BA109 Quiz 9

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To be successful online, small companies must create Web sites with features that appeal to experienced Web shoppers, such as:

The successful Web site will include all of these.

________ monitor customers' behavior while they are on a site, giving Web-based businesses the information they need to make their Web sites and their online ________ efforts more effective.

Tracking tools; marketing

A mashup is a Web site or an application that combines content from multiple sources into a single Web service.

True

An effective search engine optimization (SEO) strategy must recognize the three basic types of search engine results, natural or organic listings, paid or sponsored listings, and paid inclusion.

True

Although e-commerce can lower many costs of doing business, it still requires:

a basic infrastructure in the distribution channel to process orders, maintain inventory, fill orders, and handle customer service.

All of the following represent benefits of selling on the Web except:

ability to advertise in a cheaper media form.

Strategies for successful e-commerce efforts should include all of the following except:

adding value to recipients by sending spam e-mail.

All of the following are effective ways to encourage customers to return to a site except:

advertise with "pop-ups."

One of the most valuable benefits of giving customers a reason to return to your site is that it can be an effective tool to:

build customer loyalty.

A successful Web site should include all of the following characteristics except:

continuous automated music that cannot be cut off.

The ________ is the percentage of visitors to the site who actually make a purchase and the average is about ________ percent

conversion rate; 3.2

The amount of time the average person spends online is ________ than he or she spends watching television.

more

The entrepreneurs who are proving to be the most successful in e-commerce are those who know how:

their industries work, inside and out.

Businesses selling less well-known brands should:

use customer testimonials and endorsements.

Research indicates that younger audiences do not take the time to seek product information before they make a purchase.

False

Responsible online merchants should keep shipping and handling charges reasonable, but do not need to show them early on in the check-out process.

False

The Web typically lacks the ability to lower the cost of doing business.

False

The greatest opportunities for e-commerce lie in the retail sector.

False

The more innovative your domain and name, the better.

False

Virtual shop owners using banner ads have no reason to buy ads in traditional advertising media.

False

Virus detection software, intrusion detection software, and a firewall are tools that minimize the likelihood of invasion by hackers, and eliminate your responsibility for damages they inflict.

False

Web-based companies should not be concerned with supply-chain management, warehouses, or typical customer service policies.

False

You should never offer your customers "freebies" unless they are truly valuable and expensive; otherwise, you will earn a negative reputation among your customers.

False

A study by the Pew Internet and American Life Project reports that 58 percent of Americans research products and services online before buying them, an increase of 35 percent from the year 2000.

True

Although e-tailers avoid the major problems that managing inventory presents, they lose control over delivery times and service quality.

True

An important factor of e-commerce is speed.

True

It is better to avoid delays in going online by simply getting your site up and running, and then fixing it, tweaking it, and updating it to meet changing customer demands, rather than taking so much time trying to create the perfect online store at first attempt - try it, learn from it, and then fix it.

True

It is important that customers trust the Web sites they visit. and one study reports that 94 percent of consumers believe that online privacy is important.

True

Mashups, blogs, social networking, RSS feeds, wikis and widgets are popular Web 2.0 tools used by businesses.

True

Measuring the success of its Internet-based sales effort is essential if a company is to remain relevant to customers whose tastes, need, and preferences are always changing.

True

Most customers welcome well-constructed permission e-mail that directs them to a company's site for information or special deals; however, they usually do not appreciate spam.

True

The typical Internet user now spends more time on the Internet than watching television.

True

Web analytics are a variety of tools that measure a Web sites' ability to attract customers, generate sales, and keep customers coming back.

True

A measurement of the cost a company incurs to generate each purchase or customer registration is the:

cost per acquisition, or CPA.

The intentional and targeted promotion of a Web site is:

critical to online success.

Web sites have two conflicting goals regarding security. The first is to establish a presence on the Web so that customers from across the globe can have access to its site, and the second goal is to:

maintain a high level of security so that the business, its site, and the information it collects are safe from hackers and intruders intent on doing harm.

A Web site or an application that combines content from multiple sources is a:

mashup.

Rather than trying to compete head to head with the dominant players on the Web with greater access to resources, entrepreneurs should consider focusing on:

serving a market niche.

Customers will typically welcome well-constructed permission e-mail that directs them to company sites for information or special deals, unlike unsolicited and universally despised e-mail known as:

spam.

A valuable method of preventing online fraud is to:

ask customers for their card verification value.

A study by the Pew Internet and American Life Project reports that ________ percent of Americans research products and services online before buying them, an increase of ________ percent in the year 2000.

60; 35

An estimated ________ percent of adults participate in social networks and the highest level of participation is social media is among adults ________ years of age.

65; under 30

Experts estimate that nearly ________ of the world's online population has used the Internet to make a purchase.

84 percent

An effective search engine optimization (SEO) strategy can be maintained through:

All of these

Building a successful e-business does not necessarily require a well-thought-out strategy, it simply involves securing a good URL and getting online.

