Question 1

In order to accept credit card payments for purchases,American Express,Visa and other credit card companies require that e-commerce Web sites be PCI DSS compliant and certified to __________.

Accepted Answer

PCI DSS compliance helps in preventing credit card fraud and ensures that the e-commerce website is following industry-standard security practices to protect sensitive credit card information. The other options (B, C, and D) are not directly related to accepting credit card payments and PCI DSS compliance.

Question 2

Public and private __________ are sites where many sellers and many buyers buy and sell.

Accepted Answer

The word "exchanges" specifically refers to sites where multiple sellers and buyers come together to engage in commerce. Networks could refer to a variety of structures, and while sources and value chains are related to commerce, they do not specifically refer to sites where buying and selling takes place.

Question 3

Over 85 percent of e-commerce dollar volume is __________ commerce.

Accepted Answer

B2B (Business to Business) commerce accounts for over 85 percent of e-commerce dollar volume, as it involves transactions between businesses, which typically have larger transaction sizes compared to B2C (Business to Consumer) commerce.

Question 4

Which of the following is not one of Amazon.com's success factors?

Accepted Answer

Amazon.com's success factors include patented IT developments, personalized service, and physical warehouses designed for efficient shipping. However, they have not maintained a constant business model - they have continually adapted and expanded their offerings and services.

Question 5

Priceline.com is an example of __________ commerce because the customer names a product or service and the desired price,and then Priceline tries to find a supplier to fulfill that need.

Accepted Answer

Priceline.com operates on a consumer-to-business (C2B) model where consumers specify the price they are willing to pay for a service, and businesses decide whether to accept the offer.

Question 6

Effective e-business models and competitive strategies are developed by __________.

Accepted Answer

Effective e-business models and competitive strategies require input and collaboration from various functional areas, including marketing, IT, operations, logistics, and accounting. Vendors and service providers, senior marketing managers, and Web site designers may contribute to these efforts, but they alone cannot develop a comprehensive and successful business model or competitive strategy.

Question 7

Online channels and connectivity support __________,which minimizes the limitations of having to be physically present in a single location to collaborate or train.

Accepted Answer

Telepresence enables individuals to collaborate and train without physically being in the same location, allowing for greater connectivity and flexibility. The other options listed do not directly relate to this concept.

Question 8

When a user clicks on a malvertisement on a Web site,the ad will __________.

Accepted Answer

Malvertisements are malicious advertisements that can redirect users to malicious websites, which is a replica of the site the user was expecting. While malvertisements may also download tracking cookies, release malware to launch attacks on government agencies, or perform other malicious activities, these are not always the case. Therefore, the best answer is B, as it is the most common scenario associated with malvertisements.

Question 9

When managers are planning and managing their online business,they should do all of the following except _____.

Accepted Answer

Building the marketing plan around the products rather than on the customer is not a best practice in online business planning and management. Successful online businesses prioritize the customer and their needs and preferences when developing marketing strategies.

Question 10

A service level agreement (SLA)is a legal written contract between a vendor and client in which the vendor guarantees __________.

Accepted Answer

The purpose of an SLA is to define a minimal level of service that the vendor will provide to the client. It outlines the services, standards, and responsibilities expected from the vendor in order to meet the client's needs. It may also include consequences if the vendor fails to meet the agreed-upon level of service. So, the best choice is D, as it represents the key function of an SLA.

Question 11

A benefit of hosting an e-commerce Web site on a third-party's server is __________,which is being able to add-on additional capacity incrementally,quickly,and as needed.

Accepted Answer

Scalability refers to the ability to add or remove resources as needed, such as server capacity, storage space, and bandwidth. Hosting an e-commerce website on a third-party server allows for easy scalability, which is important for accommodating changes in traffic and sales volume. This can help ensure that the website remains fast and responsive, even during peak periods.

Question 12

Characteristics of ING Direct's competitive strategy include all of the following except:

Accepted Answer

The statement "could not be copied by competitors" is not necessarily true, as competitors could also offer high savings account rates and adopt an online-only model similar to ING Direct's.

Question 13

Which of the following is not a characteristic of competitive innovation?

Accepted Answer

Competitive innovation is characterized by the fact that leading companies are always looking for next-generation capabilities to develop new competitive advantage, which means that no competitive innovation remains unique for long. Integrating social networks is a current approach to competitive innovation. However, most innovations can be duplicated or reverse-engineered by other companies, so the characteristic "most innovations cannot be duplicated by other companies" is not true.

Question 14

For banks,one benefit from implementing online banking is __________.

Accepted Answer

The answer of For banks,one benefit from implementing online banking...

Question 15

In the e-commerce business model __________,a vendor asks its partners to place logos or banner ads on their sites.If customers click the logo,go to vendor's site,and buy;then the vendor pays a commission to partners.

Accepted Answer

This describes the affiliate marketing model where vendors pay a commission to partners for driving traffic and sales to their site through logos or banner ads placed on partner websites.

Question 16

Which of the following is not one of the challenges facing many e-tailers that can interfere with the growth of its e-tailing efforts?

Accepted Answer

Reaching customers is not typically considered a challenge for e-tailers, as they have access to a global market through the internet. However, channel conflict (competing with other channels such as brick-and-mortar stores), conflict within their own offline operations, and tough order fulfillment and logistics problems are all common challenges faced by e-tailers.

Question 17

E-procurement strategies and solutions have two basic goals,which are _____.

Accepted Answer

The two basic goals of e-procurement strategies and solutions are to control costs and simplify processes. Collaborations and negotiations, supplier selection and product selection, and RFQ processing and exchanges are sub-activities or processes that contribute to achieving these two main goals.

Question 18

Sears uses __________ as a selling channel to liquidate (get rid of)its excess or discontinued inventory.

Accepted Answer

Sears uses forward auctions as a selling channel to liquidate its excess or discontinued inventory by auctioning them off to the highest bidder. In forward auctions, the seller starts with a minimum price, and potential buyers bid higher until the auction ends, and the highest bidder wins. This helps Sears quickly get rid of its excess inventory while also generating revenue from the sale.

Question 19

The benefits of streamlining the e-procurement process within an organization's value chain include all of the following except:

Accepted Answer

Streamlining the e-procurement process does not necessarily maximize the number of suppliers, but rather allows for more efficient and effective communication with existing suppliers.

Question 20

E-sourcing refers to the many __________ methods.

Accepted Answer

The answer of E-sourcing refers to the many __________ methods.
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Quiz 6: E-Business and E-Commerce