BAM 570 – E-Commerce Management -Unit 1-4 Exam
Publisher: Pearson Prentice Hall
Text: Electronic Commerce: A Managerial Perspective
Sixth Ed ition
Efraim Turban, David King, Jae Lee, Ting-Peng Liang, Deborrah Turban
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1) The 2008 Olympics in Beijing was the most digital Olympics to date for each of the following reasons except:
many of the tickets were purchased online by people worldwide, using Beijing Gehue Ticketmaster, in what is called business-to-business (B2B) e-commerce.
the International Olympic Committee launched a YouTube channel to broadcast clips that were accessible in many developing countries.
millions watched the Olympics through online videos and Internet-enabled cell phones and other mobile devices.
Global Positioning Systems (GPS) were used to track the position of sailing and rowing boats.
EC can take several forms depending on the degree of digitization of the following three dimensions:
the product or service sold, the process and the delivery method.
the busi ness process, the collaboration and the transaction.
the payment method, the delivery method and the production method.
the marketing channel, the agent and the collaboration method.
Purely physical companies are referred to as companies, whereas companies that are engaged only in EC are considered companies.
pure play, virtual
cl ick-and-rnortar: cl ick-and-brick
virtual; pure play
A business, such as Apple, doing online transactions with its trading partners is an example of _
5) refers to the second-generation of Internet services that let people collaborate and share information online in new ways such as social networks and wikis.
6) Which of the following is not a characteristic of the Digital Revolution?
Many business processes expedited by up to 50 percent
Intell igent search agents to help manage information overload
A high rate of obsolescence
Fraud and other cybercons carried out via the Internet
Many companies employ a(n) , which is a gateway for customers, employees, and partners to reach corporate information and to communicate with the company.
The digital enterprise shifts the focus from managing individual information resources such as devices, applications and data to that define the business and ultimately deliver value to customers and end users.
orchestrati ng the services and workflows
organizing supply chains
transforming revenue models
Because the rate of change and the level of uncertainty in the marketplace are expected to accelerate, organizations are _
unable to react quickly enough to threats and opportunities.
operating under increasing pressures to produce more products, faster, and with fewer resources.
making fewer decisions and/or decisions less frequently.
considering less information when making decisions.
Large private organizational buyers and government agencies make large-volume or large-value purchases through , also known as reverse auctions.
electronic tendering systems
online direct marketing
11) Benefits of EC to organizations include each of the following except:
supply chain improvements.
12) All of the following are benefits of EC to society except:
more public services.
closing the digital divide.
fewer permits and less tax.
improve homeland security.
Eastern Mountain Sports introduced tools in order to increase collaboration, information sharing and communication among stores and their employees, suppliers and customers.
Traditional and electronic markets have three main functions which include each of the following except:
matching buyers and sellers.
faci I itati ng the exchange, purchase or transfer of information, goods, services and payments associated with transactions.
financing the transformation of raw materials into finished products.
providing an institutional infrastructure, such as a legal and regulatory framework that enables the efficient functioning of the market.
The cost curves of digital products differ from the cost curves of physical products because in digitization _
most costs are variable and fixed costs are low
most costs are fixed and variable costs are very low
most costs are fixed, but variable costs are high
all costs are variable
Activities related to order fulfillment, inventory management, purchasing from suppliers, accounting and finance, packaging and delivery are done in what is termed the of the business.
17) Insurance companies and hotels sell services through storefronts called _
Human or electronic intermediaries attempt to reduce each of the following limitations of direct interaction except:
lack of privacy.
Customized catalogs are especially useful in B2B e-commerce for each of the following reasons except:
e-catalogs can be designed to show only the items that the employees in a specific organization are allowed to purchase.
I ntranets, in particu lar, can del iver customized catalogs to different business customers.
e-catalogs can show the buyer’s ID number for the item, model, or SKU number rather than the seller’s ID numbers.
e-catalogs can be customized to show the same item to different customers at different prices, reflecting discounts or purchase-contract agreements.
E-catalogs have several common characteristics. Which of the following is not a characteristic of e-catalogs?
Easy to create without advanced information technology
Easy to update product information
Easy to customize
Good search and comparison capabilities
A(n) is an order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop.
electronic shopping cart
22) All of the following are benefits of e-auctions to buyers except:
can liquidate large quantities quickly.
convenience of bidding anywhere and any time.
opportunity to bargain.
opportunities to find unique items.
23) are audio files that enable companies to deliver audio-specific content, including music, speeches, radio-style presentations and more.
According to Internet Retailer (2007), approximately percent of adult U.S. Internet users shop online or research offline sales online.
25) All of the following categories have been selling well online except:
health and beauty.
With all else being equal in the online environment, goods with any of the following product characteristics are expected to facilitate greater online sales except:
relatively expensive items.
high brand recognition.
frequently purchased items.
27) Dell’s distribution strategy is best described as _
a brick-and-mortar strategy
a shared service mall strategy
a cl ick-and-mortar strategy
direct marketing from a manufacturer
28) A marketer that uses e-mail to advertise to potential customers is called a _
29) All of the following are revenue models for online independent travel agents except:
direct marketing revenues.
direct revenues from commissions.
subscription or membership fees.
revenue sharing fees.
30) Which is not a characteristic of social computing technologies?
Social computing is increasingly playing a larger role in corporate online strategy.
Social computing has shifted online travel from passive selling to active customer engagement.
Companies that implement social computing technologies on their own websites should view it primarily as a sales tool and less as supporting business goals.
Social computing plays an important role by providing more correct and relevant information.
31) One of the characteristics of Web 2.0 in the travel industry is _
Characteristics of the job market and employment placement include all of the following except:
they are very stable.
there is an unbalanced supply and demand.
career portals on corporate websites reduce recruitment costs.
the job market has essentially moved online.
33) The TRUSTe seal is an example of _
a business rating
a B2B exchange
Atn) is someone whose advice or view carries some weight in making a final purchasing decision.
Marketing and advertising approaches have evolved from mass marketing to market segmentation to one-to-one marketing. This evolution occurred because _
the marketing focus shifted from customers to products
companies sought to decrease the number of marketing campaigns
concerns about privacy have diminished
the Internet enabled companies to better communicate with customers and understand their needs and buying habits
By increasing customer loyalty, EC companies can achieve each of the following benefits except:
lower marketing and advertising costs.
higher warranty claims costs.
lower transaction costs.
lower resistance to competitors.
Procter & Gamble (P&G) used the Internet in the new product development of Whitestrips. a teeth-brightening product. Based on this experience, P&G _
decided to add Internet research to its traditional marketing test model
could not determine the target market segments for the Whitestrips
learned that the cost of online surveys was about the same as similarly sized telephone surveys, but online surveys expedited research considerably
reduced the time-to-market from concept to market launch by approximately two years
is one of the most controversial issues in EC
has not helped Internet marketers target their ads
is a widely used method for mass marketing
is being replaced by adware and spyware programs
Two key factors limiting the use of personalization to more precisely target marketing efforts to individual customers are _
matching profiles with product offerings and delivering those offerings
communication costs and filtering costs
privacy and trust issues
lack of customer loyalty and service customization costs
40) Which of the following statement about Web mining is false? (Docstoc)
Web mining refers to the use of data mining techniques for discovering and extracting information from Web documents.
Web mining explores both Web content and Web usage.
Web mining uses customer data to infer or predict customer interest in other products or services.
Usage analysis is derived from cl ickstream data.
41) What is the key problem that biometric marketing is intended to solve?
Knowing the identity of the actual shopper
Improving accuracy of the shopper’s data
Increasing the speed of order processing
Creating a loyalty program
42) , such as concerts and videos, can generate tremendous public excitement and bring huge crowds to a website.
Live Web events
As the volume of customers, products, vendors, and information increases, it becomes uneconomical or impossible for customers to consider all relevant information, and available products/services. The practical solution to handling such information overload is _
to use permission marketing
to use software or intelligent agents
to increase the use of ad agencies
to design Web sites with minimal content
44) can be supported more effectively and efficiently through direct buyer-seller negotiations that are either offline or online, which can be done in private exchanges.
45) What are the two types of materials and supplies that are traded in B2B?
Digital and physical
Direct and indirect
Horizontal and vertical
Commodities and nonproduction
46) Nonproduction materials such as equipment and tools that support production are called
47) The major B2B service industries include each of the following except:
By using the Internet and automatic-response software agents, GE reduced the cost of customer service calls from $5.00 per call when done by phone to per electronically answered call.
Companies use to sell their unneeded assets for quick disposal or to dispose of excess, obsolete and returned products.
Benefits of e-procurement over traditional procurement methods include all of the following except:
increasing the productivity of purchasing agents.
lowering purchase prices through product standardization, reverse auctions, volume discounts, and consolidation of purchases.
increasing the skill requirements and training needs of purchasing agents.
streamlining invoice reconciliation and dispute resolution.
51) All of the following are true of dynamic pricing except:
anonymity often is a key ingredient.
buyers and sellers interact with bids and offers in real time.
e-malls are a prime example of this pricing model.
a deal is struck when there is an exact match between a buyer and a seller on price, volume, and other variables, such as location or quality.
Denver Boards, a B2B manufacturer of snowboard equipment, can reach and target new retail customers in order to grow its online business by _
hiring an affiliation service to drive traffic to its website
reviewing POS data
advertising in traditional media
53) The e-SCM process that includes integrated production and distribution processes is
supply chain replenishment
54) When planning, designing and implementing integrated supply chain operations, management requires a holistic focus that takes into account all of the following primary factors except:
strategy, structure, and people.
location and revenues.
IT and business processes.
culture, including performance measurement, mon itori ng, and incentives.
55) Which of the following about supply chain problems is not true?
Supply chains in military and business operations have been plagued with problems for generations.
Supply chain problems have sometimes caused armies to lose wars and companies to go out of business.
Supply chain problems are most apparent in complex supply chains.
Supply chain problems are lowest when many business partners are involved.
56) The last fifteen orders from a manufacturer to its suppliers range from $100,000 to $8,750,000. This is an example of _
the bullwhip effect
Software that helps integrate different types of information systems among collaborating companies is called _
58) All of the following are types of communication and collaboration done in real time except:
59) The Lotus Notes/Domino suite includes all of the following except:
60) All of the following apply to instant video except:
It evolved from the spread of instant messaging and Internet telephony.
The idea is for a kind of video chat room that allows users to chat in real time and see the people they are communicating with.
It is the natural result of wanting to link people via both voice and audio.
d.The highest quality approach is to add video cameras to the participants’ computers.
61) An example of G2C is _
an employee at the Chamber of Commerce gets local demographic data from a U.S. census site.
a driver applies for and pays for the renewal of his auto tag online.
a road contractor uses the Internet to submit a closed bid on a paving contract.
a regional hospital conducts an online reverse auction for cleaning supplies.
62) All of the following are potential advantages of e-Iearning except:
college professors are anxious to develop new online courses.
knowledge retention is higher.
learning time is reduced.
it costs less to deliver education online than in a traditional classroom.
63) One of the facilitators of e-Iearning is technology such as wikipedia.org.
64) All of the following describe Second Life (SL) and SL Educators (SLED) except:
SLED sponsors meet-and-greet events in SL, helping real-life educators to connect with each other.
Educators have been slow to embrace SL because of the complexity of its media-rich features.
Students and educators can work together in SL from anywhere in the world as part of a globally networked virtual classroom environment.
Using SL as a supplement to traditional classroom environments provides new opportunities for enriching existing curricula.
65) More and more people are willing to pay for digital music, as shown by the success of
66) The exclusive online publication of Stephen King’s e-book Riding the Bullet _
was a failure because the cost of the book was too high.
produced very few sales.
was an unqualified success and established electronic publishing as a legitimate competitor for traditional publishers.
was disrupted by hackers who breached security, then distributed free copies of the book.
67) A major purpose of an organizational knowledge base is to support and allow _
Food Lion is a U.S. supermarket chain that relies on to compete against Wal-Mart and other stores.
low prices and vast selection
m-commerce technology for customer convenience
huge online selection and fast delivery
organic and unique gourmet foods
The development of m-commerce is being driven by all of the following technological, business, social, and economic factors except:
the transition to a manufacturing economy.
the widespread availability of more powerful mobile devices.
the growth of a handset cu Iture and mobile workforce.
the improved price/performance of mobile services.
As in e-commerce, m-commerce B2C applications are concentrated in each of the following areas except:
A is suitable for mobile users who need to make very short-range device-to-device wireless connections within a small space, such as a single room, and most commonly with Bluetooth.
personal area network
local area network
wireless area network
Wi-Fi area network
72) The major enterprise mobile applications are all of the following except:
e-mail and cell phone contacts.
sales force automation.
field force automation.
research and development.
73) You are walking near a coffee shop and suddenly your cell phone beeps with a message: “Come inside and get a free biscotti with any purchase.” This is an example of _
location-based advertisi ng.
customer relationship management.
Wikipedia is a free online collaborative encyclopedia that had to resolve each of the following problems except:
people with malicious agendas posting false information.
competition from the bigger Encyclopedia Britannica.
poor or substandard quality of the content.
invasions of privacy.
75) Perspectives about Web 2.0 include all of the following except:
Web 2.0 is organized around pages, software, technology, individuals, and corporations.
Web 2.0 has become the framework for bringing together the contributions of millions of people to enhance creativity, information sharing, and collaboration.
Web 2.0 communities are one of the most powerful influences on society.
Web 2.0 stands to greatly improve internal business processes and marketing.
The real estate brokerage industry has been disrupted by companies such as Zillow and HomeGain for each of the following reasons except:
Homeowners can enter zillow.com and go to zestimate to get an approximation of their home’s market value with a map of the neighborhood.
The Zillow and Homegain sites provide more services and information than Web 1.0.
The Web 2.0 real estate sites have driven down commissions from 6 percent to almost 1 percent.
Homeowners can get comparisons of the estimated price of their home with neighbors’ homes.
77) All of the following are true about YouTube except:
YouTube is building a community that is highly motivated to watch and share videos.
The company encourages users to contact YouTube.
Some experts think Yahoo paid too much for YouTube.
The growth of YouTube has been extremely rapid, depending largely on referrals from users who alerted their friends and family to a favorite video.
78) Distinct layers of the Web 3.0 topology include each of the following except:
appl ication services.
serviced cl ients.
An evolving extension of the Web in which Web content can be expressed not only in natural language, but also in a form that can be understood, interpreted, and used by intelligent computer software agents is known as _
mobile social networks
80) For companies, it may be even more important to change strategies quickly.
Projections of the busi ness, technological, pol itical, economic, and other environ ments are called _
A specific outcome of the strategy initiation phase is the , which includes the vision, mission, value proposition, goals, capabilities, constraints, strengths, and weaknesses of the company.
val ue proposition
After four years in business, a magazine publisher decides to add the online distribution of its magazine to its existing traditional publishing business. The company would need to develop a _
busi ness strategy.
busi ness case.
84) The pricing strategy means adding up all the costs involved, such as material, labor, rent, overhead, and so forth, and adding a percentage mark-up as profit.
With the balanced scorecard approach, the term balance arises because the combined set of measures is supposed to encompass indicators that are all of the following except:
core and non-core.
financial and nonfinancial.
leading and lagging.
quantitative and qualitative.
Not all EC investments need to be formally justified. All of the following are cases where formal evaluation may not be needed except:
when the value of the investment is relatively small for the organization.
when competitors have made that type of investment.
when the relevant data are not available, are inaccurate, or are too volatile.
when the EC project is mandated and must be done regardless of the costs and benefits.
87) Metrics are used to describe all of the following except:
the ratio of costs to benefits.
88) In G2C, an example of a tangible EC metric from the buyer’s perspective is _
ease of use of EC
convenience in purchasing
profit per customer
cost/price of the product
89) Transaction costs include all of the following except:
production costs incurred for labor and overhead.
search costs incurred by buyers and sellers in locating each other and specific products and services.
negotiation costs that result from meetings, communication-related expenses, exchanges of technical data or brochures, entertainment, and legal costs.
monitoring costs incurred when buyers and sellers make sure that the exchange proceeds according to the terms under which the sale was made.
McAfee allows users of its VirusScan virus-detection software to automatically update the latest security patches online. This is an example of to attract customers who value this automatic update.
product or service differentiation
91) is money invested in a business by an individual or a group of individuals in exchange for equity in the business.
A site is an exact duplicate of the original Website physically located on a Web server on another continent.
The Web hosting option under which the business acquires the hardware, software, staff, and dedicated telecommunications services needed to host a Website is called _
using a storebuilder
94) Creating content that offers upgraded or more expensive versions of the product is called
95) offers one of the most popular storefront packages with three levels of merchant solutions: starter, standard, and professional.
96) Which of the following is a major property right relevant to EC and websites?
Control of the use of the property
The right to any benefit from the property
The right to exclude others from the property
All are major property rights.
97) Which of the following is true about the scope of business ethics?
The scope of business ethics has expanded to encompass the nature and quality of the relationships with shareholders, customers, business partners, suppliers, the community, environment, and future generations.
The scope of business ethics has been limited to a company’s actions with regard to how it treats employees and obeys laws.
The scope of busi ness eth ics has not changed because laws have not changed.
The scope of business ethics has not changed even though laws have expanded.
98) Corporate Web policy guidelines include all of the following except:
issue word-of-mouth acceptable use policies (AUP).
make it clear to employees that they cannot use copyrighted or trademarked material without perm ission.
post disclaimers concerning content.
have attorneys with cyber law expertise review Web content.
Companies can improve their responsibility as custodians of customers’ personal data by implementing _
opt-in and opt-out information practices.
100) EC sellers need to protect against fraud and each of the following except:
customers who deny that they placed an order.
customers who give false credit card or bad check information in payment for products and services provided.
use of their name by imposter sellers.