Introduction to Electronic Commerce, 3e (Turban)
Chapter 1 Overview of Electronic Commerce
1.1 True/False
1) Every company needs a business model describing how the company operates, how it
generates sales, and how it provides value to the customers and eventually profit to its owners.
2) Electronic exchange is the process of buying, selling, or exchanging products, services, or
information via computer.
3) The terms e-commerce and e-business can be used interchangeably.
4) The form EC takes depends on the degree of digitization of the product sold, the process, and
the delivery method.
5) In order for a situation to be considered as electronic commerce, the product, process, and
delivery method should all be digital.
6) Purchasing a computer from Dell’s Web site is partial EC because the merchandise is
physically delivered.
7) Amazon.com can be classified as a click-and-mortar organization.
8) Pure-play organizations are old-economy organizations that perform their primary business
offline, selling physical products by means of physical agents.
9) A person purchasing a pair of shoes from Zappos is an example of B2B.
10) Online publishing is an electronic commerce application.
11) According to Mockler, over 85 percent of EC volume is B2B.
12) Transactions conducted on Priceline.com are examples of collaborative commerce.
13) The introduction of the World Wide Web was a major milestone in electronic commerce
development.
14) The development of new networks, protocols, and EC software is one reason for the rapid
expansion of electronic commerce applications.
15) Electronic commerce is an interdisciplinary field.
16) Collaborative computing is an approach aimed at making the human-computer interface
more natural.
17) The structure of a social network is often very simple.
18) Enterprise social networks are privately owned by corporations and operate inside them.
19) Facebook is an example of an enterprise social network.
20) Digital economy refers to an economy based on digital communication networks, computers,
software, and other related information technologies that provide a global platform over which
people and organizations interact, communicate, collaborate, and search for information.
21) Many companies use a corporate portal, which is a gateway for customers, employees, and
partners to reach corporate information and communicate with the company.
22) Economic, legal, societal, and technological factors have created a highly competitive
business environment in which customers are becoming less powerful.
23) Strong competition and increased power of consumers are two of the major market and
economic pressures in today’s business environment.
24) Business models are a subset of a business plan or business case and refer to methods of
doing business by which a company can generate revenue.
25) A value proposition refers to the tangible and intangible benefits that a company can derive
from using EC.
1) Which of the following EC mechanisms are used by Zappos to foster its relationship with
customers?
A) user-contributed videos
B) Tweets
C) discussion forums
D) All of the above are used by Zappos.
2) The type of EC transactions used by Zappos are
A) business-to-business.
B) business-to-business-to-consumer.
C) business-to-consumer.
D) consumer-to-business.
3) The process of buying, selling, or exchanging products, services, or information via the
computer best defines
A) electronic collaboration.
B) electronic commerce.
C) Tweeting.
D) cyber sales.
4) A broader definition of EC that includes not just the buying and selling of goods and services,
but also servicing customers, collaborating with business partners, and conducting electronic
transactions within an organization best defines
A) e-business.
B) e-tailing.
C) e-collaboration.
D) cyber business.
5) EC can take several forms depending on the degree of digitization of the following three
dimensions:
A) the product or service sold, the process, and the delivery method.
B) the business process, the collaboration, and the transaction.
C) the payment method, the delivery method, and the production method.
D) the marketing channel, the agent, and the collaboration method.
6) Old-economy organizations that perform their primary business offline, selling physical
products by means of physical agents best defines
A) click-and-mortar organizations.
B) pure-play organizations.
C) classic commerce organizations.
D) brick-and-mortar organizations.
7) A network that uses the Internet to link multiple intranets best defines
A) corporate net.
B) collaboration network.
C) extranet.
D) relational network.
8) Dell collaborating electronically with its partners and providing customer service online is an
example of
A) B2C.
B) e-CRM.
C) C2B.
D) B2B2C.
9) Electronic commerce applications include
A) direct marketing.
B) online banking.
C) m-commerce.
D) all of the above.
10) Support areas for EC include each of the following except
A) infrastructure.
B) people.
C) public policy.
D) business partnerships.
11) The e-commerce model in which all of the participants are businesses or other organizations
is called
A) business-to–consumer.
B) business-to-business.
C) business-to-business-to-consumer.
D) consumer-to-consumer.
12) The e-commerce model in which a business provides some product or service to a client
business that maintains its own customers is called
A) business-to-consumer.
B) business-to-business.
C) business-to-business-to-consumer.
D) consumer-to-consumer.
13) Ebay auctions are mostly
A) business-to-employees.
B) consumer-to-business.
C) business-to-consumer.
D) consumer-to-consumer.
14) The second generation of Internet-based services that lets people collaborate and share
information online in new ways, such as social networking sites, wikis, communication tools,
and folksonomies best defines
A) Wii.
B) Web 2.0.
C) EC 2.0.
D) SNS2.
15) Web 2.0 applications existing only on the Internet, deriving their effectiveness from
interhuman connections and from the network effects that Web 2.0 makes possible and growing
in effectiveness as people make more use of them best describes
A) Level 0 applications.
B) Level 1 applications.
C) Level 2 applications.
D) Level 3 applications.
16) A category of Internet applications that helps connect friends, business partners, or
individuals with specific interests by providing free services such as photo presentation, e-mail,
blogging, and so on using a variety of tools best describes
A) social networking.
