E-commerce - IT4123 - Kennesaw - Final

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38) Which of the following is not categorized as an operating expense? A) the cost of products being sold B) marketing costs C) administrative overhead D) amortization of goodwill

A Page Ref: 576 Difficulty: Moderate AACSB:

All of the following are examples of technology convergence except:

Amazon Books Publishing.

Which of the following is an example of an e-procurement Net marketplace?

Ariba

Which of the following is not one of the three defining characteristics of a portal? commerce content auctions navigation of the Web

Auctions

A fingerprint scan is an example of which of the following?

A) biometrics B) encryption C) IDS D) firewall Answer: A

Which of the following measures the average length of stay at a Web site?

A) loyalty B) stickiness C) page views D) retention rate Answer: B

Which of the following forms of online advertising is expected to grow the fastest between 2015 and 2019?

A) paid search B) sponsorships C) search engines D) rich media Answer: D

Slammer is an example of which of the following?

A) virus B) worm C) Trojan horse D) botnet Answer: B

42) A metered subscription model is most similar to which of the following revenue models? A) transaction fee B) freemium C) advertising D) affiliate

B Page Ref: 655 Difficulty: Moderate AACSB:

57) The New York Times introduced which of the following revenue models in 2011? A) paywall B) metered subscription C) advertising D) walled garden

B Page Ref: 656 Difficulty: Moderate AACSB:

45) Which of the following early leaders in social networking has been reinvented as a musicoriented social network? A) Vevo B) Myspace C) Polyvore D) Tumblr

B Page Ref: 709 Difficulty: Moderate AACSB:

C Page Ref: 706 Difficulty: Moderate AACSB:

The term ________ refer(s) to the advantages conferred as an auction site becomes larger in terms of visitors and products for sale. A) siphoning B) herd behavior C) network effects D) channel expansion

C) network effects

Which of the following involves a concern that one will never know how much the ultimate winner might have paid, or the true value to the final winner? A) herd behavior B) winner's regret C) seller's lament D) loser's lament

C) seller's lament

Which of the following types of auctions "shields the brand" of the seller? A) English auction B) Name Your Own Price auction C) Dutch auction D) penny auction

B) Name Your Own Price auction

Which of the following is not one of the major developments in supply chain management over the past two decades? supply chain simplification EDI accountable supply chains cloud computing

Cloud computing

_______ is another name for transorganizational business processes.

Collaborative commerce

B2B e-commerce websites: A) are a predecessor of industry consortia. B) tend to serve horizontal markets. C) are buyer-side solutions. D) are considered a type of EDI system.

B) tend to serve horizontal markets.

The lower the ________ compared to revenue, the higher the gross profit.

Cost of sales

1. Metcalfe's Law says that a) the speed of microprocessors doubles every 18 months b) the total value of a network is proportional to the square of the number of users c) the marginal value of a network is proportional to the number of users d) both b) and c) e) none of the above

11. Which of the following is not a potential benefit of e-commerce? a) Lower transaction costs b) Faster response times c) Greater interactivity d) Guaranteed higher profit margins e) Better matching of buyers and sellers

The profit a seller makes at auction is a function of all of the following except: arrival rate. auction length. the number of units for auction. bid increments.

Bid increments

Which of the following involves e-mailing another seller's bidders and offering the same product for less? transaction interception bid siphoning shill bidding persistent bidding

Bid siphoning

12. Options for copyright strategy in e-commerce include a) Technologies to prevent copying b) Lawsuits against possible copyright violators c) Free distribution of limited copyrighted content for promotional purposes d) All of the above e) Only b) and c)

6. Options for copyright strategy in e-commerce include a) Free distribution of limited copyrighted content for promotional purposes b) Lawsuits against possible copyright violators c) Technologies to prevent copying d) All of the above e) Only b) and c)

41 Copyright © 2015 Pearson Education, Inc. 19) Walmart's global supply chain has been criticized for all of the following except: A) exploiting labor in underdeveloped countries. B) bribing officials. C) wasting energy. D) failing to be efficient.

D Page Ref: 789-790 Difficulty: Moderate AACSB:

A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems. A) EDI B) ERP C) CPFR D) SCM

D) SCM

All of the following are examples of direct goods in the auto industry except: A) sheet steel. B) shatter-resistant glass. C) rubber molding. D) desktop computers.

D) desktop computers.

The amount of time visitors spend on a site is a measure of ________. A) reach B) loyalty C) conversation D) engagement

D) engagement

Which of the following is not one of the typical portal revenue sources? A) commissions on sales B) subscription fees C) tenancy deals D) referral fees

D) referral fees

Which of the following is not one of the typical portal revenue sources? A) commissions on sales B) subscription fees C) tenancy deals D) referral fees

D) referral fees

All of the following are weaknesses of EDI except:

EDI lacks universal standards

all of the following are weaknesses of EDI except

EDI lacks universal standards

An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis. e-distributor e-procurement company exchange industry consortium

Exchange

The Children's Internet Protection Act (CIPA) has been struck down by the U.S. Supreme Court as unconstitutional.

FALSE

Auction fraud accounts for the highest percentage of total Internet fraud reported to the Internet Crime Complaint Center.

False

Online retail constitutes about 20% of the total retail market today.

False

The average user spends more time on Google+ than on Facebook.

False

The increasing price of display ads have contributed to Yahoo's struggles over the last three years.

False

Which of the following happened during the period of time during which newspapers used a print-centric business model?

Google launched its search engine.

Section 230 of the Communications Decency Act (CDA) provides immunity for providers and users of interactive computer services (such as ISPs and Web sites) from being considered a publisher that might be liable for harmful content posted by others.

TRUE

The easiest and least expensive way to prevent threats to system integrity is to install anti-virus software.

TRUE

E-distributors operate in horizontal markets

True

Pinterest visitors spend ________ a month on Facebook.

about 15 minutes

Which of the following is a community of members who self-identify with a demographic or geographic category?

affinity community

Which of the following occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer?

channel conflict

_____ is another name for transorganizational business processes

collaborative commerce

Supply chain ________ refers to differentiating a firm's products or prices on the basis of superior supply chain management.

competition

Which of the following routes to a newspaper Web site generates the most digital ad revenue for the newspaper?

directly to a newspaper's home page

which of the following primarily deal with indirect goods

e distributors and e procurement net marketplaces

An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis

e-procurement Net marketplace

An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis.

e-procurement Net marketplace

Which of the following primarily involve long-term sourcing?

e-procurement Net marketplaces and industry consortia

ESPN.com is an example of a:

focused content portal.

All of the following are potential benefits of B2B e-commerce except:

lower price transparency

The last step in the procurement process is:

sending a remittance payment.

Automated order entry systems:

show goods from a single seller.

Which of the following e-commerce technology dimensions creates greater opportunities for cyberbullying?

social technology

All of the following were factors that precipitated the growth of MOTO except:

the growth of the cellular phone industry.

which of the following is not true about B2B electronic storefronts

they are a predecessor of automated order entry systems

which of the following is not a characteristic of the use of social networks in B2b e commerce

they are always private

____ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location

tight coupling

which of the following terms refers to the total flow of value among firms

total inter firm trade

Purchasing managers are the key players in the procurement process.

true

Walmart is the largest purchaser of consumer goods in the world.

true

In 2015, the total amount of B2B e-commerce in the United States was approximately:

$6.3 trillion.

In 2012, the total worth of goods sold on eBay was approximately: $75 million. $750 billion. $7.5 billion. $75 billion.

$75 billion.

8 Copyright © 2015 Pearson Education, Inc. 44) Virtual merchants face potentially large costs for all of the following except: A) building and maintaining a Web site. B) building and maintaining physical stores. C) building an order fulfillment infrastructure. D) developing a brand name.

B Page Ref: 577-578 Difficulty: Easy AACSB:

25) Which of the following is a leading social network in Brazil? A) VK B) Tuenti C) Orkut D) Qzone

C Page Ref: 707 Difficulty: Moderate AACSB:

41) Which of the following statements about collaborative commerce systems is not true? A) They involve a move from a transaction focus to a relationship focus. B) They may include both customers and suppliers. C) They are open, competitive marketplaces. D) They typically include a central data repository.

C Page Ref: 774-775 Difficulty: Moderate AACSB:

45) Which of the following primarily deal with direct goods? A) e-distributors and independent exchanges B) exchanges and e-procurement Net marketplaces C) exchanges and industry consortia D) e-procurement Net marketplaces and industry consortia

C Page Ref: 778 Difficulty: Moderate AACSB:

Facebook owns _______________. A) Pinterest B) Snapchat C) WhatsApp D) Tumblr

C) WhatsApp

________ refers to the use of secondary user IDs or bidders who have no actual intention to buy to artificially raise the price of an item. A) Bid manipulation B) Shill feedback C) Shill bidding D) Bid rigging

C) shill bidding

A ________ permits the consumer to monitor specific auctions of interest, requiring the consumer to pay close attention only in the last few minutes of bidding. A) bidding fee auction B) channel manager C) watch list D) rating system

C) watch list

Which of the following is another name for a private industrial network?

PTX

Which of the following is another name for a private industrial network? Net marketplace PTX EDI network hub-and-spoke system

PTX

Which of the following is not a risk or cost of Internet auctions? delayed consumption costs equipment costs price transparency trust risks

Price transparency

________ convergence describes the development of hybrid devices that can combine the functionality of two or more existing media platforms into a single device

Technological

Which of the following generates the largest share of media revenues? video games television newspapers radio

Television

One of the first online virtual communities was: The Well. Myspace. AOL. Salon.com.

The Well

________ pricing adjusts prices based on the location of the consumer. Personalization Utilization Trigger Fixed

Trigger

A community site created by a corporation is called a sponsored community site.

True

A(n) ________ 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

Healthboards is an example of a(n) ________ social network.

affinity-based

EDI systems: generally serve horizontal markets. are seller-side solutions. are based on a communications standard for sharing business documents. no longer play an important role in B2B commerce.

are based on a communications standard for sharing business documents.

The amount of time visitors spend on a site is a measure of ________.

engagement

All of the following have led to the development of outsourcing of manufacturing around the world except:

environmental concerns.

31) All of the following are advantages of online retail except: A) lower supply chain costs. B) lower cost of distribution. C) ability to change prices. D) faster delivery of goods.

faster delivery of goods.

an example of an indirect good in the fast food industry is

fax paper

62) The world's leading portal/search engine site, in terms of unique visitors, is: A) Yahoo. B) MSN/Bing. C) AOL. D) Google.

D Page Ref: 730 Difficulty: Moderate AACSB:

57) Yahoo owns all of the following except: A) Tumblr. B) Flickr. C) Aviate. D) Instagram.

D Page Ref: 735 Difficulty: Moderate AACSB:

ESPN.com is an example of a: A) general purpose portal. B) vertical market portal based on affinity group. C) vertical market portal based on focused content. D) focused content portal.

D) focused content portal

All of the following are weaknesses of EDI except:

EDI lacks universal standards.

Online readership of newspapers is declining by more than 10% a year

False

Regional supply chains provide lower short-term costs, but higher, longer-term risk protection.

False

Which of the following is the original social photo-sharing site? Vevo Flickr Instagram Tumblr

Flickr

________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids. Group buying Winner's regret Herd behavior Bid rigging

Herd behavior

Which of the following streaming movie and TV services is a joint venture between traditional entertainment producers? Netflix Hulu Zynga VUDU

Hulu

20) A Web site designed to give parents of home-schooled children a common discussion area would be classified as a(n): A) interest-based social network. B) affinity community. C) practice network. D) sponsored community.

A Page Ref: 714 Difficulty: Moderate AACSB:

Which of the following is the current standard used to protect Wi-Fi networks?

A) WEP B) TLS C) WPA2 D) WPA3 Answer: C

The display of a third-party's Web site or page within your own Web site is called:

A) cybersquatting. B) metatagging. C) framing. D) deep linking. Answer: C

Which of the following is not an example of an access control?

A) firewalls B) proxy servers C) digital signatures D) login passwords Answer: C

The liquidity of a market is measured by all of the following except: A) price transparency. B) number of buyers and sellers in market. C) volume of transactions. D) size of transactions.

A) price transparency.

Which of the following is not one of the central challenges facing the online retail industry?

lack of physical store presence

Which of the following is not one of the top factors a business should consider when planning an Internet auction?

location of auction

E-distributors:

make money by charging a mark-up on products they distribute.

The term supply-push refers to:

making products prior to orders being received based on estimated demand.

an e procurement net marketplace is sometimes referred to as a

many to many market

26) All of the following were parts of the vision during the early days of e-commerce except the belief that: 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.

new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business.

Approximately ________ of the Internet population in the United States reads magazines online

one-third

33) Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration? A) online Web catalog B) online order, in-store pickup C) online supply-push D) online promotions for offline purchases

online supply-push

An example of an indirect good in the fast-food industry is:

paper napkins.

The New York Times introduced which of the following revenue models in 2011?

paywall

Acquisition rate is a measure of the:

percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.

Which of the following is not one of the four basic principles shared by ethical schools of thought in western culture?

privacy

Which of the following is the fastest growing form of B2B e-commerce?

private industrial networks

Which of the following is the fastest growing form of B2B e-commerce? e-distributors exchanges private industrial networks industry consortiums

private industrial networks

49) An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium

A Page Ref: 779-780 Difficulty: Moderate AACSB:

What is the first step in developing an e-commerce security plan?

A) Create a security organization. B) Develop a security policy. C) Perform a risk assessment. D) Perform a security audit. Answer: C

________ refers to the ability to identify the person or entity with whom you are dealing on the Internet.

A) Nonrepudiation B) Authenticity C) Availability D) Integrity Answer: B

________ has the highest penetration of social network usage among the general population. A) North America B) Latin America C) Europe D) Asia-Pacific

A) North America

Office supplies are an example of:

indirect goods

Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve:

providing hands-on services

23) Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve: A) retailing goods. B) personalization. C) information brokering. D) providing hands-on services.

providing hands-on services.

PayPal is an example of what type of payment system?

A) online stored value payment system B) digital checking system C) accumulating balance system D) digital credit card system Answer: A

Recency refers to the:

A) percentage of customers who do not return during the next year after an initial purchase. B) time elapsed since the last visit made by a customer. C) percentage of existing customers who continue to buy on a regular basis. D) percentage of customers who return to the site within a year to make additional purchases. Answer: B

All of the following are limitations of the existing online credit card payment system except:

A) poor security. B) cost to consumers. C) cost to merchant. D) social equity. Answer: B

Which of the following is not a major e-commerce public safety and welfare issue?

A) regulation of gambling B) regulation of cigarette sales C) regulation of pornography D) regulation of taxation Answer: D

Which of the following online advertising formats attracted the least amount of spending in 2015?

