Deck 6: E-Commerce Models and Strategies

Question 1

Megan Najmulski just renewed her New York State driver's license online using the NYS Department of Motor Vehicles DMV) Website. Drivers in New York can also register their cars and even pay traffic fines using the Website. This is an example of which of the following markets?

A) Business-to-government
B) Government-to-business
C) Citizens-to-Government
D) Government-to-citizen

Answer 1

D

Question 2

While most of us use Google services like Gmail, Google Maps, YouTube and the search engine for free, the fact that it generates most of its revenue from other businesses means it is part of a __________________ market.

A) Business to Government B2G)
B) Business to Business B2B)
C) Consumer to Business C2B)
D) Consumer to Consumer C2C)

Answer 2

B

Question 3

Safety-net.com is a consulting firm that advises the armed forces and Homeland Security agencies with regard to cybersecurity threats from terrorists and foreign intelligence services. Safety-net.com is most likely part of the ____________________ marketplace.

A) Business-to-consumer
B) Business-to-business
C) Business-to-government
D) Consumers-to-business

Answer 3

C

Question 4

Your textbook describes a number of e-business models. Which of the terms below best fits the following description: "Users are charged a periodic

A) Utility model
B) Freemium model
C) Subscription model
D) Affiliate marketing model
E)g. monthly or annual) fee to use a service provided by the business."

Question 5

Your textbook describes a number of e-business models. Which of the terms below best fits the following description: "Products/services with basic features are distributed at no charge to gain exposure and market awareness. Users who want product versions with additional or more powerful features "upgrade" to the full product by paying a fee. "

A) Utility model
B) Freemium model
C) Subscription model
D) Affiliate marketing model

Question 6

______________________ describe the methods by which a company generates revenue.

A) Business models
B) Business processes
C) Process models
D) Business analysis

Question 7

Google's sheer size, power, and unusually large breadth of services almost ensure that it will be scrutinized for ______________ violations.

A) Anti-trust
B) Network security
C) National security
D) Environmental

Question 8

Ryan Najmulski is a smart shopper. He uses Priceline.com to make his travel arrangements when planning a vacation. Using Priceline's Website, Ryan enters information about his travel dates and the general location he'd like to stay in, along with his desired price. Priceline then attempts to find a hotel that will accept Ryan's bid. According to your textbook, Priceline is most likely part of an) ________________ marketplace.

A) Business-to-consumer
B) Business-to-business
C) Business-to-government
D) Consumers-to-business

Question 9

Your textbook describes a number of e-business models. Which of the terms below best fits the following description: "Vendors ask partners to place logos or banner ads on their sites. If customers click the logo, go to vendor's site, and buy something, the vendor pays a commission to partners."

A) Membership
B) Freemium
C) Subscription
D) Affiliate marketing

Question 10

Carolynn Schmitz buys all of her college textbooks from Amazon.com. She likes the selection she finds on Amazon and uses the Amazon Prime service for free, 2-day shipping to make sure her books arrive before the beginning of the semester. In this example, Amazon is most likely part of an) ________________ marketplace.

A) Business-to-consumer
B) Business-to-business
C) Business-to-government
D) Consumers-to-business

Question 11

___________________ refers to the use of e-business processes for the specific purpose of buying or selling goods and services.

A) E-business
B) E-commerce
C) Brick-and-mortar
D) Business-to-Business

Question 12

A complex set of features and capabilities are considered essential in today's competitive e-business environment. Which of the following was not listed in your textbook as an essential e-business or e-commerce capability?

A) Integration of e-commerce systems with enterprise systems
B) Security and PCI DSS compliance
C) Building a competitive advantage
D) Optimal search engine listing
E)g. easy to find using Google, Bing or some other search engine)

Question 13

Which of the following was not cited by your textbook as a challenge associated with international e-commerce?

A) Difficulty converting price into the shopper's native currency
B) Maintaining an inventory of products that appeal to all cultures
C) Differences in laws and regulations around the world
D) Total cost of delivery is often too vague or incorrect

Question 14

Google is a very prosperous, global e-business. Most of its revenue is generated from _____________.