B) public networking.
C) intranet.
D) extranet.
17) Yub.com is an example of a
A) social network service.
B) business-to-business network.
C) business-oriented network.
D) intranet.
18) Using Web 2.0 tools, companies can
A) encourage consumers to rate and comment on products.
B) allow consumers to create their own topic areas and build communities.
C) provide incentives such as sweepstakes and contests for customers to get involved in new
product or service design and marketing campaigns.
D) do all of the above.
19) A user-defined world in which people can interact, play, and do business best describes
A) virtual world.
B) virtual business.
C) virtual model.
D) cyberspace.
20) Web 2.0 tools include
A) wikis.
B) RSS feeds.
C) blogs.
D) all of the above.
21) According to the Business Environment and Performance Model, ________ provide support
to organizations’ activities and to resultant performance, countering business pressures.
A) EC and IT
B) missions and strategies
C) core competencies and critical response activities
D) markets and government
22) A ________ is a company’s method of doing business to generate revenue to sustain itself.
A) marketing strategy
B) business model
C) value chain
D) business plan
23) According to the ________ revenue model, customers pay a fixed amount, usually monthly,
to receive some type of service.
A) subscription fees
B) transaction fees
C) advertising fees
D) affiliate fees
24) Which of the following is not a major revenue model?
A) attributive fee
B) sales
C) transaction fees
D) subscription fees
25) According to the ________ revenue model, companies receive commissions for referring
customers to others’ EC Web sites.
A) advertising fees
B) subscription fees
C) affiliate fees
D) transaction fees
26) Large private organizational buyers and government agencies make large-volume or large-
value purchases through ________, also known as reverse auctions.
A) electronic tendering systems
B) online direct marketing
C) name-your-own-price models
D) viral marketing
27) According to the ________, an organization can increase brand awareness or even generate
sales by Web-based word-of-mouth marketing or promoting a product or service to other people.
A) electronic tendering systems model
B) online direct marketing model
C) name-your-own-price models
D) viral marketing model
28) Benefits of e-commerce to customers include
A) ubiquity.
B) instant delivery.
C) no sales tax.
D) all of the above.
29) Which of the following is a technological limitation of EC?
A) security and privacy concerns that deter customers from buying
B) difficulty obtaining venture capital
C) order fulfillment requirements of large-scale B2C
D) unresolved taxation, public policy, and legal issues
30) Major barriers to EC include all of the following except
A) cost.
B) lack of potential customers.
C) implementation difficulties.
D) lack of programmers.
1) ________ is the process of buying, selling, transferring, or exchanging products, services,
and/or information via computer.
2) ________ is a broader definition of EC that includes not just the buying and selling of goods
and services, but also servicing customers, collaborating with business partners, and conducting
electronic transactions within an organization.
3) ________ refers to old-economy organizations or corporations that perform their primary
business offline, selling physical products by means of physical agents.
4) ________ are organizations that conduct their business activities solely online.
5) ________ are organizations that conduct some e-commerce activities, usually as an additional
marketing channel.
6) An ________ is an internal corporate or government network that uses Internet tools such as
Web browsers and Internet protocols.
7) An ________ is a network that uses the Internet to link multiple intranets.
8) The e-commerce model in which a business provides some product or service to a client
business that maintains its own customers is called ________.
9) ________ describes the hardware, software, and networks used in EC.
10) The e-commerce model in which individuals use the Internet to sell products or services to
organizations or individuals who seek sellers to bid on products or services they need is called
________.
11) The e-commerce category that includes all internal organizational activities that involve the
exchange of goods, services, or information among various units and individuals in an
organization is ________.
12) The e-commerce model in which an organization delivers services, information, or products
to its individual employees is ________.
13) ________ is the e-commerce model in which consumers sell directly to other consumers.
14) ________ is the e-commerce model in which individuals or groups communicate or
collaborate online.
15) ________ is the second generation of Internet-based services that lets people collaborate and
share information online in new ways, such as social networking sites, wikis, communication
tools and folksonomies.
16) A ________ is a service that builds online communities by providing an online space for
people to build free homepages and that provides basic communication and support tools for
conducting different activities in the social network.
17) ________ are social networks whose primary objective is to facilitate business.
18) A ________ is a user-defined world in which people can interact, play, and do business.
19) A ________ is a major gateway through which employees, business partners, and the public
can enter a corporate Web site.
20) A ________ can be a reaction to a specific business pressure already in existence, or it can
be an initiative that will defend an organization against future business pressures.
21) A method of doing business by which a company can generate revenue to sustain itself
defines ________.
22) ________ refers to the benefits a company can derive from using EC.
23) A ________ is a model in which a buyer requests would-be sellers to submit bids; the lowest
bidder wins.
24) According to the Harmony Hollow Software 2006 study mentioned in the textbook, the
major barriers to EC are ________, ________, ________, ________, ________, and ________.
25) ________ is the branch of philosophy that deals with what is considered to be right and
wrong.
1) List and briefly explain three of the five support services in the electronic commerce
framework.
2) Identify the 10 major types of EC transactions.
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3) Define digital economy. Identify six major characteristics of the digital economy.
4) Identify two of the three categories of major business pressures and two main types of
business pressures in each category.
5) List the five typical EC business models.