Deck 9: Electronic Commerce

Question 1

Activities undertaken by a company to sell goods or services to individuals are called business-to-people (B2P) e-commerce.

Answer 1

False

Question 2

One benefit of paying for a subscription to the Economist magazine online is that subscribers are the first to see new published content.

Answer 2

True

Question 3

An auction is an example of a direct transaction.

Answer 3

False

Question 4

In the direct fee revenue model, businesses offer services for which they charge a fee.

Question 5

Few subscription-based Web sites also display ads to their subscribers.

Question 6

PayPal is an example of a digital wallet.

Question 7

A digital wallet that an organization creates and maintains on its servers for consumers is sometimes called a thin wallet.

Question 8

A company's purchasing and hiring processes are part of its revenue model.

Question 9

VeriSign is an insurance provider.

Question 10

An online auction in which an individual puts a used item for sale, and another individual buys it to use it themselves, is an example of C2C commerce.

Question 11

The collection of attributes that marketers use to group visitors is called biometric information.

Question 12

Fees charged to consumers include brokerage fees, sales commissions, and the costs of information search and acquisition.

Question 13

In the online retail model, a company replaces or supplements its printed catalogs and/or brick-and-mortar store with a Web site.

Question 14

Escrow services fees typically range from 1 to 10 percent of an item's cost, with a minimum fee of between $5 and $10.

Question 15

Web-only businesses are sometimes called brick-and-mortar companies.

Question 16

Electronic commerce refers to the process of developing, marketing, selling, delivering, servicing, and paying for products and services online.

Question 17

The term "floating marketing" refers to delivering ads to site visitors with specific demographic characteristics.

Question 18

The most successful advertising is directed at a very broad audience.

Question 19

Amazon is a Web-only dot-com company.

Question 20

A liquidation broker is an intermediary who matches sellers of obsolete inventory with purchasers who are looking for bargains.

Question 21

Television networks in the United States use the advertising revenue model. _________________________

Question 22

Public relations is a paid announcement that attracts attention to a product, service, business, person, or idea. _________________________

Question 23

Sponsorship ads are often a logo or simple statement that the content being viewed was paid for by a company. _________________________

Question 24

Some online auctions provide escrow services that hold a buyer's payment until he or she is satisfied that the item matches the seller's description. _________________________

Question 25

Box ____ in the accompanying figure best represents the type of e-commerce used at an online auction Web site like eBay.

A) A
B) B
C) C
D) D

Question 26

A user's URL feed is a record of the links clicked by a user while visiting a Web site. _________________________

Question 27

The removal of an intermediary from an industry is known as reintermediation. _________________________

Question 28

The most common form of e-commerce is brick-and-mortar retail. _________________________

Question 29

Interstitial ads appear as visitors browse from one Web page to another and often contain rich media, streaming video, or large graphics. These ads might appear when you click a link in an excerpt of a news story to view the entire story. _________________________

Question 30

Online customer service includes such things as chat, texting, email, and PQAs pages. _________________________

Question 31

A for-profit corporation selling a service to a not-for-profit organization is an example of ____ e-commerce.

A) B2C
B) B2B
C) B2G
D) C2C

Question 32

Some auction Web sites provide line-casts so that bidders can attend a live auction via computer. _________________________

Question 33

The Web model is the process or processes that a company uses to find new customers, make sales, and deliver the goods or services it sells. _________________________

Question 34

Activity by a company to sell goods or services to individuals is called ____ e-commerce.

A) B2C
B) C2C
C) B2B
D) C2B

Question 35

In the accompanying figure, Box A represents ____ electronic commerce.

A) B2C
B) B2B
C) B2G
D) C2C

Question 36

Banner ads usually appear at the top of a Web page and grab visitors' attention as they open a Web page. _________________________

Question 37

The ____ model is the process or processes that a company uses to find new customers, make sales, and deliver the goods or services it sells.

