Chapter 10: E-Commerce test

Compared to digital markets, what do traditional markets have?

- Higher transaction costs - higher marginal costs per unit

What are the dimensions of e-commerce technology?

- Information density - Richness - social technology - ubiquity - global reach - customization and personalization - Interactivity

Compared to traditional markets, what do digital markets have?

- Lower distributed delivery costs - lower search costs - stronger network effects - higher delayed gratification effects

What does the business value of an effective supply chain management system include?

- faster time to market - cost eduction - supply matched to demand

Compared to traditional goods, what do digital goods have?

- greater pricing flexibility

What are the types of e-commerce?

1. Business-to-customer (B2C) 2. Business-to-business (B2B) 3. Consumer-to-consumer (C2C)

You are advising an accounting firm that wants to establish its first Web site. Approximately how much of the web site budget should you assign to purchasing software?

10 percent

21) Which of the following events signified the beginning of e-commerce? A) the first online advertisements B) the first telephone sales C) the first online retail store D) the first web site

A

22) Based on your reading of the chapter, e-commerce is A) still in a revolutionary phase. B) widely accepted by consumers, although technology is still quickly changing. C) not yet fully accepted by consumers, although much of its driving technology is firmly in place. D) well entrenched as a form of modern commerce.

A

31) The lowered costs of information storage, processing, and communication, along with the improvement of data quality, has resulted in which unique quality of e-commerce? A) information density B) richness C) customization D) interactivity

A

35) Which of the following businesses uses the market creator business model? A) an online auction house B) an online newspaper C) a video-sharing site D) an online bookseller

A

38) Reducing the business process layers in a distribution channel is called A) disintermediation. B) BPR. C) market segmentation. D) network effects.

A

40) Compared to traditional goods, digital goods have A) greater pricing flexibility. B) lower marketing costs. C) higher production costs. D) higher inventory costs.

A

41) Compared to traditional markets, digital markets have A) lower distributed delivery costs. B) higher marginal costs per unit. C) equivalent copying costs. D) similar inventory costs.

A

44) EBay is an example of A) C2C e-commerce. B) B2B e-commerce. C) B2C e-commerce. D) M-commerce.

A

47) In which of the following Internet business models does a merchant create an online digital environment that enables people with like interests to share information or buy and sell goods? A) community provider B) service provider C) market creator D) transaction broker

A

51) Which of the following best illustrates the transaction fee revenue model? A) EBay receives a small fee from a seller if a seller is successful in selling an item. B) Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase. C) Flickr provides basic services for free, but charges a premium for advanced services. D) Apple accepts micropayments for single music track downloads.

A

52) In which of the following revenue models does a Web site charge a fee for access to some or all of its offerings on a continual, regular basis? A) subscription B) free/freemium C) transaction fee D) sales

A

54) In a phenomenon called ________, some argue that large numbers of people can make better decisions about a wide range of topics or products than a single person or even a small committee of experts. A) the wisdom of crowds B) outsourcing C) crowdsourcing D) social networking

A

63) The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called A) procurement. B) e-procurement. C) SCM. D) sourcing.

A

65) E-hubs are more ________ than private industrial networks. A) transaction-oriented B) collaborative C) independent D) supply-chain oriented

A

67) A third-party Net marketplace that connects many buyers and suppliers for spot purchasing is called a(n) A) exchange. B) vertical market. C) private exchange. D) e-hub.

A

How does a business achieve maximum benefit from an enterprise software package?

A business changes the way it work to match the software's business processes

What is in the upstream portion of the supply chain?

A company's suppliers, supplier's suppliers, and the processes for managing relationships with them

What is the purpose of a firm's revenue model?

A firm's revenue model described how the firm will earn revenue, generate profits, and produce a superior return on investment

What is a touch point?

A method of interaction with a customer, such as telephone or customer service desk

________ is a peer-to-peer market in which participants bet on the outcomes of current events, business, or social trends.

A prediction market

What is the just-in-time strategy?

A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line

What would happen if Airlines and hotels eliminated travel agents as intermediaries?

Airlines and hotels operating their own reservation sites online will earn more per ticket

What is a private industrial network?

An extranet that links a large firm to its suppliers and other key business partners

24) A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n) A) exchange. B) marketspace. C) online marketplace. D) e-hub.

B

26) How are the Internet and e-commerce causing severe disruption to the existing advertising business model? A) Ties between customer and businesses are being rethought. B) Technology players such as Yahoo! seek to dominate online advertising and expand into offline ad brokerage. C) New methods of advertising, such as blog advertising, are emerging. D) The market entry costs for online advertising services are extremely low.

B

27) Which of the following is not one of the unique features of e-commerce technology? A) information density B) transparency C) richness D) social technology

B

30) The effort required to locate a suitable product is called A) price discrimination. B) search costs. C) menu costs. D) shopping costs.

B

34) Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party. A) transparency B) asymmetry C) complexity D) discrimination

B

43) Consumers selling goods and services electronically to other consumers best describes A) disintermediation. B) C2C e-commerce. C) M-commerce. D) B2C e-commerce.

