Chapter 1 The Revolution Is Just Beginning41) In 2015, roughly ________ million people in the United States

accessed the Internet via

tablets.
A) 59
B) 94
C) 159
D) 194
Answer: C
Difficulty: Difficult
AACSB: Information technology
LO: 1.4: Understand the evolution of e-commerce from its early years to today
41) In 2015, roughly ________ million people in the United States accessed the Internet via
tablets.
A) 59
B) 94
C) 159
D) 194
Answer: C
Difficulty: Difficult
AACSB: Information technology
LO: 1.4: Understand the evolution of e-commerce from its early years to today
41) In 2015, roughly ________ million people in the United States accessed the Internet via
tablets.
A) 59
B) 94
C) 159
D) 194
Answer: C
Difficulty: Difficult
AACSB: Information technology
LO: 1.4: Understand the evolution of e-commerce from its early years to today.
41) In 2015, roughly ________ million people in the United States accessed the Internet via
tablets.
A) 59
B) 94
C) 159
D) 194
Answer: C
Difficulty: Difficult
AACSB: Information technology
LO: 1.4: Understand the evolution of e-commerce from its early years to today.
41) In 2015, roughly ________ million people in the United States accessed the Internet via
tablets.
A) 59
B) 94
C) 159
D) 194
Answer: C
Difficulty: Difficult
AACSB: Information technology
LO: 1.4: Understand the evolution of e-commerce from its early years to today
41) In 2015, roughly ________ million people in the United States accessed the Internet via
tablets.
A) 59
B) 94
C) 159
D) 194
Answer: C
Difficulty: Difficult
AACSB: Information technology
LO: 1.4: Understand the evolution of e-commerce from its early years to today
41) In 2015, roughly ________ million people in the United States accessed the Internet via
tablets.
A) 59
B) 94
C) 159
D) 194
Answer: C
Difficulty: Difficult
AACSB: Information technology
LO: 1.4: Understand the evolution of e-commerce from its early years to today
21) Ubiquity lowers the cognitive energy required to transact in a marketspace.
Answer: TRUE
Difficulty: Moderate
AACSB: Analytical thinking
LO: 1.2: Identify and describe the unique feature of e-commerce technology and discuss their
business significance.
21) Ubiquity lowers the cognitive energy required to transact in a marketspace.
Answer: TRUE
Difficulty: Moderate
AACSB: Analytical thinking
LO: 1.2: Identify and describe the unique feature of e-commerce technology and discuss their
business significance.
21) Ubiquity lowers the cognitive energy required to transact in a marketspace.
Answer: TRUE
Difficulty: Moderate
AACSB: Analytical thinking
LO: 1.2: Identify and describe the unique feature of e-commerce technology and discuss their
business significance.
21) Ubiquity lowers the cognitive energy required to transact in a marketspace.
Answer: TRUE
Difficulty: Moderate
AACSB: Analytical thinking
LO: 1.2: Identify and describe the unique feature of e-commerce technology and discuss their
business significance.
21) Ubiquity lowers the cognitive energy required to transact in a marketspace.
Answer: TRUE
Difficulty: Moderate
AACSB: Analytical thinking
LO: 1.2: Identify and describe the unique feature of e-commerce technology and discuss their
business significance.
21) Ubiquity lowers the cognitive energy required to transact in a marketspace.
Answer: TRUE
Difficulty: Moderate
AACSB: Analytical thinking
LO: 1.2: Identify and describe the unique feature of e-commerce technology and discuss their
business significance.
Chapter 1 The Revolution Is Just Beginning
1) 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
2) Which of the following is an example of e-business?
A) Amazon's inventory control system
B) the Amazon.com Web site
C) an Amazon mobile app
D) Amazon's Pinterest page
Answer: A
3) Which of the following terms can be considered synonymous with the term e-commerce?
A) e-business
B) digital commerce
C) the Internet
D) the Web
Answer: B
4) The term e-commerce refers to the digital enabling of transactions and processes involving an
exchange of value across organizational boundaries.
Answer: TRUE
5) E-commerce and e-business systems blur together at the business firm boundary, at the point
at which internal business systems link up with suppliers or customers.
Answer: TRUE
7) Which of the following is not a unique feature of e-commerce technology?
A) interactivity
B) social technology
C) information asymmetry
D) richness
Answer: C
8) Which of the following features of e-commerce technology enables merchants to market and
sell "complex" goods and services to consumers via marketing messages that can integrate video,
audio, and text?
A) richness
B) ubiquity
C) information density
D) personalization
Answer: A
9) Which of the following features of e-commerce technology allows users to participate in the
creation of online content?
A) ubiquity
B) global reach
C) information density
D) social technology
Answer: D
10) Which of the following is the best definition of transaction cost?
A) the expense of changing national or regional prices
B) the cost of participating in a market
C) the cost of finding suitable products in the market
D) the cost merchants pay to bring their goods to market
Answer: B
11) In 2015, the world's online population was estimated to be around:
A) 310 million.
B) 3.1 billion.
C) 31 billion.
D) 310 billion.
Answer: B
12) Which of the following features of e-commerce technology is related to the concept of
network externalities?
A) richness
B) interactivity
C) universal standards (tiêu chuẩn toàn cầu)
D) information density
Answer: C
13) Which of the following statements is true about the traditional trade off 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 was unrelated to reach.
Answer: C
14) Interactivity in the context of e-commerce provides which of the following functionalities?
A) the ability to physically touch and manipulate a product
B) complexity and content of a message
C) the ability of consumers to create and distribute content
D) the enabling of two-way communication between consumer and merchant
Answer: D
15) The costs incurred by merchants in having to change product prices (such as the costs of
re-entering prices into computer systems) are referred to as which of the following?
A) subscription costs
B) fixed costs
C) menu costs
D) variable costs
Answer: C
16) Which of the following refers to any disparity in relevant market information among parties
in a transaction?
A) information asymmetry (bất đối xứng thông tin)
B) unfair competitive advantage
C) imperfect competition
D) dynamic pricing
Answer: A
17) Which of the following is a physical place you visit in order to transact?
A) marketspace
B) marketplace
C) social network
D) the Internet
Answer: B
18) The total number of users or customers an e-commerce business can obtain is a measure of
which of the following?
A) ubiquity
B) interactivity
C) reach
D) information density
Answer: C
19) Which of the following refers to the complexity and content of a message?
A) richness
B) reach
C) information density
D) interactivity
Answer: A
20) E-commerce is available just about everywhere and anytime. This is known as ________.
A) richness
B) information density
C) ubiquity
D) reach
Answer: C
21) Ubiquity lowers the cognitive energy required to transact in a marketspace.
Answer: TRUE
2) The fact that e-commerce is conducted on the basis of universal standards increases search
costs for consumers.
Answer: FALSE
Difficulty: Difficult
AACSB: Application of knowledge
LO: 1.2: Identify and describe the unique feature of e-commerce technology and discuss their
business significance.
2) The fact that e-commerce is conducted on the basis of universal standards increases search
costs for consumers.
Answer: FALSE
Difficulty: Difficult
AACSB: Application of knowledge
LO: 1.2: Identify and describe the unique feature of e-commerce technology and discuss their
business significance.
22) The fact that e-commerce is conducted on the basis of universal standards increases search
costs for consumers.
Answer: FALSE
2) The fact that e-commerce is conducted on the basis of universal standards increases search
costs for consumers.
Answer: FALSE
Difficulty: Difficult
AACSB: Application of knowledge
LO: 1.2: Identify and describe the unique feature of e-commerce technology and discuss their
business significance.
2) The fact that e-commerce is conducted on the basis of universal standards increases search
costs for consumers.
Answer: FALSE
Difficulty: Difficult
AACSB: Application of knowledge
LO: 1.2: Identify and describe the unique feature of e-commerce technology and discuss their
business significance.
2) The fact that e-commerce is conducted on the basis of universal standards increases search
costs for consumers.
Answer: FALSE
Difficulty: Difficult
AACSB: Application of knowledge
LO: 1.2: Identify and describe the unique feature of e-commerce technology and discuss their
business significance.
23) Universal standards make price discovery more costly, slower, and less accurate.
Answer: FALSE
24) Cost transparency refers to the ease with which consumers can find out the variety of prices
in a market.
Answer: FALSE
22) The fact that e-commerce is conducted on the basis of universal standards increases search
costs for consumers.
Answer: FALSE
23) Universal standards make price discovery more costly, slower, and less accurate.
Answer: FALSE
24) Cost transparency refers to the ease with which consumers can find out the variety of prices
in a market.
Answer: FALSE
25) Personalization involves targeting marketing messages to specific individuals by adjusting
the message based upon a consumer's preferences or past purchasing behavior.
Answer: TRUE
26) E-commerce technologies provide a unique, many-to-many model of mass communication.
Answer: TRUE
30) 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
31) Which of the following is an example of social e-commerce?
A) Amazon
B) eBay
C) Wikipedia
D) Facebook
Answer: D
32) Business-to-consumer (B2C) e-commerce in the United States:
A) has grown at double-digit rates between 2010 and 2015.
B) has less revenue than C2C e-commerce.
C) now constitutes over 50% of the overall U.S. retail market.
D) is growing more slowly as it confronts its own fundamental limitations.
Answer: A
33) Which of the following is not true about the use of apps?
