Information Systems Today, 7e (Valacich)
Chapter 4 Enabling Business-to-Consumer Electronic Commerce
1) The form of electronic commerce that is used by organizations to conduct business with
business partners without involving the end consumer is known as ________ electronic
commerce.
A) business-to-consumer
B) peer-to-peer
C) business-to-business
D) business-to-intermediary
E) business-to-supplier
Difficulty: Easy
Learning Obj.: 4.1: Describe different business models used to compete in cyberspace and
electronic government.
Classification: Concept
2) Which of the following statements is true about electronic commerce?
A) Business-to-business electronic commerce is by far the largest form of electronic commerce
in terms of revenues.
B) Electronic commerce is limited to transactions between businesses and consumers.
C) Electronic commerce between businesses and their employees is impossible.
D) All forms of electronic commerce involve business firms.
E) Consumer-to-consumer electronic commerce is a complete reversal of the traditional
business-to-consumer electronic commerce.
Difficulty: Moderate
Learning Obj.: 4.1: Describe different business models used to compete in cyberspace and
electronic government.
Classification: Concept
3) Which of the following is an example of business-to-consumer electronic commerce?
A) Brenda files her income tax online.
B) Canchi, a shoe manufacturer, conducts business over the Web with its retailers.
C) Juan buys Kevin’s guitar on Monsung.com.
D) Reuben buys a pair of shoes on Mysticshoes.com.
E) Neal places a bid for a mobile phone on the online auction site Feliciate.com.
Difficulty: Moderate
Learning Obj.: 4.1: Describe different business models used to compete in cyberspace and
electronic government.
Classification: Application
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4) The auction site eBay.com is an example of ________ electronic commerce.
A) business-to-business
B) consumer-to-consumer
C) business-to-consumer
D) consumer-to-business
E) government-to-business
Difficulty: Easy
Learning Obj.: 4.1: Describe different business models used to compete in cyberspace and
electronic government.
Classification: Concept
5) Which of the following is an example of consumer-to-consumer electronic commerce?
A) Niobi makes an online deposit of $5,000 into her friend’s account.
B) Heath buys a gift for Vanessa on Aniocride.com.
C) Blanco, a manufacturer, conducts business over the Web with its retailers.
D) Ashley buys a new pair of shoes on Fequette.com.
E) Marty buys Lobsang’s mountaineering equipment on Chieoke.com.
Difficulty: Moderate
Learning Obj.: 4.1: Describe different business models used to compete in cyberspace and
electronic government.
Classification: Application
6) Ben buys a camera from Xenthix which starts malfunctioning, as the camera fell down from
his hand and broke its lens. When he opts for an exchange, the customer representative says that
an exchange or repair is not possible because the damage is of a physical nature and not covered
under warranty. Which of the following consequences, if true, would be an example of
consumer-to-consumer electronic commerce?
A) Ben sells the camera to Balvinder Singh on Iora.com.
B) Ben files an online suit against Xenthix.
C) Ben files a complaint on Xenthix’s Web site asking for a refund.
D) Ben buys another camera from Xenthix’s online store.
E) Ben sells the camera to the world’s largest used camera dealer Koenister.com.
Difficulty: Moderate
Learning Obj.: 4.1: Describe different business models used to compete in cyberspace and
electronic government.
Classification: Application
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7) A state agency reporting birth and death information to the U.S. Social Security
Administration using the Internet is an example of ________ electronic commerce.
A) business-to-consumer
B) government-to-citizen
C) government-to-business
D) government-to-government
E) business-to-business
Difficulty: Easy
Learning Obj.: 4.1: Describe different business models used to compete in cyberspace and
electronic government.
Classification: Concept
8) Identify a true statement about the Internet of things.
A) It enables companies to offer various innovative products and services that go beyond the
initial purchase.
B) It defines a set of reachable and exploitable vulnerabilities present in a business model.
C) It contains rules and guidelines that describe how security is to be enforced during system
operation.
D) It identifies the tasks that are critical within a business model and builds a network that
depicts their interdependencies.
E) It is defined as the percentage of visitors who leave the Web site after viewing that page.
Difficulty: Easy
Learning Obj.: 4.1: Describe different business models used to compete in cyberspace and
electronic government.
Classification: Concept
9) E-filing is an example of a ________ tool.
A) government-to-citizen
B) consumer-to-consumer
C) government-to-government
D) consumer-to-business
E) business-to-business
Difficulty: Easy
Learning Obj.: 4.1: Describe different business models used to compete in cyberspace and
electronic government.
Classification: Concept
3
10) Electronic commerce is limited to transactions between businesses and consumers, which is
known as business-to-consumer (B2C) EC.
Difficulty: Easy
Learning Obj.: 4.1: Describe different business models used to compete in cyberspace and
electronic government.
Classification: Concept
11) Electronic commerce can involve the events leading up to the purchase of a product as well
as customer service after the sale.
Difficulty: Easy
Learning Obj.: 4.1: Describe different business models used to compete in cyberspace and
electronic government.
Classification: Concept
12) M-commerce is defined as any electronic transaction or information interaction conducted
using a wireless, mobile device and mobile networks that leads to the transfer of real or
perceived value in exchange for information, services, or goods.
Difficulty: Easy
Learning Obj.: 4.1: Describe different business models used to compete in cyberspace and
electronic government.
Classification: Concept
13) Government-to-business (G2B) EC does not involve businesses’ relationships with all levels
of government.
Difficulty: Easy
Learning Obj.: 4.1: Describe different business models used to compete in cyberspace and
electronic government.
Classification: Concept
4
14) Explain the e-government relationships.
Difficulty: Moderate
Learning Obj.: 4.1: Describe different business models used to compete in cyberspace and
electronic government.
Classification: Concept
15) Hatso, a famous hat retailer chain, opens a new store in Kentucky and chooses to operate
solely in the traditional physical markets. It approaches business activities in a traditional manner
by operating physical locations such as retail stores and not offering their products or services
online. Which of the following business strategies does Hatso follow?
A) brick-and-mortar
B) click-only
C) organizational
D) low-cost leadership
E) differentiation
Difficulty: Moderate
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Application
16) Which of the following statements explain mass customization?
A) Firms tailor their products and services to meet a customer’s particular needs on a large scale.
B) Firms immediately provide communication to and receive feedback from customers.
C) Firms provide ways for clients to conduct business online without human assistance.
D) Firms market their products and services over vast distances.
E) Firms link Web sites to corporate databases to provide real-time access to personalized
information.
Difficulty: Moderate
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
5
17) The phenomenon of cutting out the “middleman” and reaching customers more directly and
efficiently is known as ________.
A) gentrification
B) demutualization
C) defalcation
D) dissemination
E) disintermediation
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
18) Which of the following is an example of disintermediation?
A) Anister, a car-manufacturing company, markets most of its four-wheel drives in high altitude
regions where vehicles require more power.
B) Donuts Haven, a fast food chain, expands its menu beyond breakfasts by adding hearty snacks
that substitute meals in order to provide competition to the other food chains in the area.
C) Aubrey Thirst Quencher is a market leader in sports drinks. It expands its market by providing
its drinks to working women in urban areas.
D) Rusicwood, a furniture manufacturing firm, starts selling directly to its customers after
experiencing a dip in sales due to channel conflicts between retailers.
E) A luxury car company creates a hybrid line of automobiles for consumers who are concerned
about the environment.
Difficulty: Moderate
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Application
19) Identify a true statement about reintermediation with reference to e-tailing.
A) It refers to the design of business models that reintroduce middlemen.
B) It refers to the design of business models that eliminate middlemen.
C) It provides ways for clients and firms to conduct business online without human assistance.
D) It provides ways for clients and firms to conduct business activities in a traditional manner by
operating physical locations.
E) It enables access to Web sites linked to corporate databases in order to provide real-time
access to personalized information.
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
6
20) Which of the following is an example of reintermediation?
A) The diamond card of the Futilery Centriono, is issued by invitation only to customers who
spend more than $250,000 a year on their shopping card.
B) Nanny Duke, a baby products manufacturing company, acquires a list of parents-to-be and
showers them with samples of diapers and other baby products to capture a share of their future
purchases.
C) Kambo, a fashion apparel company that deals directly with customers to sell its products,
adds retailers to its supply chain to cater to its target audience in remote geographic locations.
D) Rusicwood, a furniture manufacturing firm, starts selling directly to its customers after
experiencing a dip in sales due to channel conflicts between retailers.
E) Donuts Haven, a fast food chain, expands its menu beyond breakfasts by adding hearty snacks
that substitute meals in order to provide competition to the other food chains in the area.
Difficulty: Moderate
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Application
21) Companies following a ________ business strategy choose to operate solely in the traditional
physical markets approaching business activities in a traditional manner.
A) click-only
B) high-cost leadership
C) low-cost leadership
D) click-and-flip
E) brick-and-mortar
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
22) Which of the following statements is true about firms pursuing a brick-and-mortar business
strategy?
A) These firms avoid indulgence in physical store locations.
B) These firms avoid indulgence in electronic commerce.
C) These firms are only involved in export business activities.
D) These firms indulge in rafter bidding activities.
E) These firms operate in both physical and virtual arenas.
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
7
23) Which of the following statements is true about companies pursuing a click-only business
strategy?
A) These companies approach business activities by operating in physical locations.
B) These companies operate in both physical and virtual arenas.
C) These companies conduct business electronically in cyberspace.
D) These companies are only involved in export business activities.
E) These companies choose to operate their business activities solely in the traditional manner.
Difficulty: Moderate
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
24) Without middlemen like Travelocity.com, Orbitz.com, and other travel Web sites, a consumer
would have to check all airline Web sites in order to find the flight with the best connection or
lowest price. The introduction of middlemen in business models is an example of ________.
A) reintermediation
B) remutualization
C) gentrification
D) disintermediation
E) defalcation
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
25) Companies using a ________ business strategy are also called virtual companies.
A) click-and-flip
B) click-only
C) brick-and-mortar
D) bricks-and-clicks
E) click-and-mortar
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
8
26) Online retailer Amazon.com is an example of a ________ company.
A) click-and-mortar
B) click-and-flip
C) bricks-and-clicks
D) click-only
E) brick-and-mortar
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
27) In e-business terminology, ________ companies are sometimes called “pure play
companies.”
A) bricks-and-clicks
B) click-and-mortar
C) brick-and-mortar
D) click-and-flip
E) click-only
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
28) Bookseller Barnes & Noble is an example of a ________ company.
A) flip-only
B) click-only
C) click-and-mortar
D) click-and-flip
E) brick-and-mortar
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
9
29) A click-and-mortar business strategy is also referred to as a ________ business strategy.
A) click-and-flip
B) brick-and-mortar
C) click-only
D) bricks-and-clicks
E) brick-and-flip
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
30) Which of the following statements is true about firms pursuing a click-and-mortar business
strategy?
A) These firms are only involved in export business activities.
B) These firms operate in both physical and virtual arenas.
C) These firms are involved in rafter bidding activities.
D) These firms conduct business only electronically in cyberspace.
E) These firms avoid indulgence in physical store locations.
Difficulty: Moderate
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
31) Walmart.com is an example of a ________ retailer.
A) brick-and-mortar
B) click-only
C) bricks-and-clicks
D) click-and-flip
E) brick-and-flip
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
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