Chapter 1 Overview of Electronic Commerce1.1 True/False1) Every company needs a business model describing how the company operates, how it generates sales, and how it provides value to the customers and eventually profit to its owners.Answer: TRUE2) The terms e-commerce and e-business can be used interchangeably.Answer: TRUE3) The form EC takes depends on the degree of digitization of the product sold, the process, and the delivery method.Answer: TRUE4) In order for a situation to be considered as electronic commerce, the product, process, and delivery method should all be digital.Answer: FALSE5) Purchasing a computer from Dell's Web site is partial EC because the merchandise is physically delivered. Answer: TRUE6) Amazon. can be classified as a click-and-mortar organization.Answer: TRUE7) Pure-play organizations are old-economy organizations that perform their primary business offline, selling physical products by means of physical agents.Answer: FALSE8) According to Mockler, over 85 percent of EC volume is B2B.Answer: TRUE9) Transactions conducted on Priceline. are examples of collaborative commerce.Answer: FALSE10) The introduction of the World Wide Web was a major milestone in electronic commerce development. Answer: TRUE11) Online publishing is an electronic commerce application.Answer: TRUE12) A person purchasing a pair of shoes from Zappos is an example of B2B.Answer: FALSE13) Economic, legal, societal, and technological factors have created a highly competitive business environment in which customers are becoming less powerful.Answer: FALSE14) Business models are a subset of a business plan or business case and refer to methods of doing business by which a company can generate revenue.Answer: TRUE15) The structure of a social network is often very simple.Answer: FALSE1.2 Multiple Choice1) The process of buying, selling, or exchanging products,s, or information via the computer best definesA) electronic collaboration. B) electronic commerce.C) Tweeting. D) cyber sales.Answer: B2) A broader definition of EC that includes not just the buying and selling of goods ands, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organizationbest definesA) e-business. B) e-tailing.C) e-collaboration. D) cyber business.Answer: A3) EC can take several forms depending on the degree of digitization of the following three dimensions:A) the product or sold, the process, and the delivery method.B) the business process, the collaboration, and the transaction.C) the payment method, the delivery method, and the production method.D) the marketing channel, the agent, and the collaboration method.Answer: A4) Dell collaborating electronically with its partners and providing customer online is an example ofA) B2C. B) e-CRM.C) C2B. D) B2B2C.Answer: B5) Electronic commerce applications includeA) direct marketing. B) online banking.C) m-commerce. D) all of the above.Answer: D6) Support areas for EC include each of the following exceptA) infrastructure. B) people.C) public policy. D) business partnerships.Answer: A7) The e-commerce model in which all of the participants are businesses or other organizations is calledA) business-to-consumer. B) business-to-business.C) business-to-business-to-consumer. D) consumer-to-consumer.Answer: B8) The e-commerce model in which a business provides some product or to a client business that maintains its own customers is calledA) business-to-consumer. B) business-to-business.C) business-to-business-to-consumer. D) consumer-to-consumer.Answer: C9) Ebay auctions are mostlyA) business-to-employees. B) consumer-to-business.C) business-to-consumer. D) consumer-to-consumer.Answer: D10) The second generation of Internet-baseds that lets people collaborate and share information online in new ways, such as social networking sites, wikis, communication tools, and folksonomies best definesA) Wii. B) Web 2.0. C) EC 2.0. D) SNS2.Answer: B11) Using Web 2.0 tools, companies canA) encourage consumers to rate and comment on products.B) allow consumers to create their own topic areas and build communities.C) provide incentives such as sweepstakes and contests for customers to get involved in new product or design and marketing campaigns.D) do all of the above.Answer: D12) A ________ is a company's method of doing business to generate revenue to sustain itself.A) marketing strategy B) business modelC) value chain D) business planAnswer: B13) According to the ________ revenue model, customers pay a fixed amount, usually monthly, to receive some type of.A) subscription fees B) transaction feesC) advertising fees D) affiliate feesAnswer: A14) Which of the following is not a