Midterm 2 Econ 139 ECommerce

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39) DRM refers to a combination of ________ for protecting digital content. A) hardware and software methods B) technical and legal means C) user and publisher agreements D) local and remote policies

B Page Ref: 641 Difficulty: Easy AACSB:

B Page Ref: 643-646 Difficulty: Easy AACSB:

26) Which of the following occurs first in the process of content convergence? A) media integration B) media migration C) media transformation D) media maturity

B Page Ref: 645 Difficulty: Difficult AACSB:

57) The New York Times introduced which of the following revenue models in 2011? A) paywall B) metered subscription C) advertising D) walled garden

B Page Ref: 656 Difficulty: Moderate AACSB:

B Page Ref: 664 Difficulty: Moderate AACSB:

46) Around what percentage of Amazon's top 100 selling books are now self-published? A) 10% B) 25% C) 33% D) 50%

B Page Ref: 664 Difficulty: Moderate AACSB:

59) Which of the following is the largest producer of revenues in the entertainment industry? A) radio B) television C) films D) video games

B Page Ref: 674 Difficulty: Moderate AACSB:

26) The top four social network sites in the United States in terms of monthly unique visitors are: A) Facebook, Twitter, Pinterest, and LinkedIn. B) Facebook, Google+, Twitter and LinkedIn. C) Facebook, Google+, Pinterest and Twitter. D) Facebook, Twitter, Tumblr, and Pinterest.

B Page Ref: 709 Difficulty: Moderate AACSB:

30 Copyright © 2015 Pearson Education, Inc. 28) Which of the following statements is not true? A) In 2014, the top three search engines generated almost four times as much U.S. search and display advertising revenue than that generated by social network sites. B) Among social networks, Twitter generates the highest amount of advertising revenue. C) The most popular social network tool for large corporate businesses is LinkedIn. D) The number of Fortune 500 business firms using Pinterest rose to over 35% in 2014.

B Page Ref: 712-713 Difficulty: Moderate AACSB:

19) iVillage is an example of a(n): A) interest-based social network. B) affinity community. C) sponsored community. D) practice network.

B Page Ref: 714 Difficulty: Moderate AACSB:

B Page Ref: 720 Difficulty: Easy AACSB:

37) Which of the following allows the consumer to enter a maximum price and the auction software automatically bids up the goods to that maximum price in small increments? A) watch lists B) proxy bidding C) sealed bidding D) price matching

B Page Ref: 728 Difficulty: Moderate AACSB:

58) Which of the following involves e-mailing another seller's bidders and offering the same product for less? A) transaction interception B) bid siphoning C) shill bidding D) persistent bidding

B Page Ref: 728 Difficulty: Moderate AACSB:

26) Which of the following is another name for a private industrial network? A) Net marketplace B) PTX C) EDI network D) hub-and-spoke system

B Page Ref: 752 Difficulty: Moderate AACSB:

32) Office supplies are an example of: A) direct goods. B) indirect goods. C) MRO goods. D) distributed goods.

B Page Ref: 758 Difficulty: Moderate AACSB:

36) ________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location. A) Having an adaptive supply chain B) Tight coupling C) Supply-chain management D) Materials requirement planning

B Page Ref: 762 Difficulty: Moderate AACSB:

44) Which of the following primarily deal with indirect goods? A) e-distributors and industry consortia B) e-distributors and e-procurement Net marketplaces C) exchanges and industry consortia D) exchanges and e-procurement Net marketplaces

B Page Ref: 778 Difficulty: Moderate AACSB:

47 Copyright © 2015 Pearson Education, Inc. 43) Which of the following primarily serve horizontal markets? A) e-distributors and exchanges B) e-distributors and e-procurement Net marketplaces C) e-procurement Net marketplaces and industry consortia D) exchanges and industry consortia

B Page Ref: 778 Difficulty: Moderate AACSB:

50) Which of the following statements about e-distributors is not true? A) E-distributors make money by charging a mark-up on products they distribute. B) E-distributors usually operate "private" markets. C) E-distributors operate in horizontal markets. D) E-distributor prices are usually fixed.

B Page Ref: 779-780 Difficulty: Difficult AACSB:

49 Copyright © 2015 Pearson Education, Inc. 51) An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis. A) e-distributor B) e-procurement Net marketplace C) exchange D) industry consortium

B Page Ref: 780 Difficulty: Moderate AACSB:

52) Which of the following is an example of an e-procurement Net marketplace? A) TheSeam B) Ariba C) Grainger D) SupplyOn

B Page Ref: 781 Difficulty: Moderate AACSB:

61) ________ is another name for transorganizational business processes. A) Supply chain management B) Collaborative commerce C) B2B e-commerce D) Value chain management

B Page Ref: 786 Difficulty: Moderate AACSB:

62) Private industrial networks are direct descendants of: A) e-procurement Net marketplaces. B) existing EDI networks. C) independent exchanges. D) industry consortia.

B Page Ref: 786 Difficulty: Moderate AACSB:

47) All of the following are challenges for catalog merchants except: A) high costs of printing and mailing. B) building a credible Web site. C) the need to bring staff in or manage new technology. D) building sophisticated order entry and fulfillment systems.

D Page Ref: 588-589 Difficulty: Moderate AACSB:

35) Which of the following is not a major contributing factor to net value? A) providing instantaneous, online access to information B) providing large, searchable historical archives C) enabling consumers to move online information to other documents easily D) offering a variety of subscription models

D Page Ref: 646 Difficulty: Moderate AACSB:

D Page Ref: 657 Difficulty: Easy AACSB:

54) Which of the following statements about the movie industry is not true? A) Over 100 million Americans were expected to watch movies online in 2014. B) Online movie distribution is not dominated by a single distributor. C) Sales of digital movies that can be downloaded increased by almost 50% in 2013. D) Internet and online distribution now make up the largest share of movie revenues.

D Page Ref: 680-681 Difficulty: Moderate AACSB:

D Page Ref: 706 Difficulty: Moderate AACSB:

39 Copyright © 2015 Pearson Education, Inc. 64) Facebook was the leader in U.S. ad spending revenues on social networks in 2014. What company earned the second most amount of ad spending revenue? A) MySpace B) LinkedIn C) Pinterest D) Twitter

D Page Ref: 713 Difficulty: Moderate AACSB:

51) Priceline is an example of a(n): A) English auction. B) Dutch auction. C) penny auction. D) Name Your Own Price auction.

D Page Ref: 724 Difficulty: Moderate AACSB:

54) The profit a seller makes at auction is a function of all of the following except: A) arrival rate. B) auction length. C) the number of units for auction. D) bid increments.

D Page Ref: 725-726 Difficulty: Moderate AACSB:

35) All of the following are solutions to the problem of high monitoring costs except: A) seller rating systems. B) watch lists. C) proxy bidding. D) fixed pricing.

D Page Ref: 728 Difficulty: Moderate AACSB:

62) The world's leading portal/search engine site, in terms of unique visitors, is: A) Yahoo. B) MSN/Bing. C) AOL. D) Google.

D Page Ref: 730 Difficulty: Moderate AACSB:

58) Which of the following is not an important trend in B2B e-commerce in 2014-2015? A) concern about supply chain risk B) concern about supply chain sustainability C) concern about the accountability of supply chains D) concern about increasing use of the mobile platform

D Page Ref: 748 Difficulty: Moderate AACSB:

17) Analysts predict that B2B e-commerce in the United States will grow by 2018 to approximately: A) $7.8 billion. B) $78 billion. C) $780 billion. D) $7.8 trillion.

D Page Ref: 749 Difficulty: Moderate AACSB:

20) In 2014, the total amount of B2B e-commerce in the United States was approximately: A) $5.7 billion. B) $57 billion. C) $570 billion. D) $5.7 trillion.

D Page Ref: 749 Difficulty: Moderate AACSB:

30) What is the first step in the procurement process? A) negotiate price B) qualify the seller and its products C) issue a purchase order D) search for suppliers

D Page Ref: 755 Difficulty: Moderate AACSB:

53) All of the following are examples of direct goods in the auto industry except: A) sheet steel. B) shatter-resistant glass. C) rubber molding. D) desktop computers.

D Page Ref: 758 Difficulty: Moderate AACSB:

3. Bundling is valuable for sellers when a) The willingness to pay for bundles is less dispersed than the willingness to pay for components b) It increases switching costs for existing buyers c) It increases selling costs d) All of the above e) Only a) and b) above

5. Lower distribution costs for digital products online can be used to strategic advantage and help promote digital products by a) Permitting low-cost free samples for experience goods b) Giving some content away and tracking its use to get customer information for marketing c) Trading content for customer information d) Giving away one part of a complementary pair (e.g., search service and content) e) All of the above

7. Information flows in e-commerce are different from traditional markets because a) The costs of transmitting information are lower b) Communications with customers can be more integrated with internal business processes c) Consumers can easily identify false statements on the Internet d) All of the above e) Only a) and b)

33) Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration? A) online Web catalog B) online order, in-store pickup C) online supply-push D) online promotions for offline purchases

C Page Ref: 573 Difficulty: Moderate AACSB:

7 Copyright © 2015 Pearson Education, Inc. 40) What is another name for pro forma earnings? A) net margin B) operating income C) earnings before income taxes, depreciation, and amortization (EBITDA) D) generally accepted accounting principles (GAAP) earnings

C Page Ref: 577 Difficulty: Difficult AACSB:

53) Which of the following is not an example of a transaction broker? A) a stockbroker B) a real estate agent C) an accountant D) an employment agency

C Page Ref: 593 Difficulty: Moderate AACSB:

62) Which of the following best explains why the service sector is a natural avenue for ecommerce? A) The service sector is less geographically reliant and more globally oriented. B) The service sector has historically been more technology-reliant. C) Much of the value in services is based on the collection, storage, and exchange of information. D) It is not; services are difficult to translate to e-commerce because they rely on face-to-face communication and barter.

C Page Ref: 596 Difficulty: Moderate AACSB:

11 Copyright © 2015 Pearson Education, Inc. 56) Which of the following statements about online banking is not true? A) Top mobile banking activities include checking balances and transferring money from one account to another. B) Online and mobile banking transactions provide significant costs savings for banks. C) All of the purely online banks (those that operate without a network of branches) have gone out of business. D) Over 50% of the adult U.S. population used online banking in 2014.

C Page Ref: 597 Difficulty: Difficult AACSB:

55) Which of the following is a sharing economy company focused on the rental of lodging? A) Uber B) Lyft C) Airbnb D) Task Rabbit

C Page Ref: 614-615 Difficulty: Easy AACSB:

33) Which of the following statements about YouTube is not true? A) There are now over 1 million YouTube channels worldwide. B) In 2013, YouTube announced paid-subscription channels. C) YouTube has not yet shown a profit. D) The three most popular YouTube videos in terms of total views are music videos.

C Page Ref: 630-632 Difficulty: Moderate AACSB:

38) All of the following typically favor the elimination of DRM except: A) hackers. B) technology companies. C) content owners. D) telecommunications pipeline companies.

C Page Ref: 641-642 Difficulty: Difficult AACSB:

47) In 2014, e-book sales constituted about ________% of all consumer book sales. A) 10 B) 25 C) 32 D) 50

C Page Ref: 667 Difficulty: Moderate AACSB:

49) Which of the following is true about book publishing revenues over the past five years? A) They have decreased by 25%. B) They have increased by 25%. C) They have remained stable. D) They have decreased by 10%.

C Page Ref: 667 Difficulty: Moderate AACSB:

45) In 2014, Amazon's e-book and media store contained around how many book titles? A) about 10,000 B) about 100,000 C) about 1 million D) about 10 million

C Page Ref: 669 Difficulty: Moderate AACSB:

51) Which of the following statements about the wholesale and agency models for selling books is not true? A) In the wholesale model, the retailer decides at what price to sell a book to the consumer. B) Amazon surprised traditional publishers by selling e-books for below their wholesale cost. C) Amazon supports the agency model. D) A result of the agency model was that Amazon's prices on e-books rose.

C Page Ref: 671 Difficulty: Difficult AACSB:

22 Copyright © 2015 Pearson Education, Inc. 48) Which of the following was sued by the Justice Department for violating antitrust laws in connection with e-books? A) Amazon B) Google C) Apple D) Barnes & Noble

C Page Ref: 671 Difficulty: Moderate AACSB:

50) In 2014, Amazon engaged in a trade dispute with which of the following over the pricing of e-books? A) Simon & Schuster B) Penguin Random House C) Hachette D) Harper Collins

C Page Ref: 672 Difficulty: Easy AACSB:

53) Which of the following is the largest online movie download distributor? A) Netflix B) Hulu C) iTunes D) Google Play

C Page Ref: 677 Difficulty: Moderate AACSB:

49) Which of the following companies was an early investor in Facebook? A) Google B) Apple C) Microsoft D) LinkedIn

C Page Ref: 703 Difficulty: Moderate AACSB:

C Page Ref: 706 Difficulty: Moderate AACSB:

25) Which of the following is a leading social network in Brazil? A) VK B) Tuenti C) Orkut D) Qzone

C Page Ref: 707 Difficulty: Moderate AACSB:

43) What percentage of Facebook's users are 35 and over? A) almost one-quarter B) almost one-third C) almost one-half D) almost two-thirds

C Page Ref: 707 Difficulty: Moderate AACSB:

27) Facebook purchased which of the following for $19 billion? A) Slingshot B) Snapchat C) WhatsApp D) Poke

C Page Ref: 711 Difficulty: Moderate AACSB:

30) In the United States, Facebook visitors spend about ________ hours a month on Facebook. A) 1.5 hours B) 3 hours C) 7 hours D) 15 hours

C Page Ref: 712 Difficulty: Moderate AACSB:

18) Which of the following is a community of members who self-identify with a demographic or geographic category? A) practice network B) sponsored community C) affinity community D) interest-based social network 27 Copyright © 2015 Pearson Education, Inc.

C Page Ref: 714 Difficulty: Moderate AACSB:

21) Facebook is an example of a(n): A) interest-based social network. B) affinity community/social network. C) general community/social network. D) practice network.

C Page Ref: 714 Difficulty: Moderate AACSB:

39) BlackPlanet is an example of a(n) ________ social network. A) practice-based B) interest-based C) affinity-based D) general

C Page Ref: 714 Difficulty: Moderate AACSB:

31) All of the following are benefits of auctions except: A) more efficient price discovery. B) lower transaction costs. C) decreased price transparency. D) increased market efficiency.

C Page Ref: 721-722 Difficulty: Moderate AACSB:

33) Which of the following is not a risk or cost of Internet auctions? A) delayed consumption costs B) equipment costs C) price transparency D) trust risks

C Page Ref: 722 Difficulty: Moderate AACSB:

53) Which of the following is not one of the top factors a business should consider when planning an Internet auction? A) type of product B) type of auction C) location of auction D) bid increments

C Page Ref: 725-726 Difficulty: Moderate AACSB:

37 Copyright © 2015 Pearson Education, Inc. 56) Which of the following involves a concern that one will never know how much the ultimate winner might have paid, or the true value to the final winner? A) herd behavior B) winner's regret C) seller's lament D) loser's lament

C Page Ref: 727 Difficulty: Moderate AACSB:

C Page Ref: 729 Difficulty: Moderate AACSB:

24) EDI systems: A) generally serve horizontal markets. B) are seller-side solutions. C) are based on a communications standard for sharing business documents. D) no longer play an important role in B2B commerce.

C Page Ref: 750-751 Difficulty: Moderate AACSB:

28) Which of the following is the fastest growing form of B2B e-commerce? A) e-distributors B) exchanges C) private industrial networks D) industry consortiums

C Page Ref: 753 Difficulty: Moderate AACSB:

33) The majority of inter-firm trade involves: A) spot purchasing of direct goods. B) contract purchasing of indirect goods. C) contract purchasing of direct goods. D) spot purchasing of indirect goods.

C Page Ref: 759 Difficulty: Moderate AACSB:

45) Which of the following primarily deal with direct goods? A) e-distributors and independent exchanges B) exchanges and e-procurement Net marketplaces C) exchanges and industry consortia D) e-procurement Net marketplaces and industry consortia

C Page Ref: 778 Difficulty: Moderate AACSB:

22) Which of the following is the fastest growing segment of media revenues? A) television B) home video C) Internet media D) newspapers

27) Which of the following accounts for the second largest amount of paid online content revenues in the United States in 2014? A) online video games B) Internet radio C) online music D) online TV and movies

C Page Ref: 639 Difficulty: Difficult AACSB:

30) Which of the following was the most troubled segment of the publishing industry in 2014? A) books B) magazines C) newspapers D) periodicals

C Page Ref: 647 Difficulty: Moderate AACSB:

37) Digital magazine ad revenues were expected to ________ in 2014. A) remain stable B) more than double C) grow over 20% D) continue to decrease

C Page Ref: 663 Difficulty: Difficult AACSB:

50) A(n) ________, in which the highest bidder wins, is the most common form of auction. A) Dutch Internet auction B) Japanese auction C) English auction D) reverse auction

C Page Ref: 723 Difficulty: Moderate AACSB:

34 Copyright © 2015 Pearson Education, Inc. 44) Which of the following types of auctions is perfect for sellers that have many identical items to sell? A) English auctions B) Name Your Own Price auctions C) Dutch Internet auctions D) group buying auctions

C Page Ref: 724 Difficulty: Moderate AACSB:

55) ________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids. A) Group buying B) Winner's regret C) Herd behavior D) Bid rigging

C Page Ref: 727 Difficulty: Moderate AACSB:

47) AOL is focusing its strategy on all of the following except: A) display advertising. B) online video. C) being an ISP. D) being a niche content provider.

C Page Ref: 733 Difficulty: Moderate AACSB:

29) All of the following are potential benefits of B2B e-commerce except: A) lower administrative costs. B) lower search costs. C) lower price transparency. D) lower transaction costs.

C Page Ref: 754 Difficulty: Moderate AACSB:

46) All of the following have led to the development of outsourcing of manufacturing around the world except: A) technology. B) globalization of trade. C) environmental concerns. D) high levels of wage disparity between the developed and undeveloped worlds.

C Page Ref: 756 Difficulty: Moderate AACSB:

34) Which of the following is a method of inventory cost management that seeks to eliminate excess inventory? A) lean production B) sustainable production C) just-in-time production D) supply chain simplification

C Page Ref: 762 Difficulty: Moderate AACSB:

52 Copyright © 2015 Pearson Education, Inc. 63) EDI document structures are defined by: A) a single international standards body. B) by individual suppliers and buyers. C) industry committees. D) each purchaser.

C Page Ref: 766 Difficulty: Moderate AACSB:

56) An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium

C Page Ref: 782-783 Difficulty: Moderate AACSB:

; 23) Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve: A) retailing goods. B) personalization. C) information brokering. D) providing hands-on services.

D Page Ref: 593 Difficulty: Moderate AACSB:

12 Copyright © 2015 Pearson Education, Inc. 60) All of the following statements about the online real estate services market are true except: A) Zillow and Trulia together account for over 60% of Web and mobile traffic to online real estate sites. B) real estate differs from other types of online financial services because it is impossible to complete a property transaction online. C) the primary service offered by real estate sites is a listing of houses available. D) the Internet and e-commerce have created significant disintermediation in the real estate marketplace.

D Page Ref: 602 Difficulty: Moderate AACSB:

51) Which of the following is not true about sharing economy firms? A) Their growth is supported by the use of online reputation systems based on peer review. B) Sharing economy firms that choose a marketplace that is too small to generate sufficient and steady demand are likely to fail. C) Sharing economy firms facilitate access to resources. D) Sharing economy firms are a totally new phenomenon without precedent in the history of ecommerce.

D Page Ref: 614-615 Difficulty: Moderate AACSB:

18 Copyright © 2015 Pearson Education, Inc. 32) Which of the following online newspaper sites or groups attracts the highest number of daily unique visitors? A) USA Today B) Washington Post C) Wall Street Journal D) The New York Times

D Page Ref: 652 Difficulty: Moderate AACSB:

D Page Ref: 653 Difficulty: Difficult AACSB:

55) Which of the following is not a leading factor in changing the television industry? A) increasing broadband penetration B) development of the mobile platform C) a willing industry with a library of high-quality content D) inability to attract customers to traditional products

D Page Ref: 677-679 Difficulty: Difficult AACSB:

17) Which of the following was a primary feature of early online communities? A) chat B) network discovery C) widgets D) message boards

D Page Ref: 705 Difficulty: Moderate AACSB:

2. E-commerce differs from traditional commerce in a) The way information is accessed by consumers b) Always charging less for goods and services c) The flexibility in information supplied by firms d) All of the above e) Only a) and c)

9. Compatibility and open standards a) reduce switching costs and help entrants versus incumbents b) have been important in the growth of the Internet and World Wide Web c) favor strong incumbents such as Microsoft d) all of the above e) only a) and b)

38) Which of the following is not categorized as an operating expense? A) the cost of products being sold B) marketing costs C) administrative overhead D) amortization of goodwill

A Page Ref: 576 Difficulty: Moderate AACSB:

39) Operating margin is defined as: A) operating income or loss divided by net sales revenues. B) operating income or loss divided by total operating expenses. C) net sales revenues divided by net income or loss. D) net assets divided by net liabilities.

A Page Ref: 576 Difficulty: Moderate AACSB:

54) All of the following services require extensive personalization except: A) financial services. B) legal services. C) medical services. D) accounting services.

A Page Ref: 596 Difficulty: Moderate AACSB:

57) In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized Web site. A) account aggregation B) a financial portal C) integrated financial services D) EBPP systems

A Page Ref: 599 Difficulty: Moderate AACSB:

59) All of the following statements about the online insurance industry are true except: A) the Internet has dramatically changed the insurance industry's value chain. B) Web sites of almost all the major firms provide the ability to obtain an online quote. C) Internet usage has led to a decline in term life insurance prices industry-wide. D) the industry has been very successful in attracting visitors searching for information.

A Page Ref: 600-601 Difficulty: Moderate AACSB:

29) Which of the following has introduced a tool known as Consumer Alerts to inform readers when a review is likely to be fraudulent? A) Yelp B) TripAdvisor C) Angie's List D) TripExpert

A Page Ref: 608 Difficulty: Moderate AACSB:

A Page Ref: 610 Difficulty: Easy AACSB:

65) Which of the following is not a major trend in the online recruitment services industry? A) disintermediation B) localization C) social networking D) consolidation

A Page Ref: 611-612 Difficulty: Moderate AACSB:

19) Which of the following three forms of media account for over 95% of the hours spent consuming media? A) television, radio, and the Internet B) television, magazines, and the Internet C) the Internet, radio, and newspapers D) television, the Internet, and newspapers

A Page Ref: 635 Difficulty: Difficult AACSB:

34) Which of the following is not one of the factors required to charge for online content? A) multiple delivery methods B) focused market C) specialized content D) high perceived net value

A Page Ref: 646 Difficulty: Moderate AACSB:

16) One of the first online virtual communities was: A) The Well. B) Myspace. C) AOL. D) Salon.com.

A Page Ref: 705 Difficulty: Moderate AACSB:

36 Copyright © 2015 Pearson Education, Inc. 52) Which of the following statements about Instagram is not true? A) Instagram is owned by Twitter. B) Instagram is a photo-sharing app. C) Facebook developed its Camera app to compete with Instagram D) Instagram had over 200 million active users in 2014.

A Page Ref: 708 Difficulty: Moderate AACSB:

29) All of the following statements are true except: A) in a B2C auction, consumers sell goods to other consumers. B) auctions constituted a significant part of B2B e-commerce in 2014. C) over a third of procurement officers use auctions to procure goods. D) Sam's Club is an example of an online B2C auction

A Page Ref: 720 Difficulty: Moderate AACSB:

63) MSN is an example of a: A) general purpose portal. B) vertical market portal based on affinity group. C) vertical market portal based on focused content. D) focused content search engine.

A Page Ref: 734 Difficulty: Moderate AACSB:

18) Which of the following is not a current major trend in B2B e-commerce? A) Large firms move toward consolidating regional B2B systems into global systems. B) The Internet of Things begins to impact how supply chains operate. C) Firms place a growing emphasis on rapid-response and optimal supply chain rather than lowest-cost supply chains. 40 Copyright © 2015 Pearson Education, Inc. D) B2B systems move towards cloud computing providers and away from individual corporate data centers.

A Page Ref: 748 Difficulty: Moderate AACSB:

25) Which of the following statements about B2B e-commerce Web sites is not true? A) They are a predecessor of automated order entry systems. B) They tend to serve horizontal markets. C) They are seller-side solutions. D) They are usually considered a type of Net marketplace.

A Page Ref: 751-752 Difficulty: Moderate AACSB:

A Page Ref: 755 Difficulty: Moderate AACSB:

45 Copyright © 2015 Pearson Education, Inc. 35) Which of the following statements about cloud-based B2B systems is not true? A) Much of the expense of the system is shifted from the B2B network provider to the firm. B) B2B network providers charge customers on a demand basis. C) Network effects apply, enabling the spreading of costs. D) Cloud-based B2B data networks can be implemented in short periods of time.

A Page Ref: 769-770 Difficulty: Moderate AACSB:

48) An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers. A) e-distributor B) e-procurement company C) exchange D) industry consortium

A Page Ref: 779 Difficulty: Moderate AACSB:

16) AmazonSupply is an example of an: A) e-distributor. B) e-procurement Net marketplace. C) exchange. D) industry consortium.

A Page Ref: 780 Difficulty: Moderate AACSB:

50 Copyright © 2015 Pearson Education, Inc. 55) An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment. A) exchange B) e-distributor C) e-procurement company D) industry consortium

A Page Ref: 782 Difficulty: Moderate AACSB:

13 Copyright © 2015 Pearson Education, Inc. 64) Which of the following statements is not true? A) Price competition among online travel services is difficult as comparison shopping for better prices is easy. B) Online travel services is one of the few sectors in which extensive disintermediation has occurred. C) The ability of travel products and services to be commoditized is a significant factor in the explosive growth of the online travel services industry. D) The online travel services industry has gone through a period of consolidation.

B Page Ref: 603-606 Difficulty: Difficult AACSB:

17) Which of the following streaming movie and TV services is a joint venture between traditional entertainment producers? A) Netflix B) Hulu C) Zynga D) VUDU

B Page Ref: 630 Difficulty: Easy AACSB:

31) Which of the following statements about the newspaper industry is not true? A) Newspaper management was sluggish to respond to the opportunities on the Internet for news. B) Online readership of newspapers is declining. C) The emergence of search engines such as Google has had a major impact on the newspaper industry. D) Newspaper industry revenues have declined by almost 50% from 2000 to 2013.

B Page Ref: 647 Difficulty: Moderate AACSB:

43) Which of the following statements about the online newspaper audience is not true? A) Online newspaper readership is growing at more than 10% a year. B) The majority of newspaper readers read the news using a combination of the Web, print and mobile. C) About 75% of Internet users read newspaper content online. D) Online newspapers reach over 75% of individuals in households earning more than $100,000 a year.

B Page Ref: 652 Difficulty: Difficult AACSB:

B Page Ref: 663 Difficulty: Moderate AACSB:

B Page Ref: 664 Difficulty: Moderate AACSB:

46) Which of the following is a social network designed to appeal to disgruntled Facebook users that has promised never to sell its users' information to third parties? A) Myspace B) Ello C) Tagged D) Polyvore

B Page Ref: 720 Difficulty: Moderate AACSB:

35 Copyright © 2015 Pearson Education, Inc. 48) All of the following types of auctions involve single units except: A) English auction. B) Dutch Internet. C) Name Your Own Price auction. D) penny auction.

B Page Ref: 723-724 Difficulty: Moderate AACSB:

32 Copyright © 2015 Pearson Education, Inc. 36) Which of the following types of auctions "shields the brand" of the seller? A) English auction B) Name Your Own Price auction C) Dutch auction D) penny auction

B Page Ref: 724 Difficulty: Moderate AACSB:

42) When sellers agree informally or formally to set floor prices below which they will not sell on auction items, this is known as: A) discriminatory pricing. B) price matching. C) bid rigging. D) the uniform pricing rule.

B Page Ref: 728 Difficulty: Moderate AACSB:

61) Which of the following statements illustrates the network effects that portals are subject to? A) Specialized vertical market portals attract only 2-10% of the audience, while a few large megaportals garner most of the market. B) The value of the portal to advertisers and consumers increases geometrically as reach increases. C) The greater the amount of content provided by a portal, the greater its value to the community. D) The greater number of portals available, the greater the potential audience for each.

B Page Ref: 730 Difficulty: Moderate AACSB:

60) Which of the following statements is not true? A) The Volkswagen Group manages almost all of its procurement needs via the Internet. B) VWGroupSupply.com is an industry consortium. C) VWGroupSupply can be accessed by suppliers via standard Web browser software. D) The Volkswagen Group developed VWGroupSupply using technology from a number of vendors.

B Page Ref: 745-746 Difficulty: Moderate AACSB:

21) Which of the following was the first step in the development of B2B commerce? A) Electronic Data Interchange (EDI) B) automated order entry systems C) digital storefronts D) private industrial networks

B Page Ref: 750 Difficulty: Moderate AACSB:

42 Copyright © 2015 Pearson Education, Inc. 23) Which of the following statements about automated order entry systems is not true? A) They are typically owned by the suppliers. B) They no longer play an important role in B2B commerce. C) They show goods only from a single seller. D) They reduce the costs of inventory replenishment.

