Deck 9: E-Commerce and the Entrepreneur

Question 1

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

Answer 1

True

Question 2

Companies quickly learn that setting up a Web site is only the first investment required. The site leads to an ongoing investment of resources - time, money, energy and talent.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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 5

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 6

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 7

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

Question 8

One of the most valuable attributes of the Web is the ability to ________.

A) provide companies with instantaneous customer feedback
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) eliminate 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 9

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

Question 10

An estimated ________ percent of small business owners in the U.S. have Web sites.

A) 25
B) 82
C) 75
D) 90

Question 11

E-commerce is replacing traditional retailing.

Question 12

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

A) 46
B) 66
C) 84
D) 96

Question 13

A survey by PriceWaterhouseCoopers reports that 83 percent of Americans research products online before buying them.

Question 14

A survey by PriceWaterhouseCoopers reports that ________ percent of Americans research products online before buying them.

A) 40
B) 42
C) 60
D) 83

Question 15

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 16

The Internet penetration rate is greatest in North America with 78.6% and the second region of the world in penetration is ________.

A) Oceania/Australia
B) Europe
C) Latin America/Caribbean
D) Middle East

Question 17

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

Question 18

Online sales and Internet activity will account for more than 60 percent of total retail sales.

Question 19

Measuring the success of its Internet-based sales effort is essential if a company is to remain relevant to customers whose tastes, needs, and preferences are always changing.

Question 20

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

Question 21

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

Question 22

The single most common reason for abandoning online shopping carts is ________.

A) shipping and handling 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 23

How significant are the Internet and a Web site presence to small businesses of the twenty-first century? How have they transformed the way we do business?

Question 24

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 25

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 26

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 27

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 28

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 29

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 30

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 31

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 cannot afford
D) contrary to current Web trends

Question 32

Identify the benefits of selling on the Web.

Question 33

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 34

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 35

The average conversion rate for e-commerce sites is just ________ percent.

A) 9.35
B) 6.67
C) 2.55
D) 1.1

Question 36

Mini-Case 9-1: Marketing a Nonprofit - Virtual Opportunities
New Wave Chance Youth Club is a local youth organization supported solely by the donations of individuals and the local church community. Its co-founders, Valerie and Kristen, are considering launching a Web site to promote upcoming events and raise money for a new gym. Their good friend Paul has volunteered to develop a Web site, which they feel will help promote their efforts.
How might a Web site benefit the youth club?

Question 37

________ 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 38

After years of being an entrepreneur, Wynn has come to you for help in establishing his first Web site. He has expressed a desire to have a site with all the "bells and whistles" he can get. What should your advice to him be? Which other factors should he consider before launching an e-commerce site?

Question 39

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 40

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 41

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 42

Making money on the Web is easy.

Question 43

E-commerce requires focusing on technology first and then determining how the technology fits the business idea.

Question 44

It is important that customers trust the Web sites they visit and one study reports that 89 percent of consumers worry about their privacy online.

Question 45

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

Question 46

Experienced online shoppers 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 47

Building a successful e-business does not necessarily require a well-thought-out strategy, it simply involves securing a good URL and getting online.

Question 48

On the Web, service is not as important as it is in a traditional retail environment.

Question 49

One survey reports that ________ percent of shoppers have gone into a store as a result of an online encounter with a business.

A) 63
B) 91
C) 85
D) 72

Question 50

Identify the 10 myths of e-commerce and capture one aspect that negates that myth.

Question 51

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 52

The most common reason online customers abandon their shopping carts is that the shipping charges are too high.

Question 53

The amount of time the average person spends online is ________ than she/he spends watching television.

A) less
B) about the same
C) almost one-half
D) more

Question 54

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

Question 55

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 56

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

Question 57

The concept of a traditional marketing strategy is not necessary in building a successful e-business.

Question 58

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

Question 59

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 60

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 61

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 62

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 63

Examples of social media tools include ________.

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

Question 64

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 65

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

A) offer "frequent buyer" programs
B) clearly state prices and shipping charges
C) advertise with "pop-ups"
D) provide a search function

Question 66

For some businesses, e-mail takes a very low priority.

Question 67

An effective search engine optimization (SEO) strategy can be maintained through ________.

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

Question 68

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 69

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 ________ listings.

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

Question 70

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 71

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 72

Establishing a policy of responding to all customer e-mails within 24 hours and sending customers order and shipping confirmations and "thank you for your order" e-mails are not very important to enhancing online customer service.

Question 73

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 74

An estimated ________ percent of adults participate in social networks and the highest level of participation is social media is among adults ________ 30 years of age.

A) 65; over
B) 73; under
C) 55; over
D) 55; under

Question 75

Before your Web site can become the foundation of a successful e-business, you must create it with your target audience in mind.

Question 76

Approximately ________ percent of Web users speak English.

A) 38
B) 27
C) 37
D) 29

Question 77

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 78

A key aspect of an online strategy is to create it with the target audience in mind.

Question 79

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 or sponsored listings
D) Really Simple Syndication (RSS)

Question 80

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