65) A valuable method of preventing online fraud is to:
A) ask customers for their card verification value.
B) not accept credit cards.
C) run background checks on customers.
D) All of the above
66) The most common problem is the online transactions that customers dispute, referred to as:
A) acts of fraud.
B) chargebacks.
C) torts.
D) recency.
67) E-commerce is replacing traditional retailing.
68) A study by the Pew Internet and American Life Project reports that 58 percent of Americans
research products and services online before buying them, an increase of 35 percent from the
year 2000.
69) Online sales and Internet activity will account for more than 50 percent of total retail sales.
70) Research indicates that younger audiences do not take the time to seek product information
before they make a purchase.
71) The Web is one of the most efficient ways of reaching both new and existing customers.
72) More than 75 percent of small business owners who have Web sites engage in e-commerce.
73) For many entrepreneurs, the key barrier to not using the Web as a business tool is that they
do not see any benefits to selling online.
74) The Web typically lacks the ability to lower the cost of doing business.
75) Companies quickly learn that setting up a Web site is only the first investment required. The
site leads to an ongoing investment of resources — time, money, energy and talent.
76) Measuring the success of its Internet-based sales effort is essential if a company is to remain
relevant to customers whose tastes, need, and preferences are always changing.
77) Measuring the success of its Web-based sales is not essential because customer tastes and
preferences are always changing.
78) Listing a site with a popular Web search engine will guarantee that surfing customers will
find your site.
79) Virtual shop owners using banner ads have no reason to buy ads in traditional advertising
media.
80) Experienced online shoppers tend to be unforgiving, quickly clicking to another site if their
shopping experience is unsatisfactory or they are unable to find the products and information
they want.
81) Making money on the Web is easy.
82) It is important that customers trust the Web sites they visit. and one study reports that 94
percent of consumers believe that online privacy is important.
83) Businesses that publish privacy policies, and then adhere to them, build trust among their
customers, an important facet of doing business on the Web.
84) One of the surest ways to alienate online customers is to abuse the information collected
from them by selling it to third parties or by spamming them with unwanted solicitations.
85) Trust is the foundation on which the long-term customer relationships that are so crucial to
the Web success are built.
86) A key aspect of an online strategy is to create it with the target audience in mind.
87) Building a successful e-business does not necessarily require a well-thought-out strategy, it
simply involves securing a good URL and getting online.
88) The concept of a traditional marketing strategy is not necessary in building a successful e-
business.
89) The most important part of any e-commerce effort is technology.
90) E-commerce requires focusing on technology first and then determining how the technology
fits the business idea.
91) Before your Web site can become the foundation of a successful e-business, you must create
it with your target audience in mind.
92) On the Web, service is not as important as it is in a traditional retail environment.
93) For some businesses, e-mail takes a very low priority.
94) The most common reason online customers abandon their shopping carts is that the shipping
charges are too high.
95) Establishing a policy of responding to all customer e-mails within 24 hours and sending
customers order and shipping confirmations and “thank you for your order” e-mails are not very
important to enhancing online customer service.
96) Flash always makes a Web site better.
97) Web-based companies should not be concerned with supply-chain management, warehouses,
or typical customer service policies.
98) Although e-tailers avoid the major problems that managing inventory presents, they lose
control over delivery times and service quality.
99) The greatest opportunities for e-commerce lie in the retail sector.
100) An important factor of e-commerce is speed.
101) It is better to avoid delays in going online by simply getting your site up and running, and
then fixing it, tweaking it, and updating it to meet changing customer demands, rather than
taking so much time trying to create the perfect online store at first attempt – try it, learn from it,
and then fix it.
102) The goals of e-commerce are not different from traditional offline businesses; to increase
sales, improve efficiency, and boost profits by serving customers better.
103) Launching an e-business is very different from launching a traditional off-line company.
104) The typical Internet user now spends more time on the Internet than watching television.
105) How a company integrates the Web into its overall business strategy is a major factor in
determining how successful it ultimately will become.
106) Rather than try to compete head to head with the dominant players on the Web who have
almost unlimited resources and recognition, entrepreneurs should consider focusing on serving a
market niche.
107) A marketing niche can be defined by customer profile, product, product usage, and many
other ways.
108) Before launching into the design of their Web sites, entrepreneurs must develop a clear
picture of their target customers.
109) A method of increasing customer loyalty and establishing better relationships is to develop
a community of customers with similar interests who can use chat rooms, message boards, guest
books, etc.
110) You should never offer your customers “freebies” unless they are truly valuable and
expensive; otherwise, you will earn a negative reputation among your customers.
111) Most customers welcome well-constructed permission e-mail that directs them to a
company’s site for information or special deals; however, they usually do not appreciate spam.
112) One of the simplest ways to establish credibility with customers is to use brand names they
know and trust.
113) A method small businesses might use to achieve more of the brand and name recognition
that larger, more established companies have is to form strategic alliances with bigger
companies.
114) Almost 75 percent of Internet users live within the United States.
115) Really Simple Syndication (RSS) is an application that allows subscribers to aggregate
content from their favorite Web sites into a single feed.
116) A mashup is a Web site or an application that combines content from multiple sources into
a single Web service.
117) Mashups, blogs, social networking, RSS feeds, wikis and widgets are popular Web 2.0 tools
used by businesses.
118) A wiki is a low-cost application that appears like a small television screen on a Web site, a
blog, or a computer desktop and performs a specific function.
119) An effective search engine optimization (SEO) strategy must recognize the three basic
types of search engine results, natural or organic listings, paid or sponsored listings, and paid
inclusion.
120) Paid or sponsored listings are long, heavy-text advertisements with links to the sponsoring
company’s Web site that appear on the results page of a search engine when the user types in a
keyword or phrase.
121) The more innovative your domain and name, the better.
122) Establishing hyperlinks with different product types will ensure you cover a variety of
different customers and give customer what they want.
123) The better Web sites avoid clutter, include a menu bar for easier navigation, include a FAQ
section, and are careful about typos, formatting, font sizes, and colors.
124) Responsible online merchants should keep shipping and handling charges reasonable, but
do not need to show them early on in the check-out process.
125) The conversion ratio, or browse-to-buy ratio is the proportion of visitors to a site who visit,
but do not actually make a purchase.
126) The bounce rate measures the percentage of shoppers who place at least one item in a
shopping cart but never complete the transaction.
127) The conversion rate measures the proportion of visitors to a site who actually make a
purchase.
128) Web analytics are a variety of tools that measure a Web sites’ ability to attract customers,
generate sales, and keep customers coming back.
129) Virus detection software, intrusion detection software, and a firewall are tools that
minimize the likelihood of invasion by hackers, and eliminate your responsibility for damages
they inflict.
130) Intrusion detection software scan computer drives for viruses designed to harm computers
and the information they contain.
131) An important way to prevent online credit card fraud is to ask customers not only for their
card number and expiration date, but also for the three-digit number above the signature panel on
the back of the credit card-the card verification value.
132) Click-through rate measures the proportion of people who see an online ad and actually
click on it to reach the company’s Web site.
133) How significant are the Internet and a Web site presence to small businesses of the twenty-
first century? How have they transformed the way we do business?
134) Identify the benefits of selling on the Web.
135) After years of being an entrepreneur, Wynn has come to you for help in establishing his
first Web site. He has expressed a desire to have a site with all the “bells and whistles” he can
get. What should your advice to him be? Which other factors should he consider before
launching an e-commerce site?
136) Identify the 10 myths of e-commerce and capture one aspect that negates that myth.
137) Identify the guidelines for building a successful Web strategy for a small e-company.
138) Identify and briefly explain five of the design characteristics that contribute to a successful
Web site.
139) What does it mean to create a “simple” Web site? Identify a Web site that you feel meets
this requirement and discuss why you selected it.
Mini-Case 9-1: Marketing a Nonprofit – Virtual Opportunities
New Wave Chance Youth Club is a local youth organization supported solely by the donations
of individuals and the local church community. Its co-founders, Valerie and Kristen, are
considering launching a Web site to promote upcoming events and raise money for a new gym.
Their good friend Paul has volunteered to develop a Web site, which they feel will help promote
their efforts.
140) How might a Web site benefit the youth club?
141) The building fund manager, Mr. Grover, has been overwhelmed by the generosity of the
community and numerous requests to donate supplies. Describe how the Web site may be able to
help him organize the donation requests and determine the type and quality of the building
supplies needed?
142) What other type of activities should New Wave Chance implement to support the success of
the new Web site?