Question 1

1) In traditional commerce, one or more of the following can be digital: the product or service, the process, and the delivery agent.

Accepted Answer

Answer: False

Question 2

2) Visiting the Web site of a car manufacturer (e.g., www.gm.com), entering the specifications for the car you want, and then picking up your car at your local dealership is an example of partial electronic commerce.

Accepted Answer

Answer: True

Question 3

3) eBay is a good example of business-to-consumer electronic commerce.

Accepted Answer

Answer: False

Question 4

4) Forward auctions are auctions that sellers use as a channel to many potential buyers.

Accepted Answer

Answer: True

Question 5

5) Even though B2C EC is much larger by volume, B2B is more complex.

Accepted Answer

Answer: False

Question 6

6) An electronic storefront is a Web site on the Internet that represents a single store.

Accepted Answer

Answer: True

Question 7

7) You can make a purchase in a referral mall.

Accepted Answer

Answer: False

Question 8

8) Selling products such as books and computers on the Internet may reduce vendors\' selling costs by 20 to 40 percent, with further reductions being difficult because the products must be delivered physically.

Accepted Answer

Answer: True

Question 9

9) Virtual banks are those banks that are dedicated only to Internet transactions.

Accepted Answer

Answer: True

Question 10

10) Channel conflict occurs when click-and-mortar companies have problems with their regular distributors when they sell directly to customers online.

Accepted Answer

Answer: True

Question 11

11) Internet advertising is impersonal, one-way mass communication.

Accepted Answer

Answer: False

Question 12

12) Banners are the most common form of advertisement on the Internet.

Accepted Answer

Answer: True

Question 13

13) Hacking is the indiscriminate distribution of electronic ads without permission of the receiver.

Accepted Answer

Answer: False

Question 14

14) Business-to-consumer applications comprise the majority of electronic commerce volume.

Accepted Answer

Answer: False

Question 15

15) The key mechanisms in the sell-side marketplace are customized electronic catalogs and reverse auctions.

Accepted Answer

Answer: False

Question 16

16) The buy-side marketplace is similar to the business-to-consumer model.

Accepted Answer

Answer: False

Question 17

17) Horizontal exchanges connect buyers and sellers across many industries.

Accepted Answer

Answer: True

Question 18

18) In most cases, traditional payment systems are not effective for electronic commerce.

Accepted Answer

Answer: True

Question 19

19) Smart cards can be used as credit cards, debit cards, and/or loyalty cards.

Accepted Answer

Answer: True

Question 20

20) Each buyer needs only one e-wallet for all merchants.

Accepted Answer

Answer: False

Question 21

21) E-commerce affects only businesses that sell products online.

Accepted Answer

Answer: False

Question 22

25) Which of the following is not an effect that E-commerce has had on organizations? a) E-commerce enables smaller businesses to operate in areas dominated by larger companies. b) E-commerce increases the number of potential customers to whom the company can market its products. c) E-commerce is a costly medium for increasing market share. d) E-commerce removes many barriers for start-up businesses. e) E-commerce makes it easy to reach customers around the world.

Accepted Answer

c) E-commerce is a costly medium for increasing market share.

Question 23

26) _____, which is a broader concept than _____, is the buying and selling of goods and services, as well as servicing customers, collaborating with business partners, and performing transactions within an organization. a) Business-to-business electronic commerce, business-to-customer electronic commerce b) Electronic commerce, electronic business c) Business-to-customer electronic commerce, business-to-business electronic commerce d) Business-to-business electronic commerce, intrabusiness electronic commerce e) Electronic business, electronic commerce

Accepted Answer

b) Electronic commerce, electronic business

Question 24

27) The degree of digitization relates to all of the following except: a) the product or service sold b) the process by which the product is produced c) the delivery agent or intermediary d) the size of e-commerce transactions e) none of these

Accepted Answer

d) the size of e-commerce transactions

Question 25

28) In _______ e-commerce, the sellers and buyers are organizations. a) government-to-citizen b) consumer-to-consumer c) business-to-business d) business-to-consumer e) consumer-to-business

Accepted Answer

c) business-to-business

Question 26

29) In ________ e-commerce, an organization provides information and services to its workers.  a) business-to-employee b) consumer-to-consumer c) consumer-to-business d) business-to-consumer e) government-to-business

Accepted Answer

a) business-to-employee

Question 27

30) Direct payment of Social Security benefits is an example of ______ e-commerce.  a) government-to-citizen b) consumer-to-consumer c) consumer-to-business d) business-to-consumer e) business-to-business

Accepted Answer

a) government-to-citizen

Question 28

31) If you are an worker managing your fringe benefits over your company\'s intranet, you are engaging in _________ e-commerce. a) business-to-business b) business-to-consumer c) consumer-to-consumer d) business-to-employee e) government-to-citizen

Accepted Answer

d) business-to-employee

Question 29

32) Which of the following statements regarding the relationship between electronic commerce and search is not correct? a) Purchases often follow successful online searches. b) Shopping carts are often abandoned after unsuccessful online searches. c) Retailers will provide fewer product details to avoid information overload for customers. d) Customers will be able to find the closest store offering the product that they want. e) Customers will have more relevant product information in the near future.

Accepted Answer

c) Retailers will provide fewer product details to avoid information overload for customers.

Question 30

33) In _____ auctions, there is one buyer who wants to buy a product. Suppliers submit bids, and the lowest bid wins. a) forward b) static c) reverse d) physical e) simple

Accepted Answer

c) reverse

Question 31

34) eBay uses a _____ auction. a) forward b) static c) reverse d) physical e) simple

Accepted Answer

a) forward

Question 32

35) _____ auctions employ a request for quotation. a) Forward b) Static c) Reverse d) Physical e) Simple

Accepted Answer

c) Reverse

Question 33

36) _____ auctions are the most common auction model for large purchases.  a) Forward b) Static c) Reverse d) Physical e) Simple

Accepted Answer

c) Reverse

Question 34

37) In which of the following business models do businesses request quotes from suppliers and use B2B with a reverse auction mechanism? a) find-the-best-price b) electronic tendering system c) name-your-own-price d) online direct marketing e) affiliate marketing

Accepted Answer

b) electronic tendering system

Question 35

38) A vendor asks its business partners to place logos or banners on their Web sites. If customers click on a logo, visit the vendor\'s site, and make a purchase, then the vendor pays a commission to the partner. This scenario illustrates which business model? a) find-the-best-price b) electronic tendering system c) name-your-own-price d) online direct marketing e) affiliate marketing

Accepted Answer

e) affiliate marketing

Question 36

39) Which type of electronic commerce is the largest by volume?  a) business-to-employee b) consumer-to-consumer c) business-to-business d) business-to-consumer e) none of these

Accepted Answer

c) business-to-business

Question 37

40) Which type of electronic commerce does Amazon practice?  a) business-to-employee b) consumer-to-consumer c) consumer- to-business d) business-to-consumer e) employee-to-business

Accepted Answer

d) business-to-consumer

Question 38

41) _______ e-commerce is also known as e-tailing.  a) Business-to-business b) Collaborative commerce c) Intrabusiness d) Business-to-consumer e) Consumer-to-business

Accepted Answer

d) Business-to-consumer

Question 39

42) The advantages of electronic commerce for consumers include all of the following except:  a) You can buy from home 24 hours per day, 7 days per week. b) You have a wider variety of products to choose from. c) You typically cannot access additional information, so you do not have information overload. d) You can easily compare prices and features. e) You can find unique items.

Accepted Answer

c) You typically cannot access additional information, so you do not have information overload.

Question 40

43) Which of the following is not an electronic commerce application?  a) home banking b) buying stocks c) evaluating an employee d) conducting an auction e) buying real estate

Accepted Answer

c) evaluating an employee

Question 41

44) Which of the following is not an advantage of e-tailing?  a) You can buy from home, 24 hours per day. b) You have only a few products to choose from. c) You can obtain detailed information on products. d) You can compare competitors\' products and prices. e) All of these

Accepted Answer

b) You have only a few products to choose from.

Question 42

45) ________ is the process whereby a fully automated electronic commerce transaction eliminates middlemen.  a) Disintegration b) Supply chain integration c) Direct sales d) Disintermediation e) Value-added services

Accepted Answer

d) Disintermediation

Question 43

46) Cyberbanking offers all of the following advantages except:  a) It is convenient for customers. b) It saves time for customers. c) It includes inexpensive transactions for the bank. d) It can help recruit remote customers. e) It is more expensive for the customer.

Accepted Answer

e) It is more expensive for the customer.

Question 44

47) Which of the following is a problem that e-commerce can cause for the airline industry?  a) Too many fares b) Mistakes in fares c) Too few fares d) No fares offered on certain routes e) Too many fares offered on certain routes

Accepted Answer

b) Mistakes in fares

Question 45

50) Difficulties in order fulfillment are most closely associated with which type of electronic commerce?  a) business-to-business  b) business-to-consumer  c) government-to-citizen  d) business-to-employee  e) mobile commerce

Accepted Answer

b) business-to-consumer

Question 46

51) Internet advertising improves on traditional advertising in all of the following ways except:  a) Internet ads can be updated at any time at minimal cost. b) Internet ads can reach large numbers of potential buyers all over the world. c) Internet ads are always more effective than other types of advertising. d) Internet ads can make effective use of multimedia. e) Internet ads are current.

Accepted Answer

c) Internet ads are always more effective than other types of advertising.

Question 47

52) A _____ is automatically launched by some trigger and appears behind the active window.  a) keyword banner b) random banner c) pop-up ad d) pop-under ad e) text box

Accepted Answer

d) pop-under ad

Question 48

53) _____ offer(s) consumers incentives to accept advertising and e-mail voluntarily.  a) Viral marketing b) Personalized marketing c) Permission marketing d) Paper catalogs e) Direct mail

Accepted Answer

c) Permission marketing

Question 49

54) _____ refers to online word-of-mouth marketing.  a) Permission marketing b) One-to-one marketing c) Personalized marketing d) Viral marketing e) Direct mail

Accepted Answer

d) Viral marketing

Question 50

55) In the _____ marketplace model, organizations attempt to sell their products or services to other organizations electronically.  a) buy-side b) sell-side c) group purchasing d) desktop purchasing e) electronic exchange

Accepted Answer

b) sell-side

Question 51

56) The key mechanisms of the _____ marketplace model are forward auctions and electronic catalogs that can be customized for each large buyer.  a) buy-side b) sell-side c) group purchasing d) desktop purchasing e) electronic exchange

Accepted Answer

b) sell-side

Question 52

57) In the _____ marketplace model, EC technology is used to streamline the purchasing process in order to reduce the cost of items purchased, the administrative cost of procurement, and the purchasing cycle time.  a) buy-side b) sell-side c) auctions d) group purchasing e) electronic exchange

Accepted Answer

a) buy-side

Question 53

58) In the _____ B2B application, the orders of many buyers are aggregated so that they comprise a large volume, in order to merit more seller attention.  a) buy-side b) sell-side c) auctions d) group purchasing e) electronic exchange

Accepted Answer

d) group purchasing

Question 54

59) In _____, direct and indirect materials in one industry are purchased on an as-needed basis.  a) horizontal exchanges b) vertical exchanges c) buy-side marketplaces d) functional exchanges e) sell-side marketplaces

Accepted Answer

b) vertical exchanges

Question 55

60) _____ connect buyers and sellers across many industries and are used mainly for indirect materials.  a) Horizontal exchanges b) Vertical exchanges c) Buy-side marketplaces d) Functional exchanges e) Sell-side marketplaces

Accepted Answer

a) Horizontal exchanges

Question 56

61) All of the following are limitations of traditional payment methods in electronic commerce except:  a) Cash cannot be used because there is no face-to-face contact. b) Paying for goods and services via the mail takes more time.  c) Not all organizations accept credit cards. d) It is more secure for the buyer to use the telephone than to complete a secure transaction on a computer. e) None of these

Accepted Answer

d) It is more secure for the buyer to use the telephone than to complete a secure transaction on a computer.

Question 57

62) _____ are a payment mechanism that are similar to regular bank checks but are transmitted electronically, with a signature in digital form.   a) Electronic checks b) Electronic credit cards c) Electronic cash transactions d) Electronic wallets e) Electronic debit cards

Accepted Answer

a) Electronic checks

Question 58

63) _____ use credit card numbers, transmitted electronically over the Internet, to pay for goods and services. They are either unencrypted or encrypted, with coded data readable by an intermediary between the buyer\'s and seller\'s banks.   a) Electronic checks b) Electronic credit cards c) Electronic cash transactions d) Electronic wallets e) Electronic debit cards

Accepted Answer

b) Electronic credit cards

Question 59

64) _____ are typically used for unplanned B2B purchases for amounts under $2000.  a) Electronic checks b) Stored-value money cards c) Purchasing cards d) Smart cards e) Person-to-person payments

Accepted Answer

c) Purchasing cards

Question 60

65) ______ are a form of e-cash that enable you to store a fixed amount of prepaid money and then spend it as necessary.  a) Electronic checks b) Stored-value money cards c) Purchasing cards d) Smart cards e) Person-to-person payments

Accepted Answer

b) Stored-value money cards

Question 61

66) _____ contain a chip that can store information and be used for several purposes.  a) Electronic checks b) Stored-value money cards c) Purchasing cards d) Smart cards e) Person-to-person payments

Accepted Answer

d) Smart cards

Question 62

67) _____ enable two individuals to transfer funds without using a credit card.  a) Electronic checks b) Stored-value money cards c) Purchasing cards d) Smart cards e) Person-to-person payments

Accepted Answer

e) Person-to-person payments

Question 63

68) _____ are software mechanisms that provide security measures and convenience for electronic commerce purchasing.  a) Electronic checks b) Digital wallets c) Purchasing cards d) Smart cards e) Person-to-person payments

Accepted Answer

b) Digital wallets

Question 64

69) The practice of using similar but not identical domain names is called _____.  a) domain spoofing b) domain masquerading c) domain tasting d) cybersquatting e) domain fraud

Accepted Answer

c) domain tasting

MIS Chapter 7 E-Business and E-Commerce – Flashcards

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