Chapter: Chapter05: E-Business and E-Commerce
Fill-in-the-blank
1. _______________ organizations are those that conduct some e-commerce activities, yet
their primary business is done in the physical world.
2. In _______________ auctions, there is one buyer, usually an organization, that wants to
buy a product or a service. Suppliers are invited to submit bids.
3. _______________ is the world’s largest auction site, and one of the most profitable
e-businesses.
4. _______________ advertising is the most commonly used form of advertising on the
Internet.
5. _______________ refers to the practice of registering domain names in order to sell
them later at a higher price.
6. When e-commerce is done in a wireless environment it is referred to as
_______________.
7. _______________ refers to word-of-mouth marketing, which has been used for
generations.
8. _______________ are e-marketplaces in which many buyers and sellers meet.
9. _______________ refer to auctions in which items are placed for sale and the bidders
increase their bids sequentially until no one else raises the bid.
10. _______________ is the conversion of information into a form readable only with a
special key.
11. In the _______________ model, organizations attempt to sell their products or
services to other organizations electronically from their own private e-marketplace and/or
from a third-party site.
12. An _______________, is a collection of individual shops under one Internet address.
Multiple Choice
1. Pure-play organizations are those that only:
a) deal with information based products and services.
b) operate in the physical marketplace.
c) operate in the virtual marketplace.
d) focus on developing and selling game related software.
e) focus on video games.
2. Companies were engaging in electronic commerce:
a) only after the commercialization of the Internet.
b) only after the emergence of the World Wide Web.
c) even before the emergence of the Internet and the World Wide Web.
d) only after the emergence of the Internet and the World Wide Web.
e) in the era of the telegraph.
3. Which of the following does NOT represent a major challenge faced by e-tailers?
a) organizing order fulfillment and logistics
b) identifying appropriate revenue models
c) resolving channel conflict
d) selection of appropriate intermediaries
e) identifying appropriate costing models
4. All of the following are limitations of e-business/electronic commerce, EXCEPT?
a) the lack of universally accepted standards for quality, security, and reliability
b) difficulty in integrating with legacy applications and databases
c) expensive and/or inconvenient access to the Internet for some users or businesses
d) lack of user friendly interfaces to access information stored on computers running
different operating systems
e) none of the above
5. Viral marketing is a(n) _______________.
a) incentive based marketing approach
b) word-of-mouth marketing.
c) permission based marketing approach .
d) type of spamming where marketers inundate prospects and customers with e-mail
e) medical marketing
6. EcEurope.com, Globalsources.com, and Alibaba.com are examples of:
a) vertical distributors for direct materials.
b) vertical exchanges for indirect materials.
c) horizontal distributors.
d) functional exchanges.
e) network exchanges.
7. ChemConnect.com and Isteelasia.com are examples of:
a) vertical distributors for direct materials.
b) vertical exchanges for indirect materials.
c) horizontal distributors.
d) functional exchanges.
e) network exchanges.
8. Plasticsnet.com and Papersite.com are examples of:
a) vertical distributors for direct materials.
b) vertical exchanges for indirect materials.
c) horizontal distributors.
d) functional exchanges.
e) network exchanges.
9. According to Kaplan and Swahney, there are _______________ types of electronic
exchanges.
a) two
b) four
c) three
d) five
e) six
10. Indiscriminate distribution of electronic ads without permission of the receiver is an
example of:
a) unsolicited advertising.
b) permission marketing.
c) viral marketing.
d) interactive advertising.
e) network marketing.
11. Failures of EC projects started as early as 1996. However, the major wave of
Internet-based EC failures started in:
a) 1998.
b) 1999.
c) 2000.
d) 2001.
e) 2003.
12. What do AOL Quick Cash, Bank One’s eMoneyMail and Yahoo PayDirect have in
common?
a) They all went out of business because of insufficient funding.
b) They are owned by the same financial services company.
c) They use the same type of encryption mechanism.
d) They offer person-to-person (P2P) payment services.
e) They represent bank partnerships.
13. _______________ is one of the security requirements for conducting EC. According to
this requirement, the buyer, the seller, and the paying institutions must be assured of the
identity of the parties with whom they are dealing.
a) Authentication
b) Integrity
c) Nonrepudiation
d) Privacy
e) Limitation
14. _______________ is one of the security requirements for conducting EC. According to
this requirement, it is necessary to ensure that data and information transmitted over the
Internet, are not accidentally or maliciously altered or destroyed during transmission.
a) Authentication
b) Integrity
c) Nonrepudiation
d) Privacy
e) Limitation
15. _______________ is one of the security requirements for conducting EC. According to
this requirement, merchants need protection against the customer’s unjustified denial of
placing an order. On the other hand, customers also need protection against merchants’
unjustified denial of payments made.
a) Authentication
b) Integrity
c) Nonrepudiation
d) Privacy
e) Limitation
16. Which of the following statements is NOT true about virtual credit cards?
a) Virtual credit cards are a service that allows you to shop with an ID number and a
password instead of with a credit card number.
b) Virtual credit cards are used primarily by people who do not trust browser encryption
sufficiently to use their credit card number on the Internet.
c) The bank that supports your traditional credit card can provide you with a virtual credit
card.
d) Most virtual stores on the Internet prefer payments made with virtual credit cards.
e) all of the above
17. Which of the following statements is NOT true about banner advertising?
a) A major advantage of using banners is the ability to customize them to the target
audience.
b) One of the major drawbacks of using banners is that limited information is allowed due
to its small size.
c) Banner ads are the most expensive form of advertising on the Internet.
d) Another drawback is that banners, which were a novelty in late 1990s and so were
noticed by viewers, are ignored by many viewers today.
e) all of the above
18. In _______________ transactions, both the sellers and the buyers are business
organizations.
a) B2C
b). B2B
c) C2B
d) C2C
e) G2G
19. The major mechanisms for buying and selling on the Internet are:
a) electronic catalogs.
b). electronic auctions.
c) online bartering..
d) all of the above
20. _______________ is a collection of individual shops under one Internet address.
a) Electronic mall
b). Electronic storefront
c) Shopping cart
d) Web cart
e) none of the above
21. The most common online advertising methods are:
I. banners; II. pop-ups; III. e-mails
a) I only.
b). I and II only.
c) II and III only.
d) I, II and III.
e) II only.
