e-commerce
48) Which of these job recruitment sites is a job site aggregator? A) SimplyHired B) Craigslist C) Monster D) CareerBuilder
A
57) In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized Web site. A) account aggregation B) a financial portal C) integrated financial services D) EBPP systems
A
34) Which of the following is a method of inventory cost management that seeks to eliminate excess inventory? A) lean production B) sustainable production C) just-in-time production D) supply chain simplification
C
41) Around how many page views do online newspapers generate in a typical month? A) 41 million B) 410 million C) 4.1 billion D) 41 billion
C
31) All of the following are advantages of online retail except: A) lower supply chain costs. B) lower cost of distribution. C) ability to change prices. D) faster delivery of goods.
D
32) Which of the following online newspaper sites or groups attracts the highest number of daily unique visitors? A) USA Today B) Washington Post C) Wall Street Journal D) The New York Times
D
40) A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems. A) EDI B) ERP C) CPFR D) SCM
D
42) Which of the following is not a characteristic of the use of social networks in B2B e-commerce? A) It is typically unstructured. B) It helps develop a more personal relationship between participants in the supply chain. C) It enables participants to make decisions based on current conditions. D) They are always private.
D
15) In 2013, the social gaming market is the fastest growing form of online gaming.
FALSE
4) Online retailing is one of the largest segments of the retail industry.
FALSE
69) The essential characteristic of ________ is that they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade.
Net marketplaces
73) ________ refers to that portion of perceived customer value that can be attributed to the fact that content is available on the Internet.
Net value
All of the following are true about the newspaper industry except:
Online readership of newspapers is declining
Which of the following statements is not true?
Online travel services is one of the few sectors in which extensive disintermediation has occurred.
An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis.
exchange
In 2011, the total worth of goods sold on eBay was approximately ________.
$68 billion
There are approximately ________ online newspapers in the world.
10,000
In 2012, total paid online content was estimated to be:
11.2 billion
In 2012, around what percentage of Americans had read an e-book?
20%
Around how many page views do online newspapers generate in a typical month?
4.1 billion
Approximately ________ percent of the United States labor force is involved in providing services.
80
As of 2012, around how many Kindles of all types have been sold in the United States?
800 million
57) The liquidity of a market is measured by all of the following except: A) price transparency B) number of buyers and sellers in market C) volume of transactions D) size of transactions
A
37) Gross margin is defined as gross profit: A) minus total operating expenses. B) divided by net sales revenues. C) divided by cost of sales. D) minus net income.
B
74) Thus far, the most successful and innovative pure-play online retailer is ________.
Amazon.com, Amazon
Which of the following is not a true statement?
Auctions eliminate inter-market price differences
16) VWGroupSupply.com is an example of an: A) e-distributor. B) e-procurement Net marketplace. C) exchange. D) industry consortium.
B
36) ________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location. A) Having an adaptive supply chain B) Tight coupling C) Supply-chain management D) Materials requirement planning
B
39) All of the following are potential benefits of B2B e-commerce except: A) increased production flexibility. B) increased product cycle time. C) increased opportunities to collaborate with suppliers and distributors. D) increased visibility and real-time information sharing among all participants in the supply chain network.
B
39) DRM refers to a combination of ________ for protecting digital content. A) hardware and software methods B) technical and legal means C) user and publisher agreements D) local and remote policies
B
40) There are approximately ________ online newspapers in the world. A) 1,000 B) 10,000 C) 25,000 D) 50,000
B
51) An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis. A) e-distributor B) e-procurement Net marketplace C) exchange D) industry consortium
B
52) Zinio is an example of which of the following? A) interactive book developer B) magazine aggregator C) e-reader platform D) vanity press
B
54) An example of an indirect good in the fast-food industry is: A) food-grade paper. B) fax paper. C) beef. D) sugar.
B
33) The majority of interfirm trade involves: A) spot purchasing of direct goods. B) contract purchasing of indirect goods. C) contract purchasing of direct goods. D) spot purchasing of indirect goods.
C
33) Which of the following is not one of the methods used by traditional retailers to develop multi-channel integration? A) online Web catalog B) online order, in-store pickup C) online supply-push D) online promotions for offline purchases
C
40) What is another name for pro forma earnings? A) net margin B) operating income C) earnings before income taxes, depreciation, and amortization (EBITDA) D) generally accepted accounting principles (GAAP) earnings
C
41) Which of the following statements about collaborative commerce systems is not true? A) They involve a move from a transaction focus to a relationship focus. B) They may include both customers and suppliers. C) They are open, competitive marketplaces. D) They typically include a central data repository.
C
43) Which of the following statements about the online newspaper audience is not true? A) Online newspaper readership is growing at 17% a year. B) The online newspaper audience is highly engaged. C) The people who read newspapers online tend to be less educated than those who visit YouTube. D) Online newspapers reach over 75% of individuals in households earning more than $100,000 a year.
C
45) In 2013, Amazon's e-book and media store contained around how many book titles? A) about 10,000 B) about 100,000 C) about 1 million D) about 10 million
C
45) Which of the following primarily deal with direct goods? A) e-distributors and independent exchanges B) exchanges and e-procurement Net marketplaces C) exchanges and industry consortia D) e-procurement Net marketplaces and industry consortia
C
47) As of 2013, around how many Kindles of all types have been sold in the United States? A) 8 million B) 80 million C) 800 million D) 8 billion
C
48) E-book sales in 2013 were approximately: A) $58 million. B) $580 million. C) $5.8 billion. D) $58 billion.
C
50) In 2013, around what percentage of Americans had read an e-book? A) 5% B) 15% C) 20% D) 30%
C
52) Approximately ________ % of the United States labor force is involved in providing services. A) 50 B) 65 C) 75 D) 85
C
56) An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
C
58) In 2013, approximately how much were consumers expected to spend on digital music? A) $39 million B) $390 million C) $3.9 billion D) $39 billion
C
67) ________ occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer.
Channel
75) ________ is defined as the use of digital technologies to permit organizations to work together to design, develop, build, and manage products through their life cycles.
