E-commerce
All of the following were among the original platforms for C2C e-commerce except: A) eBay. B) Amazon. C) Craigslist. D) Etsy. Answer:
B) Amazon.
All of the following are platforms for social e-commerce except: A) Instagram. B) TikTok. C) Y Combinator. D) Pinterest.
C) Y Combinator.
Which of the following is a characteristic of the Consolidation phase of e-commerce? A) first-mover advantages B) emphasis on revenue growth versus profits C) high-complexity retail products and services D) extensive government surveillance
C) high-complexity retail products and services
Which of the following features of e-commerce technology allows users to participate in the creation of online content? A) ubiquity B) global reach C) information density D) social technology
D) social technology
Interactivity in the context of e-commerce provides which of the following functionalities? A) the ability to physically touch and manipulate a product B) the complexity and content of a message C) the ability of consumers to create and distribute content D) the enabling of two-way communication between consumer and merchant
D) the enabling of two-way communication between consumer and merchant.
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) the rapid growth of Web 2.0
D) the rapid growth of Web 2.0
The Internet has shown growth patterns that are similar to other electronic technologies of the past. a) TRUE b) FALSE
FALSE
Why study e-commerce?
It is important to study e-commerce to understand the opportunities and risks. It is a powerful innovation that is changing how we do business. While other technologies transformed the 20th century, the Internet and digital markets are shaping the 21st century.
What is the key factor in determining if a transaction is "commerce"?
The key factor in defining commerce is the "exchange of value" (e.g., money) across boundaries for products and services.
Ubiquity increases the cognitive energy required to transact in a marketspace. a) TRUE b) FALSE
b) FALSE
Universal standards make price discovery more costly, slower, and less accurate. a) TRUE b) FALSE
b) FALSE
M-commerce is the type of e-commerce that generates the most revenue. a) TRUE b)FALSE
b)FALSE
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) richness B) ubiquity C) information density D) personalization
richness
Which of the following is an example of e-business? A) Amazon's inventory control system B) the Amazon.com website C) an Amazon mobile app D) Amazon's Facebook page
A) Amazon's inventory control system
The early years of e-commerce were driven by all of the following factors except: A) an emphasis on exploiting traditional distribution channels. B) an infusion of venture capital funds. C) an emphasis on quickly achieving very high market visibility. D) visions of profiting from new technology.
A) An emphasis on exploiting traditional distribution channels.
All of the following statements about e-commerce in the United States in 2021 are true except: A) Social e-commerce generated more revenue than mobile e-commerce. B) Mobile advertising accounted for more than two-thirds of all digital advertising spending. C) On-demand service firms fueled the growth of local e-commerce. D) Growth rates for retail e-commerce and m-commerce were around 10%.
A) Social e-commerce generated more revenue than mobile e-commerce.
Which of the following statements about the Web is not true? A) The Web is the technology upon which the Internet is based. B) The Web was the app that made the Internet commercially interesting and extraordinarily popular. C) The Web provides access to pages written in Hypertext Markup Language. D) The Web is both a communications infrastructure and an information storage system.
A) The Web is the technology upon which the Internet is based.
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.
Which of the following best defines e-commerce? A) digitally enabled commercial transactions between and among organizations and individuals B) the use of digital technologies in a firm's daily activities C) the digital enablement of transactions and processes within an organization D) any digital activity involving information systems under a firm's control
A) digitally enabled commercial transactions between and among organizations and individuals
Business-to-consumer (B2C) e-commerce in the United States: A) has grown at double-digit rates since 2010. B) generates less revenue than C2C e-commerce. C) now constitutes more than 50% of the overall U.S. retail market. D) includes purchases of retail goods, services, and online content.
A) has grown at double-digit rates since 2010.
Which of the following refers to any disparity in relevant market information among parties in a transaction? A) information asymmetry B) unfair competitive advantage C) imperfect competition D) dynamic pricing
A) information asymmetry
Which of the following refers to the complexity and content of a message? A) richness B) reach C) information density D) interactivity
A) richness
All of the following can be considered a precursor to e-commerce except: A) the development of the smartphone. B) Baxter Healthcare's PC-based remote order entry system. C) the French Minitel. D) the development of Electronic Data Interchange standards.
