CSIS Chapter 1 Quiz

________ was the first truly large-scale digitally enabled transaction system in the B2C arena. A. The French Minitel B. Telex C. The Baxter Healthcare system D. EDI

A. The French Minitel

In 2017, there were more than ________ Internet hosts. A. 1 million B. 1 billion C. 10 million D. 100 million

B. 1 billion

The costs incurred by merchants in having to change product prices (such as the costs of reentering prices into computer systems) are referred to as which of the following? A. variable costs B. menu costs C. fixed costs D. subscription costs

B. Menu costs

Which of the following is an example of an on-demand service company? A. Tumblr B. Facebook C. Airbnb D. YouTube

C. Airbnb

TRUE OR FALSE Price dispersion has been eliminated in e-commerce

False

TRUE OR FALSE Price transparency refers to the ease with which consumers can find out what merchants pay for products.

False

TRUE OR FALSE Retail e-commerce in the United States is not expected to continue growing at double-digit growth rates in 2017-2018.

False

TRUE OR FALSE B2B e-commerce is the largest type of e-commerce.

True

TRUE OR FALSE E-commerce technologies provide a unique, many-to-many model of mass communication.

True

Which of the following statements about e-commerce, in the United States in 2017, is not true? A. On-demand service firms are fueling the growth of local e-commerce. B. Social e-commerce generates more revenue than mobile e-commerce. C. Growth rates for retail e-commerce are higher in Europe than in the United States. D. Desktop advertising still accounts for almost 70% of all digital advertising spending.

B. Social e-commerce generates more revenue than mobile e-commerce.

TRUE OR FALSE The emergence of mobile, social, and local e-commerce occurred during the Reinvention period of e-commerce.

True

TRUE OR FALSE Ubiquity lowers the cognitive energy required to transact in a marketspace.

True

The world's online population was estimated to be around ________ in 2017. A. 3.5 billion B. 35 billion C. 350 billion D. 350 million

A. 3.5 billion

All of the following are examples of Web 2.0 sites and applications except: A. auction sites B. blogs C. wikis D. photo-sharing sites.

A. Auction sites

Which of the following terms can be considered synonymous with the term e-commerce? A. e-business B. digital commerce C. the Internet D. the Web

B. Digital commerce

All of the following are examples of social networks except: A. Twitter. B. Y Combinator. C. Instagram. D. Pinterest.

B. Y Combinator

Which of the following is a characteristic of the Consolidation phase of e-commerce? A. predominance of pure online strategies B. brand extension and strengthening becomes more important than creating new brands C. shift to a technology-driven approach D. emphasis on revenue growth versus profits

B. brand extension and strengthening becomes more important than creating new brands

Which of the following is a physical place you visit in order to transact? A. social network B. marketspace C. marketplace D. the Internet

C. Marketplace

Which type of e-commerce is distinguished by the type of technology used in the transaction rather than by the nature of the market relationship? A. consumer-to-consumer (C2C) B. social e-commerce C. mobile e-commerce D. business-to-business (B2B)

C. Mobile e-commerce

The total number of users or customers an e-commerce business can obtain is a measure of which of the following? A. interactivity B. ubiquity C. reach D. information density

C. Reach

Which of the following features of e-commerce technology enables merchants to market and sell "complex" goods and services to consumers via marketing messages that can integrate video, audio, and text? A. ubiquity B. information density C. richness D. personalization

C. Richness

Which of the following refers to the practice of researching a product online before purchasing it at a physical store? A. Zooming B. Showrooming C. Webrooming D. Grazing

C. Webrooming

Which of the following is a characteristic of the Consolidation phase of e-commerce? A. predominance of pure online strategies B. emphasis on revenue growth versus profits C. shift to a technology-driven approach D. brand extension and strengthening becomes more important than creating new brands

D. brand extension and strengthening becomes more important than creating new brands

TRUE OR FALSE E-commerce and e-business systems blur together at the business firm boundary, where internal business systems link up with suppliers or customers.

True

TRUE OR FALSE The Reinvention period of e-commerce is as much a sociological phenomenon as it is a technological or business phenomenon.

True

TRUE OR FALSE The fact that e-commerce is conducted based on universal standards decreases search costs for consumers.

True

Which of the following is an example of C2C e-commerce? A. Craigslist B. Go2Paper C. Groupon D. Amazon

A. Craiglist

Which of the following refers to the displacement of market middlemen and the creation of a new direct relationship between producers and consumers? A. disintermediation B. first mover advantage C. friction-free commerce D. network effect

A. Disintermediation

Which of the following is not a major technology trend in e-commerce in 2017-2018? A. Growth of the Internet of Things slows down. B. Firms are turning to business analytics to make sense out of big data. C. The mobile computing and communications platform creates an alternative platform for online transactions, marketing, advertising, and media viewing. D. Mobile messaging services become popular with smartphone users.

A. Growth of the Internet of Things slows down.

All of the following are major social trends in e-commerce in 2017-2018 except for: A. participation of adults in social networks begins to decrease. B. the continuing conflict over copyright management and control. C. the growth of government surveillance of Internet communications. D. concerns about the flood of temporary, poorly paid jobs without benefits being generated by on-demand service companies.

A. Participation of adults in social networks begins to decrease.

Which of the following was the original "killer app" that made the Internet commercially interesting and extraordinarily popular? A. The Web B. e-commerce C. social networks D. mobile apps

A. The Web

Which of the following is not true regarding e-commerce today? A. The market middlemen disappeared. B. Consumers are less price-sensitive than expected. C. There remains considerable persistent price dispersion. D. Economists' visions of a friction-free market have not been realized.

A. The market middlemen disappeared

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

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

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

A. fast follower advantage.

Which business application is associated with the technological development of local area networks and client/server computing? A. workgroup automation (e.g., document sharing) B. desktop automation (e.g., word processing) C. transaction automation (e.g., payroll) D. industrial system automation (e.g., supply chain management)

A. workgroup automation (e.g., document sharing)

Business-to-consumer (B2C) e-commerce in the United States: A. now constitutes over 50% of the overall U.S. retail market. B. has grown at double-digit rates between 2010 and 2017. C. has less revenue than C2C e-commerce. D. is growing more slowly as it confronts its own fundamental limitations.

B. Has grown at double-digit rates between 2010 and 2017

Which of the following statements is not true? A. Intermediaries have not disappeared. B. Overall transaction costs have dropped dramatically. C. Brands remain very important in e-commerce. D. Information asymmetries are continually being introduced by merchants and marketers.

B. Overall transaction costs have dropped dramatically.

Which of the following refers to the complexity and content of a message? A. interactivity B. richness C. reach D. information density

B. Richness

Which of the following is not true about the use of apps? A. Around 280 million people worldwide launch a smartphone app more than 60 times a day. B. Users still spend less time using apps than they do using desktops or mobile websites. C. Apps are easier to control and monetize than websites. D. U.S. adult mobile Internet users spend almost 3-1/2 hours a day using apps.

B. Users still spend less time using apps than they do using desktops or mobile websites.

Which of the following is an example of an e-commerce first mover that failed? A. Etsy B. eToys C. E*Trade D. eBay

B. eToys

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

B. one competitor has an advantage others cannot purchase.

It is estimated that by 2021, the size of the B2B market will reach: A. $760 billion. B. $7.6 billion. C. $7.6 trillion. D. $760 million.

C. $7.6 trillion

Which of the following is a characteristic of e-commerce during the Invention period? A. mobile technology B. extensive government surveillance C. disintermediation D. earnings and profit emphasis

C. Disintermediation

Which of the following is an example of B2B e-commerce? A. Groupon B. Airbnb C. Facebook D. Go2Paper

C. Facebook

All of the following are issues facing Pinterest except: A. copyright infringement. B. spam. C. inability to retain users. D. scams.

C. Inability to retain users

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

C. It is highly regulated.

Which of the following statements about the mobile platform is not true? A. Retail purchases made on desktops account for almost two-thirds of all online purchases. B. Over 93% of Americans used a mobile device to access the Internet at least some of the time in 2017. C. The size of the mobile app audience greatly exceeds that of the mobile web audience. D. The time U.S. adults spend using mobile apps accounts for over 60% of total digital minutes spent.

C. The size of the mobile app audience greatly exceeds that of the mobile web audience.

In 2017, almost ________ of Americans only used a mobile device to access the Internet. A. 25% B. 33% C. 7% D. 15%

D. 15%

In which year can e-commerce be said to have begun? A. 1985 B. 1983 C. 2001 D. 1995

D. 1995

Which of the following is not a unique feature of e-commerce technology? A. interactivity B. social technology C. richness D. information asymmetry

D. Information asymmetry

Which of the following refers to any disparity in relevant market information among parties in a transaction? A. unfair competitive advantage B. imperfect competition C. dynamic pricing D. information asymmetry

D. Information asymmetry

Which of the following is one of the three primary societal issues related to e-commerce? A. equity B. liability C. anonymity D. intellectual property

D. Intellectual property

Which of the following describes the basic web policy of large firms during the Invention period? A. Use the Web to sell complex goods and services online. B. Integrate social networks and the mobile platform with website marketing. C. Emphasize the necessity for the Web to generate profits. D. Maintain a basic, static website depicting the firm's brand.

D. Maintain a basic, static website depicting the firm's brand.

Which of the following is not a major business trend in e-commerce in 2017-2018? A. Social e-commerce continues to grow. B. On-demand service companies garner multibillion-dollar valuations. C. Mobile e-commerce continues to grow. D. Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants.

D. Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants.

Which of the following statements is true about the traditional tradeoff between the richness and reach of a marketing message prior to the development of the Web? A. The smaller the audience reached, the less rich the message. B. Marketing messages had little richness. C. Richness was unrelated to reach. D. The larger the audience reached, the less rich the message.

D. The larger the audience reached, the less rich the message.

Which of the following is not an element of friction-free commerce? A. Unfair competitive advantages are eliminated. B. Prices can be dynamically adjusted to reflect actual demand. C. Information is equally distributed. D. Transaction costs are high.

D. Transaction costs are high

Which of the following features of e-commerce technology is related to the concept of network externalities? A. interactivity B. richness C. information density D. universal standards

D. Universal standards

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

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

Which of the following is a characteristic of the Reinvention phase of e-commerce? A. widespread adoption of broadband networks B. massive proliferation of dot-com start-ups C. rapid growth of search engine advertising D. expansion of e-commerce to include services as well as good

D. expansion of e-commerce to include services as well as good

Above all, e-commerce is a ________ phenomenon. A. government-driven B. sociological C. finance-driven D. technology driven

D. technology driven

TRUE OR FALSE Universal standards make price discovery more costly, slower, and less accurate.

False