Midterm 1 Study Guide

Front 1

16) Which of the following statements about e-commerce in the United States in 2014 is nottrue?

A) Mobile e-commerce generates more revenue than social e-commerce.

B) Over 160 million Americans are expected to make at least one purchase online.

C) B2B e-commerce is about 10 times the size of B2C e-commerce.

D) Growth rates for retail e-commerce are higher in the United States than in China.

Back 1

D) Growth rates for retail e-commerce are higher in the United States than in China.

Front 2

17) In 2014, roughly ________ million people in the United States accessed the Internet via tablets.

A) 47

B) 67

C) 147

D) 167

Back 2

C) 147

Front 3

18) Which of the following is not a major business trend in e-commerce in 2014-2015?

A) Social e-commerce continues to grow.

B) Small businesses and entrepreneurs are hampered by the rising cost of market entry caused byincreased presence of industry giants.

C) Sharing economy companies garner multi-billion dollar valuations.

D) Mobile and social advertising platforms begin to challenge search engine marketing.

Back 3

B) Small businesses and entrepreneurs are hampered by the rising cost

Front 4

19) All of the following are major technology trends in e-commerce in 2014-2015 except:

A) cloud computing enables the creation of Big Data.

B) firms are turning to Web analytics to make sense out of Big Data.

C) mobile computing and communications platform creates a new platform for onlinetransactions, marketing, advertising, and media viewing.

D) computing and networking component prices continue to fall dramatically.

Back 4

A) cloud computing enables the creation of Big Data.

Front 5

20) E-commerce can be defined as:

A) the use of the Internet, the Web, and mobile apps to transact business.

B) the use of any Internet technologies in a firm's daily activities.

C) the digital enablement of transactions and processes within an organization.

D) any digitally enabled transactions among individuals and organizations.

Back 5

A) the use of the Internet, the Web, and mobile apps to transact business.

Front 6

21) Which of the following is not a unique feature of e-commerce technology?

A) interactivity

B) social technology

C) information asymmetry

D) richness

Back 6

C) information asymmetry

Front 7

22) Which of the following features of e-commerce technology enables merchants to market andsell "complex" goods and services to consumers via marketing messages that can integrate video,audio, and text?

A) richness

B) ubiquity

C) information density

D) personalization

Back 7

A) richness

Front 8

23) Which of the following features of e-commerce technology allows users to participate in thecreation of online content?

A) ubiquity

B) global reach

C) information density

D) social technology

Back 8

D) social technology

Front 9

24) Which of the following is the best definition of transaction cost?

A) the expense of changing national or regional prices

B) the cost of participating in a market

C) the cost of finding suitable products in the market

D) the cost merchants pay to bring their goods to market

Back 9

B) the cost of participating in a market

Front 10

27) Which of the following features of e-commerce technology is related to the concept ofnetwork externalities?

A) richness

B) interactivity

C) universal standards

D) information density

Back 10

C) universal standards

Front 11

31) Which type of e-commerce is distinguished by the type of technology used in the transactionrather than by the nature of the market relationship?

A) consumer-to-consumer (C2C)

B) social e-commerce

C) mobile e-commerce

D) business-to-business (B2B)

Back 11

C) mobile e-commerce

Front 12

36) Which of the following statements about the Web is not true?

A) The Web is the technology upon which the Internet is based.

B) The Web was the original "killer app."

C) The Web provides access to pages written in HyperText Markup Language.

D) The Web is both a communications infrastructure and an information storage system.

Back 12

A) The Web is the technology upon which the Internet is based.

Front 13

38) All of the following can be considered a precursor to e-commerce except:

A) the development of the smartphone.

B) Baxter Healthcare's PC-based remote order entry system.

C) the French Minitel.

D) the development of Electronic Data Interchange standards.

Back 13

A) the development of the smartphone.

Front 14

39) Which of the following was the first truly large-scale digitally enabled transaction system inthe B2C arena?

A) Telex

B) the Baxter Healthcare system

C) the French Minitel

D) EDI

Back 14

C) the French Minitel

Front 15

40) In which year can e-commerce be said to have begun?

A) 1983

B) 1985

C) 1995

D) 2001

Back 15

C) 1995

Front 16

42) Which of the following is not true about the use of apps?

A) The average U.S. consumer spends over 2 hours and 45 minutes a day using apps.

B) Users still spend less time using apps than they do using desktops or mobile Web sites.

C) Apps are easier to control and monetize than Web sites.

D) Over 175 million people in the United States launch a smartphone app more than 60 times aday.

Back 16

B) Users still spend less time using apps than they do using desktops or mobile Web sites.

Front 17

44) Which of the following is a characteristic of e-commerce during the Invention period?

A) mobile technology

B) earnings and profit emphasis

C) disintermediation

D) extensive government surveillance

Back 17

C) disintermediation

Front 18

48) Unfair competitive advantages occur when:

A) one competitor has an advantage others cannot purchase.

B) market middlemen are displaced.

C) information is equally distributed and transaction costs are low.

D) firms are able to gather monopoly profits.

Back 18

A) one competitor has an advantage others cannot purchase.

Front 19

50) The early years of e-commerce are considered:

A) the most promising time in history for the successful implementation of first moveradvantages.

B) for a brief time consumers had access to all relevantmarket information and transaction costs plummeted.

C) a stunning technological success as the Internet and the Web increased from a few thousandto billions of transactions per year.

D) a dramatic business success as 85% of dot-coms formed since 1995 became flourishingbusinesses.

Back 19

C) a stunning technological success as the Internet and the Web increased from a few thousand to billions of transactions per year.

Front 20

53) Which of the following is a characteristic of the Reinvention phase of e-commerce?

A) massive proliferation of dot-com start-ups

B) widespread adoption of broadband networks

C) rapid growth of search engine advertising

D) expansion of e-commerce to include services as well as goods

Back 20

D) expansion of e-commerce to include services as well as goods

Front 21

54) Which of the following is a characteristic of the Consolidation phase of e-commerce?

A) predominance of pure online strategies

B) emphasis on revenue growth versus profits

C) brand extension and strengthening becomes more important than creating new brands

D) shift to a technology-driven approach

Back 21

C) brand extension and strengthening becomes more important than creating new brands

Front 22

56) Which of the following statements is not true?

A) Information asymmetries are continually being introduced by merchants and marketers.

B) Intermediaries have not disappeared.

C) Overall transaction costs have dropped dramatically.

D) Brands remain very important in e-commerce.

Back 22

C) Overall transaction costs have dropped dramatically.

Front 23

58) Retail chains account for around ________ % of online retail firm revenues.

A) 15

B) 35

C) 75

D) 95

Back 23

B) 35

Front 24

59) One of the predictions for the future of e-commerce is that:

A) overall revenues from e-commerce will grow at an annualized rate of about 13% a yearthrough 2018.

B) the first movers from the early years of e-commerce will retain or increase their market shareas they continue to exploit economies of scale and switching costs.

C) prices will lower enough to encourage more consumers to engage in online shopping.

D) the number of online shoppers will continue to grow at double-digit rates.

Back 24

A) overall revenues from e-commerce will grow at an annualized rate of about 13% a year through 2018.

Front 25

65) Which of the following statements is not true?

A) No one academic perspective dominates research about e-commerce.

B) Economists take a purely technical approach to e-commerce.

C) There are two primary approaches to e-commerce: behavioral and technical.

D) Management scientists are interested in e-commerce as an opportunity to study how businessfirms can exploit the Internet to achieve more efficient business operations.

Back 25

B) Economists take a purely technical approach to e-commerce.

Front 26

16) ________ and ________ are typically the most easily identifiable aspects of a company'sbusiness model.

A) Market strategy; market opportunity

B) Value proposition; revenue model

C) Value proposition; competitive environment

D) Revenue model; market strategy

Back 26

B) Value proposition; revenue model

Front 27

22) A firm's ________ describes how a firm will produce a superior return on invested capital.

