Deck 5: Electronic Commerce: Strategies for the New Economy

Question 1

If your company sold tires to the automobile industry and these sales were conducted through the Internet,what type of e-commerce model would you be using?

A)E-CB
B)I-BB
C)B2B
D)C2B

Answer 1

C
Explanation: Business to Business (B2B)e-commerce occurs when a business sells products and services to customers who are primarily other businesses.

Question 2

If you created links on your personal Web site that connected your visitors to businesses with the goal that you would earn a fee for purchases made by your visitors,what type e-commerce model are you creating?

A)Affiliate programs
B)B2B
C)E-Advertisement
D)C2C

Answer 2

A
Explanation: Through an affiliate program relationship with Amazon,for example,you can post links on your personal Web site to Amazon for products and services it sells.

Question 3

Which type of e-commerce occurs when a business sells products and services to customers who are primarily individuals?

A)B2B
B)B2C
C)G2C
D)C2B

Answer 3

B
Explanation: Business to Consumer (B2C)e-commerce occurs when a business sell products and services to customers who are primarily individuals.

Question 4

What term depicts a virtual marketplace in which all businesses buy from and sell products and services to each other,and share information?

A)Virtual Markets (VM)
B)E-Markets (EM)
C)Open-source Market
D)B2B e-marketplace

Question 5

_____ occurs when an individual sells products and services to a government entity.

A)G2B e-commerce
B)B2G e-commerce
C)C2G e-commerce
D)G2C e-commerce

Question 6

eBay is a hybrid of both:

A)a B2G e-commerce site and a G2C e-commerce site.
B)a G2C e-commerce site and a C2G e-commerce site.
C)a B2B e-commerce site and a C2B e-commerce site.
D)a B2C e-commerce site and a C2C e-commerce site.

Question 7

In the world of e-commerce,your business should be able to distinguish between which of the following?

A)Mobile computing and traditional bulky communication devices
B)Web based computing and database management
C)Alternative operating environments such as Mac OS and Windows
D)End consumers and other businesses

Question 8

The primary reason most dot-com businesses from the late 1990s are no longer in existence today is because they didn't:

A)build a company that is Internet and brick-and-mortar based.
B)develop IT systems capable of processing millions of transactions quickly.
C)develop a path-to-profitability (P2P)plan.
D)disperse risk amongst a group of investors.

Question 9

_____ occurs when a government entity sells products and services to businesses.

A)G2B e-commerce
B)B2G e-commerce
C)C2G e-commerce
D)G2C e-commerce

Question 10

Which of the following types of products purchased on the Internet are typically priced low because they are used more frequently?

A)Speciality
B)Convenience
C)Niche
D)Luxury

Question 11

Which type of e-commerce model typically requires the use of an intermediary organization to complete transactions?

A)B2C
B)G2C
C)C2C
D)C2B

Question 12

_____ is a formal business plan that maps out your customer base and your strategy for reaching them.

A)E-plan
B)Feasibility plan
C)Customer strategy and outreach plan (CSOP)
D)Path-to-profitability (P2P)

Question 13

What is the major difference between B2B and B2C e-commerce?

A)Customers interact freely in a B2B marketplace;they do not in a B2C marketplace.
B)Consumers are fickle in a B2B marketplace;long time relationships are established between the consumer and its business partner in B2C e-commerce.
C)Interaction between consumers and businesses are direct in the B2B market;they are indirect in the B2C market.
D)The B2B marketplace does not involve consumers,just business partners;the B2C marketplace involves consumers.

Question 14

Which type of e-commerce occurs when a business sells products or services to customers who are primarily other businesses?

A)B2C
B)B2G
C)C2B
D)B2B

Question 15

When you purchase your books for this course from an online source such as Amazon.com,you are participating in which type of e-commerce?

A)I-BC
B)E-CB
C)C2B
D)B2C

Question 16

Affiliate programs are good examples of which type of e-commerce?

A)B2C
B)B2B
C)G2C
D)C2B

Question 17

The _____ e-commerce model is an example of citizens paying their income tax returns online rather than through the mail.

A)G2C
B)B2G
C)G2B
D)B2B

Question 18

_____ is accelerated and enhanced by the Internet and the technology that supports it.

A)IPO
B)E-commerce
C)Merchandising
D)M-commerce

Question 19

Which type of e-commerce occurs when a business sells products and services to a government entity?

A)B2C
B)B2G
C)G2B
D)B2B

Question 20

Which type e-commerce occurs when an individual sells products and services to a business?

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

Question 21

Maintenance,repair,and operations (MRO)materials are also called ____.

A)non-perishable
B)indirect materials
C)additional services
D)support resources

Question 22

_____ is the set of marketing tools that your organization will use to pursue its marketing objectives in reaching and attracting potential customers.

A)Marketing target
B)Marketing potential
C)Marketing strategies
D)Marketing mix

Question 23

Which of the following is an electronic marketplace that connects buyers and sellers in a given industry?

A)Horizontal e-marketplace
B)Indirect marketplace
C)Reverse auctions marketplace
D)Vertical e-marketplace

Question 24

What is the difference between a reverse auction and mass customization?

A)Reverse auction is most often found in B2B whereas mass customization is often found in B2C.
B)Reverse auction requires a bid from consumers whereas mass customization requires a bid from suppliers.
C)Mass customization require a click-and-mortar environment;reverse auctions do not.
D)Mass customization can sell digital products;reverse auctions sell commoditylike products.

Question 25

Which terms describes the ability of an organization to give its customers the opportunity to tailor its products or services to their specification?

A)E-Itemization
B)Crowd modification
C)Specialization
D)Mass customization

Question 26

What term is used to describe a small Web page containing an advertisement that appears on your screen,outside the current Web site loaded into your browser?

A)AdWare
B)External ads
C)Viral ads
D)Pop-up ads

Question 27

_____ refers to the combining of purchase requests from multiple buyers into a single large order,which justifies a discount from the business.

A)Mass customization
B)E-business alliance
C)Demand aggregation
D)Small business coalition (SBC)

Question 28

What term is used to describe the small advertisements that appear on other Web sites?

A)Viral ads
B)Banner ads
C)Adware
D)Spyware ads

Question 29

Which of the following types of products purchased on the Internet are typically high priced items because they are purchased infrequently and often require some sort of customization?

A)Convenience
B)Commoditylike
C)Specialty
D)Digital

Question 30

_____ are materials that are used in production in a manufacturing company or are placed on the shelf for sale in a retail environment.

A)Indirect materials
B)Direct materials
C)Perishable materials
D)Converse materials

Question 31

What is the difference between a pop-up and pop-under ad?

A)A pop-up ad appears when you open a Web site;you do not see a pop-under ad until you close your current browser window.
B)A pop-up ad uses a separate window;a pop-under ad does not.
C)A pop-up ad is a click-and-order ad;a pop-under ad is considered a click through ad.
D)A pop-under ad is a type of spyware;a pop-up ad is not.

Question 32

Which of the following is an electronic marketplace that connects buyers and sellers across many industries,primarily for MRO materials?

A)Horizontal e-marketplace
B)Vertical e-marketplace
C)Reverse auctions marketplace
D)Direct marketplace

Question 33

A(n)_____ is the process in which a buyer posts its interest in buying a certain quantity of items with notations concerning quality,specification,and delivery timing,and sellers compete for the business by submitting successively lower bids until there is only one seller left.

A)vertical e-marketing
B)reverse auction
C)request for bid (RFB)
D)B2B E-mart

Question 34

What is a "sticky" Web site?

A)A Web site that gains popularity through e-channels.
B)A Web site that is accessed frequently because it is able to reroute potential consumers from other sites to it.
C)A Web site that attracts consumers and encourages them to return.
D)A Web site that is located by pop-up and pop-under ads.

Question 35

BMW is currently creating interactive Web sites that allow one to build and purchase their own unique car.This type of Web site creates what type of business opportunity?

A)Direct e-sales
B)I-purchasing
C)Consumer specialty purchasing (CSP)
D)Mass customization

Question 36

Which of the following is true of commoditylike business environments?

A)They are similar to specialty items.
B)The buyer power is low.
C)They have high barriers to entry.
D)They have low barriers to entry.

Question 37

Which of the following is an example of commoditylike merchandise?

A)Toothpaste
B)Computers
C)Cell phones
D)Automobiles

Question 38

Viral marketing is:

A)a marketing campaign initiated through a virus.
B)a type of spyware that attaches itself to some other application.
C)a marketing campaign that persuades consumers to encourage friends to purchase the same products or services.
D)a type of negative marketing plan that criticizes its competitors.

Question 39

What term is used to describe an ad that appears after you close your current browser window?

A)AdWare
B)Viral ads
C)External ads
D)Pop-under ads

Question 40

What is the difference between horizontal e-marketplaces and vertical e-marketplaces?

A)Vertical e-marketplaces support commerce between multiple industries;horizontal e-marketplaces support commerce between businesses from the same industries
B)Vertical e-marketplaces support commerce between businesses from the same industry;horizontal e-marketplaces support commerce between businesses from different industries
C)Horizontal e-marketplaces support commerce between businesses and consumers;vertical e-marketplaces support commerce between business and business
D)Horizontal e-marketplaces support commerce between business and business;vertical e-marketplaces support commerce between consumer and business

Question 41

_____ is a B2B service that offers information-sharing intermediary services between organizations based on various standards regarding the format of the information and how it will be sent and received.

A)Global eXchange services (GXS)
B)Value-added network (VAN)
C)Electronic data interchange (EDI)
D)E-Business Financial Exchange (EBFE)

Question 42

Google allows publishers at all levels of web traffic to place contextual ads in blog posts.Hence,Google is a(n)_____ program.

A)affiliate
B)wiki
C)conversion
D)pop-under

Question 43

Which transmission method ensures that transactions traveling over the Internet are legitimate as well as secure?

A)Shared Fusion Connectivity (SFC)
B)Secure Sockets Layer (SSL)
C)Financial Electronic Data Interchange (FEDI)
D)Secure Electronic Transactions (SET)

Question 44

What type of Internet-based company makes it easy for one person to pay another person or organization over the Internet?

A)Financial cybermediary
B)Electronic bill and payment business
C)E-provider
D)I-banks

Question 45

What mechanism is used for sending money from your checking or savings account to another person or organization?

A)Cyber money
B)Cybermediary
C)Electronic check
D)E-Payment

Question 46

Which type of business environment is used within the B2B e-commerce model for the payment of purchases?

A)VAN
B)GXS
C)PKE
D)Financial EDI

Question 47

What is the difference between a smart card and a digital wallet?

A)A smart card is stored on the seller's computer;a digital wallet is stored on the client's computer.
B)A smart card contains both software and information;a digital wallet contains only information.
C)A smart card is a physical device;a digital wallet is both software and information.
D)A digital wallet contains a smart card;a smart card is part of the digital wallet along with other personal consumer information.

Question 48

Which type of business environment supports computer-to-computer transfer of transaction information in a standard business document and format?

A)Value-added network (VAN)
B)Global eXchange services (GXS)
C)Electronic data interchange (EDI)
D)E-Business Financial Exchange (EBFE)

Question 49

What is the percentage of potential customers who visit your site who actually buy something?

A)Hit rate
B)Conversion rate
C)Click-through
D)Virtual check out

Question 50

Which scrambling technique provides you with two keys: one key that everyone in an organization can have to scramble the contents of a file and another key for the intended recipient to unscramble the file?

A)Public key encryption (PKE)
B)Public coder/decoder
C)Shared fusion key (SFE)
D)Community scrambler security device (CSSD)

Question 51

Which type of digital wallet maintains your e-commerce information on the seller's Web site?

A)Cybermediary digital wallet
B)Buyer-based digital wallet
C)Thick digital wallet
D)Server-side digital wallet

Question 52

If you were a seller on the Internet and you wanted to ensure that your buyer's transaction information was correct and legitimate,what type of Web environment would you need?

A)Shared Fusion Connectivity (SFC)
B)Secure Sockets Layer (SSL)
C)Financial Electronic Data Interchange (FEDI)
D)Secure Electronic Transactions (SET)

Question 53

What financial tool contains both security software and information about the user's payment and delivery preferences?

A)Cybermediary
B)Smart cards
C)E-Payments
D)Digital wallets

Question 54

What system sends bills over the Internet and provides an easy-to-use mechanism to pay for them?

A)Cybermediary
B)Electronic check
C)E-Payment
D)EBPP

Question 55

_____ is a credit-card like device that contains an embedded chip on which digital information can be stored and updated?

A)Smart card
B)E-credit card
C)E-Information
D)Intelligent spending card (ISC)

Question 56

An affiliate program is:

A)a business relationship between sellers and suppliers that support e-commerce.
B)an ad-on product or service that is purchased through the originating seller.
C)a marketing campaign directed at persuading consumers to get others to purchase the same product or service.
D)an arrangement made between two e-commerce sites that directs viewers from one site to the other site.

Question 57

_____ scrambles the contents of a file so that you can't read it without having the right key to unscramble the file.

A)Coder
B)Scrambler
C)Encryption
D)Fusion

Question 58

Which type of digital wallet maintains your e-commerce information on your computer?

A)Client-side digital wallet
B)Consumer-based wallet
C)Server-side digital wallet
D)Smart card

Question 59

Which computer tool creates a secure and private connection between a Web client's computer and a Web server's computer,so that files sent from one to another are kept confidential?

A)Shared Fusion Connectivity (SFC)
B)Secure Sockets Layer (SSL)
C)Secure Electronic Transaction (SEL)
D)Public Coder detection (PCD)

Question 60

Which of the following is a count of the number of people who visit one site,click on an ad,and are then taken to the site of the advertiser?

A)Conversion rate
B)Click-through
C)Marketing hits
D)Viral speed

Question 61

G2G e-commerce refers to the electronic commerce activities performed within a nation's government or between two more nations' governments including providing foreign aid and the sharing of border patrol activities.

Question 62

In the B2C e-commerce business model,the consumer drives supply and the business drives demand.

Question 63

For consumers,specialty merchandise are higher-priced than convenience merchandise items and are typically ordered on a less-frequent basis.

Question 64

Commoditylike business environments are typically easy to enter.

Question 65

Affiliate programs are excellent examples of a C2B e-commerce business model.

Question 66

If you were to purchase a song from iTunes with your cell phone,what type of technology would you be using?

A)M-commerce
B)Broadband
C)CDMA
D)Web 2.0

Question 67

Digital products are one of the best products to offer in a B2C environment.

Question 68

eBay is a hybrid of both a B2C e-commerce site and a C2C e-commerce site.

Question 69

Path-to-profitability (P2P)is an informal marketing plan that outlines key marketing issues.

Question 70

B2G e-commerce occurs when a government entity sells products and services to businesses.

Question 71

For a consumer,a digital product is the same no matter where it is purchased.

Question 72

When businesses provide enabling technologies that allow people to create,modify,and oversee the development of a product or service,it is known as ____.

A)open source technology
B)Long Tail strategy
C)crowdsourcing
D)initial public offering

Question 73

Buying U.S.savings bonds online is an example of a G2G.

Question 74

E-commerce is commerce,but it is commerce accelerated and enhanced by IT,in particular the Internet.

Question 75

What term describes electronic commerce that can be conducted over a wireless device?

A)E-trade
B)M-commerce
C)Wireless business
D)Virtual commerce

Question 76

Which type of technology allows you to wirelessly connect to and use centrally located information and/or application software?

A)Networking applications
B)Operations management tools
C)Mobile computing
D)Open source applications

Question 77

The C2B e-commerce business model is a true inversion of the C2C e-commerce business model.

Question 78

B2B e-marketplaces are virtual marketplaces in which businesses buy from and sell products to each other.

Question 79

Indirect materials are materials that are necessary for running a modern corporation,but do not relate to the company's primary business activities.

Question 80

Which of the following is true of Long Tail economics?

A)It looks at sales in terms of economies of scale.
B)E-commerce businesses that can reach the audience in the Long Tail cannot do so without the typical brick-and-mortar retail costs and expenses.
C)It seeks to sell as many of one item as possible to offset fixed costs.
D)It is ignored by traditional businesses but e-commerce businesses profit from it.