Chapter 6 and 7 IS 130

In the __________ EC model, organizations attempt to sell their products or services to other organizations electronically from their own private e-marketplace Web site and/or from a third-party Web site.

SELL-side marketplace

Kelly's publishing company Serious Griffin Books has recently grown out of being a small, independent publisher to a medium-sized contender with a few international contracts. This means that Kelly needs to reorganize her work processes and start having weekly meetings with remote international partners and team members to work on active projects together on an equal basis. However, the expanding publishing company is in a sensitive growth phase financially, so Kelly needs to continue moderate spending. Kelly contacts you to consu

Start everybody on using Microsoft SharePoint Workspace with version management, implement an asynchronous e-collaboration system, and start using a cloud-based telepresence system such as Fuze.

Betty is a reseller of furniture styles from Asia that incorporates bamboo and other earth-friendly materials in her designs. She is thinking of expanding online to sell her furniture. Her business partner, Jeanine, advised her to dismiss the idea since their customers prefer to come in, see, touch, and try out the designs and materials before making a purchase. Although Betty agrees that their customers probably want that experience, their sales have declined steadily over the last 10 years despite an increase in demand overall for earth friendly, simple furniture. As a consultant, what advice would you give them?

Their business is suffering from showrooming, where customers are coming in to see, touch, and try out the merchandise to find out which models they want but are likely looking for better prices from online retailers; this is causing the decline in sales, despite an increase in demand

In spite of the fact that the site assures him that payments are secure, Deacon is concerned that his credit card information is vulnerable when he is making a purchase on Amazon. What is the BEST way to explain to Deacon how Amazon protects his credit card information?

When you purchase a book from Amazon, for example, your credit card information and purchase amount are encrypted in your browser. This procedure ensures the information is safe while it is "traveling" on the Internet to Amazon. The information is transferred automatically (in encrypted form) to a clearinghouse where it is decrypted for verification and authorization. The clearinghouse asks the bank that issued your credit card (the card issuer bank) to verify your credit card information. Your card issuer bank verifies your credit card information and reports this to the clearinghouse. The clearinghouse reports the result of the verification of your credit card to Amazon. Amazon does not open the encrypted information that it receives from the bank.

What type of business would MOST LIKELY use a stored-value card?

a library with a copier machine

You are preparing a presentation for the main office of an alliance of like-minded non-profits. The office purchases paper with a high content of recycled material for a variety of non-profits, but it also makes purchases for non-profits that have different operational needs. What relevant options for electronic exchanges should you include in your presentation

a vertical exchange in which the alliance can make office supply purchases using group purchasing; a horizontal exchange in which the alliance can purchase other indirect materials from the industry appropriate to the needs of each non-profit

You are giving a presentation to a large residential property management company. It wants to use positive, online advertising to reach potential new tenants, retain current tenants, and leverage its high percentage of tenant satisfaction in the marketplace. What online advertising options do you suggest?

banner ads targeted to potential renters seeking housing online and allowing customers to click to be directed to online property listings; permission marketing: asking customers' permission to receive online property listings.

A print shop manager needs to replace his new large-format printer with a new one. Using an auction would involve

bidding to buy another printer.

Logan's small firm has some difficulties with its communication channel. The channel is not cost effective or very easy to work with, and it has historically been tapped numerous times by outside sources. Which type of channel is Logan's firm using?

coaxial cable

When your firm switches to a model where the information provision is fully automated for free instead of using a middleman, that is called

disintermediation

Aaron is partaking in a corporate training program where he logs on to a virtual classroom twice a week and does all his assignments online either from his office or from home. Aaron is using the help of

distance learning

Frank's organization has found that it is using up too much valuable time training new employees. It is looking for a way to decrease the amount of time spent in training, while also reducing the costs associated with training. Which of the following should the organization use?

e learning

A group of parents has come together to purchase school supplies in one large order. Because of this, the school supply warehouse has agreed to reduce the overall cost of supplies. This is an example of

e-coop

In the EC business model, businesses request quotes from suppliers using a reverse auction mechanism. In the EC business model, companies run auctions of various types on the Internet.

