Deck 7: E-Business and E-Commerce

Question 1

Smart cards can be used as credit cards, debit cards, and/or loyalty cards.

Answer 1

True

Question 2

In most cases, traditional payment systems are not effective for electronic commerce.

Answer 2

True

Question 3

The key mechanisms in the sell-side marketplace are customized electronic catalogs and reverse auctions.

Answer 3

False

Question 4

Forward auctions are auctions that sellers use as a channel to many potential buyers.

Question 5

An electronic storefront is a Web site on the Internet that represents a single store.

Question 6

The buy-side marketplace is similar to the business-to-consumer model.

Question 7

eBay is a good example of business-to-consumer electronic commerce.

Question 8

Channel conflict occurs when click-and-mortar companies have problems with their regular distributors when they sell directly to customers online.

Question 9

Internet advertising is impersonal, one-way mass communication.

Question 10

Virtual banks are those banks that are dedicated only to Internet transactions.

Question 11

Visiting the Web site of a car manufacturer (e.g., HYPERLINK "http://www.gm.com"www.gm.com), entering the specifications for the car you want, and then picking up your car at your local dealership is an example of partial electronic commerce.

Question 12

Business-to-consumer applications comprise the majority of electronic commerce volume.

Question 13

Selling products such as books and computers on the Internet may reduce vendors' selling costs by 20 to 40 percent, with further reductions being difficult because the products must be delivered physically.

Question 14

You can make a purchase in a referral mall.

Question 15

Horizontal exchanges connect buyers and sellers across many industries.

Question 16

Even though B2C EC is much larger by volume, B2B is more complex.

Question 17

In traditional commerce, one or more of the following can be digital: the product or service, the process, and the delivery agent.

Question 18

Banners are the most common form of advertisement on the Internet.

Question 19

Hacking is the indiscriminate distribution of electronic ads without permission of the receiver.

Question 20

Each buyer needs only one e-wallet for all merchants.

Question 21

Refer to IT's About Business 7.1: Minecraft's founder Markus Persson had to do a great deal of marketing to promote his product.

Question 22

eBay uses a _____ auction.

A) forward
B) static
C) reverse
D) physical
E) simple

Question 23

Which type of electronic commerce does Amazon practice?

A) business-to-employee
B) consumer-to-consumer
C) consumer- to-business
D) business-to-consumer
E) employee-to-business

Question 24

In _____ auctions, there is one buyer who wants to buy a product. Suppliers submit bids, and the lowest bid wins.

A) forward
B) static
C) reverse
D) physical
E) simple

Question 25

Refer to IT's About Business 7.3: Selling luxury items online is as easy as selling books and DVDs.

Question 26

A vendor asks its business partners to place logos or banners on their Web sites. If customers click on a logo, visit the vendor's site, and make a purchase, then the vendor pays a commission to the partner. This scenario illustrates which business model?

A) find-the-best-price
B) electronic tendering system
C) name-your-own-price
D) online direct marketing
E) affiliate marketing

Question 27

If you are an worker managing your fringe benefits over your company's intranet, you are engaging in _________ e-commerce.

A) business-to-business
B) business-to-consumer
C) consumer-to-consumer
D) business-to-employee
E) government-to-citizen

Question 28

Refer to IT's About Business 7.4: The Jockey Club is losing customers to online competition because its Web site does not enable online betting.

Question 29

The degree of digitization relates to all of the following except:

A) the product or service sold
B) the process by which the product is produced
C) the delivery agent or intermediary
D) the size of e-commerce transactions
E) none of the above

Question 30

In _______ e-commerce, the sellers and buyers are organizations.

A) government-to-citizen
B) consumer-to-consumer
C) business-to-business
D) business-to-consumer
E) consumer-to-business

Question 31

Direct payment of Social Security benefits is an example of ______ e-commerce.

A) government-to-citizen
B) consumer-to-consumer
C) consumer-to-business
D) business-to-consumer
E) business-to-business

Question 32

_____ auctions are the most common auction model for large purchases.

A) Forward
B) Static
C) Reverse
D) Physical
E) Simple

Question 33

_____, which is a broader concept than _____, is the buying and selling of goods and services, as well as servicing customers, collaborating with business partners, and performing transactions within an organization.

A) Business-to-business electronic commerce, business-to-customer electronic commerce
B) Electronic commerce, electronic business
C) Business-to-customer electronic commerce, business-to-business electronic commerce
D) Business-to-business electronic commerce, intrabusiness electronic commerce
E) Electronic business, electronic commerce

Question 34

_____ auctions employ a request for quotation.

A) Forward
B) Static
C) Reverse
D) Physical
E) Simple

Question 35

Which of the following statements regarding the relationship between electronic commerce and search is not correct?

