Deck 6: E-Business and E-Commerce

Question 1

In order to accept credit card payments for purchases,American Express,Visa and other credit card companies require that e-commerce Web sites be PCI DSS compliant and certified to __________.

A)help prevent credit card fraud
B)support Web site analytics
C)manage customer relationships
D)verify that the products are in-stock.

Answer 1

A

Question 2

Public and private __________ are sites where many sellers and many buyers buy and sell.

A)networks
B)exchanges
C)sources
D)value chains

Answer 2

B

Question 3

Over 85 percent of e-commerce dollar volume is __________ commerce.

A)B2B
B)B2C
C)G2G
D)G2B

Answer 3

A

Question 4

Which of the following is not one of Amazon.com's success factors?

A)Patented IT developments
B)Personalized service
C)Physical warehouses designed for shipping small packages to hundreds of thousands of customers
D)Maintaining a constant business model

Question 5

Priceline.com is an example of __________ commerce because the customer names a product or service and the desired price,and then Priceline tries to find a supplier to fulfill that need.

A)business-to-consumers
B)consumers-to-business
C)mobile
D)business-to-business

Question 6

Effective e-business models and competitive strategies are developed by __________.

A)vendors and service providers
B)senior marketing managers
C)managers from various functional areas,including marketing,IT,operations,logistics,and accounting
D)Web site designers

Question 7

Online channels and connectivity support __________,which minimizes the limitations of having to be physically present in a single location to collaborate or train.

A)the e-business process
B)telepresence
C)community
D)self-service

Question 8

When a user clicks on a malvertisement on a Web site,the ad will __________.

A)release the latest malware to launch attacks on government agencies
B)redirect to and load a malicious Web site,which is a replica of the site the user was expecting
C)download a cookie that tracks the user's purchases and credit cards
D)all of the above

Question 9

When managers are planning and managing their online business,they should do all of the following except _____.

A)make data-driven,fact-based plans
B)identify all key assumptions in the marketing plan
C)monitor progress to identify when adjustments are needed,and then be agile enough to respond
D)build the marketing plan around the products,rather than on customer

Question 10

A service level agreement (SLA)is a legal written contract between a vendor and client in which the vendor guarantees __________.

A)a maximum service charge
B)free upgrades for the length of the contract
C)no defects and/or no risk
D)a minimal level of service

Question 11

A benefit of hosting an e-commerce Web site on a third-party's server is __________,which is being able to add-on additional capacity incrementally,quickly,and as needed.

A)scalability
B)maintenance
C)accuracy
D)security

Question 12

Characteristics of ING Direct's competitive strategy include all of the following except:

A)paid the highest rates on savings accounts
B)invested heavily in marketing campaigns
C)could not be copied by competitors
D)had almost no bricks and mortar

Question 13

Which of the following is not a characteristic of competitive innovation?

A)No competitive innovation remains unique for long.
B)Leading companies are always looking for next-generation capabilities to develop new competitive advantage.
C)Most innovations cannot be duplicated by other companies.
D)A current approach is to integrate social networks.

Question 14

For banks,one benefit from implementing online banking is __________.

A)it offers an inexpensive alternative to branch banking
B)transaction costs are about 40% lower than at a physical branch
C)margins are higher because interest rates offered to customers are lower
D)all of the above

Question 15

In the e-commerce business model __________,a vendor asks its partners to place logos or banner ads on their sites.If customers click the logo,go to vendor's site,and buy;then the vendor pays a commission to partners.

A)affiliate marketing
B)B2B commerce
C)relationship marketing
D)viral marketing

Question 16

Which of the following is not one of the challenges facing many e-tailers that can interfere with the growth of its e-tailing efforts?

A)channel conflict
B)reaching customers
C)conflict within their own offline operations
D)tough order fulfillment and logistics problems

Question 17

E-procurement strategies and solutions have two basic goals,which are _____.

A)to control costs and simplify processes
B)collaboration and negotiation
C)supplier selection and product selection
D)RFQ processing and exchanges

Question 18

Sears uses __________ as a selling channel to liquidate (get rid of)its excess or discontinued inventory.

A)C2C commerce
B)forward auctions
C)reverse auctions
D)affiliate marketing

Question 19

The benefits of streamlining the e-procurement process within an organization's value chain include all of the following except:

A)maximizes the number of suppliers
B)reduces the number of employees needed to process purchasing
C)reduces the time to order and receive items
D)helps employees make intelligent decisions when procuring items

Question 20

E-sourcing refers to the many __________ methods.