A) the development of the smartphone.
Which of the following statements about the mobile platform is not true? A) In 2022, about 93% of Internet users in the United States used a mobile device to access the Internet at least some of the time. B) Almost 250 million individuals in the United States used tablet computer apps in 2022. C) Retail m-commerce purchases were expected to reach about $415 billion in 2022. D) U.S. adults spend an average of four-and-a-half hours per day using mobile devices.
B) Almost 250 million individuals in the United States used tablet computer apps in 2022.
Which of the following is not a major business trend in e-commerce in 2022-2023? A) The mobile app ecosystem continues to grow. B) Retail e-commerce revenues exceed B2B e-commerce revenues for the first time. C) Content created and distributed by creators is becoming more and more prevalent. D) Social e-commerce continues to grow.
B) Retail e-commerce revenues exceed B2B e-commerce revenues for the first time.
Which of the following statements about the Internet is not true? A) The Internet is a worldwide network of computer networks built on common standards. B) The Internet was created in the early 1990s. C) The Internet has shown extraordinary growth patterns when compared to other electronic technologies of the past. D) It is impossible to say with certainty exactly how many computers and other mobile devices are connected to the Internet worldwide at any time.
B) The Internet was created in the early 1990s.
Which of the following is not true about the use of apps? A) The number of downloads from Google's Google Play store exceeds the number of downloads from Apple's App Store. B) Users still spend more time using mobile browsers than they do using mobile apps. C) Apps cannot be crawled by Google's search engine. D) Users typically use more than 45 different apps per month.
B) Users still spend more time using mobile browsers than they do using mobile apps.
Which of the following can be considered synonymous with the term e-commerce? A) e-business B) digital commerce C) the Internet D) the Web
B) digital commerce
Which of the following is a physical place you visit in order to transact? A) marketspace B) marketplace C) social network D) the Internet
B) marketplace
Which of the following is the best definition of transaction costs? A) the expense of changing national or regional prices B) the costs of participating in a market C) the costs of finding suitable products in the market D) the costs merchants pay to bring their goods to market
B) the costs of participating in a market
List and briefly explain the main types of e-commerce.
Business-to-Consumer (B2C): Online businesses sell directly to individual consumers. Business-to-Business (B2B): Businesses sell products or services to other businesses. Consumer-to-Consumer (C2C): Consumers sell goods to each other, often through platforms. Mobile E-commerce (M-commerce): Transactions occur through wireless digital devices like smartphones. Social E-commerce: E-commerce enabled by social networks and online relationships. Local E-commerce: Focuses on engaging customers based on their geographic location.
It is estimated that by 2026, B2B e-commerce will reach almost ________ in revenues. A) $100 billion B) $1 trillion C) $10 trillion D) $100 trillion
C) $10 trillion
The text identifies which of the following years as the year e-commerce began? A) 1983 B) 1985 C) 1995 D) 2001
C) 1995
Which of the following has not been the subject of concern about its increasing market dominance in 2022-2023? A) Amazon B) Google C) Netflix D) Meta Answer:
C) Netflix
Which of the following statements is not true? A) Information asymmetries are continually being introduced by merchants and marketers. B) First-mover advantage appears to have succeeded only for a very small group of companies. C) Overall transaction costs have dropped dramatically. D) Brands remain very important in e-commerce
C) Overall transaction costs have dropped dramatically.
________ was the first truly large-scale digitally enabled transaction system in the B2C arena. A) Telex B) The Baxter Healthcare system C) The French Minitel D) Electronic Data Interchange (EDI)
C) The French Minitel
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) 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 was unrelated to reach.
C) The larger the audience reached, the less rich the message.
