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Exam

Name___________________________________

1.

Amazon is recognized as an online leader in creating sales through customer intimacy and customer relationship

management (CRM).

Answer:

True

False

Diff: 1

Type: TF

Page Ref: 134

AACSB:

Objective:

2.

According toInternet Retailer,in 2009, approximately 20 percent of adult U.S. Internet users shopped online and/or

research offline sales online.

Answer:

True

False

Diff: 2

Type: TF

Page Ref: 136

AACSB:

Objective:

3.

Sales of goods on the Internet are no longer increasing rapidly because of the bankruptcy of numerous dot-coms.

Answer:

True

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False

Diff: 2

Type: TF

Page Ref: 136

AACSB:

Objective:

4.

As the number of Internet users reaches saturation, the challenge for e-retailers now is to increase the amount that

shoppers spend online.

Answer:

True

False

Diff: 3

Type: TF

Page Ref: 136

AACSB:

Objective:

5.

E-tailing is retailing conducted online over the Internet.

Answer:

True

False

Diff: 1

Type: TF

Page Ref: 136

AACSB:

Objective:

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6.

A retailer is a sales intermediary, a seller that operates between manufacturers and customers.

Answer:

True

False

Diff: 1

Type: TF

Page Ref: 136

AACSB:

Objective:

7.

When new capabilities are required to conduct EC, for example capabilities in logistics and distribution, one method is to

obtain them through external strategic alliances.

Answer:

True

False

Diff: 1

Type: TF

Page Ref: 138

AACSB:

Objective:

8.

With all else being equal in the online environment, goods that are relatively expensive or frequently purchased are

expected to have higher sales volumes than goods that are inexpensive or infrequently purchased.

Answer:

True

False

Diff: 3

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Type: TF

Page Ref: 139

AACSB:

Objective:

9.

A business model is a description of how an organization intends to generate revenue through its business operations.

Answer:

True

False

Diff: 2

Type: TF

Page Ref: 141

AACSB:

Objective:

10.

Direct marketing describes marketing that takes place over the Internet involving wholesalers and retailers.

Answer:

True

False

Diff: 2

Type: TF

Page Ref: 142

AACSB:Objective:

11.

Click-and-mortar retailers are brick-and-mortar retailers that offer a transactional Web site from which to conduct

business.

Answer:

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True

False

Diff: 1

Type: TF

Page Ref: 144

AACSB:

Objective:

12.

Target, Sears, and Macys are click-and-mortar businesses selling in a multichannel business model.

Answer:

True

FalseDiff: 1

Type: TF

Page Ref: 144

AACSB:

Objective:

13.

Types of online malls include referring directories and event shopping malls.

Answer:

True

False

Diff: 2

Type: TF

Page Ref: 144

AACSB:

Objective:

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14.

Viral marketing, market makers, and information portals are types of B2C business models.

Answer:

True

False

Diff: 2

Type: TF

Page Ref: 145

AACSB:

Objective:

15.

Event-based commerce is a wireless based technology in which vendors send advertisements relevant to the location

where customers are at a given time.

Answer:

True

False

Diff: 2

Type: TF

Page Ref: 146

AACSB:

Objective:

16.

Private shopping clubs and group gifting online are two variations of the personalized event shopping model.

Answer:

True

False

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Diff: 1

Type: TF

Page Ref: 146

AACSB:

Objective:

17.

Competition among online travel e-tailers is fierce, with low margins, little customer loyalty, and increasing

commoditization of products and services.

Answer:

True

False

Diff: 3

Type: TF

Page Ref: 147

AACSB:

Objective:

18.

WAYN is a social networking Web site with a goal of uniting college student travelers from North America.

Answer:

True

False

Diff: 3

Type: TF

Page Ref: 149

AACSB:

Objective:

19.

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When compared to the traditional job market, the online job market has low reliability.

Answer:

True

False

Diff: 2

Type: TF

Page Ref: 151

AACSB:

Objective:

20.

The electronic job market creates high turnover costs for employers by facilitating employees' movement to better jobs.

Answer:

True

False

Diff: 2

Type: TF

Page Ref: 154

AACSB:

Objective:

21.