major revenue model?A) attributive fee B) salesC) transaction fees D) subscription feesAnswer: A15) Large private organizational buyers and government agencies make large-volume or large-value purchasesthrough ________, also known as reverse auctions.A) electronic tendering systems B) online direct marketingC) name-your-own-price models D) viral marketingAnswer: A1.3 Fill in the Blank1) ________ is the process of buying, selling, transferring, or exchanging products,s, and/or information viacomputer.Answer: Electronic commerce2) ________ are organizations that conduct some e-commerce activities, usually as an additional marketingchannel.Answer: Click-and-mortar organizations3) ________ describes the hardware, software, and networks used in EC.Answer: Infrastructure4) The e-commerce category that includes all internal organizational activities that involve the exchange ofgoods,s, or information among various units and individuals in an organization is ________.Answer: intrabusiness EC5) ________ is the e-commerce model in which individuals or groups communicate or collaborate online. Answer: Collaborative commerce6) A ________ is a that builds online communities by providing an online space for people to build freehomepages and that provides basic communication and support tools for conducting different activities in thesocial network.Answer: social network7) An ________ is a network that uses the Internet to link multiple intranets.Answer: extranet8) ________ is a broader definition of EC that includes not just the buying and selling of goods ands, but alsoservicing customers, collaborating with business partners, and conducting electronic transactions within an organization.Answer: E-businessDiff: 3 Page Ref: 289) A method of doing business by which a company can generate revenue to sustain itself defines ________. Answer: business model10) A ________ is a model in which a buyer requests would-be sellers to submit bids; the lowest bidder wins.Answer: tendering (bidding) system1.4 Essay1) List and briefly explain three of the five supports in the electronic commerce framework.Answer: The five supports are people, public policy, marketing and advertisement, supports, and businesspartnerships. The people pillar includes buyers, sellers, intermediaries,, information systems people, andmanagement. The public policy pillar includes taxes, legal, privacy issues, regulations, compliance, andtechnical standards. The marketing and advertisement pillar includes market research, promotions, web content,and targeted marketing. The supports pillar includes order fulfillment, logistics, payments, content, and securitysystems development. The business partnerships pillar includes affiliate programs, joint ventures, exchanges,e-marketplaces, and consortia.2) 2) List the five typical EC business models.Answer: The five typical EC business models are online direct marketing, electronic tendering systems, electronic marketplaces and exchanges, viral marketing, and social networking and Web 2.0 tools.Chapter 2 E-Marketplaces: Mechanisms, Tools, and Impacts of E-Commerce2.1 True/False1) EC enablers include electronic markets, e-stores, and e-catalogs.Answer: TRUE2) Storefronts, malls, and portals are EC mechanisms that support the entertainment EC activity. Answer: FALSE3) The emergence of electronic marketplaces has resulted in lower information search costs for buyers and lower transaction and distribution costs for sellers.Answer: TRUE4) Although both marketplaces and marketspaces can sell physical products, the marketspace can also sell digital products.Answer: TRUE5) An intermediary is a third party that operates between sellers and buyers.Answer: TRUE6) Travelers using airline Web sites to book their flights directly without the use of travel agents is resulting in the reintermediation of travel agents.Answer: FALSE7) Electronic storefronts, Internet malls, and exchanges are major B2B e-marketplaces. Answer: FALSE8) Brokers and infomediaries are two types of online intermediaries.Answer: TRUE9) Search engines not only "search and match," but also have capabilities that can be used to perform routine tasks that require intelligence.Answer: FALSE10) An electronic shopping cart is an order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop.Answer: TRUE11) Shopping carts for B2B are fairly simple, but a shopping cart for B2C may be more complex. Answer: FALSE12) An auction is a market mechanism that uses a competitive process by which a seller solicits consecutive bids from buyers or a buyer solicits bids from sellers.Answer: TRUE13) Auctions are based on dynamic pricing.Answer: TRUE14) Reverse auctions are bidding or tendering systems in which the buyer places an item for bid ona request for quote system; then potential suppliers bid on the job, with the price reducing sequentially, and the lowest bid wins.Answer: TRUE15) In the one buyer, many potential sellers dynamic pricing configuration, the sellers use a forward auction.Answer: FALSE2.2 Multiple Choice1) Electronic markets are the EC mechanism supporting theA) communicate, collaborate and learn EC activities.B) presence and delivery, find information, compare, and analyze EC activities.C) improve performance EC activities.D) entertainment EC activities.Answer: B2) Each of the following is a main function of traditional and electronic markets exceptA) matching buyers and sellers.B) facilitating the exchange of information, goods,s, and payments associated with market transactions.C) financing the transformation of raw materials into finished products.D) providing an institutional infrastructure, such as a legal and regulatory framework that enables the efficient functioning of the market.Answer: C3) Digital products have different cost curves than those of regular products because in digitizationA) most costs are variable, and fixed costs are low.B) most costs are fixed, and variable costs are very low.C) most costs are fixed, but variable costs are high.D) all costs are variable.Answer: B4) The portion of an e-seller's business through which customers interact, including the seller's portal, electronic catalogs, shopping cart, and payment gateway is theA) front end of the business.B) back end of the business.C) infrastructure for the business.D) intermediary in the business.Answer: A5) The elimination of various types of agents that mediate between buyers and sellers, such as travel and insurance agents, is referred to asA) automation.B) disintermediation.C) remediation.D) e-distribution.Answer: B6) Online markets that are owned and operated by a single company and that are either sell-side or buy-side are known asA) private e-marketplaces.B) commercial portals.C) e-malls.D) B2B marketplaces.Answer: A7) Public e-marketspaces areA) usually B2B markets.B) often owned by a third party or consortium.C) usually regulated by the government.D) all of the above.Answer: D8) Functionalities provided by EC merchant server software includeA) electronic catalogs.B) search engines.C) shopping carts.D) all of the above.Answer: D9) The presentation of product information in an electronic form and also serving as the backbone of most e-selling sites describesA) e-distributor.B) Kindle.C) e-magazine.D) electronic catalog.Answer: D10) Search tools that search the contents of a user's or organization's computer files, rather than searching the Internet areA) desktop search tools.B) enterprise search tools.C) search engine tools.D) host search tools.Answer: A11) A market mechanism that uses a competitive process in which a seller solicits consecutive bids from buyers or a buyer solicits bids from sellers best definesA) electronic shopping.B) request for proposal.C) auction.D) request for quotation.Answer: C12) The most common and traditional form of auctions in which one seller entertains bids from many buyers best describesA) forward auctions.B) reverse auctions.C) bidding auction systems.D) tendering systems.Answer: A13) The dynamic pricing configuration where the resulting price is determined by each party's bargaining power, supply and demand in the item's market, and possibly business environment factors best describesA) one buyer, one seller.B) one seller, many potential buyers.C) one buyer, many potential sellers.D) many sellers, many buyers.Answer: A14) All of the following are benefits of e-auctions to buyers except:A) can liquidate large quantities quickly.B) convenience of bidding anywhere and any time.C) opportunity to bargain.D) opportunities to find unique items.Answer: A15) Which of the following statements about bartering is false?A) It is the oldest method of trade.B) It is primarily done between individuals and private parties.C) The problem with bartering is that it is difficult to find trading partners.D) Intermediaries can be helpful, but they are expensive and very slow.Answer: B2.3 Fill in the Blank1) ________ refers to an online market, usually B2B, in which buyers and sellers exchange goods ors.Answer: E-marketplace2) A marketplace in which sellers and buyers exchange goods ands for money (or other goods ands), but do so electronically defines ________.Answer: marketspace3) ________ refers to the portion of an e-seller's business processes through which customers interact, including