electronic tendering system, electronic tendering system

The EC business model uses B2B with a reverse auction mechanism, while the EC business model uses C2C with multiple auction types

electronic tendering system, online auction

A materials manager uses a Web site to find equipment for his car parts warehouse. He connects with a seller and then negotiates a price. What kind of business commerce model does this situation describe?

exchange

Vintage for Less uses the sell-side marketplace model to provide goods to its customers. This means, in part, that the company is able to use third-party auction sites to _________ items.

liquidate

Susan pays a monthly fee to join a Web site that provides travel and entertainment discounts and coupons. What is this an example of?

membership

In the ________EC model, intermediaries try to match providers to customers' pricing needs; in the ______model, intermediaries show customers only the lowest available price.

name-your-own-price ,find-the-best-price

If Joanie has problems with receiving packets from a network medium, which layer is she experiencing difficulties with?

network interface

You are giving a presentation to the Smallville, Kansas Chamber of Commerce about advertising methods in e-commerce and how best to leverage positive advertising to sell its world-famous "good, wholesome, home-grown wheat." Which of the following points should you include in your presentation?

permission marketing: asking customers specifically to allow online advertising; viral marketing: encouraging positive word-of-mouth recommendations from friends and family; and online advertising: disseminating product information via banner ads on popular Web sites

Consumers voluntarily accept online advertising and e-mail with ________ marketing; organizations rely on social media for marketing purposes with _________ marketing.

permission, viral

Mickey uses reverse auctions to get the best price on office supplies for the school district that employs him. He is using a buy-side method of

procurement.

A famous hand-blown glass artist from Japan is looking to market his art and glass décor to high-end customers in the North American and European markets. Your firm has been hired by his father, a car manufacturing executive, to present possible e-commerce business models to his son, the son's teacher, and one of the father's bankers. Which of the following business models should you present to the group?

product customization, in which art lovers could customize the look of their own glass pieces; online auctions, where customers would compete price-wise with each other over unique pieces; and online direct marketing to allow customization and to sell directly to customers

Teagan sells hand-knit scarves on a Web site that is owned by a third party and is also used by many other vendors selling a variety of products. This Web site is an example of a(n)

public exchange

In a _______ the buyer, usually an organization, posts a request for a quotation on its Web site, while in a __________, sellers solicit bids from many potential buyers.

reverse auction, reverse auction

Click-and-mortar organizations can run into channel conflicts when they

sell directly to customers online

In the model, organizations use forward auctions; in the model, organizations use reverse auctions.

sell-side, buy-side

Marcus has difficulty keeping track of his credit card, debit card, and grocery store loyalty card. He typically uses these to make small, daily purchases. What should he consider using to combine all of these functions in one card?

smart card

Joseph, a retired cobbler and senior citizen, is taking a class in Basic Web Site Building for Dummies. The class starts from the very beginning since many of the students are seniors with no experience with computers or the Web. The teacher informs Joseph and the rest of the class that

the Internet is a transport mechanism, and the Web is an application that uses these transport mechanisms. Organizations use text or graphic displays, called Web sites that are accessed through uniform resource locators, to display information on the Web. Hypertext defines these Web displays, and sometimes hyperlinks are used to transport the user to another Web site.

Jonas has just been told that there is something wrong with the TCP protocol in their network. Which layer should he look at to find the problem?

transport

_______is the practice of disseminating information in an attempt to influence a buyer-seller transaction.

Advertising

Picard Winery has a thriving brick-and-mortar operation, but it has hired you to help improve its e-commerce strategies. The customers at the physical store enjoy a selection of expensive and less expensive wines and also have access to special tasting events that encourage repeat business. The winery has decided to test out e-commerce. It would like to introduce a wine-of-the-month club that allows customers to become familiar with its exclusive products. The winery does not have access to a distribution center, is only able to ship from its storefront location, and does not feel equipped to handle orders that are selected from its entire stock of wines. Which of the following e-commerce strategies should you suggest to Picard Winery? Choose the MOST appropriate answer.

