Electronic Commerce 2012, 7e (Turban)
Chapter 3 Retailing In Electronic Commerce: Products and Services
3.1 True/False
1) Amazon is recognized as an online leader in creating sales through customer intimacy
and customer relationship management (CRM).
Answer: TRUE
Diff: 1 Page Ref: 100
2) According to Internet Retailer, in 2009, approximately 20 percent of adult U.S. Internet
users shopped online and/or research offline sales online.
Answer: FALSE
Diff: 2 Page Ref: 102
3) Sales of goods on the Internet are no longer increasing rapidly because of the
bankruptcy of numerous dot-coms.
Answer: FALSE
Diff: 2 Page Ref: 102
4) As the number of Internet users reaches saturation, the challenge for e-retailers now is to
increase the amount that shoppers spend online.
Answer: TRUE
Diff: 3 Page Ref: 102
5) E-tailing is retailing conducted online over the Internet.
Answer: TRUE
Diff: 1 Page Ref: 102
6) A retailer is a sales intermediary, a seller that operates between manufacturers and
customers.
Answer: TRUE
Diff: 1 Page Ref: 102
7) When new capabilities are required to conduct EC, for example capabilities in logistics
and distribution, one method is to obtain them through external strategic alliances.
Answer: TRUE
Diff: 1 Page Ref: 104
8) With all else being equal in the online environment, goods that are relatively expensive
or frequently purchased are expected to have higher sales volumes than goods that are
inexpensive or infrequently purchased.
Answer: FALSE
Diff: 3 Page Ref: 105
9) A business model is a description of how an organization intends to generate revenue
through its business operations.
Answer: TRUE
Diff: 2 Page Ref: 107
10) Direct marketing describes marketing that takes place over the Internet involving
wholesalers and retailers.
Answer: FALSE
Diff: 2 Page Ref: 108
11) Click-and-mortar retailers are brick-and-mortar retailers that offer a transactional Web
site from which to conduct business.
Answer: TRUE
Diff: 1 Page Ref: 110
12) Target, Sears, and Macys are click-and-mortar businesses selling in a multichannel
business model.
Answer: TRUE
Diff: 1 Page Ref: 110
13) Types of online malls include referring directories and event shopping malls.
Answer: FALSE
Diff: 2 Page Ref: 110
14) Viral marketing, market makers, and information portals are types of B2C business
models.
Answer: TRUE
Diff: 2 Page Ref: 111
15) Event-based commerce is a wireless based technology in which vendors send
advertisements relevant to the location where customers are at a given time.
Answer: FALSE
Diff: 2 Page Ref: 112
16) Private shopping clubs and group gifting online are two variations of the personalized
event shopping model.
Answer: TRUE
Diff: 1 Page Ref: 112
17) Competition among online travel e-tailers is fierce, with low margins, little customer
