Electronic Commerce 2010 6th Edition Turban Test Bank

Electronic Commerce 2010 6th Edition
Turban Test Bank

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Electronic Commerce 2010 (Turban / Lee / King / Liang / Turban)
Chapter 9 The Web 2.0 Environment and Social Networks
9.1 True/False
1) Wikipedia is the largest free online collaborative encyclopedia whose greatest strength and
biggest weakness is that users create the content.
Answer: TRUE
Diff: 1 Page Ref: 384
2) A characteristic of Web 2.0 is the frequent software updates that are needed to control the
content and data.
Answer: FALSE
AACSB Standard: Reflective Thinking
3) One of the major phenomena of Web 2.0 is the emergence and rise of e-auctions.
Answer: FALSE
4) The key feature of mass social media is that people rather than organizations control them and
third-person voice is discouraged.
Answer: TRUE
5) One-way marketing and advertising and command-and-control management are typical

examples of pull-based systems, and nowhere as efficient as push systems.
Answer: FALSE
6) A characteristic of social media is centralization, instead of distribution.

Answer: FALSE
7) Companies that introduce a significant change in their industries, thus, causing radical
changes in business operations are referred to as disruptors.
Answer: TRUE
8) Disruption did not occur in the real estate brokerage industry.

Answer: FALSE
1
Copyright © 2010 Pearson Education, Inc.
9) A search engine is basically a document or file retrieval system designed to help find
information stored on a computer system, such as on the Web.
Answer: TRUE
10) GeoCities is one example of a virtual community with many subcommunities.

Answer: TRUE
11) Facebook is the second-largest social network service in the world, with more than 120
million active users worldwide as of January 2009.
Answer: TRUE
12) A logical step as a community site grows in members and influence may be to turn it into a
commercial or revenue-generating site.
Answer: TRUE
13) Social network analysis software provides both a visual and a mathematical analysis of
relationships where the nodes in the network are the people or groups, and the links show
relationships between the nodes.
Answer: TRUE
AACSB Standard: Use of Information Technology
14) Business networking functions best when individuals offer to help others form commercial
or business relationship or to find prospects.
Answer: FALSE
15) In addition to providing leadership, entrepreneurial networks may become online

communities involved in endorsing reforms, legislation, or other municipal drives to advance
their organization's goals.
Answer: TRUE
16) MySpace's music download service that allows the site's independent musicians to sell their
work directly from their profile pages has not been successful because it's illegal.
Answer: FALSE
2
17) Mobile advertising is a rapidly developing area of advertisement on cell phones and other
mobile devices.
Answer: TRUE
18) Although advertising and sales are the major EC activities in public social networks, there
are emerging possibilities for commercial activities in business-oriented networks such as
LinkedIn and in enterprise social networks.
Answer: TRUE
19) Several companies use enterprise social networking, and virtual worlds in particular, for
training purposes. For example, Cisco is trying to use its virtual campus in Second Life for
product training and executive briefings.
Answer: TRUE
20) Caterpillar created a knowledge network system for its employees, and it even markets the
software to other companies.
Answer: TRUE
21) Social networks are only for social purposes and do not generate revenue.
Answer: FALSE
22) Many companies find it easy to justify social media and networking because most of their
benefits are intangible, or positive word-of-mouth.
Answer: FALSE
23) Apple and Google undertook a formal merger to offer iPhone capabilities, such as delivering
Google services through Apple hardware.
Answer: FALSE
24) Web 3.0 will deliver a new generation of business applications that will see business and
social computing converge on the same fundamentals as on-demand architecture is converging
with consumer applications today.
Answer: FALSE
3
25) LinkedIn's "gated-access approach," whereby contact with another professional requires
either a preexisting relationship or the intervention of a contact, is intended to build trust among
the service's users.
Answer: TRUE
9.2 Multiple Choice
1) Wikipedia is a free online collaborative encyclopedia that had to resolve each of the following
problems except:
A) people with malicious agendas posting false information
B) competition from the bigger Encyclopedia Britannica
C) poor or substandard quality of the content
D) invasions of privacy
Answer: B
AACSB Standard: Ethical Reasoning
2) Perspectives about Web 2.0 include all of the following except:

A) Web 2.0 is organized around pages, software, technology, individuals, and corporations.
B) Web 2.0 has become the framework for bringing together the contributions of millions of
people to enhance creativity, information sharing, and collaboration.
C) Web 2.0 communities are one of the most powerful influences on society.
D) Web 2.0 stands to greatly improve internal business processes and marketing.
Answer: A
3) The following are representative characteristics of Web 2.0 except:

A) frequent software-upgrade cycles
B) the ability to tap into the collective intelligence of users
C) making data available in new or never-intended ways
D) the presence of lightweight programming techniques and tools that lets nearly anyone act as a
developer
Answer: A
4) ________ is a Web development technique for creating quicker and more responsive Web
applications by exchanging small amounts of data with the server so that the entire Web page
does not have to be reloaded each time the user makes a change.
A) RSS
B) Ajax
C) Wiki
D) ZOPA
Answer: B
4
5) The banking industry was a good candidate for disruption by person-to-person (P2P)
technology and disintermediation by ZOPA because:
A) the industry offers a widely-needed service.
B) of fierce competition and low barriers to entry.
C) the industry was making huge profit margins off customers.
D) the industry had small profit margins.
Answer: C
6) ________ are companies that introduce a significant change in their industries, thus causing a
disruption in
normal business operations.
A) Disruptors
B) Mashups
C) Information clouds
D) Web 3.0
Answer: A
7) The real estate brokerage industry has been disrupted by companies such as Zillow and
HomeGain for each of the following reasons except:
A) 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.
B) The Zillow and Homegain sites provide more services and information than Web 1.0.
C) The Web 2.0 real estate sites have driven down commissions from 6 percent to almost 1
percent.
D) Homeowners can get comparisons of the estimated price of their home with neighbors'
homes.
Answer: C
8) What is the expected impact of industry disruptors on the real estate industry?
A) elimination of real estate agents
B) the 6 percent realtor commission paid in the United States moving closer to the 1 percent
commission commonly paid in other countries
C) greater specialization of real estate agents with higher commissions
D) Increased competition and bidding wars to find and buy homes
Answer: B
5
9) ________ are virtual communities organized by an interest, such as political parties, or by
product, company, or health topic.
A) Associations
B) Megacommunities
C) Social networks
D) Affinity portals
Answer: D
10) ________ are communities that are country- or language-specific.

A) Associations
B) Megacommunities
C) Ethnic communities
D) Social networks
Answer: C
11) Alloy.com, bolt.com, and blueskyfrog.com are communities that:

A) cater to young people.
B) provide B2B networks.
C) are exchanges supporting community programs.
D) offer interactive Webcasts for government or professional associations.
Answer: A
12) All of the following are categories and examples of interaction in a virtual community
except:
A) communication via bulletin boards
B) information using search engines
C) EC using advertisements
D) financial sponsorship via experts
Answer: D
13) All of the following are types of virtual communities except:

A) associations
B) affinity portals
C) search engines
D) gender and ethnic communities
Answer: C
6
14) What is the top social network?
A) Bebo
B) Facebook
C) Friendster
D) MySpace
Answer: D
15) ________ is the mapping and measuring of relationships and flows between people, groups,
organizations, animals, computers, or other information or knowledge processing entities.
A) Social network analysis
B) Virtual analysis
C) Social network theory
D) Internet community theory
Answer: A
16) A(n) ________ is defined as a group of people that have some kind of commercial or
business relationship such as the relationships between sellers and buyers, buyers among
themselves, buyers and suppliers, and colleagues and other colleagues.
A) affinity portal
B) Web portal
C) business network
D) entrepreneurial network
Answer: C
17) Companies can interface with social networks in all of the following ways except:
A) Use search engine optimization (SEO) to increase search engine ranking.
B) Use existing public social networks, such as Facebook or MySpace, or virtual worlds, such as
Second Life to create pages and microcommunities.
C) Create an in-house private social network and then use it for communication and
collaboration among employees and retirees or with outsiders.
D) Conduct business activities in a business-oriented social network, such as LinkedIn, or
sponsor such a site.
Answer: A
7
18) All of the following are ways social networks generate revenues except:
A) offer a premium service for a monthly or per service fee
B) charge organizations a monthly service fee
C) host auctions for individuals or enterprises
D) have members pay a fee to be affiliated with the social network
Answer: C
19) All of the following are true about YouTube except:

A) YouTube is building a community that is highly motivated to watch and share videos.
B) The company encourages users to contact YouTube.
C) Some experts think Yahoo paid too much for YouTube.
D) The growth of YouTube has been extremely rapid, depending largely on referrals from users
who alerted their friends and family to a favorite video.
Answer: C
20) ________ , also called viral marketing, is free advertising that can increase the visibility of
niche retailers and products.
A) Mixi
B) Word-of-mouth
C) Web 4.0
D) Semantic Web
Answer: B
21) The main purpose of LinkedIn is to allow registered users to:

A) create and maintain a list of contact details of people they know and trust in business.
B) develop a client base based on referrals.
C) post and find technology jobs.
D) aid successful business launches.
Answer: A
22) Craigslist and MySpace provide ________ to search based on friends and contacts or by
geographic proximity.
A) entrepreneurial networks
B) classifieds and job listings
C) virtual malls
D) advertising campaigns
Answer: B
8
23) Apple's iPhone uses a ________ , which is an accurate and patented interface.
A) multitouch touch screen
B) dedicated control
C) touch-sensitive display
D) touch-pad
Answer: A
24) Wikis, blogs and RSS would most likely replace e-mail for all of the following reasons
except:
A) E-mail is limited as a collaborative tool.
B) E-mail is primarily for point-to-point communication.
C) CC and BCC fields in an e-mail can be dangerous because often the wrong person gets a copy
of the message.
D) Wikis, blogs, and RSS are more secure than e-mail.
Answer: D
25) ________ has/have the potential to enable faster connectivity, richer ways of interacting, and
more powerful search engines.
A) Enterprise applications
B) Application program interface (API) services
C) Web 3.0
D) RSS and Web services
Answer: C
26) Distinct layers of the Web 3.0 topology include each of the following except:
A) v-commerce
B) API services
C) application services
D) serviced clients
Answer: A
27) Characteristics of the next generation Internet, Web 3.0, are expected to include all of the
following except:
A) more portable and personal
B) faster, and more far-flung connectivity
C) more clout for ordinary people and more user-friendly application-creation capabilities
D) decreased use of the semantic Web
Answer: D
9
28) 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:
A) Net neutrality.
B) mobile social networks.
C) semantic web.
D) voice commerce.
Answer: C
29) ________ would be the environment of choice for Web 3.0 users.
A) Wireless
B) iPhone
C) Social networks
D) Google
Answer: A
30) Each of the following is a trend that may slow EC and Web 3.0 except:
A) security concerns
B) copyright complaints
C) Net neutrality
D) choppy connectivity
Answer: C
9.3 Fill in the Blank
1) ________ is the popular term for advanced Internet technology and applications including
blogs, wikis, RSS, and social bookmarking.
Answer: Web 2.0
2) The online platforms and tools that people use to share opinions and experiences, including
photos, videos, music, insights, and perceptions with each other are known as ________.
Answer: social media
3) Companies that introduce innovations that significantly change markets or entire industries
due to their activities are referred to as ________.
Answer: disruptors
10
4) The process of lending that is done between individuals and that circumvents the bank's
traditional role is known as ________.
Answer: person-to-person lending
5) A(n) ________ is a group of people with a common interest who interact on the Internet.
Answer: virtual (Internet) community
6) ________ are communities organized by interest, such as hobbies, vocations, political parties,
or unions
Answer: Affinity portals
7) ________ are communities that are country- or language-specific.

Answer: Ethnic communities
AACSB Standard: Multicultural and Diversity
8) A(n) ________ is a place, such as MySpace, where people create their own space or home
page on which they write blogs; post pictures, videos, or music; share ideas; and link to other
Web locations they find interesting.
Answer: social network
9) The top social networking Web site as of 2009 was ________ with over 250 million users.
Answer: MySpace
10) ________ is the mapping and measuring of relationships and flows between people, groups,
organizations, animals, computers, or other information processing entities.
Answer: Social network analysis
11) ________ is a consumer media company where people can watch and share original videos
worldwide via the Web.
Answer: YouTube
12) ________ is a community-based Web site with an emphasis on technology and science
articles.
Answer: Digg
11
13) ________ is a Web service for sharing Internet bookmarks for sites.
Answer: Social bookmarking
14) A(n) ________ is a group of people who have some kind of commercial or business
relationship.
Answer: business network
15) The 3D capability of ________ and the ease of manipulating avatars has opened the door to a
variety of entertainment options, most notably adult entertainment.
Answer: virtual worlds
16) ________ refers to the technologies and business practices that free the workforce from the
constraints of legacy communication such as e-mail by providing managers with access to the
right information at the right time through a Web of interconnected applications, services, and
devices.
Answer: Enterprise 2.0
AACSB Standard: Communication
17) The term ________ is an online community that uses the power of social networks for the
introduction, buying, and selling of products and services, including people's own creations.
Answer: social marketplace
18) Before being bought by ________, YouTube had an advertising-based business model.
Answer: Google
19) Increased Web site traffic, a common effect of viral marketing, inevitably brings more
________ dollars with it.
Answer: advertising
20) ________ is word-of-mouth marketing that often takes place in social networks.
Answer: Viral blogging
21) ________ is a rapidly developing area. It refers to advertisement on cell phones and other
mobile devices.
Answer: Mobile advertising
12
22) Companies are finding that ________ outlets, such as blogs and wikis, not only generate
faster and cheaper results than traditional focus groups, but also foster closer relationships with
customers.
Answer: conversational marketing
23) Organizations do face some ________ in opening up their marketing and advertising to
social networks.
Answer: risks
24) The ________ is an extension of the Web in which 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.
Answer: Semantic Web
25) ________ is the next generation of the Web, which will combine social and business
computing.
Answer: Web 3.0
9.4 Essay
1) Briefly describe Web 2.0. How does it differ from the traditional Web?
Answer: Web 2.0 refers to advanced Internet technology and applications including blogs,
wikis, RSS, and social bookmarking. Web 2.0 is about everyday people (you and me) using the
Web for communication, collaboration, and creation. No one had more power to influence
society than Web 2.0 communities.
One of the most significant differences between Web 2.0 and the traditional World Wide Web is
greater collaboration among Internet users and other users, content providers, and enterprises.
13
2) Explain industry and market disruptors and one of their potential impacts. Select one industry
and discuss a disruption that can occur as a result.
Answer: Several companies have introduced Web 2.0 innovations that could disrupt and reorder
markets, or even entire industries, introducing major changes in the way companies do business.
An example is Blue Nile, which displaced hundreds of jewelers and is changing the jewelry retail
industry. Some refer to such companies as disruptors. For example, Zopa, which facilitates
person-to-person money lending, may disrupt the lending business. Consumer-generated content
is disrupting traditional media.
Specifically, large numbers of blogs and videos are posted everyday and then viewed by millions
around the globe. Content is created continuously by millions of people. The result is that
individuals are becoming both publishers of Web-based content and consumers of that content.
In real estate, disruptors are reducing the need and number of agents and decreasing the
commissions paid to agents.
3) Define business networks and what determines their success. Identify locations where
business networking can take place.
Answer: A business network is a group of people that have some kind of commercial or
business relationship such as the relationships between sellers and buyers, buyers among
themselves, buyers and suppliers, and colleagues and other colleagues. Business networking
functions best when individuals offer to help others to find connections rather than cold-calling
on prospects.
Business networking can take place outside of traditional business physical environments. For
example, public places such as airports or golf courses provide opportunities to make new
business contacts if an individual has good social skills.
4) What are two expected impacts of the explosive growth in mobile social networks?
Answer: The explosion of wireless Web 2.0 services and companies will enable many social
communities to be based on the mobile phone and other portable wireless devices. This extends
the reach of social interaction to millions of people who do not have regular or easy access to
computers. At minimum, existing members who use PCs will supplement their activities with
wireless devices. Thus, wireless would be the environment of choice for the Web 3.0 users.
14
5) What are two trends that may slow EC and Web 3.0 and even cripple the Internet?
Answer:
Security concerns. Both shoppers and users of e-banking and other services worry about online
security. The Web needs to be made safer.
Lack of Net neutrality. If the big telecom companies are allowed to charge companies for a
guarantee of faster access, critics fear that small innovative Web companies could be crowded
out by the Microsofts and Googles that can afford to pay more.
Copyright complaints. The legal problems of YouTube, Wikipedia, and others might result in a
loss of vital outlets of public opinion, creativity, and discourse.
Choppy connectivity. Upstream bandwidths are still constricted, making uploading of video files
a time-consuming task. Usable mobile bandwidth still costs.
AACSB Standard: Ethical Reasoning
15

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Electronic Commerce 2010 6th Edition

Turban Test Bank

5) One-way marketing and advertising and command-and-control management are typical

6) A characteristic of social media is centralization, instead of distribution.

8) Disruption did not occur in the real estate brokerage industry.

10) GeoCities is one example of a virtual community with many subcommunities.

15) In addition to providing leadership, entrepreneurial networks may become online

9.2 Multiple Choice

2) Perspectives about Web 2.0 include all of the following except:

3) The following are representative characteristics of Web 2.0 except:

10) ________ are communities that are country- or language-specific.

11) Alloy.com, bolt.com, and blueskyfrog.com are communities that:

13) All of the following are types of virtual communities except:

19) All of the following are true about YouTube except:

21) The main purpose of LinkedIn is to allow registered users to:

9.3 Fill in the Blank

7) ________ are communities that are country- or language-specific.

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