Chapter 1 Overview of Electronic Commerce

1-According to Peter Drucker, e-commerce is profoundly changing markets, industry structures, products and services, consumer segmentation, consumer values and consumer behavior; jobs, and labor markets. True False

2-By purchasing a textbook from and having the merchandise physically delivered, would be considered a click-and-mortar organization because pure EC did not occur. True False

3-In the field, a sales representative writes notes with a mobile handwriting-recognition computer immediately after a sales call. This can be viewed as an EC activity. True False

4-In addition to EC being conducted via the Internet, EC can be conducted over local area networks (LANs). True False

5-An example of business-to-consumer (B2C) is when Dell provides customer service online by collaborating electronically with its partners. True False

6-An internal corporate network that uses Internet tools, such as Web browsers, is known as an intranet. True False

7-An extranet is a network that uses the Internet to link together multiple intranets. True False

8-Purchasing a Dell computer online for use at home is an example of e-tailing. True False

9-Networked computing connects multiple computers and other electronic devices that are located in various locations by telecommunications networks, including wireless ones. True False

10-When Dell purchases Godiva chocolates as gifts for its employees and has Godiva mail them directly to the recipient Dell is engaged in B2B2C. True False

11-Peer-to-peer (P2P) technology can be used in C2C, B2B, and B2C. True False

12-The final participants in B2B transactions are consumers. True False

13-Doing your banking on an Internet-enabled cell phone is an example of m-commerce. True False

14-Despite the many e-tailing EC companies that have failed in the past, the dot-com failure rate has recently declined sharply. True False

15-Since 2001, no other company has had more of an impact on EC than MySpace. True False, a Web site that allows people to work together online and share information, is an example of Web 2.0. True False

17-The digital economy refers to an economy based on digital communication networks, computers, software, and other related information technologies that provide a global platform over which people and organizations interact, communicate, collaborate, and search for information. True False

18-Economic, legal, societal, and technological factors have created a highly competitive business environment in which customers are becoming less powerful. True False

19-Strong competition and increased power of consumers are two of the major market pressures in today's business environment. True False

20-Business models are a subset of a business plan or business case and refer to methods of doing business by which a company can generate revenue. True False

21-A business model outlines how the organization or the EC project will generate revenue through sales, transaction fees, advertising fees, affiliate fees, or other revenue sources. True False

22-A value proposition refers to the tangible and intangible benefits that a company can derive from using EC making it an important part of the marketing plan. True False

collaborating with business partners. servicing of customers. rapid business build-to-order which allows growth and customers to configure their threatening own customized systems. the business process. and blogging.23-Affiliate marketing is an EC business model of word-of-mouth marketing in which customers promote a product or service to friends or other people. e-mail. . the payment method. True False 25-Many companies used a corporate portal. the agent. the delivery method. True False 26-Dell's cornerstone business model is based on the concept of: selling directly to small and medium sized businesses. the process. the collaboration. are Web sites that connect people with specific interests by providing free services such as photo sharing. the marketing channel. Partial EC E-business Pure EC E-commerce 28-EC can take several forms depending on the degree of digitization of the following three dimensions: the product or service sold. method. YouTube. e-collaboration with a few select business partners. and the delivery method. and partners to reach corporate information and communicate with the company. such as Facebook. employees. and MySpace. 27-________ refers to the buying and selling of goods and services. and the and the production collaboration method. and the transaction. which is a gateway for customers. True False 24-Social networks. competitors. and conducting electronic transactions within an organization.

and for financial transactions is ________. value-added networks. 31-________ are systems where only routine transaction processing and information flow take place between two or more organizations using a standard protocol. or on and extranets. whereas companies that are engaged only in EC are considered ________ companies. the Internet and private networks. private networks. the Internet. click-and-brick brick-and-mortar. pure play click-and-mortar. Exchange-to-exchange Electronic data interchange Electronic funds transfer Peer-to-peer . Intrabusiness EC E-CRM Interorganizational information systems B2B 32-A business such as Apple Computers making online transactions with its trading partners is an example of: e-CRM EDI B2B B2C 33-EC applications are supported by infrastructure and by each of the following support areas EXCEPT: People Marketing and advertisement Mobile devices Public policy 34-Intrabusiness EC is usually performed over intranets and/or ________.29-Purely physical companies are referred to as ________ companies. virtual pure play. P2P networks exchanges mobile networks corporate portals 35-A technology that is used to electronically transfer routine documents. such as electronic data interchange (EDI). virtual 30-The ways in which EC is done include: the Internet. such as invoices and purchase orders. and local area networks using intranets. virtual. on the Internet extranets. a single computerized machine.

core competencies and critical response activities missions and strategies EC and IT markets and government . making fewer unable to react quickly decisions and/or enough to threats and decisions less opportunities.0 Media Web 39-Which of the following is not a characteristic of the Digital Revolution? A high rate of obsolescence. 38-________ refers to the second-generation of Internet-based services that let people collaborate and share information online in new ways. especially e-tailing and B2B ones. organizations are considering less information when making decisions. Virtual Web Social Web Web 2. 41-According to the Business Environment Impact Model. ________ provide support to organizations' activities and to actual performance. 40-Because the rate of change and the level of uncertainty are expected to accelerate. and with fewer resources. countering business pressures. frequently. such as Google. initial demand. failed from 1999 to 2005 for each of the following reasons EXCEPT: The companies failed to ensure The companies The companies had they had sufficient inventory and lacked financial little marketing a distribution setup to meet skills. Many business processes are expedited by up to 50 percent. via the Internet.36-Challenges that Boeing faced with its global collaboration for the design and assembly process of its new Dreamliner passenger plane included each of the following EXCEPT: Information security Lag time Teams working across various time zones Data management 37-A large number of EC companies. The companies failed to register with search engines. experience. operating under increasing pressures to produce more products. faster. Intelligent search agents to Fraud and other help manage information cybercons carried out overload. such as social networks and wikis.

transaction fees affiliate fees subscription fees advertising fees 45-Large private organizational buyers and government agencies make large-volume or large-value purchases through ________.42-A ________ is a company's method of doing business to generate revenue to sustain itself. marketing strategy business model business plan value chain 43-According to the ________ revenue model. name-your-own-price models viral marketing online direct marketing electronic tendering systems 46-According to the ________ model. to receive some type of service. also known as reverse auctions. affiliate fees advertising fees subscription fees transaction fees 44-According to the ________ revenue model. usually monthly. companies receive commissions for referring customers to others' EC Web sites. an organization can increase brand awareness or even generate sales by Web-based word-of-mouth marketing or promoting a product or service to other people. electronic tendering systems viral marketing name-your-own-price models online direct marketing 47-Online group purchasing organizations are known as: e-co-ops SMEs exchanges barters 48-Major barriers to EC include all of the following EXCEPT: implementation difficulties lack of technology lack of potential customers cost 49-Which of the following is a technological limitation of EC? . customers page a fixed amount.

which is a gateway for customers. and data to ________ that define the business and ultimately deliver value to customers and end users. and partners to reach corporate information and to communicate with the company. and legal requirements of largeissues. This is an example of: G2G E2E. Order fulfillment public policy. transforming revenue models developing models organizing supply chains orchestrating the services and workflows 55-Many companies employ a(n) ________. Collaborative Commerce 52-A corporation uses the Internal Revenue Service's Web site to learn how to pay its estimated quarterly income taxes. employees. An example of this is: mp3. scale B2C. 50-A job opening in the Sales Department posted on the company's Intranet by the Human Resources Department is an example of: B2E B2S E2C B2B 51-Boeing designing a product together with a business partner is this type of interaction: B2B2C Nonbusiness EC B2B.Difficulty Security and privacy obtaining venture concerns that deter capital. corporate portal intranet social network extranet Chapter 2 E-Marketplaces . customers from buying. Unresolved taxation.0. G2C G2B 53-The second-generation of Internet-based services that lets people collaborate and share information online is known as Web 2. DoubleClick Evite blogging 54-The digital enterprise shifts the focus from managing individual information resources such as devices.

True False 5-In marketing. and delivery. Internet malls. inventory management. but its core business is being an e-intermediary.S. Intermediaries of all kinds offer their services on the Web. the marketspace also can sell digital products. an intermediary is a third party that operates between sellers and consumer portal. packaging. purchasing from suppliers. which is the largest U. is known mainly for its webmd. True False 2-The emergence of electronic marketplaces has resulted in lower information search costs for buyers and lower transaction and distribution costs for sellers. True False 4-Front end refers to the activities that support online order fulfillment. True False . medical services company. payment processing. True False 6-WebMD. True False 7-The major B2B e-marketplaces are electronic storefronts. True False 3-Although both marketplaces and marketspaces can sell physical products.1-The functions and efficiency of an e-market are the same as that of a physical marketplace. and exchanges. which are goods that can be transformed to digital format and delivered instantly over the Internet.

such as Google's desktop. True False .8-A portal is an information gateway that attempts to address information overload by enabling people to search and access relevant information from disparate IT systems and the Internet. True False 10-Travelers using airline Web sites to book their flights directly without the use of travel agents is resulting in the reintermediation of travel agents. using advanced search and indexing techniques. True False 11-Search engines not only "search and match. but a shopping cart for B2C may be more complex. True False 13-Shopping carts for B2B are fairly simple. True False 14-An auction is a competitive process and market mechanism that uses a competitive process by which a seller solicits consecutive bids from buyers or a buyer solicits bids from sellers. True False 12-An electronic shopping cart is an order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop. True False 9-Intermediaries are human or electronic agents that play an important role in EC by providing value-added services such as making payment arrangements to buyers and sellers." but also have capabilities that can be used to perform routine tasks that require intelligence.

True False 21-Due to the lack of hurdles. and labor cannot be bartered. and the lowest bid wins. storage. with the price reducing sequentially. True False 17-E-auctions are becoming less important selling and buying channels for companies and individuals. idle facilities. but rather are allowed to fluctuate as market supply and demand change. factory space.15-Negotiation and bargaining are two types of auctions where prices are not fixed. then potential suppliers bid on the job. True False 16-Reverse auctions are bidding or tendering systems in which the buyer places an item for bid on a request for quote (RFQ) system. True False . risk of fraud. and a limited pool of participants. the adoption and growth of m-commerce has been widespread. True False 18-The major limitations of e-auctions are insufficient security. True False 19-A limitation of e-bartering for businesses is that excess capacity items such as office space. True False 20-Online negotiation can be facilitated by computer technology for the negotiation process and software agents for searches and comparisons.

such as toys and CDs. such as a legal and buyers and materials into regulatory framework that sellers. it would be a mistake to draw general conclusions about the impact of the Internet on long-term industry profitability. True False 25-Because of intense competition on the Web.22-The Internet economy's low barriers to entry are both an opportunity and a threat to businesses. True False 26-Fundamentally. True False 24-Because the strength of each of Porter's five forces varies considerably from industry to industry. and payments associated with market transactions. enables the efficient functioning of the market. services. the success of the pure-play jewelry e-tailer Blue Nile was due to the company's use of Internet technologies to: offer lower prices than competitors eliminate intermediaries go public provide quality ratings 27-Traditional and electronic markets have three main had done when it had few online competitors. finished products. new companies cannot establish good corporate images quickly as Amazon. which suggests that a company needs to use innovative strategies to survive and prosper in the Internet economy. which include each of the following EXCEPT: providing an institutional matching transforming raw infrastructure. goods. 28-Digital products have different cost curves than those of regular products because: . True False 23-Strong competition for commodity-type products. was a major contributor to the collapse of many dot-com companies. facilitating the exchange of information.

variable costs are high. low. accounting and finance. most of in digitization. inventory management. and a payment gateway is referred to as the ________ of the business. 29-The portion of an e-seller's business processes through which customers interact. and of the costs are the costs are variable the costs are fixed. The most common mechanisms include each of the following EXCEPT: a search engine an electronic catalog. and fixed costs are low. most of the costs are fixed. B2C B2B2C B2B C2B 32-An electronic storefront includes several mechanisms that are necessary for conducting the sale. electronic catalogs. front end back end intermediary infrastructure 31-The major ________ e-marketplaces are storefronts and Internet malls. a shopping cart. but variable costs are very variable. front end infrastructure intermediary back end 30-All the activities that are related to order aggregation and fulfillment. a supply chain a payment gateway 33-________ are online markets owned and operated by a single company and may be either sell-side or buy-side. payment processing. Commercial portals Private e-marketplaces B2B marketplaces E-malls 34-A(n) ________ is a single point of access through a Web browser to help users find relevant and accurate business information and reduce information overload. a search engine. intermediary browser search engine information portal . most of in digitization. all in digitization. packaging. and delivery are done in what is termed the ________ of the business. including the seller's portal. purchasing from suppliers. insurance.

such as travel and insurance agents. the seller's ID numbers. metamediary. pre-shopping dynamic pricing commodity pricing negotiation 40-Although used occasionally in B2C commerce. reflecting discounts business customers. contract risk. is referred to as: remediation automation e-distribution disintermediation 39-A mode is purchasing where prices are negotiated or discounted is ________. 38-The elimination of various types of agents that mediate between buyers and sellers. such as those in auctions or stock markets. virtual mall. search agent. product distribution. in same item to different particular. . browsers.35-Finding relevant and accurate information is often time-consuming and requires access to multiple systems causing organizations to lose a lot of productive employee time. 37-Human or electronic intermediaries attempt to address each of the following limitations of direct interaction EXCEPT: lack of privacy for those wanting to remain anonymous. employees in a specific model. large e-catalogs need a(n) ________. or SKU organization are number rather than allowed to purchase. 36-A type of broker that helps consumers compare different stores is a: shopping facilitator. can deliver customized customers at different catalogs to different prices. search costs. E-catalogs can be customized to show the Intranets. 41-To be successful and useful. One solution to this problem is the use of: intermediaries. portals. or purchase-contract agreements. intranets. customized catalogs are especially useful in B2B e-commerce for each of the following reasons EXCEPT: e-catalogs can show e-catalogs can show the buyer's ID only the items that the number for the item. which refers to nonfixed prices.

forward auctions double auction. forward engine data mining technology enhanced viewing capability directory 42-A ________ has capabilities that can be used to perform routine tasks that require intelligence such as providing customers with assistance based on their movements on a Web site. Wireless security It improves the Wireless telecom . Convenience since the bidding can High stickiness to The optimal price is the Web site. bidding system. reverse auctions. 46-An auction in which there is one buyer and many potential sellers. 48-Organizations are embracing mobilized computing technologies for several reasons EXCEPT: The prices of notebook computers. or in which a buyer places an item for bid on an RFQ system and the lowest bid wins is referred to as all of the following EXCEPT: tendering system. determined by the market. merchant server e-fulfillment agent electronic shopping cart intelligent agent 45-The most common and traditional form of auctions in which one seller entertains bids from many buyers is referred to as: e-auctions. reverse auctions. 47-What is a benefit of e-auctions to sellers? Anonymity. intelligent engine search engine software engine software agent 43-Popular search engines include all of the following EXCEPT: Google Lycos AltaVista MSN 44-A(n) ________ is an order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop. occur anywhere and any time.

. sellers. Setting up a Web site is relatively easy and inexpensive. 50-Which of the following statements about differentiation and personalization is not correct? Consumers like differentiation and personalization and are frequently willing to pay more for them. proprietary.g. models. A flood of new entrants has come into many industries because of reduced barriers to entry. frequently to zero. Products must be differentiated for perfect competition. problems have been productivity of workers in the solved with field. 53-Impacts of e-marketplaces on B2C direct marketing include all of the following EXCEPT: The existence of eEC enables Brand images The administrative work . digital products and services networks industries differentiated products and services 52-The Internet has influenced industry structures in each of the following ways EXCEPT: Increases differences Industries are among competitors whose more efficient offerings are kept overall. 49-EC competition is very intense because online transactions enable each of the following EXCEPT: Higher prices because of a greater number of potential buyers. benefiting sellers who use this strategy. personalization. and doing so reduces the need for a sales force and brick-and-mortar stores. and smart phones continue to fall and their capabilities continue to increase. For buyer. There has been a shift in bargaining and buyer power to end users. 51-It can be said that competition between companies is being replaced by competition between ________. support for mobility is growing quickly. e. e-markets reduce the cost of Product or service searching for product differentiation and information. prices.wireless handhelds. Price cutting in differentiated markets does not impact market share very much: Differentiation reduces the substitutability between products. encryption.

despite the failure of many dot-com companies. especially across international borders. . for new companies have become more difficult to establish. True False 2-A retailer is a sales intermediary. logistics chain customized chain hub-based chain support chain 55-________ provides customers with exactly what they want. when and where they want it. cutting the cycle time by more than 90 percent. can be reduced significantly. Effective communication between the supply chain and the factory floor is needed to make it happen Build-to-order manufacturing Demand-driven manufacturing Real-time manufacturing Virtual manufacturing Chapter 3 Retailing in Electronic Commerce 1-The amount and percentage of goods and services sold on the Internet is increasing rapidly. True False 3-Consumer electronics. related to physical delivery. which is changing marketing and sales activities both in B2C and in B2B. but could be one of the top sellers on the Internet in the near future. 54-One of the major benefits of e-markets is the improvement in supply chains with the creation of a(n) ________. a seller that operates between manufacturers and customers. True False 4-Jewelry sales over the Internet is just beginning. are the largest category of online retail. customization of products and services. including cell phone sales.marketplaces has increased the promotion of products and services through direct marketing.

True False . with approximately one-third of online shoppers reporting that they used the Internet to research and influence their offline shopping choices. True False 6-Evidence indicates that the basic principles that apply to retail success do not apply to etail success. coupled with excellent service. True False 10-Direct marketing describes marketing that takes place offline between manufacturers and retailers. True False 7-Offering quality merchandise at good prices. True False 9-A business model is an analysis of the organization's customers and. True False 8-Goods with the following characteristic guarantee provided by highly reliable or wellknown vendors are expected to facilitate higher sales volumes. and crosschannel coordination and integration in which customers can almost seamlessly operate between the online and physical environments of a business are also important elements in successful e-tailing.True False 5-Offline transactions are somewhat influenced by research conducted online. from that. a discussion of how that organization will achieve profitability and sustainability by delivering goods and services to those customers.

True False 17-The job market is characterized by high volatility and unbalanced supply and demand. True False . lead-generation payments. revenue from advertising. and by mobile devices. True False 14-In today's digital economy. such as lower overhead costs. True False 12-Specialized businesses operate in a very narrow market and would find it difficult to survive in the physical world because they would not have enough customers or could not hold the variety of stock. True False 13-All click-and-mortar retailers started life as a traditional storefront with a physical retail presence only and over time adopted an online transactional capability as well (brick only to brick-and-click). over the Internet through interactive Web sites. subscription or membership fees. consultancy fees. click-and-mortar retailers sell via stores. True False 16-Online travel services have high margins because of their multiple revenue models including commissions. it has many drawbacks and barriers so the winners in many market segments will be companies that use the click-and-mortar approach. True False 15-Although there are practical advantages to being an e-tailer. through voice phone calls to human operators.11-Virtual or pure-play e-tailers are firms that sell directly to consumers over the Internet without maintaining a physical sales channel. and revenue-sharing fees.

True False . online banking offers a cheap alternative to branch banking as well as a chance to enlist customers in remote areas. by adding online distribution of standard products to their traditional agency distribution system. True False 21-Egghead. True False 19-Many insurers are using a dual distribution strategy.18-In general. online real estate is replacing existing real estate agents in most markets. True False 24-Cybermediation occurs at Web sites that use intelligent agents to facilitate intermediation. the information and service received is consistent. True False 23-Investors in e-tailers which report small losses on each unit sold should not be concerned because the huge volume of business available online should more than offset these small marginal losses. a company must make sure that whether a customer establishes contact through face-to-face encounters with store personnel or through the Web page. True False 20-From a bank's perspective. True False 22-In implementing a successful click-and-mortar realized a substantial reduction in operating costs and inventory costs by eliminating its brick-and-mortar stores and becoming a pure-play in e-commerce.

driven largely by product diversification and its international presence. users age 14 and over two in five Internet users age 30 and over 28-All of the following categories have already been selling well online EXCEPT: pet supplies computer hardware and software travel new cars 29-Important trends in B2C EC include all of the following EXCEPT: many offline transactions online advertising are now heavily will increasingly influenced by research use rich media. Digitized format. Amazon. Amazon. True False 26-Amazon.25-Channel conflict occurs when adding an online distribution channel causes problems with existing distribution channels. conducted online. rapidly. 30-With all else being equal in the online environment. the use of cell the Internet will influence phones to shop approximately 25 percent online is increasing of all retail sales by experienced all of the following EXCEPT: Despite increasing a sales and net profits. approximately ________ shop online and/or research offline-sales online. 27-According to data from eMarketer. goods with any of the following product characteristics are expected to facilitate greater online sales EXCEPT: Relatively expensive maintained its position as the number one etailer in 2006. The company's financial success has been have trended upward. three in four Internet users age 25 and over two in five Internet three in four Internet users age 18 and over. Frequently purchased items. attributed to huge spending on further developing its technology infrastructure and its investment in the Amazon Prime discount shipping program. in percentage terms. Amazon has seen a drop in profitability in 2006. High brand recognition. .

intermediary. a shared service mall strategy. 35-An online seller of travel services that generates revenue by charging fees for its services is an example of a(n): market maker. content disseminator. viral marketer. content disseminator. a brick-and-mortar strategy. 37-A company that creates and manages many-to-many markets is called a: transaction broker. market maker. Federal Express is an example of a(n): viral marketer. service provider. viral marketer. a click-and-mortar strategy. pure-play e-tailing e-malls. . transaction broker. manufacturer. transaction broker. a brick-and-mortar strategy. electronic distributors must be used. content disseminator. content disseminator. malls only. disintermediation 32-Dell's strategy is best described as: a click-and-mortar strategy. 36-A marketer that uses e-mail to advertise to potential customers is called a: viral marketer. 34-In direct marketing: sales are customers are contacted directly shipments are made directly from the seller to made in without the help of the customer.31-Marketing that takes place without the help of intermediaries is called: direct marketing. 38-In an e-market. intermediaries. direct marketing from a manufacturer. market maker. 33-Sears marketing strategy would best be described as: a shared service mall direct marketing from a strategy.

advertising fees. . 40-Which of the following is true of virtual banks? Stringent regulations have eliminated fraud risk in virtual banks. 41-________ are customers who are willing to shop online because they dislike going to grocery stores. Internet gaming. 45-________ are gateways to storefronts and e-malls. Time-starved customers Leading edgers New technologists Shopping avoiders 43-________ are those who are young and comfortable with technology. transaction fees. branch banking services. Virtual banks have Virtual banks combine proven very successful online and traditional and profitable. fantasy sports games. subscription fees. Shopping portals. Shopping portals Shopping browsers Intelligent search engines Shopbots 46-Software tools that scout the Web for stores that sell similar items at low prices are called: Shopbots. Virtual banks have no physical location. Shopping avoiders Leading edgers New technologists Time-starved customers 44-All of the following are examples of interactive entertainment EXCEPT: adult sites purchasing theatre tickets online. Shopping browsers. Time-starved customers New technologists Shopping avoiders Leading edgers 42-________ are extremely busy customers willing to shop online in order to free up time.39-All of the following are potential sources of revenue for online independent travel agents EXCEPT: direct marketing revenues. Intelligent search engines.

a B2B exchange. an intermediary. the sponsorship model. for all customers. This is an example of: an escrow service. 52-The original click-and-mortar strategy used by Toys R Us failed. a learning agent. a verification. reintermediation. a trustmark. a real-time agent. empower customers. 49-Charles wants to buy a John Lennon lithograph over the Internet.47-________ are sites that evaluate and verify the trustworthiness of e-tailers Shopping portals Trust verification sites Business rating sites. a warranty. Afterwards. as did the original toy venture of Amazon. The auction site through which he purchases the painting agrees to hold his money until he tells them to release it to the seller. 53-DeFreshFish has been in business for ten years selling custom fishing lures to local fishermen through its store in a shopping mall. 51-A traditional brick-and-mortar store with a mature Web site uses a click-and-mortar strategy to do all of the following EXCEPT: speak with one leverage each channel's advantages voice. 50-A software agent that surveys user's reading an alliance of a pure-player with a traditional This is an example of: disintermediation. Toys R Us sold toys online through Amazon. The company's owners are considering opening a Web site and selling their products internationally. Shopbot sites 48-The TRUSTe seal is an example of: a business rating. but he is unwilling to pay for it until he inspects it to ascertain authenticity. then uses machine learning to find new Web pages and news articles using neural-network-based collaborative filtering technology is called: an aggregator portal. a trustmark. One new risk they will face in going from a brick-and-mortar strategy to a click-and-mortar strategy is: . reduce refunds and exchanges. channel conflict.

True False . 54-The single factor that will determine which intermediaries continue to exist and which are replaced is: the length of the relationship between the intermediary and its customers the ability of the intermediary to match up buyers and sellers the profitability of the intermediary the addition of valueadded services by the intermediary 55-An e-tailer uses cookies to identify returning customers and to provide suggested products for purchase based on prior shopping behavior. True False 3-One of the keys to building effective customer relationships is an understanding of intelligent agents. Chapter 4 Consumer Behavior 1-Netflix implemented intelligent agents in its movie recommendation service called Cinematch to help customers select movies they would like to watch and to better manage its inventory. on-demand delivery. True False 2-Finding and retaining customers is a major critical success factor for most offline and online businesses. the risks associated with shifting their cost structure from mostly fixed costs to mostly variable costs. This is an example of: advertising supported model. locales.the risk associated with the risk that trying to comply with costs will conflicting rules and erode their regulations in many different profit margin. channel cooperation. the risk that their products will not meet the needs of their target market. personalization.

True False 5-Individual buyers do most of the actual shopping in cyberspace in terms of dollar volume of sales. . True False 7-Personal characteristics of customers. True False 8-Customers rarely browse online stores if they do not intend to buy. resellers.4-The purpose of a consumer behavior model is to help firms understand how a consumer makes a purchasing decision to be able to influence that decision through advertising. which are uncontrollable variables for EC companies. such as age and income. or other marketing method. special promotions. and other organizational buyers often are used to create other products or services by adding value to them. 67 percent of consumers abandoned their shopping carts because of the lack of satisfactory product information. private corporations. True False 6-Purchases by governments. True False 11-Social factors such as customer endorsement strategies and word-of-mouth are independent variables that play an important role in EC shopping and purchases. are independent variables. True False 9-According to Internet statistics. True False 10-The two most cited reasons for abandoning a shopping cart and not making the purchase are shipping charges and security concerns.

True False 14-An objective of conducting market research is to understand the relationships between dependent and intervening variables so that vendors can make informed decisions on the intervening variables. True False 13-Buying decisions are the dependent variables because these decisions depend on the independent and intervening variables. virtual catalogs and links to external sources support the evaluation and selection phase of that process. True False 18-Mass marketing is an approach to marketing that treats each customer in a unique way such as fitting advertising to the customer's profile and needs. the buyer is the person who ultimately makes the buying decision. This imbalance between a desired state and an actual state is called need identification.True False 12-Prices. he decides it is time to buy a new car. True False 15-In the consumer decision-making process. True False 17-In the decision-making process. and logistics are intervening variables that can be controlled by vendors. advertising. True False 16-When Chaplin's auto lease is about to expire. True False . promotions.

True False 24-Building consumer trust in EC can be achieved through integrity. which is a user's confidence in the ability of the online store to fulfill its promises such as a money-back guarantee. how long the . transaction costs. and demographic traits of a particular customer. True False 22-A cookie is a data file that is placed on a user's hard drive by a remote Web server only when the user's gives full consent to collect information about the user's activities at a site. behaviors. True False 25-Clickstream data provide a trail of a user's activities in a Web site including a record of the user's browsing patterns of every page of every Web site the user visits. and advertising content to individuals and their preferences. and failure costs such as warranty claims. customer turnover expenses. products.19-Selling as many products as possible to one customer over a long period of time and across different product lines to maximize customer value is known as relationship marketing. True False 23-Attracting and retaining loyal customers is the most important issue for e-tailers because customer loyalty can lower marketing and advertising costs. True False 20-Segmentation refers to the matching of services. True False 21-A user profile defines customer preferences.

price. frequency of purchase. price. This evolution occurred because: the marketing concerns about focus shifted from privacy had companies sought to decrease the number the Internet enabled companies to better communicate with . ethnicity. community. and legal. gender. brand. and deli 31-Marketing and advertising approaches has evolved from mass marketing to market segmentation to one-to-one marketing. negotiation. cultural. and lifestyle. personal characteristics and environmental characteristics are classified as: intervening variables dependent variables decision variables independent variables 27-The major environmental variables influencing EC purchasing are: age. political. and lifestyle. and logistics support are several of the ________ that can be controlled by EC vendors and sellers independent variables decision variables intervening variables dependent variables 29-Because online buyer's decisions depend on numerous independent and intervening variables. decisions made by customers are classified as: intervening variables independent variables dependent variables decision variables 30-Banner advertising on Web sites helps trigger a realization that there is a gap between reality and a desired state. and even the e-mail addresses of mail that the user sends and receives. information search evaluation. technical support. social. 28-Pricing. education. and selection need identification purchase. social. ethnicity. regulatory. and tangibility.user remained on a page. cultural. True False 26-According to the EC consumer behavior model. payment. which occurs in the ________ stage of the EC purchase decisionmaking process.

Loyalty has increased because of targeted relationship marketing. Placing cookies on a user's hard drive to collect information with or without the user's knowledge. place. 33-Personalization and user profiling strategies include each of the following EXCEPT: Segmenting the market based on demographics. purchase patterns. It is not known whether loyalty has increased or decreased. lower resistance to competitors. customer satisfaction with an Internet store: . matching profiles with privacy and product offerings and trust issues. EC companies can achieve each of the following benefits EXCEPT: lower warranty claims costs. diminished. lower transaction lower marketing and costs. 37-According to research. customers and understand their needs and buying habits. profiles. Building from Using questionnaires to previous collect information purchases or directly from the user. delivering those offerings. and customer promotion. compare.customers to products. other out. 32-The core of the "new marketing model" consists of: customer relationships. of marketing campaigns. price. 34-The two key factors limiting the use of personalization to more precisely target marketing efforts to individual customers are: lack of customer loyalty and service customization costs. communication costs and filtering costs. have cancelled each and shift vendors. online marketing channels. 35-By increasing customer loyalty. four P's–product. advertising costs. 36-What has been the impact of the introduction of EC on customer loyalty in general? There has been little Loyalty has decreased change in loyalty because of customers' because the impacts ability to shop.

confidence that EC transactions due infrastructure. transaction partners to the difficulty of will not feel will keep their online shopping taking legal action comfortable about communities. loading speed. 40-All of the following are correct about market research methods EXCEPT: It is important first to understand how groups of consumers are classified or segmented. they seal of approval programs. Markets can be segmented to increase the percentage of responses and to formulate effective marketing strategies that appeal to specific consumer groups. lifestyle. geographic demographic cognitive. they have important in global the security of the EC through portal affiliation. 41-Social class. cannot be predicted. and customer promises. in cases of a dispute using credit cards to endorsements. personality. service quality. However. affective. customers are both parties in the or fraud. fully confident in online transaction assume some risk. such as the content's reliability. a teeth-brightening product. but online surveys expedited research considerably. and activities are descriptors used in ________ market segmentation. Direct mail marketing methods are usually costeffective. reduced the time-tomarket from concept to market launch by approximately two years. P&G: could not determine the target market segments for the Whitestrips. behavioral psychographic . drops dramatically when certain Web site features fail to perform properly. make EC purchases. Based on this experience.depend on two types of is higher for new factors: information customers than quality and customer former customers. decided to add Internet research to its traditional marketing test model. or usefulness. 38-Issues related to trust in EC include all of the following EXCEPT: When parties trust As a result of trustTrust is particularly If people do not trust transference programs each other. 39-Procter & Gamble (P&G) used the Internet in the new product development of Whitestrips. learned that the cost of online surveys were about the same as similarly sized telephone surveys. Market segmentation is done with the aid of tools such as data modeling and data warehousing. purchasing transactions.

marketers learn about customers by observing their behavior using each of the following EXCEPT: Spyware that gathers user Transaction logs that Data mining to information through an Internet record user activities at analyze connection without the user's a company's Web site. 43-According to Inmon. Loss of respondents because of equipment problems. knowledge. Cookies that allow a Web site to store data on the user's PC. Focus group responses lose eye contact and body language. are used to redesign Web sites quickly and on the fly. the company can predict. What goods the customer examined but did not purchase. offer advanced functions that help marketers decide which products to promote. provide most companies with knowledge about how to use clickstream data effectively. 45-Once a company knows a consumer's preferences. Whether there are too What goods the many products for the customer wanted to customer to wade but could not find. clickstream data. without asking the consumer directly. rate.42-To avoid getting false information from participants of online surveys. what other products or services that consumer might enjoy through ________. B2C clickstream data can reveal information each of the following EXCEPT: Which ads and promotions were effective and which were not. active web bugs collaborative filtering spyware personalization 46-Limitations of online research methods are all of the following EXCEPT: E-mail surveys have The ethics and the lowest response legality of Web tracking. . through. 44-Web analytics and mining tools and services: simply report which pages were clicked and how long a visitor stayed there. and merchandisers achieve a better understanding of the nature of demand.

through an affiliation service. the limited amount of time the limited amount of viewers have become their the banner is present to the information can be placed on immune to banners and cost visitor the banner seldom notice them 51-A(n) ________ is a type of pop-up ad that appears after a user clicks a link and remains while content is loading to capture the user's attention for a short time. 48-The Internet introduced the concept of ________.47-Online methods of bringing new customers to a B2B site when a B2B vendor wants to grow by adding new customers or products include all of the following EXCEPT: by contacting all of its targeted customers individually to attract them to an electronic exchange. click through ad view unique visit conversion rate 50-The major disadvantage of banners is ________. keyword banner interstitial banner exchange CPM 52-The risks of e-mail advertising management include all of the following EXCEPT: spam fraud e-mail hoaxes measuring e-mail advertising effectiveness 53-A(n) ________ is an HTML coding statement that describes the content of a Web page and is used by search engines to index the site's content so that it can be found. one-to-one marketing direct marketing advertising channel interactive marketing 49-The term ________ refers to the number of times users call up a page that has a banner on it during a specific period. which has enabled marketers and advertisers to interact or communicate directly with customers and consumers can interact with marketers/advertisers. through Web advertising through direct such as using an ad server mail campaigns network provider. meta-tag domainer advertorial associated ad display . either as a promotion or a lead-in to the site's homepage or to advertise a product or a service.

communicating. Affiliate marketing Viral marketing Ad customizing Ads as a commodity Chapter 5 B2B E-Commerce 1-General Motors' B2B initiatives successfully enable the auto giant to reduce inventory cost. 55-________ is an advertising strategy that uses word-of-mouth marketing in which customers promote a product or service by telling others about it. collaborating. True False 4-Supply chain improvements and collaborative commerce are a basic type of B2B which has a hub manager for supply chain improvements. and collaboration processes in order to improve them. intranets. blogs. sites. or private networks. minimize operational problems. extranets. and shorten procurement processes.54-Advertising in chat rooms. and information sharing. True False 2-Business-to-business e-commerce is also known B2B and refers to transactions between businesses conducted electronically over the Internet. which cannot be done without the Internet. communication. True False 3-The major characteristic of B2B commerce is that companies attempt to electronically automate trading. . They can be used as one-toone connections between a company and its customers. Advertising can Advertising can be become more thematic easily targeted to than on static Web customer interests. or social networks can achieve each of the following EXCEPT: They improve a company's search engine ranking.

a business sells to a business. True False 7-Supply chain activities usually involve communication and collaboration. True False 9-Intermediaries in B2B commerce. procurement. shipments. True False 11-Examples of direct materials for a food processing company are computers and communication devices. which may be virtual or click-and-mortar intermediaries. are third parties that broker transactions between buyers and sellers. True False 8-With B2B2C. True False 6-Since business-to-consumer (B2C) transactions are segments in the supply chain. but also delivers small quantities to customers of the buying business. True False . and logistics. usually the purchase of commodities at prevailing market prices.True False 5-B2B EC transactions that involve one seller selling to many buyers is called an exchange. they should be examined in light of other supply chain activities such as manufacturing. is referred to as demand buying. True False 10-The purchase of goods and services as they are needed.

True False 14-Purchases of goods or services that are based on short-term contracts and frequently purchased in large quantities are known as strategic sourcing. True False 18-Transaction fees for B2B financial services are higher than for most other methods.12-MRO stands for "maintenance. True False 15-Joining a public e-marketplace provides a business with greater buying and selling capabilities. True False 19-Companies will often separate B2C orders from B2B orders because those types of orders have different order-fulfillment processes and different pricing models. True False 13-Markets that focus on providing materials or products that are used in various types of industries are known as horizontal marketplaces. True False 17-Companies that choose an intermediary to do their buying and selling will have high supply chain power and buying/selling capabilities. True False 16-B2B can increase the efficiency and effectiveness of supply chains or dramatically change the supply chain by eliminating one or more intermediaries. but the tradeoff is lower supply chain power. and operation" which refer to indirect or nonproduction materials that support the production process. . repair.

True False 20-By using the Internet and automatic-response software agents for customer service. True False 24-With a bartering exchange. negotiation. True False 25-In the real world. which is searched for product availability and delivery times. True False 22-Strategic sourcing requires a holistic process that automates the entire sourcing process. obsolete. including order planning. and order execution. RFQ creation. companies have been able to reduce their customer service costs by up to fifty percent. bid evaluation. True False 23-A large organizations can develop an effective procurement system by creating an internal marketplace that combines the catalogs of all its approved suppliers into a single internal electronic catalog. settlement. negotiations are done primarily electronically and with negotiation support tools. which the company can then use to buy items that it needs. a company submits its surplus to the exchange and receives points of credit. and returned products. True False 21-Forward auctions expand online sales and offer businesses a new venue for quickly and easily disposing of excess. True False 26-Key business drivers for B2B are all of the following EXCEPT: the availability of a numerous private and the need for the willingness of .

usually at prevailing market prices is referred to as: direct materials spot buying consolidation strategic sourcing 31-Purchases of goods and services based on long-term contracts is referred to as: direct materials spot buying consolidation strategic sourcing 32-________ can be supported more effectively and efficiently through direct buyer—seller offline or online negotiations. public marketplaces trading communities exchanges collaborative commerce 28-With ________. collaborations between companies to incur higher suppliers and buyers. design. which can be done in private exchanges or private trading rooms in public exchanges. planning. B2B2C B2B B2C B2C2B 29-A(n) ________ is an online third party that brokers B2B transactions between a buyer and seller. costs to improve collaboration. Strategic purchases B2C commerce MRO Spot buying 33-What are the two types of materials and supplies that are traded in B2B? . a business sells to a business but delivers small quantities to customers of the buying business. public B2B emarketplaces. and activites beyond financial transactions among business partners is referred to as ________. 27-B2B transactions that involve communication. information broadband Internet platform. vertical marketplace horizontal marketplace intermediary strategic source 30-The purchase of goods and services as they are needed.