22. In __________ auction, there is one buyer, usually an organization, that wants to buy a
product or a service. Suppliers are invited to submit bids.
a) dutch
b). reverse
c) forward
d) simple
e) complex
23. In _______________ the sellers are organizations and the buyers are individuals.
a) C2C
b) B2C
c) B2B
d) C2B
e) G2C
24. In _______________ an individual sell products or services to other individuals.
a) C2C
b) B2C
c) B2B2C
d) G2C
e) G2G
25. In _______________ a business sells to a business but deliver the product or service to
an individual consumer.
a) C2B
b) B2B
c) B2B2C
d) C2C
e) G2C
26. In _______________ consumers make known a particular need for product or service,
and suppliers compete to provide the product or service to consumers.
a) C2B
b) B2B
c) B2C
d) B2B2C
e) B2G
27. When e-commerce is done in a wireless environment it is called:
a) mobile commerce.
b) wireless commerce.
c) inter commerce.
d) citizen commerce.
e) net commerce.
28. ___________ is the electronically supported exchange of goods and services without a
monetary transaction.
a) E-exchange
b) Electronic bartering
c) Electronic C2C
d) Amazon
e) EBay
29. ___________ is the electronic direct sale of products and services through electronic
storefronts or electronic malls.
a) E-tailing
b) Electronic retailing
c) Electronic mall
d) a and b
e) a and c
30. ___________ are simply electronic billboards.
a) Banners
b) Spy ware
c) Pop ups
d) a and c
e) Institials
31. _______________ is the indiscriminate distribution of electronic ads with out
permission or the receiver.
a) Pop ups
b) Advertising
c) Spamming
d) Sparring
e) a and b
32. The _______________ is a model in which organizations attempt to buy needed
products or services from other organizations electronically.
a) buy-side marketplace
b) sell-side marketplace
c) export-side marketplace
d) import-side marketplace
e) a and c
33. Encryption is a primary mechanism for _______________.
a) paying bills
b) security protection
c) fulfilling an order
d) ethical and legal issues in e-business
e) web tracking
34. How many dimensions can electronic catalogs be classified to?
a) 1
b) 2
c) 3
d) 4
e) 5
35. Banners, pop ups, and electronic catalogues are all forms of:
a) computer viruses.
b) email formats.
c) online advertising.
d) file sizes.
e) format size.
36. Intrabusiness is done between:
a) a computer and user.
b) business and employees.
c) employees and customers.
d) business and business.
e) none of the above
37. Electronic commerce can take several forms depending on the _______________.
a) product
b) degree of digitization
c) intermediary
d) process
e) distribution net
38. To help the client dispose of a service or product (online resale, classified ads) is:
a) Acquisition
b) Ownership
c) Retirement
d) Requirement
e) Requisition
39. According to Kaplan and Sawhney, there are four basic types of exchanges. Exchanges
which services are needed, such as temporary help or extra space, and are traded on an
as-needed basis are called:
a) functional exchanges.
b) horizontal distributions.
c) vertical exchanges for indirect materials.
d) vertical exchanges for direct materials.
e) horizontal exchanges.
40. What type of transaction involves a business that sells to a business but delivers the
products or service to an individual consumer?
a) Business-to-Consumer (B2C)
b) Consumer-to-Business (C2B
c) Business-to-Business-to-Consumer (B2B2C)
d) Business-to-Business (B2B)
e) Business-to-Government (B2G)
41. An electronic mall is:
a) a very high tech shopping center.
b) a database of all shopping malls in the U.S..
c) a collection of individual shops under one internet address.
d) shopping center where you find all kinds of electronics retail stores.
True/False
1. Keyword banners are most effective for companies who want to introduce new products
to the widest possible audience.
2. Random banners are most effective for companies who want to introduce new products
to the widest possible audience.
3. Dell Computer has more than 100 country specific websites.
4. Collaborative commerce is part of the old economy.
5. Electronic auctions are not really competitive because of the speed of information
technology.
6. Electronic store fronts include neon signs in front of stores.
7. Channel conflict is harmful to a business.
8. Desktop purchasing refers to buying office furniture online.
9. Online advertise is more effective than TV ads.
10. Web-tracking is illegal, it allows other people to see what you have done on the web.
Short Answer
1. How is Electronic Commerce different from Electronic Business?
2. What are the different types of E-commerce transactions?
3. What are cybermalls?
4. Contrast pure and partial electronic commerce.
5. What are the different types of banners ads?
6. According to Kaplan and Sawhney, what are the different types of electronic exchanges?
7. What is cyberbanking?
8. What are pop-up ads?
9. What is permission marketing?
10. What is viral marketing?
Essay
1. What are the benefits of EC to organizations?
2. What are the technical limitations of electronic commerce?
3. What are the non-technical limitations of electronic commerce?
4. What are the major benefits of electronic commerce to consumers?
5. What are the major benefits of electronic commerce to society?
6. What are some major issues faced by e-tailers?
7. Discuss the different types of electronic exchanges.
8. Discuss the different disintermediation and re-intermediation phenomenon.
9. Discuss the different types of electronic payment systems.
10. Discuss the major security issues relating to electronic payments.