Product Description


Multiple Choice

1. When a user clicks on a malvertisement on a Web site, the ad will __________.

a) release the latest malware to launch attacks on government agencies

b) redirect to and load a malicious Web site, which is a replica of the site the user was expecting

c) download a cookie that tracks the user’s purchases and credit cards

d) all of the above

2. A service level agreement (SLA) is a legal written contract between a vendor and client in which the vendor guarantees __________.

a) a maximum service charge

b) free upgrades for the length of the contract

c) no defects and/or no risk

d) a minimal level of service

3. Effective e-business models and competitive strategies are developed by __________.

a) vendors and service providers

b) senior marketing managers

c) managers from various functional areas, including marketing, IT, operations, logistics, and accounting

d) Web site designers

4. Online channels and connectivity support __________, which minimizes the limitations of having to be physically present in a single location to collaborate or train.

a) the e-business process

b) telepresence

c) community

d) self-service

5. Over 85 percent of e-commerce dollar volume is __________ commerce.

a) B2B

b) B2C

c) G2G

d) G2B

6. is an example of __________ commerce because the customer names a product or service and the desired price, and then Priceline tries to find a supplier to fulfill that need.

a) business-to-consumers

b) consumers-to-business

c) mobile

d) business-to-business

7. A benefit of hosting an e-commerce Web site on a third-party’s server is __________, which is being able to add-on additional capacity incrementally, quickly, and as needed.

a) scalability

b) maintenance

c) accuracy

d) security

8. In order to accept credit card payments for purchases, American Express, Visa and other credit card companies require that e-commerce Web sites be PCI DSS compliant and certified to __________.

a) help prevent credit card fraud

b) support Web site analytics

c) manage customer relationships

d) verify that the products are in-stock.

9. Which of the following is not a characteristic of competitive innovation?

a) No competitive innovation remains unique for long.

b) Leading companies are always looking for next-generation capabilities to develop new competitive advantage.

c) Most innovations cannot be duplicated by other companies.

d) A current approach is to integrate social networks.

10. In the e-commerce business model __________, a vendor asks its partners to place logos or banner ads on their sites. If customers click the logo, go to vendor’s site, and buy; then the vendor pays a commission to partners.

a) affiliate marketing

b) B2B commerce

c) relationship marketing

d) viral marketing

11. Sears uses __________ as a selling channel to liquidate (get rid of) its excess or discontinued inventory.

a) C2C commerce

b) forward auctions

c) reverse auctions

d) affiliate marketing

12. Which of the following is not one of’s success factors?

a) Patented IT developments

b) Personalized service

c) Physical warehouses designed for shipping small packages to hundreds of thousands of customers

d) Maintaining a constant business model

13. For banks, one benefit from implementing online banking is __________.

a) it offers an inexpensive alternative to branch banking

b) transaction costs are about 40% lower than at a physical branch

c) margins are higher because interest rates offered to customers are lower

d) all of the above

14. Characteristics of ING Direct’s competitive strategy include all of the following except:

a) paid the highest rates on savings accounts

b) invested heavily in marketing campaigns

c) could not be copied by competitors

d) had almost no bricks and mortar

15. Which of the following is not one of the challenges facing many e-tailers that can interfere with the growth of its e-tailing efforts?

a) channel conflict

b) reaching customers

c) conflict within their own offline operations

d) tough order fulfillment and logistics problems

16. When managers are planning and managing their online business, they should do all of the following except _____.

a) make data-driven, fact-based plans

b) identify all key assumptions in the marketing plan

c) monitor progress to identify when adjustments are needed, and then be agile enough to respond

d) build the marketing plan around the products, rather than on customer

17. E-sourcing refers to the many __________ methods.

a) B2C e-commerce

b) procurement

c) sell-side

d) C2C auction

18. E-procurement strategies and solutions have two basic goals, which are _____.

a) to control costs and simplify processes

b) collaboration and negotiation

c) supplier selection and product selection

d) RFQ processing and exchanges

19. The benefits of streamlining the e-procurement process within an organization’s value chain include all of the following except:

a) maximizes the number of suppliers

b) reduces the number of employees needed to process purchasing

c) reduces the time to order and receive items

d) helps employees make intelligent decisions when procuring items

20. Public and private __________ are sites where many sellers and many buyers buy and sell.

a) networks

b) exchanges

c) sources

d) value chains

21. and are examples of vertical exchanges in which the prices of products __________.

a) change continuously based on the matching of supply and demand

b) are fixed based on contracts

c) change based on quantity purchased

d) are negotiated annually

22. The purchase of indirect materials on an as-needed basis is referred to as __________ sourcing.

a) horizontal

b) vertical

c) spot

d) systematic

23. __________ are e-marketplaces that serve one industry, e.g., automotive, chemical, along the entire supply chain.

a) Vertical exchanges

b) Supply hubs

c) Horizontal exchanges

d) Collaboration hubs

24. American Express developed tools that improved compliance with procurement rules on indirect purchases, or MRO supplies. One of the major performance improvements was the __________.

a) increase in spot buying

b) elimination of maverick buying

c) reduction in billing errors

d) increase in purchases from local vendors

25. Why does maverick buying increase the costs of products?

a) Vendor’s prices may be high.

b) It can keep the company from getting volume discounts.

c) It makes the procurement process too complicated.

d) a and b

26. Electronic benefits transfer (EBT), in which governments distribute benefit payments, such as Social Security payments, directly to recipients’ bank accounts or their smart cards is an example of __________.

a) G2B

b) G2C

c) G2G

d) G2S

27. __________ systems using reverse auctions are often mandatory to ensure the best price and quality for government procurement of goods and services.

a) Electronic tendering

b) Cloud computing

c) Spot sourcing

d) Maverick buying

28. A survey conducted by the nonprofit Public Technology Institute (PTI) found 45 percent of local governments are using some form of __________ for applications or services because of budget pressures to reduce costs.

a) electronic tendering

b) cloud computing

c) spot sourcing

d) maverick buying

29. With __________, users log in once and then have access to all software and data sources that they are authorized to access.

a) cloud computing

b) data centers

c) servers

d) single sign-on

30. California’s Office of Traffic Safety (OTS) partnered with the Taxi Magic app team to __________.

a) reduce DUI

b) sponsor contests

c) interface with Facebook

d) reduce poverty

31. One of the major e-commerce services is __________, which consists of technology consultants, system developers, integrators, hosting, security, wireless, and networks.

a) e-process

b) e-infrastructure

c) e-markets

d) e-content

32. The goal of __________ is to find information and knowledge that describe the relationships among consumers, products, marketing methods, and marketers.

a) social marketing

b) surveys

c) market research

d) directory services

33. One of the problems with __________ advertising is that advertisers knew very little about the recipients.

a) direct mail

b) Web

c) interactive

d) social media

34. __________ is a revenue model by which an organization refers consumers to the selling company’s Web site.

a) Affiliate marketing

b) Customizing ads

c) Sourcing

d) Viral marketing

35. __________ refers to word-of-mouth marketing in which customers promote a product or service by telling others about it.

a) Affiliate marketing

b) Customizing ads

c) Sourcing

d) Viral marketing

36. __________ is the filtering out of irrelevant information for consumers in order to reduce their information overload.

a) Affiliate marketing

b) Customizing ads

c) Sourcing

d) Viral marketing

37. PayPal is an example of __________.

a) e-cash

b) electronic payment systems

c) ATM

d) micropayments

38. Credit card data is secured through __________ by using the SSL protocol in the browser of the buyer’s computer.

a) steganography

b) PKI

c) encryption

d) routers

39. Security requirements for conducting e-commerce are each of the following except:

a) authentication

b) integrity

c) privacy

d) e-money

40. Which of the following is not a characteristic of order fulfillment in B2C e-commerce?

a) It is very difficult to accomplish order fulfillment both effectively and efficiently since a company may need to ship small packages to many customers quickly.

b) Order fulfillment processes are basically the same regardless of the type and size of the products and the vendor.

c) Because of difficulties in B2C supply chains, companies outsource deliveries and sometimes also the packaging.

d) Order fulfillment includes not only providing customers with what they ordered and doing it on time, but also providing all related customer service.

41. Ethical standards and laws frequently __________ technological innovation.

a) lag behind

b) keep pace

c) conflict with

d) lead ahead of

42. __________ are the principal resources used to track visitors’ Web activities and from which e-businesses draw information about how visitors use a site.

a) Cookies

b) Firewalls

c) Log files

d) Flash files

43. Car insurance companies, manufacturers, and airlines are able to sell their products and services directly to customers via B2C sites and eliminate agents and retailers. This phenomenon is referred to as __________.

a) nonrepudiation

b) order fulfillment

c) intermediation

d) disintermediation

44. The legal and ethical issues related to e-commerce include all of the following except:

a) PCI

b) fraud

c) Web tracking

d) privacy

45. Privacy Guardian, MyPrivacy, and Tracks Eraser Pro are examples of software that can protect users’ online privacy by erasing _____.

a) a browser’s cache

b) surfing histories

c) cookies

d) all of the above


46. The online explosion has given today’s consumers less control over where and how they interact with a business or a brand through a mix of online channels and media.

47. In B2C, the sellers are organizations, and the buyers are individuals. B2C is also called e-tailing.

48. Web sites need to be hosted on large capacity servers that are capable of supporting the volume of requests for access, or traffic.

49. Hosting an e-business Web site on a third-party’s server is done if the company lacks infrastructure to host it themselves, does not have the IT expertise to manage it, or needs scalability.

50. Unlike brick-and-mortar merchants, all e-commerce merchants need to be PCI DSS compliant to accept, hold, process, or exchange credit cardholder information of the major credit cards.

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