Deck 9: E-Commerce and the Entrepreneur

Question 1

A study by the Pew Internet and American Life Project reports that ________ percent of Americans research products and services online before buying them,an increase of ________ percent in the year 2000.

A)40; 15
B)40; 35
C)60 ;15
D)60; 35

Answer 1

D

Question 2

Before a Web site can become the foundation for a successful e-business:

A)the technology must be right.
B)it should be previewed by a Web designer.
C)it must be created with the target audience in mind.
D)the physical storefront must be established.

Answer 2

C

Question 3

To avoid unpleasant surprises in launching an e-commerce effort an entrepreneur should:

A)test the Web site with real customers to make sure it is easy to navigate.
B)avoid being talked into establishing a privacy policy.
C)cancel all current advertisements in other media.
D)not try to out-guess customers,and handle order fulfillment as orders come in.

Answer 3

A

Question 4

One of the most valuable attributes of the Web is the ability to:

A)track customers' online shopping habits allowing companies to further benefit from individualized marketing.
B)enable the site to create an appearance that the organization is able to meet customer needs that,in fact,are not possible based on its actual resources.
C)reduce advertising expenses and the amount of printed materials needed to facilitate promotional efforts.
D)encourage the use of credit cards as a means of paying for the online transaction.

Question 5

Successful e-tailers have discovered that these factors enhance their reputations for online customer service:

A)comprehensive FAQ pages and e-mail order confirmation with shipment notices.
B)visible telephone and e-mail contact information.
C)quick responses to questions with meaningful information.
D)All of these factors enhance a Web-based reputation.

Question 6

Experts estimate that nearly ________ of the world's online population has used the Internet to make a purchase.

A)46 percent
B)66 percent
C)86 percent
D)96 percent

Question 7

The most common reasons for leaving a site without purchasing include which of the following?

A)Shipping charges were too high.
B)Site did not look trustworthy.
C)Customers could not find the items they were looking for.
D)All of the above

Question 8

To be successful online,small companies must create Web sites with features that appeal to experienced Web shoppers,such as:

A)simple navigation and customer reviews.
B)solid security and quick access to product information.
C)videos and blogs.
D)The successful Web site will include all the above.

Question 9

Which of the following is not a common reason customers leave Web sites before checking out?

A)Total shipping charges were too high.
B)The privacy policy was not posted.
C)The shopping cart was too hard to find.
D)The site did not appear trustworthy.

Question 10

The Web is one of the most efficient ways of reaching both new and existing customers and when properly promoted,a Web site can:

A)reduce a company's cost of generating sales leads.
B)be an affordable way to reach customers beyond your geographic area.
C)provide an efficient method to provide information about a company and their products.
D)All of the above

Question 11

The intentional and targeted promotion of a Web site is:

A)critical to online success.
B)optional because once you are on the Web,you will get traffic and sales.
C)a luxury that most small businesses can not afford.
D)contrary to current Web trends.

Question 12

All of the following represent benefits of selling on the Web except:

A)opportunity to increase revenues.
B)power to educate and inform.
C)ability to remain open 24 hours a day.
D)ability to advertise in a cheaper media form.

Question 13

U.S.consumers have adopted the Internet much more quickly than any other major past innovation reaching ________ penetration in just seven years.

A)25 percent
B)50 percent
C)75 percent
D)85 percent

Question 14

Which of the following is an important issue that business owners should consider before launching an e-commerce effort?

A)How to develop long-term relationships with customers
B)How to exploit the interconnectivity and the opportunities it creates to transform relationships with its suppliers,customers,and external stakeholders
C)How to measure the success of its Web-based sales effort
D)All of the above

Question 15

An important part of any e-commerce effort is:

A)the use of current technology and its successful implementation.
B)the ability to understand the underlying business and to develop a workable business model.
C)to have a site that is fast and dependable.
D)to have high traffic to the site,regardless of the customers' interest in what the site actually offers.

