question

consumer behavior

answer

a social science discipline that attempts to model and understand the behavior of humans in a marketplace

question

clickstream behavior

answer

the transaction log that consumers establish as they move about the web

question

customer experience

answer

the totality of experiences that a customer has with a firm, including the search, informing, purchase, consumption, and after-sales support for its products, services, and various retail channels

question

online advertising

answer

a paid message on a web site, online service, or other interactive medium

question

ad targeting

answer

the sending of market messages to specific subgroups in the population

question

search engine marketing (SEM)

answer

involves the use of search engines to build and sustain brands

question

search engine advertising

answer

involves the use of search engines to support direct sales to online

question

organic search

answer

inclusion and ranking of sites depends on a more or less unbiased application of a set of rules imposed by the search engine

question

paid inclination

answer

for a fee, guarantees a web site's inclusion in its list of sites, more frequent visits by its web crawler, and suggestions for improving the results of organic searching

question

keyword advertising

answer

merchants purchase keywords through a bidding process at search sites, and whenever a consumer searches for that word, their advertisement shows up somewhere on the page

question

network keyword advertising (context advertising)

answer

publishers accept ads placed by Google on their web sites, and receive a fee for any click-throughs from those ads

question

search engine optimization (SEO)

answer

techniques to improve the ranking of web pages generated by search engine algorithms

question

social search

answer

effort to provide fewer, more relevant, and trustworthy results based on the social graph

question

link farms

answer

groups of web sites that link to one another, thereby boosting their ranking in search engines

question

content farms

answer

companies that generate large volumes of textual content for multiple web sites designed to attract viewers and search engines

question

click fraud

answer

occurs when a competitor clicks on search engine results and ads, forcing the advertiser to pay for the click even though the click is not legitimate

question

banner ad

answer

displays a promotional message in a rectangular box at the top or bottom of a computer screen

question

rich media ad

answer

ad employing animation, sound, and interactivity, using Flash, HTML5 Java, and JavaScript

question

interstitial ad

answer

a way of placing a full-page message between the current and destination page of a user

question

video ad

answer

TV-like advertisements that appears as an in-page video commercial or before, during, or after content

question

sponsorship

answer

a paid effort to tie an advertiser's name to information, an event, or a venue in a way that reinforces its brand in a positive yet not overtly commercial manner

question

advertising networks

answer

connect online marketers with publishers by displaying ads to consumers based on detailed customer information

question

ad exchanges

answer

create a market where many ad networks sell ad space to marketers

question

real-time bidding process (RTB)

answer

online auctions where advertisers bid for audience slots

question

direct e-mail marketing

answer

e-mail marketing messages sent directly to interested users

question

spam

answer

unsolicited commercial e-mail

question

affiliate marketing

answer

commissions paid by advertisers to affiliate web sites for referring potential customers to their web site

question

viral marketing

answer

the process of getting customers to pass along a company's marketing message to friends, family, and colleagues

question

lead generation marketing

answer

uses multiple e-commerce presences to generate leads for businesses who later can be contacted and converted into customers

question

social marketing/advertising

answer

the use of online social networks and communities to build brands and drive sales

question

one-to-one marketing (personalization)

answer

segmenting the market based on a precise and timely understanding of an individual's needs, targeting specific marketing messages to these individuals, and then positioning the product vis-a-vis competitors to be truly unique

question

interest-based advertising (behavioral targeting)

answer

using search queries and clicks on results to behaviorally target consumers

question

retargeting ads

answer

showing the same ad to individuals across multiple web sites

question

customization

answer

changing the product, not just the marketing message, according to user preferences

question

customer coproduction

answer

in the web environment, takes customization one step further by allowing the customer to interactively create the product

question

frequently asked questions (FAQs)

answer

a text-based listing of common questions and answers

question

real-time customer service chat systems

answer

a company's customer service representatives interactively exchange text-based messages with one or more customers on a real-time basis

question

automated response system

answer

sends e-mail order confirmations and acknowledgments of e-mailed inquiries

question

Law of One Price

answer

with complete price transparency in a perfect information marketplace, there will be one world price for every product

question

pricing

answer

putting a value on goods and services

question

demand curve

answer

the quantity of goods that can be sold at various prices

question

price discrimination

answer

selling products to different people and groups based on their willingness to pay

question

versioning

answer

creating multiple versions of information goods and selling essentially the same product to different market segments at different prices

question

bundling

answer

offers consumers two or more goods for a reduced price

question

long tail

answer

a colloquial name given to various statistical distributions characterized by a small number of events of high amplitude and a very large number of events with low amplitude

question

transaction log

answer

records user activity at a web site

question

registration forms

answer

gather personal data on name, address, phone, zip code, e-mail address, and other optional self-confessed information on interests and tastes

question

shopping cart database

answer

captures all the item selection, purchase, and payment data

question

profiling (ch 6)

answer

profiling uses a variety of tools to create a digital image for each consumer

question

database

answer

a software application that stores records and attributes

question

database management system (DBMS)

answer

a software application used by organizations to create, maintain, and access databases

question

structured query language (SQL)

answer

industry-standard database query language used in relational databases

question

relational databases

answer

represent data as two-dimensional tables with records organized in rows and attributes in columns; data within different tables can be flexibly related as long as the tables share a common data element

question

data warehouse

answer

a database that collects a firm's transactional and customer data in a single location for offline analysis

question

data mining

answer

a set of analytical techniques that look for patterns in the data of a database or data warehouse, or seek to model the behavior of customers

question

customer profile

answer

a description of the typical behavior of a customer or a group of customers at a web site

question

query-driven data mining

answer

data mining based on specific queries

question

model-driven data mining

answer

involves the use of a model that analyzes the key variables of interest to decision makers

question

big data

answer

big data refers to very large data sets in the petabyte and exabyte range

question

Hadoop

answer

a software framework for working with various big data sets

question

customer relationship management (CRM) system

answer

a repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to "know the customer"

question

customer touchpoints

answer

the ways in which customers interact with the firm

question

impressions

answer

number of times an ad is served

question

click-through rate (CTR)

answer

the percentage of people exposed to an online advertisement who actually click on the banner

question

view-through rate (VTR)

answer

measures the 30-day response rate to an ad

question

hits

answer

number of http requests received by a firm's server

question

page views

answer

number of pages requested by visitors

question

stickiness (duration)

answer

average length of time visitors remain at a site

question

unique visitors

answer

the number of distinct, unique visitors to a site

question

loyalty

answer

percentage of purchases who return in a year

question

reach

answer

percentage of the total number of consumers in a market who will visit a site

question

recency

answer

average number of days elapsed between visits

question

acquisition rate

answer

percentage of visitors who register or visit products pages

question

conversion rate

answer

percentage of visitors who purchase something

question

browse-to-buy ratio

answer

ratio of items purchased to product views

question

view-to-cart ratio

answer

ratio of "Add to cart" clicks to product views

question

cart conversion rate

answer

ratio of actual orders to "Add to cart" clicks

question

checkout conversion rate

answer

ratio of actual orders to checkouts started

question

abandonment rate

answer

% of shoppers who begin a shopping cart, but then fail to complete it

question

retention rate

answer

% of existing customers who continue to buy

question

attrition rate

answer

% of customers who purchase once, but do not return within a year

question

conversation ratio

answer

number of comments produced per post

question

applause ratio

answer

number of Likes or Shares per post

question

amplification (ch 6)

answer

number of re-tweets or re-shares per post

question

sentiment ratio

answer

ratio of positive comments to total comments

question

open rate

answer

% of customers who open e-mail

question

delivery rate

answer

% of e-mail recipients who received e-mail

question

click-through rate (e-mail)

answer

% of e-mail recipients who clicked through to the offer

question

bounce-back rate

answer

percentage of e-mails that could not be delivered

question

cost per thousand (CPM)

answer

advertiser pays for impressions in 1,000 unit lots

question

cost per click (CPC)

answer

advertiser pays prenegotiated fee for each click an ad receives

question

cost per action (CPA)

answer

advertiser pays only for those users who perform a specific action

question

Web analytics

answer

software package that collects, stores, analyzes, and graphically presents data on each of the stages in the conversion of shoppers to customers process on e-commerce sites

question

T/F In the United States today, single, white, young college-educated males with high income dominate the internet in terms of percentage of internet usage

answer

False

question

T/F Research has found that of all the standard formats of display ads, wide skyscraper ads are the most effective at holding a user's attention

answer

False

question

T/F Price is more important than convenience as a factor in online purchase decisions

answer

False

question

T/F E-commerce is a major conduit and generator of offline commerce

answer

True

question

T/F Online shoppers tend to browse for available products rather than search for specific products they have determined in advance

answer

False

question

T/F Research shows that the two most important factors shaping the decision to purchase online are utility and trust

answer

True

question

T/F In 2013, mobile marketing grew at nearly the same rate as traditional online marketing

answer

False

question

T/F Evidence suggests that real-time customer chat increases sales

answer

True

question

T/F Transaction logs are built into Web server software

answer

True

question

T/F Cookies, when combined with Web beacons, can be used to create cross-site profiles

answer

True

question

T/F An interstitial ad is typically contained in a pop-up window that the user must close in order to continue

answer

False

question

T/F The digital divide still persists along age, income, ethnic, and education dimensions

answer

True

question

T/F The cost of sending 10,000 e-mails in an advertising campaign is about the same as sending 5,000

answer

True

question

T/F The concept of "customer satisfaction" is broader than the concept of "customer experience"

answer

False

question

T/F Bundling is the process of selling two or more products together for a price that is less than the sum of the two product's individual prices

answer

True

question

On a typical day, approximately ___% of adult users in the United States log on to the internet

answer

80

question

What online advertising format is the most effective?

answer

video ads

question

Which online advertising format attracted the least amount of spending in 2013?

answer

e-mail

question

What would you implement to collect and analyze your company's big data?

answer

Hadoop

question

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) interaction D) browsing

answer

D

question

What form of online advertising is growing the fastest?

answer

video

question

If you want to determine the size of your web site's audience, the metric you will use for the most accurate measurement will be:

answer

unique visitors

question

In 2013, what was the approximate internet penetration rate for individuals that have attained less than a high-school education?

answer

60%

question

Which of the following is not one of the four main methods advertisers use to behaviorally target ads? A) Nielson ratings B) data collected from social networks C) integration of offline data D) clickstream data

answer

A

question

Search engine advertising and marketing expenditures in 2013 were approximately:

answer

$19.5 billion

question

Which of the following is not true about search engine advertising? A) Spending on search engine advertising constitutes almost half 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 fastest growing type of online advertising

answer

D

question

Which of the following is not a practice that degrades the results and usefulness of search engines? A) social search B) link farms C) content farms D) click fraud

answer

A

question

All of the following are online communications that are used to support the evaluation of alternatives stage of the consumer decision process except: A) search engines B) online catalogs C) social networks D) targeted banner ads

answer

D

question

"Shoppers" constitute approximately ___% of the online internet audience

answer

90

question

A Crayola arts-and-crafts column on a parenting web site is an example of what form of advertising?

answer

sponsorship

question

What is the top concern of internet users about purchasing online?

answer

lack of trust in the purchase process

question

Studies of the effects of social "connectedness" on internet purchases indicate that the more "connected" an individual:

answer

the less that individual is influenced by friends' purchases

question

A typical response rate for an e-mail campaign would be ___%

answer

5

question

In modeling online consumer behavior, the concept of "consumer skills" refers to the:

answer

knowledge consumers have about how to conduct online transactions

question

Which of the following statements about CAN-SPAM is not true? A) CAN-SPAM went into effect in January 2004 B) CAN-SPAM prohibits unsolicited e-mail (spam) C) CAN-SPAM prohibits the use of deceptive subject lines and false headers D) Large spammers are among CAN-SPAM's biggest supporters

answer

B

question

___ of annual offline retail sales is influenced by online browsing

answer

one-third

question

What is the most important tool in establishing a relationship with the customer?

answer

company web site

question

Impressions are a measure of the:

answer

number of times an ad is served

question

View-through rate measures the ___ response rate to an ad

answer

30-day

question

Which of the following is not one of the main elements of a comprehensive multi-channel marketing plan? A) local marketing B) offline marketing C) social marketing D) mobile marketing

answer

A

question

Hits are a measure of the:

answer

number of http requests

question

Which of the following statements about the internet's impact on marketing is not true?

answer

The internet has decreased the impact of brands

question

What feature of e-commerce technology has reduced the cost of delivering marketing messages and receiving feedback from users?

answer

universal standards

question

What feature of e-commerce technology allows fine-grained, highly detailed information on consumers' real-time behavior to be gathered and analyzed?

answer

information density

question

The richness made possible by e-commerce technologies does what?

answer

It allows video, audio, and text to be integrated into a single marketing message and consuming experience

question

For a web site that has 5 million visitors a month, and where on average, a visitor makes 10 page requests per visit, there will be ___ entries in the transaction log each month

answer

50 million

question

Purchasing an online ad on a CPA basis means that the advertiser:

answer

pays only for those users who perform a specific action, such as registering, purchasing, etc.

question

All of the following statements about cookies are true except: A) cookies can be used with web bugs to create cross-site profiles of users B) the data typically stored in cookies includes a unique ID and e-mail address C) cookies make shopping carts possible by allowing a site to keep track of a user's actions D) the more cookies are deleted, the less accurate and server metrics become

answer

B

question

A web beacon is:

answer

a tiny graphics file embedded in an e-mail or web page

question

___ is an industry-standard database query and manipulation language

answer

SQL

question

All of following are traditional online marketing tools except: A) affiliate marketing B) e-mail and permission marketing C) social marketing D) sponsorship marketing

answer

C

question

Which of the following examples illustrates the "Long Tail" phenomenon? A) Rhapsody music streaming service reported that its no play rate had increased to over 20% B) The number of blockbuster "winner take all" video titles is declining C) Over 50% of Netflix's 100,000 titles are rented at least once a day by someone D) The average blog has a readership of slightly more than 1

answer

C

question

A ___ is a repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to know the customer

answer

CRM system

question

What measures the average length of stay at a web site?

answer

stickiness

question

Acquisition rate is a measure of the:

answer

percentage of visitors who indicate an interest in a site's products by registering or visiting a product's page

question

The marketing technique known as ___ involves merchants offering products or services for a very low price for a short period of time

answer

flash marketing

question

Recency refers to the:

answer

time elapsed since the last action taken by a customer

question

Which of the following is not a feature that is driving the growth of social marketing and advertising? A) social sign-on B) network notification C) collaborative shopping D) affiliate programs

answer

D

question

Conversion rate is a measure of the:

answer

percentage of visitors who become customers

question

What measures the ratio of items purchased to product views?

answer

browse-to-buy ratio

question

The Nike iD program is an example of what marketing technique?

answer

customer co-production

question

The incremental cost of building the next unit of a good is called the:

answer

marginal cost

question

Which of the following statements about a free pricing strategy is false? A) Free products and services can knock out potential and actual competitors B) The free pricing strategy was born in the early days of the web C) It is difficult to convert free customers into paying customers D) Free products and services can help build market awareness

answer

B

question

Creating multiple variations of information goods and selling these to different market segments at different prices is called:

answer

versioning

question

All of the following are fixed price strategies except:

answer

yield management

question

In a(n) ___ search, the inclusion and ranking of Web sites depends on a more or less "unbiased" application of a set of rules (an algorithm) imposed by the search engine

answer

organic

question

Google's AdSense is an example of network keyword or ___ advertising

answer

context

question

___ behavior refers to the transaction log that consumers establish as they move about the web from site to site

answer

Clickstream

question

The ___ asserts that, with complete price transparency in a perfect information marketplace, one world price for every product will emerge

answer

Law of One Price

question

A common form of ___ is targeted content (or advertorials), in which editorial content is combined with an ad message to make the message more valuable and attractive to its intended audience

answer

sponsorship

question

___ ads involves showing the same or similar ad to individuals across multiple web sites

answer

Retargeting

question

Adjustments to a Web site's programming and content in order to improve its rank in search engine results is called search engine:

answer

optimization

question

___ rate measures the percentage of customers who purchase once but never return within a year

answer

Attrition

question

To answer a question such as "At what time of day does our company sell the most products?" you would use ___ data mining

answer

query-driven

question

Specialized marketing firms called ___ sell ad opportunities from a range of participating sites that receive payment for displaying ads

answer

advertising networks

question

In ___, one Web site agrees to pay another Web site a commission for new business opportunities it refers to the site

answer

affiliate marketing

question

___ is the process of getting customers to pass along a company's marketing message to friends, family, and colleagues

answer

Viral marketing

question

The ___ rate is an e-mail campaign metric that measures the percentage of e-mails that could not be delivered

answer

bounce-back

question

___ use a real-time bidding process in which marketers bid for slots based on their marketing criteria

answer

Ad exchanges

question

___ occurs when a new venue for selling products or services threatens to destroy existing venues

answer

Channel conflict

question

fan acquisition

answer

attracting people to your marketing messages

question

engagement

answer

encouraging visitors to interact with your content and brand

question

amplification (ch 7)

answer

encouraging visitors to share their Likes and comments with their friends

question

community

answer

a stable group of fans engaged and communicating with one another over a substantial period of time about your brand

question

social density

answer

refers to the number of interactions among members of a group and reflects the "connectedness" of a group, even if these connections are forced on users

question

socially enabled ad

answer

a display ad with options for viewers to announce their approval to their social network

question

Sponsored Story

question

___ is a real-time bidding system that allows advertisers to target their ads to specific users based on personal information provided by Facebook

answer

Facebook Exchange, FBX

question

___ targets marketing messages to users based on their location

answer

Location-based marketing

question

___ techniques identify the location of a user's device and then target marketing to the device, recommending actions within the area

answer

Geo-aware

question

___ techniques identify a perimeter around a physical location and then target ads to users within that perimeter

answer

Geo-fencing

question

___ involves using any of a variety of means to attract people to your Web site and other social marketing platforms, such as Facebook and Twitter

answer

Fan acquisition

question

___ involves using a variety of tools to encourage users to interact with content and brand

answer

Engagement

question

___ involves using the inherent strength of social networks to encourage visitors and fans to share their Likes and comments with friends

answer

Amplification

question

___ is a Facebook feature that allows app developers to integrate their apps into the Facebook pages of users who sign up for the app

answer

Open Graph

question

Facebook's new search engine, introduced in July 2013, is called:

answer

Graph Search

question

___ is a micro-blogging social network site that allows users to send and receive 140-character messages

answer

Twitter

question

A ___ organizes the conversations on Twitter around a specific topic, and enables users to search for tweets related to a particular topic

answer

hashtag, #

question

The point of ___ is to share beautiful, interesting photos and graphics as widely as possible across the Web

answer

question

___ is the leading mobile retailer

answer

Amazon

question

ethics

answer

the study of principles that individuals and organizations can use to determine right and wrong courses of action

question

responsibility

answer

as free moral agents, individuals, organizations, and societies are responsible for the actions they take

question

accountability

answer

individuals, organizations, and societies should be held accountable to others for the consequences of their actions

question

liability

answer

a feature of political systems in which a body of law is in place that permits individuals to recover the damages done to them by other actors, systems, or organizations

question

due process

answer

a process in which laws are known and understood and there is an ability to appeal to higher authorities to ensure that the laws have been correctly applied

question

dilemma

answer

a situation in which there are at least two diametrically opposed actions, each of which supports a desirable outcome

question

privacy

answer

the moral right of individuals to be left alone, free from surveillance or interference from other individuals or organizations, including the state

question

information privacy

answer

includes both the claim that certain information should not be collected at all by governments or business firms, and the claim of individuals to control the use of whatever information that is collected about them

question

right to be forgotten

answer

the claim of individuals to be able to edit and delete personal information online

question

personally identifiable information (PII)

answer

any data that can be used to identify, locate, or contact an individual

question

anonymous information

answer

demographic and behavioral information that does not include any personal identifiers

question

profiling (ch 8)

answer

the creation of digital images that characterize online individual and group behavior

question

anonymous profiles

answer

identify people as belonging to highly specific and targeted groups

question

personal profiles

answer

add a personal e-mail address, postal address, and/or phone number to behavioral data

question

deep packet inspection

answer

a technology for recording every key stroke at the ISP level

question

informed consent

answer

consent given with knowledge of all material facts needed to make a rational decision

question

opt-in

answer

requires an affirmative action by the consumer to allow collection and use of consumer information

question

opt-0ut

answer

the default is to collect information unless the consumer takes an affirmative action to prevent the collection of data

question

safe harbor

answer

a private self-regulating policy and enforcement mechanism that meets the objectives of government regulators and legislation but does not involve government regulation or enforcement

question

copyright law

answer

protects original forms of expression such as writings, art, drawings, photographs, music, motion pictures, performances, and computer programs from being copied by others for a minimum of 70 years

question

doctrine of fair use

answer

under certain circumstances, permits use of copyrighted material without permission

question

Digital Millennium Copyright Act (DMCA)

answer

the first major effect to adjust the copyright laws to the internet age

question

cyberlocker

answer

an online file storage service dedicated to sharing copyrighted material illegally

question

patent

answer

grants the owner an exclusive monopoly on the ideas behind an invention for 20 years

question

trademark

answer

a mark used to identify and distinguish goods and indicate their source

question

dilution

answer

any behavior that would weaken the connection between the trademark and the product

question

Anticybersquatting Consumer Protection Act (ACPA)

answer

creates civil liabilities for anyone who attempts in bad faith to profit from an existing famous or distinctive trademark by registering an internet domain name that is identical or confusingly similar to, or "dilutive" of, that trademark

question

cybersquatting

answer

involves the registration of an infringing domain name, or other internet use of an existing trademark, for the purpose of extorting payments from the legitimate owners

question

cyberpiracy

answer

involves the same behavior as cybersquatting, but with the intent of diverting traffic from the legitimate site to an infringing site

question

linking

answer

building hypertext links from one site to another site

question

deep linking

answer

involves bypassing the target site's home page, and going directly to a content page

question

framing

answer

involves displaying the content of another web site inside your own web site within a frame or window

question

governance

answer

has to do with social control: who will control e-commerce, what elements will be controlled, and how will the controls be implemented

question

cap pricing

answer

putting caps on bandwidth usage, charging more for additional usage in tiers of prices

question

speed tiers

answer

charging more for higher speed internet service

question

usage-based billing

answer

charging on the basis of metered units of internet service

question

congestion pricing

answer

charging more for peak hour internet service

question

highway (toll) pricing

answer

charging service providers like Netflix for their use of the internet based on their bandwidth use

question

T/F Liability is a feature of political systems in which a body of law is in place that permits individuals to recover damages done to them by other actors, systems, or organizations

answer

True

question

T/F The principle of responsibility means that individuals, organizations, and societies should be held accountable to others for the consequences of their actions

answer

False

question

T/F The ethical principle of Universalism states that if an action is not right for all situations, then it is not right for any situation

answer

True

question

T/F Deep packet inspection uses software installed on client computers to collect and analyze detailed information on page content viewed by users

answer

False

question

T/F Most adult social network participants do not have any expectation of personal privacy when using a social network

answer

False

question

T/F The opt-in model for informed consent requires an affirmative action by the consumer before a company can collect and use information

answer

True

question

T/F The Children's Online Privacy Protection Act (COPPA) prohibits Web sites from collecting information on children under the age of 13

answer

True

question

T/F The European Data Protection Directive prohibits the transfer of PII to organizations or countries that do not have similar privacy protection policies

answer

True

question

T/F The FTC's privacy approach is now focused on targeting practices that are likely to cause harm or unwarranted intrusion into consumers' daily lives

answer

True

question

T/F Copyright protection protects against others copying the underlying ideas in a work

answer

False

question

T/F It is not necessarily illegal to use someone else's trademark in a metatag

answer

True

question

T/F Net neutrality refers to Internet backbone owners treating all Internet traffic equally

answer

True

question

T/F The Children's Internet Protection Act (CIPA) requires schools and libraries in the United States to install technology protection measures in an effort to shield children from pornography

answer

True

question

T/F The Unlawful Internet Gambling Enforcement Act has eliminated all online gambling in the United States

answer

False

question

T/F Google defends its Library Project on the grounds of fair use

answer

True

question

What e-commerce technology dimensions creates greater opportunities for cyberbullying?

answer

social technology

question

What e-commerce technology dimensions has the potential to reduce cultural diversity in products?

answer

global reach

question

Which of the following is not one of the four basic principles shared by ethical schools of thought in western culture? A) accountability B) privacy C) due process D) liability

answer

B

question

What is the first step in analyzing an ethical dilemma?

answer

Identify and describe the facts

question

What ethical principle states that, when confronted with an ethical dilemma, individuals should take the action that achieves the greater value for all of society?

answer

the Collective Utilitarian principle

question

What ethical principle emphasizes putting oneself into the place of others and thinking of oneself as the object of the decision?

answer

the Golden Rule

question

What ethical principle asks you to assume that virtually all tangible and intangible objects are owned by someone else unless there is a specific declaration otherwise?

answer

No Free Lunch

question

What ethical principle states that if an action cannot be taken repeatedly, then it is not right to take at all?

answer

the Slippery Slope

question

What ethical principle asks you to consider the impact of your decision if the principles underlying your decision became an organizing principle of the entire society?

answer

the Social Contract rule

question

What ethical principle tells you that it is wise to assume perfect information markets?

answer

the New York Times test

question

What ethical principle states that when confronted with an ethical dilemma, an individual should take the action that produces the least harm, or the least potential cost?

answer

Risk Aversion

question

What basic ethical concept plays an important role in defining privacy?

answer

due process

question

___ is collected data that can be used to identify and locate an individual

answer

PII

question

What tool can companies use to track user statements and views on newsgroups, chat groups, and other public forums?

answer

search engines

question

What can be used to record all keyboard activity of a user?

answer

spyware

question

Which of the following is not one of the issues complicating the taxation of e-commerce sales? A) Taxes raised are used for different government purposes. B) Sales taxes and policies vary by state and country. C) Retailers legally only have to charge sales tax if they have operations located in the same state as a consumer. D) Small online businesses are unable to manage sales taxes to thousands of different jurisdictions

answer

A

question

Google's Gmail advertising has raised concerned about what issue?

answer

privacy

question

Which of the following statements about industry self-regulation regarding privacy is not true? A) OPA members are required to implement the OPA's privacy guidelines. B) The primary focus of industry efforts has been the use of online "seals" that attest to the site's policies. C) Industry efforts have not so far succeeded in reducing American fears of privacy invasion. D) The NAI's privacy policies have established the TRUSTe seal

answer

D

question

The sharing of a user's stored cookie information between Web sites and without the user's knowledge is:

answer

legal in the United States but illegal in Europe

question

What requires financial institutions to inform consumers of their privacy policies and permits consumers some control over their records?

answer

Gramm-Leach-Bliley Act

question

A social consequence of the richness of Internet information is:

answer

very persuasive messages might reduce the need for multiple independent sources of information

question

Which of the following is a core Fair Information Practices (FIP) principle? A) Choice/Consent B) Access/Participation C) Security D) Enforcement

answer

A

question

Which of the FTC's Fair Information Practices (FIP) principles requires identification of the collector of data?

answer

Notice/Awareness

question

Which of the FTC's Fair Information Practices (FIP) principles requires opt-in or opt-out policies to be in place?

answer

Choice/Consent

question

What is the FTC recommendation regarding choice as it relates to personally identifiable information (PII)?

answer

Require firms to have consumers affirmatively opt-in before PII is collected

question

"Do Not Track" falls under what principle in the FTC's new privacy framework?

answer

Simplified Choice

question

Which technology allows you to send e-mail without a trace?

answer

anonymous remailers

question

Which pricing plan charges fees to e-commerce firms based on the amount of traffic they generate?

answer

highway pricing

question

What is the major reason that the Internet has such potential for destroying traditional conceptions and implementations of intellectual property law?

answer

the ability to make perfect copies of digital works at little cost

question

What original form of expression is a tangible medium?

answer

copyright law

question

How long does copyright protection extend for corporate-owned works?

answer

95 years

question

Which of the following situations would not qualify for the fair use exception to U.S. copyright law? A) A professor clips a newspaper article just before class and distributes copies of it to his class. B) A journalist quotes a paragraph from a book in a review of the book. C) A student copies a photograph of his favorite band from a Web site created by the band's record label and places it on the student's personal Web site. D) Google posts thumbnail images of books in the Google Book Search Project

answer

C

question

All of the following are factors that will be considered in determining whether use of copyrighted material is "fair use" except the: A) nature of the work used. B) amount of the work used. C) market effect of the use. D) free availability of the work on the Web

answer

D

question

Downloading music tracks owned by record companies without paying for them is an example of a violation of:

answer

copyright law

question

All of the following are possible penalties for violating the Digital Millennium Copyright Act (DMCA) except: A) up to ten years imprisonment for a first offense. B) fines up to $500,000 for a first offense. C) fines up to $1 million for a repeat offense. D) restitution to the injured parties for any losses due to infringement

answer

A

question

All of the following statements about the Digital Millennium Copyright Act (DMCA) are true except: A) the DMCA makes it illegal to circumvent technological measures to protect works. B) the DMCA makes Internet Service Providers (ISPs) responsible and accountable for hosting Web sites or providing services to infringers regardless of whether the ISP is aware of infringement. C) the DMCA requires search engines to block access to infringing sites. D) the DMCA allows libraries to make digital copies of works for internal use only

answer

B

question

What allows someone to obtain an exclusive monopoly on the ideas behind an invention for 20 years?

answer

patent law

question

All of the following statements about patents are true except: A) it is more difficult to obtain a copyright than it is to obtain a patent. B) the four types of inventions protected by patent law are machines, manmade products, compositions of matter, and processing methods. C) computer programs can be patented. D) in order to be patented, an invention must be nonobvious

answer

A

question

What case was instrumental in paving the way for internet business methods patents?

answer

State Street Bank & Trust Co. vs. Signature Financial Group, Inc.

question

Amazon has a patent on:

answer

one-click purchasing

question

Disputes over federal trademarks involve establishing:

answer

infringement

question

Registering a domain name similar or identical to trademarks of others to extort profits from legitimate holders is an example of:

answer

cybersquatting

question

All of the following are data elements that are often gathered by e-commerce sites except: A) family member identities. B) photograph. C) location. D) address

answer

A

question

Registering a domain name similar or identical to trademarks of others to divert Web traffic to their own sites is an example of:

answer

cyberpiracy

question

Registering the domain name goggle.com with the intent to divert Web traffic from people misspelling google.com is an example of:

answer

typosquatting

question

Critics have pointed out that the Chrome browser's Suggest button, which suggests queries based on search terms entered by the user, is in fact, a type of:

answer

key logger

question

The display of a third-party's Web site or page within your own Web site is called:

answer

framing

question

Which of the following statements about e-commerce surveillance is not true? A) Government agencies are one of the largest users of personal data gathered by commercial data brokers. B) Google discards search information after 12 months. C) The largest private-sector commercial data broker is Acxiom. D) Commercial brokers of personal data combine personal identifying records with legal records such as driving records and clickstream behavior

answer

B

question

Which of the following is not one of the four stages of e-commerce governance? A) government regulation B) self-regulation C) privatization D) deregulation

answer

D

question

Which of the following statements about social, local, and mobile privacy is not true? A) A single Facebook photograph can be used to identify the subject's social security number with the use of facial recognition software. B) iOS and Android apps funnel personal location information, photos, and address books to mobile advertisers. C) Google and Apple track and record how users interact with the apps on users' smartphones. D) To date, there is no legal prohibition of the collection and sharing of personal data sent through mobile phones

answer

C

question

The ___ of Internet and Web technology can result in work and shopping invading family life

answer

ubiquity

question

The four major dimensions of e-commerce ethical, social, and political issues are public safety and welfare; property rights; information rights; and:

answer

governance

question

An ISP basic service plan, allowing 300GB of data transfer per month, with additional data transfer available for $15 for 50GB, is an example of a tiered plan called:

answer

cap pricing

question

Personal data that is defined as ___ information is demographic and behavioral information that does not include any personal identifiers

answer

anonymous

question

___ involves the creation of digital images that characterize online individual and group behavior

answer

Profiling

question

Megaupload is an example of a(n) ___ an online file storage service dedicated to sharing copyrighting material illegally

answer

cyberlocker

question

___ profiles identify people as belonging to highly specific and targeted groups

answer

Anonymous

question

A(n) ___ is a private self-regulating policy and enforcement mechanism that meets the objectives of government regulators and legislation, but does not involve government regulation or enforcement

answer

safe harbor

question

___ involves bypassing the target site's home page and going directly to a content page

answer

Deep linking

question

___ copyright infringement lawsuits are concerned with the distinction between an idea and its expression

answer

Look and feel

question

The doctrine of ___ permits teachers and writers to use copyrighted materials without permission under certain circumstances

answer

fair use

question

In trademark law, ___ is defined as any behavior that would weaken the connection between the trademark and the product

answer

dilution

question

Single words, pictures, shapes, packaging, and colors used to identify and distinguish goods are protected under ___ law

answer

trademark

question

Under the ___ Act, American intelligence authorities are permitted to tap into whatever Internet traffic they believe is relevant to the campaign against terrorism, in some circumstances without judicial review

answer

USA Patriot, Patriot

question

The issue of ___ pits those who wish that all Internet traffic is given equal backbone access against telephone and cable companies that would like to charge differentiated prices based on bandwidth and fees paid

answer

net neutrality

question

digital rights management (DRM)

answer

refers to the combination of technical and legal means for protecting digital content from unlimited reproduction without permission

question

technological convergence

answer

development of hybrid devices that can combine the functionality of two or more existing media platforms into a single device

question

content convergence

answer

convergence in the design, production, and distribution of content

question

industry convergence

answer

merger of media enterprises into synergistic combinations that create and cross-market content on different platforms

question

net value

answer

that portion of perceived customer value that can be attributed to the fact that content is available on the internet

question

cannibalization

answer

when sales of new digital products replace sales of traditional products

question

wholesale model

answer

prices are determined by the retailer

question

agency model

answer

the retailer is an agent and prices are set by the manufacturer

question

magazine aggregator

answer

a web site or app that provides subscriptions and sales of many digital magazines

question

over-the-top (OTT)

answer

use of the internet to deliver entertainment services to the home on cable TB or FiOS networks

question

iVOD (internet video on demand)

answer

streaming video to consumers for a subscription fee

question

EST (electronic sell-through)

answer

downloading movies to consumers for home or cloud storage

question

UltraViolet

answer

movie industry proof of DVD purchase program that allows playback of DVDs to any digital device

question

T/F Mobile commerce currently accounts for more retail goods sold than social commerce

answer

True

question

T/F In 2013, the number of online buyers was over 150 million

answer

True

question

T/F Groupon is an example of local commerce

answer

True

question

T/F Online retailing is one of the largest segments of the retail industry

answer

False

question

T/F Contrary to predictions of analysts made during the early days of e-commerce, the internet has led to both disintermediation and hypermediation on a widespread basis

answer

False

question

T/F Consumers are primarily price-driven when shopping on the internet

answer

False

question

T/F Online retailing provides an example of the powerful role that intermediaries continue to play in retail trade

answer

True

question

T/F The power of suppliers is a key industry strategic factor

answer

True

question

T/F In the United States, the service sector accounts for about 75% of all economic activity

answer

True

question

T/F The retail industry is the largest investor in information technology

answer

False

question

T/F Social network sites have become major locations from which consumers directly purchase products

answer

False

question

T/F Approximately two-thirds of U.S. internet users use online banking

answer

True

question

T/F The online mortgage industry has transformed the process of obtaining a mortgage

answer

False

question

T/F The major impact of internet real estate sites is in enabling online-only property transactions

answer

False

question

T/F Online career sites are being threatened by both job search engines and aggregators

answer

True

question

Which of the following is not a major trend in online retail for 2013-2014? A) Online retailing is the fastest growing retail channel B) Lunchtime purchases are the fastest growing time segment for online retail purchases C) Online retailers increase the use of interactive marketing tools such as blogs and user-generated content D) Social commerce almost doubles from $3 billion to $5 billion

answer

B

question

Personal consumption of retail goods and services accounts for approximately ___% of the United States GDP

answer

70

question

Eight of the top ten fastest-growing e-commerce merchants from 2003 to 2013 were:

answer

bricks-and-clicks companies

question

Within the United States retail market, personal consumption of ___ accounts for the largest share

answer

durable goods

question

Comparison shopping sites drive approximately ___% of e-commerce

answer

15

question

The MOTO sector of the retail industry is most similar to the ___ sector

answer

online retail sales

question

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

answer

A

question

Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve

answer

providing hands-on services

question

All of the following statements about the MOTO sector are true except: A) compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms B) the MOTO sector is also referred to as the specialty store sector C) MOTO was the last technological revolution that preceded e-commerce D) distribution of catalogs is one of MOTO retailers' biggest expenses

answer

B

question

All of the following were factors that precipitated the growth of MOTO except: A) the national toll-free call system B) the growth of the cellular phone industry C) falling long distance telecommunications prices D) the growth of the credit card industry

answer

B

question

All of the following were parts of the vision during the early days of e-commerce except the belief that: A) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business. B) Web consumers were rational and cost-driven. C) entry costs to the online retail market would be much less than those needed to establish a physical storefront. D) the cost of acquiring customers would be much lower

answer

A

question

In 2013, online retail revenues were approximately:

answer

$260 billion

question

In 2013, approximately what percentage of internet users over the age of 14 made a purchase at an online retail store?

answer

73%

question

Which consumer review aggregator is facing charges that as many as 10 million of its reviews are faked?

answer

TripAdvisor

question

The top 10 retailers account for about ___% of all online retail

answer

50

question

All of the following are advantages of online retail except: A) lower supply chain costs. B) lower cost of distribution. C) ability to change prices. D) faster delivery of goods

answer

D

question

Which of the following is not one of the central challenges facing the online retail industry? A) lack of physical store presence B) consumer concerns about the privacy of personal information C) inconvenience in returning goods D) delivery delays

answer

A

question

Which of the following is not one of the methods used by traditional retailers to develop multi-channel integration? A) online Web catalog B) online order, in-store pickup C) online supply-push D) online promotions for offline purchases

answer

C

question

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

answer

A

question

All of the following are strategic factors that pertain specifically to a firm and its related businesses except: A) core competencies. B) synergies. C) technology. D) power of customers

answer

D

question

The lower the cost of sales compared to ___, the higher the gross profit

answer

revenue

question

Gross margin is defined as gross profit:

answer

divided by net sales revenues

question

Which of the following is not categorized as an operating expense? A) the cost of products being sold B) marketing costs C) administrative overhead D) amortization of goodwill

answer

A

question

Operating margin is defined as:

answer

operating income or loss divided by net sales revenues

question

What is another name for pro forma earnings?

answer

earnings before income taxes, depreciation, and amortization (EBITDA)

question

Which of the following would not be considered a current asset? A) long-term investments B) cash C) accounts receivable D) marketable securities

answer

A

question

Current liabilities are debts of the firm that will be due within:

answer

one year

question

For a quick check of a firm's short-term financial health, examine its:

answer

working capital

question

Virtual merchants face potentially large costs for all of the following except: A) building and maintaining a Web site. B) building and maintaining physical stores. C) building an order fulfillment infrastructure. D) developing a brand name

answer

B

question

All of the following statements about Amazon.com are true except: A) Amazon has achieved success by focusing on its primary mission: selling books at highly competitive prices. B) Amazon leases its own computing power to other companies. C) eBay can be considered a competitor of Amazon's. D) the Kindle is the best-selling product in Amazon's history

answer

A

question

All of the following are challenges faced by bricks-and-clicks firms except: A) coordinating prices across channels. B) handling returns of Web purchases at retail outlets. C) building a credible Web site. D) building a brand name

answer

D

question

All of the following are challenges for catalog merchants except: A) high costs of printing and mailing. B) building a credible Web site. C) the need to bring staff in or manage new technology. D) building sophisticated order entry and fulfillment systems

answer

D

question

Which of these job recruitment sites is a job site aggregator?

answer

SimplyHired

question

The term demand-pull refers to:

answer

waiting for orders to be received before building a product

question

All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: A) moving to a demand-pull model. B) high cost structures. C) developing a fast-response online order and fulfillment system. D) channel conflict

answer

B

question

Which of the following has experienced the most significant online growth?

answer

offline general merchandisers

question

Approximately ___% of the United States labor force is involved in providing services

answer

75

question

Which of the following is not an example of a transaction broker? A) a stockbroker B) a real estate agent C) an accountant D) an employment agency

answer

C

question

All of the following services require extensive personalization except: A) financial services. B) legal services. C) medical services. D) accounting services

answer

A

question

Which of the following is not one of Amazon's primary business models? A) transaction brokering B) financial services provider C) manufacturer-direct D) content provider

answer

B

question

Which of the following statements about online banking is not true? A) Top mobile banking activities include paying bills and depositing checks. B) Online and mobile banking transactions incur radically lower transaction costs than in-person transactions. C) Online banking is beginning to displace national banks. D) Online banking is the primary banking channel for all ages

answer

C

question

In ___, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized web site

answer

account aggregation

question

The internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line?

answer

term life insurance

question

All of the following statements about the online insurance industry are true except: A) the Internet has dramatically changed the insurance industry's value chain. B) Web sites of almost all the major firms provide the ability to obtain an online quote. C) Internet usage has led to a decline in term life insurance prices industry-wide. D) the industry has been very successful in attracting visitors searching for information

answer

A

question

All of the following statements about the online real estate services market are true except: A) the major impact of Internet real estate sites is in influencing offline decisions. B) real estate differs from other types of online financial services because it is impossible to complete a property transaction online. C) the primary service offered by real estate sites is a listing of houses available. D) the Internet and e-commerce have created significant disintermediation in the real estate marketplace

answer

D

question

Craigslist is a player in what online services market?

answer

real estate services and career services

question

What best explains why the service sector is a natural avenue for e-commerce?

answer

Much of the value in services is based on the collection, storage, and exchange of information

question

What is the largest sector of the online travel services market in terms of revenue?

answer

airline reservations

question

Which of the following statements is not true? A) Price competition among online travel services is difficult as comparison shopping for better prices is easy. B) Online travel services is one of the few sectors in which extensive disintermediation has occurred. C) The ability of travel products and services to be commoditized is a significant factor in the explosive growth of the online travel services industry. D) The online travel services industry has gone through a period of consolidation

answer

B

question

Which of the following is not a major trend in the online recruitment services industry? A) disintermediation B) localization C) social networking D) consolidation

answer

A

question

___ is the leading supplier of reservation, table management, and guest management software for restaurants

answer

OpenTable

question

___ occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer

answer

Channel conflict

question

___ refers to the ability of firms to survive as profitable business firms during the specified period

answer

Economic viability

question

___ measures the percentage of sales revenue a firm is able to retain after all expenses are deducted from gross revenues

answer

Net margin

question

A(n) ___ provides a financial snapshot of a company's assets and liabilities (debts) on a given date

answer

balance sheet

question

If a firm's ___ is only marginally positive, or negative, the firm will likely have trouble meeting its short-term obligations

answer

working capital

question

A(n) ___ is a single channel web firm that generates almost all its revenues from online sales

answer

virtual merchant

question

In a(n) ___ strategy, traditional merchants combine their offline retail and online retail stores and services to provide a seamless customer experience

answer

multi-channel

question

Thus far, the most successful and innovative pure-play online retailer is:

answer

Amazon.com, Amazon

question

The leading provider of account aggregation technology is:

answer

Yodlee

question

In a(n) ___ model, products are made prior to orders received based on estimated demand

answer

supply-push

question

The four main online retail business models are virtual merchants, multi-channel merchants, manufacturer-direct firms, and ___ merchants

answer

catalog

question

___ are sites that provide consumers with comparison shopping services, independent financial advice, and financial planning

answer

Financial portals

question

The four major sectors in the travel market are airline tickets, hotel reservations, cruises/tours, and:

answer

car rentals

question

___ provide integrated airline, hotel, conference center, and auto rental services at a single web site

answer

Corporate Online Booking Solutions, COBS

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