B

48) Transaction brokers A) generate revenue from advertising or from directing buyers to sellers. B) save users money and time by processing online sales transactions. C) provide a digital environment where buyers and sellers can establish prices for products. D) sell physical products directly to consumers or individual businesses.

B

49) Market creators A) save users money and time by processing online sales transactions. B) provide a digital environment where buyers and sellers can establish prices for products. C) create revenue by providing digital content over the Web. D) sell physical products directly to consumers or individual businesses.

B

53) Which of the following best illustrates the affiliate revenue model? A) EBay receives a small fee from a seller if a seller is successful in selling an item. B) Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase. C) Flickr provides basic services for free, but charges a premium for advanced services. D) Apple accepts micropayments for single music track downloads.

B

56) Exposing an individual to ads that are chosen and based on the recorded and analyzed online behavior of the individual is referred to as A) clickstream advertising. B) behavioral targeting. C) online profiling. D) long-tail marketing.

B

58) Which of the following statements about B2B commerce is not true? A) Eighty percent of online B2B e-commerce is still based on EDI. B) B2B e-commerce represents approximately three-quarters of the overall B2B marketplace. C) B2B e-commerce only includes commercial transactions between firms. D) B2B e-commerce revenues in 2009 were over $3 trillion.

B

59) Which of the following describes long-tail marketing? A) The unexpected growth of sales of a product long after its initial release. B) The yearly sales of one or two copies each of thousands of obscure films. C) The dwindling sales of a once-popular book. D) The continued successful sales of a product over years.

B

61) The system functionalities of an e-commerce site are best described as the A) general capabilities wanted. B) information systems capabilities wanted. C) information elements needed. D) software and hardware required.

B

62) EDI is A) the use of Internet technologies for electronic data transactions. B) the exchange between two organizations of standard transactions through a network. C) electronic data invoicing. D) electronic delivery infrastructure.

B

66) Net marketplaces A) focus on continuous business process coordination between companies for supply chain management. B) are industry owned or operate as independent intermediaries between buyers and sellers. C) are geared towards short-term spot purchasing. D) are more relationship oriented than private industrial networks.

B

69) In the United States, m-commerce A) has become widely adopted. B) is still in its infancy. C) now represents a major fraction of total e-commerce transactions. D) is growing slowly.

B

Selling products and services directly to individual consumers via the Internet best describes:

B2C e-commerce.

25) Which of the following is not a recent development in e-commerce? A) Wireless Internet connections grow rapidly. B) Social networking sites become a new platform for e-commerce. C) The music recording industry is disrupted as music creation and distribution become decentralized. D) Online entertainment business models surge.

C

29) The integration of video, audio, and text marketing messages into a single marketing message and consumer experience describes which dimension of e-commerce technology? A) ubiquity B) personalization/customization C) richness D) interactivity

C

32) Information density refers to the A) richnesscomplexity and contentof a message. B) total amount and quantity of information delivered to consumers by merchants. C) total amount and quantity of information available to all market participants. D) amount of information available to reduce price transparency.

C

36) Varying a product's price according to the supply situation of the seller is called ________ pricing. A) menu B) flexible C) dynamic D) asymmetric

C

39) Digital goods are goods that are A) produced digitally. B) sold over digital networks. C) delivered digitally. D) used with digital equipment.

C

46) Which of the following businesses utilizes the content provider Internet business model? A) Amazon.com B) eBay.com C) CNN.com D) Motocross.com

C

Netflix's public announcement of a reward for a technology solution to its movie recommendation system is an example of:

Crowdsourcing

What is analytical CRM?

Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance

What are CRM systems?

Customer relationship management systems typically provide software and online tools for sales, customer service, and marketing.

23) The quality of ubiquity, as it relates to e-commerce, is illustrated by A) the same set of standards being used across the globe. B) the spread of plentiful, cheap information. C) the enabling of commerce worldwide. D) the availability of the Internet everywhere and anytime.

D

28) The act of engaging consumers in a dialog that dynamically adjusts the experience to the individual describes which dimension of e-commerce technology? A) ubiquity B) personalization/customization C) richness D) interactivity

D

33) Selling the same goods to different targeted groups at different prices is called A) cost customization. B) cost optimization. C) price gouging. D) price discrimination.

D

37) Compared to digital markets, traditional markets have A) lower search costs. B) stronger network effects. C) higher delayed gratification effects. D) higher transaction costs.

D

42) Selling products and services directly to individual consumers via the Internet best describes A) B2B e-commerce. B) C2C e-commerce. C) M-commerce. D) B2C e-commerce.

D

45) Your company provides online tax preparation software. Users can download forms and read tips online without paying, but a fee is charged for using the advanced tax form management services. This is an example of which type of revenue model? A) subscription B) affiliate C) transaction fee D) free/freemium

D

50) Which of the following best illustrates the sales revenue model? A) EBay receives a small fee from a seller if a seller is successful in selling an item. B) Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase. C) Flickr provides basic services for free, but charges a premium for advanced services. D) Apple accepts micropayments for single music track downloads.

D

55) Netflix's public announcement of a reward for a technology solution to its movie recommendation system is an example of A) prediction markets. B) behavioral targeting. C) long-tail marketing. D) crowdsourcing.