Collaborative commerce
72) ________ purchasing involves long-term written agreements to purchase specified products, with agreed-upon terms and quality, for an extended period of time.
Contract
Which of the following is an example of a specialized auction site?
BidZ
17) Analysts predict that B2B e-commerce in the United States will grow by 2017 to approximately: A) $6.6 billion. B) $66 billion. C) $660 billion. D) $6.6 trillion.
D
17) Personal consumption of retail goods and services accounts for approximately ________ % of the United States GDP. A) 15 B) 25 C) 50 D) 70
D
20) In 2013, the total amount of B2B e-commerce in the United States was approximately: A) $4.7 billion. B) $47 billion. C) $470 billion. D) $4.7 trillion.
D
28) Which of the following is the fastest growing paid content area? A) online radio B) online games C) online music D) online video
D
47) All of the following are challenges for catalog merchants except: A) high costs of printing and mailing. B) building a credible Web site. C) the need to bring staff in or manage new technology. D) building sophisticated order entry and fulfillment systems.
D
47) Which of the following primarily involve long-term sourcing? A) e-distributors and exchanges B) e-distributors and industry consortia C) e-procurement Net marketplaces and exchanges D) e-procurement Net marketplaces and industry consortia
D
53) All of the following are examples of direct goods in the auto industry except: A) sheet steel. B) shatter-resistant glass. C) rubber molding. D) desktop computers.
D
55) Which of the following is not a leading factor in changing the television industry? A) increasing broadband penetration B) development of the mobile platform C) a willing industry with a library of high-quality content D) inability to attract customers to traditional products
D
78) In the ________ model, successful online content distributors create their own content for exclusive distribution.
Internet innovator
None of the following statements about EDI are true except:
EDI is a communications standard for sharing business documents
All of the following are weaknesses of EDI except:
EDI lacks universal standards
A(n) ________, in which the highest bidder wins, is the most common form of auction.
English auction
All of the following types of auctions have a buyer bias except:
English auction
78) ________ are sites that provide consumers with comparison shopping services, independent financial advice, and financial planning.
Financial portals
The world's leading portal/search engine site, in terms of unique visitors, is:
All of the following charge for access to some or all its online content except:
Google News
________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids.
Herd behavior
69) ________ convergence involves the merger of media enterprises into synergistic combinations that can create and cross-market content on different platforms.
Industry
75) Amazon's ________ is not just an e-book reader but also a media and entertainment portable device.
Kindle Fire
17) Which of the following streaming movie and TV services is a joint venture between traditional entertainment producers? A) Netflix B) Hulu C) Zynga D) VUDU
C
Which of the following best explains why the service sector is a natural avenue for e-commerce?
Much of the value in services is based on the collection, storage, and exchange of information
69) ________ measures the percentage of sales revenue a firm is able to retain after all expenses are deducted from gross revenues.
Net margin
66) ________ is the leading supplier of reservation, table management, and guest management software for restaurants.
OpenTable
76) ________ refers to the use of the Internet to deliver entertainment services to the home.
Over-the-top (OTT)
Which of the following is used by the highest percentage of people to read e-books?
PC
Which of the following is the earliest precursor to today's e-books and e-book readers?
Project Gutenberg
66) ________ technology is replacing bar-code scanner technology to track inventory in supply chains.
RFID, Radio frequency identification
All of the following are forms of collaboration among businesses except:
RFQs
Which of the following is not a current trend in online content?
Readership of newspapers in print form continues to exceed online readership
A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems.
SCM
Which of the job recruitment sites is a job site aggregator?
SimplyHired
71) ________ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers.
Spot
Who was the first major fiction writer to create an e-book-only volume of a new work?
Stephen King
67) ________ describes the development of hybrid devices that can combine the functionality of two or more existing media platforms into a single device.
Technological convergence
All of the following statements are true except:
The market leader in C2C auctions is Craigslist.
All of the following statements about the online video audience are true except:
The overall size of the online video audience is much smaller than the traditional television audience
Which of the following statements about the online newspaper audience is not true?
The people who read newspapers online tend to be less educated than those who visit YouTube.
Which of the following statements illustrates the network effects that portals are subject to?
The value of the portal to advertisers and consumers increases geometrically as reach increases.
77) ________ services include automation of a firm's entire procurement process on the buyer side and automation of the selling business processes on the seller side.
Value chain management, VCM
All of the following statements about social networks are true except:
Yahoo visitors spend more than twice as much time on Yahoo as Facebook visitors spend on Facebook.
75) The leading provider of account aggregation technology is ________.
Yodlee
In 2012, Amazon's e-book and media store contained around how many book titles?
about 1 million
68) A(n) ________ supply chain is one in which the labor conditions in low-wage, underdeveloped producer countries are visible and morally acceptable to ultimate consumers in more developed industrial societies.
accountable
Which of the following is a community of members who self-identify with a demographic or geographic category?
affinity community
iVillage.com is an example of a(n):
affinity community
77) In the ________ model for e-books, prices are set by the publisher.
agency
What percentage of the Internet population in the United States read magazines online?
almost one-third
The profit a seller makes at auction is a function of all of the following except:
bid increments
Which of the following involves e-mailing another seller's bidders and offering the same product for less?
bid siphoning
Which of the following is a common problem in sealed bid markets?
big rigging
All of the following are challenges faced by bricks-and-clicks firms except:
building a brand name
Virtual merchants face potentially large costs for all of the following except:
building and maintaining physical stores
74) In ________, sales of new digital products replace sales of traditional products.
cannibalization
79) The four major sectors in the travel market are airline tickets, hotel reservations, cruises/tours, and ________.
car rentals
77) The four main online retail business models are virtual merchants, multi-channel merchants, manufacturer-direct firms, and ________ merchants.
catalog
All of the following typically favor the elimination of DRM except:
content owners
79) An example of ________ is a song downloaded from Rhapsody that expires, or cannot be played, if your monthly subscription fee is not paid.
digital rights management (DRM)
Which of the following is not a major trend in the online recruitment services industry?
