Chapter 9: E-Commerce

A business-to-business (B2B) market is considerably larger than a business-to-consumer (B2C) market

true

the sales process for a typical business-to-business (B2B) e-commerce transaction is shorter than that for a typical consumer-to-consumer (C2C) e-commerce transaction

false

an organization may use buy-side e-commerce to purchase goods and services from its suppliers

true

in 1992, the Supreme Court ruled that online retailers must collect sales taxes even in states where they lack a physical presence

false

the market for m-commerce in has matured much more quickly in North America than in Western Europe and Japan

false

Conversion to an e-commerce or m-commerce system enables organizations to increase the accuracy of order processing and order fulfillment

true

lack of trust in online sellers is one of the most frequently cited reasons that some consumers are not willing to purchase online

true

an electronic exchange is an electronic forum where manufacturers, suppliers, and competitors buy and sell goods, trade market information, and run back-office operations

true

in the past, market segmentation was easy for B2B marketers because firmographic data was readily available, but recently, access to this data has been reduced to protect privacy

false

consortium-operated exchanges are open to any set of buyers and sellers within a given market

false

in spite of recent economic downturns, web site operators have shunned the idea of bartering for goods and services

false

consumers who have enrolled in mobile banking and downloaded their bank's mobile application to their cell phones can check their credit card balances before making major purchases

true

bartering is a technique use by advertisers to recapture shoppers who abandoned a web site without making a purchase

false

implicit personalization techniques capture user-provided information, such as information from warranties, surveys, user registrations, and contest-entry forms completed online

false

the three basic components of the most successful e-commerce models are content, commerce, and community

true

smart card use is restricted to data associated with financial transactions

false

PayPal enables any person or business with an e-mail address to securely, easily, and quickly send and receive payments online

true

smart cards are less protected from misuse than conventional credit, charge, and debit cards because the smart card information is not encrypted

false

a procurement card is an attachment to an e-mail message or data embedded in a web site that verifies the identity of a sender or a web site

false

smart cards can be used for a variety of purposes, including storing a user's financial facts, health insurance data, credit card numbers, and network identification codes and passwords. They can also store monetary values for spending

true

it is safe to assume that personal information will be secure with businesses, because security breaches of information systems are not common

false

a mobile advertiser can find how many people clicked on his ad and how many people bought his product or service

true

if you abandon an online shopping cart, the seller does not care what you were shopping for

false

in Kenya and Tanzania, it is not uncommon for citizens to carry out common financial transactions using mobile phones

true

in which of the following forms of e-commerce is the seller most likely to offer a customized product offering to a potential buyer?

B2C

the elimination of organizations that operate between the producer and the consumer is called

disintermediation

_____ is a subset of e-commerce that involves electronic transactions between consumers using a third party to facilitate the process

C2C

based on a 1992 supreme court ruling, an internet-based merchant needed to collect sales taxes only when

buyers lived in a state where the merchant had a physical presence

one reason for the growth in B2C e-commerce is that online B2C shoppers have the ability to design a _____ product

personalized

_____ divides the pool of potential customers into subgroups that are usually defined in terms of demographic characteristics

market segmentation

which of the following forms of e-commerce has created an opportunity for many people to make a living out of selling items on auction websites?

C2C

which of the following statements is true of retargeting?

it employs personalized ads to direct shoppers back to a retailer's web site that they previously abandoned

the number of mobile web sites worldwide has grown rapidly, in part because of____

the development of new and useful applications

which of the following is NOT one of the three basic components of most successful e-commerce models?

capital

an approach to building customer profiles that captures user-provided information, such as information from warranties, surveys, user registrations, and contest-entry forms completed online, relies on ______

explicit personalization techniques

the _____ technique is a security technique associated with the use of credit cards at the time of purchase that checks additional digits printed on the back of front of the credit cards

Card Verification Number

The ______ standard spells out measures and security procedures to safeguard the card issuer, the cardholder, and the merchant

Payment Card Industry (PCI) security

what must web site operators constantly monitors to provide a good experience to their internet shoppers?

traffic and response times experienced by visitors

authentication technologies are used by many organizations to _____

confirm the identity of a user requesting access to information or assets

conversion to an e-commerce or m-commerce system enables organizations to ____

improve their level of customer service

if you shop for goods for personal use on Amazon.com,

depending on which state you are in, you may or may not pay tax

through e-government

any government unit, business, or individual can interact with the government

why was it necessary for companies to reengineer their e-commerce web sites for m-commerce?

mobile devices provide small user interfaces

compared to traditional commerce transactions, e-commerce transactions ______

reduce the costs of sales

if customer data is stolen from a business's computers, ______

the customers can file a class action law suit against the business

suppose a retailer who has not technology expertise wishes to set up an online presence for his business. Which option will likely be the fastest and least expensive route?

outsourcing his web development

how can a business best increase traffic to its e-commerce site

acquire links to its site on popular, related sites

Using a customer's name in an email campaign or a greeting that appears when they visit a web page is considered the most basic form of

personalization

because of _____ e-commerce sites, anyone can become a merchant online

C2C

Chain restaurants such as domino's can use e-commerce sites to eliminate supplier-side data entry errors by ____

enabling buyers to directly enter their own order information

Tom's art supplies used to sell art supplies through mail order catalogs, but the company's data entry specialists often had difficulty deciphering their customers' handwriting on the order forms. Since switching to an e-commerce site, Tom's has enjoyed which advantage of e-commerce

increased order accuracy

A successful e-commerce system must address the stages experienced by customers as they approach and complete a purchasing transaction, known as the ______

sales life cycle

what is the first stage of the multistage model for B2B and B2c e-commerce?

search and identification

during which stage of the multistage e-commerce model would a corporate buyer browse a supplier's online catalog, drag needed items into a shopping cart, and receive a quote for these items?