A) Subscriptions
B) Licensing fees
C) Advertising
D) User fees

Question 15

Google gives away services for free in order to attract users it can then offer to its advertising clients. However, by giving away these services, Google looks as though they are trying to drive other companies out of business through a practice called _________________, offering goods and services at prices that don't cover the costs of producing these services.

A) Price busting
B) Discounting
C) Predatory pricing
D) Cornering the market

Question 16

In ________________ auctions, a company or government agency that wants to buy items places a request for quote RFQ) on its web site or third-party bidding marketplace. Once RFQs are posted, sellers or pre-approved suppliers submit bids electronically.

A) Forward
B) Inverse
C) Reverse
D) Business

Question 17

An) ________________ is a company where a significant or substantial part of its business involves the use of electronic or digital technologies to accomplish business tasks.

A) E-business
B) E-commerce
C) Brick-and-mortar
D) Business-to-Business

Question 18

A complex set of features and capabilities are considered essential in today's competitive e-business environment. Which of the following was not listed in your textbook as an essential e-business or e-commerce capability?

A) Availability
B) Accuracy and quick response
C) Competitive prices or fees
D) Web analytics and Intelligence Software
E)g. "Always on")

Question 19

Your textbook describes a number of e-business models. Which of the terms below best fits the following description: "The businesses charges buyers for a product/service based on usage levels. For instance, your cell phone company may charge you based on how much data you download while accessing the Internet from your mobile device. "

A) Utility model
B) Freemium model
C) Subscription model
D) Affiliate marketing model

Question 20

ProWeb Designs specializes in developing websites for small and medium sized businesses. They have an excellent reputation for servicing their client's needs. ProWeb Designs is most likely part of the ____________________ marketplace.

A) Business-to-consumer
B) Business-to-business
C) Business-to-government
D) Consumers-to-business

Question 21

__________________ involves the use of Internet technology to deliver information and public services to citizens, business partners, and suppliers of government entities, and people who work in the public sector.

A) E-Non-Profit
B) E-public
C) E-Citizen
D) E-Government

Question 22

Which of the following is not one of the three major categories of online government transactions discussed in your textbook?

A) Government-to-consumer G2C)
B) Government-to-business G2B)
C) Government-to-Non-Profits G2NP)
D) Government-to-government G2G)

Question 23

According to your textbook, the use of _________________ has already saved the government billions of dollars while at the same time, increasing government productivity and efficiency.

A) Fee-based services
B) Cloud computing tools
C) Agency Websites
D) Forward auctions

Question 24

________________________ is an umbrella term that describes practices associated with increasing the likelihood that a company will appear in search results when people conduct Internet searches using terms or phrases related to a product or company.

A) Search promotions
B) Online advertising
C) Search engine marketing
D) Results oriented advertising

Question 25

Implementation of e-commerce requires support services. Which of the following is not a major e-commerce support service described in your textbook?

A) E-infrastructure
B) E-Communities
C) E-Processes
D) E-Search

Question 26

In response to the increased use of smartphones and tablets by citizens, many state and local governments are developing ___________________ .

A) Mobile apps to curb drunk driving
B) Mobile device recharging stations in public places
C) Mobile public service advertisements
D) Mobile voting apps

Question 27

In the B2B _____________________ model, organizations sell their products or services to other organizations from their own private e-marketplace or from a third-party site.

A) E-Procurement
B) Digital transaction market
C) Efficient distribution marketplace
D) Sell-side marketplace

Question 28

The Internet introduced the concept of ________________, which enabled marketers and advertisers to communicate more effectively with consumers. For instance, consumers can click on an ad to obtain more information or send an email to ask a question.

A) Interactive marketing
B) Direct marketing
C) E-communications
D) Bi-modal promotions

Question 29

______________________ refers to the re-engineered procurement process using e-business technologies and strategies.

A) E-procurement
B) Enhanced procurement
C) Strategic procurement
D) Streamlined procurement

Question 30

Which of the following are the two basic goals of e-procurement?