A) search B) classifieds C) rich media D) e-mail Answer: D

B Page Ref: 643-646 Difficulty: Easy AACSB:

B Page Ref: 663 Difficulty: Moderate AACSB:

52) Which of the following is an example of an e-procurement Net marketplace? A) TheSeam B) Ariba C) Grainger D) SupplyOn

B Page Ref: 781 Difficulty: Moderate AACSB:

Which of the following is the market leader in C2C auctions? A) Amazon B) eBay C) uBid D) eBid

B) eBay

Which of the following is the market leader in C2C auctions? A) Amazon B) eBay C) uBid D) eBid

B) eBay

All of the following are potential benefits of B2B e-commerce except: A) increased production flexibility. B) increased product cycle time. C) increased opportunities to collaborate with suppliers and distributors. D) increased visibility and real-time information sharing among all participants in the supply chain network.

B) increased product cycle time.

Office supplies are an example of: A) direct goods. B) indirect goods. C) MRO goods. D) distributed goods.

B) indirect goods.

TheSeam is an example of an ________. A) exchange B) industry consortium C) e-procurement Net marketplace D) e-distributor

B) industry consortium

The time spent watching and reviewing auction bids is a part of ________ costs. A) pricing B) monitoring C) delayed consumption D) fulfillment

B) monitoring

The time spent watching and reviewing auction bids is a part of ________ costs. A) pricing B) monitoring C) delayed consumption D) fulfillment

B) monitoring

50) In 2014, Amazon engaged in a trade dispute with which of the following over the pricing of e-books? A) Simon & Schuster B) Penguin Random House C) Hachette D) Harper Collins

C Page Ref: 672 Difficulty: Easy AACSB:

43) What percentage of Facebook's users are 35 and over? A) almost one-quarter B) almost one-third C) almost one-half D) almost two-thirds

C Page Ref: 707 Difficulty: Moderate AACSB:

50) A(n) ________, in which the highest bidder wins, is the most common form of auction. A) Dutch Internet auction B) Japanese auction C) English auction D) reverse auction

C Page Ref: 723 Difficulty: Moderate AACSB:

Analysts predict that B2B e-commerce in the United States will grow by 2020 to approximately: A) $9 billion. B) $90 billion. C) $900 billion. D) $9 trillion.

D) $9 trillion.

________ is an example of a practice network? A) PredictWallstreet B) Instagram C) Debater D) Doximity

D) Doximity

FALSE

Consumers in auctions are driven solely by value maximization.

False

Priceline's auctions are seller-biased

False

Which of the following newspaper audience platforms has the higher percentage of readers?

Which of the following is not an example of a virtual merchant?

Dell

Which of the following is not a characteristic of the use of social networks in B2B e-commerce?

They are always private.

Bitcoins are an example of:

A) digital cash. B) virtual currency. C) a stored value payment system. D) an EBPP system. Answer: A

which of the following is an example of an e procurement net marketplace

Ariba

63) MSN is an example of a: A) general purpose portal. B) vertical market portal based on affinity group. C) vertical market portal based on focused content. D) focused content search engine.

A Page Ref: 734 Difficulty: Moderate AACSB:

38) EDI began as a(n) ________ system. A) document automation B) document elimination C) continuous replenishment D) MRP

A Page Ref: 766 Difficulty: Moderate AACSB:

57) The liquidity of a market is measured by all of the following except: A) price transparency B) number of buyers and sellers in market C) volume of transactions D) size of transactions

A Page Ref: 783 Difficulty: Moderate AACSB:

________ is an example of an e-distributor. A) Amazon Business B) PowerSource Online C) SupplyOn D) Elemica

A) Amazon Business

Which of the following is an example of an e-distributor?

AmazonSupply

analysts predict that B2B e commerce in the US will grow by 2016 to approx

5.6 trillion

In 2015, which age group has the fastest growing rate of Facebook usage?

64 and older

Around what percentage of Internet users in the United States use social networks on a regular basis? 25 % 33% 50% 67%

67%

In 2013, Facebook visitors spent about ________ hours a month on Facebook. 1.5 hours 3 hours 7 hours 15 hours

A Page Ref: 610 Difficulty: Easy AACSB:

A Page Ref: 668 Difficulty: Easy AACSB:

Which of the following is the fastest growing paid content area? online radio online games online music online video

Online Video

which of the following is another name for a private industrial network

PTX

In the early years of e-commerce, prior to 2000, single, white, young college-educated males with high income dominated the Internet in terms of percentage of Internet usage.

TRUE

In 2013, the total amount of B2B e-commerce in the United States was approximately: $4.7 billion. $47 billion. $470 billion. $4.7 trillion.

$4.7 trillion.

Analysts predict that B2B e-commerce in the United States will grow by 2019 to approximately:

$8.6 trillion.

In 2013, Amazon's e-book and media store contained around how many book titles? about 10,000 about 100,000 about 1 million about 10 million

1 million

How many retailers generate approximately 90% of all retail e-commerce sales?

1,000

Approximately ________ of the Internet population in the United States reads magazines online. one-quarter one-third one-half three-quarters

1/3

in 2012, the total amount of B2B commerce in the US was approx

4. 1 trillion

28) In 2014, approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store? A) 35% B) 55% C) 75% D) 95%

75%

Analysts predict that B2B e-commerce in the United States will grow by 2019 to approximately:

8.6 trillion

In the United States, the service sector accounts for approximately ________ % of the United States GDP.

34) Which of the following is not one of the factors required to charge for online content? A) multiple delivery methods B) focused market C) specialized content D) high perceived net value

A Page Ref: 646 Difficulty: Moderate AACSB:

50 Copyright © 2015 Pearson Education, Inc. 55) An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment. A) exchange B) e-distributor C) e-procurement company D) industry consortium

A Page Ref: 782 Difficulty: Moderate AACSB:

In 2015, what was the approximate Internet penetration rate for individuals that have attained less than a high-school education?

A) 25% B) 33% C) 66% D) 75% Answer: C

Around ________ % of households in the United States have broadband access to the Internet.

A) 45 B) 55 C) 75 D) 85 Answer: C

19) iVillage is an example of a(n): A) interest-based social network. B) affinity community. C) sponsored community. D) practice network.

B Page Ref: 714 Difficulty: Moderate AACSB:

________ was/were the first step in the development of B2B e-commerce. A) Electronic Data Interchange (EDI) B) Automated order entry systems C) Computerized inventory databases D) Digital invoices

B) Automated order entry systems

An example of an indirect good in the fast-food industry is: A) mustard. B) paper napkins. C) beef. D) sugar.

B) paper napkins.

37) Digital magazine ad revenues were expected to ________ in 2014. A) remain stable B) more than double C) grow over 20% D) continue to decrease

C Page Ref: 663 Difficulty: Difficult AACSB:

39) BlackPlanet is an example of a(n) ________ social network. A) practice-based B) interest-based C) affinity-based D) general

C Page Ref: 714 Difficulty: Moderate AACSB:

Around what percentage of in the total United States population uses social networks? A) 50% B) 60% C) 70% D) 80%

C) 70%

________ are the fastest growing form of B2B e-commerce. A) R-distributors B) Exchanges C) Private industrial networks D) Industry consortiums

C) Private industrial networks

C) Shill bidding

Facebook owns ________. A) Pinterest B) Snapchat C) WhatsApp D) Tumblr

C) WhatsApp

Which of the following is not one of the three defining characteristics of a portal? A) commerce B) content C) auctions D) navigation of the Web

C) auctions

Which of the following is not one of the three defining characteristics of a portal? A) commerce B) content C) auctions D) navigation of the Web

C) auctions

Supply chain ________ refers to differentiating a firm's products or prices based on superior supply chain management. A) management B) simplification C) competition D) collaboration

C) competition

Most inter-firm trade involves: A) spot purchasing of direct goods. B) contract purchasing of indirect goods. C) contract purchasing of direct goods. D) spot purchasing of indirect goods.

C) contract purchasing of direct goods.

Which of the following is not a risk or cost of Internet auctions? A) delayed consumption costs B) equipment costs C) price transparency D) trust risks

C) price transparency

C) seller's lament

17) In the United States, the service sector accounts for approximately ________ % of the United States GDP. A) 10 B) 30 C) 50 D) 80

D Page Ref: 593 Difficulty: Moderate AACSB:

63) What is the largest sector of the online travel services market in terms of revenue? A) hotel reservations B) car reservations C) cruise/tour reservations D) airline reservations

D Page Ref: 604 Difficulty: Moderate AACSB:

51) Which of the following is not true about sharing economy firms? A) Their growth is supported by the use of online reputation systems based on peer review. B) Sharing economy firms that choose a marketplace that is too small to generate sufficient and steady demand are likely to fail. C) Sharing economy firms facilitate access to resources. D) Sharing economy firms are a totally new phenomenon without precedent in the history of ecommerce.

D Page Ref: 614-615 Difficulty: Moderate AACSB:

20) In comparison to hours spent at work, the average American adult spends ________ consuming various media. A) a quarter as much time B) a third as much time C) an equivalent amount of time D) twice as much time

D Page Ref: 635 Difficulty: Moderate AACSB:

35) Which of the following is not a major contributing factor to net value? A) providing instantaneous, online access to information B) providing large, searchable historical archives C) enabling consumers to move online information to other documents easily D) offering a variety of subscription models

D Page Ref: 646 Difficulty: Moderate AACSB:

18 Copyright © 2015 Pearson Education, Inc. 32) Which of the following online newspaper sites or groups attracts the highest number of daily unique visitors? A) USA Today B) Washington Post C) Wall Street Journal D) The New York Times

D Page Ref: 652 Difficulty: Moderate AACSB:

D Page Ref: 653 Difficulty: Difficult AACSB:

D Page Ref: 657 Difficulty: Easy AACSB:

All of the following are aspects of content convergence except: language. design. production. distribution.

Language

Which of the following online newspaper sites or groups attracts the highest number of daily unique visitors? USA Today Washington Post Wall Street Journal The New York Times

NYT

The essential characteristic of ________ is that they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade.

Net marketplace

Conversion rate is a measure of the:

A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages. B) percentage of visitors who become customers. C) percentage of existing customers who continue to buy on a regular basis. D) percentage of shoppers who do not return within a year after their initial purchase. Answer: B

Confidentiality is sometimes confused with

A) privacy. B) authenticity. C) integrity. D) nonrepudiation. Answer: A

All of the following statements about public key cryptography are true except:

A) public key cryptography uses two mathematically related digital keys. B) public key cryptography ensures authentication of the sender. C) public key cryptography does not ensure message integrity. D) public key cryptography is based on the idea of irreversible mathematical functions. Answer: B.

All of the following are solutions to the problem of high monitoring costs except: A) seller rating systems. B) watch lists. C) proxy bidding. D) fixed pricing.

A) seller rating systems

Software that is used to obtain private user information such as a user's keystrokes or copies of e-mail is referred to as:

A) spyware. B) a backdoor. C) browser parasite. D) adware. Answer: A

PCI-DSS is a standard established by which of the following?

A) the banking industry B) the credit card industry C) the federal government D) the retail industry Answer: B

E-mailing buyers to warn them away from a seller is a type of auction fraud known as ________. A) transaction interference B) bid siphoning C) bid rigging D) shill bidding

A) transaction interference

E-mailing buyers to warn them away from a seller is a type of auction fraud known as ________. A) transaction interference B) bid siphoning C) bid rigging D) shill bidding

A) transaction interference

All of the following are examples of technology convergence except: the iPad. Amazon Books Publishing. Apple TV. smartphones.

Amazon Books Publishing

30) All of the following are examples of Amazon Web Services except: A) Amazon Prime. B) Amazon S3. C) Amazon EC2. D) Amazon Glacier.

Amazon Prime

Which of the following is an example of an e-procurement Net marketplace? A) TheSeam B) Ariba C) Grainger D) SupplyOn

B) Ariba

________ is another name for transorganizational business processes. A) Supply chain management B) Collaborative commerce C) B2B e-commerce D) Value chain management

B) Collaborative commerce

All of the following are weaknesses of EDI except: A) EDI is not well suited for electronic marketplaces. B) EDI lacks universal standards. C) EDI does not provide a real-time communication environment. D) EDI does not scale easily.

B) EDI lacks universal standards.

________ is the second leading social network in the United States in terms of monthly unique visitors. A) Twitter B) LinkedIn C) Instagram D) Pinterest

B) LinkedIn

______________ is the second leading social network in the United States in terms of monthly unique visitors. A) Twitter B) LinkedIn C) Instagram D) Pinterest

B) LinkedIn

All of the following have launched trials of Buy buttons except:

Tumblr.

Which of the following is not an example of a transaction broker?

an accountant

Omni-channel merchants are also referred to as:

bricks-and-clicks companies.

VWgroupsupply.com is an example of

e procurement net marketplace

EDI document structures are defined by:

industry committees.

The Seam is an example of an ________.

industry consortium

Which of the following is not one of the typical portal revenue sources?

referral fees

All of the following statements about the MOTO sector are true except:

the MOTO sector is also referred to as the specialty store sector.

Hollywood's practice of staggering the distribution of movies in different channels, such as box office and DVDs, is referred to as:

the release window.

All of the following are reasons why the movie industry is likely to be less disrupted by the Internet than the music industry except: movies are more difficult to move around the Web without detection. movies typically have far larger file sizes than music tracks. the movie industry is a concentrated oligopoly. there are fewer firms competing for distribution rights.

there are fewer firms competing for distribution rights.

Which of the following has the highest share of online retail sales?

virtual merchants

Which of the following statements is not true?

A) Apple's Touch ID stores a user's actual fingerprint. B) Biometric devices reduce the opportunity for spoofing. C) A retina scan is an example of a biometric device. D) Biometric data stored on an iPhone is encrypted. Answer: A

All of the following cases involved the doctrine of fair use except:

A) Brown Bag Software vs. Symantec Corp. B) Perfect 10, Inc. v. Amazon.com, Inc. et al. C) Field v. Google, Inc. D) Kelly v. Arriba Soft. Answer: A

Which of the following is a set of short-range wireless technologies used to share information among devices within about two inches of each other?

A) DES B) NFC C) IM D) text messaging Answer: B

Which of the following is the most common protocol for securing a digital channel of communication?

A) DES B) SSL/TLS C) VPN D) HTTP Answer: B

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?

A) Facebook B) Tumblr C) Google D) Instagram Answer: B

Which of the following has the Internet Advertising Bureau urged advertisers to abandon?

A) HTML B) HTML5 C) Adobe Flash D) Adobe Acrobat Answer: C

Which of the following statements about Instagram is not true? A) Instagram is owned by Twitter. B) Instagram is a photo-sharing app. C) Instagram is growing more quickly than Facebook. D) In terms of time spent per month by users, Instagram is second only to Facebook.

