Deck 5: B2b E-Commerce

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

By using the Internet and automatic-response software agents for customer service,companies have been able to reduce their customer service costs by up to fifty percent.

Question 9

Strategic sourcing purchases involve long-term contracts that usually are based on private negotiations between sellers and buyers.

Question 10

A major characteristic of B2B e-commerce is that companies attempt to electronically automate trading,communication,and collaboration processes in order to improve them,which cannot be done without the Internet.

Question 11

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 12

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 13

Two examples of direct materials for a food processing company are computers and communication devices.

Question 14

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

Question 15

MRO,which stands for "maintenance,repair,and operation," refers to indirect or nonproduction materials that support the production process.

Question 16

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

Question 17

Portsmouth Hospitals NHS Trust's use of online auctions successfully enabled the UK health-care service provider to reduce costs without reducing the quality of care.

Question 18

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

Question 19

Markets that focus on providing materials or products that are used in various types of industries are known as horizontal marketplaces.

Question 20

B2B services are completely replacing human agents in commercial real estate and travel industries.

Question 21

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 22

A(n)________ is an online third party that brokers B2B transactions between a buyer and seller.

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

Question 23

B2B transactions that involve communication,design,planning,information sharing,and activities beyond financial transactions among business partners is referred to as:

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

Question 24

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 25

Key business drivers for B2B are all of the following except:

A)the availability of a secure broadband Internet platform
B)numerous private and public B2B e-marketplaces
C)the willingness of companies to incur higher costs to improve collaboration
D)the need for collaborations between suppliers and buyers

Question 26

In a sell-side e-marketplace,a business sells its products and services to other business customers,frequently over its:

A)exchange.
B)extranet.
C)intranet.
D)Web service.

Question 27

Purchases of goods and services based on long-term contracts is referred to as ________.

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

Question 28

What are the two types of materials and supplies that are traded in B2B?

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

Question 29

________ occurs when B2B eliminates a distributor or a retailer.

A)Disintermediation
B)Channel conflict
C)Just-in-time delivery
D)Collaboration

Question 30

The major B2B service industries include each of the following except:

A)travel
B)financial
C)stock trading
D)retail

Question 31

If a company wants to dispose of unwanted assets without advertising to the public that it is doing so,an intermediary-conducted public auction is a logical choice.

Question 32

________ can be supported more effectively and efficiently through direct buyer-seller negotiations that are either offline or online,which can be done in private exchanges.

A)Strategic sourcing
B)Spot buying
C)B2C e-commerce
D)MRO

Question 33

Portsmouth Hospitals NHS Trust,which provided health-care services for almost 1 million people in the United Kingdom,cut back-office purchasing costs by:

A)using online reverse auctions to purchase from suppliers at the the lowest mutually acceptable purchase price.
B)implementing online catalogs.
C)buying via its intranet.
D)using collaborative commerce.

Question 34

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 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

The ________ consists of a number of interrelated subprocesses that extend from the acquisition of materials from suppliers to packaging it and moving it to distributors and retailers.

A)supply chain
B)vertical market
C)horizontal marketplace
D)production chain

Question 37

The purchase of goods and services as they are needed,usually at prevailing market prices,is referred to as ________.

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

Question 38

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.

Question 39

Nonproduction materials such as equipment and tools that support production are called:

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

Question 40

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 41

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 42

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 tools
B)electronic data interchanges
C)customized catalogs
D)auto-responders

Question 43

EC companies will usually separate their B2C orders from their B2B orders because B2C and B2B orders have different:

A)buying and delivery processes.
B)accounting and financial processes.
C)marketing processes.
D)order-fulfillment processes and pricing.

Question 44

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 45

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 46

Services provided by infomediaries to marketing managers include all of the following except:

A)data mining to produce constructive knowledge
B)community services such as chat rooms and bulletin boards
C)analyzing clickstream data
D)processing existing data

Question 47

________ are markets that deal with one industry or industry segment such as steel or chemicals.

Question 48

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 49

A company's acquisition Web site that uses e-procurement methods such as reverse auctions,negotiations,or group purchasing to overcome the manual searching of e-stores is referred to as ________.

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

Question 50

B2B e-commerce can be conducted either directly between a customer and a manufacturer or indirectly by a third party though an online ________.

Question 51

________ is the purchase of goods and services as they are needed,usually at prevailing market prices.

Question 52

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 53

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 54

By using the Internet and automatic-response software agents,GE reduced the cost of customer service calls from $5.00 per call when done by phone to ________ per electronically answered call.

A)$2.50
B)$1.00
C)$0.20
D)$0.05

Question 55

________ are markets that concentrate on a service,product,or materials that are used in various types of industries such as office supplies or PCs.

Question 56

All of the following are true of dynamic pricing except:

A)Anonymity often is a key ingredient.
B)Buyers and sellers interact with bids and offers in real time.
C)E-malls are a prime example of this pricing model.
D)A deal is struck when there is an exact match between a buyer and a seller on price,volume,and other variables,such as location or quality.

Question 57

Benefits of e-procurement over traditional procurement methods include all of the following except:

A)increasing the productivity of purchasing agents
B)lowering purchase prices through product standardization,reverse auctions,volume discounts,and consolidation of purchases
C)increasing the skill requirements and training needs of purchasing agents
D)streamlining invoice reconciliation and dispute resolution

Question 58

The aggregation of suppliers' catalogs on the buyer's server to make it easier to centralize and control all procurement is called a(n):

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

Question 59

________ are public e-marketplaces that are open to all interested sellers and buyers.

Question 60

One of the major problems facing Cisco Systems and other direct sellers is:

A)how to find buyers.
B)how to find suppliers.
C)how to advertise in traditional channels.
D)how to manage the supply chain.

Question 61

A subset of third-party exchanges is a(n)________,an exchange formed and operated by a group of major companies in one industry.

Question 62

According to the model of organizational buyer behavior,age,gender,education,and lifestyle are types of ________ influences.

Question 63

In a(n)________ e-marketplace,one company sells to many business buyers from e-catalogs or auctions,usually over an extranet.

Question 64

A(n)________ is a tendering (bidding)system in which suppliers are invited to bid on the fulfillment of an order and the lowest bid wins.

Question 65

________ management refers to the planning,organizing,and coordination of all the management activities pertaining to the purchasing of goods and services needed to accomplish the mission of an enterprise.

Question 66

B2B portals that focus on a single industry or industry segment are referred to as ________.

Question 67

The strategy of providing such comprehensive,quality e-service for business partners is sometimes called ________.

Question 68

The processing of existing date to identify useful information,such as trends and other relationships in the data,is referred to as ________.

Question 69

The invitation to participate in reverse auctions is a form or document called a(n)________.

Question 70

Of the ________ frequented by business and EC professionals,LinkedIn was the most well known.

Question 71

________ is the direct purchasing from internal marketplaces without the approval of supervisors and without the intervention of a procurement department.

Question 72

A(n)________ e-marketplace is a B2B Web site that uses reverse auctions or other e-procurement methods.

Question 73

Transaction fees and membership fees are two examples of ________ for exchanges.

Question 74

MRO types of materials,such as office supplies,are referred to as ________ materials because they are used in activities that support production.

Question 75

With a(n)________,a company submits its surplus to the exchange and receives points of credit,which the company can then use to buy items that it needs.

Question 76

According to the model of organizational buyer behavior,authority,status,and persuasiveness are types of ________ influences.

Question 77

________ refers to the unplanned purchases of items needed quickly,often at non-negotiated higher prices.

Question 78

The electronic acquisition of goods and services for organizations is ________.

Question 79

________ refers to a rapid movement of prices over time and possibly across customers.

Question 80

With ________,orders from several buyers are combined into volume purchases so that better prices can be negotiated.