E-Commerce Management
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1) The 2008 Olympics in Beijing was the most digital Olympics to date for each of the following
reasons except:
a. many of the tickets were purchased online by people worldwide, using Beijing
Gehue Ticketmaster, in what is called business-to-business (B2B) e-commerce.
b. the International Olympic Committee launched a YouTube channel to broadcast
clips that were accessible in many developing countries.
c. millions watched the Olympics through online videos and Internet-enabled cell
phones and other mobile devices.
d. Global Positioning Systems (GPS) were used to track the position of sailing and
rowing boats.
2) EC can take several forms depending on the degree of digitization of the following three
dimensions:
a. the product or service sold, the process and the delivery method.
b. the business process, the collaboration and the transaction.
c. the payment method, the delivery method and the production method.
d. the marketing channel, the agent and the collaboration method.
3) Purely physical companies are referred to as ________ companies, whereas companies that are
engaged only in EC are considered ________ companies.
a. pure play; virtual
b. brick-and-mortar; virtual
c. click-and-mortar; click-and-brick
d. virtual; pure play
4) A business, such as Apple, doing online transactions with its trading partners is an example
of ________.
a. B2B
b. B2C
c. e-CRM
d. EDI
5) ________ refers to the second-generation of Internet services that let people collaborate and
share information online in new ways such as social networks and wikis.
a. Virtual Web
b. Media Web
c. Web 2.0
d. Social Web
6) Which of the following is not a characteristic of the Digital Revolution?
a. Many business processes expedited by up to 50 percent
b. Intelligent search agents to help manage information overload
c. A high rate of obsolescence
d. Fraud and other cybercons carried out via the Internet
7) Many companies employ a(n) ________, which is a gateway for customers, employees, and
partners to reach corporate information and to communicate with the company.
a. corporate portal
b. intranet
c. extranet
d. social network
8) The digital enterprise shifts the focus from managing individual information resources such as
devices, applications and data to ________ that define the business and ultimately deliver
value to customers and end users.
a. developing models
b. orchestrating the services and workflows
c. organizing supply chains
d. transforming revenue models
9) Because the rate of change and the level of uncertainty in the marketplace are expected to
accelerate, organizations are __________.
a. unable to react quickly enough to threats and opportunities.
b. operating under increasing pressures to produce more products, faster, and with
fewer resources.
c. making fewer decisions and/or decisions less frequently.
d. considering less information when making decisions.
10) Large private organizational buyers and government agencies make large-volume or large-value
purchases through ________, also known as reverse auctions.
a. electronic tendering systems
b. online direct marketing
c. name-your-own-price models
d. viral marketing
11) Benefits of EC to organizations include each of the following except:
a. cost reduction.
b. information security.
c. supply chain improvements.
d. efficient procurement. Final Examination 7 BAM 570 E-Commerce Management
12) All of the following are benefits of EC to society except:
a. more public services.
b. closing the digital divide.
c. fewer permits and less tax.
d. improve homeland security.
13) Eastern Mountain Sports introduced ________ tools in order to increase collaboration,
information sharing and communication among stores and their employees, suppliers and
customers.
a. business intelligence
b. B2B
c. B2C
d. Web 2.0
14) Traditional and electronic markets have three main functions which include each of the
following except:
a. matching buyers and sellers.
b. facilitating the exchange, purchase or transfer of information, goods, services
and payments associated with transactions.
c. financing the transformation of raw materials into finished products.
d. providing an institutional infrastructure, such as a legal and regulatory framework that
enables the efficient functioning of the market.
15) The cost curves of digital products differ from the cost curves of physical products because
in digitization __________.
a. most costs are variable and fixed costs are low
b. most costs are fixed and variable costs are very low
c. most costs are fixed, but variable costs are high
d. all costs are variable
16) Activities related to order fulfillment, inventory management, purchasing from suppliers,
accounting and finance, packaging and delivery are done in what is termed the ________ of
the business.
a. front end
b. back end
c. infrastructure
d. intermediary 8 Final Examination BAM 570 E-Commerce Management
17) Insurance companies and hotels sell services through storefronts called ________.
a. RSS
b. browsers
c. portals
d. wikis
18) Human or electronic intermediaries attempt to reduce each of the following limitations of
direct interaction except:
a. search costs.
b. lack of privacy.
c. contract risk.
d. product distribution.
