41) Which of the following is correct?
A) Although fancy graphics, bright colors, playful music, and spinning icons can attract
attention, they also can be quite distracting and very slow to download.
B) Sites that download slowly may never have the chance to sell because customers will click to
another site.
C) None of the above
D) Both A and B
Topic: Ten Myths of E-Commerce
AACSB: Use of IT
42) The Web offers shoppers the ultimate in:
A) convenience.
B) quality.
C) differentiation.
D) service.
Topic: Ten Myths of E-Commerce
AACSB: Use of IT
43) The other name for virtual order fulfillment is:
A) drop-shipping.
B) instant shipping.
C) convenience shipping.
D) group shipping.
Topic: Ten Myths of E-Commerce
AACSB: Use of IT
44) Most common mistakes that entrepreneurs make once they finally decide to go online are:
A) they believe they have to have a “perfect” site before they can launch it.
B) few businesses get their sites “right” the first time.
C) in fact, the most successful e-commerce sites are constantly changing, removing what does
not work and adding new features to see what does.
D) All of the above
Topic: Ten Myths of E-Commerce
AACSB: Analytic Skills
11
45) Developing a community refers to:
A) attracting customers and keeping them coming back.
B) giving customers the chance to interact with other like-minded visitors .
C) providing chat rooms.
D) All of the above
Topic: Develop a Community
AACSB: Use of IT
46) ________ listings are short text advertisements with links to the sponsoring company’s Web
site that appear on the results pages of a search engine when a user types in a keyword or phrase.
A) Drop
B) Virtual
C) Negotiated
D) Paid
Topic: Develop an Effective Search Engine Optimization Strategy
AACSB: Use of IT
47) Which of the following statements is true for improving a company’s search placement
results?
A) Visit competitors’ sites for key word ideas, but avoid using the exact phrases.
B) Consider using less obvious key words and brand names.
C) Ask customers which words and phrases they use when searching for the products and
services the company sells.
D) All of the above
Topic: Develop an Effective Search Engine Optimization Strategy
AACSB: Analytic Skills
48) Paid listings also are called:
A) pay for placement.
B) pay per click.
C) pay for performance ads.
D) All of the above
Topic: Develop an Effective Search Engine Optimization Strategy
AACSB: Use of IT
12
49) The ideal domain name should be:
A) short & memorable.
B) indicative of a company’s business or business name.
C) easy to spell.
D) All of the above
Topic: Designing a Killer Web Site
AACSB: Use of IT
50) Some of the most common reasons small or mid-sized companies take their business to the
Web are to keep up with the customers and to reach global markets.
Topic: Introduction
AACSB: Analytic Skills
51) Creating a meaningful presence on the Web requires an ongoing investment of resources—
time, money, energy, and talent.
Topic: Factors to Consider Before Launching into e-commerce
AACSB: Analytic Skills
52) Web success requires a company to develop a plan for integrating the Web into its overall
strategy.
Topic: Factors to Consider Before Launching into e-commerce
AACSB: Use of IT
53) Measuring the success of its Web-based sales effort is essential to remaining relevant to
customers whose tastes, needs, and preferences are always changing.
Topic: Factors to Consider Before Launching into e-commerce
AACSB: Use of IT
54) Setting up an e-commerce site takes most companies at least six months to complete.
Topic: Ten Myths of E-Commerce
AACSB: Use of IT
13
55) It is not necessary for entrepreneurs with both physical and virtual stores to promote their
Web sites at every opportunity.
Topic: Ten Myths of E-Commerce
AACSB: Use of IT
56) It is not necessary for companies that collect information from their online customers to
safeguard their customers’ privacy.
Topic: Ten Myths of E-Commerce
AACSB: Use of IT
57) When launching an e-commerce, the most important part of any e-commerce effort is
technology.
Topic: Ten Myths of E-Commerce
AACSB: Use of IT
58) Unfortunately, many entrepreneurs tackle e-commerce by focusing on technology first and
then determine how that technology fits their business idea.
Topic: Ten Myths of E-Commerce
AACSB: Analytic Skills
59) Building a successful e-business is no different than building a successful brick-and-mortar
business, and that requires a well-thought-out strategy.
Topic: Ten Myths of E-Commerce
AACSB: Use of IT
60) Research indicates that for online merchants, customer service is not as important on the Web
as it is in traditional brick-and-mortar stores.
Topic: Ten Myths of E-Commerce
AACSB: Use of IT
61) On the Web, “more” does not necessarily equate to “better.”
Topic: Ten Myths of E-Commerce
AACSB: Use of IT
14
62) Web-based entrepreneurs often discover that the greatest challenge their businesses face is
attracting customers on the Web and not necessarily creating a workable order fulfillment
strategy.
Topic: Ten Myths of E-Commerce
AACSB: Reflective Thinking
63) The back office is less important than the Web site.
Topic: Ten Myths of E-Commerce
AACSB: Use of IT
64) To be successful, both off-line and online companies require solid planning and a well–
formulated strategy that emphasizes customer service.
Topic: Strategies for E-Success
AACSB: Use of IT
65) The only ways a niche can be defined are by customer profile and by geography.
Topic: Focus on a Niche in the Market
AACSB: Use of IT
66) Developing a community via the company’s Web site is to increase customer loyalty by
giving customers the chance to interact with other like-minded visitors or with experts to discuss
and learn more about topics they are passionate about.
Topic: Develop a Community
AACSB: Analytic Skills
67) One of the most important words on the Internet is “free.”
Topic: Attract Visitors by Giving Away Freebies
AACSB: Use of IT
15
68) One of the simplest ways to establish credibility with customers is to use brand names they
know and trust.
Topic: Make Sure Your Web Site Says “Credibility”
AACSB: Use of IT
69) It is not necessary to provide a street address, an e-mail address, and a toll free telephone
number on the company’s Web site to prove the legitimacy of the business.
Topic: Make Sure Your Web Site Says “Credibility”
AACSB: Use of IT
70) It really is not necessary to put the company’s Web address on everything a company
publishes since the company’s name is listed on all search engines.
Topic: Promote Your Web Site Online and Offline
AACSB: Use of IT
71) Domain names are given on a first-come, first-serve basis.
Topic: Designing a Killer Web Site
AACSB: Use of IT
72) One way to have a killer Web site is to surprise customers by high charges at checkout.
Topic: Designing a Killer Web Site
AACSB: Use of IT
73) It is important to have fancy typefaces and large fonts on a web page.
Topic: Follow a Simple Design
AACSB: Use of IT
74) A specific design tip is to include a menu bar at the bottom of each page.
Topic: Follow a Simple Design
AACSB: Use of IT
16
75) Another important measure of Web success is the conversion (or browse-to-buy) ratio, which
measures the proportion of visitors to a site who actually make a purchase.
Topic: Tracking Web Results
AACSB: Use of IT
76) A more meaningful way to track activity on a Web site is through pop-ups, which have the
goal of helping entrepreneurs understand visitors’ online behavior.
Topic: Tracking Web Results
AACSB: Use of IT
77) Conversion rate is not the same as the click-through rate.
Topic: Tracking Web Results
AACSB: Use of IT
78) The most common problem with online credit card transaction is chargebacks, online
transactions that customers dispute.
Topic: Ensuring Web Privacy and Security
AACSB: Use of IT
79) Intrusion detection software constantly monitors the activity on a company’s network server
and sounds an alert if it detects someone breaking into the company’s computer system or if it
detects unusual network activity.
Topic: Ensuring Web Privacy and Security
AACSB: Use of IT
80) Secure fire layer (SFL) technology is being used to encrypt customers’ transaction
information as it travels across the Internet.
Topic: Ensuring Web Privacy and Security
AACSB: Use of IT
17