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Answer Key
1. _____ is accelerated and enhanced by the Internet and the technology that
supports it.
A. IPO
B. E-commerce
C. Merchandising
D. M-commerce
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Introduction
2. _____ is a formal business plan that maps out your customer base and your
strategy for reaching them.
A. E-plan
B. Feasibility plan
D. Path-to-profitability (P2P)
AACSB: Technology
Blooms: Understand
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 2 Medium
Topic: Introduction
3. The primary reason most dot-com businesses from the late 1990s are no longer
in existence today is because they didn't:
The major error that most dot-com businesses made in the late 1990s—and
they are no longer in existence today—is that they never developed a clear
path-to-profitability.
AACSB: Technology
Blooms: Understand
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 2 Medium
Topic: Introduction
4. Which type of e-commerce occurs when a business sells products and services
to a government entity?
A. B2C
B. B2G
C. G2B
D. B2B
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
5. _____ occurs when an individual sells products and services to a government
entity.
A. G2B e-commerce
B. B2G e-commerce
C. C2G e-commerce
D. G2C e-commerce
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
6. _____ occurs when a government entity sells products and services to
businesses.
A. G2B e-commerce
B. B2G e-commerce
C. C2G e-commerce
D. G2C e-commerce
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
7. The _____ e-commerce model is an example of citizens paying their income tax
returns online rather than through the mail.
A. G2C
B. B2G
C. G2B
D. B2B
A. B2C
B. B2G
C. C2B
D. B2B
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
9. If your company sold tires to the automobile industry and these sales were
conducted through the Internet, what type of e-commerce model would you be
using?
A. E-CB
B. I-BB
C. B2B
D. C2B
B. E-Markets (EM)
C. Open-source Market
D. B2B e-marketplace
B2B e-marketplaces are virtual marketplaces in which businesses buy from and
sell products to each other, share information, and perform other important
activities. B2B e-marketplaces represent one of the fastest growing trends in the
B2B e-commerce model.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
11. Which type of e-commerce occurs when a business sells products and services
to customers who are primarily individuals?
A. B2B
B. B2C
C. G2C
D. C2B
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
12. When you purchase your books for this course from an online source such as
Amazon.com, you are participating in which type of e-commerce?
A. I-BC
B. E-CB
C. C2B
D. B2C
C. Interaction between consumers and businesses are direct in the B2B market;
they are indirect in the B2C market.
D. The B2B marketplace does not involve consumers, just business partners; the
B2C marketplace involves consumers.
The B2C e-commerce business model is very different from the B2B e-
commerce business model. Consumers interact directly with businesses via the
Web. Consumers surf around the Web evaluating products and services at
numerous separate e-commerce sites until they eventually choose one site from
which to make a purchase. And while businesses prefer to enter into long-term
partnerships with other businesses in B2B e-commerce, consumers are fickle
and purchase the same types of products and services from many different sites.
AACSB: Technology
Blooms: Understand
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 2 Medium
Topic: E-Commerce Business Models
14. Which type e-commerce occurs when an individual sells products and services
to a business?
A. C2B
B. B2C
C. B2B
D. C2C
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
15. Affiliate programs are good examples of which type of e-commerce?
A. B2C
B. B2B
C. G2C
D. C2B
Affiliate programs are a good example of the C2B e-commerce business model.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
16. If you created links on your personal Web site that connected your visitors to
businesses with the goal that you would earn a fee for purchases made by your
visitors, what type e-commerce model are you creating?
A. Affiliate programs
B. B2B
C. E-Advertisement
D. C2C
Through an affiliate program relationship with Amazon, for example, you can
post links on your personal Web site to Amazon for products and services it
sells.
A. B2C
B. G2C
C. C2C
D. C2B
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
18. eBay is a hybrid of both:
eBay is a hybrid of both a B2C e-commerce site and a C2C e-commerce site. It
is a B2C e-commerce site because it sells a service to you, that of giving you the
ability to interact in the auctioning of items. (You pay eBay only if you're the
seller, not the buyer.) And it is really an intermediary supporting your
engagement in a C2C e-commerce business model. That is, you use eBay to sell
products and services to other consumers, and you use eBay to buy products
and services from other consumers.
AACSB: Technology
Blooms: Understand
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 2 Medium
Topic: E-Commerce Business Models
19. In the world of e-commerce, your business should be able to distinguish
between which of the following?
AACSB: Technology
Blooms: Understand
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 2 Medium
Topic: Understand Your Business, Products, Services, and Customers
20. Which of the following types of products purchased on the Internet are typically
priced low because they are used more frequently?
A. Speciality
B. Convenience
C. Niche
D. Luxury
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
21. Which of the following types of products purchased on the Internet are typically
high priced items because they are purchased infrequently and often require
some sort of customization?
A. Convenience
B. Commoditylike
C. Specialty
D. Digital
Specialty products are higher-priced, ordered on a less frequent basis, and often
require customization.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
22. Which of the following is an example of commoditylike merchandise?
A. Toothpaste
B. Computers
C. Cell phones
D. Automobiles
AACSB: Technology
Blooms: Understand
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 2 Medium
Topic: Understand Your Business, Products, Services, and Customers
24. What is a "sticky" Web site?
A "sticky" Web site not only attracts consumers but also encourages them to
return to it again and again.
AACSB: Technology
Blooms: Understand
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 2 Medium
Topic: Understand Your Business, Products, Services, and Customers
25. Which terms describes the ability of an organization to give its customers the
opportunity to tailor its products or services to their specification?
A. E-Itemization
B. Crowd modification
C. Specialization
D. Mass customization
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
26. BMW is currently creating interactive Web sites that allow one to build and
purchase their own unique car. This type of Web site creates what type of
business opportunity?
A. Direct e-sales
B. I-purchasing
D. Mass customization
A. non-perishable
B. indirect materials
C. additional services
D. support resources
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
28. _____ refers to the combining of purchase requests from multiple buyers into a
single large order, which justifies a discount from the business.
A. Mass customization
B. E-business alliance
C. Demand aggregation
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
29. _____ are materials that are used in production in a manufacturing company or
are placed on the shelf for sale in a retail environment.
A. Indirect materials
B. Direct materials
C. Perishable materials
D. Converse materials
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
30. A(n) _____ is the process in which a buyer posts its interest in buying a certain
quantity of items with notations concerning quality, specification, and delivery
timing, and sellers compete for the business by submitting successively lower
bids until there is only one seller left.
A. vertical e-marketing
B. reverse auction
D. B2B E-mart
A reverse auction is the process in which a buyer posts its interest in buying a
certain quantity of items with notations concerning quality, specification, and
delivery timing, and sellers compete for the business by submitting successively
lower bids until there is only one seller left. Reverse auctions create tremendous
"power" for the buyer because multiple sellers are competing for the same
business.
AACSB: Technology
Blooms: Understand
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 2 Medium
Topic: Understand Your Business, Products, Services, and Customers
31. What is the difference between a reverse auction and mass customization?
A. Horizontal e-marketplace
B. Vertical e-marketplace
D. Direct marketplace
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
33. Which of the following is an electronic marketplace that connects buyers and
sellers in a given industry?
A. Horizontal e-marketplace
B. Indirect marketplace
D. Vertical e-marketplace
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
34. What is the difference between horizontal e-marketplaces and vertical e-
marketplaces?
AACSB: Technology
Blooms: Understand
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 2 Medium
Topic: Understand Your Business, Products, Services, and Customers
35. _____ is the set of marketing tools that your organization will use to pursue its
marketing objectives in reaching and attracting potential customers.
A. Marketing target
B. Marketing potential
C. Marketing strategies
D. Marketing mix
Marketing mix is the set of marketing tools that your organization will use to
pursue its marketing objectives in reaching and attracting potential customers.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
36. What term is used to describe the small advertisements that appear on other
Web sites?
A. Viral ads
B. Banner ads
C. Adware
D. Spyware ads
Online ads (often called banner ads) are small advertisements that appear on
other sites.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
37. What term is used to describe a small Web page containing an advertisement
that appears on your screen, outside the current Web site loaded into your
browser?
A. AdWare
B. External ads
C. Viral ads
D. Pop-up ads
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
38. What term is used to describe an ad that appears after you close your current
browser window?
A. AdWare
B. Viral ads
C. External ads
D. Pop-under ads
A pop-under ad is a form of a pop-up ad that you do not see until you close
your current browser window.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
39. What is the difference between a pop-up and pop-under ad?
A. A pop-up ad appears when you open a Web site; you do not see a pop-
under ad until you close your current browser window.
AACSB: Technology
Blooms: Understand
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 2 Medium
Topic: Find Customers and Establish Relationships
41. An affiliate program is:
AACSB: Technology
Blooms: Understand
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 2 Medium
Topic: Find Customers and Establish Relationships
42. Google allows publishers at all levels of web traffic to place contextual ads in
blog posts. Hence, Google is a(n) _____ program.
A. affiliate
B. wiki
C. conversion
D. pop-under
A. Conversion rate
B. Click-through
C. Marketing hits
D. Viral speed
A click-through is a count of the number of people who visit one site, click on
an ad, and are taken to the site of the advertiser.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
44. What is the percentage of potential customers who visit your site who actually
buy something?
A. Hit rate
B. Conversion rate
C. Click-through
A conversion rate is the percentage of potential customers who visit your site
who actually buy something. So, while total views or "hits" to your e-commerce
Web site are important, obviously even more so is your conversion rate.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
45. What type of Internet-based company makes it easy for one person to pay
another person or organization over the Internet?
A. Financial cybermediary
C. E-provider
D. I-banks
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
46. What mechanism is used for sending money from your checking or savings
account to another person or organization?
A. Cyber money
B. Cybermediary
C. Electronic check
D. E-Payment
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
47. What system sends bills over the Internet and provides an easy-to-use
mechanism to pay for them?
A. Cybermediary
B. Electronic check
C. E-Payment
D. EBPP
Electronic Bill Presentment and Payment (EBPP) is a system that sends bills
(usually to end consumers) over the Internet and provides an easy-to-use
mechanism (such as clicking on a button) to pay for them if the amount looks
correct.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
48. _____ is a credit-card like device that contains an embedded chip on which
digital information can be stored and updated?
A. Smart card
B. E-credit card
C. E-Information
Smart card is a plastic card the size of a credit card that contains an embedded
chip on which digital information can be stored and updated. The chip, in this
case, can contain information about how much money you have. When you
swipe your card to pay for a purchase, the swiping device deducts the purchase
amount from the amount you have stored on the chip. Some debit cards are
implementations of the smart card concept.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
49. What financial tool contains both security software and information about the
user's payment and delivery preferences?
A. Cybermediary
B. Smart cards
C. E-Payments
D. Digital wallets
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
50. What is the difference between a smart card and a digital wallet?
B. A smart card contains both software and information; a digital wallet contains
only information.
D. A digital wallet contains a smart card; a smart card is part of the digital wallet
along with other personal consumer information.
Smart card is a plastic card the size of a credit card that contains an embedded
chip on which digital information can be stored and updated. A digital wallet is
both software and information—the software provides security for the
transaction and the information includes payment information (for example, the
credit card number and expiration date) and delivery information.
B. Consumer-based wallet
D. Smart card
Digital wallets can be stored either on the client side or the server side. A client-
side digital wallet is one that you create and keep on your computer; you can
then use it at a variety of e-commerce Web sites. Most browsers such as
Internet Explorer support your ability to create this type of digital wallet.
AACSB: Technology
Blooms: Understand
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 2 Medium
Topic: Move Money Easily and Securely
52. Which type of digital wallet maintains your e-commerce information on the
seller's Web site?
AACSB: Technology
Blooms: Understand
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 2 Medium
Topic: Move Money Easily and Securely
53. Which type of business environment supports computer-to-computer transfer
of transaction information in a standard business document and format?
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
54. _____ is a B2B service that offers information-sharing intermediary services
between organizations based on various standards regarding the format of the
information and how it will be sent and received.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
55. Which type of business environment is used within the B2B e-commerce model
for the payment of purchases?
A. VAN
B. GXS
C. PKE
D. Financial EDI
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
56. _____ scrambles the contents of a file so that you can't read it without having the
right key to unscramble the file.
A. Coder
B. Scrambler
C. Encryption
D. Fusion
Encryption scrambles the contents of a file so that you can't read it without
having the right decryption key. Encryption can be achieved in many ways: by
scrambling letters in a known way, replacing letters with other letters or perhaps
numbers, and other ways.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
57. Which scrambling technique provides you with two keys: one key that everyone
in an organization can have to scramble the contents of a file and another key
for the intended recipient to unscramble the file?
B. Public coder/decoder
Public key encryption (PKE) is an encryption system that uses two keys: a public
key that everyone can have and a private key for only the recipient.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
58. Which computer tool creates a secure and private connection between a Web
client's computer and a Web server's computer, so that files sent from one to
another are kept confidential?
A Secure Sockets Layer (SSL) creates a secure and private connection between a
Web client computer and a Web server computer, encrypts the information, and
then sends the information over the Internet. SSLs do provide good security for
transferring information and are used widely by B2C e-commerce Web sites.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
59. Which transmission method ensures that transactions traveling over the Internet
are legitimate as well as secure?
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
60. If you were a seller on the Internet and you wanted to ensure that your buyer's
transaction information was correct and legitimate, what type of Web
environment would you need?
B. E-commerce businesses that can reach the audience in the Long Tail cannot
do so without the typical brick-and-mortar retail costs and expenses.
E-commerce businesses that can reach the audience in the Long Tail can do so
without the typical brick-and-mortar retail costs and expenses (representing
both fixed and variable costs in break-even analysis). Long Tail represents an
entirely new business model and requires new business thinking. Traditional
business thinking looks at sales in terms of economies of scale, seeking to sell as
many of one item as possible to offset fixed costs (such as shelf placement
costs). The Long Tail model is quite different from the traditional model.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-05 Discuss some major trends that are impacting both the e-commerce business world and society in
general.
Level of Difficulty: 1 Easy
Topic: E-Business Trends
62. When businesses provide enabling technologies that allow people to create,
modify, and oversee the development of a product or service, it is known as
____.
C. crowdsourcing
AACSB: Technology
Blooms: Remember
Learning Objective: 05-05 Discuss some major trends that are impacting both the e-commerce business world and society in
general.
Level of Difficulty: 1 Easy
Topic: E-Business Trends
63. Which type of technology allows you to wirelessly connect to and use centrally
located information and/or application software?
A. Networking applications
C. Mobile computing
AACSB: Technology
Blooms: Remember
Learning Objective: 05-05 Discuss some major trends that are impacting both the e-commerce business world and society in
general.
Level of Difficulty: 1 Easy
Topic: E-Business Trends
64. What term describes electronic commerce that can be conducted over a
wireless device?
A. E-trade
B. M-commerce
C. Wireless business
D. Virtual commerce
AACSB: Technology
Blooms: Remember
Learning Objective: 05-05 Discuss some major trends that are impacting both the e-commerce business world and society in
general.
Level of Difficulty: 1 Easy
Topic: E-Business Trends
65. If you were to purchase a song from iTunes with your cell phone, what type of
technology would you be using?
A. M-commerce
B. Broadband
C. CDMA
D. Web 2.0
TRUE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Introduction
FALSE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Introduction
68. B2G e-commerce occurs when a government entity sells products and services
to businesses.
FALSE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
69. G2G e-commerce refers to the electronic commerce activities performed within
a nation's government or between two more nations' governments including
providing foreign aid and the sharing of border patrol activities.
TRUE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
FALSE
71. B2B e-marketplaces are virtual marketplaces in which businesses buy from and
sell products to each other.
TRUE
B2B e-marketplaces are virtual marketplaces in which businesses buy from and
sell products to each other, share information, and perform other important
activities.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
72. The C2B e-commerce business model is a true inversion of the C2C e-
commerce business model.
FALSE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
73. In the B2C e-commerce business model, the consumer drives supply and the
business drives demand.
FALSE
In the B2C e-commerce business model, demand is driven by the consumer and
supply is driven by the business. In C2B it is inverted; the consumer drives
supply and the business drives demand.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
TRUE
Affiliate programs are good examples of the C2B e-commerce business model.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
75. eBay is a hybrid of both a B2C e-commerce site and a C2C e-commerce site.
TRUE
eBay is a hybrid of both a B2C e-commerce site and a C2C e-commerce site. It
is a B2C e-commerce site because it sells a service to you, that of giving you the
ability to interact in the auctioning of items. (You pay eBay only if you're the
seller, not the buyer.) And it is really an intermediary supporting your
engagement in a C2C e-commerce business model. That is, you use eBay to sell
products and services to other consumers, and you use eBay to buy products
and services from other consumers.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
TRUE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
77. Digital products are one of the best products to offer in a B2C environment.
TRUE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
78. For a consumer, a digital product is the same no matter where it is purchased.
FALSE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
TRUE
Commoditylike business environments are typically easy to enter (i.e., they have
low barriers to entry).
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
80. Indirect materials are materials that are necessary for running a modern
corporation, but do not relate to the company's primary business activities.
TRUE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
81. A reverse auction occurs when a seller posts a list of items for sale and then
accepts bids from interested buyers.
FALSE
A reverse auction is the process in which a buyer posts its interest in buying a
certain quantity of items with notations concerning quality, specification, and
delivery timing, and sellers compete for the business by submitting successively
lower bids until there is only one seller left. Reverse auctions create tremendous
"power" for the buyer because multiple sellers are competing for the same
business.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
FALSE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
83. A marketing mix is the set of technology tools that the firm uses to pursue its
marketing objectives in the target market.
FALSE
A marketing mix is the set of marketing tools that your organization will use to
pursue its marketing objectives in reaching and attracting potential customers.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
84. A pop-under ad is a form of a pop-up ad that you do not see until you close
your current browser window.
TRUE
A pop-under ad is a form of a pop-up ad that you do not see until you close
your current browser window.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
85. An affiliate program between two e-commerce sites directs viewers from one
site to the other.
TRUE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
86. The conversion rate is the count of the number of people who visit one site,
click on an ad, and are taken to the site of the advertiser.
FALSE
A conversion rate is the percentage of potential customers who visit your site
who actually buy something. A click-through is a count of the number of people
who visit one site, click on an ad, and are taken to the site of the advertiser.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
87. Electronic checks are a mechanism for sending money from your checking or
savings account to another person or organization.
TRUE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
88. Digital wallets are plastic cards the size of a credit card which feature an
embedded chip capable of storing digital information.
FALSE
Smart card is a plastic card the size of a credit card that contains an embedded
chip on which digital information can be stored and updated. A digital wallet is
both software and information—the software provides security for the
transaction and the information includes payment information and delivery
information.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
89. A client-side digital wallet is one that an organization creates for and about you
and maintains on its server.
FALSE
A client-side digital wallet is one that you create and keep on your computer;
you can then use it at a variety of e-commerce Web sites. A server-side digital
wallet is one that an organization creates for and about you and maintains on
its server.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
90. Using a VAN, businesses can order products and send invoices electronically.
TRUE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
91. After the ordering of products and the sending of invoices, money needs to
exchange hands. This occurs via financial electronic data interchange.
TRUE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
92. Encryption scrambles the contents of a file so that no unauthorized person can
read it.
TRUE
Encryption scrambles the contents of a file so that you can't read it without
having the right decryption key.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
93. A virtual good is a physical object that is sold over the internet.
FALSE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-05 Discuss some major trends that are impacting both the e-commerce business world and society in
general.
Level of Difficulty: 1 Easy
Topic: E-Business Trends
94. Mobile computing is a broad general term describing your ability to use
technology to wirelessly connect to and use centrally located information and/or
application software.
TRUE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-05 Discuss some major trends that are impacting both the e-commerce business world and society in
general.
Level of Difficulty: 1 Easy
Topic: E-Business Trends
TRUE
AACSB: Technology
Blooms: Remember
Learning Objective: 05-05 Discuss some major trends that are impacting both the e-commerce business world and society in
general.
Level of Difficulty: 1 Easy
Topic: E-Business Trends
Fill in the Blank Questions
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Introduction
97. A(n) _____ is a formal business plan that outlines key business issues.
path-to-profitability (P2P)
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Introduction
98. _____ e-commerce occurs when a business sells products and services to a
government entity.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
99. _____ e-commerce accounts when an individual sells products and services to a
government entity.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
100. _____ e-commerce occurs when a government entity sells products and services
to a business.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
102. _____ e-commerce refers to the electronic commerce activities performed within
a nation's government.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
103. _____ e-commerce occurs when a business sells products and services to
customers who are primarily other businesses.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
104. _____ e-commerce occurs when a business sell products and services to
customers who are primarily individuals.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
105. _____ e-commerce occurs when an individual sells products and services to a
business.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
106. _____ e-commerce occurs when an individual sells products and services to
another individual.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-01 Define and describe the nine major e-commerce business models.
Level of Difficulty: 1 Easy
Topic: E-Commerce Business Models
Mass customization
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
108. _____ materials used in the normal operation of a business but not related to
primary business operations.
Indirect
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
109. _____ combines purchase requests from multiple buyers into a single large order,
which justifies a discount from the business.
Demand aggregation
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
110. _____ materials are materials that are used during production in a manufacturing
company or are placed on the shelf for sale in a retail environment.
Direct
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
111. A(n) _____ occurs when 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.
reverse auction
A reverse auction is the process in which a buyer posts its interest in buying a
certain quantity of items with notations concerning quality, specification, and
delivery timing, and sellers compete for the business by submitting successively
lower bids until there is only one seller left.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
112. A(n) _____ e-marketplace brings together buyers and sellers from multiple
industries.
horizontal
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
113. A(n) _____ e-marketplace brings together buyers and sellers from the same
industry.
vertical
AACSB: Technology
Blooms: Remember
Learning Objective: 05-02 Identify the differences and similarities among customers and their perceived value of products and
services in the B2B and B2C e-commerce business models.
Level of Difficulty: 1 Easy
Topic: Understand Your Business, Products, Services, and Customers
114. _____ is the set of marketing tools that the firm uses to pursue its marketing
objectives in the target market.
Marketing mix
Marketing mix is the set of marketing tools that your organization will use to
pursue its marketing objectives in reaching and attracting potential customers.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
115. A(n) _____ appears under a Web page and cannot be seen until the page is
closed.
pop-under ad
A pop-under ad is a form of a pop-up ad that you do not see until you close
your current browser window.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
116. _____ encourages users of a product or service to ask their friends to use the
product or service as well.
Viral marketing
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
117. _____ is arrangements made between e-commerce sites that direct users from
one site to the other.
Affiliate programs
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
118. _____ is a count of the number of people who visit one site, click on an ad, and
are taken to the site of the advertiser.
Click-throughs
A click-through is a count of the number of people who visit one site, click on
an ad, and are taken to the site of the advertiser.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
119. _____ is the percentage of customers who visit the site who actually buy
something.
Conversion rate
A conversion rate is the percentage of potential customers who visit your site
who actually buy something.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-03 Compare and contrast the development of a marketing mix for customers in the B2B and B2C e-
commerce business models.
Level of Difficulty: 1 Easy
Topic: Find Customers and Establish Relationships
120. _____ are Internet-based companies that make it easy for one person to pay
another person over the Internet.
Financial cybermediaries
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
121. A(n) _____ is an electronic mechanism for sending money from your checking or
savings account to another person or organization.
electronic check
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
122. _____ is a system that permits a company to send bills to you over the Internet.
Further, you can even pay those bills online.
Electronic Bill Presentment and Payment (EBPP) is a system that sends bills
(usually to end consumers) over the Internet and provides an easy-to-use
mechanism (such as clicking on a button) to pay for them if the amount looks
correct.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
123. A(n) _____ combines software (to provide for a secure transaction), payment
information and deliver information.
digital wallet
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
124. _____ is used primarily in B2B to pay for purchases.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
125. _____ is a transmission security method that ensures transactions are legitimate
as well as secure.
AACSB: Technology
Blooms: Remember
Learning Objective: 05-04 Summarize the various ways of moving money in the world of e-commerce and related issues.
Level of Difficulty: 1 Easy
Topic: Move Money Easily and Securely
126. As defined by Chris Anderson, Editor-in-Chief of Wired Magazine, the term
"____" refers to the tail of a sales curve.
Long Tail
The Long Tail—a notion first offered by Chris Anderson, Editor-in-Chief of Wired
magazine, as a way of explaining e-commerce profitability—actually refers to
the tail of a sales curve
AACSB: Technology
Blooms: Remember
Learning Objective: 05-05 Discuss some major trends that are impacting both the e-commerce business world and society in
general.
Level of Difficulty: 1 Easy
Topic: E-Business Trends
127. _____ is a broad general term describing your ability to use technology to
wirelessly connect to and use centrally located information and/or application
software.
Mobile computing
AACSB: Technology
Blooms: Remember
Learning Objective: 05-05 Discuss some major trends that are impacting both the e-commerce business world and society in
general.
Level of Difficulty: 1 Easy
Topic: E-Business Trends
M-commerce
AACSB: Technology
Blooms: Remember
Learning Objective: 05-05 Discuss some major trends that are impacting both the e-commerce business world and society in
general.
Level of Difficulty: 1 Easy
Topic: E-Business Trends