Chapter 5(α)
Class
1
Name
Studnet No.
Chapter 5
True/False Questions
1. A traditional storefront faces a lower cost of entry than an e-retailer.
2. Barnes and Noble combined their physical presence with their online presence to
form a bricks-and-mortar strategy.
3. Perhaps a potential customer’s most common path to a previously unknown
website is through a search engine.
4. A competitive advantage derived from price is difficult to copy and thus relatively
easy to sustain.
5. Very few Web sites compile personal information on their visitors and then use
the information to create customer profiles.
6. The Internet makes it difficult to pirate software.
7. Information-based services represent a natural source of consumer focused ecommerce revenue because information is digital in nature.
8. A virtual coop is a portal-like Web site that focuses on a particular market
segment or issue.
Multiple Choice Questions
Note: Remove the suggested answers to get fill-in questions.
1. A traditional retail outlet is sometimes called a __________ presence.
a. bricks-and-clicks
b. bricks-and-mortar
c. non-web
d. none of the above
2. To the __________, physical location does not matter because the Internet allows
anyone to link to any Web site no matter where in the world that site might be.
a. bricks-and-clicks retailer
b. e-retailer or e-tailer
c. bricks-and-mortar retailer
d. location always matters
3. Which of the following is likely to have the lowest cost of entry?
a. an e-retailer
b. a bricks-and-mortar presence
c. a bricks-and-clicks presence
d. a traditional storefront
4. Which of the following is not part of an Internet user’s first-year investment?
a. computer hardware
b. a bandwidth upgrade
c. application software
d. connectivity
5. Often, funding for the inevitable start-up costs comes from __________ who
provide seed money in exchange for equity or stock options.
E-Commerce Basics
H.L. Chan
Chapter 5(α)
a.
b.
c.
d.
2
angels
venture capitalists
a and/or b
neither a nor b
6. Which of the following is not an effective B2C hook?
a. significant numbers of graphic images on a Web site
b. a unique product
c. price leadership
d. convenience
7. The ultimate objective of a company’s website is to add enough value to achieve
__________, a state in which the customer has a vested interest to stay with the
company because switching to a competitor entails significant switching costs.
a. integration
b. interconnection
c. lock-in
d. a dependency relationship
8. A competitive advantage derived from __________ is difficult to copy and thus
relatively easy to sustain.
a. a unique product
b. price
c. a unique service
d. improved value chain and/or supply chain efficiency
9. Consumer interaction, the essence of consumer focused (B2C) e-commerce, is the
front end to __________.
a. the value chain (intra-business e-commerce)
b. the supply chain (B2B e-commerce)
c. neither
10. Before the dot-com bubble burst, a proposed B2C venture that could legitimately
claim __________ had relatively little trouble getting startup funding.
a. price leadership
b. convenience
c. first mover status
d. all of the above
11. To the __________, physical location does not matter because the Internet allows
anyone to link to any Web site no matter where in the world that site might be.
a. bricks-and-clicks retailer
b. e-retailer or e-tailer
c. bricks-and-mortar retailer
d. location always matters
12. Which of the following is not part of an Internet user’s first-year investment?
a. computer hardware
b. a bandwidth upgrade
c. application software
d. connectivity
E-Commerce Basics
H.L. Chan
Chapter 5(α)
3
Answers
T/F
1.(F)
2.(F)
3.(T)
4.(F)
5.(F)
6.(F)
7.(T)
8.(F)
MC
1.(B)
2.(B)
3.(A)
4.(B)
5.(C)
6.(D)
7.(C)
8.(D)
9.(D)
10.(C)
11.(B)
12.(B)
E-Commerce Basics
H.L. Chan