A) Instagram is owned by Twitter.

Which of the following is not a major trend in e-commerce payments in 2015-2016?

A) Mobile retail payment volume decreases. B) PayPal remains the most popular alternative payment method. C) Apple introduces Apple Pay. D) Payment by credit and/or debit card remains the dominant form of online payment. Answer: A

Which of the following is not one of the four main methods advertisers use to behaviorally target ads?

A) Nielsen ratings B) data collected from social networks C) integration of online data with offline data D) clickstream data Answer: A

________ refers to the ability to ensure that an e-commerce site continues to function as intended.

A) Nonrepudiation B) Authenticity C) Availability D) Integrity

Google introduced which of the following changes to its search algorithm in 2011 to weed out low quality sites from search results?

A) Penguin B) Hummingbird C) Panda D) Knowledge Graph Answer: C

All of the following are forms of collaboration among businesses except: A) RFQs. B) CPFR. C) demand chain visibility. D) marketing coordination and product design.

A) RFQs.

All of the following are methods of securing channels of communication except:

A) SSL/TLS. B) certificates. C) VPN. D) FTP. Answer: D

________ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers. A) Spot B) Indirect C) Vertical D) Bulk

A) Spot

In which of the following cases did the U.S. Supreme Court rule that basic business methods cannot be patented?

A) State Street Bank & Trust v. Signature Financial Group, Inc. B) Bilski et al. v. Kappos C) Alice Corporation Pty. Ltd. v. CLS Bank International D) Brown Bag Software v. Symantec Corp. Answer: C

________ refers to the links that connect business firms with one another to coordinate production. A) Supply chain B) B2B e-commerce C) Vertical market D) Horizontal market

A) Supply chain

Which of the following cases involved the issue of keywording?

A) Ticketmaster Corp. v. Tickets.com B) Bernina of America, Inc. v. Fashion Fabrics Int'l, Inc. C) Government Employees Insurance Company v. Google, Inc. D) E. & J. Gallo Winery v. Spider Webs Ltd. Answer: C

After Google, the next portal/search engine site with the most unique visitors is: A) Yahoo. B) Microsoft. C) AOL. D) Facebook.

A) Yahoo.

Registering a domain name similar or identical to trademarks of others to divert Web traffic to their own sites is an example of:

A) cybersquatting. B) cyberpiracy. C) framing. D) metatagging. Answer: B

Registering the domain name Faceboik.com with the intent to divert Web traffic from people misspelling Facebook.com is an example of:

A) cybersquatting. B) typosquatting. C) metatagging. D) linking. Answer: B

Linden Dollars, created for use in Second Life, are an example of:

A) digital cash. B) virtual currency. C) EBPP. D) peer-to-peer payment systems. Answer: B

An ________ provides an online catalog that represents the products of thousands of direct manufacturers. A) e-distributor B) e-procurement company C) exchange D) industry consortium

A) e-distributor

The fact that participating in an Internet auction means that you will need to purchase a computer, learn to use it, and pay for Internet access, is an example of ____________ costs. A) equipment B) fulfillment C) delayed consumption D) monitoring

A) equipment

Threatening negative feedback in return for a benefit is an example of: A) feedback extortion. B) offensive shill feedback. C) defensive shill feedback. D) sending spam.

A) feedback extortion.

A ________ is hardware or software that acts as a filter to prevent unwanted packets from entering a network.

A) firewall B) virtual private network C) proxy server D) PPTP Answer: A

Proxy servers are also known as:

A) firewalls. B) application gateways. C) dual home systems. D) packet filters. Answer: C

One partial solution to high monitoring costs is ________ pricing. A) fixed B) dynamic C) allocated D) distress

A) fixed

One partial solution to high monitoring costs is ________ pricing. A) fixed B) dynamic C) allocated D) distress

A) fixed

A website designed to give horse enthusiasts a common discussion area would be classified as a(n): A) interest-based social network. B) affinity community. C) practice network. D) sponsored community.

A) interest-based social network.

The overall rate of online credit card fraud is ________ of all online card transactions

A) less than 1% B) around 5% C) around 10% D) around 15% Answer: A

Which of the following statements illustrates the network effects that portals are subject to? A) Specialized vertical market portals attract only a small percentage of the audience, while a few large megaportals garner most of the market. B) The value of the portal to advertisers and consumers increases geometrically as reach increases. C) The greater the amount of content provided by a portal, the greater its value to the community. D) The greater number of portals available, the greater the potential audience for each.

B) The value of the portal to advertisers and consumers increases geometrically as reach increases.

________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location. A) Having an adaptive supply chain B) Tight coupling C) Supply-chain management D) Materials requirement planning

B) Tight coupling

Bloom is an example of a(n): A) interest-based social network B) affinity community C) sponsored community D) practice network

B) affinity community

Bloom is an example of a(n): A) interest-based social network. B) affinity community. C) sponsored community. D) practice network.

B) affinity community.

The term BYOD refers to employees: A) working from home. B) being allowed or encouraged to use their own mobile devices and laptops. C) using mobile devices for work. D) bringing work devices to the home.

B) being allowed or encouraged to use their own mobile devices and laptops.

Which of the following involves e-mailing another seller's bidders and offering the same product for less? A) transaction interception B) bid siphoning C) shill bidding D) persistent bidding

B) bid siphoning

Which of the following involves e-mailing another seller's bidders and offering the same product for less? A) transaction interception B) bid siphoning C) shill bidding D) persistent bidding

B) bid siphoning

Which of the following primarily deals with indirect goods? 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

B) e-distributors and e-procurement Net marketplaces

Which of the following primarily serves horizontal markets? A) e-distributors and exchanges B) e-distributors and e-procurement Net marketplaces C) e-procurement Net marketplaces and industry consortia D) exchanges and industry consortia

B) e-distributors and e-procurement Net marketplaces

An ________ primarily serves businesses that buy indirect goods on a contract purchasing basis. A) e-distributor B) e-procurement Net marketplace C) exchange D) industry consortium

B) e-procurement Net marketplace

Private industrial networks are direct descendants of: A) e-procurement Net marketplaces. B) existing EDI networks. C) independent exchanges. D) industry consortia.

B) existing EDI networks.

When did the first online communities form? A) the 1970s B) the 1980s C) the 1990s D) the 2000s

B) the 1980s

When did the first online communities form? A) the 1970s B) the 1980s C) the 1990s D) the 2000s

B) the 1980s

A(n) ________, in which the highest bidder wins, is the most common form of auction. A) Dutch Internet auction B) Japanese auction C) English auction D) reverse auction

C) English auction

On which of the following do users spend the least amount of time per month? A) Snapchat B) Tumblr C) LinkedIn D) Pinterest

C) LinkedIn

On which of the following do users spent the least amount of time per month? A) Snapchat B) Tumblr C) LinkedIn D) Pinterest

C) LinkedIn

The essential characteristic of ________ are they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade. A) industry communications B) exchanges C) Net marketplaces D) horizontal markets

C) Net marketplaces

________ of procurement officers use auctions to purchase goods. A) Eighty per cent (80%) B) Less than a quarter C) Over one third D) Twenty-five per cent (25%)

C) Over one third

Which of the following is another name for a private industrial network? A) industry consortia B) EDI system C) PTX D) PINS

C) PTX

Which of the following is a community of members who self-identify with a demographic or geographic category? A) practice network B) sponsored community C) affinity community D) interest-based social network

C) affinity community

Healthboards is an example of a(n) ________ social network. A) practice-based B) interest-based C) affinity-based D) general

C) affinity-based

Healthboards is an example of a(n) ___________ social network. A) practice-based B) interest-based C) affinity-based D) general

C) affinity-based

All of the following are benefits of auctions except: A) more efficient price discovery. B) lower transaction costs. C) decreased price transparency. D) increased market efficiency.

C) decreased price transparency

All of the following are benefits of auctions except: A) more efficient price discovery. B) lower transaction costs. C) decreased price transparency. D) increased market efficiency.

C) decreased price transparency.

All of the following have led to the development of outsourcing of manufacturing around the world except: A) technology. B) globalization of trade. C) environmental concerns. D) high levels of wage disparity between the developed and undeveloped worlds.

C) environmental concerns.

Instagram is an example of a(n): A) interest-based social network B) affinity community/social network C) general community D) practice network

C) general community

Instagram is an example of a(n): A) interest-based social network. B) affinity community/social network. C) general community/social network. D) practice network.

C) general community/social network.

EDI document structures are defined by: A) a single international standards body. B) individual suppliers and buyers. C) industry committees. D) each purchaser.

C) industry committees.

Which of the following is a method of inventory cost management that seeks to eliminate excess inventory? A) lean production B) sustainable production C) just-in-time production D) supply chain simplification

C) just-in-time production

Which social network functionality allows users to view a list of updates from friends as well as advertisements and notification in chronological order? A) message board B) timeline C) newsfeed D) friends' network

C) newsfeed

__________ of procurement officers use auctions to purchase goods. A) Eighty per cent (80%) B) Less than a quarter C) Over one third D) Twenty-five per cent (25%)

C) over one third

Which of the following is not a risk or cost of Internet auctions? A) delayed consumption costs B) equipment costs C) price transparency D) trust risks

C) price transparency

C) watch list

________ 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

All of the following typically favor the elimination of DRM except: hackers. technology companies. content owners. telecommunications pipeline companies.

Content Owners

47) All of the following are challenges for catalog merchants except: A) high costs of printing and mailing. B) building a credible Web site. C) the need to bring staff in or manage new technology. D) building sophisticated order entry and fulfillment systems.

D Page Ref: 588-589 Difficulty: Moderate AACSB:

D Page Ref: 593 Difficulty: Moderate AACSB:

41) Which of the following has the largest social network audience? A) North America B) Latin America C) Europe D) Asia-Pacific

D Page Ref: 707 Difficulty: Moderate AACSB:

39 Copyright © 2015 Pearson Education, Inc. 64) Facebook was the leader in U.S. ad spending revenues on social networks in 2014. What company earned the second most amount of ad spending revenue? A) MySpace B) LinkedIn C) Pinterest D) Twitter

D Page Ref: 713 Difficulty: Moderate AACSB:

58) Which of the following is not an important trend in B2B e-commerce in 2014-2015? A) concern about supply chain risk B) concern about supply chain sustainability C) concern about the accountability of supply chains D) concern about increasing use of the mobile platform

D Page Ref: 748 Difficulty: Moderate AACSB:

42) Which of the following is not a characteristic of the use of social networks in B2B ecommerce? A) It is typically unstructured. B) It helps develop a more personal relationship between participants in the supply chain. C) It enables participants to make decisions based on current conditions. D) They are always private.

D Page Ref: 776-777 Difficulty: Difficult AACSB:

48 Copyright © 2015 Pearson Education, Inc. 47) Which of the following primarily involve long-term sourcing? 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

D Page Ref: 778 Difficulty: Moderate AACSB:

________ 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. A) SCM B) Social e-commerce C) EDI D) Collaborative commerce

D) Collaborative commerce

_______________ is an example of a practice network? A) PredictWallstreet B) Instagram C) Debater D) Doximity

D) Doximity

Yahoo owns all of the following except: A) Tumblr. B) Flickr. C) Aviate. D) Instagram.

D) Instagram

Yahoo owns all of the following except: A) Tumblr. B) Flickr. C) Aviate. D) Instagram.

D) Instagram.

Priceline is an example of a(n): A) English auction. B) Dutch auction. C) penny auction. D) Name Your Own Price auction

D) Name Your Own Price auction

Priceline is an example of a(n): A) English auction. B) Dutch auction. C) penny auction. D) Name Your Own Price auction.

D) Name Your Own Price auction.

Which of the following is not a characteristic of the use of social networks in B2B e-commerce? A) It is typically unstructured. B) It helps develop a more personal relationship between participants in the supply chain. C) It enables participants to make decisions based on current conditions. D) They are always private.

D) They are always private.

Facebook was the leader in U.S. ad spending revenues on social networks in 2016. What company earned the second most amount of ad spending revenue? A) Snapchat B) LinkedIn C) Pinterest D) Twitter

D) Twitter

Facebook was the leader in U.S. ad spending revenues on social networks in 2016. What company earned the second most amount of ad spending revenue? A) Snapchat B) LinkedIn C) Pinterest D) Twitter

D) Twitter

________ has tentatively agreed to purchase Yahoo. A) AT&T B) Microsoft C) AOL D) Verizon

D) Verizon

________ has tentatively agreed to purchase Yahoo. A) AT&T B) Microsoft C) AOL D) Verizon

D) Verizon

________ refers to the feeling that one has paid too high a price for an item won at auction. A) Seller's lament B) Winner's lament C) Loser's regret D) Winner's regret

D) Winner's regret

________ refers to the feeling that one has paid too high a price for an item won at auction. A) Seller's lament B) Winner's lament C) Loser's regret D) Winner's regret

D) Winner's regret

D) accountable

The technology used by early communities was limited to mostly: A) instant messaging B) FTP C) email D) bulletin boards

D) bulletin boards

Which of the following primarily involves long-term sourcing? 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

D) e-procurement Net marketplaces and industry consortia

The amount of time visitors spend on a site is a measure of ________. A) reach B) loyalty C) conversation D) engagement

D) engagement

Walmart's global supply chain has been criticized for all of the following except: A) exploiting labor in underdeveloped countries. B) bribing officials. C) wasting energy. D) failing to be efficient.

D) failing to be efficient.

ESPN.com is an example of a: A) general purpose portal. B) vertical market portal based on affinity group. C) vertical market portal based on focused content. D) focused content portal.

D) focused content portal.

An ________ serves businesses that primarily buy direct goods on a contract purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium

D) industry consortium

Cisco estimates that by 2016, mobile traffic will represent ________% of all business Internet traffic. A) less than 5 B) around 10 C) around 15 D) over 25

D) over 25

What is the first step in the procurement process? A) negotiate price B) qualify the seller and its products C) issue a purchase order D) search for suppliers

D) search for suppliers

Howard Rheingold, one of The Well's early participants, coined the term ________, to refer to "cultural aggregations that emerge when enough people bump into each other often enough in cyberspace." A) social networks B) virtual communities C) community portals D) social forums

B) virtual communities

47) In 2014, e-book sales constituted about ________% of all consumer book sales. A) 10 B) 25 C) 32 D) 50

C Page Ref: 667 Difficulty: Moderate AACSB:

53) Which of the following is the largest online movie download distributor? A) Netflix B) Hulu C) iTunes D) Google Play

C Page Ref: 677 Difficulty: Moderate AACSB:

33) The majority of inter-firm trade involves: A) spot purchasing of direct goods. B) contract purchasing of indirect goods. C) contract purchasing of direct goods. D) spot purchasing of indirect goods.

