Electronic Commerce 2012 7E Test Bank Chapter 1

Unlock access to all the studying documents.

View Full Document

Electronic Commerce 2012, 7e (Turban)

Chapter 1 Overview of Electronic Commerce

1.1 True/False

Question:Electronic commerce is the process of buying, selling, or exchanging products,

services, or information via computer.

Answer:

Question:Buying an e-book from Amazon is an example of partial electronic commerce.

Answer:

Question:A brick-and-mortar organization performs its primary business offline, selling

physical products by means of physical agents.

Answer:

Question:An extranet is a network that uses private corporate networks to link together

multiple intranets.

Answer:

Question:Selling and buying electronically can be either business-to-consumer or

business-to-business.

Answer:

Question:Purchasing a computer from dell.com is an example of B2B commerce.

Answer:

Question:Net-a-Porter buying merchandise from its designers is an example of B2B

commerce.

Answer:

Question:Network infrastructures include cell phones and other electronic devices that are

located in various locations by telecommunications networks, including wireless ones.

Answer:

Question:Today, over 90 percent of EC volume is B2C.

Answer:

Question:If a company purchases Godiva chocolates as gifts for its employees and has

Godiva mail them directly to the recipient, the company is engaged in B2B2C.

Answer:

Question:S-commerce refers to electronic commerce activities conducted on Facebook or

influenced by the site.

Answer:

Question:Despite the failures of individual companies and initiatives, the total volume of

EC has been growing each year.

Answer:

Question:The first generation of EC involves social networks, virtual worlds, and online

transactions.

Answer:

Question:E-commerce 2.0 is based primarily on blogs and corporate-sponsored

collaboration.

Answer:

Question:According to OReilly (2005), Web 2.0 Level 1 applications operate offline but

gain features from going online.

Answer:

Question:Social networking is the execution of any Web 2.0 activity, such as blogging

and/or having a presence in a social network.

Answer:

Question:By definition, enterprise social networks are public.

Answer:

Question:Booking tickets on Facebook without leaving the social network is an example of

enterprise social commerce.

Answer:

Question:Major characteristics of the digital economy include obsolescence, digitization,

and wars.

Answer:

Question:Economic, legal, societal, and technological factors have created a highly

competitive business environment in which customers are becoming less powerful.

Answer:

Question:The financial crisis of 2008-2010 resulted in many companies going out of

business or being acquired by other companies.

Answer:

Question:Political and government is an example of a societal business pressure.

Answer:

Question:Rapid technological obsolescence is an example of a technological business

pressure.

Answer:

Question:Responses to environmental pressures may include activities that exploit

opportunities created by changing conditions.

Answer:

Question:Efficient transactions, price comparisons for customers, and global reach are

three major capabilities that contribute to the growth of EC.

Answer:

Question:Business model refers to the series of value-adding activities that an organization

performs to achieve its goals, such as making a profit, at various stages of the production

process.

Answer:

Question:A business model is a method of doing business by which a company can

generate revenue to sustain itself.

Answer:

Question:Referencing the licensing fees revenue model, a company receives commissions

for referring customers to others websites.

Answer:

Question:A business model outlines how the organization, or the EC project, will generate

revenue through sales, transaction fees, advertising fees, affiliate fees, or other revenue

sources.

Answer:

Question:Value proposition refers to the benefits that a company can derive from using

EC.

Answer:

Question:According to Amit and Zott (2001), consolidation value involves bundling some

goods and services together to provide more value than from offering them separately.

Answer:

Question:According to Amit and Zott (2001), novelty creates value through innovative

ways for structuring transactions, connecting partners, and fostering new markets.

Answer:

Question:According to the affiliate marketing EC business model, people use e-mail and

social networks for spreading word-of-mouth advertising.

Answer:

Question:Corporate governance is the branch of philosophy that deals with what is

considered to be right and wrong.

Answer:

Question:External barriers to EC include security, lack of technical knowledge, and lack of

time and resources.

Answer:

Question:A key success factor for Net-A-Porter is the ability to

A) buy what customers want from designers.

B) provide services at a lower cost.

C) provide products to a niche market.

D) use IT for competitive advantage.

