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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 to Internet 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


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

False

Diff: 2


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


5. E-tailing is retailing conducted online over the Internet. Answer:

True False

Diff: 1


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

True False

Diff: 1


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


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


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

True False

Diff: 2


10. Direct marketing describes marketing that takes place over the Internet involving wholesalers and retailers. Answer: True

False

Diff: 2


11. Click-and-mortar retailers are brick-and-mortar retailers that offer a transactional Web site from which to conduct business. Answer:

True False

Diff: 1


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

True False

Diff: 1


13. Types of online malls include referring directories and event shopping malls. Answer: True

False

Diff: 2


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

True False

Diff: 2


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


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

True False

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


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

False

Diff: 3


19.

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

False

Diff: 2


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

True False

Diff: 2


21. Assessing their market value is an advantage of the electronic job market for employers. Answer: True

False

Diff: 2

Type: TF Page Ref: 154

AACSB: Objective:

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

True False

Diff: 2


23. The major risk of online trading is security. Answer:

True False

Diff: 1


24. Virtual banks have a brick-and-mortar location and also conduct online transactions. Answer: True

False

Diff: 1


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


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

True False

Diff: 1


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

False

Diff: 2


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


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

True False

Diff: 1


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


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

False

Diff: 2


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.

Answer: True

False

Diff: 2


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

False

Diff: 1


34. Channel conflict occurs when the addition of an online distribution channel causes problems with existing distribution channels. Answer:

True False

Diff: 2

Type: TF Page Ref: 169

AACSB: Objective:

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

True False

Diff: 1


36. Amazon.com experienced each of the following except 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:

Objective:

37. According to Internet 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 retailing except 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)

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

Diff: 3


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 Internet except A)

health and beauty.

B) cars.

C)

travel.

D)

tobacco.

D

Answer:

Diff: 1


41. With all else being equal in the online environment, goods with any of the following product characteristics are expected to facilitate greater online sales except A)

relatively expensive items. B) frequently purchased items. C)

digitized format. D)

high brand recognition. Answer: A

Diff: 2


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


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.

Answer: D

Diff: 1


44. Major advantages of e-commerce to sellers include each of the following except 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


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)

business model. C)

marketing plan. D)

mission statement. Answer: B

Diff: 2


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: A

Diff: 3


47. Based on distribution channel used, which of the following is not a 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

Diff: 3 Type: MC Page Ref: 142 AACSB: Use of information technology 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


50. Marketing done online between any seller and buyer best defines A)

target marketing. B) multichannel marketing. C)

direct marketing. D)

personalization. Answer: C

Diff: 2


51. The competitive advantages of a "pull" vehicle distribution process include each of the following except 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


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

virtual e-tailers. B) social network. C)

viral marketers. D)

click-and-mortar stores. Answer: A

Diff: 2


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

AACSB: Use of information technology 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


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

transaction broker. B) viral marketer. C)

content disseminator. D)

market maker. Answer: B

Diff: 2


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

market maker. B) content disseminator. C)

viral marketer. D)

transaction broker. Answer: A

Diff: 2


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

content disseminator. B)

service provider. C)

intermediary. D)

viral marketer. Answer: B

Diff: 3


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: A

Diff: 2


59. Which of the following is not a social shopping model? A)

personalized event shopping B) private shopping clubs C)

location-based e-commerce D)

private auctions Answer: D

Diff: 2


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


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


62. Each of the following is a revenue model for online independent travel agents except A)

subscription or membership fees. B) contract negotiators. C)

direct revenues from commissions. D)

revenue sharing fees. Answer: B

Diff: 3


63. Each of the following is a characteristic of WAYN except 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


64. Limitations of online travel services include A)

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


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

AACSB: Use of information technology 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


67. Which of the following is not a characteristic of e-banking? A)

saves users time and money B) is increasing peer-to-peer (P2P) online lending C)

is more expensive for banks D)

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

Diff: 2


68. Types of online banking applications include each of the following except A)

informational. B) administrative. C)

portal.

D)

directional. Answer: D

Diff: 3


69. The portal online banking application provides A)

links to local business. B)

online brokerage services. C)

general bank information and history. D)

account transfer capabilities. Answer: A

Diff: 3


70. Security for online bank transactions includes each of the following except A)

virtual biometrics. B) digital certificates. C)

firewalls.

D)

SSL encryption. Answer: A

Diff: 2


71. Gateways to storefronts and e-malls are A)

shopbots.

B)

shopping portals. C)

shopping browsers. D)

intelligent search engines. Answer: B

Diff: 2


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

Diff: 2 Type: MC Page Ref: 165 AACSB: Use of information technology 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


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.

trustmark.

B)

C)

verification.

D)

escrow service. Answer: D

Diff: 2


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


76.

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.

Yelp.

D)

Answer:

D

Diff: 2


77. The removal of organizations or business process layers responsible for certain intermediary steps in a given supply chain describes A)

extraction.

relocation.

B)

C)

reintermediation. D)

disintermediation. Answer: D


78. The process whereby intermediaries take on new intermediary roles defines A)

disintermediation. B) reintermediation. C)

seller reassignment. D)

relocation. Answer: B

Diff: 2


79. The situation in which an online marketing channel upsets the traditional channels due to real or perceived damage from competition defines A)

channel conflict. B) distributor reassignment. C)

partner disassociation. D)

disintermediation. Answer: A

Diff: 3


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


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