MIS Chapter 7 E-Business and E-Commerce

20) Each buyer needs only one e-wallet for all merchants.

Answer: False

62) _____ are a payment mechanism that are similar to regular bank checks but are transmitted electronically, with a signature in digital form. a) Electronic checks b) Electronic credit cards c) Electronic cash transactions d) Electronic wallets e) Electronic debit cards

a) Electronic checks

60) _____ connect buyers and sellers across many industries and are used mainly for indirect materials. a) Horizontal exchanges b) Vertical exchanges c) Buy-side marketplaces d) Functional exchanges e) Sell-side marketplaces

a) Horizontal exchanges

29) In ________ e-commerce, an organization provides information and services to its workers. a) business-to-employee b) consumer-to-consumer c) consumer-to-business d) business-to-consumer e) government-to-business

a) business-to-employee

34) eBay uses a _____ auction. a) forward b) static c) reverse d) physical e) simple

a) forward

68) _____ are software mechanisms that provide security measures and convenience for electronic commerce purchasing. a) Electronic checks b) Digital wallets c) Purchasing cards d) Smart cards e) Person-to-person payments

b) Digital wallets

47) Which of the following is a problem that e-commerce can cause for the airline industry? a) Too many fares b) Mistakes in fares c) Too few fares d) No fares offered on certain routes e) Too many fares offered on certain routes

b) Mistakes in fares

65) ______ are a form of e-cash that enable you to store a fixed amount of prepaid money and then spend it as necessary. a) Electronic checks b) Stored-value money cards c) Purchasing cards d) Smart cards e) Person-to-person payments

b) Stored-value money cards

44) Which of the following is not an advantage of e-tailing? a) You can buy from home, 24 hours per day. b) You have only a few products to choose from. c) You can obtain detailed information on products. d) You can compare competitors' products and prices. e) All of these

b) You have only a few products to choose from.

50) Difficulties in order fulfillment are most closely associated with which type of electronic commerce? a) business-to-business b) business-to-consumer c) government-to-citizen d) business-to-employee e) mobile commerce

b) business-to-consumer

32) Which of the following statements regarding the relationship between electronic commerce and search is not correct? a) Purchases often follow successful online searches. b) Shopping carts are often abandoned after unsuccessful online searches. c) Retailers will provide fewer product details to avoid information overload for customers. d) Customers will be able to find the closest store offering the product that they want. e) Customers will have more relevant product information in the near future.

c) Retailers will provide fewer product details to avoid information overload for customers.

35) _____ auctions employ a request for quotation. a) Forward b) Static c) Reverse d) Physical e) Simple

c) Reverse

36) _____ auctions are the most common auction model for large purchases. a) Forward b) Static c) Reverse d) Physical e) Simple

c) Reverse

71) The device that Treat America installed on top of each of their machines communicates the following pieces of data except: a) the amount of money in the machine at any given minute. b) the amount of product inventory remaining. c) whether the machine had been moved. d) the number of customers. e) whether the door had been opened after business hours.

d) the number of customers.

46) Cyberbanking offers all of the following advantages except: a) It is convenient for customers. b) It saves time for customers. c) It includes inexpensive transactions for the bank. d) It can help recruit remote customers. e) It is more expensive for the customer.

e) It is more expensive for the customer.

90) You have been running a landscaping business called Trim Grass for about two years. You have developed a special blend of grass seed for your area that you use when you reseed your clients' lawns. You are receiving e-mails via your Web site from people who would like to purchase some. You decide to start selling seed online, and you hire someone to rebuild your Web site. Which of the following statements is not true? a) Trim Grass is now multichanneling. b) Trim Grass needs to think about how to ship the seed. c) Trim Grass will have to collect sales tax from all sales. d) Trim Grass will have more expenses. e) Trim Grass will need to consider different advertising methods.

c) Trim Grass will have to collect sales tax from all sales.

42) The advantages of electronic commerce for consumers include all of the following except: a) You can buy from home 24 hours per day, 7 days per week. b) You have a wider variety of products to choose from. c) You typically cannot access additional information, so you do not have information overload. d) You can easily compare prices and features. e) You can find unique items.

c) You typically cannot access additional information, so you do not have information overload.

28) In _______ e-commerce, the sellers and buyers are organizations. a) government-to-citizen b) consumer-to-consumer c) business-to-business d) business-to-consumer e) consumer-to-business

c) business-to-business

39) Which type of electronic commerce is the largest by volume? a) business-to-employee b) consumer-to-consumer c) business-to-business d) business-to-consumer e) none of these

c) business-to-business

9) Virtual banks are those banks that are dedicated only to Internet transactions.

Answer: True

1) In traditional commerce, one or more of the following can be digital: the product or service, the process, and the delivery agent.

Answer: False

11) Internet advertising is impersonal, one-way mass communication.

Answer: False

13) Hacking is the indiscriminate distribution of electronic ads without permission of the receiver.

Answer: False

14) Business-to-consumer applications comprise the majority of electronic commerce volume.

