Deck 4: Enabling Business-to-Consumer Electronic Commerce

Question 1

Which of the following actions explains mass customization?

A) Firms tailor their products and services to meet a customer's particular needs on a large scale.
B) Firms provide immediate communication and feedback to and from customers.
C) Firms provide ways for clients and firms to conduct business online without human assistance.
D) Firms market their products and services over vast distances.
E) Firms link Web sites to corporate databases to provide real-time access to personalized information.

Answer 1

A

Question 2

Electronic commerce is used to conduct business with professional partners such as suppliers and intermediaries.This form of EC is commonly referred to as ________ electronic commerce.

A) business-to-consumer
B) peer-to-peer
C) business-to-business
D) business-to-intermediary
E) business-to-supplier

Answer 2

C

Question 3

The phenomenon of cutting out the "middleman" and reaching customers more directly and efficiently is known as ________.

A) gentrification
B) demutualization
C) defalcation
D) dissemination
E) disintermediation

Answer 3

E

Question 4

A state agency reporting birth and death information to the U.S.Social Security Administration using the Internet is an example of ________ electronic commerce.

A) business-to-consumer
B) government-to-citizen
C) government-to-business
D) government-to-government
E) business-to-business

Question 5

The auction site eBay.com is an example of ________ electronic commerce.

A) business-to-business
B) consumer-to-consumer
C) business-to-consumer
D) consumer-to-business
E) government-to-business

Question 6

In e-business terminology,________ companies are sometimes called "pure play companies."

A) bricks-and-clicks
B) click-and-mortar
C) brick-and-mortar
D) click-and-flip
E) click-only

Question 7

Ben buys an Olympus E-PL2 from Sony which starts malfunctioning.When he opts for an exchange,the customer representative says that an exchange or repair is not possible because the damage was of a physical nature and not covered under warranty.Which of the following consequences,if true,would be an example of consumer-to-consumer electronic commerce?

A) Ben sells the Olympus E-PL2 to Balvinder Singh in India through eBay.com.
B) Ben files an online suit against Sony.
C) Ben files a complaint on Sony's Web site asking for an escalation.
D) Ben buys a Canon G 12 from Sony's online store.
E) Ben sells the Olympus E-PL2 to the world's largest used camera dealer KEH.com.

Question 8

Without middlemen like Travelocity.com,Orbitz.com,and other travel Web sites,a consumer would have to check all airline Web sites in order to find the flight with the best connection or lowest price.This introduction of middlemen in business models is an example of ________.

A) reintermediation
B) remutualization
C) gentrification
D) disintermediation
E) defalcation

Question 9

Which of the following is an example of business-to-consumer electronic commerce?

A) Brenda files her income tax online.
B) Kobbler,a shoe manufacturer,conducts business over the Web with its retailers.
C) Juan buys Kevin's guitar on eBay.com.
D) Reuben buys a pair of shoes on Yebhi.com.
E) Sandra,an employee,uses the Web to make a change in her health benefits.

Question 10

________ refers to the design of business models that reintroduce middlemen in order to reduce the challenges brought on by dealing directly with customers.

A) Reintermediation
B) Remutualization
C) Gentrification
D) Defalcation
E) Reaffirmation

Question 11

Which of the following statements is true about electronic commerce?

A) Business-to-business is by far the largest form of electronic commerce in terms of revenues.
B) Electronic commerce is limited to transactions between businesses and consumers.
C) Electronic commerce between businesses and their employees is impossible.
D) All forms of electronic commerce involve business firms.
E) Consumer-to-consumer electronic commerce is a complete reversal of the traditional business-to-consumer electronic commerce.

Question 12

Which of the following is a result of global information dissemination?

A) Firms link Web sites to corporate databases to provide real-time access to personalized information.
B) Firms tailor their products and services to meet a customer's particular needs on a large scale.
C) Firms market their products and services over vast distances.
D) Firms provide immediate communication and feedback to and from customers.
E) Firms provide ways for clients and firms to conduct business online without human assistance.

Question 13

Which of the following is an example of consumer-to-consumer electronic commerce?

