Ecommerce Exam 1

The term e-commerce refers to the digital enabling of business processes both inside and outside the firm.

FALSE

E-commerce and e-business systems blur together at the business firm boundary, where internal business systems link up with suppliers or customers.

TRUE

Ubiquity increases the cognitive energy required to transact in a marketspace.

FALSE

The fact that e-commerce is conducted based on universal standards decreases search costs for consumers.

TRUE

Universal standards make price discovery more costly, slower, and less accurate.

FALSE

Price transparency refers to the ease with which consumers can find out what merchants pay for products.Price transparency refers to the ease with which consumers can find out what merchants pay for products.

FALSE

Personalization involves targeting marketing messages to specific individuals by adjusting the message based upon a consumer's preferences or past purchasing behavior.

TRUE

E-commerce technologies provide a unique, many-to-many model of mass communication.

TRUE

B2B e-commerce is the largest type of e-commerce.

TRUE

Retail e-commerce in the United States is not expected to continue growing at double-digit growth rates in 2018-2019

FALSE

The Internet is a worldwide system of computer networks.

TRUE

The Internet has shown similar growth patterns as other electronic technologies of the past.

FALSE

The emergence of mobile, social, and local e-commerce occurred during the Consolidation period of e-commerce.

FALSE

The Reinvention period of e-commerce is as much a sociological phenomenon as it is a technological or business phenomenon.

TRUE

Price dispersion has been eliminated in e-commerce

FALSE

2) E-commerce can be defined as:
A) the use of the Internet, the Web, and mobile apps to transact business.
B) the use of any Internet technologies in a firm's daily activities.
C) the digital enablement of transactions and processes within an organization.
D) any digitally enabled transactions among individuals and organizations.

A

3) ________ is an example of e-business.
A) Amazon's inventory control system
B) The Amazon.com website
C) An Amazon mobile app
D) Amazon's Pinterest page

A

4) Which of the following terms is synonymous with e-commerce?
A) e-business
B) digital commerce
C) the Internet
D) the Web

B

5) Which of the following is not true about the use of apps?
A) The average U.S. consumer spends over three hours a day using apps.
B) Users still spend less time using apps than they do using desktops or mobile websites.
C) Apps are easier to control and monetize than websites.
D) Around 280 million people worldwide launch a smartphone app more than 60 times a day

B

6) Which of the following statements about e-commerce in the United States in 2016 is not true?
A) Social e-commerce generates more revenue than mobile e-commerce.
B) Over 210 million U.S. consumers use mobile apps.
C) On-demand service firms are fueling the growth of local e-commerce.
D) Growth rates for retail e-commerce are higher in Europe than in the United States.

A

7) In 2016, almost ________ of Americans who access the Internet use a mobile device at least some of the time.
A) 63%
B) 73%
C) 83%
D) 93%

D

8) Which of the following is not a major business trend in e-commerce in 2016-2017?
A) Mobile e-commerce continues to grow.
B) Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants.
C) On-demand service companies garner multi-billion dollar valuations.
D) Mobile advertising continues to grow at astronomical rates.

B

9) Which of the following is not a major technology trend in e-commerce in 2016-2017?
A) Mobile messaging services become popular with smartphone users.
B) Firms are turning to business analytics to make sense out of big data.
C) The mobile computing and communications platform creates an alternative platform for online transactions, marketing, advertising, and media viewing.
D) Computing and networking component prices increase dramatically.

D

10) All of the following are major social trends in e-commerce in 2016-2017 except for:
A) concerns about the flood of temporary, low paying jobs without benefits being generated by on-demand service companies.
B) the continuing conflict over copyright management and control.
C) the refusal of online retailers to accept taxation of Internet sales. Online retails ARE accepting the taxation of internet sales
D) the growth of government surveillance of Internet communications.