Answer: False

15) The key mechanisms in the sell-side marketplace are customized electronic catalogs and reverse auctions.

Answer: False

16) The buy-side marketplace is similar to the business-to-consumer model.

Answer: False

21) E-commerce affects only businesses that sell products online.

Answer: False

3) eBay is a good example of business-to-consumer electronic commerce.

Answer: False

5) Even though B2C EC is much larger by volume, B2B is more complex.

Answer: False

7) You can make a purchase in a referral mall.

Answer: False

10) Channel conflict occurs when click-and-mortar companies have problems with their regular distributors when they sell directly to customers online.

Answer: True

12) Banners are the most common form of advertisement on the Internet.

Answer: True

17) Horizontal exchanges connect buyers and sellers across many industries.

Answer: True

18) In most cases, traditional payment systems are not effective for electronic commerce.

Answer: True

19) Smart cards can be used as credit cards, debit cards, and/or loyalty cards.

Answer: True

2) Visiting the Web site of a car manufacturer (e.g., www.gm.com), entering the specifications for the car you want, and then picking up your car at your local dealership is an example of partial electronic commerce.

Answer: True

4) Forward auctions are auctions that sellers use as a channel to many potential buyers.

Answer: True

6) An electronic storefront is a Web site on the Internet that represents a single store.

Answer: True

8) Selling products such as books and computers on the Internet may reduce vendors' selling costs by 20 to 40 percent, with further reductions being difficult because the products must be delivered physically.

Answer: True

57) In the _____ marketplace model, EC technology is used to streamline the purchasing process in order to reduce the cost of items purchased, the administrative cost of procurement, and the purchasing cycle time. a) buy-side b) sell-side c) auctions d) group purchasing e) electronic exchange

a) buy-side

30) Direct payment of Social Security benefits is an example of ______ e-commerce. a) government-to-citizen b) consumer-to-consumer c) consumer-to-business d) business-to-consumer e) business-to-business

a) government-to-citizen

26) _____, which is a broader concept than _____, is the buying and selling of goods and services, as well as servicing customers, collaborating with business partners, and performing transactions within an organization. a) Business-to-business electronic commerce, business-to-customer electronic commerce b) Electronic commerce, electronic business c) Business-to-customer electronic commerce, business-to-business electronic commerce d) Business-to-business electronic commerce, intrabusiness electronic commerce e) Electronic business, electronic commerce

b) Electronic commerce, electronic business

63) _____ use credit card numbers, transmitted electronically over the Internet, to pay for goods and services. They are either unencrypted or encrypted, with coded data readable by an intermediary between the buyer's and seller's banks. a) Electronic checks b) Electronic credit cards c) Electronic cash transactions d) Electronic wallets e) Electronic debit cards

b) Electronic credit cards

89) You decide to start a landscaping business called Trim Grass. You expect to use the Web to help clients find you and communicate with you. You will mow lands, clean flower beds, and pick up leaves in the fall. You will send your clients monthly bills. Which of the following is true? a) Trim Grass is using an e-commerce model. b) Trim Grass is using an e-business model. c) Trim Grass is using a forward auction. d) Trim Grass is an electronic marketplace. e) Trim Grass needs to worry about channel conflict.

b) Trim Grass is using an e-business model.

37) In which of the following business models do businesses request quotes from suppliers and use B2B with a reverse auction mechanism? a) find-the-best-price b) electronic tendering system c) name-your-own-price d) online direct marketing e) affiliate marketing

b) electronic tendering system

55) In the _____ marketplace model, organizations attempt to sell their products or services to other organizations electronically. a) buy-side b) sell-side c) group purchasing d) desktop purchasing e) electronic exchange

b) sell-side

56) The key mechanisms of the _____ marketplace model are forward auctions and electronic catalogs that can be customized for each large buyer. a) buy-side b) sell-side c) group purchasing d) desktop purchasing e) electronic exchange

b) sell-side

59) In _____, direct and indirect materials in one industry are purchased on an as-needed basis. a) horizontal exchanges b) vertical exchanges c) buy-side marketplaces d) functional exchanges e) sell-side marketplaces

b) vertical exchanges

25) Which of the following is not an effect that E-commerce has had on organizations? a) E-commerce enables smaller businesses to operate in areas dominated by larger companies. b) E-commerce increases the number of potential customers to whom the company can market its products. c) E-commerce is a costly medium for increasing market share. d) E-commerce removes many barriers for start-up businesses. e) E-commerce makes it easy to reach customers around the world.

c) E-commerce is a costly medium for increasing market share.

51) Internet advertising improves on traditional advertising in all of the following ways except: a) Internet ads can be updated at any time at minimal cost. b) Internet ads can reach large numbers of potential buyers all over the world. c) Internet ads are always more effective than other types of advertising. d) Internet ads can make effective use of multimedia. e) Internet ads are current.

c) Internet ads are always more effective than other types of advertising.

