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67) Which of the following statements about B2B commerce is not true?
A) Eighty percent of online B2B e-commerce is still based on EDI.
B) B2B e-commerce represents approximately three-quarters of the overall B2B
marketplace.
C) B2B e-commerce only includes commercial transactions between firms.
D) B2B e-commerce revenues in 2012 were over $4 trillion.
68) EDI is
A) the use of Internet technologies for electronic data transactions.
B) the exchange between two organizations of standard transactions through a network.
C) electronic data invoicing.
D) electronic delivery infrastructure.
69) The process of sourcing goods and materials, negotiating with suppliers, paying for goods,
and making delivery arrangements is called
A) e-procurement.
B) SCM.
C) procurement.
D) sourcing.
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70) An extranet that links a large firm to its suppliers and other key business partners is called a(n)
A) e-hub.
B) marketspace.
C) exchange.
D) private industrial network.
71) E-hubs are more ________ than private industrial networks.
A) transaction-oriented
B) collaborative
C) independent
D) supply-chain oriented
72) A mapping of a person’s significant online, personal relationships is called a social
A) Web.
B) graph.
C) community.
D) map.
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73) A third-party Net marketplace that connects many buyers and suppliers for spot purchasing
is called a(n)
A) exchange.
B) vertical market.
C) private exchange.
D) e-hub.
74) Goods that are involved in the actual production process are referred to as
A) raw materials.
B) direct goods.
C) purchasing goods.
D) indirect goods.
75) Which of the following statements about m-commerce is not true?
A) In 2012, m-commerce represented less than 10 percent of all e-commerce.
B) M-commerce is the fastest growing form of e-commerce.
C) M-commerce annual revenues are approximately $30 billion.
D) In 2012, the top-grossing category of m-commerce was e-book sales.
76) You are building an e-commerce Web site that will sell e-books and are looking for a hosted
solution. Which of the following functionalities is least important for your business goals?
A) site tracking system
B) inventory management
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C) digital catalog
D) customer database
77) You are planning the requirements for a site tracking and reporting system for your
company Web site. Which of the following information requirements would not be essential
for this function?
A) number of unique visitors
B) pages visited
C) products purchased
D) secure credit card clearing
78) Which of the following is the least costly way to build a Web site?
A) Outsource the Web site development to overseas vendors.
B) Use a hosted solution and pre-built templates.
C) Build your site yourself from scratch using existing software.
D) Use a site-building package.
79) You are advising an accounting firm that wants to establish its first Web site. Approximately
how much of the Web site budget should you assign to purchasing software?
A) 10 percent
B) 25 percent
C) 50 percent
D) none, as no software will need to be purchased
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80) In a few years, ___________________will be the most common Internet access device.
A) mobile phones
B) iPads
C) iPhones
D) Samsung phones
81) _____________________________ are the costs of participating in a market.
A) Transaction costs
B) Search costs
C) Menu costs
D) Marginal costs
82) _____________________________ are the effort required to find suitable products.
A) Transaction costs
B) Search costs
C) Menu costs
D) Marginal costs
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83) _____________________________ are the merchants’ costs of changing prices.
A) Transaction costs
B) Search costs
C) Menu costs
D) Marginal costs
84) Airlines and hotels operating their own reservation sites online ___________________ per
ticket because they have eliminated travel agents as intermediaries.
A) cost more
B) cost less
C) earn more
D) earn less
85) __________________________________ provide content providers with a cost-effective
method for processing high volumes of very small monetary transactions (anywhere from
$.25 to $5.00 per transaction).
A) Macropayment systems
B) Micropayment systems
C) Microcost systems
D) Macrocost systems
86) In the __________________________________, firms offer basic services or content for
free while charging a premium for advanced or special features.
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A) transaction fee revenue model
B) free/freemium revenue model
C) subscription revenue model
D) sales revenue model
87) __________________________________, is the feature of social commerce described as:
Web sites allow users to sign into their sites through their social network pages on
Facebook or another social site.