Answer:

Question:Net-A-Porters online store is an example of

A) business-to-employees EC.

B) business-to-consumer EC.

C) business-to-business EC.

D) consumer-to-consumer EC.

Answer:

Question: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-commerce.

B) e-business.

C) e-government.

D) e-tailing.

Answer:

Question:Depending on the degree of digitization, EC can take several forms including

A) the ordering system, processing, and shipping 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.

Answer:

Question:Organizations that conduct their business activities solely online are

A) click-and-mortar organizations.

B) pure-play organizations.

C) brick-and-mortar organizations.

D) unrestricted commerce organizations.

Answer:

Question:Organizations that conduct some e-commerce activities, usually as an additional

marketing channel, are

A) brick-and-mortar organizations.

B) value-added organizations.

C) pure-play organizations.

D) click-and-mortar organizations.

Answer:

Question:A corporate or government network that uses Internet tools, such as Web

browsers, and Internet protocols best defines

A) social network.

B) extranet.

C) intranet.

D) e-market.

Answer:

Question:An online marketplace where buyers and sellers meet to exchange goods,

services, money, or information best defines

A) electronic marketplace.

B) farmers market.

C) digital marketplace.

D) webinar.

Answer:

Question:Referencing the Electronic Commerce Framework, marketing and advertisement

is in the category of

A) electronic commerce applications.

B) infrastructure.

C) value chain.

D) support services.

Answer:

Question:According to the Electronic Commerce Framework, direct marketing, search

jobs, and online banking are

A) electronic commerce applications.

B) support services.

C) part of the EC infrastructure.

D) supply chain management activities.

Answer:

Question:When Apple conducts online transactions with its trading partners, this is an

example of

A) B2B.

B) B2C.

C) e-CRM.

D) EDI.

Answer:

Question:An e-commerce model in which all the participants are businesses or other

organizations describes

A) business-to-consumer.

B) business-to-business.

C) business-to-business-to-consumer.

D) consumer-to-business.

Answer:

Question:EC classifications include

A) business-to-business.

B) business-to-consumer.

C) consumer-to-business.

D) all of the above.

Answer:

Question:A business that provides some product or service to a client business that

maintains its own customers best describes the E-commerce model of

A) consumer-to-business.

B) intrabusiness EC.

C) business-to-business-to-consumer.

D) business-to-business.

Answer:

Question:Selling corporate products to ones employees is an example of

A) business-to-consumer.

B) intrabusiness EC.

C) business-to-business-to-consumer.

D) collaborative commerce.

Answer:

Question:A job opening in the Sales Department is posted on the companys intranet by the

Human Resources Department. This is an example of

A) E2C.

B) B2S.

C) B2B.

D) B2E.

Answer:

Question: Boeing designing a product together with one of its business partners is an

example of

A) collaborative commerce.

B) business-to-business commerce.

C) consumer-to-business commerce.

D) business-to-employees commerce.

Answer:

Question:G2B occurs when

A) a government entity buys or provides goods, services, or information from or to

individual citizens.

B) a government entity buys or provides goods, services, or information from or to

businesses.

C) a government entity buys or provides goods, services, or information from or to other

governments.

D) a government entity buys or provides goods, services, or information from or to

nonprofit organizations.

Answer:

Question:A technology used to electronically transfer routine documents, such as invoices

and purchase orders, and for financial transactions is

A) electronic funds transfer.

B) exchange-to-exchange.

C) electronic data interchange.

D) global document transfer.

Answer:

Question:Commercial activities conducted on Facebook best describes

A) social commerce.

B) c-commerce.

C) business-to-consumer commerce.

D) f-commerce.

Answer:

Question:Reasons EC companies fail include

A) lack of financial skills.

B) little experience with marketing.

C) not ensuring they have the inventory and distribution setup to meet the fluctuating and

increasing demand for their products.

D) all of the above.

Answer:

Question:The second generation of Internet-based services that lets people collaborate and

share information online in new ways, such as social networks, wikis, communication

tools, and folksonomies, best describes

A) Virtual Web.

B) Media Web.

C) Web 2.0.

D) Social Web.

Answer:

Question:According to OReilly (2005), which Web 2.0 levels applications exist 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?

