E-Commerce Midterm
Acquisition rate is a measure of the: A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages. B) percentage of visitors who become customers. C) percentage of existing customers who continue to buy on a regular basis. D) percentage of shoppers who do not return within a year after their initial purchase.
A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.
________ uses less battery power than GPS and is more accurate than targeting through Wi-Fi triangulation.
Answer: Bluetooth low energy, BLE
Facebook does not sell display ads.
Answer: FALSE
Dynamic page generation enables the use of a content management system.
Answer: TRUE
Which of the following purchased Tumblr in May 2013? A) Facebook B) Yahoo C) Google D) Twitter
B) Yahoo
Which of the following is currently a small part of the online marketing universe, but is expected to triple over the next 5 years? A) local marketing B) location-based mobile marketing C) mobile marketing D) social marketing on Facebook
B) location-based mobile marketing
Impressions are a measure of the: A) number of times an ad is clicked. B) number of times an ad is served. C) number of http requests. D) number of pages viewed.
B) number of times an ad is served.
Which of the following is another term for amplification? A) impressions B) reach C) conversation rate D) conversion ratio
B) reach
Which of the following accounts for the most mobile ad spending? A) display ads B) search engine advertising C) video ads D) SMS text messages
B) search engine advertising
Which of the following measures the average length of stay at a Web site? A) loyalty B) stickiness C) recency D) retention rate
B) stickiness
All of the following are examples of dark social except: A) e-mail B) tweets C) SMS texts D) Snapchat
B) tweets
Which of the following most helped Dagny Aslin of ExchangeHunterJumper.com in establishing her brand in the niche area of selling high-end competition horses? A) integrating online and offline marketing techniques to establish a consistent brand B) adapting marketing techniques to keep up with new Internet technologies C) valuing quality over quantity at each stage in the Web site development process D) establishing customer needs and habits as the top priority in all marketing decisions
D) establishing customer needs and habits as the top priority in all marketing decisions
The number of people exposed to pins is a measure of which of the following? A) engagement B) community C) brand strength D) fan acquisition
D) fan acquisition
Which of the following is not true about social marketing? A) More than 50% of Twitter's ad revenues are generated by desktop users. B) Social marketing is growing at around 30% a year. C) Social marketing differs markedly from traditional online marketing. D) In social marketing, business cannot tightly control their brand messaging.
A) More than 50% of Twitter's ad revenues are generated by desktop users
Which of the following categories do people most use their mobile devices for? A) entertainment B) socializing C) shopping D) reading news and magazines
A) entertainment
Above all, e-commerce is a ________ phenomenon. A) technology-driven B) finance-driven C) sociological D) government-driven
A) technology-driven
________ is the leading mobile retailer.
Answer: Amazon
________ involves using the inherent strength of social networks to encourage visitors and fans to share their Likes and comments with friends.
Answer: Amplification
SMS text messaging generates the majority of mobile marketing spending.
Answer: FALSE
Facebook's search engine, introduced in July 2013, is called ________.
Answer: Graph Search
________ is a micro-blogging social network site that allows users to send and receive 140-character messages.
Answer: Twitter
Macy's deployed which of the following technologies in all its retail stores in 2014? A) QR codes B) iBeacon C) E9-1-1 D) Geo-search
B) iBeacon
Which of the following is the core communications protocol for the Internet? A) Telnet B) FTP C) TCP/IP D) TLS
C) TCP/IP
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 true about Facebook News Feed Page Post Ads? A) They have a tiny tag indicating that they are sponsored. B) They can be liked, shared, and commented on, just like any News Feed post. C) They cannot contain links. D) They have social context
C) They cannot contain links.
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
All of the following are major social trends in e-commerce in 2014-2015 except for: A) the impact of social networks on privacy. B) the continuing conflict over copyright management and control. C) the refusal of online retailers to accept taxation of Internet sales. D) the growth of government surveillance of Internet communications.
C) the refusal of online retailers to accept taxation of Internet sales.
How can a smartphone's gyroscope and accelerometer be used in product marketing? A) to speed up delivery of large multimedia files B) to locate the user's geographical position C) to enhance user interaction with mobile multimedia D) to provide accurate data on the user's destination and speed
C) to enhance user interaction with mobile multimedia
Physical retail goods accounted for around what percentage of m-commerce sales in 2014? A) 55% B) 65% C) 75% D) 85%
D) 85%
Which of the following is the top app in terms of both audience size and share of time spent? A) YouTube B) iTunes C) Twitter D) Facebook
D) Facebook
Which of the following earns the most location-based marketing revenue? A) Twitter B) Apple C) Facebook D) Google
D) Google
All of the following are Pinterest marketing tools except: A) Brand pages. B) Product Pins. C) Promoted Pins. D) Promoted Accounts.
D) Promoted Accounts.
The ratio of impressions to fans is a measure of: A) engagement. B) amplification. C) community. D) fan acquisition.
D) fan acquisition.
Apple's iBeacon uses which of the following technologies? A) BLE B) NFC C) E9-1-1 D) QR codes
A) BLE
All of the following marketing tools on Facebook require payment except: A) Brand Pages. B) Right-Hand Sidebar Ads. C) News Feed Page Post Ads. D) Mobile Ads.
A) Brand Pages.
Which social marketing proved the most effective for ExchangeHunterJumper.com? A) Facebook B) YouTube C) Pinterest D) Instagram
A) Facebook
Which of the following statements is not true? A) Google is the leading display ad site on mobile devices. B) Google is the largest distributor of video ads on the mobile platform. C) Mobile advertising is dominated by Google. D) Google charges more for desktop ads than it charges for mobile ads
A) Google is the leading display ad site on mobile devices.
Which of the following statements about Graph Search is not true? A) It relies on Google to supplement its search results. B) It is a semantic search engine. C) It is a social search engine. D) It includes photos.
A) It relies on Google to supplement its search results.
Which of the following do Facebook users spend the most time on? A) News Feed B) Photos C) Profiles D) Graph Search
A) News Feed
Which of the following is not one of the four main methods advertisers use to behaviorally target ads? A) Nielsen ratings B) data collected from social networks C) integration of offline data D) clickstream data
A) Nielsen ratings
Which of the following is not an example of a social network? A) Uber B) Twitter C) Pinterest D) Tumblr
A) Uber
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 very high market visibility. D) visions of profiting from new technology.
A) an emphasis on exploiting traditional distribution channels.
Which of the following is the most important tool in establishing a relationship with the customer? A) company Web site B) company CRM system C) Facebook D) search engine display ads
A) company Web site
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
A) virtual (Web only)
________ refers to those forms of social sharing that occur off the major social networks, through alternative communication tools.
Answer: Dark social
________ involves using a variety of tools to encourage users to interact with content and brand.
Answer: Engagement
A cell phone's GPS is accurate to within 5 feet of the actual location of the phone.
Answer: FALSE
By 2014, spending on social marketing will be more than double the amount spent on mobile marketing.
Answer: FALSE
DNS is the protocol that provides the Internet addressing scheme.
Answer: FALSE
In the United States today, single, white, young college-educated males with high income dominate the Internet in terms of percentage of Internet usage.
Answer: FALSE
It is possible to opt-out of Facebook's Graph Search.
Answer: FALSE
Pinterest's visitors are predominantly men.
Answer: FALSE
When developing an e-commerce presence, it is important to understand that the technology must drive business decisions, not the reverse.
Answer: FALSE
________ is a real-time bidding system that allows advertisers to target their ads to specific users based on personal information provided by Facebook.
Answer: Facebook Exchange, FBX
________ involves using any of a variety of means to attract people to your Web site and other social marketing platforms, such as Facebook and Twitter.
Answer: Fan acquisition
________ techniques identify the location of a user's device and then target marketing to the device, recommending actions within the area.
Answer: Geo-aware
________ targets marketing messages to users based on their location.
Answer: Location-based marketing
________ is a Facebook feature that allows app developers to integrate their apps into the Facebook pages of users who sign up for the app.
Answer: Open Graph
________ techniques identify a perimeter around a physical location and then target ads to users within that perimeter.
Answer: Proximity marketing
________ refers to the number of interactions among members of a group and reflects the "connectedness" of the group, even if these connections are forced on users.