Assessing their market value is an advantage of the electronic job market for employers.

Answer:

True

FalseDiff: 2

Type: TF

Page Ref: 154

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AACSB:

Objective:

22.

Many insurance companies use a dual strategy, keeping human agents but also selling online.

Answer:

True

False

Diff: 2

Type: TF

Page Ref: 156

AACSB:

Objective:

23.

The major risk of online trading is security.

Answer:

True

False

Diff: 1

Type: TF

Page Ref: 157

AACSB:

Objective:

24.

Virtual banks have a brick-and-mortar location and also conduct online transactions.

Answer:

True

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False

Diff: 1

Type: TF

Page Ref: 158

AACSB:

Objective:

25.

Online banking and other financial services are growing slowly on the Internet because many customers are not yet

embracing it.

Answer:

True

False

Diff: 2

Type: TF

Page Ref: 158

AACSB:

Objective:

26.

Electronic banking refers to the various banking activities conducted from home or the road using an Internet connection.

Answer:

True

False

Diff: 1

Type: TF

Page Ref: 158

AACSB:

Objective:

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27.

Only a few pure-play virtual banks failed by 2003 due to lack of financial viability.

Answer:

True

False

Diff: 2

Type: TF

Page Ref: 159

AACSB:

Objective:

28.

Both online banks and click-and-mortar banks carry some risks and problems, especially in international banking,

including hackers and liquidity risk.

Answer:

True

False

Diff: 2

Type: TF

Page Ref: 161

AACSB:

Objective:

29.

An on-demand delivery service is express delivery made fairly quickly after an online order is received.

Answer:

True

False

Diff: 1

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Type: TF

Page Ref: 162

AACSB:

Objective:

30.

The direct sale of digital content through digital download allows a producer of digital content to bypass the traditional

retail channel, thereby reducing overall costs and capturing greater profits.

Answer:

True

False

Diff: 2

Type: TF

Page Ref: 163

AACSB:

Objective:

31.

As a paid content category, dating services are the largest attractor of Internet users.Answer:

True

False

Diff: 2

Type: TF

Page Ref: 164

AACSB:

Objective:

32.

Electronic coughing describes the attention-grabbing behavior of agencies that go out to consumer environments and

boast about how great a brand or item is in order to spread the word.

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Answer:

True

False

Diff: 2

Type: TF

Page Ref: 166

AACSB:

Objective:

33.

An electronic pouch is a program that expedites online shopping by containing a shopper's information.

Answer:

True

False

Diff: 1

Type: TF

Page Ref: 167AACSB:

Objective:

34.

Channel conflict occurs when the addition of an online distribution channel causes problems with existing distribution

channels.

Answer:

True

FalseDiff: 2

Type: TF

Page Ref: 169

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AACSB:

Objective:

35.

A major problem in B2C is the increasing rate of online fraud.

Answer:

True

False

Diff: 1

Type: TF

Page Ref: 170

AACSB:

Objective:

36.

Amazon.com experienced each of the followingexcept

A)

patenting its 1-click feature which allows customers to place an order in a secure manner without having to enter

personal, billing, and shipping information each time they shop.

B)

maintaining its position as the number one B2C money-making EC site in the world.

C)

driving growth largely by product diversification and its international presence.

D)

declaring its first profit in 2005.

Answer:

D

Diff: 3

Type: MC

Page Ref: 134-135

AACSB:

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Objective:

37.

According toInternet Retailer(2009), approximately ________ percent of adult U.S. Internet users shop online or research

offline sales online.

A)

65

B)

25

C)

85

D)

60

Answer:

D

Diff: 2

Type: MC

Page Ref: 136

AACSB: Use of information technology

Objective:

38.

Each of the following describes retailingexcept

A)

e-tailing makes it easier for a manufacturer to sell directly to customers by cutting out the intermediary.

B)

many manufacturers sell directly to consumers and through wholesalers and retailers.

C)

a retailer is a sales intermediary.

D)

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companies that produce a large number of products, such as Procter & Gamble, do not need retailers for efficient

distribution.

