Deck 13: E-Commerce and Entrepreneurship

Question 1

As a benefit of selling on the Web for many small businesses,launching a Web site is the equivalent of opening a ________.

A)new sales channel
B)new store
C)closing a store
D)closing all stores

Answer 1

A

Question 2

What are the guidelines for building a successful Web strategy for a small e-company?

A)Fill a niche
B)Have a lot of products on sale
C)Have advanced technology
D)Bring advertising revenue by selling banners

Answer 2

A

Question 3

After launching the Web site,the companies must follow-up by:

A)redesigning Web site and buy more hardware to support Web site.
B)automating or expanding warehouse to meet customer demand.
C)integrating Web site into inventory control system.
D)All of the above

Answer 3

D

Question 4

A niche can be defined in many ways,including:

A)by geography.
B)by customer profile.
C)by product.
D)All of the above

Question 5

Before launching an E-Commerce,the business owner should consider:

A)handling of customer service for the site.
B)the impact of the Web site on the company's traditional channels of distribution.
C)Both A and B
D)Neither A nor B

Question 6

________ is the most efficient way for small businesses to sell their products to the millions of potential customers who live outside the borders of the United States.

A)Export
B)Joint Venture
C)Web
D)Franchising

Question 7

What types of products are best suited for selling on the Web?

A)High-volume and high margin
B)High-volume and low margin
C)Commodity
D)High volume,low margin,and commodity

Question 8

Sites that ________ may never have the chance to sell because customers will click to another site.

A)move quickly
B)download slowly
C)don't have email
D)don't have toll-free numbers

Question 9

The typical Internet user in the United States spends an average of ________ hours a week online.

A)33.2
B)3)2
C)23.2
D)13.2

Question 10

One of the myths of E-Commerce is that:

A)setting up a business on the Web is easy.
B)setting up a business on the Web is inexpensive.
C)setting up a business on the Web is impossible.
D)Both A and B

Question 11

The key to promoting a Web site is networking,building relationships with other companies,customers,trade associations,________,and other Web sites your company's customers visit.

A)on-line directories
B)Email access
C)Shopping cart
D)All of the above

Question 12

The items purchased most often online are:

A)travel services.
B)computer hardware.
C)clothing and books.
D)All of the above

Question 13

Perhaps the most significant actions on-line companies can take to bolster their customer service efforts are providing:

A)a quick online checkout process.
B)creating a well-staffed and well-trained customer response team.
C)offering a simple return process.
D)All of the above

Question 14

The most common reasons for leaving a site without purchasing include:

A)the shopping cart was easy to find.
B)checking out was easy and quick.
C)the site was trustworthy.
D)shipping charges were too high.

Question 15

Before your Web site can become the foundation for a successful e-business,you must create it with your ________ in mind.

A)technology
B)employees
C)target audience
D)vendors

Question 16

KHA.com started selling sporting goods designed for senior citizens who live in retirement homes and apartments.KHA.com is selling its products using:

A)niche strategy.
B)community strategy.
C)mass strategy.
D)senior citizens strategy.

Question 17

For many entrepreneurs,the barrier for launching E-Commerce is:

A)where and how to start an E-Commerce effort.
B)lack of funding.
C)lack of IT staff.
D)Both B and C

Question 18

E-commerce requires a basic infrastructure somewhere in the channel of distribution to process orders,maintain inventory,________,and handle customer service.

A)fill orders
B)process email
C)technology
D)All of the above

Question 19

Benefits of selling on the Web are:

A)the opportunity to increase revenue.
B)being able to open 24/7.
C)the power to educate and to inform.
D)All of the above

Question 20

________ suits many e-tailers perfectly.

A)Drop-shipping
B)Virtual shipping
C)Customer shipping
D)Group shipping

Question 21

An ideal domain name should be:

A)short and memorable.
B)indicative of the company.
C)easy to spell.
D)All of the above

Question 22

Recommended techniques for having a killer Web site are:

A)avoiding clutter.
B)continuous sound play.
C)not to change the Web site.
D)All of the above

Question 23

In E-Commerce,what is the length of time between a customer's visits to a Web site?

A)Virtual
B)Distance
C)Recency
D)None of the above

Question 24

What software is essential for any company doing business on the Web to constantly monitor the activity on a company's network server and sound an alert if it detects someone breaking into the company's computer system?

A)Firewall
B)Alarm detention program
C)Intrusion detection software
D)Artificial Intelligence

Question 25

Each time an ad is displayed is called a(n):

A)clustering.
B)filtering.
C)impression.
D)loading.

Question 26

What is CVV or CVV2?

A)Customer tracking technology
B)Customer verification value
C)Credit verification value
D)Card verification value

Question 27

Another word for browse-to-buy is:

A)conversion.
B)controller.
C)tracker.
D)browse-to-purchase.

Question 28

The browse-to-buy rate is also called the ________ rate.

A)click-through
B)browsing
C)conversion
D)banner

Question 29

Conversion rates range from

A)8-10 percent.
B)2-6 percent.
C)ten plus percent.
D)1-4 percent

Question 30

To increase customer confidence and credibility,join programs such as:

A)Don and Brad Street.
B)TRUSTe.
C)BBBOnLine.
D)Both B and C

Question 31

What software scans computer drives for viruses and nasty programs?

A)Virus detection
B)Firewall
C)Server application
D)Detention software

Question 32

In web analytics,CPA is the acronym for

A)customers per acquisition.
B)cost per account.
C)customers per account.
D)cost per acquisition.

Question 33

The average conversion rate is.

A)10 percent
B)3)2 percent
C)less than 1 percent
D)5)8 percent

Question 34

Reasons for not returning to a Web site are:

A)having a phone number when encountering problems.
B)not having images or description of products / services.
C)having to check back to view items in the shopping cart.
D)for security purposes,multiple steps are necessary to get to the check out page.

Question 35

A(n)________ is a statement explaining the nature of the information a company collects online,what it does with that information,and the recourse customers have if they believe the company is misusing the information.

A)employment manual
B)online manual
C)privacy policy
D)online policy

Question 36

________ is a tool that measures a Web site's ability to attract customers,generate sales,and keep customers coming back,help entrepreneurs know what works - and what doesn't - on the Web.

A)Counter
B)Web analytics
C)Web designer
D)Server application

Question 37

Which one of the following is not a basic web analytic?

A)Time spent on site
B)Sales revenue generated
C)Number of items sold
D)Which products are selling best (and which are not)

Question 38

E-mail lists and ________ are powerful tools for building a community of visitors at a site.

A)toll free numbers
B)discussion boards
C)chat rooms
D)broadcast advertising

Question 39

Which technology encrypts the customer's data as the information travels across the Internet?

A)Firewall
B)Secure Socket Layer
C)Virus protection
D)None of the above

Question 40

The ________ is the cost a company incurs to generate each purchase.

A)CTA
B)CPA
C)CSA
D)CMA

Question 41

Some of the most common reasons small or mid-sized companies take their business to the Web are to keep up with the customers and to reach global markets.

Question 42

Which of the following is correct?

A)Although fancy graphics,bright colors,playful music,and spinning icons can attract attention,they also can be quite distracting and very slow to download.
B)Sites that download slowly may never have the chance to sell because customers will click to another site.
C)None of the above
D)Both A and B

Question 43

It is not necessary for entrepreneurs with both physical and virtual stores to promote their Web sites at every opportunity.

Question 44

When launching an E-Commerce,the most important part of any e-commerce effort is technology.

Question 45

The other name for virtual order fulfillment is:

A)drop-shipping.
B)instant shipping.
C)convenience shipping.
D)group shipping.

Question 46

Paid listings also are called:

A)pay for placement.
B)pay per click.
C)pay for performance ads.
D)All of the above

Question 47

It is not necessary for companies that collect information from their on-line customers to safeguard their customers' privacy.

Question 48

Developing a community refers to:

A)attracting customers and keeping them coming back.
B)giving customers the chance to interact with other like-minded visitors .
C)providing chat rooms.
D)All of the above

Question 49

Creating a meaningful presence on the Web requires an ongoing investment of resources-time,money,energy,and talent.

Question 50

The ideal domain name should be:

A)short & memorable.
B)indicative of a company's business or business name.
C)easy to spell.
D)All of the above

Question 51

The web offers shoppers the ultimate in:

A)convenience.
B)quality.
C)differentiation.
D)service.

Question 52

Which of the following is correct?

A)Make it easy for customers to change the contents of their shopping carts.
B)Give customers the option of calling to resolve problems they encounter during checkout.
C)Make it easy for customers to pay for their online purchases.
D)All of the above

Question 53

Setting up an e-commerce site takes most companies at least six months to complete.

Question 54

Unfortunately,many entrepreneurs tackle e-commerce by focusing on technology first and then determine how that technology fits their business idea.

Question 55

The most common reasons for splitting up are:

A)incompatible corporate cultures.
B)incompatible management personalities.
C)differences in strategic priorities.
D)All of the above

Question 56

Building a successful e-business is no different than building a successful brick-and-mortar business,and that requires a well-thought-out strategy.

Question 57

Web success requires a company to develop a plan for integrating the Web into its overall strategy.

Question 58

Most common mistakes that entrepreneurs make once they finally decide to go on-line are:

A)they believe they have to have a "perfect" site before they can launch it.
B)few businesses get their sites "right" the first time.
C)in fact,the most successful e-commerce sites are constantly changing,removing what does not work and adding new features to see what does.
D)All of the above

Question 59

Measuring the success of its Web-based sales effort is essential to remaining relevant to customers whose tastes,needs,and preferences are always changing.

Question 60

Which of the following statements is true for improving a company's search placement results?

A)Visit competitors' sites for key word ideas,but avoid using the exact phrases.
B)Consider using less obvious key words and brand names.
C)Ask customers which words and phrases they use when searching for the products and services the company sells.
D)All of the above

Question 61

One of the simplest ways to establish credibility with customers is to use brand names they know and trust.

Question 62

Domain names are given on a first-come,first-serve basis.

Question 63

On the Web,"more" does not necessarily equate to "better."

Question 64

Conversion rate is not the same as the click-through rate.

Question 65

A more meaningful way to track activity on a Web site is through pop-ups,which has the goal of helping entrepreneurs understand visitors' online behavior.

Question 66

Developing a community via the company's Web site is to increase customer loyalty by giving customers the chance to interact with other like-minded visitors or with experts to discuss and learn more about topics they are passionate about.

Question 67

The most common problem with online credit card transaction is chargebacks,online transactions that customers dispute.

Question 68

The only ways a niche can be defined are by customer profile and by geography.

Question 69

Another important measure of Web success is the conversion (or browse-to-buy)ratio,which measures the proportion of visitors to a site who actually make a purchase.

Question 70

It is important to have fancy typefaces and large fonts on a web page.

Question 71

To be successful,both off-line and online companies require solid planning and a well-formulated strategy that emphasizes customer service.

Question 72

Web-based entrepreneurs often discover that the greatest challenge their businesses face is attracting customers on the Web and not necessarily creating a workable order fulfillment strategy.

Question 73

One of the most important words on the Internet is "free."

Question 74

Research indicates that for online merchants,customer service is not as important on the Web as it is in traditional brick-and-mortar stores.

Question 75

It really is not necessary to put the company's Web address on everything a company publishes since the company's name is listed on all search engines.

Question 76

It is not necessary to provide a street address,an e-mail address,and a toll free telephone number on the company's Web site to prove the legitimacy of the business.

Question 77

One way to have a killer Web site is to surprise customers by high charges at checkout.

Question 78

The back office is less important than the web site.

Question 79

Intrusion detection software constantly monitors the activity on a company's network server and sound an alert if they detect someone breaking into the company's computer system or if they detect unusual network activity.

Question 80

A specific design tip is to include a menu bar at the bottom of each page.