53) _____ offer(s) consumers incentives to accept advertising and e-mail voluntarily. a) Viral marketing b) Personalized marketing c) Permission marketing d) Paper catalogs e) Direct mail

c) Permission marketing

64) _____ are typically used for unplanned B2B purchases for amounts under $2000. a) Electronic checks b) Stored-value money cards c) Purchasing cards d) Smart cards e) Person-to-person payments

c) Purchasing cards

88) You decide to start a landscaping business called Trim Grass. Some of your residential clients would like to pay their bills online. Which of the following methods will not be appropriate for this type of payment? a) Electronic checks b) Electronic credit cards c) Purchasing cards d) Person-to-person payments e) Stored-value money cards

c) Purchasing cards

87) You decide to start a landscaping business called Trim Grass. You created a Web site, but it doesn't seem to be attracting any clients. So, you decide to explore advertising on the Web. Which of the following advertising methods probably would not be beneficial? a) Banner ads b) Pop-up or pop-under ads c) Spamming d) Permission marketing e) Viral marketing

c) Spamming

69) The practice of using similar but not identical domain names is called _____. a) domain spoofing b) domain masquerading c) domain tasting d) cybersquatting e) domain fraud

c) domain tasting

43) Which of the following is not an electronic commerce application? a) home banking b) buying stocks c) evaluating an employee d) conducting an auction e) buying real estate

c) evaluating an employee

33) In _____ auctions, there is one buyer who wants to buy a product. Suppliers submit bids, and the lowest bid wins. a) forward b) static c) reverse d) physical e) simple

c) reverse

41) _______ e-commerce is also known as e-tailing. a) Business-to-business b) Collaborative commerce c) Intrabusiness d) Business-to-consumer e) Consumer-to-business

d) Business-to-consumer

70) _____ refers to the practice of registering or using domain names for the purpose of profiting from the goodwill or trademark belonging to someone else. a) Domain spoofing b) Domain masquerading c) Domain tasting d) Cybersquatting e) Domain fraud

d) Cybersquatting

45) ________ is the process whereby a fully automated electronic commerce transaction eliminates middlemen. a) Disintegration b) Supply chain integration c) Direct sales d) Disintermediation e) Value-added services

d) Disintermediation

61) All of the following are limitations of traditional payment methods in electronic commerce except: a) Cash cannot be used because there is no face-to-face contact. b) Paying for goods and services via the mail takes more time. c) Not all organizations accept credit cards. d) It is more secure for the buyer to use the telephone than to complete a secure transaction on a computer. e) None of these

d) It is more secure for the buyer to use the telephone than to complete a secure transaction on a computer.

66) _____ contain a chip that can store information and be used for several purposes. a) Electronic checks b) Stored-value money cards c) Purchasing cards d) Smart cards e) Person-to-person payments

d) Smart cards

72) Companies use Web sites for all of the following reasons except: a) To reduce operational and transaction costs. b) To enhance their reputation. c) To sell goods and services. d) To reduce the amount of actual cash they need to deal with. e) To induce people to visit a physical location.

d) To reduce the amount of actual cash they need to deal with.

54) _____ refers to online word-of-mouth marketing. a) Permission marketing b) One-to-one marketing c) Personalized marketing d) Viral marketing e) Direct mail

d) Viral marketing

40) Which type of electronic commerce does Amazon practice? a) business-to-employee b) consumer-to-consumer c) consumer- to-business d) business-to-consumer e) employee-to-business

d) business-to-consumer

31) If you are an worker managing your fringe benefits over your company's intranet, you are engaging in _________ e-commerce. a) business-to-business b) business-to-consumer c) consumer-to-consumer d) business-to-employee e) government-to-citizen

d) business-to-employee

58) In the _____ B2B application, the orders of many buyers are aggregated so that they comprise a large volume, in order to merit more seller attention. a) buy-side b) sell-side c) auctions d) group purchasing e) electronic exchange

d) group purchasing

52) A _____ is automatically launched by some trigger and appears behind the active window. a) keyword banner b) random banner c) pop-up ad d) pop-under ad e) text box

d) pop-under ad

27) The degree of digitization relates to all of the following except: a) the product or service sold b) the process by which the product is produced c) the delivery agent or intermediary d) the size of e-commerce transactions e) none of these

d) the size of e-commerce transactions

86) You decide to start a landscaping business called Trim Grass. One of your services will be to perform fertilizer treatments. You will need to buy a great deal of fertilizer for your many clients. You can use all of the following methods to purchase the fertilizer except: a) Forward auction b) Reverse auction c) Name your Own Price d) Electronic Marketplace e) Multichanneling

e) Multichanneling

67) _____ enable two individuals to transfer funds without using a credit card. a) Electronic checks b) Stored-value money cards c) Purchasing cards d) Smart cards e) Person-to-person payments

e) Person-to-person payments

38) A vendor asks its business partners to place logos or banners on their Web sites. If customers click on a logo, visit the vendor's site, and make a purchase, then the vendor pays a commission to the partner. This scenario illustrates which business model? a) find-the-best-price b) electronic tendering system c) name-your-own-price d) online direct marketing e) affiliate marketing

e) affiliate marketing