E-commerce Midterm 1

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Which of the following is a prominent hacktivist group?

Anonymous

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

Apple Pay is available for both iPhone 5s and iPhone 6s.

The Web runs in which layer of Internet architecture?

Applications layer

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

Availability

Which of the following organizations involved with Internet governance has the United States recently announced it would transition control of?

IANA

Which of the following organizations coordinates the Internet's systems of unique identifiers, such as IP addresses and top-level domain systems?

ICANN

All of the following are major technology trends in e-commerce in 2014-2015 except:

cloud computing enables the creation of Big Data.

Which of the following is the most important tool in establishing a relationship with the customer?

company Web site

Which element of the business model relates to the power of customers and suppliers with respect to a business?

competitive environment

Which of the following is the top-selling online retail category?

computers/electronics

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

cost to consumers

If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would:

enable individual customization of the product by consumers.

One of the predictions for the future of e-commerce is that:

overall revenues from e-commerce will grow at an annualized rate of about 13% a year through 2018.

Which of the following factors is not a significant influence on a company's competitive environment?

the availability of supportive organizational structures

All of the following statements about cookies are true except:

the data typically stored in cookies includes a unique ID and e-mail address.

All of the following can be considered a precursor to e-commerce except:

the development of the smartphone.

Which of the following is not a concern about IoT?

the high cost of sensors

The basic value proposition of community providers is:

they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests.

All of the following are fixed price strategies except:

yield management.

The overall retail market in the United States in 2017 was estimated at about:

$4.7 trillion.

Which of the following is a core Fair Information Practices (FIP) principle?

Choice/Consent

Which of the following may offer its customers value chain management software?

E-procurement firms

________ create and sell access to digital markets.

E-procurement firms

"Do Not Track" falls under which of the following principles in the FTC's new privacy framework?

Simplified Choice

Which of the following statements about Canada's anti-spam law is not true?

The law has no impact on companies located within the United States.

Which of the following is not true regarding e-commerce today?

The market middlemen disappeared.

If you want to determine the size of your Web site's audience, the metric you will use for the most accurate measurement will be:

unique visitors.

In the first 8 months of 2014, the percentage of all e-mail that is spam averaged around ________ %.

60

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

75

In 2014, what was the approximate Internet penetration rate for individuals that have attained less than a high-school education?

75%

All of the following use an advertising revenue model except:

Amazon

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

An unauthorized person intercepts an online communication and changes its contents.

All of the following are using a subscription revenue model for e-books except:

Barnes and Noble.

Which of the following statements about CAN-SPAM is not true?

CAN-SPAM prohibits unsolicited e-mail (spam).

Which of the following requires financial institutions to inform consumers of their privacy policies and permits consumers some control over their records?

Gramm-Leach-Bliley Act

Which of the following statements about e-commerce in the United States in 2014 is not true?

Growth rates for retail e-commerce are higher in the United States than in China.

Which of the following would you implement to collect and analyze your company's Big Data?

Hadoop

Which of the following search engine algorithm updates enables Google's search engine to evaluate an entire sentence rather than just a key word?

Hummingbird

The ________ helps define the overall structure of the Internet.

IAB

Which of the following describes the basic Web policy of large firms during the Invention period?

Maintain a basic, static Web site depicting the firm's brand.

All of the following are true about iPhone apps except:

They are cross-platform, open-source applications.

Which of the following is not a feature that is driving the growth of social marketing and advertising?

affiliate programs

Encouraging users to click a Like button is an example of which step in the social marketing process?

amplification

A ________ is a repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to know the customer.

CRM system

During which phase of the development of the Internet was the personal computer invented?

Institutional phase

The ________ is a consortium of corporations, government agencies, and nonprofit organizations that monitors Internet policies and practices.

Internet Society (ISOC)

All of the following are characteristics of Web 2.0 sites and applications except:

they rely solely on mobile access to the Web.

The size of the B2B market in 2014 was estimated to be around:

$5.7 trillion

In 2014, there were an estimated ________ Internet hosts.

1 billion

How long does it take for 300,000 X-rays to be transmitted on a 100-gbps network?

1 minute

In 2014, roughly ________ million people in the United States accessed the Internet via tablets.

147

During which period of time did the Institutionalization phase of Internet development take place?

1975-1995

In which year can e-commerce be said to have begun?

1995

In 2014, the world's online population was estimated to be around:

2.8 billion

Retail chains account for around ________ % of online retail firm revenues.

35

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

56

"Shoppers" constitute approximately ________ % of the online Internet audience.

90

The backbone of the Internet is formed by:

Network Service Providers (NSPs)

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

Nielsen ratings

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

Nonrepudiation

Which of the following examples illustrates the "Long Tail" phenomenon?

Over 50% of Netflix's 100,000 titles are rented at least once a day by someone.

All of the following statements about PKI are true except:

PKI guarantees that the verifying computer of the merchant is secure.

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

Panda

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

Perform a risk assessment.

Which of the following is not true about search engine advertising?

Search engine advertising is the fastest growing type of online advertising.

Which of the following is not a major business trend in e-commerce in 2014-2015?

Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants.

All of the following experienced high-profile data breaches in 2013 except:

Sony.

Which case was instrumental in paving the way for Internet business methods patents?

State Street Bank & Trust Co. v. Signature Financial Group, Inc.

Which of the following statements about the Internet's impact on marketing is not true?

The Internet has decreased the impact of brands.

Which of the following statements about industry self-regulation regarding privacy is not true?

The NAI's privacy policies have established the TRUSTe seal.

Which of the following statements about the Web is not true?

The Web is the technology upon which the Internet is based.

Which of the following statements about a free pricing strategy is false?

The free pricing strategy was born in the early days of the Web.

Which of the following statements is true about the traditional tradeoff between the richness and reach of a marketing message prior to the development of the Web?

The larger the audience reached, the less rich the message.

In May 2014, the U.S. Department of Justice indicted five army members from which of the following countries for conducting industrial espionage against U.S. Steel and Westinghouse?

China

Which of the following is not an advantage of client/server computing over centralized mainframe computing?

Each client added to the network increases the network's overall capacity and transmission speeds.

Which of the following would be considered an indirect competitor of Travelocity?

Expedia

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

FTP.

Which of the following statements about Foursquare is not true?

Foursquare's business model faces significant intellectual property concerns.

The concept behind document formatting had its roots in which of the following?

GML

The richness made possible by e-commerce technologies does which of the following?

It allows video, audio, and text to be integrated into a single marketing message and consuming experience.

Which of the following statements about fiber-optic cable is not true?

It enables better data security than coaxial cable.

Which of the following is not a characteristic of a perfect competitive market?

It is highly regulated.

Which of the following statements about Graph Search is not true?

It relies on Google to supplement its search results.

The layer of Internet architecture that ties the applications to the communications network and includes such services as security and authentication is called the:

Middleware Services layer.

Which of the following is not a major trend in e-commerce payments in 2014-2015?

Mobile retail payment volume decreases.

Which of the following is an example of the affiliate revenue model?

MyPoints

Which of the following is a set of short-range wireless technologies used to share information among devices within about 2 inches of each other?

NFC

Which of the following occurred during the Commercialization phase of Internet development?

NSF privatized the operation of the Internet's backbone.

Which of the following best describes the early years of e-commerce?

They were a technological success but a mixed business success.

TCP/IP operates in which layer of Internet architecture?

Transport Services and Representation Standards layer

Most of the world's malware is delivered via which of the following?

Trojan horses

The second most popular social network in terms of average minutes per visitor is:

Tumblr

Which of the following is not true about the use of apps?

Users still spend less time using apps than they do using desktops or mobile Web sites.

________ and ________ are typically the most easily identifiable aspects of a company's business model.

Value proposition; revenue model

Which of the following is not a limitation of the current Internet?

Which of the following is not a limitation of the current Internet?

The major technologies used with wireless local area networks are:

Wi-Fi and Bluetooth.

Which of the following is a high-speed, medium-range, broadband wireless metropolitan area network?

WiMAX

The early years of e-commerce are considered:

a stunning technological success as the Internet and the Web increased from a few thousand to billions of e-commerce transactions per year.

A Web beacon is:

a tiny graphics file embedded in an e-mail or Web page.

The address used by a browser to identify the location of content on the Web is called:

a uniform resource locator.

The Internet Layer of TCP/IP is responsible for which of the following?

addressing, packaging, and routing messages

The ability to retain user attention and engagement is an important attribute for which revenue model?

advertising revenue model

You could expect to find all of the following services in a Web server software package except:

an RSS aggregator.

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

an authorization management system.

The early years of e-commerce were driven by all of the following factors except:

an emphasis on exploiting traditional distribution channels.

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

availability

Where does TLS operate within TCP/IP?

between the Transport Layer and the Application Layer

Rustock is an example of which of the following?

botnet

Which of the following is a characteristic of the Consolidation phase of e-commerce?

brand extension and strengthening becomes more important that creating new brands

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

browse-to-buy ratio

Which of the following technologies has enabled the Internet to grow exponentially to support millions of users, without overloading the network architecture?

client/server networking

The Nike iD program is an example of which of the following marketing techniques?

customer co-production

Over the past decade, the number of exchanges has:

diminished sharply.

Which of the following is a characteristic of e-commerce during the Invention period?

disintermediation

Which of the following is not an example of a PUP?

drive-by download

Malware that comes with a downloaded file that a user requests is called a:

drive-by download.

What type of Internet access technology are Google and Facebook hoping to use to provide Internet access to remote parts of the world?

drones

Proxy servers are also known as:

dual home systems

Which of the following basic ethical concepts plays an important role in defining privacy?

due process

W.W. Grainger is an example of which of the following business models?

e-distributor

Which of the following online advertising formats attracted the least amount of spending in 2014?

email

Which of the following is a characteristic of the Reinvention phase of e-commerce?

expansion of e-commerce to include services as well as goods

Which of the following is the first step in the social marketing process?

fan acquisition

All of the following were visions of e-commerce expressed during the early years of e- commerce except:

fast follower advantage.

Which of the following is not a primary activity in a firm value chain?

finance/accounting

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

firewall

Which of the following features of e-commerce technology changes industry structure by lowering barriers to entry but greatly expands the market at the same time?

global reach

Business-to-consumer (B2C) e-commerce in the United States:

has grown at double-digit rates between 2010 and 2014.

Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as:

incubators

SupplyOn is an example of a(n):

industry consortium.

Which of the following is not a unique feature of e-commerce technology?

information asymmetry

Which of the following features of e-commerce technology allows fine-grained, highly detailed information on consumers' real-time behavior to be gathered and analyzed?

information density

Which dimension(s) of security is spoofing a threat to?

integrity and authenticity

Which of the following is one of the three primary societal issues related to e-commerce?

intellectual property

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

knowledge consumers have about how to conduct online transactions.

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

less than 1

Which of the following is the top reason why consumers choose the online channel?

lower prices

Which source of e-commerce revenues has grown from nearly zero prior to 2007 to an estimated $84 billion in 2014?

mobile B2C e-commerce

Which type of e-commerce is distinguished by the type of technology used in the transaction rather than by the nature of the market relationship?

mobile e-commerce

Online bill payment now accounts for ________ of all bill payments, while paper checks account for ________.

more than 50%, less than 25%

When talking about the physical elements of the Internet, the term redundancy refers to:

multiple duplicate devices and paths in a network built so that data can be rerouted if a breakdown occurs.

Which of the following is not a primary source of ad fraud?

native advertising that is displayed on a social media site

Hits are a measure of the:

number of http requests.

Impressions are a measure of the:

number of times an ad is served.

Unfair competitive advantages occur when:

one competitor has an advantage others cannot purchase.

PayPal is an example of what type of payment system?

online stored value payment system

In general, the key to becoming a successful content provider is to:

own the content being provided.

All of the following are used for authentication except:

packet filters

Purchasing an online ad on a CPA basis means that the advertiser:

pays only for those users who perform a specific action, such as registering, purchasing, etc.

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.

The Transport Layer of TCP/IP is responsible for which of the following?

providing communication with the application by acknowledging and sequencing the packets to and from the application

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

public key cryptography ensures authentication of the sender.

A firm's ________ describes how a firm will produce a superior return on invested capital.

revenue model

Which of the following forms of online advertising is expected to grow the fastest between 2014 and 2018?

rich media

Which of the following features of e-commerce technology enables merchants to market and sell "complex" goods and services to consumers via marketing messages that can integrate video, audio, and text?

richness

What is the primary revenue model for an e-distributor?

sales

Which of the following is not a practice that degrades the results and usefulness of search engines?

social search

Which of the following features of e-commerce technology allows users to participate in the creation of online content?

social technology

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

stickiness

All of the following are characteristics of HTML5 except:

support for digital rights management.

All the following statements about symmetric key cryptography are true except:

symmetric key cryptography is computationally slower.

Which of the following is a tiered notice and response system aimed at reducing copyright infringement over P2P networks?

the CAS

Which of the following is not aimed at strengthening the ability of law enforcement agencies to monitor Internet users without their knowledge?

the Communications Assistance for Law Enforcement Act

Which of the following was the first truly large-scale digitally enabled transaction system in the B2C arena?

the French Minitel

Which ethical principle tells you that it is wise to assume perfect information markets?

the New York Times test

Next generation firewalls provide all of the following except:

the ability to automatically update applications with security patches

Which of the following is the best definition of transaction cost?

the cost of participating in a market

Which of the following is not a key point of vulnerability when dealing with e-commerce?

the credit card companies

Interactivity in the context of e-commerce provides which of the following functionalities?

the enabling of two-way communication between consumer and merchant

Which of the following gives a business model the most credibility with outside investors?

the firm's management team

The existence of a large number of competitors in any one market segment may indicate:

the market is saturated.

All of the following are major social trends in e-commerce in 2014-2015 except for:

the refusal of online retailers to accept taxation of Internet sales.

Which of the following is not a major business trend in e-commerce in 2014-2015?

the weakening revenues of B2B e-commerce.

A perfect market is one in which:

there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.

Recency refers to the:

time elapsed since the last action taken by a customer.

Internet traffic is predicted to do which of the following over the next 5 years?

triple

Zeus is an example of which of the following?

trojan horse

Which of the following features of e-commerce technology has reduced the cost of delivering marketing messages and receiving feedback from users?

universal standards

Which of the following features of e-commerce technology is related to the concept of network externalities?

universal standards

Which element of the business model addresses the question of why a customer should buy from the firm?

value proposition

A ________ is a networked business ecosystem that coordinates a firm's suppliers, distributors, and delivery firms with its own production needs using an Internet-based supply chain management system.

value web

Which type of investor typically becomes interested in a start-up company after it has begun generating revenue?

venture capital investors

A social consequence of the richness of Internet information is:

very persuasive messages might reduce the need for multiple independent sources of information.

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

virtual (Web only)

Which business application is associated with the technological development of local area networks and client/server computing?

workgroup automation (e.g., document sharing)

An example of an online privacy violation is:

your online purchasing history being sold to other merchants without your consent.


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