Create a Web site that focuses on information and promotions, encouraging customers to shop in the store. Develop a list of customer e-mails that will allow the company to inform customers of in-store events. Introduce a Find-In-Store model that will allow customers to determine if the wine they want is available in the store and how much of the limited stock is still available. Use a membership model to allow customers to have a bottle of wine shipped to them from the store each month but limit direct storefront sales to this model.

_________banks are dedicated solely to Internet financial transactions.

Electronic

The sell-side marketplace model is similar to the model in that the seller is expected to place the final order.

B2C, buyer

Compare stored-value money cards and e-credit cards.

Both are means of transferring funds electronically; however, a stored-value money card carries prepaid funds, while an e-credit card does not.

Audrey is currently doing some online shopping; she is choosing items from multiple stores with the intent to purchase them in one single transaction. The items she intends to purchase will be placed in an electronic

Cart

You are a volunteer teacher for an evening program to prepare teenagers to enter the world of personal finance as they graduate high school. Many of the students will be going to college, but some will not. Which of the following lesson outlines should you create in order to teach your students about the nuances of using e-commerce in relation to income, banking, and investments?

Cyberbanking: involves banking activities such as bill paying and account management; online securities trading: leveraging computers to trade stocks, bonds, and other instruments; and the online job market: used to find employment to increase personal income.

materials are inputs to the manufacturing process. materials are those items, such as office supplies, that are needed for maintenance, operations, and repairs.

Direct , Indirect

You have been asked to give a presentation to a guild of local artisans on various forms of Internet advertising. The guild is interested in creating a list of customer e-mails to let former buyers know about customer loyalty incentives. However, some guild members are concerned about invasive marketing practices. What is the MOST thorough way to explain the e-mail options that are available and the ethical issues, including spamming?

E-mail advertising is an effective way to advertise. Organizations wishing to specifically target past customers should develop, rather than purchase, an e-mail list. Using permission and viral e-mail marketing strategies involves the consumer in the choice to receive and forward e-mail advertising. This reduces the likelihood of abusing e-mail addresses, as in spamming, when e-mails are sent indiscriminately to potentially uninterested consumers without their permission.

What is the MOST LIKELY result of a company that completely converts its physical commerce to electronic commerce?

Expenses will decrease as disintermediation occurs.

What is the MOST LIKELY result of a company that keeps its electronic commerce completely separate from its physical commerce?

Expenses will increase, communication between channels will decrease, and customer alienation will increase.

Crook's Books, which touts the lowest prices for new and used books, has hired you to solve two business problems that arose after it launched its online book selling shop. The online shop has its own customer database that its physical stores cannot access, forcing customers to create multiple accounts with Crook's. Also, physical stores must order a book from another of Crook's physical stores to obtain an unavailable title, while the online store ships immediately to customers from their separate accounts and even allows a three-chapter preview of the title. Which of the following should you suggest to Crook's to help mitigate its business problems?

Implement multichanneling which will integrate the online and physical stores to allow access to a single customer database and allow on-demand shipping from the online warehouse directly to the customer, with the preview, if the physical store is out of stock

Horace has just acquired a company that manufactures microchips used in smartphones. The company has a good reputation, but only a few smartphone manufacturers know it exists. Horace has hired you as a consultant to analyze the company and advise him on which B2B models he should implement for the company. Which of the following is the BEST advice you can give him?

Implement the sell-side model in B2B EC; the company already has a good reputation among its current business customers which along with forward auctions will allow his company to increase its sales, reduce expenditures, increase delivery speed, and lower costs. He will also be able to gain more customers by offering customization of online orders.

You are working on a big research project with people from several different universities across the world. As part of a team, you share files all the time and are constantly looking for more information and other people who are researching conn

It is a good idea because files are divided, so downloading is not bogged down with BitTorrent; also, the users must share the file because they upload it while downloading it.

