Pamantasan ng Cabuyao

Katapatan Homes, Banay-Banay, City of Cabuyao, Laguna

COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

PRELIM EXAMINATION

Name : _____________________________ Section: _________ Score : _________

Subject: MKTG 11 (E-COMMERCE AND INTERNET MARKETING) Date : _________
Perfect Score: 50
General Instructions:
1. Write your answers clearly. No alterations
2. No Erasures. Minus points per erasures.
3. Do not CHEAT. Automatic zero on your scores.

MORSE TYPE. 2 points each

Write A if both statements are True Write C if the first statement is True and the second is False
Write B if both statements are False Write D if the first statement is False and the second is True.
______1. Price transparency refers to the ability of merchants to segment the market into groups willing to pay different
prices. Cost transparency refers to the ability of consumers to discover the actual costs merchants pay for products.
______2. The growth of mobile e-commerce almost doubled from 2011 to 2012. Approximately 80% of adults in the
United States use a social network on a daily basis.
______3. A company’s online inventory control process is an example of e-business, as opposed to e-commerce.
Ubiquity increases cognitive energy outlays.
______4. The fact that e-commerce is conducted on the basis of universal standards decreases market entry costs for
merchants. Customization involves changing a delivered product or service based upon a consumer’s preferences or past
purchasing behavior.
______5. Social e-commerce is the largest type of e-commerce. E-commerce as we know it today would not exist without
the Internet.
______6. Sharing economy companies are characterized by the free sharing of resources between the company and
consumers. Scale economies are efficiencies that result from flattening the hierarchy of an organization.
______7. A company’s strong linkages with its customers decreases switching costs. Interactivity that enables product
customization alters industry structure by reducing the threat of substitute.
______8. E-commerce has increased price competition in nearly all markets. Social technologies change industry
structure by shifting programming and editorial decisions to consumers and creating substitute entertainment products.
______9. A value proposition defines how a company’s product or service fulfills the needs of a customer. Firms that fail
to produce returns greater than alternative investments typically go out of business.
______10. An asymmetry exist whenever all participants in a market have equivalent resources. First movers are always
more successful than follower firms.

Multiple Choice
______1. The integration of video, audio, and text marketing messages into a single marketing message and consuming
experience is an example of:
a. richness b. ubiquity c. information density d. personalization
______2. Which of the following is the best definition of transaction cost?
a. the cost of changing prices c. the cost of finding suitable products
b. the cost of participating in a market d. the cost merchants pay to bring their goods to market
______3. Which of the following is not an example of a social network?
a. Wikipedia b. Twitter c. Pinterest d. Facebook
______4. Interactivity in the context of e-commerce can be described as:
a. the ability to physically touch and manipulate a product
b. the complexity and content of a message
c. the ability of consumers to create and distribute content.
d. The enabling of two-way communication between consumer and merchant.
______5. E-commerce can be said to have begun in:
a. 1983 b. 1985 c. 1995 d. 2001
______6. Above all, e-commerce is a ____phenomenon.
a. technology-driven b. finance-driven c. sociological d. government-driven
______7. Which of the following is one of the three primary societal issues related to e-commerce?
a. liability b. anonymity c. equity d. individual privacy
______8. In the B2C arena, _____ was the first truly large-scale digitally enabled transaction system.
a. Telex b. Baxter Heathcare c. French Minitel d. EDI
______9. All of the following were visions of e-commerce expressed during the early years of e-commerce except:
a. a nearly perfect competitive market c. disintermediation
b. friction-free commerce d. fast follower advantage\
______10. Which of the following is a characteristic of the consolidation phase of e-commerce?
Prepared by: Prof. Leslie Ann U. Gamundoy Noted by: Prof. Remedios J. Bucal
 a. predominance of pure online strategies c. first mover advantages
b. emphasis on revenue growth vs. profits d. shift to a business-driven approach
______11. Which element of the business model addresses the question of why a customer should buy from the firm?
a. revenue model b. competitive advantage c. market strategy d. value proposition
______12. Your company has just implemented a new, more efficient set of business processes that other firms cannot yet
obtain. This will enable your firm to adopt a strategy of:
a. cost competition b. scope c. scale d. focus
______13. A firm’s ______describes how a firm will produce a superior return on invested capital.
a. value proposition b. revenue model c. market strategy d. competitive advantage
______14. The ability to retain use attention and engagement is an important attribute for which revenue model?
a. advertising revenue model c. transaction fee revenue model
b. subscription revenue model d. sales revenue
______15. All of the following use an advertising revenue model except:
a. Twitter b. Yahoo c. Google d. Amazon
______16. A _____specifically details how you plan to find customers and to sell your product.
a. sales analysis b. business plan c. competitive strategy d. market strategy
______17. Which of the following is not a community provider?
a. LinkedIn b. Facebook c. Priceline d. Pinterest
______18. Which of the following is not a variation of the e-tailer business model?
a. bricks-and-clicks b. virtual merchant c. market creator d. manufacturer-direct
______19. What is the primary revenue model for e-distributor?
a. sales b. transaction fee c. advertising d. subscription
______20. W.W. Grainger is an example of which of the following business models?
a. B2B service provider b. exchange c. e-distributor d. industry consortia

Critical Thinking (5 points each)

1. Has a e-commerce changed the marketing of goods? If so, how?

2. Describe the four stages involve in business model disruption.

Answers:
I.MORSE TYPE
1. B
2. A
3. C
4. D
5. B
6. C
7. B
8. D
9. D
10.C

II. MULTIPLE CHOICE

1. D
2. A
3. D
4. C
5. D
6. D
7. B
8. C
9. C
10. A
11. A
12. A
13. A
14. A
15. A
16. D
17. A
18. D
19. C
20. D

III. CRITICAL THINKING (5 POINTS EACH)

1. There are two types of frugal consumers: spendthrifts, who spend cautiously because they enjoying saving money,
and tightwads, for whom spending money is an unpleasant experience. Research on this issue finds that tightwads
outnumber spendthrifts. Technically, he is a spendthrift.
2. Conformity refers to a change in belief or actions as a reaction to real or imagined group pressure. In order for
society to function, its members develop norms, or informal rules, that govern behavior. If such a system of
agreements did not evolve, chaos would result. Although norms change slowly over time, there is general
agreement within a society about which ones should be obeyed, and we adjust our way of thinking to conform to
these norms.

Rubrics for Critical Thinking

Substantial, specific, illustrative, demonstrating strong development of ideas 5
Apparent point made about a single topic, sufficient 3-4
No apparent point made, inadequate explanation 2-3
Minimal evidence of the topic, superficial, minimal content/thoughts not arranged 1