Entrepreneurship and Effective Small Business Management, 11e, Global Edition
(Scarborough)
Chapter 13 E-Commerce and Entrepreneurship
1) ________ is a trend where people test products in retail stores but buy them online.
A) Showboating
B) Commoditizing
C) Onlining
D) Showrooming
2) The items purchased most often online are:
A) apparel.
B) computer hardware.
C) books.
D) All of the above
3) Globally, people spend ________ billion hours online per month.
A) 35
B) 25
C) 15
D) 5
4) One of the Internet’s greatest strengths is its ________ nature.
A) efficiency
B) collectivistic
C) interactive
D) atavistic
5) Perhaps the most visible impact of the Internet is in the world of ________.
A) services
B) manufacturing
C) education
D) retailing
6) For many entrepreneurs, the barrier for launching e-commerce is:
A) where and how to start an e-commerce effort.
B) lack of funding.
C) lack of IT staff.
D) Both B and C
7) Before launching an e-commerce, the business owner should consider:
A) handling of customer service for the site.
B) the impact of the Web site on the company’s traditional channels of distribution.
C) Both A and B
D) Neither A nor B
8) One of the myths of e-commerce is that:
A) setting up a business on the Web is easy.
B) setting up a business on the Web is inexpensive.
C) setting up a business on the Web is impossible.
D) Both A and B
9) After launching the Web site, the companies must follow-up by:
A) redesigning the Web site and buying more hardware to support the Web site.
B) automating or expanding the warehouse to meet customer demand.
C) integrating the Web site into the inventory control system.
D) All of the above
10) The key to promoting a Web site is networking, building relationships with other companies,
customers, trade associations, ________, and other Web sites your company’s customers visit.
A) on-line directories
B) E-mail access
C) shopping carts
D) All of the above
11) Before your Web site can become the foundation for a successful e-business, you must create
it with your ________ in mind.
A) technology
B) employees
C) target audience
D) vendors
12) The most common reasons for leaving a site without purchasing include:
A) the shopping cart was easy to find.
B) checking out was easy and quick.
C) the site was trustworthy.
D) shipping charges were too high.
13) Perhaps the most significant actions on-line companies can take to bolster their customer
service efforts are:
A) providing a quick online checkout process.
B) creating a well-staffed and well-trained customer response team.
C) offering a simple return process.
D) All of the above
14) Sites that ________ may never have the chance to sell because customers will click to
another site.
A) move quickly
B) download slowly
C) don’t have e-mail
D) don’t have toll-free numbers
15) E-Commerce requires a basic infrastructure somewhere in the channel of distribution to
process orders, maintain inventory, ________, and handle customer service.
A) fill orders
B) process e-mail
C) technology
D) All of the above
16) ________ suits many e-tailers perfectly.
A) Drop-shipping
B) Virtual shipping
C) Customer shipping
D) Group shipping
17) The typical Internet user in the United States spends an average of ________ hours a month
online.
A) 33
B) 125
C) 52
D) 104
18) What are the guidelines for building a successful Web strategy for a small e-company?
A) Fill a niche
B) Have a lot of products on sale
C) Have advanced technology
D) Bring advertising revenue by selling banners
19) A niche can be defined in many ways, including:
A) by geography.
B) by customer profile.
C) by product.
D) All of the above
20) KHA.com started selling sporting goods designed for senior citizens who live in retirement
homes and apartments. KHA.com is selling its products using a:
A) niche strategy.
B) community strategy.
C) mass strategy.
D) senior citizens strategy.
21) E-mail lists and ________ are powerful tools for building a community of visitors at a site.
A) toll-free numbers
B) discussion boards
C) chat rooms
D) broadcast advertising
22) To increase customer confidence and credibility, join programs such as:
A) Don and Brad Street.
B) TRUSTe.
C) BBBOnLine.
D) Both B and C
23) Recommended techniques for having a killer Web site are:
A) avoiding clutter.
B) continuous sound play.
C) not to change the Web site.
D) All of the above
24) ________ is a tool that measures a Web site’s ability to attract customers, generate sales, and
keep customers coming back, help entrepreneurs know what works—and what doesn’t—on the
Web.