What does a router in a network do?

It sends messages from a LAN to the Internet.

Your friend Jerome owns a business that has gradually been transferring its business into the e-commerce field. He is a bit concerned with this progress, however, because he finds that there is a group of employees whose jobs are no longer necessary for the business since they can be fully automated. Jerome is not exactly sure what to do, and he has come to you for some advice. Which of the following is the BEST advice you can give him?

Jerome must make an ethical decision regarding these suddenly unnecessary employees. He is going to have to decide whether he keeps them on and retrains them to function in a different part of the business or whether he lays them off. If he lays them off, he will have to decide how he's going to handle the layoffs and what kind of compensation they'll be offered.

is a drawback of e-learning.

Learning time

Don Boehner has recently found himself unemployed after 5 years of heading the company that employed him for 35 years; the company is notorious for its lack of technological and efficient processes. Speaking with a lobbyist friend of his, he asks for advice on how to find a new job leveraging computers. Which of the following is the BEST piece of advice for the lobbyist to give him?

Look into the online job market, an online service industry component of e-commerce, as it is a new environment for job seekers and companies searching for hard-to-find employees such as Don.

Beverly is seeking to fill a very specialized position at her company that requires a great deal of expertise. She is concerned that the pool of local applicants is small. What is the BEST advice to give her?

Look into the online job market, including placing an online job ad and searching the bulletin boards of recruiters.

Molly is the director of a special events company that plans and implements large promotional events for companies. Most of the entertainment, catering, and other services are staffed in-house, but the company has taken on more events in one month than it can staff or supply from the company's warehouse. What buy-side models would you advise Molly to implement

Molly should use a vertical exchange reverse auction to obtain the additional supplies her company needs and a functional exchange to hire temporary labor to staff events

Leia is using an online auction site. Before she makes a purchase, she checks to make sure that the site promises to encrypt her credit card information. Why is this important?

Most electronic payment systems know and must protect the identity of buyers.

The VP of Finance is giving a presentation to the Board of Directors on his organization's need to leverage e-commerce for future growth in revenue. During the presentation, he notes the many benefits of e-commerce such as exposure to international markets, cost savings in information usage, and the ability to conveniently deliver the organization's products from sales conducted around the clock. He notes, however, that there is one potential drawback to using e-commerce: less-developed nations would not have access to the organization's e-store. He notes that there is nothing else of significant risk. Based solely on the content of his presentation, should the Board accept his advice? Why or why not?

No. He failed to note security risks and the lack of universally-accepted security standards regarding e-commerce.

The VP of Marketing at a company with significant international business recommends to her Board of Directors that the company invest in e-commerce infrastructure because this would lower the cost of processing, distributing, and retrieving information. She notes that a significant risk is that there are technological limitations that make Internet access unavailable to people in developing countries. Has the VP adequately covered all of the benefits and risks of e-commerce for a company that does business internationally?

No. She failed to mention that, in spite of technological limitations in developing countries, e-commerce makes national and international markets more accessible to companies. She also failed to take account of the risk that e-commerce is perceived as insecure, having unresolved legal issues and lacking a critical mass of buyers and sellers.

You are speaking to a group of senior adults who are ready to travel but are inexperienced at using online travel services. What is the MOST thorough presentation you can make of the benefits of planning travel online?

Online travel services can be comprehensive, allowing the traveler to book and arrange all aspects of your trip, including air travel, hotel and car rental from a single site. Some online travel services allow you to name your own price and then attempt to find a vendor that will match that price. Most sites also feature a fare-tracker system that allows you to receive notifications about low-cost flights.

Will and Deanna run a small shop that sells home-made cheeses and other gourmet foods. They have a booming brick-and-mortar business and have had success in selling specially-prepared food baskets online, but profits declined during the holiday season. The baskets were popular gifts, but there were many late deliveries and customer returns. What advice would you give them?

Order fulfillment is one of the biggest challenges facing e-tailers. It is very difficult to accomplish this when a company has to ship many small packages and do it quickly. Deanna and Will should examine their order fulfillment mechanisms to see what adaptations need to be made to allow them to cope with the increased volume of sales during the holiday season.

A company that provides tours of England and Ireland to North American customers has decided to allow customers to create their own tour packages with prices determined by unique combinations of tourist sites, accommodations, and modes of transportation. The company also offers pre-packaged tours at three set price points for customers who do not want to customize a package. The company wants to appeal both to tourists whose first priority is luxury and to those whose first priority is economy. Which of the following business models should you suggest to the group?

Product customization, in which travelers could customize the features of their tour; online auctions, where customers would compete price-wise with each other over pre-packaged tours; and online direct marketing to allow customization and to sell pre-packaged tours directly to customers

Ron set up an Internet-only bank which promised upwards of 20% interest earned each month on savings deposits. People deposited over $10,000,000 into the bank in the span of one week. Once the funds reached this mark, Ron quietly shut down the bank's Web site and used the money to move to Venezuela. How would you characterize what Ron did?

Ron used e-commerce for both unethical and illegal purposes.

The IT department of a city government manages one Web site that allows citizens to access a number of city services, contact various city departments, pay library fines, pay utility bills, register zoning and noise complaints, and comment on city council proceedings......

The IT department is using G2C to allow the city government to provide services to citizens. Though the HR department is a branch of city government, its Web site will exist to serve city employees exclusively and is not accessible to private citizens. The HR department should act as a business in this case and utilize B2E EC that is available only internally to city employees.

A finance team, headed by the director of revenue operations, an IT team, headed by the director of architecture, and a former Navy commander have rented a local restaurant bar to sit down for the afternoon and discuss the type of e-commerce system they need to build for their organization. The organization manufactures military-grade, high-end cyberwarfare weapons which are regulated by export controls to non-aggressor nation states. Finance recommends building a B2C model for EC, IT recommends building a B2B model for EC, and the commander recommends building a G2B model. Who has the BEST suggestion, and why?

The Navy commander has the best suggestion because G2B is much like B2B but with an overlay of government procurement regulations, in this case, the export controls placed on their product.

You have been asked to give a presentation to the local Elk's Club and Loyal Order of the Moose on the reasons to use a Web site for e-commerce. Which of the following topics should you include in your presentation

Using Web sites to enhance business reputation, to reduce operational and transaction costs, to solicit people to visit their location, and to sell services and products

exchanges are used within one industry; exchanges are used across multiple industries.

Vertical,horizontal

BW Books has just acquired Book Emporium. Its management is impressed with the number of happy, loyal customers at Book Emporium and would like to mobilize those customers to spread the word about the store and bring in even more business. What kind of marketing plan should be implemented?

Viral marketing

Lucien works all over the world and carries his tablet with him wherever he goes. He often needs to communicate with his team back in Boston as well as with clients and partners all over the globe; this is why he sets up remote conferences from his tablet. Which of the following is Lucian MOST LIKELY using for his conferences?

VoIP

Carla is a media and information journalist and researcher. She travels a lot, produces articles for several employers, and is conducting her own research for a book in her area of expertise. Carla needs to talk to employers, clients, her editors and agent, independent experts, and readers/fans constantly. Carla's assistant describes to her all the best communication methods that Carla can utilize in order to be in constant contact with people who are important to her in her field. Which of the following is the MOST accurate explanation that Carla's assistant gives her on her communications options?

VoIP can be conducted from a tablet or laptop and allows for real-time voice and camera contact as long as she has an Internet connection. Unified communications bundling offers Carla access to all electronic communications from her home base. IRC allows Carla to send text-based messages to clients and agents. Web chat sites allow her to specifically discuss topics with certain experts in those chat rooms.

Your grandmother is very confused about how the World Wide Web works. She corners you at Sunday dinner and has asked you to explain, simply, how the Web works, what Web sites are, and how Web sites work. Which of the following would be the best way to explain this to your grandmother?

Web sites are text and graphical displays in which you look at content produced by specific organizations. Those Web sites sometimes contain links that send you to another page or Web site using an address called a uniform resource locator.

Your great aunt is opening an online consignment shop to help reduce the clutter in her house. She worked with a representative from Visa, who set her up with a Web site with the ability to receive online credit card purchases. The Visa representative informed her that she will be PCI-compliant and won't be able to accidentally disclose her customers' financial information because she will never receive the actual credit card number during the transaction. Your aunt is confused about how she will be paid if she never receives the credit card information. What would be the BEST way to explain to her how she will be paid?

When the customer inputs his or her credit card information online, it is encrypted, sent to her Web site, and transferred to a clearinghouse that communicates with the cardholder's bank; the bank then verifies funds and sends the verification to her Web site and the customer. The bank then disburses the funds from the cardholder's account to her bank.

Wilf is presenting a consumer awareness seminar to help members of his neighborhood association look out for fraud on the Internet. He identifies the following types of illegal Internet fraud. He suggests that his neighbors refer to the FTC's scam publication for specific examples: Domain tasting, where a Web site takes advantage of the similarity of a domain name to that of a popular Web site in order to induce consumers to click on advertisements. Cybersquatting, where a Web site uses a domain name to profit from the reputation or trademark of a legitimate company. Price Manipulation through untrue online rumors. False rumors are used to artificially inflate the price of a stock. Stock Promotion, where undisclosed, paid stock promoters lure small investors on the Internet, through promises of higher-than-achievable gains. Selling Fake Investments, where electronic paperwork is submitted, yet no assets truly back any of the e-investment purchases. Evaluate his presentational materials.

Wilf is correct that price manipulation, stock promotion and selling fake investments are illegal. Cybersquatting and domain tasting are unethical, but domain tasting is not illegal. The FTC maintains a list of types of email scams. The list does not cover all types of Internet fraud.

Wizardshome is a gaming software company owned by Ben and Rheese Valor, a married couple, both gamers and software engineers

Yes. It is clear that Wizardshome has an issue with it crowdsourcing as it has grown. The company needs to weed out several levels of suggestions and implement some basic level of expertise for the advice given on the forum. The owners also need to have staff check for copyright violation mistakes and try to widen the variety of people who they receive ideas from so they do not get stuck in the same rut when it comes to product.

A search engine company has decided to invest in a fiber optics technology company that is helping ISPs bring more fiber optics to home computer users. This move is a first-of-its-kind since most companies that provide Internet services do not invest their capital in hardware. Would this move be a good direction for the search engine company? Why or why not?

Yes. More fiber optic networks mean better access and use of the company's services.

Bartholomew needs a communication channel to replace his outdated one. He would like a channel that is relatively inexpensive, provides good security, and sustains a very high bandwidth transmission rate. Which of the following channels should he use

fiber-optic

exchanges are primarily used to obtain goods and services on an "as-needed" basis.

functional

Joe's organization has teamed up with Marla's and Jennifer's organizations. Together they are attempting to attract more seller attention and negotiate a volume discount. What are they doing?

group purchasing

Jordan is getting frustrated with his office's current communication channel. The speeds are frequently too slow, and he spends at least an hour a day waiting for data to upload or download from the company's intranet. He is also frustrated that every time he has a conference call, the quality of the call is disrupted by cell phones in the area scanning for signals. What type of media channel does his company MOST LIKELY use?

twisted-pair wire

You are preparing for a presentation to an independent restaurant-owners association. The presentation is on the various types of electronic exchanges and how best to utilize them within the restaurant industry. Which of the following should you include in your presentation?

vertical exchanges: can be used to buy and sell restaurant equipment and other assets within the association and industry; horizontal exchanges: can be used to purchase restaurant, cleaning, office, and decorative supplies; and functional exchanges: can be used to find temporary restaurant help for as-needed positions and extra equipment for one-time uses, such as catering events