A) value proposition

B) revenue model

C) market strategy

D) competitive advantage

Back 27

B) revenue model

Front 28

33) The business model of e-tailers is quite similar to that of:

A) e-distributors.

B) transaction brokers.

C) exchanges.

D) service providers.

Back 28

A) e-distributors.

Front 29

40) Which of the following is not a variation of the e-tailer business model?

A) bricks-and-clicks

B) virtual merchant

C) market creator

D) manufacturer-direct

Back 29

C) market creator

Front 30

44) In general, the key to becoming a successful content provider is to:

A) own the content being provided.

B) own the technology by which content is created, presented, and distributed.

C) provide online content for free.

D) provide other services as well as online content.

Back 30

A) own the content being provided.

Front 31

45) Which of the following was not able to successfully implement a freemium business model?

A) Pandora

B) Dropbox

C) LinkedIn

D) Ning

Back 31

D) Ning

Front 32

38) The Web runs in which layer of Internet architecture?

A) Network Technology Substrate layer

B) Middleware Services layer

C) Transport Services and Representation Standards layer

D) Applications layer

Back 32

D) Applications layer

Front 33

38) Symmetric key cryptography is also known as:

A) public key cryptography.

B) secret key cryptography.

C) PGP.

D) PKI.

Back 33

B) secret key cryptography.

Front 34

20) The process of slicing digital messages into parcels, sending them along differentcommunication paths as they become available, and reassembling them at the destinationpoint is called:

A) routing.

B) the Transmission Control Protocol.

C) packet switching.

D) the File Transfer Protocol.

Back 34

C) packet switching.

Front 35

20) Which of the following is not one of the main stages of the online purchasing process?

A) post­purchase service and loyalty

B) awareness

C) evaluation

D) conversation

Back 35

D) conversation

Front 36

51) ________ create and sell access to digital markets.

A) E­distributors

B) Portals

C) E­procurement firms

D) Market creators

Back 36

C) E­procurement firms

Front 37

51) All of the following are traditional online marketing tools except:

A) affiliate marketing.

B) e­mail and permission marketing.

C) social marketing.

D) sponsorship marketing.

Back 37

C) social marketing.

Front 38

26) Which of the following is not true about search engine advertising?

A) Spending on search engine advertising constitutes over 40% of all online advertisingspending.

B) The top three search engine providers supply over 95% of all online searches.

C) The click­through rate for search engine marketing has been fairly steady over the years.

D) Search engine advertising is the fastest growing type of online advertising.

Back 38

D) Search engine advertising is the fastest growing type of online advertising.

Front 39

44) Which of the following features of e­commerce technology allows fine­grained, highlydetailed information on consumers' real­time behavior to be gathered and analyzed?

A) personalization/customization

B) information density

C) social technology

D) interactivity

Back 39

B) information density

Front 40

29) "Shoppers" constitute approximately ________ % of the online Internet audience.

A) 60

B) 70

C) 80

D) 90

Back 40

D) 90

Front 41

37) All of the following are examples of malicious code except:

A) viruses.

B) bots.

C) worms.

D) sniffers.

Back 41

D) sniffers.

Front 42

43) All of the following statements about PKI are true except:

A) The term PKI refers to the certification authorities and digital certificate procedures that areaccepted by all parties.

B) PKI is not effective against insiders who have a legitimate access to corporate systemsincluding customer information.

C) PKI guarantees that the verifying computer of the merchant is secure.

D) The acronym PKI stands for public key infrastructure.

Back 42

C) PKI guarantees that the verifying computer of the merchant is secure.

Front 43

43) Which of the following features of e­commerce technology has reduced the cost ofdelivering marketing messages and receiving feedback from users?

A) ubiquity

B) richness

C) interactivity

D) universal standards

Back 43

D) universal standards

Front 44

45) The ________ helps define the overall structure of the Internet.

A) IAB

B) IESG

C) W3C

D) ITU

Back 44

A) IAB

Front 45

45) Which of the following dimensions of e­commerce security is not provided for byencryption?

A) confidentiality

B) availability

C) message integrity

D) nonrepudiation

Back 45

B) availability