Deck 4: B2B E-Commerce

Question 1

Aggregating the catalogs of all approved suppliers and combining them into a single electronic catalog is an effective solution for internal procurement because it minimizes maverick buying.

Answer 1

True

Question 2

B2B EC marketplaces that involve one seller selling to many buyers is called an exchange.

Answer 2

False

Question 3

MRO,which stands for "maintenance,repair,and operation," refers to the indirect materials used in activities that support production.

Answer 3

True

Question 4

Intermediaries in B2B commerce that broker transactions between buyers and sellers are third-parties that are either virtual or brick-and-mortar.

Question 5

Computers and communication devices are two examples of direct materials for a food processing company.

Question 6

Businesses deal with other businesses for purposes beyond just selling or buying.One example is that of collaborative commerce,which includes communication,design,planning,and information sharing among business partners.

Question 7

Strategic sourcing refers to purchasing involving long-term contracts that usually are based on private negotiations between sellers and buyers.

Question 8

Caltex,a multinational oil company,reduced the number of its suppliers from over 3,000 to 800 by implementing a central catalog for internal purchasing,lowering the per unit prices.

Question 9

B2B e-commerce refers to transactions between businesses that are conducted electronically over the public Internet only.

Question 10

Spot buying refers to the purchasing of goods and services according to a schedule,usually at prevailing market prices that are determined by supply and demand.

Question 11

In company-centric marketplaces,the individual company has very little control over who participates in selling or buying transactions.

Question 12

Maverick buying refers to the planning,organizing,and coordinating of all the activities pertaining to the purchasing of the goods and services necessary to accomplish the mission of an enterprise.

Question 13

E-marketplace exchanges are usually owned and run by a third party or by a consortium.

Question 14

Stock exchanges and commodity exchanges (such as oil and sugar)are examples of spot buying.

Question 15

In one-to-many and many-to-one marketplaces,if all selling is done by one company,it is a buy-side market.

Question 16

The availability of a secure broadband Internet platform is one of the key drivers of B2B EC.

Question 17

Market forecasters estimate that by 2012 the global B2B market,both online and offline,could reach $1 trillion.

Question 18

Reverse auctions are one method of electronic procurement that is very popular with public organizations where tendering is usually mandatory.

Question 19

Horizontal marketplaces are markets that concentrate on a service,material,or a product that is used in all types of industries.

Question 20

Exchanges can be vertical or horizontal.

Question 21

Alibaba.com requires buyers to pay for sourcing.

Question 22

Loss of customer service quality is a potential risk for buyers in B2B exchanges.

Question 23

Mobile portals are accessible via mobile devices.

Question 24

Dynamic pricing is the rapid movement of prices over time and possibly across customers,as a result of supply and demand matching.

Question 25

Anonymity is a key ingredient of dynamic pricing.

Question 26

Potential gains for sellers in B2B exchanges include less maverick buying.

Question 27

Creating brand awareness is an advantage of B2B social networking.

Question 28

By law,exchanges cannot be owned by a consortium.

Question 29

B2B transactions that involve communication,design,planning,information sharing,and activities beyond financial transactions among business partners defines

A) exchanges.
B) collaborative commerce.
C) trading communities.
D) public marketplaces.

Question 30

Social networks are used extensively in the B2B marketplace.

Question 31

An online third party that brokers a transaction online between a buyer and a seller best describes

A) strategic source.
B) horizontal marketplace.
C) vertical marketplace.
D) online intermediary.

Question 32

A vertical portal is an exchange formed and operated by a group of major companies in an industry to provide industry-wide transaction services.

Question 33

E-commerce that focuses on a single company's buying needs or selling needs best defines

A) computer exchange.
B) business-to-business e-commerce.
C) private marketplace.
D) company-centric EC.

Question 34

The marketing and advertising processes used for B2B and B2C are remarkably similar.

Question 35

Google's OpenSocial is a programming standard that lets developers create applications that can run on a wide range of social networking platforms,which may increase B2B social networking.

Question 36

Key business drivers for B2B include each of the following except

A) the availability of a secure broadband Internet platform.
B) the ability to reduce delays.
C) the willingness of companies to incur higher costs to improve collaboration.
D) the need for collaborations between suppliers and buyers.

Question 37

Affiliate programs,infomediaries,and online data and text mining services are three popular B2B marketing and advertising methods.

Question 38

Executive and supervisor portals are used for training,dissemination of company news,information,and discussion groups.

Question 39

Corporate portals are major gateways through which employees,business partners,and the public can enter a corporate website.

Question 40

Many-to-many e-marketplaces,usually owned and run by a third party or a consortium,in which many buyers and many sellers meet electronically to trade with each other best describes

A) exchanges.
B) public market.
C) company-centric EC.
D) spot purchases.

Question 41

High-quality bicycle manufacturer Gregg's Cycles does not sell its products online,nor do they allow their bicycles to be sold online by others.By not selling online,Gregg's Cycles avoids ________ with its dealers and the independent bike shops that sell its bikes.

A) pricing conflict
B) channel conflict
C) multichannel distribution
D) disintermediation

Question 42

Benefits of using a third-party hosting company for conducting B2B auctions instead of developing an auction site in-house include all of the following except

A) no hiring costs.
B) no redeployment of corporate resources.
C) time-to-market of several weeks.
D) no need for additional resources such as hardware, bandwidth, or IT personnel.

Question 43

Several benefits of Microsoft's ________ are that distributors can check inventory,make transactions,and look up the status of their orders,significantly reducing the number of phone calls,e-mails,and incorrect product shipments.

A) extranet-based order-entry tool
B) electronic data interchange
C) customized catalog
D) auto-responder

Question 44

Types of B2B transactions include

A) strategic sourcing.
B) randomized buying.
C) intermediation.
D) reverse purchasing.

Question 45

Companies use ________ to sell their unneeded assets for quick disposal or to dispose of excess,obsolete,and returned products.

A) private auctions
B) liquidation
C) reverse auctions
D) forward auctions

Question 46

All are benefits of B2B except

A) creates new sales or purchase opportunities.
B) eliminates paper and reduces administrative costs.
C) increases channel conflict.
D) lowers search costs and time for buyers to find products and vendors.

Question 47

A characteristic that describes customer loyalty to a site that eventually results in higher revenue best defines

A) retention.
B) acquisition.
C) stickiness.
D) attachment.

Question 48

A comprehensive approach to managing an enterprise's interactions with the organizations that supply the goods and services it uses best defines

A) customer relationship management.
B) supply chain management.
C) partnership relationship management.
D) supplier relationship management.

Question 49

Which of the following can be supported more effectively and efficiently through direct buyer-seller negotiations?

A) strategic sourcing
B) spot buying
C) B2C e-commerce
D) MRO

Question 50

Materials used to support production are called

A) indirect materials.
B) operational materials.
C) direct materials.
D) virtual materials.

Question 51

Which of the following is not one of the major benefits of B2B for both buyers and sellers?

A) expedites processing and reduces cycle time
B) reduces procurement costs
C) enables customized online catalogs with different prices for different customers
D) increases opportunities for collaboration

Question 52

The planning,organizing,and coordinating of all the activities relating to purchasing goods and services needed to accomplish the organization's mission best defines

A) buy-side e-marketplace.
B) supply chain management.
C) procurement management.
D) customer relationship management.

Question 53

A business strategy that focuses on providing comprehensive quality service to business partners best defines

A) customer relationship management.
B) supplier relationship management.
C) partner relationship management.
D) supply chain management.

Question 54

A corporate-based acquisition site that uses reverse auctions,negotiations,group purchasing,or any other e-procurement method best defines

A) desktop procurement method.
B) buy-side e-marketplace.
C) intermediary.
D) aggregated catalog.

Question 55

Materials used in the production of a product best defines

A) indirect materials.
B) direct materials.
C) MRO materials.
D) production materials.

Question 56

Two types of materials and supplies that are traded in B2B are

A) digital and physical.
B) direct and indirect.
C) horizontal and vertical.
D) commodities and nonproduction.

Question 57

Purchases of goods and services based on long-term contracts best defines

A) direct materials.
B) consolidation.
C) spot buying.
D) strategic sourcing.

Question 58

The purchase of goods and services as they are needed,usually at prevailing market prices,best defines

A) direct materials.
B) consolidation.
C) spot buying.
D) strategic sourcing.

Question 59

A Web-based marketplace in which one company sells to many business buyers from e-catalogs or auctions,frequently over an extranet,describes

A) sell-side e-commerce.
B) single-side e-commerce.
C) buy-side e-commerce.
D) reflective e-commerce.

Question 60

The major B2B service industries include each of the following except

A) travel and hospitality services.
B) financial services.
C) banking and online financing.
D) retail.

Question 61

With a bartering exchange,a company submits its surplus to the exchange and receives

A) points of credit, which the company can then use to buy items that it needs.
B) an equivalent amount of products or services.
C) interest payments until it buys something from the exchange.
D) cash minus a small commission for services.

Question 62

Direct purchasing from internal marketplaces without the approval of supervisors and without the intervention of a procurement department best defines

A) spot buying.
B) desktop purchasing.
C) maverick buying.
D) renegade purchasing.

Question 63

Gathering and distributing purchasing information both from and to internal and external parties using Internet technology best defines

A) e-tendering.
B) e-informing.
C) e-sourcing.
D) e-MRO.

Question 64

The aggregated catalogs of all approved suppliers combined into a single internal electronic catalog defines

A) bartering exchange.
B) buy-side e-marketplace.
C) sell-side e-marketplace.
D) internal procurement marketplace.

Question 65

Marketing by manufacturers and wholesalers along the sell-side of the supply chain best defines

A) B2C marketing.
B) B2B marketing.
C) M2W marketing.
D) M2B purchasing.

Question 66

Portals that store data and enable users to navigate and query these data are

A) collaborative portals.
B) information portals.
C) mobile portals.
D) MRO portals.

Question 67

Types of e-procurement include

A) E-MRO.
B) E-market sites.
C) E-informing.
D) all of the above.

Question 68

Unplanned purchases of items needed quickly,often at non-prenegotiated higher prices,best defines

A) impulse purchases.
B) free market.
C) MRO purchasing.
D) maverick buying.

Question 69

E-procurement benefits include each of the following except

A) reducing the number of suppliers.
B) ensuring delivery on time, every time.
C) ease of internal and external integration.
D) improving information flow and management.

Question 70

An example of a successful aggregation of suppliers' catalogs is that of ________,which aggregates more than 10,000 items from the catalogs of approved suppliers into an internal electronic catalog.

A) MasterCard International
B) Amazon.com
C) Google
D) Priceline.com

Question 71

Denver Boards,a B2B manufacturer of snowboard equipment,can reach and target new retail customers in order to grow its online business by

A) hiring an affiliation service to drive traffic to its Web site.
B) reviewing POS data.
C) mining data.
D) advertising in traditional media.

Question 72

Which of the following companies uses viral videos to promote renewals of Care Pack Service agreements?

A) Reed Business Information
B) Cisco Systems
C) Arketi Group
D) Hewlett-Packard

Question 73

Advantages of using internal catalogs include

A) decreasing the number of suppliers.
B) easy financial controls.
C) using search engines to look through internal catalogs.
D) all of the above.

Question 74

B2B portals that focus on a single industry or industry segment best describes

A) local portals.
B) information portals.
C) vortals.
D) collaborative portals.

Question 75

E-procurement limitations and challenges include each of the following except

A) the technology needs to be updated frequently.
B) the system may be too complex.
C) the cost may be too high.
D) the ease of getting suppliers to cooperate electronically.

Question 76

The main uses of social networks include

A) reducing the number of suppliers.
B) encouraging maverick purchases.
C) learning useful business intelligence.
D) driving traffic to online Web properties.

Question 77

Which of the following is the unplanned,emergency-type buying where buyers usually pay more?

A) maverick buying
B) spot buying
C) impulse purchasing
D) extreme purchasing

Question 78

Major procurement methods include

A) buying at an exchange or industrial mall.
B) buying at private or public auction sites in which the organization participates as one of the buyers.
C) buying directly from manufacturers, wholesalers, or retailers from their catalogs, and possibly by negotiation.
D) all of the above.

Question 79

The electronic acquisition of goods and services for organizations via the Internet or private network best defines

A) e-procurement.
B) spot buying.
C) resource acquisition.
D) MRO planning.

Question 80

Using Internet technology to buy goods and services from a number of known or unknown suppliers best defines

A) e-reverse auctioning.
B) e-tendering.
C) e-sourcing.
D) e-informing.