disintermediation
68) Content convergence describes convergence in the design, production, and ________ of content.
distribution
Gross margin is defined as gross profit:
divided by net sales revenues
EDI began as a(n) ________ system.
document automation
In ________ pricing, customers change their offers to buy based on both their perceptions of the seller's desire to sell and their own need for the product.
dynamic
An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis.
e-procurement Net marketplace
VWGroupSupply.com is an example of an-
e-procurement Net marketplace
74) Inventory Locator Service is an example of a(n) ________.
exchange
An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment.
exchange
Threatening negative feedback in return for a benefit is an example of:
feedback extortion
72) A business model that uses advertising revenue to provide some content for free, combined with an option to obtain additional content for a price is called a(n) ________ model.
freemium
MSN is an example of a:
general purpose portal
Music download networks offer:
high user control and high user focus
All of the following are subscription services except:
iTunes
Which of the following is not a leading factor in changing the television industry?
inability to attract customers to traditional products
73) Exostar is an example of a (an) ________.
industry consortium
An ________ primarily serves businesses that primarily buy direct goods on a contract purchasing basis.
industry consortium
A Web site designed to give parents of home-schooled children a common discussion area would be classified as a(n):
interest-based social network
All of the following are aspects of content convergence except:
language
Which of the following would not be considered a current asset?
long-term investments
All of the following are potential benefits of B2B e-commerce except:
lower price transparency
80) Apple's Newsstand is an example of a(n) ________.
magazine aggregator
Zinio is an example of which of the following?
magazine aggregator
Industry consortia are sometimes referred to as:
many-to-few markets
An e-procurement Net marketplace is sometimes referred to as a:
many-to-many market
In 2012, which of the following comprised the largest segment of the online gaming audience?
mobile gamers
Which of the following is not an objective of a private industrial network?
obtaining equity participation in the network from other major firms in the industry
Which of the following is not a major contributing factor to net value?
offering variety of subscription models
Which of the following has experienced the most significant online growth?
offline general merchandisers
Which of the following types of dynamic pricing adjusts prices based on the merchant's estimate of how much the customer truly values the product?
personalization
All of the following are strategic factors that pertain specifically to a firm and its related businesses except:
power of customers
When sellers agree informally or formally to set floor prices below which they will not sell on auction items, this is known as:
price matching
All of the following are trends in the financial service industry except:
pure online banks are displacing established multi-channel firms
Which of the following is not one of the typical portal revenue sources?
referral fees
Which of the following is not a characteristic of a reverse auction?
seller bias
Which of the following best describes the online newspaper industry's revenue model?
struggling to successfully implement a fee-based model
Exchanges have failed primarily because:
suppliers have refused to join them
76) In a(n) ________ model, products are made prior to orders received based on estimated demand.
supply-push
Which of the following is not a key industry strategic factor?
synergies
Which of the following is not categorized as an operating expense?
the cost of products being sold
All of the following are major developments in supply chain management except:
the elimination of legacy computer systems
All of the following were factors that precipitated the growth of MOTO except:
the growth of the cellular phone industry
Which of the following terms refers to the total flow of value among firms?
total interfirm trade
In comparison to hours spent at work, the average American adult spends ________ consuming various media.
twice as much
Adjusting the annual cost of automobile insurance based on mileage driven is an example of ________ pricing.
utilization
67) A(n) ________ market is one that provides expertise and products for a specific industry, such as automobiles.
vertical
72) A(n) ________ is a single channel Web firm that generates almost all its revenues from online sales.
virtual merchant
The term demand-pull refers to:
waiting for orders to be received before building a product
In 2012, approximately how much were consumers expected to spend on digital music?
$3.6 billion
In 2012, the total amount of B2B e-commerce in the United States was approximately:
$4.1 trillion
E-book revenues in 2012 were approximately ________.
$4.2 billion
Analysts predict that B2B e-commerce in the United States will grow by 2016 to approximately:
$5.6 trillion
53) Which of the following is not an example of a transaction broker? A) a stockbroker B) a real estate agent C) an accountant D) an employment agency
C
20) In comparison to hours spent at work, the average American adult spends ________ consuming various media. A) a quarter as much time B) a third as much time C) an equivalent amount of time D) twice as much time
D
1) B2B e-commerce systems originated with the Internet.
FALSE
10) Independent exchanges are the fastest growing form of online B2B e-commerce.
FALSE
11) Social network sites have become major locations from which consumers directly purchase products.
FALSE
15) Online career sites are being threatened by both job search engines and aggregators.
TRUE
2) In 2013, the number of online buyers was over 150 million.
TRUE
2) The average American still spends more time watching television than using the Internet.
TRUE
3) Groupon is an example of local commerce.
TRUE
70) A(n) ________ provides a financial snapshot of a company's assets and liabilities (debts) on a given date.
balance sheet
Which of the following is not a risk or cost of Internet auctions?
price transparency
Craigslist is a player in which of the following online services market?
real estate services and career services
The lower the cost of sales compared to ________, the higher the gross profit.
revenue
All of the following have the quality of neutrality except:
reverse auctions
What is the first step in the procurement process?
search for suppliers
19) Within the United States retail market, personal consumption of ________ accounts for the largest share. A) durable goods B) general merchandise C) online retail D) food and beverage
A
20) Comparison shopping sites drive approximately ________ % of e-commerce. A) 15 B) 30 C) 50 D) 75
A
32) Which of the following is not one of the central challenges facing the online retail industry? A) lack of physical store presence B) consumer concerns about the privacy of personal information C) inconvenience in returning goods D) delivery delays
A
34) Which of the following is not a key industry strategic factor? A) synergies B) barriers to entry C) industry value chain D) existence of substitute products
A
34) Which of the following is not one of the factors required to charge for online content? A) multiple delivery methods B) focused market C) specialized content D) high perceived net value
A
33) In 2013, YouTube announced: A) 100 new channels. B) paid-subscription channels. C) movie-streaming channels. D) new channels for live streaming of special broadcast TV events.