C Page Ref: 759 Difficulty: Moderate AACSB:

The profit a seller makes at auction is a function of all of the following except: A) initial pricing B) auction length. C) the number of units for auction. D) watch lists

D) watch lists

Private industrial networks are direct descendants of: e-procurement Net marketplaces. existing EDI networks. independent exchanges. industry consortia.

Existing EDI networks

Online gambling is now legal throughout the United States.

FALSE

Consumers are primarily price-driven when shopping on the Internet.

False

In the wholesale model of e-book distribution, pricing power is with the publisher

False

Independent exchanges are the fastest growing form of online B2B e-commerce

False

Millennials are the second generation to be born into the digital revolution of the 20th century.

False

What is the first step in analyzing an ethical dilemma?

Identify and describe the facts.

Which of the following is the fastest growing segment of media revenues? television home video Internet media newspapers

Internet Media

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

Which of the following is not a major trend in online retail for 2015-2016?

Lunchtime purchases are the fastest growing time segment for online retail purchases.

Which of the following statements about cloud-based B2B systems is not true?

Much of the expense of the system is shifted from the B2B network provider to the firm

Which of the following statements about cloud-based B2B systems is not true?

Much of the expense of the system is shifted from the B2B network provider to the firm.

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.

Operating income or loss divided by net sales revenues is _________.

Operating margin

When sellers agree informally or formally to set floor prices below which they will not sell on auction items, this is known as: discriminatory pricing. price matching. bid rigging. the uniform pricing rule.

Price matching

________ are Internet-based communication environments that extend far beyond procurement to encompass truly collaborative commerce.

Private industrial networks

Elance.com is an example of a(n): demand aggregator. auction aggregator. auction solution provider. professional service auction.

Professional service auction

All of the following are forms of collaboration among businesses except:

RFQs

all of the following are forms of collaboration among businesses except

RFQs

All of the following are forms of collaboration among businesses except:

RFQs.

In 2013, which of the following forms of online entertainment produced the least amount of revenue? radio TV games motion pictures

Radio

Which of the following is not a current trend in online content?

Readership of newspapers in print form continues to exceed online readership.

A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems.

SCM

A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems. EDI ERP CPFR SCM

SCM

When there are few sellers but many buyers, a market will typically be: neutral (dominated by negotiation). seller-biased. buyer-biased. neutral, in the manner of a stock exchange.

Seller-biased

Google defended its Library Project on the grounds of fair use.

TRUE

The expansion of generic top-level domains recently authorized by ICANN is likely to be very disruptive in terms of trademark protection.

TRUE

Which of the following statements about the wholesale and agency models for selling books is not true? In the wholesale model, the retailer decides at what price to sell a book to the consumer. Amazon surprised traditional publishers by selling e-books for below their wholesale cost. The Justice Department sued Amazon for engaging in predatory pricing. The agency model was developed in response to Amazon's pricing strategies.

The Justice Department sued Amazon for engaging in predatory pricing.

Which of the following is categorized as an operating expense

The cost of products being sold

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

Internet users consume more media of all types than non-Internet users

True

Keeping bid increments low increases the number of bidders and the frequency of their bids

True

Lean production is an extension of just-in-time production methods.

True

MRO goods are also known as indirect goods.

True

Most of today's well-known portals began as search engines.

True

Naturebox is an example of a subscription-based retail revenue model.

True

Portals are not subject to network effects.

True

In 2015, Fortune 500 companies used ________ more than Facebook.

Twitter

Which of the following is the second leading social network in the United States in terms of number of members?

Twitter

27) Which of the following launched trials of Buy buttons in 2014? A) Facebook and Pinterest B) Twitter and Pinterest C) Twitter and Facebook D) Pinterest and Tumblr

Twitter and Facebook

Which of the following statements is not true?

VWGroupSupply.com is an industry consortium.

Which of the following had the highest online sales revenue in 2014?

Walmart

The world's leading portal/search engine site, in terms of unique visitors, is: Yahoo. MSN/Bing. AOL. Google.

Yahoo (answer google on test)

All of the following statements about social networks are true except Yahoo visitors spend more than twice as much time on Yahoo as Facebook visitors spend on Facebook. much more is spent on advertising on portals than on social networks. Facebook's share of the total social market is declining. the response to display ads on Facebook is lower than on portal sites.

Yahoo visitors spend more than twice as much time on Yahoo as Facebook visitors spend on Facebook.

29) Which of the following has introduced a tool known as Consumer Alerts to inform readers when a review is likely to be fraudulent? A) Yelp B) TripAdvisor C) Angie's List D) TripExpert

Yelp

Which of the following categories generates the highest percentage of online retail revenue?

apparel and accessories

Which of the following is not one of the three defining characteristics of a portal?

auctions

Which of the following was the first step in the development of B2B e-commerce?

automated order entry system

Which of the following was the first step in the development of B2B e-commerce?

automated order entry systems

which of the following was the first step in the development of B2b commerce

automated order entry systems

which of the following is not true about automated order entry systems

automated order entry systems no longer play an important role

Which of the following is not an important theme of B2B e-commerce in 2013-2014? concern about supply chain risk concern about supply chain volatility concern about the accountability of supply chains concern about the privacy of supply chains

concern about the privacy of supply chains

Which of the following is not a major trend in the online recruitment services industry?

disintermediation

Content convergence describes convergence in the design, production, and ________ of content.

distribution

An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis. e-distributor e-procurement company exchange industry consortium

e-distributor

Walmart's global supply chain has been criticized for all of the following except:

failing to be efficient.

A private industrial network is an independently owned online marketplace that connects many suppliers and buyers.

false

A business model that uses advertising revenue to provide some content for free, combined with an option to obtain additional content for a price is called a(n) ________ model.

freemium

Instagram is an example of a(n):

general community/social network.

Which of the following e-commerce technology dimensions has the potential to reduce cultural diversity in products?

global reach

Digital magazine ad revenues were expected to ________ in 2015.

grow over 20%

All of the following are potential benefits of B2B e-commerce except: increased production flexibility. increased product cycle time. increased opportunities to collaborate with suppliers and distributors. increased visibility and real-time information sharing among all participants in the supply chain network.

increased product cycle time.

Office supplies are an example of:

indirect goods.

EDI document structures are defined by: a single international standards body. by individual suppliers and buyers. industry committees. each purchaser

industry committees.

An ________ serves businesses that primarily buy direct goods on a contract purchasing basis.

industry consortium

All of the following are important trends in B2B e-commerce in 2015-2016, except:

industry demand for supply chain sustainability.

Which of the following occurs first in the process of content convergence related to books?

media migration

Which social network functionality allows users to easily post messages to the entire community? message board chat instant messaging e-mail

message board

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

All of the following are terms used to describe on-demand service companies except:

omni-channel commerce.

Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration?

online supply-push

Cisco estimates that by 2016, mobile traffic will represent ________% of all business Internet traffic.

over 25

When sellers agree informally or formally to set floor prices below which they will not sell on auction items, this is known as:

price matching

which of the following is the fastest growing form of online b2b e commerce

private industrial networks

Which of the following allows the consumer to enter a maximum price and the auction software automatically places incremental bids up to that maximum price as their original bid is surpassed?

proxy bidding

B2B e-commerce Web sites:

tend to serve horizontal markets.

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?

the Collective Utilitarian principle

Which ethical principle emphasizes putting oneself into the place of others and thinking of oneself as the object of the decision?

the Golden Rule

25) All of the following were factors that precipitated the growth of MOTO except: 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.

the growth of the cellular phone industry.

17) Which of the following streaming movie and TV services is a joint venture between traditional entertainment producers? A) Netflix B) Hulu C) Zynga D) VUDU

B Page Ref: 630 Difficulty: Easy AACSB:

16) Which of the following is not a current trend in online content? A) Sales of music in digital form produce more revenue than sales of physical units. B) Readership of newspapers in print form continues to exceed online readership. C) E-book sales growth slows. D) Console game sales stagnate in comparison to online gaming.

B Page Ref: 634 Difficulty: Moderate AACSB:

21) Which of the following generates the largest share of media revenues? A) video games B) television C) newspapers D) radio

B Page Ref: 637 Difficulty: Moderate AACSB:

39) DRM refers to a combination of ________ for protecting digital content. A) hardware and software methods B) technical and legal means C) user and publisher agreements D) local and remote policies

B Page Ref: 641 Difficulty: Easy AACSB:

26) Which of the following occurs first in the process of content convergence? A) media integration B) media migration C) media transformation D) media maturity

B Page Ref: 645 Difficulty: Difficult AACSB:

31) Which of the following statements about the newspaper industry is not true? A) Newspaper management was sluggish to respond to the opportunities on the Internet for news. B) Online readership of newspapers is declining. C) The emergence of search engines such as Google has had a major impact on the newspaper industry. D) Newspaper industry revenues have declined by almost 50% from 2000 to 2013.

B Page Ref: 647 Difficulty: Moderate AACSB:

43) Which of the following statements about the online newspaper audience is not true? A) Online newspaper readership is growing at more than 10% a year. B) The majority of newspaper readers read the news using a combination of the Web, print and mobile. C) About 75% of Internet users read newspaper content online. D) Online newspapers reach over 75% of individuals in households earning more than $100,000 a year.

B Page Ref: 652 Difficulty: Difficult AACSB:

B Page Ref: 664 Difficulty: Moderate AACSB:

46) Around what percentage of Amazon's top 100 selling books are now self-published? A) 10% B) 25% C) 33% D) 50%

B Page Ref: 664 Difficulty: Moderate AACSB:

59) Which of the following is the largest producer of revenues in the entertainment industry? A) radio B) television C) films D) video games

B Page Ref: 674 Difficulty: Moderate AACSB:

58) Which of the following statements about the music industry is not true? A) Music industry revenues have decreased by 50% since 2000. B) Digital revenues accounted for less than half of all U.S. music revenues in 2013. C) In 2013, sales of digital downloads of music declined. D) Streaming music is the fastest growing segment.

B Page Ref: 683-690 Difficulty: Moderate AACSB:

65) Which of the following is the fastest growing online gaming audience? A) casual gamers B) mobile gamers C) social gamers D) console gamers

B Page Ref: 691 Difficulty: Moderate AACSB:

38) When did the first online communities form? A) the 1970s B) the 1980s C) the 1990s D) the 2000s

B Page Ref: 705 Difficulty: Moderate AACSB:

26) The top four social network sites in the United States in terms of monthly unique visitors are: A) Facebook, Twitter, Pinterest, and LinkedIn. B) Facebook, Google+, Twitter and LinkedIn. C) Facebook, Google+, Pinterest and Twitter. D) Facebook, Twitter, Tumblr, and Pinterest.

B Page Ref: 709 Difficulty: Moderate AACSB:

30 Copyright © 2015 Pearson Education, Inc. 28) Which of the following statements is not true? A) In 2014, the top three search engines generated almost four times as much U.S. search and display advertising revenue than that generated by social network sites. B) Among social networks, Twitter generates the highest amount of advertising revenue. C) The most popular social network tool for large corporate businesses is LinkedIn. D) The number of Fortune 500 business firms using Pinterest rose to over 35% in 2014.

B Page Ref: 712-713 Difficulty: Moderate AACSB:

B Page Ref: 720 Difficulty: Easy AACSB:

46) Which of the following is a social network designed to appeal to disgruntled Facebook users that has promised never to sell its users' information to third parties? A) Myspace B) Ello C) Tagged D) Polyvore

B Page Ref: 720 Difficulty: Moderate AACSB:

35 Copyright © 2015 Pearson Education, Inc. 48) All of the following types of auctions involve single units except: A) English auction. B) Dutch Internet. C) Name Your Own Price auction. D) penny auction.

B Page Ref: 723-724 Difficulty: Moderate AACSB:

32 Copyright © 2015 Pearson Education, Inc. 36) Which of the following types of auctions "shields the brand" of the seller? A) English auction B) Name Your Own Price auction C) Dutch auction D) penny auction

B Page Ref: 724 Difficulty: Moderate AACSB:

37) 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? A) watch lists B) proxy bidding C) sealed bidding D) price matching

B Page Ref: 728 Difficulty: Moderate AACSB:

42) When sellers agree informally or formally to set floor prices below which they will not sell on auction items, this is known as: A) discriminatory pricing. B) price matching. C) bid rigging. D) the uniform pricing rule.

B Page Ref: 728 Difficulty: Moderate AACSB:

58) Which of the following involves e-mailing another seller's bidders and offering the same product for less? A) transaction interception B) bid siphoning C) shill bidding D) persistent bidding

B Page Ref: 728 Difficulty: Moderate AACSB:

61) Which of the following statements illustrates the network effects that portals are subject to? A) Specialized vertical market portals attract only 2-10% of the audience, while a few large megaportals garner most of the market. B) The value of the portal to advertisers and consumers increases geometrically as reach increases. C) The greater the amount of content provided by a portal, the greater its value to the community. D) The greater number of portals available, the greater the potential audience for each.

B Page Ref: 730 Difficulty: Moderate AACSB:

60) Which of the following statements is not true? A) The Volkswagen Group manages almost all of its procurement needs via the Internet. B) VWGroupSupply.com is an industry consortium. C) VWGroupSupply can be accessed by suppliers via standard Web browser software. D) The Volkswagen Group developed VWGroupSupply using technology from a number of vendors.

B Page Ref: 745-746 Difficulty: Moderate AACSB:

21) Which of the following was the first step in the development of B2B commerce? A) Electronic Data Interchange (EDI) B) automated order entry systems C) digital storefronts D) private industrial networks

B Page Ref: 750 Difficulty: Moderate AACSB:

42 Copyright © 2015 Pearson Education, Inc. 23) Which of the following statements about automated order entry systems is not true? A) They are typically owned by the suppliers. B) They no longer play an important role in B2B commerce. C) They show goods only from a single seller. D) They reduce the costs of inventory replenishment.

B Page Ref: 750 Difficulty: Moderate AACSB:

26) Which of the following is another name for a private industrial network? A) Net marketplace B) PTX C) EDI network D) hub-and-spoke system

B Page Ref: 752 Difficulty: Moderate AACSB:

46 Copyright © 2015 Pearson Education, Inc. 39) All of the following are potential benefits of B2B e-commerce except: A) increased production flexibility. B) increased product cycle time. C) increased opportunities to collaborate with suppliers and distributors. D) increased visibility and real-time information sharing among all participants in the supply chain network.

B Page Ref: 754 Difficulty: Moderate AACSB:

54) An example of an indirect good in the fast-food industry is: A) mustard. B) paper napkins. C) beef. D) sugar.

