CH12

38) All of the following are weaknesses of EDI except:

EDI lacks universal standards.

Which of the following is not a potential benefit of e-commerce?

Guaranteed higher profit margins

81) 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.

49) ________ production is a set of production methods that focuses on the elimination of waste throughout the customer value chain.

Lean

40) Which of the following statements about cloud-based B2B systems is not true?

Much of the expense of the system is shifted from the B2B network provider to the firm.

25) Most inter-firm trade involves:

contract purchasing of direct goods.

26) All of the following are examples of direct goods in the auto industry except:

desktop computers.

11) Electronic Data Interchange (EDI) began as a(n) ________ system.

document automation

63) An ________ provides an online catalog that represents the products of thousands of direct manufacturers.

e-distributor

64) An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis.

e-distributor

70) NeweggBusiness is an example of a(n) ________.

e-distributor

60) Which of the following primarily deals with indirect goods?

e-distributors and e-procurement Net marketplaces

61) Which of the following primarily deals with direct goods?

exchanges and industry consortia

79) Private industrial networks are direct descendants of:

existing EDI networks.

65) E-distributors:

make money by charging a mark-up on products they distribute.

27) An example of an indirect good in the fast-food industry is:

paper napkins.

30) The liquidity of a market is measured by all of the following except:

price transparency.

5) Automated order entry systems:

show goods from a single seller.

14) Supply chain ________ refers to differentiating a firm's products or prices based on superior supply chain management.

competition

10) All of the following are potential benefits of B2B e-commerce except:

lower price transparency.

22) What is the first step in the procurement process?

search for suppliers

23) The last step in the procurement process is:

sending a remittance payment.

7) B2B e-commerce websites:

tend to serve horizontal markets.

15) A(n) ________ market is one that provides expertise and products for a specific industry, such as automobiles.

vertical

Lower distribution costs for digital products online can be used to strategic advantage and help promote digital products by:

ALL a) Permitting low-cost free samples for experience goods b) Giving some content away and tracking its use to get customer information for marketing c) Trading content for customer information d) Giving away one part of a complementary pair (e.g., search service and content)

Price dispersion for identical products, even when differences in delivery terms or other observable service features are allowed for, can persist on the Internet because

ALL a) Retailers can differ in terms of the degree of trust in them that buyers have c) Brand loyalty and familiarity create switching costs for buyers

58) ________ is an example of an e-distributor.

Amazon Business

Free online content may be motivated by

ALL a) A desire to get consumers' attention b) Non commercial shared interests or self-promotion c) The benefits to firms of allowing consumers to sample offerings

Options for patent strategy in e-commerce include

ALL a) Aggressive patenting to preempt competition b) New software patents c) Licensing for revenue generation

Patents in e-commerce are more important as a competitive strategy tool because

BOTH a) Customer search costs are lower b) Other sources of competitive advantage may be eroded online c) Barriers to entry are lower online

45) Which of the following is not a characteristic of the use of social networks in B2B e-commerce?

They are always private.

6) Which of the following statements about EDI systems is true?

They typically serve vertical markets.

41) ________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location.

Tight coupling

E-commerce differs from traditional commerce in:

BOTH a) The way information is accessed by consumers b) Always charging less for goods and services

Compatibility and open standards

BOTH a) reduce switching costs and help entrants versus incumbents b) have been important in the growth of the Internet and World Wide Web

78) ________ is another name for transorganizational business processes.

Collaborative commerce

Modifiability and low-cost copying of digital products offer possibilities for

ALL a) Customization or personalization b) Bundling or aggregation c) Microproducts such as single articles or songs

Options for copyright strategy in e-commerce include

ALL a) Free distribution of limited copyrighted content for promotional purposes b) Lawsuits against possible copyright violators c) Technologies to prevent copying

Services become more important in e-commerce because

ALL a) Information is a shareable or non-rival good b) Digital products are very durable c) Automation based on information technology converts some variable costs of products to fixed costs

It may be difficult to sustain perfect competition for digital products because they may be

ALL a) Shareable b) Non-excludable c) Have relatively high fixed costs and low marginal costs of production d) Easy to customize, leading to product differentiation

Network effects

ALL a) refer to a situation where the value of the network to any individual member depends on the total number of members of the network b) can raise individual switching costs c) are potentially important in e-commerce

67) Which of the following is an example of an e-procurement Net marketplace?

Ariba

3) ________ was/were the first step in the development of B2B e-commerce.

Automated order entry systems

50) ________ 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

Information flows in e-commerce are different from traditional markets because:

BOTH a) The costs of transmitting information are lower b) Communications with customers can be more integrated with internal business processes

Metcalfe's Law says:

BOTH a)the speed of microprocessors doubles every 18 months b) the total value of a network is proportional to the square of the number of users

16) The essential characteristic of ________ are they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade.

Net marketplaces

Which of the following statements is least accurate?

Online matching does not work because the information is unreliable

Which of the following is not a reason for organizing and conducting transactions within firms rather than through markets

Outsourcing some tasks or functions

8) Which of the following is another name for a private industrial network?

PTX

9) ________ are the fastest growing form of B2B e-commerce.

Private industrial networks

80) All of the following are forms of collaboration among businesses except:

RFQs.

43) 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 these reasons may be a less important basis for lock-in with e-commerce?

Search costs

31) ________ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers.

Spot

4) ________ refers to the links that connect business firms with one another to coordinate production.

Supply chain

48) 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

51) The term BYOD refers to employees:

being allowed or encouraged to use their own mobile devices and laptops.

Which one of the following intermediary roles becomes less important in electronic commerce as compared to traditional methods?

c) Being physically closer (than the producer is) to the final buyer

Which of the following statements is most accurate about the impacts of information technology, the Internet and the Web on the nature of firms?

d) Whatever happens to information flows inside and outside firms, reputation and the need to control complementary assets will ensure that traditional firm structures continue to exist

59) Which of the following primarily serves horizontal markets?

e-distributors and e-procurement Net marketplaces

66) An ________ primarily serves businesses that buy indirect goods on a contract purchasing basis.

e-procurement Net marketplace

62) Which of the following primarily involves long-term sourcing?

e-procurement Net marketplaces and industry consortia

13) All of the following have led to the development of outsourcing of manufacturing around the world except:

environmental concerns.

28) An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment.

exchange

29) An ________ primarily serves businesses that buy direct goods on a spot purchasing basis.

exchange

77) Walmart's global supply chain has been criticized for all of the following except:

failing to be efficient.

44) Collaborative commerce systems:

foster sharing sensitive internal information with suppliers and purchasers.

46) All of the following are important trends in B2B e-commerce in 2016-2017, except:

growing emphasis on lowest cost supply chains.

12) All of the following are potential benefits of B2B e-commerce except:

increased product cycle time.

24) Office supplies are an example of:

indirect goods.

47) EDI document structures are defined by:

industry committees.

68) An ________ serves businesses that primarily buy direct goods on a contract purchasing basis.

industry consortium

69) TheSeam is an example of an ________.

industry consortium

39) Which of the following is a method of inventory cost management that seeks to eliminate excess inventory?

just-in-time production