B
36) Approximately ________ of the Internet population in the United States reads magazines online. A) one-quarter B) one-third C) one-half D) three-quarters
B
36) The lower the cost of sales compared to ________, the higher the gross profit. A) assets B) revenue C) gross margin D) operating expenses
B
43) Which of the following primarily serve horizontal markets? A) e-distributors and exchanges B) e-distributors and e-procurement Net marketplaces C) e-procurement Net marketplaces and industry consortia D) exchanges and industry consortia
B
44) Virtual merchants face potentially large costs for all of the following except: A) building and maintaining a Web site. B) building and maintaining physical stores. C) building an order fulfillment infrastructure. D) developing a brand name.
B
44) Which of the following primarily deal with indirect goods? A) e-distributors and industry consortia B) e-distributors and e-procurement Net marketplaces C) exchanges and industry consortia D) exchanges and e-procurement Net marketplaces
B
30) What is the first step in the procurement process? A) negotiate price B) qualify the seller and its products C) issue a purchase order D) search for suppliers
D
35) All of the following are strategic factors that pertain specifically to a firm and its related businesses except: A) core competencies. B) synergies. C) technology. D) power of customers.
D
59) An ________ serves businesses that primarily buy direct goods on a contract purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
D
Which of the following online newspaper sites or groups attracts the highest number of monthly unique visitors?
The New York Times Brand
One of the first online virtual communities was:
The Well
All of the following statements about television and premium are true except:
The current transition to Internet delivery of television is leading to a decline in traditional television viewing.
59) All of the following statements about the online insurance industry are true except: A) the Internet has dramatically changed the insurance industry's value chain. B) Web sites of almost all the major firms provide the ability to obtain an online quote. C) Internet usage has led to a decline in term life insurance prices industry-wide. D) the industry has been very successful in attracting visitors searching for information.
A
61) Craigslist is a player in which of the following online services market? A) real estate services and career services B) insurance services and brokerage services C) travel services D) online accounting services
A
61) In 2013, which of the following forms of online entertainment produced the least amount of revenue? A) radio B) TV C) games D) motion pictures
A
63) Music download networks offer: A) high user control and high user focus. B) high user control and low user focus. C) low user control and high user focus. D) low user control and low user focus.
A
64) All of the following are forms of collaboration among businesses except: A) RFQs. B) CPFR. C) demand chain visibility. D) marketing coordination and product design.
A
65) Which of the following is not a major trend in the online recruitment services industry? A) disintermediation B) localization C) social networking D) consolidation
A
64) Which of the following statements is not true? A) Price competition among online travel services is difficult as comparison shopping for better prices is easy. B) Online travel services is one of the few sectors in which extensive disintermediation has occurred. C) The ability of travel products and services to be commoditized is a significant factor in the explosive growth of the online travel services industry. D) The online travel services industry has gone through a period of consolidation.
B
65) Which of the following is the fastest growing online gaming audience? A) casual gamers B) mobile gamers C) social gamers D) console gamers
B
All of the following types of auctions involve single units except:
Dutch-Internet
1) Mobile commerce currently accounts for more retail goods sold than social commerce.
TRUE
Which of the following statements about financial portals is not true?
Their strategy is similar to that of large banking institutions.
All of the following are reasons why the movie industry is likely to be less disrupted by the Internet than the music industry except:
There are fewer firms competing for distribution rights.
Which of the following is not true about B2B electronic storefronts?
They are a predecessor of automated order entry systems
Which of the following is not a characteristic of the use of social networks in B2B e-commerce?
They are always private
All of the following are true about collaborative commerce systems except:
They are open, competitive marketplaces.
________ pricing adjusts prices based on the location of the consumer.
Trigger
23) Which of the following statements about automated order entry systems is not true? A) They are typically owned by the suppliers. B) They no longer play an important role in B2B commerce. C) They show goods only from a single seller. D) They reduce the costs of inventory replenishment.
B
24) All of the following are examples of technology convergence except: A) the iPad. B) Amazon Books Publishing. C) Apple TV. D) smartphones.
B
52) Which of the following is an example of an e-procurement Net marketplace? A) Exostar B) Ariba C) Grainger D) none of the above
B
10) Online readership of newspapers is declining by more than 10% a year.
FALSE
9) In the United States, the service sector accounts for about 75% of all economic activity.
TRUE
All of the following services require extensive personalization except:
financial services
DRM refers to a combination of ________ for protecting digital content.
technical and legal means
Which of the following generates the largest share of media revenues?
television
EDI transactions total about ________ percent of all B2B e-commerce in 2011.
35
In 2012, approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store?
70 percent
18) Which of the following is not a current major trend in B2B e-commerce? A) Large firms move toward consolidating regional B2B systems into global systems. B) Over 60% of B2B firms use Twitter and other social networks to enable collaboration. C) Firms place a growing emphasis on rapid-response and optimal supply chain rather than lowest-cost supply chains. D) B2B systems move to data storage on cloud providers and away from individual corporate data centers.
A
18) Which of the following type of online content does the highest percentage of Internet users purchase or view online? A) newspapers B) radio C) games D) music
A
19) Which of the following three forms of media account for over 77% of the hours spent consuming media? A) television, radio, and the Internet B) television, magazines, and the Internet C) the Internet, radio, and newspapers D) television, the Internet, and newspapers
A
22) Which of the following is not one of the seven major segments of the retail industry? A) electronics and computers B) specialty stores C) gasoline and fuel D) food and beverage
A
22) Which of the following terms refers to the total flow of value among firms? A) total interfirm trade B) B2B commerce C) multi-tier exchange D) liquidity
A
25) All of the following are aspects of content convergence except: A) language. B) design. C) production. D) distribution.
A
25) Which of the following statements about B2B electronic storefronts is not true? A) They are a predecessor of automated order entry systems. B) They tend to serve horizontal markets. C) They are seller-side solutions. D) They are usually considered a type of Net marketplace.
A
26) All of the following were parts of the vision during the early days of e-commerce except the belief that: A) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business. B) Web consumers were rational and cost-driven. C) entry costs to the online retail market would be much less than those needed to establish a physical storefront. D) the cost of acquiring customers would be much lower.
