Chapter 1 Overview of Electronic Commerce

1-According to Peter Drucker, e-commerce is profoundly changing markets, industry

structures, products and services, consumer segmentation, consumer values and consumer

behavior; jobs, and labor markets.

True False

2-By purchasing a textbook from Amazon.com and having the merchandise physically

delivered, Amazon.com would be considered a click-and-mortar organization because pure

EC did not occur.

True False

3-In the field, a sales representative writes notes with a mobile handwriting-recognition

computer immediately after a sales call. This can be viewed as an EC activity.

True False

4-In addition to EC being conducted via the Internet, EC can be conducted over local area

networks (LANs).

True False

5-An example of business-to-consumer (B2C) is when Dell provides customer service online

by collaborating electronically with its partners.

True False

6-An internal corporate network that uses Internet tools, such as Web browsers, is known

as an intranet.

True False

7-An extranet is a network that uses the Internet to link together multiple intranets.

True False

8-Purchasing a Dell computer online for use at home is an example of e-tailing.

True False

9-Networked computing connects multiple computers and other electronic devices that are

located in various locations by telecommunications networks, including wireless ones.

True False

10-When Dell purchases Godiva chocolates as gifts for its employees and has Godiva mail

them directly to the recipient Dell is engaged in B2B2C.

True False

11-Peer-to-peer (P2P) technology can be used in C2C, B2B, and B2C.

True False

12-The final participants in B2B transactions are consumers.

True False

13-Doing your banking on an Internet-enabled cell phone is an example of m-commerce.

True False

14-Despite the many e-tailing EC companies that have failed in the past, the dot-com

failure rate has recently declined sharply.

True False

15-Since 2001, no other company has had more of an impact on EC than MySpace.

True False

16-Wikipedia.com, a Web site that allows people to work together online and share

information, is an example of Web 2.0.

True False

17-The digital economy refers to an economy based on digital communication networks,

computers, software, and other related information technologies that provide a global

platform over which people and organizations interact, communicate, collaborate, and

search for information.

True False

18-Economic, legal, societal, and technological factors have created a highly competitive

business environment in which customers are becoming less powerful.

True False

19-Strong competition and increased power of consumers are two of the major market

pressures in today's business environment.

True False

20-Business models are a subset of a business plan or business case and refer to methods of

doing business by which a company can generate revenue.

True False

21-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.

True False

22-A value proposition refers to the tangible and intangible benefits that a company can

derive from using EC making it an important part of the marketing plan.

True False

23-Affiliate marketing is an EC business model of word-of-mouth marketing in which

customers promote a product or service to friends or other people.

True False

24-Social networks, such as Facebook, YouTube, and MySpace, are Web sites that connect

people with specific interests by providing free services such as photo sharing, e-mail, and

blogging.

True False

25-Many companies used a corporate portal, which is a gateway for customers, employees,

and partners to reach corporate information and communicate with the company.

True False

26-Dell's cornerstone business model is based on the concept of:

selling directly to

small and medium

sized businesses.

build-to-order which allows

customers to configure their

own customized systems.

rapid business

growth and

threatening

competitors.

e-collaboration with a

few select business

partners.

27-________ refers to the buying and selling of goods and services; servicing of customers;

collaborating with business partners; and conducting electronic transactions within an

organization.

Partial EC E-business Pure EC E-commerce

28-EC can take several forms depending on the degree of digitization of the following three

dimensions:

the product or

service sold, the

process, and the

delivery method.

the marketing channel,

the agent, and the

collaboration method.

the payment method,

the delivery method,

and the production

method.

the business process,

the collaboration, and

the transaction.

29-Purely physical companies are referred to as ________ companies, whereas companies

that are engaged only in EC are considered ________ companies.

virtual; pure play click-and-mortar; click-and-brick brick-and-mortar; virtual pure play; virtual

30-The ways in which EC is done include:

the Internet, value-added networks, on

local area networks using intranets, or on

a single computerized machine.

the Internet

and extranets.

the Internet,

extranets, and

private networks.

the Internet and

private

networks.

31-________ are systems where only routine transaction processing and information flow

take place between two or more organizations using a standard protocol, such as electronic

data interchange (EDI).

Intrabusiness EC E-CRM Interorganizational information systems B2B

32-A business such as Apple Computers making online transactions with its trading

partners is an example of:

e-CRM EDI B2B B2C

33-EC applications are supported by infrastructure and by each of the following support

areas EXCEPT:

People Marketing and advertisement Mobile devices Public policy

34-Intrabusiness EC is usually performed over intranets and/or ________.

P2P networks exchanges mobile networks corporate portals

35-A technology that is used to electronically transfer routine documents, such as invoices

and purchase orders, and for financial transactions is ________.

Exchange-to-exchange Electronic data interchange Electronic funds transfer Peer-to-peer

36-Challenges that Boeing faced with its global collaboration for the design and assembly

process of its new Dreamliner passenger plane included each of the following EXCEPT:

Information security Lag time Teams working across various time zones Data management

37-A large number of EC companies, especially e-tailing and B2B ones, failed from 1999 to

2005 for each of the following reasons EXCEPT:

The companies failed to ensure

they had sufficient inventory and

a distribution setup to meet

initial demand.

The companies

lacked financial

skills.

The companies had

little marketing

experience.

The companies failed to

register with search

engines, such as

Google.

38-________ refers to the second-generation of Internet-based services that let people

collaborate and share information online in new ways, such as social networks and wikis.

Virtual Web Social Web Web 2.0 Media Web

39-Which of the following is not a characteristic of the Digital Revolution?

A high rate of

obsolescence.

Intelligent search agents to

help manage information

overload.

Fraud and other

cybercons carried out

via the Internet.

Many business processes

are expedited by up to

50 percent.

40-Because the rate of change and the level of uncertainty are expected to accelerate,

organizations are

considering less

information when

making decisions.

operating under increasing

pressures to produce more

products, faster, and with

fewer resources.

unable to react quickly

enough to threats and

opportunities.

making fewer

decisions and/or

decisions less

frequently.

41-According to the Business Environment Impact Model, ________ provide support to

organizations' activities and to actual performance, countering business pressures.

core competencies and critical response

activities

missions and

strategies EC and

IT

markets and

government

42-A ________ is a company's method of doing business to generate revenue to sustain

itself.

marketing strategy business model business plan value chain

43-According to the ________ revenue model, companies receive commissions for referring

customers to others' EC Web sites.

affiliate fees advertising fees subscription fees transaction fees

44-According to the ________ revenue model, customers page a fixed amount, usually

monthly, to receive some type of service.

transaction fees affiliate fees subscription fees advertising fees

45-Large private organizational buyers and government agencies make large-volume or

large-value purchases through ________, also known as reverse auctions.

name-your-own-price

models

viral

marketing

online direct

marketing electronic tendering

systems

46-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.

electronic tendering

systems viral

marketing

name-your-own-price

models

online direct

marketing

47-Online group purchasing organizations are known as:

e-co-ops SMEs exchanges barters

48-Major barriers to EC include all of the following EXCEPT:

implementation difficulties lack of technology lack of potential customers cost

49-Which of the following is a technological limitation of EC?

Difficulty

obtaining venture

capital.

Security and privacy

concerns that deter

customers from buying.

Unresolved taxation,

public policy, and legal

issues.

Order fulfillment

requirements of large-

scale B2C.

50-A job opening in the Sales Department posted on the company's Intranet by the Human

Resources Department is an example of:

B2E B2S E2C B2B

51-Boeing designing a product together with a business partner is this type of interaction:

B2B2C Nonbusiness EC B2B. Collaborative Commerce

52-A corporation uses the Internal Revenue Service's Web site to learn how to pay its

estimated quarterly income taxes. This is an example of:

G2G E2E. G2C G2B

53-The second-generation of Internet-based services that lets people collaborate and share

information online is known as Web 2.0. An example of this is:

mp3.com DoubleClick Evite blogging

54-The digital enterprise shifts the focus from managing individual information resources

such as devices, applications, and data to ________ that define the business and ultimately

deliver value to customers and end users.

transforming revenue

models

developing

models

organizing supply

chains orchestrating the services and

workflows

55-Many companies employ a(n) ________, which is a gateway for customers, employees,

and partners to reach corporate information and to communicate with the company.

corporate portal intranet social network extranet

Chapter 2 E-Marketplaces

1-The functions and efficiency of an e-market are the same as that of a physical

marketplace.

True False

2-The emergence of electronic marketplaces has resulted in lower information search costs

for buyers and lower transaction and distribution costs for sellers.

True False

3-Although both marketplaces and marketspaces can sell physical products, the

marketspace also can sell digital products, which are goods that can be transformed to

digital format and delivered instantly over the Internet.

True False

4-Front end refers to the activities that support online order fulfillment, inventory

management, purchasing from suppliers, payment processing, packaging, and delivery.

True False

5-In marketing, an intermediary is a third party that operates between sellers and buyers.

Intermediaries of all kinds offer their services on the Web.

True False

6-WebMD, which is the largest U.S. medical services company, is known mainly for its

webmd.com consumer portal, but its core business is being an e-intermediary.

True False

7-The major B2B e-marketplaces are electronic storefronts, Internet malls, and exchanges.

True False

8-A portal is an information gateway that attempts to address information overload by

enabling people to search and access relevant information from disparate IT systems and

the Internet, using advanced search and indexing techniques, such as Google's desktop.

True False

9-Intermediaries are human or electronic agents that play an important role in EC by

providing value-added services such as making payment arrangements to buyers and

sellers.

True False

10-Travelers using airline Web sites to book their flights directly without the use of travel

agents is resulting in the reintermediation of travel agents.

True False

11-Search engines not only "search and match," but also have capabilities that can be used

to perform routine tasks that require intelligence.

True False

12-An electronic shopping cart is an order-processing technology that allows customers to

accumulate items they wish to buy while they continue to shop.

True False

13-Shopping carts for B2B are fairly simple, but a shopping cart for B2C may be more

complex.

True False

14-An auction is a competitive process and market mechanism that uses a competitive

process by which a seller solicits consecutive bids from buyers or a buyer solicits bids from

sellers.

True False

15-Negotiation and bargaining are two types of auctions where prices are not fixed, but

rather are allowed to fluctuate as market supply and demand change.

True False

16-Reverse auctions are bidding or tendering systems in which the buyer places an item for

bid on a request for quote (RFQ) system; then potential suppliers bid on the job, with the

price reducing sequentially, and the lowest bid wins.

True False

17-E-auctions are becoming less important selling and buying channels for companies and

individuals.

True False

18-The major limitations of e-auctions are insufficient security, risk of fraud, and a limited

pool of participants.

True False

19-A limitation of e-bartering for businesses is that excess capacity items such as office

space, storage, factory space; idle facilities; and labor cannot be bartered.

True False

20-Online negotiation can be facilitated by computer technology for the negotiation process

and software agents for searches and comparisons.

True False

21-Due to the lack of hurdles, the adoption and growth of m-commerce has been

widespread.

True False

22-The Internet economy's low barriers to entry are both an opportunity and a threat to

businesses.

True False

23-Strong competition for commodity-type products, such as toys and CDs, was a major

contributor to the collapse of many dot-com companies, which suggests that a company

needs to use innovative strategies to survive and prosper in the Internet economy.

True False

24-Because the strength of each of Porter's five forces varies considerably from industry to

industry, it would be a mistake to draw general conclusions about the impact of the

Internet on long-term industry profitability.

True False

25-Because of intense competition on the Web, new companies cannot establish good

corporate images quickly as Amazon.com had done when it had few online competitors.

True False

26-Fundamentally, the success of the pure-play jewelry e-tailer Blue Nile was due to the

company's use of Internet technologies to:

offer lower prices than competitors eliminate intermediaries go public provide quality ratings

27-Traditional and electronic markets have three main functions, which include each of the

following EXCEPT:

matching

buyers and

sellers.

transforming raw

materials into

finished products.

providing an institutional

infrastructure, such as a legal and

regulatory framework that

enables the efficient functioning

of the market.

facilitating the exchange of

information, goods,

services, and payments

associated with market

transactions.

28-Digital products have different cost curves than those of regular products because:

in digitization, all

of the costs are

variable.

in digitization, most of

the costs are variable

and fixed costs are low.

in digitization, most of

the costs are fixed, but

variable costs are high.

in digitization, most of

the costs are fixed, and

variable costs are very

low.

29-The portion of an e-seller's business processes through which customers interact,

including the seller's portal, electronic catalogs, a shopping cart, a search engine, and a

payment gateway is referred to as the ________ of the business.

front end infrastructure intermediary back end

30-All the activities that are related to order aggregation and fulfillment, inventory

management, purchasing from suppliers, accounting and finance, insurance, payment

processing, packaging, and delivery are done in what is termed the ________ of the

business.

front end back end intermediary infrastructure

31-The major ________ e-marketplaces are storefronts and Internet malls.

B2C B2B2C B2B C2B

32-An electronic storefront includes several mechanisms that are necessary for conducting

the sale. The most common mechanisms include each of the following EXCEPT:

a search engine an electronic catalog; a supply chain a payment gateway

33-________ are online markets owned and operated by a single company and may be

either sell-side or buy-side.

Commercial portals Private e-marketplaces B2B marketplaces E-malls

34-A(n) ________ is a single point of access through a Web browser to help users find

relevant and accurate business information and reduce information overload.

intermediary browser search engine information portal

35-Finding relevant and accurate information is often time-consuming and requires access

to multiple systems causing organizations to lose a lot of productive employee time. One

solution to this problem is the use of:

intermediaries. portals. browsers. intranets.

36-A type of broker that helps consumers compare different stores is a:

shopping facilitator. metamediary. search agent. virtual mall.

37-Human or electronic intermediaries attempt to address each of the following limitations

of direct interaction EXCEPT:

lack of privacy for those wanting to remain

anonymous.

contract

risk. product

distribution.

search

costs.

38-The elimination of various types of agents that mediate between buyers and sellers, such

as travel and insurance agents, is referred to as:

remediation automation e-distribution disintermediation

39-A mode is purchasing where prices are negotiated or discounted is ________, which

refers to nonfixed prices, such as those in auctions or stock markets.

pre-shopping dynamic pricing commodity pricing negotiation

40-Although used occasionally in B2C commerce, customized catalogs are especially useful

in B2B e-commerce for each of the following reasons EXCEPT:

e-catalogs can show

only the items that the

employees in a specific

organization are

allowed to purchase.

e-catalogs can show

the buyer's ID

number for the item,

model, or SKU

number rather than

the seller's ID

numbers.

Intranets, in

particular, can

deliver customized

catalogs to different

business customers.

E-catalogs can be

customized to show the

same item to different

customers at different

prices, reflecting discounts

or purchase-contract

agreements.

41-To be successful and useful, large e-catalogs need a(n) ________.

search engine data mining technology enhanced viewing capability directory

42-A ________ has capabilities that can be used to perform routine tasks that require

intelligence such as providing customers with assistance based on their movements on a

Web site.

intelligent engine search engine software engine software agent

43-Popular search engines include all of the following EXCEPT:

Google Lycos AltaVista MSN

44-A(n) ________ is an order-processing technology that allows customers to accumulate

items they wish to buy while they continue to shop.

merchant server e-fulfillment agent electronic shopping cart intelligent agent

45-The most common and traditional form of auctions in which one seller entertains bids

from many buyers is referred to as:

e-auctions. forward auctions double auction. reverse auctions.

46-An auction in which there is one buyer and many potential sellers; or in which a buyer

places an item for bid on an RFQ system and the lowest bid wins is referred to as all of the

following EXCEPT:

tendering system. forward auctions. bidding system. reverse auctions.

47-What is a benefit of e-auctions to sellers?

Anonymity. The optimal price is

determined by the market.

Convenience since the bidding can

occur anywhere and any time.

High stickiness to

the Web site.

48-Organizations are embracing mobilized computing technologies for several reasons

EXCEPT:

The prices of notebook computers, Wireless security It improves the Wireless telecom

wireless handhelds, and smart

phones continue to fall and their

capabilities continue to increase.

problems have been

solved with

encryption.

productivity of

workers in the

field.

support for

mobility is

growing quickly.

49-EC competition is very intense because online transactions enable each of the following

EXCEPT:

Higher prices

because of a

greater number

of potential

buyers.

Setting up a Web site is

relatively easy and

inexpensive, and doing so

reduces the need for a sales

force and brick-and-mortar

stores.

For buyer, e-markets

reduce the cost of

searching for product

information; e.g., sellers,

models, prices, frequently

to zero.

Product or service

differentiation and

personalization.

50-Which of the following statements about differentiation and personalization is not

correct?

Consumers like

differentiation and

personalization and are

frequently willing to pay

more for them.

Products must be

differentiated for

perfect

competition.

Price cutting in

differentiated markets

does not impact

market share very

much:

Differentiation reduces

the substitutability

between products,

benefiting sellers who use

this strategy.

51-It can be said that competition between companies is being replaced by competition

between ________.

digital products and services networks industries differentiated products and services

52-The Internet has influenced industry structures in each of the following ways EXCEPT:

Industries are

more efficient

overall.

Increases differences

among competitors whose

offerings are kept

proprietary.

A flood of new entrants has

come into many industries

because of reduced barriers

to entry.

There has been a shift

in bargaining and

buyer power to end

users.

53-Impacts of e-marketplaces on B2C direct marketing include all of the following

EXCEPT:

The existence of e- EC enables Brand images The administrative work

marketplaces has

increased the

promotion of products

and services through

direct marketing.

customization of

products and services,

which is changing

marketing and sales

activities both in B2C

and in B2B.

for new

companies have

become more

difficult to

establish.

related to physical delivery,

especially across

international borders, can be

reduced significantly, cutting

the cycle time by more than

90 percent.

54-One of the major benefits of e-markets is the improvement in supply chains with the

creation of a(n) ________.

logistics chain customized chain hub-based chain support chain

55-________ provides customers with exactly what they want, when and where they want it.

Effective communication between the supply chain and the factory floor is needed to make

it happen

Build-to-order

manufacturing Demand-driven

manufacturing

Real-time

manufacturing

Virtual

manufacturing

Chapter 3 Retailing in Electronic Commerce

1-The amount and percentage of goods and services sold on the Internet is increasing

rapidly, despite the failure of many dot-com companies.

True False

2-A retailer is a sales intermediary, a seller that operates between manufacturers and

customers.

True False

3-Consumer electronics, including cell phone sales, are the largest category of online retail.

True False

4-Jewelry sales over the Internet is just beginning, but could be one of the top sellers on the

Internet in the near future.

True False

5-Offline transactions are somewhat influenced by research conducted online, with

approximately one-third of online shoppers reporting that they used the Internet to

research and influence their offline shopping choices.

True False

6-Evidence indicates that the basic principles that apply to retail success do not apply to e-

tail success.

True False

7-Offering quality merchandise at good prices, coupled with excellent service, and cross-

channel coordination and integration in which customers can almost seamlessly operate

between the online and physical environments of a business are also important elements in

successful e-tailing.

True False

8-Goods with the following characteristic guarantee provided by highly reliable or well-

known vendors are expected to facilitate higher sales volumes.

True False

9-A business model is an analysis of the organization's customers and, from that, a

discussion of how that organization will achieve profitability and sustainability by

delivering goods and services to those customers.

True False

10-Direct marketing describes marketing that takes place offline between manufacturers

and retailers.

True False

11-Virtual or pure-play e-tailers are firms that sell directly to consumers over the Internet

without maintaining a physical sales channel.

True False

12-Specialized businesses operate in a very narrow market and would find it difficult to

survive in the physical world because they would not have enough customers or could not

hold the variety of stock.

True False

13-All click-and-mortar retailers started life as a traditional storefront with a physical

retail presence only and over time adopted an online transactional capability as well (brick

only to brick-and-click).

True False

14-In today's digital economy, click-and-mortar retailers sell via stores, through voice

phone calls to human operators, over the Internet through interactive Web sites, and by

mobile devices.

True False

15-Although there are practical advantages to being an e-tailer, such as lower overhead

costs, it has many drawbacks and barriers so the winners in many market segments will be

companies that use the click-and-mortar approach.

True False

16-Online travel services have high margins because of their multiple revenue models

including commissions, revenue from advertising, lead-generation payments, consultancy

fees, subscription or membership fees, and revenue-sharing fees.

True False

17-The job market is characterized by high volatility and unbalanced supply and demand.

True False

18-In general, online real estate is replacing existing real estate agents in most markets.

True False

19-Many insurers are using a dual distribution strategy, by adding online distribution of

standard products to their traditional agency distribution system.

True False

20-From a bank's perspective, online banking offers a cheap alternative to branch banking

as well as a chance to enlist customers in remote areas.

True False

21-Egghead.com realized a substantial reduction in operating costs and inventory costs by

eliminating its brick-and-mortar stores and becoming a pure-play in e-commerce.

True False

22-In implementing a successful click-and-mortar strategy, a company must make sure

that whether a customer establishes contact through face-to-face encounters with store

personnel or through the Web page, the information and service received is consistent.

True False

23-Investors in e-tailers which report small losses on each unit sold should not be

concerned because the huge volume of business available online should more than offset

these small marginal losses.

True False

24-Cybermediation occurs at Web sites that use intelligent agents to facilitate

intermediation.

True False

25-Channel conflict occurs when adding an online distribution channel causes problems

with existing distribution channels.

True False

26-Amazon.com experienced all of the following EXCEPT:

Amazon.com have

trended upward, driven

largely by product

diversification and its

international presence.

Amazon.com

maintained its

position as the

number one e-

tailer in 2006.

Despite increasing a sales and net

profits, in percentage terms, Amazon

has seen a drop in profitability in

2006, attributed to huge spending on

further developing its technology

infrastructure and its investment in

the Amazon Prime discount shipping

program.

The

company's

financial

success has

been assured.

27-According to data from eMarketer, approximately ________ shop online and/or

research offline-sales online.

three in four Internet

users age 25 and over

two in five Internet

users age 18 and over. three in four Internet

users age 14 and over

two in five Internet

users age 30 and over

28-All of the following categories have already been selling well online EXCEPT:

pet supplies computer hardware and software travel new cars

29-Important trends in B2C EC include all of the following EXCEPT:

many offline transactions

are now heavily

influenced by research

conducted online.

online advertising

will increasingly

use rich media.

the Internet will influence

approximately 25 percent

of all retail sales by 2010.

the use of cell

phones to shop

online is increasing

rapidly.

30-With all else being equal in the online environment, goods with any of the following

product characteristics are expected to facilitate greater online sales EXCEPT:

Relatively expensive

items.

Frequently purchased

items.

Digitized

format.

High brand

recognition.

31-Marketing that takes place without the help of intermediaries is called:

direct marketing. pure-play e-tailing e-malls. disintermediation

32-Dell's strategy is best described as:

a click-and-mortar

strategy. direct marketing from a

manufacturer.

a brick-and-mortar

strategy.

a shared service mall

strategy.

33-Sears marketing strategy would best be described as:

a shared service mall

strategy.

direct marketing from a

manufacturer.

a brick-and-mortar

strategy. a click-and-mortar

strategy.

34-In direct marketing:

customers are contacted directly

without the help of

intermediaries.

shipments are made

directly from the seller to

the customer.

sales are

made in

malls only.

electronic

distributors must

be used.

35-An online seller of travel services that generates revenue by charging fees for its services

is an example of a(n):

market maker. transaction broker. viral marketer. content disseminator.

36-A marketer that uses e-mail to advertise to potential customers is called a:

viral marketer. transaction broker. content disseminator. market maker.

37-A company that creates and manages many-to-many markets is called a:

transaction broker. content disseminator. market maker. viral marketer.

38-In an e-market, Federal Express is an example of a(n):

viral marketer. content disseminator. service provider. intermediary.

39-All of the following are potential sources of revenue for online independent travel agents

EXCEPT:

direct marketing revenues. advertising fees. transaction fees. subscription fees.

40-Which of the following is true of virtual banks?

Stringent regulations

have eliminated fraud

risk in virtual banks.

Virtual banks have

proven very successful

and profitable.

Virtual banks combine

online and traditional

branch banking services.

Virtual banks

have no physical

location.

41-________ are customers who are willing to shop online because they dislike going to

grocery stores.

Time-starved customers New technologists Shopping avoiders Leading edgers

42-________ are extremely busy customers willing to shop online in order to free up time.

Time-starved customers Leading edgers New technologists Shopping avoiders

43-________ are those who are young and comfortable with technology.

Shopping avoiders Leading edgers New technologists Time-starved customers

44-All of the following are examples of interactive entertainment EXCEPT:

adult sites purchasing theatre tickets online. Internet gaming. fantasy sports games.

45-________ are gateways to storefronts and e-malls.

Shopping portals Shopping browsers Intelligent search engines Shopbots

46-Software tools that scout the Web for stores that sell similar items at low prices are

called:

Shopbots. Intelligent search engines. Shopping portals. Shopping browsers.

47-________ are sites that evaluate and verify the trustworthiness of e-tailers

Shopping portals Trust verification sites Business rating sites. Shopbot sites

48-The TRUSTe seal is an example of:

a business rating. a B2B exchange. an intermediary. a trustmark.

49-Charles wants to buy a John Lennon lithograph over the Internet, but he is unwilling to

pay for it until he inspects it to ascertain authenticity. The auction site through which he

purchases the painting agrees to hold his money until he tells them to release it to the seller.

This is an example of:

an escrow service. a warranty. a trustmark. a verification.

50-A software agent that surveys user's reading interests, then uses machine learning to

find new Web pages and news articles using neural-network-based collaborative filtering

technology is called:

an aggregator portal. a real-time agent. a learning agent. the sponsorship model.

51-A traditional brick-and-mortar store with a mature Web site uses a click-and-mortar

strategy to do all of the following EXCEPT:

speak with one

voice.

leverage each channel's advantages

for all customers.

empower

customers. reduce refunds and

exchanges.

52-The original click-and-mortar strategy used by Toys R Us failed, as did the original toy

venture of Amazon.com. Afterwards, Toys R Us sold toys online through Amazon.com.

This is an example of:

disintermediation. an alliance of a pure-player with a

traditional retailer. reintermediation.

channel

conflict.

53-DeFreshFish has been in business for ten years selling custom fishing lures to local

fishermen through its store in a shopping mall. The company's owners are considering

opening a Web site and selling their products internationally. One new risk they will face in

going from a brick-and-mortar strategy to a click-and-mortar strategy is:

the risk associated with

trying to comply with

conflicting rules and

regulations in many different

locales.

the risk that

costs will

erode their

profit margin.

the risk that their

products will not

meet the needs of

their target market.

the risks associated with

shifting their cost structure

from mostly fixed costs to

mostly variable costs.

54-The single factor that will determine which intermediaries continue to exist and which

are replaced is:

the length of the

relationship between the

intermediary and its

customers

the ability of the

intermediary to match

up buyers and sellers

the profitability

of the

intermediary

the addition of value-

added services by the

intermediary

55-An e-tailer uses cookies to identify returning customers and to provide suggested

products for purchase based on prior shopping behavior. This is an example of:

advertising supported model. channel cooperation. personalization. on-demand delivery.

Chapter 4 Consumer Behavior

1-Netflix implemented intelligent agents in its movie recommendation service called

Cinematch to help customers select movies they would like to watch and to better manage

its inventory.

True False

2-Finding and retaining customers is a major critical success factor for most offline and

online businesses.

True False

3-One of the keys to building effective customer relationships is an understanding of

intelligent agents.

True False

4-The purpose of a consumer behavior model is to help firms understand how a consumer

makes a purchasing decision to be able to influence that decision through advertising,

special promotions, or other marketing method.

True False

5-Individual buyers do most of the actual shopping in cyberspace in terms of dollar volume

of sales.

True False

6-Purchases by governments, private corporations, resellers, and other organizational

buyers often are used to create other products or services by adding value to them.

True False

7-Personal characteristics of customers, such as age and income, are independent variables,

which are uncontrollable variables for EC companies.

True False

8-Customers rarely browse online stores if they do not intend to buy.

True False

9-According to Internet statistics, 67 percent of consumers abandoned their shopping carts

because of the lack of satisfactory product information.

True False

10-The two most cited reasons for abandoning a shopping cart and not making the

purchase are shipping charges and security concerns.

True False

11-Social factors such as customer endorsement strategies and word-of-mouth are

independent variables that play an important role in EC shopping and purchases.

True False

12-Prices, advertising, promotions, and logistics are intervening variables that can be

controlled by vendors.

True False

13-Buying decisions are the dependent variables because these decisions depend on the

independent and intervening variables.

True False

14-An objective of conducting market research is to understand the relationships between

dependent and intervening variables so that vendors can make informed decisions on the

intervening variables.

True False

15-In the consumer decision-making process, the buyer is the person who ultimately makes

the buying decision.

True False

16-When Chaplin's auto lease is about to expire, he decides it is time to buy a new car. This

imbalance between a desired state and an actual state is called need identification.

True False

17-In the decision-making process, virtual catalogs and links to external sources support

the evaluation and selection phase of that process.

True False

18-Mass marketing is an approach to marketing that treats each customer in a unique way

such as fitting advertising to the customer's profile and needs.

True False

19-Selling as many products as possible to one customer over a long period of time and

across different product lines to maximize customer value is known as relationship

marketing.

True False

20-Segmentation refers to the matching of services, products, and advertising content to

individuals and their preferences.

True False

21-A user profile defines customer preferences, behaviors, and demographic traits of a

particular customer.

True False

22-A cookie is a data file that is placed on a user's hard drive by a remote Web server only

when the user's gives full consent to collect information about the user's activities at a site.

True False

23-Attracting and retaining loyal customers is the most important issue for e-tailers

because customer loyalty can lower marketing and advertising costs, transaction costs,

customer turnover expenses, and failure costs such as warranty claims.

True False

24-Building consumer trust in EC can be achieved through integrity, which is a user's

confidence in the ability of the online store to fulfill its promises such as a money-back

guarantee.

True False

25-Clickstream data provide a trail of a user's activities in a Web site including a record of

the user's browsing patterns of every page of every Web site the user visits, how long the

user remained on a page, and even the e-mail addresses of mail that the user sends and

receives.

True False

26-According to the EC consumer behavior model, personal characteristics and

environmental characteristics are classified as:

intervening variables dependent variables decision variables independent variables

27-The major environmental variables influencing EC purchasing are:

age, gender,

ethnicity, education,

and lifestyle.

price, social,

cultural, ethnicity,

and lifestyle.

social, cultural,

community, regulatory,

political, and legal.

price, brand, frequency

of purchase, and

tangibility.

28-Pricing, technical support, and logistics support are several of the ________ that can be

controlled by EC vendors and sellers

independent variables decision variables intervening variables dependent variables

29-Because online buyer's decisions depend on numerous independent and intervening

variables, decisions made by customers are classified as:

intervening variables independent variables dependent variables decision variables

30-Banner advertising on Web sites helps trigger a realization that there is a gap between

reality and a desired state, which occurs in the ________ stage of the EC purchase decision-

making process.

information

search

evaluation, negotiation, and

selection need

identification

purchase, payment, and

deli

31-Marketing and advertising approaches has evolved from mass marketing to market

segmentation to one-to-one marketing. This evolution occurred because:

the marketing

focus shifted from

concerns about

privacy had

companies sought to

decrease the number the Internet enabled companies to

better communicate with

customers to

products.

diminished. of marketing

campaigns. customers and understand their

needs and buying habits.

32-The core of the "new marketing model" consists of:

customer

relationships.

online marketing

channels.

four P's–product, place, price, and

promotion.

customer

profiles.

33-Personalization and user profiling strategies include each of the following EXCEPT:

Segmenting the

market based on

demographics.

Building from

previous

purchases or

purchase patterns.

Using questionnaires to

collect information

directly from the user.

Placing cookies on a user's

hard drive to collect

information with or without

the user's knowledge.

34-The two key factors limiting the use of personalization to more precisely target

marketing efforts to individual customers are:

lack of customer loyalty

and service customization

costs.

communication costs

and filtering costs. privacy and

trust issues.

matching profiles with

product offerings and

delivering those offerings.

35-By increasing customer loyalty, EC companies can achieve each of the following benefits

EXCEPT:

lower warranty

claims costs. lower resistance to

competitors.

lower transaction

costs.

lower marketing and

advertising costs.

36-What has been the impact of the introduction of EC on customer loyalty in general?

Loyalty has decreased

because of customers'

ability to shop, compare,

and shift vendors.

There has been little

change in loyalty

because the impacts

have cancelled each

other out.

It is not known

whether loyalty has

increased or

decreased.

Loyalty has increased

because of targeted

relationship

marketing.

37-According to research, customer satisfaction with an Internet store:

is higher for new

customers than

former customers.

depend on two types of

factors: information

quality and customer

service quality.

drops dramatically when certain

Web site features fail to perform

properly, such as the content's

reliability, loading speed, or

usefulness.

cannot be

predicted.

38-Issues related to trust in EC include all of the following EXCEPT:

Trust is particularly

important in global

EC transactions due

to the difficulty of

taking legal action

in cases of a dispute

or fraud.

If people do not trust

the security of the EC

infrastructure, they

will not feel

comfortable about

using credit cards to

make EC purchases.

As a result of trust-

transference programs

through portal affiliation,

seal of approval programs,

online shopping

communities, and customer

endorsements, customers are

fully confident in online

purchasing transactions.

When parties trust

each other, they have

confidence that

transaction partners

will keep their

promises. However,

both parties in the

transaction assume

some risk.

39-Procter & Gamble (P&G) used the Internet in the new product development of

Whitestrips, a teeth-brightening product. Based on this experience, P&G:

could not

determine the

target market

segments for the

Whitestrips.

reduced the time-to-

market from concept to

market launch by

approximately two

years.

decided to add

Internet research

to its traditional

marketing test

model.

learned that the cost of online

surveys were about the same as

similarly sized telephone

surveys, but online surveys

expedited research

considerably,

40-All of the following are correct about market research methods EXCEPT:

It is important first to

understand how

groups of consumers

are classified or

segmented.

Markets can be segmented to

increase the percentage of

responses and to formulate

effective marketing strategies

that appeal to specific

consumer groups.

Market segmentation is

done with the aid of

tools such as data

modeling and data

warehousing.

Direct mail

marketing

methods are

usually cost-

effective.

41-Social class, lifestyle, personality, and activities are descriptors used in ________ market

segmentation.

geographic demographic cognitive, affective, behavioral psychographic

42-To avoid getting false information from participants of online surveys, marketers learn

about customers by observing their behavior using each of the following EXCEPT:

Transaction logs that

record user activities at

a company's Web site.

Spyware that gathers user

information through an Internet

connection without the user's

knowledge.

Data mining to

analyze

clickstream data.

Cookies that allow

a Web site to store

data on the user's

PC.

43-According to Inmon, B2C clickstream data can reveal information each of the following

EXCEPT:

Which ads and

promotions were

effective and which

were not.

What goods the

customer wanted to

but could not find.

Whether there are too

many products for the

customer to wade

through.

What goods the

customer examined

but did not purchase.

44-Web analytics and mining tools and services:

simply report

which pages

were clicked and

how long a

visitor stayed

there.

provide most

companies with

knowledge about how

to use clickstream data

effectively.

offer advanced functions that help

marketers decide which products to

promote, and merchandisers

achieve a better understanding of

the nature of demand.

are used to

redesign Web

sites quickly

and on the fly.

45-Once a company knows a consumer's preferences, the company can predict, without

asking the consumer directly, what other products or services that consumer might enjoy

through ________.

active web bugs collaborative filtering spyware personalization

46-Limitations of online research methods are all of the following EXCEPT:

E-mail surveys have

the lowest response

rate.

The ethics and

legality of Web

tracking.

Loss of respondents

because of equipment

problems.

Focus group responses

lose eye contact and body

language.

47-Online methods of bringing new customers to a B2B site when a B2B vendor wants to

grow by adding new customers or products include all of the following EXCEPT:

by contacting all of its targeted

customers individually to attract

them to an electronic exchange.

through an

affiliation

service.

through direct

mail campaigns

through Web advertising

such as using an ad server

network provider.

48-The Internet introduced the concept of ________, which has enabled marketers and

advertisers to interact or communicate directly with customers and consumers can interact

with marketers/advertisers.

one-to-one marketing direct marketing advertising channel interactive marketing

49-The term ________ refers to the number of times users call up a page that has a banner

on it during a specific period.

click through ad view unique visit conversion rate

50-The major disadvantage of banners is ________.

their

cost

the limited amount of time

the banner is present to the

visitor

the limited amount of

information can be placed on

the banner

viewers have become

immune to banners and

seldom notice them

51-A(n) ________ is a type of pop-up ad that appears after a user clicks a link and remains

while content is loading to capture the user's attention for a short time, either as a

promotion or a lead-in to the site's homepage or to advertise a product or a service.

keyword banner interstitial banner exchange CPM

52-The risks of e-mail advertising management include all of the following EXCEPT:

spam fraud e-mail hoaxes measuring e-mail advertising effectiveness

53-A(n) ________ is an HTML coding statement that describes the content of a Web page

and is used by search engines to index the site's content so that it can be found.

meta-tag domainer advertorial associated ad display

54-Advertising in chat rooms, blogs, or social networks can achieve each of the following

EXCEPT:

They improve a

company's search

engine ranking.

Advertising can

become more thematic

than on static Web

sites.

Advertising can be

easily targeted to

customer interests.

They can be used as one-to-

one connections between a

company and its customers.

55-________ is an advertising strategy that uses word-of-mouth marketing in which

customers promote a product or service by telling others about it.

Affiliate marketing Viral marketing Ad customizing Ads as a commodity

Chapter 5 B2B E-Commerce

1-General Motors' B2B initiatives successfully enable the auto giant to reduce inventory

cost, minimize operational problems, and shorten procurement processes.

True False

2-Business-to-business e-commerce is also known B2B and refers to transactions between

businesses conducted electronically over the Internet, extranets, intranets, or private

networks.

True False

3-The major characteristic of B2B commerce is that companies attempt to electronically

automate trading, communication, and collaboration processes in order to improve them,

which cannot be done without the Internet.

True False

4-Supply chain improvements and collaborative commerce are a basic type of B2B which has

a hub manager for supply chain improvements, communicating, collaborating, and

information sharing.

True False

5-B2B EC transactions that involve one seller selling to many buyers is called an exchange.

True False

6-Since business-to-consumer (B2C) transactions are segments in the supply chain, they

should be examined in light of other supply chain activities such as manufacturing,

procurement, shipments, and logistics.

True False

7-Supply chain activities usually involve communication and collaboration.

True False

8-With B2B2C, a business sells to a business, but also delivers small quantities to customers

of the buying business.

True False

9-Intermediaries in B2B commerce, which may be virtual or click-and-mortar

intermediaries, are third parties that broker transactions between buyers and sellers.

True False

10-The purchase of goods and services as they are needed, usually the purchase of

commodities at prevailing market prices, is referred to as demand buying.

True False

11-Examples of direct materials for a food processing company are computers and

communication devices.

True False

12-MRO stands for "maintenance, repair, and operation" which refer to indirect or

nonproduction materials that support the production process.

True False

13-Markets that focus on providing materials or products that are used in various types of

industries are known as horizontal marketplaces.

True False

14-Purchases of goods or services that are based on short-term contracts and frequently

purchased in large quantities are known as strategic sourcing.

True False

15-Joining a public e-marketplace provides a business with greater buying and selling

capabilities, but the tradeoff is lower supply chain power.

True False

16-B2B can increase the efficiency and effectiveness of supply chains or dramatically

change the supply chain by eliminating one or more intermediaries.

True False

17-Companies that choose an intermediary to do their buying and selling will have high

supply chain power and buying/selling capabilities.

True False

18-Transaction fees for B2B financial services are higher than for most other methods.

True False

19-Companies will often separate B2C orders from B2B orders because those types of

orders have different order-fulfillment processes and different pricing models.

True False

20-By using the Internet and automatic-response software agents for customer service,

companies have been able to reduce their customer service costs by up to fifty percent.

True False

21-Forward auctions expand online sales and offer businesses a new venue for quickly and

easily disposing of excess, obsolete, and returned products.

True False

22-Strategic sourcing requires a holistic process that automates the entire sourcing process,

including order planning, RFQ creation, bid evaluation, negotiation, settlement, and order

execution.

True False

23-A large organizations can develop an effective procurement system by creating an

internal marketplace that combines the catalogs of all its approved suppliers into a single

internal electronic catalog, which is searched for product availability and delivery times.

True False

24-With a bartering exchange, a company submits its surplus to the exchange and receives

points of credit, which the company can then use to buy items that it needs.

True False

25-In the real world, negotiations are done primarily electronically and with negotiation

support tools.

True False

26-Key business drivers for B2B are all of the following EXCEPT:

the availability of a numerous private and the need for the willingness of

secure broadband

Internet platform.

public B2B e-

marketplaces.

collaborations between

suppliers and buyers. companies to incur higher

costs to improve

collaboration.

27-B2B transactions that involve communication, design, planning, information sharing,

and activites beyond financial transactions among business partners is referred to as

________.

public marketplaces trading communities exchanges collaborative commerce

28-With ________, a business sells to a business but delivers small quantities to customers

of the buying business.

B2B2C B2B B2C B2C2B

29-A(n) ________ is an online third party that brokers B2B transactions between a buyer

and seller.

vertical marketplace horizontal marketplace intermediary strategic source

30-The purchase of goods and services as they are needed, usually at prevailing market

prices is referred to as:

direct materials spot buying consolidation strategic sourcing

31-Purchases of goods and services based on long-term contracts is referred to as:

direct materials spot buying consolidation strategic sourcing

32-________ can be supported more effectively and efficiently through direct buyer—seller

offline or online negotiations, which can be done in private exchanges or private trading

rooms in public exchanges.

Strategic purchases B2C commerce MRO Spot buying

33-What are the two types of materials and supplies that are traded in B2B?

Direct and

indirect.

Horizontal and

vertical.

Digital and

physical.

Commodities and

nonproduction.

34-Nonproduction materials such as equipment and tools that support production are

called:

operational materials direct materials virtual materials indirect materials

35-Indirect materials are typically used in ________ activities.

intermediary maintenance, repair, and operation (MRO) sales and marketing supply chain

36-The ________ consists of a number of interrelated subprocesses that extend from the

acquisition of materials from suppliers to packaging it and moving it to distributors and

retailers.

vertical market horizontal market production chain supply chain

37-Companies that use an intermediary to do their buying and selling tend to be:

low on supply chain

power and low on

buying/selling

capabilities

high on supply chain

power and high on

buying/selling

capabilities

low on supply chain

power and high on

buying/selling

capabilities

high on supply chain

power and low on

buying/selling

capabilities

38-The major B2B services include each of the following EXCEPT:

Financial Travel and hospitality Stock trading Retail

39-Which of the following is not one of the major benefits of B2B?

Expedites

processing and

reduces cycle time.

Increases production

flexibility, permitting

just-in-time delivery.

Increases

opportunities for

collaboration.

Enables customized online

catalogs with the same

prices for different

customers.

40-________ occurs when B2B eliminates a distributor or a retailer.

Disintermediation Collaboration Just-in-time delivery Purging

41-In a sell-side e-marketplace, a business sells products and services to business customers,

frequently over ________.

an exchange an intranet a web service an extranet.

42-Companies will usually separate B2C orders from B2B orders because B2C and B2B

orders have different ________.

marketing

processes

accounting

processes order-fulfillment processes and

different pricing models

buying and delivery

processes

43-By using the Internet and automatic-response software agents, GE reduced the cost of

customer service calls from $5.00 per call when done by phone to ________ per

electronically answered call.

$1.00 $0.50 $2.50 $0.20

44-Some of the benefits of a(n) ________ are that distributors can check inventory, make

transactions, and look up the status of their orders significantly reducing the number of

phone calls, e-mails, and incorrect product shipments.

electronic data

interchange

custom

catalog extranet-based order-entry

tool

intranet-based order-entry

tool

45-In selling directly, manufacturers may encounter a similar problem to that of B2C,

namely ________ with the regular distributors, including corporate dealers.

multichannel distribution direct sales conflict channel conflict indirect competition

46-One of the major problems facing direct sellers is ________.

how to manage the supply

chain how to find

buyers

how to find

suppliers

how to advertise in traditional

channels

47-The Cisco Connection Online (CCO) Web site receives over 2 million hits per month for

technical assistance, ordering, order checking, or software downloads. This online service

had been so well received that nearly ________ percent of all customer service inquiries

and ________ percent of software updates are delivered online.

15 / 25 45 / 55 25 / 35 85 / 95

48-Companies use ________ to sell their unneeded assets for quick disposal or to easily

dispose of excess, obsolete, and returned products.

private auctions forward auctions reverse auctions liquidation

49-Benefits of using a third-party hosting company for conducting B2B auctions instead of

developing an auction site in-house include all of the following EXCEPT:

No redeployment of

corporate resources.

No additional resources are needed such as

hardware, bandwidth, engineering resources,

or IT personnel.

No

hiring

costs.

Time-to-market

of several

weeks.

50-A company-based acquisition site that uses e-procurement methods such as reverse

auctions, negotiations, or group purchasing, to overcome the manual searching of e-stores

and e-malls is referred to as a(n):

aggregated catalog buy-side e-marketplace intermediary desktop procurement method

51-Benefits of e-procurement over traditional procurement methods include all of the

following EXCEPT:

Streamlining

invoice

reconciliation and

dispute resolution.

Lowering purchase prices

through product standardization,

reverse auctions, volume

discounts, and consolidation of

purchases.

Increasing the

productivity of

purchasing

agents.

Increasing the skill

requirements and

training needs of

purchasing agents.

52-Major implementation challenges that companies must consider when planning e-

procurement initiatives include all of the following EXCEPT:

Increasing the number of

regular suppliers and

Providing interfaces between

e-procurement and integrated

Reviewing and

changing the

Coordinating the

buyer's information

integrating with their

information systems and

possibly with their

business processes.

enterprisewide information

systems, such as ERP or

supply chain management.

procurement

process itself.

system with that of

the sellers.

53-Because conducting reverse auctions in B2B can be a fairly complex process, a(n)

________ may be essential.

open RFQ online directory third-party intermediary software agent

54-The aggregation of suppliers' catalogs on the buyer's server to make it easier to

centralize and control all procurement is called a(n):

bartering

exchange

sell-side e-

marketplace

buy-side e-

marketplace internal procurement

marketplace

55-In general, the benefits of contract-management software include all of the following

EXCEPT:

Reduces

contract-related

risks.

Reduces contract

negotiation time and

efforts.

Provides more

efficient approval

processes.

Enables standardization of

contracts throughout the

enterprise.

Chapter 6 Public B2B Exchanges

1-Public exchanges are many-to-many marketplaces that are open to all interested sellers

and buyers and usually run by third parties.

True False

2-One major characteristic of all exchanges is that they are electronic trading-community

meeting places for a single seller and many buyers, and possibly for other business partners.

True False

3-In electronic exchanges and traditional open-air marketplace, buyers and sellers can

interact and negotiate prices and quantities.

True False

4-Dynamic pricing refers to the rapid movement of prices over time and possibly across

customers as a result of supply and demand matching, as in auctions.

True False

5-MSN or Yahoo! are types of exchanges that generate revenue through membership fees.

True False

6-Thomas Register is basically a directory for buyers using search engines because it does

not offer any opportunity for trade or transactions on its site.

True False

7-Alibaba China is China's largest online marketplace for both domestic and international

trade among businesspeople and a trusted community of members who regularly meet,

chat, search for products, and do business online.

True False

8-To increase their financial viability, third-party exchanges try to partner with large

sellers or buyers, financial institutions that provide payment schemes, or logistics

companies to cut costs or increase market liquidity.

True False

9-Market liquidity refers to the degree to which a product or service can be bought or sold

in a marketplace without significantly affecting its price.

True False

10-Agentrics is the world's largest B2C exchange for retailers, such as Sears and Best Buy,

whose objective is to simplify and automate supply chain processes.

True False

11-Two major models of third-party exchanges are supplier aggregation and buyer

aggregation.

True False

12-For all types of e-marketplaces, the most important key to the success of any third-party

exchange is the critical mass of buyers and sellers.

True False

13-A consortium trading exchange (CTE) or consortia is most appropriate for fragmented

markets with large numbers of both buyers and sellers.

True False

14-The Global Transportation Network (GTN) provides participating carriers and

customers with significant cost savings because it frees individual carriers from the huge

capital costs of advanced technologies.

True False

15-Purchasing-oriented (procurement) consortia have not yet been a successful or popular

B2B consortium model.

True False

16-Because of their large number of buyers and sellers, B2B exchanges and other e-

marketplaces do not face anti-trust or other competition laws.

True False

17-A B2B consortium has the potential to reduce prices of individual products, thus

enabling and encouraging consortium members to buy more.

True False

18-Dynamic trading is trading that occurs in situations in which prices are determined by

supply and demand, therefore changing continuously.

True False

19-The strategy of providing comprehensive, quality e-service for business partners is

called customer relationship management (CRM).

True False

20-Because of the complexity in building large e-marketplaces and exchanges, it is usually

performed by a major B2B software company, such as Ariba or IBM, and a management

consulting company, such as PricewaterhouseCoopers, usually participates.

True False

21-Company-centered networks may be a waste of money because they are used by only

one buyer (buyer's industrial network) or by only one seller (seller's industrial network),

and they may not be open to all.

True False

22-Most exchanges have the same log-on procedures, same sets of rules for fulfilling

orders,and similar business models for charging for their services.

True False

23-Public exchanges have difficulty attracting buyers and sellers because of the transaction

fees, reluctance to share information, and the availability of too many exchanges.

True False

24-In B2B exchanges, software agents can facilitate management of multiple trading

partners and their transactions across multiple virtual industry exchanges.

True False

25-Good management and effective operations and rules are critical to the success of B2B

exchanges because good governance provides the rules for the exchange, minimizes

conflicts, supports decision making, and tries to induce the necessary liquidity.

True False

26-Before the Internet, the trading process for raw and partially processed chemicals,

plastics, and fuel oil was each of the following EXCEPT:

disintermediated fragmented slow expensive

27-ChemConnect is an example of a successful e-exchange with:

many buyers and one

seller.

few buyers and few

sellers.

many buyers and few

sellers. many buyers and many

sellers.

28-A third party that operates an exchange and in many cases, also owns the exchange is

known as a(n):

intermediary negotiator agent market maker

29-In the context of EC, ________ are electronic trading-community meeting places for

many sellers and many buyers, and possibly for other business partners.

B2C portals social networks exchanges

30-From 2001 to 2006, a majority of e-exchanges:

increased in size due to

mergers of small e-

exchanges.

devised new methods to

increase revenues and

profits.

folded due to a lack of

customers, cash, or

both.

expanded by

adding business

partners.

31-An exchange whose members are in one industry or industry segment and that trades

only in materials/services unique for that industry is referred to as a(n):

lateral exchange horizontal exchange vertical exchange commodity exchange

32-An exchange that handles materials used by companies in different industries is

referred to as a(n):.

lateral exchange vertical exchange horizontal exchange commodity exchange

33-Light bulbs and office supplies might be purchased in a(n) ________ by both an

automaker and a steelmaker.

commodity exchange vertical exchange lateral exchange horizontal exchange

34-In ________, the prices are usually dynamic and are based on changes in supply and

demand.

vertical sourcing spot sourcing horizontal sourcing strategic sourcing

35-In ________, the prices are usually negotiated or fixed.

spot sourcing horizontal sourcing strategic sourcing vertical sourcing

36-Spot sourcing of direct materials takes place:

in vertical

exchanges.

in horizontal

exchanges.

only in virtual

exchanges.

on exchanges which operate without

a market maker.

37-In spot-sourcing, prices are:

dynamic and set based on

supply and demand.

based solely on the cost

structure of the seller.

fixed and set by

contract

set by the

market maker

38-In an exchange where plastic components are bought and sold, the market maker

collects money from the buyer, and releases it to the seller once successful delivery is

completed. This is an example of:

maintaining exchange

policies.

maintaining exchange

infrastructure.

matching buyers and

sellers. transaction

facilitation.

39-In an exchange where plastic components are bought and sold, the market maker

purchases a new server that will be used to conduct auctions. This is an example of:

transaction

facilitation.

matching buyers and

sellers. maintaining exchange

infrastructure.

maintaining exchange

policies.

40-A market maker evaluates an exchange between a buyer in the United States and a

seller in Spain to ensure that import laws for the U.S. are followed. This is an example of

the market maker:

matching buyers

and sellers.

transaction

facilitation. maintaining exchange policies

and infrastructure.

interfering with

exchange policies.

41-In the consortia model:

a dominant player in the

industry establishes the

exchange and invites

others to join.

several industry players

come together to

establish the exchange

for the benefit of all.

a neutral third party

establishes and

manages the

exchange.

the public is invited

to join the exchange

as a way to offset

expenses

42-The exchange model in which a third party sets up the exchange and promises to run it

efficiently and without bias is called the:

industry giant model. co-op model. neutral entrepreneur model. consortia model.

43-An exchange charges an annual fee of $25,000 for all parties who want to trade in the

exchange. The revenue model in use by this exchange is the:

transaction fee model. membership fee model. advertising fee model. fee for service model.

44-A market maker charges a percentage on every buy and sell made in the exchange. The

revenue model in place in this exchange is the:

advertising fee model. fee for service model. transaction fee model. membership fee model.

45-A market maker bills a buyer for reviewing several seller contracts and making a

recommendation on what to buy and from whom. The revenue model being used in this

example is the:

membership fee model. advertising fee model. fee for service model. transaction fee model.

46-All of the following are potential sources of revenue for an exchange EXCEPT:

advertising fees. membership fees. fees for services rendered. shipping and handling fees.

47-When membership fees are the basis for revenue generation in an e-exchange, it has

been shown that:

low membership fees often

result in losses to the

exchange,; however, high

fees discourage

participation.

when fees are very low,

the exchange sees

greater utilization which

leads to greater revenue

and profit.

the higher the

fees charged,

the greater the

total profit.

there should be a fee

for every service

provided; there should

be no free services for

members.

48-The concept of liquidity for a B2B exchange is the:

ease with which orders can be

placed, processed, and shipped

using the exchange.

number of buyers

and sellers in a

market.

ease with which

information flows between

exchange members.

amount of

available cash

on hand.

49-The exchange model in which RFQs are aggregated then linked to a pool of suppliers

who are notified automatically of the RFQ is the ________ model.

reverse auction buyer aggregation supplier aggregation seller aggregation

50-Markets in which several large sellers sell to a large number of buyers are called:

differentiated

markets. seller-concentrated

markets.

fragmented

markets.

buyer-concentrated

markets.

51-Attracting large business sellers to public exchanges is often difficult for all of the

following reasons EXCEPT:

competitors who are also

exchange member may

gain access to confidential

information.

advertising costs in

public exchanges

are very expensive.

it is sometimes

difficult to recruit

large suppliers.

they are required to pay

transaction fees even when

they engage in transactions

with existing customers.

52-In dealing with exchange members, the management of the exchange should:

leave the management of

day-to-day operations of

the exchange to the

members.

strive to maximize

exchange revenues

through charging the

highest possible fees.

take special care of

the companies that

share ownership in

the exchange.

make certain that the

exchange is neutral in

its dealings with all

members.

53-The most attractive industries for a vertical exchange are characterized by:

a few very large

players that totally

dominate the industry.

stagnant

technology. many fragmented

buyers and sellers.

a market in which a small number of

very large orders account for more

than half the total market volume per

year.

54-Brand building is important in B2B exchanges because:

information flow is poor in

most exchanges, making

trust of suppliers very

important.

it is easy for

exchange members

to change to another

exchange.

exchange members

typically buy only

the best brands of

product.

exchange members

typically buy products

at the lowest cost

unless branded.

55-Using tunneling technology to improve security of communication over the Internet is

called:

local area network

(LAN)

Internet protocol

(IP)

electronic data interchange

(EDI). virtual private network

(VPN).

Chapter 7 E-Supply Chains

1-Although a company's success is clearly dependent on finding and retaining customers,

its success may be far more dependent on what is behind the Web page than on what is on

the Web page.

True False

2-It has been well known for generations that the success of many private, public, and

military organizations depends on their ability to manage the flows of materials,

information, and money, which is referred to as the product life cycle.

True False

3-Supply chain problems can cause delays, products not being where they are required at

the right time, customer dissatisfaction, lost sales, and high expenses that result from fixing

the problems once they occur.

True False

4-The term supply chain comes from the concept of how systems and processes within an

organization are linked together.

True False

5-A supply chain involves activities that take place during the entire product life cycle,

"from dirt to dust."

True False

6-A supply chain can be broken into three major parts: upstream, internal, and

downstream.

True False

7-The downstream part of the supply chain includes the activities of a company with its

suppliers, which can be manufacturers, assemblers, or both, or service providers, and their

connections with their suppliers.

True False

8-In the internal part of the supply chain, the major concerns are production management,

manufacturing, and inventory control.

True False

9-In the upstream supply chain, attention is directed at distribution, warehousing,

transportation, and after-sale service.

True False

10-SCM aims to minimize inventory levels, optimize production and increase throughput,

decrease manufacturing time, optimize logistics and distribution, streamline order

fulfillment, and overall reduce the costs associated with these activities.

True False

11-A major requirement for any medium- to large-scale company that is moving to EC

implies an integration between all the activities conducted on the Web and the

ERP/MRP/SCM solutions–in other words, creating an e-supply chain and managing it.

True False

12-E-supply chain management is the collaborative use of technology to enhance B2C

processes and improve speed, agility, real-time control, and customer satisfaction.

True False

13-The success of an e-supply chain depends on managing information with strict policies,

discipline, and daily monitoring.

True False

14-The success of an e-supply chain depends on an e-supply chain that is loosely integrated

both within a company and across an extended enterprise made up of suppliers, trading

partners, logistics providers, and the distribution channel.

True False

15-Companies can use replenishment information to reduce inventories and eliminate

stocking points.

True False

16-By combining bar coding and wireless technologies, automobile dealers are able to scan

in goods as they arrive electronically and place them in inventory up to 10 percent faster

than previously.

True False

17-At hospitals and supermarkets, inventory reorder points have been automated so that

when inventory gets down to a certain point the system will automatically notify a human

of the exact amount to reorder.

True False

18-Functional products are staple products, such as groceries or gasoline, that have stable

and predictable demand. For these products, an effective supply chain emphasizes speed,

responsiveness, and flexibility rather than low costs.

True False

19-Pure EC companies may be likely to have more supply chain problems because they

may not have a logistics infrastructure and may be forced to use external logistics services.

True False

20-A major limitation of RFID currently is the restriction of the environments in which

RFID tags are easily read.

True False

21-RuBee relies on low-frequency magnetic waves to track products and transfer

information. It is becoming a replacement for RFID because RuBee overcomes many of

RFID's limitations.

True False

22-With vendor-managed inventory, retailers make their suppliers responsible for

determining when to order and how much to order. The retailer provides the supplier with

real-time information such as point-of-sale data, inventory levels, and a threshold below

which orders are replenished.

True False

23-The goal of collaborative planning, forecasting, and replenishment (CPFR) is to

streamline product flow from manufacturing plants to retailers.

True False

24-Studies have shown that electronic-based collaboration and product lifecycle

management (PLM) can reduce product costs and travel expenses by 50 percent, as well as

significantly reduce costs associated with product-change management.

True False

25-As with any IT project, management needs to be able to justify the development and use

of a corporate portal by comparing its cost with its benefits. The challenge is that despite

the tangible benefits from investment in portal technology, such as include increased

revenues and customer loyalty, most of the benefits of portals are intangible.

True False

26-A company's internal operations and its relationships with suppliers and other business

partners are frequently:

replaced by

customer-facing

applications.

much more complex than

customer-facing

applications such as

taking an order online.

much less complex than

customer-facing

applications such as

taking an order online.

as complex as

customer-facing

applications such as

taking an order online.

27-For a manufacturer, the supply chain ends:

when the customer

decides he/she is

satisfied with a product

when the supplier delivers raw

materials and component parts to

the manufacturer.

when the

customer buys

the product.

when the product

is used up and

disposed of.

28-The use of Web technologies to manage warehousing and transportation processes is

called:

collaborative planning e-replenishment. downstream processing e-logistics

29-The e-SCM process that includes integrated production and distribution processes is:

collaborative planning e-logistics e-procurement supply chain replenishment.

30-The last fifteen orders from a manufacturer to its suppliers range from $100,000 to

$8,740,000. This is an example of:

supply inadequacy. demand manipulation. order instability. the bullwhip effect.

31-B2B systems which are used for communication, design, planning, information sharing,

and information discovery are called:

collaborative

commerce.

electronic data

systems.

information aggregation

systems.

electronic bartering

systems.

32-All of the following would be considered c-commerce EXCEPT:

connecting

suppliers.

communication and

collaboration with

suppliers.

aggregating catalogs

on a central server.

sharing on-demand training

courses across many locations

simultaneously.

33-RFID can provide immediate, short-term, and long-term value to organizations. An

example of immediate value from RFID is when:

an RFID tag tells

customer service

which factory made

the faulty product

returned by a

customer.

an RFID tag sends a

report to the supplier

every time one of its

component parts is used

in the manufacturing

process.

an RFID tag reveals the

supplier of a faulty

component without the

need for quality control

to research component

order records.

an RFID tag tells

inventory control

every time a roll of

wire moves out of the

warehouse and onto

the factory floor.

34-A major block in the widespread implementation of collaborative commerce is:

the theory of collaborative

commerce hasn't been proven

effective in real-world

applications.

the technology

needed isn't

available.

the lack of

universally

accepted

standards.

collaborative

commerce is

extremely expensive.

35-Wal-Mart and Levi Strauss collaborate on demand forecasting in order to optimize the

flow of materials along the supply chain. This is an example of:

reducing design cycle time. CPFR. APS. reducing product development time.

36-The purpose of CPFR is to:

optimize the flow

of materials along

the supply chain.

minimize

quality

problems in

supplies.

eliminate

intermediaries.

ensure that members of the supply

chain will have the right amount of

raw materials and finished goods

when they need them.

37-________ is a business strategy that enables manufacturers to control and share

product-related data as part of product design and development efforts.

Product lifecycle

management

Advanced planning and

scheduling

Internal

commerce

Collaborative

planning

38-All of the following are true about product lifecycle management (PLM) EXCEPT:

The demand for PLM in

limited because it does

not apply to products

that have short life cycles

or are complex.

PLM tools are

offered by

SAP, Matrix

One, EDS, and

IBM.

PLM is a big step for an

organization because it

requires integrating

different processes and

systems.

PLM can have

significant beneficial

impacts in cycle time,

design reuse, and

engineering.

39-Today, many business experts agree with each of the following EXCEPT:

The supply chain needs

to be operationally

integrated so that

inventory activities link

seamlessly to

manufacturing

activities.

Supply chain

integration has

reduced the

intensity of

competition in

most industries.

The insightful way to

view contemporary

business is that

competition exists

between or among supply

chains rather then

individual companies.

Supply chains from the

suppliers' suppliers to

the customers' customers

should be jointly

planned and designed

for overall optimality by

all of the supply chain

partners.

40-When planning, designing and implementing integrated supply chain operations,

management requires a holistic focus that takes account all of the following primary

factors EXCEPT:

location and

revenues.

culture, including performance

measurement, monitoring, and

incentives.

strategy, structure,

and people.

IT and business

processes.

41-Software that helps integrate different types of information systems among

collaborating companies is called:

browser technology. middleware. collaborative software. extranet technology.

42-Collaborative workflow applications:

have predefined

workflows, but can be

redefined quickly

when needed.

are business process

automation tools that

place system controls in

the hands of users.

address mission-

critical, transaction-

oriented, high volume

processes.

address project-

oriented and

collaborative

processes.

43-Software applications that address project management concerns are examples of:

administrative workflow

applications.

portal

applications. collaborations workflow

applications.

production workflow

applications.

44-Addressing mission-critical, high-volume transaction processes is the goal of:

collaborative workflow

applications. production workflow

applications.

administrative workflow

applications.

portal

applications.

45-The steps required to approve an expense report is an example of:

administrative workflow

applications.

production workflow

applications

collaborative workflow

applications.

portal

applications.

46-________ is the transfer of documents and computer files while videoconferencing.

Interactive whiteboarding CPFR Web conferencing Data conferencing

47-The primary benefits of workflow management systems include all of the following

EXCEPT:

fewer chances for delay or

misplaced work.

less management

intervention. increased data

security.

cycle time

reduction.

48-When large suppliers or buyers are involved, a workflow system:

will fail because of

system

incompatibilities.

may be helpful for

supply chain

improvements.

is needed for

collaborative

efforts only.

is needed for both the

collaborative efforts and for

supply chain and production

improvements.

49-Groupware is appropriate in all of the following situations EXCEPT:

For groups to share

ideas and opinions.

For networked

environments. For people working on

different tasks or projects.

For people in the

same room.

50-________ means that the communication and collaboration are done in real time.

Bi-synchronous Asynchronous Synchronous Multi-Synchronous

51-All of the following are types of communication and collaboration done in real time

EXCEPT:

instant messaging blogging webinars VoIP

52-The growth in electronic meeting systems has been driven by all of the following

EXCEPT:

Acceptance of virtual meetings as

a respected way of doing

business.

Shorter

cycle times.

Improvements in

supporting technology.

Reductions in the price

of the technology.

53-The major benefit of group decision support systems is:

in conducting

virtual meetings.

in passive listening while

information is distributed.

in faster decision making

with greater agreement.

in easier

decision

making.

54-Corporations are moving their phone systems to ________ to cut costs and boost

efficiency.

VoIP RTC video kiosks GDSS

55-All of the following apply to instant video EXCEPT:

The idea is for a kind of video

chat room that allows users to

chat in real time and see the

person(s) they are

communicating with.

It is the natural

result of wanting

to link people via

both voice and

audio.

The highest quality

approach is to add

video cameras to the

participants'

computers.

It evolved from the

spread of instant

messaging and

Internet telephony.

Chapter 8 Innovative EC Systems

1-Wikis are used for informal organizational training because it reduces the cost and time

of training.

True False

2-E-government applies only to the interaction of the government with its business

suppliers.

True False

3-The government-to-citizens (G2C) category includes all of the interactions between a

government and its citizens that can take place electronically.

True False

4-Two major areas of G2C activities are "tourism and recreation" and "research and

education."

True False

5-Current voting technologies are being implemented in various countries because of the

security provided by these technologies.

True False

6-The Government Paperwork Elimination Act and the Memorandum on E-Government

ordered the top 500 forms used by citizens to be online by December 2000.

True False

7-The smart card system is part of a nationwide electronic benefits transfer system in the

U.S. for Social Security and welfare payments and other benefit payments.

True False

8-Social networks, such as MySpace, Facebook, and YouTube, are rarely used by political

candidates to reach voters because there are too few users of those networks who actually

vote.

True False

9-Forward auctions are buy-side auction systems used by the government to buy large

amounts of MROs and other materials directly from suppliers.

True False

10-Electronic filing of business taxes is available in over 100 countries, from Thailand to

Finland to the United States.

True False

11-The U.S. Navy's Lifelines system is an example of G2E EC.

True False

12-The e-government transformation process from traditional delivery to full

implementation is a quick process.

True False

13-G2B is easier to implement than G2C.

True False

14-One of the most important issues in implementing e-government is its adoption and

usage by citizens.

True False

15-The topic of e-learning is gaining much attention, especially because world-class

universities such as MIT, Harvard, and Stanford in the United States and Oxford in the

United Kingdom are implementing it.

True False

16-At Cisco, e-learning helped reduce employee training time and costs by almost 25

percent.

True False

17-One disadvantage of e-learning is the lower content retention rate compared to

traditional in-person training.

True False

18-An important advantage of e-learning is that it can provide a fear-free and privacy-

protected environment in which students can put forth any idea without fear of looking

stupid.

True False

19-A drawback of e-learning is that no online course can deliver real-time information and

knowledge in the way a "live" instructor can.

True False

20-Unlike educational institutions, only a small number of business organizations are using

e-learning on a large scale.

True False

21-The dynamic approach to publications personalizes content in real time and transmits it

on the fly in the format best suited to the user's location, tastes, and preferences. This

approach also is called just-in-time (JIT).

True False

22-One of the seven principles for building effective blogs is to think of a blog as a database

instead of a newspaper-like collection of posts.

True False

23-Senior executives and companies are using the blogosphere to build trust-based

relationships, polish corporate reputations, promote social causes, and accomplish other

professional goals.

True False

24-Knowledge portals are single-point-of-access software systems intended to external use

only provide easy and timely access to knowledge and to support communities of

knowledge workers who share common goals.

True False

25-P2P signifies a shift in peer-networking emphasis from hardware to applications

because easier configuration and control over applications enable even non—technical

people to join the user community.

True False

26-________ are a popular online publishing technology for creating a Web page that can

be edited by anyone with a standard Web browser.

P2P Wikis Point-casts Blogs

27-All of the following are examples of e-government EXCEPT:

a state purchasing officer

places an online order for

office supplies from an e-

catalog sent to her by a

national office supply

store.

a company sells

army and navy

surplus supplies

at auction over

the Internet.

an unemployed worker

consults a Web site

operated by the state

employment department to

learn about job openings in

his city.

a contractor submits

an application for a

building permit

using a city hall

Web site.

28-An example of G2C is:

a road contractor uses

the Internet to submit a

closed bid on a paving

contract.

a regional hospital

conducts an online

reverse auction for

cleaning supplies.

an employee at the Chamber

of Commerce gets local

demographic data from a

U.S. Census site.

a driver applies for

and pays for the

renewal of his auto

tag online.

29-Chaplin reports quarterly sales revenue from his business to city hall over the Internet.

He pays his local business tax with a credit card. This is an example of:

e-government G2C e-commerce e-Procurement G2B e-commerce

30-A government agency uses an online reverse auction to satisfy the tendering system

requirements specified by law. This is an example of:

e-Procurement G2B e-commerce G2C e-commerce e-government

31-Government-to-employee applications can lead to significant efficiency improvements

for all of the reasons EXCEPT:

Many military

employees are stationed

in remote locations that

Most government

employees use

handheld digital

Governments employ

large numbers of people

that need to be paid and

Employees of federal and

state governments often

work in a variety of

are best served via the

Internet. devices. trained. geographic locations.

32-All of the following are problems in implementing e-Government EXCEPT:

it is difficult to protect

personal data collected

through an e-

Government site.

businesses have been

more receptive to

G2B than

individuals to G2C.

transformation is

typically very

slow

the technology needed to

implement stage 6 of the

Deloitte transformation

process does not exist yet.

33-One of the most important issues in implementing e-government is:

providing for secure

payments. its adoption and

usage by citizens.

the use of encryption and

digital signatures.

designing feature-rich

Web sites.

34-All of the following are advantages of e-learning EXCEPT:

it costs less to deliver education

online than in a traditional

classroom.

college professors are

anxious to develop new

online courses.

knowledge

retention is

higher.

learning time

is reduced.

35-All of the following are potential drawbacks of e-learning EXCEPT:

assessment issues

remain to be

resolved.

knowledge retention is

lower than in traditional

classrooms.

instructors must

be retrained.

protecting the intellectual

property of content

developers.

36-Most universities use e-learning:

exclusively in

reaching students who

couldn't otherwise

attend classes.

as a supplementary

channel to traditional

classrooms.

only when forced by

administrators to use it as a

way to recruit distant

students or reduce costs.

as a total

replacement for

traditional

classrooms.

37-The business forces that are driving the transition from traditional education to online

learning are all of the following EXCEPT:

limited supply of faculty with competition and cost network technological

specialized expertise. pressures. connectivity. change.

38-Which of the following is an example of edutainment?

Two or more

students sharing

music over the

Internet.

A community college

providing an online

college course on

digital media.

An online science fiction

game whose object is to

blast as many aliens as

possible in a 60 second

round.

An online game that uses

colorful characters to

teach young children

about numbers.

39-One of the facilitators of e-learning is ________ technology such as wikipedia.org.

Macromedia Blackboard WebCT Web 2.0

40-________ is the electronic delivery of newspapers, magazines, books, videos, music, and

other digitizable information over the Internet.

Blogging Online publishing Social networking Webinar

41-More and more people are willing to pay for digital music, as shown by the success of

________.

Apple's iTunes Napster Kazaa P2P

42-________ is commonly used to broadcast public lectures and e-seminars, promote the

work of new or unknown musicians, and broadcast international entertainment activities.

Podcasting Webcasting Dynamic publishing File sharing

43-A podcast is distinguished from other digital audio formats by:

its use of unpaid

subscriptions.

the iPod

hardware

required to hear

it.

its lack of

proprietary

content.

its ability to be downloaded

automatically, using software capable

of reading feed formats such as RSS.

44-The exclusively online publication of Stephen King's e-book Riding the Bullet in March

2000:

as disrupted by hackers

who breached security,

then distributed free copies

of the book.

was an unqualified success and

established electronic publishing

as a legitimate competitor for

traditional publishers.

produced

very few

sales.

was a failure

because the cost

of the book was

too high.

45-A type of e-book referred to as the ________ is a truly multimedia, online-only book that

has hyperlinks, three-dimensional text and display, graphics, audio, and video. It supports

nonlinear exploration of topics.

download Rubics-cube hyperlink

book

online reference book

model.

interactive, build-your-own

decision book

46-The primary advantage that e-books offer publishers is:

the ease of updating

books in real-time.

the ability to

reach many

readers.

lower production,

marketing, and delivery

costs.

the ease of customizing

textbooks and trade books.

47-Which of the following statements about blogs is not true?

Blogs became very popular after

the September 11, 2001 terrorist

attacks when people were looking

for as many sources of

information as possible and for

personal connections to the

tragedy.

The most

common types of

blogs are

professional

blogs,

Blogs are limited to

one-way

communication.

A blog is a personal

Web site, open to the

public, in which the

owner expresses his

or her feelings or

opinions.

48-Risks in corporate blogging include all of the following EXCEPT:

the risk of disciplinary

action against abusive

bloggers.

the risk of

revealing trade

secrets.

the risk of

lawsuits

the risk making statements that are

or could be construed as libel or

defamation.

49-A major purpose of an organizational knowledge base is to support and allow ________.

organizational capital knowledge sharing responsible blogging e-learning

50-The tasks of KM include each of the following EXCEPT:

enhancing a knowledge

environment in order to

conduct more effective

knowledge creation,

transfer, and use.

managing knowledge

as an asset so as to

increase the effective

use of knowledge

assets over time.

restricting

knowledge access to

prevent its transfer

between individuals.

creating knowledge

repositories where

knowledge can be

stored and retrieved

easily.

51-Knowledge is of limited value if:

company databases are not

accessible to decision

makers.

users contribute their

own specialized content. it is not

shared.

companies protect it to

maintain competitive

advantage.

52-________ involves using various computer-based tools and techniques to analyze

transaction data and generate new ideas.

Knowledge management Knowledge capture Knowledge classification Knowledge creation

53-Knowledge generated in e-business contributes to the enhancement of three core

operating processes, which include all of the following EXCEPT:

customer relationship

management

supply chain

management

product development

management project

management

54-Customer-to-customer (C2C) e-commerce is conducted in various ways on the Internet,

but the best-known C2C activities are:

C2C exchanges C2C auctions Personal services Classified ads

55-P2P systems have all of the following key characteristics EXCEPT:

They provide for real-time

access to other users

through techniques such

as instant messaging and

They support cross-

networking protocols such

as SOAP or XML-RPC,

which enables a program

The users'

computers can

act as both

clients and

The overall system is

well integrated, but

lacks tools for easy

creation of content or

multichannel

collaboration applications.

on one computer to

execute a program on a

server computer.

servers. for adding

functionalities.

Chapter 9 Mobile Computing and Commerce

1-Using wireless technologies, one can create EC applications that are not available with

wireline systems.

True False

2-Mobile computing refers to a computing paradigm designed for workers who travel

outside the boundaries of their organizations or for anyone on the move.

True False

3-The two solutions that were necessary for mobile wireless computing to be feasible were

computers that were small enough to be carried easily and long-life batteries.

True False

4-A laptop or notebook computer can become wireless with the addition of a cellular chip.

True False

5-Overall, PDA sales dropped in the mid-2000 because PDAs lacked features beyond

personal information management.

True False

6-The primary application of Blackberry is instant messaging.

True False

7-Hardware and software designers need to consider the special requirements of mobile

devices such as small screens, reduced memory, limited bandwidth, and restricted input

capabilities.

True False

8-A Web server may need two versions of the same Web page–a normal page with full

graphics for desktop computers and a mobile page for PDAs and smartphones–and a way

to distinguish between devices requesting the Web page.

True False

9-The infrastructure to support mobile commerce is inexpensive and relatively simple to

put in place.

True False

10-Common standards for various mobile devices simplify the development of software

applications for wireless devices.

True False

11-Small handheld computing devices use a variety of interface approaches including a

touch screen, mini-joystick, jog dial, and thumb wheel.

True False

12-The Wireless Application Protocol, or WAP, is a suite of network protocols designed to

enable different kinds of wireless devices to access WAP-readable files on an Internet-

connected Web server.

True False

13-The WAP gateway is a server that is responsible for translating information requests

from the device into an HTTP request that the Web server can understand.

True False

14-Micropayments for small-purchase amounts of less than $10 have become widespread in

EC, in part because of the widespread use of all types of mobile devices.

True False

15-Increased use of voice-support services exploits the built-in audio capabilities of many

mobile devices and reduces their dependence on unsatisfactory input solutions, such as

handwriting recognition, keypads, or virtual touch-screen keyboards.

True False

16-The highest level of voice support services is a voice portal, which is a Web site with an

audio interface that can be accessed through a telephone call.

True False

17-WiFi is a set of telecommunications standards that enables wireless devices to

communicate with each other over short distances, but which suffers from interference and

security problems.

True False

18-The most popular Wi-Fi standard is 802.11b, which is inexpensive and offers sufficient

speed for most devices, but has interference problems.

True False

19-A common type of personal area network (PAN) is Bluetooth-enabled headsets that

people use with their cell phones.

True False

20-Increasingly, 802.11b is being used in commercial environments where cost is not a

major issue and where laptop computers can take advantage of the 54 Mbps transfer rate.

True False

21-WiMax is an IEEE 802.16 wireless standard for making broadband network access

widely available for data and voice over a medium-sized area, and whose impact on e-

commerce is still unclear.

True False

22-Even though micro-payment technology has wide-ranging applications, such as making

payments to parking garages and public transportation, two factors limiting the success of

micro-payment applications are transaction costs and nonpayment risks.

True False

23-The two greatest opportunities in B2B mobile commerce are to use wireless

communication to share information along the supply chain and to make electronic

payments.

True False

24-In Las Vegas, the Luxor pre-registers guests when their airplane lands and they turn on

their cell phones. Also, the hotel can determine when guests leave the hotel, luring them

back to gamble with mobile incentives and pitches. This is an example of Global

Positioning Systems (GPS).

True False

25-Several key ethical issues in m-commerce include isolation, loss of privacy, and potential

health damage from cellular radio frequency emissions.

True False

26-M-commerce transactions and activities require ________ and ________.

hardware and software

infrastructures; infrastructure

support

cell phones;

portable computers

smartphones;

switches

wired networks;

access points

27-Infrastructures that support the wireless connection are:

PDAs,

smartphones, and

portable

computers.

WAP gateways,

GPS locators,

and GPS

satellites.

network access points, mobile

communications server switches,

and cellular transmitters and

receivers.

web servers, mobile

devices, and

microbrowsers.

28-Components of a wireless infrastructure that support delivery of services over a wireless

connection are:

WAP gateways,

GPS locators,

and GPS

satellites.

network access points, mobile

communications server switches,

cellular transmitters, and

receivers.

PDAs,

smartphones, and

portable computers.

web servers, mobile

devices, and

microbrowsers.

29-Characteristics of mobile devices that create special requirements that hardware and

software designers need to anticipate when designing mobile computing systems include all

of the following EXCEPT:

restricted input capabilities small screens broad bandwidth reduced memory

30-The exchange of updated information with other computing devices is called:

data transferring synchronization. marking docking

31-A suite of network protocols designed to enable different kinds of wireless devices is

called:

Wireless Application

Protocol.

a mobile application user

interface.

wireless

middleware.

a mobile operating

system.

32-The application logic in a handheld PDA, smart phone, Palm or Wintel notebook is

called:

a mobile application user

interface.

wireless

middleware.

a mobile operating

system.

Wireless Application

Protocol.

33-________ enables the determination of the location of an enabled device.

WAP GPS SMS PDA

34-Rick sends a message from a delayed flight to his friend on her cell phone that he will be

arriving late. The service that allows the sending and receiving of such short text messages

on mobile phones is called:

SMS LOL TMG MSG

35-Micropayments are electronic payments:

that are less than

$100.00.

that are less than

$1.00. that are less than

$10.00.

from a mobile

device.

36-A ________ is suitable for mobile users who need to make very short-range device-to-

device wireless connections within a small space, such as a single room, and most

commonly with Bluetooth.

wireless area network local area network Wi-Fi area network personal area network

37-Most WLANs run on a telecommunications standard known as ________, which is more

commonly called ________.

IEEE 802.11; Bluetooth WLAN; hotspot IEEE 802.16; WiMax IEEE 802.11; Wi-Fi

38-The IEEE standard ________ offers bandwidth transfer rates of 200 to 540 Mbps,

which makes it impractical because it exceeds the limits of most broadband connections

used by homes and small businesses.

802.11b 802.11n 802.11g 802.16

39-All of the following about wireless wide area networks (WWAN) are true EXCEPT:

Most

WWANs are

cellular phone

networks.

When a device is

turned on, a SIM

card inside the

device identifies

itself to the

WWAN.

At the center of each cell is a

base station transceiver or cell

tower that is used to send and

receive signals to and from

mobile devices operating within

the cell.

The single WWAN

network standard insures

compatibility of handsets

within and between

countries.

40-The major attributes that enable development of new applications that are possible only

in a mobile environment include all of the following EXCEPT:

Ubiquity Security Personalization Localization

41-The development of m-commerce is being driven by the following technological,

business, social, and economic factors EXCEPT:

The improved

price/performance of

mobile services.

The widespread

availability of more

powerful wireless

devices.

The growth of a

handset culture and

mobile workforce.

The transition to a

manufacturing

economy.

42-As in e-commerce, m-commerce B2C applications are concentrated in each of the

following areas EXCEPT:

retail shopping for

products and services telecommunications

targeted

advertising

providing content for a fee

through mobile portals

43-The major enterprise mobile applications are all of the following EXCEPT:

logistics and

supply chain

e-mail and cell phone

contacts research and

development

customer relations and sales

force automation

44-By enabling sales force employees to record orders in real time, the organization

benefits through each of the following EXCEPT:

lower clerical and

administrative

overhead.

fewer data

entry errors.

more extensive collaboration

and sharing of customer

leads.

improved manufacturing

and delivery scheduling,

45-Mobile access supports the two functions of sales force mobilization and field service,

which extends the reach of ________ to both employees and business partners on a 24/7

basis to any place where recipients are located.

customer relationship

management

vendor

management

supply chain

management

inventory

management

46-One way to share information with supply chain partners is wireless ________, which is

the science of measuring physical phenomena such as temperature, volume, or an on/off

condition at a remote point and transmitting the value to a distant recorder or observer.

telemetry RFID mobilization osmosis

47-WiMax and 3G wireless mobile technologies offer telemedicine application

opportunities that include all of the following EXCEPT:

Real-time

consultation

between a patient in

one location and a

medical specialist in

another.

Wearable heart monitors

linked to a cell phone can

automatically contact

doctors or family

members at the first sign

of health problems.

Prescriptions can be

transferred

electronically to the

appropriate pharmacy

for a no-wait pick-up

by the patient.

Reduced threat of

malpractice suits

because there is no

hands-on interaction

between the remote

physician and the

patient.

48-All of the following are barriers to location-based m-commerce EXCEPT:

Consumers see constant

location data

transmissions as a

violation of privacy.

Wireless

bandwidth is

limited.

There are presently not

enough location-based

systems to make this a

viable technology.

The accuracy of location

technologies is often less

than consumers expect.

49-The services provided through location-based m-commerce focus on key factors which

include all of the following EXCEPT:

Geocaching, or

determining the

topography of an area.

Timing, or determining

the precise time at a

specific location

Tracking, or

monitoring the

movement of a person

or thing.

Navigation, or plotting

a route from one

location to another.

50-A(n) ________ is a computer system capable of integrating, storing, editing, analyzing,

sharing, and displaying spatial information.

geographical information system on-star system l-commerce system global positioning system

51-You are walking near a coffee shop and suddenly your cell phone beeps with a message:

"Come inside and get a free biscotti with any purchase." This is an example of:

location-based

advertising

m-

commerce

customer relationship

management

permission

marketing

52-________ refers to the integration of computers and wireless communications in order

to improve information flow.

Remote telemetry E-911 Telematics Mobility

53-Many experts believe that the next major step in the evolution of computing will be

________ in which almost every object will have processing power and a wired or wireless

connection to a network.

universal computing mobile computing persistent computing pervasive computing

54-All of the following about RFID are true EXCEPT:

An RFID tag can hold 20

times the amount of

information a bar code can

hold, and the tag can be

read through cardboard,

wood, and plastic at a range

of up to 100 feet.

An RFID tag

includes an

antenna and a chip

with information

about the item.

An RFID tag remains

inactive until radio frequency

energy from the tag's radio

transmitter hits its antenna,

giving the chip enough power

to emit a 96-bit string of

information.

An RFID

reader contains

a radio

transmitter and

receiver.

55-One initiative underway that could lead to widespread support for the introduction of

RFID is the ________, which identifies the manufacturer, producer, version, and serial

number of each item and does not require line-of-sight contact to be read.

Smart Product Network Electronic Product Code Universal Product Code Sensor Network

Chapter 10 Dynamic Trading

1-The Internet provides an infrastructure for executing auctions with many more

participating sellers and buyers than with offline auctions, but administrative costs are

higher.

True False

2-In some types of auctions, sellers offer product; and in other types of auctions, buyers

post their product needs.

True False

3-Dynamic pricing refers to a transaction in which the price is not fixed, but fluctuates

based on current supply-and-demand relationships.

True False

4-Reverse auctions have two major purposes: liquidation and market efficiency.

True False

5-B2B reverse auctions are gaining popularity as an online mechanism for buying goods

and services.

True False

6-A popular type of auction model where there is one buyer and many potential sellers is

the "name-your price" model that was pioneered by eBay.com.

True False

7-An auction that takes place between sellers and buyers in one industry or for one

commodity is called a vertical auction because activity goes up and down the supply chain

in a single industry, rather than horizontally between members of supply chains in

different industries.

True False

8-Specialized sites for vertical auctions are referred to as auction vortals.

True False

9-Through e-auctions, sellers can gain more customer dollars by offering items directly

rather than through an expensive intermediary or by using an expensive physical auction.

True False

10-A major benefit of e-auctions is the reduced rate of fraud because of the openness of the

transaction.

True False

11-The "name-your-own-price" model is based on the fundamental concept of the

downward-sloping supply curve in which prices vary based on supply.

True False

12-Entering a high bid without ever planning to pay for the auction item is called sniping.

True False

13-In addition to auctions, dynamic prices can be determined by online negotiation, which

is the back-and-forth process of bargaining until a buyer and seller reach a mutually

agreeable price.

True False

14-Barter agents are software that can support the back-and-forth process of online

negotiation.

True False

15-Double-auction markets tend to generate competitive outcomes because a double

auction is an interactive market in which both buyers and sellers are competitive.

True False

16-Prices paid in online auctions are lower when auctions are an alternative selling channel

rather than an exclusive selling arrangement.

True False

17-Negotiating prices transfers the burden of determining prices to the market itself so the

resulting negotiated prices will always be fair and effective.

True False

18-Bid shielding is a type of e-auction fraud where sellers place phantom bidders to bid up

the price of items they are selling and hide (shield) low bids by actual potential buyers.

True False

19-Specialized authentication services are very effective and widely used to determine

whether an item is genuine and described correctly as a way to protect against counterfeit

products.

True False

20-Third-party escrow services are used for products valued at more than $200 to protect

both the buyer and seller when either the buyer or seller feels the need for additional

security.

True False

21-When a company decides to use auctions as a sales channel, one of the strategic issues in

B2B is the potential conflict with existing distributors and distribution channels. Therefore,

some companies use auctions only to liquidate obsolete, used, refurbished, or damaged

products.

True False

22-The process of building auction applications is easy because of intelligent agents and

other building tools.

True False

23-WineryExchange successfully auctioned grapes to wineries, which ended the tradition of

sales being based on established relationships between grape growers and wineries.

True False

24-Privacy is one of the benefits of mobile auctions because the Internet cell phone is more

private than a PC.

True False

25-Auctions may be used as a strategic tool by both online and offline companies.This type

of strategic alliance will be very popular due to its win win possibilities.

True False

26-Auctions are all of the following EXCEPT:

They are a

marketing

channel.

They are an established method

of commerce for generations. They are suitable for

most consumer goods.

They are a market

mechanism.

27-Dynamic pricing refers to :

prices that are determined

by market forces.

prices that are regulated by

government agencies.

prices that

maximize revenue.

prices that are

negotiated.

28-________ work best with many buyers and many sellers.

Forward auctions Dynamic exchanges Reverse auctions Bartering

29-The ________ auction model is popular in B2B.

one buyer, many potential

sellers one-buyer, one-

seller

one seller, many potential

buyers

many buyers, many

sellers

30-Two purposes of a type of ________ auctions are liquidation and market efficiency.

one buyer, many potential

sellers

many buyers, many

sellers

one-buyer, one-

seller one seller, many potential

buyers

31-Reverse auctions are a type of ________ auctions.

one-buyer, one-

seller one buyer, many potential

sellers

many buyers, many

sellers

one seller, many potential

buyers

32-The "name-your own-price" model pioneered by Priceline.com is a type of ________

auction.

many buyers, many

sellers one buyer, many potential

sellers

one seller, many potential

buyers

one-buyer, one-

seller

33-Auctions done in exchanges or double auctions are ________ auctions.

many buyers, many

sellers

one-buyer, one-

seller

one seller, many potential

buyers

one buyer, many potential

sellers

34-A(n) ________ takes place between sellers and buyers in one industry or for one

commodity, such as flowers, cars, or cattle.

vertical auction exchange open auction negotiation vortal

35-All of the following are potential benefits from auctions to sellers EXCEPT:

sellers are always

anonymous.

sellers can liquidate large

quantities of obsolete

items very quickly.

sellers receive valuable

price sensitivity

information.

auctions can broaden the

customer base and

reduce cycle time.

36-In electronic auctions, near-perfect market information is available about prices,

products, current supply and demand, and so on. This feature provides benefits to

________.

sellers buyers buyers and sellers companies and individuals

37-Benefits of electronics auctions (e-auctions) to sellers include all of the following

EXCEPT:

Anonymity Lower transaction and

administrative costs

Larger reach and

increased revenues

Removal of expensive

intermediaries

38-________ refers to the tendency of customers to stay at Web sites longer and come back

more often.

Loyalty Frequent purchase Stickiness High repeat

39-Limitations of e-auctions include all of the following EXCEPT:

Risk of fraud Higher order fulfillment costs Long cycle time Dynamic pricing

40-Research has shown that e-commerce sites that use an auction model tend to:

reach critical mass more quickly

than catalog-order-based.

become

liquid.

fail more often than

other models.

reach critical mass more

slowly than other models.

41-The first step in the auction process is:

preparing the

bids.

arranging

financing. searching and

comparing.

registration and participants'

profiles.

42-Jackie uses a software system to place bids automatically on her behalf until her

predetermined maximum price is reached. The software bids in such a way as to minimize

the final bid. This is referred to as:

sniping. bidding agents. proxy bidding. pricing agents.

43-Compared to competitive markets, auction prices are often ________ when there are

multiple bidders.

the same higher lower dynamic

44-Compared to competitive markets, auction prices are often ________ when there are

very few bidders.

lower higher dynamic the same

45-The most serious disadvantage of e-auctions is:

logistics. payment delays. the risk of fraud. unreliable auction software.

46-The practice by sellers of having associates place fake bids in an auction as a way to

drive up the selling price is called:

bid shielding. bid fixing. shilling. sniping.

47-Bidders sometimes use phantom bidders to drive bid prices up rapidly at the beginning

of an auction, thus discouraging bidding from legitimate bidders. At the last minute, the

phantom bidders pull out, which awards the item to a very low bidding customer. This

practice is called:

shilling. sniping. bid fixing. bid shielding.

48-John wants to know if the first edition novel he just purchased through an e-auction is

actually a first edition. The auction host helps him locate an expert that will tell him

whether the novel is a genuine first edition or a fake. This is an example of:

certification. authentication. verification. integrity.

49-A major shortcoming with authentication services is:

it is impossible to tell

whether many items

are reproductions or

genuine.

dishonest

authenticators are the

primary sources of

fraud on the Internet.

most auction sites

forbid the use of

authentication

services.

two different authenticators

may come up with different

opinions regarding the

authenticity and description

of a given item.

50-Many companies use intermediaries or trading assistants instead of implementing e-

auctions themselves for each of the following reasons EXCEPT:

To avoid tax

and legal

fees.

The company name is

not widely recognized.

To bring many

more buyers to the

auction.

Costs of auction intermediaries or

assistants are less than the costs of

physical auctions.

51-Each of the following is one of the three major categories of auction rules EXCEPT:

timing rules clearing rules bidding rules information-revelation rules.

52-Each of the following is true about auction rules EXCEPT:

Rules eliminate

conflicts with existing

distributors and

distribution channels.

Auction rules vary from

country to country due to

legal considerations.

Rules are intended to

smooth the auction

mechanism and to

prevent fraud.

The success of

auctions depends on

complying with

auction rules.

53-The process of building auction applications is complex for all of the following reasons

EXCEPT:

auctions must be

integrated with the

back-end offices.

the number of

needed features can

be very large.

auctions must be integrated with

the legacy systems of

participating companies.

auctions must

provide payment

systems.

54-Many auction sites are implementing ________ because of the significant increase in the

number of users who browse the Internet wirelessly.

m-commerce applications instant message notification authentication vortals

55-The limitations of mobile auctions are all of the following EXCEPT:

Internet cell

phones are less

private than a PC.

Internet-enabled

phones have limited

memory capacity

Wireless systems

are not as safe as

wireline ones.

Portable devices are small and

may have a problem showing

pictures of auction items.

Chapter 11 E-Commerce Security

1-Fraud refers to a business activity that relies on force or threats to deprive a person or

company of property or other assets.

True False

2-The trend in online crimes shows that most new scammers and other con artists are not

computer geniuses.

True False

3-Identity theft has become the primary concern of online shoppers.

True False

4-Defending against online cons and compensating for the damages caused by identity

thieves have significantly increased the costs of EC.

True False

5-To minimize the risk of fraud from phishing and crimeware, EC retailers need to

authenticate the buyer.

True False

6-An EC security strategy consists of firewalls and other types of technology to prevent and

detect unauthorized use of the organization's brand, identity, Web site, e-mail, information,

or other asset.

True False

7-Information assurance broadly refers to the protection of information systems against

unauthorized access to information, unauthorized modification of information, and denial

of service to authorized users.

True False

8-The EC industry ranks security over convenience. So the EC industry strives to enforce

safeguards, such as passwords for credit card transactions, that make online shopping

safer even if those safeguards make it more inconvenient for customers.

True False

9-Credit card issuers want to cooperate and share leads on criminal activity with each

other and law enforcement even though prosecution with an uncertain outcome.

True False

10-Most U.S. Web hosting providers log all activity so, in most cases, they can identify the

source IP address and source ISP with timestamps and other identifying information.

True False

11-Requiring stronger EC standards and information sharing by the credit card companies

would not fix the security problems facing online retailers and shoppers.

True False

12-Spammers use zombie computers to distribute spam because it is both cheaper and less

risky.

True False

13-According to the Mitre Corporation's list of Common Vulnerabilities and Exposures, two

of the top five reported vulnerabilities were within Web applications.

True False

14-The legal standard of due care requires that a company take reasonable care to defend

against risks affecting its EC business and online transactions.

True False

15-Because of the lack of source authentication and data integrity checking in DNS

operations, Internet services are vulnerable to attacks.

True False

16-Experts believe that a strict e-business risk management program that was rigorously

managed could not have prevented many of the data breaches.

True False

17-EC security programs have a life cycle during which their EC security requirements

must be evaluated and adjusted annually.

True False

18-According to the CIA security triad, the success and security of EC depends on the

confidentiality, integrity, and accessibility of information and the business Web site.

True False

19-Nonrepudiation is closely associated with authentication and assures that an online

customer or trading partner cannot falsely deny their purchase or transaction.

True False

20-The FTC, SEC and other government agencies cannot impose harsh penalties on

companies whose confidential data has been breached unless a company employee caused

the breach.

True False

21-Phishing attacks rely on social engineering, which is a nontechnical attack that uses

something to trick users into revealing information or performing an action that

compromises a computer or network.

True False

22-The time-to-exploitation, which is the elapsed time between when a vulnerability is

discovered and the time it is exploited, of most sophisticated spyware and worms has

decreased from several months to a few weeks.

True False

23-Unlike denial of service (DOS) attacks, botnet attacks are less dangerous because they

cannot disrupt a web site or EC application.

True False

24-The ability of a biometric system to identify a person depends on the existence of

database of enrolled users that is searched for a match based on the person's biometric

trait.

True False

25-Virtual private networks (VPNs) are a special category of software that can monitor

activity across a network or on a host computer, watch for suspicious activity, and take

automated action based on what it sees.

True False

26-The incidence of online fraud and identify theft has increased for each of the following

reasons except:

Information is today's

most valuable form of

international currency.

New effective phishing

scams and schemes

being carried out by

computer experts.

Scammers outsourcing

work to programmers to

seize control of computers

or wireless networks.

Growth in EC sales

and the number of

shoppers with

higher incomes.

27-Cyber cons have a negative effect on EC because

con

artists

have

gone

low-tech.

companies cannot expand

their e-business to other

countries with

underdeveloped legal

systems.

a majority of potential

customers do not shop

online because they are too

afraid of fraud to trust

online merchants.

defending against these

cons and compensating for

damages significantly

increase the costs of EC.

28-The U.S. agencies dedicated to eliminating fraud resulting from phishing and crimeware

are:

The Group of

Eight, VeriSign,

and NameProtect.

The High-Tech Crime

Network, Anti-

Phishing Working

Group, and Internet

Research Lab.

The High-Tech Crime

Network, Anti-Phishing

Working Group, and

Federal Trade

Commission.

The Computer Security

Institute, High-Tech

Crime Network, and

Anti-Phishing Working

Group.

29-________ is a crimeware technique used to steal the identity of target companies to get

the identities of their customers.

Social engineering. Phishing. Pretexting. Spamming.

30-Where do a huge majority, possibly as high as 95 percent, of hackers reside?

Turkey, China, Romania, or

Brazil.

Russia, India, Germany, or

Argentina.

In the G8

countries.

In South

America.

31-The key reasons why EC criminals cannot be stopped include each of the following

except:

Lack of cooperation

from credit card

issuers and foreign

ISPs.

Strong EC security makes

online shopping

inconvenient and

demanding on customers.

Sophisticated hackers

use browsers to crack

into Web sites.

Online shoppers do not

take necessary

precautions to avoid

becoming a victim.

32-It is currently known that if a front-end application such as a Web site is effectively

secured, then

the data itself

is secured by

firewalls.

the data itself is secure

because web applications

are not targeted by

attackers.

the data itself may not be

secure because the

application may not

function as planned.

the data itself may not

be secure because back-

end databases may not

function as

planned.

33-A vulnerability

is the estimated cost, loss,

or damage that can result if

a threat exploits a

vulnerability.

is a

software

bug.

is the probability

that a weakness will

be known and used.

is a weakness in software or

other mechanisms that a hacker

can use directly to gain access to

a system or network.

34-The underlying reasons why a comprehensive EC security strategy is needed include all

of the following except:

Managers

treating EC

security as a

process.

The shift

toward profit-

motivated

crimes.

The Internet was designed

for maximum efficiency

without regard for its

security or users with

malicious intent.

Many companies fail to

implement basic IT security

management best practices,

business continuity plans, and

disaster recovery plans.

35-The protection of information systems against unauthorized access to or modification of

information that is stored, processed, or being sent over a network is referred to as

________.

Information defense. Information security triad. Information integrity. Information assurance.

36-The success and security of EC depends on the ________ of information and the

business Web site.

authentication,

authorization, and

nonrepudiation

encryption,

functionality, and

privacy

confidentiality, integrity,

and availability

quality,

reliability, and

speed

37-The basic security concepts relating to customers and other users are:

authorization,

nonrepudiation, and

information assurance.

information assurance,

confidentiality, and

authentication.

authentication,

authorization, and

nonrepudiation.

confidentiality,

integrity, and

availability.

38-Digital signatures or digital certificates:

are used to validate the sender and time

stamp of the transaction so it cannot be

later claimed that the transaction was

unauthorized or invalid.

have been

compromised by

phishers and

spammers.

provide complete

confidence that the

transactions are secure.

a

and

b

39-The most cost-effective approach to EC security is to develop and implement a strategy

that

requires digital

signatures or digital

certificates for all

transactions.

depends on the

trust and

confidence of

customers.

proactively meets

regulatory, financial,

marketing and

operational requirements.

protects against

unauthorized transactions

and overrides of

accounting controls.

40-To be effective, an acceptable use policy (AUP) needs

to specify rules for to inform all users of their to be written by to be incorporated

firewalls, access control

lists, monitoring, and

intrusion detection

systems.

responsibilities when using

company networks, computer

equipment, wireless devices, and

customer data.

the company's

legal department.

into business

projects and

proposals.

41-In 2005, human error was responsible for almost ________ percent information security

breaches in organizations.

40 10 20 60

42-Which of the following statements about hardware and software security defenses is

false?

After the EC security

program and policies are

defined and risk assessment

completed, then the software

and hardware needed to

support and enforce them can

be put in place.

Hardware and software

security defenses protect

against irresponsible

business practices or

corrupt management.

If firewalls and

antivirus software are

not upgraded and

monitored

constantly, they will

not remain useful.

There is no

single hardware

or software

solution for all

companies.

43-Social engineering attacks are:

no longer considered to be

serious Internet threats due

to the increased security of

MySpace, LinkedIn, and

YouTube.

are a combination

of technical and

nontechnical

attacks.

take advantage of Web

2.0 applications like

social networking sites,

blogs, wikis and RSS

feeds.

an example of

technical attacks

requiring software or

systems knowledge.

44-A technique known as web page hijacking

downloads what appears to

be an "important

document," but which

contains a trojan, a

program that gives the

sender control of the

infected machine.

enables a malicious Web

master to displace the

pages of an EC Web site in

the Search Engine Results

Pages (SERPS) to redirect

customers to another site.

enables online

gambling that are

actually fronts for

international money

laundering operations.

causes a high

volume of

search engine

traffic similar to

a denial of

service attack.

45-A botnet is:

a piece of software

code that inserts

itself into a host or

operating system to

launch DOS

attacks.

a collection of a few

hundred hijacked Internet

computers that have been

set up to forward traffic,

including spam and viruses,

to other computers on the

Internet.

a piece of code in a

worm that spreads

rapidly and exploits

some known

vulnerability.

a coordinated network

of computers that can

scan for and

compromise other

computers and launch

DOS attacks.

46-Which technologies are designed and used to secure EC communications across a

network?

PINs, cryptocards,

and point-of-sale

systems.

Plastic cards with magnetic

strips, intrusion detection

systems, and progressive

tokens.

AUPs, ACLs,

and network

login IDs.

Access control lists,

tokens, passwords, and

biometric systems.

47-Public key infrastructure (PKI) is an authentication method

that encrypts and

decrypts large

amounts of data

effectively.

that is based on the Data

Encryption Standard, which is

the standard symmetric

encryption algorithm supported

by U.S. government agencies.

that uses

encryption keys

ranging from 64

bits to 128 bits.

that has become the

cornerstone for secure

e-payments and

intranet applications.

48-Secure Socket Layer (SSL), which is also known as Transport Layer Security (TLS):

is designed to

handle all steps in

the validation of

credit card

numbers.

has been

replaced by

certificate

authorities.

is one of the major

generally accepted

protocols for securing e-

commerce used by

Microsoft and Netscape.

was invented by Microsoft to

use standard certificates for

authentication and data

encryption to ensure privacy or

confidentiality.

49-Access to a network ought to be based on:

the policy of least privilege

where access to network

resources are blocked and

permitted only when needed

to conduct business.

role-specific security

protocols where

access is limited by a

user's level of trust.

the policy of need-to-

know where access

by all non-employees

is blocked.

the policy of

acceptable use

where access is

restricted by the

firewall.

50-Which of the following does not correctly describe what firewalls protect against?

Some programs have

bugs or special

features that create

application

backdoors, which

allowing for remote

access.

Spammers often use SMTP

session hijacking to redirect e-

mail through the SMTP server

of an unsuspecting host, which

helps hide their identity.

Remote logins occur

when an unauthorized

users connects to a PC

and gains control of it.

Macros are the

electronic

equivalent of

junk mail.

51-Firewalls that filter requests from the Internet to a private network based on the IP

address of the computer sending or receiving those requests are called:

packet-filtering routers. application-level proxies. bastion gateways. IP blockers.

52-All of the following are important security functions of proxy servers except:

They improve

network

performance.

They hide the IP addresses

of a company's internal

computers.

They help control

outbound traffic to a

network.

They help control

inbound traffic to a

network.

53-The advantages of virtual private networks (VPN) for data communications include all

of the following except:

They can reduce

communication costs

dramatically because

VPN equipment is

cheaper than other

remote solutions.

They are less

expensive than

private leased lines

because they use the

public Internet to

carry information.

They ensure the

confidentiality and

integrity of the data

transmitted over the

Internet without

requiring encyption.

Remote users can use

broadband connections

rather than make long

distance calls to access

an organization's

private network.

54-A host-based intrusion detection system (IDS):

Resides on the server that is

being monitored where it

can detect whether critical

or security-related files have

been tampered with or

whether a user has

attempted to access files that

he or she is not authorized to

Consists of information

system resources–

firewalls, routers, Web

servers, database

servers, and files that

look like production

systems, but do no real

work.

Can perform certain

actions when an

attack occurs, such

as terminating

network connections

based on security

policies.

Uses rules to

analyze suspicious

activity at the

perimeter of a

network or at key

locations in the

network

use.

55-In the United States, which the federal laws place legal limits on monitoring activity?

The Wiretap

Act and

CFAA

The Wiretap Act and the

Pen Register, Trap, and

Trace Devices statute

The Computer Fraud and

Abuse Act (CFAA) and the

First Amendment.

The USA

PATRIOT Act

and CFAA

Chapter 12 Electronic Payment Systems

1-E-payment systems that require the payer to install specialized security software have

proven more likely to succeed.

True False

2-The success of an e-payment method depends on its interoperability with existing

enterprise systems and applications.

True False

3-To succeed, special e-payment methods, such as e-cash, have to maintain anonymity.

True False

4-E-payment methods that can address the lower or higher end of the price continuum is

unlikely to be widely accepted because of cost and security issues.

True False

5-Credit cards and charge cards are e payment instruments that allow the holder to make

purchases up to a fixed limit and charges interest each month on unpaid balances.

True False

6-In the settlement process, the systems must determine whether a buyer's card is active

and whether the cardholder has sufficient funds available for the purchase.

True False

7-With a debit card, the money for a purchased item comes directly out of the holder's

checking account with the actual transfer of funds from the holder's account to the

merchant's taking place within one to two days.

True False

8-The processing of card payments has two major phases: identification and settlement.

True False

9-In the authorization process, the systems determines whether a buyer's card is active and

the customer has sufficient available credit line or funds.

True False

10-For a given type of payment card and processing system, the processes and participants

are essentially the same for off-line (card present) and online (card not present) purchases.

True False

11-CyberSource and VeriSign are payment processing services that provide connectivity

among merchants, customers, and financial networks that enable authorization and

payments.

True False

12-In the online world, merchants are not held liable for fraudulent transactions.

True False

13-Recent surveys by CyberSource indicate that fraudulent card transactions are a

growing problem for online merchants in spite of their increasing efforts to combat fraud

despite improved anti-fraud measures.

True False

14-Because of their visibility and large sales volumes, larger firms were more susceptible to

fraud than smaller firms were.

True False

15-One problem with the Address Verification System (AVS) for fraud prevention is the

number of false positives, meaning that the merchant rejects a valid order. One reason for

these rejects is simply that cardholders make mistakes in inputting their addresses or zip

codes.

True False

16-One impact of anti-fraud tools is that merchants are rejecting a significant number of

both valid and invalid orders due to suspicion of fraud.

True False

17-With virtual credit cards, the issuer must create a new credit card number for every

purchase.

True False

18-In most cases, smart cards are more secure than credit cards and can be extended with

other payment services. In the retail arena, many of these services are aimed at those

establishments where payments are usually made in cash and speed and convenience are

important.

True False

19-Stored-value cards are being marketed heavily to the those who do not have credit cards

or do not have bank accounts, specifically people with low incomes, young adults, seniors,

immigrants, minorities, and others.

True False

20-Regardless of the vendor's point of view, there is substantial evidence, at least in the

offline world, that consumers are not willing to use their credit or debit cards for

micropayments under $5 to minimize security risks.

True False

21-E-checks rely on current business and banking practices and can be used by any sized

business that has a checking account, credit card, and debit card.

True False

22-From the perspective of the billing firm, two advantages of e-billing are the reduction in

expenses related to billing and processing payments and the ability for advertising

customized to each individual customer.

True False

23-EIPP is the process by which companies present invoices and make payments to one

another.

True False

24-With letters of credit, credit risk is reduced because payment is accessed via the

creditworthiness of the issuing bank.

True False

25-Research shows that state and local governments are losing more than $100 billion per

year in sales tax revenue on items purchased over the Internet.

True False

26-Factors that come into play in determining whether a particular method of e-payment

achieves critical mass include all of the following EXCEPT:

the degree of

security of the

transfer.

full traceability of

the buyers.

hardware and software

independence.

interoperability with other

enterprise systems and

applications

27-A card that draws the payment amount directly from the user's checking account is

called a(n):

e-payment card. charge card credit card. debit card

28-A payment card that provides the holder with credit to make purchases up to a limit

fixed by the card company and charges relatively high interest rates on unpaid balances is

the:

e-payment card. charge card. credit card. debit card.

29-The process of determining whether a card is active and whether the customer has

sufficient funds for the purchase is called:

settlement. authorization. approval. procurement.

30-The transfer of money from the buyer's to the seller's account is called:

authorization. approval. settlement. procurement.

31-________ offer Internet Merchant Accounts, which are special accounts for credit card

authorization and payment processing.

Payment processing services Credit card associations Issuing banks Acquiring banks

32-________ are financial institutions that provides a customer with a payment card.

Acquiring banks Payment processing services Issuing banks Credit card associations

33-________ provide connectivity among merchants, customers, and financial networks

enabling authorization and payments is called the:

Credit card associations Payment processing services Acquiring banks Issuing banks

34-________ are small online payments typically under US$10:

E-smart payments E-micropayments E-minipayments E-cash

35-An advantage of e-checks is that they:

operate outside the

traditional banking

industry.

involve complex

internal processing

systems.

contain much more

information then

traditional paper checks.

fit current business

practices, and so require

little process reengineering.

36-The nationwide batch-oriented electronic funds transfer system that provides for

interbank clearing of electronic payments for participating financial institutions is called

the:

Automated

Clearinghouse

Network.

electronic bill presentment

and payment network.

Receiving Depository

Financial Institution

Federal

Reserve

System.

37-Each of the following are ways to pay bills over the Internet EXCEPT:

biller direct. bill consolidator. customer service provider. online banking.

38-From the perspective of the billing firm, all of the following are advantages of e-billing

EXCEPT:

reduced processing

expense. universal

availability.

opportunity for targeted

advertising.

improved customer

service.

39-From the perspective of the customer, all of the following are advantages of e-billing

EXCEPT:

greater security than other

types of payments.

simplifies and centralizes

payment processing.

makes record

keeping easier.

lower

costs.

40-Characteristics of B2B payments include all of the following EXCEPT:

They are more likely to

involve disputes that

require significant rework

to resolve.

They require less

rigor and security

than B2C payments.

They are much

larger than payments

by individuals.

They are significantly

more complex than

payments by individuals.

41-B2B payments are part of a much larger financial supply chain that includes all of the

following EXCEPT:

payment authorization. contract administration. procurement. financial reporting.

42-In financial supply chain management, the goal is to optimize all of the following

EXCEPT:

accounts receivable the physical supply chain accounts payable financial risks

43-Unlike the physical supply chain, ________ characterize the financial supply chains of

most companies.

greater accuracy efficiencies transparency inefficiencies

44-The vast majority of B2B payments are:

electronic

payments.

made using electronic funds

transfer (EFT)

made with letters of

credit. still made by paper

check.

45-Barriers inhibiting B2B electronic payment include all of the following EXCEPT:

strict standard

formats for

remittance

information.

a shortage

of IT staff.

a lack of integration of

payment and

accounting systems.

inability of trading partners to send

or receive electronic payments with

sufficient remittance information.

46-The process by which companies present invoices and make payments to one another

through the Internet is known as:

enterprise invoice presentment

and payment.

online accounts

payable.

electronic data

interchange.

online accounts

receivable.

47-For many firms, presentment and payment processes are all of the following EXCEPT:

costly. time consuming. error-prone. secure.

48-According to a survey by Credit Research Foundation, the major reasons companies

turn to EIPP solutions are all of the following EXCEPT:

elimination of

billing disputes

better customer service for

billing and remittance.

improved data that can lower

invoice processing costs.

improved

cash flow.

49-________ is an EIPP many-to-many model with a third party acting as an intermediary,

collecting or aggregating invoices from multiple sellers and payments from multiple buyers.

ACH network Seller direct Buyer direct Consolidator

50-Among the forms of online B2B payments, ________ is second only to ACH in terms of

frequency of use.

letters of credit purchasing cards CTX Fedwire, or wire transfer

51-All of the following are advantages of using purchase cards EXCEPT:

purchasing departments

report productivity gains.

bills are consolidated

into a single payment.

improved

control. they are widely accepted in

international trade.

52-In global trade, a ________ is a written agreement by a bank to pay the seller, on

account of the buyer, a sum of money upon presentation of certain documents.

letter of credit micropayment bank check trade card payment

53-All of the following are benefits of letters of credit (LCs) EXCEPT:

Payment is assured

if all the terms in the

LC are complied

with.

Credit risk is reduced because

payment is accessed via the

creditworthiness of the issuing

bank.

LCs are cheap

and easy to

establish.

Political risk is reduced

if the LC is confirmed

by a bank in the seller's

country.

54-The current Internet sales tax moratorium in the United States applies to:

all retail sales all B2B clothing, food, and all sales made over the Internet if the

made over the

Internet.

sales

only.

pharmaceuticals only. seller has no physical presence in the

state where the buyer lives.

55-Many B2C and B2B businesses rely on specialized third-party software and services to

calculate the taxes associated with a sale because:

of the

complexities.

they verify shipping

addresses.

tax laws rarely

change.

of government

regulations.

Chapter 13 Order Fulfillment

1-The implementation of most EC applications requires the use of support services.

True False

2-Amazon.com initially operated as a totally virtual company, but had to add physical

warehouses with thousands of employees in order to expedite deliveries and reduce order

fulfillment costs.

True False

3-Both EC and traditional retailing are based on the concept of "pull" operations that

begin with an order from a customer.

True False

4-Order fulfillment involves activities such as providing customers with what they have

ordered, delivering orders on time, and providing all related customer services.

True False

5-Front-office operations are the activities that support fulfillment of orders, such as

packing, delivery, accounting, and logistics.

True False

6-Back-office operations are the operations involved in the efficient and effective flow and

storage of goods, services, and related information from point of origin to point of

consumption.

True False

7-The EC order fulfillment process begins when an order is received and verified as being a

real order.

True False

8-In B2C, customers usually validate that they will pay by prepaying using a credit card.

True False

9-When a customer returns items that have been ordered, the series of activities involved in

that return are called return logistics.

True False

10-The order fulfillment processes for B2B and B2C activities are similar.

True False

11-The major difference between e-logistics and traditional logistics is that traditional

logistics deal with the movement of large amounts of materials to a few destinations. E-

logistics shipments typically are small parcels sent to many customers' homes.

True False

12-The inability to deliver products on time is a typical problem in both off-line and online

commerce.

True False

13-The chance of supply chain problems, such as shipping the wrong items, is lower for EC

than for off-line commerce because of more advanced logistics support.

True False

14-Supply chain problems, such as errors in demand forecasting, jeopardize order

fulfillment.

True False

15-Many problems along the EC supply chain stem from two sources: uncertainties in

forecasting demand and the need to coordinate several activities, internal units, and

business partners.

True False

16-Uncertainties in delivery time are a major cause of order fulfillment problems. RFID

can help by locating shipments in real time to minimize delays and enhance customer

service.

True False

17-The B2C order-taking process can be improved when it is done via EDI, EDI/Internet,

the Internet, or an extranet.

True False

18-B2C fulfillment may be more complex than that of B2B because it has at least six

dimensions of complexity rather than only two.

True False

19-High delivery costs are justified only if there is a high concentration of orders from

customers located in close proximity or if the value of the order is large enough.

True False

20-Delivery-value density is a decision support tool that helps determine whether it is

economical to deliver goods to a neighborhood area in one trip. The lower the density value,

the better.

True False

21-According to researchers, culture, top management commitment, and technology

infrastructure lead to CRM success.

True False

22-The integration of ERP and CRM must include low-level data synchronization as well

as business process integration so that the integrity of business roles can be maintained

across systems and workflow tasks can pass between the systems.

True False

23-Benefits of CRM analytics lead to better customer relations in terms of sales and service,

better marketing strategies, lower inventory, and faster delivery. To derive these benefits, it

is necessary to properly collect and analyze relevant customer data.

True False

24-The primary customer-facing applications that support eCRM are self-tracking, FAQs,

and self-configuration.

True False

25-Data mining is an important analytic activity that involves sifting through an immense

amount of data to discover previously unknown patterns that can guide improvements in

order-fulfillment and CRM efforts.

True False

26-The implementation of most EC applications requires the use of all of the following

support services EXCEPT:

infrastructure and technology security manufacturing order fulfillment, delivery, and payment

27-Most EC applications are based on ________ that begin with an order, frequently a

________ order.

pull operations;

standard

push operations;

customized

push operations;

standard pull operations;

customized

28-All services related to making sure a customer gets what he/she ordered within an

acceptable amount of time is called:

logistics. order fulfillment. front-office operations. back-office operations.

29-Packing, delivery, accounting and logistics are examples of:

logistics. back-office operations. front-office operations. order fulfillment.

30-Customer-facing activities or ________ are activities, such as advertising and order

taking, that are visible to customers.

back-office operations order fulfillment logistics front-office operations

31-The Council of Supply Chain Management Professionals defines ________ as "the

process of planning, implementing, and controlling the efficient and effective flow and

storage of goods, services, and related information from point of origin to point of

consumption for the purpose of conforming to customer requirements."

front-office operations back-office operations order fulfillment logistics

32-A typical EC fulfillment process involves all of the following activities EXCEPT:

Checking for in-stock

availability. Just-in-time inventory

management.

Making sure the

customer will pay.

Replenishment and

returns.

33-The administrative activities of order taking and fulfillment involve all of the following

activities EXCEPT:

sales quote. shipment release. order acknowledgment. accounts payable.

34-The major difference between e-logistics and traditional logistics is:

e-logistics deals with the traditional logistics deals traditional logistics e-logistics

movement of large

amounts of materials to a

few destinations.

with movement of large

amounts of materials to a

few destinations.

applies only to

manufacturers.

outsources all

logistics

functions.

35-The inability to deliver products on time is a typical problem:

in both off-line

and e-commerce.

unique to e-

commerce.

in traditional logistics only

because the problem has been

solved in e-commerce.

in global operations, but it is

rarely a problem in domestic

operations.

36-________ are a major source of uncertainty in supply chains.

Internal manufacturing

schedules Demand

forecasts

Inventory delivery

schedules

Foreign currency

exchange rates

37-________ helps locate shipments in real time to minimize delays and enhance customer

service.

3PL RFID ERP CRM

38-Solutions to problems in the supply chain for EC companies are:

usually unique

for each EC

company.

generic across both

EC and traditional

companies.

critical during start-up but

usually become manageable and

insignificant as EC companies

mature.

so complex that most

EC companies cannot

afford to implement

them.

39-Improvements in EC order-taking:

are accomplished

solely through

implementing linkages

with payment systems.

are accomplished

solely through

improvements within

the organization.

may come from within the

organization, from

improved links with

logistics, and through

linkages with payment

systems.

are accomplished

solely through

improved links with

logistics.

40-________ are useful in reducing inventory and decreasing the incidence of out-of-stocks.

Such systems also are useful in maintaining an inventory of repair items so repairs can be

expedited.

ERP

systems Warehouse management

systems

Replenishment

systems

Stockkeeping unit

systems

41-Automated warehouses for B2C companies are designed:

to facilitate the delivery

of small quantities of

product to a very large

number of customers.

to facilitate the delivery

of large quantities of

product to a small

number of customers.

to accommodate much

larger inventory levels

than traditional

warehouses.

to help transition

B2C companies

into B2B

companies.

42-________ are intermediaries that prepare goods for shipping on air carriers, trucks, or

other transport means.

Forwarders Outsourcers Expediters Shippers

43-All of the following apply to global logistics systems EXCEPT:

An increase in

global trading

created a need for

an effective global

logistic system.

The number of partners in such

situations is larger, which

increases the need for

coordination, communication,

and collaboration.

These systems are

secure when the

Internet is the

centric technology

platform.

Order fulfillment

problems tend to be

even larger in longer

supply chains that

cross country borders.

44-The second most often cited reason for customers not buying on the Web is:

not being able to see or try

on a product before buying

it.

the lack of a good

return mechanism.

concern that ordered

products won't be delivered

on time.

concerns

about fraud.

45-________ is an innovative order fulfillment strategy in which components for a product

come from two or more physical locations.

Leveraged shipments Merge-in-transit Order postponement Rolling warehouse

46-A decision support tool that helps determine whether it is economical to deliver goods to

a neighborhood area in one trip is:

CRM model. ERP model. SCM analysis. delivery-value density.

47-________ recognizes that ________ are the core of a business and that a company's

success depends on effectively managing its relationships with them

Customer relationship

management; customers

Vendor relationship

management; vendor

Partner relationship

management; partners

Supplier relationship

management; suppliers

48-Major limitations of CRM include all of the following EXCEPT:

it is difficult to support

mobile employees with

some CRM applications.

it is difficult to

justify the

expense of

CRM.

it is difficult to

develop competitive

CRM applications.

it requires integration with a

company's other information

systems, which may be

difficult and expensive.

49-Metrics in customer service and CRM include all of the following EXCEPT:

site availability. on-time order fulfillment. product quality. response time.

50-Data analytics are a valuable tool because it can provide all of the following EXCEPT:

what-if scenarios. financial reporting customer segmentation groupings. profitability analysis.

51-Medium and large corporations organize and store data in a central repository called

a(n) ________ so that it will be easy to analyze later on, when needed.

knowledge system data base expert system data warehouse

52-Automating inquiry routing and answering queries requires ________ which can be

generated from historical data and from human expertise and stored for use whenever

needed.

knowledge forecasts analytics information

53-To overcome the problem of finding buyers or sellers online, a company may use

________ such as B2Business.net or Yahoo! Small Business.

intelligent agents search engines directory services industry-focused newsletters

54-TRUSTe, BBBOnline, and Ernst & Young's trust service are used both in B2C and B2B

for all of the following reasons EXCEPT:

One cannot touch the

seller's products.

Trust is critical

for EC. Companies must outsource

trust services.

Buyers may not be

known to sellers.

55-The major reasons why many companies prefer to outsource some of the support

services include all of the following EXCEPT:

Lack of experience or

resources needed for many of

the support services.

The desire to

concentrate on the

core business.

For a sustainable

competitive

advantage.

The need to have

services up and

running rapidly.

Chapter 14 E-Commerce Strategy and

Global EC

1-Strategies are based on performance indexes that are used as targets and measures of

success.

True False

2-An organizational strategy is a detailed plan for how a business is going to accomplish its

mission, what its goals should be, and what plans and policies it will need to accomplish

these goals.

True False

3-Any contemporary strategy-setting process must include the Internet.

True False

4-In Porter's view, the majority of the Internet's impacts on the five competitive forces

have been positive.

True False

5-Researchers have suggested that more extensive strategic information systems planning

in an uncertain environment produces greater planning success.

True False

6-No matter how large or how small the organization, the strategic planning process forces

corporate executives, a company's general manager, or a small business owner to assess the

current position of the firm, where it should be, and how to get from here to there.

True False

7-In the strategy initiation phase, the organization examines itself, its environment, and the

potential contribution that the Internet and other emerging technologies can make to the

business.

True False

8-A value proposition is actually a financial statement that summarizes the annual revenue

and profit targets.

True False

9-The two major and successful Internet-based businesses Google and eBay have similar

core competencies.

True False

10-SWOT analysis is one method for scanning the business environment to collect and

interpret relevant information about direct competitors, indirect competitors, and potential

competitors.

True False

11-In the strategy implementation phase, general long-term plans are developed for

carrying out the projects that had been agreed on in the strategy formulation phase.

True False

12-Resource allocation refers to the processes of making the selected applications and

projects a reality, such as hiring staff; purchasing equipment; licensing, purchasing, or

writing software; and contracting vendors.

True False

13-Strategy assessment is the continuous evaluation of progress toward the organization's

strategic goals, resulting in corrective action and, if necessary, strategy reformulation.

True False

14-The basic method in scenario planning is that a group of analysts generates simulation

games for policy makers. The games combine projected factors about the future, such as

demographics, geography, and industrial information with plausible alternative social,

technical, economic, and political trends.

True False

15-A business plan is a tool that is an alternative to narrowly focused financial assessments

by measuring organizational performance in four areas: finance, customers' assessments,

internal business processes, and learning and growth.

True False

16-The primary reasons for writing a business plan are to acquire funding and

nonfinancial resources, to recruit senior management, and to force the business owner to

think ahead, set achievable goals, seek out and analyze competitors.

True False

17-Entrepreneurs in start-up companies use business plans to get funding from investors,

such as a venture capitalist or a bank.

True False

18-The information systems strategy is set primarily by determining what information and

associated information systems are required to carry out the business strategy.

True False

19-In e-commerce, evidence shows that there is always a real advantage to being the first

mover in an industry or market segment.

True False

20-The disadvantages a brick-and-mortar company faces by creating an independent

division are that it may be very costly, risky, or both.

True False

21-Disposing of excess equipment was the motivation behind the implementation of

forward e-auctions at General Motors. This is an example of a technology-driven strategy

because GM had a specific problem that an EC application could solve.

True False

22-In a click-and-mortar business, the allocation of resources between off-line and online

activities can create difficulties, especially in sell-side projects because the two activities

could be competitors.

True False

23-Having a strong project champion on an e-commerce project is seldom important to the

success of the project because of inter-personal conflicts caused by a powerful champion.

True False

24-The purpose of GlobalNetXchange, which was founded by major retailers such as Sears,

was to reduce procurement costs and product prices for its members while making the

purchase process more efficient.

True False

25-At the implementation stage, firms may need to dramatically change business processes

to accommodate the changes an EC strategy brings. In those instances, business process

reengineering (BPR) is usually necessary.

True False

26-For ________ companies, it may be even more important to change strategies quickly.

service retail traditional pure play

27-Capabilities of the Internet that have made it more difficult for companies to capture

profits include all of the following EXCEPT:

The Internet makes

information widely

available.

The Internet makes

it easier to make

secure payments.

The Internet reduces the

difficulty of purchasing,

marketing, and

distribution.

The Internet allows buyers

and sellers to find and

transact business with one

another more easily.

28-Projections of the business technological, political, economic, and other environments

are called:

competitive intelligence value propositions forecasts. SWOT analysis

29-The unique combination of resources, experiences, and expertise within a particular

firm is called their:

corporate strategy. competitive advantage. functional strategy. core competencies.

30-All of the following are elements of a company's strategy EXCEPT:

forecasts. day-to-day operations. competitor analysis. company analysis.

31-All of the following about the strategic planning process are true EXCEPT:

The process of The strategic The strategic planning process The strategic

developing a

strategy maybe

even more

important than the

strategy.

planning process

is cyclical and

continuous.

forces corporate executives, a

company's general manager, or a

small business owner to assess the

current position of the firm, where it

should be, and how to achieve

objectives.

planning process

begins with

strategy

formulation.

32-A specific outcome of the strategy initiation phase is the ________, which includes the

vision, mission, value proposition, goals, capabilities, constraints, strengths, and

weaknesses of the company

functional strategy core competency company analysis value proposition

33-A specific outcome of the strategy initiation phase is a clear statement of the company's

________, which summarizes the customer segment, competitor target, and the core

differentiation of one's product from the offerings of competitors.

functional strategy core competency value proposition company analysis

34-Google's ________ is its expertise in information search technology.

core competency company analysis functional strategy value proposition

35-Many of the outcomes from the first two phases of the strategic planning process, such

as a determination of goals, competitor analysis, strategic opportunities, and risk analysis

come together in a ________.

SWOT plan technology audit value proposition business plan

36-________ is the process of making the selected applications and projects a reality by

hiring staff; purchasing equipment; licensing, purchasing, or writing software; and

contracting vendors.

Strategy assessment Project management Resource allocation Project planning

37-An analytical tool in which a company looks for points of differentiation between

competitors and itself is called:

competitor analysis grid strategy assessment scenario planning SWOT analysis

38-________ is the continuous evaluation of progress toward the organization's strategic

goals, resulting in corrective action and, if necessary, strategy reformulation.

Strategy assessment Competitor analysis grid Scenario planning SWOT analysis

39-A management tool that assesses organizational progress toward strategic goals by

measuring performance in a number of different area is:

SWOT analysis. balanced scorecard. Web analytics. BCG growth-share matrix.

40-After four years in business, a magazine publisher decides to add the online distribution

of its magazine to its existing traditional publishing business. The company would need to

develop a:

business case. business strategy. business plan. business metric.

41-All of the following are situations when a business plan should be done EXCEPT:

When an existing

company is planning

to create a separate

division.

When an existing

business is

deploying a CRM

system.

When an existing

company is planning to

launch the company in a

new direction.

When a new business

is seeking start-up

funds and other

resources.

42-Which of the following about business plans and business cases is NOT correct?

One difference is that the business

plan concentrates on the viability of a

company, whereas a business case

assesses both viability of the project

and the fit of the initiative with the

firm's mission and goals.

The audiences are

the same senior

management and the

board or directors.

The content of

a business case

is similar to

that of a

business plan.

The purposes are

the same to

justify a specific

investment of

funds.

43-The risks of being a first mover include all of the following EXCEPT:

the risk that

the move

the high cost of

pioneering EC

over the long run first

movers are substantially

the chance that a second wave of

competitors will eliminate a first

will be too

late.

initiatives. less profitable than

followers.

mover's lead through lower cost

and innovation.

44-Factors that determine whether a first mover succeeds or fails in the EC marketplace

include all of the following EXCEPT:

the nature of the

product.

whether the company can be the

best in the market.

the size of the

opportunity. the speed of

market entry.

45-The most efficient way to expand an organization's scope is:

by expanding the

firm's appeal to a

new set of

customers.

by increasing the

size or scale of

the business.

to introduce new products or

services into new or existing

markets without increasing

production facilities or staff.

to buy a company with

complementary

products or services.

46-Separating a company's online operations into a new company makes sense in each of

the following situations EXCEPT:

when the subsidiary can

be created without

dependence on current

operations and legacy

systems.

when the company is

unable to form new

alliances, attract new

talent, or raise

additional funding.

when a new business

model needs to be

developed apart from the

constraints of current

operation.

when the volume

of anticipated e-

business is large.

47-Rite Aid, a click-and mortar firm, enhanced its EC future by:

Creating a separate

company.

Creating an online

brand.

Forming a joint

venture. Buying an equity stake in a

existing EC company.

48-Incorrect approaches to EC strategy selection include all of the following EXCEPT:

indiscriminately funding many

projects and hoping for a few

winners.

"trend-surfing," or following

the crowd to the newest and

most fashionable idea.

betting it all in a

single, high-stakes

initiative.

using a late-

mover

strategy.

49-The most dangerous risk to a company engaged in e-commerce is:

customer and business partner

risk. threat posed by hackers. negligent loss of data. business risk.

50-All of the following determine the degree of collaboration between off-line and online

activities in a business EXCEPT:

the pricing

strategy.

the use of innovative processes

that support collaboration.

the ability of top management to

introduce change properly.

corporate

culture.

51-The ________ pricing strategy means adding up all the costs involved, such as material,

labor, rent, overhead, and so forth, and adding a percentage mark-up as profit.

cost-plus revenue markup price percentage competitor model

52-Internet technologies can provide consumers with easier access to pricing information,

which increases their bargaining power. To remain competitive and profitable, sellers need

smarter pricing strategies, which include all of the following strategies EXCEPT:

greater precision in

setting prices.

more adaptability in

changing prices. reducing

prices.

new ways of customer segmentation

for differentiated pricing.

53-Implementing EC often requires significant investments in infrastructure. Therefore, a

good way to start is to undertake ________.

a multi-divisional EC

project

a large, non-trivial EC

project one or a few small EC

pilot projects

a single division EC

project

54-A ________ is a form of business alliance composed of several business partners that

share the costs and resources for the development or production of a product or service.

supply chain temporary corporation co-opetition virtual corporation

55-The most important objectives of strategic assessment are all of the following EXCEPT:

Determine if the EC

strategy and projects are

still viable in the current

environment.

Measure the extent to

which the EC strategy and

ensuing projects are

delivering what they were

Reassess the initial

strategy in order to

learn from mistakes

and improve future

Identify what

competitors are

doing to avoid head-

on competition.

supposed to deliver. planning

Chapter 15

1-From 1995 through 2000, many EC projects and start-up companies were funded with

little analysis of their business viability or finances.

True False

2-The result of the rush to invest in EC projects and start-up companies was the 2001—

2003 "dot-com bust," when hundreds of EC startups went out of business and the stock

market crashed.

True False

3-After the dot-com bust, most IT executives acquired the knowledge and tools to do ROI

calculations on proposed EC investments.

True False

4-One reason why EC justification is needed is that companies now realize that EC is not

necessarily the solution to all problems.

True False

5-According to a CIO Insight report, EC justification decreases the credibility of EC

projects.

True False

6-One basic way to categorize different EC investments is to distinguish between

investment in infrastructure and investment in specific EC applications.

True False

7-Infrastructure investments are made for the short-term because of frequent technological

changes.

True False

8-Cost-benefit analysis is frequently assessed by return on investment (ROI), which is also

the name of a specific method for evaluating investments.

True False

9-All EC investments need to be formally justified to insure that they align with the

company's competitive strategy.

True False

10-Metrics are used to describe costs, benefits, or the ratio between them and need to be

defined properly with a clear way to measure them.

True False

11-Key performance indicators (KPI) are used to qualitatively track critical metrics or

success factors.

True False

12-A major difficulty in justifying EC projects is that many costs and benefits are

intangible and therefore very difficult to measure.

True False

13-Creating a competitive advantage, providing a benefit to society, and improving the

company's image are examples of tangible benefits that might be realized from an EC

project.

True False

14-Cannibalization occurs when a new EC initiative produces substantial online sales, but

traditional sales fall such that no increase in total revenue occurs.

True False

15-The results of any investment justification in eCRM depend on the time frame used to

measure changes in productivity.

True False

16-Because many EC investments in eCRM take five to six years to show significant

positive results, real productivity gains often do not get measured correctly.

True False

17-In preparing the business case for EC investment, managers should examine the

potential additional revenues that are expressed in the revenue models, such as increased

revenues via products or services from a larger global market because of more effective

product marketing on the Web.

True False

18-The ROI method uses a formula that divides net revenues by the initial cost. The result

is a ratio that measures the ROI for each year or for an entire period.

True False

19-In an NPV analysis, analysts convert future values of benefits to their present-value

equivalents by discounting future cash flows at the risk-free rate set by the Federal Reserve

Bank.

True False

20-Given the diversity of activities involved in e-procurement, the metrics used to measure

the value of e-procurement must reflect how well each process is accomplished; and take

into consideration whether the company is a buyer or seller.

True False

21-According to recent surveys of eCRM applications, there are been mixed payoffs, but a

majority of companies have demonstrated a significantly positive ROI for their eCRM

investments.

True False

22-Large companies often have several integrated intranet and other information systems

that determine the success of a Web portal. Thus, the justification for a Web portal must

focus on both business ROI and technology ROI.

True False

23-To comply with the Sarbanes-Oxley Act, public companies must document every

internal process and external effect that will have an impact on their financial health,

which provide a robust foundation from which to develop a budget.

True False

24-Critical elements that can affect the value of EC across cultures are perceived trust,

consumer loyalty, regulation, political influences, and even the content of online ads.

True False

25-Developing economies often face power blackouts, unreliable telecommunications

infrastructure, undependable delivery mechanisms, and a relatively few customers who

own computers and credit cards. These limitations can be overcome when predicting EC

investment payoffs by using a combination of break-even analysis and NPV.

True False

26-CIOs need to effectively communicate the value of proposed EC projects in order to

gain approval for all of the following reasons EXCEPT:

Some large companies,

and many public

organizations, mandate a

formal evaluation of

Companies now

realize that EC is

not necessarily the

solution to all

Demand for expanding

or initiating e-business

projects is no longer

strong so there are

The success of EC

projects may be

assessed in order to

pay bonuses to those

requests for funding. problems. fewer requests for

funding.

involved with the

project.

27-One basic way to categorize different EC investments is to distinguish between

investments in infrastructure and investment in specific EC applications because benefits

from infrastructure investments:

have a low

return. are made for the long-

term.

depend on the EC

applications.

are very

complex.

28-The basic reasons that companies invest in IT and EC are all of the following EXCEPT:

to increase customer

satisfaction and retention.

to improve business

processes.

to reduce time-

to-market. to justify new marketing

campaigns.

29-Not all EC investments need to be formally justified. All of the following are cases where

formal evaluation may not be needed EXCEPT:

When the value of the

investment is relatively

small for the

organization.

When the EC project is

mandated and must be

done regardless of the

costs and benefits.

When the relevant data

are not available, are

inaccurate, or are too

volatile.

When competitors

have made that

type of investment.

30-Metrics are used to describe all of the following EXCEPT:

standards. the ratio of costs to benefits. costs. benefits.

31-Productivity benefits from using EC are difficult to measure because:

there is no time

lag in EC gains.

qualitative benefits

do not count.

EC gains in certain areas of the

company may be offset by losses in

other areas.

the payoffs are

too short.

32-The relationship between EC investment and organizational performance is:

shared with other investments. direct. not measurable. indirect.

33-EC costs and benefits can be classified into two broad categories:

short-term and capital. tangible and intangible. direct and routine. operational and strategic.

34-The New York Metropolitan Transit Authority (MTA) did not need to open another

airport for almost two decades, even though air traffic had tripled because of productivity

gains derived from improved IT systems. IT systems added by the MTA played critical

roles in ticket reservations, passenger and luggage check-in, crew assignment and

scheduling, runway maintenance and management, and gate assignments. This case

illustrates that:

Tangible benefits can

be complex, yet

substantial.

Tangible costs can be

high, yet payoffs can be

achieved quickly.

Intangible benefits

can be complex, yet

substantial.

Intangible costs can be

high, yet payoffs can be

achieved quickly.

35-An important category of intangible benefits is ________ factors that include comfort to

employees, impact on the physical environment, changes to the power distribution in an

organization, and preventing invasion of the privacy of employees and customers.

ecosystem transactional social subsystem net-enhanced

36-In B2C, an example of a tangible EC metric from the buyer's perspective is:

ease of use of EC. profit per customer. cost/price of the product. convenience in purchasing

37-For Governments, an example of an intangible EC metric is:

lower tax

rates.

increase in participation in government

programs.

risk

reduction. reelection of

candidates.

38-The major steps in the process of justifying large-scale EC and IT projects include all of

the following EXCEPT:

Lay an appropriate

foundation for analysis

with your vendor, and

then conduct your ROI.

Document and verify all

figures used in the

calculation. Clarify all

assumptions.

Be careful not to over-

estimate cost and under-

estimate benefits (a

tendency of many

managers).

Do not leave out

strategic benefits,

including long-

term ones.

39-Types of costs and cost issues that need to be considered in justifying EC investments

include all of the following EXCEPT:

initial upfront costs. the allocation of indirect costs. opportunity costs. system operating costs.

40-Traditional methods for evaluating EC investments include all of the following

EXCEPT:

Discount rate ROI NPV Break-even or payback period

41-Dan Welch, who owns three World Cup Coffee shops in Portland, Oregon, estimates

that his free Wi-Fi network has added 10 percent to his overall revenue. Welch credits Wi-

Fi consumers with spending three times as much on food compared with the average

consumer. This is an example of:

technology ROI. business ROI. technology IRR. business NPV.

42-Pouilly's Poodle Shop wants to produce monthly cash flows from its Internet Doggie-

Cam investment. The most appropriate method for assessing this investment is:

Break-even analysis. Internal rate of return (IRR). Total cost of ownership. Payoff.

43-By calculating the difference between TCO and TBO, one can compute the ________ of

an IT investment.

Internal rate of return (IRR) Total cost of ownership Payoff Break-even analysis

44-The disadvantage of the NPV method for evaluating EC and IT is:

it may be difficult to

classify outlays as expenses

or investments.

the true benefits

are difficult to

measure.

it is difficult to compare

projects of unequal lifes

pans or sizes

it assumes

reinvestment at the

same rate.

45-The following direct metrics indicate progress in e-procurement EXCEPT:

increased order

fulfillment rate.

decreased number of rejects

received from suppliers.

increased on-time

deliveries. reduced

inventory costs.

46-Justifying information security projects:

should focus on

defending against

external threats such

as hackers and

malware.

is not needed because it is well-

known that preventing network

security problems is less labor

intensive than cleaning up virus

infections.

is not done

because ROI

calculators are not

available.

should be done

because employee

security training is

usually poorly done.

47-The average-cost curve (AVC) of physical products and digital products:

are different because the AVC of

digital products declines as quantity

increases forming a L-shape, while

the AVC of physical products is U-

shaped.

are both

L-

shaped.

are both

U-

shaped.

are different because the AVC of

physical products declines as

quantity increases forming a L-

shape, while the AVC of digital

products is U-shaped.

48-When computing agency cost, companies should consider:

only production-related

costs and ignore

transaction costs.

ignore production-

related costs and

transaction costs.

only transaction costs

and ignore production-

related costs.

both production-

related costs and

transaction costs.

49-Transaction costs include all of the following EXCEPT:

Search costs

incurred by buyers

and sellers in

locating each other

and specific

products and

services.

Production

costs incurred

for labor and

overhead.

Negotiation costs result from

meetings, communication-

related expenses, exchanges of

technical data or brochures,

entertainment, and legal costs.

Monitoring costs incurred

when buyers and sellers

make sure that the

exchange proceeds

according to the terms

under which the sale was

made.

50-McAfee allows users of its VirusScan virus-detection software to automatically update

the latest security patches online. This is an example of ________ to attract customers who

value this automatic update.

product or service differentiation. core competency. competitive advantage. agility.

51-A Web-based seller of CDs carefully monitors the prices charged by its competitors for

identical products. This company has the ability to change a given price within three

minutes in response to changes by competitors. This is an example of EC:

competitive advantage. agility. core competency. product or service differentiation.

52-All of the following are critical success factors (CSFs) of the Old Economy EXCEPT:

Create new partnerships, stay

with core competency.

Deliver high-

value products.

Build market share to get

economies of scale.

Compete to sell

product.

53-As a company moves to incorporate an online presence with its traditional brick-and-

mortar operation, it adds the costs related to training for all personnel in the capabilities of

the EC system and a new advertising campaign to announce its new site to the costs directly

associated with building the new Web presence. In this case, training and advertising are

examples of:

direct costs. transaction costs. complementary investments. indirect costs.

54-One of the strengths of EC is the ease with which its adopters can reach a global

population of consumers. However, EC-driven businesses must consider the critical

elements affecting the value of EC across cultures. Those elements include all of the

following EXCEPT:

perceived trust. delivery delays. political influences. consumer loyalty.

55-All of the following apply to EC in developing economies EXCEPT:

The potential volume of

transactions in developed

countries can make EC

investments more attractive

for established firms than

new firms because

established firms have

already recovered the costs

of their IT infrastructures.

Developing

economies struggle

with various issues

that create too

many business and

technology risks to

justify investment

in those economies

at this time.

Developing economies

often face power

blackouts and unreliable

infrastructure and

delivery mechanisms

creating limitations that

make it difficult for firms

to predict whether EC

investments will pay off,

and when.

Developing

economies, such as

China and India,

represent a

significant

opportunity for EC

to connect

businesses to

customers, as well

as other businesses.

Chpater 16

1-Unlike the brick-and-mortar marketplace, the failure rate for online companies is low.

True False

2-Online businesses may be pure play companies or click-and-mortar companies that add

online projects, such as e-procurement or selling online, as additional marketing channels.

True False

3-To create successful entrepreneurial ventures in EC, Maier suggests that starting small

with many founders is the best option.

True False

4-The first step is creating a new company is to identify a consumer or business need in the

marketplace and an innovation to address that need.

True False

5-Many good ideas and realistic initiatives have failed because of poor execution due to the

lack of sufficient business skills by the owners or principals of the business.

True False

6-As a general guideline, although virtually anything is available for sale on the Internet,

the degree of sales success is somewhat dependent on the type of item or service being

offered for sale and how it can be delivered.

True False

7-Medium and large businesses, or those seeking external funding, must have an informal

business plan.

True False

8-The primary reason an entrepreneur writes a business plan is to acquire funding from a

bank, an angel investor, a venture capitalist, or the financial markets.

True False

9-Some entrepreneur may simply invest personal funds from savings, personal lines of

credit, or a house mortgage since these sources of "bootstrap funding" are typically enough.

True False

10-When the entrepreneur's personal funds are insufficient, the entrepreneur will go to

friends, family members, or to financial institutions.

True False

11-An important source of financial support or direct funding, for pre-VC firms is an

incubator.

True False

12-Venture capitalists tend to invest in companies that have identified what seems to be an

outstanding business opportunity, have taken some action to make the opportunity happen,

such as written a new software application or secured a patent , and need an infusion of

funds and management expertise to expand and launch the business.

True False

13-There is a serious downside for start-up businesses that acquire venture capital because

they lose control over the business.

True False

14-Once the company is well known and successful, it can go to a stock exchange to raise

money via an initial public offer or IPO.

True False

15-Organizational transformation is a comprehensive concept that implies not only a major

change, but also a sharp break from the past.

True False

16-Business process management (BPM) systems monitor the execution of the business

processes so that managers can analyze and change processes in response to data, rather

than on just a hunch.

True False

17-Transforming an existing business to an e-business means a manager must change

business processes, but not the way people work or communicate.

True False

18-An informational Web site provides opportunities for the customers and the business to

communicate and share information.

True False

19-Selecting a domain name is an important marketing and branding consideration for a

business because it will be the business's online address and create an identity for the

business.

True False

20-Up-to-the-minute dynamic content is what attracts new and returning customers

("eyeballs") and makes them stay longer ("stickiness"), which builds customer loyalty.

True False

21-Because podcasts are audio-based media files, it enables companies to deliver audio-

specific content, including music, speeches, radio-style presentations, and more.

True False

22-Amazon.com offers personalize content by tracking visitors' behavior via cookies, which

is used to generate dynamic Web pages that recommend products based on previous

purchases and recently viewed items. Amazon.com offers this personalized content because

it is very inexpensive and does not impact performance.

True False

23-Web designers execute successful site navigation through consistency and through

navigation aids such as a navigation bar, a navigation column, a site map, and search tools.

True False

24-Web site usability means that people who use the Web site can do so quickly and easily

to accomplish their tasks and may also consider such factors as cost-effectiveness and

usefulness.

True False

25-Card-not-present (CNP) transactions increase the risk and uncertainty of online

transactions, which increases transaction fees to offset the increased risks.

True False

26-When creating a new business, the first step is to:

acquire financing needed

to make the business

successful.

investigate all

existing

opportunities.

identify a consumer or

business need that isn't

presently being met.

write a

business case

or plan.

27-The principle reason for writing a business plan is to:

provide strategic

direction to

employees.

acquire

external

funding.

provide an operational

framework for the

business.

help the founders remember

what they are trying to

accomplish.

28-The key difference between an e-business plan and a traditional business plan is that the

entrepreneur must:

develop a

ten-year

plan.

understand that the

Internet is a unique

sales channel.

understand all aspects of

the technology required to

implement the plan.

understand that traditional

rules do not apply when doing

business on the Internet.

29-The difference between a business plan and a business case is:

a business case

is a part of

every business

plan.

all new businesses should have a

business plan, but only existing

businesses planning a major EC

or IT initiative should develop a

business case.

all businesses need a

business case, but only

new businesses need a

business plan.

business cases are

brief and general,

while business plans

are long and

detailed.

30-A(n) ________ is a wealthy individual who contributes personal funds and possibly

expertise at the earliest stage of business development.

incubator venture capitalist angel entrepreneur

31-A(n) ________ is a company, university, or nonprofit organization that supports

promising businesses in their initial stages of development.

incubator angel entrepreneur venture capitalist

32-________ is money invested in a business by an individual or a group of individuals in

exchange for equity in the business.

start-up funding operating capital venture capital advance funding

33-The greatest difficulty in dealing with venture capital is:

finding the money a

venture capitalist will

require.

finding a willing

venture capitalist.

the loss of control a

venture capitalist

demands.

relocating the

business to an

incubator.

34-The relationship between stock price and when an investor invests is:

IPO investors will

pay the highest price

per share.

the entrepreneur will pay

the highest price per

share

the venture capitalist

will pay the highest

price per share.

the angel investor will

pay the highest price

per share

35-Chaplin's Pet Store has been in business for many years. Chaplin, the present owner,

decides to open an online sales channel where he can advertise and sell the same gourmet

pet food. This is an example of adding:

a portal. a storefront. e-procurement. a reverse auction

36-Reprise Electronics, a conglomerate that manufactures and sells all kinds of electronic

goods under several brand names, currently has separate Web sites for each of its brands.

The company decides to bring all of the Web sites together through a single site that, in

addition to providing links to the brand pages, will also provide general information about

how to select electronic merchandise and informational pages about the Reprise company

today and its management team. This is an example of adding:

a reverse auction. e-procurement. a portal. a storefront.

37-In an organizational transformation:

the change may affect

only one or a few of

the functional areas

of the business.

there is a change in

outlook, but rarely a

change in procedures or

investment in

infrastructure.

there are incremental

changes to the ways

things have always

been done.

there is always a sharp

break with the past and

every aspect of the

business will probably

change.

38-A(n) ________ Web site does little more than provide information about the business

and its products.

dynamic informational transactional interactive

39-A major entertaining company has four studios that have been in the same location for

more than ten years. The company includes a page on its Web site with addresses, phone

numbers, and general e-mail addresses for each of these studios. None of this information

has changed since the Web site was developed. This is an example of ________ content.

dynamic organizational functional static

40-Secondary content that offers a coupon, rebate, or special service is called:

cross-selling. up selling. comment. promotion.

41-Reviews, testimonials, expert advice, or further explanation about the product are

called:

comment. promotion. cross-selling. up selling.

42-The ________ is how Web pages are organized, labeled, and navigated to support

browsing and searching.

Web design information architecture Web site map Web layout

43-Creating content that offers upgraded or more expensive versions of the product is

called:

comment. promotion. up selling. cross-selling.

44-One of the first decisions to be made in building a Web site is:

whether to provide personalized

content who will

host it.

the domain

name

how to protect the Web site from

hackers

45-A(n) ________ is an exact duplicate of the original Web site physically located on a Web

server on another continent.

backup site a download site mirror site a hot site

46-The Web hosting option under which the business acquires the hardware, software,

staff, and dedicated telecommunications services needed to host a Web site is called:

mirror hosting self-hosting. using a storebuilder. ISP hosting.

47-The ________ is the name-based address that identifies an Internet-connected server.

URL name host name domain name IP address

48-Content not available anywhere else on the Web is called:

restricted content. reserved content. premium content. commodity content.

49-The concept of consistency in Web site design includes:

making sure the

messages sent to

customers who contact

the company are

consistent.

making sure customers

are treated consistently

when they contact

customer service.

making sure Web

pages look the same

no matter which

browser a customer is

using.

making sure all

visitors consistently

find what they are

looking for.

50-All of the following are advantages of building Web sites internally EXCEPT:

it allows the

company to use in-

house expertise.

it provides the

fastest speed to

market.

it allows the company to

protect proprietary

technology.

it allows the company to exert

greater control on the process

and the resulting site.

51-Banks are more selective about who gets an account for accepting credit cards online

because

online transactions do

not produce much

revenue for banks

dot com failures have made

banks less willing to work

with online companies.

fees are higher

for online

processing

CNP transactions

are less secure and

riskier.

52-In addition to providing an easy mechanism for buying books, the Amazon.com Web

site is easily searchable by book title and author. It also has book reviews and suggests titles

based on previous purchase activity. These enhancements make the Amazon site a favorite

for readers. This is an example of:

internal Web site promotion search engine optimization using a meta tag. CNP

53-________ offers one of the most popular storefront packages at with three levels of

merchant solutions: starter, standard, and professional.

Google eBay Yahoo! Amazon.com

54-Options for acquiring storefronts include all of the following EXCEPT:

Build from

scratch.

Build them from

components

Build from templates or

storebuilders. Join a

mall.

55-Before choosing the appropriate Web site development option, you need to consider all

of the following issues in order to generate a list of requirements and capabilities EXCEPT:

What might be the

reaction of competitors?

Can customers

place orders

online?

What kinds of products or

services will the business sell

online?

Who are the target

customers?

Chapter 17

1-For many e-businesses, a majority of their customer online traffic comes from search

engines.

True False

2-All marketing methods used to increase the ranking of a company's Web site in the

search results are ethical.

True False

3-Companies use search engine marketing (SEM) methods to increase their chance of

"getting found" among competing Web sites.

True False

4-The volume of e-mail spam has decreased because of the widespread use and

effectiveness of antispam software and ISP spam filters.

True False

5-Spam sent to blogs, cellular phones, or other types of messaging media to promote

products or services is called media spam.

True False

6-Web pages that have been created to trick search engines into offering poor-quality

results are referred to as search engine spam.

True False

7-Acts or activities that are unethical are also illegal.

True False

8-Creations of the mind, such as inventions, literary and artistic works, and symbols,

names, images, and designs, used in commerce are known as private property.

True False

9-Questions or disputes about the legality of spam can be resolved easily by referring to

relevant laws.

True False

10-Legal precedents are decisions by judges that may be used as standards in similar legal

cases that follow.

True False

11-Political spam, regardless of its content, is legal in the United States because it is a form

of speech protected by the Constitution.

True False

12-Significant changes in the nature of business or crimes lead to new laws because laws

must remain responsive to new threats or abuses.

True False

13-Due process is a legal claim that others not interfere with a protected interest, such as

privacy, intellectual property, or free speech.

True False

14-Because of intellectual property law, the recording industry can file lawsuits for

copyright infringement against YouTube or MySpace if it profits from the recording

industry's property without authorization and compensation.

True False

15-A company can be sued for libel if its EC site contains a defamatory or untrue statement

that causes damage to a person or another company.

True False

16-A corporate code of ethics should specify whether the company allows employees to set

up their own Web pages on the company intranet and the rules for private e-mail usage

during working hours.

True False

17-EC web site content needs to be reviewed by attorneys with cyber law expertise to

ensure that there nothing is unethical or illegal and that all required statements and

disclaimers are properly included.

True False

18-Ethical principles that apply to the collection and use of personal information, such as

notifying customers of information practices before collecting it, do not apply to

information collected in e-commerce.

True False

19-As a defense against abusive trackback tactics by profit-motivated spammers,

trackback spam filters are implemented in blog publishing systems.

True False

20-Blocking tools cannot stop adware or software that gets bundled with other popular

applications, such as Kazaa, from delivering pop-up ads because they originate from the

desktop, and not the browser.

True False

21-Unlike hate sites that can cause problems for corporations or lead to lawsuits, fan sites

are beneficial and welcomed by the entertainment industry.

True False

22-Online merchants reject about 10 percent of incoming orders because of suspicions of

fraud; and about 3% of accepted orders turn out to be fraudulent.

True False

23-Electronic signatures improve EC by helping to distinguish between legitimate and

fraud transactions and build trust and predictability needed by parties doing business

online.

True False

24-Several public organizations and private companies attempt to protect consumers and

build users' trust and confidence in the Internet through a seal of quality, such as

Trustmark and BBBOnline.

True False

25-Online sellers can better protect themselves against fraud by requiring customers whose

billing address is different from the shipping address to call their bank and have the

alternate address added to their bank account.

True False

26-Approximately what percent of Internet shoppers use search engines to find products

and services?

75% 50% 10% 25%

27-Sending spam that disguises a sales pitch to look like a personal e-mail so that it will

bypass e-mail spam filters violates the:

Controlling the Assault of

NonSolicited Pornography and

Marketing (CAN-SPAM) Act.

Computer Fraud

and Abuse Act

(CFAA)

Children's Internet

Protection Act

(CIPA)

First

Amendment

28-To defend against unethical and illegal business tactics that exploit EC operations,

Google, MSN Search, and Yahoo have turned to all of the following aggressive measures

except:

Banned

violators'

sites.

Built algorithms that check for and

penalize deceptive rank-boosting

practices.

Implemented spam site

reporting systems. Implemented

honeypots.

29-Having control over the collection, storage, and dissemination of personal information is

included in the category of:

duties rights privacy property

30-A decision by a judge that may be used as a standard in similar cases that follow is

referred to as:

legal precedent common law intellectual property tort

31-Critics of political spam are against its use because they believe that:

all spam is a nuisance, clogs mail

servers, and creates security risks

it increases candidates'

dependence on wealthy

fundraisers,

it is

illegal

it leads to political

favoritism

32-Due process is

a legal obligation not

to interfere with a

protected interest

a guarantee of basic

fairness and fair

procedures in legal

action.

a legal claim that others

not interfere with a

protected interest.

a set of enforceable

rules and

regulations.

33-A duty is

a legal obligation not to

interfere with a

protected interest

a legal claim that others

not interfere with a

protected interest.

a guarantee of basic

fairness and fair

procedures in legal

action.

a set of enforceable

rules and

regulations.

34-Property rights relevant to e-commerce include all of the following EXCEPT:

The right to bring

criminal charges against a

violator.

The right to benefit,

transfer, or sell the

property.

The right to exclude

others from the

property.

Control of the use

of the property.

35-A music company can file a ________ against YouTube and MySpace for any

interference with the ability to profit from its IP or for profiting from the recording

industry's property without authorization and compensation

lawsuit or civil charge nuisance charge negligence charge criminal charge

36-________ enable an organization that has suffered a loss due to spammers to bring a

lawsuit against spammers responsible for the loss.

Civil laws CFAA Common laws Criminal laws

37-Intellectual property law is the area of law that is associated with each of the following

EXCEPT:

visual and

performing arts.

electronic databases,

advertising, and video

games.

patent law, copyright law,

trademark law, and trade secret

law.

business

contracts

38-Which of the following is true about copyrights?

The entertainment

industry, led primarily by

the Motion Picture

Association of America

The Recording Industry

Association of America

(RIAA) uses lawsuits

against universities, but

In the United States,

after work is created

and in a tangible

form such as through

Copyright

protection on

artistic property

such as a movie or

(MPAA) and RIAA, is

trying technical solutions

via the legal system to

protect its interests.

not students, to stamp

out rampant music

piracy on university

campuses.

writing or recording,

the author can apply

for a federal

copyright.

music lasts forever,

even after the

death of the author

or creator.

39-Each of the following statements about digital rights management (DRM) is true

EXCEPT:

DRM are

technology-

based protection

measures.

DRM technologies

were developed with

strict regard for

privacy protection.

DRM is an umbrella term for

any arrangement that allows a

vendor of content in electronic

form to control the material and

restrict its usage.

Typically, the content

is a copyrighted

digital work to which

the vendor holds right.

40-Fair use means

that a copyright

holder has

exclusive rights to

the invention for a

fixed number of

years.

that copyrighted material

can be used for

noncommercial purposes

without paying royalties or

getting permission.

that copyrighted

material can be

digitally protected

against misuse.

that the author or creator

of a book, movie, or

musical composition can

use their creations for an

unlimited number of

years.

41-Which of the following is true about the scope of business ethics?

The scope of

business ethics

has not changed

even though laws

have expanded.

The scope of business ethics has

expanded to encompass the nature

and quality of the relationships

with shareholders, customers,

business partners, suppliers, the

community, environment, and

future generations.

The scope of

business ethics

has not changed

because laws

have not

changed.

The scope of business

ethics has been limited

to company's actions

with regard to how it

treats employees and

obeys laws.

42-An Internet acceptable use policy (AUP) is an important safeguard because:

without a formal AUP, it is much more

difficult to enforce acceptable behaviors

and eliminate unacceptable behaviors,

and punish violators.

employees may be using

company e-mail to

advertise their own

businesses.

it includes a

corporate code

of ethics.

it required

by the

FTC.

43-Section 5 of the FTC Act does each of the following EXCEPT:

prohibits unfair

or deceptive EC

practices.

requires

monitoring of

employees' e-mail.

protects

privacy.

gives the FTC authority to take action against

companies whose lax security practices could

expose customers' financial information to

theft or loss,

44-Companies can improve their responsibility as custodians of customers' personal data

by implementing:

AUP. E-mail monitoring. Firewalls. Opt in and opt out information practices.

45-Which of the following statements about the rights to privacy and free speech is not

correct?

As with all rights,

the right of free

speech is not

unlimited.

Those rights have an

increasingly important role

in an information society

and to EC.

The Internet has

destroyed the

right to privacy.

Defamation laws put

restrictions on what may

be freely said or

published.

46-All of the following are ways to use the Internet to find information about an individual

EXCEPT:

Using cookies,

spyware or keystroke

loggers.

Reading an individual's e-

mail, IM, blogs, or text

messages.

Wiretapping

communication lines.

Stealing the

individual's

computer.

47-Private online communities that are only open to those who belong to them are called:

splogs darknets RFIDs blogs

48-A domain name is:

intangible property

protected by law

tangible property

protected by law

intangible property that is

not protected by law

tangible property that is

not protected by law

49-The ________ give law enforcement agencies broader range in their efforts to protect

the public.

Electronic Freedom

Foundation (EFF)

American Civil Liberties

Union (ACLU)

U.S. Department of

Justice (DOJ) USA PATRIOT

Act

50-________ work on the principle that once Web surfers arrive at their site, a few of them

will click on one of the linked advertisements and earn them a few cents for each click.

Spammers Phishers Trackbacks Sploggers

51-The least effective method to protect against pop-up ads and their risk is:

Pop-up blocking

software on users'

computers.

Mozilla and Firefox Web

browsers preventing pop-

ups.

ISPs using tools that

stop pop-ups from

appearing.

Minimizing the

pop-up window.

52-All of the following statements apply to hate Web sites EXCEPT:

Web sites that contain legitimate

complaints that aren't defamatory,

sponsored by competitors, or

infringe upon trademark rights by

confusing consumers are usually

protected by the First Amendment.

Cyberbashing is the

registration of a

domain name that

criticizes an

organization or person.

The intent of

most hate

Web sites is

to commit

fraud.

Many hate sites are

directed against large

corporations such as

Wal-Mart, Microsoft,

and Nike.

53-A legally binding contract requires a few basic elements. Which of the following is not

one of those elements?

an offer acceptance consideration agreement

54-Examples of electronic signatures to help distinguish between legitimate and fraud

transactions include all of the following EXCEPT:

a name typed at the

end of an e-mail

message by the sender

a Web site

development

agreement

a secret code or PIN

to identify the sender

to the recipient

a digitized image of a

handwritten signature

attached to an electronic

document

55-EC sellers need to protect against fraud and each of the following EXCEPT:

Customers who give false credit card or bad

check information in payment for products

and services provided.

Public

keys.

Use of their name

by imposter

sellers.

Customers who deny

that they placed an

order.