Tutorial 9-Electronic Commerce-new perspectives on the internet-9th edition-Schneider and Evans-test bank

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Tutorial 9: Electronic Commerce

TRUE/FALSE

1. Activities undertaken by a company to sell goods or services to individuals are called business-to-people (B2P) e-commerce.

ANS: F PTS: 1 REF: WEB 456

2. Electronic commerce refers to the process of developing, marketing, selling, delivering, servicing, and paying for products and services online.

ANS: T PTS: 1 REF: WEB 456

3. An online auction in which an individual puts a used item for sale, and another individual buys it to use it themselves, is an example of C2C commerce.

ANS: T PTS: 1 REF: WEB 457

4. A company’s purchasing and hiring processes are part of its revenue model.

ANS: F PTS: 1 REF: WEB 458

5. Web-only businesses are sometimes called brick-and-mortar companies.

ANS: T PTS: 1 REF: WEB 459

6. In the online retail model, a company replaces or supplements its printed catalogs and/or brick-and-mortar store with a Web site.

ANS: T PTS: 1 REF: WEB 459

7. Amazon is a Web-only dot-com company.

ANS: T PTS: 1 REF: WEB 459

8. Few subscription-based Web sites also display ads to their subscribers.

ANS: F PTS: 1 REF: WEB 462

9. The collection of attributes that marketers use to group visitors is called biometric information.

ANS: F PTS: 1 REF: WEB 468

10. The term “floating marketing” refers to delivering ads to site visitors with specific demographic characteristics.

ANS: F PTS: 1 REF: WEB 468

11. One benefit of paying for a subscription to the Economist magazine online is that subscribers are the first to see new published content.

ANS: T PTS: 1 REF: WEB 462

12. In the direct fee revenue model, businesses offer services for which they charge a fee.

ANS: T PTS: 1 REF: WEB 458

13. Fees charged to consumers include brokerage fees, sales commissions, and the costs of information search and acquisition.

ANS: T PTS: 1 REF: WEB 464

14. An auction is an example of a direct transaction.

ANS: F PTS: 1 REF: WEB 465

15. The most successful advertising is directed at a very broad audience.

ANS: F PTS: 1 REF: WEB 468

16. A digital wallet that an organization creates and maintains on its servers for consumers is sometimes called a thin wallet.

ANS: T PTS: 1 REF: WEB 471

17. PayPal is an example of a digital wallet.

ANS: T PTS: 1 REF: WEB 472

18. Escrow services fees typically range from 1 to 10 percent of an item’s cost, with a minimum fee of between $5 and $10.

ANS: T PTS: 1 REF: WEB 466

19. A liquidation broker is an intermediary who matches sellers of obsolete inventory with purchasers who are looking for bargains.

ANS: T PTS: 1 REF: WEB 465

20. VeriSign is an insurance provider.

ANS: F PTS: 1 REF: WEB 476

MODIFIED TRUE/FALSE

1. The Web model is the process or processes that a company uses to find new customers, make sales, and deliver the goods or services it sells. _________________________

ANS: F, revenue

PTS: 1 REF: WEB 458

2. The most common form of e-commerce is brick-and-mortar retail. _________________________

ANS: F
online
Web-based
Internet-based

PTS: 1 REF: WEB 459

3. A(n) subscription is the amount that a user pays in order to access a Web site’s content. _________________________

ANS: T PTS: 1 REF: WEB 462

4. Some auction Web sites provide line-casts so that bidders can attend a live auction via computer. _________________________

ANS: F
Webcasts
Web-casts

PTS: 1 REF: WEB 465

5. The removal of an intermediary from an industry is known as reintermediation. _________________________

ANS: F, disinterediation

PTS: 1 REF: WEB 465

6. Some online auctions provide escrow services that hold a buyer’s payment until he or she is satisfied that the item matches the seller’s description. _________________________

ANS: T PTS: 1 REF: WEB 466

7. Television networks in the United States use the advertising revenue model. _________________________

ANS: T PTS: 1 REF: WEB 468

8. Banner ads usually appear at the top of a Web page and grab visitors’ attention as they open a Web page. _________________________

ANS: T PTS: 1 REF: WEB 468

9. Public relations is a paid announcement that attracts attention to a product, service, business, person, or idea. _________________________

ANS: F, Advertising

PTS: 1 REF: WEB 468

10. Interstitial ads appear as visitors browse from one Web page to another and often contain rich media, streaming video, or large graphics. These ads might appear when you click a link in an excerpt of a news story to view the entire story. _________________________

ANS: T PTS: 1 REF: WEB 469

11. Capstone ads change based on the content you are viewing or searching. These are most commonly seen on the results pages of a search engine. _________________________

ANS: F, Contextual

PTS: 1 REF: WEB 469

12. Sponsorship ads are often a logo or simple statement that the content being viewed was paid for by a company. _________________________

ANS: T PTS: 1 REF: WEB 469

13. A user’s URL feed is a record of the links clicked by a user while visiting a Web site. _________________________

ANS: F, clickstream

PTS: 1 REF: WEB 475

14. Online customer service includes such things as chat, texting, email, and PQAs pages. _________________________

ANS: F
FAQs
FAQ

PTS: 1 REF: WEB 475

15. COPPA places conditions and restrictions on a Web site collecting information about children under the age of 13. _________________________

ANS: T PTS: 1 REF: WEB 476

MULTIPLE CHOICE

1. Activity by a company to sell goods or services to individuals is called ____ e-commerce.
a. B2C c. B2B
b. C2C d. C2B

ANS: A PTS: 1 REF: WEB 456

2. A for-profit corporation selling a service to a not-for-profit organization is an example of ____ e-commerce.
a. B2C c. B2G
b. B2B d. C2C

ANS: B PTS: 1 REF: WEB 456

3. In the accompanying figure, Box A represents ____ electronic commerce.
a. B2C c. B2G
b. B2B d. C2C

ANS: A PTS: 1 REF: WEB 456-457

4. Box ____ in the accompanying figure best represents the type of e-commerce used at an online auction Web site like eBay.
a. A c. C
b. B d. D

ANS: D PTS: 1 REF: WEB 456-457

5. The ____ model is the process or processes that a company uses to find new customers, make sales, and deliver the goods or services it sells.
a. subscription c. advertising
b. mixed advertising-subscription d. revenue

ANS: D PTS: 1 REF: WEB 458

6. Businesses take a variety of approaches to generating revenue on the Web. These approaches include the use of online sales of ____, subscriptions, and direct fees.
a. goods c. both a. and b.
b. services d. neither a. nor b.

ANS: C PTS: 1 REF: WEB 458

7. The most common form of e-commerce is ____, which refers to selling physical products on the Web. The items are located, reviewed, and purchased on the Web, and then shipped to the buyer.
a. online retail c. mixed retail
b. offline retail d. 3G retail

ANS: A PTS: 1 REF: WEB 459

8. Some companies sell only on the Web. These Web-only businesses are sometimes called pure ____ companies.
a. meta c. mortar
b. dot-com d. dynamically arranged

ANS: B PTS: 1 REF: WEB 459

9. Most companies doing business on the Web today ____.
a. are pure dot-coms c. use the Web only as advertising and to lure customers into their brick-and-mortar stores
b. use the Web to extend their existing businesses d. none of the above

ANS: B PTS: 1 REF: WEB 459

10. All of the following businesses sell only on the Web EXCEPT ____.
a. Amazon.com c. CafePress
b. Hewlett-Packard d. Zappos.com

ANS: B PTS: 1 REF: WEB 459

11. Companies that use both a physical store and the Web to sell their products and services are sometimes referred to as ____.
a. 3G c. bricks-and-mortar
b. bricks and clicks d. pure retail

ANS: B PTS: 1 REF: WEB 459

12. The text listed all of these drawbacks to online retail EXCEPT: ____.
a. shopping online takes more time than going to a store
b. you cannot see or hold the item
c. it can take up to a week to receive the item
d. shipping adds cost to the price

ANS: A PTS: 1 REF: WEB 461

13. The text listed all of the following benefits of online retail EXCEPT: ____.
a. A video demonstrating the product is often available
b. It is simple to compare prices
c. Shipping is usually free
d. You can shop any time of the day or night

ANS: C PTS: 1 REF: WEB 461

14. Users must pay a(n) ____ fee to access some Web sites’ content.
a. subscription c. discretionary
b. bricks-and-clicks d. escrow

ANS: A PTS: 1 REF: WEB 462

15. ____ pioneered DVD rental by mail monthly subscription plans.
a. Blockbuster c. NetFlix
b. Yahoo! d. E-tainment

ANS: C PTS: 1 REF: WEB 462

16. Many subscription-based Web sites also display ____ to their subscribers.
a. escrow analysis c. ads
b. flashing text d. fees

ANS: C PTS: 1 REF: WEB 462

17. Many gaming sites such as GameHouse and EA Games and portal sites such as Yahoo! Games and MSN Games represent another example of ____ sites.
a. subscription-based c. information-based
b. direct fee-based d. timeshare-based

ANS: A PTS: 1 REF: WEB 462

18. The ____ model has been used successfully by some magazines that include no advertising as a matter of policy.
a. escrow c. direct-pay
b. indemnity d. subscription

ANS: D PTS: 1 REF: WEB 462

19. Fees charged to consumers include ____.
a. brokerage fees c. the costs of information search
b. sales commissions d. all of the above

ANS: D PTS: 1 REF: WEB 464

20. Online travel sites such as Expedia and Travelocity also earn commissions from transportation and lodging providers in the form of fees for each ____ their Web site.
a. visitor to c. client review made on
b. reservation made through d. dollar spent on

ANS: B PTS: 1 REF: WEB 464

21. Online brokers such as ____ and TD Ameritrade are threatening traditional brokerage firms by offering trading over the Web with lower fees and commissions.
a. E*TRADE c. MSN*Flash
b. Google Stocks d. Dow Jones Flash

ANS: A PTS: 1 REF: WEB 464

22. An intermediary is a person or an organization that acts as a(n) ____ between two parties to effect a transaction or an agreement.
a. mediator c. either a. or b.
b. agent d. neither a. nor b.

ANS: C PTS: 1 REF: WEB 464

23. When using stock brokerage firms, customers pay a commission to ____ for each trade executed.
a. the U.S. government c. the Web site administrator
b. the brokerage firm d. the stock issuer

ANS: B PTS: 1 REF: WEB 464

24. The removal of an intermediary from an industry is known as ____.
a. disintermediation c. reintermediation
b. corporate consolidation d. monopolization

ANS: A PTS: 1 REF: WEB 465

25. The text listed ____ as one of the greatest expenses for liquidation brokers when sales took place in a physical location.
a. leasing a place to hold the auction c. finding experienced employees
b. sourcing items to sell d. shipping the items to the purchasers

ANS: A PTS: 1 REF: WEB 465

26. Some auction sites are providing ____ so that bidders can attend a live auction via computer.
a. blogs c. Webcasts
b. virtual wallets d. Chat rooms

ANS: C PTS: 1 REF: WEB 465

27. Some auction sites provide automated ____ agents that bidders can instruct to place bids as needed to win the auction, subject to a maximum limit set by the bidder.
a. software c. hardware
b. human d. all of the above

ANS: A PTS: 1 REF: WEB 465

28. Most online auction sites offer merchandise that is the property ____, much as an auctioneer would at a public auction.
a. of the auctioneer c. of the U.S. government
b. of others d. of unknown parties

ANS: B PTS: 1 REF: WEB 465

29. The introduction of new Web-based travel agencies into the travel industry is an example of ____.
a. disintermediation c. reintermediation
b. corporate consolidation d. monopolization

ANS: C PTS: 1 REF: WEB 465

30. The Autobytel Web site allows a customer to purchase a new car without ____.
a. paying local excise tax c. needing a credit check
b. negotiating its price with a salesperson d. any of the above

ANS: B PTS: 1 REF: WEB 465

31. A(n) ____ is an intermediary who matches sellers of obsolete inventory with purchasers who are looking for bargains.
a. pawnshop c. escrow service
b. trading partner d. liquidation broker

ANS: D PTS: 1 REF: WEB 465

32. A(n) ____ will hold an online auction buyer’s payment until he or she is satisfied that the item bought matches the seller’s description.
a. proxy server c. bidding panel
b. e-tailer d. escrow service

ANS: D PTS: 1 REF: WEB 466

33. Online auctions are an example of ____ e-commerce because one person auctions an item to another person.
a. C2C c. B2B
b. C2B d. B2G

ANS: A PTS: 1 REF: WEB 466

34. eBay identifies sellers who have received high ratings from buyers for excellent customer service with an eBay ____ seal.
a. Trust Verified c. Good Seller
b. Top-rated d. Bargain Hunter

ANS: B PTS: 1 REF: WEB 466

35. If a buyer doesn’t receive the item purchased or believes that the received item is different from what was described in the listing, eBay ____ helps the buyers and sellers resolve the dispute.
a. Buyer Beware c. Seller Beware
b. Buyer Protection d. Seller Protection

ANS: B PTS: 1 REF: WEB 466

36. Television networks in the United States use the ____ revenue model.
a. subscription c. advertising
b. mixed advertising-subscription d. tiered demographic

ANS: C PTS: 1 REF: WEB 468

37. Delivering ads to Web site visitors with specific demographic characteristics is part of a strategy called ____.
a. focused marketing c. dynamic marketing
b. tailor marketing d. target marketing

ANS: D PTS: 1 REF: WEB 468

38. ____ is a paid announcement that attracts attention to a product, service, business, person, or idea.
a. Focused marketing c. Advertising
b. Tailor marketing d. Target marketing

ANS: C PTS: 1 REF: WEB 468

39. ____ ads usually appear at the top of a Web page and combine text, images, animation, sound, and/or video to grab visitors’ attention as they open a Web page; clicking the ad opens a link to the advertiser’s site.
a. Banner c. Pop-up
b. Sponsorship d. Contextual

ANS: A PTS: 1 REF: WEB 468

40. ____ ads open in a new window or within the Web page as users browse a Web site and can contain text, graphics, animations, sound, and/or video.
a. Banner c. Contextual
b. Pop-up d. Sponsorship

ANS: B PTS: 1 REF: WEB 468

41. A(n) ____ is an arrangement in which one company performs some business processes for another company in exchange for money or the sharing of expertise or access to customers.
a. strategic alliance c. corporate dalliance
b. merger d. strategic confluence

ANS: A PTS: 1 REF: WEB 469

42. ____ marketing is an arrangement in which one company performs some business processes for another company in exchange for money or the sharing of expertise or access to customers.
a. Strategic c. Corporate
b. Merger d. Affiliate

ANS: D PTS: 1 REF: WEB 469

43. ____ by Sallie Mae is a rewards program that provides members with a way to save money for college when shopping online, eating out, and purchasing groceries at participating retailers.
a. Upromise c. USave
b. Future Fund d. ISave

ANS: A PTS: 1 REF: WEB 469

44. ____, a comparison shopping service site, provides an example of affiliate marketing.
a. SaleGrabber c. PriceGrabber
b. SaleGetter d. PriceGetter

ANS: C PTS: 1 REF: WEB 469

45. Text ads are simple text-based links that appear within the body of a Web page and are related to the content. These are also sometimes called ____ ads.
a. flatline c. central
b. inline d. banner

ANS: B PTS: 1 REF: WEB 469

46. Contextual ads change based on the content you are viewing or searching. They can be ____.
a. banner ads c. pop-up ads
b. text ads d. all of the above

ANS: D PTS: 1 REF: WEB 469

47. ____ ads are often a logo or simple statement that the content being viewed was paid for by a company. They often appear on a separate Sponsors page or area of the Web site.
a. Sponsorship c. Contextual
b. Banner d. Pop-up

ANS: A PTS: 1 REF: WEB 469

48. Video ads may appear when a user views related content on ____.
a. YouTube c. MyTube
b. YouVideo d. MyVideo

ANS: A PTS: 1 REF: WEB 469

49. ____ ads appear as visitors browse from one Web page to another and often contain rich media, streaming video, or large graphics. These ads might appear when you click a link in an excerpt of a news story to view the entire story.
a. Interstate c. Interstitial
b. Intermediary d. Interesting

ANS: C PTS: 1 REF: WEB 469

50. ____ are paid editorial ads that contain objectively written opinions about a product or service.
a. Opinion ads c. Blogs
b. Review ads d. Advertorials

ANS: D PTS: 1 REF: WEB 469

51. ____ ads are descriptions of items for sale such as a car, boat, motorcycle, house, or airplane, or something someone is looking for, such as a job.
a. Interstate c. Classified
b. Text d. Contextual

ANS: C PTS: 1 REF: WEB 469

52. ____ is an electronic device with software that enables the user to make a purchase online.
a. Digital wallet c. e-Wallet
b. Electronic wallet d. all of the above

ANS: D PTS: 1 REF: WEB 471

53. Digital wallet transactions occur ____.
a. online via a computer c. either a. or b.
b. in stores via a smartphone d. neither a. nor b.

ANS: C PTS: 1 REF: WEB 471

54. A digital wallet that an organization creates and maintains on its servers for consumers is sometimes called a(n) ____ wallet.
a. fat c. happy
b. thin d. organized

ANS: B PTS: 1 REF: WEB 471

55. The digital wallet stores a user’s payment information such as bank account and credit card numbers, a ____ to identify the user, and information that the user provides such as shipping information to speed up Internet transactions.
a. digital certificate c. photo ID
b. digital fingerprint d. watermark

ANS: A PTS: 1 REF: WEB 471

56. Peter Thiel and Max Levchin developed the first digital wallet in ____.
a. 1992 c. 2002
b. 1998 d. 2008

ANS: B PTS: 1 REF: WEB 472

57. Near field communication (NFC) is a standards-based, short-range wireless technology that allows electronic devices to interact over a couple of ____.
a. inches c. yards
b. feet d. miles

ANS: A PTS: 1 REF: WEB 472

58. Most successful small online businesses that sell products have inventories that share one common characteristic: ____.
a. fragility c. a high value-to-weight ratio
b. a low value-to-weight ratio d. uniqueness

ANS: C PTS: 1 REF: WEB 474

59. When ordering items online, usually shipments can most inexpensively travel through the U.S. Postal Service with delivery occurring up to ____ later.
a. one day c. five days
b. three days d. a week

ANS: D PTS: 1 REF: WEB 474

60. When ordering items online, the major private shipping companies in the United States include all of the following EXCEPT: ____.
a. FedEx c. DHL
b. UPS d. AirBorne

ANS: D PTS: 1 REF: WEB 474

61. A(n) ____ is a third party that will certify that a Web site meets some criteria for conducting business in a secure and privacy-preserving manner.
a. EFT c. escrow service
b. assurance provider d. trading partner

ANS: B PTS: 1 REF: WEB 475 – WEB 476

62. Online stores and companies provide customer service using chat, texting, email, and ____ pages.
a. BAQs c. LAQs
b. FAQs d. SAQs

ANS: B PTS: 1 REF: WEB 475

63. A user’s ____ is a record of the links clicked by a user while visiting a Web site.
a. thoughtstream c. browsestream
b. clickstream d. mousestream

ANS: B PTS: 1 REF: WEB 475

64. When a Web site is using SSL, the site’s URL in the Location or Address bar begins with ____.
a. http:// c. ftp://
b. https:// d. SSLtp://

ANS: B PTS: 1 REF: WEB 475

65. Currently, there are ____ major assurance providers.
a. two c. four
b. three d. seven

ANS: C PTS: 1 REF: WEB 476

66. Web sites can purchase certifications and display the logo or seal of the ____ provider on the Web site for potential customers to examine before making any purchases.
a. building c. banking
b. assurance d. delivery

ANS: B PTS: 1 REF: WEB 476

67. The Electronic Communications Privacy Act (ECPA) of ____, which was enacted before most people were using the Internet, does not include rules specifically designed to protect the privacy of persons using Web sites to conduct transactions.
a. 1981 c. 1991
b. 1986 d. 1996

ANS: B PTS: 1 REF: WEB 476

68. The Children’s Online Privacy Protection Act of 1998 (often referred to as COPPA) makes it illegal for Web sites to collect identifiable information from children under the age of ____ without first obtaining their parents’ consent.
a. 11 c. 15
b. 13 d. 17

ANS: B PTS: 1 REF: WEB 476

69. Amazon has different sites for Canada, Spain, and Germany. Each site is customized to reflect the country it serves, using the appropriate ____ for that country
a. language c. icons
b. currency d. all of the above

ANS: D PTS: 1 REF: WEB 478

70. A(n) ____ statement can include rules for site visitors, a statement of copyright in the site design and content, and can restrict the types of business a visitor can conduct with the site.
a. RFP c. EFT
b. TOS d. V2W

ANS: B PTS: 1 REF: WEB 480

Case-Based Critical Thinking Questions

Case 9-1
You work for a consulting agency. A client has approached your company to get advice. They will be creating widgets, and want to do a good deal of their business on the Web. They’re interested in discussing the world of electronic commerce. You are assigned to help answer their questions.

71. The client describes his company’s planned operations. They include selling widgets wholesale to factories, as well as offering product service and technical support to those factories. From your experience, you know that the client will mostly be performing ____ electronic commerce.
a. B2B c. B2G
b. B2C d. C2C

ANS: A PTS: 1 REF: WEB 456 TOP: Critical Thinking

72. Your client describes their planned business operations. They said they envision having a revenue model similar to Netflix. You explain that Netflix uses a(n) ____ model.
a. fee c. advertising
b. subscription d. clickstream

ANS: B PTS: 1 REF: WEB 462 TOP: Critical Thinking

73. You realize from talking with your client that their industry has, up to now, been slow to adopt Web and Internet technologies. This means that the introduction of your client’s company into their industry will be a good example of ____.
a. channel conflict c. reintermediation
b. disintermediation d. a value-added network

ANS: C PTS: 1 REF: WEB 465 TOP: Critical Thinking

74. Next, the client requests that you include ads that open in a new window or within the Web page when users navigate his site. You explain that these are ____ ads.
a. banner c. pop-up
b. pop d. window

ANS: C PTS: 1 REF: WEB 468 TOP: Critical Thinking

75. You explain that there is another advertising alternative: ads that appear at the top of a Web page and combine text, images, animation, sound, and/or video to grab visitors’ attention as they open a Web page. You tell him that these are called ____ ads.
a. title c. marquee
b. tag d. banner

ANS: D PTS: 1 REF: WEB 468 TOP: Critical Thinking

76. Lastly, just before the client leaves, he remembers one last question. He is expecting his company to have international operations, and is concerned about language barriers and translation. You suggest he use a translation system that takes into account the culture and customs of the country, called ____.
a. localization c. machine translation
b. back-translation d. a Free-Translation

ANS: A PTS: 1 REF: WEB 478 TOP: Critical Thinking

Case-Based Critical Thinking Questions

Case 9-2
Indie has a quiz in class tomorrow about revenue models. You being the expert in such things, she has asked you to help her prepare.

77. You tell Indie that a hypothetical company offers a foreign-language course over the Web, charging $5 for each new chapter that a student wishes to study. The fee includes access to relevant audio clips and discussion boards. You ask her what form of revenue model this is. She answers, correctly, ____.
a. pure dot-com c. online catalog
b. direct fee d. subscription

ANS: B PTS: 1 REF: WEB 464 TOP: Critical Thinking

78. Next, you tell Indie that there is an online newspaper that permits people to read some articles for free, but charges a monthly rate to read the entire Web site. In addition, the Web site supplements its income through target marketing. You ask her what kind of revenue model this would be, and she replies, correctly, ____.
a. direct fee c. mixed advertising-subscription
b. subscription d. online catalog

ANS: C PTS: 1 REF: WEB 462 TOP: Critical Thinking

79. You then ask Indie to name a list of business processes that contribute to a company’s revenue model. She lists the following items, which are all correct EXCEPT for ____.
a. finding new customers c. making sales
b. manufacturing products d. delivering goods

ANS: B PTS: 1 REF: WEB 458 TOP: Critical Thinking

80. Lastly, you ask Indie to name a Web site that has brought disintermediation and reintermediation to the automobile sales industry. She replies ____.
a. Autobytel c. Excite
b. CARTRAX d. E*TRADE

ANS: A PTS: 1 REF: WEB 465 TOP: Critical Thinking

COMPLETION

1. Activities undertaken by a company to sell goods or services to other businesses or nonprofit organizations are called business-to-____________________ e-commerce.

ANS: business

PTS: 1 REF: WEB 456

2. A company using Internet technologies to file tax forms and pay taxes is often called ____________________ e-commerce.

ANS:
B2G
business-to-government
B2G (business-to-government)
business-to-government (B2G)

PTS: 1 REF: WEB 457

3. The most common revenue model is ____________________ sales of products and services.

ANS: direct

PTS: 1 REF: WEB 458

4. The most common form of e-commerce is ____________________, which refers to selling physical products on the Web.

ANS: online retail

PTS: 1 REF: WEB 459

5. Another term for strategic alliance is strategic ____________________.

ANS: partnership

PTS: 1 REF: WEB 469

6. ____________________ marketing is an arrangement in which one company performs some business processes for another company in exchange for money or the sharing of expertise or access to customers.

ANS: Affiliate

PTS: 1 REF: WEB 469

7. ____________________ marketing is the process of using Web sites such as Facebook, Twitter, and YouTube to attract attention to an idea, product, Web site, store, and so forth.

ANS: Social media

PTS: 1 REF: WEB 471

8. A(n) ____________________ wallet (also called an electronic wallet or e-wallet) is an electronic device with software that enables the user to make a purchase online.

ANS: digital

PTS: 1 REF: WEB 471

9. Near ____________________ communication is a standards-based, short-range wireless technology that allows electronic devices to interact over a couple of inches.

ANS: field

PTS: 1 REF: WEB 472

10. The ____________________-to-weight ratio is the price of the item divided by its weight.

ANS: value

PTS: 1 REF: WEB 474

11. A user’s ____________________ is a record of the links clicked by a user while visiting a Web site.

ANS: clickstream

PTS: 1 REF: WEB 475

12. The Web site shown in the figure above uses advertising revenue and membership ____________________ fees to support the business.

ANS: subscription

PTS: 1 REF: WEB 463

13. A(n) ____________________ provider is a third party that, for a fee paid by the e-commerce Web site, will certify that the site meets some criteria for conducting business in a secure and privacy-preserving manner.

ANS: assurance

PTS: 1 REF: WEB 475 – WEB 476

14. A(n) ____________________ is an amount that users pay in order to access a site’s content.

ANS: subscription

PTS: 1 REF: WEB 462

15. ____________________ is when an intermediary from an industry, such as the traditional travel agencies, is no longer needed for the consumer to obtain the goods and services from the industry.

ANS: Disintermediation

PTS: 1 REF: WEB 465

16. Adding a Web site to reach potential customers creates an additional ____________________, which is a way that a company supplies its products or services to customers

ANS: sales channel

PTS: 1 REF: WEB 459

17. To ensure that the transactions conducted on their sites are secure, legitimate e-commerce Web sites use the ____________________ protocol to protect sensitive information as it travels over the Internet.

ANS: SSL

PTS: 1 REF: WEB 475

18. Currently, the four major assurance providers are the Better Business Bureau (BBB), TRUSTe, Norton Secured Seal (formerly VeriSign), and ____________________.

ANS: WebTrust

PTS: 1 REF: WEB 476

19. Language translation that takes into account the culture and customs of a country is called ____________________.

ANS: localization

PTS: 1 REF: WEB 478

20. A Web site’s ____________________ statement can include rules for site visitors, a statement of copyright interests, and can restrict the types of business that a visitor can conduct with the site.

ANS:
TOS
terms of service
TOS (terms of service)
terms of service (TOS)

PTS: 1 REF: WEB 480

MATCHING

a. terms of service g. assurance provider
b. sales channel h. pure dot-com
c. TRUSTe i. clickstream
d. reintermediation j. subscription
e. localization k. escrow services
f. disintermediation l. target marketing

1. third party that certifies that a Web site meets criteria for conducting business in a secure manner

2. rules for site visitors

3. record of the links clicked by a user while visiting a Web site

4. a Web-only business

5. hold a buyer’s payment until they are satisfied that an item is as described

6. amount users pay in order to access the site’s content

7. translation that takes into account the culture and customs of a country

8. an assurance provider

9. delivering ads to site visitors with specific demographic characteristics

10. way that a company supplies its products or services to customers

11. when a new intermediary joins an industry

12. when an intermediary is no longer needed in an industry

1. ANS: G PTS: 1 REF: WEB 475 – WEB 476

2. ANS: A PTS: 1 REF: WEB 480

3. ANS: I PTS: 1 REF: WEB 475

4. ANS: H PTS: 1 REF: WEB 459

5. ANS: K PTS: 1 REF: WEB 466

6. ANS: J PTS: 1 REF: WEB 462

7. ANS: E PTS: 1 REF: WEB 478

8. ANS: C PTS: 1 REF: WEB 476

9. ANS: L PTS: 1 REF: WEB 468

10. ANS: B PTS: 1 REF: WEB 459

11. ANS: D PTS: 1 REF: WEB 465

12. ANS: F PTS: 1 REF: WEB 465

ESSAY

1. Name and give two examples of each of the four types of electronic commerce activities.

ANS:
Business-to-Consumer (B2C)
Subscription services
Content providers
Transaction brokers
Service providers
Portals

Business-to-Business (B2B)
Online retailers
Liquidation brokers
Business service providers

Consumer-to-Consumer (B2C)
Online auctions
Social network sites used for e-commerce

Business-to-Government (B2G)
Tax Filings
Tax payments
Financial reporting to government agencies

PTS: 1 REF: WEB 456-457 TOP: Critical Thinking

2. Describe disintermediation and reintermediation as it relates to the travel industry.

ANS:
E-commerce has led to disintermediation in some markets, including the travel industry, automotive sales, and stock brokerages. Disintermediation is when an intermediary from an industry, such as the traditional travel agencies, is no longer needed for the consumer to obtain the goods and services from the industry. In the case of travel agents, consumers began doing their own research and purchasing of airline tickets, hotels, and rental cars, often saving money in the process. In many cases, however, the original intermediary is replaced by a new liaison, who then receives the commission for providing information and facilitating the purchase of the transaction.

The introduction of a new intermediary into an industry is called reintermediation. In the travel industry, the new intermediaries are the Web-based travel agencies such as Travelocity, Expedia, Priceline.Com, Hotels.Com, and Orbitz that specialize in finding and making available the best travel resources for consumers.

PTS: 1 REF: WEB 465 TOP: Critical Thinking

3. Name and describe contextual ads, interstitial ads, and advertorials.

ANS:
Contextual ads change based on the content you are viewing or searching. They can be any type of ad, including banner ads, text ads, and pop-up ads. These are most commonly seen on the results pages of a search engine.

Interstitial ads appear as visitors browse from one Web page to another and often contain rich media, streaming video, or large graphics. These ads might appear when you click a link in an excerpt of a news story to view the entire story.

Advertorials are paid editorial ads that contain objectively written opinions about a product or service.

PTS: 1 REF: WEB 469 TOP: Critical Thinking