Deck 1: Overview of Electronic Commerce

Question 1

S-commerce refers to electronic commerce activities conducted on Facebook or influenced by the site.

Answer 1

False

Question 2

According to O'Reilly (2005),Web 2.0 Level 1 applications operate offline but gain features from going online.

Answer 2

True

Question 3

Electronic commerce is the process of buying,selling,or exchanging products,services,or information via computer.

Answer 3

True

Question 4

Today,over 90 percent of EC volume is B2C.

Question 5

By definition,enterprise social networks are public.

Question 6

E-commerce 2.0 is based primarily on blogs and corporate-sponsored collaboration.

Question 7

If a company purchases Godiva chocolates as gifts for its employees and has Godiva mail them directly to the recipient,the company is engaged in B2B2C.

Question 8

Purchasing a computer from dell.com is an example of B2B commerce.

Question 9

Major characteristics of the digital economy include obsolescence,digitization,and wars.

Question 10

Economic,legal,societal,and technological factors have created a highly competitive business environment in which customers are becoming less powerful.

Question 11

Social networking is the execution of any Web 2.0 activity,such as blogging and/or having a presence in a social network.

Question 12

A brick-and-mortar organization performs its primary business offline,selling physical products by means of physical agents.

Question 13

Net-a-Porter buying merchandise from its designers is an example of B2B commerce.

Question 14

Selling and buying electronically can be either business-to-consumer or business-to-business.

Question 15

An extranet is a network that uses private corporate networks to link together multiple intranets.

Question 16

The first generation of EC involves social networks,virtual worlds,and online transactions.

Question 17

Network infrastructures include cell phones and other electronic devices that are located in various locations by telecommunications networks,including wireless ones.

Question 18

Booking tickets on Facebook without leaving the social network is an example of enterprise social commerce.

Question 19

Despite the failures of individual companies and initiatives,the total volume of EC has been growing each year.

Question 20

Buying an e-book from Amazon is an example of partial electronic commerce.

Question 21

A key success factor for Net-A-Porter is the ability to

A) buy what customers want from designers.
B) provide services at a lower cost.
C) provide products to a niche market.
D) use IT for competitive advantage.

Question 22

Corporate governance is the branch of philosophy that deals with what is considered to be right and wrong.

Question 23

Efficient transactions,price comparisons for customers,and global reach are three major capabilities that contribute to the growth of EC.

Question 24

Value proposition refers to the benefits that a company can derive from using EC.

Question 25

A business model outlines how the organization,or the EC project,will generate revenue through sales,transaction fees,advertising fees,affiliate fees,or other revenue sources.

Question 26

Net-A-Porter's online store is an example of

A) business-to-employees EC.
B) business-to-consumer EC.
C) business-to-business EC.
D) consumer-to-consumer EC.

Question 27

A broader definition of EC that includes not just the buying and selling of goods and services,but also servicing customers,collaborating with business partners,and conducting electronic transactions within an organization best defines

A) e-commerce.
B) e-business.
C) e-government.
D) e-tailing.

Question 28

Rapid technological obsolescence is an example of a technological business pressure.

Question 29

Business model refers to the series of value-adding activities that an organization performs to achieve its goals,such as making a profit,at various stages of the production process.

Question 30

Organizations that conduct their business activities solely online are

A) click-and-mortar organizations.
B) pure-play organizations.
C) brick-and-mortar organizations.
D) unrestricted commerce organizations.

Question 31

Political and government is an example of a societal business pressure.

Question 32

External barriers to EC include security,lack of technical knowledge,and lack of time and resources.

Question 33

According to Amit and Zott (2001),consolidation value involves bundling some goods and services together to provide more value than from offering them separately.

Question 34

According to Amit and Zott (2001),novelty creates value through innovative ways for structuring transactions,connecting partners,and fostering new markets.

Question 35

The financial crisis of 2008-2010 resulted in many companies going out of business or being acquired by other companies.

Question 36

Depending on the degree of digitization,EC can take several forms including

A) the ordering system, processing, and shipping method.
B) the business process, the collaboration, and the transaction.
C) the payment method, the delivery method, and the production method.
D) the marketing channel, the agent, and the collaboration method.