A) The average U.S. consumer spends over two hours a day using apps.
B) Users still spend less time using apps than they do using desktops or mobile Web sites.
C) Apps are easier to control and monetize than Web sites.
D) Around 280 million people worldwide launch a smartphone app more than 60 times a day.
Answer: B
34) Which of the following is an example of an on-demand service company?
A) YouTube
B) Airbnb
C) Tumblr
D) Facebook
Answer: B
35) Which of the following is an example of B2B e-commerce?
A) Airbnb
B) Facebook
C) Groupon
D) Go2Paper
Answer: B
36) Which of the following is an example of C2C e-commerce?
A) Amazon
B) Groupon
C) Craigslist
D) Go2Paper
Answer: C
37) All of the following are examples of social networks except:
A) Instagram.
B) Twitter.
C) Y Combinator.
D) Pinterest.
Answer: C
38) B2B e-commerce is the largest type of e-commerce.
Answer: TRUE
40) Which of the following statements about e-commerce in the United States in 2015 is not
true?
A) Social e-commerce generates more revenue than mobile e-commerce.
B) About 200 million U.S. consumers use mobile apps.
C) On-demand service firms are fueling the growth of local e-commerce.
D) Growth rates for retail e-commerce are higher in Europe than in the United States.
Answer: A
41) In 2015, roughly ________ million people in the United States accessed the Internet via
tablets.
A) 59
B) 94
C) 159
D) 194
Answer: C
42) Which of the following is not a major business trend in e-commerce in 2015-2016?
A) Mobile e-commerce continues to grow.
B) Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by
42) Which of the following is not a major business trend in e-commerce in 2015-2016?
A) Mobile 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) On demand service companies garner multi-billion dollar valuations.
D) Mobile and social advertising platforms begin to challenge search engine marketing.
Answer: B
43) Which of the following is not a major technology trend in e-commerce in 2015-2016?
A) Mobile messaging services become popular with smartphone users.
B) Firms are turning to business analytics to make sense out of Big Data.
C) The mobile computing and communications platform creates an alternative platform for
online transactions, marketing, advertising, and media viewing.
D) Computing and networking component prices increase dramatically.
Answer: D
44) All of the following are major social trends in e-commerce in 2015-2016 except for:
A) concerns about the flood of temporary, poorly paid jobs without benefits being generated by
on-demand service companies.
B) the continuing conflict over copyright management and control.
C) the refusal of online retailers to accept taxation of Internet sales.
D) the growth of government surveillance of Internet communications.
Answer: C
45) Which of the following is not a major business trend in e-commerce in 2015-2016?
A) the growth of a mobile app ecosystem
B) the weakening revenues of B2B e-commerce
C) the emergence of social e-commerce
D) the growth of the on-demand service firms
Answer: B
46) Which of the following describes the basic Web policy of large firms during the Invention
period?
A) Integrate social networks and the mobile platform with Web site marketing.
B) Emphasize the necessity for the Web to generate profits.
C) Use the Web to sell complex goods and services online.
D) Maintain a basic, static Web site depicting the firm's brand.
Answer: D
47) The size of the B2B market in 2015 was estimated to be around:
A) $630 million.
B) $6.3 billion.
C) $630 billion.
D) $6.3 trillion.
Answer: D
48) Which of the following statements about the Web is not true?
A) The Web is the technology upon which the Internet is based.
B) The Web was the original "killer app."
C) The Web provides access to pages written in HyperText Markup Language.
D) The Web is both a communications infrastructure and an information storage system.
Answer: A
Difficulty: Difficult
AACSB: Application of knowledge
LO: 1.4: Understand the evolution of e-commerce from its early years to today.
49) In 2015, there were an estimated ________ Internet hosts.
A) 1 million
B) 10 million
C) 100 million
D) 1 billion
Answer: D
Difficulty: Moderate
AACSB: Application of knowledge
LO: 1.4: Understand the evolution of e-commerce from its early years to today.
50) All of the following can be considered a precursor to e-commerce except:
A) the development of the smartphone.
B) Baxter Healthcare's PC-based remote order entry system.
C) the French Minitel.
D) the development of Electronic Data Interchange standards.
48) Which of the following statements about the Web is not true?
A) The Web is the technology upon which the Internet is based.
B) The Web was the original "killer app."
C) The Web provides access to pages written in HyperText Markup Language.
D) The Web is both a communications infrastructure and an information storage system.
Answer: A
49) In 2015, there were an estimated ________ Internet hosts.
A) 1 million
B) 10 million
C) 100 million
D) 1 billion
Answer: D
50) All of the following can be considered a precursor to e-commerce (tiền thân của TMĐT) except:
A) the development of the smartphone.
B) Baxter Healthcare's PC-based remote order entry system.
C) the French Minitel.
D) the development of Electronic Data Interchange standards.
Answer: A
Difficulty: Moderate
AACSB: Application of knowledge
LO: 1.4: Understand the evolution of e-commerce from its early years to today.
51) Which of the following was the first truly large-scale digitally enabled transaction system in
the B2C arena?
A) Telex
B) the Baxter Healthcare system
C) the French Minitel
D) EDI
Answer: C
Difficulty: Moderate
AACSB: Application of knowledge
LO: 1.4: Understand the evolution of e-commerce from its early years to today.
Answer: A
51) Which of the following was the first truly large-scale digitally enabled transaction system in
the B2C arena?
A) Telex
B) the Baxter Healthcare system
C) the French Minitel
D) EDI
Answer: C
52) In which year can e-commerce be said to have begun?
A) 1983
B) 1985
C) 1995
D) 2001
Answer: C
53) All of the following are issues facing Pinterest except:
A) copyright infringement.
B) inability to retain users.
C) spam.
D) scams.
Answer: B
54) Which of the following is a characteristic of e-commerce during the Invention period?
A) mobile technology
B) earnings and profit emphasis
C) disintermediation
D) extensive government surveillance
Answer: C
55) All of the following are examples of Web 2.0 sites and applications except:
A) photo-sharing sites.
B) blogs.
C) wikis.
D) auction sites.
Answer: D
56) 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
Difficulty: Difficult
AACSB: Analytical thinking
LO: 1.4: Understand the evolution of e-commerce from its early years to today.
57) All of the following were visions of e-commerce expressed during the early years of e-
commerce except:
A) a nearly perfect information marketspace.
B) friction-free commerce.
C) disintermediation.
D) fast follower advantage.
Answer: D
Difficulty: Difficult
AACSB: Analytical thinking
LO: 1.4: Understand the evolution of e-commerce from its early years to today.
58) 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.
56) 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
57) All of the following were visions of e-commerce expressed during the early years of e-
commerce except:
A) a nearly perfect information marketspace.
B) friction-free commerce.
C) disintermediation.
D) fast follower advantage.
Answer: D
58) 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
Difficulty: Moderate
AACSB: Application of knowledge
LO: 1.4: Understand the evolution of e-commerce from its early years to today.
59) 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 very high market visibility.
D) visions of profiting from new technology.
Answer: A
Difficulty: Difficult
AACSB: Analytical thinking
LO: 1.4: Understand the evolution of e-commerce from its early years to today
D) firms are able to gather monopoly profits.
Answer: A
59) 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 very high market visibility.
D) visions of profiting from new technology.
Answer: A
60) 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
61) 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
62) Which of the following is a characteristic of the Reinvention phase of e-commerce?
A) massive proliferation of dot-com start-ups
B) widespread adoption of broadband networks
C) rapid growth of search engine advertising
D) expansion of e-commerce to include services as well as goods
Answer: D
63) Which of the following is a characteristic of the Consolidation phase of e-commerce?
A) predominance of pure online strategies
B) emphasis on revenue growth versus profits
C) brand extension and strengthening becomes more important than creating new brands
D) shift to a technology-driven approach
Answer: C
64) 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
65) 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
66) Which of the following is an example of an e-commerce first mover that failed?
A) Etsy
B) eToys
C) eBay
D) E*Trade
Answer: B
67) Which of the following refers to the practice of researching a product online before
purchasing it at a physical store?
A) zooming
B) grazing
C) showrooming
D) webrooming
Answer: D

68) Which of the following was the original "killer app" that made the Internet commercially
interesting and extraordinarily popular?
A) e-commerce
B) The World Wide Web
C) social networks
D) mobile apps
Answer: B
69) Which of the following refers to the displacement of market middlemen and the creation of a
new direct relationship between producers and consumers?
A) network effect
B) disintermediation
C) friction-free commerce
D) first mover advantage
Answer: B
70) Which of the following is not an element of friction-free commerce?
A) Information is equally distributed.
B) Transaction costs are high.
C) Prices can be dynamically adjusted to reflect actual demand
D) Unfair competitive advantages are eliminated.
Answer: B
71) Retail e-commerce in the United States is not expected to continue growing at double-digit
growth rates in 2015-2016.
Answer: FALSE
72) The Internet is a worldwide network of computer networks.
Answer: TRUE
73) The Internet has shown similar growth patterns as other electronic technologies of the past.
Answer: FALSE
74) The emergence of mobile, social, and local e-commerce occurred during the Consolidation
period of e-commerce.
Answer: FALSE
75) The Reinvention period of e-commerce is as much a sociological phenomenon as it is a
technological or business phenomenon.
Answer: TRUE
76) Price dispersion remains pervasive online.