Answer:

D

Diff: 3

Type: MC

Page Ref: 136


Objective:

39.

Retailers who sell over the Internet are

A)

disintermediaries.

B)

multichannel marketers.

C)

e-tailers.

D)

marketing managers.

Answer:

C

Diff: 1

Type: MC

Page Ref: 136

AACSB:

Objective:

40.

Each of the following sells well on the Internetexcept

A)

health and beauty.

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B)

cars.

C)

travel.

D)

tobacco.

Answer:

D

Diff: 1

Type: MC

Page Ref: 138


Objective:

41.

With all else being equal in the online environment, goods with any of the following product characteristics are expected

to facilitate greater online salesexcept

A)

relatively expensive items.

B)

frequently purchased items.

C)

digitized format.

D)

high brand recognition.Answer:

A

Diff: 2

Type: MC

Page Ref: 139


Objective:

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42.

Which of the following is a characteristic of e-tailing?

A)

Fewer resources are needed to increase customer loyalty.

B)

Competition is local.

C)

Price changes are expensive, but can be done at anytime.

D)

Customer relations are less stable due to anonymous contacts.

Answer:

D

Diff: 3

Type: MC

Page Ref: 139


Objective:

43.

Major advantages of e-commerce to buyers include

A)

buying in groups.

B)

shopping globally.

C)

finding products and services that are not available in local stores.

D)

all of the above.

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Answer:

D

Diff: 1

Type: MC

Page Ref: 140

AACSB:

Objective:

44.

Major advantages of e-commerce to sellers include each of the followingexcept

A)

competing with larger companies.

B)

reacting quickly to customer's needs.

C)

charging less for items.

D)

lower supply chain costs.

Answer:

C

Diff: 3

Type: MC

Page Ref: 106

AACSB:

Objective:

45.

A method of doing business by which a company generates revenue to sustain itself and achieve its goals best describes

A)

strategic plan.

B)

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business model.

C)

marketing plan.

D)

mission statement.Answer:

B

Diff: 2

Type: MC

Page Ref: 141

AACSB:

Objective:

46.

The B2C business model used by QVC, Sharper Image, and Lands' End is

A)

direct marketing by mail-order companies.

B)

pure-play e

-tailers.

C)

click-and-mortar retailers.

D)

direct sales by manufacturers.

Answer:

ADiff: 3

Type: MC

Page Ref: 141

AACSB:

Objective:

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47.

Based on distribution channel used, which of the followingis nota B2C model classification?

A)

Internet malls

B)

online medical diagnostic center

C)

pure-play e-tailers

D)

click-and-mortar retailers

Answer:

B

Diff: 3

Type: MC

Page Ref: 141-142

AACSB:

Objective:

48.

Based on distribution channel used, Dell's B2C business model can be classified as a

A)

direct sales by manufacturer.

B)

pure-play e-tailer.

C)

click-and-mortar retailer.

D)

direct marketing by mail-order company.

Answer:

A

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Diff: 3

Type: MC

Page Ref: 142


Objective:

49.

A business model where a company sells in multiple marketing channels simultaneously best defines

A)

concurrent business model.

B)

revenue enhancement.

C)

multichannel business model.

D)

direct marketing.

Answer:

C

Diff: 2

Type: MC

Page Ref: 142

AACSB:

Objective:

50.

Marketing done online between any seller and buyer best defines

A)

target marketing.

B)

multichannel marketing.

C)

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direct marketing.

D)

personalization.

Answer:

C

Diff: 2

Type: MC

Page Ref: 142

AACSB:

Objective:

51.

The competitive advantages of a "pull" vehicle distribution process include each of the followingexcept

A)

large cost savings in finished vehicle inventory carrying costs.

B)

improved customer satisfaction and better pricing.

C)

creating a build-to

-stock environment.

D)

better cash flow to the manufacturers.

Answer:

C

Diff: 2

Type: MC

Page Ref: 143

AACSB:

Objective:

52.

Firms that sell directly to consumers over the Internet without maintaining a physical sales channel describes

A)

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virtual e-tailers.

B)

social network.

C)

viral marketers.D)

click-and-mortar stores.

Answer:

A

Diff: 2

Type: MC

Page Ref: 143

AACSB:

Objective:

53.

Sears' marketing strategy is best described as a

A)

direct marketing from a manufacturer strategy.

B)

brick-and-mortar strategy.

C)

click-and-mortar strategy.

D)

shared service mall strategy.

Answer:

C

Diff: 2

Type: MC

Page Ref: 144

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Objective:

54.

An online seller of travel services that generates revenue by charging fees for its services is an example of a

A)

transaction broker.

B)

market maker.

C)

viral marketer.

D)

content disseminator.

Answer:

A

Diff: 2

Type: MC

Page Ref: 145


Objective:

55.

A marketer that uses e-mail to advertise to potential customers is called a

A)

transaction broker.B)

viral marketer.

C)


D)

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market maker.

Answer:

B

Diff: 2

Type: MC

Page Ref: 145AACSB: Use of information technology

Objective:

56.

A company that creates and manages many-to-many markets is called a

A)

market maker.

B)


C)

viral marketer.

D)

transaction broker.

Answer:

A

Diff: 2

Type: MC

Page Ref: 145


Objective:

57.

In an e-market, PayPal serves as a(n)

A)


B)

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service provider.

C)

intermediary.

D)

viral marketer.Answer:

B

Diff: 3

Type: MC

Page Ref: 145


Objective:

58.

A B2C model in which sales are done to meet the needs of special events describes

A)

event shopping.

B)

choreographed shopping.

C)

time-based shopping.

D)

anniversary shopping.

Answer:

ADiff: 2

Type: MC

Page Ref: 146

AACSB:

Objective:

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59.

Which of the followingis nota social shopping model?

A)

personalized event shopping

B)

private shopping clubs

C)

location-based e-commerce

D)

private auctions

Answer:

D

Diff: 2

Type: MC

Page Ref: 146

AACSB:

Objective:

60.

A members-only shopping club, where members can buy goods at large discounts describes

A)

membership-based club.

B)

private shopping club.

C)

exclusive club.

D)

specialty club.

Answer:

B

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Type: MC

Page Ref: 146

AACSB:

Objective:

61.

Delivery of e-commerce transactions to individuals in a specific location, at a specific time defines

A)

location-based commerce.

B)

mobile computing.

C)

event-driven commerce.

D)

service on demand.

Answer:

A

Diff: 2

Type: MC

Page Ref: 146

AACSB:

Objective:

62.

Each of the following is a revenue model for online independent travel agentsexcept

A)

subscription or membership fees.

B)

contract negotiators.

C)

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direct revenues from commissions.

D)

revenue sharing fees.

Answer:

B

Diff: 3

Type: MC

Page Ref: 147


Objective:

63.

Each of the following is a characteristic of WAYNexcept

A)

it is a popular social networking Web site.

B)

it enables its users to create a personal profile and upload and store photos.

C)

it is not aimed at any particular age group.

D)

when it introduced fees for its premier travel membership service, it lost most of its new subscriptions.

Answer:

D

Diff: 3

Type: MC

Page Ref: 149


Objective:

64.

Limitations of online travel services include

A)

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increases in provider's commission and its processing.

B)

limited amount of free information.

C)

the difficulty of using virtual travel agents can be very large.D)

substantial discounts.

Answer:

C

Diff: 2

Type: MC

Page Ref: 150

AACSB:

Objective:

65.

Compared to the traditional job market, the online job market

A)

is usually specialized and local in scope.

B)

tends to be much less expensive.

C)

has a shorter life cycle.

D)

tends to be less reliable.

Answer:

B

Diff: 2

Type: MC

Page Ref: 151

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Objective:

66.

Advantages of the electronic job market for job seekers include

A)

accessing newsgroups that are dedicated to finding jobs.

B)

conducting interviews online.

C)

reducing application-processing costs by using electronic application forms.

D)

viewing salary surveys for recruiting strategies.

Answer:

A

Diff: 3

Type: MC

Page Ref: 154

AACSB:

Objective:

67.

Which of the followingis nota characteristic of e-banking?