D

57) Which of the following was the leading marketing format in 2010? A) display ads B) e-mail C) classifieds D) search engine

D

60) Which of the following statements about m-commerce is not true? A) In 2010, m-commerce represented less than 10 percent of all e-commerce. B) M-commerce is the fastest growing form of e-commerce. C) M-commerce applications are especially popular in Europe, Japan, and South Korea. D) In 2010, the top-grossing category of m-commerce was e-book sales.

D

64) An extranet that links a large firm to its suppliers and other key business partners is called a(n) A) e-hub. B) marketspace. C) exchange. D) private industrial network.

D

68) Which of the following is not one of the categories of services that are popular for m-commerce? A) location-based services B) financial services C) games and entertainment D) retail shopping

D

70) You are planning the requirements for a site tracking and reporting system for your company Web site. Which of the following information requirements would not be essential for this function? A) number of unique visitors B) pages visited C) products purchased D) secure credit card clearing

D

What is the Wisdom of crowds?

Describes the concept that a large group of people is better at making correct decisions than a single person - also known as crowdsourcing

Reducing the business process layers in a distribution channel is called:

Disintermediation

Which of the following best illustrates the transaction fee revenue model?

EBay receives a small fee from a seller if a seller is successful in selling an item.

What are ERM modules?

Employee relationship management modules that deal with issues such as setting objectives, employee performance management, and performance-based compensation.

What is behavioural targeting?

Exposing an individual to ads that are chosen and based on the recorded and analyzed online behaviour of the individual

Does e-commerce refer to the use of Any networking technologies to transact business?

False

Exchanges have become one of the most popular types of Net marketplace because they encourage competitive bidding that drives prices down.

False

In localized e-commerce, businesses market goods to customers that are only available at a specific location. True or False

False

Intellectual property refers to all forms of human expression, both tangible and intangible. True or False

False

What is a vertical market?

Focused on specific goods and services for a niche group market - Automobile manufacturing is an example

What are indirect goods?

Goods not involved firsthand in the production process - Office supplies at automobile manufacturer

What are direct goods?

Goods that are involved in the actual production process - car door at automobile manufacturer

What is C2C?

Individuals using the web for private sales and exchanges (Kijiji)

The act of engaging consumers in a dialog that dynamically adjusts the experience to the individual describes which dimension of e-commerce technology?

Interactivity

You are building an e-commerce Web site that will sell e-books and are looking for a hosted solution. Which of the following functionalities is least important for your business goals?

Inventory Management

What are customer service modules?

Modules in CRM systems which provide tools for assigning and managing customer service requests

What modules use many of the same data, tools and systems as CRM to enhance collaboration between a company and its selling partner?

PRM

What do Market creators do?

Provide a digital environment where buyers and sellers can establish prices for products

What is Price transparency?

Refers to the ease with which consumers can find out the variety of prices in a market - Also known as cost transparency

What is B2B?

Sales of goods and services to other businesses

What is B2C?

Selling of products and services directly to individual customers

What is a horizontal market?

Selling products and services across multiple industries - Office supplies market

What is price discrimination?

Selling the same goods to different targeted groups at different prices

What are social shopping sites?

Swap shopping ideas with friends - Pinterest and Kaboodle are examples

What are supply chain planning systems?

Systems that enable a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product

________ describes the concept that a large group of people is better at making good decisions than a single person.

The Wisdom of crowds

What is the quality of ubiquity as it related to e-commerce?

The availability of the internet everywhere and anytime

What are marginal costs?

The cost merchants must pay simply to bring their goods to market

What are search costs?

The effort required to find suitable products

What is Electronic data Interchange (EDI)?

The exchange between two organizations of standard transactions through a network

What is E-commerce today?

The use of the internet and the web to transact business - Digitally enabled transactions

Which of the following is not one of the unique features of e-commerce technology?

Transparency

An example of the service provider business model is Flickr, a photo management and sharing Web site. True or False

True

In general, for digital goods, the marginal cost of producing another unit is about zero. True or False

True

Viral marketing is like traditional word-of-mouth marketing except that it is spread via online communities. True or False

True

Which feature of Internet technology has had the most effect in the Internet's rapid spread across the globe?

Universal Standards

In Web server ________, a firm purchases or leases a Web server but locates the server in a vendor's physical facility.

co-location

Digital goods are goods that are:

delivered digitally.

Varying a product's price according to the supply situation of the seller is called ________ pricing.

dynamic

What is the best way to illustrate the transaction fee revenue model?

eBay receives a small fee from a seller if a seller is successful in selling an item

Compared to traditional goods, digital goods have:

greater pricing flexibility.

Compared to digital markets, traditional markets have:

higher transaction costs.

Compared to traditional markets, digital markets have:

lower distributed delivery costs.

The quality of ubiquity, as it relates to e-commerce, is illustrated by:

the availability of the Internet everywhere and anytime.

Information density refers to the:

total amount and quantity of information available to all market participants.

E-hubs are more ________ than private industrial networks.

transaction oriented

What is information asymmetry?

when one party in a transaction has more information important for the transaction than the other party