Answer: TRUE
79) Above all, e-commerce is a ________ phenomenon.
A) technology driven
B) finance-driven
C) sociological
D) government-driven
Answer: A
80) 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
81) Which of the following is one of the three primary societal issues related to e-commerce?
A) liability
B) anonymity
C) equity
D) intellectual property (sở hữu trí tuệ)
Answer: D
84) Which of the following statements is not true?
A) No one academic perspective dominates research about e-commerce.
B) Economists take a purely technical approach to e-commerce.
C) There are two primary approaches to e-commerce: behavioral and technical.
D) Management scientists are interested in e-commerce as an opportunity to study how business
firms can exploit the Internet to achieve more efficient business operations.
Answer: B
 Chapter 2 E-commerce Business Models and Concepts
1) ______ 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
2) All of the following are using a subscription revenue model for music except:
A) Spotify.
B) Scribd.
C) Rhapsody.
D) Pandora.
Answer: B
3) Which element of the business model addresses what a firm provides that other firms do not and cannot?
A) revenue model
B) competitive advantage
C) market strategy
D) value proposition
Answer: D
4) Which element of the business model refers to the presence of substitute products in the
market?
A) value proposition
B) competitive environment
C) competitive advantage
D) market strategy
Answer: B
5) 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
6) 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
7) Which of the following is an example of the subscription revenue model?
A) eHarmony
B) eBay
C) E*Trade
D) Twitter
Answer: A
8) Stickiness is an important attribute for which of the following revenue models?
A) advertising revenue model
B) subscription revenue model
C) transaction fee revenue model
D) sales revenue model
Answer: A
9) Which of the following companies uses a transaction fee revenue model?
A) Yahoo
B) E*Trade
C) Twitter
D) Sears
Answer: B
10) Which of the following is an example of the affiliate revenue model?
A) Scribd
B) eBay
C) L.L. Bean
D) MyPoints
Answer: D
11) Which of the following involves a company giving away a certain level of product or
services without charge, but then charging a fee for premium levels of the product or service?
A) advertising revenue model
B) subscription revenue model
C) freemium strategy
Answer: C
12) 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
13) Which of the following would be considered an indirect competitor of Priceline?
A) Travelocity
B) Expedia
C) Orbitz
D) TripAdvisor
Answer: B
14) 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
15) All of the following can be considered a direct or indirect competitor of Amazon except:
A) eBay.
B) Apple's iTunes Store.
C) Walmart.
Answer: D
16) 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
17) Organizations that typically provide an array of services to start-up companies along with a
small amount of funding are referred to as:
A) angel investors.
B) crowdfunders.
C) incubators.
D) venture capital investors.
Answer: C
18) A ______ specifically details how you plan to find customers and to sell your product.
A) sales analysis
B) business plan
C) competitive strategy
D) market strategy
Answer: D
19) Which of the following is not a community provider?
A) LinkedIn
B) Facebook
C) Priceline
D) Pinterest
Answer: C
20) 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
21) An example of a company using the content provider model is:
A) Priceline.
B) Rhapsody.
C) Dell.
D) eBay.
Answer: B
22) Which of the following is not an example of the bricks-and-clicks e-tailing business model?
A) Walmart
B) Sears
C) Bluefly
D) Staples
Answer: C
23) The overall retail market in the United States in 2015 was estimated at about:
A) $48 trillion.
B) $4.8 trillion.
C) $480 billion.
D) $48 billion.
Answer: B
24) 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
25) Which of the following was not able to successfully implement a freemium business model?
A) Pandora
B) Dropbox
C) LinkedIn
D) Ning
Answer: D
26) 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
27) 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
28) Which of the following gives a business model the most credibility with outside investors?
A) the firm's management team
B) the firm's value proposition
C) the firm's market opportunity
D) the firm's market strategy
Answer: A
29) Which of the following statements about Foursquare is not true?
A) Foursquare combines a social network business model with location-based technology.
B) Foursquare began operating without a revenue model.
C) Foursquare's business model faces significant intellectual property concerns.
D) Foursquare has been able to command a high valuation from venture capital investors despite
unimpressive revenue and profits.
Answer: C
30) 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
31) Which of the following is another name for a revenue model?
A) business model
B) business strategy
C) financial model
D) financial statements
Answer: C
32) All of the following use a social network marketing strategy except:
A) Twitter.
B) YouTube.
C) Pinterest.
D) Amazon.
Answer: D
33) The use by a company of its competitive advantage to achieve more advantage in
surrounding markets is known as ______.
A) market strategy
B) differentiation
C) leverage
D) focus
Answer: C
34) 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) ______.
A) incubator
B) angel investor
C) venture capital investor
D) crowdfunder
Answer: B
35) Which of the following is not a key element of an elevator pitch?
A) exit strategy
B) growth metrics
C) legal structure
D) market opportunity
Answer: C
36) A value proposition defines how a company's product or service fulfills the needs of a
customer.
Answer: TRUE
37) Firms that fail to produce returns greater than alternative investments typically go out of
business.
Answer: TRUE
38) An asymmetry exists whenever all participants in a market have equivalent resources.
Answer: FALSE
39) First movers are often not as successful as follower firms.
Answer: TRUE
40) All firms need an organization to efficiently implement their business plans and strategies.
Answer: TRUE
41) The JOBS Act and issuance of enabling regulations by the Securities and Exchange
Commission allows a start-up company to use crowdfunding to solicit accredited investors to
invest in small and early-stage start-ups.
Answer: TRUE
46) The business model of e-tailers is quite similar to that of:
A) e-distributors.
B) transaction brokers.
C) exchanges.
D) service providers.
Answer: A
47) All of the following use an advertising revenue model except:
A) Twitter.
B) Yahoo.
C) Google.
D) Amazon.
Answer: D
48) Which of the following is not considered a portal?
A) Yahoo
B) MSN
C) Amazon
D) AOL
Answer: C
49) 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
50) 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
51) 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
52) All of the following are business models employed in the:
A) subscription.
B) peer-to-peer streaming.
C) download-and-own.
D) cloud streaming.
Answer: B
53) The financial services, travel services, and job placement services industries typically use the
________ business model.
A) community provider
B) transaction broker
C) market creator
D) e-tailer
Answer: B
54) 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.
A) market creator
B) community provider
C) e-tailer
D) portal
Answer: A
55) On-demand service companies are characterized by the free sharing of resources between the
company and consumers.
Answer: FALSE
57) All of the following are examples of business-to-business (B2B) business models except:
A) e-distributors.
B) e-procurement.
C) exchanges.
D) e-tailers.
Answer: D
58) What is the primary revenue model for an e-distributor?
A) sales
B) transaction fee
C) advertising
D) subscription
Answer: A
59) W.W. Grainger is an example of which of the following business models?
A) B2B service provider
B) exchange
C) e-distributor
D) industry consortia
Answer: C
60) ________ create and sell access to digital markets.
A) E-distributors
B) Portals
C) E-procurement firms
D) Market creators
Answer: C
61) Which of the following may offer its customers value chain management software?
A) e-distributors
B) e-procurement companies
C) exchanges
D) community providers
Answer: B
62) 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
63) SupplyOn is an example of a(n):
A) private industrial network.
B) exchange.
C) industry consortium.
D) e-distributor.
Answer: C
64) A ________ marketplace supplies products and services of interest to particular industries.
A) perfect
B) differentiated
C) horizontal
D) vertical
Answer: D
65) SaaS and PaaS providers can typically provide services at lower costs through scale
economies.
Answer: TRUE
67) Which business strategy involves implementing a new, more efficient set of business
processes that other firms cannot yet obtain?
A) strategy of cost competition
B) scope strategy
C) customer intimacy strategy
D) focus/market niche strategy
Answer: A
68) 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
69) Which of the following is not a primary activity in a firm value chain?
A) outbound logistics
B) finance/accounting
C) operations
D) after-sales service
Answer: B
70) A ________ is a networked business ecosystem that 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
71) 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
72) 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
73) ________ technologies are technologies that enable the incremental improvement of
products and services.
A) Sustaining
B) Differentiating
C) Disruptive
D) Commodity
Answer: A
74) Innovative entrepreneurs and their business firms that destroy existing business models are
referred to as ________.
A) crowdfunders
B) venture capitalists
C) disruptors
D) angel investors
Answer: C
75) The term unfit fitness refers to a situation in which employees of a firm have the wrong skills
for the current environment.
Answer: TRUE
76) Scale economies are efficiencies that result from flattening the hierarchy of an organization.
Answer: FALSE
77) A company's strong linkages with its customers increase switching costs.
Answer: TRUE
78) The Internet's universal standards can change industry structure by increasing barriers to
entry and decreasing competition within an industry.
Answer: FALSE
79) Interactivity that enables product customization alters industry structure by increasing the
threat of substitutes.
Answer: FALSE
80) E-commerce has increased price competition in nearly all markets.
Answer: TRUE
81) Social technologies change industry structure by shifting programming and editorial
decisions to consumers and creating substitute entertainment products.
Answer: TRUE
 Chapter 3 E-commerce Infrastructure: The Internet, Web, and Mobile Platform
1) During which period of time did the Institutionalization phase of Internet development take place?
A) 1950-1960
B) 1961-1974
C) 1975-1995
D) 1995-through the present
Answer: C
2) 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) Mosaic was invented.
C) The Domain Name System was introduced.
