E-Commerce Chapter 1-2-3-4

Boeing designing a product together with one of its business partners is an example of A) collaborative commerce. B) business-to-business commerce. C) consumer-to-business commerce. D) business-to-employees commerce. Answer:

A

Charles wants to buy a John Lennon lithograph over the Internet, but he is unwilling to pay for it until he inspects it to ascertain authenticity. The auction site through which he purchases the painting agrees to hold his money until he tells them to release it to the seller. This is an example of a(n) A) escrow service. B) trustmark. C) warranty. D) verification. Answer:

A

An online seller of travel services that generates revenue by charging fees for its services is an example of a A) market maker. B) transaction broker. C) content disseminator. D) viral marketer. Answer:

B

Marketing done online between any seller and buyer best defines A) personalization. B) direct marketing. C) target marketing. D) multichannel marketing. Answer:

B

An online third party that brokers a transaction online between a buyer and a seller best describes A) strategic source. B) horizontal marketplace. C) vertical marketplace. D) online intermediary. Answer:

D

Which of the following companies uses viral videos to promote renewals of Care Pack Service agreements? A) Reed Business Information B) Cisco Systems C) Arketi Group D) Hewlett-Packard Answer:

D

Which of the following is not a social shopping model? A) personalized event shopping B) location-based e-commerce C) private shopping clubs D) private auctions Answer:

D

A Web-based marketplace in which one company sells to many business buyers from e-catalogs or auctions, frequently over an extranet, describes A) sell-side e-commerce. B) single-side e-commerce. C) buy-side e-commerce. D) reflective e-commerce. Answer:

A

Advantages of the electronic job market for job seekers include A) accessing newsgroups that are dedicated to finding jobs. B) reducing application-processing costs by using electronic application forms. C) conducting interviews online. D) viewing salary surveys for recruiting strategies. Answer:

A

Many-to-many e-marketplaces, usually owned and run by a third party or a consortium, in which many buyers and many sellers meet electronically to trade with each other best describes A) exchanges. B) public market. C) company-centric EC. D) spot purchases. Answer:

A

Materials used to support production are called A) indirect materials. B) operational materials. C) direct materials. D) virtual materials. Answer:

A

The B2C business model used by QVC, Sharper Image, and Lands' End is A) direct marketing by mail-order companies. B) direct sales by manufacturers. C) pure-play e-tailers. D) click-and-mortar retailers. Answer:

A

Using Internet technology to buy goods and services from a number of known or unknown suppliers best defines A) e-reverse auctioning. B) e-tendering. C) e-sourcing. D) e-informing. Answer:

A

Which of the following can be supported more effectively and efficiently through direct buyer-seller negotiations? A) strategic sourcing B) spot buying C) B2C e-commerce D) MRO Answer:

A

Two types of materials and supplies that are traded in B2B are A) digital and physical. B) direct and indirect. C) horizontal and vertical. D) commodities and nonproduction. Answer:

B

Which of the following is not one of the major benefits of B2B for both buyers and sellers? A) expedites processing and reduces cycle time B) reduces procurement costs C) enables customized online catalogs with different prices for different customers D) increases opportunities for collaboration Answer:

B

Which of the following refers to communities organized by interest, such as hobbies, technical topic, vocations, political parties, or trade unions? A) association portals B) affinity portals C) communities of practice D) virtual worlds Answer:

B

A B2C model in which sales are done to meet the needs of special events describes A) anniversary shopping. B) time-based shopping. C) event shopping. D) choreographed shopping. Answer:

C

A business strategy that focuses on providing comprehensive quality service to business partners best defines A) customer relationship management. B) supplier relationship management. C) partner relationship management. D) supply chain management. Answer:

C

A characteristic that describes customer loyalty to a site that eventually results in higher revenue best defines A) retention. B) acquisition. C) stickiness. D) attachment. Answer:

C

A search engine whose mission is to help people find local qualified services ranging from mechanics to restaurants to hairstylists describes A) Freddy's List. B) Pricescan.com. C) Yelp. D) Local.com. Answer:

C

All are benefits of B2B except A) creates new sales or purchase opportunities. B) eliminates paper and reduces administrative costs. C) increases channel conflict. D) lowers search costs and time for buyers to find products and vendors. Answer:

C

Firms that sell directly to consumers over the Internet without maintaining a physical sales channel describes A) click-and-mortar stores. B) viral marketers. C) virtual e-tailers. D) social network. Answer:

C

A traditional brick-and-mortar store with a mature website that uses a successful click-and-mortar strategy is able to A) give customers the opportunity to perform various functions interactively at any time. B) link all of its back-end systems to create an integrated customer experience. C) leverage its marketing channels by offering the advantages of each marketing channel to customers from all channels. D) do all of the above. Answer:

D

Capabilities and services provided by social networking sites include A) discussion forums. B) blogs for discussion and dissemination of information. C) viewing and sharing photos, videos, and documents. D) all of the above. Answer:

D

The major B2B service industries include each of the following except A) travel and hospitality services. B) financial services. C) banking and online financing. D) retail. Answer:

D

The major ________ mechanisms are storefronts and Internet malls. A) B2B B) C2B C) B2B2C D) B2C Answer:

D

Denver Boards, a B2B manufacturer of snowboard equipment, can reach and target new retail customers in order to grow its online business by A) hiring an affiliation service to drive traffic to its Web site. B) reviewing POS data. C) mining data. D) advertising in traditional media. Answer:

A

Depending on the degree of digitization, EC can take several forms including A) the ordering system, processing, and shipping method. B) the business process, the collaboration, and the transaction. C) the payment method, the delivery method, and the production method. D) the marketing channel, the agent, and the collaboration method. Answer:

A

Each of the following is a major component and player in a marketspace except A) auctions. B) products and services. C) infrastructure. D) front end. Answer:

A

Each of the following is a revenue model for online independent travel agents except A) contract negotiators. B) direct revenues from commissions. C) subscription or membership fees. D) revenue sharing fees. Answer:

A

Each of the following sells well on the Internet except A) tobacco. B) travel. C) cars. D) health and beauty. Answer:

A

Gateways to storefronts and e-malls are A) shopping portals. B) shopbots. C) shopping browsers. D) intelligent search engines. Answer:

A

Large organizational buyers make large-volume or large-value purchases through ________, also known as reverse auctions. A) electronic tendering systems B) online direct marketing C) name-your-own-price models D) viral marketing Answer:

A

Major advantages of e-commerce to sellers include each of the following except A) charging less for items. B) lower supply chain costs. C) reacting quickly to customer's needs. D) competing with larger companies. Answer:

A

Several benefits of Microsoft's ________ are that distributors can check inventory, make transactions, and look up the status of their orders, significantly reducing the number of phone calls, e-mails, and incorrect product shipments. A) extranet-based order-entry tool B) electronic data interchange C) customized catalog D) auto-responder Answer:

A

The electronic acquisition of goods and services for organizations via the Internet or private network best defines A) e-procurement. B) spot buying. C) resource acquisition. D) MRO planning. Answer:

A

The entertainment EC activity is supported by A) Web 2.0 tools. B) e-auctions. C) electronic markets. D) storefronts. Answer:

A

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 referred to as the ________ of the business. A) front end B) back end C) infrastructure D) intermediary Answer:

A

The process whereby intermediaries take on new intermediary roles defines A) reintermediation. B) seller reassignment. C) relocation. D) disintermediation. Answer:

A

Types of B2B transactions include A) strategic sourcing. B) randomized buying. C) intermediation. D) reverse purchasing. Answer:

A

Which of the following is the unplanned, emergency-type buying where buyers usually pay more? A) maverick buying B) spot buying C) impulse purchasing D) extreme purchasing Answer:

A

With a bartering exchange, a company submits its surplus to the exchange and receives A) points of credit, which the company can then use to buy items that it needs. B) an equivalent amount of products or services. C) interest payments until it buys something from the exchange. D) cash minus a small commission for services. Answer:

A

Each of the following is a characteristic of WAYN except A) it is a popular social networking Web site. B) when it introduced fees for its premier travel membership service, it lost most of its new subscriptions. C) it is not aimed at any particular age group. D) it enables its users to create a personal profile and upload and store photos. Answer:

B

Each of the following is an essential capability that helps drive EC except A) providing efficient and effective business transactions. B) facilitating company consolidations. C) customizing products and personalizing services. D) sharing information and knowledge. Answer:

