods: Goods that are consumed over a longer period of time (generally more than a year) Nondurable goods: goods that are consumed quickly and have shorter life spans Economic viability: refers to the ability of firms to survive as profitable business firms during a specified period Gross margin: gross profit divided be net sales
  • 404. Operating margin: calculated by dividing operation income or loss by net sales revenue Net margin: the percentage of the gross sales revenue the firm is able to retain after all expenses are deducted; calculated by dividing net income or loss by net sales revenue Balance sheet: provides a financial snapshot of a company on a given date and shows its financial assets and liabilities. Assets: refers to stored value Current assets: assets such as cash, securities, accounts receivable, inventory, or other investments that are likely to be able to be converted to cash within one year Liabilities: outstanding obligations of the firm Current liabilities: debts of the firm that will be due within one year Long-term debt: liabilities that are not due until the passage of a year or more Working capital: Firm’s current assets minus current liabilities Virtual merchant: single-channel Web firms that generate almost all of their revenue from online sales Brick-and-clicks: companies that have a network of physical stores as their primary retail channel, but have also introduced online offerings Catalog merchants: established companies that have a national offline catalog operation that is their largest retail channel, but who have recently developed online capabilities Manufacturer-direct: single-or multi-channel manufacturers who sell directly online to consumers without the intervention of retailers Supply-push model: products are made prior to orders received based on estimated demand
  • 405. Demand-pull model: products are not built until an order is received Service occupations: occupations concerned with performing tasks in and around households, business firms, and institutions Service industries: establishments providing services to consumers, businesses, goverments, and other organizations Transaction brokering: acting as an intermediary to facilitate a transaction Financial portals: sites that provide consumers with comparison shopping services, independent financial advice, and financial planning Account aggregation: the process of pulling together all of a customer’s financial (and even nonfinancial) data at a single personalized Web site Corporate online booking solutions (COBS): provide intergrated airline, hotel, conference center, and auto rental services at a single site Chap 12 Total inter-firm trade: the total flow of value among firms B2B commerce: all types of inter-firm trade B2B e-commerce (B2B digital commerce): that portion of B2B commerce that is enabled by the Internet Supply chain: the links that connect business firms with one another to cordinate production Automated order entry systems involved the use of telephone modems to send digital orders Seller-side solutions: seller-biased markets that are owned by, and how only goods from, a single seller
  • 406. Electronic data intercharge (EDI) a communications standard for sharing business documents and settlement information among a small number of firms Buyer-side solutions: buyer-side solutions: buyer-biased markets that are owned by buyers and that aim to reduce the procurement costs of suppliers for buyers Hub-and-spoke system: suppliers connected to a central hub of buyers via private dedicated networks Vertical market: one that provides expertise and products for a specific industry Horizontal markets: markets that serve many different industries B2B electronic storefronts: online catalogs of products made available to the public marketplace by a single supplier Net marketplace: brings hundreds to thousands of suppliers and buyers into a single Internet-based environment to conduct trade Private industrial networks: (private trading exchange, PTX) Internet-based communication environments that extend far beyond procurement to encompass truly collaborative commerce Procurement process: how firms purchase goods they need to produce goods for consumers Direct goods: goods directly involved in the production process Indirect goods: all other goods not directly in the production process MRO goods: products for maintenance, repair, and operations Contract purchasing: involves long-term written agreements to purchase specified products, under agreed-upon terms and quality, for an extended period of time.
  • 407. Spot purchasing: involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers Multi-tier supply chain: the chain of primary, secondary, and tertiary suppliers Legacy computer systems: older mainframe systems used to manage key business processes within a firm in a variety of funtional areas Enterprise systems: corporate-wide systems that relate to all aspects of production, including finance, human resources, and procurement Supply chain management (SCM): refers to a wide variety of activities that firms and industries use to cordinate the key players in their procurement process Just-in-time production: A method of inventory cost management which seeks to eliminate excess inventory to a bare minium Lean production: a set of production methods and tools that focuses on the elimination of waste throughout the customer value chain Tight coupling: a method for ensuring that suppliers precisely deliver the ordered parts, at a specific time and particular location, to ensure the production process is not interrupted for lack of parts Supply chain mangement (SCM) systems: continuously link the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating the demand side of the business equation by including the order entry system in the process Collaborative commerce: the use of digital technologies to permit organizations to collaboratively design, develop, build, and manage products through their life cycles E-distributor: provides electronic catalog that represents the products of thousands of direct manufacturers
  • 408. E-procurement Net marketplace: independently owned intermediary that connects hundreds of online suppliers offering millions of maintenance and repair parts to business firms who pay fees to join the market Value chain management (VCM) services: include automation of a firm’s entire procurement process on the buyer side and automation of the selling business processes on the seller side Exchange: independently owned online marketpalce that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment Liquidity: typically measured by the number of buyers and sellers in a market, the volume of transactions, and the size of transactions Industry consortium: industry-owned vertical market that enabled buyers to purchase direct inputs (both goods and services) from a limited set of invited participants Trans-organizational business process: process that requires at least two indepent firms to perform Collaborative resource planning, forecasting, and replenishment (CPFR): involves working with network members to forecast demand, develop production plans, and coordinate shipping, warehousing, and stocking activities to ensure that retail and wholesale shelf space is replenished with just the right amount of goods