A) Niobi makes an online deposit of $5,000 into her friend Carla's account as she needs financial help.
B) Heath buys a gift for Vannessa from Amazon.com.
C) Blanco,a manufacturer,conducts business over the Web with its retailers.
D) Ted files his income tax online.
E) Marty buys Lobsang's mountaineering equipment from eBay.com.

Question 14

Which of the following is an example of disintermediation?

A) Land Rover markets most of its four-wheel drives in high altitude regions where vehicles require more power.
B) Dunkin' Donuts expanded its menu beyond breakfasts by adding hearty snacks that substitute for meals,consisting of items like Dunkin' Dawgs,hot dogs wrapped in dough.
C) Gatorade Thirst Quencher is a market leader in sports drinks.It is now planning to market its drinks to working women in urban areas.
D) OakTeak,a furniture manufacturing firm,started selling directly to its customers after it experienced a dip in sales due to channel conflicts between retailers.
E) A luxury car company creates a hybrid line of automobiles for consumers who are concerned about the environment.

Question 15

Which of the following statements is true about firms pursuing a brick-and-mortar business strategy?

A) These firms avoid indulgence in physical store locations.
B) These firms avoid indulgence in electronic commerce.
C) These firms are only involved in export business activities.
D) These firms indulge in rafter bidding activities.
E) These firms operate in both physical and virtual arenas.

Question 16

Which of the following statements is true about companies pursuing a click-only business strategy?

A) These companies approach business activities by operating physical locations.
B) These companies operate in both physical and virtual arenas.
C) These companies conduct business electronically in cyberspace.
D) These companies are only involved in export business activities.
E) These companies choose to operate their business activities solely in the traditional manner.

Question 17

Companies using a ________ business strategy are also called virtual companies.

A) click-and-flip
B) click-only
C) brick-and-mortar
D) bricks-and-clicks
E) click-and-mortar

Question 18

Companies following a ________ business strategy choose to operate solely in the traditional physical markets,approaching business activities in a traditional manner.

A) click-only
B) click-and-mortar
C) bricks-and-clicks
D) click-and-flip
E) brick-and-mortar

Question 19

Which of the following is an example of reintermediation?

A) The black Centurian card is issued by invitation only to customers who spend more than $250,000 a year on other American Express cards.
B) P&G acquires a list of parents-to-be and showers them with samples of Pampers and other baby products to capture a share of their future purchases.
C) Kambo,a fashion apparel company that deals directly with customers to sell its products,added retailers to its supply chain to cater to its target audience in remote geographic locations.
D) OakTeak,a furniture manufacturing firm,started selling directly to its customers after it experienced a dip in sales due to channel conflicts between retailers.
E) Dunkin' Donuts expanded its menu beyond breakfasts by adding hearty snacks that substitute for meals,consisting of items like Dunkin' Dawgs,hot dogs wrapped in dough.

Question 20

Online retailer Amazon.com is an example of a ________ company.

A) click-and-mortar
B) click-and-flip
C) bricks-and-clicks
D) click-only
E) brick-and-mortar

Question 21

The online sales of goods and services is known as ________.

A) e-information
B) e-integration
C) e-tailing
D) e-collaboration
E) e-filing

Question 22

Which of the following occurs in a reverse pricing model?

A) Customers specify the product they are looking for and how much they are willing to pay for it.
B) Companies set the prices that customers pay for products.
C) Companies conduct an online auction for all products available for sale.
D) Customers specify the product they are looking for and the company provides the product with a price.
E) Companies negotiate special volume discounts with local businesses and offer them to their customers.

Question 23

The concept of the Long Tail refers to a focus on ________.

A) brand evangelism
B) broad markets
C) generic brands
D) brand dilution
E) niche markets

Question 24

Bookseller Barnes & Noble is an example of a ________ company.

A) flip-only
B) click-only
C) click-and-mortar
D) click-and-flip
E) brick-and-mortar

Question 25

Paying businesses that bring or refer customers to another business is known as ________.

A) affiliate marketing
B) subscription marketing
C) viral marketing
D) stealth marketing
E) buzz marketing

Question 26

Walmart.com is an example of a ________ retailer.

A) brick-and-mortar
B) click-only
C) bricks-and-clicks
D) click-and-flip
E) brick-and-flip

Question 27

With respect to typical revenue models for electronic commerce businesses,PayPal.com,eBay.com,and Groupon.com are using a(n)________ revenue model.

A) transaction fees
B) licensing
C) affiliate marketing
D) traditional sales
E) subscription

Question 28

The ________ stage of business-to-consumer electronic commerce provides customers with the ability to obtain personalized information by querying corporate databases and other information sources.

A) e-reintermediation
B) e-transaction
C) e-integration
D) e-information
E) e-subscription

Question 29

Which of the following provides customers with the ability to obtain personalized information by querying corporate databases and other information sources?

A) e-filing
B) e-integration
C) e-information
D) e-transaction
E) e-tailing

Question 30

The ________ stage of business-to-consumer electronic commerce allows customers to place orders and make payments.

A) e-integration
B) e-reintermediation
C) e-subscription
D) e-information
E) e-transaction

Question 31

Which of the following statements is true about firms pursuing a click-and-mortar business strategy?

A) These firms are only involved in export business activities
B) These firms operate in both physical and virtual arenas.
C) These firms are involved in rafter bidding activities.
D) These firms conduct business only electronically in cyberspace.
E) These firms avoid indulgence in physical store locations.

Question 32

Which of the following is a disadvantage of e-tailing?

A) It is limited by physical store and shelf space restrictions.
B) It requires additional time for products to be delivered.
C) It complicates the process of comparison shopping.
D) It restricts companies to effectively compete on price.
E) It reduces a company's inventory turnover time.

Question 33

A click-and-mortar business strategy is also referred to as a ________ business strategy.

A) click-and-flip
B) brick-and-mortar
C) click-only
D) bricks-and-clicks
E) brick-and-flip

Question 34

With respect to typical revenue models for electronic commerce businesses,Nordstrom.com and iTunes.com are using a(n)________ revenue model.

A) brokerage
B) subscription
C) affiliate marketing
D) traditional sales
E) licensing

Question 35

In the ________ stage of business-to-consumer electronic commerce,dissemination of promotional and marketing material like providing electronic brochures takes place.

A) e-transaction
B) e-information
C) e-subscription
D) e-integration
E) e-reintermediation

Question 36

In ________ pricing,companies set the prices that consumers pay for products.

A) viral
B) top-up
C) menu-driven
D) reverse
E) rafter bid

Question 37

With respect to typical revenue models for electronic commerce businesses,Symantec and Norton are using a(n)________ revenue model.

A) subscription
B) licensing
C) affiliate marketing
D) brokerage
E) traditional sales

Question 38

With respect to typical revenue models for electronic commerce businesses,Netflix.com is using a(n)________ revenue model.

A) licensing
B) affiliate marketing
C) traditional sales
D) subscription
E) transaction fees

Question 39

EZBiz,the brainchild of three college friends,is a startup venture which plans to produce and market sports gear.They are currently trying to decide between a bricks-and-clicks strategy and a click-only strategy.Which of the following,if true,would most undermine the decision to adopt a click-only strategy?

A) The company has limited access to funds and is looking to keep its costs low.
B) The public is wary of sharing confidential information after a recent spate of credit card scandals.
C) A competitor is facing severe backlash after inadvertently releasing sensitive data into the public domain.
D) Several companies who have switched from brick-and-mortar strategy to a click-only are experiencing severe channel conflicts.
E) Some click-only companies have been unable to achieve economies of scale and subsequently are unable to offer lower prices.

Question 40

How do comparison shopping sites generate revenue?

A) by charging a commission on transactions
B) by selling their products in physical stores also
C) by charging a virtual shelf-space fee to manufacturers
D) by increasing the click-count on their site
E) by charging distribution fees to consumers

Question 41

In ________,a site hosting an advertisement creates fake clicks in order to get money from the advertiser.