Question 16

Entrepreneurs should make sure they do not fall victim to any of the e-commerce myths.Which of the following is not an e-commerce myth?

A)Setting up a business on the Web is easy and inexpensive.
B)If I launch a site,customers will flock to it.
C)Making money on the Web is easy.
D)Privacy and site security is an important issue on the Web.

Question 17

The entrepreneurs who are proving to be the most successful in e-commerce are those who know how:

A)their industries work,inside and out.
B)technology works,inside and out.
C)to turn a profit.
D)to effectively finance their e-commerce effort.

Question 18

________ monitor customers' behavior while they are on a site,giving Web-based businesses the information they need to make their Web sites and their online ________ efforts more effective.

A)Wikis; social marketing
B)Tracking tools; marketing
C)Tracking tools; security
D)Tracking tools; listings

Question 19

The two regions of the world with the highest penetration of the Internet are ________ and ________ .

A)North America: Europe
B)Asia; North America
C)North America; Oceania/Australia
D)North America; Latin America/Caribbean

Question 20

Building a Web strategy based on a clear definition of the company's target audience and an understanding of those customers' needs,wants,likes,and dislikes is:

A)relatively unimportant for a company's Web site due to its flexibility.
B)something that the entrepreneur no longer has to focus on to realize success.
C)also critically important for a company's presence on the Web.
D)an exercise that should eventually be addressed after the site is launched.

Question 21

According to Ken Burke,founder of MarketLive,the number one trend impacting e-commerce is:

A)the use of mashups.
B)social networking.
C)the use of pop-ups.
D)spamming.

Question 22

Strategies for successful e-commerce efforts should include all of the following except:

A)focusing on a niche market.
B)developing a community of customers.
C)attracting visitors by giving away "freebies."
D)adding value to recipients by sending spam e-mail.

Question 23

For entrepreneurial companies that lack brand and name recognition,and if building name recognition is one of the keys to success on the Web,one effective and affordable option may be to:

A)invest more in online promotion.
B)rely on viral marketing.
C)develop better brand recognition.
D)form strategic alliances with larger companies that can add credibility.

Question 24

Visitors begin to evaluate the credibility of a Web site as soon as they arrive.Which of the following does not help develop a site's credibility?

A)Posting a privacy policy
B)Citing reference sources
C)Presenting fair and objective information
D)Avoiding the promotion of brand names

Question 25

One common mechanism to attract international visitors is to include several:

A)alternative forms of payment options.
B)language buttons.
C)images reflecting multiple cultures.
D)colors and symbols reflective of international cultures.

Question 26

Although e-commerce can lower many costs of doing business,it still requires:

A)a professional Web designer's input.
B)a basic infrastructure in the distribution channel to process orders,maintain inventory,fill orders,and handle customer service.
C)a brick-and-mortar store presence.
D)None of the above

Question 27

Many Web sites seek to create,develop,and facilitate a:

A)technology that is fast and complex.
B)site that appeals to a broad range of diverse visitors.
C)community of customers with similar interests.
D)site that provides a variety of information that most anyone can find useful.

Question 28

The average person spends 183 hours per year online,________ he or she spends reading newspapers,magazines,or books,listening to recorded music,playing video games,or watching home videos.

A)less than
B)more than
C)about the same that
D)one-half the time that

Question 29

Some companies use ________ to encourage customers to participate in the design of their products,a process called ________ .

A)wikis: co-creation
B)wikis: collaboration
C)widgets: co-creation
D)mashups: co-creation

Question 30

Rather than trying to compete head to head with the dominant players on the Web with greater access to resources,entrepreneurs should consider focusing on:

A)serving a market niche.
B)serving a geographic niche.
C)only brick-and-mortar retail channels.
D)building a Web site in-house.

Question 31

The single most common reason for abandoning online shopping carts is:

A)shipping charges were too high.
B)delivery times were too long and the checkout process required too much information and time.
C)there was insufficient product information available.
D)the inability to compare the final price before buying.

Question 32

There is plenty of room for improvement in customer service on the Web.Research by Harris Interactive reports that more than ________ of online shippers said that they expect higher levels of customer service than they do in offline,traditional stores..

A)2 percent
B)12 percent
C)22 percent
D)52 percent

Question 33

A Web site or an application that combines content from multiple sources is a:

A)mashup.
B)Really Simple Syndication (RSS)
C)wiki.
D)widget.

Question 34

The ________ while downloading a Web page is one of the most important determinants of its sales effectiveness.

A)visual stimuli
B)"flash and show"
C)memory required
D)time required

Question 35

Customers will typically welcome well-constructed permission e-mail that directs them to company sites for information or special deals,unlike unsolicited and universally despised e-mail known as:

A)spam.
B)electronic flyers.
C)voice mail.
D)clipboards.

Question 36

According to Gerry Goldsholle,founder of two Web sites aimed at small companies,"________ is your biggest enemy" when launching a Web site.

A)Lack of perfection
B)Delay
C)Sloppiness
D)Absence of visuals

Question 37

Examples of Web 2.0 tools include:

A)mashups and podcasts.
B)social networking and RSS feeds.
C)wikis and blogs.
D)all the above

Question 38

The most significant ways online companies can bolster customer service include all of the following except:

A)create a well-staffed and well-trained customer response team.
B)offer a simple return policy.
C)provide an easy order tracking process.
D)make financing available.

Question 39

Businesses selling less well-known brands should:

A)reduce prices.
B)offer freebies.
C)use customer testimonials and endorsements.
D)All of the above

Question 40

Approximately ________ of Web users speak English.

A)38 percent
B)29 percent
C)38 percent
D)29 percent

Question 41

The ideal domain name should be:

A)short.
B)memorable.
C)easy to spell.
D)All of the above

Question 42

A company that pays a search engine for the right to submit either selected pages or the entire content of the Web site is referred to as:

A)click fraud.
B)web analytics.
C)paid inclusion.
D)Really Simple Syndication (RSS).

Question 43

Search engine listings that are the result of "spiders," powerful programs that crawl around the Web and analyze sites for keywords links,and other data are :

A)wikis,or Web 2.0 listings.
B)widgets,or organic listings.
C)mashups,or natural listings.
D)natural,or organic listings.

Question 44

To launch a successful Web site,business owners should consider:

A)a simple design.
B)that to stand out on the Web,the logic is that a site really has to sparkle.
C)all the "bells" and "whistles" technology can provide.
D)that flash makes a Web site better.

Question 45

A situation that occurs when a company pays for clicks that are generated by someone with no interest in or intent to purchase its products or services is called:

A)paid inclusion.
B)unpaid inclusion.
C)click fraud.
D)an unnatural listing.

Question 46

An effective search engine optimization (SEO)strategy can be maintained though:

A)natural,or organic,listings.
B)paid or sponsored listings.
C)paid inclusions.
D)All of the above

Question 47

Tools that measure a Web site's ability to attract customers,generate sales,and keep customers coming back are:

A)Web analytics.
B)recency.
C)cost per acquisition tools.
D)conversion tools.

Question 48

A successful Web site should include all of the following characteristics except:

A)a FAQ section.
B)continuous automated music that cannot be cut off.
C)updated and timely information.
D)readable font sizes.

Question 49

Responsible online merchants should make sure shipping and handling charges are:

A)reasonable.
B)displayed early in the buying process.
C)easy to find.
D)All of the above

Question 50

Popular social media tools for small businesses include:

A)social networking.
B)blogs.
C)Webcasts.
D)all the above

Question 51

A combination of hardware and software that allows employees to have access to the Internet but keeps unauthorized users from entering the company's network is called:

A)virus detection software.
B)intrusion detection software.
C)a firewall.
D)Web protection.

