Ch. 1 E-Commerce

14) How many years has it taken the Internet to achieve a share of greater than 50% of U.S. households? A) 10 B) 17 C) 38 D) 60

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12) Which of the following statements about the Web is not true? A) It is the technology upon which the Internet is based. B) It was developed in the early 1990s. C) It provides access to pages written in HTML. D) It provides access to Web pages that incorporate graphics, sound, and multimedia.

A) It is the technology upon which the Internet is based.

21) Which of the following best describes the early years of e-commerce? A) They were a technological success but a mixed business success. B) They were a technological success but a business failure. C) They were a technological failure but a business success. D) They were a mixed technological and business success.

A) They were a technological success but a mixed business success.

7) Which of the following is not an example of a social network? A) Wikipedia B) Twitter C) Pinterest D) Facebook

A) Wikipedia

19) The early years of e-commerce were driven by all of the following factors except: A) an emphasis on exploiting traditional distribution channels. B) a huge infusion of venture capital funds. C) an emphasis on quickly achieving a very high market visibility. D) visions of profiting from new technology.

A) an emphasis on exploiting traditional distribution channels.

18) Unfair competitive advantages occur when: A) one competitor has an advantage others cannot purchase. B) market middlemen are displaced. C) information is equally distributed and transaction costs are low. D) firms are able to gather monopoly profits.

A) one competitor has an advantage others cannot purchase.

1) E-commerce can be defined as: A) the use of the Internet and the Web to transact business. B) the use of any Internet technologies in a firm's daily activities. C) the digital enablement of transactions and processes within an organization. D) any digitally enabled transactions among individuals and organizations.

A) the use of the Internet and the Web to transact business.

15) Around what percentage of Internet users in the United States access the Internet through mobile devices? A) 30 B) 50 C) 70 D) 90

B) 50

4) Which of the following is the best definition of transaction cost? A) the cost of changing prices B) the cost of participating in a market C) the cost of finding suitable products D) the cost merchants pay to bring their goods to market

B) the cost of participating in a market

13) E-commerce can be said to have begun in: A) 1983. B) 1985. C) 1995. D) 2001.

C) 1995.

8) Which type of e-commerce is distinguished by the type of technology used in the transaction rather than by the nature of the market relationship? A) Consumer-to-consumer (C2C) B) Social e-commerce C) Mobile e-commerce D) Business-to-business (B2B)

C) Mobile e-commerce

20) The early years of e-commerce are considered: A) the most promising time in history for the successful implementation of first mover advantages. B) an economist's dream come true, where for a brief time consumers had access to all relevant market information and transaction costs plummeted. C) a stunning technological success as the Internet and the Web increased from a few thousand to billions of e-commerce transactions per year. D) a dramatic business success as 85% of dot-coms formed since 1995 became flourishing businesses

C) a stunning technological success as the Internet and the Web increased from a few thousand to billions of e-commerce transactions per year.

2) Which of the following is not a unique feature of e-commerce technology? A) interactivity B) social technology C) global broadcasting D) richness

C) global broadcasting

6) E-commerce technologies have changed the traditional tradeoff between the richness and reach of a marketing message. Prior to the development of the Web: A) marketing messages had little richness. B) the smaller the audience reached, the less rich the message. C) the larger the audience reached, the less rich the message. D) richness equaled reach.

C) the larger the audience reached, the less rich the message.

5) Network externalities are related to which of the following features of e-commerce technology? A) richness B) interactivity C) universal standards D) information density

C) universal standards

9) Which of the following is a mobile photo-sharing application available for Androids and iPhones? A) WordPress B) Tumblr C) Wikipedia D) Instagram

D) Instagram

16) Which of the following is not a characteristic of a perfect competitive market? A) Price, cost, and quality information are equally distributed. B) A nearly infinite set of suppliers compete against one another. C) Customers have access to all relevant information worldwide. D) It is highly regulated.

D) It is highly regulated.

17) All of the following were visions of e-commerce expressed during the early years of e-commerce except: A) a nearly perfect competitive market. B) friction-free commerce. C) disintermediation. D) fast follower advantage.

D) fast follower advantage.

10) Which of the following describes the basic Web policy of large firms during the period of invention? A) integrate social networking and mobile platform with Web site marketing B) use Web to connect with suppliers C) include additional channels to market products D) maintain a basic, static Web site

D) maintain a basic, static Web site

3) Which of the following qualities is least likely to decrease a consumer's search costs? A) ubiquity B) global reach C) information density D) richness

D) richness

11) Interactivity in the context of e-commerce can be described as: A) the ability to physically touch and manipulate a product. B) the complexity and content of a message. C) the ability of consumers to create and distribute content. D) the enabling of two-way communication between consumer and merchant.

D) the enabling of two-way communication between consumer and merchant.

22) Which of the following is a characteristic of the Reinvention phase of e-commerce? A) massive proliferation of dot-com start-ups B) widespread adoption of broadband networks C) rapid growth of search engine advertising D) widespread adoption of consumer mobile devices

D) widespread adoption of consumer mobile devices

23) Which of the following is a characteristic of the Consolidation phase of e-commerce? A) predominance of pure online strategies B) emphasis on revenue growth versus profits C) first mover advantages D) shift to a business-driven approach

Possibly D?