A)B2C e-commerce
B)procurement
C)sell-side
D)C2C auction

Question 21

One of the problems with __________ advertising is that advertisers knew very little about the recipients.

A)direct mail
B)Web
C)interactive
D)social media

Question 22

__________ is the filtering out of irrelevant information for consumers in order to reduce their information overload.

A)Affiliate marketing
B)Customizing ads
C)Sourcing
D)Viral marketing

Question 23

__________ are e-marketplaces that serve one industry,e.g. ,automotive,chemical,along the entire supply chain.

A)Vertical exchanges
B)Supply hubs
C)Horizontal exchanges
D)Collaboration hubs

Question 24

__________ systems using reverse auctions are often mandatory to ensure the best price and quality for government procurement of goods and services.

A)Electronic tendering
B)Cloud computing
C)Spot sourcing
D)Maverick buying

Question 25

Security requirements for conducting e-commerce are each of the following except:

A)authentication
B)integrity
C)privacy
D)e-money

Question 26

__________ is a revenue model by which an organization refers consumers to the selling company's Web site.

A)Affiliate marketing
B)Customizing ads
C)Sourcing
D)Viral marketing

Question 27

A survey conducted by the nonprofit Public Technology Institute (PTI)found 45 percent of local governments are using some form of __________ for applications or services because of budget pressures to reduce costs.

A)electronic tendering
B)cloud computing
C)spot sourcing
D)maverick buying

Question 28

ChemConnect.com and iSteelAsia.com are examples of vertical exchanges in which the prices of products __________.

A)change continuously based on the matching of supply and demand
B)are fixed based on contracts
C)change based on quantity purchased
D)are negotiated annually

Question 29

American Express developed tools that improved compliance with procurement rules on indirect purchases,or MRO supplies.One of the major performance improvements was the __________.

A)increase in spot buying
B)elimination of maverick buying
C)reduction in billing errors
D)increase in purchases from local vendors

Question 30

PayPal is an example of __________.

A)e-cash
B)electronic payment systems
C)ATM
D)micropayments

Question 31

One of the major e-commerce services is __________,which consists of technology consultants,system developers,integrators,hosting,security,wireless,and networks.

A)e-process
B)e-infrastructure
C)e-markets
D)e-content

Question 32

Why does maverick buying increase the costs of products?

A)Vendor's prices may be high.
B)It can keep the company from getting volume discounts.
C)It makes the procurement process too complicated.
D)a and b

Question 33

Which of the following is not a characteristic of order fulfillment in B2C e-commerce?

A)It is very difficult to accomplish order fulfillment both effectively and efficiently since a company may need to ship small packages to many customers quickly.
B)Order fulfillment processes are basically the same regardless of the type and size of the products and the vendor.
C)Because of difficulties in B2C supply chains,companies outsource deliveries and sometimes also the packaging.
D)Order fulfillment includes not only providing customers with what they ordered and doing it on time,but also providing all related customer service.

Question 34

__________ refers to word-of-mouth marketing in which customers promote a product or service by telling others about it.

A)Affiliate marketing
B)Customizing ads
C)Sourcing
D)Viral marketing

Question 35

The purchase of indirect materials on an as-needed basis is referred to as __________ sourcing.

A)horizontal
B)vertical
C)spot
D)systematic

Question 36

Electronic benefits transfer (EBT),in which governments distribute benefit payments,such as Social Security payments,directly to recipients' bank accounts or their smart cards is an example of __________.

A)G2B
B)G2C
C)G2G
D)G2S

Question 37

With __________,users log in once and then have access to all software and data sources that they are authorized to access.

A)cloud computing
B)data centers
C)servers
D)single sign-on

Question 38

The goal of __________ is to find information and knowledge that describe the relationships among consumers,products,marketing methods,and marketers.

A)social marketing
B)surveys
C)market research
D)directory services

Question 39

California's Office of Traffic Safety (OTS)partnered with the Taxi Magic app team to __________.

A)reduce DUI
B)sponsor contests
C)interface with Facebook
D)reduce poverty

Question 40

Credit card data is secured through __________ by using the SSL protocol in the browser of the buyer's computer.

A)steganography
B)PKI
C)encryption
D)routers

Question 41

Ethical standards and laws frequently __________ technological innovation.

A)lag behind
B)keep pace
C)conflict with
D)lead ahead of

Question 42

Only a few purely online e-tailers went bankrupt in the dot-com era because of problems with cash flow,customer acquisition,order fulfillment,and demand forecasting.

Question 43

By using B2B,organizations can restructure their supply chains and partner relationships.

Question 44

Unlike brick-and-mortar merchants,all e-commerce merchants need to be PCI DSS compliant to accept,hold,process,or exchange credit cardholder information of the major credit cards.

Question 45

Local governments implemented a public cloud,private cloud,regional cloud,government-operated cloud,or a cloud operated by a vendor despite the higher costs of cloud computing solutions.

Question 46

In the sell-side marketplace model,organizations sell their products or services to other organizations from their own private e-marketplace or from a third-party site.

Question 47

In B2C,the sellers are organizations,and the buyers are individuals.B2C is also called e-tailing.

Question 48

Early on,managers at Amazon.com recognized the importance of order fulfillment and made minor investments in building physical warehouses designed for shipping small packages to customers.

Question 49

Hosting an e-business Web site on a third-party's server is done if the company lacks infrastructure to host it themselves,does not have the IT expertise to manage it,or needs scalability.

Question 50

Sellers that are click-and-mortar companies,such as Levi's or GM,face channel conflict with their regular distributors when they circumvent those distributors by selling online directly to customers.

Question 51

Hong Kong and Shanghai Bank developed a special system called HSBCnet to provide online banking in 60 countries.Using this system,the bank rapidly became a major international bank without developing an extensive new branch network.

Question 52

The legal and ethical issues related to e-commerce include all of the following except:

A)PCI
B)fraud
C)Web tracking
D)privacy

Question 53

One of the problems with direct mail advertising is that advertisers knew very little about the recipients.The problem is solved by using Internet-based interactive marketing.

Question 54

Payments are an integral part of doing business in both traditional and online business.Traditional payment systems are effective for e-commerce,especially for B2B.

Question 55

__________ are the principal resources used to track visitors' Web activities and from which e-businesses draw information about how visitors use a site.

A)Cookies
B)Firewalls
C)Log files
D)Flash files

Question 56

Privacy Guardian,MyPrivacy,and Tracks Eraser Pro are examples of software that can protect users' online privacy by erasing _____.

A)a browser's cache
B)surfing histories
C)cookies
D)all of the above

Question 57

The online explosion has given today's consumers less control over where and how they interact with a business or a brand through a mix of online channels and media.

Question 58

Order fulfillment includes providing customers with what they ordered and doing it on time,and providing all customer services,such as instructions,exchanges,and returns.

Question 59

Web sites need to be hosted on large capacity servers that are capable of supporting the volume of requests for access,or traffic.

Question 60

Car insurance companies,manufacturers,and airlines are able to sell their products and services directly to customers via B2C sites and eliminate agents and retailers.This phenomenon is referred to as __________.

A)nonrepudiation
B)order fulfillment
C)intermediation
D)disintermediation

Question 61

__________ is a part of a company's back-office operations,which include inventory control,shipment,and billing.

Question 62

In __________ transactions,both the sellers and the buyers are business organizations.

Question 63

List and explain two benefits of e-government.

Question 64

What are reverse auctions and RFQs? Explain how they work and their purpose.
Why do governments and corporations frequently mandate the RFQ approach for procurements?

Question 65

Identify and briefly discuss two of the ethical issues related to e-business.

Question 66

__________ are ads,that when clicked,will redirect to a malicious Web site that is a replica of the site the user was expecting to see.

Question 67

A __________ is a legal written contract between a vendor or other service provider and the client wherein the service provider guarantees a minimal level of service.

Question 68

The return process is referred to as __________.

Question 69

Corporate __________,also called corporate purchasing,deals with the buying of products and services by an organization for its operational and functional needs.

Question 70

List and define 4 of the basic types of e-business transactions.

Question 71

The PCI DSS (Payment Card Industry Data Security Standard)is a set of information security requirements to help prevent __________.

Question 72

__________ refers to word-of-mouth marketing in which customers promote a product or service by telling others about it.

Question 73

Toy manufacturers such a Fisher Price or Lego would face __________ with their regular distributors by circumventing those distributors and selling online directly to customers.

Question 74

A benefit of hosting an e-commerce site on a third-party's server is __________,which refers to the capability to add-on additional capacity incrementally,quickly,and as needed.