ECOMerce Chapter 06

1
All of the following are attributes of personalized marketing except:

Choose one answer.
a. suitable for highly complex products.
b. unique price.
c. targeting of individuals.
d. use of mass media.
Incorrect
Marks for this submission: 0/1.
Question2
Which of the following is an example of an indirect reference group?
Choose one answer.
a. social class
b. family
c. religion
d. profession
Correct
Question3
Which of the following features of e-commerce technology has reduced the cost of delivering
marketing messages and receiving feedback from users?
Choose one answer.
a. ubiquity
b. richness
c. interactivity
d. universal standards
Incorrect
Question4
Which of the following age groups has the highest percentage of Internet access?
Choose one answer.
a. 18-29
b. 30-49
c. 50-64
d. 65+
Correct
Question5
On a typical day, approximately ________ percent of adult users in the United States logs on to
the Internet.
Choose one answer.
a. 27
b. 67
c. 77
d. 87
Correct
Question6
The richness made possible by e-commerce technologies does which of the following?
Choose one answer.
a. It reduces the cost of delivering marketing messages and receiving feedback
from users.
b. It allows consumers to become co-producers of the goods and services being
sold.
c. It allows video, audio, and text to be integrated into a single marketing
message and consuming experience.
d. It enables worldwide customer service and marketing communications.
Correct
All of the following are fixed price strategies except:
Choose one answer.
a. bundling.
b. versioning.
c. free pricing.
d. yield management.
Correct
Question8
Which of the following is the top concern of Internet users about purchasing online?
Choose one answer.
a. inability to see and touch before buying
b. difficulty of returning products
c. shipping costs
d. inability to speak to sales assistant in person
Correct
Question10
Walmart used which of the following market entry strategies?
Choose one answer.
a. first mover
b. strategic alliance
c. fast follower
d. brand extender
Correct
1
Marks: 1
The marketing technique known as ________ involves merchants offering products or services for
a very low price for a short period of time.
Choose one answer.
a. search engine marketing
b. flash marketing
c. yield management
d. bait-and-switch
Correct
Question2
Marks: 1
All of the following statements are true except:
Choose one answer.
a. online merchants can avoid direct price comparison by introducing
information asymmetries into the marketplace.
b. relative dispersion of prices for online goods has decreased.
c. price dispersion is less for commodities than for differentiated products.
d. depending on the seller, there can be large differences in price sensitivity
for the same products.
Incorrect
Question4
Marks: 1
Which of the following features of e-commerce technology allows fine-grained, highly detailed
information on consumers' real-time behavior to be gathered and analyzed?
Choose one answer.
a. personalization/customization
b. information density
c. social technology
d. interactivity
Correct
Question5
Marks: 1
For a Web site that has 5 million visitors a month, and where on average, a visitor makes 10 page
requests per visit, there will be ________ entries in the transaction log each month.
Choose one answer.
a. 50
b. 500,000
c. 5 million
d. 50 million
Correct
Question6
Marks: 1
Which of the following is not a true statement about brands?
Choose one answer.
a. Brands introduce market inefficiencies for consumers.
b. Brands reduce consumer risk and uncertainty in a crowded marketplace.
c. Brands create micro-monopolies.
d. Brands lower customer acquisition costs and increase customer
retention.
Correct
Question7
Marks: 1
Small ticket item sales outnumbered large ticket item sales during the early days of e-commerce
for all of the following reasons except:
Choose one answer.
a. purchase price was low.
b. items were physically small.
c. margins were low.
d. selection was broad.
Correct
Question9
Marks: 1
The set of plans for differentiating a product and communicating the differences effectively to the
marketplace is called:
Choose one answer.
a. brand strategy.
b. brand marketing.
c. branding.
d. brand equity.
Correct
Question10
Marks: 1
A Web beacon is:
Choose one answer.
a. a cookie that carries a virus.
b. an executable cookie.
c. an automated applet for performing Web searches.
d. a tiny graphics file embedded in an e-mail or Web page.
Correct
All of the following are preconditions for development of a "wise" crowd except:
Choose one answer.
a. many decision makers.
b. participants have similar backgrounds.
c. independence among participants.
d. mechanism to aggregate opinions.
Incorrect
1
Marks: 1
The incremental cost of building the next unit of a good is called the:
Choose one answer.
a. demand curve.
b. variable cost.
c. marginal cost.
d. fixed cost.
Correct
Question2
Marks: 1
Which of the following statements about the Internet's impact on marketing is not true?
Choose one answer.
a. The Internet has broadened the scope of marketing communications.
b. The Internet has decreased the impact of brands.
c. The Internet has increased the richness of marketing communications.
d. The Internet has expanded the information density of the marketplace.
Correct
Question5
Marks: 1
Choose one answer.
b. flash marketing
c. yield management
d. bait-and-switch
Correct
Question6
Marks: 1
In discussing a product's feature set, the term actual product refers to:
Choose one answer.
a. the set of characteristics designed to deliver the product's core benefits.
b. the actual benefit the customer receives from the product.
c. both the core benefits and added benefits the customer receives from the
product.
d. the set of physical attributes describing the product.
Correct
Question7
Marks: 1
Choose one answer.
Correct
Question8
Marks: 1
Creating multiple variations of information goods and selling these to different market segments at
different prices is called:
Choose one answer.
a. bundling.
b. customization.
c. dynamic pricing.
d. versioning.
Correct
Question9
Marks: 1
Toyota's use of the Internet to target Hispanic customers is an example of targeting a specific:
Choose one answer.
a. lifestyle group.
b. culture.
c. subculture.
d. psychological profile.
Incorrect
Question10
Marks: 1
Which of the following activities is the one engaged in by the highest percentage of online users?
Choose one answer.
a. using e-mail
b. using a search engine
c. researching products and services
d. reading news
Correct
Marks for this submission: 1/1
1
Marks: 1
Choose one answer.
a. bundling.
b. customization.
c. dynamic pricing.
d. versioning.
Correct
Question2
Marks: 1
The Nike iD program is an example of which of the following marketing techniques?
Choose one answer.
a. customer co-production
b. transactive content
c. price discrimination
d. permission marketing
Correct
Question3
Marks: 1
Choose one answer.

Correct
Question 4:
Marks: 1
In 2011, what was the approximate Internet penetration rate for households that had household
income of over $75,000?
Choose one answer.
a. 35 percent
b. 55 percent
c. 75 percent
d. 95 percent
Correct
Question5
Marks: 1
The idea that people classify themselves into "affinity groups" is central to which of the following
data mining techniques?
Choose one answer.
a. model-driven data mining
b. behavioral profiling
c. collaborative filtering
d. rule-based data mining

Correct
Question6
Marks: 1
A Web beacon is:
Choose one answer.
Correct
Question7
Marks: 1
Netflix entered the market with a(an) ________ strategy.
Choose one answer.
a. brand extender
b. fast follower
c. first mover
d. alliance
Incorrect
Question8
Marks: 1
Choose one answer.
a. It reduces the cost of delivering marketing messages and receiving feedback from users.
b. It allows consumers to become co-producers of the goods and services being sold.
c. It allows video, audio, and text to be integrated into a single marketing message and
consuming experience.

Correct
Question9
Marks: 1
"Shoppers" constitute approximately ________ percent of the online Internet audience.
Choose one answer.
a. 38
b. 68
c. 88
d. 98
Correct
10
Marks: 1
Which of the following examples illustrates the "Long Tail" phenomenon?
Choose one answer.
a. Rhapsody music streaming service reported that its no play rate had increased to over 20 percent.
b. The number of blockbuster "winner take all" video titles is declining.
c. Over 50 percent of Netflix's 100,000 titles are rented at least once a day by someone.
Incorrect
d. The average blog has a readership of slightly more than 1.
1
Marks: 1
Choose one answer.
a. bundling.
b. customization.
c. dynamic pricing.
d. versioning.
Correct
Question2
Marks: 1
Which of the following is not a feature that is driving social e-commerce growth?
Choose one answer.
a. social sign-on
b. network notification
c. collaborative shopping
d. intelligent agents
Correct
Question3
Marks: 1
Choose one answer.
b. flash marketing
c. yield management
d. bait-and-switch
Correct
Question4
Marks: 1
4
Marks: 1
Choose one answer.
a. 35 percent
b. 55 percent
c. 75 percent
d. 95 percent
Correct
Question5
Marks: 1
the Internet.
Choose one answer.
a. 27
b. 67
c. 77
d. 87
Correct
Question6
Marks: 1
Choose one answer.
a. brand extender
b. fast follower
c. first mover
d. alliance
Correct
7
Marks: 1
Choose one answer.
a. 18-29
b. 30-49
c. 50-64
d. 65+
Correct
Question8
Marks: 1
Which of the following is not a Web 2.0 marketing technique?
Choose one answer.
a. flash marketing
b. viral marketing (p n l A nh))
c. blog marketing
d. social network marketing
Incorrect
Question9
Marks: 1
Choose one answer.
d. interactivity
Correct
According to Interbrand's 2010 World's Most Valuable Brands survey, the most valuable brand in
the world is:
Choose one answer.
a. Microsoft.
b. IBM.
c. Google.
d. Coca-Cola.
Correct
1
Marks: 1
Choose one answer.
d. interactivity
Correct
Question2
Marks: 1
Choose one answer.
a. brand strategy.
b. brand marketing.
c. branding.
d. brand equity.
Correct
Question3
Marks: 1
A person's profession or occupation is part of their:
Choose one answer.
a. indirect reference group.
b. direct reference group.
c. lifestyle group.
d. subculture.
Correct
4
Marks: 1
Choose one answer.

c. shipping costs
Correct
Question5
Marks: 1
Choose one answer.
a. bundling.
b. versioning.
c. free pricing.
Correct
Question6
Marks: 1
________ is an industry-standard database query and manipulation language.
Choose one answer.
a. SQL
b. PHP
c. DBMS
d. JSP
Correct
7
Marks: 1
Choose one answer.

Correct
Question8
Marks: 1
Choose one answer.
a. brand extender
b. fast follower
c. first mover
d. alliance
Correct
Question9
Marks: 1
On average, which of the following activities was most frequently engaged in by Internet users in
2011?
Choose one answer.
a. checking the weather
b. sending instant messages
c. reading a blog
d. watching a video on a video-sharing site
Incorrect
Choose one answer.

d. Brands lower customer acquisition costs and increase customer retention.
Correct
1
Marks: 1
Choose one answer.
a. lifestyle group.
b. culture.
c. subculture.
Correct
Question3
Marks: 1
2011?
Choose one answer.
c. reading a blog
Correct
Question5
Marks: 1
Choose one answer.
c. lifestyle group.
d. subculture.
Correct
Question6
Marks: 1
Which of the following data cannot be gleaned from a Web site's transaction log?
Choose one answer.

a. the pages users visit most
b. the e-mail address of a visitor who is using a dial-up modem
c. the date and time of a user's visit
d. the operating system of the visitor's computer
Incorrect
Question7
Marks: 1
Which of the following age groups had the lowest percentage of Internet access in 2011?
Choose one answer.
a. 18-29
b. 30-49
c. 50-54
d. 65+
Correct
Question8
Marks: 1
Choose one answer.
a. using e-mail
d. reading news
Incorrect
Question9
Marks: 1
Choose one answer.
a. social class
b. family
c. religion
d. profession
Correct
Question10
Marks: 1
Which of the following statements is not true about the broadband audience?
Choose one answer.
a. It is clearly different than the dial-up audience.

b. It is more educated and wealthier than the dial-up audience.
c. It is less intensely involved with the Internet.
d. It is more middle-aged than the dial-up audience.
1
Marks: 1
the Internet.
Choose one answer.
a. 27
b. 67
c. 77
d. 87
Correct
Question2
Marks: 1
Choose one answer.
a. brand strategy.
b. brand marketing.
c. branding.
d. brand equity.
Correct
Question3
Marks: 1
All of the following are online communications that are used to support the evaluation of
alternatives stage of the consumer decision process except:
Choose one answer.
a. search engines.
b. online catalogs.
c. social networks.
d. targeted banner ads.
Correct
Question4
Marks: 1
Choose one answer.
Correct
Question5
Marks: 1
Choose one answer.
a. brand extender
b. fast follower
c. first mover
d. alliance
Correct
Question6
Marks: 1
Which of the following types of online market segmentation and targeting involves using age,
ethnicity, religion, etc.?
Choose one answer.
a. psychographic
b. demographic
c. technical
d. contextual
Correct
Question7
Marks: 1
Choose one answer.
Correct
Question8
Marks: 1
Choose one answer.

Correct
Question9
Marks: 1
Choose one answer.
Correct
Question10
Marks: 1
A ________ is a repository of customer information that records all of the contacts that a customer
has with a firm and generates a customer profile available to everyone in the firm with a need to
know the customer.
Choose one answer.
a. customer service chat system
b. CRM system
c. data warehouse
d. transactive content system
1
Marks: 1
the Internet.
Choose one answer.
a. 27
b. 67
c. 77
d. 87
Correct
Question3
Marks: 1
Which of the following types of online market segmentation and targeting involves using age,
Choose one answer.
a. psychographic
b. demographic
c. technical
d. contextual
Correct
Question4
Marks: 1
Choose one answer.
a. 18-29
b. 30-49
c. 50-54
d. 65+
Correct
Question5
Marks: 1
Choose one answer.
a. Rhapsody music streaming service reported that its no play rate had increased to
over 20 percent.
Correct
Question6
Marks: 1
Choose one answer.
a. online merchants can avoid direct price comparison by introducing information
asymmetries into the marketplace.
d. depending on the seller, there can be large differences in price sensitivity for the same
products.
Correct
Question7
Marks: 1
A (an) ________ profile describes an individual's set of needs, drives, motivations, perceptions
and learned behaviors.
Choose one answer.
a. psychographic
b. opinion
c. psychological
d. lifestyle
Correct
Question8
Marks: 1
Choose one answer.
Correct
Question9
Marks: 1
Choose one answer.
Correct
Question10
Marks: 1
Which of the following demographic groups had the greatest increase in Internet access between
2002 and 2011?
Choose one answer.
a. Black, non-Hispanic
b. Asians
c. White, non-Hispanic
d. Hispanic (English-speaking)
1
Marks: 1
Choose one answer.
a. first mover
c. fast follower
d. brand extender
Correct
Question2
Marks: 1
Choose one answer.
a. demand curve.
b. variable cost.
c. marginal cost.
d. fixed cost.
Incorrect
Question3
Marks: 1
Choose one answer.
Correct
Question4
Marks: 1
Choose one answer.
a. flash marketing
b. viral marketing
c. blog marketing
Correct
Question5
Marks: 1
Which of the following statements about a free pricing strategy is false?
Choose one answer.
a. Free products and services can knock out potential and actual competitors.
b. The free pricing strategy was born in the early days of the Web.
c. It is difficult to convert free customers into paying customers.

d. Free products and services can help build market awareness.
Correct
Question6
Marks: 1
Choose one answer.
a. lifestyle group.
b. culture.
c. subculture.
Correct
Question7
Marks: 1
Choose one answer.
a. brand strategy.
b. brand marketing.
c. branding.
d. brand equity.
Correct
Question8
Marks: 1
Choose one answer.
a. bundling.
b. versioning.
c. free pricing.
Correct
Question9
Marks: 1
Which of the following types of online market segmentation and targeting involves tracking the
actions users take on a Web site?
Choose one answer.
a. technical
b. behavioral
c. contextual
d. psychographic
Correct
1
Marks: 1
Choose one answer.
Correct
Question2
Marks: 1
Choose one answer.
a. bundling.
b. customization.
c. dynamic pricing.
d. versioning.
Correct
Question3
Marks: 1
Choose one answer.
c. both the core benefits and added benefits the customer receives from the product.
Correct
Question4
Marks: 1
Which of the following is not an example of a commodity?
Choose one answer.
a. oil
b. soap
c. corn
d. gold
Correct
Question5
Marks: 1
Choose one answer.
a. 18-29
b. 30-49
c. 50-64
d. 65+
Correct
Question6
Marks: 1
Choose one answer.
b. flash marketing
c. yield management
d. bait-and-switch
Correct
Question7
Marks: 1
Choose one answer.
c. lifestyle group.
d. subculture.
Correct
Question8
Marks: 1
Choose one answer.
a. Rhapsody music streaming service reported that its no play rate had increased to
over 20 percent.
Correct
Question9
Marks: 1
A Web beacon is:
Choose one answer.
Correct
Question10
Marks: 1
Choose one answer.
Correct
1
Marks: 1
Choose one answer.
b. unique price.
Correct
Question2
Marks: 1
Choose one answer.
c. shipping costs
Correct
Question3
Marks: 1
Choose one answer.
Correct
Question4
Marks: 1
Choose one answer.
a. 50
b. 500,000
c. 5 million
d. 50 million
Incorrect
Question5
Marks: 1
Which of the following statements is not true about the broadband audience?
Choose one answer.
a. It is clearly different than the dial-up audience.
b. It is more educated and wealthier than the dial-up audience.
c. It is less intensely involved with the Internet.
d. It is more middle-aged than the dial-up audience.
Correct
Question6
Marks: 1
Choose one answer.
a. 18-29
b. 30-49
c. 50-64
d. 65+
Correct
Question7
Marks: 1
Choose one answer.
Correct
Question8
Marks: 1
Choose one answer.
a. brand strategy.
b. brand marketing.
c. branding.
d. brand equity.
Correct
Question9
Marks: 1
All of the following statements about cookies are true except:
Choose one answer.
a. cookies can be used with Web bugs to create cross-site profiles of users.
b. the data typically stored in cookies includes a unique ID, e-mail address, path,
and security setting.
c. cookies make shopping carts possible by allowing a site to keep track of a
user's actions.
d. the location of a cookie on a user's computer depends on the browser being
used.
Incorrect
Question10
Marks: 1
Choose one answer.
a. first mover
c. fast follower
d. brand extender
1
Marks: 1
A Web beacon is:
Choose one answer.
Correct
Question2
Marks: 1
Choose one answer.
a. brand extender
b. fast follower
c. first mover
d. alliance
Correct
Question3
Marks: 1
"Shoppers" constitute approximately ________ percent of the online Internet audience.
Choose one answer.
a. 38
b. 68
c. 88
d. 98
Incorrect
Question4
Marks: 1
Choose one answer.
Correct
Question5
Marks: 1
Choose one answer.
b. unique price.
Correct
Question6
Marks: 1
Choose one answer.
b. flash marketing
c. yield management
d. bait-and-switch
Correct
Question7
Marks: 1
Choose one answer.
a. oil
b. soap
c. corn
d. gold
Correct
Question8
Marks: 1
Choose one answer.
a. 18-29
b. 30-49
c. 50-54
d. 65+
Correct

Question9
Marks: 1
Choose one answer.
a. first mover
c. fast follower
d. brand extender
Correct
Question10
Marks: 1
2011?
Choose one answer.
c. reading a blog
1
Marks: 1
Choose one answer.
c. shipping costs
Correct
Question2
Marks: 1
Choose one answer.
Correct
Question3
Marks: 1
2011?
Choose one answer.
c. reading a blog
Correct
Question4
Marks: 1
Which of the following types of online market segmentation and targeting involves using c?
onsumers' explicitly expressed interest to segment and target?
Choose one answer.
a. psychographic
b. technical
c. search
d. contextual
Incorrect
Question5
Marks: 1
Choose one answer.
products.
Correct
Question6
Marks: 1
Choose one answer.
b. unique price.
Correct
Question7
Marks: 1
Choose one answer.
a. oil
b. soap
c. corn
d. gold
Correct
Question8
Marks: 1
the Internet.
Choose one answer.
a. 27
b. 67
c. 77
d. 87
Correct
Question9
Marks: 1
Choose one answer.
user's actions.
used.
Incorrect
Question10
Marks: 1
Which of the following is not part of an augmented product's feature set?
Choose one answer.
a. installation
b. warranty
c. packaging
d. after-sale support
1
Marks: 1
Choose one answer.
a. 35 percent
b. 55 percent
c. 75 percent
d. 95 percent
Correct
Question2
Marks: 1
Which of the following statements about a free pricing strategy is false?
Choose one answer.
a. Free products and services can knock out potential and actual competitors.
b. The free pricing strategy was born in the early days of the Web.
c. It is difficult to convert free customers into paying customers.
d. Free products and services can help build market awareness.
Correct
Question3
Marks: 1
According to Interbrand's 2010 World's Most Valuable Brands survey, the most valuable brand in
the world is:
Choose one answer.
a. Microsoft.
b. IBM.
c. Google.
d. Coca-Cola.
Correct
Question4
Marks: 1
Choose one answer.
user's actions.
used.
Incorrect
Question5
Marks: 1
Choose one answer.
a. flash marketing
b. viral marketing
c. blog marketing
Correct
Question6
Marks: 1
Choose one answer.
c. both the core benefits and added benefits the customer receives from the product.
Correct
Question7
Marks: 1
Choose one answer.
a. psychographic
b. opinion
c. psychological
d. lifestyle
Correct
Question8
Marks: 1
Choose one answer.
c. lifestyle group.
d. subculture.
Correct
Question9
Marks: 1
Choose one answer.
Correct
Question10
Marks: 1
Choose one answer.
a. social sign-on
Correct
1
Marks: 1
Choose one answer.
c. lifestyle group.
d. subculture.
Correct
Question2
Marks: 1
Choose one answer.
products.
Correct
Question3
Marks: 1
Choose one answer.

Correct
Question4
Marks: 1
Choose one answer.
a. brand extender
b. fast follower
c. first mover
d. alliance
Correct
Question5
Marks: 1
Choose one answer.
a. search engines.
b. online catalogs.
c. social networks.
Correct
Question6
Marks: 1
Choose one answer.
a. social class
b. family
c. religion
d. profession
Correct
Question7
Marks: 1
Choose one answer.

Correct
Question8
Marks: 1
Which of the following types of online market segmentation and targeting involves using c?
onsumers' explicitly expressed interest to segment and target?
Choose one answer.
a. psychographic
b. technical
c. search
d. contextual
Incorrect
Question9
Marks: 1
Choose one answer.
a. 50
b. 500,000
c. 5 million
d. 50 million
Correct
Question10
Marks: 1
Choose one answer.
Correct
1
Marks: 1
Choose one answer.

user's actions.
used.
Correct
Question2
Marks: 1
Choose one answer.
c. shipping costs
Correct
Question3
Marks: 1
Choose one answer.
Correct
Question4
Marks: 1
Choose one answer.
Correct
Question5
Marks: 1
Choose one answer.

a. lifestyle group.
b. culture.
c. subculture.
Correct
Question6
Marks: 1
Choose one answer.
c. lifestyle group.
d. subculture.
Correct
Question7
Marks: 1
Choose one answer.
a. installation
b. warranty
c. packaging
Correct
Question8
Marks: 1
Choose one answer.
a. using e-mail
d. reading news
Correct
Question9
Marks: 1
Choose one answer.
a. technical
b. behavioral
c. contextual
d. psychographic
Correct
Question10
Marks: 1
Choose one answer.
a. brand strategy.
b. brand marketing.
c. branding.
d. brand equity.
Correct
1
Marks: 1
Choose one answer.
d. interactivity
Correct
Question2
Marks: 1
Which of the following features of e-commerce technology has reduced the cost of delivering
marketing messages and receiving feedback from users?
Choose one answer.
a. ubiquity
b. richness
c. interactivity
d. universal standards
Correct
Question3
Marks: 1
Choose one answer.

a. installation
b. warranty
c. packaging
Correct
Question4
Marks: 1
Choose one answer.
a. bundling.
b. customization.
c. dynamic pricing.
d. versioning.
Correct
Question5
Marks: 1
________ is an industry-standard database query and manipulation language.
Choose one answer.
a. SQL
b. PHP
c. DBMS
d. JSP
Correct
Question6
Marks: 1
Choose one answer.
products.
Correct
Question7
Marks: 1
Choose one answer.

a. 18-29
b. 30-49
c. 50-64
d. 65+
Correct
Question8
Marks: 1
Choose one answer.
a. using e-mail
d. reading news
Correct
Question9
Marks: 1
Choose one answer.
Correct
Question10
Marks: 1
Choose one answer.
a. brand extender
b. fast follower
c. first mover
d. alliance
1
Marks: 1
Choose one answer.
a. brand strategy.
b. brand marketing.
c. branding.
d. brand equity.
Correct
Question2
Marks: 1
Choose one answer.
c. shipping costs
Correct
Question3
Marks: 1
Choose one answer.
a. social sign-on
Correct
Question4
Marks: 1
Choose one answer.
a. installation
b. warranty
c. packaging
Correct
Question5
Marks: 1
Choose one answer.
a. search engines.
b. online catalogs.
c. social networks.
Correct
Question6
Marks: 1
Choose one answer.
a. psychographic
b. opinion
c. psychological
d. lifestyle
Correct
Question7
Marks: 1
Choose one answer.
Correct
Question8
Marks: 1
Choose one answer.
a. demand curve.
b. variable cost.
c. marginal cost.
d. fixed cost.
Correct
Question9
Marks: 1
2011?
Choose one answer.

c. reading a blog
Correct
Question10
Marks: 1
Choose one answer.
a. technical
b. behavioral
c. contextual
d. psychographic
Correct
Which of the following is an example of "pull" advertising?

search engine ads
Which of the following is not one of the current

trends in Internet advertising?
Spending on search engine advertising is overtaken
by video ads
Which of the following advertising messages is a

branding communication?
Barnesandnoble.com: The Best Place to Buy
Textbooks
The amount spent on online advertising in 2012

was approximately:
$37.3 billion
Which of the following is not one of the

advantages of online advertising?
Online costs versus benefits are well established
and understood
Which of the following online advertising formats

is the most effective?
video ads
Which of the following online advertising formats

attracted the least amount of spending in 2012?
e-mail
Which of the following forms of online

advertising is growing the fastest?
video
The size of a leaderboard is:

728 x 90 pixels
If you want to determine the size of your Web

site's audience, the metric you will use for the
most accurate measurement will be:
unique visitors
Which of the following types of display ads is 160

x 600 pixels?
wide skyscraper
All of the following statements about interstitials

are true except:
Interstitials typically last 30 seconds
Which of the following is not one of the four main

methods advertisers use to behaviorally target
ads?
Nielsen ratings
Search engine advertising expenditures in 2012

were approximately:
$1.7 million
Which of the following is not true about search

engine advertising?
Search engine advertising is the fastest growing
type of online advertising
Research studies have shown that viewers scan

search engine results pages:
in an "F" shaped pattern with greater attention to
the left side of the page
Which of the following is not a practice that

degrades the results and usefulness of search
engines?
social search
A Crayola arts-and-crafts column on a parenting

Web site is an example of what form of
advertising?
sponsorship
A typical response rate for an e-mail campaign

would be ________ percent.
5
Legitimate e-mail addresses based on a highquality commercial opt-in e-mail list might cost
________ per thousand.
$5 to $10
The percentage of all e-mail that is spam was

approximately ________ percent in 2012.
70
All of the following statements about CAN-SPAM

are true except:
CAN-SPAM prohibits unsolicited e-mail (spam)
CAN-SPAM imposes fines of ________ for each

unsolicited pornographic e-mail.
$10
Direct e-mail marketing refers to marketing emails sent to:

recipients who have expressed an interest in
receiving messages from that advertiser
Promoted Trends is an example of which of the

following types of online advertising?
social network advertising
Which of the following generated the most social

advertising revenues in 2012?
Facebook
Axe's posting of video ads online that were

subsequently forwarded and shared by millions
of Internet users is an example of:
viral marketing
Impressions are a measure of the:

number of times an ad is served
View-through rate measures the ________

response rate to an ad.
30-day
Hits are a measure of the:

number of http requests
CTR is a measure of the:

percentage of times an ad is clicked
Which of the following measures the average

length of stay at a Web site?
stickiness
Acquisition rate is a measure of the:

percentage of visitors who indicate an interest in a
site's products by registering or visiting a product's
pages
Recency refers to the:

time elapsed since the last action taken by a
customer
Conversion rate is a measure of the:

percentage of visitors who become customers
Which of the following measures the ratio of

items purchased to product views?
browse-to-buy ratio
Which of the following measures the ratio of

actual orders to checkouts started?
checkout conversion rate
In ________ advertising, companies pay for ads

to be placed dynamically on any participating
Web site that the search engine determines is
appropriate.
network keyword
Typical click-through rates for an online display

ad are:
.03%-.30%
The typical dwell rate for rich media and video

ads is:
7%-8%
Purchasing an online ad on a CPA basis means

that the advertiser:
pays only for those users who perform a specific
action, such as registering, purchasing, etc.
Purchasing an online ad on a CPC basis means

pays a prenegotiated fee for each click an ad
receives
A typical banner ad might cost ________ per

1,000 impressions.
$5
The most expensive form of online advertising on

a per thousand viewer basis is a(n):
exclusive sponsorship arrangement
All of the following are true statements about the

choice of a domain name except:
Having a dot-com domain is no longer considered
preferable, especially in the United States
According to the Fogg et al. 2003 study, which of

the following is the most important factor in the
credibility of a Web site?
design look
Amazon's "one-click" purchase capability is an

example of using ________ to enhance sales.
Web site functionality
Frequency of Web site use is a function of four

independent variables: Web site organization,
perceived ease of use, perceived usefulness of the
Web site, and:
content quality
Which of the following is not a major Web design

feature that impacts online purchasing?
redundant navigation
On a typical day, approximately ________

percent of adult users in the United States logs on
to the Internet.
82
Which of the following activities is the one

engaged in by the highest percentage of online
users?
using e-mail
On average, which of the following activities was

most frequently engaged in by Internet users in
2012?
checking the weather
The dial-up audience is ________ the

broadband audience.
less intensely involved with the Internet than
Which of the following age groups has the highest

percentage of Internet access?
18-29
Which of the following demographic groups had

the greatest increase in Internet access between
2002 and 2012?
Black, non-hispanic
Which of the following age groups had the lowest

percentage of Internet access in 2012?
65+
In 2012, what was the approximate Internet

penetration rate for individuals that have
attained less than a high-school education?
60 percent
Toyota's use of the Internet to target Hispanic

customers is an example of targeting a specific:
subculture
A person's profession or occupation is part of

their:
direct reference group
Which of the following is an example of an

indirect reference group?
social class
A(n) ________ profile describes an individual's

set of needs, drives, motivations, perceptions and
learned behaviors.
psychological
All of the following are online communications

that are used to support the evaluation of
alternatives stage of the consumer decision
process except:
targeted banner ads
"Shoppers" constitute approximately ________

percent of the online Internet audience.
88
Small ticket item sales outnumbered large ticket

item sales during the early days of e-commerce
margins were low
Which of the following is the top concern of

Internet users about purchasing online?
inability to see and touch before buying
Studies of the effects of social "connectedness" on

Internet purchases indicate that the more
"connected" an individual:
the less that individual is influenced by friends'
purchases.
The broadest factor in consumer behavior is:

culture
In modeling online consumer behavior,

consumer skills refers to the:
knowledge consumers have about how to conduct
online transactions
All of the following are important clickstream

behavior factors except:
the number of advertisements viewed
Approximately ________ in annual offline

retail sales is influenced by online browsing.
$1.2 trillion
Which of the following types of online market

segmentation and targeting involves using age,
demographic

segmentation and targeting involves using
consumers' explicitly expressed interest to
segment and target?
search

segmentation and targeting involves tracking the
behavioral
Which of the following is not one of the main

elements of a comprehensive multi-channel
marketing plan?
local marketing

Relative dispersion of prices for online goods has
decreased
Which of the following statements about the

Internet's impact on marketing is not true?
The Internet has decreased the impact of brands
Which of the following features of e-commerce

technology has reduced the cost of delivering
marketing messages and receiving feedback from
users?
universal standards
Which of the following features of e-commerce

technology allows fine-grained, highly detailed
information on consumers' real-time behavior to
be gathered and analyzed?
information density
The richness made possible by e-commerce

technologies does which of the following?
It allows video, audio, and text to be integrated into
a single marketing message and consuming
experience.
For a Web site that has 5 million visitors a

month, and where on average, a visitor makes 10
page requests per visit, there will be ________

entries in the transaction log each month.
50 million
All of the following statements about cookies are

true except:
The data typically stored in cookies includes a
unique ID and e-mail address
A Web beacon is:

a tiny graphics file embedded in an e-mail or Web
page.
________ is an industry-standard database

query and manipulation language.
SQL
All of the following are traditional online

marketing tools except:
social marketing
Which of the following examples illustrates the

"Long Tail" phenomenon?
Over 50 percent of Netflix's 100,000 titles are
rented at least once a day by someone.
A ________ is a repository of customer

information that records all of the contacts that a
customer has with a firm and generates a
customer profile available to everyone in the firm
with a need to know the customer.
CRM system
Netflix entered the market with a(n) ________

strategy.
first mover
Walmart used which of the following market

entry strategies?
brand extender
The marketing technique known as ________

involves merchants offering products or services
for a very low price for a short period of time.
flash marketing
Which of the following is not a kind of Twitter

marketing product?
Promoted shopping
Which of the following is not a feature that is

driving social e-commerce growth?
personal intelligent agents
Permission marketing:
is a component of e-mail marketing.
All of the following are attributes of personalized

marketing except:
use of mass media
The Nike iD program is an example of which of

the following marketing techniques?
customer co-production
The incremental cost of building the next unit of

a good is called the:
marginal cost
Which of the following statements about a free

pricing strategy is false?
The free pricing strategy was born in the early days
of the Web
Creating multiple variations of information goods

and selling these to different market segments at
versioning
All of the following are fixed price strategies

except:
yield management
T/F In the United States today, single, white, young college-educated
males with high income dominate the internet in terms of percentage
of internet usage
False
T/F Research has found that of all the standard

formats of display ads, wide skyscraper ads are
the most effective at holding a user's attention
False
T/F Price is more important than convenience as

a factor in online purchase decisions
False
T/F E-commerce is a major conduit and

generator of offline commerce
True
T/F Online shoppers tend to browse for available

products rather than search for specific products
they have determined in advance
False
T/F Research shows that the two most important

factors shaping the decision to purchase online
are utility and trust
True
T/F In 2013, mobile marketing grew at nearly the

same rate as traditional online marketing
False
T/F Evidence suggests that real-time customer

chat increases sales
True
T/F Transaction logs are built into Web server

software
True
T/F Cookies, when combined with Web beacons,

can be used to create cross-site profiles
True
T/F An interstitial ad is typically contained in a

pop-up window that the user must close in order
to continue
False
T/F The digital divide still persists along age,

income, ethnic, and education dimensions
True
T/F The cost of sending 10,000 e-mails in an

advertising campaign is about the same as
sending 5,000
True
T/F The concept of "customer satisfaction" is

broader than the concept of "customer
experience"
False
T/F Bundling is the process of selling two or

more products together for a price that is less
than the sum of the two product's individual
prices
True
On a typical day, approximately ___% of adult

users in the United States log on to the internet
80
What online advertising format is the most

effective?
video ads
Which online advertising format attracted the

least amount of spending in 2013?
e-mail
What would you implement to collect and analyze

your company's big data?
Hadoop

stages of the online purchasing process?
A) post-purchase service and loyalty
B) awareness
C) interaction
D) browsing
D
What form of online advertising is growing the

fastest?
video
If you want to determine the size of your web

site's audience, the metric you will use for the
most accurate measurement will be:
unique visitors
In 2013, what was the approximate internet

penetration rate for individuals that have
attained less than a high-school education?
60%
Which of the following is not one of the four main

methods advertisers use to behaviorally target
ads?
A) Nielson ratings
B) data collected from social networks
C) integration of offline data
D) clickstream data
A
Search engine advertising and marketing

expenditures in 2013 were approximately:
$19.5 billion
Which of the following is not true about search

engine advertising?
A) Spending on search engine advertising
constitutes almost half of all online advertising
spending
B) The top three search engine providers supply
over 95% of all online searches
C) The click-through rate for search engine
marketing has been fairly steady over the years
D) Search engine advertising is the fastest
growing type of online advertising
D
Which of the following is not a practice that

degrades the results and usefulness of search
engines?
A) social search
B) link farms
C) content farms
D) click fraud
A
All of the following are online communications

that are used to support the evaluation of
alternatives stage of the consumer decision
process except:
A) search engines
B) online catalogs
C) social networks
D) targeted banner ads
D
"Shoppers" constitute approximately ___% of

the online internet audience
90
A Crayola arts-and-crafts column on a parenting

web site is an example of what form of
advertising?
sponsorship
What is the top concern of internet users about

purchasing online?
lack of trust in the purchase process
Studies of the effects of social "connectedness" on

internet purchases indicate that the more
"connected" an individual:
the less that individual is influenced by friends'
purchases
A typical response rate for an e-mail campaign

would be ___%
5
In modeling online consumer behavior, the

concept of "consumer skills" refers to the:
knowledge consumers have about how to conduct
online transactions
Which of the following statements about CANSPAM is not true?

A) CAN-SPAM went into effect in January 2004
B) CAN-SPAM prohibits unsolicited e-mail
(spam)
C) CAN-SPAM prohibits the use of deceptive
subject lines and false headers
D) Large spammers are among CAN-SPAM's
biggest supporters
B
___ of annual offline retail sales is influenced by

online browsing
one-third
What is the most important tool in establishing a

relationship with the customer?
company web site
Impressions are a measure of the:

number of times an ad is served
View-through rate measures the ___ response

rate to an ad
30-day

elements of a comprehensive multi-channel
marketing plan?
A) local marketing
B) offline marketing
C) social marketing
D) mobile marketing
A
Hits are a measure of the:

number of http requests
Which of the following statements about the

internet's impact on marketing is not true?
The internet has decreased the impact of brands
What feature of e-commerce technology has

reduced the cost of delivering marketing
messages and receiving feedback from users?
universal standards
What feature of e-commerce technology allows

fine-grained, highly detailed information on
consumers' real-time behavior to be gathered and
analyzed?
information density
The richness made possible by e-commerce

technologies does what?
It allows video, audio, and text to be integrated into
a single marketing message and consuming
experience
For a web site that has 5 million visitors a month,

and where on average, a visitor makes 10 page
requests per visit, there will be ___ entries in the
transaction log each month
50 million
Purchasing an online ad on a CPA basis means

pays only for those users who perform a specific
action, such as registering, purchasing, etc.
All of the following statements about cookies are

true except:
A) cookies can be used with web bugs to create
cross-site profiles of users
B) the data typically stored in cookies includes a
unique ID and e-mail address
C) cookies make shopping carts possible by
allowing a site to keep track of a user's actions
D) the more cookies are deleted, the less accurate
and server metrics become
B
A web beacon is:

a tiny graphics file embedded in an e-mail or web
page
___ is an industry-standard database query and

manipulation language
SQL
All of following are traditional online marketing

tools except:
A) affiliate marketing
B) e-mail and permission marketing
C) social marketing
D) sponsorship marketing
C
Which of the following examples illustrates the

"Long Tail" phenomenon?
A) Rhapsody music streaming service reported
that its no play rate had increased to over 20%
B) The number of blockbuster "winner take all"
video titles is declining
C) Over 50% of Netflix's 100,000 titles are rented
at least once a day by someone
D) The average blog has a readership of slightly
more than 1
C
A ___ is a repository of customer information

that records all of the contacts that a customer
has with a firm and generates a customer profile
available to everyone in the firm with a need to
know the customer
CRM system
What measures the average length of stay at a

web site?
stickiness
Acquisition rate is a measure of the:

percentage of visitors who indicate an interest in a
page
The marketing technique known as ___ involves

merchants offering products or services for a very
low price for a short period of time
flash marketing
The systems development life cycle methodology is
useful when creating an e-commerce Web site.
TRUE
One of the most important challenges in developing

an e-commerce presence is understanding that the
technology must drive the business.
FALSE
Using prebuilt templates is typically one of the most

cost-effective choices when building a Web site.
TRUE
The annual maintenance cost for a Web site is likely

to be as high as its development cost.
TRUE
In a two-tier architecture, a Web server is linked to

one middle-tier layer that typically includes a series of
application servers, as well as to another back-end
layer.
FALSE
Apache Web server software is based on Microsoft's

Windows operating system.
FALSE
The Web server software used does not significantly

impact how a Web site's Web pages look on users'
computers.
TRUE
Prior to the development of e-commerce, Web sites

primarily delivered static content.
TRUE
Dynamic page generation makes market

segmentation easier.
TRUE
A list server is an application server used to provide a

database for product descriptions and prices.
FALSE
Upgrading a server from a single processor to

multiple processors is an example of scaling a site
horizontally.
FALSE
Storing HTML pages in RAM rather than on a server's

hard drive is an inexpensive way to fine-tune the
processing architecture of a Web site.
TRUE
A "native" app is one designed to specifically operate

using a mobile device's hardware and operating
system.
TRUE
Accessibility rules help to ensure that low-bandwidth

users can access your Web site.
FALSE
Mobile Web apps are typically built using HTML5 and

Java.
TRUE
What are the two most important management

challenges in building a successful e-commerce
presence?
Developing a clear understanding of business objectives
and knowing how to choose the right technology to
achieve those objectives
In order from beginning to end, the major steps in the

SDLC, are:
Systems analysis/planning; systems design; building
the system; testing; and implementation.
________ are the types of information systems

capabilities needed to meet business objectives.
System functionalities
Which of the following basic system functionalities is

used to display goods on a Web site?
digital catalog

Which system functionality must your Web site have
in order to be able to personalize or customize a
product for a client?
customer on-site tracking
A system design has two main components:

a logical design and a physical design.
Which of the following helps you understand the

marketing effectiveness of your e-commerce site?
site tracking and reporting system
Which of the following is not one of the basic business

objectives for an e-commerce site?
optimize system architecture
All of the following are basic information

requirements for a product database except:
customer ID numbers.
Which of the following typically includes a data flow

diagram to describe the flow of information for an ecommerce site?
logical design
Which of the following details the actual hardware

components to be used in a system?
physical design
________ verifies that the business objectives of the

system as originally conceived are in fact working.
Acceptance testing
The leading Web server software is:

Apache.
All of the following are basic functionality provided by

Web servers except:
a shopping cart.
Which of the following is used to process certificates

and private/public key information?
SSL
Which of the following would you use to identify

orphan files?
site management tools
Which of the following is an example of a CMS?

WordPress
Advantages of dynamic page generation include all of

the following except:
client-side execution of programming.
Which of the following cannot be used to retrieve

objects from a database?
HTML

Which of the following types of servers monitors and
controls access to a main Web server and implements
firewall protection?
proxy server
Which of the following technologies could you use to

place the content of your Web site in a database so
that you can then dynamically generate requests for
pages?
CMS
Which of the following is not a type of application

server?
FTP server

e-commerce merchant server software except:
marketing software.
Which of the following is not one of the main factors

in Web site optimization?
page stickiness
An e-commerce Web site that processes orders

requires, at minimum, a ________ system
architecture.
two-tier
All of the following are Web site design features that

annoy customers except:
redundant navigation.

Which of the following is not an open source software
tool?
WebSphere
The term stateless refers to the fact that:

the server does not have to maintain an ongoing
dedicated interaction with the client computer.
The structure of a market is described in terms of all

of the following except:
customers.
Which of the following types of sites typically tends to

have high to very high page views (hits)?
publishing/subscription
Which of the following types of sites typically needs a

high percentage of secure pages?
trading
Which of the following is not a main factor in

determining overall demand for an e-commerce site?
static file sizes
The cost of hardware, software, and

telecommunications services needed to build a Web
site have ________ over the last decade.
decreased dramatically
Which of the following is the final stage suggested for

a six-phase plan to develop an e-commerce presence?
mobile plan
Which of the following is not an example of one of the

four kinds of e-commerce presence?
customer management system
All of the following are steps one can take to right-size

a Web site's hardware platform and meet demands for
service except:
replacing static pages with dynamically generated
pages.
All of the following are methods of improving the

processing architecture of a Web site except:
adding Web servers.
Which of the following is the least expensive path to

creating a mobile Internet presence?
resizing an existing Web site for mobile use
All of the following are important factors in Web site

optimization except:
adhering to accessibility guidelines.
________ provides a set of standards for

communicating between a browser and a program
running on a server that allows for interaction
between the user and server.
CGI
________ is a programming language invented by

Netscape used to control the objects on an HTML
page and handle interactions with the browser.
JavaScript
The primary way a Web site is able to personalize the

content presented to a visitor is through the use of:
cookies.
Which of the following is an example of dynamic

content?
blog posts
All of the following are factors in contributing to the

increase in cybercrime except:
the Internet's similarity to telephone networks
The Computer Security Institute reported in its 2011

survey that approximately _____ percent of
responding organizations experienced a computer
security incident within the previous 12 months.
45
The overall rate of online credit card fraud is ____

percent of all online card transactions.
less than 1
According to the Computer Security Institute's 2011

Computer Crime and Security Survey, which of the
following was the most commonly reported type of
attack?
malware infection
The six key dimensions to e-commerce security are

nonrepudiation, authenticity, availability, integrity,
privacy, and:
confidentiality
_____ refers to the ability to ensure that e-commerce

participants do not deny their online actions.
Nonrepudiation
_____ refers to the ability to identify the person or

entity with whom you are dealing on the Internet.
Authenticity
Which of the following is an example of an integrity

violation of e-commerce security?
An unauthorized person intercepts an online
communication and changes its contents
_____ refers to the ability to ensure that an ecommerce site continues to function as intended.
Availability
An example of a privacy violation of e-commerce

security is:
you online purchasing history being sold to other
merchants without your consent
_____ refers to the ability to ensure that messages

and data are only available to those authorized to view
them.
Confidentiality
Which of the following is not a key point of

vulnerability when dealing with e-commerce?
the credit card companies
All of the following were computer crimes committed

in 2011-2012 except:
Melissa worm spreads through Microsoft Word
templates
Which of the following is a prominent hacktivist

group?
Anonymous
Most of the world's spam is delivered via which of the

following?
botnets
Botnets are typically used for all of the following

except:
phishing attacks
Software that is used to obtain private user

information such as a user's keystrokes or copies of email is referred to as:
spyware
The Conficker worm targeted:

Microsoft operating systems
Netsky.P, which spreads by sending emails from an

infected computer to all of the e-mail addresses found
on that infected computer, is an example of:
worm/Trojan horse
What is the most frequent cause of stolen credit cards

and card information today?
the hacking and looting of corporate servers storing
credit card information
Which dimension(s) of security is spoofing a threat

to?
integrity and authenticity
All of the following are examples of malicious code

except:
sniffers
Symmetric key encryption is also known as:

secret key encryption
All of the following statements about symmetric key

encryption are true except:
symmetric key encryption is computationally slower
The Data Encryption Standard uses a(n) _____-bit

key.
56
All of the following statements about public key

public key encryption ensures authentication of the

sender
All of the following statements about PKI are true

except:
PKI guarantees that the verifying computer of the
merchant is secure
A digital certificate contains all of the following except

the:
subject's private key
Which of the following dimensions of e-commerce

security is not provided for by encryption?
availability
All of the following are methods of securing channels

of communication except:
FTP
A _____ is a hardware or software that acts as a filter

to prevent unwanted packets from entering a network.
firewall
Proxy servers are also known as:

dual home systems
All of the following are used for authentication except:

packet filters
What is the first step in developing an e-commerce

security plan?
perform a risk assessment
What is the last step in developing an e-commerce

security plan?
Perform a security audit
Which of the following is not an example of an access

control?
digital signatures
Which of the following is the primary federal statute

used to combat computer crime?
Computer Fraud and Abuse Act
To allow lower-level employees access to the

corporate network while preventing them from
accessing private human resources documents, you
would use:
an authorization management system
All of the following are features of cash except:

it provides float
All of the following are stakeholders in payment

systems except:
ISPs
PSP payment systems are a variation on what type of

payment system?
stored value payment system
All of the following statements about debit cards are

true except:
Debit cards enable consumers to make purchases even if
they do not have sufficient funds at the time of purchase
All of the following are examples of stored value

payment systems except:
credit cards
None of the following payment systems offers

immediate monetary value except:
stored value/debit card
Malware that comes with a downloaded file that a

user requests is called a:
drive-by download
Which of the following is not an example of a PUP?

drive-by download
All of the following are limitations of the existing

credit card payment system except:
cost to consumers
Linden Dollars, created for use in Second Life, are an

example of:
virtual currency
Which of the following is a set of short-range wireless

technologies used to share information among devices
within about 2 inches of each other?
NFC
The easiest and least expensive way to prevent threats to system

integrity is to install anti-virus software (T/F)
True
Digital cash is legal tender that is instantly convertible

into other forms of value without the intermediation
of any third parties
False
Phishing attacks rely on browser parasites

False
The U.S. federal government has historically not been

in favor of the development and export of strong
encryption systems.
True
In order to accept payments by credit card, online

merchants typically must have a merchant account
established with a bank or financial institution
True
________ refers to the ability to ensure that

messages and data are only available to those
authorized to view them
Confidentiality
All of the following statements about public key

. public key encryption uses two mathematically
related digital keys.
. public key encryption ensures authentication of the
sender.
. public key encryption does not ensure message
integrity.
. public key encryption is based on the idea of
irreversible mathematical functions.
public key encryption does not ensure message
integrity.
Which of the following countries has been found to

have engaged in cyberespionage against Google?
China
An intrusion detection system can perform all of the

following functions except:
Blocking suspicious activity

. adware
. browser parasite
. drive-by download
. spyware
Drive-by download
Which of the following did Dropbox implement after a

series of security snafus in 2011 and 2012?
a. firewall
b. SSL/TLS
c. two-factor authentication
d. anti-virus software
Two-Factor Authentication

Proxy servers are also known as
Dual-home Systems
Online bill payments are believed to cost ________

to process compared to ________ for paper bills.
20 to 30 cents, $3 to $7
All the following statements about symmetric key

. in symmetric key encryption, both the sender and
the receiver use the same key to encrypt and decrypt a
message.
. the Data Encryption Standard is a symmetric key
encryption system.
. symmetric key encryption is computationally slower.
. symmetric key encryption is a key element in digital
envelopes.
symmetric key encryption is computationally slower.
P2P payment systems are a variation on what type of

payment system?
Which of the following is not an example of an access

control?
. firewalls
. proxy servers
. digital signatures
. login passwords
Digital signatures
None of the following payment systems offers

immediate monetary value except:
A) personal checks.
B) credit cards.
C) stored value/debit card.
D) accumulating balance.
stored value/debit card.
Reventon is an example of:

Ransomware
Which of the following dimensions of e-commerce

security is not provided for by encryption?
. confidentiality
. availability
. message integrity
. nonrepudiation
Availability
Spoofing involves attempting to hide a true identity by

using someone else's e-mail or IP address
True
TLS does not guarantee server-side authentication

False
A worm does not need to be activated by a user in

order for it to replicate itself
True
Smishing attacks exploit SMS messages

True
Rustock is an example of which of the following?
Botnet
An example of a privacy violation of e-commerce

security is:
your online purchasing history being sold to other
merchants without your consent.
Which of the following is an example of an integrity

violation of e-commerce security?
A) A Web site is not actually operated by the entity the
customer believes it to be.
B) A merchant uses customer information in a
manner not intended by the customer.
C) A customer denies that he or she is the person who
placed the order.
D) An unauthorized person intercepts an online
communication and changes its contents.
. An unauthorized person intercepts an online
communication and changes its contents.
Which of the following is the current standard used to

protect Wi-Fi networks?
WPA2
The overall rate of online credit card fraud is

________ % of all online card transactions.
Less than 1%
All of the following are limitations of the existing

online credit card payment system except:
. poor security.
. cost to consumers.
. cost to merchant.
. social equity.
Cost to consumers

A digital certificate contains all of the following except
the:
. subject's private key.
. subject's public key.
. digital signature of the certification authority.
. digital certificate serial number.
Subject's private key
Which of the following is a set of short-range wireless

technologies used to share information among devices
within about 2 inches of each other?
NFC
All of the following statements about PKI are true

except
. The term PKI refers to the certification authorities
and digital certificate procedures that are accepted by
all parties.
. PKI is not effective against insiders who have a
legitimate access to corporate systems including
customer information.
. PKI guarantees that the verifying computer of the
merchant is secure.
. The acronym PKI stands for public key
infrastructure.
. PKI guarantees that the verifying computer of the
merchant is secure.

increase in cybercrime except:
. the ability to remotely access the Internet.
. the Internet's similarity to telephone networks.
. the ability to anonymously access the Internet.
. the Internet is an open, vulnerable design.
The Internet's similarity to telephone networks
Linden Dollars, created for use in Second Life, are an

example of:
Virtual Currency
. Insiders present a greater security threat to ecommerce sites than outsiders

True
. Most of the world's spam is delivered via which of

the following?
Botnets
The research firm Cybersource estimated that online

credit card fraud in the United States amounted to
about ________ in 2012.
$3.5 Billion
The Data Encryption Standard uses a(n) _____ bit

key.
56

Secret Key Encryption
Which dimension(s) of security is spoofing a threat

to?
Integrity and Authenticity
Software that is used to obtain private user

information such as a user's keystrokes or copies of email is referred to as:
Spyware
All of the following are methods of securing channels

of communication except:
A) SSL.
B) S-HTTP.
C) VPN.
D) FTP.
FTP
Prior to the development of e-commerce, Web sites

primarily delivered static content. T/F
True
Upgrading a server from a single processor to

multiple processors is an example of scaling a site
horizontally. T/F
True
Mobile Web apps are typically built using HTML5 and

Java.
True
Apache Web server software is based on Microsoft's

Windows operating system.
False

True
4 kinds of e-commerce presence
Web sites
e-mail
social media
offline media
Which of the following typically includes a data flow

diagram to describe the flow of information for an ecommerce site?
. physical design
. logical design
. testing plan
. co-location plan
Logical design

a logical design and a physical design

Web servers except:
A) a product catalog.
B) marketing software
C) a shopping cart.
D) credit card processing.
A shopping cart
All of the following are simple steps for optimizing

Web page content that can reduce response times
except:
reducing unnecessary HTML comments.
Using more efficient graphics.
Avoiding unnecessary links to other pages on the site.
Segmenting computer servers to perform dedicated
functions.
- segmenting computer servers to perform dedicated
functions
Offline media is typically used for all of the following

marketing activities except:
education.exposure.conversation.branding
conversation
All of the following are methods of improving the

processing architecture of a Web site except:
a) separating static content from dynamic content
b) optimizing ASP code
c) optimizing database schema
d) adding web servers
Adding web servers
Which of the following technologies could you use to

place the content of your Web site in a database so
that you can then dynamically generate requests for
pages?
-Apache web server
-proxy server
-shopping cart
-CMS
CMS
Which of the following is not a main factor in

determining overall demand for an e-commerce site?
-static file sizes
-number of items in inventory
-user profiles
-type of content
Static File Size
________ verifies that the business objectives of the

system as originally conceived are in fact working.
Acceptance testing

SDLC, are:
systems analysis/planning;
systems design;
building the system;
testing;
implementation.

