Deck 1: The Revolution Is Just Beginning

Question 1

Customization involves changing a delivered product or service based upon a consumer's preferences or past purchasing behavior.

Answer 1

True

Question 2

The growth of B2C e-commerce is limited by the fact that consumers need to possess a more sophisticated skill set than consumers who shop offline.

Answer 2

True

Question 3

Ubiquity increases cognitive energy outlays.

Answer 3

False

Question 4

In 2011, a new Internet investment bubble focused primarily on social networks emerged.

Question 5

Social e-commerce is the largest type of e-commerce.

Question 6

Which of the following is not a major business trend in e-commerce in 2012-2013?

A) Retail e-commerce continues double-digit growth.
B) Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants.
C) Facebook grows to more than 1 billion users.
D) Social and mobile advertising begins to challenge search engine marketing.

Question 7

The growth of mobile e-commerce almost doubled from 2011 to 2012.

Question 8

Which of the following statements about Internet use in the United States in 2012 is not true?

A) Social e-commerce generated more revenue than local e-commerce.
B) Approximately 150 million users made at least one purchase online.
C) Almost 50% of adult Internet users visited an online social network daily.
D) Growth rates for B2C e-commerce were higher in the United States than in Europe.

Question 9

In 2012, roughly ________ million people in the United States accessed the Internet via mobile devices.

A) 30
B) 65
C) 80
D) 120

Question 10

Price transparency refers to the ability of merchants to segment the market into groups willing to pay different prices.

Question 11

Cost transparency refers to the ability of consumers to discover the actual costs merchants pay for products.

Question 12

E-commerce as we know it today would not exist without the Internet.

Question 13

The fact that e-commerce is conducted on the basis of universal standards decreases market entry costs for merchants.

Question 14

Web 2.0 describes a set of applications and technologies that encourage and rely on user- and consumer-generated interactivity and content.

Question 15

Approximately 80% of adults in the United States use a social network on a daily basis.

Question 16

The future of e-commerce will include an increase in regulatory activity both in the United States and worldwide.

Question 17

A company's online inventory control process is an example of e-business, as opposed to e-commerce.

Question 18

All of the following are major technology trends in e-commerce in 2012-2013 except:

A) Cloud computing enables the creation of "big data."
B) Apps create a new platform for online marketing and commerce.
C) The mobile computing platform begins to rival the PC platform.
D) Real-time advertising becomes a reality with gains in computing power and speeds.

Question 19

E-commerce can be defined as:

A) the use of the Internet and the Web to transact business.
B) the use of any Internet technologies in a firm's daily activities.
C) the digital enablement of transactions and processes within an organization.
D) any digitally enabled transactions among individuals and organizations.

Question 20

As economists had envisioned, prices of products sold on the Web are consistently lower than elsewhere, and the online marketplace is characterized by decreasing price dispersion.

Question 21

Interactivity in the context of e-commerce can be described as:

A) the ability to physically touch and manipulate a product.
B) the complexity and content of a message.
C) the ability of consumers to create and distribute content.
D) the enabling of two-way communication between consumer and merchant.

Question 22

Which of the following is the best definition of transaction cost?

A) the cost of changing prices
B) the cost of participating in a market
C) the cost of finding suitable products
D) the cost merchants pay to bring their goods to market

Question 23

Which of the following is not one of the current major social trends in e-commerce in 2012-2013?

A) Spam declines as a significant problem.
B) Controversy over content regulation and controls continues.
C) E-books gain wide acceptance.
D) Internet security continues to decline.

Question 24

Which of the following allows you to rate, categorize, and share the content you find online?

A) WordPress
B) StumbleUpon
C) Wikipedia
D) Instagram

Question 25

Which of the following is not an example of a social network?

A) Wikipedia
B) Twitter
C) Pinterest
D) Facebook

Question 26

In the B2C arena, ________ was the first truly large-scale digitally enabled transaction system.

A) Telex
B) the Baxter Healthcare system
C) the French Minitel
D) EDI

Question 27

Network externalities are related to which of the following features of e-commerce technology?

A) richness
B) interactivity
C) universal standards
D) information density

Question 28

All of the following are major business trends in e-commerce in 2012-2013 except for:

A) the growth of a new app-based online economy.
B) the expansion of the localization of e-commerce.
C) the emergence of a new social e-commerce platform.
D) the eclipse of search engine marketing by the mobile advertising platform.

Question 29

E-commerce technologies have changed the traditional tradeoff between the richness and reach of a marketing message. Prior to the development of the Web:

A) marketing messages had little richness.
B) the smaller the audience reached, the less rich the message.
C) the larger the audience reached, the less rich the message.
D) richness equaled reach.

Question 30

The size of the global C2C market in 2012 was around:

A) $800 million.
B) $8 billion.
C) $80 billion.
D) $800 billion.

Question 31

Which of the following is not a unique feature of e-commerce technology?

A) interactivity
B) social technology
C) global broadcasting
D) richness

Question 32

Which of the following qualities is least likely to decrease a consumer's search costs?

A) ubiquity
B) global reach
C) information density
D) richness

Question 33

Which of the following describes the basic Web policy of large firms during the period of invention?

A) integrate social networking and mobile platform with Web site marketing
B) use Web to connect with suppliers
C) include additional channels to market products
D) maintain a basic, static Web site

Question 34

E-commerce can be said to have begun in:

A) 1983.
B) 1985.
C) 1995.
D) 2001.

Question 35

The integration of video, audio, and text marketing messages into a single marketing message and consuming experience is an example of:

A) richness.
B) ubiquity.
C) information density.
D) personalization.

Question 36

Which of the following statements about the Web is not true?

A) It is the technology upon which the Internet is based.
B) It was developed in the early 1990s.
C) It provides access to pages written in HTML.
D) It provides access to Web pages that incorporate graphics, sound, and multimedia.

Question 37

In 2012, the world's online population was roughly:

A) 230 million.
B) 2.3 billion.
C) 23 billion.
D) 230 billion.

Question 38

All of the following can be considered a precursor to e-commerce except:

A) DNS.
B) Baxter Healthcare's remote order entry system.
C) the French Minitel.
D) Electronic Data Interchange.

Question 39

In 2012, there were an estimated ________ Internet hosts.

A) 8 million
B) 88 million
C) 888 million
D) 8.88 billion

Question 40

Which type of e-commerce is distinguished by the type of technology used in the transaction rather than by the nature of the market relationship?

A) Consumer-to-consumer (C2C)
B) Social e-commerce
C) Mobile e-commerce
D) Business-to-business (B2B)

Question 41

Which of the following is a characteristic of the reinvention phase of e-commerce?

A) massive proliferation of dot-com start-ups
B) widespread adoption of broadband networks
C) rapid growth of search engine advertising
D) widespread adoption of consumer mobile devices

Question 42

Which of the following is a characteristic of the consolidation phase of e-commerce?

A) predominance of pure online strategies
B) emphasis on revenue growth versus profits
C) first mover advantages
D) shift to a business-driven approach

Question 43

Retail chains account for around ________ percent of online retail firm revenues.

A) 15
B) 35
C) 75
D) 95

Question 44

The early years of e-commerce were driven by all of the following factors except:

A) an emphasis on exploiting traditional distribution channels.
B) a huge infusion of venture capital funds.
C) an emphasis on quickly achieving a very high market visibility.
D) visions of profiting from new technology.

Question 45

Which of the following types of merchants has the highest share of retail online sales?

A) virtual (Web only)
B) catalog/call center
C) retail chain
D) consumer brand manufacturer

Question 46

Around what percentage of Internet users in the United States access the Internet through mobile devices?

A) 30
B) 50
C) 70
D) 90

Question 47

Which of the following statements is not true?

A) Information asymmetries are continually being introduced by merchants and marketers.
B) Intermediaries have not disappeared.
C) Overall transaction costs have dropped dramatically.
D) Brands remain very important in e-commerce.

Question 48

The early years of e-commerce are considered:

A) the most promising time in history for the successful implementation of first mover advantages.
B) an economist's dream come true, where for a brief time consumers had access to all relevant market information and transaction costs plummeted.
C) a stunning technological success as the Internet and the Web increased from a few thousand to billions of e-commerce transactions per year.
D) a dramatic business success as 85% of dot-coms formed since 1995 became flourishing businesses.

Question 49

Which of the following is the top-selling online retail category?

A) apparel/accessories
B) computers/electronics
C) mass merchant/department stores
D) office supplies

Question 50

All of the following were visions of e-commerce expressed during the early years of e-commerce except:

A) a nearly perfect competitive market.
B) friction-free commerce.
C) disintermediation.
D) fast follower advantage.

Question 51

Unfair competitive advantages occur when:

A) one competitor has an advantage others cannot purchase.
B) market middlemen are displaced.
C) information is equally distributed and transaction costs are low.
D) firms are able to gather monopoly profits.

Question 52

Which of the following is not a limitation on the growth of B2C e-commerce?

A) the sophisticated skill set required to use the Internet and e-commerce systems
B) the persistent global inequality limiting access to telephone service, PCs, and cell phones
C) saturation and ceiling effects
D) the retrenchment and consolidation of e-commerce into the hands of large established firms

Question 53

Which of the following is not true regarding e-commerce today?

A) Economists' visions of a friction-free market have not been realized.
B) Consumers are less price-sensitive than expected.
C) There remains considerable persistent price dispersion.
D) The market middlemen disappeared.

Question 54

One of the predictions for the future of e-commerce is that:

A) overall revenues from e-commerce will grow at an annualized rate of about 10 percent a year through 2016.
B) the first movers from the early years of e-commerce will retain or increase their market share as they continue to exploit economies of scale and switching costs.
C) prices will lower enough to encourage more consumers to engage in online shopping.
D) the number of online shoppers will continue to grow at double-digit rates.

Question 55

By what year is the United States Internet household penetration rate likely to reach the current level of cable television penetration?

A) 2015
B) 2018
C) 2022
D) It has already reached the level of cable television penetration.

Question 56

In the "bow-tie" analogy of the structure of the Web, "tendrils" are:

A) pages that link to the center, but which are not linked to from the center.
B) pages that neither link to nor are linked from the center.
C) pages that do not link to the center, but are linked to from the center.
D) pages that link to one another without passing through the center.

Question 57

Approximately what percentage of dot-com companies formed since 1995 survived as independent companies in 2012?

A) 10
B) 20
C) 30
D) 40

Question 58

Which of the following best describes the early years of e-commerce?

A) They were a technological success but a mixed business success.
B) They were a technological success but a business failure.
C) They were a technological failure but a business success.
D) They were a mixed technological and business success.

Question 59

Business-to-consumer (B2C) e-commerce:

A) has grown at double-digit rates in 2011 and 2012.
B) is growing at a slower rate than the traditional retail market.
C) is a major part (over 30 percent) of the overall retail market.
D) growth is slowing as it confronts its own fundamental limitations.

Question 60

Which of the following is not a characteristic of a perfect competitive market?

A) Price, cost, and quality information are equally distributed.
B) A nearly infinite set of suppliers compete against one another.
C) Customers have access to all relevant information worldwide.
D) It is highly regulated.

Question 61

Tangible works of the mind such as music, books, and videos are called ________.

Question 62

The total number of users or customers an e-commerce business can obtain is a measure of its ________.

Question 63

The first evolutionary phase of e-commerce, from 1995 to 2000, characterized as technology-driven and ungoverned, was a period of ________.

Question 64

The targeting of marketing messages to specific individuals by adjusting the message to a person's name, interests, and past purchases is called ________.

Question 65

The costs incurred by merchants in having to change product prices (such as the costs of reentering prices into computer systems) are referred to as ________ costs.

Question 66

________ refers to the displacement of market middlemen.

Question 67

The most popular service that runs on the Internet infrastructure is the ________.

Question 68

A(n) ________ extends the marketplace beyond traditional boundaries.

Question 69

A firm that is first to market in a particular area and that moves quickly to gather market share is referred to as a(n) ________.

Question 70

Above all, e-commerce is a ________ phenomenon.

A) technology-driven PAGE \* MERGEFORMAT 1 Copyright © 2013 Pearson Education, Inc.
B) finance-driven
C) sociological
D) government-driven

Question 71

Which of the following statements is not true?

A) No one academic perspective dominates research about e-commerce.
B) Information systems researchers take a purely technical approach to e-commerce.
C) There are two primary approaches to e-commerce: behavioral and technical.
D) Management scientists are interested in e-commerce as an opportunity to study how business firms can exploit the Internet to achieve more efficient business operations.

Question 72

Which of the following is one of the three primary societal issues related to e-commerce?

A) liability
B) anonymity
C) equity
D) individual privacy

Question 73

Which of the following is the top online retailer ranked by online sales?

A) Apple
B) Amazon
C) Staples
D) Walmart

Question 74

Which business application is associated with the technological development of local area networks and client/server computing?

A) transaction automation (e.g., payroll)
B) desktop automation (e.g., word processing)
C) industrial system automation (e.g., supply chain management)
D) workgroup automation (e.g., document sharing)

Question 75

Internet/Web technology is available just about everywhere and anytime. This is known as ________.

Question 76

________ refers to the complexity and content of a message.

Question 77

A(n) ________ occurs when everyone in a group receives value because all participants use the same tool or product.

Question 78

________ refers to any disparity in relevant market information among parties in a transaction.

Question 79

An economist is most likely to be interested in a(n) ________, rather than technical, approach to studying e-commerce.

Question 80

In ________ commerce, information is equally distributed, transaction costs are low, prices can be dynamically adjusted to reflect actual demand, intermediaries decline, and unfair competitive advantages are eliminated.