B Page Ref: 758 Difficulty: Easy AACSB:

32) Office supplies are an example of: A) direct goods. B) indirect goods. C) MRO goods. D) distributed goods.

B Page Ref: 758 Difficulty: Moderate AACSB:

36) ________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location. A) Having an adaptive supply chain B) Tight coupling C) Supply-chain management D) Materials requirement planning

B Page Ref: 762 Difficulty: Moderate AACSB:

43 Copyright © 2015 Pearson Education, Inc. 27) All of the following are weaknesses of EDI except: A) EDI is not well suited for electronic marketplaces. B) EDI lacks universal standards. C) EDI does not provide a real-time communication environment. D) EDI does not scale easily.

B Page Ref: 768 Difficulty: Moderate AACSB:

44) Which of the following primarily deal with indirect goods? 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

B Page Ref: 778 Difficulty: Moderate AACSB:

47 Copyright © 2015 Pearson Education, Inc. 43) Which of the following primarily serve horizontal markets? A) e-distributors and exchanges B) e-distributors and e-procurement Net marketplaces C) e-procurement Net marketplaces and industry consortia D) exchanges and industry consortia

B Page Ref: 778 Difficulty: Moderate AACSB:

50) Which of the following statements about e-distributors is not true? 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.

B Page Ref: 779-780 Difficulty: Difficult AACSB:

49 Copyright © 2015 Pearson Education, Inc. 51) An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis. A) e-distributor B) e-procurement Net marketplace C) exchange D) industry consortium

B Page Ref: 780 Difficulty: Moderate AACSB:

61) ________ is another name for transorganizational business processes. A) Supply chain management B) Collaborative commerce C) B2B e-commerce D) Value chain management

B Page Ref: 786 Difficulty: Moderate AACSB:

62) Private industrial networks are direct descendants of: A) e-procurement Net marketplaces. B) existing EDI networks. C) independent exchanges. D) industry consortia.

B Page Ref: 786 Difficulty: Moderate AACSB:

65) Which of the following is not a typical barrier to the implementation of a private industrial network? A) It requires participating firms to share sensitive data. 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 mindset and behavior of employees.

B Page Ref: 792 Difficulty: Moderate AACSB:

Which of the following statements about B2B marketing is not true? A) Mobile B2B marketing consumes only 5% of B2B marketing budgets. B) B2B marketing accounts for over 25% of the total amount spent on digital marketing and advertising. C) Content marketing is one of the primary and most effective marketing tools in B2B marketing. D) The disparity between the amount spent on B2B marketing compared to B2C e-commerce reflects the different nature of much of B2B e-commerce when compared to B2C e-commerce.

B) B2B marketing accounts for over 25% of the total amount spent on digital marketing and advertising.

All of the following types of auctions generally involve single units except: A) English auction. B) Dutch Internet. C) Name Your Own Price auction. D) penny auction.

B) Dutch Internet

All of the following types of auctions generally involve single units except: A) English auction. B) Dutch Internet. C) Name Your Own Price auction. D) penny auction.

B) Dutch Internet.

Which of the following is not a typical barrier to the implementation of a private industrial network? A) It requires participating firms to share sensitive data. 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 mindset and behavior of employees.

B) It requires the large network owners to give up some of its independence.

Each of the following is a top six social network site in the United States except: A) Tumblr B) Myspace C) Instagram D) Pinterest

B) Myspace

Which of the following early leaders in social networking has been reinvented as a music-oriented social network? A) Vevo B) Myspace C) Polyvore D) Tumblr

B) Myspace

Which of the following early leaders in social networking has been reinvented as a music-oriented social network? A) Vevo B) Myspace C) Polyvore D) Tumblr

B) Myspace

Each of the following is a top six social network site in the United States except: A) Tumblr. B) Myspace. C) Instagram. D) Pinterest.

B) Myspace.

Which of the following types of auctions "shields the brand" of the seller? A) English auction B) Name Your Own Price auction C) Dutch auction D) penny auction

B) Name Your Own Price auction

________ allows the consumer to enter a maximum price and the auction software automatically places incremental bids up to that maximum price as their original bid is surpassed. A) A watch list B) Proxy bidding C) Sealed bidding D) Price matching

B) Proxy bidding

B) The value of the portal to advertisers and consumers increases geometrically as reach increases.

All of the following are important trends in B2B e-commerce in 2016-2017, except: A) the growing emphasis on obtaining real-time data. B) growing emphasis on lowest cost supply chains. C) generation and management of huge big data repositories. D) an increase in regional manufacturing and supply chains.

B) growing emphasis on lowest cost supply chains.

When sellers agree informally or formally to set floor prices below which they will not sell on auction items, this is known as: A) discriminatory pricing. B) price matching. C) bid rigging. D) distress pricing.

B) price matching

B) price matching.

There are approximately ________ online newspapers in the world. 1,000 10,000 25,000 50,000

10,000

In 2013, total paid online content was estimated to be: 150 million. 1.5 billion. 15 billion. 150 billion.

15 billion

As of 2013, around how many Kindles of all types have been sold in the United States? 8 million 80 million 800 million 8 billion

800 million

39) Operating margin is defined as: A) operating income or loss divided by net sales revenues. B) operating income or loss divided by total operating expenses. C) net sales revenues divided by net income or loss. D) net assets divided by net liabilities.

A Page Ref: 576 Difficulty: Moderate AACSB:

41) Which of the following would not be considered a current asset? A) long-term investments B) cash C) accounts receivable D) marketable securities

A Page Ref: 577 Difficulty: Moderate AACSB:

43) For a quick check of a firm's short-term financial health, examine its: A) working capital. B) gross margin. C) long-term debt. D) cost of sales.

A Page Ref: 577 Difficulty: Moderate AACSB:

45) All of the following statements about Amazon are true except: A) Amazon did not show a profit in 2013. B) Amazon is at the forefront of the "infrastructure as a service" market. C) eBay can be considered a competitor of Amazon's. D) Amazon continues to generate revenue primarily by selling products.

A Page Ref: 578-587 Difficulty: Difficult AACSB:

49) The term supply-push refers to: 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.

A Page Ref: 590 Difficulty: Moderate AACSB:

54) All of the following services require extensive personalization except: A) financial services. B) legal services. C) medical services. D) accounting services.

A Page Ref: 596 Difficulty: Moderate AACSB:

57) In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized Web site. A) account aggregation B) a financial portal C) integrated financial services D) EBPP systems

A Page Ref: 599 Difficulty: Moderate AACSB:

58) The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line? A) term life insurance B) automobile insurance C) health insurance D) property and casualty insurance

A Page Ref: 600-601 Difficulty: Moderate AACSB:

59) All of the following statements about the online insurance industry are true except: 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 led to a decline in term life insurance prices industry-wide. D) the industry has been very successful in attracting visitors searching for information.

A Page Ref: 600-601 Difficulty: Moderate AACSB:

61) Craigslist is a player in which of the following online services markets? A) real estate services and career services B) insurance services and brokerage services C) travel services D) online accounting services

A Page Ref: 602 Difficulty: Easy AACSB:

65) Which of the following is not a major trend in the online recruitment services industry? A) disintermediation B) localization C) social networking D) consolidation

A Page Ref: 611-612 Difficulty: Moderate AACSB:

19) Which of the following three forms of media account for over 95% of the hours spent consuming media? A) television, radio, and the Internet B) television, magazines, and the Internet C) the Internet, radio, and newspapers D) television, the Internet, and newspapers

A Page Ref: 635 Difficulty: Difficult AACSB:

23) Which of the following was the top online video site in 2014 in terms of unique viewers? A) Google Sites B) Facebook C) AOL D) Yahoo Sites

A Page Ref: 640 Difficulty: Easy AACSB:

25) All of the following are aspects of content convergence except: A) language. B) design. C) production. D) distribution.

A Page Ref: 643-644 Difficulty: Easy AACSB:

29) Which of the following happened during the period of time during which newspapers used a print-centric business model? A) Google launched its search engine. B) Apple introduced the iPhone. C) Facebook opened to the public. D) The adoption of smartphone and tablets has grown rapidly.

A Page Ref: 649-651 Difficulty: Moderate AACSB:

24 Copyright © 2015 Pearson Education, Inc. 56) Which of the following statements about the television and premium video industry is not true? A) Apple's iTunes store is the leading distributor of streaming video. B) The television industry is the major source of premium video on the Internet. C) Americans spend more time watching television on a computer or mobile device than they do on a traditional television set. D) Over-the-top entertainment services are a threat to cable television distributors.

A Page Ref: 677-678 Difficulty: Moderate AACSB:

64) Which of the following statements about gaming is not true? A) The sale of video game hardware and boxed software no longer generates a majority of video game industry's revenue. B) Words with Friends is an example of a social game. C) In 2013, around 50% of smartphone owners played games on their phones. D) About 50% of all Internet users are online gamers.

A Page Ref: 690-692 Difficulty: Moderate AACSB:

16) One of the first online virtual communities was: A) The Well. B) Myspace. C) AOL. D) Salon.com.

A Page Ref: 705 Difficulty: Moderate AACSB:

36 Copyright © 2015 Pearson Education, Inc. 52) Which of the following statements about Instagram is not true? A) Instagram is owned by Twitter. B) Instagram is a photo-sharing app. C) Facebook developed its Camera app to compete with Instagram D) Instagram had over 200 million active users in 2014.

A Page Ref: 708 Difficulty: Moderate AACSB:

22) Which social network functionality allows users to easily post messages to the entire community? A) message board B) chat C) instant messaging D) e-mail

A Page Ref: 719 Difficulty: Moderate AACSB:

29) All of the following statements are true except: A) in a B2C auction, consumers sell goods to other consumers. B) auctions constituted a significant part of B2B e-commerce in 2014. C) over a third of procurement officers use auctions to procure goods. D) Sam's Club is an example of an online B2C auction

A Page Ref: 720 Difficulty: Moderate AACSB:

34) The fact that participating in an Internet auction means that you will need to purchase a computer, learn to use it, and pay for Internet access, is an example of ________ costs. A) equipment B) fulfillment C) delayed consumption D) monitoring

A Page Ref: 722 Difficulty: Moderate AACSB:

59) Threatening negative feedback in return for a benefit is an example of: A) feedback extortion. B) offensive shill feedback. C) defensive shill feedback. D) sending spam.

A Page Ref: 728 Difficulty: Moderate AACSB:

18) Which of the following is not a current major trend in B2B e-commerce? A) Large firms move toward consolidating regional B2B systems into global systems. B) The Internet of Things begins to impact how supply chains operate. C) Firms place a growing emphasis on rapid-response and optimal supply chain rather than lowest-cost supply chains. 40 Copyright © 2015 Pearson Education, Inc. D) B2B systems move towards cloud computing providers and away from individual corporate data centers.

A Page Ref: 748 Difficulty: Moderate AACSB:

22) Which of the following terms refers to the links that connect business firms with one another to coordinate production? A) supply chain B) seller-side solutions C) multi-tier exchange D) liquidity

A Page Ref: 750 Difficulty: Moderate AACSB:

25) Which of the following statements about B2B e-commerce Web sites is not true? A) They are a predecessor of automated order entry systems. B) They tend to serve horizontal markets. C) They are seller-side solutions. D) They are usually considered a type of Net marketplace.

A Page Ref: 751-752 Difficulty: Moderate AACSB:

A Page Ref: 755 Difficulty: Moderate AACSB:

45 Copyright © 2015 Pearson Education, Inc. 35) Which of the following statements about cloud-based B2B systems is not true? A) Much of the expense of the system is shifted from the B2B network provider to the firm. B) B2B network providers charge customers on a demand basis. C) Network effects apply, enabling the spreading of costs. D) Cloud-based B2B data networks can be implemented in short periods of time.

A Page Ref: 769-770 Difficulty: Moderate AACSB:

48) An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers. A) e-distributor B) e-procurement company C) exchange D) industry consortium

A Page Ref: 779 Difficulty: Moderate AACSB:

16) AmazonSupply is an example of an: A) e-distributor. B) e-procurement Net marketplace. C) exchange. D) industry consortium.

A Page Ref: 780 Difficulty: Moderate AACSB:

64) All of the following are forms of collaboration among businesses except: A) RFQs. B) CPFR. C) demand chain visibility. D) marketing coordination and product design.

A Page Ref: 788, 791--792 Difficulty: Moderate AACSB:

6) Online buyers constitute approximately ________ % of the online Internet audience.

A) 65 B) 75 C) 85 D) 95 Answer: B

The Data Encryption Standard uses a(n) ________-bit key

A) 8 B) 56 C) 256 D) 512 Answer: B

Which of the following statements is not true?

A) A VPN provides both confidentiality and integrity. B) A VPN uses both authentication and encryption. C) A VPN uses a dedicated secure line. D) The primary use of VPNs is to establish secure communications among business partners. Answer: C

Which of the following is an example of an integrity violation of e-commerce security?

A) A Web site is not actually operated by the entity the customer believes it to be. B) A merchant uses customer information in a manner not intended by the customer. C) A customer denies that he or she is the person who placed the order. D) An unauthorized person intercepts an online communication and changes its contents. Answer: D

Which of the following statements is not true?

A) A majority of states require companies that maintain personal data on their residents to publicly disclose when a security breach affecting those residents has occurred. B) The USA Patriot Act broadly expanded law enforcement's investigative and surveillance powers. C) The Cybersecurity Information Sharing Act is strongly supported by most large technology companies and privacy advocates. D) The Federal Trade Commission has asserted that it has authority over corporations' data security practices. Answer: C

All of the following are prominent hacktivist groups except:

A) Anonymous. B) LulzSec. C) Impact Team. D) Avid Life. Answer: D

All of the following statements about Apple Pay are true except which of the following?

A) Apple Pay is available for both iPhone 5s and iPhone 6s. B) Apple Pay is based on Touch ID biometric fingerprint scanning. C) Apple Pay can be used for mobile payments at the point of sale at a physical store. D) Apple Pay relies on NFC chip technology. Answer: A

A) Instagram is owned by Twitter.

Which of the following statements about cloud-based B2B systems is not true? A) Much of the expense of the system is shifted from the B2B network provider to the firm. B) B2B network providers charge customers on a demand basis. C) Network effects apply, enabling the spreading of costs. D) Cloud-based B2B data networks can be implemented in short periods of time.

A) Much of the expense of the system is shifted from the B2B network provider to the firm.

________ refers to the ability to ensure that e-commerce participants do not deny their online actions.

A) Nonrepudiation B) Authenticity C) Availability D) Integrity Answer: A

_____________ has the highest penetration of social network usage among the general population. A) North America B) Latin America C) Europe D) Asia-Pacific

A) North America

1) One of the first online virtual communities was: A) The Well. B) Myspace. C) AOL. D) Salon.com.