D) NSF privatized the operation of the Internet's backbone.
Answer: D
3) During which phase of the development of the Internet was the Domain Name System (DNS) introduced?
A) Commercialization phase
B) Institutional phase
C) Innovation phase
D) Consolidation phase
Answer: B
4) Which of the following is not one of the basic technological foundations of the Internet?
A) client/server computing
B) FTP
C) TCP/IP
D) packet switching
Answer: B
5) 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: C
6) Which of the following is the core communications protocol for the Internet?
A) Telnet
B) FTP
C) TCP/IP
D) TLS
Answer: C
7) The Transport Layer of TCP/IP is responsible for which of the following?
A) placing packets on and receiving them from the network medium
B) addressing, packaging, and routing messages
C) 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: C
8) The Internet Layer of TCP/IP is responsible for which of the following?
A) placing packets on and receiving them from the network medium
B) addressing, packaging, and routing messages
C) 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: B
9) 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: D
10) The ________ allows a natural language expression, such as Google.com to represent a numeric IP address.
A) uniform resource locator system
B) Internet protocol addressing schema
C) domain name system
D) assigned numbers and names (ANN) system
Answer: C
11) The address used by a browser to identify the location of content on the Web is called:
A) a domain name.
B) a uniform resource locator.
C) an IP address.
D) a file path.
Answer: B
12) 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) 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: B
13) ________ is a model of computing in computer processing, storage, software, and other services are
provided as a shared pool of virtualized resources over the Internet.
A) Client/server computing
B) P2P computing
C) Mobile computing
D) Cloud computing
Answer: D
14) Which of the following protocols is used to send mail to a server?
A) IMAP
B) FTP
C) HTTP
D) SSL
Answer: A
15) Where does TLS operate within TCP/IP?
A) between the Internet Layer and the Transport Layer
B) between the Transport Layer and the Application Layer
C) between the Network Interface Layer and the Transport Layer
D) between the Internet Layer and the Application Layer
Answer: B
16) Which of the following statements about cloud computing is not true?
A) A public cloud is typically used by companies with stringent privacy and security
requirements.
B) Dropbox is an example of a public cloud.
C) Hybrid clouds offer both public and private cloud options.
D) A private cloud hosted internally or externally.
Answer: A
17) ________ is used to allow remote login on another computer.
A) Telnet
B) FTP
C) HTTP
D) SSL
Answer: A
18) ________ is a utility program that allows you to check the connection between your client
and a TCP/IP network.
A) Ping
B) Telnet
C) Tracert
D) Finger
Answer: A
19) 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) IPv6
D) client/server computing
Answer: D
20) Which of the following are 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?
A) routers
B) Web servers
C) IP servers
D) packet servers
Answer: A
21) Which of the following is a set of rules for transferring data?
A) protocol
B) packet
C) router
D) IP address
Answer: A
22) Which of the following is not a basic type of cloud computing service?
A) IaaS
B) PaaS
C) SaaS
D) FiOS
Answer: D
23) Which of the following are central directories that list all domain names currently in use for specific
domains?
A) Web servers
B) root servers
C) client servers
D) DNS servers
Answer: B
24) Which of the following was the original purpose of the Internet?
A) to provide a network that would allow businesses to connect with consumers
B) to link large mainframe computers on different college campuses
C) to develop a military communications systems that could withstand nuclear war
D) to enable government agencies to track civilian communications
Answer: B
25) Which of the following 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?
A) Telnet
B) Ping
C) IMAP
D) Tracert
Answer: D
26) Who wrote the first paper on packet switching networks?
A) J.C.R. Licklider
B) Ray Tomlinson
C) Leonard Kleinrock
D) Vint Cert
Answer: C
27) Packet switching does not require a dedicated circuit.
Answer: TRUE
28) FTP is the protocol that provides the Internet addressing scheme.
Answer: FALSE
29) IPv6 provides for 132-bit IP addresses.
Answer: FALSE
30) A private cloud is operated solely for the benefit of a single tenant.
Answer: TRUE
31) Amazon Web Services is an example of cloud computing.
Answer: TRUE
32) WWW is the Internet protocol used to transfer Web pages.
Answer: FALSE
33) TLS is a protocol used to transfer files to and from a server.
Answer: FALSE
37) Which of the following organizations coordinates the Internet's systems of unique identifiers,as IP addresses
and top-level domain systems?
A) IETF
B) IAB
C) W3C
D) ICANN
Answer: D
38) TCP/IP operates in which layer of Internet architecture?
A) Network Technology Substrate layer
B) Middleware Services layer
C) Transport Services and Representation Standards layer
D) Applications layer
Answer: C
39) The Web runs in which layer of Internet architecture?
A) Network Technology Substrate layer
B) Middleware Services layer
C) Transport Services and Representation Standards layer
D) Applications layer
Answer: D
40) 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: B
41) The backbone of the Internet is formed by:
A) Internet Exchange Points (IXPs).
B) Tier 1 ISPs.
C) Network Access Points (NAPs).
D) Metropolitan Area Exchanges (MAEs).
Answer: B
42) When talking about the physical elements of the Internet, the term redundancy refers 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: D
43) 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: D
44) The ________ helps define the overall structure of the Internet.
A) IAB
B) IESG
C) W3C
D) ITU
Answer: A
45) Which of the following is not true about the mobile platform?
A) Most smartphones use Intel chips.
B) The number of cell phones worldwide exceeds the number of PCs.
C) Over a third of the world's cell phones are smartphones.
D) Smartphones use flash memory chips.
Answer: A
46) Which of the following organizations involved with Internet governance has the United States recently
announced it would give up control over?
A) ICANN
B) IGF
C) NTIA
D) IANA
Answer: D
47) Internet traffic is predicted to do which of the following over the next five years?
A) decrease
B) double
C) triple
D) quadruple
Answer: C
48) 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: TRUE
49) T1 and T3 refer to international telephone standards for digital communication.
Answer: TRUE
50) Bluetooth is an advanced form of DSL.
Answer: FALSE
51) IANA is the organization currently in charge of assigning IP addresses.
Answer: TRUE
54) Which of the following is not a concern about IoT?
A) the high cost of sensors
B) interoperability
C) security
D) privacy
Answer: A
55) How long does it take for 300,000 X-rays to be transmitted on a 100-gbps network?
A) 10 seconds
B) 1 minute
C) 10 minutes
D) 1 hour
Answer: B
56) What type of Internet access technology are Google and Facebook hoping to use to provide Internet access
to remote parts of the world?
A) Bluetooth
B) drones
C) WLANs
D) DSL
Answer: B
57) Which of the following is not a limitation of the current Internet?
A) the continued reliance on cables and wires for connectivity
B) limited bandwidth, which causes congestion and cannot adequately handle video and voice
traffic
C) architectural restrictions, which stipulate that numerous requests for the same file must each
be answered individually, slowing network performance
D) the difficulty in expanding capacity by adding servers and clients
Answer: D
58) Which of the following statements about fiber-optic cable is not true?
A) It transmits more data at faster speeds than coaxial or twisted pair cable.
B) It is thinner and lighter than coaxial or twisted pair cable.
C) As of 2014, a majority of U.S. homes have fiber connections.
D) Telecommunications firms have made substantial investments in cross-country fiber optic
systems in the last decade.
Answer: C
59) 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: A
60) Which IEEE 802.11 standard provides for throughput of up to 7 Gbps?
A) 802.11ac
B) 802.11ad
C) 802.11ay
D) 802.11ax
Answer: B
61) All of the following are involved in the effort to create standards for IoT except:
A) AllSeen Alliance.
B) Industrial Internet Consortium.
C) Open Interconnect Consortium.
D) W3C.
Answer: D
62) Which of the following refers to delays in messages caused by the uneven flow of information packets
through the network?
A) redundancy
B) latency
C) Net neutrality
D) QOS
Answer: B
63) What country intends to be the first to use Project Loon to provide universal Internet access?
A) New Zealand
B) Sri Lanka
C) Ghana
D) Australia
Answer: B
64) Internet2 provides a nationwide 100 gigabit-per-second network.
Answer: TRUE
65) WLAN-based Internet access derives from the same technological foundations as telephone-based wireless
Internet access.
Answer: FALSE
66) The Internet of Things is based on sensors that can collect data and connect to the Internet.
Answer: TRUE
69) 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: B
70) In the address http://www.company.com/clients.html, which of the following is the top-level domain?
A) .com
B) company.com
C) www
D) http
Answer: A
71) You could expect to find all of the following services in a Web server software package except:
A) security services.
B) FTP.
C) search engine.
D) an RSS aggregator.
Answer: D
72) Which of the following is currently the most popular Web browser?
A) Internet Explorer
B) Safari
C) Chrome
D) Firefox
Answer: A
73) The concept behind document formatting had its roots in which of the following?
A) XML
B) SGML
C) HTML
D) GML
Answer: D
74) 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: D
75) HTML is used to format the structure and style of a Web page.
Answer: TRUE
77) Cortana is a type of:
A) intelligent personal assistant.
B) widget.
C) gadget.
D) social network.
Answer: A
78) Which of the following is a Web application that enables Internet users to communicate with each other,
although not in real time?
A) mobile messaging
B) online forum
C) SMS messaging
D) VoIP
Answer: B
79) Which of the following is not a mobile messaging application?