Question 37

Referencing the licensing fees revenue model,a company receives commissions for referring customers to others' websites.

Question 38

According to the affiliate marketing EC business model,people use e-mail and social networks for spreading word-of-mouth advertising.

Question 39

A business model is a method of doing business by which a company can generate revenue to sustain itself.

Question 40

Responses to environmental pressures may include activities that exploit opportunities created by changing conditions.

Question 41

Commercial activities conducted on Facebook best describes

A) social commerce.
B) c-commerce.
C) business-to-consumer commerce.
D) f-commerce.

Question 42

G2B occurs when

A) a government entity buys or provides goods, services, or information from or to individual citizens.
B) a government entity buys or provides goods, services, or information from or to businesses.
C) a government entity buys or provides goods, services, or information from or to other governments.
D) a government entity buys or provides goods, services, or information from or to nonprofit organizations.

Question 43

The second generation of Internet-based services that lets people collaborate and share information online in new ways,such as social networks,wikis,communication tools,and folksonomies,best describes

A) Virtual Web.
B) Media Web.
C) Web 2.0.
D) Social Web.

Question 44

According to O'Reilly (2005),which Web 2.0 level's applications exist only on the Internet,deriving their effectiveness from interhuman connections and from the network effects that Web 2.0 makes possible and growing in effectiveness as people make more use of them?

A) Level 0
B) Level 3
C) Level 1
D) Level 2

Question 45

According to O'Reilly (2005),which Web 2.0 level's applications work as well offline as online?

A) Level 0
B) Level 3
C) Level 1
D) Level 2

Question 46

Organizations that conduct some e-commerce activities,usually as an additional marketing channel,are

A) brick-and-mortar organizations.
B) value-added organizations.
C) pure-play organizations.
D) click-and-mortar organizations.

Question 47

According to the Electronic Commerce Framework,direct marketing,search jobs,and online banking are

A) electronic commerce applications.
B) support services.
C) part of the EC infrastructure.
D) supply chain management activities.

Question 48

When Apple conducts online transactions with its trading partners,this is an example of

A) B2B.
B) B2C.
C) e-CRM.
D) EDI.

Question 49

A job opening in the Sales Department is posted on the company's intranet by the Human Resources Department.This is an example of

A) E2C.
B) B2S.
C) B2B.
D) B2E.

Question 50

Reasons EC companies fail include

A) lack of financial skills.
B) little experience with marketing.
C) not ensuring they have the inventory and distribution setup to meet the fluctuating and increasing demand for their products.
D) all of the above.

Question 51

EC classifications include

A) business-to-business.
B) business-to-consumer.
C) consumer-to-business.
D) all of the above.

Question 52

A corporate or government network that uses Internet tools,such as Web browsers,and Internet protocols best defines

A) social network.
B) extranet.
C) intranet.
D) e-market.

Question 53

Boeing designing a product together with one of its business partners is an example of

A) collaborative commerce.
B) business-to-business commerce.
C) consumer-to-business commerce.
D) business-to-employees commerce.

Question 54

An e-commerce model in which all the participants are businesses or other organizations describes

A) business-to-consumer.
B) business-to-business.
C) business-to-business-to-consumer.
D) consumer-to-business.

Question 55

A business that provides some product or service to a client business that maintains its own customers best describes the E-commerce model of

A) consumer-to-business.
B) intrabusiness EC.
C) business-to-business-to-consumer.
D) business-to-business.

Question 56

A category of Internet applications that help connect friends,business partners,or individuals with specific interests by providing free services such as photo presentation,e-mail,blogging,and so on using a variety of tools best defines

A) social networking.
B) enterprise networks.
C) community networks.
D) intranets.

Question 57

An online marketplace where buyers and sellers meet to exchange goods,services,money,or information best defines

A) electronic marketplace.
B) farmers market.
C) digital marketplace.
D) webinar.

Question 58

A technology used to electronically transfer routine documents,such as invoices and purchase orders,and for financial transactions is

A) electronic funds transfer.
B) exchange-to-exchange.
C) electronic data interchange.
D) global document transfer.

Question 59

Selling corporate products to one's employees is an example of

A) business-to-consumer.
B) intrabusiness EC.
C) business-to-business-to-consumer.
D) collaborative commerce.

Question 60

Referencing the Electronic Commerce Framework,marketing and advertisement is in the category of

A) electronic commerce applications.
B) infrastructure.
C) value chain.
D) support services.

Question 61

Benefits of EC to organizations include each of the following except

A) cost reduction.
B) closing the digital divide.
C) supply chain improvements.
D) efficient procurement.

Question 62

According to the ________ revenue model,companies receive commissions for referring customers to others' EC websites.

A) advertising fees
B) subscription fees
C) affiliate fees
D) transaction fees

Question 63

Each of the following is a non-technological limitation of EC except

A) software development tools are still evolving.
B) lack of trust in EC and in unknown sellers hinders buying.
C) people do not yet sufficiently trust paperless, faceless transactions.
D) online fraud is increasing.

Question 64

Because the pace of change and level of uncertainty in the marketplace are expected to accelerate,organizations are

A) unable to react quickly enough to threats and opportunities.
B) operating under increasing pressures to produce more products, faster, and with fewer resources.
C) making fewer decisions and/or decisions less frequently.
D) considering less information when making decisions.

Question 65

Each of the following is an essential capability that helps drive EC except

A) providing efficient and effective business transactions.
B) facilitating company consolidations.
C) customizing products and personalizing services.
D) sharing information and knowledge.

Question 66

Major barriers to EC include each of the following except

A) competition.
B) lack of potential customers.
C) implementation difficulties.
D) lack of technology skills.

Question 67

According to the ________ revenue model,customers pay a fixed amount,usually monthly,to receive some type of service.

A) subscription fees
B) transaction fees
C) advertising fees
D) affiliate fees

Question 68

A method of doing business by which a company can generate revenue to sustain itself best defines

A) marketing strategy.
B) business model.
C) value chain.
D) business plan.

Question 69

Which of the following is not one of the benefits that EC provides to consumers?

A) global reach
B) instant delivery
C) enable telecommuting
D) ubiquity

Question 70

According to the Business Environment and Performance Impact Model,________ provide support to organizations' activities and to the resultant performance,countering business pressures.

A) EC and IT
B) missions and strategies
C) core competencies and critical response activities
D) markets and government

Question 71

A major gateway through which employees,business partners,and the public can enter a corporate website best defines

A) corporate portal.
B) intranet.
C) extranet.
D) social network.

Question 72

According to the ________ model,an organization can increase brand awareness or even generate sales by Web-based word-of-mouth marketing or promoting a product or service to other people.

A) electronic tendering systems
B) online direct marketing
C) name-your-own-price
D) viral marketing

Question 73

According to the Business Environment and Performance Model,drivers for organizations include

A) the organization's mission.
B) problems from the business environment.
C) the organization's strategy.
D) all of the above.

Question 74

Each of the following is a benefit of EC to society except

A) more public services.
B) closing the digital divide.
C) fewer permits and less tax.
D) improving homeland security.

Question 75

Societal business pressure examples include

A) increased power of the consumer.
B) global economy.
C) compliance.
D) rapid technological obsolescence.

Question 76

As identified by Amit and Zott (2001)which of the following is not one of the four sets of values that are created by e-business?

A) financial efficiency
B) search and transaction cost efficiency
C) complementarities
D) novelty

Question 77

Large organizational buyers make large-volume or large-value purchases through ________,also known as reverse auctions.

A) electronic tendering systems
B) online direct marketing
C) name-your-own-price models
D) viral marketing

Question 78

The success of the entrepreneurial company JetPens was due to keeping costs low by each of the following methods except

A) using open source free software.
B) advertising via e-mail.
C) giving away free samples via social networks.
D) using smart key words to rank high with search engines.

Question 79

The e-commerce activities conducted in social networks and/or by using social software best describes

A) virtual commerce.
B) social commerce.
C) consumer commerce.
D) enterprise commerce.

Question 80

Which of the following is a technological limitation of EC?

A) security and privacy concerns that deter customers from buying
B) difficulty obtaining venture capital
C) order fulfillment requirements of large-scale B2C
D) unresolved taxation, public policy, and legal issues