E-Business and E-Commerce Test Bank Ch.7 Verified Test Bank

Package Title: Chapter 7, Testbank

Course Title: Rainer, IS 5e

Chapter Number: 7

Question type: Multiple Choice

1) In 2012, Walmart rebuilt the outdated technology infrastructure that supported Walmart.com by _______

a) installing brand new scan terminals in all the stores

b) installing security and high speed internet connections

c) building a web site with e-commerce capabilities

d) introducing smartphone apps, and constructing six highly automated fulfillment centres.

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 1: Describe the various online services of business-to-

consumer

(B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

2) In May, 2018 Walmart overhauled its website with ___

a) highly personalized with features designed to make it easier to reorder

items

b) check the status on orders

c) explore services at nearby Walmart stores

d) All of the above

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 1: Describe the various online services of business-to-

consumer

(B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

3) In September 2018, Walmart began telling online shoppers that some products in its warehouses were ____in order to avoid the extra expenses associated with shipping products from more distant warehouses.

a) on stock but were out of stock.

b) more expensive than in brick and mortar stores.

c) out of stock.

d) in back order.

Difficulty: Medium

Section Reference 1: Opening Case

Learning Objective 1: Describe the various online services of business-to-

consumer

(B2C) commerce, along with specific examples of each.

Bloomcode: Application

Standard 1: AACSB || Technology

4) Walmart’s marketplace strategy allows _________________.

a) external, third-party vendors to sell their products on Walmart’s online store

b) social networks to access their product catalog and get a commission for sales

c) provide loyalty discount digital coupons to buyers by subscribing to an online service

d) buyers to get discount coupons for referrals to Walmart’s site

Difficulty: Medium

Section Reference 1: Opening Case

Learning Objective 1: Describe the various online services of business-to-

consumer

(B2C) commerce, along with specific examples of each.

Bloomcode: Application

Standard 1: AACSB || Technology

5) ______ commerce refers to the intersection of messaging apps and shopping.

a) App

b) Conversational

c) Social

d) Transactional

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

6) In 2004, Tobias Lütke, Daniel Weinand, and Scott Lake founded ________.

a) Volusion

b) WooCommerce

c) Spotify

d) Shopify

Difficulty: Easy

Section Reference 1: IT’s About Business 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

7) The Shopify e-commerce platform includes features to.

a) create an e-commerce store.

b) handle social media advertising.

c) handle shipping.

d) All tof the above

Difficulty: Easy

Section Reference 1: IT’s About Business 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

8) _________ organizations are purely physical.

a) Brick-and-mortar

b) Clicks-and-mortar

c) Pure-play

d) Virtual

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

9) _________ organizations are only online.

a) Brick-and-mortar

b) Brick-and-click

c) Clicks-and-mortar

d) Virtual

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

10) _________ organizations have physical and online dimensions.

a) Brick-and-mortar

b) Clicks-and-mortar

c) Pure-play

d) Virtual

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

11) You own a restaurant in New York City. This is an example of a _________ organization.

a) brick-and-mortar

b) clicks-and-mortar

c) pure-play

d) virtual

Difficulty: Medium

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Application

Standard 1: AACSB || Technology

12) You are a musician. You only sell your songs on iTunes. This is an example of a _________ business.

a) brick-and-mortar

b) brick-and-click

c) clicks-and-mortar

d) virtual

Difficulty: Medium

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Application

Standard 1: AACSB || Technology

13) You sell popcorn in downtown Chicago. It became so popular that you started a website so people all over the country can get your popcorn delivered to their doorstep. This is an example of a _________ business.

a) brick-and-mortar

b) clicks-and-mortar

c) pure-play

d) virtual

Difficulty: Medium

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Application

Standard 1: AACSB || Technology

14) _________ comprises the vast majority of e-commerce by volume.

a) B2B

b) B2C

c) B2E

d) C2C

Difficulty: Medium

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

15) You adopt a child and need to update your healthcare benefits to include that new child. This is an example of _________ e-commerce.

a) B2B

b) B2C

c) B2E

d) C2C

Difficulty: Medium

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Application

Standard 1: AACSB || Technology

16) You file your income taxes online. This is an example of _________ e-commerce.