Answer: Social density
Amazon Web Services is an example of cloud computing.
Answer: TRUE
Brand pages on Facebook typically attract more visitors than a brand's Web site.
Answer: TRUE
Cookies, when combined with Web beacons, can be used to create cross-site profiles.
Answer: TRUE
Evidence suggests that real-time customer chat lowers shopping cart abandonment rates.
Answer: TRUE
Google provides the leading location-based marketing platform.
Answer: TRUE
HTTP is the Internet protocol used to transfer Web pages.
Answer: TRUE
In 2013, local online marketing was almost three times the amount of mobile marketing.
Answer: TRUE
It is expected that by 2018, mobile commerce will account for almost 30% of all B2C e-commerce.
Answer: TRUE
Online traffic is driven by offline brands and shopping.
Answer: TRUE
Over 60% of Facebook's ad revenue is generated by its mobile audience.
Answer: TRUE
Prior to the development of e-commerce, Web sites primarily delivered static HTML pages.
Answer: TRUE
Promoted Tweets are Twitter's version of Google's Ad Words.
Answer: TRUE
Tablets are the fastest growing and largest source of mobile commerce revenues.
Answer: TRUE
The annual maintenance cost for a Web site is likely to be as high as its development cost.
Answer: TRUE
The major hubs in the United States where the Internet backbone intersects with regional and local networks are now commonly referred to as Internet Exchange Points (IXPs).
Answer: TRUE
Traditional desktop marketing remains the largest part of all online marketing.
Answer: TRUE
Visitors spend significantly more time on Facebook than any other social network site.
Answer: TRUE
The practice of owning (or leasing) and managing your own Web servers but housing them in a vendor's physical facility is known as ________.
Answer: co-location
With ________, the contents of a Web page are stored as objects in a database, rather than being hard-coded in HTML.
Answer: dynamic page generation
A(n) ________ organizes the conversations on Twitter around a specific topic, and enables users to search for tweets related to a particular topic.
Answer: hashtag, #
Beginning the e-commerce development process with a mobile presence rather than a desktop Web site is referred to as ________.
Answer: mobile first design
A(n) ________ is a set of public statements to customers declaring how you will treat any personal information that you gather from them on your Web site.
Answer: privacy policy
How many apps do users regularly use a month? A) 10 B) 25 C) 30 D) 50
B) 25
________ verifies that the business objectives of the system as originally conceived are in fact working. A) System testing B) Acceptance testing C) Unit testing D) Implementation testing
B) Acceptance testing
Which of the following provides marketers with a real-time digital dashboard so they can see tweet activity about a TV show, commercial, or brand? A) Enhanced Profile Pages B) Amplify C) Lead Generation Cards D) Promoted Accounts
B) Amplify
A ________ is a repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to know the customer. A) customer service chat system B) CRM system C) data warehouse D) transactive content system
B) CRM system
Which of the following is an online service specifically aimed at measuring the impact of Pinterest and other visual social media? A) TweetDeck B) Curalate C) Amplify D) Webtrends
B) Curalate
Which of the following allows Facebook to track user behavior on other sites and then sell the information to marketers? A) Open Graph B) Like button C) hashtags D) Whatsapp
B) Like button
Google uses which of the following to build a global database of wireless access points and their geographic locations? A) E9-1-1 B) Street View cars C) iBeacons D) BLE
B) Street View cars
Which of the following statements is not true? A) About 50% of Facebook's ad revenue in 2014 is expected to come from its mobile ad platform. B) The only way to access Facebook from a mobile device is to use a mobile app. C) Mobile ads are displayed in users' News Feeds. D) Facebook's mobile ad revenues are its fastest growing revenue stream.
B) The only way to access Facebook from a mobile device is to use a mobile app.
Which of the following is a history of your actions on Facebook? A) News Feed B) Timeline C) Ticker D) Social Graph
B) Timeline
Which of the following was the object of the FTC's first-ever COPPA enforcement action involving mobile apps? A) Disney's Playdom B) W3 Innovation C) Snapchat D) Yelp
B) W3 Innovation
How does Google Analytics track user behavior at a participating Web site? A) cookies B) beacons C) server logs D) super cookies
B) beacons
The primary way a Web site is able to personalize the content presented to a visitor is through the use of: A) privacy policies. B) cookies. C) accessibility rules. D) site management tools.