Question 52

To minimize the likelihood of invasion by hackers,e-commerce companies rely on several tools,including:

A)virus detection software.
B)intrusion detection software.
C)firewalls.
D)All of the above

Question 53

The security software that can trace a hacker's location is identified by which of the following?

A)Virus detection software
B)Intrusion detection software
C)A firewall
D)A viral site

Question 54

All of the following are effective ways to encourage customers to return to a site except:

A)offer "frequent buyer" programs.
B)give away items with the company's logo.
C)advertise with "pop-ups."
D)reward them with special services.

Question 55

Web sites have two conflicting goals regarding security.The first is to establish a presence on the Web so that customers from across the globe can have access to its site,and the second goal is to:

A)maintain a database system of customer information and preferences.
B)have a system in place to prosecute hackers.
C)maintain a high level of security so that the business,its site,and the information it collects are safe from hackers and intruders intent on doing harm.
D)develop an in-house payment processing system.

Question 56

The proportion of people who see a company's online ad and actually click on it to reach the company's Web site is known as the:

A)stickiness of the site.
B)click-stream.
C)conversion ratio.
D)click-through rate.

Question 57

When creating a Web site,the goal is to create a design:

A)in which customers "see themselves" when they visit.
B)that is flashy.
C)in which customers cannot relate.
D)that is inclusive of everyone in most every situation.

Question 58

A valuable method of preventing online fraud is to:

A)ask customers for their card verification value.
B)not accept credit cards.
C)run background checks on customers.
D)All of the above

Question 59

A measurement of the cost a company incurs to generate each purchase or customer registration is the:

A)cost per acquisition,or CPA.
B)click-through rate.
C)conversion ratio
D)browser-to-buy ratio.

Question 60

Perhaps the best domain name is one that:

A)customers can easily guess if they know the company's name.
B)is very complex to stop competitors from copying it.
C)sounds very much like a larger competitor's name.
D)does not use the company's initials.

Question 61

Businesses that publish privacy policies and then adhere to them build trust among their customers,an important facet of doing business on the Web.

Question 62

Measuring the success of its Web-based sales is not essential because customer tastes and preferences are always changing.

Question 63

The Web is one of the most efficient ways of reaching both new and existing customers.

Question 64

Virtual shop owners using banner ads have no reason to buy ads in traditional advertising medi
a.

Question 65

Trust is the foundation on which the long-term customer relationships that are so crucial to the Web success are built.

Question 66

The most common problem is the online transactions that customers dispute,referred to as:

A)acts of fraud.
B)chargebacks.
C)torts.
D)recency.

Question 67

The most important part of any e-commerce effort is technology.

Question 68

E-commerce is replacing traditional retailing.

Question 69

Companies quickly learn that setting up a Web site is only the first investment required.

Question 70

More than 75 percent of small business owners who have Web sites engage in e-commerce.

Question 71

Experienced online shippers tend to be unforgiving,quickly clicking to another site if their shopping experience is unsatisfactory or they are unable to find the products and information they want.

Question 72

One of the surest ways to alienate online customers is to abuse the information collected from them by selling it to third parties or by spamming them with unwanted solicitations.

Question 73

For many entrepreneurs,the key barrier to not using the Web as a business tool is that they do not see any benefits to selling online.

Question 74

A study by the Pew Internet and American Life Project reports that 60 percent of Americans research products and services online before buying them,an increase of 35 percent from the year 2000.

Question 75

Making money on the Web is easy.

Question 76

Listing a site with a popular Web search engine will guarantee that surfing customers will find your site.

Question 77

The Internet has reached a 50 percent penetration level within the U.S.

Question 78

The Web typically lacks the ability to lower the cost of doing business.

Question 79

Research indicates that many customers don't trust the Web sites they visit.

Question 80

Research indicates that younger audiences do not take the time to seek product information before they make a purchase.