Deck 7: E-Business and E-Commerce

Question 1

Forward auctions are auctions that sellers use as a channel to many potential buyers.

Answer 1

True

Question 2

In a forward auction, the highest bid wins.

Answer 2

True

Question 3

A type of viral marketing involves sending information about your product to friends.

Answer 3

True

Question 4

Visiting the Web site of a car manufacturer (e.g., HYPERLINK "http://www.gm.com" www.gm.com), entering the specifications for the car you want, and then picking up your car at your local dealership is an example of a clicks and mortar organization, or partial electronic commerce.

Question 5

It is more difficult but possible to sell luxury goods online.

Question 6

eBay is a good example of business-to-consumer electronic commerce.

Question 7

Banners are the most common form of advertisement on the Internet.

Question 8

In traditional commerce, one or more of the following can be digital: the product or service, the process, and the delivery agent.

Question 9

Virtual banks are those banks that are dedicated only to Internet transactions.

Question 10

Hacking is the indiscriminate distribution of electronic ads without permission of the receiver.

Question 11

A virtual bank involves conducting banking activities from home, a place of business, or on the road in addition to a physical bank location.

Question 12

You can make a purchase in a referral mall.

Question 13

Channel conflict occurs when click-and-mortar companies have problems with their regular distributors when they sell directly to customers online.

Question 14

Even though B2C EC is much larger by volume, B2B is more complex.

Question 15

E-commerce is a broader definition of e-business.

Question 16

You decide to start a landscaping business called Trim Grass. You type HYPERLINK "http://www.TrimGrass.com" www.TrimGrass.com in a Web browser, and no page with that name appears. The domain name is therefore available.

Question 17

An electronic storefront is a Web site on the Internet that represents a single store.

Question 18

Electronic malls are collections of individual shops under a single Internet address.

Question 19

Internet advertising is impersonal, one-way mass communication.

Question 20

Selling products such as books and computers on the Internet may reduce vendors' selling costs by 20 to 40 percent, with further reductions being difficult because the products must be delivered physically.

Question 21

Selling luxury items online is as easy as selling books and DVDs.

Question 22

The degree of digitization relates to all of the following except:

A)The product or service sold
B)The process by which the product is produced
C)The delivery agent or intermediary
D)The size of e-commerce transactions
E)None of these

Question 23

__________ represents the vast majority of e-commerce.

A)B2B
B)B2C
C)C2C
D)G2C

Question 24

Horizontal exchanges connect buyers and sellers across many industries.

Question 25

You decide to start a landscaping business called Trim Grass. One of your services will be to perform fertilizer treatments. You will need to buy a great deal of fertilizer for your many clients. You can use all of the following methods to purchase the fertilizer except:

A)Forward auction
B)Reverse auction
C)Name your Own Price
D)Electronic Marketplace
E)Multichanneling

Question 26

The key mechanisms in the sell-side marketplace are customized electronic catalogs and reverse auctions.

Question 27

When multiple buyers combine their orders so that they constitute a large volume and therefore attract more seller attention, it is called group purchasing.

Question 28

Cybersquatting is illegal.

Question 29

_____, which is a broader concept than _____, is the buying and selling of goods and services, as well as servicing customers, collaborating with business partners, and performing transactions within an organization.

A)Business-to-business electronic commerce, business-to-customer electronic commerce
B)Electronic commerce, electronic business
C)Business-to-customer electronic commerce, business-to-business electronic commerce
D)Business-to-business electronic commerce, intrabusiness electronic commerce
E)Electronic business, electronic commerce

Question 30

Which of the following is a disadvantage of click-and-mortar organizations?

A)Limited geographical reach
B)Added complexity combining two different environments
C)Customers uncomfortable with online transactions
D)No face-to-face interaction with customers

Question 31

In _______ e-commerce, the sellers and buyers are organizations.

A)government-to-citizen
B)consumer-to-consumer
C)business-to-business
D)business-to-consumer
E)consumer-to-business

Question 32

The buy-side marketplace is similar to the business-to-consumer model.

Question 33

The _____________ strategy for large retailers, with its accompanying high overhead costs, has become a liability rather than an asset.

A)Brick-and-mortar
B)Business-to-consumer
C)Clicks-and-mortar
D)Virtual

Question 34

Domain tasting is a practice of registrants using the five-day "grace period" at the beginning of a domain registration to profit from pay-per-click advertising.

Question 35

In ________ e-commerce, an organization provides information and services to its workers.