Wordpress

challenges in building a successful e-commerce
presence?
-developing a clear understanding of business objectives
-knowing how to choose the right technology to achieve
those objectives
Which of the following details the actual hardware

components to be used in a system?
Physical Design
One of the most important challenges in developing

an e-commerce presence is understanding that the
technology must drive the business. T/F
False
The systems development life cycle methodology is

useful when creating an e-commerce Web site.
True
Storing HTML pages in RAM rather than on a server's

hard drive is an inexpensive way to fine-tune the
processing architecture of a Web site. T/F
True
All of the following are basic information

requirements for a product database except:
.product descriptions
.stock numbers
.customer ID numbers
.inventory levels
Customer ID number
Which of the following is the least expensive path to

creating a mobile Internet presence?
Resizing a website for mobile use

the server does not have to maintain an ongoing
dedicated interaction with the client computer.
Most of the time required to maintain an e-commerce

site is spent on:
general administration and making changes and
enhancements to the system.
The cost of hardware, software, and

telecommunications services needed to build a Web
site have ________ over the last decade.
Decreased drastically
Advantages of dynamic page generation include all of

the following except:
a) lowered menu costs
b)market segmentation
c) nearly cost-free price discrimination
d) client-side execution of programming
Client-side execution of programming
Which of the following is used to process certificates

and private/public key information?
A) HTTP
B) SSL
C) FTP
D) data capture tools
SSL
An e-commerce Web site that processes orders

requires, at minimum, a ________ system
architecture.
Two-tier
The leading Web server software is

Apache
All of the following are important factors in Web site

optimization except:
.selecting keywords and page titles
.identifying market niches for your services or
products
.buying search engine ads
.adhering to accessibility guidelines.
Adhering to accessibility guidelines

cost-effective choices when building a Web
True
The Web server software used does not significantly

impact how a Web site's Web pages look on users':
True

________ involves testing a site program's modules
one at a time.
Unit testing
All of the following might be part of a Web site's

middle-tier layer except:
.a database server
.an ad server
.legacy corporate applications
.a mail server.
Legacy corporate applications
The structure of a market is described in terms of:

Direct competition, suppliers and substitute products
Which system functionality must your Web site have

in order to be able to personalize or customize a
product for a client?
an ad server
a site tracking and reporting system
an inventory management system
The primary way a Web site is able to personalize the

content presented to a visitor is through the use of:
Cookies nom

marketing effectiveness of your e-commerce site?
shopping cart
product database
site tracking and reporting system
inventory management system
Site tracking and reporting system
Database
Organized collection of logically related data;
self-describing collection of integrated tables
File
Group of records of same type
Record
Group of related fields
Field
Group of characters as word(s) or umber
Hierarchy in Database
Field, Record, File, Database
Data
Stored representations of meaningful objects and events
Structured Data
Numbers, text, dates
Unstructured Data
Images, video, documents
Information
Data processed to increase knowledge in the person
using the data
Metadata
descriptions of the properties or characteristics of the
data, including data types, field sizes, allowable values
and data context (limit of what data can be..gpa can be
0-4 and 3 number places)
Context
Helps us understand the data
Problems with traditional file environment

(maintained separately by different departments)
Data redundancy
Data inconsistency
Program-data dependence (change program requires
change in data)
Lack of flexibility
Poor security
Lack of data sharing and availability
Database Management System (DBMS)

Interfaces between applications and physical data files
Separates logical and physical views of data
Solves problems of traditional file environment
Components of DBMS
Users > Database application > SQL > DBMS >
Database UASMD
What is the Dominant Database System?
Oracle
SQL
Sequential Query Language
JET (joint engine technology)

Joint Engine Technology
Database that is used as underlying database engine for
Access
Components of Databases
Entity
Attribute
Relationship
Entity
Person, place, thing that we identify (people, cars)
Can be tangible or abstract
Attribute
Each characteristic, or quality, describing the entity
(name, address, DL number)
Relationships
Exist between entities
One-to-one
One-to-many
Many-to-many
Entity Instance
Occurrence of an entity (Human is entity, Spencer is

instance)
Form
Efficient way to capture data, imply entities, attributes
and relationships
Data Definition Capability

Specifies structure of database content, used to create
tables and define characteristics of fields
Data Dictionary
Automated or manual file storing definitions of data
elements and their characteristics
Data Manipulation Language

Used to add, change, delete, retrieve data from database
(SQL)
Entity Relationship Diaram

Used by database designers to document the data model
and illustrate relationships between entities
Distributing databases
Storing database in more than one place
Partitioned Database
Separate locations store different parts of database
Replicated Database
Central database duplicated in entirety at different
locations
3 Key techniques Database Approach

1. Data warehousing
2. Data mining (looking for relationships)
3. Tools for accessing internal databases throughout the
web
Business Intelligence
Tools for consolidating, analyzing and providing access
to vast amounts of data to help users make better
business decisions
Principle tools of business intelligence include:

Software for database query and reporting
Online analytical processing (OLAP)
Data mining
Online Analytical Processing (OLAP)

Supports multidimensional data analysis (each aspect of
info is different dimension) and enables rapid, online
answers to ad hoc queries
Data Mining
Finds hidden patterns, relationships in large databases
and infers rules to predict future behavior (discovery
driven)
Predictive Analysis
Uses data mining techniques, historical data and
assumptions about future conditions to predict
outcomes of events (prob customer will respond to

offer)
Text Mining
Extracts key elements from large, unstructured data sets
(stored e-mails)
Advantages of using web for database access

Ease of use of browser software
Web interface requires few or no changes to database
Inexpensive to add web interface to system
Information Policy
Firm's rules, procedures, roles for sharing, managing,
standardizing data
Data Administration
Firm function responsible for specific policies and
procedures to manage data
Data governance
Policies and processes for managing availability,
usability, integrity and security of enterprise data,
especially as it relates to gov regulations
Database Administration
Defining, organizing, implementing, maintaining
database; performed by database design and
management group
Before new database is in place, need to:
Identify and correct faulty data

Est. better routines for editing data once database in
operation
Data Quality Audit

Structured survey of the accuracy and level of
completeness of the data in an info system
Data Cleansing
Software to detect and correct data that are incorrect,
incomplete, improperly formatted or redundant
(enforces consistency)
System Functionalities
Types of info systems capabilities you will need to
achieve your business objectives
Information Requirements
Info elements that they system must produce in order to
achier the business objectives
System Design Specification

Description of the main components in a system and
relationship to one another
CMS
Organizes, stores and processes web site content
Co-location
When a firm purchases or leases a web server (and has
total control over its operation) but locates it in a
vendor's physical facility. Vendor maintains the facility,

communications lines and machinery
System Testing
Testing site as a whole, in way typical user will use it
System Architecture
Arrangement of software, machinery and tasks in an
info system needed to achieve a specific functionality
Two-tier Architecture
E-commerce system in which a web server responds to
requests for web pages and a database server provides
backend data storage
Multi-tier architecture
Web server is linked to a middle-tier layer that includes
series of application servers that perform specific tasks
as well as a backend layer of existing corporate systems
Site management tools

Verify that links on pages are still valid and also identify
orphan files
Dynamic Page generation

Contents of page are stored as objects in a database,
rather than being hard coded in HTML. When user
requests a web page, contents for that peg are fetched
from database
Web application Server
Software program that provide specific business

functionality required of a web site
E-commerce merchant server software

Software that provides the basic functionality needed
for online sales, including catalog, order taking,
shopping cart and credit card processing
Merchant Server Softwarer Package

Offers integrated environment that provides most or all
of functionality and capabilities needed to develop a
sophisticated customer-centric site
Open Source Software

Developed by community of programmers and
designers and free to use and modify
Hardware Platform
All underlying computing equipment that the system
uses to achieve its functionality
I/O Intensive
Requires input/output operations rather than heavyduty processing power
Vertical Scaling
Increasing processing power of individual components
Horizontal Scaling
Employing multiple computers to share the workload

CGI (common gateway interface)
set of standards for communication between a browser
and program running on a server that allows for
interaction between user and server
Active Server Pages

Software development tool that enables programmers
using Microsoft's IIS package to build dynamic pages
Java
Programming language that allows programmers to
create interactivity and active content on client
computer, saving considerable load on the server
1. In general, the more security measures added to an e-commerce site,

the more difficult it is to use, and the slower the site becomes.
T
2. A worm needs to be activated by a user in order for

it to replicate itself.
F
3. Phishing attacks rely on malicious code.

F
4. The use of a digital signature helps to ensure

integrity, authenticity and nonrepudiation.
T
5. SSL does not guarantee server-side authentication.

F
1. Online consumer behavior is fundamentally

different from offline consumer behavior.
F
2. E-commerce is a major conduit and generator of

offline commerce.
T
3. Goal-oriented shopping is the most common type

of online shopping behavior.
T
4. Research indicates that online sellers who develop

trust among consumers are able to charge a premium
price for their online products and services.
T
5. A commodity is a good or service for which there

are many dealers supplying the same product and all
products are essentially different.
F
6. A Web site can only receive data it has stored on a

client computer and cannot look at any other cookie.
T
7. The four generic, market entry strategies are: first

mover, fast follower, "clicks and bricks," and brand
extender.
T
8. Amazon is an example of a company that uses

affiliate marketing.
T
9. The marginal cost of the production of information

goods distributed over the Internet is zero or near
zero.
T
10. Versioning is selling products to different people

and groups based on their willingness to pay.
F
11. Bundling is the process of creating multiple

versions of a good and selling essentially the same
product to different market segments at different
prices.
F
1. After an initial boom in Internet advertising, the

growth of Internet advertising has slowed and has
been somewhat static over the past few years as
concerns regarding effectiveness grow
F
2. Promotional sales communications emphasize

product purchases.
T

3. Search engines must inform the user that the
results of a query have been paid for by participating
firms.
F
4. The 2003 CAN-SPAM act makes lawful legitimate

bulk mailing of unsolicited e-mail messages.
T
5. Sending e-mail marketing messages is typically less

costly than sending direct mail marketing messages.
T
6. Today, the most effective marketing campaigns for

e-commerce companies use both online and offline
marketing communications.
T
7. The average cost per customer acquisition utilizing

online display ads is greater than the cost utilizing
newspaper ads.
T
8. None of the major search engines accept nonpaying Web sites for inclusion in their search results.
F
1. If you decide to outsource your firm's Web site

development, you can rely on the outsourcer to create
a site development plan and need not worry about
basic e-commerce issues.
2. Building a Web site from scratch is always the most

cost effective choice.
F
3. It can cost as much to maintain a Web site on an

annual basis as it does to build it.
T
4. In a two-tier architecture, a Web server is linked to

a middle-tier layer that typically includes a series of
application servers, as well as to a back-end layer.
F
5. The choice of Web server software impacts how

Web pages appear.
F
6. Scaling a site horizontally involves upgrading

servers from a single processor to multiple processors.
F
E-commerce as we know it today would not exist

without the Internet and the World Wide Web.
TRUE
Wireless Web technology reduces barriers to Internet

access.
TRUE
As economists had envisioned, prices of products sold

on the Web are consistently lower than elsewhere and
the online marketplace is characterized by decreasing
price dispersion.
FALSE
E-commerce can be defined as: A) the use of the

Internet and the Web 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.
A) the use of the Internet and the Web to transact
business.
Which of the following is not a unique feature of ecommerce technology? A) interactivity B) social
technology C) global broadcasting D) richness
C) global broadcasting
Which of the following is not an example of a social

network? A) Twitter B) LinkedIn C) Facebook D)
Wikipedia
D) Wikipedia
All of the following are major business trends in ecommerce in 2011-2012 except for: A) Facebook,
Twitter, and other social networks continue to grow.
B) localization of e-commerce expands. C) search
engine marketing is eclipsed by the mobile advertising
platform. D) consumer packaged goods begin to find
their online market.
C) search engine marketing is eclipsed by the mobile
advertising platform.
Above all, e-commerce is a(n) ________ -driven

phenomenon. A) technology B) government C)
marketing D) user
A) technology
A value proposition defines how a company's product

or service fulfills the needs of a customer.
TRUE
The terms revenue model and financial model can be

used interchangeably.
TRUE
Most first movers have the complementary resources

needed to sustain their advantage.
FALSE
Barriers to entry into the e-tail marketplace are high.

FALSE
Which element of the business model addresses the

question of why a customer should buy from the firm?
A) revenue model B) competitive advantage C) market
strategy D) value proposition
D) value proposition
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
B) revenue model
Which of the following is an example of the

subscription revenue model? A) Ancestry.com B) eBay
C) Amazon D) Twitter
A) Ancestry.com
Which of the following companies utilizes a

transaction fee revenue model? A) WSJ.com B)
E*Trade C) Twitter D) Sears.com
B) E*Trade
Which of the following is an example of the affiliate

revenue model? A) Yahoo B) eBay C) Gap.com D)
MyPoints
D) MyPoints
The addresses used by browsers to identify the

location of content on the Web are called: A) domain
names. B) uniform resource locators. C) IP addresses.
D) Hypertext Transfer Protocol.
B) uniform resource locators
________ is a model of computing in which firms

and individuals obtain computing power and software
applications over the Internet, rather than purchasing
and installing it on their own computers. A)
Client/server computing B) P2P computing C)
Broadband computing D) Cloud computing
D) Cloud computing

cost-effective choices when building a Web site.
TRUE

TRUE

challenges in building a successful e-commerce site?
A) developing a clear understanding of business
objectives and knowing how to choose the right
technology to achieve those objectives B) having an
accurate understanding of your business environment
and an achievable business plan C) building a team
with the right skill sets and closely managing the
development process D) identifying the key
components of your business plan and selecting the
right software, hardware, and infrastructure for your
site
A) developing a clear understanding of business
objectives and knowing how to choose the right
technology to achieve those objectives

SDLC, are: A) systems analysis/planning; systems
design; building the system; testing; and
implementation. B) systems design; testing; building
the system; and implementation. C) systems
analysis/planning; systems design; building the
system; implementation; and testing. D) systems
analysis/planning; implementation; building the
system; and testing.
A) systems analysis/planning; systems design; building
the system; testing; and implementation.
________ are the types of information systems

capabilities needed to meet business objectives. A)
Information requirements B) System functionalities
C) System design specifications D) Physical design
specifications
B) System functionalities
Which of the following basic system functionalities is

used to display goods on a Web site? A) product
database B) digital catalog C) shopping cart system D)
customer database system
B) digital catalog
A system design has two main components: A) a

logical design and a physical design. B) a behavioral
design and a technological design. C) business
objectives and technology requirements. D) front-end
systems and back-end systems.
A) a logical design and a physical design.

marketing effectiveness of your e-commerce site? A)
shopping cart B) product database C) site tracking
and reporting system D) inventory management
system
C) site tracking and reporting system

Web servers except: A) site management tools. B)
data capture tools. C) security services. D) a shopping
cart.
D) a shopping cart.
The easiest and least expensive way to prevent threats

to system integrity is to install anti-virus software.
TRUE
Credit cards are the dominant form of online payment

throughout the world.
TRUE
In order to accept payments by credit card, online

merchants must have a merchant account established
with a bank or financial institution.
TRUE
PayPal requires the recipient of a payment to have a

PayPal account to receive funds.
TRUE

increase in cybercrime except: A) the ability to
remotely access the Internet. B) the Internet's
similarity to telephone networks. C) the ability to
anonymously access the Internet. D) the Internet is an
open, vulnerable design.
B) the Internet's similarity to telephone networks.
________ refers to the ability to ensure that ecommerce participants do not deny their online
actions. A) Nonrepudiation B) Authenticity C)
Availability D) Integrity
A) Nonrepudiation
________ refers to the ability to identify the person

or entity with whom you are dealing on the Internet.
A) Nonrepudiation B) Authenticity C) Availability D)
Integrity
B) Authenticity
Households with incomes of below $75,000 are

obtaining Internet access at faster rates than
households with incomes above that level.
TRUE
Price is the top factor in online purchase decisions.

TRUE
E-commerce is a major conduit and generator of

offline commerce.
TRUE
Online shoppers tend to browse for available products

rather than search for specific products they have
determined in advance.
FALSE
Research shows that the two most important factors

shaping the decision to purchase online are utility and
trust.
TRUE
Cookies, when combined with Web bugs, can be used

to create cross-site profiles.
TRUE
Bundling is the process of creating multiple versions

of a good and selling essentially the same product to
different market segments at different prices.
FALSE
Which of the following activities is the one engaged in

by the highest percentage of online users? A) using email B) using a search engine C) researching products
and services D) reading news
A) using e-mail
Which of the following age groups has the highest

percentage of Internet access? A) 18-29 B) 30-49 C)
50-64 D) 65+
A) 18-29
Which of the following statements is not true about

the broadband audience? A) It is clearly different than
the dial-up audience. B) It is more educated and
wealthier than the dial-up audience. C) It is less
intensely involved with the Internet. D) It is more
middle-aged than the dial-up audience.
C) It is less intensely involved with the Internet.
A(n) ________ profile describes an individual's set

of needs, drives, motivations, perceptions and learned
behaviors. A) psychographic B) opinion C)
psychological D) lifestyle
C) psychological

segmentation and targeting involves tracking the
actions users take on a Web site? A) technical B)
behavioral C) contextual D) psychographic
A) technical
The sole purpose of marketing communications is

sales.
TRUE
The amount spent on online advertising in 2011

accounts for approximately 20 percent of the total
amount spent on all advertising.
TRUE
Online advertising methods include banner ads, video

ads, and referrals.
TRUE
Display ads produce the highest click-through rates.

