Information Systems CH 7

The opening case illustrates how e-commerce has increased (choose all that apply):

A. The volume of business transactions.
B. The skill with which computers are able to handle unexpected situations.
C. The occurrence of human errors.
D. The speed at which we do business.

A. The volume of business transactions.
D. The speed at which we do business.
Businesses and organizations set up Web sites to:

A. Sell goods and services.
B. Induce people to visit a physical location.
C. Reduce operational and transaction costs.
D. Enhance their reputation.
E. All of the above.

E. All of the above
In order to be considered as an e-commerce Web site, the site must sell some tangible good.

True
False

False
Downloading a book on an Amazon Kindle is an example of:

A. Pure e-commerce.
B. Partial e-commerce.
C. Both of these are correct.
D. Neither of these are correct.

A. Pure e-commerce.
____ accounts for the majority of e-commerce transactions.

A. B2C
B. B2B
C. C2C
D. B2E
E. G2C

B. B2B
eBay employs the ___ auction mechanism.

A. Forward
B. Reverse
C. Dutch
D. Proprietary eBay

A. Forward
____ and ____ are the two major challenges for the sellers in e-commerce.

A. Order fulfillment, large orders
B. Channel conflict, advertising
C. Advertising, large orders
D. Channel conflict, order fulfillment

D. Channel conflict, order fulfillment
In general, the e-commerce Web sites of click-and-mortar companies operate only during the business hours of their brick-and-mortar stores.

True
False

False
In general, e-commerce Web sites of click-and-mortar companies carry the same variety of merchandise as their brick-and-mortar stores.

True
False

False
For a small-to-medium enterprise, the benefits of setting up an e-commerce store front include (choose all that apply):

A. The ability to reach a wider customer base.
B. The ability to offer a larger selection of products.
C. The ability to eliminate advertising.
D. The ability to offer lower prices to customers.

A. The ability to reach a wider customer base.
B. The ability to offer a larger selection of products.
D. The ability to offer lower prices to customers.
Information is the major component of the e-commerce offerings of service industries.

True
False

True
Internet marketing typically is one-way and impersonal.

True
False

False
When organizations come to a company’s Web site for procurement, such business is classified as a(n):

A. Buy-side marketplace.
B. Sell-side marketplace.
C. Electronic exchange.
D. None of these.

B. Sell-side marketplace.
When organizations request for bids for contracts on their own Web site for procurement, such business is classified as a(n):

A. Buy-side marketplace.
B. Sell-side marketplace.
C. Electronic exchange.
D. None of these.

A. Buy-side marketplace.
Vertical exchanges are typically used only to buy and sell materials required for an organization’s support activities.

True
False

False
In an e-credit card transaction, the clearinghouse plays the following role:

A. Initiates the transfer of money
B. Validates and verifies the seller’s payment information
C. Transfers funds between the seller’s bank and the buyer’s bank
D. All of these

B. Validates and verifies the seller’s payment information
Virtual credit cards create new credit card accounts that are valid only for a pre-defined number of transactions.

True
False

False
The fee for a monetary transaction between a buyer and a seller using PayPal is paid for by:

A. Neither party; PayPal is a free service.
B. The payer.
C. The payee.
D. Both the payee and the payer.

B. The payer.
The sales tax laws that apply to brick-and-mortar stores also apply to all e-commerce stores.

True
False

False
Due to privacy issues, it is illegal for e-commerce Web sites to use cookies to record their customer’s past behaviors and discover their identity.

True
False

False
Cybersquatting refers to the tampering of existing Web sites and selling unrelated products.

True
False

False
Electronic business includes which of the following?

A. buying and selling
B. servicing customers
C. collaborating with business partners
D. conducting electronic transactions within an organization
E. all of the above

E. all of the above
When e-commerce is done in a wireless environment, this is called:

A. mobile commerce
B. wireless commerce
C. pervasive computing
D. location commerce
E. consumer commerce

A. mobile commerce
eBay is an example of which type of e-commerce?

A. consumer-to-consumer
B. consumer-to-business
C. business-to-consumer
D. business-to-business
E. government-to-citizen

A. consumer-to-consumer
Manufacturers or retailers sell directly to customers in which of the following business models?

A. online direct marketing
B. affiliate marketing
C. find-the-best-price
D. name-your-own-price
E. electronic tendering system

A. online direct marketing
In this type of e-commerce, buyers and sellers are individuals.

A. business-to-consumer
B. business-to-business
C. consumer-to-consumer
D. government-to-citizen
E. consumer-to-business

C. consumer-to-consumer
The primary characteristic of auctions is that prices are determined dynamically by competitive bidding.

True
False

True
Electronic commerce makes national and international markets less accessible.

True
False

False
In the _____ marketplace model, the reverse auction is typically used.

A. desktop purchasing
B. group purchasing
C. electronic exchange
D. buy-side
E. sell-side

D. buy-side
The key mechanisms in the sell-side marketplace are customized electronic catalogs and forward auctions.

True
False

True
Organizations typically face issues related to e-tailing including

A. Companies face issues in both of these areas
B. Channel conflict
C. Order fulfillment
D. Companies do not face issues in either of these areas

A. Companies face issues in both of these areas
In _____, needed services such as temporary help or extra space are traded on an as-needed basis.

A. buy-side marketplaces
B. horizontal exchanges
C. functional exchanges
D. sell-side marketplaces
E. vertical exchanges

C. functional exchanges
A(n) _____ is automatically launched by some trigger and appears in front of the active window.
A. keyword banner
B. random banner
C. pop-up ad
D. pop-under ad
E. text box
C. pop-up ad
Which type of electronic exchange connect buyers with sellers within a specific industry?

A. Functional exchanges
B. Public exchanges
C. Vertical exchanges
D. Horizontal exchanges

C. Vertical exchanges
Which type of electronic payment is typically favored in B2B

A. Electronic credit cards
B. Electronic checks
C. Smart cards
D. Electronic cash

B. Electronic checks
Stored-value money cards contain chips with personal data.

True
False

False
Which of the following electronic payments is ideal for micropayments?

A. Purchasing cards
B. Smart cards
C. Electronic checks
D. None of the methods listed is suited to micropayments

B. Smart cards
The use of electronic commerce requires companies to hire additional employees.

True
False

False
When two companies fight over a domain name the company that has been in business the longest is automatically considered the owner of the domain.

True
False

False
The stock market is the only area of business that has experienced fraud on the Internet.

True
False

False
Trademark owners in the US are not allowed to sue for damages in cases of cybersquatting.

True
False

False