Professional Documents
Culture Documents
3.1 True/False
3) Sales of goods on the Internet are no longer increasing rapidly because of the
bankruptcy of numerous dot-coms.
Answer: FALSE
Diff: 2
4) As the number of Internet users reaches saturation, the challenge for e-retailers
now is to increase the amount that shoppers spend online.
Answer: TRUE
Diff: 3
7) When new capabilities are required to conduct EC, for example capabilities in
logistics and distribution, one method is to obtain them through external strategic
alliances.
Answer: TRUE
Diff: 1
8) With all else being equal in the online environment, goods that are relatively
expensive or frequently purchased are expected to have higher sales volumes than
goods that are inexpensive or infrequently purchased.
Answer: FALSE
Diff: 3
Diff: 2
10) Direct marketing describes marketing that takes place over the Internet involving
wholesalers and retailers.
Answer: FALSE
Diff: 2
13) Types of online malls include referring directories and event shopping malls.
Answer: FALSE
Diff: 2
14) Viral marketing, market makers, and information portals are types of B2C
business models.
Answer: TRUE
Diff: 2
16) Private shopping clubs and group gifting online are two variations of the
personalized event shopping model.
Answer: TRUE
Diff: 1
17) Competition among online travel e-tailers is fierce, with low margins, little
customer loyalty, and increasing commoditization of products and services.
Answer: TRUE
Diff: 3
18) WAYN is a social networking Web site with a goal of uniting college student
travelers from North America.
Answer: FALSE
Diff: 3
19) When compared to the traditional job market, the online job market has low
reliability.
Answer: FALSE
Diff: 2
20) The electronic job market creates high turnover costs for employers by facilitating
employees movement to better jobs.
Answer: TRUE
Diff: 2
21) Assessing their market value is an advantage of the electronic job market for
employers.
Answer: FALSE
Diff: 2
22) Many insurance companies use a dual strategy, keeping human agents but also
selling online.
Answer: TRUE
Diff: 2
24) Virtual banks have a brick-and-mortar location and also conduct online
transactions.
Answer: FALSE
Diff: 1
25) Online banking and other financial services are growing slowly on the Internet
because many customers are not yet embracing it.
Answer: FALSE
Diff: 2
26) Electronic banking refers to the various banking activities conducted from home
or the road using an Internet connection.
Answer: TRUE
Diff: 1
27) Only a few pure-play virtual banks failed by 2003 due to lack of financial viability.
Answer: FALSE
Diff: 2
28) Both online banks and click-and-mortar banks carry some risks and problems,
especially in international banking, including hackers and liquidity risk.
Answer: TRUE
Diff: 2
29) An on-demand delivery service is express delivery made fairly quickly after an
online order is received.
Answer: TRUE
Diff: 1
30) The direct sale of digital content through digital download allows a producer of
digital content to bypass the traditional retail channel, thereby reducing overall costs
and capturing greater profits.
Answer: TRUE
Diff: 2
31) As a paid content category, dating services are the largest attractor of Internet
users.
Answer: FALSE
Diff: 2
34) Channel conflict occurs when the addition of an online distribution channel
causes problems with existing distribution channels.
Answer: TRUE
Diff: 2
Answer: A
Diff: 1
6) 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.
Answer: A
Diff: 2
A) finding products and services that are not available in local stores.
B) buying in groups.
C) shopping globally.
D) all of the above.
Answer: D
Diff: 1
11) The B2C business model used by QVC, Sharper Image, and Lands End is
A) direct marketing by mail-order companies.
B) direct sales by manufacturers.
C) pure-play e-tailers.
D) click-and-mortar retailers.
Answer: A
Diff: 3
12) Based on distribution channel used, which of the following is not a B2C model
classification?
A) pure-play e-tailers
B) click-and-mortar retailers
C) Internet malls
D) online medical diagnostic center
Answer: D
Diff: 3
13) Based on distribution channel used, Dells B2C business model can be classified
as a
A) direct marketing by mail-order company.
B) pure-play e-tailer.
C) click-and-mortar retailer.
D) direct sales by manufacturer.
Answer: D
Diff: 3
15) Marketing done online between any seller and buyer best defines
A) personalization.
B) direct marketing.
C) target marketing.
D) multichannel marketing.
Answer: B
Diff: 2
16) The competitive advantages of a pull vehicle distribution process include each
of the following except
A) improved customer satisfaction and better pricing.
B) large cost savings in finished vehicle inventory carrying costs.
17) Firms that sell directly to consumers over the Internet without maintaining a
physical sales channel describes
A) click-and-mortar stores.
B) viral marketers.
C) virtual e-tailers.
D) social network.
Answer: C
Diff: 2
19) An online seller of travel services that generates revenue by charging fees for its
services is an example of a
A) market maker.
B) transaction broker.
C) content disseminator.
D) viral marketer.
Answer: B
Diff: 2
Answer: A
Diff: 2
23) A B2C model in which sales are done to meet the needs of special events
describes
A) anniversary shopping.
B) time-based shopping.
C) event shopping.
D) choreographed shopping.
Answer: C
Diff: 2
B) location-based e-commerce
C) private shopping clubs
D) private auctions
Answer: D
Diff: 2
25) A members-only shopping club, where members can buy goods at large
discounts describes
A) specialty club.
B) membership-based club.
C) exclusive club.
D) private shopping club.
Answer: D
Diff: 2
27) Each of the following is a revenue model for online independent travel
agents except
A) contract negotiators.
B) direct revenues from commissions.
C) subscription or membership fees.
D) revenue sharing fees.
Answer: A
Diff: 3
30) Compared to the traditional job market, the online job market
A) has a shorter life cycle.
B) is usually specialized and local in scope.
C) tends to be less reliable.
D) tends to be much less expensive.
Answer: D
Diff: 2
31) Advantages of the electronic job market for job seekers include
A) accessing newsgroups that are dedicated to finding jobs.
B) reducing application-processing costs by using electronic application forms.
C) conducting interviews online.
D) viewing salary surveys for recruiting strategies.
Answer: A
Diff: 3
35) Security for online bank transactions includes each of the following except
A) firewalls.
B) SSL encryption.
C) virtual biometrics.
D) digital certificates.
Answer: C
Diff: 2
37) Software tools that scout the Web on behalf of consumers who specify search
criteria are
A) shopping portals.
B) shopbots.
C) shopping browsers.
40) The effect upon sales of consumers receiving a referral or recommendation from
other consumers defines
A) location-based economy.
B) referral economy.
C) regional economy.
D) viral marketing.
Answer: B
Diff: 2
41) A search engine whose mission is to help people find local qualified services
ranging from mechanics to restaurants to hairstylists describes
A) Freddys List.
B) Pricescan.com.
C) Yelp.
D) Local.com.
Answer: C
Diff: 2
42) The removal of organizations or business process layers responsible for certain
intermediary steps in a given supply chain describes
A) reintermediation.
B) extraction.
C) relocation.
D) disintermediation.
Answer: D
Diff: 3
43) The process whereby intermediaries take on new intermediary roles defines
A) reintermediation.
B) seller reassignment.
C) relocation.
D) disintermediation.
Answer: A
Diff: 2
44) The situation in which an online marketing channel upsets the traditional
channels due to real or perceived damage from competition defines
A) disintermediation.
B) channel conflict.
C) distributor reassignment.
D) partner disassociation.
Answer: B
Diff: 3
45) A traditional brick-and-mortar store with a mature website that uses a successful
click-and-mortar strategy is able to
A) give customers the opportunity to perform various functions interactively at any
time.
B) link all of its back-end systems to create an integrated customer experience.
3.3 Essay
3) What are virtual (pure play) e-tailers? Give an example. List one advantage and
one disadvantage of this business model.
Answer: Virtual (pure-play) e-tailers are firms that sell directly to consumers over the
Internet without maintaining a physical sales channel. Amazon.com is a prime
example of this type of e-tailer. Virtual e-tailers have the advantage of low overhead
costs and streamlined processes. One disadvantage is a lack of established
infrastructure or back office to support the online front-office activities.
Diff: 2
4) Why are trust verification sites important to e-tailers and other online sellers? List
two verification sites. What is their function?
Answer: With so many sellers online, many consumers are not sure whom they can
trust. Several companies evaluate and verify the trustworthiness of various e-tailers.
One such company is TRUSTe. The TRUSTe seal appears at the bottom of each
TRUSTe-approved e-tailers Web site. E-tailers pay TRUSTe for use of the seal or
trustmark. Two trust verification sites are VeriSign and BBBOnline. TRUSTes
members hope that consumers will see the seal as an assurance of their ethical
conduct, privacy policy, and personal information protection.
Diff: 2