A) KakaoTalk
B) WhatsApp
C) Viber
D) Feedly
Answer: D
80) A(n) ________ is a Web application that allows users to easily add and edit content on a Web page.
A) wiki
B) podcast
C) blog
D) RSS feed
Answer: A
81) 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: A
84) Which source of e-commerce revenues has grown from nearly zero prior to 2007 to an estimated $128
billion in 2015?
A) B2G e-commerce
B) mobile B2C e-commerce
C) B2B e-commerce
D) social e-commerce
Answer: B
85) 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) over 100 billion have been downloaded.
D) Apple's goal of offering apps is to increase sales of iPhones, iPads, and iPods.
Answer: B
 Chapter 4: Building an E-commerce Presence: Web Sites, Mobile Sites, and Apps
1) Offline media is typically used for all of the following marketing activities except:
A) education.
B) exposure.
C) conversation.
D) branding.
Answer: C
2) The cost of hardware, software, and telecommunications services needed to build a Web site have ________
over the last decade.
A) increased dramatically
B) increased moderately
C) decreased dramatically
D) decreased slightly
Answer: C
3) Which of the following types of e-commerce presence is best suited for creating an ongoing conversation
with one's customers?
A) Web site
B) e-mail
C) social media
D) offline media
Answer: C
7) What are the two most important management challenges in building a successful e-commerce presence?
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
Answer: A
8) In order from beginning to end, the major steps in the 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.
Answer: A
9) ________ 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
Answer: B
10) 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
Answer: B
11) Which system functionality must your Web site have in order to be able to personalize or customize a
product for a client?
A) an ad server
B) a site tracking and reporting system
C) an inventory management system
D) customer on-site tracking
Answer: D
12) Which of the following are the two main components of a systems design?
A) logical design and physical design
B) behavioral design and technological design
C) business objectives and technology requirements
D) front-end systems and back-end systems
Answer: A
13) Which of the following helps you engage your customers in a conversation?
A) shopping cart
B) product database
C) on-site blog
D) site tracking and reporting system
Answer: C
14) Which of the following is not one of the basic business objectives for an e-commerce site?
A) display goods
B) execute a transaction
C) provide production and supplier links
D) optimize system architecture
Answer: D
15) All of the following are basic information requirements for a product database except:
A) product descriptions.
B) stock numbers.
C) customer ID numbers
D) inventory levels.
Answer: C
16) Which of the following typically includes a data flow diagram to describe the flow of information for an e-
commerce site?
A) physical design
B) logical design
C) testing plan
D) co-location plan
Answer: B
17) Which of the following details the actual hardware components to be used in a system?
A) architecture plan
B) system functionalities plan
C) logical design
D) physical design
Answer: D
18) Which of the following verifies that the business objectives of the system as originally conceived are in fact
working?
A) system testing
B) acceptance testing
C) unit testing
D) implementation testing
Answer: B
19) Which of the following involves testing a site program's modules one at a time?
A) system testing
B) acceptance testing
C) unit testing
D) implementation testing
Answer: C
20) Most of the time required to maintain an e-commerce site is spent on:
A) debugging code.
B) responding to emergency situations.
C) general administration and making changes and enhancements to the system.
D) changes in reports, data files, and links to backend databases.
Answer: C
21) All of the following are simple steps for optimizing Web page content that can reduce response times
except:
A) reducing unnecessary HTML comments.
B) segmenting computer servers to perform dedicated functions.
C) using more efficient graphics.
D) avoiding unnecessary links to other pages on the site.
Answer: B
22) Which of the following is the minimum system architecture requirement for an e-commerce Web site that
processes orders?
A) single-tier architecture
B) two-tier architecture
C) three-tier architecture
D) multi-tier architecture
Answer: B
23) All of the following offer Web site building tools except:
A) Weebly.
B) Google Sites.
C) WordPress.
D) Apache.
Answer: D
24) All of the following are major players in hosting/co-location/cloud services except:
A) GoDaddy.
B) WordPress.
C) Rackspace.
D) CenturyLink.
Answer: B
25) Which form of testing compares a control page with one that is very different?
A) template test
B) new concept test
C) funnel test
D) system test
Answer: B
26) A template test is a form of which type of testing?
A) unit testing
B) system testing
C) acceptance testing
D) A/B testing
Answer: D
27) When using multivariate testing, if you wish to test two different versions of an image, a button, and a piece
of text, how many combinations will you need to test?
A) 2
B) 4
C) 6
D) 8
Answer: D
28) The process of comparing a Web site with that of its competitors in terms of response speed, quality of
layout, and design is known as:
A) split testing.
B) funnel testing.
C) benchmarking.
D) system testing.
Answer: C
29) The systems development life cycle methodology that can be used to create an e-commerce Web site has
five major steps.
Answer: TRUE
30) When developing an e-commerce presence, it is important to understand that the business must drive
technology decisions, not the reverse.
Answer: TRUE
31) Using prebuilt templates is typically one of the most expensive choices when building an e-commerce site.
Answer: FALSE
32) The annual maintenance cost for a Web site is typically much lower than its development cost.
Answer: FALSE
33) Two-tier architecture typically includes a Web server and a database server.
Answer: TRUE
34) Apache Web server software works with Linux and Unix operating systems.
Answer: TRUE
38) All of the following are basic functionality provided by Web servers except:
A) site management tools.
B) data capture tools.
C) security services.
D) a shopping cart.
Answer: D
39) Which of the following is used to process certificates and private/public key information?
A) HTTP
B) Secure Sockets Layer/Transport Layer Security
C) File Transfer Protocol
D) data capture tools
Answer: B
40) Which of the following would you use to verify that links on Web pages are valid?
A) HTTP
B) FTP
C) data capture tools
D) site management tools
Answer: D
41) Which of the following is an example of a CMS?
A) Apache
B) WordPress
C) Dreamweaver CC
D) Webtrends Analytics
Answer: B
42) 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.
Answer: D
43) Which of the following cannot be used to retrieve objects from a database?
A) CGI
B) ASP
C) JSP
D) HTML
Answer: D
44) Which of the following type of application server monitors and controls access to a main Web server and
implements firewall protection?
A) proxy server
B) list server
C) groupware server
D) mail server
Answer: A
45) Which of the following technologies is used to separate the design and presentation of content from the
content creation process?
A) Apache web server
B) proxy server
C) shopping cart
D) CMS
Answer: D
46) MySQL is which of the following?
A) open source database software
B) a scripting language embedded in HTML documents
C) Web server software
D) Web site analytics software
Answer: A
47) All of the following are basic functionality provided by e-commerce merchant server software except:
A) a product catalog.
B) marketing software.
C) a shopping cart.
D) credit card processing.
Answer: B
48) Which of the following is not an open source software tool?
A) WebSphere
B) Apache
C) MySQL
D) PHP
Answer: A
49) Which of the following is a standard that makes it possible to access data from any application regardless
of the database and operating system software being used?
A) CGI
B) ODBC
C) MySQL
D) HTTP
Answer: B
50) The Web server software used has a significant impact on how a Web site's Web pages look on a user's
computer.
Answer: FALSE
51) Prior to the development of e-commerce, Web sites primarily delivered static HTML pages.
Answer: TRUE
52) Dynamic page generation lowers menu costs.
Answer: TRUE
53) A list server can be used to manage e-mail marketing campaigns.
Answer: TRUE
the major considerations involved in choosing Web server and e-commerce merchant server software.
55) The term stateless refers to the fact that:
A) no one government entity controls the Internet.
B) the server does not have to maintain an ongoing dedicated interaction with the client computer.
C) system performance degrades as more simultaneous users require service.
D) Web servers may maintain multiple instances of server software to handle requests.
Answer: B
56) Which of the following types of sites typically needs a high percentage of secure pages?
A) Web services
B) customer self-service
C) trading
D) publishing/subscription
Answer: C
57) Which of the following is not a main factor in determining the overall demand on an e-commerce site?
A) file sizes of Web pages being served
B) number of simultaneous users in peak periods
C) speed of legacy applications that are needed to supply data to Web pages
D) whether content is dynamic or static
Answer: A
58) All of the following are steps one can take to right-size a Web site's hardware platform and meet demands
for service except:
A) scaling hardware vertically.
B) scaling hardware horizontally.
C) replacing static pages with dynamically generated pages.
D) improving processing architecture.
Answer: C
59) 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 the database schema.
D) adding Web servers.
Answer: D
60) Upgrading a server from a single processor to multiple processors is an example of scaling a site
horizontally.
Answer: FALSE
61) 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.
Answer: TRUE
63) Django is based on which of the following?
A) PHP
B) Python
C) Perl
D) Ruby on Rails
Answer: B
64) Ruby on Rails is based on which of the following philosophies?
A) SLDC
B) CoC
C) LAMP
D) Ajax
Answer: B
65) Which of the following is the most commonly used server-side scripting language?
A) Ruby on Rails
B) Django
C) PHP
D) Perl
Answer: C
66) All of the following are Web site design features that annoy customers except:
A) slow-loading pages.
B) pop-under ads.
C) splash pages.
D) redundant navigation.
Answer: D
67) All of the following are important factors in search engine optimization except:
A) selecting keywords and page titles.
B) identifying market niches for your services or products.
C) buying search engine ads.
D) adhering to accessibility guidelines.
Answer: D
68) ________ 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.