A) subscription
B) mixed advertising-subscription
C) advertising
D) revenue

Question 38

COPPA places conditions and restrictions on a Web site collecting information about children under the age of 13. _________________________

Question 39

A(n) subscription is the amount that a user pays in order to access a Web site's content. _________________________

Question 40

Capstone ads change based on the content you are viewing or searching. These are most commonly seen on the results pages of a search engine. _________________________

Question 41

All of the following businesses sell only on the Web EXCEPT ____.

A) Amazon.com
B) Hewlett-Packard
C) CafePress
D) Zappos.com

Question 42

Companies that use both a physical store and the Web to sell their products and services are sometimes referred to as ____.

A) 3G
B) bricks and clicks
C) bricks-and-mortar
D) pure retail

Question 43

The removal of an intermediary from an industry is known as ____.

A) disintermediation
B) corporate consolidation
C) reintermediation
D) monopolization

Question 44

An intermediary is a person or an organization that acts as a(n) ____ between two parties to effect a transaction or an agreement.

A) mediator
B) agent
C) either a. or b.
D) neither a. nor b.
B)

Question 45

Fees charged to consumers include ____.

A) brokerage fees
B) sales commissions
C) the costs of information search
D) all of the above

Question 46

Online travel sites such as Expedia and Travelocity also earn commissions from transportation and lodging providers in the form of fees for each ____ their Web site.

A) visitor to
B) reservation made through
C) client review made on
D) dollar spent on

Question 47

Most companies doing business on the Web today ____.

A) are pure dot-coms
B) use the Web to extend their existing businesses
C) use the Web only as advertising and to lure customers into their brick-and-mortar stores
D) none of the above

Question 48

Users must pay a(n) ____ fee to access some Web sites' content.

A) subscription
B) bricks-and-clicks
C) discretionary
D) escrow

Question 49

The text listed all of the following benefits of online retail EXCEPT: ____.

A) A video demonstrating the product is often available
B) It is simple to compare prices
C) Shipping is usually free
D) You can shop any time of the day or night

Question 50

When using stock brokerage firms, customers pay a commission to ____ for each trade executed.

A) the U.S. government
B) the brokerage firm
C) the Web site administrator
D) the stock issuer

Question 51

The text listed ____ as one of the greatest expenses for liquidation brokers when sales took place in a physical location.

A) leasing a place to hold the auction
B) sourcing items to sell
C) finding experienced employees
D) shipping the items to the purchasers

Question 52

Many subscription-based Web sites also display ____ to their subscribers.

A) escrow analysis
B) flashing text
C) ads
D) fees

Question 53

Online brokers such as ____ and TD Ameritrade are threatening traditional brokerage firms by offering trading over the Web with lower fees and commissions.

A) E*TRADE
B) Google Stocks
C) MSN*Flash
D) Dow Jones Flash

Question 54

Many gaming sites such as GameHouse and EA Games and portal sites such as Yahoo! Games and MSN Games represent another example of ____ sites.

A) subscription-based
B) direct fee-based
C) information-based
D) timeshare-based

Question 55

Some companies sell only on the Web. These Web-only businesses are sometimes called pure ____ companies.

A) meta
B) dot-com
C) mortar
D) dynamically arranged

Question 56

Businesses take a variety of approaches to generating revenue on the Web. These approaches include the use of online sales of ____, subscriptions, and direct fees.

A) goods
B) services
C) both a. and b.
D) neither a. nor b.

Question 57

The text listed all of these drawbacks to online retail EXCEPT: ____.

A) shopping online takes more time than going to a store
B) you cannot see or hold the item
C) it can take up to a week to receive the item
D) shipping adds cost to the price

Question 58

The most common form of e-commerce is ____, which refers to selling physical products on the Web. The items are located, reviewed, and purchased on the Web, and then shipped to the buyer.

A) online retail
B) offline retail
C) mixed retail
D) 3G retail

Question 59

The ____ model has been used successfully by some magazines that include no advertising as a matter of policy.

A) escrow
B) indemnity
C) direct-pay
D) subscription

Question 60

____ pioneered DVD rental by mail monthly subscription plans.

A) Blockbuster
B) Yahoo!
C) NetFlix
D) E-tainment

Question 61

____ ads open in a new window or within the Web page as users browse a Web site and can contain text, graphics, animations, sound, and/or video.

A) Banner
B) Pop-up
C) Contextual
D) Sponsorship

Question 62

____ marketing is an arrangement in which one company performs some business processes for another company in exchange for money or the sharing of expertise or access to customers.

A) Strategic
B) Merger
C) Corporate
D) Affiliate

Question 63

A(n) ____ is an arrangement in which one company performs some business processes for another company in exchange for money or the sharing of expertise or access to customers.

A) strategic alliance
B) merger
C) corporate dalliance
D) strategic confluence

Question 64

Some auction sites provide automated ____ agents that bidders can instruct to place bids as needed to win the auction, subject to a maximum limit set by the bidder.

A) software
B) human
C) hardware
D) all of the above

Question 65

Television networks in the United States use the ____ revenue model.

A) subscription
B) mixed advertising-subscription
C) advertising
D) tiered demographic

Question 66

____ by Sallie Mae is a rewards program that provides members with a way to save money for college when shopping online, eating out, and purchasing groceries at participating retailers.

A) Upromise
B) Future Fund
C) USave
D) ISave

Question 67

Delivering ads to Web site visitors with specific demographic characteristics is part of a strategy called ____.

A) focused marketing
B) tailor marketing
C) dynamic marketing
D) target marketing

Question 68

Some auction sites are providing ____ so that bidders can attend a live auction via computer.

A) blogs
B) virtual wallets
C) Webcasts
D) Chat rooms

Question 69

The Autobytel Web site allows a customer to purchase a new car without ____.

A) paying local excise tax
B) negotiating its price with a salesperson
C) needing a credit check
D) any of the above

Question 70

____, a comparison shopping service site, provides an example of affiliate marketing.

A) SaleGrabber
B) SaleGetter
C) PriceGrabber
D) PriceGetter

Question 71

The introduction of new Web-based travel agencies into the travel industry is an example of ____.

A) disintermediation
B) corporate consolidation
C) reintermediation
D) monopolization

Question 72

Text ads are simple text-based links that appear within the body of a Web page and are related to the content. These are also sometimes called ____ ads.

A) flatline
B) inline
C) central
D) banner

Question 73

Online auctions are an example of ____ e-commerce because one person auctions an item to another person.

A) C2C
B) C2B
C) B2B
D) B2G

Question 74

____ ads usually appear at the top of a Web page and combine text, images, animation, sound, and/or video to grab visitors' attention as they open a Web page; clicking the ad opens a link to the advertiser's site.

A) Banner
B) Sponsorship
C) Pop-up
D) Contextual

Question 75

eBay identifies sellers who have received high ratings from buyers for excellent customer service with an eBay ____ seal.

A) Trust Verified
B) Top-rated
C) Good Seller
D) Bargain Hunter

Question 76

Most online auction sites offer merchandise that is the property ____, much as an auctioneer would at a public auction.

A) of the auctioneer
B) of others
C) of the U.S. government
D) of unknown parties

Question 77

If a buyer doesn't receive the item purchased or believes that the received item is different from what was described in the listing, eBay ____ helps the buyers and sellers resolve the dispute.

A) Buyer Beware
B) Buyer Protection
C) Seller Beware
D) Seller Protection

Question 78

A(n) ____ will hold an online auction buyer's payment until he or she is satisfied that the item bought matches the seller's description.

A) proxy server
B) e-tailer
C) bidding panel
D) escrow service

Question 79

____ is a paid announcement that attracts attention to a product, service, business, person, or idea.

A) Focused marketing
B) Tailor marketing
C) Advertising
D) Target marketing

Question 80

A(n) ____ is an intermediary who matches sellers of obsolete inventory with purchasers who are looking for bargains.

A) pawnshop
B) trading partner
C) escrow service
D) liquidation broker