A
27) Which are the two most popular activities in terms of online content on the Internet? A) newspapers and radio B) movies and TV C) books and magazines D) TV and games
A
31) The last step in the procurement process is: A) sending a remittance payment. B) sending the invoice. C) shipping the goods. D) delivering the goods.
A
37) B2B commerce includes all of the following business processes except: A) use of corporate intranets. B) inventory management. C) product development. D) order fulfillment.
A
38) EDI began as a(n) ________ system. A) document automation B) document elimination C) continuous replenishment D) MRP
A
38) Which of the following is not categorized as an operating expense? A) the cost of products being sold B) marketing costs C) administrative overhead D) amortization of goodwill
A
39) Operating margin is defined as: A) operating income or loss divided by net sales revenues. B) operating income or loss divided by total operating expenses. C) net sales revenues divided by net income or loss. D) net assets divided by net liabilities.
A
41) Which of the following would not be considered a current asset? A) long-term investments B) cash C) accounts receivable D) marketable securities
A
43) For a quick check of a firm's short-term financial health, examine its: A) working capital. B) gross margin. C) long-term debt. D) cost of sales.
A
45) All of the following statements about Amazon.com are true except: A) Amazon has achieved success by focusing on its primary mission: selling books at highly competitive prices. B) Amazon leases its own computing power to other companies. C) eBay can be considered a competitor of Amazon's. D) the Kindle is the best-selling product in Amazon's history.
A
48) An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers. A) e-distributor B) e-procurement company C) exchange D) industry consortium
A
49) An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
A
49) Which of the following is used by the highest percentage of people to read e-books? A) PC B) e-reader such as a Kindle or Nook C) cell phone D) tablet computer
A
51) Which of the following has experienced the most significant online growth? A) offline general merchandisers B) virtual merchants C) catalog merchants D) manufacturer-direct firms
A
54) All of the following services require extensive personalization except: A) financial services. B) legal services. C) medical services. D) accounting services.
A
55) An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment. A) exchange B) e-distributor C) e-procurement company D) industry consortium
A
56) All of the following statements about the television and premium video industry are true except: A) the current transition to Internet delivery of television is leading to a decline in traditional television viewing. B) television is the largest content provider in the United States. C) the largest online video distributor is Apple's iTunes. D) over-the-top entertainment services are a threat to cable television distributors.
A
58) The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line? A) term life insurance B) automobile insurance C) health insurance D) property and casualty insurance
A
21) The MOTO sector of the retail industry is most similar to the ________ sector. A) specialty stores B) general merchandise C) online retail sales D) consumer durables
C
22) Which of the following is the fastest growing segment of media revenues? A) television B) home video C) Internet media D) newspapers
C
23) In 2013, total paid online content was estimated to be: A) 150 million. B) 1.5 billion. C) 15 billion. D) 150 billion.
C
24) EDI systems: A) generally serve horizontal markets. B) are seller-side solutions. C) are based on a communications standard for sharing business documents. D) no longer play an important role in B2B commerce.
C
27) In 2013, online retail revenues were approximately: A) $2.6 billion. B) $26 billion. C) $260 billion. D) $2.6 trillion.
C
28) In 2013, approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store? A) 33% B) 53% C) 73% D) 93%
C
28) Which of the following is the fastest growing form of B2B e-commerce? A) e-distributors B) exchanges C) private industrial networks D) industry consortiums
C
29) All of the following are potential benefits of B2B e-commerce except: A) lower administrative costs. B) lower search costs. C) lower price transparency. D) lower transaction costs.
C
30) Which of the following was the most troubled segment of the publishing industry in 2013? A) books B) magazines C) newspapers D) periodicals
C
37) Digital magazine revenues are expected to ________ over the next few years. A) remain stable B) more than double C) grow 10% a year D) continue to decrease
C
38) All of the following typically favor the elimination of DRM except: A) hackers. B) technology companies. C) content owners. D) telecommunications pipeline companies.
C
42) Current liabilities are debts of the firm that will be due within: A) three months. B) six months. C) one year. D) two years.
C
46) All of the following have led to the development of outsourcing of manufacturing around the world except: A) technology. B) globalization of trade. C) environmental concerns. D) high levels of wage disparity between the developed and undeveloped worlds.
C
51) Which of the following statements about the wholesale and agency models for selling books is not true? A) In the wholesale model, the retailer decides at what price to sell a book to the consumer. B) Amazon surprised traditional publishers by selling e-books for below their wholesale cost. C) The Justice Department sued Amazon for engaging in predatory pricing. D) The agency model was developed in response to Amazon's pricing strategies.
C
53) All of the following are subscription services except: A) Pandora. B) Spotify. C) iTunes. D) Rhapsody.
C
56) Which of the following statements about online banking is not true? A) Top mobile banking activities include paying bills and depositing checks. B) Online and mobile banking transactions incur radically lower transaction costs than in-person transactions. C) Online banking is beginning to displace national banks. D) Online banking is the primary banking channel for all ages.
C
62) Which of the following best explains why the service sector is a natural avenue for e-commerce? A) The service sector is less geographically reliant and more globally oriented. B) The service sector has historically been more technology-reliant. C) Much of the value in services is based on the collection, storage, and exchange of information. D) It is not, services are difficult to translate to e-commerce because they rely on face-to-face communication and barter.
C
63) EDI document structures are defined by: A) a single international standards body. B) by individual suppliers and buyers. C) industry committees. D) each purchaser.
C
35) Which of the following is not a major contributing factor to net value? A) providing instantaneous, online access to information B) providing large, searchable historical archives C) enabling consumers to move online information to other documents easily D) offering a variety of subscription models
D
35) Which of the following is not one of the major developments in supply chain management over the past two decades? A) supply chain simplification B) EDI C) accountable supply chains D) cloud computing
D
46) All of the following are challenges faced by bricks-and-clicks firms except: A) coordinating prices across channels. B) handling returns of Web purchases at retail outlets. C) building a credible Web site. D) building a brand name.
D
54) All of the following statements about the movie industry are true except: A) over 90 million Americans were expected to watch movies online in 2013. B) in 2013, consumers paid more for online movie viewing than for DVDs or related physical products. C) online movie viewing is growing faster than all video viewing. D) Internet and online distribution now make up the largest share of movie revenues.
D
57) All of the following are reasons why the movie industry is likely to be less disrupted by the Internet than the music industry except: A) movies are more difficult to move around the Web without detection. B) movies typically have far larger file sizes than music tracks. C) the movie industry is a concentrated oligopoly. D) there are fewer firms competing for distribution rights.
D
58) Which of the following is not an important theme of B2B e-commerce in 2013-2014? A) concern about supply chain risk B) concern about supply chain volatility C) concern about the accountability of supply chains D) concern about the privacy of supply chains
D
60) All of the following statements about the online real estate services market are true except: A) the major impact of Internet real estate sites is in influencing offline decisions. B) real estate differs from other types of online financial services because it is impossible to complete a property transaction online. C) the primary service offered by real estate sites is a listing of houses available. D) the Internet and e-commerce have created significant disintermediation in the real estate marketplace.
D
60) Which form of online entertainment is expected to generate the most revenue in 2016? A) TV B) games C) music D) motion pictures
D
63) What is the largest sector of the online travel services market in terms of revenue? A) hotel reservations B) car reservations C) cruise/tour reservations D) airline reservations
D
64) Traditional media programming offers: A) high user control and high user focus. B) high user control and low user focus. C) low user control and high user focus. D) low user control and low user focus.
D
79) ________ can be viewed as "extended enterprises" in the sense that they often begin as ERP systems in a single firm and are then expanded to include the firm's major suppliers.
Private industrial networks
80) ________ is a call for business to take social and ecological interests, and not just corporate profits, into account in all their decision-making throughout the firm.
Sustainable business
1) The publishing and entertainment industries make up the largest share of the commercial content marketplace, both online and offline
TRUE
11) Cannibalization is a major challenge facing book publishers.
TRUE
12) Approximately two-thirds of U.S. Internet users use online banking.
TRUE
12) In the wholesale model of e-book distribution, pricing power is with the retailer.
TRUE
12) Private industrial networks typically involve manufacturing and related support industries.
TRUE
13) An exchange is an independently owned online marketplace that connects many suppliers and buyers.
TRUE
13) By 2016, online movies are expected to surpass music as the largest form of online revenue in terms of revenue.
TRUE
14) Industry consortia are usually owned collectively by the major firms participating in the consortia, while private industrial networks usually are created by a single sponsoring company.
TRUE
14) The entertainment industry is generally considered to be composed of five players: television, Hollywood films, music, radio, and video games.
TRUE
15) Demand chain visibility is one goal of collaborative commerce.
TRUE
3) Private industrial networks are the most prevalent form of Internet-based B2B commerce.
TRUE
4) Internet users consume more media of all types than non-Internet users.
TRUE
5) Collaborative commerce is primarily concerned with the development of a rich communications environment.
TRUE
6) The a la carte revenue model allows users to pay only for what they use.
TRUE
6) Walmart has one of the most efficient B2B supply chains in the world.
TRUE
7) MRO goods are also known as indirect goods.
TRUE
7) Online retailing provides an example of the powerful role that intermediaries continue to play in retail trade.
TRUE
7) Videos are the fastest growing form of paid content.
TRUE
8) E-distributors operate in horizontal markets.
TRUE
8) The overall size of the online video audience is about the same size as the traditional television audience.
TRUE
8) The power of suppliers is a key industry strategic factor.
TRUE
9) Lean production is an extension of just-in-time production methods.
TRUE
9) Smartphones are an example of technological convergence.
TRUE
Which of the following most accurately reflects media consumption by the average American adult?
The average American adult spends the most hours watching television, followed by using the Internet, and listening to the radio.
16) Which of the following is not a current trend in online content? A) Sales of music in digital form produce more revenue than sales of physical units. B) Readership of newspapers in print form continues to exceed online readership. C) The growth of tablets spurs a growth in online magazine revenues. D) Console game sales stagnate in comparison to online gaming.
B
16) Which of the following is not a major trend in online retail for 2013-2014? A) Online retailing is the fastest growing retail channel. B) Lunchtime purchases are the fastest growing time segment for online retail purchases. C) Online retailers increase the use of interactive marketing tools such as blogs and user-generated content. D) Social commerce almost doubles from $3 billion to $5 billion.
B
18) Eight of the top ten fastest-growing e-commerce merchants from 2003 to 2013 were: A) virtual merchants. B) bricks-and-clicks companies. C) catalog merchants. D) manufacturer-direct firms.
B
21) Which of the following generates the largest share of media revenues? A) video games B) television C) newspapers D) radio
B
21) Which of the following was the first step in the development of B2B commerce? A) Electronic Data Interchange (EDI) B) automated order entry systems C) digital storefronts D) private industrial networks
B
24) All of the following statements about the MOTO sector are true except: A) compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms. B) the MOTO sector is also referred to as the specialty store sector. C) MOTO was the last technological revolution that preceded e-commerce. D) distribution of catalogs is one of MOTO retailers' biggest expenses.
B
25) All of the following were factors that precipitated the growth of MOTO except: A) the national toll-free call system. B) the growth of the cellular phone industry. C) falling long distance telecommunications prices. D) the growth of the credit card industry.
B
26) Which of the following is another name for a private industrial network? A) Net marketplace B) PTX C) EDI network D) hub-and-spoke system
B
26) Which of the following occurs first in the process of content convergence? A) media integration B) media migration C) media transformation D) media maturity
B
27) All of the following are weaknesses of EDI except: A) EDI is not well suited for electronic marketplaces. B) EDI lacks universal standards. C) EDI does not provide a real-time communication environment. D) EDI does not scale easily.
B
29) Which consumer review aggregator is facing charges that as many as 10 million of its reviews are faked? A) Yelp B) TripAdvisor C) Angie's List D) Porch
B
30) The top 10 retailers account for about ________ % of all online retail. A) 30 B) 50 C) 70 D) 90
B
31) All of the following are true about the newspaper industry except: A) newspaper management has been sluggish to respond to the opportunities on the Internet for news. B) online readership of newspapers is declining. C) newspaper management overly protected content from being distributed by aggregators. D) offline readership of newspapers is increasing.
B
32) Office supplies are an example of: A) direct goods. B) indirect goods. C) MRO goods. D) distributed goods.
B
Which of the following is not one of the three defining characteristics of a portal?
auctions
Which of the following was the first step in the development of B2B commerce?
automated order entry systems
42) Which of the following best describes the online newspaper industry's revenue model? A) mostly successful implementation of the subscription-fee model B) struggling to successfully implement a fee-based model C) abandonment of the subscription-fee model and return to free model D) mix of revenues from classified ad sales and subscription fees
B
44) Who was the first major fiction writer to create an e-book-only volume of a new work? A) Mary Higgins Clark B) Stephen King C) Dan Brown D) Anne Rice
B
46) Which of the following is the earliest precursor to today's e-books and e-book readers? A) Apple iPod B) Project Gutenberg C) Franklin Reader D) Voyager Company's multimedia CDs
B
49) The term demand-pull refers to: A) making products prior to orders being received based on estimated demand. B) waiting for orders to be received before building a product. C) channel conflict. D) multi-channel manufacturers who sell directly online to consumers.
B
50) All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: A) moving to a demand-pull model. B) high cost structures. C) developing a fast-response online order and fulfillment system. D) channel conflict.
B
50) Which of the following statements about e-distributors is not true? A) E-distributors make money by charging a mark-up on products they distribute. B) E-distributors usually operate "private" markets. C) E-distributors operate in horizontal markets. D) E-distributor prices are usually fixed.
B
55) Which of the following is not one of Amazon's primary business models? A) transaction brokering B) financial services provider C) manufacturer-direct D) content provider
B
59) Which of the following is the largest producer of revenues in the entertainment industry? A) radio B) television C) films D) video games
B
60) Which of the following statements is not true? A) The Volkswagen Group manages almost all of its procurement needs via the Internet. B) VWGroupSupply.com is an industry consortium. C) VWGroupSupply can be accessed by suppliers via standard Web browser software. D) The Volkswagen Group developed VWGroupSupply using technology from a number of vendors.
B
61) ________ is another name for transorganizational business processes. A) Supply chain management B) Collaborative commerce C) B2B e-commerce D) Value chain management
B
62) In 2013, which of the following comprised the largest segment of the online gaming audience? A) social gamers B) mobile gamers C) casual gamers D) console gamers
B
62) Private industrial networks are direct descendants of: A) e-procurement Net marketplaces. B) existing EDI networks. C) independent exchanges. D) industry consortia.
B
All of the following are challenges for catalog merchants except:
building sophisticated order entry and fulfillment systems.
A market that has many sellers and one or few buyers is likely to be:
buyer-biased
All of the following are methods of classifying Net marketplaces except:
by technology used
65) Which of the following is not a typical barrier to the implementation of a private industrial network? A) It requires participating firms to share sensitive data. B) It requires the large network owners to give up some of its independence. C) It requires a significant investment of time and money. D) It requires a change of mind-set and behavior of employees.
B
Which of the following is not a major trend in B2B e-commerce in 2012-2013?
decreased growth of B2B e-commerce due to the recession
All of the following are benefits of auctions except:
decreased price transparency
All of the following types of auctions have a seller bias except:
double auction
The stock market is an example of a(n):
double auction
Which of the following types of auctions offers a neutral marketplace, without buyer or seller bias?
double auction
In 2012, digital magazine circulation:
doubled
The fact that participating in an Internet auction means that you will need to purchase a computer, learn to use it, and pay for Internet access, is an example of ________ costs.
equipment
Facebook is an example of a(n):
general community/social network
76) The four main types of Net marketplaces are e-distributors, e-procurement networks, exchanges, and ________.
industry consortia
Which of the following is not one of the top factors a business should consider when planning an Internet auction?
location of auction
Traditional media programming offers:
low user control and low user focus
Which of the following is not a benefit of carving up a single, global B2B platform into product and region-centered systems?
lower cost
Which of the following occurs first in the process of media convergence?
media migration
Which social network functionality allows users to easily post messages to the entire community?
message board
Which of the following is the fastest growing online gaming audience?
mobile gamers
73) In a(n) ________ strategy, traditional merchants combine their offline retail and online retail stores and services to provide a seamless customer experience.
multi-channel
78) A(n) ________ supply chain includes a company's secondary and tertiary suppliers.
multi-tier
Which of the following is not one of the factors required to charge for online content?
multiple delivery methods
Which of the following is not a characteristic of a Japanese auction?
multiple units
Priceline.com is an example of a(n):
name your own price auction
All of the following are situations in which markets fail to produce socially desirable outcomes except:
network effects
All of the following were parts of the vision during the early days of e-commerce except the belief that:
new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business
Which of the following type of online content does the highest percentage of Internet users purchase or view online?
newspapers
Which of the following was the most troubled segment of the publishing industry in 2012?
newspapers
Which of the following together comprised the largest component of online paid content in 2012?
online music and online video
Which of the following is not one of the methods used by traditional retailers to develop multi-channel integration?
online supply-push
Which of the following forms of online entertainment is expected to generate the most revenue in 2015?
online video
Which of the following is the fastest growing paid content area?
online video
Elance.com is an example of a(n):
professional service auction
Which social network functionality allows users to create Web pages that describe themselves?
profiles
Which of the following allows the consumer to enter a maximum price and the auction software automatically bids up the goods to that maximum price in small increments?
proxy bidding
Portals compete with one another on:
reach and unique visitors
All of the following are solutions to the problem of high monitoring costs except:
seller rating systems
Which of the following involves a concern that one will never know how much the ultimate winner might have paid, or the true value to the final winner?
seller's lament
When there are few sellers but many buyers, a market will typically be:
seller-biased
Which of the following is the largest producer of revenues in the entertainment industry?
television
Which of the following three forms of media account for over 75 percent of the hours spent consuming media?
television, radio, and the Internet
The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line?
term life insurance
71) Amazon's Kindle uses a kind of DRM sometimes referred to as a(n) ________ to restrict the widespread sharing of content.
walled garden
71) If a firm's ________ is only marginally positive, or negative, the firm will likely have trouble meeting its short-term obligations.
working capital
5) Today, the Internet generates over 25% of total media revenues.
FALSE
6) Consumers are primarily price-driven when shopping on the Internet.
FALSE
29) All of the following statements about the online video audience are true except: A) major television events tend to draw higher viewership than online videos. B) the online video audience is around 180 million monthly unique viewers. C) YouTube draws the highest number of monthly unique viewers of online video. D) the overall size of the online video audience is much smaller than the traditional television audience.
D
80) ________ provide integrated airline, hotel, conference center, and auto rental services at a single Web site.
Corporate Online Booking, COBS
19) Walmart's global supply chain has been criticized for all of the following except: A) exploiting labor in underdeveloped countries. B) bribing officials. C) wasting energy. D) failing to be efficient.
D
23) Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve: A) retailing goods. B) personalization. C) information brokering. D) providing hands-on services.
D
conflict 68) ________ refers to the ability of firms to survive as profitable business firms during the specified period.
Economic viability
10) The retail industry is the largest investor in information technology.
FALSE
11) Industry consortia are more focused on optimizing short-term supply relationships than independent exchanges, which tend to focus more on long-term transactions.
FALSE
13) The online mortgage industry has transformed the process of obtaining a mortgage.
FALSE
14) The major impact of Internet real estate sites is in enabling online-only property transactions.
FALSE
2) Virtually all firms, both large and small, now use Electronic Data Interchange (EDI) systems.
FALSE
3) The impact of the Internet on media appears to be decreasing the total demand for media.
FALSE
4) Regional supply chains provide lower short-term costs, but higher, longer-term risk protection.
FALSE
5) Contrary to predictions of analysts made during the early days of e-commerce, the Internet has led to both disintermediation and hypermediation on a widespread basis.
FALSE
Which of the following is the fastest growing segment of media revenues?
Internet
In 2012, which of the following forms of online entertainment produced the least amount of revenue?
Internet Radio
All of the following statements about the movie industry are true except:
Internet and online distribution now make up the largest share of movie revenues
70) ________ is a set of production methods that focuses on the elimination of waste throughout the customer value chain.
Lean production
70) Next to iTunes, ________ is the second largest music service.
Pandora
66) Google ________ is Google's version of Apple's iTunes store.
Play
In 2012, online retail sales revenues were approximately:
$224 billion
Which of the following is an example of an e-procurement Net marketplace?
Ariba
Which of the following does not have a primary impact on the liquidity of a market?
price transparency
Personal consumption of retail goods and services accounts for approximately ________ of the United States GDP.
$11 trillion
The top 25 retailers account for about ________ percent of all online retail.
60
All of the following statements about Amazon.com are true except:
Amazon has achieved success by focusing on its primary mission- selling books at highly competitive prices.
The majority of interfirm trade involves:
contract purchasing of direct goods
Which of the following is not true about automated order entry systems?
Automated order entry systems no longer play an important role in B2B commerce
Which of the following is not a typical barrier to the implementation of a private industrial network?
It requires the large network owners to give up some of its independence
Which of the following is not a major trend in online retail for 2012-2013?
Lunchtime purchases are the fastest growing time segment for online retail purchases
Which of the following is another name for a private industrial network?
PTX
All of the following statements about the online real estate services market are true except:
The Internet and e-commerce have created significant disintermediation in the real estate marketplace
All of the following statements about the online insurance industry are true except:
The Internet has dramatically changed the insurance industry's value chain
All of the following statements are true except:
The MOTO sector is also called the general merchandise sector
________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location.
Tight coupling
Most industry groups are moving toward which language for expressing EDI documents and communications?
XML
In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized Web site.
account aggregation
What is the largest sector of the online travel services market in terms of revenue?
airline reservations
Which of the following is not an example of a transaction broker?
an accountant
All of the following products are considered durable goods except:
clothing
________ is another name for transorganizational business processes.
collaborative commerce
Which of the following sectors of the United States retail industry is the largest?
consumer durables
An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis.
e-distributor
An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers.
e-distributor
Which of the following primarily deal with indirect goods?
e-distributors and e-procurement Net marketplaces
Which of the following primarily serve horizontal markets?
e-distributors and e-procurement Net marketplaces
All of the following statements about e-distributors are true except:
e-distributors usually operate "private" markets
Which of the following primarily involve long-term sourcing?
e-procurement Net marketplaces and industry consortia
What is another name for pro forma earnings?
earnings before income taxes, depreciation, and amortization (EBITDA)
Which of the following is not one of the seven major segments of the retail industry?
electronics and computers
Which of the following primarily deal with direct goods?
exchanges and industry consortia
Private industrial networks are direct descendants of:
existing EDI networks
All of the following are advantages of online retail except:
faster delivery of goods
The MOTO sector of the retail industry is most similar to the ________ sector.
online retail sales
An example of an indirect good in the fast-food industry is:
fax paper
All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except
high cost structures
Office supplies are an example of:
indirect goods
Which of the following is a method of inventory cost management that seeks to eliminate excess inventory?
just-in-time production
Which of the following is not one of the central challenges facing the online retail industry?
lack of physical store presence
Which of the following was a primary feature of early online communities?
message boards
Current liabilities are debts of the firm that will be due within:
one year
Operating margin is defined as:
operating income or loss divided by net sales revenues
Which of the following is the fastest growing form of online B2B e-commerce?
private industrial networks
The last step in the procurement process is:
sending a remittance payment
Within the United States retail goods and services market, personal consumption of ________ accounts for the largest share.
services
For a quick check of a firm's short-term financial health, examine its:
working capital
