Exam Prep Ch.15 Trends In E-commerce 404

Package Title: Chapter 15, Testbank

Course Title: Boone, Contemporary Business, 19^th Edition

Chapter Number: 15

Question type: Multiple Choice

1) _____ is a percentage of users who click on an ad.

a) E-commerce

b) Phishing

c) Click-through rate

d) Conversion rate

Difficulty: Easy

Learning Objective 1: 15-07: Discuss building and managing a website.

Section Reference 1: Building and Managing a Website

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

2) A(n) _____ is an encrypted storage medium holding a customer’s credit card and other financial information that can be used to complete e-transactions without reentering the stored data for each new transaction.

a) electronic data interchange (EDI)

b) secure sockets layer (SSL)

c) electronic wallet

d) firewall

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

3) A common type of Internet fraud is _____.

a) electronic data interchange (EDI)

b) Secure Sockets Layer (SSL)

c) firewall

d) phishing

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

4) _____ are retail websites that sell items to consumers.

a) E-commerce

b) Electronic data interchange (EDI)

c) Electronic storefronts

d) Electronic wallet

Difficulty: Easy

Learning Objective 1: 15-03: Explain B2C e-commerce.

Section Reference 1: B2C E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

5) The concept of conducting business via the Internet is known as _____.

a) E-commerce

b) Electronic data interchange (EDI)

c) Electronic storefronts

d) Electronic wallet

Difficulty: Easy

Learning Objective 1: 15-01: Discuss the function of e-commerce.

Section Reference 1: The Capabilities of E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

6) A(n) _____ is a series of discrete entries or posts that serve as a publicly accessible personal journal for an individual or organization.

a) e-commerce

b) electronic data interchange (EDI)

c) phishing

d) blog

Difficulty: Easy

Learning Objective 1: 15-05: Discuss how organizations use the web to communicate.

Section Reference 1: Using the Web to Communicate

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

7) Use of _____ cuts paper flow, speeds the order cycle, and reduces errors.

a) e-commerce

b) electronic data interchange (EDI)

c) electronic storefronts

d) electronic wallet

Difficulty: Easy

Learning Objective 1: 15-02: List the major functions of B2B e-commerce.

Section Reference 1: B2B E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

8) A(n) _____ is an electronic barrier between a company’s internal network and the Internet that limits access into and out of the network.

a) electronic data interchange (EDI)

b) Secure Sockets Layer (SSL)

c) electronic wallet

d) firewall

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

9) _____ is software that encrypts and decrypts information using a public key and a private key.

a) Electronic data interchange (EDI)

b) Electronic storefronts

c) Secure Sockets Layer (SSL)

d) Electronic wallet

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

10) One way of measuring the success of an online ad is by calculating the _____, which is a measure of the percentage of website visitors who actually make purchases.

a) e-commerce

b) electronic wallet

c) click-through rate

d) conversion rate

Difficulty: Easy

Learning Objective 1: 15-07: Discuss building and managing a website.

Section Reference 1: Building and Managing a Website

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

11) Which of the following scenarios exemplifies the concept of an omni-channel retail experience?

a) In addition to physical stores, a fashion brand launches a virtual store and a mobile application to make online shopping more convenient for its consumers

b) An automobile manufacturer launches a website to disseminate information to consumers about its newly launched and existing vehicles

c) A social media platform acquires a mobile messenger to extract information and provide customized ads to consumers based on their likes and dislikes

d) An online retailer with no traditional brick-and-mortar stores becomes a mobile-only retailer.

Difficulty: Easy

Learning Objective 1: 15-03: Explain B2C e-commerce.

Section Reference 1: B2C E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

12) _______can be considered the dominant online shopping demographic.

a) Centennials

b) Baby boomers

c) Millennials

d) Traditionalists

Difficulty: Easy

Learning Objective 1: 15-03: Explain B2C e-commerce.

Section Reference 1: B2C E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

13) Which of the following is true of online shopping?

a) Less than 5% of the online shoppers are between the ages of 45 and 54

b) One in 20 customers use online shopping through a mobile device

c) Around 60% of the online shoppers are between the ages of 35 and 44

d) Millennials spend more money on online shopping than any other age group

Difficulty: Easy

Learning Objective 1: 15-03: Explain B2C e-commerce.

Section Reference 1: B2C E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

14) Which of the following is a purpose of the secure sockets layer (SSL) software?

a) It enables product customization in virtual stores

b) It extracts customer information from social media platforms

c) It enhances protection of online shopping transactions

d) It ensures effective inventory management for faster product delivery

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

15) Venmo is a free _____ that allows users to transfer money to each other for items such as rent, car rides, and restaurant bills.

a) mobile payment service

b) social networking service

c) networking tool

d) encryption tool

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

16) Which of the following is a type of Internet fraud that can be referred to a law enforcement agency?

a) Psychological pricing

b) Identity theft

c) Search engine optimization

d) Delayed delivery of merchandise

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

17) Riya purchases a product online using her credit card. She receives the product after a few days. In which of the following ways can Riya commit payment fraud?

a) By asking the credit card issuer for a chargeback

b) By selling the product to her friend at a higher price

c) By returning the product to the seller and asking for a refund

d) By changing the mode of transaction

Difficulty: Medium

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

18) Which of these are disputes among producers, wholesalers, and retailers?

a) Channel conflicts

b) Payment frauds

c) Electronic data interchanges

d) Private exchanges

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

19) How does a blog benefit a small business?

a) It helps collate consumer information

b) It helps protect it from payment frauds

c) It helps heighten market competition

d) It helps expand its reach

Difficulty: Easy

Learning Objective 1: 15-05: Discuss how organizations use the web to communicate.

Section Reference 1: Using the Web to Communicate

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

20) Which of the following is recommended for an effective blog?

a) Avoid conversations with the readers

b) Maintain variations in the quality of the blog

c) Avoid the inclusion of stories in the blog

d) Update the blog regularly

Difficulty: Easy

Learning Objective 1: 15-05: Discuss how organizations use the web to communicate.

Section Reference 1: Using the Web to Communicate

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

21) Which of the following aspects of a company is benefitted by an effective publishing platform?

a) Its visibility

b) Its resource capability

c) Its supply chain operation

d) Its return on sales

Difficulty: Easy

Learning Objective 1: 15-05: Discuss how organizations use the web to communicate.

Section Reference 1: Using the Web to Communicate

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

22) Which of these is often seen on social channels like Facebook, Snapchat, and YouTube?

a) Out-of-home advertising

b) Press advertising

c) Billboard advertising

d) Video advertising

Difficulty: Easy

Learning Objective 1: 15-05: Discuss how organizations use the web to communicate.

Section Reference 1: Using the Web to Communicate

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

23) Which of the following is used by companies to increase the number of visitors to their websites via platforms such as Google or Bing?

a) Sheltered outdoor advertising

b) Data encryption

c) Search engine optimization

d) Accrual accounting

Difficulty: Easy

Learning Objective 1: 15-05: Discuss how organizations use the web to communicate.

Section Reference 1: Using the Web to Communicate

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

24) In an iOS operating system, Siri uses traditional search engines to find important information for consumers. Siri is an example of a(n) _____.

a) digital assistant

b) firewall

c) unicorn

d) electronic wallet

Difficulty: Easy

Learning Objective 1: 15-05: Discuss how organizations use the web to communicate.

Section Reference 1: Using the Web to Communicate

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

25) An example of a website that provides a virtual community for people to socialize about a particular subject or any topic in general is _____.

a) Amazon

b) Google

c) Facebook

d) Bing

Difficulty: Easy

Learning Objective 1: 15-05: Discuss how organizations use the web to communicate.

Section Reference 1: Using the Web to Communicate

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

26) According to “Internet Usage Statistics” taken by Internet World Stats, the continent with the least number of Internet users is _____.

a) Europe

b) Asia

c) Africa

d) Australia

Difficulty: Easy

Learning Objective 1: 15-06: Describe the global environment for e-commerce.

Section Reference 1: The Global Environment for E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

27) Yahoo is _____.

a) a social media website that enables people to connect with friends, upload photos, share links and videos

b) a major Internet portal and service provider offering search results, customizable content, and financial news

c) a social networking and microblogging service utilizing instant messaging, SMS, or a web interface

d) a networking tool to find connections to recommended job candidates, industry experts, and business

Difficulty: Easy

Learning Objective 1: 15-07: Discuss building and managing a website.

Section Reference 1: Building and Managing a Website

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

28) Which of the following is a networking tool used by businesspeople to find connections with businesses?

a) Amazon

b) Twitter

c) LinkedIn

d) Google

Difficulty: Easy

Learning Objective 1: 15-05: Discuss how organizations use the web to communicate.

Section Reference 1: Using the Web to Communicate

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

29) _______ can be determined using the click-through rate.

a) The market value of a product

b) The cost of acquiring a customer

c) The success of an advertisement

d) The performance of a website

Difficulty: Easy

Learning Objective 1: 15-07: Discuss building and managing a website.

Section Reference 1: Building and Managing a Website

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

30) Jackal owns an online grocery store. His store’s website can only be accessed using a desktop or a laptop. He wants his customers to be able to access it even from mobile phones. Which of the following is most likely to help him make the website both desktop- and mobile-friendly?

a) Designing a responsive website

b) Using search engine optimization

c) Converting the virtual store into a mobile application

d) Boosting the website’s conversion rate

Difficulty: Medium

Learning Objective 1: 15-07: Discuss building and managing a website.

Section Reference 1: Building and Managing a Website

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

31) Broom-It Inc. is a company that manufactures bathroom accessories. It has a website that provides information about its products, its store locations, its history, and details about its customer loyalty programs. However, the website does not allow customers to make any purchases. In order to make a purchase, a customer needs to visit the company’s physical stores. Broom-It’s website is an example of a(n) _____.

a) archive website

b) marketing website

c) corporate website

d) phishing website

Difficulty: Medium

Learning Objective 1: 15-01: Discuss the function of e-commerce.

Section Reference 1: The Capabilities of E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

32) Which of the following is an example of a marketing website?

a) Amazon

b) Google

c) Wikipedia

d) Instagram

Difficulty: Medium

Learning Objective 1: 15-01: Discuss the function of e-commerce.

Section Reference 1: The Capabilities of E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

33) Which of the following is an advantage of extranets?

a) Their participants can use them to collaborate on product ideas, order tracking, and distribution

b) They help companies set production schedules to match demand

c) Their use cuts paper flow, speeds the order cycle, and reduces errors

d) They give selected outsiders access to valuable internal information for better decision making

Difficulty: Easy

Learning Objective 1: 15-02: List the major functions of B2B e-commerce.

Section Reference 1: B2B E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

34) Mobile devices are a key driver in the growth of _____.

a) factoring

b) e-tailing

c) accrual accounting

d) e-procurement

Difficulty: Easy

Learning Objective 1: 15-03: Explain B2C e-commerce.

Section Reference 1: B2C E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

35) Tell-All is an online news outlet that allows users to access news articles. However, users can read all the news articles only if they pay a subscription fee. Without the fee, users can read only two articles a week. Tell-All is using a _____ to prevent users from freely accessing its content.

a) paywall

b) malware

c) firewall

d) grayware

Difficulty: Medium

Learning Objective 1: 15-03: Explain B2C e-commerce.

Section Reference 1: B2C E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

36) _____ is one of the fastest growing e-commerce markets.

a) China

b) United States

c) UK

d) Egypt

Difficulty: Easy

Learning Objective 1: 15-03: Explain B2C e-commerce.

Section Reference 1: B2C E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

37) Which of the following aspects of business-to-consumer (B2C) e-commerce allows marketers to focus on one-to-one marketing?

a) Customization

b) Loss aversion

c) Free shipping

d) Psychological pricing

Difficulty: Easy

Learning Objective 1: 15-03: Explain B2C e-commerce.

Section Reference 1: B2C E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

38) The process of encoding data for security purposes is known as _____.

a) phishing

b) encryption

c) monetization

d) e-tailing

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

39) The public key in the secure sockets layer (SSL) software is used to _____.

a) delete information

b) exchange information

c) decrypt information

d) encrypt information

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

40) Which of the following is a function of VeriSign, a Symantec business?

a) Authenticating customer data

b) Extracting customer information

c) Securing payment data

d) Managing inventory

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

41) Which of the following is a similarity between VeriSign and PayPal?

a) Both enable effective inventory management

b) Both are encrypted payment services

c) Both provide Internet domain name registry services

d) Both are marketing websites

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

42) Visa recently implemented a program asking credit card holders to “opt in” to use their cell phone location to help verify credit card transactions by location. Which of the following is most likely to be a reason for this measure?

a) To authorize location-based advertising

b) To ensure payment security

c) To encrypt customer information

d) To ensure accurate payment by customers

Difficulty: Medium

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

43) _____ is a high-tech scam that uses e-mail or pop-up messages to get unsuspecting victims to reveal personal information.

a) Phishing

b) Factoring

c) Underwriting

d) E-tailing

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

44) Slip-Ons Inc. a footwear manufacturing company, sells its products both through its website and its physical stores. However, it offers the same prices and discounts in both the platforms. Slip-Ons Inc. has taken these measures to minimize a potential _____.

a) auction fraud

b) identity theft

c) phishing

d) channel conflict

Difficulty: Medium

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

45) Which of the following is true of online communities?

a) They allow users to transfer money to each other through mobile payment services

b) They can take the form of chat rooms and social networking sites

c) They help small businesses execute their accounting functions at low costs

d) They give selected outsiders access to a company’s internal information

Difficulty: Easy

Learning Objective 1: 15-05: Discuss how organizations use the web to communicate.

Section Reference 1: Using the Web to Communicate

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

Question type: True/False

46) Global reach and customization are two of the benefits of e-commerce.

Difficulty: Easy

Learning Objective 1: 15-01: Discuss the function of e-commerce.

Section Reference 1: The Capabilities of E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

47) There are two main types of company websites: corporate website and intranets.

Difficulty: Easy

Learning Objective 1: 15-01: Discuss the function of e-commerce.

Section Reference 1: The Capabilities of E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

48) Business-to-business (B2B) e-commerce is the use of the Internet for business transactions between organizations.

Difficulty: Easy

Learning Objective 1: 15-02: List the major functions of B2B e-commerce.

Section Reference 1: B2B E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

49) The public exchange is a secure website at which a company and its suppliers share all types of data related to e-commerce, from product design through order delivery.

Difficulty: Easy

Learning Objective 1: 15-02: List the major functions of B2B e-commerce.

Section Reference 1: B2B E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

50) Mobile devices are a key driver in the growth of e-tailing.

Difficulty: Easy

Learning Objective 1: 15-03: Explain B2C e-commerce.

Section Reference 1: B2C E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

51) One of the biggest trends in e-commerce will be the blending of e-commerce with mobile messaging apps such as Facebook Messenger and Snapchat.

Difficulty: Easy

Learning Objective 1: 15-03: Explain B2C e-commerce.

Section Reference 1: B2C E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

52) Credit card payment is the most common with 90% of B2C transactions.

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

53) Phishing is a high-tech scam to acquire sensitive information using e-mail or pop-up messages claiming to be from familiar businesses or organizations.

Difficulty: Easy

Learning Objective 1: 15-04: Describe the challenges associated with e-commerce.

Section Reference 1: E-Commerce Challenges

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

54) Phishing is a series of discrete entries or posts that serve as a publicly accessible personal journal for an individual or organization.

Difficulty: Easy

Learning Objective 1: 15-05: Discuss how organizations use the web to communicate.

Section Reference 1: Using the Web to Communicate

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

55) Television accounts for almost 8 hours a day time spent by people making it the dominant media type.

Difficulty: Easy

Learning Objective 1: 15-05: Discuss how organizations use the web to communicate.

Section Reference 1: Using the Web to Communicate

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

Question type: Essay

56) Explain how consumers and business owners benefit from e-commerce.

Difficulty: Easy

Learning Objective 1: 15-01: Discuss the function of e-commerce.

Section Reference 1: The Capabilities of E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

57) What is the difference between corporate websites and marketing websites?

Difficulty: Easy

Learning Objective 1: 15-01: Discuss the function of e-commerce.

Section Reference 1: The Capabilities of E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

58) Define electronic data interchange (EDI).

Difficulty: Easy

Learning Objective 1: 15-02: List the major functions of B2B e-commerce.

Section Reference 1: B2B E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

59) Using examples, discuss the two types of business-to-consumer (B2C) e-commerce websites.

Difficulty: Easy

Learning Objective 1: 15-03: Explain B2C e-commerce.

Section Reference 1: B2C E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

60) Discuss how French cosmetic company L’Oréal has embraced e-commerce.

Difficulty: Easy

Learning Objective 1: 15-03: Explain B2C e-commerce.

Section Reference 1: B2C E-Commerce

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension