Exam Prep Chapter.7 E-Business And E-Commerce

Chapter 7

E-Business and E-Commerce

Question type: True/False

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

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

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

Difficulty: Medium

Learning Objective: Identify the ethical and legal issues related to electronic commerce, providing examples.

Section Reference: 7.4 Ethical and Legal Issues in E-Business

AACSB: Information Technology, Ethics

Bloomcode: Application

3) Visiting the Web site of a car manufacturer (e.g., www.gm.com), entering the specifications for the car you want, and then picking up your car at your local dealership is an example of a clicks and mortar organization, or partial electronic commerce.

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Reflective Thinking

Bloomcode: Application

4) A type of viral marketing involves sending information about your product to friends.

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Information Technology

Bloomcode: Knowledge

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

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Knowledge

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

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Comprehension

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

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Knowledge

8) In a forward auction, the highest bid wins.

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Knowledge

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

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Evaluation

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

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Communication

Bloomcode: Comprehension

11) You can make a purchase in a referral mall.

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Communication

Bloomcode: Comprehension

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

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Evaluation

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

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Communication

Bloomcode: Comprehension

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

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Evaluation

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

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Comprehension

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

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Evaluation

17) Internet advertising is impersonal, one-way mass communication.

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Communication

Bloomcode: Knowledge

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

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Communication

Bloomcode: Comprehension

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

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Evaluation

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

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Communication

Bloomcode: Knowledge

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

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Evaluation

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

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Evaluation

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

Difficulty: Easy

Learning Objective: Describe the three business models for business-to-business electronic commerce.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Communication

Bloomcode: Comprehension

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

Difficulty: Easy

Learning Objective: Describe the three business models for business-to-business electronic commerce.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Communication

Bloomcode: Comprehension

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

Difficulty: Easy

Learning Objective: Describe the three business models for business-to-business electronic commerce.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Communication

Bloomcode: Comprehension

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

Difficulty: Easy

Learning Objective: Describe the three business models for business-to-business electronic commerce.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Reflective Thinking

Bloomcode: Analysis

27) Horizontal exchanges connect buyers and sellers across many industries.

Difficulty: Easy

Learning Objective: Describe the three business models for business-to-business electronic commerce.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Communication

Bloomcode: Knowledge

28) Cybersquatting is illegal.

Difficulty: Medium

Learning Objective: Identify the ethical and legal issues related to electronic commerce, providing examples.

Section Reference: 7.4 Ethical and Legal Issues in E-Business

AACSB: Communication

Bloomcode: Knowledge

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

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Reflective Thinking

Bloomcode: Comprehension

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

Difficulty: Medium

Learning Objective: Identify the ethical and legal issues related to electronic commerce, providing examples.

Section Reference: 7.4 Ethical and Legal Issues in E-Business

AACSB: Communication

Bloomcode: Knowledge

Question type: Multiple Choice

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

a) Forward auction

b) Reverse auction

c) Name your Own Price

d) Electronic Marketplace

e) Multichanneling

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Analytic

Bloomcode: Analysis

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

a) Banner ads

b) Pop-up or pop-under ads

c) Spamming

d) Permission marketing

e) Viral marketing

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Evaluation

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

a) Business-to-business electronic commerce, business-to-customer electronic commerce

b) Electronic commerce, electronic business

c) Business-to-customer electronic commerce, business-to-business electronic commerce

d) Business-to-business electronic commerce, intrabusiness electronic commerce

e) Electronic business, electronic commerce

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Reflective Thinking

Bloomcode: Synthesis

34) ____________ organizations have a limited geographical reach.

a) Brick-and-mortar

b) Business-to-consumer

c) Click-and-mortar

d) Virtual

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Comprehension

35) The _____________ strategy for large retailers, with its accompanying high overhead costs, has become a liability rather than an asset.

a) Brick-and-mortar

b) Business-to-consumer

c) Clicks-and-mortar

d) Virtual

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Comprehension

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

a) The product or service sold

b) The process by which the product is produced

c) The delivery agent or intermediary

d) The size of e-commerce transactions

e) None of these

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Reflective Thinking

Bloomcode: Comprehension

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

a) government-to-citizen

b) consumer-to-consumer

c) business-to-business

d) business-to-consumer

e) consumer-to-business

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Knowledge

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

a) business-to-employee

b) consumer-to-consumer

c) consumer-to-business

d) business-to-consumer

e) government-to-business

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Knowledge

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

a) Limited geographical reach

b) Added complexity combining two different environments

c) Customers uncomfortable with online transactions

d) No face-to-face interaction with customers

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Knowledge

40) __________ represents the vast majority of e-commerce.

a) B2B

b) B2C

c) C2C

d) G2C

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Analytic

Bloomcode: Evaluation

41) In a reverse auction, the __________ bidder wins.

a) lowest

b) highest

c) neutral

d) nobody wins since this auction type doesn’t exist

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Comprehension

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

a) Affiliate

b) Electronic

c) Group

d) Viral

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Analytic

Bloomcode: Analysis

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

a) Makes national and international markets more accessible.

b) Lowering costs of processing, distributing, and retrieving information.

c) Access a vast number of products and services around the clock.

d) Ability to easily and conveniently deliver information, services, and products to people in cities, rural areas, and developing countries.

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Analytic

Bloomcode: Evaluation

44) Direct payment of Employment Insurance benefits is an example of ______ e-commerce.

a) government-to-citizen

b) consumer-to-consumer

c) consumer-to-business

d) business-to-consumer

e) business-to-business

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Reflective Thinking

Bloomcode: Application

45) If you are a worker managing your fringe benefits over your company’s intranet, you are engaging in _________ e-commerce.

a) business-to-business

b) business-to-consumer

c) consumer-to-consumer

d) business-to-employee

e) government-to-citizen

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Reflective Thinking

Bloomcode: Application

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

a) Purchases often follow successful online searches.

b) Shopping carts are often abandoned after unsuccessful online searches.

c) Retailers will provide fewer product details to avoid information overload for customers.

d) Customers will be able to find the closest store offering the product that they want.

e) Customers will have more relevant product information in the near future.

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Reflective Thinking

Bloomcode: Application

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

a) forward

b) static

c) reverse

d) physical

e) simple

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Knowledge

48) eBay uses a _____ auction.

a) forward

b) static

c) reverse

d) physical

e) simple

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Application

49) _____ auctions employ a request for quotation.

a) Forward

b) Static

c) Reverse

d) Physical

e) Simple

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Knowledge

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

a) Forward

b) Static

c) Reverse

d) Physical

e) Simple

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Knowledge

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

a) Find-the-best-price

b) Electronic tendering system

c) Name-your-own-price

d) Online direct marketing

e) Affiliate marketing

Difficulty: Hard

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

52) ___________ involves business requesting quotes from suppliers.

a) Find-the-best-price

b) Electronic tendering system

c) Name-your-own-price

d) Online direct marketing

e) Affiliate marketing

Difficulty: Hard

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

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

a) Find-the-best-price

b) Electronic tendering system

c) Name-your-own-price

d) Online direct marketing

e) Affiliate marketing

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Analytic

Bloomcode: Application

54) Which type of electronic commerce is the largest by volume?

a) Business-to-employee

b) Consumer-to-consumer

c) Business-to-business

d) Business-to-consumer

e) None of these

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Reflective Thinking

Bloomcode: Evaluation

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

a) Brand

b) Click-through

c) Impression-based

d) Performance-based

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Reflective Thinking

Bloomcode: Knowledge

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

a) Hands-on customer service

b) Guidance on the latest fashions

c) Trying on/looking at the products

d) All of the above are things that couldn’t originally be provided

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Reflective Thinking

Bloomcode: Application

57) Which type of electronic commerce does Amazon practice?

a) Business-to-employee

b) Consumer-to-consumer

c) Consumer- to-business

d) Business-to-consumer

e) Employee-to-business

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Reflective Thinking

Bloomcode: Application

58) How are other retailers competing with Amazon?

a) They are closing their stores and moving toward online only.

b) They are shipping products from more warehouses just like Amazon.

c) They are opening more stores to increase their presence.

d) They are shipping directly from their stores.

e) None of the above

Difficulty: Medium

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

Section Reference: Case 7.1 The Omni-Channel Strategy to Compete with Amazon

AACSB: Information Technology

Bloomcode: Knowledge

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

a) Business-to-business

b) Collaborative commerce

c) Intrabusiness

d) Business-to-consumer

e) Consumer-to-business

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Knowledge

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

a) You can buy from home 24 hours per day, 7 days per week.

b) You have a wider variety of products to choose from.

c) You typically cannot access additional information, so you do not have information overload.

d) You can easily compare prices and features.

e) You can find unique items.

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Evaluation

61) An electronic storefront represents ____________.

a) the Internet

b) a single store

c) multiple stores

d) a web page

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Comprehension

62) __________ are electronic billboards.

a) Advertisements

b) Banners

c) Pop-up ads

d) Pop-under ads

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Knowledge

63) Which of the following is not an electronic commerce application?

a) Home banking

b) Buying stocks

c) Evaluating an employee

d) Conducting an auction

e) Buying real estate

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Analysis

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

a) You can buy from home, 24 hours per day.

b) You have only a few products to choose from.

c) You can obtain detailed information on products.

d) You can compare competitors’ products and prices.

e) All of these

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Evaluation

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

a) Disintegration

b) Supply chain integration

c) Direct sales

d) Disintermediation

e) Value-added services

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Comprehension

66) Cyberbanking offers all of the following advantages except:

a) It is convenient for customers.

b) It saves time for customers.

c) It includes inexpensive transactions for the bank.

d) It can help recruit remote customers.

e) It is more expensive for the customer.

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Knowledge

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

a) Too many fares

b) Mistakes in fares

c) Too few fares

d) No fares offered on certain routes

e) Too many fares offered on certain routes

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Application

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

a) Business-to-business

b) Business-to-consumer

c) Government-to-citizen

d) Business-to-employee

e) Mobile commerce

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Analysis

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

a) Internet ads can be updated at any time at minimal cost.

b) Internet ads can reach large numbers of potential buyers all over the world.

c) Internet ads are always more effective than other types of advertising.

d) Internet ads can make effective use of multimedia.

e) Internet ads are current.

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Analysis

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

a) keyword banner

b) random banner

c) pop-up ad

d) pop-under ad

e) text box

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Information Technology

Bloomcode: Comprehension

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

a) Viral marketing

b) Personalized marketing

c) Permission marketing

d) Paper catalogs

e) Direct mail

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Communication

Bloomcode: Comprehension

72) _____ refers to online word-of-mouth marketing.

a) Permission marketing

b) One-to-one marketing

c) Personalized marketing

d) Viral marketing

e) Direct mail

Difficulty: Easy

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Knowledge

73) The _________ marketplace is similar to the B2C model in which the buyer comes to the seller’s site, views catalogs, and places and order.

a) buy-side

b) sell-side

c) reverse auction

d) e-procurement

Difficulty: Easy

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Analytic

Bloomcode: Knowledge

74) ____________ exchanges connect buyers and sellers in a given industry.

a) Functional

b) Horizontal

c) Mixed

d) Vertical

Difficulty: Easy

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Analytic

Bloomcode: Knowledge

75) ____________ exchanges are used mostly for MRO materials.

a) Functional

b) Horizontal

c) Mixed

d) Vertical

Difficulty: Medium

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Analytic

Bloomcode: Comprehension

76) In the _____ marketplace model, organizations attempt to sell their products or services to other organizations electronically.

a) buy-side

b) sell-side

c) group purchasing

d) desktop purchasing

e) electronic exchange

Difficulty: Easy

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Analytic

Bloomcode: Knowledge

77) The key mechanisms of the _____ marketplace model are forward auctions and electronic catalogs that can be customized for each large buyer.

a) buy-side

b) sell-side

c) group purchasing

d) desktop purchasing

e) electronic exchange

Difficulty: Easy

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Analytic

Bloomcode: Knowledge

78) In the _____ marketplace model, EC technology is used to streamline the purchasing process in order to reduce the cost of items purchased, the administrative cost of procurement, and the purchasing cycle time.

a) buy-side

b) sell-side

c) auctions

d) group purchasing

e) electronic exchange

Difficulty: Easy

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Information Technology

Bloomcode: Knowledge

79) In the _____ B2B application, the orders of many buyers are aggregated so that they comprise a large volume, in order to merit more seller attention.

a) buy-side

b) sell-side

c) auctions

d) group purchasing

e) electronic exchange

Difficulty: Easy

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Analytic

Bloomcode: Knowledge

80) In _____, direct and indirect materials in one industry are purchased on an as-needed basis.

a) horizontal exchanges

b) vertical exchanges

c) buy-side marketplaces

d) functional exchanges

e) sell-side marketplaces

Difficulty: Easy

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Analytic

Bloomcode: Knowledge

81) _____ connect buyers and sellers across many industries and are used mainly for indirect materials.

a) Horizontal exchanges

b) Vertical exchanges

c) Buy-side marketplaces

d) Functional exchanges

e) Sell-side marketplaces

Difficulty: Easy

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Analytic

Bloomcode: Comprehension

82) A(n) _____________ provides the right to use but not distribute software .

a) copyright

b) patent

c) intellectual property

d) open source

Difficulty: Easy

Learning Objective: Identify the ethical and legal issues related to electronic commerce, providing examples.

Section Reference: 7.4 Ethical and Legal Issues in E-Business

AACSB: Ethics

Bloomcode: Knowledge

83) Domain tasting is _____________.

a) illegal

b) legal

c) the same as cybersquatting

d) both A and C

Difficulty: Medium

Learning Objective: Identify the ethical and legal issues related to electronic commerce, providing examples.

Section Reference: 7.4 Ethical and Legal Issues in E-Business

AACSB: Ethics

Bloomcode: Knowledge

84) Selling bogus investments and setting up phantom business opportunities are examples of ____________.

a) cybersquatting

b) domain name abuse

c) fraud on the internet

d) internet taxation

Difficulty: Medium

Learning Objective: Identify the ethical and legal issues related to electronic commerce, providing examples.

Section Reference: 7.4 Ethical and Legal Issues in E-Business

AACSB: Ethics

Bloomcode: Comprehension

85) The practice of using similar but not identical domain names is called _____.

a) domain spoofing

b) domain masquerading

c) domain tasting

d) cybersquatting

e) domain fraud

Difficulty: Easy

Learning Objective: Identify the ethical and legal issues related to electronic commerce, providing examples.

Section Reference: 7.4 Ethical and Legal Issues in E-Business

AACSB: Information Technology

Bloomcode: Knowledge

86) _____ refers to the practice of registering or using domain names for the purpose of profiting from the goodwill or trademark belonging to someone else.

a) Domain spoofing

b) Domain masquerading

c) Domain tasting

d) Cybersquatting

e) Domain fraud

Difficulty: Easy

Learning Objective: Identify the ethical and legal issues related to electronic commerce, providing examples.

Section Reference: 7.4 Ethical and Legal Issues in E-Business

AACSB: Information Technology

Bloomcode: Knowledge

87) Companies use Web sites for all of the following reasons except:

a) To reduce operational and transaction costs.

b) To enhance their reputation.

c) To sell goods and services.

d) To reduce the amount of actual cash they need to deal with.

e) To induce people to visit a physical location.

Difficulty: Easy

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Reflective Thinking

Bloomcode: Evaluation

88) How are Canadian Tire and Loblaw competing with Amazon?

a) They are closing their stores and moving toward online only.

b) They are shipping products from more warehouses just like Amazon.

c) They are opening more stores to increase their presence.

d) They are offering omni-channel service, i.e. home delivery for large items and pick-up centers for small items.

e) None of the above

Difficulty: Medium

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

Section Reference: Case 7.1 The Omni-Channel Strategy to Compete with Amazon

AACSB: Information Technology

Bloomcode: Knowledge

89) How did Amazon respond to the click-and-mortar competition?

a) By changing to bricks-and-mortar

b) By changing to trick-and-mortar

c) By offering same day home delivery

d) By offering free products

e) None of the above

Difficulty: Medium

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

Section Reference: Case 7.1 The Omni-Channel Strategy to Compete with Amazon

AACSB: Information Technology

Bloomcode: Knowledge

90) How are other retailers competing with Amazon?

a) By offering omni-channel service

b) By offering click-and-collect service

c) By offering grab-and-go locker sytem

d) All of the above

e) None of the above

Difficulty: Medium

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

Section Reference: Case 7.1 The Omni-Channel Strategy to Compete with Amazon

AACSB: Information Technology

Bloomcode: Knowledge

91) Which of the following provides a disruptive Taxi service?

a) Nber

b) Aber

c) Uber

d) Iber

e) None of the above

Difficulty: Easy

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

Section Reference: Case 7.2 Uber: Disrupting the Taxi Industry

AACSB: Information Technology

Bloomcode: Knowledge

92) What is Uber pricing?

a) standard local rates

b) dynamic pricing

c) both (a) and (b)

d) None of the above

Difficulty: Medium

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

Section Reference: Case 7.2 Uber: Disrupting the Taxi Industry

AACSB: Information Technology

Bloomcode: Knowledge

93) Who can drive for Uber?

a) any individual with personal insurance

b) any individual with commercial insurance

c) any individual without any insurance

d) None of the above

Difficulty: Medium

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

Section Reference: Case 7.2 Uber: Disrupting the Taxi Industry

AACSB: Information Technology

Bloomcode: Knowledge

94) Which of the following is an issue in e-tailing?

a) channel conflict

b) viral marketing

c) volume purchasing

d) None of the above

Difficulty: Hard

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Information Technology

Bloomcode: Knowledge

95) Which of the following is a click-only bank?

a) Royal bank

b) Bank of Montreal

c) Simple

d) Click-now

e) None of the above

Difficulty: Medium

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

Section Reference: IT’s About Business, 7.3 Can Simple Disrupt Traditional Banking?

AACSB: Information Technology

Bloomcode: Knowledge

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

a) Trim Grass is now multichanneling.

b) Trim Grass needs to think about how to ship the seed.

c) Trim Grass will have to collect sales tax from all sales.

d) Trim Grass will have more expenses.

e) Trim Grass will need to consider different advertising methods.

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Analytic

Bloomcode: Analysis

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

a) Electronic checks

b) Electronic credit cards

c) Purchasing cards

d) Person-to-person payments

e) Stored–value money cards

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Analytic

Bloomcode: Analysis

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

a) Trim Grass is using an e-commerce model.

b) Trim Grass is using an e-business model.

c) Trim Grass is using a forward auction.

d) Trim Grass is an electronic marketplace.

e) Trim Grass needs to worry about channel conflict.

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

99) Purchasing cards are the ___________ equivalent of electronic credit cards.

a) B2B

b) B2C

c) C2C

d) G2C

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

100) _________ is(are) used for unplanned B2B purchases.

a) E-cheques

b) Electronic credit cards

c) Purchasing cards

d) Stored value money cards

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

101) ____________ contain a chip called a microprocessor that can store a considerable amount of information.

a) E-checks

b) Person-to-person payments

c) Smart cards

d) Stored-value money cards

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

102) Which of the following is NOT a form of electronic cash?

a) Person-to-person payments

b) Purchasing cards

c) Smart cards

d) Stored-value money cards

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

103) All of the following are limitations of traditional payment methods in electronic commerce except:

a) Cash cannot be used because there is no face-to-face contact.

b) Paying for goods and services via the mail takes more time.

c) Not all organizations accept credit cards.

d) It is more secure for the buyer to use the telephone than to complete a secure transaction on a computer.

e) None of these

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

104) _____ are a payment mechanism that are similar to regular bank cheques but are transmitted electronically, with a signature in digital form.

a) Electronic cheques

b) Electronic credit cards

c) Electronic cash transactions

d) Electronic wallets

e) Electronic debit cards

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

105) _____ use credit card numbers, transmitted electronically over the Internet, to pay for goods and services. They are either unencrypted or encrypted, with coded data readable by an intermediary between the buyer’s and seller’s banks.

a) Electronic cheques

b) Electronic credit cards

c) Electronic cash transactions

d) Electronic wallets

e) Electronic debit cards

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

106) _____ are typically used for unplanned B2B purchases for amounts under $2000.

a) Electronic cheques

b) Stored-value money cards

c) Purchasing cards

d) Smart cards

e) Person-to-person payments

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

107) ______ are a form of e-cash that enable you to store a fixed amount of prepaid money and then spend it as necessary.

a) Electronic cheques

b) Stored-value money cards

c) Purchasing cards

d) Smart cards

e) Person-to-person payments

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

108) _____ contain a chip that can store information and be used for several purposes.

a) Electronic checks

b) Stored-value money cards

c) Purchasing cards

d) Smart cards

e) Person-to-person payments

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

109) _____ enable two individuals to transfer funds without using a credit card.

a) Electronic checks

b) Stored-value money cards

c) Purchasing cards

d) Smart cards

e) Person-to-person payments

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

110) _____ are software mechanisms that provide security measures and convenience for electronic commerce purchasing.

a) Electronic cheques

b) Digital wallets

c) Purchasing cards

d) Smart cards

e) Person-to-person payments

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Information Technology

Bloomcode: Knowledge

Question type: Essay

111) Differentiate between pure and partial electronic commerce. Provide examples of companies in each category.

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Analytic

Bloomcode: Comprehension

112) Discuss the various types of electronic commerce.

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Knowledge

113) You have an entrepreneurial spirit and decide to start your own business. You know you first have to consider the degree of digitization you are going to pursue for your new business. What does this mean? What are your options? Which option would you choose and why?

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Communication

Bloomcode: Knowledge

114) Differentiate between forward and reverse auctions.

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Analytic

Bloomcode: Evaluation

115) Differentiate among sell-side marketplaces, buy-side marketplaces, and electronic exchanges.

Difficulty: Hard

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce

AACSB: Analytic

Bloomcode: Evaluation

116) Differentiate between electronic storefronts and electronic malls, and provide examples of each.

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Evaluation

117) Discuss the reasons for B2C E-commerce failures.

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Evaluation

118) Discuss the benefits and limitations of electronic commerce.

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Analytic

Bloomcode: Evaluation

119) What is disintermediation? How does the web facilitate disintermediation? Is disintermediation inevitable for all industries? Why or why not?

Difficulty: Medium

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Information Technology

Bloomcode: Knowledge

120) Discuss the various business-to-consumer applications (e.g., e-tailing, electronic storefronts, electronic malls).

Difficulty: Hard

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Communication

Bloomcode: Knowledge

121) Discuss the various methods of online advertising.

Difficulty: Hard

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

Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce

AACSB: Analytic

Bloomcode: Evaluation

122) Discuss the following electronic commerce business models and give examples of each type: online direct marketing, electronic tendering system, name-your-own-price, find-the-best-price, affiliate marketing, and viral marketing.

Difficulty: Medium

Learning Objective: Describe the six common types of electronic commerce.

Section Reference: 7.1 Overview of E-Business and E-Commerce

AACSB: Reflective Thinking

Bloomcode: Application

123) What is domain tasting? Should it be made illegal?

Difficulty: Hard

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific examples of each issue.

Section Reference: 7.4 Ethical and Legal Issues in E-Business

AACSB: Information Technology

Bloomcode: Knowledge

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