A) The Well

One of the first online virtual communities was: A) The Well B) Myspace C) AOL D) Salon.com

A) The Well

Which of the following statements about the patent battle between Apple and Samsung is not true?

A) The courts have decided that Apple does not have a valid patent on the iPhone's user interface. B) The courts have ruled that Samsung has infringed on some of Apple's patents. C) Analysts believe the cost to Apple of this litigation is at least equal to the damage award it may ultimately be paid. D) Over the last five years of litigation, Samsung has changed its interface and functionality to greatly reduce its infringement. Answer: A

All of the following statements about PKI are true except:

A) The term PKI refers to the certification authorities and digital certificate procedures that are accepted by all parties. B) PKI is not effective against insiders who have a legitimate access to corporate systems including customer information. C) PKI guarantees that the verifying computer of the merchant is secure. D) The acronym PKI stands for public key infrastructure. Answer: C

Which of the following statements about EDI systems is true? A) They typically serve vertical markets. B) They are seller-side solutions. C) They evolved from private trading exchanges. D) They still play an important role in B2C commerce.

A) They typically serve vertical markets.

Which of the following is a leading social network in Russia? A) VK B) Tuenti C) Orkut D) Mixi

A) VK

Which of the following is a leading social network in Russia? A) VK B) Tuenti C) Orkut D) Mixi

A) VK

All of the following are examples of social/mobile peer-to-peer payment systems except:

A) Venmo. B) Bill Me Later. C) Square Cash. D) Google Wallet. Answer: B

After Google, the next portal/search engine site with the most unique visitors is: A) Yahoo. B) Microsoft. C) AOL. D) Facebook

A) Yahoo

In 2014, Sony experienced which of the following?

A) a high-profile data breach B) a DDoS attack that shut down its Web site C) a hacktivist attack to protest its employment policies D) a browser parasite Answer: A

All of the following are current major trends in B2B e-commerce, except: A) a movement toward implementing highly centralized supply chains to reduce risk. B) a growing emphasis on the use of business analytics software (business intelligence) to understand very large data sets. C) a growing emphasis on rapid-response and adaptive supply chains rather than lowest-cost supply chains. D) an increase in regional manufacturing and supply chains to attempt to combat the risks of far-flung global networks.

A) a movement toward implementing highly centralized supply chains to reduce risk.

To allow lower-level employees access to the corporate network while preventing them from accessing private human resources documents, you would use:

A) access controls. B) an authorization management system. C) security tokens. D) an authorization policy. Answer: B

52) Which of the following dimensions of e-commerce security is not provided for by encryption?

A) confidentiality B) availability C) message integrity D) nonrepudiation Answer: B

Which of the following dimensions of e-commerce security is not provided for by encryption?

A) confidentiality B) availability C) message integrity D) nonrepudiation Answer: B

Megaupload's founder, Kim Dotcom, was arrested in connection with which of the following?

A) copyright infringement B) patent infringement C) trademark infringement D) privacy violation Answer: A

Which of the following involves bypassing the target site's home page and going directly to a content page?

A) cybersquatting B) metatagging C) framing D) deep linking Answer: D

All of the following are used for authentication except:

A) digital signatures. B) certificates of authority. C) biometric devices. D) packet filters. Answer: D

Electronic Data Interchange (EDI) began as a(n) ________ system. A) document automation B) document exchange C) invoice generation D) MRP

A) document automation

An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium

A) e-distributor

NeweggBusiness is an example of a(n) ________. A) e-distributor B) exchange C) private industrial network D) e-procurement Net marketplace

A) e-distributor

All of the following experienced high-profile data breaches in 2014 except:

A) eBay. B) Home Depot. C) Amazon. D) Sony. Answer: C

7) In modeling online consumer behavior, the concept of "consumer skills" refers to the:

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. Answer: C

The fact that participating in an Internet auction means that you will need to purchase a computer, learn to use it, and pay for Internet access, is an example of ________ costs. A) equipment B) fulfillment C) delayed consumption D) monitoring

A) equipment

An intrusion detection system can perform all of the following functions except:

A) examining network traffic. B) setting off an alarm when suspicious activity is detected. C) checking network traffic to see if it matches certain patterns or preconfigured rules. D) blocking suspicious activity. Answer: D

An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment. A) exchange B) e-distributor C) e-procurement company D) industry consortium

A) exchange

Threatening negative feedback in return for a benefit is an example of: A) feedback extortion. B) offensive shill feedback. C) defensive shill feedback. D) sending spam.

A) feedback extortion

Which of the following e-commerce technology dimensions creates greater opportunities for cyberbullying?

A) information density B) interactivity C) social technology D) ubiquity Answer: C

A website designed to give horse enthusiasts a common discussion area would be classified as a(n): A) interest-based social network B) affinity community C) practice network D) sponsored community

A) interest-based social network

In 2014, online bill payment accounted for ________ of all bill payments, while paper checks accounted for ________.

A) less than 10%; less than 25% B) about 25%; about 10% C) more than 50%; less than 25% D) 100%; 0% Answer: C

E-distributors: A) make money by charging a mark-up on products they distribute. B) usually operate "private" markets. C) operate in vertical markets. D) focus on selling direct products

A) make money by charging a mark-up on products they distribute.

Which of the following is not one of the main stages of the online purchasing process?

A) post-purchase service and loyalty B) awareness C) engagement D) conversation Answer: D

A(n) ________ offers members focused discussion groups, help, information, and knowledge related to an area of shared practice. A) practice network B) general community C) affinity community D) interest-based social network

A) practice network

Symmetric key cryptography is also known as:

A) public key cryptography. B) secret key cryptography. C) PGP. D) PKI. Answer: B

All of the following are online communications that are used to support the evaluation of alternatives stage of the consumer decision process except:

A) search engines. B) online catalogs. C) social networks. D) targeted banner ads. Answer: D

All of the following are solutions to the problem of high monitoring costs except: A) seller rating systems. B) watch lists. C) proxy bidding. D) fixed pricing.

A) seller rating systems.

The last step in the procurement process is: A) sending a remittance payment. B) sending the invoice. C) shipping the goods. D) delivering the goods.

A) sending a remittance payment.

Automated order entry systems: A) show goods from a single seller. B) increased the costs of inventory replenishment. C) are typically owned by the purchasing firm. D) no longer play an important role in B2B commerce.

A) show goods from a single seller.

Accessing data without authorization on Dropbox is an example of which of the following?

A) social network security issue B) cloud security issue C) mobile platform security issue D) sniffing Answer: B

eCPM measures the ROI of an ad by dividing the total earnings of the ad by which of the following?

A) the total number of impressions B) the total number of impressions in hundreds C) the total number of impressions in thousands D) the total number of impressions in millions Answer: C

Which of the following is the leading cause of data breaches?

A) theft of a computer B) accidental disclosures C) hackers D) DDoS attacks Answer: C

Which of the following e-commerce technology dimensions has the potential to reduce cultural diversity in products?

A) ubiquity B) interactivity C) information density D) global reach Answer: D

A(n) ________ market is one that provides expertise and products for a specific industry, such as automobiles. A) vertical B) horizontal C) indirect D) buyer-biased

A) vertical

Which of the following is an example of an online privacy violation?

A) your e-mail being read by a hacker B) your online purchasing history being sold to other merchants without your consent C) your computer being used as part of a botnet D) your e-mail being altered by a hacker Answer: B

16) Which of the following is not a major trend in online retail for 2014-2015? A) About 90% of Internet users in the United States are now online shoppers. B) Lunchtime purchases are the fastest growing time segment for online retail purchases. C) Online retailers increase the use of interactive marketing tools such as blogs and usergenerated content. D) Virtual merchants using a subscription-based revenue model emerge.

B Page Ref: 567 Difficulty: Moderate AACSB:

B Page Ref: 575 Difficulty: Difficult AACSB:

37) Gross margin is defined as gross profit: A) minus total operating expenses. B) divided by net sales revenues. C) divided by cost of sales. D) minus net income.

B Page Ref: 575 Difficulty: Moderate AACSB:

18) Eight of the top ten fastest-growing e-commerce merchants from 2003 to 2013 were: A) virtual merchants. B) bricks-and-clicks companies. C) catalog merchants. D) manufacturer-direct firms.

B Page Ref: 587 Difficulty: Moderate AACSB:

19) Omni-channel merchants are also referred to as: A) virtual merchants. B) bricks-and-clicks companies. C) catalog merchants. D) manufacturer-direct firms.

B Page Ref: 587 Difficulty: Moderate AACSB:

50) All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: A) moving to a demand-pull model. B) high cost structures. C) developing a fast-response online order and fulfillment system. D) channel conflict.

B Page Ref: 589-590 Difficulty: Moderate AACSB:

13 Copyright © 2015 Pearson Education, Inc. 64) Which of the following statements is not true? 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.

B Page Ref: 603-606 Difficulty: Difficult AACSB:

Howard Rheingold, one of The Well's early participants, coined the term ____________, to refer to "cultural aggregations that emerge when enough people bump into each other often enough in cyberspace." A) social networks B) virtual communities C) community portals D) social forums

B) virtual communities

13. Which of the following statements is least accurate? a) Online exchanges and similar intermediaries provide matching services b) Matching can involve buyers and sellers, or other forms of interaction c) Online matching does not work because the information is unreliable d) Online matching can involve sophisticated processes and institutions e) Online matching makes some markets for physical goods more like financial asset markets in speed and efficiency

21) The MOTO sector of the retail industry is most similar to the ________ sector. A) specialty stores B) general merchandise C) online retail sales D) consumer durables

C Page Ref: 568 Difficulty: Moderate AACSB:

7 Copyright © 2015 Pearson Education, Inc. 40) What is another name for pro forma earnings? A) net margin B) operating income C) earnings before income taxes, depreciation, and amortization (EBITDA) D) generally accepted accounting principles (GAAP) earnings

C Page Ref: 577 Difficulty: Difficult AACSB:

42) Current liabilities are debts of the firm that will be due within: A) three months. B) six months. C) one year. D) two years.

C Page Ref: 577 Difficulty: Moderate AACSB:

53) Which of the following is not an example of a transaction broker? A) a stockbroker B) a real estate agent C) an accountant D) an employment agency

C Page Ref: 593 Difficulty: Moderate AACSB:

62) Which of the following best explains why the service sector is a natural avenue for ecommerce? A) The service sector is less geographically reliant and more globally oriented. B) The service sector has historically been more technology-reliant. C) Much of the value in services is based on the collection, storage, and exchange of information. D) It is not; services are difficult to translate to e-commerce because they rely on face-to-face communication and barter.

C Page Ref: 596 Difficulty: Moderate AACSB:

11 Copyright © 2015 Pearson Education, Inc. 56) Which of the following statements about online banking is not true? A) Top mobile banking activities include checking balances and transferring money from one account to another. B) Online and mobile banking transactions provide significant costs savings for banks. C) All of the purely online banks (those that operate without a network of branches) have gone out of business. D) Over 50% of the adult U.S. population used online banking in 2014.

C Page Ref: 597 Difficulty: Difficult AACSB:

55) Which of the following is a sharing economy company focused on the rental of lodging? A) Uber B) Lyft C) Airbnb D) Task Rabbit

C Page Ref: 614-615 Difficulty: Easy AACSB:

33) Which of the following statements about YouTube is not true? A) There are now over 1 million YouTube channels worldwide. B) In 2013, YouTube announced paid-subscription channels. C) YouTube has not yet shown a profit. D) The three most popular YouTube videos in terms of total views are music videos.

C Page Ref: 630-632 Difficulty: Moderate AACSB:

22) Which of the following is the fastest growing segment of media revenues? A) television B) home video C) Internet media D) newspapers

27) Which of the following accounts for the second largest amount of paid online content revenues in the United States in 2014? A) online video games B) Internet radio C) online music D) online TV and movies

C Page Ref: 639 Difficulty: Difficult AACSB:

38) All of the following typically favor the elimination of DRM except: A) hackers. B) technology companies. C) content owners. D) telecommunications pipeline companies.

C Page Ref: 641-642 Difficulty: Difficult AACSB:

30) Which of the following was the most troubled segment of the publishing industry in 2014? A) books B) magazines C) newspapers D) periodicals

C Page Ref: 647 Difficulty: Moderate AACSB:

41) Which of the following routes to a newspaper Web site generates the most digital ad revenue for the newspaper? A) via a search engine B) via a social media site such as Facebook C) directly to a newspaper's home page D) via an online video

C Page Ref: 654 Difficulty: Moderate AACSB:

49) Which of the following is true about book publishing revenues over the past five years? A) They have decreased by 25%. B) They have increased by 25%. C) They have remained stable. D) They have decreased by 10%.

C Page Ref: 667 Difficulty: Moderate AACSB:

45) In 2014, Amazon's e-book and media store contained around how many book titles? A) about 10,000 B) about 100,000 C) about 1 million D) about 10 million

C Page Ref: 669 Difficulty: Moderate AACSB:

51) Which of the following statements about the wholesale and agency models for selling books is not true? A) In the wholesale model, the retailer decides at what price to sell a book to the consumer. B) Amazon surprised traditional publishers by selling e-books for below their wholesale cost. C) Amazon supports the agency model. D) A result of the agency model was that Amazon's prices on e-books rose.

C Page Ref: 671 Difficulty: Difficult AACSB:

22 Copyright © 2015 Pearson Education, Inc. 48) Which of the following was sued by the Justice Department for violating antitrust laws in connection with e-books? A) Amazon B) Google C) Apple D) Barnes & Noble

C Page Ref: 671 Difficulty: Moderate AACSB:

49) Which of the following companies was an early investor in Facebook? A) Google B) Apple C) Microsoft D) LinkedIn

C Page Ref: 703 Difficulty: Moderate AACSB:

C Page Ref: 706 Difficulty: Moderate AACSB:

27) Facebook purchased which of the following for $19 billion? A) Slingshot B) Snapchat C) WhatsApp D) Poke

C Page Ref: 711 Difficulty: Moderate AACSB:

30) In the United States, Facebook visitors spend about ________ hours a month on Facebook. A) 1.5 hours B) 3 hours C) 7 hours D) 15 hours

C Page Ref: 712 Difficulty: Moderate AACSB:

18) Which of the following is a community of members who self-identify with a demographic or geographic category? A) practice network B) sponsored community C) affinity community D) interest-based social network 27 Copyright © 2015 Pearson Education, Inc.

C Page Ref: 714 Difficulty: Moderate AACSB:

21) Facebook is an example of a(n): A) interest-based social network. B) affinity community/social network. C) general community/social network. D) practice network.