A)business-to-employee
B)consumer-to-consumer
C)consumer-to-business
D)business-to-consumer
E)government-to-business

Question 36

You decide to start a landscaping business called Trim Grass. You created a Web site, but it doesn't seem to be attracting any clients. So, you decide to explore advertising on the Web. Which of the following advertising methods probably would not be beneficial?

A)Banner ads
B)Pop-up or pop-under ads
C)Spamming
D)Permission marketing
E)Viral marketing

Question 37

____________ organizations have a limited geographical reach.

A)Brick-and-mortar
B)Business-to-consumer
C)Click-and-mortar
D)Virtual

Question 38

Business-to-consumer applications comprise the majority of electronic commerce volume.

Question 39

Forward auctions are the major method used in buy-side marketplaces.

Question 40

Channel conflict occurs when manufacturers disintermediate their channel partners by selling their products directly to consumers.

Question 41

____________ advertising is when the company only pays for measurable results.

A)Brand
B)Click-through
C)Impression-based
D)Performance-based

Question 42

Which of the following statements regarding the relationship between electronic commerce and search is not correct?

A)Purchases often follow successful online searches.
B)Shopping carts are often abandoned after unsuccessful online searches.
C)Retailers will provide fewer product details to avoid information overload for customers.
D)Customers will be able to find the closest store offering the product that they want.
E)Customers will have more relevant product information in the near future.

Question 43

A vendor asks its business partners to place logos or banners on their Web sites. If customers click on a logo, visit the vendor's site, and make a purchase, then the vendor pays a commission to the partner. This scenario illustrates which business model?

A)Find-the-best-price
B)Electronic tendering system
C)Name-your-own-price
D)Online direct marketing
E)Affiliate marketing

Question 44

How are other retailers competing with Amazon?

A)They are closing their stores and moving toward online only.
B)They are shipping products from more warehouses just like Amazon.
C)They are opening more stores to increase their presence.
D) They are shipping directly from their stores.
E)None of the above

Question 45

Which of the following is a benefit of e-commerce to customers?

A)Makes national and international markets more accessible.
B)Lowering costs of processing, distributing, and retrieving information.
C)Access a vast number of products and services around the clock.
D)Ability to easily and conveniently deliver information, services, and products to people in cities, rural areas, and developing countries.

Question 46

_______ e-commerce is also known as e-tailing.

A)Business-to-business
B)Collaborative commerce
C)Intrabusiness
D)Business-to-consumer
E)Consumer-to-business

Question 47

In a reverse auction, the __________ bidder wins.

A)lowest
B)highest
C)neutral
D)nobody wins since this auction type doesn't exist

Question 48

Which type of electronic commerce does Amazon practice?

A)Business-to-employee
B)Consumer-to-consumer
C)Consumer- to-business
D)Business-to-consumer
E)Employee-to-business

Question 49

In which of the following business models do businesses request quotes from suppliers and use B2B with a reverse auction mechanism?

A)Find-the-best-price
B)Electronic tendering system
C)Name-your-own-price
D)Online direct marketing
E)Affiliate marketing

Question 50

The advantages of electronic commerce for consumers include all of the following except:

A)You can buy from home 24 hours per day, 7 days per week.
B)You have a wider variety of products to choose from.
C)You typically cannot access additional information, so you do not have information overload.
D)You can easily compare prices and features.
E)You can find unique items.

Question 51

In _____ auctions, there is one buyer who wants to buy a product. Suppliers submit bids, and the lowest bid wins.

A)forward
B)static
C)reverse
D)physical
E)simple

Question 52

_____ auctions are the most common auction model for large purchases.

A)Forward
B)Static
C)Reverse
D)Physical
E)Simple

Question 53

___________ marketing encourages receivers to send information about products/services to their friends.

A)Affiliate
B)Electronic
C)Group
D)Viral

Question 54

Direct payment of Employment Insurance benefits is an example of ______ e-commerce.

A)government-to-citizen
B)consumer-to-consumer
C)consumer-to-business
D)business-to-consumer
E)business-to-business

Question 55

___________ involves business requesting quotes from suppliers.

A)Find-the-best-price
B)Electronic tendering system
C)Name-your-own-price
D)Online direct marketing
E)Affiliate marketing

Question 56

eBay uses a _____ auction.

A)forward
B)static
C)reverse
D)physical
E)simple

Question 57

If you are a worker managing your fringe benefits over your company's intranet, you are engaging in _________ e-commerce.

A)business-to-business
B)business-to-consumer
C)consumer-to-consumer
D)business-to-employee
E)government-to-citizen

Question 58

_____ auctions employ a request for quotation.

A)Forward
B)Static
C)Reverse
D)Physical
E)Simple

Question 59

Which of the following are luxury shoppers' requirements that a Web site could not originally provide?

A)Hands-on customer service
B)Guidance on the latest fashions
C)Trying on/looking at the products
D)All of the above are things that couldn't originally be provided

Question 60

Which type of electronic commerce is the largest by volume?

A)Business-to-employee
B)Consumer-to-consumer
C)Business-to-business
D)Business-to-consumer
E)None of these

Question 61

_____ offer(s)consumers incentives to accept advertising and e-mail voluntarily.

A)Viral marketing
B)Personalized marketing
C)Permission marketing
D)Paper catalogs
E)Direct mail

Question 62

____________ exchanges connect buyers and sellers in a given industry.

A)Functional
B)Horizontal
C)Mixed
D)Vertical

Question 63

Internet advertising improves on traditional advertising in all of the following ways except:

A)Internet ads can be updated at any time at minimal cost.
B)Internet ads can reach large numbers of potential buyers all over the world.
C)Internet ads are always more effective than other types of advertising.
D)Internet ads can make effective use of multimedia.
E)Internet ads are current.

Question 64

_____ refers to online word-of-mouth marketing.

A)Permission marketing
B)One-to-one marketing
C)Personalized marketing
D)Viral marketing
E)Direct mail

Question 65

In the _____ marketplace model, EC technology is used to streamline the purchasing process in order to reduce the cost of items purchased, the administrative cost of procurement, and the purchasing cycle time.

A)buy-side
B)sell-side
C)auctions
D)group purchasing
E)electronic exchange

Question 66

Cyberbanking offers all of the following advantages except:

A)It is convenient for customers.
B)It saves time for customers.
C)It includes inexpensive transactions for the bank.
D)It can help recruit remote customers.
E)It is more expensive for the customer.

Question 67

In the _____ B2B application, the orders of many buyers are aggregated so that they comprise a large volume, in order to merit more seller attention.

A)buy-side
B)sell-side
C)auctions
D)group purchasing
E)electronic exchange

Question 68

Which of the following is not an electronic commerce application?

A)Home banking
B)Buying stocks
C)Evaluating an employee
D)Conducting an auction
E)Buying real estate

Question 69

The key mechanisms of the _____ marketplace model are forward auctions and electronic catalogs that can be customized for each large buyer.

A)buy-side
B)sell-side
C)group purchasing
D)desktop purchasing
E)electronic exchange

Question 70

An electronic storefront represents ____________.

A)the Internet
B)a single store
C)multiple stores
D)a web page

Question 71

Which of the following is a problem that e-commerce can cause for the airline industry?

A)Too many fares
B)Mistakes in fares
C)Too few fares
D)No fares offered on certain routes
E)Too many fares offered on certain routes

Question 72

____________ exchanges are used mostly for MRO materials.

A)Functional
B)Horizontal
C)Mixed
D)Vertical

Question 73

__________ are electronic billboards.

A)Advertisements
B)Banners
C)Pop-up ads
D)Pop-under ads

Question 74

Difficulties in order fulfillment are most closely associated with which type of electronic commerce?

A)Business-to-business
B)Business-to-consumer
C)Government-to-citizen
D)Business-to-employee
E)Mobile commerce

Question 75

The _________ marketplace is similar to the B2C model in which the buyer comes to the seller's site, views catalogs, and places and order.

A)buy-side
B)sell-side
C)reverse auction
D)e-procurement

Question 76

In the _____ marketplace model, organizations attempt to sell their products or services to other organizations electronically.

A)buy-side
B)sell-side
C)group purchasing
D)desktop purchasing
E)electronic exchange

Question 77

Which of the following is not an advantage of e-tailing?

A)You can buy from home, 24 hours per day.
B)You have only a few products to choose from.
C)You can obtain detailed information on products.
D)You can compare competitors' products and prices.
E)All of these

Question 78

A _____ is automatically launched by some trigger and appears behind the active window.

A)keyword banner
B)random banner
C)pop-up ad
D)pop-under ad
E)text box

Question 79

In _____, direct and indirect materials in one industry are purchased on an as-needed basis.

A)horizontal exchanges
B)vertical exchanges
C)buy-side marketplaces
D)functional exchanges
E)sell-side marketplaces

Question 80

________ is the process whereby a fully automated electronic commerce transaction eliminates middlemen.

A)Disintegration
B)Supply chain integration
C)Direct sales
D)Disintermediation
E)Value-added services