A) competitive click fraud
B) irate click fraud
C) network click fraud
D) shill click fraud
E) rafter click fraud

Question 42

Click-through rate reflects ________.

A) the ratio of surfers who visit a Web site divided by the number of surfers who clicked on an ad
B) the ratio of surfers who click on an ad divided by the number of times it was displayed
C) the percentage of visitors who actually perform the marketer's desired action
D) the ratio of surfers who click on an ad divided by the number of people who make a purchase
E) the ratio of surfers who visit a Web site divided by the number of people who make a purchase

Question 43

________ allows individual Web site owners to post companies' ads on their pages.

A) Reverse marketing
B) Stealth marketing
C) Viral marketing
D) Buzz marketing
E) Affiliate marketing

Question 44

Within the context of e-tailing,________ are two-dimensional barcodes with a high storage capacity which are typically used to point the consumer to a particular Web page when he or she scans the barcode with a mobile device's camera.

A) viral codes
B) QR codes
C) MSI barcodes
D) maxicodes
E) CPC binary barcodes

Question 45

A way to ensure that a company's site is on the first page users see when looking for a specific term is using ________ advertising.

A) stealth
B) viral
C) buzz
D) search
E) affiliate

Question 46

Under the ________ pricing model,the firm running the advertisement pays only when a Web surfer actually clicks on the advertisement.

A) pay-per-refresh
B) pay-per-sale
C) pay-per-click
D) pay-per-conversion
E) click-per-visit

Question 47

Which of the following explains Web analytics?

A) conducting online marketing research to improve product quality
B) analyzing Web sites in order to find the best one in its category
C) tracking all online purchasers to try and increase their frequency of visit to a particular Web site
D) analyzing Web surfers' behavior in order to improve Web site performance
E) analyzing Web sites in order to find the best online business practices

Question 48

Which of the following characteristics of the Web deals with stimulating a consumer's senses?

A) functional convenience
B) cost compliance
C) representational delight
D) structural firmness
E) disintermediation capacity

Question 49

With respect to pay-per-click models,inflating the revenue to a host or increasing costs for the advertiser by repeatedly clicking on a link is called ________ fraud.

A) link
B) affiliate
C) click
D) conversion
E) disintermediation

Question 50

If a company's Web site is listed in the sponsored list of a search engine,the search engine receives revenue on a ________ basis.

A) pay-per-click
B) pay-per-sale
C) click-through
D) pay-per-conversion
E) click-per-visit

Question 51

With respect to GPS-enabled location-based services,the ability to give route directions from one point to another is an example of ________ service.

A) mapping
B) disintegration
C) navigation
D) reintegration
E) tracking

Question 52

Companies use ________ in an attempt to move up their Web sites in the organic search engine results.

A) search engine image protection
B) search engine optimization
C) search engine keyword insertion
D) search-oriented architecture
E) domain stacking

Question 53

MakeYourClick is an online ad agency,which is known for its ability to create ads that lure customers to purchase.Brenda,an ex-employee of the firm,was fired from the agency on baseless grounds.An angry Brenda inflates MakeYourClick's online advertising cost by repeatedly clicking on the advertiser's link.Brenda has committed ________.

A) competitive click fraud
B) irate click fraud
C) network click fraud
D) shill click fraud
E) rafter click fraud

Question 54

With respect to GPS-enabled location-based services,capturing specific locations to be viewed on the phone is an example of ________ service.

A) location
B) mapping
C) navigation
D) tracking
E) disintegration

Question 55

Which of the following characteristics of the Web deals with making the interaction with the Web site easier or more convenient?

A) representational delight
B) cost compliance
C) structural firmness
D) disintermediation capacity
E) functional convenience

Question 56

The performance of a pay-per-click advertising model can be assessed by ________,which reflects the percentage of visitors who actually perform the marketer's desired action such as making a purchase.

A) click fraud rate
B) contextual search rate
C) pop-up rate
D) click-through rate
E) conversion rate

Question 57

With respect to GPS-enabled location-based services,the ability to see another person's location is an example of ________ service.

A) reintegration
B) navigation
C) mapping
D) disintegration
E) tracking

Question 58

With respect to e-tailing,________ codes can initiate certain actions,such as make a phone call to a sales representative,or send a text message to a pre-specified number.

A) maxi
B) CPC binary
C) viral
D) MSI
E) QR

Question 59

Which of the following characteristics of the Web influences the Web site's security and performance?

A) structural firmness
B) functional convenience
C) cost compliance
D) representational delight
E) disintermediation capacity

Question 60

A recent trend in display advertising has been ________ advertising,where the ads placed on a page are in some way related to the content of that page.

A) contextual
B) buzz
C) viral
D) affiliate
E) stealth

Question 61

A ________ is a form of e-auction in which the highest bid wins.

A) reverse auction
B) mystery auction
C) top-up
D) forward auction
E) rafter bid

Question 62

With respect to consumer-to-business e-commerce,________ is used in order to have small,well-defined tasks performed by a scalable ad hoc workforce of everyday people.

A) nearshoring
B) insourcing
C) offshoring
D) crowdsourcing
E) homesourcing

Question 63

Amazon.com is an example of a brick-and-mortar company.

Question 64

The greatest impact of the Web-based EC revolution has occurred in companies adopting the brick-and-mortar approach.

Question 65

Which of the following types of e-auction fraud is associated with the seller's failure to ship an item after the payment has been received?

A) bid luring
B) bid shielding
C) non-shipment
D) shipping fraud
E) payment failure

Question 66

Within the context of different types of e-auction fraud,bid shielding is sometimes called ________.

A) bid skimming
B) bid luring
C) reverse bidding
D) shill bidding
E) rafter bidding

Question 67

Electronic commerce can involve the events leading up to the purchase of a product as well as customer service after the sale.

Question 68

Which of the following forms of e-auction typically takes place on a business-to-business level?

A) reverse auctions
B) bartering
C) exchanges
D) forward auctions
E) rafter bids

Question 69

With respect to credit cards and debit cards,________ is a three-digit code located on the back of the card which is used for authorization by the card-issuing bank,to combat fraud in online purchases.

A) competitive fraud detector
B) card verification value
C) online purchase processor
D) card detection value
E) purchase processing value

Question 70

Provoking bidders to leave a legitimate auction to buy the same item at a lower price outside the auction space,where return policies and buyer protection do not apply,is called ________.

A) rafter bidding
B) bid skimming
C) bid luring
D) bid shielding
E) shill bidding

Question 71

Companies pursuing a click-and-mortar business strategy have no physical store locations,allowing them to focus purely on electronic commerce.

Question 72

Which of the following is a mechanism for consumer-to-consumer transactions?

A) e-tailing
B) e-integration
C) e-filing
D) e-tendering
E) e-auctions

Question 73

When organizations undergo disintermediation,they have to take on those activities previously performed by the middleman.

Question 74

Doug is a frequent visitor of online auction sites.He uses two different accounts to place a low followed by a very high bid on the desired item.This leads other bidders to drop out of the auction.He then retracts the high bid and wins the item at the low bid.This form of e-auction fraud is known as ________.

A) shill bidding
B) bid luring
C) rafter bidding
D) mystery bidding
E) bid skimming

Question 75

Web technologies allow for integration of information via Web sites that can be linked to corporate databases to provide real-time access to personalized information.

Question 76

Electronic commerce is limited to transactions between businesses and consumers,which is known as business-to-consumer (B2
C) EC.

Question 77

A ________ is a form of e-auction where buyers post a request for quote.

A) reverse auction
B) rafter bid
C) mystery auction
D) forward auction
E) top-up

Question 78

E-filing is an example of a ________ tool.

A) government-to-citizen
B) consumer-to-consumer
C) government-to-government
D) consumer-to-business
E) business-to-business

Question 79

Companies pursuing a click-only business strategy approach business activities in a traditional manner by operating physical locations.

Question 80

M-commerce is defined as any electronic transaction or information interaction conducted using a wireless,mobile device and mobile networks that leads to the transfer of real or perceived value in exchange for information,services,or goods.