Which of the following is not a unique feature of e-commerce technology? A) interactivity B) social technology C) information asymmetry D) richness
C) information asymmetry
Which of the following is a characteristic of e-commerce during the Invention period? A) mobile technology B) earnings and profit emphasis C) low-complexity retail products D) extensive government surveillance
C) low-complexity retail products
The costs incurred by merchants to change product prices are referred to as: A) subscription costs. B) fixed costs. C) menu costs. D) variable costs.
C) menu costs.
All of the following types of e-commerce are distinguished by the nature of the market relationship rather than the type of technology used except: A) consumer-to-consumer (C2C) B) business-to-business e-commerce C) mobile e-commerce D) business-to-business (B2B)
C) mobile e-commerce
E-commerce is available just about everywhere and anytime. This is known as: A) richness. B) information density. C) ubiquity. D) reach. Answer:
C) ubiquity.
Analysts estimate that by 2026, consumers will be spending around ________ in digital transactions. A) $170 million B) $1.7 billion C) $170 billion D) $1.7 trillion
D) $1.7 trillion
Which of the following is a leading platform for social e-commerce? A) Amazon B) eBay C) Wikipedia D) Facebook
D) Facebook
Which of the following is not a major technology trend in e-commerce in 2022-2023? A) Cloud computing enables content stored on Internet-based servers to be accessed by consumer devices such as smartphones. B) Firms are turning to business analytics to make sense out of big data. C) Blockchain attracts increasing interest. D) Growth of the Internet of Things slows down.
D) Growth of the Internet of Things slows down.
Which of the following statements about B2B e-commerce is not true? A) B2B e-commerce is the largest from of e-commerce. B) There are two primary business models used in B2B e-commerce. C) B2B e-commerce still has significant growth potential. D) In 2022, business-to-business exchanges of all kinds, online and offline, were estimated to be around $8.5 trillion.
D) In 2022, business-to-business exchanges of all kinds, online and offline, were estimated to be around $8.5 trillion.
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) Price dispersion remains pervasive in many markets. D) Intermediaries have disappeared.
D) Intermediaries have disappeared.
Which of the following statements about the Consolidation phase of e-commerce is not true? A) Many critics doubted the long-term prospects for e-commerce. B) Emphasis shifted from a more business-driven approach. C) Large traditional firms learned how to use the Web to strengthen their market positions. D) The development of the mobile platform fueled a surge in e-commerce revenues.
D) The development of the mobile platform fueled a surge in e-commerce revenues.
Which of the following features of e-commerce technology is related to the concept of network externalities? A) richness B) interactivity C) universal standards D) information density
D) information density
The term e-commerce refers to the digital enabling of business processes both inside and outside the firm. a) TRUE b) FALSE
FALSE
________ represents the total number of users or customers an e-commerce business can obtain. A) Ubiquity B) Interactivity C) Reach D) Information density
Reach
) The emergence of mobile, social, and local e-commerce occurred during the Consolidation period of e-commerce. a) TRUE b) FALSE
TRUE
E-commerce and e-business systems blur together at the business firm boundary, where internal business systems link up with suppliers or customers. a) TRUE b) FALSE
TRUE
It is likely that e-commerce will eventually impact nearly all commerce. a) TRUE b) FALSE
TRUE
As online sales become a larger percentage of all sales, online sales growth will likely eventually decline. a) TRUE b)FALSE
a) TRUE
Identify the eight unique features of e-commerce technology
1. Ubiquity: E-commerce is available anytime and anywhere, thanks to internet connectivity. 2. Global Reach: It allows businesses and consumers to interact in a global market, overcoming geographical barriers. 3. Universal Standards: Uses common protocols and formats that facilitate interoperability and communication between systems. 4. Information Richness: Provides access to extensive information about products and services, enhancing decision-making. 5. Interactivity: Encourages real-time communication between consumers and businesses, improving the user experience. 6. Information Density: Offers a vast amount of real-time data, allowing for more accurate evaluations of offers and competition. 7. Personalization/Customization: Enables businesses to tailor their offerings and experiences to individual consumer preferences. 8. Social Technology: Facilitates interaction and information sharing among users, fostering online community building.
