Digital Commerce
The overall retail market in the United States in 2016 was estimated at about:
$4.8 trillion.
The size of the B2B market in 2017 was estimated at:
$6.7 trillion
In the address http://www.company.com/clients.html, which of the following is the top-level domain?
.com
In 2016, there were more than ________ Internet hosts.
1 billion
How long does it take for 300,000 X-rays to be transmitted on a 100-gbps network?
1 minute
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 2016, the world's online population was estimated to be around:
3.3 billion.
An IPv4 address is expressed as a:
32-bit number that appears as a series of four separate numbers separated by periods.
Which IEEE 802.11 standard provides for throughput of up to 7 Gbps?
802.11ad
In 2016, almost ________ of Americans who access the Internet use a mobile device at least some of the time.
93%
Which of the following statements about cloud computing is not true?
A public cloud is typically used by companies with stringent privacy and security requirements.
Which of the following statements about fiber-optic cable is not true?
As of 2016, a majority of U.S. homes have fiber connections.
Which of the following protocols enables the exchange of routing information among different autonomous systems on the Internet?
BGP
Which of the following was not able to successfully implement a freemium business model?
Baremetrics
Which of the following is not an example of the bricks-and-clicks e-tailing business model?
Bluefly
Which of the following is currently the most popular web browser?
Chrome
________ is a model of computing in computer processing, storage, software, and other services are provided as a shared pool of virtualized resources over the Internet.
Cloud computing
________ is a model of computing in that computer processing, storage, software, and other services are provided as a shared pool of virtualized resources over the Internet
Cloud computing
Which of the following is an example of C2C e-commerce?
Craigslist
Which of the following companies uses a transaction fee revenue model?
E-Trade
________ create and sell access to digital markets.
E-procurement firms
All of the following would be considered a direct competitor of Priceline except:
ESPN
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 Priceline?
Expedia
Which of the following organizations coordinates the Internet's systems of unique identifiers, such as IP addresses and top-level domain systems?
ICANN
Which of the following protocols is used to send mail to a server?
IMAP
Which of the following statements about Foursquare is not true?
In 2016, Foursquare decided to refocus its effort on developing a subscription-based revenue model.
Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as:
Incubators
During which phase of the development of the Internet was the Domain Name System (DNS) introduced?
Institutional
During which phase of the development of the Internet was the Domain Name System (DNS) introduced?
Institutional phase
The ________ is a consortium of corporations, government agencies, and nonprofit organizations that monitors Internet policies and practices.
Internet Society (ISOC)
Which of the following is not a characteristic of a perfect competitive market?
It is highly regulated.
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 statements is not true?
Overall transaction costs have dropped dramatically.
________ is a utility program that allows you to check the connection between your client and a TCP/IP network.
Ping
Which of the following is not a community provider?
Priceline
A firm's ________ describes how a firm will produce a superior return on invested capital.
Revenue Model
An example of a company using the content provider model is:
Rhapsody.
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 an example of the subscription revenue model?
Scribd
Which of the following is not a major business trend in e-commerce in 2015-2016?
Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants.
Which of the following statements about e-commerce in the United States in 2016 is not true?
Social e-commerce generates more revenue than mobile e-commerce.
What country intends to be the first to use Project Loon to provide universal Internet access?
Sri Lanka
All of the following can be considered a direct or indirect competitor of Amazon except:
Starbucks
________ technologies are technologies that enable the incremental improvement of products and services.
Sustaining
Which of the following is the core communications protocol for the Internet?
TCP/IP
A private cloud is operated solely for the benefit of a single tenant.
TRUE
The Internet of Things (IoT) is based on sensors that collect data and connect to the Internet.
TRUE
The Internet's universal standards can change industry structure by decreasing barriers to entry and increasing competition within an industry.
TRUE
The JOBS Act and issuance of enabling regulations by the Securities and Exchange Commission allow a start-up company to use crowdfunding to solicit investors to invest in small and early-stage start-ups.
TRUE
The Reinvention period of e-commerce is as much a sociological phenomenon as it is a technological or business phenomenon.
TRUE
The major hubs in the United States where the Internet backbone intersects with regional and local networks are now commonly referred to as Internet Exchange Points (IXPs).
TRUE
The term e-commerce refers to the digital enabling of transactions and processes involving an exchange of value across organizational boundaries
TRUE
The term unfit fitness refers to a situation in which employees of a firm have the wrong skills for the current environment.
TRUE
Ubiquity lowers the cognitive energy required to transact in a marketspace.
TRUE
________ is used to allow remote login on another computer.
Telnet
Which of the following was the original "killer app" that made the Internet commercially interesting and extraordinarily popular?
The Web
Which of the following statements about the Web is not true?
The Web is the technology upon which the Internet is based.
The backbone of the Internet is formed by:
Tier 1 ISPs.
The protocol that enables the transmission of voice and other forms of audio communication over the Internet is called:
VoIP
All of the following are involved in the effort to create standards for IoT except:
W3C
Which of the following occurred during the Commercialization phase of Internet development?
Which of the following occurred during the Commercialization phase of Internet development?
The major technologies used with wireless local area networks are:
Wi-Fi and Bluetooth.
A(n) ________ is a Web application that allows users to easily add and edit content on a Web page.
Wiki
All of the following are examples of social networks except:
Y Combinator.
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.
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
Which element of the business model refers to the presence of substitute products in the market?
competitive environment
eBay uses all of the following business models except:
content provider.
Which of the following terms can be considered synonymous with the term e-commerce?
digital commerce
Which of the following terms is synonymous with e-commerce?
digital commerce
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 refers to the displacement of market middlemen and the creation of a new direct relationship between producers and consumers?
disintermediation
Innovative entrepreneurs and their business firms that destroy existing business models are referred to as ________.
disruptors
The ________ allows a natural language expression, such as Google.com to represent a numeric IP address.
domain name system
The ________ allows a natural language expression, such as Google.com, to represent a numeric IP address.
domain name system
Amazon is an example of which of the following business models?
e-distributor
W.W. Grainger is an example of which of the following business models?
e-distributor
Which of the following may offer its customers value chain management software?
e-procurement companies
All of the following use a subscription revenue model for music except:
eHarmony.
Which of the following is an example of an e-commerce first mover that failed?
eToys
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.
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
All of the following were visions expressed during the early years of e-commerce except:
fast follower advantage.
All of the following may lead to a competitive advantage except:
fewer products.
Which of the following is not a primary activity in a firm value chain?
finance/accounting
Which of the following is another name for a revenue model?
financial model
Which of the following involves a company giving away a certain level of product or services without charge, but then charging a fee for premium levels of the product or service?
freemium strategy
Business-to-consumer (B2C) e-commerce in the United States:
has grown at double-digit rates between 2010 and 2016.
All of the following statements about mobile apps are true except:
iOS apps are cross-platform, open-source applications.
The use of a company's competitive advantage to penetrate surrounding markets is known as ________.
leverage
In the ________ business model, a Web-based business builds a digital environment in which buyers and sellers can meet, display products, search for products, and establish prices.
market creator
In the ________ business model, a web-based business builds a digital environment in which buyers and sellers can meet, display products, search for products, and establish prices.
market creator
Which of the following is not a variation of the e-tailer business model?
market creator
A ________ specifically details how you plan to find customers and sell your product.
market strategy
A ________ specifically details how you plan to find customers and to sell your product.
market strategy
Which of the following is a physical place you visit in order to transact?
marketplace
The costs incurred by merchants changing product prices (such as the costs of reentering prices into computer systems) are referred to as:
menu costs.
Unfair competitive advantages occur when:
one competitor has an advantage others cannot purchase.
Which of the following represent Amazon's primary value proposition(s)?
selection and convenience
Which of the following features of e-commerce technology allows users to participate in the creation of online content?
social technology
Which business strategy involves implementing a new, more efficient set of business processes that other firms cannot yet obtain?
strategy of cost competition
Above all, e-commerce is a ________ phenomenon.
technology driven
Which of the following is not a concern about IoT?
the high cost of sensors
The existence of a large number of competitors in any one market segment may indicate:
the market is saturated.
The existence of many competitors in any one market segment may indicate:
the market is saturated.
All of the following are major social trends in e-commerce in 2016-2017 except for:
the refusal of online retailers to accept taxation of Internet sales.
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.
Which of the following was the original purpose of the Internet?
to link large mainframe computers on different college campuses
The financial services, travel services, and job placement services industries typically use the ________ business model.
transaction broker
Internet traffic is predicted to ________ by 2019.
triple
E-commerce is available just about everywhere and anytime. This is known as ________.
ubiquity
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 what a firm provides that other firms cannot?
value proposition
Which element of the business model addresses what a firm provides that other firms do not and cannot?
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 of the following is an example of an on-demand service company?
Airbnb
All of the following use a social network marketing strategy except:
Amazon
All of the following use an advertising revenue model except:
Amazon
Which of the following is not considered a portal?
Amazon
Which of the following is an example of e-business?
Amazon's inventory control system
________ is an example of e-business.
Amazon's inventory control system
The Web runs in which layer of Internet architecture?
Applications layer
What type of Internet access technology are Google and Facebook hoping to use to provide Internet access to remote parts of the world?
Drones
Which of the following companies use a transaction fee revenue model?
E*Trade
A company's strong linkages with its customers decreases switching costs.
FALSE
Cost transparency refers to the ease with which consumers can find out the variety of prices in a market.
FALSE
E-commerce has decreased price competition in nearly all markets
FALSE
First movers are usually more successful than follower firms.
FALSE
IPv6 provides for 32-bit IP addresses.
FALSE
Scale economies are efficiencies that result from flattening the hierarchy of an organization.
FALSE
The Internet has shown similar growth patterns as other electronic technologies of the past.
FALSE
The emergence of mobile, social, and local e-commerce occurred during the Consolidation period of e-commerce.
FALSE
Which of the following is not one of the basic technological foundations of the Internet?
FTP
Which of the following is an example of B2B e-commerce?
Which of the following is an example of social e-commerce?
Bluetooth is an advanced form of DSL.
False
On-demand service companies are characterized by the free sharing of resources between the company and consumers.
False
Packet switching requires a dedicated circuit.
False
TLS is a protocol used to transfer files to and from a server.
False
The use by a company of its competitive advantage to achieve more advantage in surrounding markets is known as ________.
Leverage
Which of the following describes the basic web policy of large firms during the Invention period?
Maintain a basic, static website depicting the firm's brand.
The first Web browser to make it possible to view documents on the Web with colored background, images, and animations was:
Mosaic
The first web browser to make it possible to view documents on the Web with colored background, images, and animations was:
Mosaic.
Which of the following is not true about the mobile platform?
Most smartphones use Intel chips.
A value proposition defines how a company's product or service fulfills the needs of a customer.
TRUE
All firms need an organization to efficiently implement their business plans and strategies.
TRUE
Amazon Web Services is an example of cloud computing.
TRUE
Asymmetries enable some firms to have an edge over others.
TRUE
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.
Which of the following is not true regarding e-commerce today?
The market middlemen disappeared.
Which of the following best describes the early years of e-commerce?
They were a technological success but a mixed business success.
Which of the following is a utility program that allows you to track the path of a message sent from a client computer to a remote computer on the Internet?
Tracert
All of the following are issues facing Pinterest except:
inability to retain users.
The total number of users or customers an e-commerce business can obtain is called:
reach
A firm's ________ describes how a firm will produce a return on invested capital.
revenue model
Which of the following gives a business model the most credibility with outside investors?
the firm's management team
E-commerce can be defined as:
the use of the Internet, the Web, and mobile apps to transact business.
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.
Internet2 provides a nationwide 100 gigabit-per-second network.
TRUE
SupplyOn is an example of a(n):
industry consortium.
The fact that e-commerce is conducted on the basis of universal standards increases search costs for consumers.
FALSE
Tier 3 ISPs provide long-haul fiber-optic networks that comprise the Internet's backbone.
FALSE
Universal standards make price discovery more costly, slower, and less accurate.
FALSE
Retail e-commerce in the United States is not expected to continue growing at double-digit growth rates in 2016-2017.
False
WLAN-based Internet access derives from the same technological foundations as telephone-based wireless Internet access.
False
Which of the following is not a mobile messaging application?
Feedly
Which of the following is not a basic type of cloud computing service?
FiOS
A strategy designed to compete within a narrow market or product segment is called a ________ strategy.
Focus
Which of the following statements about Foursquare is not true?
Foursquare's business model faces significant intellectual property concerns.
The concept behind document formatting has its roots in which of the following?
GML
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
The ________ helps define the overall structure of the Internet.
IAB
Which of the following organizations involved with Internet governance has the United States recently given up control over?
IANA
Which of the following organizations coordinate the Internet's systems of unique identifiers, such as IP addresses and top-level domain systems?
ICANN
Which of the following is an example of the affiliate revenue model?
MyPoints
Which of the following occurred during the Commercialization phase of Internet development?
NSF privatized the operation of the Internet's backbone.
B2B e-commerce is the largest type of e-commerce.
TRUE
E-commerce and e-business systems blur together at the business firm boundary, at the point at which internal business systems link up with suppliers or customers.
TRUE
Firms that fail to produce returns greater than alternative investments typically go out of business.
TRUE
HTML is used to format the structure and style of a web page.
TRUE
Interactivity that enables product customization alters industry structure by reducing the threat of substitutes.
TRUE
Price dispersion remains pervasive online.
TRUE
SaaS and PaaS providers can typically provide services at lower costs through scale economies.
TRUE
Social technologies change industry structure by shifting programming and editorial decisions to consumers and creating substitute entertainment products.
TRUE
T1 and T3 refer to international telephone standards for digital communication.
TRUE
The Internet is a worldwide network of computer networks.
TRUE
Which of the following is a utility program that allows you to track the path of a message you send from your client to a remote computer on the Internet?
Tracert
Which of the following is not an element of friction-free commerce?
Transaction costs are high
TCP/IP operates in which layer of Internet architecture?
Transport Services and Representation Standards layer
E-commerce technologies provide a unique, many-to-many model of mass communication.
True
Personalization involves targeting marketing messages to specific individuals by adjusting the message based upon a consumer's preferences or past purchasing behavior.
True
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 websites.
________ and ________ are typically the most easily identifiable aspects of a company's business model.
Value proposition; revenue model
A ________ marketplace supplies products and services of interest to particular industries.
Vertical
Stickiness is an important attribute for which of the following revenue models?
advertising revenue model
You could expect to find all of the following services in a Web server software package except:
an RSS aggregator.
You could expect to find the following services in a web server software package except:
an RSS aggregator.
The early years of e-commerce were driven by all of the following factors except:
an emphasis on exploiting traditional distribution channels.
A wealthy individual who invests personal funds in a start-up in exchange for an equity share in the business is referred to as a(n) ________.
angel investor
A wealthy individual who invests personal funds in a start-up in exchange for an equity stock in the business is referred to as a(n) ________.
angel investor
All of the following are examples of Web 2.0 sites and applications except:
auction sites.
Snapchat's Lenses feature is an example of which of the following?
augmented reality
Where does TLS operate within TCP/IP?
between the Transport Layer and the Application Layer
Which of the following is a characteristic of the Consolidation phase of e-commerce?
brand extension and strengthening becomes more important than creating new brands
Which of the following is an unfair competitive advantage?
brand name
Which of the following technologies has enabled the Internet to grow exponentially to support millions of users, without overloading the network architecture?
client/server computing
The business model of e-tailers is quite similar to that of:
e-distributors.
The business model of e-tailers is similar to that of:
e-distributors.
TheSeam 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 refers to any disparity in relevant market information among parties in a transaction?
information asymmetry
Which of the following is one of the three primary societal issues related to e-commerce?
intellectual property
Cortana is a type of:
intelligent personal assistant.
Which of the following refers to delays in messages caused by the uneven flow of information packets through the network?
latency
Which of the following is not a key element of an elevator pitch?
legal structure
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
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 enables Internet users to communicate with each other, although not in real time?
online forum
In general, the key to becoming a successful content provider is to:
own the content being provided.
The process of slicing digital messages into parcels, sending them along different communication paths as they become available, and reassembling them at the destination point is called:
packet switching.
All of the following are business models employed in the online music industry except:
peer-to-peer streaming.
All of the following are examples of business-to-business (B2B) business models except:
portals.
Which of the following is a set of rules for transferring data?
protocol
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
Which of the following refers to the complexity and content of a message?
richness
Which of the following are central directories that list all domain names currently in use for specific domains?
root servers
Which of the following are specialized computers that interconnect the thousands of computers that make up the Internet in order to transmit message parcels along available communication paths and on to their destinations?
routers
Which of the following are specialized computers that transmit message parcels along available Internet communication paths and on to their destinations?
routers
Portals primarily generate revenue in all of the following ways except:
sales of goods
Which of the following are Amazon's primary value propositions?
sales of goods
All of the following are characteristics of HTML5 except:
support for digital rights management.
Which of the following was the first large-scale digitally enabled transaction system in the B2C arena?
the French Minitel
Which of the following was the first truly large-scale digitally enabled transaction system in the B2C arena?
the French Minitel.
Which of the following factors is not a significant influence on a company's competitive environment?
the availability of supportive organizational structures
Which of the following is not a significant influence on a company's competitive environment?
the availability of supportive organizational structures
Which of the following is the best definition of transaction cost?
the cost of participating in a market
All of the following are considered a precursor to e-commerce except:
the development of the smartphone.
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 limitation of the current Internet?
the difficulty in expanding capacity by adding servers and clients
Interactivity in the context of e-commerce provides which of the following functionalities?
the enabling of two-way communication between consumer and merchant
Which type of investor typically becomes interested in a start-up company after it has begun generating revenue?
venture capital investors
Which of the following refers to the practice of researching a product online before purchasing it at a physical store?
webrooming
A(n) ________ allows users to easily add and edit content on a web page.
wiki
Which business application is associated with the technological development of local area networks and client/server computing?
workgroup automation (e.g., document sharing)