Question 1

As economists had envisioned, prices of products sold on the Web are consistently lower than elsewhere, and the online marketplace is characterized by decreasing price dispersion.

Accepted Answer

While economists predicted lower prices and decreased price dispersion online, in reality, prices can vary widely due to factors like brand reputation, shipping costs, and consumer trust, leading to persistent price dispersion.

Question 2

Social e-commerce is the largest type of e-commerce.

Accepted Answer

The largest type of e-commerce is actually business-to-business (B2B) e-commerce. Social e-commerce refers to the use of social media platforms for selling products and is a subset of business-to-consumer (B2C) e-commerce. While social e-commerce is growing in popularity, it is not yet as large as B2B e-commerce.

Question 3

The future of e-commerce will include an increase in regulatory activity both in the United States and worldwide.

Accepted Answer

As e-commerce continues to grow and become more prevalent, regulators are expected to increase their activity to ensure consumer protection, privacy, and a level playing field for businesses. This is already seen in the introduction of data protection laws such as GDPR in the EU and increased scrutiny of tech giants by regulatory bodies in the US.

Question 4

Customization involves changing a delivered product or service based upon a consumer's preferences or past purchasing behavior.

Accepted Answer

Customization indeed involves altering a delivered product or service according to a customer's preferences or previous buying patterns. It can include features such as personalized recommendations, tailored products, or personalized communication based on a customer's past spending or browsing history.

Question 5

Over 50% of the world's population is now online.

Accepted Answer

The answer of Over 50% of the world's population is...

Question 6

In 2013, roughly ________ million people in the United States access the Internet via tablets.
A)23
B)43
C)123
D)143

Accepted Answer

The answer of In 2013, roughly ________ million people in...

Question 7

E-commerce can be defined as:
A)the use of the Internet, the Web, and mobile apps to transact business.
B)the use of any Internet technologies in a firm's daily activities.
C)the digital enablement of transactions and processes within an organization.
D)any digitally enabled transactions among individuals and organizations.

Accepted Answer

E-commerce specifically refers to the use of Internet, Web, and mobile technology for conducting business transactions. While B, C, and D all involve some form of digital technology, they are not limited to transactions or business activities.

Question 8

Retail e-commerce is expected to continue growing at double-digit growth rates in 2013-2014.

Accepted Answer

According to eMarketer's forecast, global retail e-commerce sales are expected to grow at a rate of 14.3% in 2014, following a growth of 16.4% in 2013.

Question 9

Price transparency refers to the ability of merchants to segment the market into groups willing to pay different prices.

Accepted Answer

Price transparency refers to the degree to which prices are visible and easily comparable among different sellers or retailers. It does not refer to the ability of merchants to segment the market into different groups for pricing purposes. In fact, price discrimination (charging different prices to different groups of customers) is generally associated with low price transparency, as it allows merchants to charge different prices without fear of customers comparing prices and shifting their purchases to lower-priced sellers.

Question 10

The Reinvention period of e-commerce is as much a sociological phenomenon as it is a technological or business phenomenon.

Accepted Answer

The Reinvention period of e-commerce not only involves technological advancements and business strategies but also changes in consumer behavior, cultural values, and societal norms, making it a sociological phenomenon as well.

Question 11

Ubiquity decreases cognitive energy outlays.

Accepted Answer

Ubiquity refers to the state of being everywhere, and research has found that when something is ubiquitous, it requires less cognitive effort to process and understand because it becomes more familiar and automatic. Therefore, ubiquity can decrease cognitive energy outlays.

Question 12

All of the following are major technology trends in e-commerce in 2013-2014 except:
A)cloud computing enables the creation of "big data."
B)apps create a new platform for online marketing and commerce.
C)the mobile computing platform begins to rival the PC platform.
D)real-time advertising becomes a reality with gains in computing power and speeds.

Accepted Answer

While all of the other options are major technology trends in e-commerce in 2013-2014, the creation of "big data" through cloud computing is not a trend specific to e-commerce and therefore is not a major technology trend in e-commerce during this time period.

Question 13

The fact that e-commerce is conducted on the basis of universal standards decreases market entry costs for merchants.

Accepted Answer

Universal standards in e-commerce, such as standardized payment methods and shipping options, can reduce the time and expense required for merchants to enter new markets.

Question 14

E-business involves commercial transactions involving an exchange of value across organizational boundaries.

Accepted Answer

The answer of E-business involves commercial transactions involving an exchange...

Question 15

The emergence of entrepreneurial social and local firms is one of the hallmarks of the Consolidation period of e-commerce.

Accepted Answer

The Consolidation period of e-commerce is characterized by the dominance of large firms and the establishment of major players, rather than the emergence of small entrepreneurial firms.

Question 16

Web 2.0 describes a set of applications and technologies that encourage and rely on user- and consumer-generated interactivity and content.

Accepted Answer

Web 2.0 is characterized by user-generated content and interactivity, including social media, blogs, wikis, and other online platforms.

Question 17

Which of the following statements about e-commerce in the United States in 2013 is not true?
A)Mobile e-commerce generates more revenue than social e-commerce.
B)Approximately 155 million Americans are expected to make at least one purchase online.
C)The amount of data that the average American consumes continues to increase.
D)Growth rates for B2C e-commerce are higher in the United States than in Europe.

Accepted Answer

Growth rates for B2C e-commerce are actually higher in Europe than in the United States.

Question 18

Which of the following is not a major business trend in e-commerce in 2013-2014?
A)Social e-commerce continues to grow.
B)Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants.
C)Facebook grows to more than 1.1 billion users.
D)Social and mobile advertising begins to challenge search engine marketing.

Accepted Answer

While social e-commerce, the growth of Facebook, and the rise of social and mobile advertising are all major business trends in e-commerce for 2013-2014, there is no evidence that small businesses and entrepreneurs are hampered by the rising cost of market entry. In fact, many e-commerce platforms and tools have made it easier and more affordable for small businesses to enter the market.

Question 19

E-commerce as we know it today would not exist without the Internet.

Accepted Answer

E-commerce is conducted through electronic means, which was made possible with the widespread use of the Internet. Without the Internet, it would be very difficult to conduct e-commerce activities on a large scale.

Question 20

Cost transparency refers to the ability of consumers to discover the actual costs merchants pay for products.

Accepted Answer

Cost transparency allows consumers to make more informed purchasing decisions and promotes competition among merchants.

Quiz 1: The Revolution Continues