E-Commerce Final Study Guide

Chapters 6, 7, 8, 9, 12

Which of the following is the most important tool in establishing a relationship with the customer?

A) company website

B) company CRM system

C) search engine display ads

D) Facebook

A) company website

Which of the following features of e-commerce technology enables marketers to engage customers in a dialog and dynamically adjust the experience to the consumer?

A) interactivity

B) information density

C) ubiquity

D) richness

A) interactivity

Pinterest's Lens is an example of which of the following?

A) voice search

B) visual search

C) SEO

D) keyword advertising

B) visual search

Recency refers to the:

A) percentage of existing customers who continue to buy on a regular basis.

B) time elapsed since the last visit made by a customer.

C) percentage of customers who do not return during the next year after an initial purchase.

D) percentage of customers who return to the site within a year to make additional purchases.

B) time elapsed since the last visit made by a customer.

A roughly equal percentage of men and women in the United States use the Internet today.

True

False

True

The marketing technique known as ________ involves merchants offering many products for which there is little demand.

A) yield management

B) flash marketing

C) bait-and-switch

D) long tail marketing

D) long tail marketing

A ________ is a repository of customer information that records all contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to know the customer.

A) CRM system

B) transactive content system

C) data warehouse

D) customer service chat system

A) CRM system

All of the following are "traditional" online marketing tools except:

A) sponsorship marketing

B) e-mail and permission marketing

C) social marketing

D) affiliate marketing

C) social marketing

The incremental cost of building the next unit of a good is called the:

A) Law of One Price

B) fixed cost

C) variable cost

D) marginal cost

D) marginal cost

If you want to determine the size of your website's audience, the metric you will use for the most accurate measurement will be:

A) unique visitors

B) page views

C) reach

D) hits

A) unique visitors

Which of the following online advertising formats attracted the least amount of spending in 2020?

A) classifieds

B) e-mail

C) search

D) rich media

B) e-mail

Which of the following statements about a free pricing strategy is not true?

A) Free products and services can help build market awareness.

B) Free products and services can knock out potential and actual competitors.

C) It is difficult to convert free customers into paying customers.

D) The free pricing strategy was born in the early days of the Web.

D) The free pricing strategy was born in the early days of the Web.

All of the following are online communications used to support the evaluation of alternatives stage of the consumer decision process except:

A) targeted banner ads

B) online catalogs

C) search engines

D) social networks

A) targeted banner ads

The richness made possible by e-commerce technologies does which of the following?

A) It allows video, audio, and text to be integrated into a single marketing message and consuming experience.

B) It reduces the cost of delivering marketing messages and receiving feedback from users.

C) It allows consumers to become co-producers of the goods and services being sold.

D) It enables worldwide customer service and marketing communications.

A) It allows video, audio, and text to be integrated into a single marketing message and consuming experience.

A web beacon is:

A) a cookie that carries a virus

B) an automated applet for performing web searches

C) a tiny graphics file embedded in an e-mail or web page

D) an executable cookie

C) a tiny graphics file embedded in an e-mail or web page

Which of the following measures the average length of stay at a website?

A) retention rate

B) stickiness

C) loyalty

D) page views

B) stickiness

Which of the following measures the percentage of e-mails that could not be delivered?

A) bounce-back rate

B) attrition rate

C) abandonment rate

D) unsubscribe rate

A) bounce-back rate

What was the approximate Internet penetration rate in 2019 for individuals that have attained less than a high-school education?

A) 51%

B) 81%

C) 61%

D) 71%

D) 71%

Uber has been criticized for using which of the following?

A) bundling

B) surge pricing

C) malware

D) flash marketing

B) surge pricing

Creating multiple variations of information goods and selling these to different market segments at different prices is called:

A) bundling.

B) dynamic pricing.

C) versioning.

D) customization.

C) versioning.

How much time a month does the average U.S. adult spend on Facebook?