FALSE
Search engine advertising continues to be the

dominant form of online advertising, but its rate of
growth is slowing somewhat compared to other
formats.
TRUE
Which of the following advertising messages is a

branding communication? A) Try Adobe Acrobat
Professional 10 free for 30 days. B) Free shipping on
every item we sell. Buy two or more items to qualify.
C) Barnesandnoble.com: The Best Place to Buy
Textbooks. D) 50 percent off all calendars. Shop now
while supplies last.
Barnesandnoble.com: The Best Place to Buy Textbooks.
Which of the following is not one of the advantages of

online advertising? A) The Internet is where the
audience is moving. B) Online ads provide for greater
interactivity with the customer. C) Online costs versus
benefits are well established and understood. D)
Online advertising can target ads to narrow market
segments. Page Ref: 434-436
...
A Crayola arts and crafts column on a parenting Web

site is an example of what form of advertising? A)
sponsorship B) banner swapping C) affiliate
relationship D) public relations
A) sponsorship

A typical response rate for an e-mail campaign would
be ________ percent. A) 2 B) 5 C) 25 D) 50
B) 5
Legitimate e-mail addresses based on a high-quality

commercial opt-in e-mail list might cost ________
per thousand. A) 50 cents to $1 B) $5 to $10 C) $50 to
$100 D) $500 to $1000
B) $5 to $10
The two different types of online catalogs are: A) fullpage spreads and grid display. B) web-based and
direct mail. C) multi-item display and single-item
display. D) rich media/video and display.
A) full-page spreads and grid display.
CTR is a measure of the: A) percentage of times an ad

is clicked. B) number of times an ad is served. C)
number of http requests. D) number of pages viewed.
A) percentage of times an ad is clicked
Which of the following measures the average length of

stay at a Web site? A) loyalty B) stickiness C) recency
D) retention rate
B) stickiness
Which of the following measures the ratio of items

purchased to product views? A) conversion rate B)
cart conversion rate C) browse-to-buy ratio D) viewto-cart ratio
C) browse-to-buy ratio
Acquisition rate is a measure of the: A) percentage of

visitors who indicate an interest in a site's products by
registering or visiting a product's pages. B) percentage
of visitors who become customers. C) percentage of
existing customers who continue to buy on a regular
basis. D) percentage of shoppers who do not return
within a year after their initial purchase.
A) percentage of visitors who indicate an interest in a
pages
Which of the following forms of online advertising

typically has the highest click-through rate? A) e-mail
marketing in-house list B) interstitials C) search
engine keyword purchase D) sponsorships
A) e-mail marketing in-house list
Groupon is an example of local commerce.

TRUE
The power of suppliers is a key industry strategic

factor.
TRUE
In 2011, the number of online buyers is around 150

million.
TRUE
In the United States, the service sector accounts for

about 75 percent of all economic activity. Page Ref:
604
...
In the United States, banks, insurance firms, and

brokerage firms are prohibited from having
significant financial interests in one another.
TRUE
Over 70 million households now use online banking.

TRUE
The online mortgage industry has transformed the

process of obtaining a mortgage.
TRUE
The major impact of Internet real estate sites is in

enabling online-only property transactions.
FALSE
Online retailing is one of the largest segments of the

retail industry.
FALSE
Online career sites are being threatened by both job

search engines and aggregators.
TRUE
All of the following products are considered durable

goods except: A) automobiles. B) clothing. C)
appliances. D) furniture.
B) clothing.
Within the U.S. retail goods and services market,

personal consumption of ________ accounts for the
largest share. A) durable goods B) nondurable goods

C) online retail D) services Page Ref: 578
...
Which of the following segments of the U.S. retail

industry is the smallest? A) consumer durables B)
gasoline and fuel C) specialty stores D) online retail
D) online retail
The easiest and least expensive way to prevent threats to system

integrity is to install anti-virus software (T/F)
True
Digital cash is legal tender that is instantly convertible into other forms
of value without the intermediation of any third parties
False
Phishing attacks rely on browser parasites

False
The U.S. federal government has historically not been in favor of the
development and export of strong encryption systems.
True
In order to accept payments by credit card, online merchants typically

must have a merchant account established with a bank or financial
institution
True

________ refers to the ability to ensure that messages and data are
only available to those authorized to view them
Confidentiality
All of the following statements about public key encryption are true
except:
. public key encryption uses two mathematically related digital keys.
. public key encryption ensures authentication of the sender.
. public key encryption does not ensure message integrity.
. public key encryption is based on the idea of irreversible
mathematical functions.
public key encryption does not ensure message integrity.
Which of the following countries has been found to have engaged in

cyberespionage against Google?
China
An intrusion detection system can perform all of the following

functions except:
Blocking suspicious activity

. adware
. browser parasite
. drive-by download
. spyware
Drive-by download
Which of the following did Dropbox implement after a series of

security snafus in 2011 and 2012?
a. firewall
b. SSL/TLS
c. two-factor authentication
d. anti-virus software
Two-Factor Authentication
Proxy servers are also known as

Dual-home Systems
Online bill payments are believed to cost ________ to process

compared to ________ for paper bills.
20 to 30 cents, $3 to $7
All the following statements about symmetric key encryption are true
except:
. in symmetric key encryption, both the sender and the receiver use the
same key to encrypt and decrypt a message.
. the Data Encryption Standard is a symmetric key encryption system.
. symmetric key encryption is computationally slower.
. symmetric key encryption is a key element in digital envelopes.
symmetric key encryption is computationally slower.
P2P payment systems are a variation on what type of payment system?

Which of the following is not an example of an access control?

. firewalls
. proxy servers
. digital signatures
. login passwords
Digital signatures
None of the following payment systems offers immediate monetary

value except:
A) personal checks.
B) credit cards.
C) stored value/debit card.
D) accumulating balance.
stored value/debit card.
Reventon is an example of:

Ransomware
Which of the following dimensions of e-commerce security is not

provided for by encryption?
. confidentiality
. availability
. message integrity
. nonrepudiation
Availability
Spoofing involves attempting to hide a true identity by using someone

else's e-mail or IP address
True
TLS does not guarantee server-side authentication

False
A worm does not need to be activated by a user in order for it to

replicate itself
True
Smishing attacks exploit SMS messages

True
Rustock is an example of which of the following?

Botnet
An example of a privacy violation of e-commerce security is:

your online purchasing history being sold to other merchants without
your consent.
Which of the following is an example of an integrity violation of ecommerce security?

A) A Web site is not actually operated by the entity the customer
believes it to be.
B) A merchant uses customer information in a manner not intended by
the customer.
C) A customer denies that he or she is the person who placed the order.
D) An unauthorized person intercepts an online communication and
changes its contents.
. An unauthorized person intercepts an online communication and
changes its contents.

Which of the following is the current standard used to protect Wi-Fi
networks?
WPA2
The overall rate of online credit card fraud is ________ % of all

online card transactions.
Less than 1%
All of the following are limitations of the existing online credit card
payment system except:
. poor security.
. cost to consumers.
. cost to merchant.
. social equity.
Cost to consumers
A digital certificate contains all of the following except the:

. subject's private key.
. subject's public key.
. digital signature of the certification authority.
. digital certificate serial number.
Subject's private key
Which of the following is a set of short-range wireless technologies

used to share information among devices within about 2 inches of each
other?
NFC
All of the following statements about PKI are true except

. The term PKI refers to the certification authorities and digital
certificate procedures that are accepted by all parties.
. PKI is not effective against insiders who have a legitimate access to
corporate systems including customer information.
. PKI guarantees that the verifying computer of the merchant is secure.
. The acronym PKI stands for public key infrastructure.
. PKI guarantees that the verifying computer of the merchant is secure.
All of the following are factors in contributing to the increase in

cybercrime except:
. the ability to remotely access the Internet.
. the Internet's similarity to telephone networks.
. the ability to anonymously access the Internet.
. the Internet is an open, vulnerable design.
The Internet's similarity to telephone networks
Linden Dollars, created for use in Second Life, are an example of:
Virtual Currency
. Insiders present a greater security threat to e-commerce sites than

outsiders
True
. Most of the world's spam is delivered via which of the following?

Botnets
The research firm Cybersource estimated that online credit card fraud
in the United States amounted to about ________ in 2012.
$3.5 Billion
The Data Encryption Standard uses a(n) _____ bit key.

56

Secret Key Encryption
Which dimension(s) of security is spoofing a threat to?

Integrity and Authenticity
Software that is used to obtain private user information such as a

user's keystrokes or copies of e-mail is referred to as:
Spyware
All of the following are methods of securing channels of

communication except:
A) SSL.
B) S-HTTP.
C) VPN.
D) FTP.
FTP
Prior to the development of e-commerce, Web sites primarily delivered

static content. T/F
True

Upgrading a server from a single processor to multiple processors is an
example of scaling a site horizontally. T/F
True
Mobile Web apps are typically built using HTML5 and Java.
True
Apache Web server software is based on Microsoft's Windows

operating system.
False
The annual maintenance cost for a Web site is likely to be as high as its
development cost.
True
4 kinds of e-commerce presence

Web sites
e-mail
social media
offline media
Which of the following typically includes a data flow diagram to

describe the flow of information for an e-commerce site?
. physical design
. logical design
. testing plan
. co-location plan
Logical design

a logical design and a physical design
All of the following are basic functionality provided by Web servers

except:
A) a product catalog.
B) marketing software
C) a shopping cart.
D) credit card processing.
A shopping cart
All of the following are simple steps for optimizing Web page content
that can reduce response times except:
reducing unnecessary HTML comments.
Using more efficient graphics.
Avoiding unnecessary links to other pages on the site.
Segmenting computer servers to perform dedicated functions.
- segmenting computer servers to perform dedicated functions
Offline media is typically used for all of the following marketing

activities except:
education.exposure.conversation.branding
conversation
All of the following are methods of improving the processing

architecture of a Web site except:
a) separating static content from dynamic content
b) optimizing ASP code
c) optimizing database schema

d) adding web servers
Adding web servers
Which of the following technologies could you use to place the content
of your Web site in a database so that you can then dynamically
generate requests for pages?
-Apache web server
-proxy server
-shopping cart
-CMS
CMS
Which of the following is not a main factor in determining overall

demand for an e-commerce site?
-static file sizes
-number of items in inventory
-user profiles
-type of content
Static File Size
________ verifies that the business objectives of the system as

originally conceived are in fact working.
Acceptance testing
In order from beginning to end, the major steps in the SDLC, are:
systems analysis/planning;
systems design;
building the system;
testing;
implementation.

Wordpress
What are the two most important management challenges in building

a successful e-commerce presence?
-developing a clear understanding of business objectives -knowing how
to choose the right technology to achieve those objectives
Which of the following details the actual hardware components to be

used in a system?
Physical Design
One of the most important challenges in developing an e-commerce

presence is understanding that the technology must drive the business.
T/F
False
The systems development life cycle methodology is useful when

creating an e-commerce Web site.
True
Storing HTML pages in RAM rather than on a server's hard drive is an

inexpensive way to fine-tune the processing architecture of a Web site.
T/F
True
All of the following are basic information requirements for a product

database except:
.product descriptions
.stock numbers
.customer ID numbers
.inventory levels
Customer ID number
Which of the following is the least expensive path to creating a mobile

Internet presence?
Resizing a website for mobile use

the server does not have to maintain an ongoing dedicated interaction
with the client computer.
Most of the time required to maintain an e-commerce site is spent on:

general administration and making changes and enhancements to the
system.
The cost of hardware, software, and telecommunications services

needed to build a Web site have ________ over the last decade.
Decreased drastically
Advantages of dynamic page generation include all of the following

except:
a) lowered menu costs
b)market segmentation
c) nearly cost-free price discrimination
d) client-side execution of programming
Client-side execution of programming
Which of the following is used to process certificates and

private/public key information?
A) HTTP
B) SSL
C) FTP
D) data capture tools
SSL
An e-commerce Web site that processes orders requires, at minimum,

a ________ system architecture.
Two-tier
Which of the following is not a major technology trend in e-commerce?
A) Mobile computing begins to rival the PC platform
B) The Internet broadband foundation becomes stronger in
households and businesses.
C) Computing and networking component prices increase
dramatically.
D) Wireless Internet connections grow rapidly.
Answer: C Computing and networking component prices increase
dramatically.
Which of the following is required for commerce to occur?

an exchange of value
E-commerce can be defined as:

the use of the Internet and the Web to transact business.
Which of the following are all unique features of e-commerce

technology?
universal standards, richness, information density, interactivity
The integration of video, audio, and text marketing messages into a

single marketing message and
consuming experience is an example of:
richness.
Which of the following qualities is least likely to decrease a consumer's

search costs?
richness
Which of the following is the best definition of transaction costs?

the cost of participating in markets
None of the following technologies easily crosses national boundaries

to a global audience except:
A) television.
B) radio stations.
C) newspapers.
D) the Internet.
Answer: D the Internet.
Network externalities are related to which of the following features of

e-commerce technology?
universal standards
E-commerce technologies have changed the traditional tradeoff

between the richness and reach of a
marketing message. Prior to the development of the Web:
the larger the audience reached, the less rich the message.
Which of the following is not an example of a Web 2.0 application?

A) YouTube
B) Yahoo
C) Second Life
D) Wikipedia
Answer: B Yahoo
B2G e-commerce is a form of which type of e-commerce?

B2B
Which type of e-commerce is distinguished by the type of technology

used in the transaction rather
than by the nature of the market relationship?
Peer-to-Peer (P2P)
Net marketplaces include all of the following except:

A) e-distributors.
B) exchanges.
C) industry consortia.
D) private industrial networks.
Answer: D private industrial networks.
Which of the following statements about the Web is not true?

A) It is the technology upon which the Internet is based.
B) It was developed in the early 1990s.
C) It provides access to pages written in HTML.

D) It provides access to Web pages that incorporate graphics, sound,
and multimedia.
Answer: A It is the technology upon which the Internet is based.
All of the following can be considered a precursor to e-commerce

except:
A) m-commerce.
B) Baxter Healthcare's remote order entry system.
C) The French Minitel.
D) Electronic Data Interchange.
Answer: A m-commerce.
Business-to-consumer B2C e-commerce is:

expected to return to a growth rate of 10 percent a year after the
recession.
Which of the following is not a limitation on the growth of B2C ecommerce?

A) the sophisticated skill set required to use the Internet and ecommerce systems
B) the persistent global inequality limiting access to telephone service,
PCs, and cell phones
C) saturation and ceiling effects
D) the retrenchment and consolidation of e-commerce into the hands
of large established firms
Answer: D the retrenchment and consolidation of e-commerce into the
hands of large established firms
The most significant technology that can reduce barriers to Internet

access is:
wireless Web technology.

Which of the following is not a characteristic of a perfect competitive
market?
A) price, cost, and quality information are equally distributed.
B) a nearly infinite set of suppliers compete against one another.
C) customers have access to all relevant information worldwide.
D) the growth of regulatory activity both nationally and
internationally.
Answer: D the growth of regulatory activity both nationally and
internationally.
All of the following were visions of e-commerce expressed during the

early years of e-commerce
except:
A) a nearly perfect competitive market.
B) friction-free commerce.
C) persistence of information asymmetries.
D) first mover advantage.
Answer: C persistence of information asymmetries
Unfair competitive advantages occur when:

one competitor has an advantage others cannot purchase.
The early years of e-commerce were driven by all of the following

factors except:
A) an emphasis on exploiting traditional distribution channels.
B) a huge infusion of venture capital funds.
C) an emphasis on quickly achieving a very high market visibility.
D) visions of profiting from new technology.
Answer: A an emphasis on exploiting traditional distribution channels.
E-commerce during the early years of e-commerce was:
a technological success and a mixed business success.
Which of the following is a characteristic of the re-invention phase of

e-commerce?
proliferation of small online intermediaries renting the business
processes of larger firms
Which of the following is a characteristic of the consolidation phase of

e-commerce?
strengthening of intermediaries
Which of the following is not true regarding e-commerce today?

A) Economists' visions of a friction-free market have not been realized.
B) Consumers are less price-sensitive than expected.
C) There remains considerable persistent price dispersion.
D) The market middlemen disappeared.
Answer: D The market middlemen disappeared.
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.
Answer: C Overall transaction costs have dropped dramatically.
Which of the following types of merchants has the highest share of

retail online sales?
retail chain

One of the predictions for the future of e-commerce is that:
overall revenues from e-commerce will grow by 10-12 percent a year
from 2010 through 2013.
Which of the following is the top-selling online retail category?

mass merchant/department store
Above all, e-commerce is a(n) ________-driven phenomenon.

A) technology
B) government
C) marketing
D) user
Answer: A technology
Which business improvement is associated with the technological

development of local area
networks and client/server computing?
workgroup automation for example document sharing
Which of the following is one of the three primary societal issues

related to e-commerce?
individual privacy
Which of the following statements is not true?

A) No one academic perspective dominates research about ecommerce.
B) Information systems researchers 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 business firms
can exploit the Internet to achieve more efficient business operations.
Answer: B Information systems researchers take a purely technical
approach to e-commerce.
________ refers to any disparity in relevant market information

among parties in a transaction.
Information asymmetry
A(n) ________ extends the marketplace beyond traditional

boundaries.
marketspace
The targeting of marketing messages to specific individuals by

adjusting the message to a person's
name, interests, and past purchases is called ________.
personalization
The most popular service that runs on the Internet infrastructure is the
________.
World Wide Web/Web
An Internet ________ is defined as any IP address that returns a

domain name in the in-addr.arpa
domain.
host

________ refers to the displacement of market middlemen.
Disintermediation
A(n) ________ occurs when everyone in a group receives value

because all participants use the
same tool or product.
network effect
A firm that is first to market in a particular area and that moves

quickly to gather market share is
referred to as a(n) ________.
first mover
________ Law quantifies the network effect, by stating that the value
of a network grows by the
square of the number of participants.
Metcalfe's
An economist is most likely to be interested in a ________ approach

to e-commerce.
behavior
Tangible works of the mind such as music, books, and videos are called
________.
intellectual property
Define the terms e-business and e-commerce and explain the

difference. What is the key factor in
determining if a transaction is "commerce"?
E-business refers primarily to digitally enabled transactions within a
firm, involving information systems under the control of the firm. Ebusiness does not include commercial transactions
in which an exchange of value across organizational boundaries takes
place. E-commerce, on the other
hand, is a revenue generating operation. The key factor in determining if
a transaction is commerce therefore is "exchange of value." In order to
be e-commerce, a transaction must include the direct production of
revenue.
Has e-commerce changed the marketing of goods? If so, how?

