Unit 8: E-Commerce and Social Media

c - The division between brick-and-mortar and online operations have been effectively erased or abandoned for the omnichannel model.

According to the omnichannel model, inventory volume is reduced and operations become leaner and better able to react to changes in demand because of which of the following reasons? a. Warehouses filled with inventory become hybrid warehouses. b. Physical retail storefronts now become distribution centers. c. The division between brick-and-mortar and online operations has been erased. d. Focus is on maximizing multi-channel strategy.

d - A private industrial network does not increase competition among members.

All of the following are benefits of a private industrial network, except: a. Reduced risk and uncertainty b. Create efficiencies in transacting business c. Closer collaborative ties d. Increased competition

d - Popular online platforms include Shopify, Sellfy, and LemonStand, not Specify

All of the following are online platforms in which to sell digital goods, except what? a. Sellfy b. LemonStand c. Shopify d. Specify

a - An organization's objectives for e-commerce may include the effort to sell its wares, maintain or improve its reputation with its stakeholders, and/or create efficiencies in its operations.

All of the following are organizational objectives for e-commerce, except: a. Reduce sales tax and VAT-related expenses b. Sell products or wares c. Maintain or improve reputation d. Create efficiencies in operations

c - Several adult demographic groups are experiencing increases, including the 65 and over age group; 31% of which are now using social media.

Although teen usage of social media exceeds that of adults, what adult demographic group is experiencing an increased use of social media, with 31% of members of that age group reportedly using social media? a. Adults in the 30 to 64 years range b. Adults in the 18 to 29 years range c. Adults ages 65 years and older

c - As with traditional newspapers, cinemas, and video stores, online content providers rent or sell online access to digital content, such as music, news, video, and images. Examples include iTunes, Shutterstock.com, and Netflix.com.

Businesses, such as newspapers and magazine publishers, can use which of the following models to provide news and reporting to readers? a. Advertising b. Direct marketing c. Content provider d. Brokerage

a - Up to 65% of employers are using social networking to evaluate candidates to see if they present themselves professionally.

CareerBuilder, an online job search website, reported the results of a recent survey indicating what percent of employer's use social networking to determine if a candidate presents himself or herself professionally? a. 65% b. 35% c. 100%

The differences between these two categories are in the ownership and/or control of the network: • In the case of private industrial networks, this means that a single organization controls the construction and maintenance of relationships for and between a relatively small number of other organizations. Private industrial networks are numerous and dwarf the amount of business conducted on net marketplaces. • On the other hand, net marketplaces bring together potentially thousands of businesses in combined consortium networks for similar purposes: creating efficiencies and synergies between and among member businesses. Net marketplaces often, but not always, provide more of a focus on individual transactions versus lasting relationships.

Describe the differences between a private industrial network and a net marketplace.

b - DVD's are physical property and not downloadable. Therefore, it is not classified as a digital good.

Digital goods refer to products that can be downloaded from the Internet. Which of the following is NOT an example of digital goods? a. Mobile apps b. Musical DVDs c. Video tutorials d. Streaming videos

c - In most countries, businesses operate independently of the official governments that govern them.

E-business components within a business's value chain may NOT have extensive effects on which of the following elements? a. Employees b. Customers c. Government d. Competitors

d - Omni-channel is not one of the three areas. It erases the division between brick-and-mortar and online operations. The omni-channel. Facilitated by e-business connections, dynamic variability, and inherent scalability, warehouses filled with inventory become distribution centers, physical retail storefronts become hybrid warehouse, distribution, and direct customer interaction nodes focused on a seamless online/offline customer experience. As a result, inventory volume is reduced and operations become leaner and better able to react to changes in demand.

E-commerce has expanded and evolved into many areas. Which of the following is NOT one of these areas? a. Mobile b. Social c. Localized and personalized d. Omni-channel

c - Freemium is a good way to promote and sell digital goods in a digital market.

Freemium is not a new concept in doing business. Which of the following statement regarding Freemium is accurate? a. Core services and additional features are free of charge to users. b. Freemium sells product samples and trial versions to users. c. Freemium involves digital pricing strategies. d. Product quality and available features cannot be controlled.

b - Many brick-and-mortar retailers have augmented their supply chains with elements of e-commerce to improve operational efficiencies. Because of operational efficiencies, the division between brick-and-mortar and online operations or channels have been effectively erased.

From its evolution several decades ago, e-commerce has augmented many brick-and-mortar retailers to improve what? a. Immediate gratification b. Operational efficiencies c. Information security d. Personal touch

b - Social media platforms enable people to influence others in their social network. Not everyone is a social media participant.

How do social media platforms play an increasing role in shaping events? a. Social media platforms have displaced print media. b. People can use this medium to influence reserved bystanders. c. Everyone is a participant in social media.

b - LinkedIn has three revenue sources: talent solutions, market solutions, and premium subscriptions.

LinkedIn's social media website has how many revenue sources? a. Two b. Three c. Five

c - Localized and personalized e-commerce might be able to help businesses gain trust and respect over time, but not directly, and certainly not through phone communication. Phone communication can be a waste of resources when an email can be tailored more easily and quickly to individuals and not cut into business profits.

Localized and personalized e-commerce will NOT directly help businesses achieve which of the following? a. Increase the likelihood of returning customers to your site. b. Provide customers with what they need, quickly and accurately. c. Gain customer trust and increase profits through phone communication. d. Understand customer needs, patterns, and desires.

b - Online communities provide clubhouse and conference facilities with a space which individuals, families, and groups might meet and share content and communications. Examples include Facebook, Google+, and LinkedIn.

Maintaining a social online presence has become the latest trend. Businesses can use which of the following models to connect online with their customers? a. Advertising b. Community c. Brokerage d. E-tailer

c - Slow communications among businesses and customers affect the prices of goods sold.

Prices for goods have changed slowly, due primarily to which of the following? a. Too many products selling online. b. Operational inefficiencies resulting in higher operating costs. c. Relatively slow methods of communication. d. Too much communication.

a - News or events that touch emotional responses are more likely to go viral.

Research studies have demonstrated that news stories and videos are more likely to be shared, liked, or go "viral" if they produce what kind of emotional arousal? a. High-arousal b. Low-arousal c. Medium to low-arousal

b - when addressing the marketplace question.

SWOT analysis is a structured planning method used to evaluate a project or a business venture. Why is the SWOT analysis conducted? Hint: SWOT refers to strengths, weaknesses, opportunities, and threats. a. To identify the target audience(s) and their access methods b. To determine how the marketplace is structured and how the business best interacts with an e-commerce presence c. To determine the job(s) that the e-commerce presence will satisfy d. To understand which business and revenue models are best for this implementation

b - The two-way communication platform of social media benefits companies in the areas of customer retention and expansion, customer relationship management, marketing research, product marketing, reduced marketing costs, public relations, and employee recruitment.

Social media benefits companies in all of the following, except: a. Reduced marketing costs b. Supplier relationship management c. Employee recruitment

True

TRUE or FALSE: Dynamically optimized pricing, this tactic is used to set prices according to market pressures, including locality, demand level, competitors pricing, the time of the day, week, or year, and a customer's willingness to pay.

True - Often with freemium pricing strategies, the core service might be free, but additional features and services may be available for a charge. Mobile phone apps and games are an example of this concept, where limited versions of software are available for free, but often charge a fee for full versions, additional features, or related digital goods.

TRUE or FALSE: Freemium, the offering of product samples and trial versions is not a new concept, although with a digital market and digital goods, product quality and available features can be tightly controlled so that when a customer wishes to expand their usage of a product, they need merely pay a fee and the new features may be immediately available.

True - Examples include Amazon's Marketplace and eBay.

TRUE or FALSE: Market Creator, much like a traditional bazaar or shopping mall brings together buyers and sellers, the Internet has many organizations who have built a business around providing a market platform. On this platform, individuals and organizations may transact business that is unrelated to the market creator, who nonetheless collects a fee for helping to create the opportunity.

True - Examples include pure-play firms such as Amazon, as well as traditional brick-and-mortar organizations such as Best Buy and Walmart.

TRUE or FALSE? E-tailer, as with traditional retailers of goods, groceries, and other physical products, e-tailers provide access for the sale of physical goods, which are then shipped to their customers.

d - Digital markets help to diminish search costs.

The flexibility and efficiency provided by digital markets resulted in many advantages. Which of the following is NOT an advantage of digital markets? a. Lower costs for changing prices b. Adjust easily to market conditions c. Change prices for different customers d. Increase search costs

False - Competitors are important stakeholders that can also be affected and significantly affect the way an e-company conducts its business.

True or False. Affecting components within a business's value chain may have extensive effects on its employees and customers, but not its competitors.

False - Online advertising is not a goal, although effective online advertising can result in more sales.

True or False. One of the three "goals" for companies to engage in e-commerce is to advertise their products online.

False - A private industrial network is a single organization that controls the construction and maintenance of relationships for a relatively small number of other organizations.

True or False. Private industrial networks bring together potentially thousands of businesses in the same industry to create efficiencies and synergies between and among member businesses.

False - E-businesses often use specific customer attributes to determine the prices to charge for the products that they sold

True or False. Specific customer attributes, such as purchase history, purchase frequency, and income levels relative to other customers, are considered private information. Therefore, companies cannot use such information to target their customers.