A) about 7 hours

B) about 10 hours

C) about 17 hours

D) about 27 hours

C) about 17 hours

Which of the following generates the most mobile ad spending?

A) SMS text messages

B) Video ads

C) Search engine advertising

D) Display ads

C) Search engine advertising

Which of the following allows Facebook to track user behavior on other sites?

A) Like button

B) Hashtags

C) Facebook Watch

D) Open Graph

A) Like button

TikTok is owned by Facebook.

True/False

False

Which of the following is a micro-blogging social network site that allows users to send and receive 280-character messages, as well as news articles, photos, and videos?

A) Instagram

B) Pinterest

C) Facebook

D) Twitter

D) Twitter

All of the following are examples of dark social except:

A) E-mail

B) SMS texts

C) Instant messages

D) Tweets

D) Tweets

In 2020, the amount spent on local (digital) marketing is expected to exceed the amount spent on mobile marketing.

True/False

False

People spend the most time doing which of the following when using a mobile device?

A) Reading news and magazines

B) Listening to music

C) Watching videos

D) Interacting on social networks

B) Listening to music

All of the following were popular types of online marketing before 2007 except:

A) E-mail

B) Mobile marketing

C) Display ads

D) Corporate websites

B) Mobile marketing

Which of the following statements about Instagram is not true?

A) Instagram is expected to generate around $16 billion in ad revenues in 2020.

B) Instagram has over 1 billion users worldwide.

C) Instagram's most rapidly growing demographic group is comprised of people under the age of 35.

D) Instagram is owned by Facebook.

C) Instagram's most rapidly growing demographic group is comprised of people under the age of 35.

Encouraging users to click a Like button is an example of which step in the social marketing process?

A) Amplification

B) Community

C) Fan acquisition

D) Brand strength

A) Amplification

Which of the following is not true about mobile marketing?

A) People use most of their mobile minutes while they are on the go, outside of the home.

B) By 2024, spending on mobile marketing is expected to be three times as much as spending on desktop marketing.

C) A substantial part of mobile marketing should be counted as social marketing.

D) There is significant overlap between local and mobile marketing.

A) People use most of their mobile minutes while they are on the go, outside of the home.

Which of the following statements about COPPA is not true?

A) COPPA is not applicable to Internet of Things (IoT) devices.

B) COPPA can only be enforced by the Federal Trade Commission.

C) The largest fine levied by the FTC under COPPA as of 2020 was against Google and YouTube.

D) COPPA provides that companies are not permitted to use personal information collected from children under 13 years of age without the verifiable prior consent of their parents.

A) COPPA is not applicable to Internet of Things (IoT) devices.

Which of the following is the first step in the social marketing process?

A) Engagement

B) Community

C) Fan acquisition

D) Amplification

C) Fan acquisition

While using apps, users spend over 90% of the time on just ________ of them.

A) 2

B) 3

C) 4

D) 5

D) 5

Which of the following is the most popular use for mobile devices?

A) Performing tasks, such as finances

B) Shopping

C) Socializing

D) Entertainment

D) Entertainment

On average, users use about ________ apps a month on their smartphone.

A) 10

B) 15

C) 20

D) 50

C) 20

Companies are not permitted to collect personal information from children under the age of ________ without parental consent.

A) 8

B) 13

C) 15

D) 18

B) 13

As discussed in the chapter-opening case, Hubble used all of the following Facebook marketing tools except:

A) Facebook News Feed ads

B) Facebook's Lookalike Audience lead generation tool

C) Facebook Live

D) Facebook brand page

C) Facebook Live

Which of the following involves using a variety of tools to encourage users to interact with content and brand?

A) Dark social

B) Engagement

C) Amplification

D) Social density

B) Engagement

What is another name for pro forma earnings?

A) operating income

B) earnings before income taxes, depreciation, and amortization (EBITDA)

C) net margin

D) generally accepted accounting principles (GAAP) earnings

B) earnings before income taxes, depreciation, and amortization (EBITDA)

All of the following are terms used to describe on-demand service companies except:

A) collaborative commerce.