A) CGI
B) ColdFusion
C) JavaScript
D) VBScript
Answer: A
69) ________ is a programming language invented by Netscape used to control the objects on an
HTML page and handle interactions with the browser.
A) VBScript
B) ActiveX
C) ColdFusion
D) JavaScript
Answer: D
70) The primary way a Web site is able to personalize the content presented to a visitor is through the use of:
A) privacy policies.
B) cookies.
C) accessibility rules.
D) site management tools.
Answer: B
71) Which of the following is not part of the LAMP open source Web development model?
A) Linux
B) Apache
C) Microsoft IIS
D) PHP
Answer: C
72) Django follows the ________ programming principle.
A) CoC
B) WYSIWYG
C) DRY
D) LAMP
Answer: C
73) PHP is an open source, general purpose scripting language that is most frequently used in
server-side Web applications to generate dynamic Web page content.
Answer: TRUE
77) All of the following are key design principles of responsive Web design except:
A) flexible grid-based layouts.
B) media queries.
C) coding by convention.
D) flexible images and media.
Answer: C
78) Which of the following is a server-side technique that detects the attributes of the device
making the request, and using predefined templates, loads a version of a site that is optimized for
the device?
A) LAMP
B) AWD
C) mobile first design
D) RoR
Answer: B
79) Which of the following statements about responsive Web design (RWD) is not true?
A) RWD works best for sites that have complex functionality.
B) RWD tools include HTML5 and CSS3.
C) RWD makes it possible to design a Web site that automatically adjusts its layout and display according to
the screen resolution of the device on which it is being viewed.
D) RWD can be costly.
Answer: A
80) Building which of the following is the most expensive path to creating a mobile presence?
A) native app
B) mobile Web site
C) mobile Web app
D) hybrid HTTP
Answer: A
81) Which of the following statements about mobile Web sites is not true?
A) Mobile Web sites run on a firm's servers, just like a traditional Web site.
B) Mobile Web sites can be built using standard Web tools such as server-side HTML, Linux, PHP and SQL.
C) Generally, mobile Web sites operate more quickly than traditional Web sites viewed on a desktop computer
connected to a broadband office network.
D) Most large firms today have mobile Web sites.
Answer: C
82) Beginning the e-commerce development process with a mobile presence rather than a desktop Web site is
referred to as which of the following?
A) RWD
B) AWD
C) mobile first design
D) RESS
Answer: C
83) A native app is one designed to specifically operate using a mobile device's hardware and operating
system.
Answer: TRUE
84) Mobile Web apps are typically built using HTML5 and Java.
Answer: TRUE
 Chapter 5 E-commerce Security and Payment Systems
1. Confidentiality is sometimes confused with:
A. Privacy.
B. Authenticity.
C. Integrity.
D. Nonrepudiation.
Answer: A
2. ________ refers to the ability to ensure that e-commerce participants do not deny their online actions.
A. Nonrepudiation
B. Authenticity
C. Availability
D. Integrity
Answer: A
3. ________ 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
Answer: B
4. 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.
Answer: D
5. ________ refers to the ability to ensure that an e-commerce site continues to function as intended.
A. Nonrepudiation
B. Authenticity
C. Availability
D. Integrity
Answer: C
6. Which of the following is an example of an online privacy violation?
A. Your e-mail being read by a hacker
B. Your online purchasing history being sold to other merchants without your consent
C. Your computer being used as part of a botnet
D. Your e-mail being altered by a hacker
Answer: B
7. ________ refers to the ability to ensure that messages and data are only available to those
authorized to view them.
________ refers to the ability to ensure that messages and data are only available to those
authorized to view them.
________ refers to the ability to ensure that messages and data are only available to those
authorized to view them.
7. ________ refers to the ability to ensure that messages and data are only available to those authorized to view
them.
A. Confidentiality
B. Integrity
C. Privacy
D. Availability
Answer: A
8. Typically, the more security measures added to an e-commerce site, the faster and easier it becomes to use.
Answer: FALSE
10. All of the following experienced high-profile data breaches in 2014 except:
A. eBay.
B. Home Depot.
C. Amazon.
D. Sony.
Answer: C
11. Bitcoins are an example of:
A. Digital cash.
B. Virtual currency.
C. A stored value payment system.
D. Aan EBPP system.
Answer: A
12. The overall rate of online credit card fraud is ________ of all online card transactions.
A. Less than 1%
B. Around 5%
C. Around 10%
D. Around 15%
Answer: A
13. Which of the following has the Internet Advertising Bureau urged advertisers to abandon?
A. HTML
B. HTML5
C. Adobe Flash
D. Adobe Acrobat
Answer: C
14. Accessing data without authorization on Dropbox is an example of which of the following?
A. Social network security issue
B. Cloud security issue
C. Mobile platform security issue
D. Sniffing
Answer: B
15. All of the following are prominent hacktivist groups except:
A. Anonymous.
B. LulzSec.
C. Impact Team.
D. Avid Life.
Answer: D
16. Slammer is an example of which of the following?
A. Virus
B. Worm
C. Trojan horse
D. Botnet
Answer: B
17. Which of the following is the leading cause of data breaches?
A. Theft of a computer
B. Accidental disclosures
C. Hackers
D. DDoS attacks
Answer: C
18. Software that is used to obtain private user information such as a user's keystrokes or copies of e-mail is
referred to as:
A. Spyware.
B. A backdoor.
 C. Browser parasite.
D. Adware.
Answer: A
19. In 2014, Sony experienced which of the following?
A. A high-profile data breach
B. A DDoS attack that shut down its Web site
C. A hacktivist attack to protest its employment policies 9
D. A browser parasite
Answer: A
20. What is the most frequent cause of stolen credit cards and card information today?
A. Lost cards
B. The hacking and looting of corporate servers storing credit card information
C. Sniffing programs
D. Phishing attacks
Answer: B
21. Which dimension(s) of security is spoofing a threat to?
A. Integrity
B. Availability
C. Integrity and authenticity
D. Availability and integrity
Answer: C
22. Which of the following is not an example of malicious code?
A. Scareware
B. Trojan horse
C. Bot
D. Sniffer
Answer: D
23. Zeus is an example of which of the following?
A. SQL injection attack
B. Browser parasite
C. DDoS attack.
D. Trojan horse/botnet
Answer: D
24. Rustock is an example of which of the following?
A. Worm
B. Botnet
C. Phishing
D. Hacktivism
Answer: B
25. Malware that comes with a downloaded file that a user requests is called a:
A. Trojan horse.
B. Backdoor.
C. Drive-by download.
D. PUP.
Answer: C
26. Which of the following is not an example of a PUP?
A. Adware
B. Browser parasite
C. Drive-by download
D. Spyware
Answer: C
27. Which of the following was designed to cripple Iranian nuclear centrifuges?
 A. Stuxnet
B. Flame
C. Snake
D. Storm
Answer: A
28. Automatically redirecting a Web link to a different address is an example of which of the following?
A. Sniffing
B. Social engineering
C. Pharming
D. DDoS attack
Answer: C
29. FREAK is an example of which of the following?
A. Mobile malware
B. Software vulnerability
C. Botnet
D. Trojan horse
Answer: B
30. According to Ponemon Institute's 2015 survey, which of the following was not among the causes of the
most costly cybercrimes?
A. Malicious insiders
B. Malicious code
C. Denial of service
D. Botnets
Answer: C
31. Typically attack governments, organizations, and sometimes individuals for political purposes.
A. Crackers
B. White hats
C. Grey hats
D. Hacktivists
Answer: D
32. A worm does not need to be activated by a user in order for it to replicate itself.
Answer: TRUE
33. A Trojan horse appears to be benign, but then does something other than expected.
Answer: TRUE
34. Phishing attacks rely on browser parasites.
Answer: FALSE
35. CryptoLocker is an example of ransomware.
Answer: TRUE
36. Spoofing a Web site is a threat to the integrity of the Web site.
Answer: TRUE
37. Exploit kits are often rented or sold as a commercial product.
Answer: TRUE
38. Vishing attacks exploit SMS messages.
Answer: FALSE
39. ShellShock is an example of a software vulnerability.
Answer: TRUE
44. Next generation firewalls provide all of the following except:
A. An application-centric approach to firewall control.
B. The ability to identify applications regardless of the port, protocol, or security evasion tools used.
C. The ability to automatically update applications with security patches.
D. The ability to identify users regardless of the device or IP address.
Answer: C
45. Symmetric key cryptography is also known as:
A. Public key cryptography.
B. Secret key cryptography.
C. PGP.
D. PKI.
Answer: B
46. All the following statements about symmetric key cryptography are true except:
A. In symmetric key cryptography, both the sender and the receiver use the same key to encrypt and
decrypt a message.
B. The Data Encryption Standard is a symmetric key encryption system.
C. Symmetric key cryptography is computationally slower.
D. Symmetric key cryptography is a key element in digital envelopes.
Answer: C
47. The Data Encryption Standard uses a(n) ________-bit key.
A. 8
B. 56
C. 256
D. 512
Answer: B
48. All of the following statements about public key cryptography are true except:
A. Public key cryptography uses two mathematically related digital keys.
B. Public key cryptography ensures authentication of the sender.
C. Public key cryptography does not ensure message integrity.
D. Public key cryptography is based on the idea of irreversible mathematical functions.
Answer: B
49. Which of the following is the current standard used to protect Wi-Fi networks?
A. WEP
B. TLS
C. WPA2
D. WPA3
Answer: C
50. All of the following statements about PKI are true except:
A. The term PKI refers to the certification authorities and digital certificate procedures that are accepted by
all parties.
B. PKI is not effective against insiders who have a legitimate access to corporate systems including
customer information.
C. PKI guarantees that the verifying computer of the merchant is secure.
D. The acronym PKI stands for public key infrastructure.
Answer: C
51. A digital certificate contains all of the following except the:
A. Subject's private key.
B. Subject's public key.
C. Digital signature of the certification authority.
D. Digital certificate serial number.
Answer: A
52. Which of the following dimensions of e-commerce security is not provided for by
encryption?
A. Confidentiality
B. Availability
C. Message integrity
D. Nonrepudiation
Answer: B
53. All of the following are methods of securing channels of communication except:
A. SSL/TLS.
B. Certificates.
C. VPN.
D. FTP.
Answer: D
54. A ________ is hardware or software that acts as a filter to prevent unwanted packets from
entering a network.
A. Firewall
B. Virtual private network
C. Proxy server
D. PPTP
Answer: A
55. Proxy servers are also known as:
A. Firewalls.
B. Application gateways.
C. Dual home systems.
D. Packet filters.
Answer: C
56. All of the following are used for authentication except:
A. Digital signatures.
B. Certificates of authority.
C. Biometric devices.
D. Packet filters.
Answer: D
57. An intrusion detection system can perform all of the following functions except:
A. Examining network traffic.
B. Setting off an alarm when suspicious activity is detected.
C. Checking network traffic to see if it matches certain patterns or preconfigured rules.
D. Blocking suspicious activity.
Answer: D
58. Which of the following is not an example of an access control?
A. Firewalls
B. Proxy servers
C. Digital signatures
D. Login passwords
Answer: C
59. Which of the following statements is not true?
A. A VPN provides both confidentiality and integrity.
B. A VPN uses both authentication and encryption.
C. A VPN uses a dedicated secure line.
D. The primary use of VPNs is to establish secure communications among business partners.
Answer: C
60. Which of the following statements is not true?
A. Apple's Touch ID stores a user's actual fingerprint.
B. Biometric devices reduce the opportunity for spoofing.
C. A retina scan is an example of a biometric device.
D. Biometric data stored on an iPhone is encrypted.
Answer: A
61. A fingerprint scan is an example of which of the following?
A. Biometrics
B. Encryption
 C. IDS
D. Firewall
Answer: A
62. Which of the following is the most common protocol for securing a digital channel of
communication?
A. DES
B. SSL/TLS
C. VPN
D. HTTP
Answer: B
63. SLS/TLS cannot provide irrefutability.
Answer: TRUE
64. The easiest and least expensive way to prevent threats to system integrity is to install anti-
virus software.
Answer: TRUE
65. The easiest and least expensive way to prevent threats to system integrity is to install anti-
virus software.
Answer: TRUE
68. What is the first step in developing an e-commerce security plan?
A. Create a security organization.
B. Develop a security policy.
C. Perform a risk assessment
D. Perform a security audit.
Answer: C
69. To allow lower-level employees access to the corporate network while preventing them from
accessing private human resources documents, you would use:
A. Access controls.
B. An authorization management system.
C. Security tokens.
D. An authorization policy.
Answer: B
70. Which of the following statements is not true?
A. A majority of states require companies that maintain personal data on their residents to publicly disclose
when a security breach affecting those residents has occurred.
B. The USA Patriot Act broadly expanded law enforcement's investigative and surveillance powers.
C. The Cybersecurity Information Sharing Act is strongly supported by most large technology companies
and privacy advocates.
D. The Federal Trade Commission has asserted that it has authority over corporations' data security
practices.
Answer: C
71. All of the following are examples of social/mobile peer-to-peer payment systems except:
A. Venmo.
B. Bill Me Later.
C. Square Cash.
D. Google Wallet.
Answer: B
72. All of the following statements about Apple Pay are true except which of the following?
A. Apple Pay is available for both iPhone 5s and iPhone 6s.
B. Apple Pay is based on Touch ID biometric fingerprint scanning.
C. Apple Pay can be used for mobile payments at the point of sale at a physical store.
D. Apple Pay relies on NFC chip technology.
Answer: A
73. PayPal is an example of what type of payment system?
A. Online stored value payment system
B. Digital checking system
C. Accumulating balance system
D. Digital credit card system
Answer: A
74. PCI-DSS is a standard established by which of the following?
A. The banking industry
B. The credit card industry
C. The federal government
D. The retail industry
Answer: B
75. Which of the following is not a major trend in e-commerce payments in 2015-2016?
A. Mobile retail payment volume decreases.
B. PayPal remains the most popular alternative payment method.
C. Apple introduces Apple Pay.
D. Payment by credit and/or debit card remains the dominant form of online payment.
Answer: A
76. All of the following are limitations of the existing online credit card payment system except:
A. Poor security.
B. Cost to consumers.
C. Cost to merchant.
D. Social equity.
Answer: B
77. Linden Dollars, created for use in Second Life, are an example of:
A. Digital cash.
B. Virtual currency.
C. EBPP.
D. Peer-to-peer payment systems.
Answer: B
80. Apple Pay uses near field communication (NFC) chips.
Answer: TRUE
81. Digital cash is legal tender that is instantly convertible into other forms of value without the
intermediation of any third parties.
Answer: FALSE
82. There is a finite number of Bitcoins that can be created.
Answer: TRUE
84. In 2014, online bill payment accounted for ________ of all bill payments, while paper
checks accounted for ________.
A. Less than 10%; less than 25%
B. About 25%; about 10%
C. More than 50%; less than 25%
D. 100%; 0%
Answer: C
35) Which of the following is based on the idea of complete price transparency in a perfect
information marketplace?
A) the Law of One Price
B) dynamic pricing
35) Which of the following is based on the idea of complete price transparency in a perfect
information marketplace?
A) the Law of One Price
B) dynamic pricing
35) Which of the following is based on the idea of complete price transparency in a perfect
information marketplace?
A) the Law of One Price
B) dynamic pricing
35) Which of the following is based on the idea of complete price transparency in a perfect
information marketplace?
A) the Law of One Price
B) dynamic pricing
 Chapter 6 E-commerce Marketing and Advertising Concepts
1) Around ________ % of households in the United States have broadband access to the Internet.
A) 45
B) 55
C) 75
D) 85
Answer: C
2) Which of the following online advertising formats attracted the least amount of spending in
2015?
A) search
B) classifieds
C) rich media
D) e-mail
Answer: D
3) Which of the following is not one of the main stages of the online purchasing process?
A) post-purchase service and loyalty
B) awareness
C) engagement
D) conversation
Answer: D
Difficulty: Moderate
AACSB: Application of knowledge
LO: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer
behavior and purchasing, and how consumers behave online
3) Which of the following is not one of the main stages of the online purchasing process?
A) post-purchase service and loyalty
B) awareness
C) engagement
D) conversation
Answer: D
4) In 2015, what was the approximate Internet penetration rate for individuals that have attained
less than a high-school education?
A) 25%
B) 33%
C) 66%
D) 75%
Answer: C
5) 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.
Answer: D
6) Online buyers constitute approximately ________ % of the online Internet audience.
A) 65
B) 75
C) 85
D) 95
Answer: B
7) In modeling online consumer behavior, the concept of "consumer skills" refers to the:
A) education level of the consumer.
B) communication skills of the consumer.
C) knowledge consumers have about how to conduct online transactions.
D) product evaluation skills of the consumer.
Answer: C
8) In the early years of e-commerce, prior to 2000, single, white, young college-educated males
with high income dominated the Internet in terms of percentage of Internet usage.
Answer: TRUE
9) Consumers choose the online channel primarily because it offers lower prices.
Answer: TRUE
10) Online traffic is driven by offline brands and shopping.
Answer: TRUE
11) The majority of online shoppers find vendors by clicking on display ads.
Answer: FALSE
12) Research shows that the two most important factors shaping the decision to purchase online
are utility and trust.
Answer: TRUE
13) Google introduced which of the following changes to its search algorithm in 2011 to weed
out low quality sites from search results?
A) Penguin
B) Hummingbird
C) Panda
D) Knowledge Graph
Answer: C
14) Which of the following forms of online advertising is expected to grow the fastest between
2015 and 2019?
A) paid search
B) sponsorships
C) search engines
D) rich media
Answer: D
15) Which of the following is not one of the four main methods advertisers use to behaviorally
target ads?
A) Nielsen ratings
B) data collected from social networks
C) integration of online data with offline data
D) clickstream data
Answer: A
16) Which of the following search engine algorithm updates enables Google's search engine to
evaluate an entire sentence rather than just a key word?
A) Panda
B) Penguin
C) Hummingbird
D) Graph Search
Answer: C
17) Which of the following is not true about search engine advertising?
A) Spending on search engine advertising constitutes over 40% 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.
Answer: D
18) 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
Answer: A
Difficulty: Moderate
AACSB: Application of knowledge
LO: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies
and tools.
19) Amazon's Associates program is an example of which of the following?
A) viral marketing
B) local marketing
C) affiliate marketing
D) lead generation marketing
Answer: C
18) 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
Answer: A
Difficulty: Moderate
AACSB: Application of knowledge
LO: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies
and tools.