A)

saves users time and moneyB)

is increasing peer-to-peer (P2P) online lending

C)

is more expensive for banks

D)

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is becoming an enabling feature of business growth in the developing world

Answer:

C

Diff: 2

Type: MC

Page Ref: 158AACSB: Use of information technology

Objective:

68.

Types of online banking applications include each of the followingexcept

A)

informational.

B)

administrative.

C)

portal.

D)

directional.

Answer:

D

Diff: 3

Type: MC

Page Ref: 159

AACSB:

Objective:

69.

The portal online banking application provides

A)

links to local business.

B)

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online brokerage services.

C)

general bank information and history.

D)

account transfer capabilities.Answer:

A

Diff: 3

Type: MC

Page Ref: 159

AACSB:

Objective:

70.

Security for online bank transactions includes each of the followingexcept

A)

virtual biometrics.

B)

digital certificates.

C)

firewalls.

D)

SSL encryption.

Answer:

ADiff: 2

Type: MC

Page Ref: 160


Objective:

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71.

Gateways to storefronts and e-malls are

A)

shopbots.

B)

shopping portals.

C)

shopping browsers.

D)

intelligent search engines.

Answer:

B

Diff: 2

Type: MC

Page Ref: 164


Objective:

72.

Software tools that scout the Web on behalf of consumers who specify search criteria are

A)

shopping browsers.

B)

shopbots.

C)

intelligent search engines.

D)

shopping portals.

Answer:

B

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Diff: 2

Type: MC

Page Ref: 165


Objective:

73.

The TRUSTe seal is an example of a(n)

A)

B2B exchange.

B)

trustmark.

C)

business rating.

D)

intermediary.

Answer:

B

Diff: 1

Type: MC

Page Ref: 166


Objective:

74.

Charles wants to buy a John Lennon lithograph over the Internet, but he is unwilling to pay for it until he inspects it to

ascertain authenticity. The auction site through which he purchases the painting agrees to hold his money until he tells

them to release it to the seller. This is an example of a(n)

A)

warranty.

B)

trustmark.

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C)

verification.

D)

escrow service.

Answer:

D

Diff: 2

Type: MC

Page Ref: 166


Objective:

75.

The effect upon sales of consumers receiving a referral or recommendation from other consumers defines

A)

location-based economy.

B)

referral economy.

C)

viral marketing.

D)

regional economy.

Answer:

B

Diff: 2

Type: MC

Page Ref: 166

AACSB:

Objective:

76.

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A search engine whose mission is to help people find local qualified services ranging from mechanics to restaurants to

hairstylists describes

A)

Pricescan.com.

B)

Freddy's List.C)

Local.com.

D)

Yelp.

Answer:

DDiff: 2

Type: MC

Page Ref: 167

AACSB:

Objective:

77.

The removal of organizations or business process layers responsible for certain intermediary steps in a given supply chain

describes

A)

extraction.

B)

relocation.

C)

reintermediation.

D)

disintermediation.

Answer:

D

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Type: MC

Page Ref: 168

AACSB:

Objective:

78.

The process whereby intermediaries take on new intermediary roles defines

A)

disintermediation.

B)

reintermediation.

C)

seller reassignment.

D)

relocation.

Answer:

B

Diff: 2

Type: MC

Page Ref: 168

AACSB:

Objective:

79.

The situation in which an online marketing channel upsets the traditional channels due to real or perceived damage from

competition definesA)

channel conflict.

B)

distributor reassignment.

C)

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partner disassociation.

D)

disintermediation.

Answer:

A

Diff: 3

Type: MC

Page Ref: 169

AACSB:

Objective:

80.

A traditional brick-and

-mortar store with a mature website that uses a successful click

-and

-mortar strategy is able to

A)

give customers the opportunity to perform various functions interactively at any time.

B)

leverage its marketing channels by offering the advantages of each marketing channel to customers from all channels.

C)

link all of its back-end systems to create an integrated customer experience.

D)

do all of the above.

Answer:

D

Diff: 2

Type: MC

Page Ref: 170

AACSB:

Objective:

tif_9780273761389_03

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