TEST BANK Principles of Information Systems, 13th Edition Ralph M. Stair and George Reynolds

Chapter 1 Overview of Electronic Commerce
1-According to Peter Drucker, e-commerce is profoundly changing markets, industry
structures, products and services, consumer segmentation, consumer values and consumer
behavior; jobs, and labor markets.
True False
2-By purchasing a textbook from Amazon.com and having the merchandise physically
delivered, Amazon.com would be considered a click-and-mortar organization because pure
EC did not occur.
True False
3-In the field, a sales representative writes notes with a mobile handwriting-recognition
computer immediately after a sales call. This can be viewed as an EC activity.
True False
4-In addition to EC being conducted via the Internet, EC can be conducted over local area
networks (LANs).
True False
5-An example of business-to-consumer (B2C) is when Dell provides customer service online
by collaborating electronically with its partners.
True False
6-An internal corporate network that uses Internet tools, such as Web browsers, is known
as an intranet.
True False
7-An extranet is a network that uses the Internet to link together multiple intranets.
True False
8-Purchasing a Dell computer online for use at home is an example of e-tailing.
True False
9-Networked computing connects multiple computers and other electronic devices that are
located in various locations by telecommunications networks, including wireless ones.
True False
10-When Dell purchases Godiva chocolates as gifts for its employees and has Godiva mail
them directly to the recipient Dell is engaged in B2B2C.
True False
11-Peer-to-peer (P2P) technology can be used in C2C, B2B, and B2C.
True False
12-The final participants in B2B transactions are consumers.
True False
13-Doing your banking on an Internet-enabled cell phone is an example of m-commerce.
True False
14-Despite the many e-tailing EC companies that have failed in the past, the dot-com
failure rate has recently declined sharply.
True False
15-Since 2001, no other company has had more of an impact on EC than MySpace.
True False
16-Wikipedia.com, a Web site that allows people to work together online and share
information, is an example of Web 2.0.
True False
17-The digital economy refers to an economy based on digital communication networks,
computers, software, and other related information technologies that provide a global
platform over which people and organizations interact, communicate, collaborate, and
search for information.
True False
18-Economic, legal, societal, and technological factors have created a highly competitive
business environment in which customers are becoming less powerful.
True False
19-Strong competition and increased power of consumers are two of the major market
pressures in today's business environment.
True False
20-Business models are a subset of a business plan or business case and refer to methods of
doing business by which a company can generate revenue.
True False
21-A business model outlines how the organization or the EC project will generate revenue
through sales, transaction fees, advertising fees, affiliate fees, or other revenue sources.
True False
22-A value proposition refers to the tangible and intangible benefits that a company can
derive from using EC making it an important part of the marketing plan.
True False
23-Affiliate marketing is an EC business model of word-of-mouth marketing in which
customers promote a product or service to friends or other people.
True False
24-Social networks, such as Facebook, YouTube, and MySpace, are Web sites that connect
people with specific interests by providing free services such as photo sharing, e-mail, and
blogging.
True False
25-Many companies used a corporate portal, which is a gateway for customers, employees,
and partners to reach corporate information and communicate with the company.
True False
26-Dell's cornerstone business model is based on the concept of:
selling directly to
small and medium
sized businesses.
build-to-order which allows
customers to configure their
own customized systems.
rapid business
growth and
threatening
competitors.
e-collaboration with a
few select business
partners.
27-________ refers to the buying and selling of goods and services; servicing of customers;
collaborating with business partners; and conducting electronic transactions within an
organization.
Partial EC E-business Pure EC E-commerce
28-EC can take several forms depending on the degree of digitization of the following three
dimensions:
the product or
service sold, the
process, and the
delivery method.
the marketing channel,
the agent, and the
collaboration method.
the payment method,
the delivery method,
and the production
method.
the business process,
the collaboration, and
the transaction.
29-Purely physical companies are referred to as ________ companies, whereas companies
that are engaged only in EC are considered ________ companies.
virtual; pure play click-and-mortar; click-and-brick brick-and-mortar; virtual pure play; virtual
30-The ways in which EC is done include:
the Internet, value-added networks, on
local area networks using intranets, or on
a single computerized machine.
the Internet
and extranets.
the Internet,
extranets, and
private networks.
the Internet and
private
networks.
31-________ are systems where only routine transaction processing and information flow
take place between two or more organizations using a standard protocol, such as electronic
data interchange (EDI).
Intrabusiness EC E-CRM Interorganizational information systems B2B
32-A business such as Apple Computers making online transactions with its trading
partners is an example of:
e-CRM EDI B2B B2C
33-EC applications are supported by infrastructure and by each of the following support
areas EXCEPT:
People Marketing and advertisement Mobile devices Public policy
34-Intrabusiness EC is usually performed over intranets and/or ________.
P2P networks exchanges mobile networks corporate portals
35-A technology that is used to electronically transfer routine documents, such as invoices
and purchase orders, and for financial transactions is ________.
Exchange-to-exchange Electronic data interchange Electronic funds transfer Peer-to-peer
36-Challenges that Boeing faced with its global collaboration for the design and assembly
process of its new Dreamliner passenger plane included each of the following EXCEPT:
Information security Lag time Teams working across various time zones Data management
37-A large number of EC companies, especially e-tailing and B2B ones, failed from 1999 to
2005 for each of the following reasons EXCEPT:
The companies failed to ensure
they had sufficient inventory and
a distribution setup to meet
initial demand.
