Deck 5: E-Business and E-Commerce

Question 1

eBay is a good example of business-to-consumer electronic commerce.

Answer 1

False

Question 2

Even though B2C EC is much larger by volume, B2B is more complex.

Answer 2

False

Question 3

E-commerce is a broader definition of e-business.

Answer 3

False

Question 4

Visiting the Web site of a car manufacturer (e.g., HYPERLINK "http://www.gm.com" www.gm.com), entering the specifications for the car you want, and then picking up your car at your local dealership is an example of partial electronic commerce.

Question 5

Selling products such as books and computers on the Internet may reduce vendors' selling costs by 20 to 40 percent, with further reductions being difficult because the products must be delivered physically.

Question 6

You decide to start a landscaping business called Trim Grass.One of your services will be to perform fertilizer treatments.You will need to buy a great deal of fertilizer for your many clients. You can use all of the following methods to purchase the fertilizer except:

A)Forward auction
B)Reverse auction
C)Name your Own Price
D)Electronic Marketplace
E)Multichanneling

Question 7

In traditional commerce, one or more of the following can be digital: the product or service, the process, and the delivery agent.

Question 8

You decide to start a landscaping business called Trim Grass.You type HYPERLINK "http://www.TrimGrass.com" www.TrimGrass.com in a Web browser, and no page with that name appears.The domain name is therefore available.

Question 9

You can make a purchase in a referral mall.

Question 10

Forward auctions are auctions that sellers use as a channel to many potential buyers.

Question 11

An electronic storefront is a Web site on the Internet that represents a single store.

Question 12

It is more difficult but possible to sell luxury goods online.

Question 13

It is possible to "watch" vending machines over the Internet.

Question 14

You have been running a landscaping business called Trim Grass for about two years.You have developed a special blend of grass seed for your area that you use when you reseed your clients' lawns.You are receiving e-mails via your Web site from people who would like to purchase some.You decide to start selling seed online, and you hire someone to rebuild your Web site. Which of the following statements is not true?

A)Trim Grass is now multichanneling.
B)Trim Grass needs to think about how to ship the seed.
C)Trim Grass will have to collect sales tax from all sales.
D)Trim Grass will have more expenses.
E)Trim Grass will need to consider different advertising methods.

Question 15

You decide to start a landscaping business called Trim Grass.You created a Web site, but it doesn't seem to be attracting any clients.So, you decide to explore advertising on the Web.Which of the following advertising methods probably would not be beneficial?

A)Banner ads
B)Pop-up or pop-under ads
C)Spamming
D)Permission marketing
E)Viral marketing

Question 16

Virtual banks are those banks that are dedicated only to Internet transactions.

Question 17

You decide to start a landscaping business called Trim Grass.You expect to use the Web to help clients find you and communicate with you.You will mow lands, clean flower beds, and pick up leaves in the fall.You will send your clients monthly bills.Which of the following is true?

A)Trim Grass is using an e-commerce model.
B)Trim Grass is using an e-business model.
C)Trim Grass is using a forward auction.
D)Trim Grass is an electronic marketplace.
E)Trim Grass needs to worry about channel conflict.

Question 18

You decide to start a landscaping business called Trim Grass.Some of your residential clients would like to pay their bills online.Which of the following methods will not be appropriate for this type of payment?

A)Electronic checks
B)Electronic credit cards
C)Purchasing cards
D)Person-to-person payments
E)Stored-value money cards

Question 19

A virtual bank involves conducting banking activities from home, a place of business, or on the road in addition to a physical bank location.

Question 20

In a forward auction, the highest bid wins.

Question 21

Horizontal exchanges connect buyers and sellers across many industries.

Question 22

Purchasing cards and electronic credit cards are equivalent.

Question 23

The key mechanisms in the sell-side marketplace are customized electronic catalogs and reverse auctions.

Question 24

Forward auctions are the major method used in buy-side marketplaces.

Question 25

Electronic malls are collections of individual shops under a single Internet address.

Question 26

Internet advertising is impersonal, one-way mass communication.

Question 27

When multiple buyers combine their orders so that they constitute a large volume and therefore attract more seller attention, it is called group purchasing.

Question 28

Cybersquatting is illegal.

Question 29

Hacking is the indiscriminate distribution of electronic ads without permission of the receiver.

Question 30

Banners are the most common form of advertisement on the Internet.

Question 31

Channel conflict occurs when click-and-mortar companies have problems with their regular distributors when they sell directly to customers online.

Question 32

Stored-value money cards allow you to store a fixed amount of prepaid money and then spend it as necessary.

Question 33

Channel conflict occurs when manufacturers disintermediate their channel partners by selling their products directly to consumers.

Question 34

The buy-side marketplace is similar to the business-to-consumer model.

Question 35

In most cases, traditional payment systems are not effective for electronic commerce.

Question 36

Business-to-consumer applications comprise the majority of electronic commerce volume.

Question 37

Domain tasting is a practice of registrants using the five-day "grace period" at the beginning of a domain registration to profit from pay-per-click advertising.

Question 38

Selling luxury items online is as easy as selling books and DVDs.

Question 39

Each buyer needs only one e-wallet for all merchants.

Question 40

Smart cards can be used as credit cards, debit cards, and/or loyalty cards.

Question 41

If you are an worker managing your fringe benefits over your company's intranet, you are engaging in _________ e-commerce.

A)business-to-business
B)business-to-consumer
C)consumer-to-consumer
D)business-to-employee
E)government-to-citizen

Question 42

_____ auctions employ a request for quotation.

A)Forward
B)Static
C)Reverse
D)Physical
E)Simple

Question 43

In _______ e-commerce, the sellers and buyers are organizations.

A)government-to-citizen
B)consumer-to-consumer
C)business-to-business
D)business-to-consumer
E)consumer-to-business

Question 44

Which of the following is a disadvantage of click-and-mortar organizations?

A)Limited geographical reach
B)Added complexity combining two different environments
C)Customers uncomfortable with online transactions
D)No face-to-face interaction with customers

Question 45

In ________ e-commerce, an organization provides information and services to its workers.

A)business-to-employee
B)consumer-to-consumer
C)consumer-to-business
D)business-to-consumer
E)government-to-business

Question 46

_____ auctions are the most common auction model for large purchases.

A)Forward
B)Static
C)Reverse
D)Physical
E)Simple

Question 47

Treat America used _____________ to report on their vending machines.

A)e-business
B)e-commerce
C)the police
D)their service team

Question 48

____________ organizations have a limited geographical reach.

A)Brick-and-mortar
B)Business-to-consumer
C)Click-and-mortar
D)Virtual

Question 49

___________ marketing encourages receivers to send information about products/services to their friends.

A)Affiliate
B)Electronic
C)Group
D)Viral

Question 50

eBay uses a _____ auction.

A)forward
B)static
C)reverse
D)physical
E)simple

Question 51

Which of the following statements regarding the relationship between electronic commerce and search is not correct?

A)Purchases often follow successful online searches.
B)Shopping carts are often abandoned after unsuccessful online searches.
C)Retailers will provide fewer product details to avoid information overload for customers.
D)Customers will be able to find the closest store offering the product that they want.
E)Customers will have more relevant product information in the near future.

Question 52

A vendor asks its business partners to place logos or banners on their Web sites. If customers click on a logo, visit the vendor's site, and make a purchase, then the vendor pays a commission to the partner. This scenario illustrates which business model?

A)Find-the-best-price
B)Electronic tendering system
C)Name-your-own-price
D)Online direct marketing
E)Affiliate marketing

Question 53

__________ represents the vast majority of e-commerce.

A)B2B
B)B2C
C)C2C
D)G2C

Question 54

In _____ auctions, there is one buyer who wants to buy a product. Suppliers submit bids, and the lowest bid wins.

A)forward
B)static
C)reverse
D)physical
E)simple

Question 55

The degree of digitization relates to all of the following except:

A)The product or service sold
B)The process by which the product is produced
C)The delivery agent or intermediary
D)The size of e-commerce transactions
E)None of these

Question 56

Which of the following is a benefit of e-commerce to customers?

A)Makes national and international markets more accessible.
B)Lowering costs of processing, distributing, and retrieving information.
C)Access a vast number of products and services around the clock.
D)Ability to easily and conveniently deliver information, services, and products to people in cities, rural areas, and developing countries.

Question 57

Direct payment of Social Security benefits is an example of ______ e-commerce.

A)government-to-citizen
B)consumer-to-consumer
C)consumer-to-business
D)business-to-consumer
E)business-to-business

Question 58

_____, which is a broader concept than _____, is the buying and selling of goods and services, as well as servicing customers, collaborating with business partners, and performing transactions within an organization.

A)Business-to-business electronic commerce, business-to-customer electronic commerce
B)Electronic commerce, electronic business
C)Business-to-customer electronic commerce, business-to-business electronic commerce
D)Business-to-business electronic commerce, intrabusiness electronic commerce
E)Electronic business, electronic commerce

Question 59

In a reverse auction, the __________ bidder wins.

A)lowest
B)highest
C)neutral
D)nobody wins since this auction type doesn't exist

Question 60

In which of the following business models do businesses request quotes from suppliers and use B2B with a reverse auction mechanism?

A)Find-the-best-price
B)Electronic tendering system
C)Name-your-own-price
D)Online direct marketing
E)Affiliate marketing

Question 61

_____ offer(s)consumers incentives to accept advertising and e-mail voluntarily.

A)Viral marketing
B)Personalized marketing
C)Permission marketing
D)Paper catalogs
E)Direct mail

Question 62

________ is the process whereby a fully automated electronic commerce transaction eliminates middlemen.

A)Disintegration
B)Supply chain integration
C)Direct sales
D)Disintermediation
E)Value-added services

Question 63

Cyberbanking offers all of the following advantages except:

A)It is convenient for customers.
B)It saves time for customers.
C)It includes inexpensive transactions for the bank.
D)It can help recruit remote customers.
E)It is more expensive for the customer.

Question 64

Which type of electronic commerce does Amazon practice?

A)Business-to-employee
B)Consumer-to-consumer
C)Consumer- to-business
D)Business-to-consumer
E)Employee-to-business

Question 65

Which of the following is not an advantage of e-tailing?

A)You can buy from home, 24 hours per day.
B)You have only a few products to choose from.
C)You can obtain detailed information on products.
D)You can compare competitors' products and prices.
E)All of these

Question 66

_____ refers to online word-of-mouth marketing.

A)Permission marketing
B)One-to-one marketing
C)Personalized marketing
D)Viral marketing
E)Direct mail

Question 67

____________ is when steps are added to the value chain as new players find ways to add value to the business process.

A)Cybermediation
B)Disintermediation
C)Intermediation
D)Reintermediation

Question 68

Which of the following is a problem that e-commerce can cause for the airline industry?

A)Too many fares
B)Mistakes in fares
C)Too few fares
D)No fares offered on certain routes
E)Too many fares offered on certain routes

Question 69

Difficulties in order fulfillment are most closely associated with which type of electronic commerce?

A)Business-to-business
B)Business-to-consumer
C)Government-to-citizen
D)Business-to-employee
E)Mobile commerce

Question 70

The advantages of electronic commerce for consumers include all of the following except:

A)You can buy from home 24 hours per day, 7 days per week.
B)You have a wider variety of products to choose from.
C)You typically cannot access additional information, so you do not have information overload.
D)You can easily compare prices and features.
E)You can find unique items.

Question 71

_______ e-commerce is also known as e-tailing.

A)Business-to-business
B)Collaborative commerce
C)Intrabusiness
D)Business-to-consumer
E)Consumer-to-business

Question 72

A _____ is automatically launched by some trigger and appears behind the active window.

A)keyword banner
B)random banner
C)pop-up ad
D)pop-under ad
E)text box

Question 73

An electronic storefront represents ____________.

A)the Internet
B)a single store
C)multiple stores
D)a web page

Question 74

__________ are electronic billboards.

A)Advertisements
B)Banners
C)Pop-up ads
D)Pop-under ads

Question 75

____________ advertising is when the company only pays for measurable results.

A)Brand
B)Click-through
C)Impression-based
D)Performance-based

Question 76

Which of the following is not an electronic commerce application?

A)Home banking
B)Buying stocks
C)Evaluating an employee
D)Conducting an auction
E)Buying real estate

Question 77

Which type of electronic commerce is the largest by volume?

A)Business-to-employee
B)Consumer-to-consumer
C)Business-to-business
D)Business-to-consumer
E)None of these

Question 78

Treat America turned to E-business for all of the following reasons except:

A)The company needed to capture extensive data from each vending machine.
B)The company wanted a competitive advantage over competitors that simply raised prices.
C)The company's vending machines are unmanned.
D)Gas prices are increasing.
E)The company's vending machines are open beyond "normal" business hours.

Question 79

Which of the following are luxury shoppers' requirements that a Web site could not originally provide?

A)Hands-on customer service
B)Guidance on the latest fashions
C)Trying on/looking at the products
D)All of the above are things that couldn't originally be provided

Question 80

Internet advertising improves on traditional advertising in all of the following ways except:

A)Internet ads can be updated at any time at minimal cost.
B)Internet ads can reach large numbers of potential buyers all over the world.
C)Internet ads are always more effective than other types of advertising.
D)Internet ads can make effective use of multimedia.
E)Internet ads are current.