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13. Why is online shopping for services, such as buying an airline ticket or car insurance, growing rapidly? a) quicker service b) significant cost savings c) better auditing of the payment d) decrease in the number of agents

b

15. A company visits the Internal Revenue Service's Web site to learn how to pay its estimated quarterly income taxes. This is an example of: a) G2G b) G2B c) G2C d) E2E

b

1. Dell's innovative business model has been based on the concept of: a) business growth and threatening competitors. b) selling to small and medium sized businesses through intermediaries. c) supplementing direct sales with build-to-order and auctions. d) e-collaboration with a few select business partners.

c

16. Large corporations frequently consist of independent strategic business units (SBUs), which buy or sell materials, products, and services from each other. Transactions of this type can be easily automated and performed over the intranet. Major benefits of such e-commerce among SBUs are all of the following except: a) reducing inventories and costs along the supply chain b) smoothing the supply chain c) greater cooperation among SBUs d) increasing a company's competitive edge

c

11. What is the electronically supported exchange of goods or services without a monetary transaction? a) e-tailing b) electronic mall c) electronic storefront d) electronic bartering

d

12. According to the ________ model, an enterprise can increase brand awareness or even generate sales by Web-based word-of-mouth marketing or promoting a product or service to other people. a) electronic tendering systems b) online direct marketing c) name-your-own-price models d) viral marketing

d

18. Security requirements for EC electronic payments include all of the following except: a) authentication b) nonrepudiation c) privacy d) escrow

d

5. Over which types of networks is e-commerce done? a) the Internet and extranets. b) the Internet and private networks. c) the Internet, extranets, and private networks. d) the Internet, value-added networks, on local area networks using intranets, or on a single computerized machine.

d

7. E-commerce applications are supported by infrastructure and by each of the following support areas except: a) People b) Public policy c) Marketing and advertisement d) Mobile devices

d

23. In business-to-consumers (B2C), a business sells to a business but delivers the product or service to an individual consumer, such as in Godiva's case.

f

24. An example of business-to-consumer (B2C) is when Apple provides customer service online by collaborating electronically with its partners.

f

37. In many countries, the growth of C2C (consumer-to-consumer) buying and selling on auction Web sites has been severely limited because of concern about fraud.

f

21. E-business activities support selling, buying, and providing relationships, as well as the internal and external transactions involved.

t

22. By purchasing a textbook from Borders.com and having the merchandise physically delivered, Borders.com would be considered a click-and-mortar organization because pure EC did not occur.

t

27. Social commerce is concerned with the creation of places where people can collaborate online and solicit advice.

t

32. Directories and hyperlinks from other Web sites and intelligent search agents help buyers find the best stores and products to match their needs

t

34. If a seller is a click-and-mortar company, such as Levi's or GM, it may face tough channel conflict with its regular distributors when it sells directly online.

t

38. The Internet introduced the concept of interactive marketing, which has enabled marketers and advertisers to interact directly with customers.

t

14. Selling books, toys, computers, and most other products on the Internet reduce vendors' selling costs by 20 to 40 percent. To what extent can those selling costs be further reduced? a) Further reduction is difficult to achieve because the products must be delivered physically. b) Further reductions up to 75 percent can be achieved with the growth of wireless or mobile commerce. c) Minor reductions can be achieved with the growth of wireless or mobile commerce. d) Minor reductions can be achieved for firms with increased market share.

a

20. Which in not a type of legal protection that online sellers have? a) Protection against the taxing of out-of-state online transactions. b) Protection against the use of their name, unique words and phrases, slogans, and Web address without permission. c) Protection against customers who download without permission copyrighted software and use it or sell it to others d) Protection against consumers who refuse to pay or who pay with bad checks.

a

3. The type of e-commerce depends on the digitization of which three dimensions? a) product or service; process; and delivery method. b) business process; collaboration; and transaction. c) payment method; delivery method; and production method. d) marketing channel; agent; and collaboration method.

a

4. Purely physical companies are referred to as ____________ companies, whereas companies that are engaged only in EC are considered __________ companies. a) brick-and-mortar; virtual b) pure play; virtual c) click-and-mortar; click-and-brick d) virtual; pure play

a

6. The vast majority of e-commerce volume is of which type? a) B2B b) e-retailing c) B2C d) social commerce

a

9. Private organizational buyers and government agencies make large-volume or large-value purchases through __________, also known as reverse auctions. a) electronic tendering systems b) online direct marketing c) name-your-own-price models d) viral marketing

a

10. Governments and large corporations often use ____________ for procurements because they are faster and provide considerable savings. a) forward auctions b) reverse auctions c) G2C exchanges d) electronic bartering

b

17. All of the following are characteristics of collaborative commerce (c-commerce) except: a) C-commerce refers to the use of digital technologies that enable companies to collaboratively plan, design, develop, manage, and research products, services, and innovative EC applications. b) Numerous studies suggest that collaborative relationships may result in minor improvements in organizations' performance. c) C-commerce implies communication, information sharing, and collaborative planning done electronically using tools such as groupware and specially designed EC collaboration tools. d) C-commerce activities usually are conducted between and among supply chain partners

b

19. All of the following describe ethical issues related to Web tracking except: a) Log files are the principal resources from which e-businesses draw information about how visitors use a Web site creating privacy concerns. b) Direct sales from manufacturer to customers may eliminate retailers. c) By using tracking software, companies can track individuals' movements on the Internet. d) Programs such as cookies raise privacy concerns.

b

2. __________ is a broad term that refers to the buying and selling of goods and services; servicing of customers; collaborating with business partners; and conducting electronic transactions within an organization. a) Pure e-commerce b) E-business c) Online logistics d) iCommerce

b

8. A technological limitation of e-commerce is: a) Lack of national and international government regulations and industry standards. b) Many sellers and buyers waiting for EC to stabilize before they take part. c) Lack of universally accepted standards for quality, security, and reliability. d) Many sellers and buyers waiting for EC to stabilize before they take part

c

25. The final participants in B2B transactions are consumers.

f

28. Joint ventures, e-marketplaces, and business partnerships did not become common in EC because of the technical challenges in connecting diverse networks and databases.

f

29. Insufficient telecommunications bandwidth is no longer a limitation of e-commerce.

f

30. Sellers generally benefit from e-auctions due to the opportunity to bargain for lower prices.

f

31. In electronic exchanges, the exchanges of goods or services occur without a monetary transaction.

f

33. Online banks and stock traders protect ID numbers and passwords, which provides complete security that customers demand.

f

35. In the desktop purchasing model, a company has many suppliers, but the quantities it purchases from each one are relatively small. This model is most appropriate for small and medium-sized companies.

f

26. A valuable property of e-tailing is the ability to offer customized products and services to individual customers at a reasonable price and quickly.

t

36. Numerous studies suggest that collaborative relationships can result in significant benefits such as cost reduction, increased revenues, and better customer retention.

t

39. Many companies may be obligated to monitor employees' e-mail. Thus, they have installed software that monitors online activities to discover employees who are harassing other employees.

t

40. Programs such as cookies raise privacy concerns because the tracking history is stored on the PC's hard drive, and any time the user revisits a certain Web site, the computer knows it.

t


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