Chapter 10 OMIS 350 Study Guide

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. Information density

40. As discussed in the Interactive Session: Technology what is one of the drawbacks to using social bookmarking within a corporate knowledge management system? a. Lack of standards in taxonomy b. Lack of integration with other products c. Lack of ability to categorize bookmarks d. Proliferation and duplication of bookmarks

a. Lack of standards in taxonomy

Through what channel did e-commerce first evolve? a. Online advertising sales b. Internet portals c. Online book sales d. Internet service providers

a. Online advertising sales

A(n) ____________ _____________ provides an online meeting place where people with similar interests can communicate and find useful information.

virtual community

A(n) __________ __________ sells physical products directly to consumers or individual businesses.

virtual storefront

46. Which of the following would not be classified as a knowledge work system? a. Computer-aided design b. 3D visualization c. Investment workstations d. Case-based reasoning

Answer: d

49) Virtual reality systems: A) provide design engineers with precise, three-dimensional representations of their models. B) provide an important source of expertise for organizations. C) allow groups to work together on documents. D) provide simulations of walking through or manipulating a three-dimensional model or programmed real-world environment.

D) provide simulations of walking through or manipulating a three-dimensional model or programmed real-world environment.

_____________ are a third-party Net marketplace primarily transaction oriented and that connect many buyers and suppliers for spot purchasing.

Exchanges

A banner ad opens automatically and does not disappear until the user clicks on it.

False

Accumulated balance digital payment systems allow consumers to make instant online payments to merchants and other individuals based stored value in a digital account.

False

Direct goods are not directly involved in the production process.

False

Disintermediation provides major benefits to the distributor.

False

One use of EDI is Web personalization.

False

Peer-to-peer payment systems are the principal payment systems for electronic commerce.

False

Retail consumer e-commerce is currently growing at single-digit rates.

False

_________ ___________ are the merchants' costs of changing prices.

Menu costs

_______-____-_______ payment systems allow people to send money to vendors or individuals who are not set up to accept credit card payments.

Peer-to-peer

___________ ___________ payment systems enable a consumer to make instant online payments to merchants and other individuals based on value stored in the digital account.

Stored value

Although Internet-enabled cell phones are able to access the Web at anytime and from anyplace, the amount of information that they can actually handle at one time is very limited.

True

An online syndicator aggregates content or applications from multiple sources, packaging them for distribution, and reselling them to third-party Web sites.

True

Automobile manufacturing is an example of a vertical market.

True

Blogs have had a significant impact on political affairs.

True

Digital cash can be used for micropayments or larger purchases.

True

Digital checks are less expensive than credit cards.

True

E-commerce refers to the use of the Internet and the Web to transact business.

True

Information asymmetry exists when one party in a transaction has more information for the transaction than the other party.

True

Many third-party Net marketplaces provide vertical markets for a single industry

True

Mobile commerce is the use of wireless devices to conduct e-commerce transactions from any location.

True

Sophisticated electronic commerce software has capabilities for processing credit card purchases on the Web.

True

The Internet shrinks information asymmetry.

True

Web sites can gather bountiful detailed information about customer behavior and demographics.

True

35. Knowledge that already exists inside a firm in the form of formal reports or presentations is categorized as: a. structured knowledge. b. semistructured knowledge. c. tacit knowledge. d. unstructured knowledge.

a

In this technique, descriptions of past experiences of human specialists are stored in a database for later retrieval when the user encounters a situation with similar characteristics: a. CBR b. Fuzzy logic c. Data mining d. LMS

a. CBR

Based on your reading of the text, how do wireless marketing strategies differ from "traditional" Internet marketing strategies? a. Focus is on bringing message related to the customer's point of need or locale. b. Content-rich messaging c. Greater personalization d. Pushing Web sites to customers

a. Focus is on bringing message related to the customer's point of need or locale.

55. Forward chaining is: a. a strategy for searching the rule base in an expert system that begins with information entered by the user. b. the programming environment of an expert system. c. a method of organizing expert system knowledge into chunks. d. a strategy for searching the rule base in an expert system that begins with a hypothesis.

a. a strategy for searching the rule base in an expert system that begins with information entered by the user.

Tools that record customer activities at Web sites and store them in a log for further analysis are called: a. clickstream tracking tools. b. customer tracking tools. c. collaborative filtering tools. d. filtering tools.

a. clickstream tracking tools.

65. Genetic algorithms: a. develop solutions to particular problems using fitness, crossover, and mutation. b. represent knowledge as groups of characteristics. c. do not work for most problems. d. are based on logic.

a. develop solutions to particular problems using fitness, crossover, and mutation.

Reducing the business process layers in a distribution channel is called: a. disintermediation. b. BPR. c. market segmentation. d. network effects.

a. disintermediation.

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. exchange.

67. Software programs that work in the background without direct human intervention to carry out specific repetitive, and predictable tasks for individual users, business processes, or software applications, are called: a. intelligent agents. b. intelligent techniques. c. business intelligence. d. AI hybrid systems.

a. intelligent agents.

64. Hardware and software that attempts to emulate the processing patterns of the biological brain best describes: a. neural network. b. expert system. c. case-based reasoning. d. fuzzy logic.

a. neural network.

42. Most knowledge workers require specialized knowledge work systems but they also rely on: a. office systems. b. schools and universities. c. imaging systems. d. data transferring systems.

a. office systems.

A "supersite" that provides a comprehensive entry point for a huge array of Internet resources and services is called a(n): a. portal. b. online syndicator. c. content provider. d. information broker.

a. portal.

An extranet that links a large firm to its suppliers and other key business partners is called a(n): a. private industrial network. b. e-hub. c. marketspace. d. exchange.

a. private industrial network.

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. supply chain management. d. electronic commerce.

a. procurement.

45. CAD/CAM workstations: a. provide engineers designers, and factory managers with precise control over industrial design and manufacturing. b. provide an important source of expertise for organizations. c. allow groups to work together on documents. d. are high-end PCs used in the financial sector to analyze trading situations instantaneously and facilitate portfolio management.

a. provide engineers designers, and factory managers with precise control over industrial design and manufacturing.

Based on your reading of the chapters, e-commerce is: a. still in its beginning phases. 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. still in its beginning phases.

38. Once a knowledge taxonomy is developed documents are all __________ with the proper classification. a. tagged b. linked c. tupled d. referenced

a. tagged

Consumers selling goods and services electronically to other consumers best describes: a. disintermediation. b. C2C electronic commerce. c. M-commerce. d. B2C electronic commerce.

b. C2C electronic commerce.

eBay is an example of: a. a click-and-mortar business. b. C2C electronic commerce. c. B2C electronic commerce. d. an online exchange.

b. C2C electronic commerce.

47. Which of the following is a type of intelligent technique? a. Knowledge networks b. Case based reasoning c. Computer-aided design d. VRML

b. Case based reasoning

______________________ are more transaction oriented than private industrial networks. a. Private exchanges b. E-hubs c. Extranets d. All of the above

b. E-hubs

Which of the following is not one of the unique features of e-commerce technology? a. Information density b. Information asymmetry c. Richness d. Interactivity

b. Information asymmetry

44. _______________________________ often are designed and optimized for the specific tasks to be performed. a. Graphics programs b. Knowledge workstations c. Virtual simulators d. CAD satation

b. Knowledge workstations

Based on your reading of the case study text, which of the four generic strategies to deal with competitive forces was the motivating factor behind eBay's acquisition of JotSpot and Kaboodle? a. Low-cost leadership b. Product differentiation c. Focus on market niche d. Strengthen customer and supplier intimacy

b. Product differentiation

Which of the five moral dimensions does the Interactive Session on MySpace.com raise? a. Information rights and obligations b. Quality of life c. System quality d. Property rights and obligations

b. Quality of life

48. Virtual reality applications for the Web use a standard called: a. CADDIS b. VRML c. KWSVR d. TCP/IP

b. VRML

The electronic payment system in which users make micropayments and purchases on the Web, accumulating a debit balance on their credit card or telephone bill is called a(n) _______ payment system. a. smart card b. accumulated balance digital c. stored value d. digital cash

b. accumulated balance digital

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. symmetry d. imbalance

b. asymmetry

60. Virtually all expert systems deal with problems of: a. policy development. b. classification. c. logic and control. d. high complexity.

b. classification.

36. A collection of internal and external knowledge in a single location for more efficient management and utilization by the organization is called a: a. KWS. b. knowledge repository. c. document database. d. document management system.

b. knowledge repository.

A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n): a. virtual community. b. marketspace. c. online marketplace. d. e-hub.

b. marketspace.

Net marketplaces: a. focus on continuous business process coordination between companies for supply chain management. b. operate as independent intermediaries between buyers and sellers. c. are geared towards short-term spot purchasing. d. are more relationship oriented and less transaction oriented than private industrial networks.

b. operate as independent intermediaries between buyers and sellers.

The presentation of Web pages tailored to a customer, based on the gathering of demographic information provided by the customer, is called: a. interactive marketing. b. personalization. c. collaborative filtering. d. localization.

b. personalization.

Online marketplaces: a. save users money and time by processing online sales dealings. 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. provide a digital environment where buyers and sellers can establish prices for products.

Transaction brokers: a. generate revenue from advertising or from directing buyers to sellers. b. save users money and time by processing online sales dealings. 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. save users money and time by processing online sales dealings.

The effort required to locate a suitable product is called: a. price discrimination. b. search costs. c. menu costs. d. transparency costs.

b. search costs.

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. the exchange between two organizations of standard transactions through a network.

Which new development is helping expand B2B e-commerce opportunities? a. Podcasting b. Blogs c. .NET and Web services d. Dropping of computing and networking component prices

c. .NET and Web services

53. Technology that consists of computer-based systems that attempt to emulate human behavior is called: a. fuzzy logic. b. neural networks. c. AI technology. d. genetic algorithms.

c. AI technology.

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. CNN.com

From your reading of the text, which general strategy to overcome market forces is an overarching focus for Stonyfield Farm? a. Low-cost leadership b. Product differentiation c. Focus on market niche d. Strengthen customer and supplier intimacy

c. Focus on market niche

Which type of application takes special advantage of the unique capabilities of mobile technology? a. Text-based messaging b. Personalized services c. Location-based applications d. Interactive, video-rich applications

c. Location-based applications

66. Which of the following describes a difference between neural networks and genetic algorithms? a. Genetic algorithms are designed to process large amounts of information. b. Genetic algorithms are a type of knowledge discovery while neural networks are an intelligent technique. c. Neural networks are programmed to "learn". d. All of the above

c. Neural networks are programmed to "learn".

What was the most important impact of Major League Baseball's Web site development efforts? a. Created a strategic advantage for major league baseball b. Increased the efficiency of baseball operations c. Strengthened the relationship with customers and suppliers d. Made it possible for major league baseball to survive

c. Strengthened the relationship with customers and suppliers

Digital goods are goods that: a. are produced digitally. b. are sold over digital networks. c. are delivered digitally. d. all of the above.

c. are delivered digitally.

61. Expert systems are expensive and time-consuming to maintain: a. because their rule base is so complex. b. because they rely on equipment that becomes outdated. c. because their rules must be reprogrammed every time there is a change in the environment d. because only the person who created the system knows exactly how it works

c. because their rules must be reprogrammed every time there is a change in the environment

The organizational department responsible for handling customer service issues is the: a. service center. b. customer support. c. call center. d. sales department.`1

c. call center.

Tools that compare user behavior and interests to make purchasing recommendations to users are called: a. clickstream tracking tools. b. customer tracking tools. c. collaborative filtering tools. d. filtering tools.

c. collaborative filtering tools.

Varying a product's price according to the supply situation of the seller is called: a. menu pricing. b. supply pricing. c. dynamic pricing. d. asymmetrical pricing.

c. dynamic pricing.

63. You are an automotive engineer working on an application that will automatically parallel park a car. The intelligent technique you may find most useful is: a. case-based reasoning. b. artificial intelligence. c. fuzzy logic. d. expert system.

c. fuzzy logic.

Compared to traditional goods, digital goods: a. have higher marketing costs. b. have lower production costs. c. have greater pricing flexibility. d. have higher inventory costs.

c. have greater pricing flexibility.

Since the dot-com bubble burst of 2001, e-commerce revenues: a. have essentially stagnated. b. show signs of stabilizing. c. have returned to solid growth. d. have returned to exponential growth.

c. have returned to solid growth.

The cost to a merchant of changing the price of a product is called a: a. pricing cost. b. dynamic pricing cost. c. menu cost. d. switching cost.

c. menu cost.

59. It is unlikely you could represent the knowledge in the Encyclopedia Britannica with an expert system because: a. there is no one expert who understands all the material contained within the encyclopedia. b. the knowledge changes radically over a short time. c. not all the knowledge in the encyclopedia can be represented in the form of IF-THEN rules. d. the knowledge is too general.

c. not all the knowledge in the encyclopedia can be represented in the form of IF-THEN rules.

Information density refers to: a. the complexity and content of a message. b. the total amount and quantity of information delivered to consumers by merchants. c. the total amount and quantity of information available to all market participants. d. the amount of information available to reduce price transparency.

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

58. Expert systems: a. solve problems too difficult for human experts. b. are based on DO WHILE rules. c. work in very limited domains. d. share characteristics with mainframe computing.

c. work in very limited domains.

Businesses retailing products and services directly via the Internet to individual consumers best describes: a. B2B electronic commerce. b. C2C electronic commerce. c. M-commerce. d. B2C electronic commerce.

d. B2C electronic commerce.

51. Which of the following is used for knowledge discovery? a. Expert systems b. Transaction processing systems c. Case-based reasoning d. Data mining

d. Data mining

Which of the following is not a recent development in e-commerce? a. Growth of wireless Internet connections b. Online, interactive models for newspapers and other traditional media c. Use of blogs as a commercial medium d. Exponential growth of e-commerce retail sales

d. Exponential growth of e-commerce retail sales

52. Which of the following are not used to capture tacit knowledge? a. Expert systems b. Case-based reasoning c. Fuzzy logic d. Neural networks

d. Neural networks

Which of the following is an ad that opens automatically and does not disappear until the user clicks on it? a. Banner ad b. Controlled ad c. Portal ad d. Pop-up ad

d. Pop-up ad

What strategy was implemented by Stonyfield Farm's use of blogs? a. Low-cost leadership b. Product differentiation c. Focus on market niche d. Strengthen customer and supplier intimacy

d. Strengthen customer and supplier intimacy

Which of the following Internet business models does Amazon.com use? a. Information broker b. Transaction broker c. Online service provider d. Virtual storefront

d. Virtual storefront

56. Backward chaining is: a. a strategy for searching the rule base in an expert system that begins with information entered by the user. b. the programming environment of an expert system. c. a method of organizing expert system knowledge into chunks. d. a strategy for searching the rule base in an expert system that begins with a hypothesis.

d. a strategy for searching the rule base in an expert system that begins with a hypothesis.

54. An inference engine is: a. a strategy for searching the rule base in an expert system that begins with information entered by the user. b. the programming environment of an expert system. c. a method of organizing expert system knowledge into chunks. d. a strategy used to search through the rule base in an expert system by forward chaining or backward chaining.

d. a strategy used to search through the rule base in an expert system by forward chaining or backward chaining.

39. Which of the following is a collaboration tool used to support knowledge management systems? a. Blogs b. Wikis c. Social bookmarking d. All of the above

d. all of the above

50. Investment workstations: a. provide engineers designers, and factory managers with precise control over industrial design and manufacturing. b. provide an important source of expertise for organizations. c. allow groups to work together on documents. d. are high-end PCs used in the financial sector to analyze trading situations instantaneously and facilitate portfolio management.

d. are high-end PCs used in the financial sector to analyze trading situations instantaneously and facilitate portfolio management.

Internet content providers: a. generate from directing buyers to sellers. b. save users money and time by processing online sales dealings. c. provide a digital environment where buyers and sellers can establish prices for products. d. create revenue by providing digital content over the Web.

d. create revenue by providing digital content over the Web.

One of the recent critical challenges facing Major League Baseball was: a. poor coordination between local and national sales channels. b. poorly managed sales channels. c. outdated information systems. d. decreasing ticket sales.

d. decreasing ticket sales.

Pure-play business models: a. are primarily used in business-to-business electronic commerce. b. do not sell a physical product. c. are extensions of traditional bricks-and-mortar businesses. d. did not have an earlier existing bricks-and-mortar business before they went to the Internet.

d. did not have an earlier existing bricks-and-mortar business before they went to the Internet.

Compared to digital markets, traditional markets: a. have lower search costs. b. have higher marketing costs. c. have higher delayed gratification effects. d. have higher transaction costs.

d. have higher transaction costs.

69. To automate routine tasks to help firms search for and filter information for use in electronic commerce and supply chain management a firm would most likely use: a. CAD systems. b. virtual reality systems. c. fuzzy logic systems. d. intelligent agents.

d. intelligent agents.

41. Tools for the management delivery, tracking, and assessment of various types of employee learning best describes: a. investment workstation. b. organizational learning system. c. employee enrichment system. d. learning management system.

d. learning management system.

Selling the same goods to different targeted groups at different prices is called: a. price customization. b. price opacity. c. price gouging. d. price discrimination.

d. price discrimination.

The electronic payment system that uses a credit card-size plastic card that stores digital information and that can be used for electronic payments in place of cash is called: a. digital cash. b. e-cash. c. digital wallet. d. smart card.

d. smart card.

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. plentiful, cheap information. c. the enabling of commerce worldwide. d. the availability of Internet technology everywhere and anytime.

d. the availability of Internet technology everywhere and anytime.

A(n) ________ ___________system extends the functionality of existing checking accounts so they can be used for online shopping payments.

digital checking

A(n) ________ __________ stores credit card and owner identification information and provides these data automatically during electronic commerce purchase transactions.

digital wallet

A(n) ______________ is a payment for a very small sum of money, often less than $10.

micropayment

A(n) ___________ provides the initial point of entry to the Web along with specialized content and other services.

portal