C

11) Which of the following is not a major business trend in e-commerce in 2016-2017?
A) the growth of a mobile app ecosystem
B) the weakening revenues of B2B e-commerce
C) the emergence of social e-commerce
D) the growth of the on-demand service firms

B

12) Which of the following statements about the Web is not true?
A) The Web is the technology upon which the Internet is based.
B) The Web was the original "killer app."
C) The Web provides access to pages written in HyperText Markup Language.
D) The Web is both a communications infrastructure and an information storage system

A

13) In 2016, there were more than ________ Internet hosts.
A) 1 million
B) 10 million
C) 100 million
D) 1 billion

D

14) Which of the following was the original "killer app" that made the Internet commercially interesting and extraordinarily popular?
A) e-commerce
B) The Web
C) social networks
D) mobile apps

B

21) Which of the following is not a unique feature of e-commerce technology?
A) interactivity
B) social technology
C) information asymmetry
D) richness

C

22) Which of the following features of e-commerce technology enables merchants to market and sell "complex" goods and services to consumers via marketing messages that can integrate video, audio, and text?
A) richness
B) ubiquity
C) information density
D) personalization

A

23) Which of the following features of e-commerce technology allows users to participate in the creation of online content?
A) ubiquity
B) global reach
C) information density
D) social technology

D

24) Which of the following is the best definition of transaction cost?
A) the expense of changing national or regional prices
B) the cost of participating in a market
C) the cost of finding suitable products in the market
D) the cost merchants pay to bring their goods to market

B

25) In 2016, the world's online population was estimated to be around:
A) 330 million.
B) 3.3 billion.
C) 33 billion. Lol there aren't even these many people on the planet
D) 330 billion.

B

26) Which of the following features of e-commerce technology is related to the concept of network externalities?
A) richness
B) interactivity
C) universal standards
D) information density

C

27) Which of the following statements is true about the traditional tradeoff between the richness and reach of a marketing message prior to the development of the Web?
A) Marketing messages had little richness.
B) The smaller the audience reached, the less rich the message.
C) The larger the audience reached, the less rich the message.
D) Richness was unrelated to reach.

C

28) Interactivity in the context of e-commerce provides which of the following functionalities?
A) the ability to physically touch and manipulate a product
B) complexity and content of a message
C) the ability of consumers to create and distribute content
D) the enabling of two-way communication between consumer and merchant

D

29) The costs incurred by merchants changing product prices (such as the costs of reentering prices into computer systems) are referred to as:
A) subscription costs.
B) fixed costs.
C) menu costs.
D) variable costs.

C

30) Which of the following refers to any disparity in relevant market information among parties in a transaction?
A) information asymmetry
B) unfair competitive advantage
C) imperfect competition
D) dynamic pricing

A

31) Which of the following is a physical place you visit to conduct business?
A) marketspace
B) marketplace
C) social network
D) the Internet

B

32) The total number of users or customers an e-commerce business can obtain is called:
A) ubiquity.
B) interactivity.
C) reach.
D) information density.

C

33) Which of the following refers to the complexity and content of a message?
A) richness
B) reach
C) information density
D) interactivity

A

34) E-commerce is available just about everywhere and anytime. This is known as ________.
A) richness
B) information density
C) ubiquity
D) reach

C

43) Which type of e-commerce is distinguished by the type of technology used in the transaction rather than by the nature of the market relationship?
A) consumer-to-consumer (C2C)
B) social e-commerce
C) mobile e-commerce
D) business-to-business (B2B)

C

44) Which of the following is an example of social e-commerce?
A) Amazon
B) eBay
C) Wikipedia
D) Facebook

D

45) Business-to-consumer (B2C) e-commerce in the United States:
A) has grown at double-digit rates between 2010 and 2016
B) has less revenue than C2C e-commerce.
C) now constitutes over 50% of the overall U.S. retail market.
D) is growing more slowly as it confronts its own fundamental limitations.

A

46) Which of the following is an example of an on-demand service company?
A) YouTube
B) Airbnb
C) Tumblr
D) Facebook.

B

47) Which of the following is an example of B2B e-commerce?
A) Airbnb
B) Facebook
C) Groupon
D) Go2Paper

D

48) Which of the following is an example of C2C e-commerce?
A) Amazon
B) Groupon
C) Craigslist
D) Go2Paper

C

49) All of the following are examples of social networks except:
A) Instagram.
B) Twitter.
C) Y Combinator.
D) Pinterest.

C

50) The size of the B2B market in 2017 was estimated at:
A) $670 million.
B) $6.7 billion.
C) $670 billion.
D) $6.7 trillion.

D

53) Which of the following describes the basic web policy of large firms during the Invention period?
A) Integrate social networks and the mobile platform with website marketing.
B) Emphasize the necessity of the Web to generate profits.
C) Use the Web to sell complex goods and services online.
D) Maintain a basic, static website depicting the firm's brand.

D

54) All of the following are considered a precursor to e-commerce except:
A) the development of the smartphone.
B) Baxter Healthcare's PC-based remote order entry system.
C) the French Minitel.
D) the development of Electronic Data Interchange (EDI) standards.

A

55) Which of the following was the first large-scale digitally enabled transaction system in the B2C arena?
A) Telex
B) the Baxter Healthcare system
C) the French Minitel
D) EDI

C

56) In which year was e-commerce said to have begun? 1995-2000: invention period
A) 1983
B) 1985
C) 1995
D) 2001

C

57) Which of the following is a characteristic of e-commerce during the Invention period?
A) mobile technology
B) earnings and profit emphasis
C) disintermediation
D) extensive government surveillance

C

58) All of the following are examples of Web 2.0 sites and applications except:
A) photo-sharing sites.
B) blogs.
C) wikis.
D) auction sites.

D

59) Which of the following is not a characteristic of a perfect competitive market?
A) Price, cost, and quality information are equally distributed.
B) A nearly infinite set of suppliers compete against one another.
C) Customers have access to all relevant information worldwide.
D) It is highly regulated.

D

60) All of the following were visions expressed during the early years of e-commerce except:
A) a nearly perfect information marketspace.
B) friction-free commerce.
C) disintermediation.
D) fast follower advantage.

D

61) Unfair competitive advantages occur when:
A) one competitor has an advantage others cannot purchase.
B) market middlemen are displaced.
C) information is equally distributed and transaction costs are low.
D) firms are able to gather monopoly profits.

A

62) The early years of e-commerce were driven by all of the following factors except:
A) an emphasis on exploiting traditional distribution channels.
B) a huge infusion of venture capital funds.
C) an emphasis on quickly achieving very high market visibility.
D) visions of profiting from new technology.

A

63) The early years of e-commerce are considered:
A) the most promising time in history for the successful implementation of first mover advantages.
B) an economist's dream come true, where for a brief time consumers had access to all relevant market information and transaction costs plummeted.
C) a stunning technological success as the Internet and the Web increased from a few thousand to billions of e-commerce transactions per year.
D) a dramatic business success as 85% of dot-coms formed since 1995 became flourishing businesses.

C

64) Which of the following best describes the early years of e-commerce?
A) They were a technological success but a mixed business success.
B) They were a technological success but a business failure.
C) They were a technological failure but a business success.
D) They were a mixed technological and business success.

A

65) Which of the following is a characteristic of the Reinvention phase of e-commerce?
A) massive proliferation of dot-com start-ups
B) widespread adoption of broadband networks
C) rapid growth of search engine advertising
D) expansion of e-commerce to include services as well as goods

D

66) Which of the following is a characteristic of the Consolidation phase of e-commerce?
A) predominance of pure online strategies
B) emphasis on revenue growth versus profits
C) brand extension and strengthening becomes more important than creating new brands
D) shift to a technology-driven approach

C

67) Which of the following is not true regarding e-commerce today?
A) Economists' visions of a friction-free market have not been realized.
B) Consumers are less price-sensitive than expected.
C) There remains considerable persistent price dispersion.
D) The market middlemen disappeared.

D

68) Which of the following statements is not true?
A) Information asymmetries are continually being introduced by merchants and marketers.
B) Intermediaries have not disappeared.
C) Overall transaction costs have dropped dramatically.
D) Brands remain very important in e-commerce.

C

69) Which of the following is an example of an e-commerce first mover that failed?
A) Etsy
B) eToys
C) eBay
D) E*Trade

B

70) Which of the following refers to the practice of researching a product online before purchasing it at a physical store?
A) zooming
B) grazing
C) showrooming
D) webrooming
=

D

71) Which of the following refers to the displacement of market middlemen and the creation of a new direct relationship between producers and consumers?
A) network effect
B) disintermediation
C) friction-free commerce
D) first mover advantage

B

72) Which of the following is not an element of friction-free commerce?
A) Information is equally distributed.
B) Transaction costs are high.
C) Prices can be dynamically adjusted to reflect actual demand.
D) Unfair competitive advantages are eliminated.

B

78) All of the following are issues facing Pinterest except:
A) copyright infringement.
B) inability to retain users.
C) spam.
D) scams.

B

79) Above all, e-commerce is a ________ phenomenon.
A) technology driven
B) finance-driven
C) sociological
D) government-driven

A

80) Which business application is associated with the technological development of local area networks and client/server computing?
A) transaction automation (e.g., payroll)
B) desktop automation (e.g., word processing)
C) industrial system automation (e.g., supply chain management)
D) workgroup automation (e.g., document sharing)

D

81) Which of the following is one of the three primary societal issues related to e-commerce?
A) liability
B) anonymity
C) equity
D) intellectual property

D

84) Which of the following statements is not true?
A) No one academic perspective dominates research about e-commerce.
B) Economists take a purely technical approach to e-commerce.
C) There are two primary approaches to e-commerce: behavioral and technical.
D) Management scientists are interested in e-commerce as an opportunity to study how business firms can exploit the Internet to achieve more efficient business operations.

B

A value proposition defines how a company's product or service will generate revenue for the firm.

FALSE

Real markets are imperfect.

TRUE

Information asymmetries enable some firms to have an edge over others.

TRUE

Slow followers are sometimes more successful than first movers.

TRUE

In the subscription revenue model, a company primarily generates income from the display of ads.

FALSE

The Jumpstart Our Business Startups (JOBS) Act, and issuance of enabling regulations by the Securities and Exchange Commission, allows a start-up company to use crowdfunding to solicit investors to invest in small and early-stage startups.

TRUE

Scale economies are efficiencies that result from increasing the size of the business.

TRUE

The term unfit fitness refers to a situation in which employees of a firm have the wrong skills for the current environment.

TRUE

company's strong linkages with its customers increase switching costs.

TRUE

The Internet's universal standard have changed industry structure by increasing barriers to entry and decreasing competition within an industry.

FALSE

Interactivity that enables product customization alters industry structure by decreasing the threat of substitutes

TRUETRUE

E-commerce has increased price competition in many markets.

TRUE

Social technologies change industry structure by weakening powerful sales channels and shifts bargaining power to consumers.

FALSE

SaaS and PaaS providers can typically provide services at lower costs through scale economies.

TRUE

1) ________ and ________ are typically the most easily identifiable aspects of a company's business model.
A) Market strategy; market opportunity
B) Value proposition; revenue model
C) Competitive advantage; competitive environment
D) Revenue model; market opportunity

B

2) All of the following use a subscription revenue model for music except:
A) Spotify.
B) eHarmony. - online dating service
C) Rhapsody.- currently called Napster- digital music service
D) Pandora.

B

3) Which element of the business model addresses what a firm provides that other firms cannot?
A) competitive environment
B) competitive advantage
C) market strategy
D) value proposition

D

4) Which element of the business model refers to the presence of substitute products in the market?
A) value proposition
B) competitive environment
C) competitive advantage
D) market opportunity

B

5) Which of the following represent Amazon's primary value proposition(s)?
A) personalization and customization
B) selection and convenience
C) reduction of price discovery cost
D) management of product delivery

B

6) A firm's ________ describes how a firm will produce a return on invested capital.
A) value proposition
B) revenue model
C) market strategy
D) competitive advantage

B

7) Which of the following is an example of the subscription revenue model?
A) Scribd
B) eBay
C) E*Trade
D) Twitter

A

8) Stickiness is an important attribute for which of the following revenue models?
A) advertising revenue model
B) subscription revenue model
C) transaction fee revenue model
D) affiliate revenue model

A

9) Which of the following companies use a transaction fee revenue model?
A) Yahoo
B) E*Trade
C) Twitter
D) Birchbox

B

10) Which of the following is an example of the affiliate revenue model?
A) Scribd
B) eBay
C) L.L. Bean
D) MyPoints

D

11) Which of the following involves a company giving away a certain level of product or services without charge, but then charging a fee for premium levels of the product or service?
A) advertising revenue model
B) subscription revenue model
C) freemium strategy
D) transaction fee revenue model

C