a) B2C

b) C2C

c) G2C

d) T2C

Difficulty: Medium

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Application

Standard 1: AACSB || Technology

17) You use your smartphone to look up how much money you have in your bank account. This is an example of _________ commerce.

a) electronic

b) local

c) mobile

d) social

Difficulty: Medium

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Application

Standard 1: AACSB || Technology

18) In ________, manufacturers or retailers sell directly to customers.

a) affiliate marketing

b) electronic tendering

c) online direct marketing

d) viral marketing

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

19) In ________, businesses request quotes from suppliers.

a) affiliate marketing

b) electronic tendering

c) online direct marketing

d) viral marketing

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

20) An electronic tendering system uses _________ with a _________ auction mechanism.

a) B2B; forward

b) B2B; reverse

c) B2C; forward

d) B2C; reverse

Difficulty: Medium

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

21) In ________, vendors ask partners to place logo on the partner’s website and then pay that partner a commission.

a) affiliate marketing

b) electronic tendering

c) online direct marketing

d) viral marketing

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

22) In ________, recipients of your marketing notices send information about your product to their friends.

a) affiliate marketing

b) electronic tendering

c) online direct marketing

d) viral marketing

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

23) With ________, customers use the internet to self-configure products or services.

a) bartering online

b) electronic exchanges

c) group purchasing

d) product customization

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

24) With ________, an intermediary administers online exchange of surplus products or the company receives “points” for its contribution, which it can use to purchase other needed items.

a) bartering online

b) electronic exchanges

c) group purchasing

d) product customization

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

25) With ________, transactions are conducted efficiently because buyers and sellers all meet in one place.

a) bartering online

b) electronic exchanges

c) group purchasing

d) product customization

Difficulty: Medium

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Comprehension

Standard 1: AACSB || Technology

26) With ________, small buyers aggregate demand to create a large volume and then negotiate lower prices.

a) bartering online

b) electronic exchanges

c) group purchasing

d) product customization

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

27) In _________ auctions, sellers solicit bids from many potential buyers; these auctions result in _________ prices over time.

a) forward; higher

b) forward; lower

c) reverse; higher

d) reverse; lower

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

28) In _________ auctions, one buyer wants to purchase a product or a service; these auctions result in _________ prices over time.

a) forward; higher

b) forward; lower

c) reverse; higher

d) reverse; lower

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

29) As the principal of a local high school, you want to install a wireless WAN to give students better, more secure access to the Internet. You request bids from a few local service providers to get the best price. This is an example of a _________ auction.

a) downward

b) forward

c) reverse

d) upward

Difficulty: Medium

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Application

Standard 1: AACSB || Technology

30) An electronic _________ is a website the represents a single store.

a) auction

b) mall

c) marketplace

d) storefront

Difficulty: Easy

Section Reference 1: 7.1

Section Reference 2: 7.2

Learning Objective 1: Describe the eight common types of electronic commerce.

Learning Objective 2: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

31) An electronic _________ is a collection of individual shops consolidated under one internet address.

a) auction

b) mall

c) marketplace

d) storefront

Difficulty: Easy

Section Reference 1: 7.1

Section Reference 2: 7.2

Learning Objective 1: Describe the eight common types of electronic commerce.

Learning Objective 2: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

32) An electronic _________ is a central, virtual market space on the web where many buyers and many sellers can conduct e-commerce and e-business activities.

a) auction

b) mall

c) marketplace

d) storefront

Difficulty: Medium

Section Reference 1: 7.1

Section Reference 2: 7.2

Learning Objective 1: Describe the eight common types of electronic commerce.

Learning Objective 2: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

33) Electronic checks are primarily used in ________.

a) B2B

b) B2C

c) C2C

d) G2C

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

34) _________ cards allow customers to charge online payments to their credit card accounts.

a) Electronic credit

b) Purchasing

c) Smart

d) Stored-value money

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

35) _________ cards allow businesses to charge online payments to their credit card accounts.

a) Electronic credit

b) Purchasing

c) Smart

d) Stored-value money

Difficulty: Medium

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

36) _________ cards allow you to store a fixed amount of prepaid money and then spend it as necessary.

a) Electronic credit

b) Purchasing

c) Smart

d) Stored-value money

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

37) Gift cards are _________ cards.