E-commerce has greatly changed the marketing of goods. Before, the
marketing and sale of goods was a mass-marketing and sales forcedriven process. Marketers viewed consumers as passive targets of
advertising. The Internet and Web can deliver, to an audience of
millions, rich marketing messages with text, video, and audio, in a way
not possible with traditional commerce technologies such as radio,
television, or magazines. Merchants can target their marketing messages
to specific individuals. Much information about the consumer can be
gathered from the Web site the consumer visits. With the increase in
information density, a great deal of information about the consumer's
past purchases and behavior can be stored and used by online
merchants. The result is a level of personalization and customization
unthinkable with existing commerce technologies.
List and briefly explain the five main types of e-commerce. For the
most part, what is the metric
upon which the types of e-commerce are distinguished?
Business-to-Consumer (B2C) in online businesses reach consumers;
Business-to-Business (B2B), in which businesses
sell to other businesses; Consumer to Consumer (C2C), consumers
can sell goods to each other; Peer-to-Peer (P2P), use of file sharing
technology,
eliminating a Web server; and mobile commerce or m-commerce the use
of wireless digital devices to enable Web transactions. The metric upon
which each of these types of e-commerce is

distinguished is the nature of the market relationship--who is selling to
whom, except m-commerce,
which is defined by the method of transacting.
Which of the following factors is not a significant influence on a

company's competitive
environment?
A) how many competitors are active
B) what the market share of each competitor is
C) the availability of supportive organizational structures
D) how competitors price their products
Answer: C the availability of supportive organizational structures
The existence of a large number of competitors in any one market

segment may indicate:
the market is saturated.
A perfect market is one in which:

there are no competitive advantages or asymmetries because all firms
have equal access to all the
factors to production.
The business model of e-tailers is quite similar to that of:

e-distributors.
Horizontal or general portals primarily generate revenue in all of the

following ways except:
A) charging advertisers for ad placement.
B) collecting transaction fees.
C) sales of goods.
D) charging subscription fees.
Answer: C sales of goods.
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
Answer: C market creator
In general, the key to becoming a successful content provider is to:

own the content being provided.
Monster.com is an example of a:
transaction broker.
Which of the following is not a true statement about the online

brokerage market?
A) First movers initially dominated the market.
B) Significant consolidation is now occurring in the industry.
C) Traditional brokerages have been unable to mount an effective
challenge to the pure online
brokerages.
D) Online stockbrokers charge commissions that are considerably less
than traditional brokers.
Answer: C Traditional brokerages have been unable to mount an
effective challenge to the pure online
brokerages.
The basic value proposition of community providers is:

they offer a fast, convenient one-stop site where users can focus on their
most important concerns
and interests.
All of the following are examples of Business-to-Business (B2B)

business model except:
A) e-distributors.
B) e-procurement.
C) private industrial networks.
D) market creators.
Answer: D market creators.
What is the primary revenue model for an e-distributor?

sales
One of the competitive advantages of a B2B service provider is that it

can spread the cost of an
expensive software system over many users, achieving efficiencies
referred to as:
scale economies.
A ________ business model provides a way for consumers to sell to

each other with the help of an
online business.
A) B2B
B) B2C
C) C2C
D) P2P
Answer: C C2C
The key technologies for m-commerce are:

Cell phone-based 3G, Wi-Fi and Bluetooth
Which group of companies has profited most, as a whole, from the

development of e-commerce?
Internet infrastructure companies
Which of the following features of e-commerce technology changes

industry structure by lowering
barriers to entry, but greatly expands the market at the same time?
global reach
Which of the following features of e-commerce technology changes

industry structure by weakening
powerful sales channels, shifting bargaining power to consumers?
information density
If you wished to leverage the ubiquitous nature of the Web to

differentiate your product, you would:
enable individual customization of the product by consumers.
A(n) ________ is a set of planned activities designed to result in a

profit in marketplace.
business model
In the ________ revenue model, a Web site that offers users content
or services charges a fee for
access to some or all of its offerings.
subscription
Today, the ________ business model offers users content as well as

Web search tools in order to act
as a destination site.
portal
The financial services, travel services, and job placement services

industries use the ________
business model.
transaction broker
In a(n) ________ business model, Web-based businesses build a

digital environment in which
buyers and sellers can meet, display products, search for products, and
establish prices.
market creator/market creators
A(n) ________ provider is a company that offers access to Internetbased software applications to
other companies.
application service
Which of the following is not a basic building block of the Internet?

A) client/server computing
B) the SMTP protocol
C) the TCP/IP communications protocol

D) packet-switching hardware
Answer: B the SMTP protocol
The process of slicing digital messages into parcels, sending them

along different communication
paths as they become available, and reassembling them at the
destination point is called:
packet switching.
Which of the following is the core communications protocol for the

Internet?
TCP/IP
The Transport Layer of TCP/IP is responsible for which of the

following?
providing communication with the application by acknowledging and
sequencing the packets to and
from the application
The Internet Layer of TCP/IP is responsible for which of the following?

addressing, packaging, and routing messages
The Network Interface Layer of TCP/IP is responsible for which of the

following?
placing packets on and receiving them from the network medium
An IPv4 address is expressed as a:

32-bit number that appears as a series of four separate numbers
separated by periods.
The natural language convention used to represent IP addresses is

called the:
domain name system.
The addresses used by browsers to identify the location of content on

the Web are called:
uniform resource locators.
Which of the following statement about client/server computing is

true?
It connects multiple powerful personal computers together in one
network with one or more servers
dedicated to common functions that they all need.
Which of the following is not an advantage of client/server computing

over centralized mainframe
computing?
A) It is easy to expand capacity by adding servers and clients.
B) Each client added to the network increases the network's overall
capacity and transmission speeds.
C) It is less vulnerable because the processing load is balanced over
many powerful smaller computers
rather than concentrated in a single huge computer.
D) There is less risk that a system will completely malfunction because
backup or mirror servers can
pick up the slack if one server goes down.
Answer: B Each client added to the network increases the network's
overall capacity and transmission speeds.

________ is a model of computing in which firms and individuals
obtain computing power and
software applications over the Internet, rather than purchasing and
installing it on their own computers.
Cloud computing
Which of the following protocols is used to send mail to a server?

SMTP
Where within TCP/IP does SSL operate?

between the Transport Layer and the Application Layer
Where within TCP/IP does FTP run?

in the Application Layer
________ is one of the original Internet services and is used to

transfer files from a server computer
to a client computer and vice versa.
FTP
________ is a utility that you run from the DOS prompt in the
Windows operating system in order
to check the connection between your client and the server.
Ping
What is the layer of the Internet architecture that is composed of the

telecommunications networks
and protocols?
Network Technology Substrate layer
TCP/IP operates in which layer of Internet architecture?

Transport Services and Representation Standards layer
An Internet-enabled teleconferencing program would run in which

layer of Internet architecture?
Applications layer
The layer of the Internet architecture that ties the applications to the
communications network and
includes such services as security and authentication is called the:
Middleware Services layer.
The backbone of the Internet is formed by:

Network Service Providers (NSPs).
When talking about the physical elements of the Internet the term
redundancy refers to:
multiple duplicate devices and paths in a network built so that data can
be rerouted if a breakdown
occurs.
The "hubs" where the backbone owners connect with one another are
called:
Internet Exchange Points (IXPs).
Local area networks that operate within a single organization that

leases access to the Web from
regional and national carriers are called:
campus area networks.
The ________ is a largely academic group that sets HTML and other
programming standards.
World Wide Web Consortium (W3C)
Which of the following is not a limitation of Internet I?

the difficulty in expanding capacity by adding servers and clients
Which of the following is not a major goal of the Internet2 project?

A) creating a leading edge network capability for the research
community
B) developing wireless LANs and alternatives to synchronous optical
networks and asynchronous
transfer mode cells
C) ensuring the rapid transfer of new network services and
applications to the broader Internet
community
D) enabling revolutionary new Internet applications
Answer: B developing wireless LANs and alternatives to synchronous
optical networks and asynchronous
transfer mode cells
The major technologies used with wireless local area networks are:
Wi-Fi standard and Bluetooth.
Which of the following is a short-range, low power wireless network

technology useful for remotely
controlling industrial, medical and home automation devices?
ZigBee
Which of the following is a high-speed, medium-range, broadband

wireless metropolitan area
network?
WiMax
The set of technologies that enables efficient delivery of data to many

locations on a network is
called:
IP multicasting.
The first Web browser to make it possible to view documents on the

Web with colored background,
images, and animations was:
Mosaic.
Which of the following services would you not expect to find in a Web
server software package?
RSS aggregator
Which of the following is currently the second most popular Web

browser?
Firefox
Software programs that gather and/or filter information on the

Internet on a specific topic and
provide a list of the results may be called any one of the following
except:
A) bots.
B) software robots.
C) intelligent agents.
D) avatars.
Answer: D avatars.
Which of the following is a Web application that enables Internet users

to communicate with each
other, although not in real time?
online forum
A(n) ________ is software that allows users to have digital content

automatically sent to their
computers over the Internet.
RSS aggregator
A(n) ________ is a Web application that allows a user to easily add

and edit content on a Web page.
wiki
You could most easily add personalized, interactive content to your

Web page by incorporating a:
widget.
Specialized computers that interconnect the thousands of computers

that make up the Internet in
order to transmit message parcels along available communication
paths and on to their destinations are
called ________.
routers
A set of rules for transferring data is called a(n) ________.

protocol
TCP/IP is divided into four separate ________, each handling a

different aspect of the
communication problem.
layers
________ are central directories that list all domain names currently
in use for specific domains.
Root servers
A TCP/IP network located within a single organization for the

purposes of communication and
information processing is called a(n) ________.
intranet
________ software refers to the software that enables a computer to

deliver Web pages written in
HTML to client computers on a network that request this service by

sending an HTTP request.
Web server
Computing devices attached to the Internet that are capable of making

HTTP requests and
displaying HTML pages are referred to as ________.
Web clients
________ marketing has been the fastest-growing form of

advertising in the United States, reaching
about $12 billion in 2009.
Search engine
E-Commerce 2014, 10e (Laudon/Traver)

Chapter 2 E-commerce Business Models and Concepts
1) A value proposition defines how a company's product or service fulfills the
needs of a customer.
Answer: TRUE
Difficulty: Easy
AACSB: Application of knowledge
2) The terms revenue model and financial model can be used interchangeably.
Answer: TRUE
Difficulty: Moderate
3) In order to be considered successful, a firm must produce returns greater than
alternative investments.
Answer: TRUE
Difficulty: Easy
4) An asymmetry exists whenever one participant in a market has more resources
than other participants.
Answer: TRUE

5) Most first movers have the complementary resources needed to sustain their
advantage.
Answer: FALSE
6) All firms need an organization to efficiently implement their business plans and
strategies.
Answer: TRUE
Difficulty: Easy
7) Visitors to specialized niche vortals tend to spend less money than the average
visitor to a horizontal portal.
Answer: FALSE
Difficulty: Difficult
8) Barriers to entry into the e-tail marketplace are high.
Answer: FALSE
9) The JOBS Act allows a start-up company to use crowdfunding to raise up to
$10 million within a one-year period.
Answer: FALSE
10) Scale economies are efficiencies that result from flattening the hierarchy of an
organization.
Answer: FALSE
11) Service providers primarily use the advertising revenue model.
Answer: FALSE
Difficulty: Easy
12) The Internet's universal standards decrease the cost of industry and firm
operations.
Answer: TRUE
13) Interactivity that enables product customization alters industry structure by
reducing the threat of substitutes.
Answer: TRUE
14) Interfirm rivalry is one area of the business environment where e-commerce
technologies have had an impact on most industries.
Answer: TRUE
AACSB: Information technology
15) Social technologies change industry structure by shifting programming and
editorial decisions to consumers.
Answer: TRUE
16) ________ and ________ are typically the most easily identifiable aspects of a
company's business model.
A) Market strategy; market opportunity
B) Value proposition; revenue model
C) Value proposition; competitive environment
D) Revenue model; market strategy
Answer: B
17) All of the following are key elements of a business model except:
A) competitive environment.
B) organizational development.
C) information technology strategy.
D) market strategy.
Answer: C
18) Which element of the business model addresses the question of why a
customer should buy from the firm?
A) revenue model
B) competitive advantage
C) market strategy
D) value proposition
Answer: D
19) Which element of the business model examines who else occupies the firm's
intended marketspace?
A) value proposition
B) competitive environment
C) competitive advantage
D) market strategy
Answer: B
20) Which of the following are Amazon's primary value propositions?
A) personalization and customization
B) selection and convenience
C) reduction of price discovery cost
D) management of product delivery
Answer: B
AACSB: Analytical thinking
21) Your solar-panel manufacturing firm has developed a unique and patented
process for creating high-efficiency solar panels at a fraction of current costs. This
will enable your firm to adopt a strategy of:
A) cost competition.
B) scope.
C) scale.
D) focus.
Answer: A
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
Answer: B
23) Which of the following is an example of the subscription revenue model?
A) Ancestry.com
B) eBay
C) Amazon
D) Twitter
Answer: A
24) Stickiness is an important attribute for which revenue model?
A) advertising revenue model
B) subscription revenue model
C) transaction fee revenue model
D) sales revenue model
Answer: A
25) Which of the following companies utilizes a transaction fee revenue model?
A) WSJ.com
B) E*Trade
C) Twitter
D) Sears.com
Answer: B
26) Which of the following is an example of the affiliate revenue model?

A) Yahoo
B) eBay
C) Gap.com
D) MyPoints
Answer: D
27) Assume you are analyzing the market opportunity of a distance learning
company, Learnmore.com, that creates education courses delivered over the
Internet for the Fortune 1000 corporate market. Assume that the overall size of the
distance learning market is $25 billion. The overall market can be broken down
into three major market segments: Corporate, College, and Elementary/High
School, each of which accounts for a third of the market. Within the Corporate
market, there are two market niches: Fortune 1000, which accounts for 60% of the
market, and all others, which together account for 40% of the market. What is
Learnmore.com's realistic market opportunity, approximately?
A) $5 billion
B) $6.6 billion
C) $165 billion
D) $25 billion
Answer: A
28) Which of the following factors is not a significant influence on a company's
competitive environment?
A) how many competitors are active
B) what the market share of each competitor is
C) the availability of supportive organizational structures
D) how competitors price their products
Answer: C
29) Which of the following would be considered an indirect competitor of
American Airlines?
A) JetBlue
B) Zipcar
C) Orbitz
D) British Airways
Answer: B
30) The existence of a large number of competitors in any one market segment
may indicate:
A) an untapped market niche.
B) the market is saturated.
C) no one firm has differentiated itself within that market.
D) a market that has already been tried without success.
Answer: B
31) All of the following can be considered a direct or indirect competitor of
Amazon.com except:
A) eBay.
B) Apple's iTunes Store.
C) Barnesandnoble.com.
D) Starbucks.
Answer: D
32) A perfect market is one in which:
A) there are no competitive advantages or asymmetries because all firms have
equal access to all the factors to production.
B) one firm develops an advantage based on a factor of production that other
firms cannot purchase.
C) one participant in the market has more resources than the others.
D) competition is at a minimum, as each niche market within an industry is served
by the company with the greatest competitive advantage.
Answer: A
33) The business model of e-distributors is quite similar to that of:
A) e-tailers.
B) transaction brokers.
C) exchanges.
D) service providers.
Answer: A
34) All of the following use an advertising revenue model except:
A) Facebook.
B) Yahoo.
C) Google.
D) Amazon.
Answer: D
35) Organizations that provide not only funding but also an array of services to
start-up companies are referred to as:

A) angel investors.
B) crowdfunders.
C) incubators.
D) venture capital investors.
Answer: C
36) Which of the following is not considered a portal?
A) Yahoo
B) MSN
C) WSJ.com
D) AOL
Answer: C
Difficulty: Easy
37) Horizontal or general portals primarily generate revenue in all of the
following ways except:
A) charging advertisers for ad placement.
B) collecting transaction fees.
C) sales of goods.
D) charging subscription fees.
Answer: C
38) A business document that specifically details how you plan on selling your
product and find new customers is called a:
A) sales analysis.
B) business plan.
C) competitive strategy.
D) market strategy.
Answer: D
Difficulty: Easy
39) Which of the following is not a community provider?
A) LinkedIn
B) Facebook
C) Priceline
D) Pinterest
Answer: C
Difficulty: Easy
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
Answer: C
41) An example of a company using the content provider model is:
A) Priceline.
B) Rhapsody.com.
C) Dell.
D) eBay.
Answer: B
42) Which of the following is not an example of the bricks-and-clicks e-tailing
business model?
A) Walmart.com
B) JCPenney.com
C) Dell.com
D) Staples.com
Answer: C
Difficulty: Easy
43) The overall retail market in the United States in 2013 was estimated at about:
A) $39 trillion.
B) $3.9 trillion.
C) $390 billion.
D) $39 billion.
Answer: B
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.
Answer: A
45) Which of the following was not able to successfully implement a freemium
business model?
A) Pandora
B) MailChimp
C) Evernote
D) Ning
Answer: D
46) All of the following may lead to a competitive advantage except:
A) less expensive suppliers.
B) better employees.
C) fewer products.
D) superior products.
Answer: C
47) The basic value proposition of community providers is:
A) they offer a fast, convenient one-stop site where users can focus on their most
important concerns and interests.
B) they offer consumers valuable, convenient, time-saving, and low cost
alternatives to traditional service providers.
C) they create a digital electronic environment for buyers and sellers to meet,
agree on a price, and transact.
D) they increase customers' productivity by helping them get things done faster
and more cheaply.
Answer: A
48) All of the following are examples of business-to-business (B2B) business
models except:
A) e-distributors.
B) e-procurement.
C) private industrial networks.
D) e-tailers.
Answer: D
Difficulty: Easy
49) What is the primary revenue model for an e-distributor?
A) sales
B) transaction fee
C) advertising
D) subscription
Answer: A
50) Grainger.com is an example of which of the following business models?

