Deck 13: E-Commerce and Entrepreneurship

Question 1

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.

Answer 1

D

Question 2

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

Answer 2

C

Question 3

________ is a trend where people test products in retail stores but buy them online.

A)Showboating
B)Commoditizing
C)Onlining
D)Showrooming

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

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

A)33
B)125
C)52
D)104

Question 6

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 7

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 e-mail
C)technology
D)All of the above

Question 8

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)E-mail access
C)shopping carts
D)All of the above

Question 9

Globally,people spend ________ billion hours online per month.

A)35
B)25
C)15
D)5

Question 10

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

Question 11

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 e-mail
D)don't have toll-free numbers

Question 12

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 13

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:

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

Question 14

Perhaps the most visible impact of the Internet is in the world of ________.

A)services
B)manufacturing
C)education
D)retailing

Question 15

One of the Internet's greatest strengths is its ________ nature.

A)efficiency
B)collectivistic
C)interactive
D)atavistic

Question 16

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 17

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

A)providing 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 18

________ suits many e-tailers perfectly.

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

Question 19

The items purchased most often online are:

A)apparel.
B)computer hardware.
C)books.
D)All of the above

Question 20

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

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

Question 21

The average conversion rate is:

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

Question 22

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 23

The ________ is the proportion of people who see a company's online ad and actually click on it to reach the company's Web site.

A)AVPV
B)CPA
C)CTR
D)None of the above

Question 24

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

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

Question 25

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

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

Question 26

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 27

Conversion rates range from:

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

Question 28

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 29

Another word for browse-to-buy is:

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

Question 30

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

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

Question 31

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 32

What is CVV or CVV2?

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

Question 33

Reasons for leaving a Web site without purchasing are:

A)having a phone number when encountering problems.
B)insufficient product information.
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 34

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 35

________ 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)A counter
B)Web analytics
C)A Web designer
D)A server application

Question 36

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 37

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 38

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 39

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 40

What software scans computer drives for viruses and nasty programs?

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

Question 41

Most common mistakes that entrepreneurs make once they finally decide to go online 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 42

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 43

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 44

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

Question 45

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

Question 46

The other name for virtual order fulfillment is:

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

Question 47

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

Question 48

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 49

The Web offers shoppers the ultimate in:

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

Question 50

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

Question 51

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 52

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

Question 53

________ listings are short text advertisements with links to the sponsoring company's Web site that appear on the results pages of a search engine when a user types in a keyword or phrase.

A)Drop
B)Virtual
C)Negotiated
D)Paid

Question 54

Paid listings also are called:

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

Question 55

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

Question 56

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 57

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 58

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 59

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 60

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

Question 61

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

Question 62

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

Question 63

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

Question 64

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 65

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 66

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

Question 67

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

Question 68

Secure fire layer (SFL)technology is being used to encrypt customers' transaction information as it travels across the Internet.

Question 69

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

Question 70

The back office is less important than the Web site.

Question 71

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

Question 72

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 73

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

Question 74

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

Question 75

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 76

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

Question 77

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

Question 78

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

Question 79

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

Question 80

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.