a) electronic credit

b) purchasing

c) smart

d) stored-value money

Difficulty: Medium

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Application

Standard 1: AACSB || Technology

38) _________ cards contain a chip that can store a large amount of information as well as on a magnetic stripe for backward compatibility.

a) electronic credit

b) purchasing

c) smart

d) stored-value money

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

39) Modern credit cards are _________ cards.

a) electronic credit

b) purchasing

c) smart

d) stored-value money

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

40) Bitcoin is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds; they are ________, which means ________.

a) centralized; a central institution operates their use

b) centralized; they are legal everywhere

c) decentralized; no single institution operates their use

d) decentralized; they are illegal in most countries

Difficulty: Medium

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

41) _________ is a limitation of e-commerce.

a) Accessibility

b) Convenience

c) Cost

d) Security

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

42) _________ is larger by volume; _________ is more complex.

a) B2B; B2B

b) B2B; B2C

c) B2C; B2B

d) B2C; B2C

Difficulty: Easy

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

43) _________ describes the retailing strategy of selling a large number of unique items in small quantities.

a) Cross selling

b) The long tail

c) The unique tail

d) Upselling

Difficulty: Easy

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

44) _________ are/is electronic billboards that promote a product or a vendor.

a) Banners

b) Pop-under ads

c) Pop-up ads

d) Spam

Difficulty: Easy

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

45) _________ appear(s) in front of the current browser window.

a) Banners

b) Pop-under ads

c) Pop-up ads

d) Spam

Difficulty: Easy

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

46) _________ appear(s) underneath the active windows.

a) Banners

b) Pop-under ads

c) Pop-up ads

d) Spam

Difficulty: Easy

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

47) _________ are/is unsolicited e-mail.

a) Banners

b) Pop-under ads

c) Pop-up ads

d) Spam

Difficulty: Easy

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

48) Which of the following is NOT a problem associated with channel conflict?

a) Alienating customers

b) Handling returns

c) Logistics of online activities

d) Marketing resource allocation

Difficulty: Medium

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

49) _________ occurs when shoppers visit a brick-and-mortar store but then purchase online.

a) Bannering

b) Bundling

c) Showrooming

d) The long tail

Difficulty: Easy

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

50) __________ are/is the underlying technology for digital currencies such as Bitcoin.

a) Blockchain

b) Disintermediation

c) Reverse auctions

d) Smart cards

Difficulty: Easy

Section Reference 1: IT’s About Business 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each one.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

51) ____________ use sophisticated algorithms to fully automate the buying and trading of stocks and other types of investments.

a) Robo-advisors

b) P2P technology

c) Crowdfunding platforms

d) Blockchains

Difficulty: Easy

Section Reference 1: IT’s About Business 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each one.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

52) Venmo, PayPal, and Zelle are all _______ service companies.

a) DigiPay

b) B2B

c) P2P

d) FinApp

Difficulty: Easy

Section Reference 1: IT’s About Business 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each one.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

53) Which is NOT true regarding blockchain?

a) It is virtually impossible to alter its records.

b) It circumvents the need for banks or brokers for some consumers.

c) It is a form of Bitcoin that can be used internationally.

d) It can be lifesaving in the instance of certain bacterial outbreaks.

Difficulty: Medium

Section Reference 1: IT’s About Business 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each one.

Bloomcode: Application

Standard 1: AACSB || Technology

54) The term for the 20% of business supply spending unrelated to core corporate functions that is not consistently ordered from the same suppliers is ___________.

a) corporate generic spending

b) third-party spending

c) corporate tail spend

d) accessory spend

Difficulty: Easy

Section Reference 1: IT’s About Business 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

55) An example of inventory that AmazonSupply carries is ___________.

a) bulk quantities of Comet bathroom cleaner

b) plain solid colored sweatshirts

c) replacement ear buds

d) unique home décor items

Difficulty: Easy

Section Reference 1: IT’s About Business 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Comprehension

Standard 1: AACSB || Technology

56) Which is NOT a benefit for buyers using Amazon Business?

a) They can view other buyers’ reviews of products.

b) It integrates with their procurement software.

c) Buyers can utilize its analytics dashboard.

d) It can ship products directly to businesses’ customers.

Difficulty: Medium

Section Reference 1: IT’s About Business 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Application

Standard 1: AACSB || Technology

57) One way that Amazon Business avoids problems that other distributors may encounter, especially with specialty items, is ______________.

a) to avoid selling items that do not sell quickly or are not in high demand

b) to keep their own stock of items on hand

c) by selling only very low volumes

d) to force stockouts on the majority of their items, by design

Difficulty: Easy

Section Reference 1: IT’s About Business 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Comprehension

Standard 1: AACSB || Technology

58) Other wholesalers have difficulties competing with Amazon Business and are having to come up with other ways to stay profitable and relevant. Which suggestion is LEAST likely to be effective in this regard?

a) Developing close partnerships with institutional clients

b) Including value adds, such as personalized services and provision of skilled workers to help use items that are sold

c) Decreasing profit margins and cost to consumers

d) Exploring areas that Amazon Business is not currently taking part in

Difficulty: Medium

Section Reference 1: IT’s About Business 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Analysis

Standard 1: AACSB || Technology

59) While the _________ industry is larger than _______, the companies tend to be much smaller.

a) wholesale; retail

b) retail; resale

c) wholesale; resale

d) resale; retail

Difficulty: Easy

Section Reference 1: IT’s About Business 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

60) ________ marketing involves a merchant paying a commission to other online entities for referring new business to the merchant’s website.

a) Affiliate

b) Conversational

c) Social

d) Transactional

Difficulty: Easy

Section Reference 1: IT’s About Business 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, and provide examples.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

61) __________ has revolutionized fraudulent affiliate marketing because they have powerful tools that analyze its vast amount of user data to identify people who are most likely to believe a fraudulent ad.

a) Amazon

b) Facebook

c) Google

d) Microsoft

Difficulty: Easy

Section Reference 1: IT’s About Business 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, and provide examples.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

62) In the ________, organizations sell their products or services to other organizations electronically from their own private e-marketplace website or from a third-party website.

a) buy-side marketplace

b) electronic exchange

c) sell-side marketplace

d) sellers exchange

Difficulty: Easy

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

63) _________ are similar to the B2C model.

a) Buy-side marketplaces

b) Electronic exchanges

c) Sell-side marketplaces

d) Sellers exchanges

Difficulty: Easy

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

64) Sell-side marketplaces are similar to the _________ model.

a) B2B

b) B2C

c) C2C

d) G2E

Difficulty: Easy

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

65) Sell-side marketplaces are similar to the _________ model; _________ auctions are the key mechanism.

a) B2B; forward

b) B2B; reverse

c) B2C; forward

d) B2C; reverse

Difficulty: Easy

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

66) The _________ is a model in which organizations attempt to procure needed products or services from other organizations electronically.

a) buy-side marketplace

b) electronic exchange

c) sell-side marketplace

d) sellers exchange

Difficulty: Easy

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

67) A major method of procuring goods and services in the buy-side model is the _________ auction.

a) downward

b) forward

c) reverse

d) upward

Difficulty: Easy

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

68) Group purchasing is a common technique in a ________.

a) buy-side marketplace

b) electronic exchange

c) sell-side marketplace

d) sellers exchange

Difficulty: Medium

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

69) _________ are independently owned by a third party and connect many sellers with many buyers.

a) Buy-side marketplaces

b) Electronic exchanges

c) Sell-side marketplaces

d) Sellers exchanges

Difficulty: Easy

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

70) _________ materials are inputs to the manufacturing process.

a) Direct

b) Horizontal

c) Indirect

d) Vertical

Difficulty: Easy

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

71) _________ materials are those items that are needed for MRO.

a) Direct

b) Horizontal

c) Indirect

d) Vertical

Difficulty: Easy

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

72) _________ exchanges connect buyers and sellers in a given industry.

a) Direct

b) Horizontal

c) Indirect

d) Vertical

Difficulty: Easy

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

73) _________ exchanges connect buyers and sellers across many industries.

a) Direct

b) Horizontal

c) Indirect

d) Vertical

Difficulty: Easy

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

74) Amazon Business is the biggest threat to ________.

a) distributors

b) manufacturers

c) retailers

d) wholesalers

Difficulty: Easy

Section Reference 1: IT’s About Business 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

75) B2B typically has margins of 2–4 percent; Amazon _________ make money ________.

a) does; through the offset of its B2C business

b) does; through high volume in B2B

c) does not; but it doesn’t care since it is making so much in the B2C realm

d) does not; above and beyond what its competitors are making

Difficulty: Medium

Section Reference 1: IT’s About Business 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

76) _________ is a legal form of cybersquatting.

a) Cyber-tasting

b) Domain tasting

c) ICANN-tasting

d) URL tasting

Difficulty: Easy

Section Reference 1: 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, along with examples.

Bloomcode: Knowledge

Standard 1: AACSB || Ethics

Standard 2 : AACSB || Technology

77) _________ refers to the practice of registering or using domain names for the purpose of profiting from the goodwill or the trademark that belongs to someone else.

a) Cyber-squatting

b) Cyber-using

c) Domain-squatting

d) Domain-using

Difficulty: Easy

Section Reference 1: 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, along with examples.

Bloomcode: Knowledge

Standard 1: AACSB || Ethics

Standard 2 : AACSB || Technology

78) _________ are the main threat to privacy on the internet.

a) Cookies

b) ERPs

c) RFIDs

d) Smart cards

Difficulty: Easy

Section Reference 1: 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, along with examples.

Bloomcode: Knowledge

Standard 1: AACSB || Ethics

Standard 2 : AACSB || Technology

79) The ________ Effect is the ongoing disruption of the retail marketplace, including both online and traditional brick-and-mortar retailers.

a) Amazon

b) Facebook

c) Google

d) Walmart

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each one.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

80)

May 2018, Walmart ended its___________, which was Walmart’s attempt at cashierless checkout

a) Credit card terminals

b) Paypal payment terminals

c) E-cheque strategy

d) Scan & Go program

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each one.

Bloomcode: Application

Standard 1: AACSB || Technology

81) In addition to expanding its U.S. operations, Amazon is targeting ________.

a) Australia

b) China

c) India

d) Russia

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each one.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

82) Despite Amazon’s online retailing success, it has become clear over time that there is much shopping that people prefer to do in person. This is one of the reasons Amazon bought ________.

a) Bonobos

b) Jet

c) Whole Foods

d) Zappos

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each one.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

83) In June 2017, Amazon announced a new program called Prime

Wardrobe that allows customers to

a) to order clothes with high discount but no option to return items..

b) to order clothing, from 3 to 15 items at a time, without actually buying it.

c) to order clothes and allow customers to try them online on a virtual system.

d) to order clothes higher prices but very short delivery times.

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each one.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

Question type: True/False

84) Walmart executives have long underestimated the convenience of shopping online from anywhere and at any time.

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 1: Describe the various online services of business-to-

consumer

(B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

85) As e-commerce sales were increasing, Walmart faced internal struggles due to lack of inventory.

Difficulty: Medium

Section Reference 1: Opening Case

Learning Objective 1:

Describe the various online services of business-to-

Consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Synthesis

Standard 1: AACSB || Technology

86) In September 2018, Walmart began telling online shoppers that some products in its warehouses were out of stock in order to avoid the extra expenses associated with shipping products.

Difficulty: Medium

Section Reference 1: Opening Case

Learning Objective 1:

Describe the various online services of business-to-

Consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Analysis

Standard 1: AACSB || Technology

87) Shopify allows small entrepreneurs to set up and run their e-procurement systems without having to make significant investments in technology and expertise

Difficulty: Easy

Section Reference 1: IT’s About Business 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

88) E-business is a broader concept than e-commerce.

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

89) The degree of digitization refers only to the physical or digital nature of the product or service being sold.

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

90) The degree of digitization relates to the product/service and the delivery agent.

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

91) If you purchase an e-book from Amazon, it is a clicks-and-mortar transaction.

Difficulty: Medium

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Application

Standard 1: AACSB || Technology

92) eBay is a commonly known reverse auction website.

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

93) Reverse auctions typically result in higher prices over time because a seller is targeting a single buyer.

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

94) The highest bidder will win a forward auction.

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

95) An RFQ is associated with a reverse auction.

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

96) It is more secure for a buyer to use the telephone or mail to arrange or send payments than to use a computer.

Difficulty: Hard

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

96) The web makes disintermediation easier, particularly for online services.

Difficulty: Easy

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

97) Disintermediation is a threat of substitute products from Porter’s Five Forces.

Difficulty: Hard

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Synthesis

Standard 1: AACSB || Technology

98) Permission marketing asks consumers to give their permission to voluntarily accept online advertising and e-mail.

Difficulty: Easy

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

99) Viral marketing refers to online, word-of-mouth marketing and is closely related to using social media for marketing purposes.

Difficulty: Easy

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

100) Channel conflict and order fulfillment are the two most significant issues in e-tailing.

Difficulty: Easy

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

101) The financial technology industry is primarily focusing on strengthening its position in client-server computing.

Difficulty: Easy

Section Reference 1: IT’s About Business 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each one.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

102) Much of the new growth in the financial technology industry involves P2P activity.

Difficulty: Easy

Section Reference 1: IT’s About Business 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each one.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

103) Google banned Voluum because the software can show Google employees legitimate content while consumers see fraudulent ads.

Difficulty: Easy

Section Reference 1: IT’s About Business 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, and provide examples.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

104) Facebook banned Voluum because the software can show Google employees legitimate content while consumers see fraudulent ads.

Difficulty: Easy

Section Reference 1: IT’s About Business 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, and provide examples.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

105) Scams and misleading advertisements are an entirely new phenomenon due to the ubiquity of the Internet in our daily lives over the past 20 years.

Difficulty: Easy

Section Reference 1: IT’s About Business 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, and provide examples.

Bloomcode: Comprehension

Standard 1: AACSB || Technology

106) Affiliate marketing is when a merchant pays a commission to another online entity for directing business to the merchant’s website.

Difficulty: Easy

Section Reference 1: IT’s About Business 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, and provide examples.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

107) Once caught and banned from Facebook, fraudulent affiliates find it nearly impossible to circumvent the problem or move forward.

Difficulty: Easy

Section Reference 1: IT’s About Business 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, and provide examples.

Bloomcode: Comprehension

Standard 1: AACSB || Technology

108) Purchasing is a subset of the procurement process.

Difficulty: Medium

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

109) Procurement is a subset of the purchasing process.

Difficulty: Medium

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

110) Temporary staffing services trade in a functional exchange.

Difficulty: Medium

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Application

Standard 1: AACSB || Technology

111) Grainger is Amazon Business’s main competitor.

Difficulty: Easy

Section Reference 1: IT’s About Business 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

112) Amazon Business stays competitive in niche markets by using a long tail strategy.

Difficulty: Hard

Section Reference 1: IT’s About Business 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Synthesis

Standard 1: AACSB || Technology

113) Cybersquatting is illegal.

Difficulty: Easy

Section Reference 1: 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, along with examples.

Bloomcode: Knowledge

Standard 1: AACSB || Ethics

Standard 2 : AACSB || Technology

114) Domain tasting is illegal and unethical.

Difficulty: Easy

Section Reference 1: 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, along with examples.

Bloomcode: Knowledge

Standard 1: AACSB || Ethics

Standard 2 : AACSB || Technology

115) Most states require Amazon to collect sales taxes.

Difficulty: Easy

Section Reference 1: 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, along with examples.

Bloomcode: Knowledge

Standard 1: AACSB || Ethics

Standard 2 : AACSB || Technology

116) You buy the right to use software, not distribute it.

Difficulty: Easy

Section Reference 1: 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, along with examples.

Bloomcode: Knowledge

Standard 1: AACSB || Ethics

Standard 2 : AACSB || Technology

117) A unique advantage Walmart currently has over Amazon is its ability to ship-to-store.

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each one.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

Question type: Text Entry

118) ___ is the process of buying, selling, transferring, or exchanging products, services, or information through computer networks.

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

119) In ___ auctions, sellers solicit bids from many potential buyers.

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

120) In ___ auctions, one buyer wants to purchase a product or service.

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

121) Forward auctions typically result in ___ prices over time.

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

122) Reverse auctions typically result in ___ prices over time.

Difficulty: Easy

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

123) ___ marketing asks consumers to give their permission to voluntarily accept online advertising and e-mail.

Difficulty: Easy

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

124) ___ marketing refers to online, word-of-mouth marketing and is closely related to using social media for marketing purposes.

Difficulty: Easy

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

125) ___ is the overarching function that describes the activities and processes to acquire goods and services.

Difficulty: Medium

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

126) ___ refers to the practice of registering or using domain names for the purpose of profiting from the goodwill or the trademark that belongs to someone else.

Difficulty: Easy

Section Reference 1: 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, along with examples.

Bloomcode: Knowledge

Standard 1: AACSB || Ethics

Standard 2 : AACSB || Technology

Question type: Essay

127) What is Bitcoin? How is Bitcoin different from traditional currency? Have you used Bitcoins (why or why not)? Why are Bitcoins so volatile?

Difficulty: Hard

Section Reference 1: 7.1

Learning Objective 1: Describe the eight common types of electronic commerce.

Bloomcode: Evaluation

Standard 1: AACSB || Communication

Standard 2 : AACSB || Analytic

Standard 3 : AACSB || Technology

Solution: type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of any central bank; it is decentralized so no one controls it; personal question; it depends on what people think about it, use in foreign countries, tax treatment, supply and demand, etc. (http: //www.investopedia.com/articles/investing/052014/why-bitcoins-value-so-volatile.asp or https: //support.coinbase.com/customer/portal/articles/1834921-why-does-bitcoin-change-value-why-is-the-price-so-volatile-)

128) Discuss the differences between B2B and B2C e-commerce. Which one is more complex from a technology perspective and why?

Difficulty: Easy

Section Reference 1: 7.1

Section Reference 2: 7.2

Learning Objective 1: Describe the eight common types of electronic commerce.

Learning Objective 2: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Comprehension

Standard 1: AACSB || Communication

Standard 2 : AACSB || Technology

Solution: 1) B2C – businesses sell to consumers; B2B – businesses sell to other businesses
2) B2C because B2B issues tend to be business-related while B2C has to struggle with treating every individual customer as unique without any long-term guarantee of a relationship like B2B enjoys – need to be quick and efficient in shipping to customers all over the place in many different ways (B2B will probably involve a dedicated truck to a consistent customer while B2C will have to replay on the USPS at some point)

129) What functions do intermediaries serve? How is the concept of disintermediation related to Porter’s Five Forces? Is disintermediation inevitable for all industries (why or why not)?

Difficulty: Medium

Section Reference 1: 7.2

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Bloomcode: Analysis

Standard 1: AACSB || Communication

Standard 2 : AACSB || Analytic

Standard 3 : AACSB || Technology

Solution: Functions = provide information, perform value-added services like consulting
Porter’s Five Forces = it is a threat of substitute products (a website serves the same function as a distributor or retailer) – it is an unexpected competitor outside the given industry
Inevitable = no (this is NOT an opinion; the answer cannot be “yes”) because not all manufacturers can deal directly with consumers; dealing with consumers is a business model by itself: intermediaries provide information and provide value-added services like consulting, intermediaries help with enormous amounts of information and when information exchange is complex

130) How are sell-side marketplaces, buy-side marketplaces, and exchanges different (do not simply provide definitions) ?

Difficulty: Easy

Section Reference 1: 7.3

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Bloomcode: Comprehension

Standard 1: AACSB || Communication

Standard 2 : AACSB || Technology

Solution: Sell-side = just like B2C except for B2B; expecting other businesses to come to them to make purchases; forward auctions
Buy-side = getting suppliers to bid on products/services that buying businesses need, group purchasing is often used here; reverse auctions
Electronic exchanges = bringing multiple buyers and sellers together

131) What are the ethical and legal issues associated with e-business? For each one, explain your concerns (or lack of concerns).

Difficulty: Medium

Section Reference 1: 7.4

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce, along with examples.

Bloomcode: Analysis

Standard 1: AACSB || Communication

Standard 2 : AACSB || Ethics

Standard 3 : AACSB || Analytic

Standard 4 : AACSB || Technology

Solution: Privacy – cookies track everything
Job loss – most probably don’t have jobs and/or are getting a degree to avoid this problem
Fraudulent activity – it is really easy for criminals to steal our identities; hard to determine if a website/e-mail is real
Domain names/cybersquatting – most probably don’t own their own business, so this should not matter to most students
Taxes – this may or may not be a big deal to students depending on where they purchase products and in which state they live – may have to start paying more online; they may learn that they should be tracking their purchases to pay taxes
Copyright – many people think piracy isn’t a big deal (the culture), so many may not feel like this is a big deal but some could be educated about its unfairness to businesses