B) cookies.
Which of the following are features of both Pinterest and Twitter? A) tweets B) hashtags C) pins D) Image Hover widget
B) hashtags
All of the following are issues facing Pinterest except: A) copyright infringement. B) inability to retain users. C) spam. D) scams.
B) inability to retain users.
Which of the following is the best definition of transaction cost? A) the expense of changing national or regional prices B) the cost of participating in a market C) the cost of finding suitable products in the market D) the cost merchants pay to bring their goods to market
B) the cost of participating in a market
Which of the following is not a major business trend in e-commerce in 2014-2015? A) the growth of a mobile app-based online economy. B) the weakening revenues of B2B e-commerce. C) the emergence of social e-commerce. D) the growth of the mobile advertising platform.
B) the weakening revenues of B2B e-commerce
If you want to determine the size of your Web site's audience, the metric you will use for the most accurate measurement will be: A) page views. B) unique visitors. C) hits. D) reach.
B) unique visitors.
Companies are not permitted to collect personal information from children under the age of ________ without parental consent. A) 8 B) 10 C) 13 D) 16
C) 13
How many retail-oriented apps are there in the top 25 apps? A) 0 B) 1 C) 2 D) 5
C) 2
In 2014, mobile marketing was about ________% of all online marketing. A) 15% B) 25% C) 35% D) 50%
C) 35%
A recent Google survey found that ________ % of smartphone users visit a store within a day of conducting a local search. A) 15 B) 25 C) 50 D) 75
C) 50
Around ________ % of households in the United States have broadband access to the Internet. A) 45 B) 55 C) 75 D) 85
C) 75
Which analytics tool did Fairmont Hotel use to measure the effectiveness of its online marketing and advertising? A) Webtrends B) IBM Digital Analytics C) Google Analytics D) A custom Hadoop solution
C) Google Analytics
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.
C) Overall transaction costs have dropped dramatically.
Ads that appear in a Facebook user's News Feed are called: A) Marketplace Ads. B) Promoted Ads. C) Page Post Ads. D) Brand Ads.
C) Page Post Ads.
Which of the following measures the ratio of items purchased to product views? A) conversion rate B) cart conversion rate C) browse-to-buy ratio D) view-to-cart ratio
C) browse-to-buy ratio
Which of the following is a characteristic of e-commerce during the Invention period? A) mobile technology B) earnings and profit emphasis C) disintermediation D) extensive government surveillance
C) disintermediation
Which of the following is the most popular use for mobile devices? A) shopping B) socializing C) entertainment D) performing tasks, such as finances
C) entertainment
Which of the following is the first step in the social marketing process? A) community B) amplification C) fan acquisition D) engagement
C) fan acquisition
All of the following were popular types of online marketing before 2007 except: A) e-mail. B) corporate Web sites. C) mobile marketing. D) display ads.
C) mobile marketing.
The process of slicing digital messages into parcels, sending them along different communication paths as they become available, and reassembling them at the destination point is called: A) routing. B) the Transmission Control Protocol. C) packet switching. D) the File Transfer Protocol.
C) packet switching.
Which of the following helps you understand the marketing effectiveness of your e-commerce site? A) shopping cart B) product database C) site tracking and reporting system D) inventory management system
C) site tracking and reporting system
The size of the B2B market in 2014 was estimated to be around: A) $570 million. B) $5.7 billion. C) $570 billion. D) $5.7 trillion.
D) $5.7 trillion.
In 2014, there were an estimated ________ Internet hosts. A) 1 million B) 10 million C) 100 million D) 1 billion
D) 1 billion
Facebook's share price fell dramatically after its IPO because investors feared that: A) Facebook's new marketing solutions would be difficult to monetize. B) new social networks such as Instagram were cannibalizing Facebook's audience. C) privacy concerns were driving users away. D) Facebook would be unable to increase advertising revenues fast enough to justify its price.
D) Facebook would be unable to increase advertising revenues fast enough to justify its price.
Which of the following statements about e-commerce in the United States in 2014 is not true? A) Mobile e-commerce generates more revenue than social e-commerce. B) Over 160 million Americans are expected to make at least one purchase online. C) B2B e-commerce is about 10 times the size of B2C e-commerce. D) Growth rates for retail e-commerce are higher in the United States than in China.
D) Growth rates for retail e-commerce are higher in the United States than in China.
Which of the following involves a coupon or other promotional offer that appears in users' Twitter timeline? A) Promoted Tweet B) Promoted Trend C) Promoted Account D) Lead Generation Card
D) Lead Generation Card
Which of the following describes the basic Web policy of large firms during the Invention period? A) Integrate social networks and the mobile platform with Web site marketing. B) Emphasize the necessity for the Web to generate profits. C) Use the Web to sell complex goods and services online. D) Maintain a basic, static Web site depicting the firm's brand.
D) Maintain a basic, static Web site depicting the firm's brand.
Which of the following is not true about mobile marketing? A) Mobile marketing is the fastest growing form of online marketing. B) Mobile marketing is growing at around 60% a year. C) A substantial part of mobile marketing should be counted as social marketing. D) People use most of their mobile minutes while they are on the go.
D) People use most of their mobile minutes while they are on the go.
Which of the following statements about Pinterest is not true? A) Pinned photos and photo boards are available to all Pinterest users. B) Pinterest users are overwhelmingly female. C) Pinterest enables users to integrate their pins into their Facebook News Feeds and Twitter streams. D) Pinterest is the only one of the major social networks that does not accept paid advertising.
D) Pinterest is the only one of the major social networks that does not accept paid advertising.
The second most popular social network in terms of average minutes per visitor is: A) Google+. B) Pinterest. C) LinkedIn. D) Tumblr.
D) Tumblr.
Which of the following is not a major provider of mobile display advertising? A) MoPub B) iAd C) AdMob D) Webtrends
D) Webtrends
Encouraging users to click a Like button is an example of which step in the social marketing process? A) fan acquisition B) brand strength C) community D) amplification
D) amplification
Advantages of dynamic page generation include all of the following except: A) lowered menu costs. B) market segmentation. C) nearly cost-free price discrimination. D) client-side execution of programming
D) client-side execution of programming
Which system functionality must your Web site have in order to be able to personalize or customize a product for a client? A) an ad server B) a site tracking and reporting system C) an inventory management system D) customer on-site tracking
D) customer on-site tracking
Which of the following online advertising formats attracted the least amount of spending in 2014? A) search B) classifieds C) rich media D) e-mail
D) e-mail
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) expansion of e-commerce to include services as well as goods
D) expansion of e-commerce to include services as well as goods
Which of the following is one of the three primary societal issues related to e-commerce? A) liability B) anonymity C) equity D) intellectual property
D) intellectual property
A ________ specifically details how you plan to find customers and to sell your product. A) sales analysis B) business plan C) competitive strategy D) market strategy
D) market strategy
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
Your Facebook News Feed includes all of the following except: A) status updates. B) app activity. C) Likes. D) tweets.
D) tweets.
Which element of the business model addresses the question of why a customer should buy from the firm? A) revenue model B) competitive advantage C) market strategy D) value proposition
D) value proposition
Creating multiple variations of information goods and selling these to different market segments at different prices is called: A) bundling. B) customization. C) dynamic pricing. D) versioning.
D) versioning.
A firm that is first to market in a particular area and that moves quickly to gather market share is referred to as a(n) ________.
Answer: first mover
In ________ commerce, information is equally distributed, transaction costs are low, prices can be dynamically adjusted to reflect actual demand, intermediaries decline, and unfair competitive advantages are eliminated.
Answer: friction-free
The ________ discipline spans both the technical and behavioral approach to studying e-commerce.
Answer: information systems
The first evolutionary phase of e-commerce, from 1995 to 2000, characterized as technology-driven and ungoverned, was a period of ________.
Answer: innovation, invention
A(n) ________ removes a marketplace from a temporal and geographic location.
Answer: marketspace
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 ________ costs.
Answer: menu
A(n) ________ occurs when everyone in a group receives value because all participants use the same tool or product.
Answer: network effect
The total number of users or customers an e-commerce business can obtain is a measure of its ________.
Answer: reach
E-commerce is available just about everywhere and anytime. This is known as ________.
Answer: ubiquity
The term ________ refers to the practice of researching a product online before purchasing it at a physical store.
Answer: webrooming
Which of the following is a mobile photo-sharing application? A) YouTube B) Tumblr C) Wikipedia D) Instagram
D) Instagram
The online marketplace is characterized by persistent price dispersion.
True
Ubiquity enhances customer convenience.
True
________ is the most successful online encyclopedia.
Answer: Wikipedia
Price discovery refers to the ability of merchants to segment the market into groups willing to pay different prices.
False
Social e-commerce is the largest type of e-commerce.
False
The Web is a worldwide network of computer networks.
False
The emergence of mobile, social, and local e-commerce occurred during the Consolidation period of e-commerce.
False
The future of e-commerce is likely to include a decrease in government regulation both in the United States and worldwide.
False
The term e-business refers to the digital enabling of transactions and processes involving an exchange of value across organizational boundaries.
False
An asymmetry exists whenever all participants in a market have equivalent resources.
Answer: FALSE
First movers are always more successful than follower firms.
Answer: FALSE
________ refers to any disparity in relevant market information among parties in a transaction.
Answer: Information asymmetry
________ refers to the complexity and content of a message.
Answer: Richness
A value proposition defines how a company's product or service fulfills the needs of a customer.
Answer: TRUE
E-commerce has increased price competition in nearly all markets.
Answer: TRUE
Firms that fail to produce returns greater than alternative investments typically go out of business.
Answer: TRUE
Interactivity that enables product customization alters industry structure by reducing the threat of substitutes.
Answer: TRUE
Social technologies change industry structure by shifting programming and editorial decisions to consumers and creating substitute entertainment products.
Answer: TRUE
The ________ was the original "killer app" that made the Internet commercially interesting and extraordinarily popular.
Answer: World Wide Web, Web
The Internet has shown extraordinary growth patterns compared to other electronic technologies of the past.
True
The Internet provides a unique many-to-many model of mass communication.
True
The Reinvention period of e-commerce is as much a sociological phenomenon as it is a technological or business phenomenon.
True
The fact that e-commerce is conducted on the basis of universal standards reduces search costs for consumers.
True
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 original "killer app." 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.
The Internet's universal standards can change industry structure by lowering barriers to entry and intensifying competition within an industry.
Answer: TRUE
The ability to retain user attention and engagement is an important attribute for which revenue model? A) advertising revenue model B) subscription revenue model C) transaction fee revenue model D) sales revenue model
A) advertising revenue model
All of the following are major technology trends in e-commerce in 2014-2015 except: A) cloud computing enables the creation of Big Data. B) firms are turning to Web analytics to make sense out of Big Data. C) the mobile computing and communications platform creates a new platform for online transactions, marketing, advertising, and media viewing. D) computing and networking component prices continue to fall dramatically.
A) cloud computing enables the creation of Big Data.
Which of the following is an example of the subscription revenue model? A) eHarmony B) eBay C) E*Trade D) Twitter
A) eHarmony
Business-to-consumer (B2C) e-commerce in the United States: A) has grown at double-digit rates between 2010 and 2014. B) has less revenue than C2C e-commerce. C) now constitutes over 40% of the overall U.S. retail market. D) is growing more slowly as it confronts its own fundamental limitations.
A) has grown at double-digit rates between 2010 and 2014.
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.
A) one competitor has an advantage others cannot purchase.
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 13% a year through 2018. 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.
A) overall revenues from e-commerce will grow at an annualized rate of about 13% a year through 2018
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
A) richness
What is the primary revenue model for an e-distributor? A) sales B) transaction fee C) advertising D) subscription
A) sales
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.
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.
A) the use of the Internet, the Web, and mobile apps to transact business.
A perfect market is one in which: A) there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production. B) one firm develops an advantage based on a factor of production that other firms cannot purchase. C) one participant in the market has more resources than the others. D) competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage.
A) there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.
________ refers to the displacement of market middlemen and the creation of a new direct relationship between producers and consumers.
Answer: Disintermediation
A company's strong linkages with its customers decrease switching costs.
Answer: FALSE
In 2014, the world's online population was estimated to be around: A) 280 million. B) 2.8 billion. C) 28 billion. D) 280 billion.
B) 2.8 billion.
Retail chains account for around ________ % of online retail firm revenues. A) 15 B) 35 C) 75 D) 95
B) 35
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.
B) A nearly infinite set of suppliers compete against one another.
Which of the following is an example of a sharing economy company? A) YouTube B) Airbnb C) Tumblr D) Facebook
B) Airbnb
Which of the following is the top online retailer ranked by online sales? A) Apple B) Amazon C) Staples D) Walmart
B) Amazon
Which of the following companies utilizes a transaction fee revenue model? A) Yahoo B) E*Trade C) Twitter D) Sears
B) E*Trade
Which of the following statements is not true? A) No one academic perspective dominates research about e-commerce. B) Economists 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.
B) Economists take a purely technical approach to e-commerce.
Which of the following is not a major business trend in e-commerce in 2014-2015? 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) Sharing economy companies garner multi-billion dollar valuations. D) Mobile and social advertising platforms begin to challenge search engine marketing.
B) Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants.
Which of the following is not true about the use of apps? A) The average U.S. consumer spends over 2 hours and 45 minutes a day using apps. B) Users still spend less time using apps than they do using desktops or mobile Web sites. C) Apps are easier to control and monetize than Web sites. D) Over 175 million people in the United States 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 Web sites.
________ and ________ are typically the most easily identifiable aspects of a company's business model. A) Market strategy; market opportunity B) Value proposition; revenue model C) Value proposition; competitive environment D) Revenue model; market strategy
B) Value proposition; revenue model
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
B) computers/electronics
Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as: A) angel investors. B) crowdfunders. C) incubators. D) venture capital investors.
B) crowdfunders.
A firm's ________ describes how a firm will produce a superior return on invested capital. A) value proposition B) revenue model C) market strategy D) competitive advantage
B) revenue model
All of the following are characteristics of Web 2.0 sites and applications except: A) they support interactions among users. B) they rely solely on mobile access to the Web. C) they tend to rely on user-generated content. D) they tend to attract large audiences that provide marketers with extraordinary opportunities for targeted marketing and advertising.
B) they rely solely on mobile access to the Web.
In 2014, roughly ________ million people in the United States accessed the Internet via tablets. A) 47 B) 67 C) 147 D) 167
C) 147
In which year can e-commerce be said to have begun? A) 1983 B) 1985 C) 1995 D) 2001
C) 1995
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.
C) 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 Consolidation phase of e-commerce? A) predominance of pure online strategies B) emphasis on revenue growth versus profits C) brand extension and strengthening becomes more important that creating new brands D) shift to a technology-driven approach
C) brand extension and strengthening becomes more important that creating new brands
Which of the following involves a company giving away a certain level of product or services without charge, but then charging a fee for premium levels of the product or service? A) advertising revenue model B) subscription revenue model C) freemium strategy D) transaction fee revenue model
C) freemium strategy
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
Which of the following 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) EDI
C) the French Minitel
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
C) universal standards
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.
D) The market middlemen disappeared.
All of the following were visions of e-commerce expressed during the early years of e-commerce except: A) a nearly perfect information marketspace. B) friction-free commerce. C) disintermediation. D) fast follower advantage.
D) fast follower advantage.
Interactivity in the context of e-commerce provides which of the following functionalities? A) the ability to physically touch and manipulate a product B) 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 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)
D) workgroup automation (e.g., document sharing)
Cost transparency refers to the ability of consumers to discover the actual costs merchants pay for products.
True
Personalization involves targeting marketing messages to specific individuals by adjusting the message based upon a consumer's preferences or past purchasing behavior.
True
Retail e-commerce in the United States is expected to continue growing at double-digit growth rates in 2014-2015.
True