B Page Ref: 750 Difficulty: Moderate AACSB:

46 Copyright © 2015 Pearson Education, Inc. 39) All of the following are potential benefits of B2B e-commerce except: A) increased production flexibility. B) increased product cycle time. C) increased opportunities to collaborate with suppliers and distributors. D) increased visibility and real-time information sharing among all participants in the supply chain network.

B Page Ref: 754 Difficulty: Moderate AACSB:

54) An example of an indirect good in the fast-food industry is: A) mustard. B) paper napkins. C) beef. D) sugar.

B Page Ref: 758 Difficulty: Easy AACSB:

65) Which of the following is not a typical barrier to the implementation of a private industrial network? A) It requires participating firms to share sensitive data. B) It requires the large network owners to give up some of its independence. C) It requires a significant investment of time and money. D) It requires a change of mindset and behavior of employees.

B Page Ref: 792 Difficulty: Moderate AACSB:

38) EDI began as a(n) ________ system. A) document automation B) document elimination C) continuous replenishment D) MRP

A Page Ref: 766 Difficulty: Moderate AACSB:

57) The liquidity of a market is measured by all of the following except: A) price transparency B) number of buyers and sellers in market C) volume of transactions D) size of transactions

A Page Ref: 783 Difficulty: Moderate AACSB:

59) Threatening negative feedback in return for a benefit is an example of: A) feedback extortion. B) offensive shill feedback. C) defensive shill feedback. D) sending spam.

A Page Ref: 728 Difficulty: Moderate AACSB:

37) Gross margin is defined as gross profit: A) minus total operating expenses. B) divided by net sales revenues. C) divided by cost of sales. D) minus net income.

B Page Ref: 575 Difficulty: Moderate AACSB:

; 20) Which of the following is a subscription-based retailer using predictive marketing and Big Data? A) Macy's B) Birchbox C) Dell D) Lands' End

B Page Ref: 595 Difficulty: Easy AACSB:

38) When did the first online communities form? A) the 1970s B) the 1980s C) the 1990s D) the 2000s

B Page Ref: 705 Difficulty: Moderate AACSB:

35) All of the following are strategic factors that pertain specifically to a firm and its related businesses except: A) core competencies. B) synergies. C) technology. D) power of customers.

D Page Ref: 575 Difficulty: Moderate AACSB:

46) All of the following are challenges faced by bricks-and-clicks firms except: A) coordinating prices across channels. B) handling returns of Web purchases at retail outlets. C) building a credible Web site. D) building a brand name.

D Page Ref: 587 Difficulty: Moderate AACSB:

D Page Ref: 593 Difficulty: Moderate AACSB:

17) In the United States, the service sector accounts for approximately ________ % of the United States GDP. A) 10 B) 30 C) 50 D) 80

D Page Ref: 593 Difficulty: Moderate AACSB:

63) What is the largest sector of the online travel services market in terms of revenue? A) hotel reservations B) car reservations C) cruise/tour reservations D) airline reservations

D Page Ref: 604 Difficulty: Moderate AACSB:

20) In comparison to hours spent at work, the average American adult spends ________ consuming various media. A) a quarter as much time B) a third as much time C) an equivalent amount of time D) twice as much time

D Page Ref: 635 Difficulty: Moderate AACSB:

41) Which of the following has the largest social network audience? A) North America B) Latin America C) Europe D) Asia-Pacific

D Page Ref: 707 Difficulty: Moderate AACSB:

57) Yahoo owns all of the following except: A) Tumblr. B) Flickr. C) Aviate. D) Instagram.

D Page Ref: 735 Difficulty: Moderate AACSB:

65) Which of the following is not one of the typical portal revenue sources? A) commissions on sales B) subscription fees C) tenancy deals D) referral fees

D Page Ref: 735 Difficulty: Moderate AACSB:

42) Which of the following is not a characteristic of the use of social networks in B2B ecommerce? A) It is typically unstructured. B) It helps develop a more personal relationship between participants in the supply chain. C) It enables participants to make decisions based on current conditions. D) They are always private.

D Page Ref: 776-777 Difficulty: Difficult AACSB:

48 Copyright © 2015 Pearson Education, Inc. 47) Which of the following primarily involve long-term sourcing? A) e-distributors and exchanges B) e-distributors and industry consortia C) e-procurement Net marketplaces and exchanges D) e-procurement Net marketplaces and industry consortia

D Page Ref: 778 Difficulty: Moderate AACSB:

42) Current liabilities are debts of the firm that will be due within: A) three months. B) six months. C) one year. D) two years.

C Page Ref: 577 Difficulty: Moderate AACSB:

41) Which of the following statements about collaborative commerce systems is not true? A) They involve a move from a transaction focus to a relationship focus. B) They may include both customers and suppliers. C) They are open, competitive marketplaces. D) They typically include a central data repository.

C Page Ref: 774-775 Difficulty: Moderate AACSB:

16) Which of the following is not a current trend in online content? A) Sales of music in digital form produce more revenue than sales of physical units. B) Readership of newspapers in print form continues to exceed online readership. C) E-book sales growth slows. D) Console game sales stagnate in comparison to online gaming.

B Page Ref: 634 Difficulty: Moderate AACSB:

21) Which of the following generates the largest share of media revenues? A) video games B) television C) newspapers D) radio

B Page Ref: 637 Difficulty: Moderate AACSB:

42) A metered subscription model is most similar to which of the following revenue models? A) transaction fee B) freemium C) advertising D) affiliate

B Page Ref: 655 Difficulty: Moderate AACSB:

58) Which of the following statements about the music industry is not true? A) Music industry revenues have decreased by 50% since 2000. B) Digital revenues accounted for less than half of all U.S. music revenues in 2013. C) In 2013, sales of digital downloads of music declined. D) Streaming music is the fastest growing segment.