False

E-commerce is replacing traditional retailing.

False

Listing a site with a popular Web search engine will guarantee that surfing customers will find your site.

False

A marketing niche can be defined by customer profile, product, product usage, and many other ways.

True

When creating a Web site, the goal is to create a design:

in which customers "see themselves" when they visit.

On the Web, service is not as important as it is in a traditional retail environment.

False

The security software that can trace a hacker's location is identified by which of the following?

Intrusion detection software

Examples of Web 2.0 tools include:

All of these

Popular social media tools for small businesses include:

All of these

Responsible online merchants should make sure shipping and handling charges are:

All of these

The most common reasons for leaving a site without purchasing include which of the following?

All of these

To minimize the likelihood of invasion by hackers, e-commerce companies rely on several tools, including:

All of these

Successful e-tailers have discovered that these factors enhance their reputations for online customer service:

All of these factors enhance a Web-based reputation.

A wiki is a low-cost application that appears like a small television screen on a Web site, a blog, or a computer desktop and performs a specific function.

False

E-commerce requires focusing on technology first and then determining how the technology fits the business idea.

False

Establishing a policy of responding to all customer e-mails within 24 hours and sending customers order and shipping confirmations and "thank you for your order" e-mails are not very important to enhancing online customer service.

False

Establishing hyperlinks with different product types will ensure you cover a variety of different customers and give customer what they want.

False

Flash always makes a Web site better.

False

For many entrepreneurs, the key barrier to not using the Web as a business tool is that they do not see any benefits to selling online.

False

Making money on the Web is easy.

False

Measuring the success of its Web-based sales is not essential because customer tastes and preferences are always changing.

False

More than 75 percent of small business owners who have Web sites engage in e-commerce.

False

Paid or sponsored listings are long, heavy-text advertisements with links to the sponsoring company's Web site that appear on the results page of a search engine when the user types in a keyword or phrase.

False

The bounce rate measures the percentage of shoppers who place at least one item in a shopping cart but never complete the transaction.

False

The concept of a traditional marketing strategy is not necessary in building a successful e-business.

False

The conversion ratio, or browse-to-buy ratio is the proportion of visitors to a site who visit, but do not actually make a purchase.

False

The most important part of any e-commerce effort is technology.

False

An important way to prevent online credit card fraud is to ask customers not only for their card number and expiration date, but also for the three-digit number above the signature panel on the back of the credit card-the card verification value.

True

Before your Web site can become the foundation of a successful e-business, you must create it with your target audience in mind.

True

Click-through rate measures the proportion of people who see an online ad and actually click on it to reach the company's Web site.

True

Companies quickly learn that setting up a Web site is only the first investment required. The site leads to an ongoing investment of resources -- time, money, energy and talent.

True

For some businesses, e-mail takes a very low priority

True

How a company integrates the Web into its overall business strategy is a major factor in determining how successful it ultimately will become.

True

Online sales and Internet activity will account for more than 50 percent of total retail sales.

True

Rather than try to compete head to head with the dominant players on the Web who have almost unlimited resources and recognition, entrepreneurs should consider focusing on serving a market niche.

True

The Web is one of the most efficient ways of reaching both new and existing customers.

True

The conversion rate measures the proportion of visitors to a site who actually make a purchase.

True

The most common reason online customers abandon their shopping carts is that the shipping charges are too high.

True

According to Gerry Goldsholle, founder of two Web sites aimed at small companies, he suggests to "________" when you first launch your Web site.

Try it, learn from it, and fix it

Tools that measure a Web site's ability to attract customers, generate sales, and keep customers coming back are:

Web analytics.

A combination of hardware and software that allows employees to have access to the Internet but keeps unauthorized users from entering the company's network is called:

a firewall.

The number of visitors to a company's Web site who view a single page and leave without viewing other pages is referred to as the:

bounce rate.

The most common problem is the online transactions that customers dispute, referred to as:

chargebacks.

The Internet penetration rate is greatest in North America with 78.3% and the second region of the world in penetration is:

Oceania/Australia.

Entrepreneurs should make sure they do not fall victim to any of the e-commerce myths. Which of the following is not an e-commerce myth?

Privacy and site security is an important issue on the Web.

Search engine listings that are the result of "spiders," powerful programs that crawl around the Web and analyze sites for keywords links, and other data are :

natural, or organic listings.

A company that pays a search engine for the right to submit either selected pages or the entire content of the Web site is referred to as:

paid or sponsored listings.

The purchase funnel identifies ways to improve the online shopping experience. The process begins with ________ and ends with ________ .

promoting an online presence; a streamlined checkout process

One of the most valuable attributes of the Web is the ability to:

provide companies with instantaneous customer feedback.

An important part of any e-commerce effort is:

the ability to understand the underlying business and to develop a workable business model.

To launch a successful Web site, business owners should consider:

a simple design that is easy to navigate.


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