Introduction To Information Systems Canadian Ed By Rainer – Test Bank
Chapter 7
E-Business and E-Commerce
Question type: True/False
1) In traditional commerce, one or more of the following can be digital: the product or service, the process, and the delivery agent. Answer: False Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Information Technology Bloomcode: Knowledge 2) You decide to start a landscaping business called Trim Grass. You type www.TrimGrass.com in a Web browser, and no page with that name appears. The domain name is therefore available. Answer: False Difficulty: Medium Learning Objective: Identify the ethical and legal issues related to electronic commerce, providing examples. Section Reference: 7.4 Ethical and Legal Issues in E-Business AACSB: Information Technology, Ethics Bloomcode: Application 3) Visiting the Web site of a car manufacturer (e.g., www.gm.com), entering the specifications for the car you want, and then picking up your car at your local dealership is an example of a clicks and mortar organization, or partial electronic commerce. Answer: True Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Reflective Thinking Bloomcode: Application 4) A type of viral marketing involves sending information about your product to friends. Answer: True Difficulty: Medium Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Information Technology Bloomcode: Knowledge 5) E-commerce is a broader definition of e-business. Answer: False Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Communication Bloomcode: Knowledge 6) eBay is a good example of business-to-consumer electronic commerce. Answer: False Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Communication Bloomcode: Comprehension 7) Forward auctions are auctions that sellers use as a channel to many potential buyers. Answer: True Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Communication Bloomcode: Knowledge 8) In a forward auction, the highest bid wins. Answer: True Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Communication Bloomcode: Knowledge 9) Even though B2C EC is much larger by volume, B2B is more complex. Answer: False Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Analytic Bloomcode: Evaluation 10) An electronic storefront is a Web site on the Internet that represents a single store. Answer: True Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Communication Bloomcode: Comprehension 11) You can make a purchase in a referral mall. Answer: False Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Communication Bloomcode: Comprehension 12) Selling products such as books and computers on the Internet may reduce vendors’ selling costs by 20 to 40 percent, with further reductions being difficult because the products must be delivered physically. Answer: True Difficulty: Medium Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Analytic Bloomcode: Evaluation 13) A virtual bank involves conducting banking activities from home, a place of business, or on the road in addition to a physical bank location. Answer: False Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Communication Bloomcode: Comprehension 14) It is more difficult but possible to sell luxury goods online. Answer: True Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Analytic Bloomcode: Evaluation 15) Virtual banks are those banks that are dedicated only to Internet transactions. Answer: True Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Analytic Bloomcode: Comprehension 16) Channel conflict occurs when click-and-mortar companies have problems with their regular distributors when they sell directly to customers online. Answer: True Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Analytic Bloomcode: Evaluation 17) Internet advertising is impersonal, one-way mass communication. Answer: False Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Communication Bloomcode: Knowledge 18) Electronic malls are collections of individual shops under a single Internet address. Answer: True Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Communication Bloomcode: Comprehension 19) Banners are the most common form of advertisement on the Internet. Answer: True Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Analytic Bloomcode: Evaluation 20) Hacking is the indiscriminate distribution of electronic ads without permission of the receiver. Answer: False Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Communication Bloomcode: Knowledge 21) Business-to-consumer applications comprise the majority of electronic commerce volume. Answer: False Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Analytic Bloomcode: Evaluation 22) Channel conflict occurs when manufacturers disintermediate their channel partners by selling their products directly to consumers. Answer: True Difficulty: Medium Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Analytic Bloomcode: Evaluation 23) The key mechanisms in the sell-side marketplace are customized electronic catalogs and reverse auctions. Answer: False Difficulty: Easy Learning Objective: Describe the three business models for business-to-business electronic commerce. Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce AACSB: Communication Bloomcode: Comprehension 24) Forward auctions are the major method used in buy-side marketplaces. Answer: False Difficulty: Easy Learning Objective: Describe the three business models for business-to-business electronic commerce. Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce AACSB: Communication Bloomcode: Comprehension 25) The buy-side marketplace is similar to the business-to-consumer model. Answer: False Difficulty: Easy Learning Objective: Describe the three business models for business-to-business electronic commerce. Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce AACSB: Communication Bloomcode: Comprehension 26) When multiple buyers combine their orders so that they constitute a large volume and therefore attract more seller attention, it is called group purchasing. Answer: True Difficulty: Easy Learning Objective: Describe the three business models for business-to-business electronic commerce. Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce AACSB: Reflective Thinking Bloomcode: Analysis 27) Horizontal exchanges connect buyers and sellers across many industries. Answer: True Difficulty: Easy Learning Objective: Describe the three business models for business-to-business electronic commerce. Section Reference: 7.3 Business-to-Business (B2B) Electronic Commerce AACSB: Communication Bloomcode: Knowledge 28) Cybersquatting is illegal. Answer: False Difficulty: Medium Learning Objective: Identify the ethical and legal issues related to electronic commerce, providing examples. Section Reference: 7.4 Ethical and Legal Issues in E-Business AACSB: Communication Bloomcode: Knowledge 29) Selling luxury items online is as easy as selling books and DVDs. Answer: False Difficulty: Medium Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Reflective Thinking Bloomcode: Comprehension 30) Domain tasting is a practice of registrants using the five-day “grace period” at the beginning of a domain registration to profit from pay-per-click advertising. Answer: True Difficulty: Medium Learning Objective: Identify the ethical and legal issues related to electronic commerce, providing examples. Section Reference: 7.4 Ethical and Legal Issues in E-Business AACSB: Communication Bloomcode: Knowledge Question type: Multiple Choice 31) You decide to start a landscaping business called Trim Grass. One of your services will be to perform fertilizer treatments. You will need to buy a great deal of fertilizer for your many clients. You can use all of the following methods to purchase the fertilizer except: a) Forward auction b) Reverse auction c) Name your Own Price d) Electronic Marketplace e) Multichanneling Answer: e Difficulty: Medium Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Analytic Bloomcode: Analysis 32) You decide to start a landscaping business called Trim Grass. You created a Web site, but it doesn’t seem to be attracting any clients. So, you decide to explore advertising on the Web. Which of the following advertising methods probably would not be beneficial? a) Banner ads b) Pop-up or pop-under ads c) Spamming d) Permission marketing e) Viral marketing Answer: c Difficulty: Medium Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Analytic Bloomcode: Evaluation 33) _____, which is a broader concept than _____, is the buying and selling of goods and services, as well as servicing customers, collaborating with business partners, and performing transactions within an organization. a) Business-to-business electronic commerce, business-to-customer electronic commerce b) Electronic commerce, electronic business c) Business-to-customer electronic commerce, business-to-business electronic commerce d) Business-to-business electronic commerce, intrabusiness electronic commerce e) Electronic business, electronic commerce Answer: e Difficulty: Medium Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Reflective Thinking Bloomcode: Synthesis 34) ____________ organizations have a limited geographical reach. a) Brick-and-mortar b) Business-to-consumer c) Click-and-mortar d) Virtual Answer: a Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Communication Bloomcode: Comprehension 35) The _____________ strategy for large retailers, with its accompanying high overhead costs, has become a liability rather than an asset. a) Brick-and-mortar b) Business-to-consumer c) Clicks-and-mortar d) Virtual Answer: a Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Communication Bloomcode: Comprehension 36) The degree of digitization relates to all of the following except: a) The product or service sold b) The process by which the product is produced c) The delivery agent or intermediary d) The size of e-commerce transactions e) None of these Answer: d Difficulty: Medium Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Reflective Thinking Bloomcode: Comprehension 37) In _______ e-commerce, the sellers and buyers are organizations. a) government-to-citizen b) consumer-to-consumer c) business-to-business d) business-to-consumer e) consumer-to-business Answer: c Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Communication Bloomcode: Knowledge 38) In ________ e-commerce, an organization provides information and services to its workers. a) business-to-employee b) consumer-to-consumer c) consumer-to-business d) business-to-consumer e) government-to-business Answer: a Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Communication Bloomcode: Knowledge 39) Which of the following is a disadvantage of click-and-mortar organizations? a) Limited geographical reach b) Added complexity combining two different environments c) Customers uncomfortable with online transactions d) No face-to-face interaction with customers Answer: b Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Communication Bloomcode: Knowledge 40) __________ represents the vast majority of e-commerce. a) B2B b) B2C c) C2C d) G2C Answer: a Difficulty: Medium Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Analytic Bloomcode: Evaluation 41) In a reverse auction, the __________ bidder wins. a) lowest b) highest c) neutral d) nobody wins since this auction type doesn’t exist Answer: a Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Communication Bloomcode: Comprehension 42) ___________ marketing encourages receivers to send information about products/services to their friends. a) Affiliate b) Electronic c) Group d) Viral Answer: d Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Analytic Bloomcode: Analysis 43) Which of the following is a benefit of e-commerce to customers? a) Makes national and international markets more accessible. b) Lowering costs of processing, distributing, and retrieving information. c) Access a vast number of products and services around the clock. d) Ability to easily and conveniently deliver information, services, and products to people in cities, rural areas, and developing countries. Answer: c Difficulty: Medium Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Analytic Bloomcode: Evaluation 44) Direct payment of Employment Insurance benefits is an example of ______ e-commerce. a) government-to-citizen b) consumer-to-consumer c) consumer-to-business d) business-to-consumer e) business-to-business Answer: a Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Reflective Thinking Bloomcode: Application 45) If you are a worker managing your fringe benefits over your company’s intranet, you are engaging in _________ e-commerce. a) business-to-business b) business-to-consumer c) consumer-to-consumer d) business-to-employee e) government-to-citizen Answer: d Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Reflective Thinking Bloomcode: Application 46) Which of the following statements regarding the relationship between electronic commerce and search is not correct? a) Purchases often follow successful online searches. b) Shopping carts are often abandoned after unsuccessful online searches. c) Retailers will provide fewer product details to avoid information overload for customers. d) Customers will be able to find the closest store offering the product that they want. e) Customers will have more relevant product information in the near future. Answer: c Difficulty: Medium Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Reflective Thinking Bloomcode: Application 47) In _____ auctions, there is one buyer who wants to buy a product. Suppliers submit bids, and the lowest bid wins. a) forward b) static c) reverse d) physical e) simple Answer: c Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Communication Bloomcode: Knowledge 48) eBay uses a _____ auction. a) forward b) static c) reverse d) physical e) simple Answer: a Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Communication Bloomcode: Application 49) _____ auctions employ a request for quotation. a) Forward b) Static c) Reverse d) Physical e) Simple Answer: c Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Communication Bloomcode: Knowledge 50) _____ auctions are the most common auction model for large purchases. a) Forward b) Static c) Reverse d) Physical e) Simple Answer: c Difficulty: Easy Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Communication Bloomcode: Knowledge 51) In which of the following business models do businesses request quotes from suppliers and use B2B with a reverse auction mechanism? a) Find-the-best-price b) Electronic tendering system c) Name-your-own-price d) Online direct marketing e) Affiliate marketing Answer: b Difficulty: Hard Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Information Technology Bloomcode: Knowledge 52) ___________ involves business requesting quotes from suppliers. a) Find-the-best-price b) Electronic tendering system c) Name-your-own-price d) Online direct marketing e) Affiliate marketing Answer: b Difficulty: Hard Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Information Technology Bloomcode: Knowledge 53) A vendor asks its business partners to place logos or banners on their Web sites. If customers click on a logo, visit the vendor’s site, and make a purchase, then the vendor pays a commission to the partner. This scenario illustrates which business model? a) Find-the-best-price b) Electronic tendering system c) Name-your-own-price d) Online direct marketing e) Affiliate marketing Answer: e Difficulty: Medium Learning Objective: Describe the six common types of electronic commerce. Section Reference: 7.1 Overview of E-Business and E-Commerce AACSB: Analytic Bloomcode: Application 54) Which type of electronic commerce is the largest by volume? a) Business-to-employee b) Consumer-to-consumer c) Business-to-business d) Business-to-consumer e) None of these Answer: c Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Reflective Thinking Bloomcode: Evaluation 55) ____________ advertising is when the company only pays for measurable results. a) Brand b) Click-through c) Impression-based d) Performance-based Answer: d Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Reflective Thinking Bloomcode: Knowledge 56) Which of the following are luxury shoppers’ requirements that a Web site could not originally provide? a) Hands-on customer service b) Guidance on the latest fashions c) Trying on/looking at the products d) All of the above are things that couldn’t originally be provided Answer: d Difficulty: Medium Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Reflective Thinking Bloomcode: Application 57) Which type of electronic commerce does Amazon practice? a) Business-to-employee b) Consumer-to-consumer c) Consumer- to-business d) Business-to-consumer e) Employee-to-business Answer: d Difficulty: Medium Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Reflective Thinking Bloomcode: Application 58) How are other retailers competing with Amazon? a) They are closing their stores and moving toward online only. b) They are shipping products from more warehouses just like Amazon. c) They are opening more stores to increase their presence. d) They are shipping directly from their stores. e) None of the above Answer: d Difficulty: Medium Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: Case 7.1 The Omni-Channel Strategy to Compete with Amazon AACSB: Information Technology Bloomcode: Knowledge 59) _______ e-commerce is also known as e-tailing. a) Business-to-business b) Collaborative commerce c) Intrabusiness d) Business-to-consumer e) Consumer-to-business Answer: d Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Analytic Bloomcode: Knowledge 60) The advantages of electronic commerce for consumers include all of the following except: a) You can buy from home 24 hours per day, 7 days per week. b) You have a wider variety of products to choose from. c) You typically cannot access additional information, so you do not have information overload. d) You can easily compare prices and features. e) You can find unique items. Answer: c Difficulty: Medium Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Analytic Bloomcode: Evaluation 61) An electronic storefront represents ____________. a) the Internet b) a single store c) multiple stores d) a web page Answer: b Difficulty: Easy Learning Objective: Describe the various online services of business-to-consumer (B2C) commerce, providing specific examples of each. Section Reference: 7.2 Business-to-Consumer (B2C) Electronic Commerce AACSB: Analytic Bloomcode: Comprehension
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