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32) In ________ pricing, companies set the prices that consumers pay for products.
A) viral
B) top-up
C) menu-driven
D) reverse
E) rafter bid
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
33) The online sales of goods and services are known as ________.
A) e-information
B) e-integration
C) e-tailing
D) e-collaboration
E) e-filing
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
34) Which of the following occurs in a reverse pricing model?
A) Customers specify the product they are looking for and how much they are willing to pay for
it.
B) Companies set the prices that customers pay for products.
C) Companies conduct an online auction for all products available for sale.
D) Customers specify the product they are looking for and the company provides the product
with a price.
E) Companies negotiate special volume discounts with local businesses and offer them to their
customers.
Difficulty: Moderate
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
11
35) How do comparison shopping sites generate revenue?
A) by charging a commission on transactions
B) by selling their products in physical stores as well
C) by charging a virtual shelf space fee to manufacturers
D) by increasing the click count on their sites
E) by charging distribution fees to consumers
Difficulty: Moderate
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
36) The concept of the Long Tail refers to a focus on ________.
A) brand evangelism
B) broad markets
C) generic brands
D) brand dilution
E) niche markets
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
37) Which of the following is a disadvantage of e-tailing?
A) It is limited by physical store and shelf space restrictions.
B) It requires additional time for products to be delivered.
C) It complicates the process of comparison shopping.
D) It restricts companies from effectively competing on prices.
E) It reduces a company's inventory turnover time.
Difficulty: Moderate
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
12
38) ________ are two-dimensional barcodes with a high storage capacity that are typically used
to point the consumer to a particular Web page when he or she scans the barcode with a mobile
device's camera.
A) Viral codes
B) QR codes
C) MSI barcodes
D) MaxiCodes
E) CPC Binary Barcodes
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
39) With respect to e-tailing, ________ can initiate certain actions, such as making a phone call
to a sales representative, or sending a text message to a pre-specified number.
A) MaxiCodes
B) CPC Binary Barcodes
C) viral codes
D) MSI barcodes
E) QR codes
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
40) EZBiz, the brainchild of three college friends, is a startup venture that plans to produce and
market sports gear. The venture is still stuck in the planning phase as they have not been able to
decide the suitable business strategy to opt for. They are currently trying to decide between a
bricks-and-clicks strategy and a click-only strategy. Which of the following, if true, would most
undermine the decision to adopt a click-only strategy?
A) The company has limited access to funds and is looking to keep its costs low.
B) The public is wary of sharing confidential information after a recent spate of credit card
scandals.
C) A competitor is facing severe backlash after inadvertently releasing sensitive data into the
public domain.
D) Several companies who have switched from a brick-and-mortar strategy to a click-only
strategy are experiencing severe channel conflicts.
E) Some click-only companies have been unable to achieve economies of scale and are
subsequently unable to offer lower prices.
Difficulty: Moderate
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Critical Thinking
13
41) Web technologies allow for integration of information via Web sites that can be linked to
corporate databases to provide real-time access to personalized information.
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
42) When organizations undergo disintermediation, they have to take on those activities
previously performed by the middleman.
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
43) Companies pursuing a click-only business strategy approach business activities in a
traditional manner by operating physical locations.
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
44) Amazon.com is an example of a brick-and-mortar company.
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
45) Companies pursuing a click-and-mortar business strategy have no physical store locations,
allowing them to focus purely on electronic commerce.
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
46) The greatest impact of the Web-based EC revolution has occurred in companies adopting the
brick-and-mortar approach.
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
14
47) A click-and-mortar business strategy approach is also referred to as the bricks-and-clicks
business strategy.
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
48) Click-only companies can often compete more effectively on price since they do not need to
support the physical aspects of the click-and-mortar approach.
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
49) One of the challenges for brick-and-mortars involve increasing IS complexity.
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
50) The menu-driven pricing scheme transcends the reverse pricing system.
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
51) Web sites can offer a virtually unlimited number and variety of products because e-tailing is
not limited by physical store and shelf space restrictions.
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
52) E-tailers can focus on the Long Tails.
Difficulty: Easy
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
15
53) Briefly explain, with an example, the capability of the Web to integrate information.
Difficulty: Moderate
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
54) Explain the different electronic commerce (EC) business strategies.
Difficulty: Moderate
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
16
55) Briefly describe the benefits of e-tailing.
Difficulty: Moderate
Learning Obj.: 4.2: Describe business-to-consumer electronic commerce strategies.
Classification: Concept
56) ________ is defined as the percentage of visitors who leave the Web site after viewing that
page.
A) Bounce rate
B) Exit rates
C) Link rate
D) Web analytics
E) Domain analytics
Difficulty: Easy
Learning Obj.: 4.3: Understand the keys to successful electronic commerce Web sites, and
explain the different forms of Internet marketing.
Classification: Concept
17
57) In electronic commerce, ________ is defined as the percentage of single-page visits.
A) exit rate
B) showrooming
C) freecycling
D) bounce rate
E) value chain analysis
Difficulty: Easy
Learning Obj.: 4.3: Understand the keys to successful electronic commerce Web sites, and
explain the different forms of Internet marketing.
Classification: Concept
58) How is structural firmness of a Web site achieved?
A) by providing understandable messages if anything goes wrong
B) by redirecting Web pages to different sites if any link fails
C) by using technical jargons to define a problem
D) by developing a mirror site
E) by implementing a complicated source code
Difficulty: Easy
Learning Obj.: 4.3: Understand the keys to successful electronic commerce Web sites, and
explain the different forms of Internet marketing.
Classification: Concept
59) When a Web site ensures privacy and security of the consumer's data, ________ can be
achieved.
A) reintermediation
B) structural firmness
C) disintermediation
D) functional convenience
E) representational delight
Difficulty: Easy
Learning Obj.: 4.3: Understand the keys to successful electronic commerce Web sites, and
explain the different forms of Internet marketing.
Classification: Concept
18
60) With respect to the online consumer's hierarchy of needs, identify the most critical
characteristic of a Web site.
A) functional convenience
B) structural firmness
C) representational delight
D) descriptive link text
E) cross-platform compatibility
Difficulty: Easy
Learning Obj.: 4.3: Understand the keys to successful electronic commerce Web sites, and
explain the different forms of Internet marketing.
Classification: Concept
61) Identify a true statement about the function of Google's Ad Words.
A) It ensures high-quality leads when a search is conducted online.
B) It presents a view of short-term technology integration.
C) It presents a view of long-term technology integration.
D) It redirects Web pages to different sites if the link fails.
E) It provides immediate communication to and receives feedback from customers.
Difficulty: Easy
Learning Obj.: 4.3: Understand the keys to successful electronic commerce Web sites, and
explain the different forms of Internet marketing.
Classification: Concept
62) Some search engines offer to elevate a page's position in the organic results after paying a
fee. This is known as ________.
A) paid analysis
B) e-reintermediation
C) e-subscription
D) e-information
E) paid inclusion
Difficulty: Easy
Learning Obj.: 4.3: Understand the keys to successful electronic commerce Web sites, and
explain the different forms of Internet marketing.
Classification: Concept
19
63) Timothy was reading tournament results of the football World Cup matches on
Infogoalistic.com. As he was going through the results, an advertisement of new football studs
popped up. This is an example of ________ advertising.
A) covert
B) contextual
C) surrogate
D) niche
E) user-generated
Difficulty: Moderate
Learning Obj.: 4.3: Understand the keys to successful electronic commerce Web sites, and
explain the different forms of Internet marketing.
Classification: Application
64) Identify a characteristic of the Web that influences a Web site's security and performance.
A) structural firmness
B) functional convenience
C) cost compliance
D) representational delight
E) disintermediation capacity
Difficulty: Easy
Learning Obj.: 4.3: Understand the keys to successful electronic commerce Web sites, and
explain the different forms of Internet marketing.
Classification: Concept
65) Which of the following characteristics of the Web deals with making the interaction with a
Web site easier or more convenient?
A) representational delight
B) cost compliance
C) structural firmness
D) disintermediation capacity
E) functional convenience
Difficulty: Easy
Learning Obj.: 4.3: Understand the keys to successful electronic commerce Web sites, and
explain the different forms of Internet marketing.
Classification: Concept
20
