Deck 3: Retailing in Electronic Commerce: Products and Services

Question 1

Sales of goods on the Internet are no longer increasing rapidly because of the bankruptcy of numerous dot-coms.

Answer 1

False

Question 2

Competition among online travel e-tailers is fierce,with low margins,little customer loyalty,and increasing commoditization of products and services.

Answer 2

True

Question 3

Target,Sears,and Macys are click-and-mortar businesses selling in a multichannel business model.

Answer 3

True

Question 4

When compared to the traditional job market,the online job market has low reliability.

Question 5

WAYN is a social networking Web site with a goal of uniting college student travelers from North America.

Question 6

Click-and-mortar retailers are brick-and-mortar retailers that offer a transactional Web site from which to conduct business.

Question 7

Event-based commerce is a wireless based technology in which vendors send advertisements relevant to the location where customers are at a given time.

Question 8

Viral marketing,market makers,and information portals are types of B2C business models.

Question 9

According to Internet Retailer,in 2009,approximately 20 percent of adult U.S.Internet users shopped online and/or research offline sales online.

Question 10

E-tailing is retailing conducted online over the Internet.

Question 11

Direct marketing describes marketing that takes place over the Internet involving wholesalers and retailers.

Question 12

Types of online malls include referring directories and event shopping malls.

Question 13

A retailer is a sales intermediary,a seller that operates between manufacturers and customers.

Question 14

As the number of Internet users reaches saturation,the challenge for e-retailers now is to increase the amount that shoppers spend online.

Question 15

With all else being equal in the online environment,goods that are relatively expensive or frequently purchased are expected to have higher sales volumes than goods that are inexpensive or infrequently purchased.

Question 16

Amazon is recognized as an online leader in creating sales through customer intimacy and customer relationship management (CRM).

Question 17

When new capabilities are required to conduct EC,for example capabilities in logistics and distribution,one method is to obtain them through external strategic alliances.

Question 18

A business model is a description of how an organization intends to generate revenue through its business operations.

Question 19

Private shopping clubs and group gifting online are two variations of the personalized event shopping model.

Question 20

The electronic job market creates high turnover costs for employers by facilitating employees' movement to better jobs.

Question 21

The direct sale of digital content through digital download allows a producer of digital content to bypass the traditional retail channel,thereby reducing overall costs and capturing greater profits.

Question 22

Each of the following describes retailing except

A) a retailer is a sales intermediary.
B) many manufacturers sell directly to consumers and through wholesalers and retailers.
C) e-tailing makes it easier for a manufacturer to sell directly to customers by cutting out the intermediary.
D) companies that produce a large number of products, such as Procter & Gamble, do not need retailers for efficient distribution.

Question 23

Only a few pure-play virtual banks failed by 2003 due to lack of financial viability.

Question 24

Assessing their market value is an advantage of the electronic job market for employers.

Question 25

An on-demand delivery service is express delivery made fairly quickly after an online order is received.

Question 26

Retailers who sell over the Internet are

A) e-tailers.
B) disintermediaries.
C) marketing managers.
D) multichannel marketers.

Question 27

Both online banks and click-and-mortar banks carry some risks and problems,especially in international banking,including hackers and liquidity risk.

Question 28

Electronic coughing describes the attention-grabbing behavior of agencies that go out to consumer environments and boast about how great a brand or item is in order to spread the word.

Question 29

According to Internet Retailer (2009),approximately ________ percent of adult U.S.Internet users shop online or research offline sales online.

A) 25
B) 60
C) 65
D) 85

Question 30

Electronic banking refers to the various banking activities conducted from home or the road using an Internet connection.

Question 31

A major problem in B2C is the increasing rate of online fraud.

Question 32

Many insurance companies use a dual strategy,keeping human agents but also selling online.

Question 33

Each of the following sells well on the Internet except

A) tobacco.
B) travel.
C) cars.
D) health and beauty.

Question 34

As a paid content category,dating services are the largest attractor of Internet users.

Question 35

An electronic pouch is a program that expedites online shopping by containing a shopper's information.

Question 36

Channel conflict occurs when the addition of an online distribution channel causes problems with existing distribution channels.

Question 37

Amazon.com experienced each of the following except

A) maintaining its position as the number one B2C money-making EC site in the world.
B) driving growth largely by product diversification and its international presence.
C) declaring its first profit in 2005.
D) patenting its 1-click feature which allows customers to place an order in a secure manner without having to enter personal, billing, and shipping information each time they shop.

Question 38

The major risk of online trading is security.

Question 39

Virtual banks have a brick-and-mortar location and also conduct online transactions.

Question 40

Online banking and other financial services are growing slowly on the Internet because many customers are not yet embracing it.

Question 41

A business model where a company sells in multiple marketing channels simultaneously best defines

A) multichannel business model.
B) concurrent business model.
C) direct marketing.
D) revenue enhancement.

Question 42

A B2C model in which sales are done to meet the needs of special events describes

A) anniversary shopping.
B) time-based shopping.
C) event shopping.
D) choreographed shopping.

Question 43

Based on distribution channel used,Dell's B2C business model can be classified as a

A) direct marketing by mail-order company.
B) pure-play e-tailer.
C) click-and-mortar retailer.
D) direct sales by manufacturer.

Question 44

Firms that sell directly to consumers over the Internet without maintaining a physical sales channel describes

A) click-and-mortar stores.
B) viral marketers.
C) virtual e-tailers.
D) social network.

Question 45

With all else being equal in the online environment,goods with any of the following product characteristics are expected to facilitate greater online sales except

A) relatively expensive items.
B) high brand recognition.
C) digitized format.
D) frequently purchased items.

Question 46

Major advantages of e-commerce to buyers include

A) finding products and services that are not available in local stores.
B) buying in groups.
C) shopping globally.
D) all of the above.

Question 47

Major advantages of e-commerce to sellers include each of the following except

A) charging less for items.
B) lower supply chain costs.
C) reacting quickly to customer's needs.
D) competing with larger companies.

Question 48

Which of the following is a characteristic of e-tailing?

A) Competition is local.
B) Customer relations are less stable due to anonymous contacts.
C) Price changes are expensive, but can be done at anytime.
D) Fewer resources are needed to increase customer loyalty.

Question 49

In an e-market,PayPal serves as a(n)

A) intermediary.
B) service provider.
C) content disseminator.
D) viral marketer.

Question 50

The competitive advantages of a "pull" vehicle distribution process include each of the following except

A) improved customer satisfaction and better pricing.
B) large cost savings in finished vehicle inventory carrying costs.
C) better cash flow to the manufacturers.
D) creating a build-to-stock environment.

Question 51

A company that creates and manages many-to-many markets is called a

A) market maker.
B) transaction broker.
C) content disseminator.
D) viral marketer.

Question 52

The B2C business model used by QVC,Sharper Image,and Lands' End is

A) direct marketing by mail-order companies.
B) direct sales by manufacturers.
C) pure-play e-tailers.
D) click-and-mortar retailers.

Question 53

A members-only shopping club,where members can buy goods at large discounts describes

A) specialty club.
B) membership-based club.
C) exclusive club.
D) private shopping club.

Question 54

Based on distribution channel used,which of the following is not a B2C model classification?

A) pure-play e-tailers
B) click-and-mortar retailers
C) Internet malls
D) online medical diagnostic center

Question 55

Which of the following is not a social shopping model?

A) personalized event shopping
B) location-based e-commerce
C) private shopping clubs
D) private auctions

Question 56

Sears' marketing strategy is best described as a

A) brick-and-mortar strategy.
B) shared service mall strategy.
C) click-and-mortar strategy.
D) direct marketing from a manufacturer strategy.

Question 57

An online seller of travel services that generates revenue by charging fees for its services is an example of a

A) market maker.
B) transaction broker.
C) content disseminator.
D) viral marketer.

Question 58

A marketer that uses e-mail to advertise to potential customers is called a

A) market maker.
B) transaction broker.
C) content disseminator.
D) viral marketer.

Question 59

A method of doing business by which a company generates revenue to sustain itself and achieve its goals best describes

A) strategic plan.
B) mission statement.
C) business model.
D) marketing plan.

Question 60

Marketing done online between any seller and buyer best defines

A) personalization.
B) direct marketing.
C) target marketing.
D) multichannel marketing.

Question 61

Each of the following is a revenue model for online independent travel agents except

A) contract negotiators.
B) direct revenues from commissions.
C) subscription or membership fees.
D) revenue sharing fees.

Question 62

The TRUSTe seal is an example of a(n)

A) business rating.
B) intermediary.
C) B2B exchange.
D) trustmark.

Question 63

Gateways to storefronts and e-malls are

A) shopping portals.
B) shopbots.
C) shopping browsers.
D) intelligent search engines.

Question 64

Security for online bank transactions includes each of the following except

A) firewalls.
B) SSL encryption.
C) virtual biometrics.
D) digital certificates.

Question 65

The portal online banking application provides

A) general bank information and history.
B) account transfer capabilities.
C) online brokerage services.
D) links to local business.

Question 66

A search engine whose mission is to help people find local qualified services ranging from mechanics to restaurants to hairstylists describes

A) Freddy's List.
B) Pricescan.com.
C) Yelp.
D) Local.com.

Question 67

The situation in which an online marketing channel upsets the traditional channels due to real or perceived damage from competition defines

A) disintermediation.
B) channel conflict.
C) distributor reassignment.
D) partner disassociation.

Question 68

A traditional brick-and-mortar store with a mature website that uses a successful click-and-mortar strategy is able to

A) give customers the opportunity to perform various functions interactively at any time.
B) link all of its back-end systems to create an integrated customer experience.
C) leverage its marketing channels by offering the advantages of each marketing channel to customers from all channels.
D) do all of the above.

Question 69

Each of the following is a characteristic of WAYN except

A) it is a popular social networking Web site.
B) when it introduced fees for its premier travel membership service, it lost most of its new subscriptions.
C) it is not aimed at any particular age group.
D) it enables its users to create a personal profile and upload and store photos.

Question 70

Compared to the traditional job market,the online job market

A) has a shorter life cycle.
B) is usually specialized and local in scope.
C) tends to be less reliable.
D) tends to be much less expensive.

Question 71

The removal of organizations or business process layers responsible for certain intermediary steps in a given supply chain describes

A) reintermediation.
B) extraction.
C) relocation.
D) disintermediation.

Question 72

Software tools that scout the Web on behalf of consumers who specify search criteria are

A) shopping portals.
B) shopbots.
C) shopping browsers.
D) intelligent search engines.

Question 73

Types of online banking applications include each of the following except

A) informational.
B) administrative.
C) directional.
D) portal.

Question 74

Advantages of the electronic job market for job seekers include

A) accessing newsgroups that are dedicated to finding jobs.
B) reducing application-processing costs by using electronic application forms.
C) conducting interviews online.
D) viewing salary surveys for recruiting strategies.

Question 75

The process whereby intermediaries take on new intermediary roles defines

A) reintermediation.
B) seller reassignment.
C) relocation.
D) disintermediation.

Question 76

The effect upon sales of consumers receiving a referral or recommendation from other consumers defines

A) location-based economy.
B) referral economy.
C) regional economy.
D) viral marketing.

Question 77

Limitations of online travel services include

A) limited amount of free information.
B) substantial discounts.
C) the difficulty of using virtual travel agents can be very large.
D) increases in provider's commission and its processing.

Question 78

Which of the following is not a characteristic of e-banking?

A) saves users time and money
B) is more expensive for banks
C) is becoming an enabling feature of business growth in the developing world
D) is increasing peer-to-peer (P2P) online lending

Question 79

Charles wants to buy a John Lennon lithograph over the Internet,but he is unwilling to pay for it until he inspects it to ascertain authenticity.The auction site through which he purchases the painting agrees to hold his money until he tells them to release it to the seller.This is an example of a(n)

A) escrow service.
B) trustmark.
C) warranty.
D) verification.

Question 80

Delivery of e-commerce transactions to individuals in a specific location,at a specific time defines

A) location-based commerce.
B) event-driven commerce.
C) mobile computing.
D) service on demand.