BAM 570 (e-commerce mangement)

Author(s):

Efraim Turban, David King, Jae Lee, Ting-Peng Liang, Deborrah Turban

BAM 570

E-Commerce Management

Text: Electronic Commerce: A Managerial Perspective

Sixth Edition, 2010
ISBN-1 0: 0-13-610036-8
Publisher:

Pearson Prentice Hall
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Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1) The 2008 Olympics in Beijing was the most digital Olympics to date for each of the following
reasons except:
a. many of the tickets were purchased online by people worldwide, using Beijing Gehue
Ticketmaster, in what is called business-to-business (B2B) e-commerce.
b. the International Olympic Committee launched a YouTube channel to broadcast clips
that were accessible in many developing countries.
c. millions watched the Olympics through online videos and Internet-enabled cell phones
and other mobile devices.
d. global Positioning Systems (GPS) were used to track the position of sailing and rowing
boats.
2) EC can take several forms depending on the degree of digitization of the following three
dimensions:
a. the product or service sold, the process, and the delivery method.
b. the business process, the collaboration, and the transaction.
c. the payment method, the delivery method, and the production method.
d. the marketing channel, the agent, and the collaboration method.
3) Boeing designing a product together with one of its business partners is an example of this
type of interaction.
a. Collaborative commerce
b. Nonbusiness EC
c. B2B3C
d.B2B2C
4) Many companies employ a(n) which is a gateway for customers, employees and
partners to reach corporate information and to communicate with the company.
a. corporate portal
b. intra net
c. extra net
d. social network
5) The digital enterprise shifts the focus from managing individual information resources such as
devices, applications, and data to that define the business and ultimately deliver
value to customers and end users.
a. developing models
b. orchestrating the services and workflows
c. organizing supply chains
d. transforming revenue models
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6) According to the Business Environment and Performance Impact Model, provide
support to organizations’ activities and to actual performance, countering business pressures.
a. EC and IT
b. missions and strategies
c. core competencies and critical response activities
d. markets and government
7) All of the following are benefits of EC to society except:
a. more public services.
b. closing the digital divide.
c. fewer permits and less tax.
d. improve homeland security.
8) Which of the following is a technological limitation of EC?
a. Security and privacy concerns that deter customers from buying
b. Difficulty obtaining venture capital
c. Order fulfillment requirements of large-scale B2C
d. Unresolved taxation, public policy, and legal issues
9) All of the following are non-technological limitations of EC except:
a. software development tools are still evolving.
b. lack of trust in EC and in unknown sellers hinders buying.
c. people do not yet sufficiently trust paperless, faceless transactions.
d. online fraud is increasing.
, 0) Which of the following is not one of the EC trends?
a. EC topics have been integrated into all functional fields.
b. EC is penetrating more and more business areas, services and governments.
c. EC applications frequently cross departmental and organizational boundaries.
d. National and international government regulations of EC have been resolved.
, t) The success of the entrepreneurial company JetPens was due to keeping costs low by each of
the following methods except:
a. using open source free software.
b. advertising via e-rnall.
c. giving away free samples via social networks.
d. using smart key words to rank high with search engines.
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12) Eastern Mountain Sports introduced tools in order to increase collaboration,
information sharing, and communication among stores and their employees, suppliers, and
customers.
a. business intelligence
b.B2B
c. B2C
d. Web 2.0
13) Online markets that are owned and operated by a single company and that are either sell-side
or buy-side are known as _
a. private e-marketplaces
b. commercial portals
c. e-malls
d. B2B marketplaces
14) Employees may waste time trying to find relevant and accurate information if they have to
access multiple information systems. The best solution to this problem is the use of _
a. Web portals
b. intermediaries
c. browsers
d. intra nets
15) A type of broker that helps consumers compare different stores is a _
a. remediator
b. search engine
c. comparison agent
d. virtual mall
16) E-catalogs have several common characteristics. Which of the following is not a characteristic
of e-catalogs?