A) Social sign-on
B) Collaborative shopping
C) Network notification
D) Social search
88) __________________________________, is the feature of social commerce described as:
Creating an environment where consumers can share their shopping experiences with one
another by viewing products, chatting, or texting.
A) Social sign-on
B) Collaborative shopping
C) Network notification
D) Social search
89) ______________________________, is the feature of social commerce described as: Creating
an environment where consumers can share their approval (or disapproval) of products,
services, or content, or share their geo-location, perhaps a restaurant or club, with friends.
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A) Social sign-on
B) Collaborative shopping
C) Network notification
D) Social search
90) ________ refers to the ability of consumers to discover what merchants actually pay for
products.
91) ________ are the merchants’ costs of changing prices.
92) Pinterest and Kaboodle are examples of ________ shopping sites.
93) The Internet enables ________ marketing, by leveraging the fact that there is always some
demand, however small, for a product.
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94) A(n) ________ market is a peer-to-peer market in which participants bet on the outcomes of
current events or business or social trends.
95) The ________ targeting of ads results in consumers responding ten times more frequently
than when delivered ads randomly.
96) ________ goods, such as office supplies, are those not involved firsthand in the production
process.
97) Online ________ marketing is like traditional word-of-mouth marketing except that it is
spread via online communities.
98) Before building an e-commerce site, business objectives and functionalities must be
translated into a set of precise information ________.
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99) In Web server ________, a firm purchases or leases a Web server but locates the server in a
vendor’s physical facility.
100) __________________________ refers to the use of the Internet and the Web to transact
business.
101) Information ___________________ refers to the complexity and content of a message.
102) ___________________________ refers to the ease with which consumers can find out the
variety of prices in a market;
103) An ________________________________exists when one party in a transaction has more
information important for the transaction than the other party.
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104) The use of handheld wireless devices for purchasing goods and services from any location
is termed _____________________________.
105) ___________________________refers to all forms of human expression that can be put
into a tangible medium such as text, CDs, or DVDs, or stored on any digital (or other)
media, including the Web.
106) ___________________________ is a publishing method for music and video files that
flows a continuous stream of content to a user’s device without being stored locally on the
device.
107) ___________________________ provide content providers with a cost-effective method
for processing high volumes of very small monetary transactions (anywhere from $.25 to
$5.00 per transaction).
108) In the ______________ revenue model, firms offer basic services or content for free while
charging a premium for advanced or special features.
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109) _____________________are independently owned third-party Net marketplaces that
connect thousands of suppliers and buyers for spot purchasing.
110) What is the most profound way in which e-commerce and the Internet has changed the
relationship between companies and their customers? Support your answer.
111) “Knowledge increases exponentially” is a phrase with which we are all familiar. How does
this concept apply to electronic business and the emergence of the digital firm? Support
your contentions.
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112) You are consulting for Lucky’s, a chain of gas stations. What types of e-commerce
opportunities, if any, are relevant to Lucky’s? Could Lucky’s make use of any Internet
business models for this opportunity?
113) Describe the use of personalization and customization in e-commerce. What business value
do these techniques have?
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114) List and describe the four main features of social e-commerce and their value to marketers.
115) List and describe at least five different Internet business models. Which of these models do
you think would be the most risky for a startup business today? Support your answer.
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116) What methods could a portal use to generate revenue? Which do you think might be most
successful, and why?
117) You have been hired as a marketing consultant by a law firm in Los Angeles that specializes
in juvenile justice. What ways can you use the Internet as a marketing tool and to advertise
the firm’s services?
118) Web site tracking software can log the path a customer took through the Web site, the time
spent on the site, and what geographic area in general the customer is from, all of which can
help in customer analysis. It can also log the customer’s operating system and which
browser the customer is using. How could these last two data items be of interest to a
company? Give examples.
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119) Describe the overall process and main decisions involved in planning a new e-commerce
site.