False - The three categories of businesses are sole proprietorships, partnerships, and corporations.

True or False. The three categories of businesses are "group" proprietorship's, partnerships, and corporations.

True - • Through the talent solutions division, recruiters and organizations can purchase and develop a branded corporate page on LinkedIn, purchase employment ads targeted to users with matching profiles, and can access the LinkedIn resume database. • Through the marketing solutions division, advertisers purchase targeted ads, paying a fee per click-through. • The premium subscriptions division offers additional services, including InMail for users to contact users with whom they are not connected, and other employment-related tools.

True or False: LinkedIn has three revenue sources: talent solutions, market solutions, and premium subscriptions.

True - Six Degrees was a social network site that allowed users to develop an online profile and connect with other users.

True or False: The dawn of Internet social media began with the launch of Six Degrees in 1997.

c - Developing a presence with e-commerce requires the organization to understand its purpose in creating an e-commerce page. This issue is addressed in this question.

Understanding the purpose of creating an e-commerce is addressed in which of the following questions? a. Who is the target audience(s) and how will they access? b. How is the marketplace structured and how will the business best interact with an e-commerce presence? c. What job(s) will the e-commerce presence satisfy? d. What business and revenue models are best for this implementation?

b - Gated-access means that users can only contact and share information if they establish a relationship as defined by both parties.

What does the term "gated-access" mean? a. Members can post confidential business information. b. Members can only contact one another if they have an established relationship. c. Members can search for jobs.

c - The proliferation of mobile, smart devices, like the iPhone from Apple and the Web 2.0 have enabled social media growth.

What has enabled social media use to grow exponentially over the past decade, dramatically changing how individuals and organizations communicate and conduct business? a. The Internet b. Broadband packet switched data communications c. Mobile Internet devices and Web 2.0

b - Business owners and executives understand that a positive, often mutually beneficial, relationship with other organizations is a key element to running a successful and sustained business operation.

What is a key element to running a successful and sustained business operation? a. Size of customer base b. Positive beneficial relationships c. Size of capital investment

c - LinkedIn provides business with a large, skills-specific database of possible candidates.

What is the business benefit of a social media website like LinkedIn? a. The ability to always find the right candidates. b. The ability to reduce wages due to proliferation of candidates. c. The ability to review and target candidates based on their background.

d - The bottom line is that anyone with access to the Internet can conduct business online and globally.

What is the main theme of Thomas Friedman's book on globalization, The World Is Flat? a. Personal computers allow ubiquitous access to large amounts of information from anywhere. b. The Internet allows ubiquitous access to a small amount of information at a time. c. The Internet helps to provide ambiguity among all parties in a transaction. d. The Internet helps to level the playing field between buyers and sellers.

b - An e-business communicates and interacts with their stakeholders via an online format.

What is the major difference between a rigidly defined brick-and-mortar depiction of a business and one that is purely an e-business? a. The way they operate their business. b. The way they communicate with their stakeholders. c. The type of customers they have. d. The type of products they sell.

b - Private industrial networks are owned by a single large corporation, whereas Net marketplace brings together thousands of businesses.

What is the major difference between private industrial networks and Net marketplaces? a. Amount of transactions conducted b. Ownership and/or control of the network c. Goals to achieve d. Who is the third party managing the network

b - Social engineering is a method used by hackers to develop a relationship with users in order to extract information.

What is the method used by hackers to develop a relationship with users in order to extract information? a. Phishing b. Social engineering c. Social networking

b - The SEO specialist boosts website rankings through analysis, testing marketing techniques, and creating new social media and web content.

What is the responsibility of a search engine optimization (SEO) specialist? a. To develop an Internet marketing campaign b. To increase traffic to the organization's website c. To work as the organizational liaison for search engine companies

c - The hunt for Osama Bin Laden was a major event in American history, and his capture and assassination by Navy Seals was first reported via a tweet.

What major event in American history was tweeted 20 minutes before any established news organization made the announcement? a. The capture of Saddam Hussein b. The election results of Barack Obama c. The assassination of Osama Bin Laden

a - SWOT analysis is conducted to better understand the organization, and is conducted when addressing the marketplace question.

What question does the SWOT analysis best answer? a. How is the marketplace structured, and how will the business best interact with an e-commerce presence? b. Who is the target audience(s and how will they access e-commerce sites? c. What job(s) will the e-commerce presence satisfy? d. What business and revenue models are best for e-commerce implementation?

a - The purpose for building e-commerce presence is addressed when answering the "What jobs will the e-commerce presence satisfy?" question.

When answering the question about target audience, managers do not have to address which of the following issues? a. The purpose for building e-commerce presence b. Buyer demographic characteristics c. The way users access the website

a & b - A sole proprietorship or sole trader is the simplest form of business, allowing an individual to register as a business, and enjoy all of the profits and benefits of doing business. A partnership is much like a sole proprietorship, but it may be created by two or more individuals who will personally and individually share the rewards and liabilities created by that business.

Which business structures are less formal? [Select all that apply]. a. Partnerships b. Sole proprietorship c. Corporations

b - LinkedIn is a social media site with a large database of users that employers can mine for possible candidates.

Which of the following best describes the features and capabilities of LinkedIn? a. LinkedIn provides users with a large, searchable database of employers. b. LinkedIn provides employers with a large, searchable database of users resumes. c. LinkedIn provides employers the ability to bid for contract services.

b - A sole proprietorship or sole trader is the simplest form of business, allowing an individual to register as a business and enjoy all of the profits and benefits of doing business.

Which of the following business structures is the simplest form for e-business? a. Corporations b. Sole proprietorships c. Franchises d. Partnerships

c - The age of the customer is not an attribute that e-businesses consider when setting prices.

Which of the following customer attributes is not helpful for accurately pricing goods to increase profit margins? a. Income level b. Purchase frequency c. Age d. Purchase history

d - Companies can have some idea of what to charge, but the prices are also heavily dependent on other variables.

Which of the following is FALSE regarding the dynamically optimized pricing concept? a. This pricing concept determines prices based on a customer's willingness to pay. b. This pricing concept determines prices according to market pressures. c. This pricing concept uses variables such as the level of supply and quantity demanded of any given good. d. The prices for goods is largely dependent on what the company decides.

b - An e-commerce presence is usually designed for a specific firm to meet its stated mission; therefore, it is not typically acquired from another firm.

Which of the following is NOT a typical option for creating an e-commerce presence? a. Purchasing e-commerce services from a service provider. b. Acquiring an e-commerce presence from another firm. c. Purchasing e-commerce services from off-the-shelf software. d. Creating an e-commerce presence from scratch.

b - Ultimately, cost will play an important part in e-commerce development, but capital investment it is not an essential question to address during the initial phase.

Which of the following is NOT an important question to address in the initial phase of development for an e-commerce presence? a. What business and revenue models are best for this implementation? b. What is the capital investment for the project? c. How is the marketplace structured, and how will the business best interact with an e-commerce presence? d. Who is/are the target audience(s), and how will they access the site?

a - Social media, such as Facebook, Twitter, and Instagram, has become a popular tool for companies to promote their businesses or close the loop after a sale.

Which of the following is the most popular tool that companies use to promote their businesses or to close the loop after a sale? a. Social media b. SurveyMonkey.com c. Email communications

b - Private industrial networks and Net marketplaces are professional and industrial networks that include connections to governments, non-profit institutions, and service professionals.

Which of the following statement regarding private industrial networks and Net marketplaces is true? a. They allow connections across industries to create closer collaborative ties. b. They are professional and industrial networks. c. They are maintained by the government. d. They are created and/or sponsored by the government.

d - The division between brick-and-mortar and online operations have been effectively erased or abandoned for the omni-channel model.

Which of the following statements best describes the multi-channel, omni-channel model? a. It allows warehouses filled with inventory to become hybrid warehouse. b. It is a multi-channel model. c. Physical retail storefronts now become distribution centers. d. It erased the division between brick-and-mortar and online operations.

c - Warehouses filled with inventory become distribution centers, not hybrid warehouses.

Which of the following statements is FALSE regarding the omni-channel model? a. The model is facilitated by e-business connections, dynamic variability, and inherent scalability. b. The model has direct customer interaction nodes focused on a seamless online/offline customer experience. c. The model promotes warehouses filled with inventory that become hybrid warehouses.

d - Private industrial networks and Net marketplaces are created and/or sponsored by individual organizations, not the government.

Which of the following statements regarding private industrial networks and Net marketplaces is false? a. They allow connections within an industry to create closer collaborative ties. b. They are professional and industrial networks. c. They are maintained by third parties. d. They are created and/or sponsored by the government.

True - Operational efficiencies and the speed of the Internet help e-businesses respond and react quickly to changes within the business environment, more so than their traditional brick-and-mortar counterparts.

[True/False] Because of operational efficiencies and the speed of the Internet, businesses that operate digitally may be much better at responding to requirements and changes than traditional brick-and-mortar businesses.

False - The LinkedIn model has benefited the entire recruitment community.

[True/False] The LinkedIn model benefits business organizations only, and has dramatically altered the employment and career environment.

True - Data sources may affect whether the use of the information is valid, legal, or a violation of insider trading regulations.

[True/False] When considering social media in investment strategies, the source of the data may affect whether the use of the information is a violation of insider trading regulations.