A) Purchases often follow successful online searches.
B) Shopping carts are often abandoned after unsuccessful online searches.
C) Retailers will provide fewer product details to avoid information overload for customers.
D) Customers will be able to find the closest store offering the product that they want.
E) Customers will have more relevant product information in the near future.

Question 36

E-commerce affects only businesses that sell products online.

Question 37

Which type of electronic commerce is the largest by volume?

A) business-to-employee
B) consumer-to-consumer
C) business-to-business
D) business-to-consumer
E) none of the above

Question 38

Which of the following is not an effect that E-commerce has had on organizations?

A) E-commerce enables smaller businesses to operate in areas dominated by larger companies.
B) E-commerce increases the number of potential customers to whom the company can market its products.
C) E-commerce is a costly medium for increasing market share.
D) E-commerce removes many barriers for start-up businesses.
E) E-commerce makes it easy to reach customers around the world.

Question 39

In ________ e-commerce, an organization provides information and services to its workers.

A) business-to-employee
B) consumer-to-consumer
C) consumer-to-business
D) business-to-consumer
E) government-to-business

Question 40

In which of the following business models do businesses request quotes from suppliers and use B2B with a reverse auction mechanism?

A) find-the-best-price
B) electronic tendering system
C) name-your-own-price
D) online direct marketing
E) affiliate marketing

Question 41

________ is the process whereby a fully automated electronic commerce transaction eliminates middlemen.

A) Disintegration
B) Supply chain integration
C) Direct sales
D) Disintermediation
E) Value-added services

Question 42

_____ refers to online word-of-mouth marketing.

A) Permission marketing
B) One-to-one marketing
C) Personalized marketing
D) Viral marketing
E) Direct mail

Question 43

Refer to IT's About Business 7.1: Which of the following is not true about Persson's Minecraft?

A) Persson developed Minecraft on his own.
B) Minecraft is played through a Web browser.
C) Minecraft is distributed by Apple Co.
D) Mojang is a mobile version of Minecraft that will be distributed through app stores.
E) Minecraft players build landscapes.

Question 44

The advantages of electronic commerce for consumers include all of the following except:

A) You can buy from home 24 hours per day, 7 days per week.
B) You have a wider variety of products to choose from.
C) You typically cannot access additional information, so you do not have information overload.
D) You can easily compare prices and features.
E) You can find unique items.

Question 45

_____ offer(s) consumers incentives to accept advertising and e-mail voluntarily.

A) Viral marketing
B) Personalized marketing
C) Permission marketing
D) Paper catalogs
E) Direct mail

Question 46

A _____ is automatically launched by some trigger and appears behind the active window.

A) keyword banner
B) random banner
C) pop-up ad
D) pop-under ad
E) text box

Question 47

In IT's About Business 7.2, Treat America turned to E-business for all of the following reasons except:

A) The company needed to capture extensive data from each vending machine.
B) The company wanted a competitive advantage over competitors that simply raised prices.
C) The company's vending machines are unmanned.
D) Gas prices are increasing.
E) The company's vending machines are open beyond "normal" business hours.

Question 48

Which of the following is a problem that e-commerce can cause for the airline industry?

A) Too many fares
B) Mistakes in fares
C) Too few fares
D) No fares offered on certain routes
E) Too many fares offered on certain routes

Question 49

In _____, direct and indirect materials in one industry are purchased on an as-needed basis.

A) horizontal exchanges
B) vertical exchanges
C) buy-side marketplaces
D) functional exchanges
E) sell-side marketplaces

Question 50

Difficulties in order fulfillment are most closely associated with which type of electronic commerce?

A) business-to-business
B) business-to-consumer
C) government-to-citizen
D) business-to-employee
E) mobile commerce

Question 51

_______ e-commerce is also known as e-tailing.

A) Business-to-business
B) Collaborative commerce
C) Intrabusiness
D) Business-to-consumer
E) Consumer-to-business

Question 52

The key mechanisms of the _____ marketplace model are forward auctions and electronic catalogs that can be customized for each large buyer.

A) buy-side
B) sell-side
C) group purchasing
D) desktop purchasing
E) electronic exchange

Question 53

Cyberbanking offers all of the following advantages except:

A) It is convenient for customers.
B) It saves time for customers.
C) It includes inexpensive transactions for the bank.
D) It can help recruit remote customers.
E) It is more expensive for the customer.

Question 54

Internet advertising improves on traditional advertising in all of the following ways except:

A) Internet ads can be updated at any time at minimal cost.
B) Internet ads can reach large numbers of potential buyers all over the world.
C) Internet ads are always more effective than other types of advertising.
D) Internet ads can make effective use of multimedia.
E) Internet ads are current.

Question 55

Which of the following is not an electronic commerce application?

A) home banking
B) buying stocks
C) evaluating an employee
D) conducting an auction
E) buying real estate

Question 56

Which of the following is not an advantage of e-tailing?

A) You can buy from home, 24 hours per day.
B) You have only a few products to choose from.
C) You can obtain detailed information on products.
D) You can compare competitors' products and prices.
E) All of the above

Question 57

In the _____ marketplace model, organizations attempt to sell their products or services to other organizations electronically.

A) buy-side
B) sell-side
C) group purchasing
D) desktop purchasing
E) electronic exchange

Question 58

In the _____ B2B application, the orders of many buyers are aggregated so that they comprise a large volume, in order to merit more seller attention.

A) buy-side
B) sell-side
C) auctions
D) group purchasing
E) electronic exchange

Question 59

In the _____ marketplace model, EC technology is used to streamline the purchasing process in order to reduce the cost of items purchased, the administrative cost of procurement, and the purchasing cycle time.

A) buy-side
B) sell-side
C) auctions
D) group purchasing
E) electronic exchange

Question 60

_____ connect buyers and sellers across many industries and are used mainly for indirect materials.

A) Horizontal exchanges
B) Vertical exchanges
C) Buy-side marketplaces
D) Functional exchanges
E) Sell-side marketplaces

Question 61

_____ contain a chip that can store information and be used for several purposes.

A) Electronic checks
B) Stored-value money cards
C) Purchasing cards
D) Smart cards
E) Person-to-person payments

Question 62

Discuss the reasons for E-commerce failures.

Question 63

Differentiate among sell-side marketplaces, buy-side marketplaces, and electronic exchanges.

Question 64

______ are a form of e-cash that enable you to store a fixed amount of prepaid money and then spend it as necessary.

A) Electronic checks
B) Stored-value money cards
C) Purchasing cards
D) Smart cards
E) Person-to-person payments

Question 65

_____ are a payment mechanism that are similar to regular bank checks but are transmitted electronically, with a signature in digital form.

A) Electronic checks
B) Electronic credit cards
C) Electronic cash transactions
D) Electronic wallets
E) Electronic debit cards

Question 66

Companies use Web sites for all of the following reasons except:

A) To reduce operational and transaction costs.
B) To enhance their reputation.
C) To sell goods and services.
D) To reduce the amount of actual cash they need to deal with.
E) To induce people to visit a physical location.

Question 67

_____ enable two individuals to transfer funds without using a credit card.

A) Electronic checks
B) Stored-value money cards
C) Purchasing cards
D) Smart cards
E) Person-to-person payments

Question 68

Differentiate between pure and partial electronic commerce. Provide examples of companies in each category.

Question 69

Differentiate between forward and reverse auctions.

Question 70

_____ refers to the practice of registering or using domain names for the purpose of profiting from the goodwill or trademark belonging to someone else.

A) Domain spoofing
B) Domain masquerading
C) Domain tasting
D) Cybersquatting
E) Domain fraud

Question 71

All of the following are limitations of traditional payment methods in electronic commerce except:

A) Cash cannot be used because there is no face-to-face contact.
B) Paying for goods and services via the mail takes more time.
C) Not all organizations accept credit cards.
D) It is more secure for the buyer to use the telephone than to complete a secure transaction on a computer.
E) None of the above

Question 72

The practice of using similar but not identical domain names is called _____.

A) domain spoofing
B) domain masquerading
C) domain tasting
D) cybersquatting
E) domain fraud

Question 73

The device that Treat America installed on top of each of their machines communicates the following pieces of data except:

A) the amount of money in the machine at any given minute.
B) the amount of product inventory remaining.
C) whether the machine had been moved.
D) the number of customers.
E) whether the door had been opened after business hours.

Question 74

_____ are software mechanisms that provide security measures and convenience for electronic commerce purchasing.

A) Electronic checks
B) Digital wallets
C) Purchasing cards
D) Smart cards
E) Person-to-person payments

Question 75

Discuss the various business-to-consumer applications (e.g., e-tailing, electronic storefronts, electronic malls).

Question 76

_____ are typically used for unplanned B2B purchases for amounts under $2000.

A) Electronic checks
B) Stored-value money cards
C) Purchasing cards
D) Smart cards
E) Person-to-person payments

Question 77

Differentiate between electronic storefronts and electronic malls, and provide examples of each.

Question 78

Discuss the benefits and limitations of electronic commerce.

Question 79

Discuss the various types of electronic commerce.

Question 80

_____ use credit card numbers, transmitted electronically over the Internet, to pay for goods and services. They are either unencrypted or encrypted, with coded data readable by an intermediary between the buyer's and seller's banks.

A) Electronic checks
B) Electronic credit cards
C) Electronic cash transactions
D) Electronic wallets
E) Electronic debit cards