E-Commerce Chapter 1 MCQ

19) All of the following are major technology trends in e-commerce in 2013-2014 except: A) cloud computing enables the creation of "big data." B) apps create a new platform for online marketing and commerce. C) the mobile computing platform begins to rival the PC platform. D) real-time advertising becomes a reality with gains in computing power and speeds.

Answer: A

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

Answer: A

22) The integration of video, audio, and text marketing messages into a single marketing message and consuming experience is an example of which of the following? A) richness B) ubiquity C) information density D) personalization

Answer: A

18) Which of the following is not a major business trend in e-commerce in 2013-2014? A) Social e-commerce continues to grow. B) Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants. C) Facebook grows to more than 1.1 billion users. D) Social and mobile advertising begins to challenge search engine marketing.

Answer: B

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

Answer: B

25) In 2013, the world's online population was roughly: A) 250 million. B) 2.5 billion. C) 25 billion. D) 250 billion.

Answer: B

43) All of the following are issues facing Pinterest except: A) copyright infringement. B) inability to attract users. C) competition. D) spam.

Answer: B

45) All of the following are characteristics of Web 2.0 sites and applications except: A) they are inherently highly interactive. B) they rely on mobile access to the Web. C) they tend to rely on user-generated content. D) they present marketers with extraordinary opportunities for targeted marketing and advertising.

Answer: B

58) Retail chains account for around ________ % of online retail firm revenues. A) 15 B) 35 C) 75 D) 95

Answer: B

60) Which of the following is the top-selling online retail category? A) apparel/accessories B) computers/electronics C) mass merchant/department stores D) office supplies

Answer: B

61) Which of the following is the top online retailer ranked by online sales? A) Apple B) Amazon C) Staples D) Walmart

Answer: B

65) Which of the following statements is not true? A) No one academic perspective dominates research about e-commerce. B) Information systems researchers take a purely technical approach to e-commerce. C) There are two primary approaches to e-commerce: behavioral and technical. D) Management scientists are interested in e-commerce as an opportunity to study how business firms can exploit the Internet to achieve more efficient business operations.

Answer: B

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

Answer: C

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

Answer: C

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

Answer: C

31) 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)

Answer: C

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

Answer: C

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

Answer: C

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

Answer: C

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

Answer: C

16) Which of the following statements about e-commerce in the United States in 2013 is not true A) Mobile e-commerce generates more revenue than social e-commerce. B) Approximately 155 million Americans are expected to make at least one purchase online. C) The amount of data that the average American consumes continues to increase. D) Growth rates for B2C e-commerce are higher in the United States than in Europe

Answer: D

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

Answer: D

30) All of the following are major business trends in e-commerce in 2013-2014 except for: A) the growth of a new app-based online economy. B) the expansion of the localization of e-commerce. C) the emergence of a new social e-commerce platform. D) the eclipse of search engine marketing by the mobile advertising platform.

Answer: D

32) Which of the following is a mobile photo-sharing application? A) WordPress B) Tumblr C) Wikipedia D) Instagram

Answer: D

26) Which of the following is not one of the current major social trends in e-commerce in 2013-2014? A) Concerns about online privacy decline. B) Controversy over content regulation and controls continues. C) E-books gain wide acceptance. D) Internet security continues to decline.

Answer: A

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

Answer: A

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

Answer: A

38) All of the following can be considered a precursor to e-commerce except: A) DNS. B) Baxter Healthcare's remote order entry system. C) the French Minitel. D) Electronic Data Interchange.

Answer: A

41) Business-to-consumer (B2C) e-commerce in the United States: A) has grown at double-digit rates between 2010 and 2013. B) is expected to account for about $40 billion in total sales in 2013. C) constitutes over 30% of the overall U.S. retail market. D) is growing more slowly as it confronts its own fundamental limitations.

Answer: A

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

Answer: A

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

Answer: A

51) 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.

Answer: A

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

Answer: A

57) Which of the following types of merchants has the highest share of retail online sales? A) virtual (Web only) B) catalog/call center C) retail chain D) consumer brand manufacturer

Answer: A

59) One of the predictions for the future of e-commerce is that: A) overall revenues from e-commerce will grow at an annualized rate of about 14% a year through 2017. B) the first movers from the early years of e-commerce will retain or increase their market share as they continue to exploit economies of scale and switching costs. C) prices will lower enough to encourage more consumers to engage in online shopping. D) the number of online shoppers will continue to grow at double-digit rates.

Answer: A

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

Answer: A

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

Answer: C

33) Which of the following describes the basic Web policy of large firms during the Invention period? A) Integrate social networking and mobile platform with Web site marketing. B) Use the Web to connect with suppliers. C) Include additional channels to market products. D) Maintain a basic, static Web site.

Answer: D

34) The size of the B2B market in 2013 is estimated to be around: A) $470 million. B) $4.7 billion. C) $470 billion. D) $4.7 trillion.

Answer: D

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

Answer: D

37) In 2013, there were an estimated ________ Internet hosts. A) 1 million B) 10 million C) 100 million D) 1 billion

Answer: D

42) Which of the following is not true about the use of apps? A) The average U.S. consumer spends about 2 hours a day using apps. B) Users spend more time using apps than they do using desktops or mobile Web sites. C) Apps are easier to control and monetize than Web sites. D) Google can use Web crawlers to index apps.

Answer: D

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

Answer: D

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

Answer: D

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

Answer: D

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

Answer: D

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

Answer: D

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

Answer: D

64) Which of the following is one of the three primary societal issues related to e-commerce? A) liability B) anonymity C) equity D) individual privacy

Answer: D