a. Easy to create without advanced information technology
b. Easy to update product information
c. Easy to customize
d. Good search and comparison capabilities
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17) The most common and traditional form of auctions in which one seller entertains bids from
many buyers is referred to as _
a. forward auctions
b. reverse auctions
c. bidding auction system
d. tendering system
18) What is a benefit of e-auctions to the sellers?
a. anonymity
b. optimal price determined by the market
c. lack of differentiation
d. convenience of bidding anywhere and any time
19) provides customers with exactly what they want, when and where they want it.
Effective communication between the supply chain and the factory floor is needed to make it
happen.
a. Build-to-order manufacturing
b. Demand-driven manufacturing
c. Real-time manufacturing
d. Virtual manufacturing
20) Which of the following is a characteristic of e-tailing?
a. Competition is local.
b. Customer relations are less stable due to anonymous contacts.
c. Price changes are expensive, but can be done at anytime.
d. Fewer resources are needed to increase customer loyalty.
21) A marketer that uses e-mail to advertise to potential customers is called a _
a. market maker
b. transaction broker
c. content disseminator
d. viral marketer
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22) In an e-market, Federal Express and PayPal are examples of _
a. intermediaries
b. service providers
c. content disseminators
d. viral marketers
23) Compared to the traditional job market, the online job market _
a. has a shorter life cycle
b. is usually specialized and local in scope
c. tends to be less reliable
d. tends to be much less expensive
24) Gateways to storefronts and e-malls are referred to as _
a. shopping portals
b. shopbots
c. shopping browsers
d. intelligent search engines
25) Software tools that scout the Web for stores that sell similar items at low prices are called
a. shopping portals
b. shopbots
c. shopping browsers
d. intelligent search engines
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Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1) Paws ‘n Tails is an online pet shop that wants to influence what customers buy and build
effective customer relationships and loyalty. What is the key to influencing behavior and building
these relationships?
a. Understanding consumer online behavior and then influencing it through advertising and
promotions
b. Understanding competitors’ pricing strategy and then undercutting it
c. Identifying the wants and needs of major customer segments
d. Suggesting as many products as possible to online shoppers as soon as they visit the EC
site
2) A(n) is someone whose advice or view carries some weight in making a final
purchasing decision.
a. initiator
b. influencer
c. decider
d. buyer
3) The use of cookies _
a. is one of the most controversial issues in EC
b. has not helped Internet marketers target their ads
c. is a widely used method for mass marketing
d. is being replaced by adware and spyware programs
4) Once a company knows a consumer’s preferences, the company can predict, without asking the
consumer directly, what other products or services that consumer might enjoy through
a. active web bugs
b. spyware
c. collaborative filtering
d. personalization
5) Which of the following is not a specific method for collecting online data?
a. Phone surveys to learn if there are too many products for the customer to look through
b. E-mail communication with individual customers
c. Moderated focus groups conducted in chat rooms
d. Tracking customers’ movements on the Web
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6) Two key factors limiting the use of personalization to more precisely target marketing efforts to
individual customers are _
a. matching profiles with product offerings and delivering those offerings
b. communication costs and filtering costs
c. privacy and trust issues
d. lack of customer loyalty and service customization costs
7) Which of the following statements about Web mining is false?
a. Web mining refers to the use of data mining techniques for discovering and extracting
information from Web documents.
b. Web mining explores both Web content and Web usage.
c. Web mining uses customer data to infer or predict customer interest in other products or
services.
d. Usage analysis is derived from clickstream data.
8) is an advertising network that a B2B company can use as part of its advertising
strategy to reach new customers.
a. Amazon.com
b. BBB Online
c. DoubleClick
d. WebMonkey
9) The popularity of Apple’s iPhone and Application Store has made important to
advertisers, who see social networking widgets, restaurant locators, mobile games, and other
applications as prime targets,
a. stickiness
b. direct marketing
c. mobile advertising
d,bannerads
10) Banner advertising on Websites helps trigger a realization that there is a gap between
reality and a desired state, which occurs in the stage of the EC purchase
decision-making process.
a. need identification or recognition
b. information search
c. evaluation
d. product or merchant brokering
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11) As the volume of customers, products, vendors, and information increases, it becomes
uneconomical or impossible for customers to consider all relevant information and available
products/services. The practical solution to handling such information overload is
a. to use permission marketing
b. to use software or intelligent agents
c. to increase the use of ad agencies
d. to design Websites with minimal content
12) Portsmouth Hospitals NHS Trust, which provided health-care services for almost 1 million
people in the United Kingdom, cut back-office purchasing costs by _
a. using online reverse auctions to purchase from suppliers at the the lowest mutually
acceptable purchase price
b. implementing online catalogs
c. buying via its intranet
d. using collaborative commerce
13) B2B transactions that involve communication, design, planning, information sharing, and
activities beyond financial transactions among business partners is referred to as
a. exchanges
b. collaborative commerce
c. trading communities
d. public marketplaces
14) 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.
a. horizontal marketplace
b. vertical market
c. supply chain
d. production chain
15) Which of the following is not one of the major benefits of B2B for both buyers and sellers?
a. Expedites processing and reduces cycle time
b. Reduces procurement costs
c. Enables customized online catalogs with different prices for different customers
d. Increases opportunities for collaboration
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16) All are benefits of B2B except:
a. creates new sales or purchase opportunities.
b. eliminates paper and reduces administrative costs.
c. increases channel conflict.
d. lowers search costs and time for buyers to find products and vendors.
17) EC companies will usually separate their B2C orders from their B2B orders because B2C and
B2B orders have different _
a. buying and delivery processes.
b. accounting and financial processes.
c. marketing processes.
d. order-fulfillment processes and pricing.
18) A company’s acquisition Website that uses e-procurement methods such as reverse auctions,
negotiations, or group purchasing to overcome the manual searching of e-stores is referred to
as _
a. desktop procurement method
b. buy-side e-marketplace
c. an intermediary
d. aggregated catalog
19) Denver Boards, a B2B manufacturer of snowboard equipment, can reach and target new retail
customers in order to grow its online business by _
a. hiring an affiliation service to drive traffic to its Website.
b. reviewing pas data.
c. mining data.
d. advertising in traditional media.
20) A company’s internal operations and its relationships with suppliers and other business
partners are frequently _
a. as complex as customer-facing applications such as taking an order online.
b. much more complex than customer-facing applications such as taking an order online.
c. much less complex than customer-facing applications such as taking an order online.
d. replaced by customer-facing applications.
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21) The last fifteen orders from a manufacturer to its suppliers range from $’00,000 to
$8,750,000. This is an example of _
a. the bullwhip effect
b. demand manipulation
c. supply inadequacy
d. order instability
22) A major block in the widespread implementation of collaborative commerce is _
a. the theory of collaborative commerce hasn’t been proven effective in real-world
applications.
b. the technology needed isn’t available.
c. collaborative commerce is extremely expensive.
d. the lack of universally accepted standards.
23) All of the following are true about product life cycle management (PLM) except:
a. PLM can have significant beneficial impacts in cycle time, design reuse, and
engineering.
b. The demand for PLM is limited because it does not apply to products that have short
life cycles or are complex.
c. PLM is a big step for an organization because it requires integrating different processes
and systems.
d. PLM tools are offered by major IT companies such as SAP and IBM.
24) The Lotus Notes/Domino suite includes all of the following except:
a. instant video.
b. document management.
c. database.
d. communication support.
25) Infrastructure needed for groupware include all of the following except:
a. VoIP.
b. intranets.
c. extra nets.
d. the Internet.
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Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1) All of the following are examples of e-government except:
a. an eBay-selier sells surplus army supplies.
b. a contractor submits an application for a building permit using a city hall Web site.
c. an unemployed worker consults a Website operated by the state employment
department to learn about job openings in his city.
d. a citizen takes an online drivers’ education course.
2) An example of G2C is _
a. an employee at the Chamber of Commerce gets local demographic data from a u.s.
census site.
b. a driver applies for and pays for the renewal of his auto tag online.
c. a road contractor uses the Internet to submit a closed bid on a paving contract.
d. a regional hospital conducts an online reverse auction for cleaning supplies.
3) Sharing information more quickly and conveniently between the federal and state, local, and
tribal governments is a performance objective of which category of e-government?
a. G2C
b. G2B
c. G2G
d.IEE
4) Chaplin reports quarterly sales revenue from his business to city hall over the Internet. He pays
his local business tax with a credit card. This is an example of _
a. e-government
b. G2C e-commerce
c. G2B e-commerce
d. e-procurement
5) A government agency uses a reverse e-auction to comply with the tendering system
requirements specified by law. This is an example of _
a. e-government
b. G2C e-commerce
c. G2B e-commerce
d. e-procurement
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6) What motivated the implementation of government e-procurement?
a. Governments must interact with other types of governments on a daily basis.
b. Governments buy large amounts of MROs and other materials directly from suppliers.
c. The government needs to offer training and education to thousands of employees.
d. Technology made it possible to quickly implement government-wide systems.
7) All of the following describe Second Life (SL) and SL Educators (SLED) except:
a. SLED sponsors meet-and-greet events in SL, helping real-life educators to connect with
each other.
b. Educators have been slow to embrace SL because of the complexity of its media-rich
features.
c. Students and educators can work together in SL from anywhere in the world as part of a
globally networked virtual classroom environment.
d. Using SL as a supplement to traditional classroom environments provides new
opportunities for enriching existing curricula.
8) More and more people are willing to pay for digital music, as shown by the success of
a. Napster
b.Kazaa
c. iTunes
d.P2P
9) E-books can be delivered in all of the following ways except:
a. via Web access.
b. via Web download.
c. via RFID.
d. via dedicated reader.
10) The primary advantage that e-books offer publishers is _
a. the ability to reach many readers
b. lower production, marketing, and delivery costs
c. the ease of customizing textbooks and trade books
d. the ease of updating books in real-time
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11) A major purpose of an organizational knowledge base is to support and allow _
a. knowledge sharing
b.e-Iearning
c. responsible blogging
d. organizational capital
12) M-commerce transactions and activities require and _
a. wired networks; access points
b. cell phones; portable computers
c. hardware and software infrastructures; infrastructure support
d. smartphones; switches
, 3) Characteristics of mobile devices that need to be considered when designing mobile
computing systems include all of the following except:
a. small screens.
b. reduced memory.
c. restricted input capabilities.
d. broad bandwidth.
‘4) A is suitable for mobile users who need to make very short-range device-to-device
wireless connections within a small space, such as a single room, and most commonly with
Bluetooth.
a. personal area network
b. local area network
c. wireless area network
d. Wi-Fi area network
‘5) A(n) is a computer system capable of integrating, storing, editing, analyzing,
sharing, and displaying spatial information.
a. GIS
b. GPS
c. L-commerce system
d. OnStar system
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16) You are walking near a coffee shop and suddenly your cell phone beeps with a message:
“Come inside and get a free biscotti with any purchase.This is an example of _
a. permission marketing
b. location-based advertising
c. customer relationship management
d. m-commerce
17) Health risks of cell phone use include all of the following except:
a. cell phone addiction.
b. damage from cell radio frequency emissions.
c. spinal injury.
d. repetitive stress injury.
18) Ethical issues raised by m-commerce include all of the following except:
a. limited access to data and documents.
b. privacy invasion.
c. infringing on workers’personal time.
d. isolation.
