Deck 7: Understanding E Business

Question 1

The traditional intermediary for the travel industry is a retail store.

Answer 1

False

Question 2

Cloud computing is a type of distributed computing.

Answer 2

True

Question 3

A click-through is a process that involves clicking a webpage ad to go directly to the advertised website.

Answer 3

True

Question 4

Some B2C e-businesses employ customization by allowing customers to create individualized products designed specifically for them by indicating size, style, goals, or other preferences.

Question 5

The network effect refers to the decreasing value of a network as the network grows.

Question 6

Some pure-play e-retailers succeed by targeting a niche market instead of competing with larger e-businesses.

Question 7

In the 1970s, banks began exchanging money electronically through the Automated Clearing House (ACH) network.

Question 8

Consumers Union is a nonproift organization following the B2C subscription e-business model.

Question 9

Auction services in which many buyers are bidding for an item offered by a single seller are called forward auctions.

Question 10

Orbitz Worldwide is an example of reintermediation for the travel industry.

Question 11

A company selling website hosting services to other companies is a B2C e-business.

Question 12

Edmunds.com, Autobytel, Abebooks, and Shopzilla are examples of infomediaries.

Question 13

An e-business that runs an online forward auction is following the B2C e-business model.

Question 14

Several business advantages for companies conducting activities online include worldwide sales opportunities, reduced transaction and purchasing costs, and access to small, niche markets.

Question 15

E-businesses can exploit web interactivity by personalizing and customizing web content to encourage customer loyalty.

Question 16

The most famous example of a successful pure-play e-retailer is eToys.

Question 17

Business.com is an example of a B2B e-business that aggregates business information for other businesses.

Question 18

The effectiveness of a particular website ad often is measured by the per-click revenue method.

Question 19

An e-business can redefine its market by removing traditional marketplace intermediaries or by creating new ways to add value to business transactions.

Question 20

Dell arguably is one of the most famous examples of reintermediation.

Question 21

An e-business applies for a gateway account at a financial institution by providing general business information, such as its size, how long it has been in business, its credit history, and the type of cards accepted.
______________________

Question 22

____ is a manual process that allows a visitor to manage webpage content by selecting viewing preferences or by creating and updating a personal profile.

A) Interactivity
B) Personalization
C) Reintermediation
D) Customization

Question 23

Electronic business activities originated in the ____.

A) 1980s and 1990s
B) 1960s and 1970s
C) 1940s and 1950s
D) 1920s and 1930s

Question 24

A business entity that brings buyers and sellers together is called a(n) ____.

A) market
B) intermediary
C) partner
D) exchange

Question 25

An application service provider (ASP) develops and maintains its own business application software and then provides it to its customers using several business models.

Question 26

Online businesses that market and sell directly to government agencies are following a business-to-government (B2G) e-business model.

Question 27

An automatic process that tailors webpage content to fit the profile of a specific target audience, or that automatically tailors webpage content for an individual visitor based on his or her actions at a site is called ____.

A) customization
B) the network effect
C) personalization
D) disintermediation

Question 28

Many e-businesses elect to save time and money by using business software created by an  application service provider (ASP) .
____________________

Question 29

____ combines resources from many sources to reach a common goal.

A) Web hosting
B) Distributed computing
C) Managed hosting
D) Grid computing

Question 30

Participants in an EDI exchange of business data are called ____.

A) trading partners
B) customers
C) vendors
D) suppliers

Question 31

____ refers to combining many networked computers and devices to create a virtual super computer that can perform complex tasks.

A) Web hosting
B) Grid computing
C) Managed hosting
D) Distributed computing

Question 32

An important e-business success factor that refers to the increasing value of a network as the network grows is the ____ effect.

A) personalization
B) network
C) disintermediation
D) customization

Question 33

Installed storefront software uses webpage templates that allow stores to be created and products to be added to an online catalog in just a few minutes.
______________________

Question 34

E-businesses may pay a higher discount rate than similar brick-and-mortar stores because of the card not present/card holder not present risk.

Question 35

An extranet consists of all the entities - raw material providers, manufacturers, distributors, wholesalers, retailers, and others - involved in creating and distributing products to end users.

Question 36

____ occurs when a market removes its traditional intermediaries.

A) Reintermediation
B) Intermediary reduction
C) Disintermediation
D) Intermediary replacement

Question 37

The system that allows money to be transferred between banks electronically without the exchange of paper currency is ____.

A) electronic data interchange (EDI)
B) Internet banking (IB)
C) electronic funds transfer (EFT)
D) virtual private banking (VPB)

Question 38

Modified True/False
CATEX and Automotix are both examples of B2B subscriptions .
______________________

Question 39

Larger e-businesses with hundreds of complex transactions might choose to contract for shared hosting services.
_______________________

Question 40

Dedicated hosting services are inexpensive and attractive for small e-businesses that lack the facilities and expertise to manage their own web servers.

Question 41

On September 1, 1997, AuctionWeb became ____.

A) CATEX
B) Etsy
C) Amazon
D) eBay

Question 42

Squidoo, as shown in the accompanying figure, and HubPages are platforms for ____ websites.

A) user-generated
B) e-book
C) trading partner
D) order fulfillment

Question 43

A C2B e-business allows a buyer to name his or her own price for specific goods or services in a process called a ____.

A) supply chain
B) forward auction
C) network effect
D) reverse auction

Question 44

Some B2B e-businesses ____ business information for other businesses and generate revenue from directory listing fees and advertising.

A) chargeback
B) click-through
C) aggregate
D) distribute

Question 45

In a ____ hosting arrangement, multiple e-businesses share a single web server owned by a hosting company.

A) shared
B) dedicated
C) managed
D) targeted

Question 46

The term ____ refers to an e-business that gathers and organizes large amounts of data and information, and then acts as an intermediary between those who want the information and those who supply the information.

A) infomediary
B) dedicated hosting
C) content delivery network
D) niche market

Question 47

A business ____ is the way a company operates to generate revenue, create profits, and continue as a viable business entity.

A) plan
B) organization
C) model
D) website

Question 48

Some e-businesses that generate revenue from advertising charge____ fees for certain premium services.

A) personalization
B) subscription
C) infomediary
D) affiliate

Question 49

____ exchanges follow a predetermined set of exchange rules that determine how buyers and sellers communicate with each other throughout the exchange, how they negotiate prices with each other, how they make and accept payments, and also determine product delivery guidelines.

A) B2B
B) C2B
C) C2C
D) B2E

Question 50

One method to measure the effectiveness of a particular website ad is the ____ revenue method.

A) ASP
B) brick-and-click
C) value-added
D) per-click

Question 51

Visitors can go directly to an advertised website by clicking an ad in a process called a ____.

A) chargeback
B) per-click
C) click-through
D) disintermediation

Question 52

A(n) ____ program is a marketing tool for the e-business that sponsors it and a source of revenue for an e-business that participates in the program.

A) incentive marketing
B) affiliate marketing
C) bonus marketing
D) reward marketing

Question 53

____ counts the number of times a page that includes an ad is loaded in a browser.

A) CDN
B) CPI
C) ACH
D) VAN

Question 54

Some pure-play e-retailers succeed by avoiding competition with larger e-businesses and, instead, target a(n) ____ market.

A) niche
B) affiliate
C) supply chain
D) intermediary

Question 55

____ transactions account for the largest share of total e-business revenue.

A) B2C
B) C2C
C) C2B
D) B2B

Question 56

Transaction fees, sales commissions, subscription or membership fees, and personal ad fees are ways in which ____ e-businesses generate revenue.

A) C2C
B) B2B
C) B2C
D) C2B

Question 57

____ is a C2C e-business that sells online classified ad space to individuals trying to sell boats, cars, and other items.

A) TraderOnline
B) HubPages
C) Squidoo
D) Carbonite

Question 58

Early B2C e-retailers that started life in the online marketspace as completely new businesses with no existing brick-and-mortar stores or catalog operations are referred to as ____ e-retailers.

A) pure-play
B) per-click
C) niche
D) click through

Question 59

AdminiTrack and Salesforce are examples of ____.

A) NSPs
B) VPNs
C) ASPs
D) VANs

Question 60

Businesses actively solicit reviews of their sites by participants at social ____ or tagging sites to build traffic to their sites.

A) intermediation
B) bookmarking
C) infomediary
D) customization

Question 61

Modified Multiple Choice
Which of the following e-businesses follow the C2C e-business model?

A) Land's End
B) eBay
C) etsy
D) Fedmarket

Question 62

Paying a credit card bill online and using an ATM are examples of _________________________ in action.

Question 63

A(n) ____ is a private network that uses Internet technologies to connect a business with its suppliers and business partners.

A) VAN
B) supply chain
C) intranet
D) extranet

Question 64

The _________________________ network connects all U.S. financial institutions that exchange money electronically.

Question 65

____ software tracks items selected for purchase and handles the checkout process.

A) Auction
B) Merchant
C) Shopping cart
D) Payment gateway

Question 66

Modified Multiple Choice
Which of the following are traditional market intermediaries?

A) Sporting goods industry
B) Travel industry
C) Real estate industry
D) Insurance industry

Question 67

Payment-processing services that authorize online credit card transactions while customers wait are called ____.

A) merchant accounts
B) third-party fulfillment houses
C) ASPs
D) payment gateways

Question 68

An important e-business success factor, called the ____________________, refers to the increasing value of a network as the network grows.

Question 69

A ____ is a return of funds to a credit card company resulting from a card holder's refusal to pay a credit card charge.

A) reverse auction
B) discount
C) forward auction
D) chargeback

Question 70

Before the Internet became a viable alternative for transmitting data, EDI exchange of business information between trading partners occurred over private telecommunications networks called _________________________.

Question 71

____ technologies are fostering a revolution in the way businesses interact with their partners, particularly their suppliers.

A) Television
B) Videoconferencing
C) Internet
D) Storefront

Question 72

____ software resides on an e-retailer's web server and is used by the e-retailer to create and manage a complex e-retail site.

A) ASP
B) Installed storefront
C) Web warehouse
D) Payment gateway

Question 73

Geography, time, and _________________________ are limiting factors for any brick-and-mortar business.

Question 74

Web hosting companies, such as the one shown in the accompanying figure, offer a variety of e-business hosting arrangements including: ____________________.

A) colocation
B) dedicated hosting
C) shared hosting
D) replacement hosting

Question 75

The ____ is the percentage of each transaction that a financial institution will charge the e-business.

A) chargeback rate
B) discount rate
C) risk rate
D) payment rate

Question 76

A ____ is a dedicated network of servers located in different geographical areas of the country that store, or cache, webpage content from high-traffic websites for a fee.

A) content delivery network
B) webpage delivery system
C) hosted website system
D) content storage network

Question 77

Modified Multiple Choice
Which of the following e-businesses follow the B2G e-business model?

A) eBay
B) Onvia
C) BidNet
D) Bidmain

Question 78

Modified Multiple Choice
Which of the following are viable revenue-generation methods for a B2B e-business?

A) Business directory listing fees
B) Website advertising
C) Transaction fees
D) Sales commissions

Question 79

____ is an e-retailer's process for packaging and shipping products.

A) Value-added networking
B) Managed hosting
C) Order fulfillment
D) Dedicated hosting

Question 80

____ uses webpage templates that allow you to create a store and add products to your online catalog in just a few minutes.

A) Hosted storefront software
B) Installed storefront software
C) Managed hosting software
D) Shopping cart software