Digital and physical. Horizontal and vertical. Increases opportunities for collaboration. . permitting reduces cycle time. 34-Nonproduction materials such as equipment and tools that support production are called: operational materials direct materials virtual materials indirect materials 35-Indirect materials are typically used in ________ activities. intermediary maintenance. Commodities and nonproduction. Enables customized online catalogs with the same prices for different customers.Direct and indirect. just-in-time delivery. repair. 40-________ occurs when B2B eliminates a distributor or a retailer. and operation (MRO) sales and marketing supply chain 36-The ________ consists of a number of interrelated subprocesses that extend from the acquisition of materials from suppliers to packaging it and moving it to distributors and retailers. vertical market horizontal market production chain supply chain 37-Companies that use an intermediary to do their buying and selling tend to be: low on supply chain power and low on buying/selling capabilities high on supply chain power and high on buying/selling capabilities low on supply chain power and high on buying/selling capabilities high on supply chain power and low on buying/selling capabilities 38-The major B2B services include each of the following EXCEPT: Financial Travel and hospitality Stock trading Retail 39-Which of the following is not one of the major benefits of B2B? Expedites Increases production processing and flexibility.

20 44-Some of the benefits of a(n) ________ are that distributors can check inventory.Disintermediation Collaboration Just-in-time delivery Purging 41-In a sell-side e-marketplace. a business sells products and services to business customers. GE reduced the cost of customer service calls from $5. e-mails. including corporate dealers.50 $0. $1. marketing processes accounting processes order-fulfillment processes and different pricing models buying and delivery processes 43-By using the Internet and automatic-response software agents. electronic data interchange custom catalog extranet-based order-entry intranet-based order-entry tool tool 45-In selling directly. multichannel distribution direct sales conflict channel conflict indirect competition 46-One of the major problems facing direct sellers is ________. namely ________ with the regular distributors. how to manage the supply how to find chain buyers how to find suppliers how to advertise in traditional channels . 42-Companies will usually separate B2C orders from B2B orders because B2C and B2B orders have different ________.00 $0. frequently over ________. and look up the status of their orders significantly reducing the number of phone calls. make transactions.50 $2. manufacturers may encounter a similar problem to that of B2C. and incorrect product shipments. an exchange an intranet a web service an extranet.00 per call when done by phone to ________ per electronically answered call.

47-The Cisco Connection Online (CCO) Web site receives over 2 million hits per month for technical assistance, ordering, order checking, or software downloads. This online service had been so well received that nearly ________ percent of all customer service inquiries and ________ percent of software updates are delivered online. 15 / 25 45 / 55 25 / 35 85 / 95

48-Companies use ________ to sell their unneeded assets for quick disposal or to easily dispose of excess, obsolete, and returned products. private auctions forward auctions reverse auctions liquidation

49-Benefits of using a third-party hosting company for conducting B2B auctions instead of developing an auction site in-house include all of the following EXCEPT: No redeployment of corporate resources. No additional resources are needed such as No hardware, bandwidth, engineering resources, hiring or IT personnel. costs. Time-to-market of several weeks.

50-A company-based acquisition site that uses e-procurement methods such as reverse auctions, negotiations, or group purchasing, to overcome the manual searching of e-stores and e-malls is referred to as a(n): aggregated catalog buy-side e-marketplace intermediary desktop procurement method

51-Benefits of e-procurement over traditional procurement methods include all of the following EXCEPT: Streamlining invoice reconciliation and dispute resolution. Lowering purchase prices through product standardization, reverse auctions, volume discounts, and consolidation of purchases. Increasing the productivity of purchasing agents. Increasing the skill requirements and training needs of purchasing agents.

52-Major implementation challenges that companies must consider when planning eprocurement initiatives include all of the following EXCEPT: Increasing the number of Providing interfaces between Reviewing and e-procurement and integrated changing the regular suppliers and Coordinating the buyer's information

integrating with their information systems and possibly with their business processes.

enterprisewide information systems, such as ERP or supply chain management.

procurement process itself.

system with that of the sellers.

53-Because conducting reverse auctions in B2B can be a fairly complex process, a(n) ________ may be essential. open RFQ online directory third-party intermediary software agent

54-The aggregation of suppliers' catalogs on the buyer's server to make it easier to centralize and control all procurement is called a(n): bartering exchange sell-side emarketplace buy-side emarketplace internal procurement marketplace

55-In general, the benefits of contract-management software include all of the following EXCEPT: Reduces contract Reduces contract-related negotiation time and efforts. risks. Provides more efficient approval processes. Enables standardization of contracts throughout the enterprise.

Chapter 6 Public B2B Exchanges
1-Public exchanges are many-to-many marketplaces that are open to all interested sellers and buyers and usually run by third parties. True False

2-One major characteristic of all exchanges is that they are electronic trading-community meeting places for a single seller and many buyers, and possibly for other business partners. True False

3-In electronic exchanges and traditional open-air marketplace, buyers and sellers can interact and negotiate prices and quantities.



4-Dynamic pricing refers to the rapid movement of prices over time and possibly across customers as a result of supply and demand matching, as in auctions. True False

5-MSN or Yahoo! are types of exchanges that generate revenue through membership fees. True False

6-Thomas Register is basically a directory for buyers using search engines because it does not offer any opportunity for trade or transactions on its site. True False

7-Alibaba China is China's largest online marketplace for both domestic and international trade among businesspeople and a trusted community of members who regularly meet, chat, search for products, and do business online. True False

8-To increase their financial viability, third-party exchanges try to partner with large sellers or buyers, financial institutions that provide payment schemes, or logistics companies to cut costs or increase market liquidity. True False

9-Market liquidity refers to the degree to which a product or service can be bought or sold in a marketplace without significantly affecting its price. True False

10-Agentrics is the world's largest B2C exchange for retailers, such as Sears and Best Buy, whose objective is to simplify and automate supply chain processes. True False

True False 12-For all types of e-marketplaces. B2B exchanges and other emarketplaces do not face anti-trust or other competition laws. True False . thus enabling and encouraging consortium members to buy more. True False 14-The Global Transportation Network (GTN) provides participating carriers and customers with significant cost savings because it frees individual carriers from the huge capital costs of advanced technologies. True False 15-Purchasing-oriented (procurement) consortia have not yet been a successful or popular B2B consortium model.11-Two major models of third-party exchanges are supplier aggregation and buyer aggregation. True False 13-A consortium trading exchange (CTE) or consortia is most appropriate for fragmented markets with large numbers of both buyers and sellers. the most important key to the success of any third-party exchange is the critical mass of buyers and sellers. True False 16-Because of their large number of buyers and sellers. True False 17-A B2B consortium has the potential to reduce prices of individual products.

True False 20-Because of the complexity in building large e-marketplaces and exchanges.and similar business models for charging for their services. and they may not be open to all. and a management consulting company. software agents can facilitate management of multiple trading partners and their transactions across multiple virtual industry exchanges. it is usually performed by a major B2B software company. True False . True False 22-Most exchanges have the same log-on procedures. quality e-service for business partners is called customer relationship management (CRM). True False 23-Public exchanges have difficulty attracting buyers and sellers because of the transaction fees. and the availability of too many exchanges. such as PricewaterhouseCoopers. such as Ariba or IBM. therefore changing continuously. True False 19-The strategy of providing comprehensive. reluctance to share information. usually participates. True False 24-In B2B exchanges. same sets of rules for fulfilling orders.18-Dynamic trading is trading that occurs in situations in which prices are determined by supply and demand. True False 21-Company-centered networks may be a waste of money because they are used by only one buyer (buyer's industrial network) or by only one seller (seller's industrial network).

a majority of e-exchanges: increased in size due to mergers of small eexchanges. and tries to induce the necessary liquidity. sellers. 28-A third party that operates an exchange and in many cases. many buyers and few sellers. also owns the exchange is known as a(n): intermediary negotiator agent market maker 29-In the context of EC. partners. ________ are electronic trading-community meeting places for many sellers and many buyers. many buyers and many sellers. devised new methods to folded due to a lack of expanded by increase revenues and customers. plastics. and possibly for other business partners. cash. and fuel oil was each of the following EXCEPT: disintermediated fragmented slow expensive 27-ChemConnect is an example of a successful e-exchange with: many buyers and one few buyers and few seller. both. B2C portals social networks exchanges 30-From 2001 to 2006. the trading process for raw and partially processed chemicals. supports decision making. True False 26-Before the Internet. or adding business profits. minimizes conflicts.25-Good management and effective operations and rules are critical to the success of B2B exchanges because good governance provides the rules for the exchange. 31-An exchange whose members are in one industry or industry segment and that trades only in materials/services unique for that industry is referred to as a(n): lateral exchange horizontal exchange vertical exchange commodity exchange .

fixed and set by set by the contract market maker 38-In an exchange where plastic components are bought and sold. in horizontal exchanges. the prices are usually negotiated or fixed. commodity exchange vertical exchange lateral exchange horizontal exchange 34-In ________. the prices are usually dynamic and are based on changes in supply and demand. maintaining exchange infrastructure. and releases it to the seller once successful delivery is completed. prices are: dynamic and set based on supply and demand. . the market maker collects money from the buyer. spot sourcing horizontal sourcing strategic sourcing vertical sourcing 36-Spot sourcing of direct materials takes place: in vertical exchanges. facilitation. lateral exchange vertical exchange horizontal exchange commodity exchange 33-Light bulbs and office supplies might be purchased in a(n) ________ by both an automaker and a steelmaker. vertical sourcing spot sourcing horizontal sourcing strategic sourcing 35-In ________. This is an example of: maintaining exchange policies.32-An exchange that handles materials used by companies in different industries is referred to as a(n):. matching buyers and transaction sellers. based solely on the cost structure of the seller. on exchanges which operate without a market maker. 37-In spot-sourcing. only in virtual exchanges.

maintaining exchange policies and infrastructure. consortia model. transaction facilitation. several industry players come together to establish the exchange for the benefit of all. membership fee model. a neutral third party establishes and manages the exchange. The revenue model in use by this exchange is the: transaction fee model. the market maker purchases a new server that will be used to conduct auctions.S. fee for service model. The revenue model in place in this exchange is the: advertising fee model. interfering with exchange policies.000 for all parties who want to trade in the exchange. maintaining exchange policies. infrastructure. advertising fee model. This is an example of: transaction facilitation. 44-A market maker charges a percentage on every buy and sell made in the exchange. neutral entrepreneur model. 41-In the consortia model: a dominant player in the industry establishes the exchange and invites others to join. This is an example of the market maker: matching buyers and sellers. fee for service model. 43-An exchange charges an annual fee of $25. the public is invited to join the exchange as a way to offset expenses 42-The exchange model in which a third party sets up the exchange and promises to run it efficiently and without bias is called the: industry giant model. transaction fee model.39-In an exchange where plastic components are bought and sold. 40-A market maker evaluates an exchange between a buyer in the United States and a seller in Spain to ensure that import laws for the U. matching buyers and maintaining exchange sellers. are followed. co-op model. 45-A market maker bills a buyer for reviewing several seller contracts and making a recommendation on what to buy and from whom. The revenue model being used in this example is the: . membership fee model.

. and shipped and sellers in a information flows between available cash using the exchange.. transaction fee model. information. processed. 49-The exchange model in which RFQs are aggregated then linked to a pool of suppliers who are notified automatically of the RFQ is the ________ model. when fees are very low. 51-Attracting large business sellers to public exchanges is often difficult for all of the following reasons EXCEPT: competitors who are also advertising costs in it is sometimes exchange member may public exchanges difficult to recruit gain access to confidential are very expensive. it has been shown that: low membership fees often result in losses to the exchange. 47-When membership fees are the basis for revenue generation in an e-exchange. advertising fee model. on hand. there should be a fee the higher the for every service fees charged. members. there should the greater the be no free services for total profit.membership fee model. large suppliers. shipping and handling fees. 48-The concept of liquidity for a B2B exchange is the: ease with which orders can be number of buyers ease with which amount of placed. however. market. high fees discourage participation. reverse auction buyer aggregation supplier aggregation seller aggregation 50-Markets in which several large sellers sell to a large number of buyers are called: differentiated markets. 46-All of the following are potential sources of revenue for an exchange EXCEPT: advertising fees. the exchange sees greater utilization which leads to greater revenue and profit. fees for services rendered. fragmented markets. buyer-concentrated markets. exchange members. membership fees. fee for service model. seller-concentrated markets. they are required to pay transaction fees even when they engage in transactions with existing customers. provided.

True False . (VPN). it is easy for exchange members to change to another exchange.52-In dealing with exchange members. making trust of suppliers very important. make certain that the exchange is neutral in its dealings with all members. exchange members typically buy only the best brands of product. a market in which a small number of many fragmented very large orders account for more buyers and sellers. 53-The most attractive industries for a vertical exchange are characterized by: a few very large stagnant players that totally technology. 54-Brand building is important in B2B exchanges because: information flow is poor in most exchanges. strive to maximize exchange revenues through charging the highest possible fees. exchange members typically buy products at the lowest cost unless branded. its success may be far more dependent on what is behind the Web page than on what is on the Web page. dominate the industry. take special care of the companies that share ownership in the exchange. than half the total market volume per year. 55-Using tunneling technology to improve security of communication over the Internet is called: local area network (LAN) Internet protocol electronic data interchange virtual private network (IP) (EDI). the management of the exchange should: leave the management of day-to-day operations of the exchange to the members. Chapter 7 E-Supply Chains 1-Although a company's success is clearly dependent on finding and retaining customers.

2-It has been well known for generations that the success of many private. which can be manufacturers. the major concerns are production management. "from dirt to dust. True False . and their connections with their suppliers. assemblers. True False 4-The term supply chain comes from the concept of how systems and processes within an organization are linked together. and money. and inventory control. or service providers. customer dissatisfaction. True False 8-In the internal part of the supply chain. True False 3-Supply chain problems can cause delays. and military organizations depends on their ability to manage the flows of materials. products not being where they are required at the right time. lost sales. or both. which is referred to as the product life cycle. internal. public. True False 7-The downstream part of the supply chain includes the activities of a company with its suppliers. information. and downstream." True False 6-A supply chain can be broken into three major parts: upstream. and high expenses that result from fixing the problems once they occur. True False 5-A supply chain involves activities that take place during the entire product life cycle. manufacturing.

real-time control. transportation. logistics providers. True False 11-A major requirement for any medium. creating an e-supply chain and managing it. attention is directed at distribution. and overall reduce the costs associated with these activities. decrease manufacturing time. optimize logistics and distribution. True False 10-SCM aims to minimize inventory levels. trading partners. True False 15-Companies can use replenishment information to reduce inventories and eliminate stocking points. True False 14-The success of an e-supply chain depends on an e-supply chain that is loosely integrated both within a company and across an extended enterprise made up of suppliers.9-In the upstream supply chain. and after-sale service. and the distribution channel. and daily monitoring. agility. streamline order large-scale company that is moving to EC implies an integration between all the activities conducted on the Web and the ERP/MRP/SCM solutions–in other words. True False 13-The success of an e-supply chain depends on managing information with strict policies. warehousing. optimize production and increase throughput. True False 12-E-supply chain management is the collaborative use of technology to enhance B2C processes and improve speed. True False . discipline. and customer satisfaction.

inventory reorder points have been automated so that when inventory gets down to a certain point the system will automatically notify a human of the exact amount to reorder.16-By combining bar coding and wireless technologies. automobile dealers are able to scan in goods as they arrive electronically and place them in inventory up to 10 percent faster than previously. It is becoming a replacement for RFID because RuBee overcomes many of RFID's limitations. True False 21-RuBee relies on low-frequency magnetic waves to track products and transfer information. inventory levels. True False 17-At hospitals and supermarkets. . such as groceries or gasoline. True False 19-Pure EC companies may be likely to have more supply chain problems because they may not have a logistics infrastructure and may be forced to use external logistics services. For these products. True False 20-A major limitation of RFID currently is the restriction of the environments in which RFID tags are easily read. The retailer provides the supplier with real-time information such as point-of-sale data. True False 18-Functional products are staple products. and flexibility rather than low costs. and a threshold below which orders are replenished. retailers make their suppliers responsible for determining when to order and how much to order. True False 22-With vendor-managed inventory. that have stable and predictable demand. responsiveness. an effective supply chain emphasizes speed.

the supply chain ends: when the customer when the supplier delivers raw when the decides he/she is materials and component parts to customer buys satisfied with a product the manufacturer. much less complex than customer-facing applications such as taking an order online. management needs to be able to justify the development and use of a corporate portal by comparing its cost with its benefits. downstream processing e-logistics . True False 25-As with any IT project. much more complex than customer-facing applications such as taking an order online. The challenge is that despite the tangible benefits from investment in portal technology. when the product is used up and disposed of.True False 23-The goal of collaborative planning. 27-For a manufacturer. most of the benefits of portals are intangible. the product. and replenishment (CPFR) is to streamline product flow from manufacturing plants to retailers. 28-The use of Web technologies to manage warehousing and transportation processes is called: collaborative planning e-replenishment. forecasting. True False 26-A company's internal operations and its relationships with suppliers and other business partners are frequently: replaced by customer-facing applications. as complex as customer-facing applications such as taking an order online. as well as significantly reduce costs associated with product-change management. such as include increased revenues and customer loyalty. True False 24-Studies have shown that electronic-based collaboration and product lifecycle management (PLM) can reduce product costs and travel expenses by 50 percent.

740. the bullwhip effect. the lack of universally accepted standards. An example of immediate value from RFID is when: an RFID tag tells customer service which factory made the faulty product returned by a customer. 34-A major block in the widespread implementation of collaborative commerce is: the theory of collaborative commerce hasn't been proven effective in real-world applications. planning. and long-term value to organizations. sharing on-demand training aggregating catalogs courses across many locations on a central server.000. 30-The last fifteen orders from a manufacturer to its suppliers range from $100. order instability. design.000 to $8. collaborative commerce is extremely expensive.29-The e-SCM process that includes integrated production and distribution processes is: collaborative planning e-logistics e-procurement supply chain replenishment. an RFID tag tells inventory control every time a roll of wire moves out of the warehouse and onto the factory floor. 33-RFID can provide immediate. and information discovery are called: collaborative commerce. information sharing. This is an example of: supply inadequacy. . an RFID tag reveals the supplier of a faulty component without the need for quality control to research component order records. information aggregation systems. electronic bartering systems. 32-All of the following would be considered c-commerce EXCEPT: connecting suppliers. the technology needed isn't available. 31-B2B systems which are used for communication. short-term. electronic data systems. communication and collaboration with suppliers. demand manipulation. an RFID tag sends a report to the supplier every time one of its component parts is used in the manufacturing process. simultaneously.

This is an example of: reducing design cycle time. CPFR. and engineering.35-Wal-Mart and Levi Strauss collaborate on demand forecasting in order to optimize the flow of materials along the supply chain. 36-The purpose of CPFR is to: optimize the flow of materials along the supply chain. . PLM can have significant beneficial impacts in cycle time. 37-________ is a business strategy that enables manufacturers to control and share product-related data as part of product design and development efforts. design reuse. Supply chains from the suppliers' suppliers to the customers' customers should be jointly planned and designed for overall optimality by all of the supply chain partners. EDS. and IBM. minimize quality problems in supplies. PLM tools are offered by SAP. Product lifecycle management Advanced planning and scheduling Internal commerce Collaborative planning 38-All of the following are true about product lifecycle management (PLM) EXCEPT: The demand for PLM in limited because it does not apply to products that have short life cycles or are complex. many business experts agree with each of the following EXCEPT: The supply chain needs to be operationally integrated so that inventory activities link seamlessly to manufacturing activities. PLM is a big step for an organization because it requires integrating different processes and systems. ensure that members of the supply chain will have the right amount of raw materials and finished goods when they need them. APS. eliminate intermediaries. 39-Today. reducing product development time. Matrix One. Supply chain integration has reduced the intensity of competition in most industries. The insightful way to view contemporary business is that competition exists between or among supply chains rather then individual companies.

address missioncritical. designing and implementing integrated supply chain operations. 45-The steps required to approve an expense report is an example of: administrative workflow applications. 44-Addressing mission-critical. are business process automation tools that place system controls in the hands of users. high-volume transaction processes is the goal of: collaborative workflow applications. management requires a holistic focus that takes account all of the following primary factors EXCEPT: location and revenues. 46-________ is the transfer of documents and computer files while videoconferencing. including performance measurement. extranet technology. IT and business and people. 43-Software applications that address project management concerns are examples of: administrative workflow applications. Interactive whiteboarding CPFR Web conferencing Data conferencing . 42-Collaborative workflow applications: have predefined workflows. production workflow applications. processes. portal applications. high volume processes. and incentives. collaborations workflow applications. address projectoriented and collaborative processes. strategy. administrative workflow applications. 41-Software that helps integrate different types of information systems among collaborating companies is called: browser technology. portal applications. portal applications. structure. collaborative software.40-When planning. production workflow applications collaborative workflow applications. monitoring. middleware. production workflow applications. transactionoriented. but can be redefined quickly when needed. culture.

is needed for collaborative efforts only. may be helpful for supply chain improvements. increased data security. less management intervention. business. 50-________ means that the communication and collaboration are done in real time. supporting technology. cycle time reduction. of the technology. For people working on different tasks or projects. 53-The major benefit of group decision support systems is: . Bi-synchronous Asynchronous Synchronous Multi-Synchronous 51-All of the following are types of communication and collaboration done in real time EXCEPT: instant messaging blogging webinars VoIP 52-The growth in electronic meeting systems has been driven by all of the following EXCEPT: Acceptance of virtual meetings as Improvements in Reductions in the price Shorter a respected way of doing cycle times. 48-When large suppliers or buyers are involved. 49-Groupware is appropriate in all of the following situations EXCEPT: For groups to share ideas and opinions. For networked environments. a workflow system: will fail because of system incompatibilities.47-The primary benefits of workflow management systems include all of the following EXCEPT: fewer chances for delay or misplaced work. is needed for both the collaborative efforts and for supply chain and production improvements. For people in the same room.

in passive listening while information is distributed. in easier decision making. True False 2-E-government applies only to the interaction of the government with its business suppliers. True False 4-Two major areas of G2C activities are "tourism and recreation" and "research and education. True False 3-The government-to-citizens (G2C) category includes all of the interactions between a government and its citizens that can take place electronically. 54-Corporations are moving their phone systems to ________ to cut costs and boost efficiency. It is the natural result of wanting to link people via both voice and audio. It evolved from the spread of instant messaging and Internet telephony." . VoIP RTC video kiosks GDSS 55-All of the following apply to instant video EXCEPT: The idea is for a kind of video chat room that allows users to chat in real time and see the person(s) they are communicating with. Chapter 8 Innovative EC Systems 1-Wikis are used for informal organizational training because it reduces the cost and time of conducting virtual meetings. in faster decision making with greater agreement. The highest quality approach is to add video cameras to the participants' computers.

True False 5-Current voting technologies are being implemented in various countries because of the security provided by these technologies. True False . True False 10-Electronic filing of business taxes is available in over 100 countries.S. True False 7-The smart card system is part of a nationwide electronic benefits transfer system in the U. True False 6-The Government Paperwork Elimination Act and the Memorandum on E-Government ordered the top 500 forms used by citizens to be online by December 2000. and YouTube. Facebook. Navy's Lifelines system is an example of G2E EC. True False 9-Forward auctions are buy-side auction systems used by the government to buy large amounts of MROs and other materials directly from suppliers. True False 8-Social networks. for Social Security and welfare payments and other benefit payments. True False 11-The U. from Thailand to Finland to the United States.S. such as MySpace. are rarely used by political candidates to reach voters because there are too few users of those networks who actually vote.

and Stanford in the United States and Oxford in the United Kingdom are implementing it. True False 17-One disadvantage of e-learning is the lower content retention rate compared to traditional in-person training. True False 14-One of the most important issues in implementing e-government is its adoption and usage by citizens. Harvard.12-The e-government transformation process from traditional delivery to full implementation is a quick process. especially because world-class universities such as MIT. True False 18-An important advantage of e-learning is that it can provide a fear-free and privacyprotected environment in which students can put forth any idea without fear of looking stupid. True False . True False 16-At Cisco. True False 15-The topic of e-learning is gaining much attention. e-learning helped reduce employee training time and costs by almost 25 percent. True False 13-G2B is easier to implement than G2C.

True False 23-Senior executives and companies are using the blogosphere to build trust-based relationships. True False 24-Knowledge portals are single-point-of-access software systems intended to external use only provide easy and timely access to knowledge and to support communities of knowledge workers who share common goals. True False . True False 21-The dynamic approach to publications personalizes content in real time and transmits it on the fly in the format best suited to the user's location. and preferences. and accomplish other professional goals. only a small number of business organizations are using e-learning on a large scale. tastes. promote social causes. True False 25-P2P signifies a shift in peer-networking emphasis from hardware to applications because easier configuration and control over applications enable even non—technical people to join the user community. This approach also is called just-in-time (JIT). True False 20-Unlike educational institutions.19-A drawback of e-learning is that no online course can deliver real-time information and knowledge in the way a "live" instructor can. polish corporate reputations. True False 22-One of the seven principles for building effective blogs is to think of a blog as a database instead of a newspaper-like collection of posts.

a regional hospital conducts an online reverse auction for cleaning supplies. a company sells army and navy surplus supplies at auction over the Internet. This is an example of: e-Procurement G2B e-commerce G2C e-commerce e-government 31-Government-to-employee applications can lead to significant efficiency improvements for all of the reasons EXCEPT: Many military Most government employees are stationed employees use in remote locations that handheld digital Governments employ Employees of federal and large numbers of people state governments often that need to be paid and work in a variety of . 28-An example of G2C is: a road contractor uses the Internet to submit a closed bid on a paving contract. 29-Chaplin reports quarterly sales revenue from his business to city hall over the Internet. a driver applies for and pays for the renewal of his auto tag online. He pays his local business tax with a credit card.26-________ are a popular online publishing technology for creating a Web page that can be edited by anyone with a standard Web browser. an employee at the Chamber of Commerce gets local demographic data from a U. a contractor submits an application for a building permit using a city hall Web site. This is an example of: e-government G2C e-commerce e-Procurement G2B e-commerce 30-A government agency uses an online reverse auction to satisfy the tendering system requirements specified by law.S. an unemployed worker consults a Web site operated by the state employment department to learn about job openings in his city. P2P Wikis Point-casts Blogs 27-All of the following are examples of e-government EXCEPT: a state purchasing officer places an online order for office supplies from an ecatalog sent to her by a national office supply store. Census site.

33-One of the most important issues in implementing e-government is: providing for secure its adoption and payments. trained. the technology needed to implement stage 6 of the Deloitte transformation process does not exist yet. protecting the intellectual instructors must property of content be retrained. the use of encryption and digital signatures.are best served via the Internet. attend classes. knowledge retention is higher. knowledge retention is lower than in traditional classrooms. 32-All of the following are problems in implementing e-Government EXCEPT: it is difficult to protect personal data collected through an eGovernment site. devices. geographic locations. usage by citizens. 35-All of the following are potential drawbacks of e-learning EXCEPT: assessment issues remain to be resolved. businesses have been transformation is more receptive to typically very G2B than slow individuals to G2C. 34-All of the following are advantages of e-learning EXCEPT: it costs less to deliver education college professors are online than in a traditional anxious to develop new classroom. learning time is reduced. 37-The business forces that are driving the transition from traditional education to online learning are all of the following EXCEPT: limited supply of faculty with competition and cost network technological . only when forced by administrators to use it as a way to recruit distant students or reduce costs. developers. online courses. as a total replacement for traditional classrooms. 36-Most universities use e-learning: exclusively in as a supplementary reaching students who channel to traditional couldn't otherwise classrooms. designing feature-rich Web sites.

A community college providing an online college course on digital media. An online game that uses colorful characters to teach young children about numbers. connectivity. and broadcast international entertainment activities.specialized expertise. magazines. Macromedia Blackboard WebCT Web 2. .org. Podcasting Webcasting Dynamic publishing File sharing 43-A podcast is distinguished from other digital audio formats by: the iPod its lack of hardware proprietary required to hear content. Apple's iTunes Napster Kazaa P2P 42-________ is commonly used to broadcast public lectures and e-seminars. books. change. Blogging Online publishing Social networking Webinar 41-More and more people are willing to pay for digital music. its ability to be downloaded automatically. its use of unpaid subscriptions. as shown by the success of ________. and other digitizable information over the Internet.0 40-________ is the electronic delivery of newspapers. using software capable of reading feed formats such as RSS. 39-One of the facilitators of e-learning is ________ technology such as wikipedia. it. 38-Which of the following is an example of edutainment? Two or more students sharing music over the Internet. An online science fiction game whose object is to blast as many aliens as possible in a 60 second round. pressures. promote the work of new or unknown musicians. videos. music.

then distributed free copies of the book.44-The exclusively online publication of Stephen King's e-book Riding the Bullet in March 2000: as disrupted by hackers who breached security. A blog is a personal Web site. readers. marketing. in which the owner expresses his or her feelings or opinions. lower production. 2001 terrorist attacks when people were looking for as many sources of information as possible and for personal connections to the tragedy. 47-Which of the following statements about blogs is not true? Blogs became very popular after the September 11. download Rubics-cube hyperlink online reference book model. and delivery costs. . the risk of revealing trade secrets. 48-Risks in corporate blogging include all of the following EXCEPT: the risk of disciplinary action against abusive bloggers. audio. and video. online-only book that has hyperlinks. blogs. build-your-own decision book 46-The primary advantage that e-books offer publishers is: the ability to the ease of updating reach many books in real-time. 49-A major purpose of an organizational knowledge base is to support and allow ________. 45-A type of e-book referred to as the ________ is a truly multimedia. It supports nonlinear exploration of topics. was a failure because the cost of the book was too high. graphics. was an unqualified success and established electronic publishing as a legitimate competitor for traditional publishers. the ease of customizing textbooks and trade books. open to the public. three-dimensional text and display. produced very few sales. book interactive. The most common types of Blogs are limited to blogs are one-way professional communication. the risk of lawsuits the risk making statements that are or could be construed as libel or defamation.

shared. companies protect it to maintain competitive advantage.organizational capital knowledge sharing responsible blogging e-learning 50-The tasks of KM include each of the following EXCEPT: enhancing a knowledge environment in order to conduct more effective knowledge creation. transfer. 52-________ involves using various computer-based tools and techniques to analyze transaction data and generate new ideas. 51-Knowledge is of limited value if: company databases are not accessible to decision makers. Knowledge management Knowledge capture Knowledge classification Knowledge creation 53-Knowledge generated in e-business contributes to the enhancement of three core operating processes. but lacks tools for easy creation of content or . creating knowledge restricting repositories where knowledge access to knowledge can be prevent its transfer stored and retrieved between individuals. but the best-known C2C activities are: C2C exchanges C2C auctions Personal services Classified ads 55-P2P systems have all of the following key characteristics EXCEPT: They provide for real-time They support crossaccess to other users networking protocols such through techniques such as SOAP or XML-RPC. and use. which include all of the following EXCEPT: customer relationship management supply chain management product development management project management 54-Customer-to-customer (C2C) e-commerce is conducted in various ways on the Internet. users contribute their it is not own specialized content. as instant messaging and which enables a program The users' computers can act as both clients and The overall system is well integrated. managing knowledge as an asset so as to increase the effective use of knowledge assets over time. easily.

True False 2-Mobile computing refers to a computing paradigm designed for workers who travel outside the boundaries of their organizations or for anyone on the move. True False 6-The primary application of Blackberry is instant messaging. True False 3-The two solutions that were necessary for mobile wireless computing to be feasible were computers that were small enough to be carried easily and long-life batteries. execute a program on a server computer. for adding functionalities. servers. PDA sales dropped in the mid-2000 because PDAs lacked features beyond personal information management. True False 5-Overall. one can create EC applications that are not available with wireline systems. Chapter 9 Mobile Computing and Commerce 1-Using wireless technologies.multichannel on one computer to collaboration applications. True False . True False 4-A laptop or notebook computer can become wireless with the addition of a cellular chip.

and restricted input capabilities. True False 12-The Wireless Application Protocol. jog dial. mini-joystick. True False 10-Common standards for various mobile devices simplify the development of software applications for wireless devices. is a suite of network protocols designed to enable different kinds of wireless devices to access WAP-readable files on an Internetconnected Web server. True False 13-The WAP gateway is a server that is responsible for translating information requests from the device into an HTTP request that the Web server can understand. True False 11-Small handheld computing devices use a variety of interface approaches including a touch screen. and thumb wheel. or WAP. True False . reduced memory.7-Hardware and software designers need to consider the special requirements of mobile devices such as small screens. True False 9-The infrastructure to support mobile commerce is inexpensive and relatively simple to put in place. True False 8-A Web server may need two versions of the same Web page–a normal page with full graphics for desktop computers and a mobile page for PDAs and smartphones–and a way to distinguish between devices requesting the Web page. limited bandwidth.

802. but has interference problems.11b is being used in commercial environments where cost is not a major issue and where laptop computers can take advantage of the 54 Mbps transfer rate. but which suffers from interference and security problems. True False 15-Increased use of voice-support services exploits the built-in audio capabilities of many mobile devices and reduces their dependence on unsatisfactory input solutions. which is a Web site with an audio interface that can be accessed through a telephone call. True False 19-A common type of personal area network (PAN) is Bluetooth-enabled headsets that people use with their cell phones. True False . such as handwriting recognition. True False 20-Increasingly.14-Micropayments for small-purchase amounts of less than $10 have become widespread in EC.11b. True False 18-The most popular Wi-Fi standard is 802. in part because of the widespread use of all types of mobile devices. True False 17-WiFi is a set of telecommunications standards that enables wireless devices to communicate with each other over short distances. True False 16-The highest level of voice support services is a voice portal. or virtual touch-screen keyboards. keypads. which is inexpensive and offers sufficient speed for most devices.

True False 22-Even though micro-payment technology has wide-ranging applications. True False 23-The two greatest opportunities in B2B mobile commerce are to use wireless communication to share information along the supply chain and to make electronic payments. loss of privacy. hardware and software infrastructures. This is an example of Global Positioning Systems (GPS).16 wireless standard for making broadband network access widely available for data and voice over a medium-sized area.21-WiMax is an IEEE 802. such as making payments to parking garages and public transportation. infrastructure support cell phones. the hotel can determine when guests leave the hotel. True False 26-M-commerce transactions and activities require ________ and ________. two factors limiting the success of micro-payment applications are transaction costs and nonpayment risks. access points 27-Infrastructures that support the wireless connection are: . and potential health damage from cellular radio frequency emissions. and whose impact on ecommerce is still unclear. Also. portable computers switches wired networks. True False 25-Several key ethical issues in m-commerce include isolation. luring them back to gamble with mobile incentives and pitches. True False 24-In Las Vegas. smartphones. the Luxor pre-registers guests when their airplane lands and they turn on their cell phones.

and cellular transmitters. Palm or Wintel notebook is called: a mobile application user interface. WAP GPS SMS PDA . and portable computers. and and cellular transmitters and microbrowsers. a mobile application user interface. network access points. a mobile operating system. mobile web servers. receivers. mobile communications server switches. Wireless Application Protocol. receivers. 28-Components of a wireless infrastructure that support delivery of services over a wireless connection are: WAP gateways. marking docking 31-A suite of network protocols designed to enable different kinds of wireless devices is called: Wireless Application Protocol. 32-The application logic in a handheld PDA. and GPS satellites. smart phone. wireless middleware. GPS locators. and portable computers. mobile communications server switches.PDAs. wireless middleware. network access points. WAP gateways. and GPS satellites. smartphones. 29-Characteristics of mobile devices that create special requirements that hardware and software designers need to anticipate when designing mobile computing systems include all of the following EXCEPT: restricted input capabilities small screens broad bandwidth reduced memory 30-The exchange of updated information with other computing devices is called: data transferring synchronization. devices. and devices. 33-________ enables the determination of the location of an enabled device. a mobile operating system. microbrowsers. smartphones. mobile PDAs. web servers. GPS locators.

Bluetooth WLAN. that are less than $1.00. such as a single room.11.11g 802. which is more commonly called ________.11b 802. The single WWAN network standard insures compatibility of handsets within and between countries. 802. that are less than $10.00.16. . a SIM card inside the device identifies itself to the WWAN. hotspot IEEE 802. At the center of each cell is a base station transceiver or cell tower that is used to send and receive signals to and from mobile devices operating within the cell. which makes it impractical because it exceeds the limits of most broadband connections used by homes and small businesses.00.11n 802. Wi-Fi 38-The IEEE standard ________ offers bandwidth transfer rates of 200 to 540 Mbps. IEEE 802.34-Rick sends a message from a delayed flight to his friend on her cell phone that he will be arriving late. WiMax IEEE 802. and most commonly with Bluetooth. 36-A ________ is suitable for mobile users who need to make very short-range device-todevice wireless connections within a small space. The service that allows the sending and receiving of such short text messages on mobile phones is called: SMS LOL TMG MSG 35-Micropayments are electronic payments: that are less than $100.11. wireless area network local area network Wi-Fi area network personal area network 37-Most WLANs run on a telecommunications standard known as ________. from a mobile device. Most WWANs are cellular phone networks.16 39-All of the following about wireless wide area networks (WWAN) are true EXCEPT: When a device is turned on.

40-The major attributes that enable development of new applications that are possible only in a mobile environment include all of the following EXCEPT: Ubiquity Security Personalization Localization 41-The development of m-commerce is being driven by the following technological. customer relationship management vendor management supply chain management inventory management . and economic factors EXCEPT: The improved price/performance of mobile services. 42-As in e-commerce. leads. and delivery scheduling. social. business. The widespread availability of more powerful wireless devices. 45-Mobile access supports the two functions of sales force mobilization and field service. m-commerce B2C applications are concentrated in each of the following areas EXCEPT: retail shopping for products and services telecommunications targeted advertising providing content for a fee through mobile portals 43-The major enterprise mobile applications are all of the following EXCEPT: logistics and supply chain e-mail and cell phone research and contacts development customer relations and sales force automation 44-By enabling sales force employees to record orders in real time. The growth of a handset culture and mobile workforce. The transition to a manufacturing economy. more extensive collaboration fewer data improved manufacturing and sharing of customer entry errors. the organization benefits through each of the following EXCEPT: lower clerical and administrative overhead. which extends the reach of ________ to both employees and business partners on a 24/7 basis to any place where recipients are located.

analyzing.46-One way to share information with supply chain partners is wireless ________. or Timing. viable technology. There are presently not Wireless enough location-based bandwidth is systems to make this a limited. specific location or thing. 48-All of the following are barriers to location-based m-commerce EXCEPT: Consumers see constant location data transmissions as a violation of privacy." This is an example of: . or monitoring the the precise time at a a route from one determining the movement of a person location to another. or plotting Geocaching. 50-A(n) ________ is a computer system capable of integrating. or determining Navigation. topography of an area. Wearable heart monitors linked to a cell phone can automatically contact doctors or family members at the first sign of health problems. volume. Prescriptions can be transferred electronically to the appropriate pharmacy for a no-wait pick-up by the patient. The accuracy of location technologies is often less than consumers expect. which is the science of measuring physical phenomena such as temperature. and displaying spatial information. editing. geographical information system on-star system l-commerce system global positioning system 51-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. Reduced threat of malpractice suits because there is no hands-on interaction between the remote physician and the patient. or an on/off condition at a remote point and transmitting the value to a distant recorder or observer. storing. 49-The services provided through location-based m-commerce focus on key factors which include all of the following EXCEPT: Tracking. telemetry RFID mobilization osmosis 47-WiMax and 3G wireless mobile technologies offer telemedicine application opportunities that include all of the following EXCEPT: Real-time consultation between a patient in one location and a medical specialist in another. sharing.

and plastic at a range of up to 100 feet. An RFID reader contains a radio transmitter and receiver. which identifies the manufacturer. version. Remote telemetry E-911 Telematics Mobility 53-Many experts believe that the next major step in the evolution of computing will be ________ in which almost every object will have processing power and a wired or wireless connection to a network. and the tag can be read through cardboard. True False . 55-One initiative underway that could lead to widespread support for the introduction of RFID is the ________. producer. wood. An RFID tag remains inactive until radio frequency energy from the tag's radio transmitter hits its antenna. Smart Product Network Electronic Product Code Universal Product Code Sensor Network Chapter 10 Dynamic Trading 1-The Internet provides an infrastructure for executing auctions with many more participating sellers and buyers than with offline auctions. An RFID tag includes an antenna and a chip with information about the item. giving the chip enough power to emit a 96-bit string of information. universal computing mobile computing persistent computing pervasive computing 54-All of the following about RFID are true EXCEPT: An RFID tag can hold 20 times the amount of information a bar code can hold. but administrative costs are higher. and serial number of each item and does not require line-of-sight contact to be read.location-based advertising mcommerce customer relationship management permission marketing 52-________ refers to the integration of computers and wireless communications in order to improve information flow.

2-In some types of auctions. True False 6-A popular type of auction model where there is one buyer and many potential sellers is the "name-your price" model that was pioneered by eBay. buyers post their product sellers can gain more customer dollars by offering items directly rather than through an expensive intermediary or by using an expensive physical auction. True False 5-B2B reverse auctions are gaining popularity as an online mechanism for buying goods and services. True False 7-An auction that takes place between sellers and buyers in one industry or for one commodity is called a vertical auction because activity goes up and down the supply chain in a single industry. . True False 4-Reverse auctions have two major purposes: liquidation and market efficiency. True False 8-Specialized sites for vertical auctions are referred to as auction vortals. True False 3-Dynamic pricing refers to a transaction in which the price is not fixed. but fluctuates based on current supply-and-demand relationships. sellers offer product. and in other types of auctions. True False 9-Through e-auctions. rather than horizontally between members of supply chains in different industries.

True False 14-Barter agents are software that can support the back-and-forth process of online negotiation. True False 12-Entering a high bid without ever planning to pay for the auction item is called sniping. True False 16-Prices paid in online auctions are lower when auctions are an alternative selling channel rather than an exclusive selling arrangement. which is the back-and-forth process of bargaining until a buyer and seller reach a mutually agreeable price. True False 13-In addition to auctions. True False 11-The "name-your-own-price" model is based on the fundamental concept of the downward-sloping supply curve in which prices vary based on supply. dynamic prices can be determined by online negotiation.True False 10-A major benefit of e-auctions is the reduced rate of fraud because of the openness of the transaction. True False . True False 15-Double-auction markets tend to generate competitive outcomes because a double auction is an interactive market in which both buyers and sellers are competitive.

True False 20-Third-party escrow services are used for products valued at more than $200 to protect both the buyer and seller when either the buyer or seller feels the need for additional security. True False . True False 18-Bid shielding is a type of e-auction fraud where sellers place phantom bidders to bid up the price of items they are selling and hide (shield) low bids by actual potential buyers. one of the strategic issues in B2B is the potential conflict with existing distributors and distribution channels. refurbished. True False 23-WineryExchange successfully auctioned grapes to wineries. True False 21-When a company decides to use auctions as a sales channel. Therefore.17-Negotiating prices transfers the burden of determining prices to the market itself so the resulting negotiated prices will always be fair and effective. True False 22-The process of building auction applications is easy because of intelligent agents and other building tools. True False 19-Specialized authentication services are very effective and widely used to determine whether an item is genuine and described correctly as a way to protect against counterfeit products. some companies use auctions only to liquidate obsolete. used. which ended the tradition of sales being based on established relationships between grape growers and wineries. or damaged products.

one. many sellers sellers one-buyer. one buyer. negotiated. many potential one-buyer.This type of strategic alliance will be very popular due to its win win possibilities. many buyers sellers 30-Two purposes of a type of ________ auctions are liquidation and market efficiency. by market forces. one buyer. prices that prices that are maximize revenue. mechanism. many potential many buyers. 27-Dynamic pricing refers to : prices that are determined prices that are regulated by government agencies. They are an established method They are suitable for They are a market of commerce for generations. True False 26-Auctions are all of the following EXCEPT: They are a marketing channel. many potential many buyers. Forward auctions Dynamic exchanges Reverse auctions Bartering 29-The ________ auction model is popular in B2B.24-Privacy is one of the benefits of mobile auctions because the Internet cell phone is more private than a seller. 28-________ work best with many buyers and many sellers. most consumer goods. onesellers seller one seller. True False 25-Auctions may be used as a strategic tool by both online and offline companies. many potential seller buyers .

many potential many buyers. and so on. such as flowers. cars. many potential seller buyers sellers 34-A(n) ________ takes place between sellers and buyers in one industry or for one commodity. one. near-perfect market information is available about prices. many potential one-buyer. many potential one seller. This feature provides benefits to ________.31-Reverse auctions are a type of ________ auctions. vertical auction exchange open auction negotiation vortal 35-All of the following are potential benefits from auctions to sellers EXCEPT: sellers can liquidate large sellers receive valuable auctions can broaden the sellers are always quantities of obsolete price sensitivity customer base and anonymous. many potential buyers 32-The "name-your own-price" model pioneered by Priceline. one. many sellers one buyer. is a type of ________ seller. onebuyers seller sellers 33-Auctions done in exchanges or double auctions are ________ auctions. many buyers. 36-In electronic auctions. reduce cycle time. current supply and demand. or cattle. many buyers. one-buyer. products. items very quickly. many potential one buyer. many seller sellers sellers one seller. many sellers buyer. sellers buyers buyers and sellers companies and individuals 37-Benefits of electronics auctions (e-auctions) to sellers include all of the following EXCEPT: Anonymity Lower transaction and administrative costs Larger reach and increased revenues Removal of expensive intermediaries .

pricing agents. lower higher dynamic the same . 43-Compared to competitive markets. registration and participants' profiles. 41-The first step in the auction process is: preparing the bids. searching and comparing. arranging financing. the same higher lower dynamic 44-Compared to competitive markets. fail more often than reach critical mass more other models. auction prices are often ________ when there are very few bidders.38-________ refers to the tendency of customers to stay at Web sites longer and come back more often. This is referred to as: sniping. slowly than other models. 42-Jackie uses a software system to place bids automatically on her behalf until her predetermined maximum price is reached. Loyalty Frequent purchase Stickiness High repeat 39-Limitations of e-auctions include all of the following EXCEPT: Risk of fraud Higher order fulfillment costs Long cycle time Dynamic pricing 40-Research has shown that e-commerce sites that use an auction model tend to: reach critical mass more quickly become liquid. proxy bidding. The software bids in such a way as to minimize the final bid. auction prices are often ________ when there are multiple bidders. than catalog-order-based. bidding agents.

sniping. 51-Each of the following is one of the three major categories of auction rules EXCEPT: . 47-Bidders sometimes use phantom bidders to drive bid prices up rapidly at the beginning of an auction. the risk of fraud. payment delays. thus discouraging bidding from legitimate bidders. bid fixing. bid fixing. shilling. authentication. two different authenticators may come up with different opinions regarding the authenticity and description of a given item. sniping. dishonest authenticators are the primary sources of fraud on the Internet. unreliable auction software. most auction sites forbid the use of authentication services. 49-A major shortcoming with authentication services is: it is impossible to tell whether many items are reproductions or genuine. bid shielding. fees. 48-John wants to know if the first edition novel he just purchased through an e-auction is actually a first edition. the phantom bidders pull out. physical auctions. auction. The auction host helps him locate an expert that will tell him whether the novel is a genuine first edition or a fake. 46-The practice by sellers of having associates place fake bids in an auction as a way to drive up the selling price is called: bid shielding.45-The most serious disadvantage of e-auctions is: logistics. which awards the item to a very low bidding customer. verification. This practice is called: shilling. This is an example of: certification. At the last minute. 50-Many companies use intermediaries or trading assistants instead of implementing eauctions themselves for each of the following reasons EXCEPT: To bring many Costs of auction intermediaries or To avoid tax The company name is more buyers to the assistants are less than the costs of and legal not widely recognized. integrity.

54-Many auction sites are implementing ________ because of the significant increase in the number of users who browse the Internet wirelessly. systems. Chapter 11 E-Commerce Security 1-Fraud refers to a business activity that relies on force or threats to deprive a person or company of property or other assets.timing rules clearing rules bidding rules information-revelation rules. m-commerce applications instant message notification authentication vortals 55-The limitations of mobile auctions are all of the following EXCEPT: Internet-enabled Internet cell phones have limited phones are less private than a PC. the number of auctions must be integrated with auctions must needed features can the legacy systems of provide payment be very large. The success of auctions depends on complying with auction rules. . Portable devices are small and may have a problem showing pictures of auction items. True False 2-The trend in online crimes shows that most new scammers and other con artists are not computer geniuses. participating companies. 53-The process of building auction applications is complex for all of the following reasons EXCEPT: auctions must be integrated with the back-end offices. prevent fraud. Rules are intended to Auction rules vary from smooth the auction country to country due to mechanism and to legal considerations. memory capacity Wireless systems are not as safe as wireline ones. 52-Each of the following is true about auction rules EXCEPT: Rules eliminate conflicts with existing distributors and distribution channels.

Web site. and denial of service to authorized users. True False 4-Defending against online cons and compensating for the damages caused by identity thieves have significantly increased the costs of EC. e-mail. True False 6-An EC security strategy consists of firewalls and other types of technology to prevent and detect unauthorized use of the organization's brand. True False 9-Credit card issuers want to cooperate and share leads on criminal activity with each other and law enforcement even though prosecution with an uncertain outcome. True False 8-The EC industry ranks security over convenience. . information. So the EC industry strives to enforce safeguards.True False 3-Identity theft has become the primary concern of online shoppers. True False 7-Information assurance broadly refers to the protection of information systems against unauthorized access to information. EC retailers need to authenticate the buyer. identity. that make online shopping safer even if those safeguards make it more inconvenient for customers. True False 5-To minimize the risk of fraud from phishing and crimeware. or other asset. such as passwords for credit card transactions. unauthorized modification of information.

S. True False 16-Experts believe that a strict e-business risk management program that was rigorously managed could not have prevented many of the data breaches. True False 15-Because of the lack of source authentication and data integrity checking in DNS operations. Web hosting providers log all activity so. two of the top five reported vulnerabilities were within Web applications.True False 10-Most U. in most cases. Internet services are vulnerable to attacks. True False . True False 11-Requiring stronger EC standards and information sharing by the credit card companies would not fix the security problems facing online retailers and shoppers. True False 14-The legal standard of due care requires that a company take reasonable care to defend against risks affecting its EC business and online transactions. True False 12-Spammers use zombie computers to distribute spam because it is both cheaper and less risky. they can identify the source IP address and source ISP with timestamps and other identifying information. True False 13-According to the Mitre Corporation's list of Common Vulnerabilities and Exposures.

the success and security of EC depends on the confidentiality. True False 22-The time-to-exploitation. True False 18-According to the CIA security triad.17-EC security programs have a life cycle during which their EC security requirements must be evaluated and adjusted annually. of most sophisticated spyware and worms has decreased from several months to a few weeks. and accessibility of information and the business Web site. botnet attacks are less dangerous because they cannot disrupt a web site or EC application. True False 21-Phishing attacks rely on social engineering. integrity. True False 23-Unlike denial of service (DOS) attacks. True False . which is the elapsed time between when a vulnerability is discovered and the time it is exploited. True False 20-The FTC. which is a nontechnical attack that uses something to trick users into revealing information or performing an action that compromises a computer or network. True False 19-Nonrepudiation is closely associated with authentication and assures that an online customer or trading partner cannot falsely deny their purchase or transaction. SEC and other government agencies cannot impose harsh penalties on companies whose confidential data has been breached unless a company employee caused the breach.

and Anti-Phishing Working Group. The High-Tech Crime Network. agencies dedicated to eliminating fraud resulting from phishing and crimeware are: The High-Tech Crime The Group of Network. 28-The U. a majority of potential customers do not shop online because they are too afraid of fraud to trust online merchants. and Federal Trade Commission. VeriSign. defending against these cons and compensating for damages significantly increase the costs of EC. Growth in EC sales and the number of shoppers with higher incomes. Phishing Working and NameProtect. True False 25-Virtual private networks (VPNs) are a special category of software that can monitor activity across a network or on a host computer. Group. True False 26-The incidence of online fraud and identify theft has increased for each of the following reasons except: New effective phishing Information is today's scams and schemes most valuable form of being carried out by international currency. Scammers outsourcing work to programmers to seize control of computers or wireless networks. companies cannot expand their e-business to other countries with underdeveloped legal systems. and Internet Research Lab. 27-Cyber cons have a negative effect on EC because con artists have gone low-tech. watch for suspicious activity. Anti-Phishing Working Group. computer experts.S. High-Tech Crime Network. 29-________ is a crimeware technique used to steal the identity of target companies to get the identities of their customers.24-The ability of a biometric system to identify a person depends on the existence of database of enrolled users that is searched for a match based on the person's biometric trait. . The Computer Security Institute. AntiEight. and take automated action based on what it sees.

33-A vulnerability is the estimated cost. or Argentina. In the G8 countries. the data itself may not be secure because the application may not function as planned. loss. Strong EC security makes Sophisticated hackers online shopping use browsers to crack inconvenient and into Web sites. 31-The key reasons why EC criminals cannot be stopped include each of the following except: Lack of cooperation from credit card issuers and foreign ISPs. a system or network. India. Brazil. China. possibly as high as 95 percent. demanding on customers. vulnerability. or Russia. and disaster recovery plans. Germany. the data itself may not be secure because backend databases may not function as planned. the data itself is secured by firewalls. Phishing. Many companies fail to implement basic IT security management best practices. 34-The underlying reasons why a comprehensive EC security strategy is needed include all of the following except: Managers treating EC security as a process. is a or damage that can result if software a threat exploits a bug. malicious intent. is a weakness in software or is the probability other mechanisms that a hacker that a weakness will can use directly to gain access to be known and used. Pretexting. . The Internet was designed The shift for maximum efficiency toward profitwithout regard for its motivated security or users with crimes. Romania. Spamming.Social engineering. In South America. then the data itself is secure because web applications are not targeted by attackers. 30-Where do a huge majority. of hackers reside? Turkey. business continuity plans. Online shoppers do not take necessary precautions to avoid becoming a victim. 32-It is currently known that if a front-end application such as a Web site is effectively secured.

confidentiality. authorization. 38-Digital signatures or digital certificates: are used to validate the sender and time stamp of the transaction so it cannot be later claimed that the transaction was unauthorized or invalid. information assurance. and nonrepudiation encryption. depends on the trust and confidence of customers. protects against unauthorized transactions and overrides of accounting controls. provide complete a confidence that the and transactions are secure. functionality. have been compromised by phishers and spammers.35-The protection of information systems against unauthorized access to or modification of information that is stored. Information assurance. an acceptable use policy (AUP) needs to specify rules for to inform all users of their to be written by to be incorporated . confidentiality. authentication. nonrepudiation. or being sent over a network is referred to as ________. financial. confidentiality. b 39-The most cost-effective approach to EC security is to develop and implement a strategy that requires digital signatures or digital certificates for all transactions. and authorization. authentication. and privacy quality. and availability. nonrepudiation. and information assurance. processed. Information defense. reliability. and and availability speed 37-The basic security concepts relating to customers and other users are: authorization. Information security triad. marketing and operational requirements. and authentication. proactively meets regulatory. integrity. integrity. 40-To be effective. Information integrity. 36-The success and security of EC depends on the ________ of information and the business Web site.

43-Social engineering attacks are: no longer considered to be serious Internet threats due to the increased security of MySpace. service attack. enables a malicious Web master to displace the pages of an EC Web site in the Search Engine Results Pages (SERPS) to redirect customers to another site. LinkedIn. 45-A botnet is: .firewalls. wikis and RSS attacks. 41-In 2005. causes a high enables online volume of gambling that are search engine actually fronts for traffic similar to international money a denial of laundering operations. and YouTube. and systems. projects and intrusion detection proposals. access control responsibilities when using the company's into business lists. human error was responsible for almost ________ percent information security breaches in organizations. equipment. an example of technical attacks requiring software or systems knowledge. wireless devices. 40 10 20 60 42-Which of the following statements about hardware and software security defenses is false? After the EC security program and policies are defined and risk assessment completed. If firewalls and There is no antivirus software are single hardware not upgraded and or software monitored solution for all constantly. take advantage of Web are a combination 2. then the software and hardware needed to support and enforce them can be put in place. computer legal department. Hardware and software security defenses protect against irresponsible business practices or corrupt management. nontechnical blogs. 44-A technique known as web page hijacking downloads what appears to be an "important document. customer data. and company networks. feeds. a program that gives the sender control of the infected machine. they will companies." but which contains a trojan. not remain useful.0 applications like of technical and social networking sites. monitoring.

was invented by Microsoft to use standard certificates for authentication and data encryption to ensure privacy or confidentiality. is one of the major generally accepted protocols for securing ecommerce used by Microsoft and Netscape. that is based on the Data Encryption Standard. a piece of code in a worm that spreads rapidly and exploits some known vulnerability. . government agencies. Plastic cards with magnetic strips. and network login IDs. 48-Secure Socket Layer (SSL). a collection of a few hundred hijacked Internet computers that have been set up to forward traffic. that has become the cornerstone for secure e-payments and intranet applications. and biometric systems. a coordinated network of computers that can scan for and compromise other computers and launch DOS attacks. the policy of role-specific security the policy of need-toacceptable use protocols where know where access where access is access is limited by a by all non-employees restricted by the user's level of trust. 47-Public key infrastructure (PKI) is an authentication method that encrypts and decrypts large amounts of data effectively. that uses encryption keys ranging from 64 bits to 128 bits. which is the standard symmetric encryption algorithm supported by U. tokens. ACLs.S.a piece of software code that inserts itself into a host or operating system to launch DOS attacks. AUPs. 49-Access to a network ought to be based on: the policy of least privilege where access to network resources are blocked and permitted only when needed to conduct business. is blocked. 46-Which technologies are designed and used to secure EC communications across a network? PINs. and progressive tokens. which is also known as Transport Layer Security (TLS): is designed to handle all steps in the validation of credit card numbers. including spam and viruses. has been replaced by certificate authorities. passwords. intrusion detection systems. to other computers on the Internet. cryptocards. Access control lists. firewall. and point-of-sale systems.

and files that been tampered with or look like production whether a user has attempted to access files that systems. Uses rules to analyze suspicious activity at the perimeter of a network or at key locations in the network . which helps hide their identity.50-Which of the following does not correctly describe what firewalls protect against? Some programs have bugs or special features that create application backdoors. network. 54-A host-based intrusion detection system (IDS): Resides on the server that is Consists of information system resources– being monitored where it can detect whether critical firewalls. Remote users can use broadband connections rather than make long distance calls to access an organization's private network. They help control inbound traffic to a network. but do no real he or she is not authorized to work. bastion gateways. application-level proxies. 51-Firewalls that filter requests from the Internet to a private network based on the IP address of the computer sending or receiving those requests are called: packet-filtering routers. database servers. routers. Can perform certain actions when an attack occurs. They hide the IP addresses They help control of a company's internal outbound traffic to a computers. Web or security-related files have servers. They are less expensive than private leased lines because they use the public Internet to carry information. Macros are the electronic equivalent of junk mail. such as terminating network connections based on security policies. They ensure the confidentiality and integrity of the data transmitted over the Internet without requiring encyption. which allowing for remote access. 52-All of the following are important security functions of proxy servers except: They improve network performance. Remote logins occur when an unauthorized users connects to a PC and gains control of it. Spammers often use SMTP session hijacking to redirect email through the SMTP server of an unsuspecting host. IP blockers. 53-The advantages of virtual private networks (VPN) for data communications include all of the following except: They can reduce communication costs dramatically because VPN equipment is cheaper than other remote solutions.

Trap. special e-payment methods. The USA PATRIOT Act and CFAA Chapter 12 Electronic Payment Systems 1-E-payment systems that require the payer to install specialized security software have proven more likely to succeed. True False 4-E-payment methods that can address the lower or higher end of the price continuum is unlikely to be widely accepted because of cost and security issues. the systems must determine whether a buyer's card is active and whether the cardholder has sufficient funds available for the purchase.use. have to maintain anonymity. 55-In the United States. True False 2-The success of an e-payment method depends on its interoperability with existing enterprise systems and applications. . such as e-cash. and Trace Devices statute The Computer Fraud and Abuse Act (CFAA) and the First Amendment. True False 5-Credit cards and charge cards are e payment instruments that allow the holder to make purchases up to a fixed limit and charges interest each month on unpaid balances. which the federal laws place legal limits on monitoring activity? The Wiretap Act and CFAA The Wiretap Act and the Pen Register. True False 6-In the settlement process. True False 3-To succeed.

customers. True False 9-In the authorization process. merchants are not held liable for fraudulent transactions. the money for a purchased item comes directly out of the holder's checking account with the actual transfer of funds from the holder's account to the merchant's taking place within one to two days. and financial networks that enable authorization and payments. True False . the systems determines whether a buyer's card is active and the customer has sufficient available credit line or funds. True False 10-For a given type of payment card and processing system. the processes and participants are essentially the same for off-line (card present) and online (card not present) purchases.True False 7-With a debit card. True False 12-In the online world. True False 13-Recent surveys by CyberSource indicate that fraudulent card transactions are a growing problem for online merchants in spite of their increasing efforts to combat fraud despite improved anti-fraud measures. True False 8-The processing of card payments has two major phases: identification and settlement. True False 11-CyberSource and VeriSign are payment processing services that provide connectivity among merchants.

True False 19-Stored-value cards are being marketed heavily to the those who do not have credit cards or do not have bank accounts. True False 15-One problem with the Address Verification System (AVS) for fraud prevention is the number of false positives. True False . True False 17-With virtual credit cards. specifically people with low incomes. the issuer must create a new credit card number for every purchase. meaning that the merchant rejects a valid order. True False 16-One impact of anti-fraud tools is that merchants are rejecting a significant number of both valid and invalid orders due to suspicion of fraud. many of these services are aimed at those establishments where payments are usually made in cash and speed and convenience are important. In the retail arena. larger firms were more susceptible to fraud than smaller firms were.14-Because of their visibility and large sales volumes. minorities. and others. young adults. smart cards are more secure than credit cards and can be extended with other payment services. True False 18-In most cases. seniors. One reason for these rejects is simply that cardholders make mistakes in inputting their addresses or zip codes. immigrants.

credit card. True False 23-EIPP is the process by which companies present invoices and make payments to one another.20-Regardless of the vendor's point of view. True False 24-With letters of credit. there is substantial evidence. and debit card. applications . interoperability with other full traceability of hardware and software enterprise systems and independence. True False 25-Research shows that state and local governments are losing more than $100 billion per year in sales tax revenue on items purchased over the Internet. at least in the offline world. the buyers. two advantages of e-billing are the reduction in expenses related to billing and processing payments and the ability for advertising customized to each individual customer. True False 21-E-checks rely on current business and banking practices and can be used by any sized business that has a checking account. True False 22-From the perspective of the billing firm. credit risk is reduced because payment is accessed via the creditworthiness of the issuing bank. that consumers are not willing to use their credit or debit cards for micropayments under $5 to minimize security risks. True False 26-Factors that come into play in determining whether a particular method of e-payment achieves critical mass include all of the following EXCEPT: the degree of security of the transfer.

settlement. charge card. customers. debit card 28-A payment card that provides the holder with credit to make purchases up to a limit fixed by the card company and charges relatively high interest rates on unpaid balances is the: e-payment card. procurement. Payment processing services Credit card associations Issuing banks Acquiring banks 32-________ are financial institutions that provides a customer with a payment card. charge card credit card. 31-________ offer Internet Merchant Accounts.27-A card that draws the payment amount directly from the user's checking account is called a(n): e-payment card. 29-The process of determining whether a card is active and whether the customer has sufficient funds for the purchase is called: settlement. procurement. authorization. and financial networks enabling authorization and payments is called the: Credit card associations Payment processing services Acquiring banks Issuing banks 34-________ are small online payments typically under US$10: . which are special accounts for credit card authorization and payment processing. debit card. credit card. approval. 30-The transfer of money from the buyer's to the seller's account is called: authorization. approval. Acquiring banks Payment processing services Issuing banks Credit card associations 33-________ provide connectivity among merchants.

all of the following are advantages of e-billing EXCEPT: reduced processing expense. 37-Each of the following are ways to pay bills over the Internet EXCEPT: biller direct. 38-From the perspective of the billing firm. and so require industry. 36-The nationwide batch-oriented electronic funds transfer system that provides for interbank clearing of electronic payments for participating financial institutions is called the: Automated Clearinghouse Network. 39-From the perspective of the customer. by individuals. systems. improved customer service. than B2C payments. little process reengineering. bill consolidator. Receiving Depository Financial Institution Federal Reserve System. . customer service provider. simplifies and centralizes payment processing. to resolve. opportunity for targeted advertising. 40-Characteristics of B2B payments include all of the following EXCEPT: They are more likely to They are much They are significantly They require less involve disputes that larger than payments more complex than rigor and security require significant rework payments by individuals. traditional paper checks. lower costs. makes record keeping easier. online banking.E-smart payments E-micropayments E-minipayments E-cash 35-An advantage of e-checks is that they: operate outside the involve complex contain much more fit current business traditional banking internal processing information then practices. electronic bill presentment and payment network. all of the following are advantages of e-billing EXCEPT: greater security than other types of payments. universal availability.

presentment and payment processes are all of the following EXCEPT: costly. ________ characterize the financial supply chains of most companies. electronic data interchange. accounting systems. 46-The process by which companies present invoices and make payments to one another through the Internet is known as: enterprise invoice presentment online accounts payable. . online accounts receivable. contract administration. sufficient remittance information. and payment. secure. error-prone. procurement. financial reporting.41-B2B payments are part of a much larger financial supply chain that includes all of the following EXCEPT: payment authorization. 42-In financial supply chain management. a lack of integration of inability of trading partners to send a shortage payment and or receive electronic payments with of IT staff. 47-For many firms. 45-Barriers inhibiting B2B electronic payment include all of the following EXCEPT: strict standard formats for remittance information. the goal is to optimize all of the following EXCEPT: accounts receivable the physical supply chain accounts payable financial risks 43-Unlike the physical supply chain. check. made using electronic funds transfer (EFT) made with letters of still made by paper credit. greater accuracy efficiencies transparency inefficiencies 44-The vast majority of B2B payments are: electronic payments. time consuming.

ACH network Seller direct Buyer direct Consolidator 50-Among the forms of online B2B payments. cash flow. or wire transfer 51-All of the following are advantages of using purchase cards EXCEPT: purchasing departments report productivity gains. country. 52-In global trade. improved data that can lower improved invoice processing costs. letter of credit micropayment bank check trade card payment 53-All of the following are benefits of letters of credit (LCs) EXCEPT: Payment is assured if all the terms in the LC are complied with. 49-________ is an EIPP many-to-many model with a third party acting as an intermediary. bills are consolidated into a single payment. food. on account of the buyer. Credit risk is reduced because payment is accessed via the creditworthiness of the issuing bank. a sum of money upon presentation of certain documents. 54-The current Internet sales tax moratorium in the United States applies to: all retail sales all B2B clothing. Political risk is reduced LCs are cheap if the LC is confirmed and easy to by a bank in the seller's establish.48-According to a survey by Credit Research Foundation. ________ is second only to ACH in terms of frequency of use. they are widely accepted in international trade. collecting or aggregating invoices from multiple sellers and payments from multiple buyers. the major reasons companies turn to EIPP solutions are all of the following EXCEPT: elimination of billing disputes better customer service for billing and remittance. letters of credit purchasing cards CTX Fedwire. a ________ is a written agreement by a bank to pay the seller. and all sales made over the Internet if the . improved control.

they verify shipping addresses. accounting. of government regulations. tax laws rarely change. True False 3-Both EC and traditional retailing are based on the concept of "pull" operations that begin with an order from a customer. True False 2-Amazon. sales only. pharmaceuticals only. True False 5-Front-office operations are the activities that support fulfillment of orders. such as packing. and providing all related customer services. True False . True False 4-Order fulfillment involves activities such as providing customers with what they have initially operated as a totally virtual company. seller has no physical presence in the state where the buyer lives. and logistics. delivering orders on time.made over the Internet. delivery. but had to add physical warehouses with thousands of employees in order to expedite deliveries and reduce order fulfillment costs. 55-Many B2C and B2B businesses rely on specialized third-party software and services to calculate the taxes associated with a sale because: of the complexities. Chapter 13 Order Fulfillment 1-The implementation of most EC applications requires the use of support services.

is lower for EC than for off-line commerce because of more advanced logistics support. True False 13-The chance of supply chain problems. True False 10-The order fulfillment processes for B2B and B2C activities are similar. True False 9-When a customer returns items that have been ordered. True False 8-In B2C. customers usually validate that they will pay by prepaying using a credit card. True False 7-The EC order fulfillment process begins when an order is received and verified as being a real order. the series of activities involved in that return are called return logistics. . Elogistics shipments typically are small parcels sent to many customers' homes. services. such as shipping the wrong items. and related information from point of origin to point of consumption. True False 11-The major difference between e-logistics and traditional logistics is that traditional logistics deal with the movement of large amounts of materials to a few destinations.6-Back-office operations are the operations involved in the efficient and effective flow and storage of goods. True False 12-The inability to deliver products on time is a typical problem in both off-line and online commerce.

such as errors in demand forecasting. True False 18-B2C fulfillment may be more complex than that of B2B because it has at least six dimensions of complexity rather than only two. True False 16-Uncertainties in delivery time are a major cause of order fulfillment problems. and business partners. . jeopardize order fulfillment. internal units. RFID can help by locating shipments in real time to minimize delays and enhance customer service. the better. the Internet. The lower the density value. True False 19-High delivery costs are justified only if there is a high concentration of orders from customers located in close proximity or if the value of the order is large enough. True False 17-The B2C order-taking process can be improved when it is done via EDI. or an extranet. EDI/Internet. True False 15-Many problems along the EC supply chain stem from two sources: uncertainties in forecasting demand and the need to coordinate several activities. True False 20-Delivery-value density is a decision support tool that helps determine whether it is economical to deliver goods to a neighborhood area in one trip.True False 14-Supply chain problems.

To derive these benefits. and self-configuration.True False 21-According to researchers. and faster delivery. True False 22-The integration of ERP and CRM must include low-level data synchronization as well as business process integration so that the integrity of business roles can be maintained across systems and workflow tasks can pass between the systems. and technology infrastructure lead to CRM success. frequently a ________ order. and payment 27-Most EC applications are based on ________ that begin with an order. . culture. better marketing strategies. delivery. FAQs. True False 23-Benefits of CRM analytics lead to better customer relations in terms of sales and service. True False 25-Data mining is an important analytic activity that involves sifting through an immense amount of data to discover previously unknown patterns that can guide improvements in order-fulfillment and CRM efforts. top management commitment. lower inventory. True False 26-The implementation of most EC applications requires the use of all of the following support services EXCEPT: infrastructure and technology security manufacturing order fulfillment. it is necessary to properly collect and analyze relevant customer data. True False 24-The primary customer-facing applications that support eCRM are self-tracking.

that are visible to customers. Replenishment and returns. Making sure the customer will pay. services. 34-The major difference between e-logistics and traditional logistics is: e-logistics deals with the traditional logistics deals traditional logistics e-logistics . and controlling the efficient and effective flow and storage of goods. customized push operations. and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.pull operations. implementing. standard push operations. back-office operations order fulfillment logistics front-office operations 31-The Council of Supply Chain Management Professionals defines ________ as "the process of planning. order fulfillment. order fulfillment. such as advertising and order taking. back-office operations. back-office operations. 30-Customer-facing activities or ________ are activities. delivery. shipment release. order acknowledgment. Just-in-time inventory management. 33-The administrative activities of order taking and fulfillment involve all of the following activities EXCEPT: sales quote." front-office operations back-office operations order fulfillment logistics 32-A typical EC fulfillment process involves all of the following activities EXCEPT: Checking for in-stock availability. 29-Packing. front-office operations. accounting and logistics are examples of: logistics. front-office operations. standard pull operations. accounts payable. customized 28-All services related to making sure a customer gets what he/she ordered within an acceptable amount of time is called: logistics.

in global operations. are accomplished solely through improved links with logistics. Internal manufacturing schedules Demand forecasts Inventory delivery schedules Foreign currency exchange rates 37-________ helps locate shipments in real time to minimize delays and enhance customer service. mature. and through with payment systems. linkages with payment systems. 36-________ are a major source of uncertainty in supply chains. from solely through solely through improved links with implementing linkages improvements within logistics. outsources all logistics functions. in traditional logistics only because the problem has been solved in e-commerce. the organization. so complex that most EC companies cannot afford to implement them. few destinations. 3PL RFID ERP CRM 38-Solutions to problems in the supply chain for EC companies are: critical during start-up but usually unique generic across both usually become manageable and for each EC EC and traditional insignificant as EC companies company. . but it is rarely a problem in domestic operations. 35-The inability to deliver products on time is a typical problem: in both off-line unique to eand e-commerce. commerce. applies only to manufacturers.movement of large with movement of large amounts of materials to a amounts of materials to a few destinations. 39-Improvements in EC order-taking: may come from within the are accomplished are accomplished organization. companies.

to facilitate the delivery of large quantities of product to a small number of customers. 44-The second most often cited reason for customers not buying on the Web is: not being able to see or try the lack of a good on a product before buying return mechanism. which increases the need for coordination. 42-________ are intermediaries that prepare goods for shipping on air carriers. These systems are secure when the Internet is the centric technology platform. on time. Such systems also are useful in maintaining an inventory of repair items so repairs can be expedited. to accommodate much larger inventory levels than traditional warehouses. it. communication.40-________ are useful in reducing inventory and decreasing the incidence of out-of-stocks. and collaboration. Leveraged shipments Merge-in-transit Order postponement Rolling warehouse . The number of partners in such situations is larger. ERP systems Warehouse management systems Replenishment systems Stockkeeping unit systems 41-Automated warehouses for B2C companies are designed: to facilitate the delivery of small quantities of product to a very large number of customers. trucks. to help transition B2C companies into B2B companies. Order fulfillment problems tend to be even larger in longer supply chains that cross country borders. Forwarders Outsourcers Expediters Shippers 43-All of the following apply to global logistics systems EXCEPT: An increase in global trading created a need for an effective global logistic system. concern that ordered concerns products won't be delivered about fraud. 45-________ is an innovative order fulfillment strategy in which components for a product come from two or more physical locations. or other transport means.

SCM analysis. response time.46-A decision support tool that helps determine whether it is economical to deliver goods to a neighborhood area in one trip is: CRM model. it requires integration with a company's other information systems. ERP model. customers management. which may be difficult and expensive. 51-Medium and large corporations organize and store data in a central repository called a(n) ________ so that it will be easy to analyze later on. 47-________ recognizes that ________ are the core of a business and that a company's success depends on effectively managing its relationships with them Supplier relationship Customer relationship Vendor relationship Partner relationship management. when needed. partners management. delivery-value density. 49-Metrics in customer service and CRM include all of the following EXCEPT: site availability. CRM. 50-Data analytics are a valuable tool because it can provide all of the following EXCEPT: what-if scenarios. profitability analysis. knowledge system data base expert system data warehouse 52-Automating inquiry routing and answering queries requires ________ which can be generated from historical data and from human expertise and stored for use whenever needed. vendor management. product quality. on-time order fulfillment. suppliers 48-Major limitations of CRM include all of the following EXCEPT: it is difficult to it is difficult to support it is difficult to justify the mobile employees with develop competitive expense of some CRM applications. knowledge forecasts analytics information . financial reporting customer segmentation groupings. CRM applications.

53-To overcome the problem of finding buyers or sellers online, a company may use ________ such as or Yahoo! Small Business. intelligent agents search engines directory services industry-focused newsletters

54-TRUSTe, BBBOnline, and Ernst & Young's trust service are used both in B2C and B2B for all of the following reasons EXCEPT: One cannot touch the seller's products. Trust is critical Companies must outsource Buyers may not be for EC. known to sellers. trust services.

55-The major reasons why many companies prefer to outsource some of the support services include all of the following EXCEPT: Lack of experience or The desire to resources needed for many of concentrate on the the support services. core business. For a sustainable competitive advantage. The need to have services up and running rapidly.

Chapter 14 E-Commerce Strategy and Global EC
1-Strategies are based on performance indexes that are used as targets and measures of success. True False

2-An organizational strategy is a detailed plan for how a business is going to accomplish its mission, what its goals should be, and what plans and policies it will need to accomplish these goals. True False

3-Any contemporary strategy-setting process must include the Internet. True False

4-In Porter's view, the majority of the Internet's impacts on the five competitive forces have been positive. True False

5-Researchers have suggested that more extensive strategic information systems planning in an uncertain environment produces greater planning success. True False

6-No matter how large or how small the organization, the strategic planning process forces corporate executives, a company's general manager, or a small business owner to assess the current position of the firm, where it should be, and how to get from here to there. True False

7-In the strategy initiation phase, the organization examines itself, its environment, and the potential contribution that the Internet and other emerging technologies can make to the business. True False

8-A value proposition is actually a financial statement that summarizes the annual revenue and profit targets. True False

9-The two major and successful Internet-based businesses Google and eBay have similar core competencies. True False

10-SWOT analysis is one method for scanning the business environment to collect and interpret relevant information about direct competitors, indirect competitors, and potential competitors. True False

11-In the strategy implementation phase, general long-term plans are developed for carrying out the projects that had been agreed on in the strategy formulation phase. True False

12-Resource allocation refers to the processes of making the selected applications and projects a reality, such as hiring staff; purchasing equipment; licensing, purchasing, or writing software; and contracting vendors. True False

13-Strategy assessment is the continuous evaluation of progress toward the organization's strategic goals, resulting in corrective action and, if necessary, strategy reformulation. True False

14-The basic method in scenario planning is that a group of analysts generates simulation games for policy makers. The games combine projected factors about the future, such as demographics, geography, and industrial information with plausible alternative social, technical, economic, and political trends. True False

15-A business plan is a tool that is an alternative to narrowly focused financial assessments by measuring organizational performance in four areas: finance, customers' assessments, internal business processes, and learning and growth. True False

16-The primary reasons for writing a business plan are to acquire funding and nonfinancial resources, to recruit senior management, and to force the business owner to think ahead, set achievable goals, seek out and analyze competitors. True False

17-Entrepreneurs in start-up companies use business plans to get funding from investors, such as a venture capitalist or a bank.

especially in sell-side projects because the two activities could be competitors. True False 21-Disposing of excess equipment was the motivation behind the implementation of forward e-auctions at General Motors. True False 19-In e-commerce. risky. True False 24-The purpose of GlobalNetXchange. evidence shows that there is always a real advantage to being the first mover in an industry or market segment. True False 23-Having a strong project champion on an e-commerce project is seldom important to the success of the project because of inter-personal conflicts caused by a powerful champion. True False 22-In a click-and-mortar business. which was founded by major retailers such as Sears. True False 20-The disadvantages a brick-and-mortar company faces by creating an independent division are that it may be very costly. was to reduce procurement costs and product prices for its members while making the purchase process more efficient. or both. . This is an example of a technology-driven strategy because GM had a specific problem that an EC application could solve. the allocation of resources between off-line and online activities can create difficulties.True False 18-The information systems strategy is set primarily by determining what information and associated information systems are required to carry out the business strategy.

information widely it easier to make marketing. 28-Projections of the business technological. political. The Internet allows buyers and sellers to find and transact business with one another more easily.True False 25-At the implementation stage. day-to-day operations. company analysis. firms may need to dramatically change business processes to accommodate the changes an EC strategy brings. SWOT analysis 29-The unique combination of resources. experiences. economic. True False 26-For ________ companies. core competencies. 30-All of the following are elements of a company's strategy EXCEPT: forecasts. competitor analysis. functional strategy. it may be even more important to change strategies quickly. and available. distribution. and expertise within a particular firm is called their: corporate strategy. and other environments are called: competitive intelligence value propositions forecasts. service retail traditional pure play 27-Capabilities of the Internet that have made it more difficult for companies to capture profits include all of the following EXCEPT: The Internet reduces the The Internet makes The Internet makes difficulty of purchasing. 31-All of the following about the strategic planning process are true EXCEPT: The process of The strategic The strategic planning process The strategic . secure payments. In those instances. business process reengineering (BPR) is usually necessary. competitive advantage.

a is cyclical and company's general manager. competitor target. which includes the vision. small business owner to assess the current position of the firm. strengths. planning process begins with strategy formulation. or writing software. constraints. 32-A specific outcome of the strategy initiation phase is the ________. functional strategy core competency value proposition company analysis 34-Google's ________ is its expertise in information search technology. or a continuous. Strategy assessment Project management Resource allocation Project planning 37-An analytical tool in which a company looks for points of differentiation between competitors and itself is called: . licensing. which summarizes the customer segment. core competency company analysis functional strategy value proposition 35-Many of the outcomes from the first two phases of the strategic planning process. planning process forces corporate executives. competitor analysis. mission. and risk analysis come together in a ________.developing a strategy maybe even more important than the strategy. value proposition. purchasing equipment. and weaknesses of the company functional strategy core competency company analysis value proposition 33-A specific outcome of the strategy initiation phase is a clear statement of the company's ________. purchasing. strategic opportunities. and the core differentiation of one's product from the offerings of competitors. such as a determination of goals. where it should be. and contracting vendors. goals. and how to achieve objectives. SWOT plan technology audit value proposition business plan 36-________ is the process of making the selected applications and projects a reality by hiring staff. capabilities.

business plan. The content of a business case is similar to that of a business plan. When an existing company is planning to launch the company in a new direction. if necessary. 41-All of the following are situations when a business plan should be done EXCEPT: When an existing company is planning to create a separate division. whereas a business case assesses both viability of the project and the fit of the initiative with the firm's mission and goals.competitor analysis grid strategy assessment scenario planning SWOT analysis 38-________ is the continuous evaluation of progress toward the organization's strategic goals. Web analytics. 40-After four years in business. strategy reformulation. 42-Which of the following about business plans and business cases is NOT correct? One difference is that the business plan concentrates on the viability of a company. Strategy assessment Competitor analysis grid Scenario planning SWOT analysis 39-A management tool that assesses organizational progress toward strategic goals by measuring performance in a number of different area is: SWOT analysis. business metric. When a new business is seeking start-up funds and other resources. balanced scorecard. The purposes are the same to justify a specific investment of funds. a magazine publisher decides to add the online distribution of its magazine to its existing traditional publishing business. BCG growth-share matrix. When an existing business is deploying a CRM system. The company would need to develop a: business case. resulting in corrective action and. 43-The risks of being a first mover include all of the following EXCEPT: the risk that the high cost of pioneering EC the move over the long run first movers are substantially the chance that a second wave of competitors will eliminate a first . business strategy. The audiences are the same senior management and the board or directors.

a click-and mortar firm. 44-Factors that determine whether a first mover succeeds or fails in the EC marketplace include all of the following EXCEPT: the nature of the product. Creating an online Forming a joint brand. high-stakes mover winners. 48-Incorrect approaches to EC strategy selection include all of the following EXCEPT: indiscriminately funding many "trend-surfing. venture. most fashionable idea. initiatives.will be too late. to buy a company with complementary products or services. 47-Rite Aid. production facilities or staff. 46-Separating a company's online operations into a new company makes sense in each of the following situations EXCEPT: when the subsidiary can be created without dependence on current operations and legacy systems. mover's lead through lower cost and innovation. when the company is unable to form new alliances. less profitable than followers. attract new talent. when a new business model needs to be when the volume developed apart from the of anticipated econstraints of current business is large. initiative. 45-The most efficient way to expand an organization's scope is: by expanding the firm's appeal to a new set of customers." or following betting it all in a using a lateprojects and hoping for a few the crowd to the newest and single. or raise additional funding. 49-The most dangerous risk to a company engaged in e-commerce is: . to introduce new products or by increasing the services into new or existing size or scale of markets without increasing the business. whether the company can be the best in the market. operation. the speed of market entry. strategy. enhanced its EC future by: Creating a separate company. Buying an equity stake in a existing EC company. the size of the opportunity.

negligent loss of data. a good way to start is to undertake ________. To remain competitive and profitable. supply chain temporary corporation co-opetition virtual corporation 55-The most important objectives of strategic assessment are all of the following EXCEPT: Determine if the EC strategy and projects are still viable in the current environment. threat posed by hackers. non-trivial EC one or a few small EC project project pilot projects a single division EC project 54-A ________ is a form of business alliance composed of several business partners that share the costs and resources for the development or production of a product or service. the use of innovative processes that support collaboration. . new ways of customer segmentation for differentiated pricing. a multi-divisional EC a large. rent. reducing prices. the ability of top management to corporate introduce change properly. such as material. 50-All of the following determine the degree of collaboration between off-line and online activities in a business EXCEPT: the pricing strategy. which increases their bargaining power. business risk. and so forth. 53-Implementing EC often requires significant investments in infrastructure. overhead. Measure the extent to which the EC strategy and ensuing projects are delivering what they were Reassess the initial strategy in order to learn from mistakes and improve future Identify what competitors are doing to avoid headon competition. cost-plus revenue markup price percentage competitor model 52-Internet technologies can provide consumers with easier access to pricing information. Therefore. 51-The ________ pricing strategy means adding up all the costs involved. sellers need smarter pricing strategies. which include all of the following strategies EXCEPT: greater precision in more adaptability in setting prices.customer and business partner risk. labor. changing prices. and adding a percentage mark-up as profit. culture.

many EC projects and start-up companies were funded with little analysis of their business viability or finances. True False 3-After the dot-com bust. True False 2-The result of the rush to invest in EC projects and start-up companies was the 2001— 2003 "dot-com bust. most IT executives acquired the knowledge and tools to do ROI calculations on proposed EC investments." when hundreds of EC startups went out of business and the stock market crashed. True False .supposed to deliver. planning Chapter 15 1-From 1995 through 2000. True False 4-One reason why EC justification is needed is that companies now realize that EC is not necessarily the solution to all problems. EC justification decreases the credibility of EC projects. True False 5-According to a CIO Insight report. True False 6-One basic way to categorize different EC investments is to distinguish between investment in infrastructure and investment in specific EC applications.

or the ratio between them and need to be defined properly with a clear way to measure them. True False 10-Metrics are used to describe costs. True False 13-Creating a competitive advantage. benefits. providing a benefit to society.7-Infrastructure investments are made for the short-term because of frequent technological changes. which is also the name of a specific method for evaluating investments. True False . and improving the company's image are examples of tangible benefits that might be realized from an EC project. True False 8-Cost-benefit analysis is frequently assessed by return on investment (ROI). True False 11-Key performance indicators (KPI) are used to qualitatively track critical metrics or success factors. True False 9-All EC investments need to be formally justified to insure that they align with the company's competitive strategy. True False 12-A major difficulty in justifying EC projects is that many costs and benefits are intangible and therefore very difficult to measure.

True False 16-Because many EC investments in eCRM take five to six years to show significant positive results. real productivity gains often do not get measured correctly. such as increased revenues via products or services from a larger global market because of more effective product marketing on the Web. True False 17-In preparing the business case for EC investment. The result is a ratio that measures the ROI for each year or for an entire period. and take into consideration whether the company is a buyer or seller. managers should examine the potential additional revenues that are expressed in the revenue models. True False 19-In an NPV analysis. True False . the metrics used to measure the value of e-procurement must reflect how well each process is accomplished.14-Cannibalization occurs when a new EC initiative produces substantial online sales. but traditional sales fall such that no increase in total revenue occurs. analysts convert future values of benefits to their present-value equivalents by discounting future cash flows at the risk-free rate set by the Federal Reserve Bank. True False 15-The results of any investment justification in eCRM depend on the time frame used to measure changes in productivity. True False 18-The ROI method uses a formula that divides net revenues by the initial cost. True False 20-Given the diversity of activities involved in e-procurement.

These limitations can be overcome when predicting EC investment payoffs by using a combination of break-even analysis and NPV. political influences. unreliable telecommunications infrastructure. and many public organizations. public companies must document every internal process and external effect that will have an impact on their financial health. but a majority of companies have demonstrated a significantly positive ROI for their eCRM investments. and even the content of online ads. True False 24-Critical elements that can affect the value of EC across cultures are perceived trust. Thus. consumer loyalty. True False 26-CIOs need to effectively communicate the value of proposed EC projects in order to gain approval for all of the following reasons EXCEPT: Some large companies.21-According to recent surveys of eCRM applications. mandate a formal evaluation of Companies now realize that EC is not necessarily the solution to all Demand for expanding or initiating e-business projects is no longer strong so there are The success of EC projects may be assessed in order to pay bonuses to those . True False 23-To comply with the Sarbanes-Oxley Act. True False 25-Developing economies often face power blackouts. undependable delivery mechanisms. the justification for a Web portal must focus on both business ROI and technology ROI. regulation. and a relatively few customers who own computers and credit cards. True False 22-Large companies often have several integrated intranet and other information systems that determine the success of a Web portal. which provide a robust foundation from which to develop a budget. there are been mixed payoffs.

29-Not all EC investments need to be formally justified. 31-Productivity benefits from using EC are difficult to measure because: EC gains in certain areas of the there is no time qualitative benefits company may be offset by losses in lag in EC gains. to-market. fewer requests for funding. 32-The relationship between EC investment and organizational performance is: shared with other investments. 28-The basic reasons that companies invest in IT and EC are all of the following EXCEPT: to increase customer satisfaction and retention.requests for funding. do not count. direct. All of the following are cases where formal evaluation may not be needed EXCEPT: When the value of the investment is relatively small for the organization. or are too type of investment. When the EC project is mandated and must be done regardless of the costs and benefits. the payoffs are too short. involved with the project. 27-One basic way to categorize different EC investments is to distinguish between investments in infrastructure and investment in specific EC applications because benefits from infrastructure investments: have a low return. . are made for the longterm. other areas. costs. to justify new marketing campaigns. depend on the EC applications. are have made that inaccurate. indirect. 30-Metrics are used to describe all of the following EXCEPT: standards. volatile. the ratio of costs to benefits. When the relevant data When competitors are not available. problems. not measurable. to improve business to reduce timeprocesses. benefits. are very complex.

profit per customer. convenience in purchasing 37-For Governments. even though air traffic had tripled because of productivity gains derived from improved IT systems. IT systems added by the MTA played critical roles in ticket reservations. . Be careful not to overDocument and verify all estimate cost and underfigures used in the estimate benefits (a calculation. and gate assignments. yet high. crew assignment and scheduling. 34-The New York Metropolitan Transit Authority (MTA) did not need to open another airport for almost two decades. achieved quickly. direct and routine. operational and strategic. yet payoffs can be achieved quickly. an example of an intangible EC metric is: lower tax rates. tangible and intangible. Clarify all tendency of many assumptions. Intangible costs can be high. increase in participation in government programs. including longterm ones. passenger and luggage check-in. yet payoffs can be can be complex. 38-The major steps in the process of justifying large-scale EC and IT projects include all of the following EXCEPT: Lay an appropriate foundation for analysis with your vendor. runway maintenance and management. impact on the physical environment. yet substantial. changes to the power distribution in an organization. an example of a tangible EC metric from the buyer's perspective is: ease of use of EC. reelection of candidates. managers). cost/price of the product. substantial. and preventing invasion of the privacy of employees and customers. 35-An important category of intangible benefits is ________ factors that include comfort to employees. risk reduction. and then conduct your ROI. This case illustrates that: Tangible benefits can Tangible costs can be Intangible benefits be complex. ecosystem transactional social subsystem net-enhanced 36-In B2C. Do not leave out strategic benefits.33-EC costs and benefits can be classified into two broad categories: short-term and capital.

39-Types of costs and cost issues that need to be considered in justifying EC investments include all of the following EXCEPT: initial upfront costs. estimates that his free Wi-Fi network has added 10 percent to his overall revenue. decreased number of rejects received from suppliers. business ROI. Internal rate of return (IRR). 43-By calculating the difference between TCO and TBO. it is difficult to compare it assumes projects of unequal lifes reinvestment at the same rate. 42-Pouilly's Poodle Shop wants to produce monthly cash flows from its Internet DoggieCam investment. Payoff. reduced inventory costs. measure. The most appropriate method for assessing this investment is: Break-even analysis. one can compute the ________ of an IT investment. technology IRR. pans or sizes 45-The following direct metrics indicate progress in e-procurement EXCEPT: increased order fulfillment rate. . the allocation of indirect costs. who owns three World Cup Coffee shops in Portland. Oregon. Welch credits WiFi consumers with spending three times as much on food compared with the average consumer. Total cost of ownership. This is an example of: technology ROI. Internal rate of return (IRR) Total cost of ownership Payoff Break-even analysis 44-The disadvantage of the NPV method for evaluating EC and IT is: it may be difficult to the true benefits classify outlays as expenses are difficult to or investments. 40-Traditional methods for evaluating EC investments include all of the following EXCEPT: Discount rate ROI NPV Break-even or payback period 41-Dan Welch. opportunity costs. business NPV. increased on-time deliveries. system operating costs.

transaction costs.related costs and related costs. competitive advantage. shaped. overhead. communicationcosts incurred related expenses. This is an example of ________ to attract customers who value this automatic update. companies should consider: only production-related ignore productionrelated costs and costs and ignore transaction costs. is not needed because it is wellknown that preventing network security problems is less labor intensive than cleaning up virus infections. while the AVC of digital products is U-shaped. Monitoring costs incurred when buyers and sellers make sure that the exchange proceeds according to the terms under which the sale was made. agility. while Lthe AVC of physical products is U. is not done should be done because ROI because employee calculators are not security training is available. 49-Transaction costs include all of the following EXCEPT: Search costs incurred by buyers and sellers in locating each other and specific products and services. are different because the AVC of physical products declines as quantity increases forming a Lshape. usually poorly done. 50-McAfee allows users of its VirusScan virus-detection software to automatically update the latest security patches online. product or service differentiation. shaped. only transaction costs both productionand ignore production.46-Justifying information security projects: should focus on defending against external threats such as hackers and malware. 47-The average-cost curve (AVC) of physical products and digital products: are different because the AVC of digital products declines as quantity are both are both Uincreases forming a L-shape. core competency. . exchanges of for labor and technical data or brochures. and legal costs. entertainment. 48-When computing agency cost.shaped. transaction costs. Negotiation costs result from Production meetings.

51-A Web-based seller of CDs carefully monitors the prices charged by its competitors for identical products. This company has the ability to change a given price within three minutes in response to changes by competitors. This is an example of EC: competitive advantage. agility. core competency. product or service differentiation.

52-All of the following are critical success factors (CSFs) of the Old Economy EXCEPT: Create new partnerships, stay with core competency. Deliver highvalue products. Build market share to get Compete to sell economies of scale. product.

53-As a company moves to incorporate an online presence with its traditional brick-andmortar operation, it adds the costs related to training for all personnel in the capabilities of the EC system and a new advertising campaign to announce its new site to the costs directly associated with building the new Web presence. In this case, training and advertising are examples of: direct costs. transaction costs. complementary investments. indirect costs.

54-One of the strengths of EC is the ease with which its adopters can reach a global population of consumers. However, EC-driven businesses must consider the critical elements affecting the value of EC across cultures. Those elements include all of the following EXCEPT: perceived trust. delivery delays. political influences. consumer loyalty.

55-All of the following apply to EC in developing economies EXCEPT: The potential volume of transactions in developed countries can make EC investments more attractive for established firms than new firms because established firms have already recovered the costs of their IT infrastructures. Developing economies struggle with various issues that create too many business and technology risks to justify investment in those economies at this time. Developing economies often face power blackouts and unreliable infrastructure and delivery mechanisms creating limitations that make it difficult for firms to predict whether EC investments will pay off, and when. Developing economies, such as China and India, represent a significant opportunity for EC to connect businesses to customers, as well as other businesses.

Chpater 16
1-Unlike the brick-and-mortar marketplace, the failure rate for online companies is low. True False

2-Online businesses may be pure play companies or click-and-mortar companies that add online projects, such as e-procurement or selling online, as additional marketing channels. True False

3-To create successful entrepreneurial ventures in EC, Maier suggests that starting small with many founders is the best option. True False

4-The first step is creating a new company is to identify a consumer or business need in the marketplace and an innovation to address that need. True False

5-Many good ideas and realistic initiatives have failed because of poor execution due to the lack of sufficient business skills by the owners or principals of the business. True False

6-As a general guideline, although virtually anything is available for sale on the Internet, the degree of sales success is somewhat dependent on the type of item or service being offered for sale and how it can be delivered. True False

7-Medium and large businesses, or those seeking external funding, must have an informal business plan. True False

8-The primary reason an entrepreneur writes a business plan is to acquire funding from a bank, an angel investor, a venture capitalist, or the financial markets. True False

9-Some entrepreneur may simply invest personal funds from savings, personal lines of credit, or a house mortgage since these sources of "bootstrap funding" are typically enough. True False

10-When the entrepreneur's personal funds are insufficient, the entrepreneur will go to friends, family members, or to financial institutions. True False

11-An important source of financial support or direct funding, for pre-VC firms is an incubator. True False

12-Venture capitalists tend to invest in companies that have identified what seems to be an outstanding business opportunity, have taken some action to make the opportunity happen, such as written a new software application or secured a patent , and need an infusion of funds and management expertise to expand and launch the business. True False

13-There is a serious downside for start-up businesses that acquire venture capital because they lose control over the business. True False

14-Once the company is well known and successful, it can go to a stock exchange to raise money via an initial public offer or IPO. True False

True False 20-Up-to-the-minute dynamic content is what attracts new and returning customers ("eyeballs") and makes them stay longer ("stickiness"). speeches. True False 19-Selecting a domain name is an important marketing and branding consideration for a business because it will be the business's online address and create an identity for the business. True False . rather than on just a hunch. True False 16-Business process management (BPM) systems monitor the execution of the business processes so that managers can analyze and change processes in response to data. including music. True False 17-Transforming an existing business to an e-business means a manager must change business processes. but not the way people work or communicate. True False 18-An informational Web site provides opportunities for the customers and the business to communicate and share information.15-Organizational transformation is a comprehensive concept that implies not only a major change. it enables companies to deliver audiospecific content. True False 21-Because podcasts are audio-based media files. radio-style presentations. but also a sharp break from the past. and more. which builds customer loyalty.

the first step is to: acquire financing needed to make the business successful.22-Amazon. help the founders remember what they are trying to accomplish. 27-The principle reason for writing a business plan is to: provide strategic direction to employees. True False 25-Card-not-present (CNP) transactions increase the risk and uncertainty of online transactions. True False 26-When creating a new business. and search tools. a site map. which is used to generate dynamic Web pages that recommend products based on previous purchases and recently viewed items. Amazon. identify a consumer or business need that isn't presently being met. acquire external offers personalize content by tracking visitors' behavior via cookies. write a business case or offers this personalized content because it is very inexpensive and does not impact performance. which increases transaction fees to offset the increased risks. True False 23-Web designers execute successful site navigation through consistency and through navigation aids such as a navigation bar. True False 24-Web site usability means that people who use the Web site can do so quickly and easily to accomplish their tasks and may also consider such factors as cost-effectiveness and usefulness. a navigation column. investigate all existing opportunities. provide an operational framework for the business. 28-The key difference between an e-business plan and a traditional business plan is that the entrepreneur must: .

business cases are all businesses need a brief and general. or nonprofit organization that supports promising businesses in their initial stages of development. business on the Internet.develop a ten-year plan. business case. the loss of control a venture capitalist demands. university. finding a willing venture capitalist. 29-The difference between a business plan and a business case is: all new businesses should have a a business case business plan. understand that the Internet is a unique sales channel. the angel investor will pay the highest price per share . understand all aspects of understand that traditional the technology required to rules do not apply when doing implement the plan. incubator angel entrepreneur venture capitalist 32-________ is money invested in a business by an individual or a group of individuals in exchange for equity in the business. relocating the business to an incubator. business case. start-up funding operating capital venture capital advance funding 33-The greatest difficulty in dealing with venture capital is: finding the money a venture capitalist will require. 30-A(n) ________ is a wealthy individual who contributes personal funds and possibly expertise at the earliest stage of business development. detailed. 34-The relationship between stock price and when an investor invests is: the entrepreneur will pay the venture capitalist IPO investors will will pay the highest pay the highest price the highest price per share price per share. per share. but only while business plans new businesses need a are long and business plan. incubator venture capitalist angel entrepreneur 31-A(n) ________ is a company. but only existing is a part of businesses planning a major EC every business or IT initiative should develop a plan.

This is an example of adding: a portal. Chaplin. dynamic organizational functional static 40-Secondary content that offers a coupon. rebate. This is an example of adding: a reverse auction. there is always a sharp there are incremental break with the past and changes to the ways every aspect of the things have always business will probably been done. but rarely a only one or a few of change in procedures or the functional areas investment in of the business. a reverse auction 36-Reprise Electronics. the present owner. a storefront. a portal. This is an example of ________ content. and general e-mail addresses for each of these studios. dynamic informational transactional interactive 39-A major entertaining company has four studios that have been in the same location for more than ten years. e-procurement. in addition to providing links to the brand pages. The company decides to bring all of the Web sites together through a single site that. a storefront. or special service is called: . phone numbers. The company includes a page on its Web site with addresses. 37-In an organizational transformation: there is a change in the change may affect outlook. infrastructure. e-procurement. 38-A(n) ________ Web site does little more than provide information about the business and its products. currently has separate Web sites for each of its brands. a conglomerate that manufactures and sells all kinds of electronic goods under several brand names.35-Chaplin's Pet Store has been in business for many years. change. decides to open an online sales channel where he can advertise and sell the same gourmet pet food. None of this information has changed since the Web site was developed. will also provide general information about how to select electronic merchandise and informational pages about the Reprise company today and its management team.

URL name host name domain name IP address . cross-selling. testimonials. backup site a download site mirror site a hot site 46-The Web hosting option under which the business acquires the hardware. promotion. using a storebuilder. 41-Reviews. and dedicated telecommunications services needed to host a Web site is called: mirror hosting self-hosting. the domain name how to protect the Web site from hackers 45-A(n) ________ is an exact duplicate of the original Web site physically located on a Web server on another continent. labeled. software. and navigated to support browsing and searching.cross-selling. 44-One of the first decisions to be made in building a Web site is: whether to provide personalized who will content host it. ISP hosting. 47-The ________ is the name-based address that identifies an Internet-connected server. Web design information architecture Web site map Web layout 43-Creating content that offers upgraded or more expensive versions of the product is called: comment. up selling. up selling. or further explanation about the product are called: comment. promotion. up selling. staff. expert advice. comment. cross-selling. 42-The ________ is how Web pages are organized. promotion.

49-The concept of consistency in Web site design includes: making sure the messages sent to customers who contact the company are consistent. Google eBay Yahoo! Amazon. making sure customers are treated consistently when they contact customer service. It also has book reviews and suggests titles based on previous purchase activity. 52-In addition to providing an easy mechanism for buying Web site is easily searchable by book title and author.48-Content not available anywhere else on the Web is called: restricted content. making sure Web pages look the same no matter which browser a customer is using. premium content. 51-Banks are more selective about who gets an account for accepting credit cards online because online transactions do not produce much revenue for banks dot com failures have made banks less willing to work with online companies. This is an example of: internal Web site promotion search engine optimization using a meta tag. standard. CNP 53-________ offers one of the most popular storefront packages at with three levels of merchant solutions: starter. making sure all visitors consistently find what they are looking for. These enhancements make the Amazon site a favorite for readers. the 54-Options for acquiring storefronts include all of the following EXCEPT: . it provides the fastest speed to market. and professional. fees are higher for online processing CNP transactions are less secure and riskier. it allows the company to it allows the company to exert protect proprietary greater control on the process technology. 50-All of the following are advantages of building Web sites internally EXCEPT: it allows the company to use inhouse expertise. and the resulting site. commodity content. reserved content.

Build from scratch. or other types of messaging media to promote products or services is called media spam. True False 3-Companies use search engine marketing (SEM) methods to increase their chance of "getting found" among competing Web sites. cellular phones. you need to consider all of the following issues in order to generate a list of requirements and capabilities EXCEPT: Can customers What might be the place orders reaction of competitors? online? What kinds of products or Who are the target services will the business sell customers? online? Chapter 17 1-For many e-businesses. True False . Build them from components Build from templates or storebuilders. a majority of their customer online traffic comes from search engines. True False 2-All marketing methods used to increase the ranking of a company's Web site in the search results are ethical. True False 4-The volume of e-mail spam has decreased because of the widespread use and effectiveness of antispam software and ISP spam filters. Join a mall. True False 5-Spam sent to blogs. 55-Before choosing the appropriate Web site development option.

literary and artistic works.6-Web pages that have been created to trick search engines into offering poor-quality results are referred to as search engine spam. True False 10-Legal precedents are decisions by judges that may be used as standards in similar legal cases that follow. True False 7-Acts or activities that are unethical are also illegal. and designs. and symbols. regardless of its content. is legal in the United States because it is a form of speech protected by the Constitution. images. such as privacy. True False 13-Due process is a legal claim that others not interfere with a protected interest. intellectual property. . True False 12-Significant changes in the nature of business or crimes lead to new laws because laws must remain responsive to new threats or abuses. names. True False 8-Creations of the mind. True False 11-Political spam. or free speech. True False 9-Questions or disputes about the legality of spam can be resolved easily by referring to relevant laws. such as inventions. used in commerce are known as private property.

the recording industry can file lawsuits for copyright infringement against YouTube or MySpace if it profits from the recording industry's property without authorization and compensation. True False . True False 17-EC web site content needs to be reviewed by attorneys with cyber law expertise to ensure that there nothing is unethical or illegal and that all required statements and disclaimers are properly included. such as notifying customers of information practices before collecting it. do not apply to information collected in e-commerce. True False 15-A company can be sued for libel if its EC site contains a defamatory or untrue statement that causes damage to a person or another company. trackback spam filters are implemented in blog publishing systems. True False 19-As a defense against abusive trackback tactics by profit-motivated spammers.True False 14-Because of intellectual property law. True False 16-A corporate code of ethics should specify whether the company allows employees to set up their own Web pages on the company intranet and the rules for private e-mail usage during working hours. True False 18-Ethical principles that apply to the collection and use of personal information.

such as Trustmark and BBBOnline.20-Blocking tools cannot stop adware or software that gets bundled with other popular applications. such as Kazaa. True False 25-Online sellers can better protect themselves against fraud by requiring customers whose billing address is different from the shipping address to call their bank and have the alternate address added to their bank account. True False 23-Electronic signatures improve EC by helping to distinguish between legitimate and fraud transactions and build trust and predictability needed by parties doing business online. True False 21-Unlike hate sites that can cause problems for corporations or lead to lawsuits. and about 3% of accepted orders turn out to be fraudulent. from delivering pop-up ads because they originate from the desktop. True False 22-Online merchants reject about 10 percent of incoming orders because of suspicions of fraud. True False 24-Several public organizations and private companies attempt to protect consumers and build users' trust and confidence in the Internet through a seal of quality. and not the browser. fan sites are beneficial and welcomed by the entertainment industry. True False 26-Approximately what percent of Internet shoppers use search engines to find products and services? 75% 50% 10% 25% .

honeypots. MSN Search. and dissemination of personal information is included in the category of: duties rights privacy property 30-A decision by a judge that may be used as a standard in similar cases that follow is referred to as: legal precedent common law intellectual property tort 31-Critics of political spam are against its use because they believe that: it increases candidates' all spam is a nuisance. clogs mail dependence on wealthy servers. Built algorithms that check for and penalize deceptive rank-boosting practices. . a legal claim that others a set of enforceable not interfere with a rules and protected interest. Computer Fraud and Abuse Act (CFAA) Children's Internet Protection Act (CIPA) First Amendment 28-To defend against unethical and illegal business tactics that exploit EC operations. 29-Having control over the collection. Implemented spam site Implemented reporting systems. and Yahoo have turned to all of the following aggressive measures except: Banned violators' sites.27-Sending spam that disguises a sales pitch to look like a personal e-mail so that it will bypass e-mail spam filters violates the: Controlling the Assault of NonSolicited Pornography and Marketing (CAN-SPAM) Act. it is illegal it leads to political favoritism 32-Due process is a legal obligation not to interfere with a protected interest a guarantee of basic fairness and fair procedures in legal action. and creates security risks fundraisers. storage. regulations. Google.

34-Property rights relevant to e-commerce include all of the following EXCEPT: The right to benefit. after work is created and in a tangible form such as through Copyright protection on artistic property such as a movie or . or sell the property. copyright law. electronic databases. and video games. but In the United States. led primarily by the Motion Picture Association of America The Recording Industry Association of America (RIAA) uses lawsuits against universities. business contracts 38-Which of the following is true about copyrights? The entertainment industry. protected interest action. a set of enforceable rules and regulations. advertising. 35-A music company can file a ________ against YouTube and MySpace for any interference with the ability to profit from its IP or for profiting from the recording industry's property without authorization and compensation lawsuit or civil charge nuisance charge negligence charge criminal charge 36-________ enable an organization that has suffered a loss due to spammers to bring a lawsuit against spammers responsible for the loss. patent law.33-A duty is a guarantee of basic a legal obligation not to a legal claim that others fairness and fair not interfere with a interfere with a procedures in legal protected interest. The right to exclude others from the property. and trade secret law. trademark law. The right to bring criminal charges against a transfer. violator. Control of the use of the property. Civil laws CFAA Common laws Criminal laws 37-Intellectual property law is the area of law that is associated with each of the following EXCEPT: visual and performing arts.

it is much more difficult to enforce acceptable behaviors and eliminate unacceptable behaviors. restrict its usage. The scope of business ethics has not changed because laws have not changed. and future generations. writing or recording. . not students. or material can be musical composition can digitally protected use their creations for an against misuse. environment. The scope of business ethics has not changed even though laws have expanded. the author can apply for a federal copyright. suppliers. is trying technical solutions via the legal system to protect its interests. that the author or creator that copyrighted of a book. movie. unlimited number of years. 41-Which of the following is true about the scope of business ethics? The scope of business ethics has expanded to encompass the nature and quality of the relationships with shareholders. The scope of business ethics has been limited to company's actions with regard to how it treats employees and obeys laws. 40-Fair use means that a copyright holder has exclusive rights to the invention for a fixed number of years.(MPAA) and RIAA. and punish violators. FTC. DRM is an umbrella term for DRM technologies any arrangement that allows a were developed with vendor of content in electronic strict regard for form to control the material and privacy protection. Typically. businesses. 39-Each of the following statements about digital rights management (DRM) is true EXCEPT: DRM are technologybased protection measures. the content is a copyrighted digital work to which the vendor holds right. customers. 42-An Internet acceptable use policy (AUP) is an important safeguard because: without a formal AUP. that copyrighted material can be used for noncommercial purposes without paying royalties or getting permission. employees may be using it includes a it required company e-mail to corporate code by the advertise their own of ethics. even after the death of the author or creator. business partners. music lasts forever. the community. to stamp out rampant music piracy on university campuses.

IM. Reading an individual's espyware or keystroke mail. Opt in and opt out information practices. gives the FTC authority to take action against companies whose lax security practices could expose customers' financial information to theft or loss. blogs. computer. Firewalls. 47-Private online communities that are only open to those who belong to them are called: splogs darknets RFIDs blogs 48-A domain name is: intangible property protected by law tangible property protected by law intangible property that is tangible property that is not protected by law not protected by law 49-The ________ give law enforcement agencies broader range in their efforts to protect the public. Defamation laws put restrictions on what may be freely said or published. 44-Companies can improve their responsibility as custodians of customers' personal data by implementing: AUP. Stealing the Wiretapping individual's communication lines.43-Section 5 of the FTC Act does each of the following EXCEPT: prohibits unfair or deceptive EC practices. and to EC. . requires protects monitoring of privacy. messages. the right of free speech is not unlimited. or text loggers. 45-Which of the following statements about the rights to privacy and free speech is not correct? As with all rights. Those rights have an The Internet has increasingly important role destroyed the in an information society right to privacy. E-mail monitoring. 46-All of the following are ways to use the Internet to find information about an individual EXCEPT: Using cookies. employees' e-mail.

Cyberbashing is the registration of a domain name that criticizes an organization or person. sponsored by competitors. Many hate sites are directed against large corporations such as Wal-Mart. a few of them will click on one of the linked advertisements and earn them a few cents for each click. The intent of most hate Web sites is to commit fraud. Minimizing the pop-up window.Electronic Freedom Foundation (EFF) American Civil Liberties Union (ACLU) U. 53-A legally binding contract requires a few basic elements. or infringe upon trademark rights by confusing consumers are usually protected by the First Amendment.S. appearing. Spammers Phishers Trackbacks Sploggers 51-The least effective method to protect against pop-up ads and their risk is: Pop-up blocking software on users' computers. and Nike. Department of Justice (DOJ) USA PATRIOT Act 50-________ work on the principle that once Web surfers arrive at their site. Microsoft.stop pop-ups from ups. 52-All of the following statements apply to hate Web sites EXCEPT: Web sites that contain legitimate complaints that aren't defamatory. Mozilla and Firefox Web ISPs using tools that browsers preventing pop. Which of the following is not one of those elements? an offer acceptance consideration agreement 54-Examples of electronic signatures to help distinguish between legitimate and fraud transactions include all of the following EXCEPT: a name typed at the a Web site end of an e-mail development message by the sender agreement a digitized image of a a secret code or PIN handwritten signature to identify the sender attached to an electronic to the recipient document 55-EC sellers need to protect against fraud and each of the following EXCEPT: .

and services provided. Use of their name Customers who deny by imposter that they placed an sellers. order.Customers who give false credit card or bad Public check information in payment for products keys. .

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