A) Improved product quality / Control costs
B) Rapid order fulfillment / Control costs
C) Control costs / Simplify processes
D) Rapid order fulfillment / Simplify processes

Question 31

eBay is a popular web site where private individuals can place objects for sale. Potential buyers bid on the items, with the item going to the highest bidder. This form of selling is called an) _______________ auction.

A) Forward
B) Inverse
C) Reverse
D) Business

Question 32

_________________ is a constantly evolving discipline-part science, part creative strategy-which attempts to achieve higher search rankings based on the design and content of a web site.

A) Paid search promotions PSP)
B) Marketing by Web design
C) Pay per click advertising PPC)
D) Search engine optimization SEO)

Question 33

________________ involves paying search engines to display links to a company's Website alongside organic search results in areas designated for paid or sponsored ads.

A) Paid search promotions PSP)
B) Marketing by Web design
C) Pay per click advertising PPC)
D) Search engine optimization SEO)

Question 34

Exchanges are sites where many buyers and sellers conduct business transactions. ___________ exchanges serve many industries that use the same products or services

A) Functional
B) Industrial
C) Horizontal
D) Vertical
E)g. office supplies, cleaning materials).

Question 35

Organic search results are determined by __________________________________.

A) How much a company is willing to pay to have its site listed in response to a search on particular key words or phrases
B) Web site design and the search engine's algorithm for determining search result listings
C) The number of people conducting searches using particular key words of phrases
D) Largely uncontrollable factors

Question 36

Google's Adwords is a program that companies use when implementing an) ____________________ advertising strategy.

A) Search Engine Optimization SEO)
B) Organic Search
C) Pay per click PPC)
D) Online display ad

Question 37

E-sourcing refers to many different methods of _________________ .

A) Digital distribution
B) Selling goods and services to consumers
C) Procurement
D) Order fulfillment

Question 38

Needed services such as temporary help or extra space are traded on an as-needed basis on ______________ exchanges.

A) Functional
B) Industrial
C) Horizontal
D) Vertical

Question 39

Exchanges are sites where many buyers and sellers conduct business transactions. ___________ exchanges serve one industry

A) Limited
B) Functional
C) Horizontal
D) Vertical
E)g., automotive, chemical), along the entire supply chain.

Question 40

E-tailers face challenges that can interfere with the growth of their online marketing efforts. For instance, regular brick and mortar distributors may feel threatened if a manufacturer who normally supplies their products attempts to sell products directly to consumers online. This is an example of __________________.

A) Managing order fulfillment and logistics
B) Channel conflict
C) Determining viability and risk
D) Identifying appropriate business models

Question 41

Rates for digital advertising can be determined in a number of ways. Using the Cost per _________________ method, the advertiser pays based on the number of people who perform some specific behavior such as watching a video, fill out a lead form, make a donation, and so on.

A) Click
B) Action
C) Sale
D) Impression

Question 42

According to your textbook, the most common forms of online payment involve paying with _____________ or ____________________.

A) Credit cards / electronic bill payment
B) Debit card / credit card
C) Smart cards / micropayments
D) e-Cash / smart cards

Question 43

Your textbook listed a number of security requirements for conducting e-commerce. _______________ helps insure that the buyer, the seller, and the paying institutions all know the identity of the parties with whom they are dealing.

A) Authentication
B) Nonrepudiation
C) Integrity
D) Privacy

Question 44

Search engine optimization SEO) and Pay per click PPC) advertising represent ___________ and __________ methods of promoting a business on search engines.

A) Illegal / legal
B) Non-traditional / traditional
C) Unpaid / paid
D) Social / non-social

Question 45

Your textbook listed a number of security requirements for conducting e-commerce. _____________ is necessary to ensure that data and information transmitted in e-commerce, such as orders, replies to queries, and payment authorizations, not be accidentally or maliciously altered or destroyed during transmission.

A) Authentication
B) Nonrepudiation
C) Integrity
D) Privacy

Question 46

Rates for digital advertising can be determined in a number of ways. Using the Cost per _________________ method, advertiser pays for the number of users exposed to the ad, typically expressed as cost per mille CPM) or cost per thousand CPT). Both terms base the ad charge on how many thousands of users are exposed to the ad.

A) Click
B) Action
C) Sale
D) Impression

Question 47

Understanding the differences between various digital ad payment methods is important because each method has a different impact on determining the effectiveness of an advertising campaign as well as estimates of ____________________________ related to ad spending dollars.

A) Competitive impact
B) Brand image enhancement
C) Market share
D) Return on Investment ROI)

Question 48

Allyson Grace uses MyCheckFree.com to pay her bills each month. Her cell phone, utility bills, car insurance bills and so on are sent electronically to MyCheckFree each month. The service pays the bills when they are due and transfers money from Allyson's checking account to cover her expenses. Allyson is using the _____________________________ method of paying bills over the Internet.

A) Online banking
B) Biller direct
C) Bill consolidator
D) Bill forwarding

Question 49

A popular method of paying bills online is called ____________________, where money is transferred electronically from a payer's account to the recipient's.

A) Electronic checks
B) Micropayments
C) e-Cash person to person)
D) Electronic funds transfer EFT)

Question 50

Your textbook listed a number of security requirements for conducting e-commerce. Which of the following was not one of the requirements listed?

A) Authentication
B) Safety fraud protection)
C) Privacy
D) Price guarantees

Question 51

With ______________________, buyers write a digital check to a merchant who then deposits it electronically in their bank account.

A) Electronic checks
B) Micropayments
C) e-Cash person to person)
D) Electronic funds transfer EFT)

Question 52

Your textbook listed a number of security requirements for conducting e-commerce. ____________ helps consumers feel secure when providing a credit card number over the Internet and helps them feel protected against criminals posing as sellers.

A) Authentication
B) Safety
C) Integrity
D) Nonrepudiation

Question 53

When using an) ______________ payment system, buyers create a special online account from which funds can be sent to merchants or individuals. PayPal is perhaps the most popular example of this method.

A) Electronic checks
B) Micropayments
C) e-Cash person to person)
D) Electronic funds transfer EFT)

Question 54

Michael Wood logs into his Citibank checking account each week and uses their Website to pay any bills he has received. The money is transferred from his checking account to the merchants or individuals he wants to pay. Michael is using the ____________________ method of paying bills over the Internet.

A) Online banking
B) Biller direct
C) Bill consolidator
D) Bill forwarding

Question 55

Rates for digital advertising can be determined in a number of ways. Using the Cost per _________________ method, the advertiser pays based on how many people take action by clicking on the ad, which often serves as a hyperlink to the advertiser's Web site or a page promoting the advertiser's brand.

A) Click
B) Action
C) Sale
D) Impression

Question 56

Your textbook listed a number of security requirements for conducting e-commerce. ________________ means that merchants are protected against customers unjustly claiming they did not place an order and customers protected from merchants unjustly claiming they did not receive payment.

A) Authentication
B) Nonrepudiation
C) Order fulfillment
D) Claim denial

Question 57

Micropayments are often made using a _______________________.

A) Credit card
B) Electronic check
C) Smart card
D) Cell phone

Question 58

When purchasing products/services online, most consumers use some form of _______________________, such as PayPal.

A) Transaction credit service
B) Electronic payment system
C) Digital funds conveyance service
D) Electronic currency

Question 59

Carolynn Schmitz pays all of her bills online. She has accounts set up with all the merchants she does business with. Each month when she receives a bill, she logs into the merchant's Website and authorizes a transfer of funds from her checking account to the merchant. Carolynn is using the _________________________ method of paying bills online.

A) Online banking
B) Biller direct
C) Bill consolidator
D) Bill forwarding

Question 60

When consumers want to purchase products/services that are priced too low i.e. less than $1) to be paid with credit cards, an) ______________________ payment system is often used.

A) Electronic checks
B) Micropayments
C) e-Cash person to person)
D) Electronic funds transfer EFT)

Question 61

A brick-and-mortar company is one where a significant or substantial part of its business involves the use of electronic or digital technologies to accomplish business tasks.

Question 62

The biggest challenge for e-commerce sites that want to comply with state sales tax laws is ___________________.

A) Getting customers to pay the tax
B) Determining a customer's legal state of residence
C) That regulations vary from state to state, creating a compliance nightmare.
D) Figuring out how to apply the law to international customers.

Question 63

ProWeb Designs specializes in developing websites for small and medium sized businesses. They have an excellent reputation for servicing their client's needs. ProWeb Designs is most likely part of the business-to-consumer marketplace.

Question 64

An e-business is a company where a significant or substantial part of its business involves the use of electronic or digital technologies to accomplish business tasks.

Question 65

One consequence of the growth of e-commerce is disintermediation which has resulted in significant ___________________ in some industries.

A) Price increases
B) Job losses
C) Growth of jobs in foreign countries
D) Increase in product options and features

Question 66

Chegg sells and rents textbooks to college students. Chegg operates in the business-to-consumer marketplace.

Question 67

Google's sheer size, power, and unusually large breadth of services almost ensure that it will be scrutinized for workplace safety violations.

Question 68

As a result of e-commerce, some industries have experienced ___________________. This occurs when new jobs are produced as a result of opportunities created by the growth of e-commerce.

A) Reinternetization
B) Intermediation
C) Reintermediation
D) Disintermediation

Question 69

Which of the following best describes the current status of sales tax law and e-commerce?

A) Consumers are only obligated to pay sales tax on e-commerce purchases if the merchant collects it at time of purchase.
B) Consumers have the option to pay or not pay sales tax at the time they make an e-commerce purchase.
C) Consumers are legally obligated to pay sales tax only if the e-commerce merchant is based in their home state.
D) Consumers who live in states that have sales tax are legally obligated to pay sales tax, even if it is not collected by the online merchant.

Question 70

Google is a very prosperous, global e-business. Most of its revenue is generated from a subscription business model.

Question 71

By giving away many of its services, Google looks as though they are trying to drive other companies out of business through a practice called predatory pricing, offering goods and services at prices that don't cover the costs of producing these services.

Question 72

Because of Google's sheer size, power, and unusually large breadth of services it has come under the scrutiny of anti-trust regulators in multiple countries.

Question 73

Chegg sells and rents textbooks to college students. Chegg operates in the business-to-not-for-profit marketplace.

Question 74

Safety-net.com is a consulting firm that advises the armed forces and Homeland Security agencies with regard to cybersecurity threats from terrorists and foreign intelligence services. Safety-net.com is most likely part of the business-to-government marketplace.

Question 75

While most of us use Google services like Gmail, Google Maps, YouTube and the search engine for free, the fact that it generates most of its revenue from other businesses means it is part of a business to business market.

Question 76

Following a customer's order from an e-commerce site, merchants scramble to find products to be shipped, pack them, arrange for delivery, collect payment and handle returns of unwanted or defective products. These activities are collectively known as ______________________.

A) e-Commerce infrastructure
B) e-Payment
C) Order fulfillment
D) e-Billing

Question 77

When making an out-of-state purchase as is often the case when buying online), consumers are usually obligated to pay a ________________, which is usually the same rate as a sales tax. However, most consumers ignore this requirement.

A) Use tax
B) State import fee
C) Compliance tax
D) Interstate trade tax

Question 78

Privacy is an increasing concern to Internet users. One privacy concern is related to a practice called _________________ , where a user's Web history

A) Online spying
B) Digital detection
C) Digital stalking
D) Web tracking
E)g. sites visited) is stored in files called "Cookies" and used to monitor individuals' movements on the Internet.

Question 79

Safety-net.com is a consulting firm that advises the armed forces and Homeland Security agencies with regard to cybersecurity threats from terrorists and foreign intelligence services. Safety-net.com is most likely part of the government-to-business marketplace.

Question 80

Google is a very prosperous, global e-business. Most of its revenue is generated from an advertising business model.