B) mesh economy.

C) omni-channel commerce.

D) we-commerce.

C) omni-channel commerce.

The online retail sector of the retail industry is most similar to the ________ sector.

A) specialty stores

B) mail order/telephone order (MOTO)

C) consumer durables

D) general merchandise

B) mail order/telephone order (MOTO)

All of the following are challenges faced by bricks-and-clicks firms except:

A) coordinating prices across channels.

B) building a credible website.

C) handling returns of online purchases at retail outlets.

D) building a brand name.

D) building a brand name.

Which of the following enabled MOTO firms to make an easier transition to e-commerce?

A) the growth of the credit card industry

B) falling long distance telecommunications prices

C) the fact that they already had efficient customer order fulfillment processes

D) the national toll-free call system

C) the fact that they already had efficient customer order fulfillment processes

Consumers are primarily price-driven when shopping on the Internet.

True

False

False

Virtual merchants face potentially large costs for all of the following except:

A) building an order fulfillment infrastructure.

B) building and maintaining physical stores.

C) building and maintaining a website.

D) developing a brand name.

B) building and maintaining physical stores.

What is the largest sector of the online travel services market in terms of revenue?

A) cruise/tour reservations

B) airline reservations

C) hotel reservations

D) car reservations

B) airline reservations

Apart from Amazon, the top online retail firms in terms of online sales are all primarily ________ firms.

A) omni-channel

B) web-only

C) manufacturer-direct

D) catalog merchant

A) omni-channel

In __ , all of a customer's financial (and even nonfinancial) data are pulled together into a single, personalized website.

A) EBPP systems

B) account aggregation

C) a financial portal

D) integrated financial services

B) account aggregation

All of the following were parts of the vision during the early days of e-commerce except the belief that:

A) online consumers were rational and cost-driven.

B) entry costs to the online retail market would be much less than those needed to establish a physical storefront.

C) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business.

D) the cost of acquiring customers would be much lower.

C) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business.

All of the following statements about the online real estate services market are true except:

A) the Internet and e-commerce have created a revolution in the real estate value chain.

B) the first step in the home buying process for nearly all ages of home buyers is to look online.

C) the primary service offered by real estate sites is a listing of houses available.

D) the major impact of Internet real estate sites has been in influencing offline decisions.

A) the Internet and e-commerce have created a revolution in the real estate value chain.

Which of the following is not a major trend in online retail for 2020-2021?

A) Buying online has become a normal, mainstream, everyday experience.

B) The Covid-19 pandemic is expected to create a decrease in e-commerce retail purchases.

C) The number of online buyers continues to increase.

D) The average annual purchase of online buyers continues to increase.

B) The Covid-19 pandemic is expected to create a decrease in e-commerce retail purchases.

Which of the following is not considered a current asset?

A) long-term investments

B) marketable securities

C) accounts receivable

D) cash

A) long-term investments

Which of the following best explains why the service sector is a natural avenue for e-commerce?

A) The service sector is less geographically reliant and more globally oriented.

B) The service sector requires "rich" marketing messages to reach new customers.

C) It is not; services are difficult to translate to e-commerce because they all rely on face-to-face communication and barter.

D) Much of the value in services is based on the collection, storage, and exchange of information.

D) Much of the value in services is based on the collection, storage, and exchange of information.

Which of the following occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer?

A) hypermediation

B) localization

C) disintermediation

D) channel conflict

D) channel conflict

All of the following are advantages of online retail except:

A) ability to change prices.

B) faster delivery of goods.

C) lower cost of distribution.

D) lower supply chain costs.

B) faster delivery of goods.

The lower the ________ compared to revenue, the higher the gross profit.

A) gross margin

B) cost of sales

C) assets

D) operating expenses

B) cost of sales

Online retail constitutes about 20% of the total retail market today.

True

False

False

In the United States, the service sector accounts for approximately __ % of the United States GDP.