B

Gathering and distributing purchasing information both from and to internal and external parties using Internet technology best defines A) e-tendering. B) e-informing. C) e-sourcing. D) e-MRO. Answer:

B

High-quality bicycle manufacturer Gregg's Cycles does not sell its products online, nor do they allow their bicycles to be sold online by others. By not selling online, Gregg's Cycles avoids ________ with its dealers and the independent bike shops that sell its bikes. A) pricing conflict B) channel conflict C) multichannel distribution D) disintermediation Answer:

B

In an e-market, PayPal serves as a(n) A) intermediary. B) service provider. C) content disseminator. D) viral marketer. Answer:

B

Marketing by manufacturers and wholesalers along the sell-side of the supply chain best defines A) B2C marketing. B) B2B marketing. C) M2W marketing. D) M2B purchasing. Answer:

B

Materials used in the production of a product best defines A) indirect materials. B) direct materials. C) MRO materials. D) production materials. Answer:

B

Net-A-Porter's online store is an example of A) business-to-employees EC. B) business-to-consumer EC. C) business-to-business EC. D) consumer-to-consumer EC. Answer:

B

Portals that store data and enable users to navigate and query these data are A) collaborative portals. B) information portals. C) mobile portals. D) MRO portals. Answer:

B

Software tools that scout the Web on behalf of consumers who specify search criteria are A) shopping portals. B) shopbots. C) shopping browsers. D) intelligent search engines. Answer:

B

The e-commerce activities conducted in social networks and/or by using social software best describes A) virtual commerce. B) social commerce. C) consumer commerce. D) enterprise commerce. Answer:

B

The effect upon sales of consumers receiving a referral or recommendation from other consumers defines A) location-based economy. B) referral economy. C) regional economy. D) viral marketing. Answer:

B

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

The situation in which an online marketing channel upsets the traditional channels due to real or perceived damage from competition defines A) disintermediation. B) channel conflict. C) distributor reassignment. D) partner disassociation. Answer:

B

Which is not a popular search engine? A) Google B) Linux C) AltaVista D) Lycos Answer:

B

Which of the following is not a characteristic of e-banking? A) saves users time and money B) is more expensive for banks C) is becoming an enabling feature of business growth in the developing world D) is increasing peer-to-peer (P2P) online lending Answer:

B

A corporate or government network that uses Internet tools, such as Web browsers, and Internet protocols best defines A) social network. B) extranet. C) intranet. D) e-market. Answer:

C

A method for Internet users to store, organize, search, and manage bookmarks of Web pages on the Internet with the help of metadata best defines A) tagging. B) filtering. C) social bookmarking. D) intermediating. Answer:

C

Amazon.com experienced each of the following except A) maintaining its position as the number one B2C money-making EC site in the world. B) driving growth largely by product diversification and its international presence. C) declaring its first profit in 2005. D) patenting its 1-click feature which allows customers to place an order in a secure manner without having to enter personal, billing, and shipping information each time they shop. Answer:

C

An electronic storefront includes several mechanisms that are needed for conducting the sale. The most common mechanisms include each of the following except A) electronic catalog. B) search engine. C) supply chain. D) payment gateway. Answer:

C

An order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop best defines A) intelligent agent. B) e-fulfillment agent. C) electronic shopping cart. D) mobile portal. Answer:

C

B2B portals that focus on a single industry or industry segment best describes A) local portals. B) information portals. C) vortals. D) collaborative portals. Answer:

C

Benefits of using a third-party hosting company for conducting B2B auctions instead of developing an auction site in-house include all of the following except A) no hiring costs. B) no redeployment of corporate resources. C) time-to-market of several weeks. D) no need for additional resources such as hardware, bandwidth, or IT personnel. Answer:

C

E-procurement benefits include each of the following except A) reducing the number of suppliers. B) ensuring delivery on time, every time. C) ease of internal and external integration. D) improving information flow and management. Answer:

C

Each of the following is a benefit of EC to society except A) more public services. B) closing the digital divide. C) fewer permits and less tax. D) improving homeland security. Answer:

C

Key business drivers for B2B include each of the following except A) the availability of a secure broadband Internet platform. B) the ability to reduce delays. C) the willingness of companies to incur higher costs to improve collaboration. D) the need for collaborations between suppliers and buyers. Answer:

C

Limitations of online travel services include A) limited amount of free information. B) substantial discounts. C) the difficulty of using virtual travel agents can be very large. D) increases in provider's commission and its processing. Answer:

C

Sears' marketing strategy is best described as a A) brick-and-mortar strategy. B) shared service mall strategy. C) click-and-mortar strategy. D) direct marketing from a manufacturer strategy. Answer:

C

Security for online bank transactions includes each of the following except A) firewalls. B) SSL encryption. C) virtual biometrics. D) digital certificates. Answer:

C

Societal business pressure examples include A) increased power of the consumer. B) global economy. C) compliance. D) rapid technological obsolescence. Answer:

C

The main uses of social networks include A) reducing the number of suppliers. B) encouraging maverick purchases. C) learning useful business intelligence. D) driving traffic to online Web properties. Answer:

C

The planning, organizing, and coordinating of all the activities relating to purchasing goods and services needed to accomplish the organization's mission best defines A) buy-side e-marketplace. B) supply chain management. C) procurement management. D) customer relationship management. Answer:

C

The purchase of goods and services as they are needed, usually at prevailing market prices, best defines A) direct materials. B) consolidation. C) spot buying. D) strategic sourcing. Answer:

C

The second generation of Internet-based services that lets people collaborate and share information online in new ways, such as social networks, wikis, communication tools, and folksonomies, best describes A) Virtual Web. B) Media Web. C) Web 2.0. D) Social Web. Answer:

C

Types of online banking applications include each of the following except A) informational. B) administrative. C) directional. D) portal. Answer:

C

A comprehensive approach to managing an enterprise's interactions with the organizations that supply the goods and services it uses best defines A) customer relationship management. B) supply chain management. C) partnership relationship management. D) supplier relationship management. Answer:

D

A marketer that uses e-mail to advertise to potential customers is called a A) market maker. B) transaction broker. C) content disseminator. D) viral marketer. Answer:

D

A members-only shopping club, where members can buy goods at large discounts describes A) specialty club. B) membership-based club. C) exclusive club. D) private shopping club. Answer:

D

Advantages of using internal catalogs include A) decreasing the number of suppliers. B) easy financial controls. C) using search engines to look through internal catalogs. D) all of the above. Answer:

D

Based on distribution channel used, Dell's B2C business model can be classified as a A) direct marketing by mail-order company. B) pure-play e-tailer. C) click-and-mortar retailer. D) direct sales by manufacturer. Answer:

D

Based on distribution channel used, which of the following is not a B2C model classification? A) pure-play e-tailers B) click-and-mortar retailers C) Internet malls D) online medical diagnostic center Answer:

D

Benefits of e-auctions to buyers include A) liquidating large quantities quickly. B) higher repeat purchases. C) optimal price setting determined by the market. D) opportunities to find unique items. Answer:

D

Benefits of e-auctions to sellers include A) anonymity. B) convenience of bidding anywhere and any time. C) lack of differentiation. D) optimal price is determined by the market. Answer:

D

Companies use ________ to sell their unneeded assets for quick disposal or to dispose of excess, obsolete, and returned products. A) private auctions B) liquidation C) reverse auctions D) forward auctions Answer:

D

Compared to the traditional job market, the online job market A) has a shorter life cycle. B) is usually specialized and local in scope. C) tends to be less reliable. D) tends to be much less expensive. Answer:

D

E-commerce that focuses on a single company's buying needs or selling needs best defines A) computer exchange. B) business-to-business e-commerce. C) private marketplace. D) company-centric EC. Answer:

D

E-procurement limitations and challenges include each of the following except A) the technology needs to be updated frequently. B) the system may be too complex. C) the cost may be too high. D) the ease of getting suppliers to cooperate electronically. Answer:

D

Major procurement methods include A) buying at an exchange or industrial mall. B) buying at private or public auction sites in which the organization participates as one of the buyers. C) buying directly from manufacturers, wholesalers, or retailers from their catalogs, and possibly by negotiation. D) all of the above. Answer:

D

Purchases of goods and services based on long-term contracts best defines A) direct materials. B) consolidation. C) spot buying. D) strategic sourcing. Answer:

D

The TRUSTe seal is an example of a(n) A) business rating. B) intermediary. C) B2B exchange. D) trustmark. Answer:

D

The aggregated catalogs of all approved suppliers combined into a single internal electronic catalog defines A) bartering exchange. B) buy-side e-marketplace. C) sell-side e-marketplace. D) internal procurement marketplace. Answer:

D

The competitive advantages of a "pull" vehicle distribution process include each of the following except A) improved customer satisfaction and better pricing. B) large cost savings in finished vehicle inventory carrying costs. C) better cash flow to the manufacturers. D) creating a build-to-stock environment. Answer:

D

The portal online banking application provides A) general bank information and history. B) account transfer capabilities. C) online brokerage services. D) links to local business. Answer:

D

The removal of organizations or business process layers responsible for certain intermediary steps in a given supply chain describes A) reintermediation. B) extraction. C) relocation. D) disintermediation. Answer:

D

Types of e-procurement include A) E-MRO. B) E-market sites. C) E-informing. D) all of the above. Answer:

D

Types of stores and malls include A) general stores/malls. B) specialized stores/malls. C) pure-play stores. D) all of the above. Answer:

D

Unplanned purchases of items needed quickly, often at non-prenegotiated higher prices, best defines A) impulse purchases. B) free market. C) MRO purchasing. D) maverick buying. Answer:

D

A category of Internet applications that help connect friends, business partners, or individuals with specific interests by providing free services such as photo presentation, e-mail, blogging, and so on using a variety of tools best defines A) social networking. B) enterprise networks. C) community networks. D) intranets. Answer:

A

A key success factor for Net-A-Porter is the ability to A) buy what customers want from designers. B) provide services at a lower cost. C) provide products to a niche market. D) use IT for competitive advantage. Answer:

A

A major gateway through which employees, business partners, and the public can enter a corporate website best defines A) corporate portal. B) intranet. C) extranet. D) social network. Answer:

A

) The practice of identifying and enabling specific content across the enterprise to be indexed, searched, and displayed to authorized users best describes A) desktop search. B) enterprise search. C) web search. D) portal search. Answer:

B

Benefits of EC to organizations include each of the following except A) cost reduction. B) closing the digital divide. C) supply chain improvements. D) efficient procurement. Answer:

B

Which of the following is a social software tool? A) auctions B) blogs C) shopping carts D) e-catalogs Answer:

B

A method of doing business by which a company generates revenue to sustain itself and achieve its goals best describes A) strategic plan. B) mission statement. C) business model. D) marketing plan. Answer:

C

According to the ________ revenue model, companies receive commissions for referring customers to others' EC websites. A) advertising fees B) subscription fees C) affiliate fees D) transaction fees Answer:

C

A job opening in the Sales Department is posted on the company's intranet by the Human Resources Department. This is an example of A) E2C. B) B2S. C) B2B. D) B2E. Answer:

D

EC classifications include A) business-to-business. B) business-to-consumer. C) consumer-to-business. D) all of the above. Answer:

D

Each of the following describes retailing except A) a retailer is a sales intermediary. B) many manufacturers sell directly to consumers and through wholesalers and retailers. C) e-tailing makes it easier for a manufacturer to sell directly to customers by cutting out the intermediary. D) companies that produce a large number of products, such as Procter & Gamble, do not need retailers for efficient distribution. Answer:

D

Facebook, LinkedIn, and catster.com are examples of A) gender communities. B) communities of practice. C) virtual worlds. D) social network sites. Answer:

D

Major advantages of e-commerce to buyers include A) finding products and services that are not available in local stores. B) buying in groups. C) shopping globally. D) all of the above. Answer:

D

McKinsey and Company's trend predictions include(s) A) distributed cocreation moves into the mainstream. B) imagining anything as a service. C) innovation coming from the bottom of the pyramid. D) all of the above. Answer:

D

Organizations that conduct some e-commerce activities, usually as an additional marketing channel, are A) brick-and-mortar organizations. B) value-added organizations. C) pure-play organizations. D) click-and-mortar organizations. Answer:

D

Reasons EC companies fail include A) lack of financial skills. B) little experience with marketing. C) not ensuring they have the inventory and distribution setup to meet the fluctuating and increasing demand for their products. D) all of the above. Answer:

D

The emergence of electronic marketplaces changed several of the processes used in trading and supply chains including A) lowering information search time and cost for buyers. B) the ability of buyers, sellers, and the virtual market to each be in a different location. C) the ability for EC to leverage capabilities with increased effectiveness and lower transaction and distribution costs, leading to more efficient "friction-free" markets. D) all of the above. Answer:

D

A marketplace in which an intermediary arranges barter transactions best defines A) bartering exchange. B) forward auction. C) blog. D) Web portal. Answer:

A

A virtual world is A) a user-defined world in which people can interact, play, and do business. B) a single point of access, through a Web browser, to critical business information located inside and outside (via Internet) an organization. C) a social network whose major interest is business topics. D) a combination of two or more websites into a single website that provides the content of both sites to deliver a novel product to consumers. Answer:

A

According to O'Reilly (2005), which Web 2.0 level's applications work as well offline as online? A) Level 0 B) Level 3 C) Level 1 D) Level 2 Answer:

A

According to the Business Environment and Performance Impact Model, ________ provide support to organizations' activities and to the resultant performance, countering business pressures. A) EC and IT B) missions and strategies C) core competencies and critical response activities D) markets and government Answer:

A

According to the Electronic Commerce Framework, direct marketing, search jobs, and online banking are A) electronic commerce applications. B) support services. C) part of the EC infrastructure. D) supply chain management activities. Answer:

A

According to the ________ revenue model, customers pay a fixed amount, usually monthly, to receive some type of service. A) subscription fees B) transaction fees C) advertising fees D) affiliate fees Answer:

A

An auction in which a seller entertains bids from buyers, and the bidders increase price sequentially best defines A) forward auctions. B) reverse auctions. C) bidding auction system. D) tendering system. Answer:

A

As identified by Amit and Zott (2001) which of the following is not one of the four sets of values that are created by e-business? A) financial efficiency B) search and transaction cost efficiency C) complementarities D) novelty Answer:

A

Concerns about Web 3.0 implementation and the future of EC include A) lack of net neutrality. B) wiring for a sustainable world. C) the use of 3-D tools. D) ownership. Answer:

A

Each of the following is a non-technological limitation of EC except A) software development tools are still evolving. B) lack of trust in EC and in unknown sellers hinders buying. C) people do not yet sufficiently trust paperless, faceless transactions. D) online fraud is increasing. Answer:

A

Electronic intermediaries that provide and/or control information flow in cyberspace, often aggregating information and selling it to others, best defines A) infomediaries. B) knowledge managers. C) metamediary. D) Webstore. Answer:

A

Major barriers to EC include each of the following except A) competition. B) lack of potential customers. C) implementation difficulties. D) lack of technology skills. Answer:

A

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

Prices that change based on supply and demand relationships at any given time best defines A) dynamic pricing. B) commodity pricing. C) pre-shopping. D) negotiation. Answer:

A

Retailers who sell over the Internet are A) e-tailers. B) disintermediaries. C) marketing managers. D) multichannel marketers. Answer:

A

When Apple conducts online transactions with its trading partners, this is an example of A) B2B. B) B2C. C) e-CRM. D) EDI. Answer:

A

Which of the following is a global, multilanguage, social network popular in Asia and parts of Europe, Africa, and South America? A) Hi5.com B) Piczo.com C) Friendsreunited.co.uk D) Iwiw.net Answer:

A

Which of the following is not one of the benefits that EC provides to consumers? A) global reach B) instant delivery C) enable telecommuting D) ubiquity Answer:

A

Which of the following was Stormhoek Winery's successful marketing campaign that had volunteers, over a series of days, host dinners that included tasting Stormhoek wine? A) 100 Geek Dinners in 100 Days. B) Stormhoek's May Wine Days. C) Stormhoek's Friends, Dinner, and Wine. D) Stormhoek's No Grape Before It's Time Wine Tasting Event Answer:

A

With all else being equal in the online environment, goods with any of the following product characteristics are expected to facilitate greater online sales except A) relatively expensive items. B) high brand recognition. C) digitized format. D) frequently purchased items. Answer:

A

A formal auction in which participants pay a nonrefundable small fee for each bid, and the bid level changes by small increments. This defines A) reverse auction. B) charge-by-bid auction. C) forward auction. D) penny auction. Answer:

D

According to the Business Environment and Performance Model, drivers for organizations include A) the organization's mission. B) problems from the business environment. C) the organization's strategy. D) all of the above. Answer:

D

According to the ________ model, an organization can increase brand awareness or even generate sales by Web-based word-of-mouth marketing or promoting a product or service to other people. A) electronic tendering systems B) online direct marketing C) name-your-own-price D) viral marketing Answer:

D

An evolving extension of the Web in which Web content can be expressed not only in natural language, but also in a form that can be understood, interpreted, and used by intelligent computer software agents, permitting them to find, share, and integrate information more easily describes A) Web 4.0. B) Camelot Web. C) Web 2.0. D) Semantic Web. Answer:

D

Commercial activities conducted on Facebook best describes A) social commerce. B) c-commerce. C) business-to-consumer commerce. D) f-commerce. Answer:

D

EC activities include A) trading, buy, sell, and exchange. B) communicate, collaborate, and learn. C) improve performance. D) all of the above. Answer:

D

Referencing the Electronic Commerce Framework, marketing and advertisement is in the category of A) electronic commerce applications. B) infrastructure. C) value chain. D) support services. Answer:

D

The practice and method of collaboratively creating, classifying, and managing tags to annotate and categorize content best defines A) mashup. B) tweeting. C) social bookmarking. D) folksonomy. Answer:

D

) Delivery of e-commerce transactions to individuals in a specific location, at a specific time defines A) location-based commerce. B) event-driven commerce. C) mobile computing. D) service on demand. Answer:

A

A business model where a company sells in multiple marketing channels simultaneously best defines A) multichannel business model. B) concurrent business model. C) direct marketing. D) revenue enhancement. Answer:

A

A company that creates and manages many-to-many markets is called a A) market maker. B) transaction broker. C) content disseminator. D) viral marketer. Answer:

A

An online marketplace where buyers and sellers meet to exchange goods, services, money, or information best defines A) electronic marketplace. B) farmers market. C) digital marketplace. D) webinar. Answer:

A

An example of a successful aggregation of suppliers' catalogs is that of ________, which aggregates more than 10,000 items from the catalogs of approved suppliers into an internal electronic catalog. A) MasterCard International B) Amazon.com C) Google D) Priceline.com Answer:

A

A combination of two or more websites into a single website that provides the content of both sites to deliver a novel product to consumers best defines A) blog. B) mashup. C) podcast. D) wiki. Answer:

B

A corporate-based acquisition site that uses reverse auctions, negotiations, group purchasing, or any other e-procurement method best defines A) desktop procurement method. B) buy-side e-marketplace. C) intermediary. D) aggregated catalog. Answer:

B

B2B transactions that involve communication, design, planning, information sharing, and activities beyond financial transactions among business partners defines A) exchanges. B) collaborative commerce. C) trading communities. D) public marketplaces. Answer:

B

Direct purchasing from internal marketplaces without the approval of supervisors and without the intervention of a procurement department best defines A) spot buying. B) desktop purchasing. C) maverick buying. D) renegade purchasing. Answer:

B

A broader definition of EC that includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organization best defines A) e-commerce. B) e-business. C) e-government. D) e-tailing. Answer:

B

A method of doing business by which a company can generate revenue to sustain itself best defines A) marketing strategy. B) business model. C) value chain. D) business plan. Answer:

B

A private e-marketplace in which one company sells either standard and/or customized products to qualified companies best defines A) buy-side e-marketplace. B) sell-side e-marketplace. C) Webstore. D) hidden e-marketplace. Answer:

B

According to Internet Retailer (2009), approximately ________ percent of adult U.S. Internet users shop online or research offline sales online. A) 25 B) 60 C) 65 D) 85 Answer:

B

According to O'Reilly (2005), which Web 2.0 level's applications exist only on the Internet, deriving their effectiveness from interhuman connections and from the network effects that Web 2.0 makes possible and growing in effectiveness as people make more use of them? A) Level 0 B) Level 3 C) Level 1 D) Level 2 Answer:

B

Activities related to order aggregation and fulfillment, inventory management, purchasing from suppliers, accounting and finance, packaging, and delivery are done in what is termed the ________ of the business. A) front end B) back end C) infrastructure D) intermediary Answer:

B

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; this describes A) forward auctions. B) reverse auctions. C) bidding auction system. D) tendering system. Answer:

B

An e-commerce intermediary that connects manufacturers with business buyers (customers) by aggregating the catalogs of many manufacturers in one place best describes A) electronic catalog. B) e-distributor. C) metamediary. D) broker. Answer:

B

An e-commerce model in which all the participants are businesses or other organizations describes A) business-to-consumer. B) business-to-business. C) business-to-business-to-consumer. D) consumer-to-business. Answer:

B

An online market, usually B2B, in which buyers and sellers exchange goods or services best defines A) cybermarket. B) e-marketplace. C) auction site. D) cyberstore. Answer:

B

Because the pace of change and level of uncertainty in the marketplace are expected to accelerate, organizations are A) unable to react quickly enough to threats and opportunities. B) operating under increasing pressures to produce more products, faster, and with fewer resources. C) making fewer decisions and/or decisions less frequently. D) considering less information when making decisions. Answer:

B

G2B occurs when A) a government entity buys or provides goods, services, or information from or to individual citizens. B) a government entity buys or provides goods, services, or information from or to businesses. C) a government entity buys or provides goods, services, or information from or to other governments. D) a government entity buys or provides goods, services, or information from or to nonprofit organizations. Answer:

B

Organizations that conduct their business activities solely online are A) click-and-mortar organizations. B) pure-play organizations. C) brick-and-mortar organizations. D) unrestricted commerce organizations. Answer:

B

Selling corporate products to one's employees is an example of A) business-to-consumer. B) intrabusiness EC. C) business-to-business-to-consumer. D) collaborative commerce. Answer:

B

Types of business activities in virtual worlds include each of the following except A) creating and managing a virtual business. B) operating a bed and breakfast in Nova Scotia. C) providing services for those who build, manage, or make money with virtual properties. D) conducting regular business activities. Answer:

B

Which of the following is a characteristic of e-tailing? A) Competition is local. B) Customer relations are less stable due to anonymous contacts. C) Price changes are expensive, but can be done at anytime. D) Fewer resources are needed to increase customer loyalty. Answer:

B

The success of the entrepreneurial company JetPens was due to keeping costs low by each of the following methods except A) using open source free software. B) advertising via e-mail. C) giving away free samples via social networks. D) using smart key words to rank high with search engines. Answer:

C

A business that provides some product or service to a client business that maintains its own customers best describes the E-commerce model of A) consumer-to-business. B) intrabusiness EC. C) business-to-business-to-consumer. D) business-to-business. Answer:

C

A technology used to electronically transfer routine documents, such as invoices and purchase orders, and for financial transactions is A) electronic funds transfer. B) exchange-to-exchange. C) electronic data interchange. D) global document transfer. Answer:

C

A(n) ________ is a single point of access, through a Web browser, to critical business information located inside and outside (via Internet) an organization. A) browser B) intermediary C) Web portal D) search engine Answer:

C

An auction in which multiple buyers and their bidding prices are matched with multiple sellers and their asking prices, considering the quantities on both sides best defines A) forward auction. B) reverse auction. C) double auction. D) penny auction. Answer:

C

Each of the following is a true statement about public e-marketplaces except A) public marketplaces are usually B2B markets. B) public marketplaces are often owned by a third party. C) public marketplaces are not regulated by the government. D) public marketplaces serve many sellers and buyers. Answer:

C

Traditional and electronic markets have three main functions, which include each of the following 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

Types of virtual communities include each of the following except A) relations or practices. B) virtual worlds. C) mashups. D) social networks. Answer:

C

Which of the following consists of the creation of high-quality content and services produced by gifted individuals using Web 2.0 technology as an enabling platform and is used to describe the future of the World Wide Web? A) Level 2.0 B) Web 4.0 C) Web 3.0 D) Web 5.0 Answer:

C

Which of the following is a technological limitation of EC? A) security and privacy concerns that deter customers from buying B) difficulty obtaining venture capital C) order fulfillment requirements of large-scale B2C D) unresolved taxation, public policy, and legal issues Answer:

C