A) B2B service provider
B) exchange
C) e-distributor
D) industry consortia
Answer: C
51) ________ create and sell access to digital electronic markets.
A) E-distributors
B) Portals
C) E-procurement firms
D) Market creators
Answer: C
52) One of the competitive advantages of a B2B service provider is that it can
spread the cost of an expensive software system over many users, achieving
efficiencies referred to as:
A) application efficiencies.
B) network efficiencies.
C) scale economies.
D) network externalities.
Answer: C
53) Over the past decade, the number of exchanges has:
A) greatly increased.
B) diminished sharply.
C) stayed about the same.
D) increased slowly but steadily.
Answer: B
54) Exostar is an example of a(n):
A) private industrial network.
B) exchange.
C) industry consortium.
D) e-distributor.
Answer: C
Difficulty: Easy
55) Which of the following is an unfair competitive advantage?

A) brand name
B) access to global markets
C) lower product prices
D) superior technology
Answer: A
56) The element of a business model that is responsible for making the model
work is:
A) the management team.
B) the organizational structure.
C) the firm's key competitive advantage.
D) the market strategy.
Answer: A
57) eBay uses all of the following business models except:
A) B2C market creator.
B) C2C market creator.
C) content provider.
D) e-commerce infrastructure provider.
Answer: C
58) Your startup firm has developed Web-based note-taking software that allows
participants to create and share virtual notes attached to existing Web pages. You
anticipate marketing your online application to Web development and design
companies. Which of the following revenue models is the most appropriate for
your new company?
A) advertising
B) transaction fee
C) affiliate
D) subscription
Answer: D
59) Which type of investor typically becomes interested in a start-up company
after it has begun generating revenue?
A) incubators
B) angel investors
C) crowdfunders
D) venture capital investors
Answer: D
60) Which of the following features of e-commerce technology changes industry

structure by lowering barriers to entry but greatly expands the market at the same
time?
A) global reach
B) richness
C) interactivity
D) personalization
Answer: A
61) All of the following are business models employed by the music industry
except:
A) subscription.
B) peer-to-peer streaming.
C) download-and-own.
D) cloud streaming.
Answer: B
62) Which of the following is not a primary activity in a firm value chain?
A) inbound logistics
B) finance/accounting
C) operations
D) sales and marketing
Answer: B
63) A ________ coordinates a firm's suppliers, distributors, and delivery firms
with its own production needs using an Internet-based supply chain management
system.
A) value chain
B) value system
C) value web
D) business strategy
Answer: C
64) If you wished to leverage the ubiquitous nature of the Web to differentiate
your product, you would:
A) enable individual customization of the product by consumers.
B) implement a strategy of commoditization.
C) adopt a strategy of cost competition.
D) develop a scope strategy to compete within a narrower market segment.
Answer: A
65) A strategy designed to compete within a narrow market or product segment is

called a ________ strategy.
A) scope
B) differentiation
C) cost
D) focus
Answer: D
66) A(n) ________ is a set of planned activities designed to result in a profit in
the marketplace.
Answer: business model
67) In the ________ revenue model, a Web site that offers users content or
services charges a fee for access to some or all of its offerings.
Answer: subscription
68) The strategy of customer intimacy focuses on developing strong ties with
customers in order to increase ________ costs.
Answer: switching
69) A(n) ________ is a company that sells products and services that are very
similar and in the same market segment.
Answer: direct competitor
70) The use by a company of its competitive advantage to achieve more
advantage in surrounding markets is known as ________.
Answer: leverage
71) A wealthy individual who invests personal funds in a start-up in exchange for
an equity stock in the business is referred to as a(n) ________.
Answer: angel investor
72) The financial services, travel services, and job placement services industries
use the ________ business model.
Answer: transaction broker
Difficulty: Easy
73) In the ________ business model, a Web-based business builds a digital
environment in which buyers and sellers can meet, display products, search for
products, and establish prices.
Answer: market creator
74) Personal funds derived from savings, credit card advances, home equity loans,
and loans from family and friends are examples of ________ that an entrepreneur
may use to get a business off the ground.
Answer: seed capital
75) A(n) ________ marketplace supplies products and services of interest to
particular industries.
Answer: vertical
76) ________ is a social network based on 140-character messages.
Answer: Twitter
77) An industry ________ is an effort to understand and describe the nature of
competition in an industry, the nature of substitute products, the barriers to entry,
and the relative strength of consumers and suppliers.
Answer: structural analysis
78) A(n) ________ is the set of activities performed in an industry or in a firm
that transforms raw inputs into final products and services.
Answer: value chain
79) ________ occurs when there are no differences among products or services
and the only basis for choosing a particular product or service is price.
Answer: Commoditization
80) A(n) ________ strategy is a strategy to compete in all markets around the
globe rather than merely in local, regional, or national markets.

Answer: scope
E-Commerce 2014, 10e (Laudon/Traver)
Chapter 1 The Revolution Continues
1) Retail e-commerce is expected to continue growing at double-digit growth
rates in 2013-2014.
Answer: TRUE
2) Over 50% of the world's population is now online.
Answer: FALSE
3) E-business involves commercial transactions involving an exchange of value
across organizational boundaries.
Answer: FALSE
4) Ubiquity decreases cognitive energy outlays.
Answer: TRUE
5) The fact that e-commerce is conducted on the basis of universal standards
decreases market entry costs for merchants.
Answer: TRUE
6) Price transparency refers to the ability of merchants to segment the market into
groups willing to pay different prices.
Answer: FALSE
7) Cost transparency refers to the ability of consumers to discover the actual costs
merchants pay for products.
Answer: TRUE
8) Customization involves changing a delivered product or service based upon a
consumer's preferences or past purchasing behavior.
Answer: TRUE
9) Web 2.0 describes a set of applications and technologies that encourage and
rely on user- and consumer-generated interactivity and content.
Answer: TRUE
Difficulty: Easy
10) Social e-commerce is the largest type of e-commerce.
Answer: FALSE
Difficulty: Easy
11) E-commerce as we know it today would not exist without the Internet.
Answer: TRUE
Difficulty: Easy
12) The emergence of entrepreneurial social and local firms is one of the
hallmarks of the Consolidation period of e-commerce.
Answer: FALSE
13) The Reinvention period of e-commerce is as much a sociological
phenomenon as it is a technological or business phenomenon.
Answer: TRUE
14) As economists had envisioned, prices of products sold on the Web are
consistently lower than elsewhere, and the online marketplace is characterized by
decreasing price dispersion.
Answer: FALSE
15) The future of e-commerce will include an increase in regulatory activity both
in the United States and worldwide.
Answer: TRUE
Difficulty: Easy
16) Which of the following statements about e-commerce in the United States in
2013 is not true?
A) Mobile e-commerce generates more revenue than social e-commerce.
B) Approximately 155 million Americans are expected to make at least one
purchase online.
C) The amount of data that the average American consumes continues to increase.
D) Growth rates for B2C e-commerce are higher in the United States than in
Europe.
Answer: D
17) In 2013, roughly ________ million people in the United States access the
Internet via tablets.
A) 23
B) 43
C) 123
D) 143
Answer: C
18) Which of the following is not a major business trend in e-commerce in 20132014?
A) Social e-commerce continues to grow.
B) Small businesses and entrepreneurs are hampered by the rising cost of market
entry caused by increased presence of industry giants.
C) Facebook grows to more than 1.1 billion users.
D) Social and mobile advertising begins to challenge search engine marketing.
Answer: B
19) All of the following are major technology trends in e-commerce in 2013-2014
except:
A) cloud computing enables the creation of "big data."
B) apps create a new platform for online marketing and commerce.
C) the mobile computing platform begins to rival the PC platform.
D) real-time advertising becomes a reality with gains in computing power and
speeds.
Answer: A
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.
Answer: A
Difficulty: Easy
21) Which of the following is not a unique feature of e-commerce technology?

A) interactivity
B) social technology
C) global broadcasting
D) richness
Answer: C
22) The integration of video, audio, and text marketing messages into a single
marketing message and consuming experience is an example of which of the
following?
A) richness
B) ubiquity
C) information density
D) personalization
Answer: A
23) Which of the following qualities is least likely to decrease a consumer's
search costs?
A) ubiquity
B) global reach
C) information density
D) richness
Answer: D
24) Which of the following is the best definition of transaction cost?
A) the cost of changing prices
B) the cost of participating in a market
C) the cost of finding suitable products
D) the cost merchants pay to bring their goods to market
Answer: B
25) In 2013, the world's online population was roughly:
A) 250 million.
B) 2.5 billion.
C) 25 billion.
D) 250 billion.
Answer: B
26) Which of the following is not one of the current major social trends in ecommerce in 2013-2014?
A) Concerns about online privacy decline.
B) Controversy over content regulation and controls continues.
C) E-books gain wide acceptance.
D) Internet security continues to decline.
Answer: A
27) Network externalities are related to which of the following features of ecommerce technology?
A) richness
B) interactivity
C) universal standards
D) information density
Answer: C
28) E-commerce technologies have changed the traditional tradeoff between the
richness and reach of a marketing message. Prior to the development of the Web:
A) marketing messages had little richness.
B) the smaller the audience reached, the less rich the message.
C) the larger the audience reached, the less rich the message.
D) richness equaled reach.
Answer: C
29) Which of the following is not an example of a social network?
A) Wikipedia
B) Twitter
C) Pinterest
D) Tumblr
Answer: A
Difficulty: Easy
30) All of the following are major business trends in e-commerce in 2013-2014
except for:
A) the growth of a new app-based online economy.
B) the expansion of the localization of e-commerce.
C) the emergence of a new social e-commerce platform.
D) the eclipse of search engine marketing by the mobile advertising platform.
Answer: D
31) Which type of e-commerce is distinguished by the type of technology used in
the transaction rather 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)
Answer: C
32) Which of the following is a mobile photo-sharing application?
A) WordPress
B) Tumblr
C) Wikipedia
D) Instagram
Answer: D
Difficulty: Easy
33) Which of the following describes the basic Web policy of large firms during
the Invention period?
A) Integrate social networking and mobile platform with Web site marketing.
B) Use the Web to connect with suppliers.
C) Include additional channels to market products.
D) Maintain a basic, static Web site.
Answer: D
34) The size of the B2B market in 2013 is estimated to be around:
A) $470 million.
B) $4.7 billion.
C) $470 billion.
D) $4.7 trillion.
Answer: D
35) Interactivity in the context of e-commerce can be described as the:
A) ability to physically touch and manipulate a product.
B) complexity and content of a message.
C) ability of consumers to create and distribute content.
D) enabling of two-way communication between consumer and merchant.
Answer: D
36) Which of the following statements about the Web is not true?
A) It is the technology upon which the Internet is based.
B) It was developed in the early 1990s.
C) It provides access to pages written in HTML.
D) It provides access to Web pages that incorporate graphics, sound, and
multimedia.
Answer: A
37) In 2013, there were an estimated ________ Internet hosts.
A) 1 million
B) 10 million
C) 100 million
D) 1 billion
Answer: D
38) All of the following can be considered a precursor to e-commerce except:
A) DNS.
B) Baxter Healthcare's remote order entry system.
C) the French Minitel.
D) Electronic Data Interchange.
Answer: A
39) In the B2C arena, ________ was the first truly large-scale digitally enabled
transaction system.
A) Telex
B) the Baxter Healthcare system
C) the French Minitel
D) EDI
Answer: C
40) E-commerce can be said to have begun in:
A) 1983.
B) 1985.
C) 1995.
D) 2001.
Answer: C
Difficulty: Easy
41) Business-to-consumer (B2C) e-commerce in the United States:

A) has grown at double-digit rates between 2010 and 2013.
B) is expected to account for about $40 billion in total sales in 2013.
C) constitutes over 30% of the overall U.S. retail market.
D) is growing more slowly as it confronts its own fundamental limitations.
Answer: A
42) Which of the following is not true about the use of apps?
A) The average U.S. consumer spends about 2 hours a day using apps.
B) Users spend more time using apps than they do using desktops or mobile Web
sites.
C) Apps are easier to control and monetize than Web sites.
D) Google can use Web crawlers to index apps.
Answer: D
43) All of the following are issues facing Pinterest except:
A) copyright infringement.
B) inability to attract users.
C) competition.
D) spam.
Answer: B
44) Which of the following is a characteristic of e-commerce during the Invention
period?
A) mobile technology
B) earnings and profit emphasis
C) distintermediation
D) extensive government surveillance
Answer: C
45) All of the following are characteristics of Web 2.0 sites and applications
except:
A) they are inherently highly interactive.
B) they rely on mobile access to the Web.
C) they tend to rely on user-generated content.
D) they present marketers with extraordinary opportunities for targeted marketing
and advertising.
Answer: B
46) Which of the following is not a characteristic of a perfect competitive market?

A) Price, cost, and quality information are equally distributed.
B) A nearly infinite set of suppliers compete against one another.
C) Customers have access to all relevant information worldwide.
D) It is highly regulated.
Answer: D
47) All of the following were visions of e-commerce expressed during the early
years of e-commerce except:
A) a nearly perfect competitive market.
B) friction-free commerce.
C) disintermediation.
D) fast follower advantage.
Answer: D
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.
Answer: A
49) The early years of e-commerce were driven by all of the following factors
except:
Answer: A
50) The early years of e-commerce are considered:

A) the most promising time in history for the successful implementation of first
mover advantages.
B) an economist's dream come true, where for a brief time consumers had access
to all relevant market information and transaction costs plummeted.
C) a stunning technological success as the Internet and the Web increased from a
few thousand to billions of e-commerce transactions per year.
D) a dramatic business success as 85% of dot-coms formed since 1995 became
flourishing businesses.
Answer: C
51) Which of the following best describes the early years of e-commerce?
A) They were a technological success but a mixed business success.
B) They were a technological success but a business failure.
C) They were a technological failure but a business success.
D) They were a mixed technological and business success.
Answer: A
52) The early years of e-commerce were driven by all of the following factors
except:
Answer: A
53) Which of the following is a characteristic of the Reinvention phase of ecommerce?
A) massive proliferation of dot-com start-ups
B) widespread adoption of broadband networks
C) rapid growth of search engine advertising
D) widespread adoption of consumer mobile devices
Answer: D
54) Which of the following is a characteristic of the Consolidation phase of ecommerce?
A) predominance of pure online strategies
B) emphasis on revenue growth versus profits
C) first mover advantages
D) shift to a business-driven approach
Answer: D
55) Which of the following is not true regarding e-commerce today?

A) Economists' visions of a friction-free market have not been realized.
B) Consumers are less price-sensitive than expected.
C) There remains considerable persistent price dispersion.
D) The market middlemen disappeared.
Answer: D
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.
Answer: C
57) Which of the following types of merchants has the highest share of retail
online sales?
A) virtual (Web only)
B) catalog/call center
C) retail chain
D) consumer brand manufacturer
Answer: A
58) Retail chains account for around ________ % of online retail firm revenues.
A) 15
B) 35
C) 75
D) 95
Answer: B
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
14% a year through 2017.
B) the first movers from the early years of e-commerce will retain or increase
their market share as 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.
Answer: A
60) Which of the following is the top-selling online retail category?

A) apparel/accessories
B) computers/electronics
C) mass merchant/department stores
D) office supplies
Answer: B
61) Which of the following is the top online retailer ranked by online sales?
A) Apple
B) Amazon
C) Staples
D) Walmart
Answer: B
Difficulty: Easy
62) Above all, e-commerce is a ________ phenomenon.
A) technology-driven
B) finance-driven
C) sociological
D) government-driven
Answer: A
63) Which business application is associated with the technological development
of local area networks and client/server computing?
A) transaction automation (e.g., payroll)
B) desktop automation (e.g., word processing)
C) industrial system automation (e.g., supply chain management)
D) workgroup automation (e.g., document sharing)
Answer: D
64) Which of the following is one of the three primary societal issues related to ecommerce?
A) liability
B) anonymity
C) equity
D) individual privacy
Answer: D
65) Which of the following statements is not true?