A) 70

B) 75

C) 80

D) 85

C) 80

________ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers.

A) Vertical

B) Spot

C) Bulk

D) Indirect

B) Spot

What is the first step in the procurement process?

A) qualify the seller and its products

B) issue a purchase order

C) negotiate price

D) search for suppliers

D) search for suppliers

A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems.

A) CPFR

B) SCM

C) ERP

D) EDI

B) SCM

A(n) ________ market is one that provides expertise and products for a specific industry (i.e., automobiles).

A) horizontal

B) vertical

C) buyer-biased

D) indirect

B) vertical

Walmart is both the world's largest retailer and has the world's largest supply chain.

True

False

True

________ is defined as the use of digital technologies to permit organizations to work together to design, develop, build, and manage products through their life cycles.

A) Collaborative commerce

B) SCM

C) EDI

D) Social e-commerce

A) Collaborative commerce

E-distributors:

A) make money by charging a mark-up on products they distribute.

B) operate in vertical markets.

C) focus on selling direct products.

D) usually operate "private" markets.

A) make money by charging a mark-up on products they distribute.

The liquidity of a market is measured by all of the following except:

A) price transparency.

B) number of buyers and sellers in market.

C) volume of transactions.

D) size of transactions.

A) price transparency.

Trans-organizational business processes require ________ to perform.

A) three independent firms

B) at least ten firms

C) two independent firms

D) one firm

C) two independent firms

Which of the following primarily deal with direct goods?

A) e-distributors and independent exchanges

B) e-procurement Net marketplaces and industry consortia

C) exchanges and industry consortia

D) exchanges and e-procurement Net marketplaces

C) exchanges and industry consortia

The term BYOD refers to employees:

A) using mobile devices for work.

B) being allowed or encouraged to use their own mobile devices and laptops.

C) bringing work devices to the home.

D) working from home.

B) being allowed or encouraged to use their own mobile devices and laptops.

All of the following are examples of direct goods in the auto industry except:

A) rubber molding.

B) sheet steel.

C) shatter-resistant glass.

D) desktop computers.

D) desktop computers.

The essential characteristic of ________ is that they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade.

A) horizontal markets

B) industry consortia

C) exchanges

D) Net marketplaces

D) Net marketplaces

Analysts predict that B2B e-commerce in the United States will grow to approximately ________ by 2024.

A) $9.8 billion

B) $98 billion

C) $980 billion

D) $9.8 trillion

D) $9.8 trillion

Which of the following is a method of inventory cost management that seeks to eliminate excess inventory?

A) sustainable production

B) lean production

C) supply chain simplification

D) just-in-time production

D) just-in-time production

All of the following are major technology trends in B2B e-commerce in 2020–2021, except:

A) a movement of B2B systems to cloud computing providers as a means of slowing rising technology costs.

B) a decrease in the use of social network platforms.

C) a growing emphasis on the use of business analytics software (business intelligence) to understand very large data sets.

D) a growing use of the mobile platform for B2B systems.

B) a decrease in the use of social network platforms.

Exchanges are used for spot purchasing of MRO supplies.

True

False

True

Which of the following refers to the links that connect business firms with one another to coordinate production?

A) supply chain

B) B2B e-commerce

C) vertical market

D) horizontal market

A) supply chain

Which of the following is a transaction database that operates on a distributed P2P network that connects all participant members in a single database and is highly secure, reliable, resilient, and inexpensive?

A) SCM system

B) EDI

C) blockchain

D) cloud-based B2B system

C) blockchain

Which of the following was the first step in the development of B2B e-commerce?

A) Electronic Data Interchange (EDI)

B) digital invoices

C) computerized inventory databases

D) automated order entry systems

D) automated order entry systems

Which of the following involves the issue of social control?

A) information rights
B) governance
C) property rights
D) public safety and welfare

B) governance

According to data from Pew Research Center, which of the following is the action which the highest percentage of Internet users has taken to preserve their privacy online?