19) In order to protect the privacy of individuals, privacy protection defenses must be _
a. designed into RFID tags, nodes, and networks
b. addressed in a post hoc fashion
c. addressed in an ad hoc fashion
d. the responsibility of government agencies
20) The banking industry was a good candidate for disruption by person-to-person (P2P)
technology and disintermediation by ZOPA because _
a. the industry offers a widely-needed service
b. of fierce competition and low barriers to entry
c. the industry was making huge profit margins off customers
d. the industry had small profit margins
21) are companies that introduce a significant change in their industries, thus
causing a disruption in normal business operations.
a. Disruptors
b. Mashups
c. Information clouds
d.Web 3.0
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22) The real estate brokerage industry has been disrupted by companies such as Zillow and
HomeGain for each of the following reasons except:
a. Homeowners can enter zillow.com and go to zestimate to get an approximation of their
home’s market value with a map of the neighborhood.
b. The Zillow and Homegain sites provide more services and information than Web 1.0.
c. The Web 2.0 real estate sites have driven down commissions from 6 percent to almost 1
percent.
d. Homeowners can get comparisons of the estimated price of their home with neighbors’
homes.
23) Companies can interface with social networks in all of the following ways except:
a. use search engine optimization (SEO) to increase search engine ranking.
b. use existing public social networks, such as Facebook or MySpace, or virtual worlds,
such as Second Life to create pages and microcommunities.
c. create an in-house private social network and then use it for communication and
collaboration among employees and retirees or with outsiders.
d. conduct business activities in a business-oriented social network, such as Linkedln, or
sponsor such a site.
24) Craigslist and MySpace provide to search based on friends and contacts or by
geographic proximity.
a. entrepreneurial networks
b. classifieds and job listings
c. virtual malls
d. advertising campaigns
25) has/have the potential to enable faster connectivity, richer ways of interacting, and
more powerful search engines.
a. Enterprise applications
b. Application program interface (API) services
c. Web 3.0
d. RSS and Web services
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Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1) Capabilities of the Internet that have made it more difficult for companies to capture profits
include all of the following except:
a. the Internet makes information widely available.
b. the Internet reduces the difficulty of purchasing, marketing, and distribution.
c. the Internet allows buyers and sellers to find and transact business with one another
more easily.
d. the Internet makes it easier to make secure payments.
2) All of the following are situations when a business plan should be done except:
a. when an existing business is deploying a CRM system.
b. when a new business is seeking start-up funds and other resources.
c. when an existing company is planning to create a separate division.
d. when an existing company is planning to launch the company in a new direction.
3) The most efficient way to expand an organization’s scope is _
a. to introduce new products or services into new or existing markets without increasing
production facilities or staff.
b. by increasing the size or scale of the business.
c. by expanding the firm’s appeal to a new set of customers.
d. to buy a company with complementary products or services.
4) are the hottest applications in today’s business environment.
a. Virtual worlds
b. Rich media
c. Social networking technologies
d. Online brands
5) All of the following determine the degree of collaboration between offline and online activities
in a business except:
a. corporate culture.
b. the ability of top management to introduce change properly.
c. the pricing strategy.
d. the use of innovative processes that support collaboration.
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6) The pricing strategy means adding up all the costs involved, such as material,
labor, rent, overhead, and so forth and adding a percentage mark-up as profit.
a. cost-plus
b. competitor model
c. revenue markup
d. price percentage
7) Implementing EC often requires significant investments in infrastructure. Therefore, a good way
to start is to undertake _
a. a large, non-trivial EC project
b. one or a few small EC pilot projects
c. a multi-divisional EC project
d. a single division EC project
8) 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.
a. temporary corporation
b. supply chain
c. virtual corporation
d. co-opetition
9) With the balanced scorecard approach, the term balance arises because the combined set of
measures is supposed to encompass indicators that are all of the following except:
a. core and non-core.
b. financial and nonfinancial.
c. leading and lagging.
d. quantitative and qualitative.
10) The relationship between EC investment and organizational performance is _
a. direct
b. indirect
c. shared with other investments
d. not measurable
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11) The New York Metropolitan Transit Authority (MTA) did not need to open another airport for
almost two decades, 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, passenger and luggage check-in, crew assignment and scheduling, runway
maintenance and management, and gate assignments. This case illustrates that _
a. intangible benefits can be complex, yet substantial
b. tangible benefits can be complex, yet substantial
c. tangible costs can be high, yet payoffs can be achieved quickly
d. intangible costs can be high, yet payoffs can be achieved quickly
12) Justifying information security projects _
a. is not needed because it is well-known that preventing network security problems is less
labor intensive than cleaning up virus infections.
b. is not done because ROI calculators are not available.
c. should focus on defending against external threats such as hackers and malware.
d. should be done because employee security training is usually poorly done.
13) The average-cost curves (AVC) of physical products and digital products are _
a. different because the AVC of digital products declines as quantity increases forming
l-shape, while the AVC of physical products is U-shaped.
b. both U-shaped.
c. both L-shaped.
d. different because the AVC of physical products declines as quantity increases
forming an l-shape, while the AVC of digital products is U-shaped.
14) All of the following apply to EC in developing economies except:
a. 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 payoff and when.
b. developing economies, such as China and India, represent a significant opportunity for
EC to connect businesses to customers, as well as other businesses.
c. developing economies struggle with various issues that create too many business and
technology risks to justify investment in those economies at this time.
d. 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.
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15) As a company moves to incorporate an online presence with its traditional brick-and-mortar
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 _
a. transaction costs
b. complementary investments
e. direct costs
d. indirect costs
16) The greatest difficulty in dealing with venture capital is _
a. the loss of control a venture capitalist demands.
b. finding a willing venture capitalist.
e. finding the money a venture capitalist will require.
d. relocating the business to an incubator.
17) The concept of consistency in Website design includes making sure that _
a. webpages look the same no matter which browser a customer is using.
b. all visitors consistently find what they are looking for.
e. the messages sent to customers who contact the company are consistent.
d. customers are treated consistently when they contact customer service.
18) One of the first decisions to be made in building a Website is _
a. the domain name.
b. whether to provide personalized content.
e. how to protect the Website from hackers.
d. who will host it.
19) Banks are more selective about who gets an account for accepting credit cards online because
a. dot com failures have made banks less willing to work with online companies
b. CNP transactions are less secure and riskier
e. fees are higher for online processing
d. online transactions do not produce much revenue for banks
20) Before choosing the appropriate Website development option, you need to consider all of the
following issues in order to generate a list of requirements and capabilities except:
a. Who are the target customers?
b. What kinds of products or services will the business sell online?
e. Can customers place orders online?
d. What might be the reaction of competitors?
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21) Having control over the collection, storage, and dissemination of personal information is
included in the category of _
a. property
b. rights
c. duties
d. privacy
22) 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.
a. criminal charge
b. negligence charge
c. nuisance charge
d. lawsuit or civil charge
23) Section 5 of the FTC Act does each of the following except:
a. prohibits unfair or deceptive EC practices.
b. gives the FTC authority to take action against companies whose lax security practices
could expose customers/financial information to theft or loss.
c. protects privacy.
d. requires monitoring of employees’ e-mall.
24) Companies can improve their responsibility as custodians of customers’ personal data by
implementing _
a. opt-in and opt-out information practices
b.AUP
c. e-mail monitoring
d. firewalls
25) The gives law enforcement agencies broader range in their efforts to protect the
public.
a. American Civil Liberties Union (ACLU)
b. Electronic Freedom Foundation (EFF)
c. U.s. Department of Justice (DOJ)
d. USA PATRIOT Act
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