Question 1

Which of the following items has the highest degree of digitization?&#10;A) A book that is out of stock in a store and is being shipped to your home&#10;B) A book that is advertised on the Internet but that you buy in a store&#10;C) A book that you order online to be shipped to your home&#10;D) An e-book that you order online for a reader such as a Kindle or Nook

Accepted Answer

An e-book is a completely digital product that does not require any physical shipment or handling, making it the highest degree of digitization. Choices A and C involve physical books being shipped to a location, while choice B only involves advertising on the internet and still requires a physical purchase in a store.

Question 2

Electronic commerce removes many of the barriers that previously impeded entrepreneurs seeking to start their own businesses.

Accepted Answer

Electronic commerce allows entrepreneurs to start their businesses online with lower start-up costs, easier access to global markets, and simplified supply chain management. Therefore, it removes many of the barriers that previously made it difficult for individuals to start and succeed in business.

Question 3

Business-to-business electronic commerce involves electronic relationships with _____.&#10;A) customers&#10;B) suppliers&#10;C) resellers&#10;D) all of these options

Accepted Answer

Business-to-business electronic commerce involves electronic relationships with customers, suppliers, and resellers.

Question 4

A _____ is automatically launched by some trigger and appears in front of the active window.&#10;A) keyword banner&#10;B) random banner&#10;C) pop-up ad&#10;D) pop-under ad

Accepted Answer

A pop-up ad is automatically launched by some trigger (usually a click or page load) and appears in front of the active window. Keyword banners are ads that appear based on the keywords used in web searches. Random banners are ads that appear randomly on a webpage. Pop-under ads are similar to pop-up ads, but they launch behind the active window.

Question 5

Purchasing products and services online often cuts out the middleman, who has traditionally sold the product and/or service. This process is called _____.&#10;A) straight-to-consumer services&#10;B) replacement of brick-and-mortar stores&#10;C) disintermediation&#10;D) dysfunctionalization

Accepted Answer

Disintermediation refers to the elimination of intermediaries, such as middlemen or brokers, in a supply chain. When consumers purchase products and services online, they often bypass traditional intermediaries and buy directly from the producers or providers, resulting in disintermediation. Option A, straight-to-consumer services, is not a commonly used term and does not specifically refer to the elimination of middlemen. Option B, replacement of brick-and-mortar stores, may be a consequence of disintermediation, but it does not capture the essence of the process. Option D, dysfunctionalization, is not a recognized term in this context.

Question 6

In _____, needed services such as temporary help or extra space are traded on an as-needed basis.&#10;A) horizontal exchanges&#10;B) sell-side marketplaces&#10;C) buy-side marketplaces&#10;D) functional exchanges

Accepted Answer

Functional exchanges specialize in trading specific goods or services that are needed on a temporary basis, such as temporary help or extra space, rather than being focused on broader categories or industries.

Question 7

Banner advertising:&#10;A) is sent directly to potential customers via e-mail.&#10;B) forces customers to click on an ad to get more information.&#10;C) holds limited value because it cannot be customized to the target audience.&#10;D) is another name for pop-up advertising.

Accepted Answer

Banner advertising refers to online ads that are displayed on various websites and are clickable, taking a potential customer directly to the advertiser's website for more information. It is not sent directly to customers via email (option A) and is not the same as pop-up advertising (option D). While banner advertising may not be customized to the same degree as some other forms of digital advertising, it can still be targeted to specific audiences based on factors such as demographics, location, and browsing history.

Question 8

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

Accepted Answer

The sell-side marketplace involves electronic catalogs that are customized for specific buyers, as well as forward auctions where multiple buyers bid on a product or service offered by a single seller. These mechanisms enable sellers to efficiently reach a large number of potential buyers and optimize pricing for their goods or services.

Question 9

What area of e-commerce is especially conducive to fraud?&#10;A) Auctions&#10;B) Online storefronts&#10;C) E-mail&#10;D) Advertisements

Accepted Answer

Auctions are especially conducive to fraud because they involve multiple parties and transactions, which can make it easier for fraudsters to deceive buyers or sellers. Bidding wars can also create a sense of urgency that can lead to impulsive decisions and higher risk-taking.

Question 10

_____ connect buyers and sellers in a given industry.&#10;A) Vertical exchanges&#10;B) Horizontal exchanges&#10;C) Functional exchanges&#10;D) All of these options

Accepted Answer

Vertical exchanges connect buyers and sellers in a specific industry or supply chain. They focus on a particular industry or vertical market. Horizontal exchanges, on the other hand, connect buyers and sellers across industries or segments. Functional exchanges connect buyers and sellers who operate within a specific business function, such as marketing or finance. Therefore, the correct answer is A) Vertical exchanges.

Question 11

Unlike credit cards, payments made with purchasing cards are settled within a week.

Accepted Answer

The answer of Unlike credit cards, payments made with purchasing...

Question 12

The use of electronic commerce requires companies to hire additional employees.

Accepted Answer

The answer of The use of electronic commerce requires companies...

Question 13

The optimal outcome of personalized pricing for the merchant is minimizing the price that each customer will pay.

Accepted Answer

The answer of The optimal outcome of personalized pricing for...

Question 14

The primary characteristic of auctions is that prices are determined dynamically by competitive bidding.

Accepted Answer

The answer of The primary characteristic of auctions is that...

Question 15

Pure-play organizations:&#10;A) only sell their products in traditional brick-and-mortar stores.&#10;B) sell their products both online and in traditional brick-and-mortar stores.&#10;C) only sell their products online.&#10;D) only sell their products to other businesses.

Accepted Answer

The answer of Pure-play organizations:&#10;A) only sell their products in...

Question 16

Electronic business includes which of the following?&#10;A) Buying and selling&#10;B) Servicing customers&#10;C) Collaborating with business partners&#10;D) All of these options

Accepted Answer

The answer of Electronic business includes which of the following?&#10;A)...

Question 17

Which of the following statements about Thumbtack is NOT true?&#10;A) Thumbtack did not cold call any suppliers or customers to build their database.&#10;B) Thumbtack bought targeted Web ads on Google, Facebook, and Bing to attract professionals to sign up.&#10;C) Its initiative to use a pay-per-lead business model was unsuccessful.&#10;D) Its use of the subscription model led to customers being spammed.

Accepted Answer

The answer of Which of the following statements about Thumbtack...

Question 18

In the _____ marketplace model, the reverse auction is typically used.&#10;A) buy-side&#10;B) sell-side&#10;C) group purchasing&#10;D) electronic exchange

Accepted Answer

The answer of In the _____ marketplace model, the reverse...

Question 19

Taobao's rapid growth was the consequence of offering free registration and commission-free transactions using a free third-party payment platform.

Accepted Answer

The answer of Taobao's rapid growth was the consequence of...

Question 20

A domain name is considered to be legal when the person or business who owns the name has operated a legitimate business under that name for some period of time.

Accepted Answer

The answer of A domain name is considered to be...

Deck 9: E-Business and E-Commerce