A) A counter
B) Web analytics
C) A Web designer
D) A server application
25) Which one of the following is not a basic Web analytic?
A) Time spent on site
B) Sales revenue generated
C) Number of items sold
D) Which products are selling best (and which are not)
26) The ________ is the cost a company incurs to generate each purchase.
A) CTA
B) CPA
C) CSA
D) CMA
27) The ________ is the proportion of people who see a company’s online ad and actually click
on it to reach the company’s Web site.
A) AVPV
B) CPA
C) CTR
D) None of the above
28) Another word for browse-to-buy is:
A) conversion.
B) controller.
C) tracker.
D) browse-to-purchase.
29) The browse-to-buy rate is also called the ________ rate.
A) click-through
B) browsing
C) conversion
D) banner
30) In Web analytics, CPA is the acronym for:
A) customers per acquisition.
B) cost per account.
C) customers per account.
D) cost per acquisition.
31) Conversion rates range from:
A) 8-10 percent.
B) 2-6 percent.
C) ten plus percent.
D) 1-4 percent
32) The average conversion rate is:
A) 10 percent.
B) 3.2 percent.
C) less than 1 percent.
D) 5.8 percent.
33) Each time an ad is displayed is called a(n):
A) clustering.
B) filtering.
C) impression.
D) loading.
34) A(n) ________ is a statement explaining the nature of the information a company collects
online, what it does with that information, and the recourse customers have if they believe the
company is misusing the information.
A) employment manual
B) online manual
C) privacy policy
D) online policy
35) What software scans computer drives for viruses and nasty programs?
A) Virus detection
B) Firewall
C) Server application
D) Detention software
36) What software is essential for any company doing business on the Web to constantly monitor
the activity on a company’s network server and sound an alert if it detects someone breaking into
the company’s computer system?
A) Firewall
B) Alarm detention program
C) Intrusion detection software
D) Artificial intelligence
37) Which technology encrypts the customer’s data as the information travels across the Internet?
A) Firewall
B) Secure Socket Layer
C) Virus protection
D) None of the above
38) What is CVV or CVV2?
A) Customer tracking technology
B) Customer verification value
C) Credit verification value
D) Card verification value
39) Reasons for leaving a Web site without purchasing are:
A) having a phone number when encountering problems.
B) insufficient product information.
C) having to check back to view items in the shopping cart.
D) for security purposes, multiple steps are necessary to get to the check out page.
40) Which of the following is correct?
A) Make it easy for customers to change the contents of their shopping carts.
B) Give customers the option of calling to resolve problems they encounter during checkout.
C) Make it easy for customers to pay for their online purchases.
D) All of the above
41) Which of the following is correct?
A) Although fancy graphics, bright colors, playful music, and spinning icons can attract
attention, they also can be quite distracting and very slow to download.
B) Sites that download slowly may never have the chance to sell because customers will click to
another site.
C) None of the above
D) Both A and B
42) The Web offers shoppers the ultimate in:
A) convenience.
B) quality.
C) differentiation.
D) service.
43) The other name for virtual order fulfillment is:
A) drop-shipping.
B) instant shipping.
C) convenience shipping.
D) group shipping.
44) Most common mistakes that entrepreneurs make once they finally decide to go online are:
A) they believe they have to have a “perfect” site before they can launch it.
B) few businesses get their sites “right” the first time.
C) in fact, the most successful e-commerce sites are constantly changing, removing what does
not work and adding new features to see what does.
D) All of the above
45) Developing a community refers to:
A) attracting customers and keeping them coming back.
B) giving customers the chance to interact with other like-minded visitors .
C) providing chat rooms.
D) All of the above
46) ________ listings are short text advertisements with links to the sponsoring company’s Web
site that appear on the results pages of a search engine when a user types in a keyword or phrase.
A) Drop
B) Virtual
C) Negotiated
D) Paid
47) Which of the following statements is true for improving a company’s search placement
results?
A) Visit competitors’ sites for key word ideas, but avoid using the exact phrases.
B) Consider using less obvious key words and brand names.
C) Ask customers which words and phrases they use when searching for the products and
services the company sells.
D) All of the above
48) Paid listings also are called:
A) pay for placement.
B) pay per click.
C) pay for performance ads.
D) All of the above