19) Customized catalogs are especially useful in B2B e-commerce for each of the following
reasons except:
a. e-catalogs can be designed to show only the items that the employees in a
specific organization are allowed to purchase.
b. Intranets, in particular, can deliver customized catalogs to different business
customers.
c. e-catalogs can show the buyer's ID number for the item, model, or SKU number
rather than the seller's ID numbers.
d. e-catalogs can be customized to show the same item to different customers at
different prices, reflecting discounts or purchase-contract agreements.
20) E-catalogs have several common characteristics. Which of the following is not a characteristic
of e-catalogs?
a. Easy to create without advanced information technology
b. Easy to update product information
c. Easy to customize
d. Good search and comparison capabilities
21) A(n) ________ is an order-processing technology that allows customers to accumulate items
they wish to buy while they continue to shop.
a. intelligent agent
b. e-fulfillment agent
c. electronic shopping cart
d. mobile portal
22) All of the following are benefits of e-auctions to buyers except:
a. can liquidate large quantities quickly.
b. convenience of bidding anywhere and any time.
c. opportunity to bargain.
d. opportunities to find unique items.
23) ________ are audio files that enable companies to deliver audio-specific content, including
music, speeches, radio-style presentations and more.
a. Blogs
b. Mashups
c. Podcasts
d. Wikis
24) According to Internet Retailer (2007), approximately ________ percent of adult U.S. Internet
users shop online or research offline sales online.
a. 25
b. 45
c. 65
d. 85
25) All of the following categories have been selling well online except:
a. groceries.
b. travel.
c. cars.
d. health and beauty.
26) With all else being equal in the online environment, goods with any of the following product
characteristics are expected to facilitate greater online sales except:
a. relatively expensive items.
b. high brand recognition.
c. digitized format.
d. frequently purchased items.
27) Dell's distribution strategy is best described as ________.
a. a brick-and-mortar strategy
b. a shared service mall strategy
c. a click-and-mortar strategy
d. direct marketing from a manufacturer
28) A marketer that uses e-mail to advertise to potential customers is called a ________.
a. market maker
b. transaction broker
c. content disseminator
d. viral marketer
29) All of the following are revenue models for online independent travel agents except:
a. direct marketing revenues.
b. direct revenues from commissions.
c. subscription or membership fees.
d. revenue sharing fees.
30) Which is not a characteristic of social computing technologies?
a. Social computing is increasingly playing a larger role in corporate online strategy.
b. Social computing has shifted online travel from passive selling to active customer
engagement.
c. Companies that implement social computing technologies on their own websites should
view it primarily as a sales tool and less as supporting business goals.
d. Social computing plays an important role by providing more correct and relevant
information.
31) One of the characteristics of Web 2.0 in the travel industry is ________.
a. standardization
b. segmentation
c. personalization
d. intermediation
32) Characteristics of the job market and employment placement include all of the following
except:
a. they are very stable.
b. there is an unbalanced supply and demand.
c. career portals on corporate websites reduce recruitment costs.
d. the job market has essentially moved online.
33) The TRUSTe seal is an example of ________.
a. a business rating
b. an intermediary
c. a B2B exchange
d. a trustmark
34) A(n) ________ is someone whose advice or view carries some weight in making a final
purchasing decision.
a. initiator
b. influencer
c. decider
d. buyer
35) Marketing and advertising approaches have evolved from mass marketing to market
segmentation to one-to-one marketing. This evolution occurred because ___________.
a. the marketing focus shifted from customers to products
b. companies sought to decrease the number of marketing campaigns
c. concerns about privacy have diminished
d. the Internet enabled companies to better communicate with customers and
understand their needs and buying habits
36) By increasing customer loyalty, EC companies can achieve each of the following benefits
except:
a. lower marketing and advertising costs.
b. higher warranty claims costs.
c. lower transaction costs.
d. high resistance to competitors
37) Procter & Gamble (P&G) used the Internet in the new product development of Whitestrips, a
teeth-brightening product. Based on this experience, P&G ___________.
a. decided to add Internet research to its traditional marketing test model
b. could not determine the target market segments for the Whitestrips
c. learned that the cost of online surveys was about the same as similarly sized
telephone surveys, but online surveys expedited research considerably
d. reduced the time-to-market from concept to market launch by approximately two years
38) The use of cookies ___________.
a. is one of the most controversial issues in EC
b. has not helped Internet marketers target their ads
c. is a widely used method for mass marketing
d. is being replaced by adware and spyware programs12 Final Examination BAM 570 E-Commerce Management
39) Two key factors limiting the use of personalization to more precisely target marketing efforts
to individual customers are ____________.
a. matching profiles with product offerings and delivering those offerings
b. communication costs and filtering costs
c. privacy and trust issues
d. lack of customer loyalty and service customization costs
40) Which of the following statement about Web mining is false?
a. Web mining refers to the use of data mining techniques for discovering and extracting
information from Web documents.
b. Web mining explores both Web content and Web usage.
c. Web mining uses customer data to infer or predict customer interest in other products
or services.
d. Usage analysis is derived from clickstream data.
41) What is the key problem that biometric marketing is intended to solve?
a. Knowing the identity of the actual shopper
b. Improving accuracy of the shopper's data
c. Increasing the speed of order processing
d. Creating a loyalty program
42) ________, such as concerts and videos, can generate tremendous public excitement and bring
huge crowds to a website.
a. Live Web events
b. Webcasting
c. Phone casting
d. Mobile casting
43) As the volume of customers, products, vendors, and information increases, it becomes
uneconomical or impossible for customers to consider all relevant information, and available
products/services. The practical solution to handling such information overload is _________.
a. to use permission marketing
b. to use software or intelligent agents
c. to increase the use of ad agencies
d. to design Web sites with minimal content
44) ________ can be supported more effectively and efficiently through direct buyer-seller
negotiations that are either offline or online, which can be done in private exchanges.
a. Strategic sourcing
b. Spot buying
c. B2C e-commerce
d. MRO Final Examination 13 BAM 570 E-Commerce Management
45) What are the two types of materials and supplies that are traded in B2B?
a. Digital and physical
b. Direct and indirect
c. Horizontal and vertical
d. Commodities and nonproduction
46) Nonproduction materials such as equipment and tools that support production are called
____________.
a. indirect materials
b. operational materials
c. direct materials
d. virtual materials
47) The major B2B service industries include each of the following except:
a. travel.
b. financial.
c. stock trading.
d. retail.
48) By using the Internet and automatic-response software agents, GE reduced the cost of
customer service calls from $5.00 per call when done by phone to ________ per electronically
answered call.
a. $2.50
b. $1.00
c. $0.20
d. $0.05
49) Companies use ________ to sell their unneeded assets for quick disposal or to dispose of
excess, obsolete and returned products.
a. private auctions
b. liquidation
c. reverse auctions
d. forward auctions
50) Benefits of e-procurement over traditional procurement methods include all of the following
except:
a. increasing the productivity of purchasing agents.
b. lowering purchase prices through product standardization, reverse auctions, volume
discounts, and consolidation of purchases.
c. increasing the skill requirements and training needs of purchasing agents.
d. streamlining invoice reconciliation and dispute resolution. 14 Final Examination BAM 570 E-Commerce Management
51) All of the following are true of dynamic pricing except:
a. anonymity often is a key ingredient.
b. buyers and sellers interact with bids and offers in real time.
c. e-malls are a prime example of this pricing model.
d. a deal is struck when there is an exact match between a buyer and a seller on price,
volume, and other variables, such as location or quality.
52) Denver Boards, a B2B manufacturer of snowboard equipment, can reach and target new retail
customers in order to grow its online business by __________.
a. hiring an affiliation service to drive traffic to its website
b. reviewing POS data
c. mining data
d. advertising in traditional media
53) The e-SCM process that includes integrated production and distribution processes is
____________.
a. supply chain replenishment
b. collaborative planning
c. e-procurement
d. e-logistics
54) When planning, designing and implementing integrated supply chain operations, management
requires a holistic focus that takes into account all of the following primary factors except:
a. strategy, structure, and people.
b. location and revenues.
c. IT and business processes.
d. culture, including performance measurement, monitoring, and incentives.
55) Which of the following about supply chain problems is not true?
a. Supply chains in military and business operations have been plagued with problems for
generations.
b. Supply chain problems have sometimes caused armies to lose wars and companies to
go out of business.
c. Supply chain problems are most apparent in complex supply chains.
d. Supply chain problems are lowest when many business partners are involved.
56) The last fifteen orders from a manufacturer to its suppliers range from $100,000 to
$8,750,000. This is an example of ___________.
a. the bullwhip effect
b. demand manipulation
c. supply inadequacy
d. order instability
57) Software that helps integrate different types of information systems among collaborating
companies is called __________.
a. middleware
b. browser technology
c. collaborative software
d. extranet technology
58) All of the following are types of communication and collaboration done in real time except:
a. blogging.
b. webinars.
c. instant messaging.
d. VoIP.
59) The Lotus Notes/Domino suite includes all of the following except:
a. instant video.
b. document management.
c. database.
d. communication support.
60) All of the following apply to instant video except:
a. It evolved from the spread of instant messaging and Internet telephony.
b. The idea is for a kind of video chat room that allows users to chat in real time and see
the people they are communicating with.
c. It is the natural result of wanting to link people via both voice and audio.
d.The highest quality approach is to add video cameras to the participants' computers.
61) An example of G2C is ____________.
a. an employee at the Chamber of Commerce gets local demographic data from a U.S.
census site.
b. a driver applies for and pays for the renewal of his auto tag online.
c. a road contractor uses the Internet to submit a closed bid on a paving contract.
d. a regional hospital conducts an online reverse auction for cleaning supplies.
62) All of the following are potential advantages of e-learning except:
a. college professors are anxious to develop new online courses.
b. knowledge retention is higher.
c. learning time is reduced.
d. it costs less to deliver education online than in a traditional classroom
63) One of the facilitators of e-learning is ________ technology such as wikipedia.org.
a. Web 2.0
b. Blackboard
c. WebCT
d. Macromedia
64) All of the following describe Second Life (SL) and SL Educators (SLED) except:
a. SLED sponsors meet-and-greet events in SL, helping real-life educators to connect with
each other.
b. Educators have been slow to embrace SL because of the complexity of its media-rich
features.
c. Students and educators can work together in SL from anywhere in the world as part of a
globally networked virtual classroom environment.
d. Using SL as a supplement to traditional classroom environments provides new
opportunities for enriching existing curricula.
65) More and more people are willing to pay for digital music, as shown by the success of
___________.
a. Napster
b. Kazaa
c. iTunes
d. P2P
66) The exclusive online publication of Stephen King's e-book Riding the Bullet ____________.
a. was a failure because the cost of the book was too high.
b. produced very few sales.
c. was an unqualified success and established electronic publishing as a legitimate
competitor for traditional publishers.
d. was disrupted by hackers who breached security, then distributed free copies of the
book.
67) A major purpose of an organizational knowledge base is to support and allow ____________.
a. knowledge sharing.
b. e-learning.
c. responsible blogging.
d. organizational capital.
68) Food Lion is a U.S. supermarket chain that relies on ________ to compete against Wal-Mart
and other stores.
a. low prices and vast selection
b. m-commerce technology for customer convenience
c. huge online selection and fast delivery
d. organic and unique gourmet foods
69) The development of m-commerce is being driven by all of the following technological,
business, social, and economic factors except:
a. the transition to a manufacturing economy.
b. the widespread availability of more powerful mobile devices.
c. the growth of a handset culture and mobile workforce.
d. the improved price/performance of mobile services.
70) As in e-commerce, m-commerce B2C applications are concentrated in each of the following
areas except:
a. retail shopping.
b. advertising.
c. telecommunications.
d. financial.
71) A ________ is suitable for mobile users who need to make very short-range device-to-device
wireless connections within a small space, such as a single room, and most commonly with
Bluetooth.
a. personal area network
b. local area network
c. wireless area network
d. Wi-Fi area network
72) The major enterprise mobile applications are all of the following except:
a. e-mail and cell phone contacts.
b. sales force automation.
c. field force automation.
d. research and development.
73) You are walking near a coffee shop and suddenly your cell phone beeps with a message:
"Come inside and get a free biscotti with any purchase." This is an example of ___________.
a. permission marketing.
b. location-based advertising.
c. customer relationship management.
d. m-commerce.
74) 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.
75) 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.
76) 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.
77) 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.
78) 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.
79) 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
80) For ________ companies, it may be even more important to change strategies quickly.
a. traditional
b. pure play
c. service
d. retail
81) Projections of the business, technological, political, economic, and other environments are
called __________.
a. forecasts
b. SWOT analysis
c. competitive intelligence
d. value propositions
82) A specific outcome of the strategy initiation phase is the ________, which includes the
vision, mission, value proposition, goals, capabilities, constraints, strengths, and weaknesses
of the company.
a. company analysis
b. value proposition
c. core competency
d. functional strategy
83) After four years in business, a magazine publisher decides to add the online distribution of its
magazine to its existing traditional publishing business. The company would need to
develop a __________.
a. business strategy.
b. business plan.
c. business case.
d. business metric.
84) The ________ pricing strategy means adding up all the costs involved, such as material, labor,
rent, overhead, and so forth, and adding a percentage mark-up as profit.
a. cost-plus
b. competitor model
c. revenue markup
d. price percentage
85) With the balanced scorecard approach, the term balance arises because the combined set of
measures is supposed to encompass indicators that are all of the following except:
a. core and non-core.
b. financial and nonfinancial.
c. leading and lagging.
d. quantitative and qualitative.
86) Not all EC investments need to be formally justified. All of the following are cases where
formal evaluation may not be needed except:
a. when the value of the investment is relatively small for the organization.
b. when competitors have made that type of investment.
c. when the relevant data are not available, are inaccurate, or are too volatile.
d. when the EC project is mandated and must be done regardless of the costs and
benefits.
87) Metrics are used to describe all of the following except:
a. standards.
b. costs.
c. benefits.
d. the ratio of costs to benefits.
88) In B2C, an example of a tangible EC metric from the buyer's perspective is ____________.
a. ease of use of EC
b. convenience in purchasing
c. profit per customer
d. cost/price of the product
89) Transaction costs include all of the following except:
a. production costs incurred for labor and overhead.
b. search costs incurred by buyers and sellers in locating each other and specific products
and services.
c. negotiation costs that result from meetings, communication-related expenses,
exchanges of technical data or brochures, entertainment, and legal costs.
d. monitoring costs incurred when buyers and sellers make sure that the exchange
proceeds according to the terms under which the sale was made.
90) McAfee allows users of its VirusScan virus-detection software to automatically update the
latest security patches online. This is an example of ________ to attract customers who value
this automatic update.
a. competitive advantage
b. core competency
c. product or service differentiation
d. agility
91) ________ is money invested in a business by an individual or a group of individuals in
exchange for equity in the business.
a. Venture capital
b. Operating capital
c. Start-up funding
d. Advancement
92) A ________ site is an exact duplicate of the original Website physically located on a Web
server on another continent.
a. backup
b. mirror
c. download
d. hot
93) The Web hosting option under which the business acquires the hardware, software, staff, and
dedicated telecommunications services needed to host a Website is called ___________.
a. self-hosting
b. mirror hosting
c. using a storebuilder
d. ISP hosting
94) Creating content that offers upgraded or more expensive versions of the product is called
___________.
a. up-selling
b. comment
c. cross-selling
d. promotion
95) ________ offers one of the most popular storefront packages with three levels of merchant
solutions: starter, standard, and professional.
a. Google
b. Amazon.com
c. eBay
d. Yahoo!
96) Which of the following is a major property right relevant to EC and websites?
a. Control of the use of the property
b. The right to any benefit from the property
c. The right to exclude others from the property
d. All are major property rights.
97) Which of the following is true about the scope of business ethics?
a. The scope of business ethics has expanded to encompass the nature and quality
of the relationships with shareholders, customers, business partners, suppliers,
the community, environment, and future generations.
b. The scope of business ethics has been limited to a company's actions with regard to
how it treats employees and obeys laws.
c. The scope of business ethics has not changed because laws have not changed.
d. The scope of business ethics has not changed even though laws have expanded.
98) Corporate Web policy guidelines include all of the following except:
a. issue word-of-mouth acceptable use policies (AUP).
b. make it clear to employees that they cannot use copyrighted or trademarked material
without permission.
c. post disclaimers concerning content.
d. have attorneys with cyber law expertise review Web content.Final Examination 23 BAM 570 E-Commerce Management
99) Companies can improve their responsibility as custodians of customers' personal data by
implementing ___________.
a. opt-in and opt-out information practices.
b. AUP.
c. e-mail monitoring.
d. firewalls.
100) EC sellers need to protect against fraud and each of the following except:
a. public keys.
b. customers who deny that they placed an order.
c. customers who give false credit card or bad check information in payment for products
and services provided.
d. use of their name by imposter sellers.