Questions

1) E-commerce can be defined as:

A) digitally enabled commercial transactions between and among organizations and

individuals.
B) the use of digital technologies in a firm's daily activities.
C) the digital enablement of transactions and processes within an organization.
D) any electronically based organizational activity that supports a firm’s market exchanges.

2) The total number of users or customers an e-commerce business can obtain is a

measure of which of the following?

A) ubiquity
B) interactivity
C) reach
D) information density

3) All of the following are platforms for C2C e-commerce except:

A) Walmart
B) Facebook Marketplace
C) Craigslist
D) Etsy

4) Which of the following statements about the Web is not true?

A) The Web is the technology upon which the Internet is based.

B) The Web was the original "killer app."
C) The Web provides access to pages written in Hypertext Markup Language.
D) The Web is both a communications infrastructure and an information storage system.

5) ____ and ____ are typically the most easily identifiable of a company’s business model.

A) Market strategy; market opportunity

B) Value proposition; revenue model
C) Competitive advantage; competitive environment
D) Revenue model; market opportunity

6) A perfect market is one in which:

A) there are no competitive advantages or asymmetries because all firms have equal access
to all the factors to production.
B) one firm develops an advantage based on a factor of production that other firms
cannot purchase.
C) one participant in the market has more resources than the others.
D) competition is at a minimum, as each niche market within an industry is served by
the company with the greatest competitive advantage.
7) Which of the following is an unfair competitive advantage?

A) brand name
B) access to global markets
C) lower product prices
D) superior technology

8) A wealthy individual who invests personal funds in a startup in exchange for an equity
share in the business is referred to as a(n):

A) incubator.
B) angel investor.
C) venture capital investor.
D) crowdfunder.

9) During which phase of the development of the Internet was the Domain Name System
(DNS) introduced?

A) commercialization phase
B) institutional phase
C) innovation phase
D) consolidation phase

10) The Transport Layer of TCP/IP is responsible for which of the following?

A) placing packets on and receiving them from the network medium

B) addressing, packaging, and routing messages
C) providing communication with the application by acknowledging and sequencing the
packets to and from the application
D) providing a variety of applications with the ability to access the services of the lower
layers

11) Which of the following technologies has enabled the Internet to grow exponentially
to support millions of users, without overloading the network architecture?

A) fiber optics
B) Wi-Fi
C) IPv6
D) client/server computing

12) Which of the following is not true about the mobile platform?

A) Most smartphones use Intel chips.

B) Smartphones and tablet computers are the primary means to access the Internet, both in
the United States and worldwide.
C) Most smartphones use either Google's Android or Apple's iOS operating systems.
D) Smartphones use flash memory chips.
13) Which of the following types of e-commerce presence is best suited for creating an
ongoing conversation with one's customers?

A.) Website
B.) e-mail
C.) social media
D.) offline media

14) Which of the following typically includes a data flow diagram (DFD) to describe the
flow of information for an e-commerce site?

A) physical design
B) logical design
C) testing plan
D) co-location plan

15) Which of the following is the minimum system architecture requirement for an e-
commerce website that processes orders?

A) single-tier architecture
B) two-tier architecture
C) three-tier architecture
D) multi-tier architecture

16) Which of the following is used to process certificates and private/public key information?

A) HTTP
B) Secure Sockets Layer/Transport Layer Security
C) File Transfer Protocol
D) data capture tools

17) ____ is the ability to ensure that e-commerce participants do not deny their online actions.

A) Nonrepudiation
B) Authenticity
C) Availability
D) Integrity

18) Which of the following is an example of an online privacy violation?

A)your e-mail being read by a hacker

B) your online purchasing history being sold to other merchants without your consent
C) your computer being used as part of a botnet
D)your e-mail being altered by a hacker

19) Which of the following is the leading cause of data breaches?

A) theft of a computer
B) accidental disclosures
C) hackers
 D) DDoS attacks

20) Automatically redirecting a web link to a different address is an example of which of

the following?

A) sniffing
B) social engineering
C) pharming
D) DDoS attack

21) Which of the following is not one of the main stages of the online purchasing process?

A) post-purchase service and loyalty

B) awareness
C) engagement
D) conversation

22) Which of the following is not true about search engine advertising?

A) Spending on search engine advertising constitutes about 44% of all online

advertising spending.
B) The top three search engine providers supply over 95% of all online searches.
C) The click-through rate for search engine marketing has been fairly steady over the years.
D) Search engine advertising is the slowest growing type of online advertising.

23) All of the following are "traditional" online marketing tools except:

A) affiliate marketing.
B) e-mail and permission marketing.
C) social marketing.
D) sponsorship marketing.

24) Which of the following statements about the Internet's impact on marketing is not true?

A) The Internet has broadened the scope of marketing communications.

B) The Internet has decreased the impact of brands.
C) The Internet has increased the richness of marketing communications.
A) The Internet has expanded the information intensity of the marketplace.

25) Which of the following is not one of the seven major segments of the retail industry?

A) electronics and computers

B) specialty stores
C) gasoline and fuel
D) food and beverage
26) Which of the following is not a key industry strategic factor?

A) synergies
B) barriers to entry
C) industry value chain
D) existence of substitute products

27) Virtual merchants face potentially large costs for all of the following except:

A) building and maintaining a website.

B) building and maintaining physical stores.
C) building an order fulfillment infrastructure.
D) developing a brand name.

28) Which of the following has the highest share of online retail sales?

A) omni-channel merchants
B) virtual merchants
C) catalog merchants
D) manufacturer-direct

29) Which of the following U.S. media channels generates the most revenue?

A) broadcast television/pay TV
B) video games
C) newspapers
D) box office movies

30) Which of the following is not an example of industry structure convergence?

A) Amazon’s creation of Amazon Books Publishing

B) Verizon’s acquisition of Yahoo
C) AT&T’s acquisition of Time Warner
D) Apple’s development of the iPad

31) Content convergence describes convergence in the design, production, and of

content.

A) sales
B) distribution
C) marketing
D) consumption

32) Which of the following is not a current trend in online content?

A) Americans continue to spend more on streaming music than downloaded music.

B) Readership of newspapers in print form continues to exceed online readership.
C) E-book sales growth slows.
D) Explosive growth of the mobile platform accelerates the transition to digital content.
33) Which of the following is a community of members who self-identify with a
demographic or geographic category?

A) practice network
B) sponsored community
C) affinity community
D) interest-based social network

34) Howard Rheingold, one of The Well's early participants, coined the term ____ to
refer to "cultural aggregations that emerge when enough people bump into each other
often enough in cyberspace."

A) social networks
B) virtual communities
C) community portals
D) social forums

35) All of the following are benefits of auctions except:

A) more efficient price discovery.

B) lower transaction costs.
C) decreased price transparency.
D) increased market efficiency.

36) ____ occurs when sellers agree informally or formally to set floor prices below which
they will not sell on auction items.

A) Discriminatory pricing
B) Price matching
C) Bid rigging
D) Distress pricing

37) Which of the following statements about EDI systems is true?

A) They typically serve vertical markets.

B) They are seller-side solutions.
C) They evolved from private trading exchanges.
D) They still play an important role in B2C commerce.

38) What is the first step in the procurement process?

A) negotiate price
B) qualify the seller and its products
C) issue a purchase order
D) search for suppliers
39) A(n) ____ system continuously links the activities of buying, making, and moving
products from suppliers to purchasing firms, as well as integrating order entry systems.

A) EDI
B) ERP
C) CPFR
D) SCM

40) Which of the following primarily serve horizontal markets?

A) e-distributors and exchanges
B) e-distributors and e-procurement Net marketplaces
C) e-procurement Net marketplaces and industry consortia
D) exchanges and industry consortia
 Answers
1) A - digitally enabled commercial transactions between and among organizations and
individuals
2) B – marketplace
3) A – Walmart
4) A – The Web is the technology upon which the Internet is based.
5) B – Value proposition; revenue model
6) A – there are no competitive advantages or asymmetries because all firms have equal
access to all the factors to production.
7) A – brand name
8) B – angel investor
9) B – institutional phase
10) C – providing communication with the application by acknowledging and sequencing
the packets to and from the application
11) D – client/server computing
12) A – Most smartphones use Intel chips
13) C – social media
14) B – logical design
15) B – two-tier architecture
16) B – Secure Sockets Layer/Transport Layer Security
17) A – Nonrepudiation
18) B – your online purchasing history being sold to other merchants without your consent
19) C – hackers
20) C – pharming
21) D – conversation
22) D – Search engine advertising is the slowest growing type of online advertising
23) C – social marketing
24) B – The Internet has decreased the impact of brands.
25) A – electronics and computers
26) A – synergies
27) B – building and maintaining physical stores.
28) B – virtual merchants
29) A – broadcast television/pay TV
30) D – Apple’s development of the iPad
31) B – distribution
32) B – Readership of newspapers in print form continues to exceed online readership.
33) C – affinity community
34) B – virtual communities
35) C – decreased price transparency.
36) B – Price matching
37) A – They typically serve vertical markets
38) D – search for suppliers
39) D – SCM
40) B – e-distributors and e-procurement Net marketplaces