Chapter 7 - Electronic and Mobile Commerce

Through e-government, _____.

-citizens can submit their state and federal tax returns online -firms can bid on government contracts -government agencies can post procurement notices to interested parties -all of the above

Is a subset of e-commerce in which all the participants are organizations ; is a useful tool for connecting business partners in a virtual supply chain to cut resupply times and reduce costs

Business-to-business (B2B)

Which of the following forms of e-commerce is more likely to offer a uniform product offering?

Business-to-business (B2B) e-commerce

Is a form of e-commerce in which customers deal directly with an organization and avoid intermediaries

Business-to-consumer (B2C)

Is a trusted third-party organization or company that issues digital certificates

Certificate Authority (CA)

Is a subset of e-commerce that involves electronic transactions b/w consumers using a third party to facilitate the process

Consumer-to-consumer (C2C)

Is an attachment to an email message or data embedded in a web site that verifies the identity of a sender or web site

Digital certificate

_____ is the elimination of intermediate organizations between the producer and the consumer.

Disintermediation

The use of info and communications technology to simplify the sharing of info, speed formerly paper-based processes, and improve the relationship b/w citizens and government

E-government

an electronic forum where manufacturers, suppliers, and competitors buy and sell goods, trade market information, and run back-office operations

Electronic exchange

Jonah's Medical Equipment used to sell common medical supplies through mail order catalogs, but the company's order takers often had difficulty deciphering their customers' handwriting on the order forms. Since switching to an online e-commerce site, Jonah's has been able to enjoy the advantage of ______.

Increased accuracy

All businesses are subject to security breaches, in which customers' personal data may be compromised. What's the first thing a business should do to minimize the risk?

Make a substantial investment in systems that safeguard the data

Divides the pool of potential customers into subgroups usually defined in terms of demographic characteristics, such as age, gender, marital status, income level, and geographic location

Market Segmentation

The division of potential customers into subgroups, usually defined in terms of demographic characteristics such as age, gender, marital status, income level, and geographic location, is called _____.

Market Segmentation

Is an html code not visible on the displayed web page, that contains keywords representing your sites content

Meta tag

Is the process of tailoring web pages to specifically target individual consumers

Personalization

Is a credit card used to streamline the traditional purchase order and invoice payment processes

Procurement card or purchasing card(P-card)

If you want to improve traffic to your e-commerce site, which of these activities is your best option?

Regularly post quality, keyword-rich content to your Website

Which of the following statements is true of retargeting?

Retargeting is a legitimate business process since an average of 74 percent of all online shopping carts are abandoned.

A company(business) that acts as an intermediary between your Web site and online merchants who have the products and retail expertise.

Storefront broker

is a communications protocol or system of rules that ensures privacy b/w communicating applications and their users on the internet

Transport Layer Security (TLS)

A certificate authority is responsible for guaranteeing that the people or organizations that are granted unique digital certificates are in fact who they claim to be.

True

For m-commerce to work effectively, the interface must be so good that it is nearly as easy to make a purchase on a mobile device as it is on a laptop or desktop computer.

True

Identity theft occurs when someone steals a person's personal information and uses it without his or her permission, often to commit fraud or other crimes

True

Millions of online shoppers do not pay state or local tax on their online purchases because the retailers lack physical presence in the state.

True

One of the main measures of success of a mobile ad is CTR, which stands for click-through-rate.

True

Personalization is the process of tailoring Web pages to specifically target individual consumers.

True

Andy runs a brick-and-mortar store selling men's grooming products. He has some knowledge of HTML coding, and he wants to set up an online e-commerce site. What is his best option?

Use a hosting service to set up the site so he can stay focused on his business

Intended to prevent identity theft during an online shopping transaction, the Transport Layer Security (TLS) is _____.

a communications protocol that ensures privacy during the transaction

Due to ______, the number of mobile Websites worldwide is expected to grow rapidly.

advances in wireless broadband technologies

A reason for the growth in _________ is that online shoppers have the ability to design a personalized product.

business-to-consumer (B2C) e-commerce

With the explicit personalization technique, _______.

businesses capture data provided by users

E-commerce sites are able to minimize the amount of data entry errors typically associated with buyer-employee communications ________.

by having the buyers enter product information themselves

Online auctions are the chief method for electronic transactions between consumers in _______.

consumer-to-consumer (C2C) e-commerce

Which of the following is NOT one of the three basic components of a successful e-commerce model?

convenience

When compared to traditional commerce, ________.

e-commerce transactions can be more accurate in processing and fulfillment

Authentication technologies are used by many organizations to _____.

ensure that users are who they claim to be

The information necessary for personalizing Web pages for individual customers _________.

is primarily gathered by analyzing users' historical transactions on the Web site

A meta tag is an HTML code that _____.

is used by search engines to build indexes pointing to the Website

Which of the following is one of the key Web site performance measures commonly used by online retailers?

response time

Conversion to an e-commerce or m-commerce system enables organizations to _________.

speed the flow of goods and information

A procurement card is a credit card issued to selected employees to __________.

streamline the purchase order and invoice payment processes

Consumers prefer mobile commerce sites ________.

that offer effective search tools and transaction speeds

Consumers who live in states with sales tax are supposed ______ and report them on their state income tax returns.

to keep track of their out-of-state purchases

A business associate can complete a request for quotation to be submitted to a vendor's Web site.

true

A digital certificate is an attachment to an email message or data embedded in a Web site that verifies the identity of a sender or Web site.

true

A private electronic exchange is an electronic forum that is owned and operated by a single company or entity.

true

A storefront broker is a company that acts as an intermediary between a Web site and online merchants who have the products and retail expertise.

true

Although the business-to-consumer market grabs more of the news headlines, the B2B market is considerably larger and is growing more rapidly.

true

Bartering is a technique used by businesses to reduce excess inventory and/or gain new customers.

true

By converting to an e-commerce system, a business can reduce the cost of doing business.

true

Consortium-operated exchanges are run by groups of traditionally non-competing companies with common procurement needs.

true

Conversion to an e-commerce or m-commerce system enables organizations to reach new customers.

true

Electronic cash is an amount of money that is computerized, stored, and used as cash for e-commerce transactions.

true

If you abandon an online shopping cart, the Web site you were shopping on may try to recapture your business with "retargeting."

true

Implicit personalization techniques capture data from actual customer Web-usage sessions.

true

In the past, market segmentation has been difficult for B2B marketers because firmographic data was difficult to obtain.

true

It is not safe to assume that your personal information will be secure because security breaches of information systems happen quite frequently and to businesses of all sizes.

true

M-commerce offers great promise for developing countries, helping them to enter the prosperous global marketplace.

true

Mobile commerce destinations, used to place orders and conduct business through mobile devices, are designated with a domain ending in .mobi.

true

On PayPal, you can pay with a credit card, a debit card, or funds from a checking account.

true

One of the most often-heard reasons consumers have for not purchasing products online is that they don't trust the vendors.

true

Only a business or organization can develop a request for quotation; vendors then develop their quotations and return them to the business or organization that made the request

true

Shoppers find that many goods and services are cheaper when purchased online.

true

Smart cards can be used to store a user's financial facts.

true

The three basic components of a successful e-commerce model include content, commerce, and community.

true

There are many more sell-side e-commerce activities for a typical business-to-business (B2B) than for a typical consumer-to-consumer (C2C) e-commerce.

true

Visa has a patented process that provides an instantaneous rating of a transaction's potential for fraud to the financial institution that issued the card.

true

When engaging in e-commerce, consumers typically experience the sales life cycle, the first stage of which is search and identification.

true

The Address Verification System is a security technique associated with payment authorization requests. It helps in _______.

verifying the card user's address