C Page Ref: 714 Difficulty: Moderate AACSB:

31) All of the following are benefits of auctions except: A) more efficient price discovery. B) lower transaction costs. C) decreased price transparency. D) increased market efficiency.

C Page Ref: 721-722 Difficulty: Moderate AACSB:

33) Which of the following is not a risk or cost of Internet auctions? A) delayed consumption costs B) equipment costs C) price transparency D) trust risks

C Page Ref: 722 Difficulty: Moderate AACSB:

34 Copyright © 2015 Pearson Education, Inc. 44) Which of the following types of auctions is perfect for sellers that have many identical items to sell? A) English auctions B) Name Your Own Price auctions C) Dutch Internet auctions D) group buying auctions

C Page Ref: 724 Difficulty: Moderate AACSB:

53) Which of the following is not one of the top factors a business should consider when planning an Internet auction? A) type of product B) type of auction C) location of auction D) bid increments

C Page Ref: 725-726 Difficulty: Moderate AACSB:

37 Copyright © 2015 Pearson Education, Inc. 56) Which of the following involves a concern that one will never know how much the ultimate winner might have paid, or the true value to the final winner? A) herd behavior B) winner's regret C) seller's lament D) loser's lament

C Page Ref: 727 Difficulty: Moderate AACSB:

55) ________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids. A) Group buying B) Winner's regret C) Herd behavior D) Bid rigging

C Page Ref: 727 Difficulty: Moderate AACSB:

C Page Ref: 729 Difficulty: Moderate AACSB:

47) AOL is focusing its strategy on all of the following except: A) display advertising. B) online video. C) being an ISP. D) being a niche content provider.

C Page Ref: 733 Difficulty: Moderate AACSB:

24) EDI systems: A) generally serve horizontal markets. B) are seller-side solutions. C) are based on a communications standard for sharing business documents. D) no longer play an important role in B2B commerce.

C Page Ref: 750-751 Difficulty: Moderate AACSB:

28) Which of the following is the fastest growing form of B2B e-commerce? A) e-distributors B) exchanges C) private industrial networks D) industry consortiums

C Page Ref: 753 Difficulty: Moderate AACSB:

29) All of the following are potential benefits of B2B e-commerce except: A) lower administrative costs. B) lower search costs. C) lower price transparency. D) lower transaction costs.

C Page Ref: 754 Difficulty: Moderate AACSB:

46) All of the following have led to the development of outsourcing of manufacturing around the world except: A) technology. B) globalization of trade. C) environmental concerns. D) high levels of wage disparity between the developed and undeveloped worlds.

C Page Ref: 756 Difficulty: Moderate AACSB:

34) Which of the following is a method of inventory cost management that seeks to eliminate excess inventory? A) lean production B) sustainable production C) just-in-time production D) supply chain simplification

C Page Ref: 762 Difficulty: Moderate AACSB:

52 Copyright © 2015 Pearson Education, Inc. 63) EDI document structures are defined by: A) a single international standards body. B) by individual suppliers and buyers. C) industry committees. D) each purchaser.

C Page Ref: 766 Difficulty: Moderate AACSB:

56) An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium

C Page Ref: 782-783 Difficulty: Moderate AACSB:

In 2016, the total amount of B2B e-commerce in the United States was approximately: A) $67 billion. B) $670 billion. C) $6.7 trillion. D) $67 trillion.

C) $6.7 trillion.

Which of the following types of auctions is most often associated with sellers that have many identical items to sell? A) English auctions B) Name Your Own Price auctions C) Dutch Internet auctions D) group buying auctions

C) Dutch Internet auctions

A(n) ________, in which the highest bidder wins, is the most common form of auction. A) Dutch Internet auction B) Japanese auction C) English auction D) reverse auction

C) English auction

________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids. A) Group buying B) Winner's regret C) Herd behavior D) Bid rigging

C) Herd behavior

________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids. A) Group buying B) Winner's regret C) Herd behavior D) Bid rigging

C) Herd behavior

________ production is a set of production methods that focuses on the elimination of waste throughout the customer value chain. A) Green B) Sustainable C) Lean D) Just-in-time

C) Lean

In 2015, Fortune 500 companies used ________ more than Facebook. A) no other social networks B) Tumblr C) LinkedIn D) Pinterest

C) LinkedIn

In 2015, Fortune 500 companies used _____________ more than Facebook. A) no other social networks B) Tumblr C) LinkedIn D) Pinterest

C) LinkedIn

____________ was an early investor in Facebook. A) Google B) Apple C) Microsoft D) LinkedIn

C) Micosoft

________ recently acquired LinkedIn. A) Facebook B) Google C) Microsoft D) Verizon

C) Microsoft

________ was an early investor in Facebook. A) Google B) Apple C) Microsoft D) LinkedIn

C) Microsoft

_____________ recently acquired LinkedIn. A) Facebook B) Google C) Microsoft D) Verizon

C) Microsoft

An ________ primarily serves businesses that buy direct goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium

C) exchange

Which of the following primarily deals with direct goods? A) e-distributors and independent exchanges B) exchanges and e-procurement Net marketplaces C) exchanges and industry consortia D) e-procurement Net marketplaces and industry consortia

C) exchanges and industry consortia

Which of the following is not one of the top factors a business should consider when planning an Internet auction? A) type of product B) type of auction C) location of auction D) bid increments

C) location of auction

Which of the following is not one of the top factors a business should consider when planning an Internet auction? A) type of product B) type of auction C) location of auction D) bid increments

C) location of auction

All of the following are potential benefits of B2B e-commerce except: A) lower administrative costs. B) lower search costs. C) lower price transparency. D) lower transaction costs.

C) lower price transparency.

C) network effects

Which social network functionality allows users to view a list of updates from friends as well as advertisements and notifications in chronological order? A) message board B) timeline C) newsfeed D) friends' networks

C) newsfeed

15. Free online content may be motivated by a) A desire to get consumers' attention b) Non commercial shared interests or self-promotion c) The benefits to firms of allowing consumers to sample offerings d) All of the above e) Only a) and c)

4. A strategy of price discrimination can involve a) Bundling b) Quantity discounts c) Versioning d) Any of the above e) Just b) and c)

8. Network effects a) refer to a situation where the value of the network to any individual member depends on the total number of members of the network b) can raise individual switching costs c) are potentially important in e-commerce d) all of the above e) only a) and c)

35) All of the following are strategic factors that pertain specifically to a firm and its related businesses except: A) core competencies. B) synergies. C) technology. D) power of customers.

D Page Ref: 575 Difficulty: Moderate AACSB:

46) All of the following are challenges faced by bricks-and-clicks firms except: A) coordinating prices across channels. B) handling returns of Web purchases at retail outlets. C) building a credible Web site. D) building a brand name.

D Page Ref: 587 Difficulty: Moderate AACSB:

12 Copyright © 2015 Pearson Education, Inc. 60) All of the following statements about the online real estate services market are true except: A) Zillow and Trulia together account for over 60% of Web and mobile traffic to online real estate sites. 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.

D Page Ref: 602 Difficulty: Moderate AACSB:

55) Which of the following is not a leading factor in changing the television industry? A) increasing broadband penetration B) development of the mobile platform C) a willing industry with a library of high-quality content D) inability to attract customers to traditional products

D Page Ref: 677-679 Difficulty: Difficult AACSB:

54) Which of the following statements about the movie industry is not true? A) Over 100 million Americans were expected to watch movies online in 2014. B) Online movie distribution is not dominated by a single distributor. C) Sales of digital movies that can be downloaded increased by almost 50% in 2013. D) Internet and online distribution now make up the largest share of movie revenues.

D Page Ref: 680-681 Difficulty: Moderate AACSB:

17) Which of the following was a primary feature of early online communities? A) chat B) network discovery C) widgets D) message boards

D Page Ref: 705 Difficulty: Moderate AACSB:

D Page Ref: 706 Difficulty: Moderate AACSB:

51) Priceline is an example of a(n): A) English auction. B) Dutch auction. C) penny auction. D) Name Your Own Price auction.

D Page Ref: 724 Difficulty: Moderate AACSB:

54) The profit a seller makes at auction is a function of all of the following except: A) arrival rate. B) auction length. C) the number of units for auction. D) bid increments.

D Page Ref: 725-726 Difficulty: Moderate AACSB:

35) All of the following are solutions to the problem of high monitoring costs except: A) seller rating systems. B) watch lists. C) proxy bidding. D) fixed pricing.

D Page Ref: 728 Difficulty: Moderate AACSB:

65) Which of the following is not one of the typical portal revenue sources? A) commissions on sales B) subscription fees C) tenancy deals D) referral fees

D Page Ref: 735 Difficulty: Moderate AACSB:

17) Analysts predict that B2B e-commerce in the United States will grow by 2018 to approximately: A) $7.8 billion. B) $78 billion. C) $780 billion. D) $7.8 trillion.

D Page Ref: 749 Difficulty: Moderate AACSB:

20) In 2014, the total amount of B2B e-commerce in the United States was approximately: A) $5.7 billion. B) $57 billion. C) $570 billion. D) $5.7 trillion.

D Page Ref: 749 Difficulty: Moderate AACSB:

30) What is the first step in the procurement process? A) negotiate price B) qualify the seller and its products C) issue a purchase order D) search for suppliers

D Page Ref: 755 Difficulty: Moderate AACSB:

53) All of the following are examples of direct goods in the auto industry except: A) sheet steel. B) shatter-resistant glass. C) rubber molding. D) desktop computers.

D Page Ref: 758 Difficulty: Moderate AACSB:

37) Cisco estimates that by 2016, mobile traffic will represent ________% of all business Internet traffic. A) less than 5 B) around 10 C) around 15 D) over 25

D Page Ref: 768-769 Difficulty: Moderate AACSB:

40) A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems. A) EDI B) ERP C) CPFR D) SCM

D Page Ref: 772 Difficulty: Moderate AACSB:

51 Copyright © 2015 Pearson Education, Inc. 59) An ________ serves businesses that primarily buy direct goods on a contract purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium

D Page Ref: 784-785 Difficulty: Moderate AACSB:

In 2015, which age group has the fastest growing rate of Facebook usage? A) 12-34 B) 35-45 C) 46-65 D) Adults over 65

D) Adults over 65

In 2015, which age group has the fastest growing rate of Facebook usage? A) 12-34 B) 35-45 C) 46-65 D) Adults over 65

D) Adults over 65

The technology used by early online communities was limited to mostly: A) instant messaging. B) FTP. C) e-mail. D) bulletin boards.

D) bulletin boards

Collaborative commerce systems: A) focus on structuring intra-firm communications. B) bring customers into the product development phase. C) provide open, competitive marketplaces. D) foster sharing sensitive internal information with suppliers and purchasers.

D) foster sharing sensitive internal information with suppliers and purchasers.

The profit a seller makes at auction is a function of all of the following except: A) initial pricing B) auction length. C) the number of units for auction. D) watch lists.

D) watch lists.

EDI began as a(n) ________ system. document automation document elimination continuous replenishment MRP

Document automation

All of the following types of auctions involve single units except: English auction. Dutch Internet. Japanese auction. Vickrey auction.

Dutch internet

10. Which of these reasons may be a less important basis for lock-in with e-commerce? a) Product-specific training b) Information and databases c) Loyalty programs d) Specialized suppliers e) Search costs

14. Price dispersion for identical products, even when differences in delivery terms or other observable service features are allowed for, can persist on the Internet because a) Retailers can differ in terms of the degree of trust in them that buyers have b) Retailers can collude more easily when selling online c) Brand loyalty and familiarity create switching costs for buyers d) All of the above e) Only a) and c)

2. E-commerce differs from traditional commerce in a) The way information is accessed by consumers b) Always charging less for goods and services c) The flexibility in information supplied by firms d) All of the above e) Only a) and c)

3. Bundling is valuable for sellers when a) The willingness to pay for bundles is less dispersed than the willingness to pay for components b) It increases switching costs for existing buyers c) It increases selling costs d) All of the above e) Only a) and b) above

5. Lower distribution costs for digital products online can be used to strategic advantage and help promote digital products by a) Permitting low-cost free samples for experience goods b) Giving some content away and tracking its use to get customer information for marketing c) Trading content for customer information d) Giving away one part of a complementary pair (e.g., search service and content) e) All of the above

7. Information flows in e-commerce are different from traditional markets because a) The costs of transmitting information are lower b) Communications with customers can be more integrated with internal business processes c) Consumers can easily identify false statements on the Internet d) All of the above e) Only a) and b)

9. Compatibility and open standards a) reduce switching costs and help entrants versus incumbents b) have been important in the growth of the Internet and World Wide Web c) favor strong incumbents such as Microsoft d) all of the above e) only a) and b)

An ________ primarily serves businesses that primarily buy indirect goods on a spot purchasing basis. e-distributor e-procurement company exchange industry consortium

E-distributer

An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers. e-distributor e-procurement company exchange industry consortium

E-distributor

An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis. e-distributor e-procurement Net marketplace exchange industry consortium

E-procurement

All of the following are weaknesses of EDI except: EDI is not well suited for electronic marketplaces. EDI lacks universal standards. EDI does not provide a real-time communication environment. EDI does not scale easily.

EDI lacks universal standards.

A(n) ________, in which the highest bidder wins, is the most common form of auction.

English auction

All of the following have led to the development of outsourcing of manufacturing around the world except: technology. globalization of trade. environmental concerns. high levels of wage disparity between the developed and undeveloped worlds.

Environmental concerns

Industry consortia are more focused on optimizing short-term supply relationships than independent exchanges, which tend to focus more on long-term transactions

False

Personal consumption of retail goods and services accounts for over 75% of total gross domestic product.

False

__________ is defined as gross profit, and found by dividing net sales and reve

Gross margin

Which of the following is the fastest growing segment of media revenues?

Internet media

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.

Which of the following is not a typical barrier to the implementation of a private industrial network? It requires participating firms to share sensitive data. It requires the large network owners to give up some of its independence. It requires a significant investment of time and money. It requires a change of mind-set and behavior of employees.

It requires the large network owners to give up some of its independence.

Which of the following is not a current major trend in B2B e-commerce? Large firms move toward consolidating regional B2B systems into global systems. Over 60% of B2B firms use Twitter and other social networks to enable collaboration. Firms place a growing emphasis on rapid-response and optimal supply chain rather than lowest-cost supply chains. B2B systems move to data storage on cloud providers and away from individual corporate data centers.

Large firms move toward consolidating regional B2B systems into global systems.

_______ production is a set of production methods that focuses on the elimination of waste throughout the customer value chain.

Lean

Traditional media programming offers: high user control and high user focus. high user control and low user focus. low user control and high user focus. low user control and low user focus.

Low user control and low user focus

All of the following are current major trends in B2B e-commerce, except;

Move to implement highly centralized supply chains to reduce risk

All of the following are current major trends in B2B e-commerce, except:

Move to implement highly centralized supply chains to reduce risk.

The essential characteristic of ________ is that they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade.

Net marketplaces

Which of the following statements is not true? Price competition among online travel services is difficult as comparison shopping for better prices is easy. Online travel services is one of the few sectors in which extensive disintermediation has occurred. The ability of travel products and services to be commoditized is a significant factor in the explosive growth of the online travel services industry. The online travel services industry has gone through a period of consolidation.

Online travel services is one of the few sectors in which extensive disintermediation has occurred.

Each of the following is one of the top six social network sites in the United States except:

Snapchat

_______ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers.

Spot

________ refers to differentiating a firm's products or prices on the basis of superior supply chain management

Supply chain competition

Consumers choose the online channel primarily because it offers lower prices.

TRUE

Which of the following statements about EDI systems is true?

They typically serve vertical markets

Which of the following statements about EDI systems is true?

They typically serve vertical markets.

Online retailing provides an example of the powerful role that intermediaries continue to play in retail trade.

True

Private industrial networks typically involve manufacturing and related support industries

True

Smartphones are an example of technological convergence.

True

The proliferation of mobile device has led to an increase in the total amount of time spent with media.

True

The publishing and entertainment industries make up the largest share of the commercial content marketplace, both online and offline.

True

Walmart has one of the most efficient B2B supply chains in the world.

True

Which of the following has introduced a tool known as Consumer Alerts to inform readers when a review is likely to be fraudulent?

Yelp

_______commerce includes the following business processes: customer relationship management, demand management, order fulfillment, manufacturing management, procurement, product development, returns, logistics/transportation, and inventory managemen

b2b

Which of the following measures the ratio of items purchased to product views?

browse-to-buy ratio

All of the following are challenges faced by bricks-and-clicks firms except:

building a brand name.

Virtual merchants face potentially large costs for all of the following except:

building and maintaining physical stores.

all of the following are methods of classifying net marketplaces except

by technology used

The majority of inter-firm trade involves:

contract purchasing of direct goods

the majority of inter firm trade involves

contract purchasing of direct goods

The majority of inter-firm trade involves:

contract purchasing of direct goods.

All of the following are benefits of auctions except: more efficient price discovery. lower transaction costs. decreased price transparency. increased market efficiency.

decreased price transparency

All of the following are examples of direct goods in the auto industry except:

desktop computers.

EDI began as a ____ system

document automation

EDI began as a(n) ________ system.

document automation

which of the following primarily serve horizontal markets

e distributors and e procurement net marketplaces

an ____ primarily serves businesses that primarily buy indirect goods on a contract purchasing bias

e procurement net marketplace

An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis.

e-distributor

An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers.

e-distributor

WW Grainger is an example of a(n) ________.

e-distributor

an _____ primarily serves businesses that buy indirect goods on a spot purchasing basis

e-distributor

Which of the following primarily deal with indirect goods?

e-distributors and e-procurement Net marketplaces

Which of the following primarily deal with indirect goods? e-distributors and industry consortia e-distributors and e-procurement Net marketplaces exchanges and industry consortia exchanges and e-procurement Net marketplaces

e-distributors and e-procurement Net marketplaces

Which of the following primarily serve horizontal markets?

e-distributors and e-procurement Net marketplaces

Which of the following primarily serve horizontal markets? e-distributors and exchanges e-distributors and e-procurement Net marketplaces e-procurement Net marketplaces and industry consortia exchanges and industry consortia

e-distributors and e-procurement Net marketplaces

Which of the following primarily involve long-term sourcing? e-distributors and exchanges e-distributors and industry consortia e-procurement Net marketplaces and exchanges e-procurement Net marketplaces and industry consortia

e-procurement Net marketplaces and industry consortia

Which of the following is used by the highest percentage of people to read e-books? PC e-reader such as a Kindle or Nook cell phone tablet computer

e-reader such as a Kindle or Nook

Which of the following is the market leader in C2C auctions? Amazon eBay Yahoo Craigslist

eBay

22) Which of the following is not one of the seven major segments of the retail industry? A) electronics and computers B) specialty stores C) gasoline and fuel D) food and beverage

electronics and computers

Which of the following is not one of the seven major segments of the retail industry?

electronics and computers

The fact that participating in an Internet auction means that you will need to purchase a computer, learn to use it, and pay for Internet access, is an example of ________ costs.

equipment

An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment.

exchange

An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis.

exchange

an ___ primarily serves businesses that primarily buy direct goods on a spot purchasing bias

exchange

an ____ is an independently owned, online, marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real time environment

exchange

Which of the following primarily deal with direct goods?

exchanges and industry consortia

Which of the following primarily deal with direct goods? e-distributors and independent exchanges exchanges and e-procurement Net marketplaces exchanges and industry consortia e-procurement Net marketplaces and industry consortia

exchanges and industry consortia

Private industrial networks are direct descendants of

existing EDI networks

Private industrial networks are direct descendants of:

existing EDI networks.

Collaborative commerce systems:

foster sharing sensitive internal information with suppliers and purchasers.

Music download networks offer: high user control and high user focus. high user control and low user focus. low user control and high user focus. low user control and low user focus.

high user control and high user focus.

Which of the following is the largest online movie download distributor?

iTunes

Which of the following is not a leading factor in changing the television industry?

inability to attract customers to traditional products

All of the following are potential benefits of B2B e-commerce except:

increased product cycle time.

The merger of media enterprises into powerful, synergistic combinations that can cross-market content on many different platforms is referred to as:

industry convergence

A Web site designed to give yachting enthusiasts a common discussion area would be classified as a(n):

interest-based social network.

Which of the following is a method of inventory cost management that seeks to eliminate excess inventory?

just-in-time production

5 Copyright © 2015 Pearson Education, Inc. 32) Which of the following is not one of the central challenges facing the online retail industry? A) lack of physical store presence B) consumer concerns about the privacy of personal information C) inconvenience in returning goods D) delivery delays

lack of physical store presence

which of the following is not a benefit of carving up a single, B2B platform into product and region centered systems

lower cost

All of the following are potential benefits of B2B e-commerce except:

lower price transparency.

All of the following are potential benefits of B2B e-commerce except: lower administrative costs. lower search costs. lower price transparency. lower transaction costs.

lower price transparency.

which of the following does not a have a primary impact on the liquidity of a market

price transparency

The liquidity of a market is measured by all of the following except:

price transparency.

What is the first step in the procurement process?

search for suppliers

What is the first step in the procurement process? negotiate price qualify the seller and its products issue a purchase order search for suppliers

search for suppliers

________ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers

spot

Which of the following best describes the online newspaper industry's revenue model? mostly successful implementation of the subscription-fee model struggling to successfully implement a fee-based model abandonment of the subscription-fee model and return to free model mix of revenues from classified ad sales and subscription fees

struggling to successfully implement a fee-based model

Which of the following terms refers to the links that connect business firms with one another to coordinate production?

supply chain

34) Which of the following is not a key industry strategic factor? A) synergies B) barriers to entry C) industry value chain D) existence of substitute products

synergies

Which of the following forms of media generate the most revenue?

television

24) All of the following statements about the MOTO sector are true except: A) compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms. B) the MOTO sector is also referred to as the specialty store sector. C) MOTO was the last technological revolution that preceded e-commerce. D) distribution of catalogs is one of MOTO retailers' biggest expenses.

the MOTO sector is also referred to as the specialty store sector.

In the BYOD trend, employees are allowed or encouraged to:

use their own mobiles and laptops.

A(n) ________ market is one that provides expertise and products for a specific industry, such as automobiles.

vertical

Howard Rheingold, one of The Well's early participants, coined the term ________ to refer to "cultural aggregations that emerge when enough people bump into each other often enough in cyberspace."

virtual communities

A ________ permits the consumer to monitor specific auctions of interest, requiring the consumer to pay close attention only in the last few minutes of bidding

watch list

_______ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location.

Tight coupling

An exchange is an independently owned online marketplace that connects many suppliers and buyers

True

Big Data plays an important role in predictive marketing

True

Cannibalization is a major challenge facing book publishers.

True

Facebook is the slowest growing of the most popular social networks.

True

; 20) Which of the following is a subscription-based retailer using predictive marketing and Big Data? A) Macy's B) Birchbox C) Dell D) Lands' End

B Page Ref: 595 Difficulty: Easy AACSB:

Which of the following statements about the online newspaper audience is not true?

The majority of newspaper readers read the news using a combination of the Web, print and mobile.

Which of the following statements about the online newspaper audience is not true? Online newspaper readership is growing at 17% a year. The online newspaper audience is highly engaged. The people who read newspapers online tend to be less educated than those who visit YouTube. Online newspapers reach over 75% of individuals in households earning more than $100,000 a year.

The people who read newspapers online tend to be less educated than those who visit YouTube.

Which of the following statements illustrates the network effects that portals are subject to?

The value of the portal to advertisers and consumers increases geometrically as reach increases.

Which of the following is not a characteristic of the use of social networks in B2B e-commerce? It is typically unstructured. It helps develop a more personal relationship between participants in the supply chain. It enables participants to make decisions based on current conditions. They are always private.

They are always private.

All of the following are examples of direct goods in the auto industry except: sheet steel. shatter-resistant glass. rubber molding. desktop computers.

Desktop computers

All of the following types of auctions have a seller bias except: double auction. Dutch-traditional. Yankee auction-Internet. Dutch Internet.

Double auction

Which of the following types of auctions offers a neutral marketplace, without buyer or seller bias? sealed bid market English auction double auction name your own price auction

Double auction

A(n) ________, in which the highest bidder wins, is the most common form of auction. Dutch Internet auction Japanese auction English auction reverse auction

English Auction

Auction prices are always lower than prices in fixed priced markets.

False

In 2013, the social gaming market is the fastest growing form of online gaming.

False

In C2C auctions, a business owns or controls assets and uses dynamic pricing to establish the price.

False

Facebook is an example of a(n): interest-based social network. affinity community/social network. general community/social network. practice network.

General community/SN

Digital magazine revenues are expected to ________ over the next few years. remain stable more than double grow 10% a year continue to decrease

Grow 10% a year

A Web site designed to give parents of home-schooled children a common discussion area would be classified as a(n): interest-based social network. affinity community. practice network. sponsored community.

Interest based social network

All of the following statements about the movie industry are true except: over 90 million Americans were expected to watch movies online in 2013. in 2013, consumers paid more for online movie viewing than for DVDs or related physical products. online movie viewing is growing faster than all video viewing. Internet and online distribution now make up the largest share of movie revenues.

Internet and online distribution now make up the largest share of movie revenues.

In 2013, which of the following comprised the largest segment of the online gaming audience? social gamers mobile gamers casual gamers console gamers

Mobile Gamers

Which of the following is the fastest growing online gaming audience? casual gamers mobile gamers social gamers console gamers

Mobile gamers

Which form of online entertainment is expected to generate the most revenue in 2016? TV games music motion pictures

Motion Pictures

All of the following are situations in which markets fail to produce socially desirable outcomes except: information asymmetry. monopoly power. externalities. network effects.

Network Effects

Which of the following was the most troubled segment of the publishing industry in 2013? books magazines newspapers periodicals

Newspapers

All of the following are true about the newspaper industry except: -newspaper management has been sluggish to respond to the opportunities on the Internet for news. -online readership of newspapers is declining. -newspaper management overly protected content from being distributed by aggregators. -offline readership of newspapers is increasing.

Online readership of newspapers is declining

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? watch lists proxy bidding sealed bidding price matching

Proxy bidding

Which of the following statements illustrates the network effects that portals are subject to? Specialized vertical market portals attract only 2-10% of the audience, while a few large megaportals garner most of the market. The value of the portal to advertisers and consumers increases geometrically as reach increases. The greater the amount of content provided by a portal, the greater its value to the community. The greater number of portals available, the greater the potential audience for each.

The value of the portal to advertisers and consumers increases geometrically as reach increases.

Which of the following statements about automated order entry systems is not true? They are typically owned by the suppliers. They no longer play an important role in B2B commerce. They show goods only from a single seller. They reduce the costs of inventory replenishment.

They no longer play an important role in B2B commerce.

By 2016, online movies are expected to surpass music as the largest form of online revenue in terms of revenue.

True

Closed bidding permits price discrimination without offending buyers.

True

Collaborative commerce is primarily concerned with the development of a rich communications environment

True

Demand chain visibility is one goal of collaborative commerce.

True

Private industrial networks are the most prevalent form of Internet-based B2B commerce

True

Smartphones are an example of technological convergence

True

Social network participation is one of the most common usages of the Internet.

True

Sponsored community sites are network sites created by government, non-profit, or for-profit organizations

True

The a la carte revenue model allows users to pay only for what they use.

True

The average American still spends more time watching television than using the Internet.

True

The entertainment industry is generally considered to be composed of five players: television, Hollywood films, music, radio, and video games.

True

The overall size of the online video audience is about the same size as the traditional television audience.

True

The publishing and entertainment industries make up the largest share of the commercial content marketplace, both online and offline

True

The value of portals to advertisers and content owners is primarily a function of the size of the audience the portal reaches and the length of time visitors stay on the site.

True

Videos are the fastest growing form of paid content

True

In comparison to hours spent at work, the average American adult spends ________ consuming various media. -a quarter as much time -a third as much time -an equivalent amount of time -twice as much time

Twice as much time

Facebook was the leader in U.S. ad spending revenues on social networks in 2013. What company received the second most amount of ad spending revenue? MySpace LinkedIn Pinterest Twitter

Twitter

Adjusting the annual cost of automobile insurance based on mileage driven is an example of ________ pricing. personalization trigger utilization fixed

Utilization

All of the following statements are true except: in auctions, prices may be variable or fixed. auctions constituted a significant part of B2B e-commerce in 2013. over a third of procurement officers use auctions to procure goods. online retail sites are adding auctions to their sites.

in auctions, prices may be variable or fixed.

Which of the following is not one of the top factors a business should consider when planning an Internet auction? type of product type of auction location of auction bid increments

location of auction

DRM refers to a combination of ________ for protecting digital content. hardware and software methods technical and legal means user and publisher agreements local and remote policies

technical and legal means

All of the following statements about the television and premium video industry are true except: the current transition to Internet delivery of television is leading to a decline in traditional television viewing. television is the largest content provider in the United States. the largest online video distributor is Apple's iTunes. over-the-top entertainment services are a threat to cable television distributors.

the current transition to Internet delivery of television is leading to a decline in traditional television viewing.

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