19) Amazon's Associates program is an example of which of the following?
A) viral marketing
B) local marketing
C) affiliate marketing
D) lead generation marketing
Answer: C
18) 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
Answer: A
19) Amazon's Associates program is an example of which of the following?
A) viral marketing
B) local marketing
C) affiliate marketing
D) lead generation marketing
Answer: C
20) Ad blockers operate in a manner very similar to which of the following?
A) anti-virus software
B) firewalls
C) Flash cookies
D) anonymous browsing
Answer: B
21) Which of the following is not a primary source of ad fraud?
A) browser extensions that insert ads into a premium publisher's Web site and then list the ads as available
on a programmatic ad exchange
B) ad targeting firms that create bots that imitate the behavior of real shoppers and then charge advertisers
C) botnets hired by publishers to click on Web pages to create phony traffic
D) native advertising that is displayed on a social media site
Answer: D
22) In the first seven months of 2015, the percentage of all e-mail that is spam averaged around ________
%.
A) 50
B) 60
C) 70
D) 80
Answer: A
23) Which of the following statements about CAN-SPAM 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.
Answer: B
24) Which of the following statements about Canada's anti-spam law is not true?
A) Canada's law is based on an opt-in model.
B) The law has no impact on companies located within the United States.
C) The first phase of the law went into effect in 2014.
D) The law applies to e-mail, texts, and social media messaging.
24) Which of the following statements about Canada's anti-spam law is not true?
A) Canada's law is based on an opt-in model.
B) The law has no impact on companies located within the United States.
C) The first phase of the law went into effect in 2014.
D) The law applies to e-mail, texts, and social media messaging.
Answer: B
25) Which of the following is the most important tool in establishing a relationship with the
customer?
A) company Web site
B) company CRM system
C) Facebook
D) search engine display ads
Answer: A
26) All of the following are "traditional" online marketing tools except:
A) affiliate marketing.
B) e-mail and permission marketing.
C) social marketing.
D) sponsorship marketing.
Answer: C
27) All of the following are among those most frequently affected by ad-blocking except:
A) gaming sites.
B) newsgroup/forums.
C) social network sites.
D) online retailers.
Answer: D
28) The Nike iD program is an example of which of the following marketing techniques?
A) customer co-production
B) transactive content
C) price discrimination
D) permission marketing
Answer: A
30) Which of the following statements about a free pricing strategy is false?
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.
Answer: B
31) Creating multiple variations of information goods and selling these to different market
segments at different prices is called:
A) bundling.
B) customization.
C) dynamic pricing.
D) versioning.
Answer: D
32) All of the following are fixed price strategies except:
A) bundling.
B) versioning.
C) free pricing.
D) yield management.
Answer: D
33) Which of the following involves getting customers to pass along a company's marketing
message to friends, family, and colleagues?
A) affiliate marketing
B) viral marketing
C) native advertising
D) lead generation marketing
Answer: B
34) Google's AdSense is an example of which of the following?
A) context advertising
B) SEO
C) programmatic advertising
D) viral marketing
Answer: A
35) Which of the following is based on the idea of complete price transparency in a perfect information
marketplace?
A) the Law of One Price
B) dynamic pricing
C) price discrimination
D) versioning
Answer: A
36) Which of the following industries accounts for the highest percentage of spending on online
advertising?
A) financial services
B) retail
C) automotive
D) entertainment
Answer: B
36) Which of the following industries accounts for the highest percentage of spending on online
advertising?
A) financial services
B) retail
C) automotive
D) entertainment
Answer: B
37) Which of the following statements about native advertising is not true?
A) Native advertising is controversial.
B) Native advertising is a new form of advertising found only online.
C) Native advertising is growing rapidly, especially on social networks.
D) Consumers look at native ads much more frequently than display ads.
37) Which of the following statements about native advertising is not true?
A) Native advertising is controversial.
B) Native advertising is a new form of advertising found only online.
C) Native advertising is growing rapidly, especially on social networks.
D) Consumers look at native ads much more frequently than display ads.
Answer: B
38) Which of the following is an automated, auction-based method for matching demand and
supply for online display ads?
A) retargeting
B) behavioral targeting
C) programmatic advertising
D) keyword advertising
Answer: C
39) Research has found that of all the standard formats of display ads, leaderboard ads are the
most effective at getting and holding a user's attention.
Answer: FALSE
40) The highest amount of online advertising spending is for online video ads.
Answer: FALSE
41) Evidence suggests that real-time customer chat increases the dollar value of transactions.
Answer: TRUE
41) Evidence suggests that real-time customer chat increases the dollar value of transactions.
Answer: TRUE
42) Consumers tend to look at native ads more frequently than they look at display ads.
Answer: TRUE
43) Lead generation marketing firms specialize in inbound marketing.
Answer: TRUE
44) An ad is considered viewable if half of the ad can be viewed for at least two consecutive
seconds.
Answer: TRUE
44) An ad is considered viewable if half of the ad can be viewed for at least two consecutive
seconds.
Answer: TRUE
45) The concept of "customer satisfaction" is broader than the concept of "customer experience."
Answer: FALSE
46) 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.
Answer: TRUE
50) Which of the following would you implement to collect and analyze your company's Big
50) Which of the following would you implement to collect and analyze your company's Big
Data?
A) data warehouse
B) Hadoop
C) SQL
D) profiling
Answer: B
51) Which of the following statements about the Internet's impact on marketing is not true?
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 intensity of the marketplace.
Answer: B
51) Which of the following statements about the Internet's impact on marketing is not true?
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 intensity of the marketplace.
Answer: B
52) Which of the following features of e-commerce technology has reduced the cost of
delivering marketing messages and receiving feedback from users?
A) ubiquity
B) richness
C) information density
D) universal standards
Answer: D
53) 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?
A) personalization/customization
B) information density
C) ubiquity
D) interactivity
Answer: B
54) The richness made possible by e-commerce technologies does which of the following?
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.
Answer: C
55) For a Web site that has 100,000 visitors a month, and where on average, a visitor makes five
page requests per visit, there will be ________ entries in the transaction log each month.
A) 50,000
B) 500,000
C) 5 million
D) 50 million
Answer: B
56) 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 ad server metrics become.
Answer: B
57) A Web beacon is:
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
Answer: D
58) ________ is an industry-standard database query and manipulation language.
A) SQL
B) PHP
C) DBMS
D) JSP
Answer: A
59) 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.
A) customer service chat system
B) CRM system
C) data warehouse
D) transactive content system
Answer: B
60) The marketing technique known as ________ involves merchants offering products or
services for a very low price for a short period of time.
A) long tail marketing
B) flash marketing
C) yield management
D) bait-and-switch
Answer: B
61) To answer a question such as "At what time of day does our company sell the most
products?" you would use ________ data mining.
A) query-driven
B) customer profiling
C) model-driven
D) behavioral
Answer: A
62) Transaction logs are built into Web server software.
Answer: TRUE
63) Cookies, when combined with Web beacons, can be used to create cross-site profiles.
Answer: TRUE
69) 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:
A) page views.
B) unique visitors.
C) hits.
D) reach.
Answer: B
70) Impressions are a measure of the:
A) number of times an ad is clicked.
B) number of times an ad is served.
C) number of http requests.
D) number of pages viewed.
Answer: B
71) View-through rate measures the ________ response rate to an ad.
A) 30-minute
B) 24-hour
C) 7-day
D) 30-day
Answer: D
72) Uber has been criticized for using which of the following?
A) flash marketing
B) bundling
C) surge pricing
D) freemium
Answer: C
73) Hits are a measure of the:
A) number of times an ad is clicked.
B) number of times an ad is served.
C) number of HTTP requests.
D) number of pages viewed.
Answer: C
74) Purchasing an online ad on a CPA basis means that the advertiser:
A) pays for impressions in 1,000 unit lots.
B) pays a pre-negotiated fee for each click an ad receives.
C) pays only for those users who perform a specific action, such as registering, purchasing, etc.
D) exchanges something of equal value for the ad space.
Answer: C
75) eCPM measures the ROI of an ad by dividing the total earnings of the ad by which of the
following?
A) the total number of impressions
B) the total number of impressions in hundreds
C) the total number of impressions in thousands
D) the total number of impressions in millions
Answer: C
76) Which of the following measures the average length of stay at a Web site?
A) loyalty
B) stickiness
C) page views
D) retention rate
Answer: B
77) 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.
Answer: A
78) Recency refers to the:
A) percentage of customers who do not return during the next year after an initial purchase.
B) time elapsed since the last visit made by a customer.
C) percentage of existing customers who continue to buy on a regular basis.
D) percentage of customers who return to the site within a year to make additional purchases.
Answer: B
79) Conversion 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.
Answer: B
80) 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) view-to-cart ratio
Answer: C
81) Which of the following measures the percentage of e-mails that could not be delivered?
A) abandonment rate
B) unsubscribe rate
C) bounce-back rate
D) attrition rate
Answer: C
82) Which of the following is the most meaningful metric for video ads?
A) view time
B) click-through rate
C) completion rate
D) skip rate
Answer: C
83) Which of the following measures the percentage of customers who purchase once but never
return within a year?
A) retention rate
B) attrition rate
C) loyalty rate
D) conversion rate
Answer: B
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 organizat