B Page Ref: 683-690 Difficulty: Moderate AACSB:

65) Which of the following is the fastest growing online gaming audience? A) casual gamers B) mobile gamers C) social gamers D) console gamers

B Page Ref: 691 Difficulty: Moderate AACSB:

45) Which of the following early leaders in social networking has been reinvented as a musicoriented social network? A) Vevo B) Myspace C) Polyvore D) Tumblr

B Page Ref: 709 Difficulty: Moderate AACSB:

43 Copyright © 2015 Pearson Education, Inc. 27) All of the following are weaknesses of EDI except: A) EDI is not well suited for electronic marketplaces. B) EDI lacks universal standards. C) EDI does not provide a real-time communication environment. D) EDI does not scale easily.

B Page Ref: 768 Difficulty: Moderate AACSB:

22) Which of the following is not one of the seven major segments of the retail industry? A) electronics and computers B) specialty stores C) gasoline and fuel D) food and beverage

A Page Ref: 568 Difficulty: Easy AACSB:

26) All of the following were parts of the vision during the early days of e-commerce except the belief that: A) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business. B) Web consumers were rational and cost-driven. C) entry costs to the online retail market would be much less than those needed to establish a physical storefront. D) the cost of acquiring customers would be much lower.

A Page Ref: 569-570 Difficulty: Moderate AACSB:

61) Craigslist is a player in which of the following online services markets? A) real estate services and career services B) insurance services and brokerage services C) travel services D) online accounting services

A Page Ref: 602 Difficulty: Easy AACSB:

16) Which of the following is not a major trend in online retail for 2014-2015? A) About 90% of Internet users in the United States are now online shoppers. B) Lunchtime purchases are the fastest growing time segment for online retail purchases. C) Online retailers increase the use of interactive marketing tools such as blogs and usergenerated content. D) Virtual merchants using a subscription-based revenue model emerge.

B Page Ref: 567 Difficulty: Moderate AACSB:

25) All of the following were factors that precipitated the growth of MOTO except: A) the national toll-free call system. B) the growth of the cellular phone industry. C) falling long distance telecommunications prices. D) the growth of the credit card industry.

B Page Ref: 568 Difficulty: Moderate AACSB:

24) All of the following statements about the MOTO sector are true except: A) compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms. B) the MOTO sector is also referred to as the specialty store sector. C) MOTO was the last technological revolution that preceded e-commerce. D) distribution of catalogs is one of MOTO retailers' biggest expenses.

B Page Ref: 568-569 Difficulty: Moderate AACSB:

B Page Ref: 575 Difficulty: Difficult AACSB:

8 Copyright © 2015 Pearson Education, Inc. 44) Virtual merchants face potentially large costs for all of the following except: A) building and maintaining a Web site. B) building and maintaining physical stores. C) building an order fulfillment infrastructure. D) developing a brand name.

B Page Ref: 577-578 Difficulty: Easy AACSB:

18) Eight of the top ten fastest-growing e-commerce merchants from 2003 to 2013 were: A) virtual merchants. B) bricks-and-clicks companies. C) catalog merchants. D) manufacturer-direct firms.

B Page Ref: 587 Difficulty: Moderate AACSB:

19) Omni-channel merchants are also referred to as: A) virtual merchants. B) bricks-and-clicks companies. C) catalog merchants. D) manufacturer-direct firms.

B Page Ref: 587 Difficulty: Moderate AACSB:

50) All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: A) moving to a demand-pull model. B) high cost structures. C) developing a fast-response online order and fulfillment system. D) channel conflict.

B Page Ref: 589-590 Difficulty: Moderate AACSB:

5 Copyright © 2015 Pearson Education, Inc. 32) Which of the following is not one of the central challenges facing the online retail industry? A) lack of physical store presence B) consumer concerns about the privacy of personal information C) inconvenience in returning goods D) delivery delays

A Page Ref: 572 Difficulty: Difficult AACSB:

34) Which of the following is not a key industry strategic factor? A) synergies B) barriers to entry C) industry value chain D) existence of substitute products

A Page Ref: 574 Difficulty: Moderate AACSB:

41) Which of the following would not be considered a current asset? A) long-term investments B) cash C) accounts receivable D) marketable securities

A Page Ref: 577 Difficulty: Moderate AACSB:

43) For a quick check of a firm's short-term financial health, examine its: A) working capital. B) gross margin. C) long-term debt. D) cost of sales.

A Page Ref: 577 Difficulty: Moderate AACSB:

45) All of the following statements about Amazon are true except: A) Amazon did not show a profit in 2013. B) Amazon is at the forefront of the "infrastructure as a service" market. C) eBay can be considered a competitor of Amazon's. D) Amazon continues to generate revenue primarily by selling products.

A Page Ref: 578-587 Difficulty: Difficult AACSB:

30) All of the following are examples of Amazon Web Services except: A) Amazon Prime. B) Amazon S3. C) Amazon EC2. D) Amazon Glacier.

A Page Ref: 581 Difficulty: Moderate AACSB:

49) The term supply-push refers to: A) making products prior to orders being received based on estimated demand. B) waiting for orders to be received before building a product. C) channel conflict. D) multi-channel manufacturers who sell directly online to consumers.

A Page Ref: 590 Difficulty: Moderate AACSB:

58) The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line? A) term life insurance B) automobile insurance C) health insurance D) property and casualty insurance

A Page Ref: 600-601 Difficulty: Moderate AACSB:

23) Which of the following was the top online video site in 2014 in terms of unique viewers? A) Google Sites B) Facebook C) AOL D) Yahoo Sites

A Page Ref: 640 Difficulty: Easy AACSB:

25) All of the following are aspects of content convergence except: A) language. B) design. C) production. D) distribution.

A Page Ref: 643-644 Difficulty: Easy AACSB:

29) Which of the following happened during the period of time during which newspapers used a print-centric business model? A) Google launched its search engine. B) Apple introduced the iPhone. C) Facebook opened to the public. D) The adoption of smartphone and tablets has grown rapidly.