The companies
lacked financial
skills.
The companies had
little marketing
experience.
The companies failed to
register with search
engines, such as
Google.
38-________ refers to the second-generation of Internet-based services that let people
collaborate and share information online in new ways, such as social networks and wikis.
Virtual Web Social Web Web 2.0 Media Web
39-Which of the following is not a characteristic of the Digital Revolution?
A high rate of
obsolescence.
Intelligent search agents to
help manage information
overload.
Fraud and other
cybercons carried out
via the Internet.
Many business processes
are expedited by up to
50 percent.
40-Because the rate of change and the level of uncertainty are expected to accelerate,
organizations are
considering less
information when
making decisions.
operating under increasing
pressures to produce more
products, faster, and with
fewer resources.
unable to react quickly
enough to threats and
opportunities.
making fewer
decisions and/or
decisions less
frequently.
41-According to the Business Environment Impact Model, ________ provide support to
organizations' activities and to actual performance, countering business pressures.
core competencies and critical response
activities
missions and
strategies
EC and
IT
markets and
government
42-A ________ is a company's method of doing business to generate revenue to sustain
itself.
marketing strategy business model business plan value chain
43-According to the ________ revenue model, companies receive commissions for referring
customers to others' EC Web sites.
affiliate fees advertising fees subscription fees transaction fees
44-According to the ________ revenue model, customers page a fixed amount, usually
monthly, to receive some type of service.
transaction fees affiliate fees subscription fees advertising fees
45-Large private organizational buyers and government agencies make large-volume or
large-value purchases through ________, also known as reverse auctions.
name-your-own-price
models
viral
marketing
online direct
marketing
electronic tendering
systems
46-According to the ________ model, an organization can increase brand awareness or
even generate sales by Web-based word-of-mouth marketing or promoting a product or
service to other people.
electronic tendering
systems
viral
marketing
name-your-own-price
models
online direct
marketing
47-Online group purchasing organizations are known as:
e-co-ops SMEs exchanges barters
48-Major barriers to EC include all of the following EXCEPT:
implementation difficulties lack of technology lack of potential customers cost
49-Which of the following is a technological limitation of EC?
Difficulty
obtaining venture
capital.
Security and privacy
concerns that deter
customers from buying.
Unresolved taxation,
public policy, and legal
issues.
Order fulfillment
requirements of largescale
B2C.
50-A job opening in the Sales Department posted on the company's Intranet by the Human
Resources Department is an example of:
B2E B2S E2C B2B
51-Boeing designing a product together with a business partner is this type of interaction:
B2B2C Nonbusiness EC B2B. Collaborative Commerce
52-A corporation uses the Internal Revenue Service's Web site to learn how to pay its
estimated quarterly income taxes. This is an example of:
G2G E2E. G2C G2B
53-The second-generation of Internet-based services that lets people collaborate and share
information online is known as Web 2.0. An example of this is:
mp3.com DoubleClick Evite blogging
54-The digital enterprise shifts the focus from managing individual information resources
such as devices, applications, and data to ________ that define the business and ultimately
deliver value to customers and end users.
transforming revenue
models
developing
models
organizing supply
chains
orchestrating the services and
workflows
55-Many companies employ a(n) ________, which is a gateway for customers, employees,
and partners to reach corporate information and to communicate with the company.
corporate portal intranet social network extranet
Chapter 2 E-Marketplaces
1-The functions and efficiency of an e-market are the same as that of a physical
marketplace.
True False
2-The emergence of electronic marketplaces has resulted in lower information search costs
for buyers and lower transaction and distribution costs for sellers.
True False
3-Although both marketplaces and marketspaces can sell physical products, the
marketspace also can sell digital products, which are goods that can be transformed to
digital format and delivered instantly over the Internet.
True False
4-Front end refers to the activities that support online order fulfillment, inventory
management, purchasing from suppliers, payment processing, packaging, and delivery.
True False
5-In marketing, an intermediary is a third party that operates between sellers and buyers.
Intermediaries of all kinds offer their services on the Web.
True False
6-WebMD, which is the largest U.S. medical services company, is known mainly for its
webmd.com consumer portal, but its core business is being an e-intermediary.
True False
7-The major B2B e-marketplaces are electronic storefronts, Internet malls, and exchanges.
True False
8-A portal is an information gateway that attempts to address information overload by
enabling people to search and access relevant information from disparate IT systems and
the Internet, using advanced search and indexing techniques, such as Google's desktop.
True False
9-Intermediaries are human or electronic agents that play an important role in EC by
providing value-added services such as making payment arrangements to buyers and
sellers.
True False
10-Travelers using airline Web sites to book their flights directly without the use of travel
agents is resulting in the reintermediation of travel agents.
True False
11-Search engines not only "search and match," but also have capabilities that can be used
to perform routine tasks that require intelligence.
True False
12-An electronic shopping cart is an order-processing technology that allows customers to
accumulate items they wish to buy while they continue to shop.
True False
13-Shopping carts for B2B are fairly simple, but a shopping cart for B2C may be more
complex.
True False
14-An auction is a competitive process and market mechanism that uses a competitive
process by which a seller solicits consecutive bids from buyers or a buyer solicits bids from
sellers.
True False
15-Negotiation and bargaining are two types of auctions where prices are not fixed, but
rather are allowed to fluctuate as market supply and demand change.
True False
16-