search and identification

Thomas asks his firm's web site developers to try to make the site intuitive from their customers' point of view, and to incorporate a chat feature that allows customer service to follow the customer and provide assistance with a purchase. Thomas wants their organization to become the customers' _____

preferred supplier

Mavis, a corporate buyer, is busy reviewing price quotations on several suppliers' web sites. She clicks items on one supplier's quotation form and enters the desired delivery date to find out whether they can deliver them on time. Which stage of the model for e-commerce is Mavis in?

selection and negotation

One important difference between B2B and B2C e-commerce systems that primarily affects the second stage of the multistage model for e-commerce is that ______

support for price and delivery negotiation is usually not essential with B2C systems

what happens during the purchasing stage of the multistage e-commerce model when the buyer is a corporate buyer placing a monthly order with a long-term supplier?

a completed purchase order is sent electronically to the supplier

during the purchasing stage of e-commerce, accepted payment methods typically vary because _____

additional safeguards and measures are required for first-time buyers in B2C e-commerce

which statement about the product and service delivery stage of the multistage model for e-commerce is FALSE?

all manufacturers and retailers manage their own physical logistics for order delivery

many organizations outsource the primary activities of which stage of the multistage e-commerce model to firms such as Federal Express and United Parcel Service?

product and service delivery

Francis purchases a new tablet device through an e-commerce we site. In this scenario, the last stage of the multistage model for e-commerce takes place when ______

the merchant's technical support team helps Francis configure his device

Hewlett-Packard has an arrangement whereby FedEx stores, packs, ships, and tracks their products. This means that when Rosie places an order for a printer through Hewlett-Packard's Web site, _____

FedEx, not Hewlett-Packard, receives and ships the order

Large shipping organizations have sped up and simplified the transfer of inventory and information to consumers through the development of ______

software tools and interfaces

why, during the final stage of the multistage model for e-commerce, is comprehensive customer information captured in the supplier's database?

this facilitates customer service after order delivery

Which of the following is NOT an example of after-sale information than an organization might provide on their web site as part of the after-sales service stage of e-commerce?

payment submission instructions

which basic element of a successful e-commerce model can be established through discussion forums and other social shopping tools?

community

which statement regarding how businesses can implement a successful e-commerce strategy is true?

a business can choose to utilize an intermediary, called a storefront broker, to connect it with merchants and handle transaction details

wholesale e-commerce applications often focus on improving a plant manager's efficiency in researching prices and availability from suppliers for ____-

manufacturing, repair, and operations goods and services

James is considering joining an electronic exchange so that his business can purchase needed supplies easily and possibly at better prices. James would prefer to join an exchange that is open to anyone in his firm's market space. Which type of electronic exchange is James considering?

independent

One issue associated with the use of electronic exchanges is ____

the fear of losing trade secrets when working with competing organizations

Emily would like advertisements that link to her company's web site to appear on other sites that potential customers are likely to visit. Emily should _____

consider having her ads distributed by a blind or premium blind mobile network

a trusted third-party organization that issues attachments to emails or embedded web site data to verify the identity of a sender or web site is known as a(n) _____

certificate authority

the communications protocol that is currently used to prevent identity theft because it ensures privacy between communication applications and their users on the internet is called________

Transport Layer Security

what is one of the important differences between two of the most popular electronic cash applications, PayPal and Venmo?

PayPal was designed for secure transactions between people who may be strangers, whereas Venmo was designed for people who know and trust each other.

e-commerce purchases are often made with various types of cards. which of these card types does not carry a preset spending limit but must be paid off by the cardholder at the end of each billing period?

charge card

what is EMV?

a type of credit card with a chip that creates unique codes for each transaction

How does TLS help make e-commerce transactions more secure?

TLS allows web browsers to initiate temporary, private conversations with web servers

successful implementation of e-commerce requires ______

a substantial investment in IS technology

Gordon is helping his company prepare for the launch of their e-commerce site. He knows that they must choose their technology components carefully and integrate them with the goal of _____

supporting a large volume of transactions

a likely result of launching an e-commerce web site with inadequate technology infrastructure is _____

the loss of sales to other web sites

a key ingredient to e-commerce infrastructure is ______

a web server platform

henry is trying to calculate the storage capacity and computing power required for his company's e-commerce web server. What are the two primary factors henry must take into account?

server software and volume of transactions

The most successful e-commerce solutions can be upgraded to meet unexpected user traffic because of their

scalability

Clarabel, who is helping design her firm's e-commerce infrastructure, tells a colleague, "It is encouraging to remember that computer hardware continues to become more powerful without becoming more expensive thanks to ____"

Moore's Law

Businesses with appropriate e-commerce infrastructure in place may still experience web site outages due to

server configuration changes

JoAnn's company is preparing to launch an e-commerce web site. After researching the process and realizing that they don't have any of the necessary technology infrastructure in place, JoAnn advises that they minimize their initial out-of-pocket costs and speed up the launch of the site by

using a third-party web service provider

which component of an e-commerce technology infrastructure performs several fundamental services including security and identification, retrieval and sending of web pages, web site tracking, and web-site development?

web server software

Apache HTTP Server and Microsoft's Internet Information Services are the two most widely used ____ packages

web server software

which component of an e-commerce technology infrastructure most directly supports the following core tasks: catalog management, product configuration, shopping cart facilities, transaction processing, and web traffic data analysis?

e-commerce software

Security is a major concern with m-commerce. How can m-commerce software ensure the security of transmissions and that the transaction is being made with the intended party?

encryption and digital certificates

Which of the following factors is NOT one of the main reasons web developers must often rewrite existing web applications for mobile devices?

PIC security standard requirements

One core task of e-commerce software is product configuration, which ____

helps customers select the necessary components and opinions