A) encrypted their communications
B) posted comments online anonymously
C) used an anonymous web browsing service
D) cleared web browser history and cookies

D) cleared web browser history and cookies

Which of the following uses software installed at the ISP level to track user clickstream behavior?

A) shopping carts
B) deep packet inspection
C) DRM
D) trusted computing environments

B) deep packet inspection

Which of the following situations would not qualify for the fair use exception to U.S. copyright law?

A) Google posts thumbnail images of books in the Google Book Search Project.
B) A professor clips a newspaper article just before class and distributes copies of it to his class.
C) A student copies a photograph of his favorite band from a website created by the band's record label and places it on the student's personal website.
D) A journalist quotes a paragraph from a book in a review of the book.

C) A student copies a photograph of his favorite band from a website created by the band's record label and places it on the student's personal website.

What is the FTC recommendation regarding choice as it relates to personally identifiable information (PII)?

A) Require firms to allow consumers to opt-out before PII is collected.
B) Require robust notice only before PII is collected.
C) Make collection of PII illegal.
D) Require firms to have consumers affirmatively opt-in before PII is collected.

D) Require firms to have consumers affirmatively opt-in before PII is collected.

Online gambling is now legal throughout the United States.

True

False

False

Registering the domain name Faceboik.com with the intent to divert web traffic from people misspelling Facebook.com is an example of:

A) metatagging
B) typosquatting
C) keywording
D) deep linking

B) typosquatting

Liability is a feature of political systems in which a body of law is in place that permits individuals to recover damages done to them by other actors, systems, or organizations.

True

False

True

Which ethical principle states that, when confronted with an ethical dilemma, individuals should take the action that achieves the greater value for all of society?

A) The Golden Rule
B) Collective Utilitarian Principle
C) The Social Contract Rule
D) Risk Aversion Principle

B) Collective Utilitarian Principle

Net neutrality refers to the idea that Internet service providers (ISPs), including cable Internet and wireless carriers, should treat all data on the Internet in the same manner, and not discriminate or price differentially by content, protocol, platform, hardware, or application.

True

False

True

Which of the following features of e-commerce technology can result in work and shopping invading family life?

A) ubiquity
B) global reach
C) interactivity
D) information density

A) ubiquity

Which of the following e-commerce technology dimensions creates greater opportunities for cyberbullying?

A) social technology
B) ubiquity
C) interactivity
D) information density

A) social technology

The Children's Internet Protection Act (CIPA) has been struck down by the U.S. Supreme Court as unconstitutional.

True

False

False

The Spokeo case involved a claim for damages based on which of the following?

A) Anticybersquatting Consumer Protection Act
B) Defend Trade Secrets Act
C) Fair Credit Reporting Act
D) Digital Millennium Copyright Act

C) Fair Credit Reporting Act

How long does copyright protection extend for corporate-owned works?

A) 25 years
B) 50 years
C) 75 years
D) 95 years

D) 95 years

Downloading a music track owned by a record company without paying for it is an example of a violation of:

A) privacy law
B) trademark law
C) patent law
D) copyright law

D) copyright law

What is the major reason why the Internet has such potential for destroying traditional conceptions and implementations of intellectual property law?

A) the anonymous nature of the Internet
B) the ability to make perfect copies of digital works at little cost
C) the use of standards for file formats
D) the support for instant peer-to-peer communication

B) the ability to make perfect copies of digital works at little cost

All of the following are required for information to be considered a trade secret except:

A) it must be something that others do not know.
B) the owner must have taken steps to protect it.
C) it must be unique.
D) it must have commercial value to its owner.

C) it must be unique.

Which of the following is not an e-commerce public safety and welfare issue?

A) regulation of gambling
B) regulation of pornography
C) regulation of taxation
D) regulation of cigarette sales

C) regulation of taxation

Disputes over federal trademarks involve establishing:

A) intent
B) infringement
C) piracy
D) underlying ideas

B) infringement