the seller's portal, electronic catalogs, a shopping cart, a search engine, and a payment gateway.Answer: Front end4) A private e-marketplace in which one company sells either standard and/or customized products to qualified companies defines ________.Answer: sell-side e-marketplace5) An ________ is an online shopping center where many online stores are located.Answer: e-mall6) ________ are electronic intermediaries that provide and/or control information flow in cyberspace, often aggregating information and selling it to others.Answer: Infomediaries7) A ________ is an auction in which a seller entertains bids from buyers, and bidders increase the price sequentially.Answer: forward auction8) The ________ is an auction in which the buyer places an item for bid on a request for quote system, potential suppliers bid on the job, with the price reducing sequentially, and the lowest bid wins.Answer: reverse auction9) The ________ is an auction model in which a would-be buyer specifies the price he or she is willing to pay to any willing and able seller.Answer: name-your-own-price model10) ________ is a marketplace in which an intermediary arranges barter transactions. Answer: Bartering exchange2.4 Essay1) List the six major EC trading activity categories.Answer: The six major EC trading activity categories are: (1) presence and discovery, find information, compare, analyze; (2) trading buy, sell, exchange; (3) communicate, collaborate, learn; (4) entertainment; (5) improve performance; and (6) other activities, recruit, customer.2) Discuss intermediation, disintermediation, and reintermediation.Answer: Intermediation occurs when a third party operates between buyers and sellers. Intermediaries provide information about demand, supply, prices, and requirements or they offer value-addeds. E-marketplaces, infomediaries and portals provide information for free or low cost, resulting in the disintermediation or elimination of the intermediary. Reintermediation occurs when the disintermediated entity takes on new intermediary roles.Chapter 3 Retailing in Electronic Commerce: Products and Services3.1 True/False1) The amount and percentage of goods ands sold on the Internet is increasing rapidly, despite the failure of many dot- companies.Answer: TRUE2) When comparing retailing to e-tailing, e-tailing has a lower cognitive shopping overhead due to easy-to-establish mutual trust.Answer: FALSE3) Commodities with standard specifications (e.g., books, CDs, airline tickets) are expected to facilitate higher sales volumes.Answer: TRUE4) A business model is a description of how an organization intends to generate revenue through its business operations.Answer: TRUE5) Marketing done online between any seller and buyer is indirect marketing.Answer: FALSE6) Direct marketers are firms that sell directly to consumers over the Internet without maintaininga physical sales channel.Answer: FALSE7) A click-and-mortar retailer is a combination of both the brick-and-mortar retailer and an online transactional Web site.Answer: TRUE8) Competition among online travel e-tailers is fierce, with low margins, little customer loyalty, and increasing commoditization of products ands.Answer: TRUE9) The electronic job market can create high turnover costs for employers by accelerating employees' movement to other jobs.Answer: TRUE10) When compared to the traditional job market, an advantage of the online job market is its long life cycle.Answer: TRUE11) An advantage of the electronic job market for job seekers is that they can assess their market value.Answer: TRUE12) Many insurance companies use a dual strategy, keeping human agents but also selling online. Answer: TRUE13) The major risk of online trading is security.Answer: TRUE14) Both online banks and click-and-mortar banks carry some risks and problems, especially in international banking, including hackers and liquidity risk.Answer: TRUE15) A major problem in B2C is the increasing rate of online fraud.Answer: TRUE3.2 Multiple Choice1) Each of the following describes retailing except:A) A retailer is a sales intermediary.B) Many manufacturers sell directly to consumers and through wholesalers and retailers.C) E-tailing makes it easier for a manufacturer to sell directly to customers by cutting out the intermediary.D) Companies that produce a larger number of products, such as Proctor & Gamble, do not need retailers for efficient distribution.Answer: D2) Retailers who sell over the Internet are calledA) cyber marketers.B) e-tailers.C) B2B commerce marketers.D) brick-and-mortar operations.Answer: B3) What is the primary advantage of catalog sales?A) Catalogs eliminate the constraints of space and time.B) Customers prefer catalog shopping to e-tailing.C) Catalogs increase interest in products that are then bought online.D) Products ands can both be sold via catalogs.Answer: A4) 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) high brand recognition.C) digitized format.D) frequently purchased items.Answer: A5) Dell's distribution strategy is best described asA) a brick-and-mortar strategy.B) a shared mall strategy.C) a click-and-mortar strategy.D) direct marketing from a manufacturer.Answer: D6) A marketer that uses to advertise to potential customers is called aA) market maker.B) transaction broker.C) content disseminator.D) viral marketer.Answer: D7) Each of the following is a revenue model for online independent travel agents exceptA) direct competition revenues.B) direct revenues from commissions.C) subscription or membership fees.D) revenue sharing fees.Answer: A8) Compared to the traditional job market, the online job marketA) has a shorter life cycle.B) is usually specialized and local in scope.C) tends to be less reliable.D) tends to be much less expensive.Answer: D9) Which of the following parties use the Internet job market?A) employers seeking employeesB) classified adsC) job agenciesD) all of the aboveAnswer: D10) Advantages of the electronic job market for employers include each of the following exceptA) charging online processing fees.B) providing greater equal opportunity for job seekers.C) learning how to use their voice effectively in an interview.D) conducting interviews online.Answer: A11) Advantages of the electronic market for job seekers include each of the following exceptA) assessing their market value.B) competing with less qualified applicants.C) marketing themselves directly to potential employers.D) communicating quickly with potential employers.Answer: B12) E-bankingA) saves time and money.B) is more expensive for banks.C) is primarily done using wireless devices.D) is done by less than 40 percent of U.S. adult Internet users.Answer: A13) Which of the following is not an online banking application category?A) informationalB) deliveryC) administrativeD) transactionalAnswer: B14) Gateways to storefronts and e-malls areA) shopping portals.B) shopbots.C) shopping browsers.D) intelligent search engines.Answer: A15) Tools that scout the Web on behalf of consumers who specify search criteria areA) shopping portals.B) shopbots.C) shopping browsers.D) intelligent search engines.Answer: B3.3 Fill in the Blank1) Broadly, marketing that takes place without intermediaries between manufacturers and buyers describes ________.Answer: direct marketing2) ________ are firms that sell directly to consumers over the Internet without maintaining a physical sales channel.Answer: Virtual (pure-play) e-tailers3) ________ are brick-and-mortar retailers that offer a transactional Web site from which to conduct business.Answer: Click-and-mortar retailers4) The ________ is the online B2C business model where a manufacturer sells to a business, but delivers to individual customers.Answer: B2B2C5) ________ is the online B2C business model where manufacturers customize their products ands via online orders.Answer: Make (build)-to-order6) Various banking activities conducted from home or the road using an Internet connection describes ________.Answer: electronic banking7) Gateways to e-storefronts and e-malls describes ________.Answer: shopping portals8) Tools that scout the Web on behalf of consumers who specify search criteria describes________.Answer: shopping robots9) The process whereby intermediaries take on new intermediary roles describes ________. Answer: reintermediation10) ________ is the situation in which an online marketing channel upsets the traditional channels due to real or perceived damage from competition.Answer: Channel conflict3.4 Essay1) List five business models by distribution channel.Answer: The five business models are direct marketing by mail-order retailers that go online, direct marketing by manufacturers, pure-play e-tailers, click-and-mortar retailers, and Internet malls.2) What are virtual (pure-play) e-tailers? Give an example. List one advantage and one disadvantage of this model.Answer: Virtual (pure-play) e-tailers are firms that sell directly to consumers over the Internet without maintaining a physical sales channel. Amazon. is a prime example of this type of e-tailer. Virtual e-tailers have the advantage of low overhead costs and streamlined processes. One disadvantage is a lack of established infrastructure or back office to support the online front-office activities.。