A) No one academic perspective dominates research about e-commerce.
B) Information systems researchers take a purely technical approach to ecommerce.
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 business firms can exploit the Internet to achieve more efficient business
operations.
Answer: B
66) The costs incurred by merchants in having to change product prices (such as
the costs of reentering prices into computer systems) are referred to as ________
costs.
Answer: menu
67) ________ refers to any disparity in relevant market information among parties
in a transaction.
Answer: Information asymmetry
AACSB: Reflective thinking
68) A(n) ________ extends the marketplace beyond traditional boundaries.
Answer: marketspace
Difficulty: Easy
69) The total number of users or customers an e-commerce business can obtain is
a measure of its ________.
Answer: reach
70) ________ refers to the complexity and content of a message.
Answer: Richness
71) The targeting of marketing messages to specific individuals by adjusting the
message to a person's name, interests, and past purchases is called ________.
Answer: personalization
72) The ________ was the original "killer app" that made the Internet
commercially interesting and extraordinarily serviceable.
Answer: World Wide Web, Web
73) E-commerce is available just about everywhere and anytime. This is known as
________.
Answer: ubiquity
74) ________ refers to the displacement of market middlemen.
Answer: Disintermediation
75) In ________ commerce, information is equally distributed, transaction costs
are low, prices can be dynamically adjusted to reflect actual demand,
intermediaries decline, and unfair competitive advantages are eliminated.
Answer: friction-free
76) A(n) ________ occurs when everyone in a group receives value because all
participants use the same tool or product.
Answer: network effect
77) A firm that is first to market in a particular area and that moves quickly to
gather market share is referred to as a(n) ________.
Answer: first mover
78) The first evolutionary phase of e-commerce, from 1995 to 2000, characterized
as technology-driven and ungoverned, was a period of ________.
Answer: innovation, invention
79) An economist is most likely to be interested in a(n) ________, rather than
technical, approach to studying e-commerce.
Answer: behavioral
80) ________ is the world's largest online consumer-generated video posting site.
Answer: YouTube, YouTube.com
Difficulty: Easy
ECommerce2014,10e(Laudon/Traver)Chapter3E
commerceInfrastructure:TheInternet,Web,andMobile
Platform
1) Packet switching requires a dedicated circuit. Answer:
FALSEDifficulty: EasyAACSB: Information technology
2) Transmission Control Protocol is the protocol that
provides the Internet addressing scheme. Answer: FALSE
Difficulty: ModerateAACSB: Information technology
3) IPv6 provides for 64-bit IP addresses. Answer: FALSE
4) Tablet computers rely on the Internet cloud for processing
and storage. Answer: TRUEDifficulty: ModerateAACSB:
Information technology
5) Google Apps is an example of cloud computing. Answer:
TRUEDifficulty: ModerateAACSB: Information technology
6) HTML is the Internet protocol used to transfer Web pages.
Answer: FALSEDifficulty: EasyAACSB: Information
technology
7) The major hubs in the United States where the Internet
backbone intersects with regional and local networks are now
commonly referred to as Internet Exchange Points (IXPs).
Answer: TRUEDifficulty: Moderate
8) T1 and T3 refer to international telephone standards for
digital communication. Answer: TRUEDifficulty: Easy
1
9) One of Internet2's projects is a nationwide 100 gigabit-persecond network. Answer: TRUEDifficulty: Moderate
10) WLAN-based Internet access derives from the same
technological foundations as telephone-based wireless
Internet access.Answer: FALSEDifficulty: Moderate
AACSB: Use of IT
11) Every device connecting to the Internet must have a
unique address. Answer: TRUEDifficulty: ModerateAACSB:
12) XML is used to format the structure and style of a Web
page. Answer: FALSEDifficulty: ModerateAACSB:
13) FTP is a protocol used to transfer files to and from a
server. Answer: TRUEDifficulty: ModerateAACSB:
14) Internet access providers typically provide faster
download speeds than upload speeds to consumers.Answer:
TRUEDifficulty: Moderate
15) RSS is an XML format that allows users to have digital
content automatically sent to their computers over the
Internet.Answer: TRUEDifficulty: Easy
16) During which period of time did the Institutionalization
phase of Internet development take place?A) 1950-1960B)
1961-1974
C) 1975-1995D) 1995-through the presentAnswer: C
Difficulty: ModerateAACSB: Application of knowledge
2
17) Which of the following occurred during the

Commercialization phase of Internet development?A) The
fundamental building blocks of the Internet were realized in
actual hardware and software.B) Large mainframes on
different college campuses were linked.C) The Domain
Name System was introduced.D) NSF privatized the
operation of the Internet's backbone.Answer: DDifficulty:
DifficultAACSB: Application of knowledge
18) During which phase of the development of the Internet
was ARPANET invented? A) Commercialization phaseB)
Institutional phaseC) Innovation phase
D) Consolidation phaseAnswer: BDifficulty: Difficult
19) Which of the following is notone of the basic
technological foundations of the Internet? A) client/server
computingB) TracertC) TCP/IP communications protocol
D) packet-switching hardware Answer: BDifficulty:
ModerateAACSB: Information technology
20) The process of slicing digital messages into parcels,
sending them along different communication paths as they
become available, and reassembling them at the destination
point is called:A) routing.B) the Transmission Control
Protocol.C) packet switching.D) the File Transfer Protocol.
Answer: CDifficulty: ModerateAACSB: Information
technology
3
21) Which of the following is the core communications

protocol for the Internet? A) TelnetB) FTPC) TCP/IP
D) SSLAnswer: CDifficulty: ModerateAACSB: Information
technology
22) The Transport Layer of TCP/IP is responsible for which
of the following?A) placing packets on and receiving them
from the network mediumB) addressing, packaging, and

routing messagesC) providing communication with the
application by acknowledging and sequencing the packets to
and from the application
D) providing a variety of applications with the ability to
access the services of the lower layers Answer: CDifficulty:
DifficultAACSB: Information technology
23) The Internet Layer of TCP/IP is responsible for which of
the following?A) placing packets on and receiving them from
the network mediumB) addressing, packaging, and routing
messagesC) providing communication with the application
by acknowledging and sequencing the packets to and from
the application
D) providing a variety of applications with the ability to
access the services of the lower layers Answer: BDifficulty:
DifficultAACSB: Information technology
24) Which of the following allows users to communicate
visually and aurally in real-time, and uses high-resolution
monitors to simulate the presence of participants?A)
telepresenceB) videoconferencing
C) VOIPD) IP telephonyAnswer: ADifficulty: EasyAACSB:
25) An IPv4 address is expressed as a:A) 32-bit number that
appears as a series of four separate numbers separated by
semicolons. B) 64-bit number that appears as a series of four
separate numbers separated by semicolons. C) 64-bit number
that appears as a series of four separate numbers separated by
periods.D) 32-bit number that appears as a series of four
separate numbers separated by periods. Answer: DDifficulty:
4
26) The natural language convention used to represent IP

addresses is called the: A) uniform resource locator system.
B) Internet protocol addressing schema.C) domain name

system.
D) assigned numbers and names (ANN) system. Answer: C
27) The addresses used by browsers to identify the location
of content on the Web are called: A) domain names.B)
uniform resource locators.C) IP addresses.
D) file paths.Answer: BDifficulty: ModerateAACSB:
28) Which of the following organizations coordinates the
Internet's systems of unique identifiers, such as IP addresses
and top-level domain systems?A) IETFB) IAB
C) W3CD) ICANNAnswer: CDifficulty: ModerateAACSB:
Application of knowledge
29) Which of the following is notan advantage of
client/server computing over centralized mainframe
computing?A) It is easy to expand capacity by adding servers
and clients.B) Each client added to the network increases the
network's overall capacity and transmission speeds.
C) Client/server networks are less vulnerable, in part because
the processing load is balanced over many powerful smaller
computers rather than concentrated in a single huge
computer.D) There is less risk that a system will completely
malfunction because backup or mirror servers can pick up the
slack if one server goes down.Answer: BDifficulty: Difficult
5
30) ________ is a model of computing in which firms and

individuals obtain computing power and software
applications over the Internet, rather than purchasing and
installing it on their own computers.A) Client/server
computing
B) P2P computingC) Mobile computingD) Cloud computing

Answer: DDifficulty: DifficultAACSB: Information
technology
31) Which of the following protocols is used to send mail to
a server? A) SMTPB) FTPC) HTTP
D) SSLAnswer: ADifficulty: ModerateAACSB: Information
technology
32) Where does TSL operate within TCP/IP?A) between the
Internet Layer and the Transport LayerB) between the
Transport Layer and the Application LayerC) between the
Network Interface Layer and the Transport Layer D) between
the Internet Layer and the Application Layer Answer: B
Difficulty: DifficultAACSB: Information technology
33) A(n) ________ is an audio presentation stored as an
audio file and posted to the Web for users to download.A)
podcastB) RSS subscription
C) weblogD) widgetAnswer: ADifficulty: EasyAACSB:
6
34) ________ is one of the original Internet services and is

used to transfer files from a server computer to a client
computer and vice versa.A) SMTPB) FTP
C) HTTPD) SSLAnswer: BDifficulty: ModerateAACSB:
35) ________ is a utility program that allows you to check
the connection between your client and a TCP/IP network.A)
PingB) Telnet
C) TracertD) FingerAnswer: ADifficulty: ModerateAACSB:
36) ________ is a unique virtual laboratory for exploring
future internets at scale, to promote innovations in network
science and technologies.A) Internet of ThingsB) Internet2

C) ARPANETD) GENIAnswer: DDifficulty: Difficult
37) TCP/IP operates in which layer of Internet architecture?
A) Network Technology Substrate layerB) Middleware
Services layerC) Transport Services and Representation
Standards layer D) Applications layer
Answer: CDifficulty: ModerateAACSB: Information
technology
38) An Internet-enabled media player would run in which
layer of Internet architecture? A) Network Technology
Substrate layerB) Middleware Services layerC) Transport
Services and Representation Standards layer
D) Applications layerAnswer: DDifficulty: Moderate
7
39) The layer of Internet architecture that ties the applications

to the communications network and includes such services as
security and authentication is called the:A) Network
Technology Substrate layer.B) Middleware Services layer.
C) Transport Services and Representation Standards layer. D)
Applications layer.Answer: BDifficulty: Moderate
40) The backbone of the Internet is formed by: A) Internet
Exchange Points (IXPs).B) Network Service Providers
(NSPs).C) Internet Service Providers (ISPs).
D) Metropolitan Area Exchanges (MAEs). Answer: B
41) When talking about the physical elements of the Internet,
the term redundancyrefers to: A) transmitting multiple
copies of a single packet to safeguard against data loss.B) the
use of tiered high-speed switching computers to connect the

backbone to regional and local networks.
C) delays in messages caused by the uneven flow of
information through the network.D) multiple duplicate
devices and paths in a network built so that data can be
rerouted if a breakdown occurs.Answer: DDifficulty:
42) Which source of e-commerce revenues has grown from
nearly zero prior to 2007 to over $38 billion in 2013?A)
search engine advertisingB) mobile retail purchases
C) streaming video subscriptions D) social network
advertising Answer: BDifficulty: Moderate
8
43) Local area networks that operate within a single

organization that leases access to the Web directly from
regional and national carriers are called:A) wide area
networks.B) extranets.
C) campus area networks.D) private exchanges.Answer: C
44) The ________ is a consortium of corporations,
government agencies, and nonprofit organizations that
monitors Internet policies and practices.A) Internet
Engineering Steering Group (IESG)B) World Wide Web
Consortium (W3C)
C) Internet Engineering Task Force (IETF) D) Internet
Society (ISOC)Answer: DDifficulty: Moderate
45) The ________ helps define the overall structure of the
Internet. A) IABB) IESGC) W3C
D) ITUAnswer: ADifficulty: ModerateAACSB: Application
of knowledge
46) Which of the following is nota limitation of the current
Internet?A) the continued reliance on cables and wires for
connectivityB) limited bandwidth, which causes congestion
and cannot adequately handle video and voice trafficC)
architectural restrictions, which stipulate that numerous
requests for the same file must each be answered
individually, slowing network performanceD) the difficulty
in expanding capacity by adding servers and clientsAnswer:
DDifficulty: DifficultAACSB: Information technology
9
47) Which of the following is nottrue about the mobile

platform?A) Most smartphones use Microsoft's operating
system, Windows Mobile. B) The number of cell phones
worldwide exceeds the number of PCs.C) About a third of
the world's cell phones are smartphones.D) Unlike PCs,
smartphones do not need fans.Answer: ADifficulty: Difficult
48) Which of the following statements about fiber-optic cable
is nottrue? A) It consists of twelve or sixteen strands of
glass.B) It is thinner and lighter than coaxial or twisted pair
cable.C) It enables better data security than coaxial cable.
D) Telecommunications firms have made substantial
investments in cross-country fiber optic systems in the last
decade.Answer: ADifficulty: Moderate
49) The model of computing in which firms and individuals
obtain computing power and software over the Internet is
called ________ computing.A) mobileB) mainframe
C) client/serverD) cloudAnswer: DDifficulty: EasyAACSB:
50) Which of the following technologies has enabled the
Internet to grow exponentially to support millions of users,

without overloading the network architecture?A) fiber optics
B) Wi-Fi
C) IPv6D) client/server networking Answer: DDifficulty:
51) The major technologies used with wireless local area
networks are: A) Wi-Fi and Bluetooth.B) Wi-Fi and WiMax.
C) Bluetooth and 3G.
D) WiMax and 3G.Answer: ADifficulty: ModerateAACSB:
10
52) Akamai offers all of the following services except: A)

instant messaging.B) targeted advertising.C) security
services.
D) global traffic management. Answer: ADifficulty:
ModerateAACSB: Application of knowledge
53) Which of the following is a high-speed, medium-range,
broadband wireless metropolitan area network?A) Wi-FiB)
WiMAX
C) BluetoothD) ZigBeeAnswer: BDifficulty: Difficult
54) Siri is a type of:A) intelligent personal assistant. B)
widget.C) gadget.D) social network.Answer: ADifficulty:
55) The first Web browser to make it possible to view
documents on the Web with colored background, images, and
animations was:A) Netscape Navigator.B) Mosaic.
C) Mozilla.D) Internet Explorer.Answer: BDifficulty:
11
56) In the address http://www.company.com/clients.html,

which of the following is the top-level domain?A) .comB)
company.com
C) wwwD) httpAnswer: ADifficulty: ModerateAACSB:
57) You could expect to find all of the following services in a
Web server software package except:A) security services.B)
FTP.
C) data capture.D) an RSS aggregator.Answer: DDifficulty:
58) Which of the following is currently the most popular Web
browser? A) Internet ExplorerB) NetscapeC) Chrome
D) FirefoxAnswer: ADifficulty: ModerateAACSB:
59) The concept behind document formatting had its roots in
which of the following? A) XMLB) SGMLC) HTML
D) GMLAnswer: DDifficulty: ModerateAACSB:
60) Which of the following is a Web application that enables
Internet users to communicate with each other, although not
in real time?A) online chatB) online forum
C) IMD) VoIPAnswer: BDifficulty: EasyAACSB:
12
61) Which of the following is a Web 2.0 service or

application? A) wikisB) e-mailC) IM
D) online forumsAnswer: ADifficulty: ModerateAACSB:
62) A(n) ________ is a Web application that allows users to
easily add and edit content on a Web page.A) wikiB) podcast
C) blogD) RSS feedAnswer: ADifficulty: ModerateAACSB:

63) The protocol that enables the transmission of voice and
other forms of audio communication over the Internet is
called:A) VoIP.B) IPTP.
C) VTP.D) IP.Answer: ADifficulty: ModerateAACSB:
64) All of the following are characteristics of HTML5
except:A) a video element that replaces plug-ins such as
Flash, QuickTime, and RealPlayer. B) use of CSS3.C) ability
to access built-in functionality of mobile devices, such as
GPS and swiping. D) support for digital rights management.
Answer: DDifficulty: ModerateAACSB: Information
technology
65) All of the following are true about iPhone apps except:A)
They are distributed through Apple's App Store.B) They are
cross-platform, open-source applications.C) They were
estimated to generate over $1 billion in 2013.D) Apple's goal
of offering apps is to increase retail sales of iPhones, iPads,
and iPods. Answer: B
13
66) Also known as the Industrial Internet, the ________

describes the use of Internet technologies and networking to
enable the multitudes of nontraditional devices that are
equipped with data-generating sensors to connect to the
Internet.Answer: Internet of ThingsDifficulty: Moderate
67) Specialized computers that interconnect the thousands of
computers that make up the Internet in order to transmit
message parcels along available communication paths and on
to their destinations are called ________.Answer: routers
68) A set of rules for transferring data is called a(n)

________. Answer: protocolDifficulty: ModerateAACSB:
69) TCP/IP is divided into four separate ________, each
handling a different aspect of the communication problem.
Answer: layersDifficulty: Easy
70) ________ are central directories that list all domain
names currently in use for specific domains.Answer: Root
serversDifficulty: Difficult
71) A small application that you embed in a Web page in
order to include content and functionality from a different
Web site is called a(n) ________.Answer: widgetDifficulty:
Moderate
72) ________ is a utility program that allows you to track the
path of a message you send from your client to a remote
computer on the Internet.Answer: TracertDifficulty:
Moderate
14
73) A TCP/IP network located within a single organization

for the purposes of communication and information
processing is called a(n) ________.Answer: intranet
74) ________ refers to delays in messages caused by the
uneven flow of information packets through the network.
Answer: LatencyDifficulty: Moderate

75) ________ is a way of formatting pages with embedded
links that connect documents to one another and that also link
pages to other objects.Answer: HypertextDifficulty:
Moderate
76) An iPad is an example of a(n) ________ computer.
Answer: tabletDifficulty: ModerateAACSB: Information
technology
77) ________ software refers to the software that enables a
computer to deliver Web pages written in HTML to client
computers on a network that request this service by sending
an HTTP request.Answer: Web serverDifficulty: Moderate
78) Computing devices attached to the Internet that are
capable of making HTTP requests and displaying HTML
pages are referred to as ________.Answer: Web clients
79) Outside of e-mail, using a(n) ________ is the most
common online daily activity. Answer: search engine
80) A(n) ________ is a personal Web page of chronological
entries created by an individual or corporation to
communicate with readers.Answer: blogDifficulty: Easy

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1

All of the following are attributes of personalized marketing except:

b. participants have similar backgrounds.

c. independence among participants.

d. rule-based data mining

d. a tiny graphics file embedded in an e-mail or Web page.

d. It enables worldwide customer service and marketing communications.

d. The average blog has a readership of slightly more than 1.

Marks for this submission: 0/1.

b. viral marketing (p n l A nh))

Choose one answer.

b. direct reference group.

a. inability to see and touch before buying

b. difficulty of returning products

Choose one answer.

d. rule-based data mining

b. sending instant messages

a. Brands introduce market inefficiencies for consumers.

b. Brands reduce consumer risk and uncertainty in a crowded marketplace.

Choose one answer.

a. It is clearly different than the dial-up audience.

a. purchase price was low.

c. It is difficult to convert free customers into paying customers.

Marks for this submission: 1/1.

Choose one answer.

Choose one answer.

Choose one answer.

Choose one answer.

Choose one answer.

Choose one answer.

a. checking the weather

Which of the following is an example of "pull" advertising?

Which of the following is not one of the current

Which of the following advertising messages is a

The amount spent on online advertising in 2012

Which of the following is not one of the

Which of the following online advertising formats

Which of the following online advertising formats

Which of the following forms of online

The size of a leaderboard is:

If you want to determine the size of your Web

Which of the following types of display ads is 160

All of the following statements about interstitials

Which of the following is not one of the four main

Search engine advertising expenditures in 2012

Which of the following is not true about search

Research studies have shown that viewers scan

Which of the following is not a practice that

A Crayola arts-and-crafts column on a parenting

A typical response rate for an e-mail campaign

The percentage of all e-mail that is spam was

All of the following statements about CAN-SPAM

CAN-SPAM imposes fines of ________ for each

Direct e-mail marketing refers to marketing emails sent to:

Promoted Trends is an example of which of the

Which of the following generated the most social

Axe's posting of video ads online that were

Impressions are a measure of the:

View-through rate measures the ________

Hits are a measure of the:

CTR is a measure of the:

Which of the following measures the average

Acquisition rate is a measure of the:

Recency refers to the: