Question 1

When embarking on ecommerce, companies need not worry about customer security and privacy.

Accepted Answer

Companies need to ensure that their ecommerce platform is secure and that they are implementing proper measures to protect customer information such as encryption, secure payment portals, and data protection policies. Neglecting these measures can result in breaches and compromise of customer data, leading to potential legal and reputational consequences.

Question 2

Social capital adds value in four ways: Information, Influence, Employment, Personal reinforcement.

Accepted Answer

Social capital typically adds value through information, influence, social credentials, and personal reinforcement, but employment is not commonly listed as one of the four ways.

Question 3

Ecommerce is the buying and selling of goods and services over public and private computer networks.

Accepted Answer

Ecommerce involves conducting business online through computer networks, whether they be public (such as the internet) or private (such as a company's internal network).

Question 4

Merchant companies take title to the goods they sell.

Accepted Answer

Merchant companies purchase the goods from the manufacturers or wholesalers and take title to them before selling them to customers. This means that they assume ownership and responsibility for the goods until they are sold to the end-consumer.

Question 5

The people you know least can contribute the most to your network.

Accepted Answer

This is true because people who are not in your immediate circle can bring different perspectives, experiences, and opportunities to your network. By expanding your network to include a diverse group of individuals, you increase the likelihood of discovering new ideas and opportunities for personal and professional growth.

Question 6

Ecommerce may require interconnectedness of the entire ERP process.

Accepted Answer

Ecommerce involves multiple processes such as product listing, order processing, inventory management, and shipping. To streamline these processes, it may be necessary to connect the ecommerce platform with ERP software to ensure efficient data flow and operations management. Therefore, interconnectedness of the entire ERP process may be required for ecommerce.

Question 7

B2C, or business-to-consumer, engages in sales between a supplier and a retail customer.

Accepted Answer

The answer of B2C, or business-to-consumer, engages in sales between...

Question 8

A manufacturer that sells office goods hardware to city hall over the internet is engaging in B2G commerce.

Accepted Answer

B2G (Business-to-Government) commerce refers to the exchange of goods, services or information between businesses and government entities. In this case, the manufacturer is selling office hardware to city hall, which is a government entity, through the internet, making it a B2G transaction.

Question 9

Modern consumers often know more about a product or service than does the person facilitating the sale.

Accepted Answer

With the abundance of information available online, consumers can easily research products and services before making a purchase. This means that they often have more knowledge about the product or service than the salesperson facilitating the sale.

Question 10

Checking the weather on theweathernetwork.com or yahoo.ca is an example of ecommerce.

Accepted Answer

Checking the weather on a website is not an example of ecommerce, which involves buying or selling goods or services online.

Question 11

Priceline.com is an example of an electronic exchange used by consumers.

Accepted Answer

Priceline.com is an electronic exchange used by consumers to compare prices and purchase travel-related goods and services.

Question 12

You gain social capital by adding more friends to your network and strengthening relationships.

Accepted Answer

Social capital refers to the benefits one gains from their social networks, such as support, access to resources, and opportunities. By adding more friends to your network and strengthening relationships, you increase the potential benefits you can gain from those connections, thus increasing your social capital.

Question 13

Generally speaking, merchant companies include B2C, B2B and B2G enterprises.

Accepted Answer

Merchant companies can include businesses that sell to consumers (B2C), businesses that sell to other businesses (B2B), and businesses that sell to government entities (B2G).

Question 14

Ecommerce can be used to determine price elasticity.

Accepted Answer

Ecommerce provides a platform for A/B testing and analysis, which allows businesses to experiment with different prices and observe customer responses to determine price elasticity.

Question 15

One advantage of IT is the ability to keep track of many more people and enhance personalization.

Accepted Answer

With the use of IT tools such as databases, customer relationship management (CRM) systems, and marketing automation software, it is possible to collect and analyze large amounts of data about customers and personalize the customer experience. This allows businesses to keep track of their customers' behavior and preferences, and tailor their products and services accordingly.

Question 16

Disintermediation is the elimination of sales taxes when selling online.

Accepted Answer

Disintermediation refers to the elimination of intermediaries or middlemen in the supply chain or distribution process, not sales taxes.

Question 17

Dell Computer engages in B2B, B2C, and B2G online commerce.

Accepted Answer

Dell Computer engages in B2B (business-to-business) by selling to other businesses, B2C (business-to-consumer) by selling to individual consumers, and B2G (business-to-government) by selling to government agencies.

Question 18

Nonmerchant companies take title to the goods they sell.

Accepted Answer

Nonmerchant companies do not take title to the goods they sell. They act as intermediaries between the buyer and the seller and do not own the goods being sold.

Question 19

Disintermediation can have the overall effect of increasing margins for manufacturers and lowering consumer prices.

Accepted Answer

Disintermediation involves removing intermediaries between a manufacturer and the end consumer, which can result in lower costs for the manufacturer and potentially lower prices for the consumer. As a result, manufacturers may see increased margins while consumers enjoy lower prices.

Question 20

Online auctions such as eBay are the most common form of nonmerchant ecommerce.

Accepted Answer

Online auctions, such as eBay, are a common form of nonmerchant ecommerce where individuals and businesses can buy and sell goods and services through a bidding process. Therefore, the statement is true.

Quiz 13: E-commerce, Social Networking, and Web 20