Electronic commerce and easy page

Smart cards are plastic cards the size of a credit card that contain an embedded chip on which digital information can be stored. Answer: True Level: Easy Page: 189 6. Completely products are the very best of all to use when dealing with the BBC e-commerce segment. Answer: False Level: Hard Page: 181 7. A marketing mix is the set of technology tools that the firm uses to pursue its marketing objectives in the target market. Answer: False Level: Medium Page: 182 8. Virtual marketing encourages users of a product or service supplied by a BBC many to ask friends to Join in as well.

Answer: False Level: Medium Page: 185 9. Web services are arrangements made between e-commerce sites that direct users from one site to the other. Answer: False Level: Easy Page: 185 Test Bank, Chapter 5 F 10. Click-thorough are the count of the number of people who visit one site, click on an ad, and are taken to the site of the advertiser. Answer: True Level: Easy Page: 185 F 11. Indirect materials are materials that are necessary for running a modern corporation, but do not relate to the company’s primary business activities. Answer: True Level: Easy Page: 181 F 12.

E-commerce permits customers, consumers, and companies to form relationships that would not be possible without technology. Answer: True Level: Easy page: 170 F 13. An e-commerce web site is a silver bullet and can save any business from bankruptcy or failure. Answer: False Level: Easy Page: 170 F 14. The five forces model was developed to determine the relative attractiveness of an industry. Answer: True Level: Easy Page: 174 F 15. If the suppliers in a particular industry hold a lot of the power, the industry is less attractive to enter if you are a buyer. Answer: True Level: Easy Page: 175 F 16.

If the buyers in a particular industry hold a lot of the power, the industry is more attractive to enter if you are a buyer. Answer: False Level: Easy Page: 174 F 17. The threat of new entrants is low when it is easy for competitors to enter the market. Answer: False Level: Easy Page: 176 F 18. An industry is more attractive when the rivalry among existing competitors is high. Answer: False Level: Easy Page: 176 F 19. A business that has to overcome significant entry barriers will be very successful. Answer: False Level: Medium Page: 176 F 20. Buyer power is high when buyers have few choices.

Answer: False Level: Medium Page: 176 Hag/Cummings, Information Systems Essentials 91 F 21 . A company that provides goods and services typically wishes to increase buyer power. Answer: False Level: Medium Page: 176 F 22. Establishing a frequent-buyer club is one method a business could use to decrease buyer power. Answer: True Level: Hard Page: 176 F 23. Supplier power is high when there are many suppliers. Answer: False Level: Medium Page: 175 F 24. Switching costs are those costs that make customers reluctant to change product or service providers. Answer: True Level: Easy Page: 175 F 25.

An entry barrier is a product or service that customers have come to expect from an industry and must be offered by new entrants to compete and survive. Such barriers, once created, are permanent. Answer: False Level: Easy Page: 176 F 26. Rivalry among existing competitors is high when competition in the industry is fierce. Answer: True Level: Easy Page: 176 F 27. The technology present in e-commerce has intensified competition in almost every industry. Answer: True Level: Medium Page: 176 F 28. As a result of technology, buyer power has increased in most industries. Answer: True Level: Medium Page: 177 F 29.

Digital products are typically the best products to offer in a BBC environment Answer: True Level: Medium Page: 181 F 30. For a consumer, a commodities product is the same no matter where it is purchased. Answer: True Level: Easy Page: 179 F 31 . Digital products are expensive to deliver. Answer: False Level: Medium Page: 181 92 F 32. Mass customization refers to designing products which appeal to as many people as possible. Answer: False Level: Medium Page: 181 F 33. Maintenance, repair, and operations materials are also referred to as direct materials. Answer: False Level: Easy Page: 181 F 34.

A reverse auction occurs when a seller posts a list of items for sale and then accepts bids from interested buyers. Answer: False Level: Easy Page: 181 F 35. An electronic marketplace or e-marketplace is an interactive business providing a centralized market where many buyers and suppliers can come together for e- commerce or commerce-related activities. Answer: True Level: Easy Page: 182 F 36. An integrated e-marketplace brings together buyers and sellers from multiple industries, often for direct materials. Answer: False Level: Medium Page: 183 F 37. A horizontal e-marketplace brings together buyers and sellers from the same industry.

Answer: False Level: Easy Page: 182 F 38. An online or banner ad is an ad that appears on a Web site. Answer: True Level: Easy Page: 184 F 39. Most people enjoy pop-up or pop-under ads. Answer: False Level: Easy Page: 185 F 40. Viral marketing uses viruses transmitted via e-mail to advertise products. Answer: False Level: Easy Page: 185 F 41 . An affiliate program between two e-commerce sites directs viewers from one site to the other. Answer: True Level: Easy Page: 185 F 42. A financial cybernetic is an Internet-based company that makes it easy for en person to pay another over the Internet. Answer: True Level: Easy Page: 188 93 F 43.

Electronic checks are simply faxed copies of normal checks. Answer: False Level: Easy Page: 188 F 44. Digital wallets are plastic cards the size of a credit card which feature an embedded chip capable of storing digital information. Answer: False Level: Medium page: 189 F 45. The direct computer-to-computer transfer of transaction information contained in standard business documents, conducted in a standard format, is termed Electronic Data Interchange. Answer: True Level: Medium Page: 190 F 46. Encryption scrambles the contents of a file so that no unauthorized personnel F 47. Encryption schemes can only utilize a single key.

Answer: False Level: Medium page: 192 F 48. If your browser displays a small picture of a lock or if the web address begins http, then you’re using secure sockets layers to connect to another web page. Answer: False Level: Hard Page: 193 Multiple Choice Questions 49. Which of the following describes e-commerce? A) Buying products from each other B) Buying services from each other C) Selling services from each other D) All of the above Answer: D Level: Medium Page: 170 0. Which of the following is part of the four main segments for e-commerce? A) BIB B) BBC C) CAB D) All of the above Answer: D Level: Easy page: 170 51 .

Which segment do eBay, Amazon. Com, and Landsmen. Com belong? A) BBS B) BPCS C) CBS D) Answer: B Level: Medium page: 172 52. Which segment focuses on consumers dealing with each other? A) BIB B) BBC C) CAB D) sec Answer: D Level: Medium page: 170 53. Which segment is eBay an example? A) BIB B) CAB C) ICC D) None of the above Answer: D Level: Medium Page: 172 54. Which segment is most of the media’s attention focused on? A) BIB B) BBC C) CAB D) sec Answer: B Level: Easy page: 172 55. In which segment is the dollar volume of e-commerce expected to be concentrated? A) BIB B) BBC C) CB D) ICQ Answer: A Level: Medium page: 172 56.

What combines purchase requests from multiple buyers into a single large order, which Justifies a discount from the business? A) Digital divide B) Global digital divide C) Demand aggregation D) None of the above Answer: C Level: Easy Page: 181 57. The best products to sell in BBC e-commerce are: A) Small products B) Digital products C) Specialty products D) Fresh products Answer: B Level: Medium Page: 180 8. Which products are people most likely to be more uncomfortable buying on the Internet? A) Books B) Furniture C) Movies D) All of the above Answer: B Level: Medium page: 180 59.

Which products are people most likely to be comfortable buying on the Internet? A) Books B) PC’s C) CDC D) All of the above Answer: D Level: Medium Page: 180 60. Digital products are best suited for BBC e-commerce because they: A) Are commodities products B) Can be mass-customized and personalized C) Can be delivered at the time of purchase D) All of the above Answer: D Level: Medium Page: 180 61 . The set of marketing tools that the firm uses to pursue its marketing objectives in the target market is called a(n): A) Customer mix B) Competitor mix C) Marketing mix D) All of the above Answer: C Level: Easy Page: 184 62.

All of the following are techniques BBC e-commerce companies use to attract customers, except: A) Registering with search engines B) Viral marketing C) Online ads D) Virtual marketing Answer: D Level: Medium Page: 185 63. What encourages users of a product or service supplied by a BBC company to ask friends to Join in as well? A) Spam B) Viral marketing C) Affiliate programs D) None of he above Answer: B Level: Easy Page: 185 64. What is an arrangement made between e-commerce sites that direct users from one site to the other? A) Spam B) Viral marketing C) Affiliate programs D) None of the above Answer: C Level: Easy Page: 185 65.

Which term represents a count of the number of people who visit one site, click on an ad, and are taken to the site of the advertiser? A) Affiliate programs B) Click- thorough C) Spam D) All of the above Answer: B Level: Easy Page: 185 66. What is the percentage of customers who visit a Web site and actually buy something called? A) Affiliate programs B) Click-thorough C) Spam D) Conversion rate Answer: D Level: Easy Page: 185 on the shelf for sale in a retail environment? A) Direct materials B) Indirect materials C) EDI D) None of the above Answer: A Level: Easy Page: 181 68.

What are materials that are necessary for running a modern corporation, but do not relate to the company’s primary business activities? A) Direct materials B) Indirect materials C) EDI D) None of the above Answer: B Level: Easy Page: 181 97 69. What are ballpoint pens purchased by a clothing company? A) Direct materials B) Indirect materials C) EDI D) None of the above Answer: B Level: Medium Page: 181 70. What is another name for MR. materials? A) Direct materials B) Indirect materials C) EDI D) None of the above Answer: B Level: Medium Page: 181 71 .

What is the process in which a buyer posts its interest in buying a certain quantity of items, and sellers compete for the business by submitting successively lower bids until there is only one seller left? A) BIB marketplace B) Intranet C) Reverse auction D) Internet Answer: C Level: Easy Page: 181 72. What are plastic cards the size of a credit card that contains an embedded chip n which digital information can be stored? A) Customer relationship management systems cards B) E-government identity cards C) FEED cards D) Smart cards Answer: D Level: Medium Page: 185 73.

Most individuals are familiar with which form of e-commerce? A) BIB B) BBC C) CAB D) sec Answer: B Level: Easy page: 172 74. Which form of e-commerce currently accounts for about 97% of all e-commerce revenues? A) BIB B) BBC C) CAB D) sec Answer: A Level: Easy page: 172 75. Which of the following are advantages normally associated with BIB e- commerce? A) shorter cycle times B) reduction in costs C) reaches wider audiences D) al of the above Answer: D Level: Easy Page: 172 76. What does Porter’s five forces model determine?