A) Level 0

B) Level 3

C) Level 1

D) Level 2

Answer:

Question:According to OReilly (2005), which Web 2.0 levels applications work as well

offline as online?

A) Level 0

B) Level 3

C) Level 1

D) Level 2

Answer:

Question:A category of Internet applications that help 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 defines

A) social networking.

B) enterprise networks.

C) community networks.

D) intranets.

Answer:

Question:The e-commerce activities conducted in social networks and/or by using social

software best describes

A) virtual commerce.

B) social commerce.

C) consumer commerce.

D) enterprise commerce.

Answer:

Question:A major gateway through which employees, business partners, and the public can

enter a corporate website best defines

A) corporate portal.

B) intranet.

C) extranet.

D) social network.

Answer:

Question:Because the pace of change and level of uncertainty in the marketplace are

expected to accelerate, organizations are

A) unable to react quickly enough to threats and opportunities.

B) operating under increasing pressures to produce more products, faster, and with fewer

resources.

C) making fewer decisions and/or decisions less frequently.

D) considering less information when making decisions.

Answer:

Question:According to the Business Environment and Performance Model, drivers for

organizations include

A) the organizations mission.

B) problems from the business environment.

C) the organizations strategy.

D) all of the above.

Answer:

Question:Societal business pressure examples include

A) increased power of the consumer.

B) global economy.

C) compliance.

D) rapid technological obsolescence.

Answer:

Question:According to the Business Environment and Performance Impact Model,

________ provide support to organizations activities and to the resultant performance,

countering business pressures.

A) EC and IT

B) missions and strategies

C) core competencies and critical response activities

D) markets and government

Answer:

Question:Each of the following is an essential capability that helps drive EC except

A) providing efficient and effective business transactions.

B) facilitating company consolidations.

C) customizing products and personalizing services.

D) sharing information and knowledge.

Answer:

Question:A method of doing business by which a company can generate revenue to sustain

itself best defines

A) marketing strategy.

B) business model.

C) value chain.

D) business plan.

Answer:

Question: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

Answer:

Question:According to the ________ revenue model, companies receive commissions for

referring customers to others EC websites.

A) advertising fees

B) subscription fees

C) affiliate fees

D) transaction fees

Answer:

Question:which of the following is not one of the four sets of values that are created by

e-business?

A) financial efficiency

B) search and transaction cost efficiency

C) complementarities

D) novelty

Answer:

Question:Large organizational buyers 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

Answer:

Question:According to the ________ model, 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

B) online direct marketing

C) name-your-own-price

D) viral marketing

Answer:

Question:Major barriers to EC include each of the following except

A) competition.

B) lack of potential customers.

C) implementation difficulties.

D) lack of technology skills.

Answer:

Question:Benefits of EC to organizations include each of the following except

A) cost reduction.

B) closing the digital divide.

C) supply chain improvements.

D) efficient procurement.

Answer:

Question:Which of the following is not one of the benefits that EC provides to consumers?

A) global reach

B) instant delivery

C) enable telecommuting

D) ubiquity

Answer:

Question:Each of the following is a benefit of EC to society except

A) more public services.

B) closing the digital divide.

C) fewer permits and less tax.

D) improving homeland security.

Answer:

Question: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

Answer:

Question:Each of the following is a non-technological limitation of EC except

A) software development tools are still evolving.

B) lack of trust in EC and in unknown sellers hinders buying.

C) people do not yet sufficiently trust paperless, faceless transactions.

D) online fraud is increasing.

Answer:

Question:The success of the entrepreneurial company JetPens was due to keeping costs

low by each of the following methods except

A) using open source free software.

B) advertising via e-mail.

C) giving away free samples via social networks.

D) using smart key words to rank high with search engines.

Answer:

Question:List and briefly discuss three of the five common classifications of EC by the

nature of the transaction.

Answer:

Question:Briefly describe the three elements of the digital world.

Answer:

Question:Identify the three major business pressures categories. For each category, identify

two main types of business pressures.

Answer:

Question:What is a revenue model? Identify four major revenue models.

Answer:

Question:Identify and briefly describe five typical EC business models.

Answer: