BA109 Quiz 9

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Responsible online merchants should keep shipping and handling charges reasonable, but do not need to show them early on in the check-out process.

False

The Web typically lacks the ability to lower the cost of doing business.

False

The bounce rate measures the percentage of shoppers who place at least one item in a shopping cart but never complete the transaction.

False

The most important part of any e-commerce effort is technology.

False

Web-based companies should not be concerned with supply-chain management, warehouses, or typical customer service policies.

False

A study by the Pew Internet and American Life Project reports that 58 percent of Americans research products and services online before buying them, an increase of 35 percent from the year 2000.

True

Although e-tailers avoid the major problems that managing inventory presents, they lose control over delivery times and service quality.

True

An important way to prevent online credit card fraud is to ask customers not only for their card number and expiration date, but also for the three-digit number above the signature panel on the back of the credit card-the card verification value.

True

Before your Web site can become the foundation of a successful e-business, you must create it with your target audience in mind.

True

Click-through rate measures the proportion of people who see an online ad and actually click on it to reach the company's Web site.

True

Companies quickly learn that setting up a Web site is only the first investment required. The site leads to an ongoing investment of resources -- time, money, energy and talent.

True

It is better to avoid delays in going online by simply getting your site up and running, and then fixing it, tweaking it, and updating it to meet changing customer demands, rather than taking so much time trying to create the perfect online store at first attempt - try it, learn from it, and then fix it.

True

It is important that customers trust the Web sites they visit. and one study reports that 94 percent of consumers believe that online privacy is important.

True

Rather than try to compete head to head with the dominant players on the Web who have almost unlimited resources and recognition, entrepreneurs should consider focusing on serving a market niche.

True

The most common reason online customers abandon their shopping carts is that the shipping charges are too high.

True

The typical Internet user now spends more time on the Internet than watching television.

True

The ________ is the percentage of visitors to the site who actually make a purchase and the average is about ________ percent

conversion rate; 3.2

Web sites have two conflicting goals regarding security. The first is to establish a presence on the Web so that customers from across the globe can have access to its site, and the second goal is to:

maintain a high level of security so that the business, its site, and the information it collects are safe from hackers and intruders intent on doing harm.

A company that pays a search engine for the right to submit either selected pages or the entire content of the Web site is referred to as:

paid or sponsored listings.

The purchase funnel identifies ways to improve the online shopping experience. The process begins with ________ and ends with ________ .

promoting an online presence; a streamlined checkout process

Popular social media tools for small businesses include:

All of these

Responsible online merchants should make sure shipping and handling charges are:

All of these

To minimize the likelihood of invasion by hackers, e-commerce companies rely on several tools, including:

All of these

A wiki is a low-cost application that appears like a small television screen on a Web site, a blog, or a computer desktop and performs a specific function.

False

E-commerce is replacing traditional retailing.

False

E-commerce requires focusing on technology first and then determining how the technology fits the business idea.

False

Establishing a policy of responding to all customer e-mails within 24 hours and sending customers order and shipping confirmations and "thank you for your order" e-mails are not very important to enhancing online customer service.

False

Flash always makes a Web site better.

False

On the Web, service is not as important as it is in a traditional retail environment.

False

________ monitor customers' behavior while they are on a site, giving Web-based businesses the information they need to make their Web sites and their online ________ efforts more effective.

Tracking tools; marketing

A marketing niche can be defined by customer profile, product, product usage, and many other ways.

True

A mashup is a Web site or an application that combines content from multiple sources into a single Web service.

True

Tools that measure a Web site's ability to attract customers, generate sales, and keep customers coming back are:

Web analytics.

A combination of hardware and software that allows employees to have access to the Internet but keeps unauthorized users from entering the company's network is called:

a firewall.

All of the following are effective ways to encourage customers to return to a site except:

advertise with "pop-ups."

The entrepreneurs who are proving to be the most successful in e-commerce are those who know how:

their industries work, inside and out.


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