A Page Ref: 649-651 Difficulty: Moderate AACSB:

A Page Ref: 668 Difficulty: Easy AACSB:

24 Copyright © 2015 Pearson Education, Inc. 56) Which of the following statements about the television and premium video industry is not true? A) Apple's iTunes store is the leading distributor of streaming video. B) The television industry is the major source of premium video on the Internet. C) Americans spend more time watching television on a computer or mobile device than they do on a traditional television set. D) Over-the-top entertainment services are a threat to cable television distributors.

A Page Ref: 677-678 Difficulty: Moderate AACSB:

64) Which of the following statements about gaming is not true? A) The sale of video game hardware and boxed software no longer generates a majority of video game industry's revenue. B) Words with Friends is an example of a social game. C) In 2013, around 50% of smartphone owners played games on their phones. D) About 50% of all Internet users are online gamers.

A Page Ref: 690-692 Difficulty: Moderate AACSB:

20) A Web site designed to give parents of home-schooled children a common discussion area would be classified as a(n): A) interest-based social network. B) affinity community. C) practice network. D) sponsored community.

A Page Ref: 714 Difficulty: Moderate AACSB:

22) Which social network functionality allows users to easily post messages to the entire community? A) message board B) chat C) instant messaging D) e-mail

A Page Ref: 719 Difficulty: Moderate AACSB:

34) The fact that participating in an Internet auction means that you will need to purchase a computer, learn to use it, and pay for Internet access, is an example of ________ costs. A) equipment B) fulfillment C) delayed consumption D) monitoring

A Page Ref: 722 Difficulty: Moderate AACSB:

22) Which of the following terms refers to the links that connect business firms with one another to coordinate production? A) supply chain B) seller-side solutions C) multi-tier exchange D) liquidity

A Page Ref: 750 Difficulty: Moderate AACSB:

49) An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium

A Page Ref: 779-780 Difficulty: Moderate AACSB:

13. Which of the following statements is least accurate? a) Online exchanges and similar intermediaries provide matching services b) Matching can involve buyers and sellers, or other forms of interaction c) Online matching does not work because the information is unreliable d) Online matching can involve sophisticated processes and institutions e) Online matching makes some markets for physical goods more like financial asset markets in speed and efficiency

27) Which of the following launched trials of Buy buttons in 2014? A) Facebook and Pinterest B) Twitter and Pinterest C) Twitter and Facebook D) Pinterest and Tumblr

C Page Ref: 567 Difficulty: Easy AACSB:

21) The MOTO sector of the retail industry is most similar to the ________ sector. A) specialty stores B) general merchandise C) online retail sales D) consumer durables

C Page Ref: 568 Difficulty: Moderate AACSB:

C Page Ref: 570 Difficulty: Moderate AACSB:

64) All of the following are forms of collaboration among businesses except: A) RFQs. B) CPFR. C) demand chain visibility. D) marketing coordination and product design.

A Page Ref: 788, 791--792 Difficulty: Moderate AACSB:

41) Which of the following routes to a newspaper Web site generates the most digital ad revenue for the newspaper? A) via a search engine B) via a social media site such as Facebook C) directly to a newspaper's home page D) via an online video

C Page Ref: 654 Difficulty: Moderate AACSB:

1. Metcalfe's Law says that a) the speed of microprocessors doubles every 18 months b) the total value of a network is proportional to the square of the number of users c) the marginal value of a network is proportional to the number of users d) both b) and c) e) none of the above

11. Which of the following is not a potential benefit of e-commerce? a) Lower transaction costs b) Faster response times c) Greater interactivity d) Guaranteed higher profit margins e) Better matching of buyers and sellers

12. Options for copyright strategy in e-commerce include a) Technologies to prevent copying b) Lawsuits against possible copyright violators c) Free distribution of limited copyrighted content for promotional purposes d) All of the above e) Only b) and c)

15. Free online content may be motivated by a) A desire to get consumers' attention b) Non commercial shared interests or self-promotion c) The benefits to firms of allowing consumers to sample offerings d) All of the above e) Only a) and c)

4. A strategy of price discrimination can involve a) Bundling b) Quantity discounts c) Versioning d) Any of the above e) Just b) and c)

6. Options for copyright strategy in e-commerce include a) Free distribution of limited copyrighted content for promotional purposes b) Lawsuits against possible copyright violators c) Technologies to prevent copying d) All of the above e) Only b) and c)

8. Network effects a) refer to a situation where the value of the network to any individual member depends on the total number of members of the network b) can raise individual switching costs c) are potentially important in e-commerce d) all of the above e) only a) and c)

31) All of the following are advantages of online retail except: A) lower supply chain costs. B) lower cost of distribution. C) ability to change prices. D) faster delivery of goods.

D Page Ref: 572 Difficulty: Moderate AACSB:

37) Cisco estimates that by 2016, mobile traffic will represent ________% of all business Internet traffic. A) less than 5 B) around 10 C) around 15 D) over 25

D Page Ref: 768-769 Difficulty: Moderate AACSB:

40) A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems. A) EDI B) ERP C) CPFR D) SCM

D Page Ref: 772 Difficulty: Moderate AACSB:

51 Copyright © 2015 Pearson Education, Inc. 59) An ________ serves businesses that primarily buy direct goods on a contract purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium

D Page Ref: 784-785 Difficulty: Moderate AACSB:

41 Copyright © 2015 Pearson Education, Inc. 19) Walmart's global supply chain has been criticized for all of the following except: A) exploiting labor in underdeveloped countries. B) bribing officials. C) wasting energy. D) failing to be efficient.

D Page Ref: 789-790 Difficulty: Moderate AACSB:

10. Which of these reasons may be a less important basis for lock-in with e-commerce? a) Product-specific training b) Information and databases c) Loyalty programs d) Specialized suppliers e) Search costs

14. Price dispersion for identical products, even when differences in delivery terms or other observable service features are allowed for, can persist on the Internet because a) Retailers can differ in terms of the degree of trust in them that buyers have b) Retailers can collude more easily when selling online c) Brand loyalty and familiarity create switching costs for buyers d) All of the above e) Only a) and c)

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